STATE OF
MINNESOTA
EIGHTY-NINTH
SESSION - 2016
_____________________
ONE
HUNDRED SIXTH DAY
Saint Paul, Minnesota, Sunday, May 22, 2016
The House of Representatives convened at
10:00 a.m. and was called to order by Tim O’Driscoll, Speaker pro tempore.
Prayer was offered by Representative Mary
Murphy, District 3B, Hermantown, Minnesota.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The roll was called and the following
members were present:
Albright
Anderson, C.
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Atkins
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Drazkowski
Ecklund
Erhardt
Erickson
Fabian
Fenton
Fischer
Flanagan
Franson
Freiberg
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kiel
Knoblach
Koznick
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mahoney
Marquart
Masin
McDonald
McNamara
Melin
Metsa
Miller
Moran
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Pinto
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Sundin
Swedzinski
Theis
Thissen
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Yarusso
Youakim
Zerwas
Spk. Daudt
A quorum was present.
Mullery was excused until 11:35 a.m. Mack was excused until 11:40 a.m. Allen and Mariani were excused until 11:45
a.m. Kelly was excused until 12:35
p.m. Kresha was excused until 6:20 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.
Peppin moved that the House recess subject to the call of the Chair. The motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to order by Speaker pro tempore Sanders.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The following House Files were introduced:
Peterson; Baker; Lohmer; Fenton; Anderson, C.; Theis; Uglem; Pugh; Daniels; Christensen; Wills; Knoblach; Davids; Urdahl; Bennett; Smith and McNamara introduced:
H. F. No. 4027, A bill for an act relating to employment; authorizing family and medical leave savings accounts; providing tax deductions for amounts deposited in family and medical leave savings accounts; exempting amounts deposited from state withholding taxes; providing a family and medical leave savings account tax credit; authorizing grants to small business development centers; appropriating money; amending Minnesota Statutes 2014, sections 290.01, subdivision 19b; 290.06, subdivision 2c; 290.091, subdivision 2; 290.92, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 181; 290.
The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.
Loeffler introduced:
H. F. No. 4028, A bill for an act relating to human services; authorizing the commissioner of human services to develop a plan to increase the minimum hourly pay for direct service staff; requiring a report.
The bill was read for the first time and referred to the Committee on Health and Human Services Reform.
Hortman and Simonson introduced:
H. F. No. 4029, A bill for an act relating to energy; establishing the Renewables First Initiative; requiring electric utilities to replace retiring nonrenewable electric generation with renewable energy and other clean energy resources if reliable and cost-effective; amending Minnesota Statutes 2014, section 216B.2422, subdivision 4, by adding a subdivision; Minnesota Statutes 2015 Supplement, section 216B.2425, by adding a subdivision.
The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.
Pugh, Whelan, Lucero, Hertaus and Scott introduced:
H. F. No. 4030, A bill for an act relating to transportation; requiring certain acknowledgment on driver's license and Minnesota identification card applications; amending Minnesota Statutes 2014, section 171.06, subdivision 3.
The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.
CALENDAR FOR THE DAY
S. F. No. 877 was reported to the House.
Kiel moved to amend S. F. No. 877, the fourth engrossment, as follows:
Delete everything after the enacting clause and insert the following language of H. F. No. 963, the third engrossment:
"Section 1. Minnesota Statutes 2014, section 216B.62, is amended by adding a subdivision to read:
Subd. 5b. Assessments
for certain right-of-way proceedings.
The commission and department may charge a railroad, as defined
in section 237.045, subdivision 1, paragraph (e), and a utility as defined in
section 237.045, subdivision 1, paragraph (f), for the railroad and utility's proportionate
share of expenses incurred by the commission and department in the review and
disposition of disputes contained in petitions filed under section 237.045. A railroad or utility that objects to an
assessment of the commission or department made under this subdivision has the
same right to appeal the assessment under subdivision 4 as does a public
utility.
Sec. 2. [237.045]
RAILROAD RIGHTS-OF-WAY; CROSSING OR PARALLELING BY UTILITIES.
Subdivision
1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given them.
(b) "Crossing" means a
utility facility constructed over, under, or across a railroad right-of-way. The term does not include longitudinal
occupancy of railroad right-of-way.
(c) "Facility" or "utility
facility" means any item of personal property placed over, across, or
underground for use in connection with the storage or conveyance of:
(1) water;
(2) sewage;
(3) electronic, telephone, or
telegraphic communications;
(4) fiber optics;
(5) cable television;
(6) electric energy;
(7) oil;
(8)
natural gas; or
(9) hazardous liquids.
Facility includes, but is not limited to, pipes, sewers,
conduits, cables, valves, lines, wires, manholes, and attachments.
(d) "Parallel" or
"paralleling" means a utility facility that runs adjacent to and
alongside the lines of a railroad for no more than one mile, or another
distance agreed to by the parties, after which the utility facility crosses the
railroad lines, terminates, or exits the railroad right-of-way.
(e) "Railroad" means any
association, corporation, or other entity engaged in operating a common carrier
by rail, or its agents or assigns, including
any entity responsible for the management of crossings or collection of
crossing fees.
(f) "Utility" means
cooperative electric association, electric utility, public utility,
transmission company, gas utility, municipal utility, municipal power agency,
municipality, joint action agency, pipeline company, rural water system, or
telephone, telegraph, telecommunications, cable, or fiber optic carrier. Utility includes contractors or agents.
Subd. 2. Application. (a) This section applies to:
(1) any crossing in existence before
the effective date of this section if an agreement concerning the crossing has
expired or has been terminated. In such
instance, if the collective amount that equals or exceeds the standard crossing
fee under subdivision 6 has been paid to the railroad during the existence of
the crossing, no additional fee is required; and
(2) any crossing commenced on or after
the effective date of this section.
(b) This section does not apply to a
crossing or paralleling of a large energy facility, as defined in section
216B.2421, subdivision 2, regardless of length.
Subd. 3. Right-of-way
crossing; application for permission.
(a) Any utility that intends to place a facility across or upon a
railroad right-of-way shall request prior permission from the railroad.
(b) The request must be in the form of
a completed crossing application, including an engineering design showing the
location of the proposed crossing and the railroad's property, tracks, and
wires that the utility will cross. The
engineering design must conform with guidelines published in the most recent
edition of the (1) National Electric Safety Code, or (2) Manual for Railway
Engineering of the American Railway Engineering and Maintenance-of-Way
Association. The utility must submit the
crossing application on a form provided or approved by the railroad, if
available.
(c) The application must be accompanied
by the standard crossing fee specified in subdivision 6 and evidence of
insurance as required in subdivision 7. The
utility must send the application to the railroad by certified mail, with
return receipt requested.
(d) Within 15 calendar days of receipt
of an application that is not complete, the railroad must inform the applicant
regarding any additional necessary information and submittals.
Subd. 4. Inductive
interference study. (a) A
railroad may require an electric utility to conduct an inductive interference
study if:
(1)
the facility is for an electric energy transmission line of at least 125
kilovolts; and
(2) in accordance with guidelines in
the National Electric Safety Code and the Manual for Railway Engineering of the
American Railway Engineering and Maintenance-of-Way Association, the railroad
reasonably determines that the proposed facility poses a material possibility
of creating induction issues or interference with railroad property.
(b) The utility must arrange and pay
for the study, perform and pay for any costs of modifications to the proposed
facility, and pay for any costs of modifications to railroad property that are
necessary to ensure safe and reliable railroad operations. The study must be performed by a qualified
engineer approved by the railroad.
(c) A utility facility for which an
inductive interference study has been performed under this subdivision may not
be energized until at least 30 calendar days after the railroad receives notice
from the utility that the facility is ready to be energized. Within 30 days of receiving notice that the
facility is ready to be energized, the railroad shall conduct any appropriate
tests to ensure that there will not be any interference with safe operation of
the railroad following energization.
Subd. 5. Right-of-way
crossing; construction. Beginning
35 calendar days after the receipt by the railroad of a completed crossing
application, crossing fee, and certificate of insurance, the utility may
commence the construction of the crossing unless the railroad notifies the
utility in writing that the proposed crossing or paralleling is a serious
threat to the safe operations of the railroad or to the current use of the
railroad right-of-way.
Subd. 6. Standard
crossing fee. (a) Unless
otherwise agreed by the parties or determined under section 237.04, a utility
that crosses a railroad right-of-way, other than a crossing within a public
right-of-way, must pay the railroad a onetime standard crossing fee of $1,250,
adjusted as provided in paragraph (e), for each crossing. Except as otherwise provided in this
subdivision, the standard crossing fee is paid in lieu of any license, permit,
application, processing fee, or any other fee or charge to reimburse the
railroad for direct expenses incurred by the railroad as a result of the
crossing. No other fee or charge may be
assessed to the utility by the railroad.
(b) In addition to the standard
crossing fee, the utility shall also reimburse the railroad for any reasonable
and necessary flagging expense associated with a crossing, based on the
railroad traffic at the crossing.
(c) No crossing fee is required if the
crossing is located within a public right-of-way.
(d) The placement of a single conduit
and its content is a single facility. No
additional fees are payable based on the individual fibers, wires, lines, or
other items contained within the conduit.
(e) Annually each May 1, the standard
crossing fee under paragraph (a) must be adjusted based on the percentage
change in the annual average producer price index for the preceding year
compared to the year prior to the preceding year. Each adjustment is effective for applications
submitted on or after June 1. The
producer price index is final demand, finished consumer energy goods, as
prepared by the Bureau of Labor Statistics of the United States Department of
Labor.
Subd. 7. Certificate
of insurance; coverage. (a)
The certificate of insurance or coverage submitted by:
(1) a municipal utility or municipality
must include commercial general liability insurance or an equivalent form with
a limit of at least $1,000,000 for each occurrence and an aggregate of at least
$2,000,000;
(2) a utility providing natural gas
service must include commercial general liability insurance with a combined
single limit of at least $5,000,000 for each occurrence and an aggregate limit
of at least $10,000,000; or
(3)
a utility not specified in clauses (1) and (2) must include commercial general
liability insurance with a combined single limit of at least $2,000,000 for
each occurrence and an aggregate limit of at least $6,000,000.
(b) The railroad may require protective
liability insurance with a combined single limit of $2,000,000 for each
occurrence and $6,000,000 aggregate. The
coverage may be provided by a blanket railroad protective liability insurance
policy if the coverage, including the coverage limits, applies separately to
each individual crossing. The coverage
is required only during the period of construction, repair, or replacement of
the facility.
(c) The certificate of insurance shall
be from an insurer of the utility's choosing.
Subd. 8. Objection
to crossing; petition to Public Utilities Commission. (a) If a railroad objects to the
proposed crossing or paralleling due to the proposal being a serious threat to
the safe operations of the railroad or to the current use of the railroad
right-of-way, the railroad must notify the utility of the objection and the
specific basis for the objection. The railroad
shall send the notice of objection to the utility by certified mail, with
return receipt requested.
(b) If the parties are unable to
resolve the objection, either party may petition the Public Utilities
Commission for assistance via mediation or arbitration
of the disputed crossing application.
The petition must be filed within 60 days of receipt of the
objection. Before filing a petition, the
parties shall make good faith efforts to resolve the objection.
(c) If a petition is filed, the Public Utilities
Commission must issue an order within 120 days of filing of the petition. The order may be appealed under chapter 14
and section 216B.27. The Public
Utilities Commission must assess the costs associated with a petition equitably
among the parties.
Subd. 9. Additional
requirements; objection and petition to Public Utilities Commission. (a) If a railroad imposes additional
requirements on a utility for crossing its lines, other than the proposed
crossing being a serious threat to the safe operations of the railroad or to
the current use of the railroad right-of-way, the utility may object to one or
more of the requirements. If it objects,
the utility shall provide notice of the objection and the specific basis for
the objection to the railroad by certified mail, with return receipt requested.
(b) If the parties are unable to
resolve the objection, either party may petition the Public Utilities
Commission for resolution or modification of the additional requirements. The petition must be filed within 60 days of
receipt of the objection. Before filing
a petition, the parties shall make good faith efforts to resolve the objection.
(c) If a petition is filed, the Public
Utilities Commission shall determine, after notice and opportunity for hearing,
whether special circumstances exist that necessitate additional requirements
for the placement of the crossing. The
Public Utilities Commission must issue an order within 120 days of filing of
the petition. The order may be appealed
under chapter 14 and section 216B.27. The
Public Utilities Commission shall assess the costs associated with a petition
equitably among the parties.
Subd. 10. Operational
relocation. (a) A railroad
may require a utility to relocate a facility when the railroad determines that
relocation is essential to accommodate railroad operations, and the relocation
is not arbitrary or unreasonable. Before
agreeing to the relocation, a utility may require a railroad to provide a
statement and supporting documentation identifying the operational necessity
for requesting the relocation. A utility
must perform the relocation within a reasonable period of time following the
agreement.
(b) Relocation is at the expense of the
small utility. A standard fee under
subdivision 6 may not be imposed for relocation.
Subd. 11. Existing
agreements. Nothing in this
section prevents a railroad and a utility from continuing under an existing
agreement, or from otherwise negotiating the terms and conditions applicable to
a crossing or the resolution of any disputes relating to the crossing. A utility may elect to undertake a crossing
or paralleling under this section or section 237.04. Nothing in this section impairs the authority
of a utility to secure crossing rights by easement through exercise of the
power of eminent domain.
Sec. 3. APPROPRIATION.
$80,000 in fiscal year 2017 is
appropriated from the general fund to the Public Utilities Commission for the purposes of section 2. This appropriation is added to the
appropriation in Laws 2015, First Special Session chapter 1, article 1,
section 9. The base for this
appropriation in fiscal year 2018 and after is $21,000."
Delete the title and insert:
"A bill for an act relating to utilities; establishing requirements relating to crossing railroad rights-of-way by utilities; appropriating money; amending Minnesota Statutes 2014, section 216B.62, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 237."
The motion prevailed and the amendment was adopted.
Kiel moved to amend S. F. No. 877, the fourth engrossment, as amended, as follows:
Page 4, after line 34, insert:
"(c) The insurance coverage under paragraphs (a) to (b) must not contain an exclusion or limitation related to railroads or to activities within 50 feet of railroad property."
Page 4, line 35, delete "(c)" and insert "(d)" and delete "shall" and insert "must"
The motion prevailed and the amendment was adopted.
Swedzinski moved to amend S. F. No. 877, the fourth engrossment, as amended, as follows:
Page 2, line 18, after the period, insert ""Railroad" does not include a regional rail authority as defined in section 398A.01, subdivision 2, that is owned by at least five counties. The exclusion for a regional rail authority sunsets July 1, 2021."
The motion did not prevail and the amendment was not adopted.
S. F. No. 877, A bill for an act relating to utilities; providing assessment authority; establishing requirements relating to crossing railroad rights-of-way by utilities; amending Minnesota Statutes 2014, section 216B.62, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 237.
The bill was read for the third time, as amended, and placed upon its final passage.
The question was taken on the passage of the bill and the roll was called. There were 125 yeas and 1 nay as follows:
Those who voted in the affirmative were:
Anderson, C.
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Atkins
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Drazkowski
Ecklund
Erhardt
Erickson
Fabian
Fenton
Fischer
Flanagan
Franson
Freiberg
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kiel
Knoblach
Koznick
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mahoney
Marquart
Masin
McDonald
McNamara
Melin
Metsa
Miller
Moran
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Pinto
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Sundin
Swedzinski
Theis
Thissen
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Yarusso
Youakim
Zerwas
Spk. Daudt
Those who voted in the negative were:
Albright
The bill was passed, as amended, and its title agreed to.
The following Conference Committee Reports were received:
CONFERENCE COMMITTEE REPORT ON H. F. No. 848
A bill for an act relating to financing and operation of state and local government; making changes to individual income, corporate franchise, property, sales and use, excise, estate, mineral, tobacco, gambling, special, local, and other taxes and tax-related provisions; providing for long-term care savings plans; modifying business income tax credits; modifying income tax subtractions and additions; modifying the definition of resident for income tax purposes; modifying the dependent care credit, education credit, and research credit; providing credits for MNsure premium payments, attaining a master's degree, student loan payments, college savings plans, and job training centers; modifying reciprocity provisions; providing an additional personal and dependent exemption; allowing a reverse referendum for property tax levies under certain circumstances; modifying dates for local referenda related to spending; changing proposed levy certification dates for special taxing districts; modifying general property tax provisions; providing for joint county and township assessment agreements; modifying the definition of agricultural homestead; modifying property classification definitions; permanently extending the market value exclusion for surviving spouses of deceased service members and permanently disabled veterans; modifying provisions for appeals and equalizations courses; providing a tax credit for overvalued property; modifying and phasing out the state general levy; modifying proposed levy provisions; modifying due dates for property taxes; changing
withdrawal procedures for the Sustainable Forest Incentive Program; authorizing valuation exclusion for certain improvements to homestead and commercial-industrial property; providing an increased estate tax exemption amount and other estate tax provisions; providing for certain economic development projects; providing for the Minnesota New Markets Jobs Act; restricting expenditures and other powers related to certain rail projects; providing for additional border city zone allocations; modifying general tax increment financing provisions; modifying provisions for the Destination Medical Center; modifying general and local sales and use tax provisions; modifying sales tax definitions and refunds related to petroleum and special fuel, durable medical equipment, instructional materials, propane tanks, bullion, capital equipment, and nonprofit groups; providing for a vendor allowance; providing exemptions for animal shelters, city celebrations, BMX tracks, and certain building and construction materials; repealing the tax on digital products; providing a separate rate for certain modular housing; modifying gambling taxes; providing a definition and rate of tax for vapor products under the tobacco tax; modifying cigarette stamp provisions; modifying rates for pull tabs sold at bingo halls; modifying miscellaneous tax provisions; modifying sales tax deposits, accounts, and provisions for transportation purposes; modifying local government aids and credits; providing for a school building bond agricultural credit; modifying assessor accreditation; accelerating the repeal of MinnesotaCare provider taxes; creating a county program aid working group; establishing trust fund accounts; providing trust fund payments to counties; modifying provisions related to payments in lieu of taxes for natural resources land; repealing the political contribution refund; making various conforming and technical changes; requiring reports; appropriating money; amending Minnesota Statutes 2014, sections 16A.726; 40A.18, subdivision 2; 62V.05, subdivision 5; 97A.055, subdivision 2; 97A.056, subdivision 1a, by adding subdivisions; 116J.8737, subdivisions 5, 12; 116P.02, subdivision 1, by adding a subdivision; 123B.63, subdivision 3; 126C.17, subdivision 9; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.46; 237.19; 270A.03, subdivision 7; 270B.14, subdivision 17; 270C.13, subdivision 1; 270C.9901; 273.061, subdivision 4; 273.072, by adding a subdivision; 273.124, subdivision 14; 273.13, subdivisions 23, 25, 34; 274.014, subdivision 2; 275.025; 275.065, subdivisions 1, 3; 275.07, subdivisions 1, 2; 275.08, subdivision 1b; 275.60; 276.04, subdivisions 1, 2; 278.12; 279.01, subdivisions 1, 3; 279.37, subdivision 2; 282.01, subdivision 4; 282.261, subdivision 2; 289A.02, subdivision 7, as amended; 289A.10, subdivision 1; 289A.12, by adding a subdivision; 289A.20, subdivision 4; 289A.50, subdivision 1; 290.01, subdivisions 6, 7, 19, as amended, 19a, 19b, 19d, 29, 31, as amended; 290.06, by adding subdivisions; 290.067, subdivision 1; 290.0671, subdivisions 1, 6a; 290.0672, subdivision 2; 290.0674, subdivisions 1, 2, by adding a subdivision; 290.0677, subdivision 2; 290.068, subdivisions 1, 3, 6a, by adding a subdivision; 290.081; 290.091, subdivision 2; 290.191, subdivision 5; 290A.03, subdivision 15, as amended; 290C.10; 291.005, subdivision 1, as amended; 291.016, subdivision 3; 291.03, subdivisions 1, 1d; 296A.01, subdivision 12; 296A.08, subdivision 2; 296A.16, subdivision 2; 297A.61, subdivisions 3, 4, 38; 297A.62, subdivision 3; 297A.668, subdivisions 1, 2, 6a, 7; 297A.669, subdivision 14a; 297A.67, subdivisions 7a, 13a, by adding subdivisions; 297A.68, subdivisions 5, 19; 297A.70, subdivisions 4, 10, 14, by adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.77, subdivision 3; 297A.815, subdivision 3; 297A.94; 297A.992, subdivisions 1, 6, 6a, by adding a subdivision; 297A.994, subdivision 4; 297E.02, subdivisions 1, 6; 297F.01, subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by adding subdivisions; 297F.06, subdivisions 1, 4; 297F.08, subdivisions 5, 7, 8; 297F.09, subdivision 1; 297I.20, by adding a subdivision; 298.24, subdivision 1; 309.53, subdivision 3; 345.42, by adding a subdivision; 349.12, by adding a subdivision; 412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045, subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1; 469.053, subdivision 5; 469.0724; 469.107, subdivision 2; 469.169, by adding a subdivision; 469.174, subdivisions 12, 14; 469.175, subdivision 3; 469.176, subdivisions 4, 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 469.40, subdivision 11, as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; 469.47, subdivision 4, as amended; 471.57, subdivision 3; 471.571, subdivision 3; 471.572, subdivisions 2, 4; 473.13, by adding a subdivision; 473.39, by adding a subdivision; 473.446, subdivision 1; 473H.09; 473H.17, subdivision 1a; 475.59; 477A.013, subdivision 10, by adding a subdivision; 477A.017, subdivision 2, by adding a subdivision; 477A.03, subdivisions 2a, 2b; 477A.10; 477A.11, by adding subdivisions; 609.5316, subdivision 3; 611.27, subdivisions 13, 15; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 1999, chapter 243, article 4,
section 18, subdivision 1, as amended; Laws 2008, chapter 366, article 7, section 20; Laws 2009, chapter 88, article 5, section 17, as amended; Laws 2011, First Special Session chapter 9, article 6, section 97, subdivision 6; Laws 2014, chapter 308, article 6, section 7; proposing coding for new law in Minnesota Statutes, chapters 11A; 16A; 16B; 116J; 116P; 117; 273; 274; 275; 290; 297A; 416; 459; 473; 477A; 609; proposing coding for new law as Minnesota Statutes, chapter 116X; repealing Minnesota Statutes 2014, sections 10A.322, subdivision 4; 13.4967, subdivision 2; 205.10, subdivision 3; 290.06, subdivision 23; 290.067, subdivisions 2, 2a, 2b; 297A.61, subdivisions 50, 51, 52, 53, 54, 55, 56; 297A.992, subdivision 12; 297F.05, subdivision 1a; 477A.017, subdivision 3; 477A.085; 477A.19; Minnesota Rules, part 4503.1400, subpart 4.
May 22, 2016
The Honorable Kurt L. Daudt
Speaker of the House of Representatives
The Honorable Sandra L. Pappas
President of the Senate
We, the undersigned conferees for H. F. No. 848 report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 848 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
PROPERTY TAX
Section 1.
[103C.333] COUNTY LEVY
AUTHORITY.
Notwithstanding any other law to the
contrary, a county levying a tax under section 103C.331 shall not include any
taxes levied under those authorities in the levy certified under section
275.07, subdivision 1, paragraph (a). A
county levying under section 103C.331 shall separately certify that amount, and
the auditor shall extend that levy as a special taxing district levy under
sections 275.066 and 275.07, subdivision 1, paragraph (b).
EFFECTIVE
DATE. This section is
effective for certifications made in 2016 and thereafter.
Sec. 2. Minnesota Statutes 2014, section 138.053, is amended to read:
138.053
COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
The governing body of any home rule charter or statutory city or town may annually appropriate from its general fund an amount not to exceed 0.02418 percent of estimated market value, derived from ad valorem taxes on property or other revenues, to be paid to the historical society of its respective city, town, or county to be used for the promotion of historical work and to aid in defraying the expenses of carrying on the historical work in the county. No city or town may appropriate any funds for the benefit of any historical society unless the society is affiliated with and approved by the Minnesota Historical Society.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. [216B.1647]
PROPERTY TAX ADJUSTMENT; COOPERATIVE ASSOCIATION.
A cooperative electric association that
has elected to be subject to rate regulation under section 216B.026 is eligible
to file with the commission for approval of an adjustment for real and personal
property taxes, fees, and permits.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision to read:
Subd. 100. Electric
generation facility; personal property.
(a) Notwithstanding subdivision 9, clause (a), attached
machinery, transformers, and other personal property that (1) is part of a
natural gas-fired combined heat and power facility, (2) generates electricity
and steam for at least partial consumption as part of an industrial use,
including corn processing, (3) is less than 80,000 kilowatts of installed
capacity, and (4) meets the requirements of this subdivision, are exempt.
(b) At the time of construction, the
facility must:
(1) be designed to utilize natural gas
as a primary fuel;
(2) not be owned by a public utility as
defined in section 216B.02, subdivision 4;
(3) be located within 15 miles of an
existing natural gas pipeline and within one mile of an existing electrical transmission
substation; and
(4) be located outside the metropolitan
area as defined in section 473.121, subdivision 2.
(c) Construction of the facility must
commence after January 1, 2015, and before January 1, 2019. Property eligible for this exemption does not
include electric transmission lines and interconnections, or gas pipelines and
interconnections, appurtenant to the property or the facility.
(d) In lieu of personal property taxes
each year, the owner of the combined heat and power facility shall pay a base
payment of 0.14 cents per kilowatt-hour of electricity produced by the facility
during the previous calendar year. In
addition to the base payment and in lieu of personal property taxes each year,
the owner of the combined heat and power facility shall pay an additional
payment of 0.08 cents per kilowatt-hour of electricity produced by the facility
during the previous calendar year if, during the previous calendar year, the
host township or city had an agreement with a municipal utilities commission to
share the cost of acquiring, developing, and marketing land for industrial
purposes, and under such agreement both the host township or city and the
municipal utilities commission provided funds during the previous calendar year
as part of a cost-sharing agreement. The
additional payment to be paid by the owner of the combined heat and power
facility shall be the lesser of 0.08 cents per kilowatt-hour of electricity
produced by the facility or 57 percent of the amount funded by the host township
or city during the previous calendar year pursuant to the aforementioned
cost-sharing agreement. The payments
imposed under this section shall be paid to the county treasurer for the
benefit of the host township or city, at the time and in the manner provided
for payment of property taxes under section 277.01, subdivision 3. If unpaid, the payments are subject to the
same enforcement, collection, and interest and penalties as delinquent personal
property taxes. Except to the extent
inconsistent with this section, sections 277.01 to 277.24 and 278.01 to 278.13
apply to the payments imposed under this section, and for purposes of those
sections the payments imposed under this section are considered personal
property taxes.
(e) The owner of the combined heat and
power facility shall file a report with the commissioner of revenue annually on
or before February 1, detailing the amount of electricity in kilowatt-hours
that was produced by the facility and the amount funded by the host township or
city in accordance with the cost-sharing agreement described
in
paragraph (d) during the previous calendar year. The commissioner shall prescribe the form of
the report. The report must contain the
information required by the commissioner to determine the payments due under
this section payable in the current year.
If an owner of the facility subject to taxation under this section fails
to file the report by the due date, the commissioner of revenue shall determine
the payments based upon the nameplate capacity of the system multiplied by a
capacity factor of 85 percent.
EFFECTIVE
DATE. This section is
effective for taxes payable beginning in 2017 and thereafter.
Sec. 5. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision to read:
Subd. 101. Electric
generation facility; personal property.
(a) Notwithstanding subdivision 9, clause (a), attached machinery
and other personal property that is part of an electric generation facility
with more than 35 megawatts and less than 40 megawatts of installed capacity
and that meets the requirements of this subdivision is exempt from taxes and
payments in lieu of taxes. The facility
must:
(1) be designed to utilize natural gas
as a primary fuel;
(2) be owned and operated by a
municipal power agency as defined in section 453.52, subdivision 8;
(3) be located within 800 feet of an
existing natural gas pipeline;
(4) satisfy a resource deficiency
identified in an approved integrated resource plan filed under section
216B.2422;
(5) be located outside the metropolitan
area as defined under section 473.121, subdivision 2; and
(6) have received, by resolution, the
approval of the governing bodies of the city and county in which it is located
for the exemption of personal property provided by this subdivision.
(b) Construction of the facility must
have been commenced after January 1, 2015, and before January 1, 2016. Property eligible for this exemption does not
include electric transmission lines and interconnections or gas pipelines and
interconnections appurtenant to the property or the facility.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2017 and thereafter.
Sec. 6. Minnesota Statutes 2014, section 272.162, is amended to read:
272.162
RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.
Subdivision 1. Conditions restricting transfer. When a deed or other instrument conveying a parcel of land is presented to the county auditor for transfer or division under sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its net tax capacity in the official records and shall not certify the instrument as provided in section 272.12, if:
(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;
(b) The part conveyed appears within the area of application of municipal or county subdivision regulations adopted and filed under section 394.35 or section 462.36, subdivision 1; and
(c) The part conveyed is part of or constitutes a subdivision as defined in section 462.352, subdivision 12.
Subd. 2. Conditions allowing transfer. (a) Notwithstanding the provisions of subdivision 1, the county auditor may transfer or divide the land and its net tax capacity and may certify the instrument if the instrument contains a certification by the clerk of the municipality or designated county planning official:
(a) (1) that the
municipality's or county's subdivision regulations do not apply;
(b) (2) that the subdivision
has been approved by the governing body of the municipality or county;
or
(c) (3) that the
restrictions on the division of taxes and filing and recording have been waived
by resolution of the governing body of the municipality or county in the
particular case because compliance would create an unnecessary hardship and
failure to comply would not interfere with the purpose of the regulations.
(b) If any of the conditions for certification by the municipality or county as provided in this subdivision exist and the municipality or county does not certify that they exist within 24 hours after the instrument of conveyance has been presented to the clerk of the municipality or designated county planning official, the provisions of subdivision 1 do not apply.
(c) If an unexecuted instrument is presented to the municipality or county and any of the conditions for certification by the municipality or county as provided in this subdivision exist, the unexecuted instrument must be certified by the clerk of the municipality or the designated county planning official.
Subd. 3. Applicability of restrictions. (a) This section does not apply to the exceptions set forth in section 272.12.
(b) This section applies only to land within municipalities or counties which choose to be governed by its provisions. A municipality or county may choose to have this section apply to the property within its boundaries by filing a certified copy of a resolution of its governing body making that choice with the auditor and recorder of the county in which it is located.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 34, is amended to read:
Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a portion of the market value of property owned by a veteran and serving as the veteran's homestead under this section is excluded in determining the property's taxable market value if the veteran has a service-connected disability of 70 percent or more as certified by the United States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the veteran must have been honorably discharged from the United States armed forces, as indicated by United States Government Form DD214 or other official military discharge papers.
(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, $300,000 of market value is excluded.
(c) If a disabled veteran qualifying for a
valuation exclusion under paragraph (b), clause (2), predeceases the veteran's
spouse, and if upon the death of the veteran the spouse holds the legal or
beneficial title to the homestead and permanently resides there, the exclusion
shall carry over to the benefit of the veteran's spouse for the current
taxes payable year and for eight additional taxes payable years or until
such time as the spouse remarries, or sells, transfers, or otherwise disposes
of the property, whichever comes first. Qualification under this paragraph requires an
annual application under paragraph (h).
(d)
If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service‑connected cause while serving honorably in
active service, as indicated on United States Government Form DD1300 or DD2064,
holds the legal or beneficial title to a homestead and permanently resides
there, the spouse is entitled to the benefit described in paragraph (b), clause
(2), for eight taxes payable years, or until such time as the spouse
remarries or sells, transfers, or otherwise disposes of the property,
whichever comes first.
(e) If a veteran meets the disability criteria of paragraph (a) but does not own property classified as homestead in the state of Minnesota, then the homestead of the veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify for under paragraph (b).
(f) In the case of an agricultural homestead, only the portion of the property consisting of the house and garage and immediately surrounding one acre of land qualifies for the valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not eligible for the market value exclusion under subdivision 35, or classification under subdivision 22, paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must apply to the assessor by July 1 of each assessment year, except that an annual reapplication is not required once a property has been accepted for a valuation exclusion under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and the property continues to qualify until there is a change in ownership. For an application received after July 1 of any calendar year, the exclusion shall become effective for the following assessment year.
(i) A first-time application by a qualifying spouse for the market value exclusion under paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of the United States Department of Veterans Affairs for assistance as the primary provider of personal care services for an eligible veteran under the Program of Comprehensive Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; and
(4) "veteran" has the meaning given the term in section 197.447.
(k) The purpose of this provision of law providing a level of homestead property tax relief for gravely disabled veterans, their primary family caregivers, and their surviving spouses is to help ease the burdens of war for those among our state's citizens who bear those burdens most heavily.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 8. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:
Subdivision 1. Levy
amount. The state general levy is
levied against commercial-industrial property and seasonal residential
recreational property, as defined in this section. The state general levy base amount for
commercial-industrial property is $592,000,000 $762,664,000
for taxes payable in 2002 2017.
The state general levy base amount for seasonal-recreational property is
$43,111,000 for taxes payable in 2017.
For taxes payable in subsequent years, the each levy base
amount is increased each year by multiplying the levy base amount for the
prior year by the sum of one plus the rate of increase, if any, in the implicit price deflator for government consumption expenditures and gross investment for state and local governments prepared by the Bureau of Economic Analysts of the United States Department of Commerce for the 12-month period ending March 31 of the year prior to the year the taxes are payable. The tax under this section is not treated as a local tax rate under section 469.177 and is not the levy of a governmental unit under chapters 276A and 473F.
The commissioner shall increase or
decrease the preliminary or final rate rates for a year as
necessary to account for errors and tax base changes that affected a
preliminary or final rate for either of the two preceding years. Adjustments are allowed to the extent that
the necessary information is available to the commissioner at the time the
rates for a year must be certified, and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal residential recreational property reported on the abstracts of tax lists submitted under section 275.29 that was not reported on the abstracts of assessment submitted under section 270C.89 for the same year.
The commissioner may, but need not, make adjustments if the total difference in the tax levied for the year would be less than $100,000.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 2, is amended to read:
Subd. 2. Commercial-industrial
tax capacity. For the purposes of
this section, "commercial-industrial tax capacity" means the tax
capacity of all taxable property classified as class 3 or class 5(1) under
section 273.13, except for excluding:
(1) the first $100,000 of market value of each parcel of
commercial-industrial net tax capacity as defined under section 273.13,
subdivision 24, clauses (1) and (2); (2) electric generation attached
machinery under class 3; and (3) property described in section
473.625. County commercial-industrial
tax capacity amounts are not adjusted for the captured net tax capacity of a
tax increment financing district under section 469.177, subdivision 2, the net
tax capacity of transmission lines deducted from a local government's total net
tax capacity under section 273.425, or fiscal disparities contribution and
distribution net tax capacities under chapter 276A or 473F. For purposes of this subdivision, the
procedures for determining eligibility for tier 1 under section 273.13,
subdivision 24, clauses (1) and (2), shall apply in determining the portion of
a property eligible to be considered within the first $100,000 of market value.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:
Subd. 4. Apportionment
and levy of state general tax. Ninety-five
percent of The state general tax must be levied by applying a uniform rate
to all commercial-industrial tax capacity and five percent of the state
general tax must be levied by applying a uniform rate to all seasonal residential
recreational tax capacity. On or before
October 1 each year, the commissioner of revenue shall certify the
preliminary state general levy rates to each county auditor that must be used
to prepare the notices of proposed property taxes for taxes payable in the
following year. By January 1 of each
year, the commissioner shall certify the final state general levy rate rates
to each county auditor that shall be used in spreading taxes.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
Subdivision
1. Proposed
levy. (a) Notwithstanding any law or
charter to the contrary, on or before September 30, each county and
each, home rule charter or statutory city, and special taxing
district, excluding the Metropolitan Council and the Metropolitan Mosquito
Control District, shall certify to the county auditor the proposed property
tax levy for taxes payable in the following year. The proposed levy certification date for
the Metropolitan Council shall be as prescribed in sections 473.249 and 473.446. The proposed levy certification date for the
Metropolitan Mosquito Control District shall be as prescribed in section
473.711.
(b) Notwithstanding any law or charter to the
contrary, on or before September 15, each town and each special taxing
district, the Metropolitan Council, and the Metropolitan Mosquito
Control District shall adopt and certify to the county auditor a proposed
property tax levy for taxes payable in the following year. For towns, the final certified levy shall
also be considered the proposed levy.
(c) On or before September 30, each school district that has not mutually agreed with its home county to extend this date shall certify to the county auditor the proposed property tax levy for taxes payable in the following year. Each school district that has agreed with its home county to delay the certification of its proposed property tax levy must certify its proposed property tax levy for the following year no later than October 7. The school district shall certify the proposed levy as:
(1) a specific dollar amount by school district fund, broken down between voter-approved and non‑voter‑approved levies and between referendum market value and tax capacity levies; or
(2) the maximum levy limitation certified by the commissioner of education according to section 126C.48, subdivision 1.
(d) If the board of estimate and taxation or any similar board that establishes maximum tax levies for taxing jurisdictions within a first class city certifies the maximum property tax levies for funds under its jurisdiction by charter to the county auditor by the date specified in paragraph (a), the city shall be deemed to have certified its levies for those taxing jurisdictions.
(e) For purposes of this section, "special taxing district" means a special taxing district as defined in section 275.066. Intermediate school districts that levy a tax under chapter 124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing districts for purposes of this section.
(f) At the meeting at which a taxing authority, other than a town, adopts its proposed tax levy under this subdivision, the taxing authority shall announce the time and place of its subsequent regularly scheduled meetings at which the budget and levy will be discussed and at which the public will be allowed to speak. The time and place of those meetings must be included in the proceedings or summary of proceedings published in the official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.
EFFECTIVE DATE. This section is effective beginning with proposed
levy certifications for taxes payable in 2017.
Sec. 12. Minnesota Statutes 2014, section 275.066, is amended to read:
275.066
SPECIAL TAXING DISTRICTS; DEFINITION.
For the purposes of property taxation and property tax state aids, the term "special taxing districts" includes the following entities:
(1) watershed districts under chapter 103D;
(2) sanitary districts under sections 442A.01 to 442A.29;
(3) regional sanitary sewer districts under sections 115.61 to 115.67;
(4) regional public library districts under section 134.201;
(5) park districts under chapter 398;
(6) regional railroad authorities under chapter 398A;
(7) hospital districts under sections 447.31 to 447.38;
(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
(10) regional development commissions under sections 462.381 to 462.398;
(11) housing and redevelopment authorities under sections 469.001 to 469.047;
(12) port authorities under sections 469.048 to 469.068;
(13) economic development authorities under sections 469.090 to 469.1081;
(14) Metropolitan Council under sections 473.123 to 473.549;
(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter 437, section 1;
(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections 1 to 6;
(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5, section 39;
(21) Middle Mississippi River Watershed Management Organization under sections 103B.211 and 103B.241;
(22) emergency medical services special taxing districts under section 144F.01;
(23) a county levying under the authority of
section 103B.241, 103B.245, or 103B.251, or 103C.331;
(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home under Laws 2003, First Special Session chapter 21, article 4, section 12;
(25) an airport authority created under section 360.0426; and
(26) any other political subdivision of the state of Minnesota, excluding counties, school districts, cities, and towns, that has the power to adopt and certify a property tax levy to the county auditor, as determined by the commissioner of revenue.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2017 and thereafter.
Sec. 13. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:
Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), the taxes voted by cities, counties, school districts, and special districts shall be certified by the proper authorities to the county auditor on or before five working days after December 20 in each year. A town must certify the levy adopted by the town board to the county auditor by September 15 each year. If the town board modifies the levy at a special town meeting after September 15, the town board must recertify its levy to the county auditor on or before five working days after December 20. If a city, town, county, school district, or special district fails to certify its levy by that date, its levy shall be the amount levied by it for the preceding year.
(b)(i) The taxes voted by counties under
sections 103B.241, 103B.245, and 103B.251, and 103C.331 shall be
separately certified by the county to the county auditor on or before five
working days after December 20 in each year.
The taxes certified shall not be reduced by the county auditor by the
aid received under section 273.1398, subdivision 3. If a county fails to certify its levy by that
date, its levy shall be the amount levied by it for the preceding year.
(ii) For purposes of the proposed property tax notice under section 275.065 and the property tax statement under section 276.04, for the first year in which the county implements the provisions of this paragraph, the county auditor shall reduce the county's levy for the preceding year to reflect any amount levied for water management purposes under clause (i) included in the county's levy.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2017 and thereafter.
Sec. 14. Minnesota Statutes 2014, section 276.11, subdivision 1, is amended to read:
Subdivision 1. Generally. As soon as practical after the settlement
day determined in section 276.09, the county treasurer shall pay to the
treasurer of a town, city, school district, or special district, on the warrant
of the county auditor, all receipts of taxes levied by the taxing district and
deliver up all orders and other evidences of indebtedness of the taxing
district, taking triplicate receipts for them.
The treasurer shall file one of the receipts with the county auditor,
and shall return one by mail on the day of its receipt to the clerk of the
town, city, school district, or special district to which payment was made. The clerk shall keep the receipt in the
clerk's office. Upon written request of
the taxing district, to the extent practicable, the county treasurer shall make
partial payments of amounts collected periodically in advance of the next
settlement and distribution. A statement
prepared by the county treasurer must accompany each payment. It must state the years for which taxes
included in the payment were collected and, for each year, the amount of the
taxes and any penalties on the tax. Upon
written request of a taxing district, except school districts, the county
treasurer shall pay at least 70 percent of the estimated collection within 30
days after the settlement date determined in section 276.09. Within seven eight business
days after the due date, or 28 calendar days after the postmark date on the
envelopes containing real or personal property tax statements, whichever is
latest, the county treasurer shall pay to the treasurer of the school districts
50 percent of the estimated collections arising from taxes levied by and
belonging to the school district, unless the school district elects to receive
50 percent of the estimated collections arising from taxes levied by and
belonging to the school district after making a proportionate reduction to
reflect any loss in collections as the result of any delay in mailing tax
statements. In that case, 50 percent of
those adjusted, estimated collections shall be paid by the county treasurer to
the treasurer of the school district within seven business days of the due date. The remaining 50 percent of the estimated
collections must be paid to the treasurer of the school district within the
next seven business days of the
later of the dates in the preceding sentence, unless the school district elects to receive the remainder of its estimated collections after a proportionate reduction has been made to reflect any loss in collections as the result of any delay in mailing tax statements. In that case, the remaining 50 percent of those adjusted, estimated collections shall be paid by the county treasurer to the treasurer of the school district within 14 days of the due date. The treasurer shall pay the balance of the amounts collected to a municipal corporation or other body within 60 days after the settlement date determined in section 276.09. After 45 days interest at an annual rate of eight percent accrues and must be paid to the taxing district. Interest must be paid upon appropriation from the general revenue fund of the county. If not paid, it may be recovered by the taxing district, in a civil action.
EFFECTIVE
DATE. This section is
effective for property taxes payable in 2017 and thereafter.
Sec. 15. Minnesota Statutes 2014, section 276.111, is amended to read:
276.111
DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT.
Within seven
eight business days after October 15, the county treasurer shall pay to
the school districts 50 percent of the estimated collections arising
from taxes levied by and belonging to the school district from the settlement
day determined in section 276.09 to October 20.
The remaining 50 percent of the estimated tax collections must be paid
to the school district within the next seven business days. Within ten 11 business days
after November 15, the county treasurer shall pay to the school district 100
percent of the estimated collections arising from taxes levied by and belonging
to the school districts from October 20 to November 20.
Within ten 11 business days
after November 15, the county treasurer shall pay to each taxing district,
except any school district, 100 percent of the estimated collections arising
from taxes levied by and belonging to each taxing district from the settlement
day determined in section 276.09 to November 20.
On or before January 5, the county treasurer shall make full settlement with the county auditor of all receipts collected from the settlement day determined in section 276.09 to December 31. After subtracting any tax distributions that have been made to the taxing districts in October and November, the treasurer shall pay to each of the taxing districts on or before January 25, the balance of the tax amounts collected on behalf of each taxing district. Interest accrues at an annual rate of eight percent and must be paid to the taxing district if this final settlement amount is not paid by January 25. Interest must be paid upon appropriation from the general revenue fund of the county. If not paid, it may be recovered by the taxing district in a civil action.
EFFECTIVE
DATE. This section is
effective for property taxes payable in 2017 and thereafter.
Sec. 16. Minnesota Statutes 2014, section 278.12, is amended to read:
278.12
REFUNDS OF OVERPAYMENT.
If upon final determination the petitioner has paid more than the amount so determined to be due, judgment shall be entered in favor of the petitioner for such excess, and upon filing a copy thereof with the county auditor the auditor shall forthwith draw a warrant upon the county treasurer for the payment thereof; provided that, with the consent of the petitioner, the county auditor may, in lieu of drawing such warrant, issue to the petitioner a certificate stating the amount of such judgment, which amount may be used to apply upon any taxes due or to become due over a prescribed period of years for the taxing district or districts whose taxes or assessments are reduced, or their successors in the event of a reorganization or reincorporation of any such taxing district. In the event the auditor shall issue a warrant for refund or certificates, the amount thereof shall be charged to the state and other taxing districts in proportion to the amount of their respective taxes included in the levy and deduct the same in the subsequent distribution of any tax proceeds to the state or such taxing districts, and upon receiving any such certificate in payment of other taxes, the amount thereof shall be distributed to the state and other taxing districts in
proportion to the amount of their respective taxes included in the levy; provided that if in the judgment the levy of one or more of the districts be found to be illegal, to the extent that the tax so levied is reduced on account of the illegal levies, the amount to be charged back shall be charged to the districts and the amount thereof deducted from any distributions thereafter made to them.
EFFECTIVE
DATE. This section is
effective for refunds for overpayment of taxes payable in 2016 and thereafter.
Sec. 17. Minnesota Statutes 2014, section 278.14, subdivision 1, is amended to read:
Subdivision 1. Applicability. A county must pay a refund of a
mistakenly billed tax as provided in this section. As used in this section, "mistakenly
billed tax" means an amount of property tax that was billed, to the extent
the amount billed exceeds the accurate tax amount due to a misclassification
of the owner's property under section 273.13 or a mathematical error in the
calculation of the tax on the owner's property, together with any penalty or
interest paid on that amount. This
section applies only to taxes payable in the current year and the two prior
years. As used in this section,
"mathematical error" is limited to an error in:
(1) converting the market value of a property to tax capacity or to a referendum market value;
(2) application of the tax rate as computed by the auditor under sections 275.08, subdivisions 1b, 1c, and 1d; 276A.06, subdivisions 4 and 5; and 473F.07, subdivisions 4 and 5, to the property's tax capacity or referendum market value; or
(3) calculation of or eligibility for a credit.
The remedy provided under this section
does not apply to a misclassification under section 273.13 that is due to the
failure of the property owner to apply for the correct classification as
required by law.
EFFECTIVE
DATE. This section is
effective based on property taxes payable in 2017 and thereafter.
Sec. 18. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:
Subdivision 1. Due
dates; penalties. Except as
provided in subdivisions 3 to 5, on May 16 or 21 days after the postmark date
on the envelope containing the property tax statement, whichever is later, a
penalty accrues and thereafter is charged upon all unpaid taxes on real estate
on the current lists in the hands of the county treasurer. The (a)
When the taxes against any tract or lot exceed $100, one-half of the amount of
tax due must be paid prior to May 16, and the remaining one-half must be
paid prior to the following October 16. If
either tax amount is unpaid as of its due date, a penalty is imposed
at a rate of two percent on homestead property until May 31 and four percent
on nonhomestead property. If complete
payment has not been made by the first day of the month following either due
date, an additional penalty of two percent on June 1. The penalty on nonhomestead property is at a
rate of four percent until May 31 homestead property and eight
four percent on June 1. This
penalty does not accrue until June 1 of each year, or 21 days after the
postmark date on the envelope containing the property tax statements, whichever
is later, on commercial use real property used for seasonal residential recreational
purposes and classified as class 1c or 4c, and on other commercial use real
property classified as class 3a, provided that over 60 percent of the gross
income earned by the enterprise on the class 3a property is earned during the
months of May, June, July, and August. In
order for the first half of the tax due on class 3a property to be paid after
May 15 and before June 1, or 21 days after the postmark date on the envelope
containing the property tax statement, whichever is later, without penalty, the
owner of the property must attach an affidavit to the payment attesting to
compliance with the income provision of this subdivision nonhomestead
property is imposed. Thereafter, for
both homestead and nonhomestead property, on the first day of each subsequent
month beginning July 1, up to and including October 1 following through
December, an additional penalty of one percent for each month accrues and
is charged on all such unpaid
taxes
provided that if the due date was extended beyond May 15 as the result of
any delay in mailing property tax statements no additional penalty shall accrue
if the tax is paid by the extended due date.
If the tax is not paid by the extended due date, then all penalties that
would have accrued if the due date had been May 15 shall be charged. When the taxes against any tract or lot
exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the
postmark date on the envelope containing the property tax statement, whichever
is later; and, if so paid, no penalty attaches; the remaining one-half may be
paid at any time prior to October 16 following, without penalty; but, if not so
paid, then a penalty of two percent accrues thereon for homestead property and
a penalty of four percent on nonhomestead property. Thereafter, for homestead property, on the
first day of November an additional penalty of four percent accrues and on the
first day of December following, an additional penalty of two percent accrues
and is charged on all such unpaid taxes.
Thereafter, for nonhomestead property, on the first day of November and
December following, an additional penalty of four percent for each month
accrues and is charged on all such unpaid taxes. If one-half of such taxes are not paid prior
to May 16 or 21 days after the postmark date on the envelope containing the
property tax statement, whichever is later, the same may be paid at any time
prior to October 16, with accrued penalties to the date of payment added, and
thereupon no penalty attaches to the remaining one-half until October 16
following the penalty must not exceed eight percent in the case of
homestead property, or 12 percent in the case of nonhomestead property.
(b) If the property tax statement was
not postmarked prior to April 25, the first half payment due date in paragraph
(a) shall be 21 days from the postmark date of the property tax statement, and
all penalties referenced in paragraph (a) shall be determined with regard to
the later due date.
(c) In the case of a tract or lot with
taxes of $100 or less, the due date and penalties as specified in paragraph (a)
or (b) for the first half payment shall apply to the entire amount of the tax
due.
(d) For commercial use real property used for seasonal residential recreational purposes and classified as class 1c or 4c, and on other commercial use real property classified as class 3a, provided that over 60 percent of the gross income earned by the enterprise on the class 3a property is earned during the months of May, June, July, and August, penalty does not accrue until June 1 of each year. For a class 3a property to qualify for the later due date, the owner of the property must attach an affidavit to the payment attesting to compliance with the income requirements of this paragraph.
(e) This section applies to payment of personal property taxes assessed against improvements to leased property, except as provided by section 277.01, subdivision 3.
(f) A county may provide by resolution that in the case of a property owner that has multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in installments as provided in this subdivision.
(g) The county treasurer may accept payments of more or less than the exact amount of a tax installment due. Payments must be applied first to the oldest installment that is due but which has not been fully paid. If the accepted payment is less than the amount due, payments must be applied first to the penalty accrued for the year or the installment being paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum payment required as a condition for filing an appeal under section 278.03 or any other law, nor does it affect the order of payment of delinquent taxes under section 280.39.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 19. Minnesota Statutes 2014, section 279.01, subdivision 2, is amended to read:
Subd. 2. Abatement of penalty. (a) The county board may, with the concurrence of the county treasurer, delegate to the county treasurer the power to abate the penalty provided for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county board so elects, the county treasurer may abate the penalty on finding that the imposition of the penalty would be unjust and unreasonable.
(b)
The county treasurer shall abate the penalty provided for late payment of taxes
in the current year if the property tax payment is delivered by mail to the
county treasurer and the envelope containing the payment is postmarked by the
United States Postal Service within one business day of the due date prescribed
under this section, but only if the property owner requesting the abatement has
not previously received an abatement of penalty for late payment of tax under
this paragraph.
EFFECTIVE
DATE. This section is
effective for property taxes payable in 2017 and thereafter.
Sec. 20. Minnesota Statutes 2014, section 279.01, subdivision 3, is amended to read:
Subd. 3. Agricultural
property. (a) In the case of
class 1b agricultural homestead, class 2a agricultural homestead property, and
class 2a agricultural nonhomestead property, no penalties shall attach to the second
one‑half property tax payment as provided in this section if paid by
November 15. Thereafter for class 1b
agricultural homestead and class 2a homestead property, on November 16
following, a penalty of six percent shall accrue and be charged on all such
unpaid taxes and on December 1 following, an additional two percent shall be
charged on all such unpaid taxes. Thereafter
for class 2a agricultural nonhomestead property, on November 16 following, a
penalty of eight percent shall accrue and be charged on all such unpaid taxes
and on December 1 following, an additional four percent shall be charged on all
such unpaid taxes, penalties shall attach as provided in subdivision 1.
If the owner of class 1b agricultural homestead or class 2a agricultural property receives a consolidated property tax statement that shows only an aggregate of the taxes and special assessments due on that property and on other property not classified as class 1b agricultural homestead or class 2a agricultural property, the aggregate tax and special assessments shown due on the property by the consolidated statement will be due on November 15.
(b) Notwithstanding paragraph (a), for
taxes payable in 2010 and 2011, for any class 2b property that was subject to a
second-half due date of November 15 for taxes payable in 2009, the county shall
not impose, or if imposed, shall abate penalty amounts in excess of those that
would apply as if the second-half due date were November 15.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 21. Minnesota Statutes 2014, section 279.03, subdivision 2, is amended to read:
Subd. 2. Rate for composite judgment; rate for homestead composite judgment, repurchase of forfeited homestead property, and sale of forfeited property. (a) Except as provided in paragraph (b), amounts included in composite judgments authorized by section 279.37, subdivision 1, are subject to interest at the rate calculated under subdivision 1a. During each calendar year, interest shall accrue on the unpaid balance of the composite judgment from the time it is confessed until it is paid. The interest rate established at the time the judgment is confessed is fixed for the duration of that judgment.
(b) The following amounts are subject
to interest as provided in paragraph (c):
(1) amounts included in composite
judgments on parcels classified as 1a or 1b and used as the homestead of the
owner;
(2) amounts in contracts for repurchase
of property classified as 1a or 1b at the time of forfeiture or at the time
that the repurchase application is approved; and
(3) sales of forfeited property
pursuant to section 282.01, subdivision 4.
(b)
A confession of judgment covering any part of a parcel classified as 1a or 1b,
and used as the homestead of the owner, is subject to interest at the rate
provided in section 279.37, subdivision 2, paragraph (b). This paragraph does not apply to a relative
homestead under section 273.124, subdivision 1, paragraph (c).
(c) By October 15 each year the
commissioner shall set the interest rate under this subdivision at the greater
of five percent or two percent above the
prime rate charged by banks during the six-month period ending on September 30
of that year, rounded to the nearest full percent, provided that the rate must
not exceed the maximum annum rate specified under section 279.03, subdivision
1a. By November 1 of each year the
commissioner must certify the rate to the county auditor. The rate of interest becomes effective on
January 1 of the immediately succeeding year.
The commissioner's determination under this subdivision is not a rule
subject to the Administrative Procedure Act in chapter 14, including section
14.386.
(d) For the purposes of this
subdivision, "prime rate charged by banks" means the average
predominant prime rate quoted by commercial banks to large businesses, as
determined by the Board of Governors of the Federal Reserve System.
EFFECTIVE
DATE. This section is
effective for composite judgments, repurchase contracts, and sales of forfeited
property occurring after January 1, 2017.
Sec. 22. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read:
Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to whom the right to pay taxes has been given by statute, mortgage, or other agreement, may make and file with the county auditor of the county in which the parcel is located a written offer to pay the current taxes each year before they become delinquent, or to contest the taxes under chapter 278 and agree to confess judgment for the amount provided, as determined by the county auditor. By filing the offer, the owner waives all irregularities in connection with the tax proceedings affecting the parcel and any defense or objection which the owner may have to the proceedings, and also waives the requirements of any notice of default in the payment of any installment or interest to become due pursuant to the composite judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the time the confession of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal installments, with interest as provided in section 279.03, payable annually on installments remaining unpaid from time to time, on or before December 31 of each year following the year in which judgment was confessed.
(b) For property which qualifies under
section 279.03, subdivision 2, paragraph (b), each year the commissioner shall
set the interest rate for offers made under paragraph (a) at the greater of
five percent or two percent above the prime rate charged by banks during the
six-month period ending on September 30 of that year, rounded to the nearest full
percent, provided that the rate must not exceed the maximum annum rate
specified under section 279.03, subdivision 1a.
The rate of interest becomes effective on January 1 of the immediately
succeeding year. The commissioner's
determination under this subdivision is not a rule subject to the
Administrative Procedure Act in chapter 14, including section 14.386. If a default occurs in the payments under any
confessed judgment entered under this paragraph, the taxes and penalties due
are subject to the interest rate specified in section 279.03. Amounts entered in judgment bear interest
at the rate provided in section 279.03, subdivision 1a, unless the parcel is
classified as 1a or 1b, and is used as the homestead of the owner, in which
case the rate provided in section 279.03, subdivision 2, shall apply. A parcel that is classified as relative
homestead under section 273.124, subdivision 1, paragraph (c), is subject to
interest at the rate provided in section 279.03, subdivision 1a.
(c) Interest shall commence with the
date the judgment is entered. During
each calendar year, interest shall accrue on the unpaid balance of the
composite judgment from the time it is confessed until it is paid. The interest rate established at the time the
judgment is confessed is fixed for the duration of that judgment.
(d)
If a default occurs in the payments under any confessed judgment, the taxes and
penalties due are subject to the interest rate specified in section 279.03,
subdivision 1a, regardless of the classification of the parcel. For the purposes of this subdivision:
(1) the term "prime rate charged
by banks" means the average predominant prime rate quoted by commercial
banks to large businesses, as determined by the Board of Governors of the
Federal Reserve System; and
(2) "default" means the
cancellation of the confession of judgment due to nonpayment of the current
year tax or failure to make any installment payment required by this confessed
judgment within 60 days from the date on which payment was due.
(c) The interest rate established at
the time judgment is confessed is fixed for the duration of the judgment. By October 15 of each year, the commissioner
of revenue must determine the rate of interest as provided under paragraph (b)
and, by November 1 of each year, must certify the rate to the county auditor.
(d) (e) A qualified property
owner eligible to enter into a second confession of judgment may do so at the
interest rate provided in paragraph (b).
(e) Repurchase agreements or contracts
for repurchase for properties being repurchased under section 282.261 are not
eligible to receive the interest rate under paragraph (b).
(f) The offer must be substantially as follows:
"To the court administrator of the district court of ........... county, I, ....................., am the owner of the following described parcel of real estate located in .................... county, Minnesota:
.............................. Upon that real estate there are delinquent taxes for the year ........., and prior years, as follows: (here insert year of delinquency and the total amount of delinquent taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and any defense or objection which I may have to them, and direct judgment to be entered for the amount stated above, minus the sum of $............, to be paid with this document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. I agree to pay the balance of the judgment in nine or four equal, annual installments, with interest as provided in section 279.03, payable annually, on the installments remaining unpaid. I agree to pay the installments and interest on or before December 31 of each year following the year in which this judgment is confessed and current taxes each year before they become delinquent, or within 30 days after the entry of final judgment in proceedings to contest the taxes under chapter 278.
Dated .............., ......."
EFFECTIVE
DATE. This section is
effective for sales and repurchases occurring after January 1, 2017.
Sec. 23. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read:
Subd. 4. Sale: method, requirements, effects. The sale authorized under subdivision 3 must be conducted by the county auditor at the county seat of the county in which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may be conducted in any county facility within the county. The sale must not be for less than the appraised value except as provided in subdivision 7a. The parcels must be sold for cash only, unless the county board of the county has adopted a resolution providing for their sale on terms, in which event the resolution controls with respect to the sale. When the sale is made on terms other than for cash only (1) a payment of at least ten percent of the purchase price must be made at the time of purchase, and the balance must be paid in no more than ten equal annual installments, or (2) the payments must be made in accordance with county board policy, but in no
event may the board require more than 12 installments annually, and the contract term must not be for more than ten years. Standing timber or timber products must not be removed from these lands until an amount equal to the appraised value of all standing timber or timber products on the lands at the time of purchase has been paid by the purchaser. If a parcel of land bearing standing timber or timber products is sold at public auction for more than the appraised value, the amount bid in excess of the appraised value must be allocated between the land and the timber in proportion to their respective appraised values. In that case, standing timber or timber products must not be removed from the land until the amount of the excess bid allocated to timber or timber products has been paid in addition to the appraised value of the land. The purchaser is entitled to immediate possession, subject to the provisions of any existing valid lease made in behalf of the state.
For sales occurring on or after July 1,
1982, the unpaid balance of the purchase price is subject to interest at the
rate determined pursuant to section 549.09.
The unpaid balance of the purchase price for sales occurring after
December 31, 1990, is subject to interest at the rate determined provided
in section 279.03, subdivision 1a 2, paragraph (c). The interest rate is subject to change
each year on the unpaid balance in the manner provided for rate changes in
section 549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract balance on
sales occurring before July 1, 1982, is payable at the rate applicable to the sale
at the time that the sale occurred.
EFFECTIVE
DATE. This section is
effective for sales occurring after January 1, 2017.
Sec. 24. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read:
Subd. 2. Interest
rate. The unpaid balance on any
repurchase contract approved by the county board for property classified as
1a or 1b and used as the homestead of the owner at the time of forfeiture or at
the time that the repurchase application is approved is subject to interest
at the rate determined in section 279.03, subdivision 1a 2. The interest rate is subject to change
each year on the unpaid balance in the manner provided for rate changes in
section 279.03, subdivision 1a. The
unpaid balance on any other repurchase contract approved by the county board is
subject to interest at the rate determined in section 279.03, subdivision 1a,
which is subject to change each year in the manner provided for in section
279.03, subdivision 1a.
EFFECTIVE
DATE. This section is
effective for repurchases occurring after January 1, 2017.
Sec. 25. Minnesota Statutes 2014, section 473H.09, is amended to read:
473H.09
EARLY TERMINATION.
Subdivision 1. Public
emergency. Termination of an
agricultural preserve earlier than a date derived through application of
section 473H.08 may be permitted only in the event of a public emergency
upon petition from the owner or authority to the governor. The determination of a public emergency shall
be by the governor through executive order pursuant to sections 4.035 and 12.01
to 12.46. The executive order shall
identify the preserve, the reasons requiring the action and the date of
termination.
Subd. 2. Death
of owner. (a) Within 180 days
of the death of an owner, an owner's spouse, or other qualifying person, the
surviving owner may elect to terminate the agricultural preserve and the
covenant allowing the land to be enrolled as an agricultural preserve by
notifying the authority on a form provided by the commissioner of agriculture. Termination of a covenant under this
subdivision must be executed and acknowledged in the manner required by law to
execute and acknowledge a deed.
(b) For purposes of this subdivision,
the following definitions apply:
(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent was the settlor or a beneficiary of, or member of an entity permitted to own agricultural land and engage in farming under section 500.24 that owned the agricultural preserve; and
(2) "surviving owner"
includes the executor of the estate of the decedent, the trustee for a trust
that the decedent was the settlor or a beneficiary of, or an entity permitted
to own farm land under section 500.24 of which the decedent was a partner,
shareholder, or member.
(c) When an agricultural preserve is
terminated under this subdivision, the property is subject to additional taxes
in an amount equal to 50 percent of the taxes actually levied against the property
for the current taxes payable year. The
additional taxes are extended against the property on the tax list for taxes
payable in the current year. The
additional taxes must be distributed among the jurisdictions levying taxes on
the property in proportion to the current year's taxes.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 26. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154, article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:
Sec. 3. TAX;
PAYMENT OF EXPENSES.
(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, must not be levied at a rate that exceeds the amount authorized to be levied under that section. The proceeds of the tax may be used for all purposes of the hospital district, except as provided in paragraph (b).
(b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by the Cook ambulance service and the Orr ambulance service for the purpose of:
(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance service;
(2) attached and portable equipment for use in and for the ambulances; and
(3) parts and replacement parts for maintenance and repair of the ambulances, and administrative, operation, or salary expenses for the Cook ambulance service and the Orr ambulance service.
The money may not be used for administrative, operation,
or salary expenses.
(c) The part of the levy referred to in paragraph (b) must be administered by the Cook Hospital and passed on in equal amounts directly to the Cook area ambulance service board and the city of Orr to be used for the purposes in paragraph (b).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 27. Laws 1996, chapter 471, article 3, section 51, is amended to read:
Sec. 51. RECREATION
LEVY FOR SAWYER BY CARLTON COUNTY.
Subdivision 1. Levy
authorized. Notwithstanding
other law to the contrary, the Carlton county board of commissioners may levy
in and for the unorganized township of Sawyer an amount up to $1,500 $2,000
annually for recreational purposes, beginning with taxes payable in 1997 and
ending with taxes payable in 2006.
Subd. 2. Effective
date. This section is
effective June 1, 1996, without local approval.
EFFECTIVE
DATE. This section is
effective the day after the Carlton County Board of Commissioners and its chief
clerical officer comply with section 645.021, subdivisions 2 and 3, and applies
to taxes payable in 2017.
Sec. 28. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by Laws 2013, chapter 143, article 4, section 36, is amended to read:
Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by resolution of each of their governing bodies, may establish the Cloquet Area Fire and Ambulance Special Taxing District for the purpose of providing fire or ambulance services, or both, throughout the district. In this section, "municipality" means home rule charter and statutory cities, towns, and Indian tribes. The district may exercise all the powers relating to fire and ambulance services of the municipalities that receive fire or ambulance services, or both, from the district. Upon application, any other municipality may join the district with the agreement of the municipalities that comprise the district at the time of its application to join.
EFFECTIVE
DATE. This section is
effective in Cloquet and Perch Lake Township the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of
each.
Sec. 29. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
Subd. 2. Board. The Cloquet Area Fire and Ambulance Special Taxing District Board is governed by a board made up initially of one or more elected officials of the governing body of each participating municipality in the proportions set out in the establishing resolution, subject to change as provided in the district's charter, if any, or in the district's bylaws. Each municipality's representatives serve at the pleasure of that municipality's governing body.
EFFECTIVE
DATE. This section is
effective in Cloquet and Perch Lake Township the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of
each.
Sec. 30. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws 2013, chapter 143, article 4, section 37, is amended to read:
Subd. 3. Tax. (a) The district board may impose a property tax on taxable property as provided in this subdivision to pay the costs of providing fire or ambulance services, or both, throughout the district. The board shall annually determine the total amount of the levy that is attributable to the cost of providing fire services and the cost of providing ambulance services within the primary service area. For those municipalities that only receive ambulance services, the costs for the provision of ambulance services shall be levied against taxable property within those municipalities at a rate necessary not to exceed 0.019 percent of the estimated market value. For those municipalities that receive both fire and ambulance services, the tax shall be imposed at a rate that does not exceed 0.2835 percent of estimated market value.
(b) When a member municipality opts to receive fire service from the district or an additional municipality becomes a member of the district, the cost of providing fire services to that community shall be determined by the board and added to the maximum levy amount.
(c) Each county auditor of a county that contains a municipality subject to the tax under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District. The district may also impose other fees or charges as allowed by law for the provision of fire and ambulance services.
EFFECTIVE
DATE. This section is
effective in Cloquet and Perch Lake Township the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of
each.
Sec. 31. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
Subd. 4. Public indebtedness. (a) The district may incur debt in the manner provided for a municipality by Minnesota Statutes, chapter 475, and may issue certificates of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes, section 412.301, when necessary to accomplish its duties, except that the district may not incur debt or issue obligations until first obtaining the approval of a majority of the electors voting on the question of issuing the obligation. The debt service for debt used to finance capital costs for ambulance service shall be levied against taxable property within the municipalities in the primary service area. The debt service for debt used to finance capital costs for fire service shall be levied against taxable property within municipalities receiving fire services. The district board shall pledge its full faith and credit and taxing power without limitation as to rate or amount for the payment of the district's debt.
(b) For purposes of this subdivision,
"municipality" has the definition given in Minnesota Statutes,
sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph (c).
EFFECTIVE
DATE. This section is
effective in Cloquet and Perch Lake Township the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of
each.
Sec. 32. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
Subd. 5. Withdrawal. Notice of intent to withdraw from participation in the district may be given only in the month of January, with a minimum of twelve months notice of intent to withdraw. Withdrawal becomes effective for taxes levied pursuant to subdivision 3 in the year when the notice is given. A property tax on taxable property located in a withdrawing municipality that has been levied by the district pursuant to subdivision 4 remains in effect until the obligations outstanding on the date of withdrawal are satisfied, including any property tax levied in connection with refunding such obligations. The district and its members may also develop and agree upon other continuing obligations after withdrawal of a municipality.
EFFECTIVE
DATE. This section is
effective in Cloquet and Perch Lake Township the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of
each.
Sec. 33. 2016
TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE WAIVER.
If a city or town that conducts local
board of appeal and equalization meetings certified by February 1, 2016, that
it was in compliance with the requirements of Minnesota Statutes, section
274.014, subdivision 2, but no member of the local board who has attended an
appeal and equalization course training within the preceding four years
attended the local board's meeting for 2016, that local board shall have its
powers reinstated for the 2017 assessment by resolution of the governing body
of the city or town, and by certifying it is in compliance with the
requirements of Minnesota Statutes, section 274.014, subdivision 2. The resolution and certification must be
provided to the county assessor by February 1, 2017.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 34. TOWN
OF TOFTE; MUNICIPAL HOUSING.
(a)
Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988,
chapter 719, article 19, section 27, the town of Tofte may own and
operate within its boundary up to 12 units of housing for individuals over 55
years of age or families with one member of the household that is over 55 years
of age, or projects that provide housing for individuals or families with
incomes not greater than 120 percent of the median family income, as estimated
by the United States Department of Housing and Urban Development for the
nonmetropolitan county in which the town of Tofte is located.
(b)
The town of Tofte shall have the powers of a city under Minnesota Statutes,
chapter 462C, and the powers of an authority under Minnesota Statutes, sections
469.001 to 469.047, with respect to this section. Upon the approval of the town board, the town of Tofte may levy the tax described in
Minnesota Statutes, section 469.033, subdivision 6.
(c) Nothing in this section shall limit
the power of the Cook County/Grand Marais Joint Economic Development Authority
to exercise jurisdiction within the town of Tofte. The authority to undertake new projects under
this section shall expire on June 30, 2017.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the town of Tofte
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 35. SOCCER
STADIUM PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENT.
Any real or personal property acquired,
owned, leased, controlled, used, or occupied by the city of St. Paul for
the primary purpose of providing a stadium for a Major League Soccer team is
declared to be acquired, owned, leased, controlled, used, and occupied for
public, governmental, and municipal purposes, and is exempt from ad valorem
taxation by the state or any political subdivision of the state, provided that
the properties are subject to special assessments levied by a political
subdivision for a local improvement in amounts proportionate to and not
exceeding the special benefit received by the properties from the improvement. In determining the special benefit received
by the properties, no possible use of any of the properties in any manner
different from their intended use for providing a Major League Soccer stadium
at the time may be considered. Notwithstanding
Minnesota Statutes, section 272.01, subdivision 2, or 273.19, real or personal
property subject to a lease or use agreement between the city and another
person for uses related to the purposes of the operation of the stadium and
related parking facilities is exempt from taxation regardless of the length of
the lease or use agreement. This
section, insofar as it provides an exemption or special treatment, does not
apply to any real property that is leased for residential, business, or
commercial development or other purposes different from those necessary to the
provision and operation of the stadium.
EFFECTIVE
DATE. This section is
effective upon approval by the St. Paul City Council and compliance with
Minnesota Statutes, section 645.021.
Sec. 36. OPTIONAL
CANCELLATION OF TAX FORFEITURE FOR CERTAIN BUILDINGS; ST. LOUIS COUNTY.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Building PIN" means a
parcel identification number that is assigned to a building and does not include
the land upon which the building is located; and
(c) "Land PIN" means a parcel
identification number that is assigned to land upon which a building associated
with a building PIN is located.
Subd. 2. Optional
cancellation of tax forfeiture for buildings with building PINs. Notwithstanding any law to the
contrary, if any building associated with a building PIN and located in St. Louis
County forfeits or has forfeited to the state of Minnesota before, on, or after
the date of enactment of this section because of nonpayment of delinquent
property taxes, special assessments, penalties, interest, or costs, the county
auditor of St. Louis County may, with approval from the county board and
the commissioner of revenue:
(1) cancel the certificate of forfeiture
and set aside the forfeiture without reinstating the unpaid property taxes,
special assessments, penalties, interest, or costs; and
(2)
combine the building PIN with its associated land PIN. When this occurs, the land PIN is the only
surviving parcel identification number, and includes both the building and the
land upon which the building is located.
Subd. 3. Cancellation
of tax forfeiture; taxation through date of cancellation. Notwithstanding any law to the
contrary, if the county auditor of St. Louis County cancels a certificate
of forfeiture and sets aside a forfeiture in accordance with subdivision 2, the
affected building is not subject to taxation from the date of forfeiture
through the date of cancellation.
Subd. 4. Appropriation. $1,000,000 in fiscal year 2017 only is
appropriated from the general fund to the commissioner of revenue for a grant
to St. Louis County that shall be paid on July 1, 2016. The county may only use the grant to remove
any building, upon the request of the landowner, after the county has complied
with the provisions of subdivision 2.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 37. LAKE
MILLE LACS AREA PROPERTY TAX ABATEMENT.
Subdivision 1. Abatements
authorized. (a) Notwithstanding
Minnesota Statutes, section 375.192, the county boards of Aitkin, Crow Wing,
and Mille Lacs Counties may grant an abatement of local property taxes for
taxes payable in 2016 provided that:
(1) the property is classified as 1c,
3a (excluding utility real and personal property), 4c(1), 4c(10), or 4c(11);
(2) on or before February 1, 2017, the
taxpayer submits a written application to the county assessor in the county in
which abatement is sought; and
(3) the taxpayer meets qualification
requirements established in subdivision 3.
Subd. 2. Appeals. An appeal may not be taken to the Tax
Court from any order of the county board made pursuant to the exercise of the
discretionary authority granted in this section.
Subd. 3. Qualification
requirements. To qualify for
abatements under this section, a taxpayer must:
(1) be located within one of the
following municipalities surrounding Lake Mille Lacs:
(i) in Crow Wing County, the city of
Garrison, township of Garrison, or township of Roosevelt;
(ii) in Aitkin County, the township of
Hazelton, township of Wealthwood, township of Malmo, or township of Lakeside;
or
(iii) in Mille Lacs County, the city of
Isle, city of Wahkon, city of Onamia, township of East Side, township of Isle
Harbor, township of South Harbor, or township of Kathio;
(2) document a reduction in gross
receipts of five percent or greater between two successive calendar years
beginning in 2010 or later; and
(3) be a business in one of the
following industries, as defined within the North American Industry
Classification System: accommodation,
restaurants, bars, amusement and recreation, food and beverages retail,
sporting goods, miscellaneous retail, general retail, museums, historical
sites, health and personal care, gas station, general merchandise, business and
professional membership, movies, or nonstore retailer, as determined by the
county in consultation with the commissioner of employment and economic
development.
Subd. 4. State
general levy in relief area. The
counties of Aitkin, Crow Wing, and Mille Lacs must refund the state general
levy levied upon a property classified as 1c, 3a (excluding utility real and
personal property), or 4c(1) that is located in the area described by
subdivision 3, clause (1), for taxes payable in 2016. No refund may be issued to a taxpayer whose
property taxes are delinquent.
Subd. 5. Certification
and transfer of funds. (a) By
April 1, 2017, a county granting a refund as required under subdivision 4 must
certify the total amount of state general tax refunded to Mille Lacs County and
the commissioner of revenue. By May 1,
2017, Mille Lacs County must transfer an amount equal to the amount certified
under this paragraph to the county making the certification.
(b) By April 1, 2017, a county that has
received an application for an abatement authorized under subdivision 1 must
certify to Mille Lacs County the total amount of abatements for which
applications have been received and approved.
By May 1, 2017, Mille Lacs County must transfer an amount equal to the
amount certified under this paragraph to the county making the certification. If the amount appropriated under subdivision
6, minus the amount transferred under paragraph (a), is not sufficient to make
the transfer required under this paragraph, Mille Lacs County must reduce the
amount transferred to each county by a uniform percentage. By June 30, 2017, the county must issue
refunds of local property tax amounts to qualified properties, in proportion to
the amount received from Mille Lacs County.
No refund may be issued to a taxpayer whose property taxes are
delinquent.
(c) By August 1, 2017, Mille Lacs
County must calculate the amount transferred under paragraphs (a) and (b), and
subtract that amount from $1,400,000 to obtain the ongoing economic relief
distribution amount, if any. This amount
must be transferred to the counties of Aitkin, Crow Wing, and Mille Lacs in
proportion to the amounts certified by each county under paragraphs (a) and (b). A county receiving a transfer under this
paragraph must use the funds received to provide abatements to business
properties under economic hardship for taxes payable in 2017, and each year
thereafter until a county's share of the ongoing economic relief distribution
amount is exhausted.
Subd. 6. Commissioner
of revenue; appropriation. $1,400,000
in fiscal year 2017 is appropriated from the general fund to the commissioner
of revenue for transfer to Mille Lacs County to make the transfers required
under subdivision 5. This is a onetime appropriation.
Subd. 7. Report
to legislature. The
commissioner of revenue must make a written report to the chairs and ranking
minority members of the legislative committees with jurisdiction over taxes
stating the amount of abatements and refunds given under this section by taxing
jurisdictions by February 1, 2018. The
counties must provide the commissioner with the information necessary to make
the report.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 38. REPEALER.
Minnesota Statutes 2014, section
272.02, subdivision 23, is repealed.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2017 and thereafter.
ARTICLE 2
AIDS AND CREDITS
Section 1.
[273.1387] SCHOOL BUILDING
BOND AGRICULTURAL CREDIT.
Subdivision 1. Eligibility. All class 2a, 2b, and 2c property
under section 273.13, subdivision 23, other than property consisting of the
house, garage, and immediately surrounding one acre of land of an agricultural
homestead, is eligible to receive the credit under this section.
Subd. 2. Credit
amount. For each qualifying
property, the school building bond agricultural credit is equal to 40 percent
of the property's eligible net tax capacity multiplied by the school debt tax
rate determined under section 275.08, subdivision 1b.
Subd. 3. Credit
reimbursements. The county
auditor shall determine the tax reductions allowed under this section within
the county for each taxes payable year and shall certify that amount to the
commissioner of revenue as a part of the abstracts of tax lists submitted under
section 275.29. Any prior year
adjustments shall also be certified on the abstracts of tax lists. The commissioner shall review the
certifications for accuracy, and may make such changes as are deemed necessary,
or return the certification to the county auditor for correction. The credit under this section must be used to
reduce the school district net tax capacity-based property tax as provided in
section 273.1393.
Subd. 4. Payment. The commissioner of revenue shall
certify the total of the tax reductions granted under this section for each
taxes payable year within each school district to the commissioner of
education, who shall pay the reimbursement amounts to each school district as
provided in section 273.1392.
Subd. 5. Appropriation. An amount sufficient to make the
payments required by this section is annually appropriated from the general
fund to the commissioner of education.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 2. Minnesota Statutes 2014, section 273.1392, is amended to read:
273.1392
PAYMENT; SCHOOL DISTRICTS.
The amounts of bovine tuberculosis credit
reimbursements under section 273.113; conservation tax credits under section
273.119; disaster or emergency reimbursement under sections 273.1231 to
273.1235; homestead and agricultural credits under section sections
273.1384 and 273.1387; aids and credits under section 273.1398;
enterprise zone property credit payments under section 469.171; and
metropolitan agricultural preserve reduction under section 473H.10 for school
districts, shall be certified to the Department of Education by the Department
of Revenue. The amounts so certified
shall be paid according to section 127A.45, subdivisions 9 and 13.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 3. Minnesota Statutes 2014, section 273.1393, is amended to read:
273.1393
COMPUTATION OF NET PROPERTY TAXES.
Notwithstanding any other provisions to the contrary, "net" property taxes are determined by subtracting the credits in the order listed from the gross tax:
(1) disaster credit as provided in sections 273.1231 to 273.1235;
(2) powerline credit as provided in section 273.42;
(3) agricultural preserves credit as provided in section 473H.10;
(4) enterprise zone credit as provided in section 469.171;
(5) disparity reduction credit;
(6) conservation tax credit as provided in section 273.119;
(7) the school bond credit, as provided in
section 273.1387;
(8) agricultural credit as provided in section 273.1384;
(8) (9) taconite homestead
credit as provided in section 273.135;
(9) (10) supplemental homestead
credit as provided in section 273.1391; and
(10) (11) the bovine
tuberculosis zone credit, as provided in section 273.113.
The combination of all property tax credits must not exceed the gross tax amount.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 4. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read:
Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and the county treasurer shall deliver after November 10 and on or before November 24 each year, by first class mail to each taxpayer at the address listed on the county's current year's assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, the treasurer may send the notice in electronic form or by electronic mail instead of on paper or by ordinary mail.
(b) The commissioner of revenue shall prescribe the form of the notice.
(c) The notice must inform taxpayers that it contains the amount of property taxes each taxing authority proposes to collect for taxes payable the following year. In the case of a town, or in the case of the state general tax, the final tax amount will be its proposed tax. The notice must clearly state for each city that has a population over 500, county, school district, regional library authority established under section 134.201, and metropolitan taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing authority in which the budget and levy will be discussed and public input allowed, prior to the final budget and levy determination. The taxing authorities must provide the county auditor with the information to be included in the notice on or before the time it certifies its proposed levy under subdivision 1. The public must be allowed to speak at that meeting, which must occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone number for the taxing authority that taxpayers may call if they have questions related to the notice and an address where comments will be received by mail, except that no notice required under this section shall be interpreted as requiring the printing of a personal telephone number or address as the contact information for a taxing authority. If a taxing authority does not maintain public offices where telephone calls can be received by the authority, the authority may inform the county of the lack of a public telephone number and the county shall not list a telephone number for that taxing authority.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under section 273.11, and used for computing property taxes payable in the following year and for taxes payable in the current year as each appears in the records of the county assessor on November 1 of the current year; and, in the case of residential property, whether the property is classified as homestead or nonhomestead. The notice must clearly inform taxpayers of the years to which the market values apply and that the values are final values;
(2) the items listed below, shown separately by county, city or town, and state general tax, agricultural homestead credit under section 273.1384, school building bond agricultural credit under section 273.1387, voter approved school levy, other local school levy, and the sum of the special taxing districts, and as a total of all taxing authorities:
(i) the actual tax for taxes payable in the current year; and
(ii) the proposed tax amount.
If the county levy under clause (2) includes an amount for a lake improvement district as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose must be separately stated from the remaining county levy amount.
In the case of a town or the state general tax, the final tax shall also be its proposed tax unless the town changes its levy at a special town meeting under section 365.52. If a school district has certified under section 126C.17, subdivision 9, that a referendum will be held in the school district at the November general election, the county auditor must note next to the school district's proposed amount that a referendum is pending and that, if approved by the voters, the tax amount may be higher than shown on the notice. In the case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul Library Agency must be listed separately from the remaining amount of the city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be listed separately from the remaining amount of the county's levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies, the proposed tax levy on the captured value or the proposed tax levy on the tax capacity subject to the areawide tax must each be stated separately and not included in the sum of the special taxing districts; and
(3) the increase or decrease between the total taxes payable in the current year and the total proposed taxes, expressed as a percentage.
For purposes of this section, the amount of the tax on homesteads qualifying under the senior citizens' property tax deferral program under chapter 290B is the total amount of property tax before subtraction of the deferred property tax amount.
(e) The notice must clearly state that the proposed or final taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed taxes are certified, including bond referenda and school district levy referenda;
(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday in November of the levy year as provided under section 275.73;
(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the taxing authority that become final after the date the proposed taxes are certified; and
(6) the contamination tax imposed on properties which received market value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the county treasurer to deliver the notice as required in this section does not invalidate the proposed or final tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section lists the property as nonhomestead, and satisfactory documentation is provided to the county assessor by the applicable deadline, and the property qualifies for the homestead classification in that assessment year, the assessor shall reclassify the property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a residence for lease or rental periods of 30 days or more, the taxpayer must either:
(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the premises of the property.
The notice must be mailed or posted by the taxpayer by November 27 or within three days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to which the notice must be mailed in order to fulfill the requirements of this paragraph.
(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing districts" means the following taxing districts in the seven-county metropolitan area that levy a property tax for any of the specified purposes listed below:
(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
(3) Metropolitan Mosquito Control Commission under section 473.711.
For purposes of this section, any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be included with the appropriate county's levy.
(j) The governing body of a county, city, or school district may, with the consent of the county board, include supplemental information with the statement of proposed property taxes about the impact of state aid increases or decreases on property tax increases or decreases and on the level of services provided in the affected jurisdiction. This supplemental information may include information for the following year, the current year, and for as many consecutive preceding years as deemed appropriate by the governing body of the county, city, or school district. It may include only information regarding:
(1) the impact of inflation as measured by the implicit price deflator for state and local government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property taxation and local services that the governing body of the county, city, or school district may deem appropriate to include.
The information may be presented using tables, written narrative, and graphic representations and may contain instruction toward further sources of information or opportunity for comment.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 5. Minnesota Statutes 2014, section 275.07, subdivision 2, is amended to read:
Subd. 2. School
district in more than one county levies; special requirements. (a) In school districts lying in
more than one county, the clerk shall certify the tax levied to the auditor of
the county in which the administrative offices of the school district are
located.
(b) The district must identify the
portion of the school district levy that is levied for debt service at the time
the levy is certified under this section.
For the purposes of this paragraph, "levied for debt service"
means levies authorized under sections 123B.53, 123B.535, and 123B.55, as
adjusted by sections 126C.46 and 126C.48, net of any debt excess levy
reductions under section 475.61, subdivision 4, excluding debt service amounts
necessary for repayment of other postemployment benefits under section 475.52,
subdivision 6.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 6. Minnesota Statutes 2014, section 275.08, subdivision 1b, is amended to read:
Subd. 1b. Computation of tax rates. (a) The amounts certified to be levied against net tax capacity under section 275.07 by an individual local government unit shall be divided by the total net tax capacity of all taxable properties within the local government unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by each property's net tax capacity shall be each property's net tax capacity tax for that local government unit before reduction by any credits.
(b) The auditor must also determine the
school debt tax rate for each school district equal to (1) the school debt
service levy certified under section 275.07, subdivision 2, divided by (2) the
total net tax capacity of all taxable property within the district.
(c) Any amount certified to the county auditor to be levied against market value shall be divided by the total referendum market value of all taxable properties within the taxing district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each property's referendum market value shall be each property's new referendum tax before reduction by any credits. For the purposes of this subdivision, "referendum market value" means the market value as defined in section 126C.01, subdivision 3.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 7. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:
Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of the tax statements. The commissioner of revenue shall prescribe the form of the property tax statement and its contents. The tax statement must not state or imply that property tax credits are paid by the state of Minnesota. The statement must contain a tabulated statement of the dollar amount due to each taxing authority and the amount of the state tax from the parcel of real property for which a particular tax statement is prepared. The dollar amounts attributable to the county, the state tax, the voter approved school tax, the other local school tax, the township or municipality, and the total of the metropolitan special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The amounts due all other special taxing districts, if any, may be aggregated except that any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly under the appropriate county's levy. If the county levy under this paragraph includes an amount for a lake improvement district as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose must be separately stated from the remaining county levy amount. In the case of Ramsey County, if the county levy under this paragraph includes an amount for public library service under section 134.07, the amount attributable for that purpose may be separated from the remaining county levy amount. The amount of the tax on homesteads qualifying under the senior citizens' property tax deferral program under
chapter 290B is the total amount of property tax before subtraction of the deferred property tax amount. The amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar amount of any special assessments, may be rounded to the nearest even whole dollar. For purposes of this section whole odd-numbered dollars may be adjusted to the next higher even‑numbered dollar. The amount of market value excluded under section 273.11, subdivision 16, if any, must also be listed on the tax statement.
(b) The property tax statements for manufactured homes and sectional structures taxed as personal property shall contain the same information that is required on the tax statements for real property.
(c) Real and personal property tax statements must contain the following information in the order given in this paragraph. The information must contain the current year tax information in the right column with the corresponding information for the previous year in a column on the left:
(1) the property's estimated market value under section 273.11, subdivision 1;
(2) the property's homestead market value exclusion under section 273.13, subdivision 35;
(3) the property's taxable market value under section 272.03, subdivision 15;
(4) the property's gross tax, before credits;
(5) for homestead agricultural
properties, the credit credits under section sections
273.1384 and 273.1387;
(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit received under section 273.135 must be separately stated and identified as "taconite tax relief"; and
(7) the net tax payable in the manner required in paragraph (a).
(d) If the county uses envelopes for mailing property tax statements and if the county agrees, a taxing district may include a notice with the property tax statement notifying taxpayers when the taxing district will begin its budget deliberations for the current year, and encouraging taxpayers to attend the hearings. If the county allows notices to be included in the envelope containing the property tax statement, and if more than one taxing district relative to a given property decides to include a notice with the tax statement, the county treasurer or auditor must coordinate the process and may combine the information on a single announcement.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 8. [477A.0126]
REIMBURSEMENT OF COUNTY AND TRIBES FOR CERTAIN OUT-OF-HOME PLACEMENT.
Subdivision 1. Definition. When used in this section,
"out-of-home placement" means 24-hour substitute care for an Indian
child as defined by section 260C.007, subdivision 21, placed under the Indian
Child Welfare Act (ICWA) and chapter 260C, away from the child's parent or
guardian and for whom the county social services agency or county correctional
agency has been assigned responsibility for the child's placement and care,
which includes placement in foster care under section 260C.007, subdivision 18,
and a correctional facility pursuant to a court order.
Subd. 2. Determination
of nonfederal share of costs. (a)
By January 1, 2017, each county shall report the following information to the
commissioners of human services and corrections: (1) the separate amounts paid out of its
social service agency and its corrections budget for out-of-home placement of
children under the ICWA in
calendar
years 2013, 2014, and 2015; and (2) the number of case days associated with the
expenditures from each budget. By March
15, 2017, the commissioner of human services, in consultation with the
commissioner of corrections, shall certify to the commissioner of revenue and
to the legislative committees responsible for local government aids and
out-of-home placement funding, whether the data reported under this subdivision
accurately reflects total expenditures by counties for out-of-home placement
costs of children under the ICWA.
(b) By January 1, 2019, and each January
1 thereafter, each county shall report to the commissioners of human services
and corrections the separate amounts paid out of its social service agency and
its corrections budget for out‑of-home placement of children under the
ICWA in the calendar years two years before the current calendar year along
with the number of case days associated with the expenditures from each budget.
(c) Until the commissioner of human
services develops another mechanism for collecting and verifying data on
out-of-home placements of children under the ICWA, and the legislature
authorizes the use of that data, the data collected under this subdivision must
be used to calculate payments under subdivision 3. The commissioner of human services shall
certify the nonfederal out-of-home placement costs for the three prior calendar
years for each county to the commissioner of revenue by June 1 of the year
prior to the aid payment.
Subd. 3. Aid
payments to counties. For
aids payable in calendar year 2018 and thereafter, the commissioner of revenue
shall reimburse each county for 100 percent of the nonfederal share of the cost
of out-of-home placement of children under the ICWA provided the commissioner
of human services, in consultation with the commissioner of corrections,
certifies to the commissioner of revenue that accurate data is available to
make the aid determination under this section.
The amount of reimbursement is the county's average nonfederal share of
the cost for out-of-home placement of children under the ICWA for the most
recent three calendar years for which data is available. The commissioner shall pay the aid under the
schedule used for local government aid payments under section 477A.015.
Subd. 4. Aid
payments to tribes. (a) By
January 1, 2017, and each year thereafter, each tribe must certify to the
commissioner of revenue the amount of federal reimbursement received by the
tribe for out-of-home placement of children under the ICWA for the immediately
preceding three calendar years. The
commissioner of revenue shall prescribe the format of the certification. For purposes of this section, "tribe"
has the meaning provided in section 260.755, subdivision 12.
(b) The amount of reimbursement to the
tribe shall be the greater of: (1) five
percent of the average reimbursement amount received from the federal
government for out-of-home placement costs for the most recent three calendar
years; or (2) $200,000. The commissioner
shall pay the aid under this section under the schedule used for local
government aid payments under section 477A.015.
Subd. 5. Appropriation. An amount sufficient to pay aid under
this section is annually appropriated to the commissioner of revenue from the
general fund.
EFFECTIVE
DATE. This section is
effective beginning with aids payable in 2018.
Sec. 9. Minnesota Statutes 2015 Supplement, section 477A.015, is amended to read:
477A.015
PAYMENT DATES.
(a) The commissioner of revenue shall make the payments of local government aid to affected taxing authorities in two installments on July 20 and December 26 annually.
(b) Notwithstanding paragraph (a), for aids payable in 2017 only, the commissioner of revenue shall make payments of the aid payable under section 477A.013, subdivision 9, in three installments as follows: (1) 6.5 percent of the aid shall be paid on June 15, 2017; (2) 43.5 percent of the aid shall be paid on July 20, 2017; and (3) 50 percent of the aid shall be paid on December 26, 2017.
(c) When the commissioner of public safety determines that a local government has suffered financial hardship due to a natural disaster, the commissioner of public safety shall notify the commissioner of revenue, who shall make payments of aids under sections 477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical after the determination is made but not before July 20.
(d) The commissioner may pay all or part of the payments of aids under sections 477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a local government requests such payment as being necessary for meeting its cash flow needs.
EFFECTIVE
DATE. This section is
effective beginning with aids payable in 2017.
Sec. 10. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read:
Subd. 2. State auditor's duties. The state auditor shall prescribe uniform financial accounting and reporting standards in conformity with national standards to be applicable to cities and towns of more than 2,500 population and uniform reporting standards to be applicable to cities and towns of less than 2,500 population.
EFFECTIVE
DATE. This section applies to
reporting of financial information for calendar year 2016 and thereafter.
Sec. 11. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read:
Subd. 3. Conformity. Other law to the contrary
notwithstanding, in order to receive distributions under sections 477A.011 to
477A.03, counties and, cities, and towns must conform to
the standards set in subdivision 2 in making all financial reports required to
be made to the state auditor after June 30, 1984.
EFFECTIVE
DATE. This section applies to
reporting of financial information for aids payable in 2017 and thereafter.
Sec. 12. Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a, is amended to read:
Subd. 2a. Cities. The total aid paid under section
477A.013, subdivision 9, is $516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter,
the total aid paid under section 477A.013, subdivision 9, is $519,398,012. For aids payable in 2017 and thereafter,
the total aid paid under section 477A.013, subdivision 9, is $539,398,012.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2017 and thereafter.
Sec. 13. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:
Subd. 2b. Counties. (a) For aids payable in 2014 and
thereafter through 2016, the total aid payable under section
477A.0124, subdivision 3, is $100,795,000.
For aids payable in 2017 through 2024, the total aid payable under section
477A.0124, subdivision 3, is $108,795,000, of which $3,000,000 shall be
allocated as required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, the
total aid payable under section 477A.0124, subdivision 3, is $105,795,000. Each calendar year, $500,000 of this
appropriation shall be retained by the commissioner of revenue to make
reimbursements to the commissioner of management and budget for payments made
under section 611.27. The reimbursements
shall be to defray the additional costs associated with court-ordered counsel
under section 611.27. Any retained
amounts not used for reimbursement in a year shall be included in the next
distribution of county need aid that is certified to the county auditors for
the purpose of property tax reduction for the next taxes payable year.
(b)
For aids payable in 2014 and thereafter 2016, the total aid under
section 477A.0124, subdivision 4, is $104,909,575. For aids payable in 2017 and thereafter, the
total aid payable under section 477A.0124, subdivision 4, is $109,909,575. The commissioner of revenue shall transfer to
the commissioner of management and budget $207,000 annually for the cost of
preparation of local impact notes as required by section 3.987, and other local
government activities. The commissioner
of revenue shall transfer to the commissioner of education $7,000 annually for
the cost of preparation of local impact notes for school districts as required
by section 3.987. The commissioner of
revenue shall deduct the amounts transferred under this paragraph from the
appropriation under this paragraph. The
amounts transferred are appropriated to the commissioner of management and
budget and the commissioner of education respectively.
EFFECTIVE
DATE. This section is
effective for aids payable in 2017 and thereafter.
Sec. 14. [477A.09]
MAXIMUM EFFORT LOAN AID.
For fiscal years 2018 through 2022, each
school district with a maximum effort loan under sections 126C.61 to 126C.72
outstanding as of June 30, 2016, is eligible for an aid payment equal to
one-fifth of the amount of interest that was paid on the loan between December
1, 1997, and June 30, 2016. Aid payments
under this section must be used to reduce property taxes levied on net tax
capacity within the district. Aid under
this section must be paid in fiscal years 2018 through 2022, in the manner
provided under section 127A.45, subdivisions 9 and 13. An amount sufficient to make aid payments
under this section is annually appropriated from the general fund to the
commissioner of education.
EFFECTIVE
DATE. This section is
effective for fiscal years 2018 and thereafter.
Sec. 15. [477A.21]
RIPARIAN PROTECTION AID.
Subdivision 1. Definitions. (a) When used in this section, the
following terms have the meanings given them in this subdivision.
(b)
"Public water basins" has the meaning provided in section 103G.005,
subdivision 15, clauses (1) to (8) and (11).
(c) "Public watercourses" has
the meaning provided in section 103G.005, subdivision 15, clauses (9) and (10).
Subd. 2. Certification. The Board of Water and Soil Resources must certify to the commissioner of revenue by July 1 of each year which counties and watershed districts have affirmed their jurisdiction under section 103F.48, subdivision 7, paragraph (b), and the proportion of each county's land area that is contained in each watershed district within the county. On or before July 1 of each year, the commissioner of natural resources shall certify to the commissioner of revenue the statewide and countywide total of miles of shoreline of public waters basins, the number of centerline miles of public watercourses, and the miles of public drainage system ditches.
Subd. 3. Distribution. (a) A county that is certified under
subdivision 2 or that portion of a county containing a watershed district
certified under subdivision 2 is eligible to receive aid under this section to
enforce and implement the riparian protection and water quality practices under
section 103F.48. The commissioner shall
calculate a preliminary aid for all counties that shall equal: (1) each county's share of the total number
of acres in the state classified as class 2a under section 273.13, subdivision
23, divided by two; plus (2) each county's share of the number of miles of
shoreline of public water basins, each county's share of the number of
centerline miles of public watercourses, and each county's share of the number
of miles of public drainage system ditches established under chapter 103E,
divided by two; multiplied by (3) $10,000,000.
(b) Aid to a county shall not be greater
than $200,000 or less than $45,000. If
the sum of the preliminary aids payable to counties under paragraph (a) is
greater or less than the appropriation under subdivision 5, the commissioner of
revenue shall calculate the percentage adjustment necessary so that the total
of the aid under paragraph (a) equals the total amount available for aid under
subdivision 5.
(c) If only a portion of a county is certified as eligible to receive aid under subdivision 2, the aid otherwise payable to that county under this section shall be multiplied by a fraction, the numerator of which is the area of the certified watershed district contained within the county and the denominator of which is the total area of the county.
(d) Any aid that would otherwise be
paid to a county or portion of a county that is not certified under subdivision
2 shall be paid to the Board of Water and Soil Resources for the purpose of
enforcing and implementing the riparian protection and water quality practices
under section 103F.48.
Subd. 4. Payments. The commissioner of revenue must
compute the amount of riparian protection aid payable to each eligible county
and to the Board of Water and Soil Resources under this section. On or before August 1 of each year, the
commissioner shall certify the amount to be paid to each county in the
following year. The commissioner shall
pay riparian protection aid to counties and the Board of Water and Soil
Resources in the same manner and at the same time as aid payments under section
477A.015.
Subd. 5. Appropriation. $10,000,000 for aids payable in 2017
and each year thereafter is appropriated from the general fund to the
commissioner of revenue to make the payments required under this section.
EFFECTIVE
DATE. This section is
effective beginning with aids payable in 2017 and thereafter.
Sec. 16. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended to read:
Sec. 86. RED
RIVER WATERSHED MANAGEMENT BOARD; PAYMENT IN LIEU OF TAXES.
(a) The Red River watershed management board
may spend money from its general fund to compensate counties and townships for
lost tax revenue from land that becomes tax exempt after it is acquired by the
board or a member watershed district for flood damage reduction project. The amount that may be paid under this
section to a county or township must not exceed the tax that was payable to
that taxing jurisdiction on the land in the last taxes payable year before the
land became exempt due to the acquisition, not to exceed $4 $5.133
per acre, multiplied by 20. This total
amount may be paid in one payment, or in equal annual installments over a
period that does not exceed 20 years. A
member watershed district of the Red River management board may spend money
from its construction fund for the purposes described in this section.
(b) For the purposes of this section, "Red River watershed management board" refers to the board established by Laws 1976, chapter 162, section 1, as amended by Laws 1982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws 1998, chapter 389, article 3, section 29.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2016 and thereafter.
Sec. 17. 2013
CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
Notwithstanding Minnesota Statutes,
section 477A.017, subdivision 3, the city of Oslo shall receive the portion of
its aid payment for calendar year 2013 under Minnesota Statutes, section
477A.013, that was withheld under Minnesota Statutes, section 477A.017,
subdivision 3, provided that the state auditor certifies to the commissioner of
revenue that it received audited financial statements from the city for
calendar year 2012 by December 31, 2013.
The commissioner of revenue shall make a payment of $37,473.50 with the
first payment of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the general
fund to the commissioner of revenue in fiscal year 2017 to make this payment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. 2014
AID PENALTY FORGIVENESS.
(a) Notwithstanding Minnesota Statutes,
section 477A.017, subdivision 3, the cities of Dundee, Jeffers, and Woodstock
shall receive all of its calendar year 2014 aid payment that was withheld under
Minnesota Statutes, section 477A.017, subdivision 3, provided that the state
auditor certifies to the commissioner of revenue that the city complied with
all reporting requirements under Minnesota Statutes, section 477A.017,
subdivision 3, for calendar years 2013 and 2014 by June 1, 2015.
(b) The commissioner of revenue shall
make payment to each city no later than June 30, 2016. Up to $101,570 is appropriated from the
general fund to the commissioner of revenue in fiscal year 2017 to make the
payments under this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. BASE
YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
In the first aid payable year in which
a city that incorporated on October 13, 2015, qualifies for aid under Minnesota
Statutes, section 477A.013, subdivision 8, the city's formula aid in the
previous year shall be deemed to equal $115 multiplied by its population.
EFFECTIVE
DATE. This section is
effective for aids payable in 2017 and thereafter.
Sec. 20. REPEALER.
Minnesota Statutes 2014, section
477A.20, is repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 3
INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to read:
Subd. 3. Program components. (a) An intern must be an eligible student who has been admitted to a major program that is related to the intern experience as determined by the eligible institution.
(b) To participate in the program, an eligible institution must:
(1) enter into written agreements with eligible employers to provide internships that are at least eight weeks long and located in greater Minnesota; and
(2) provide academic credit for the successful completion of the internship or ensure that it fulfills requirements necessary to complete a vocational technical education program.
(c) To participate in the program, an eligible employer must enter into a written agreement with an eligible institution specifying that the intern:
(1) would not have been hired without
the tax credit described in subdivision 4;
(2) did not work for the employer
in the same or a similar job prior to entering the agreement;
(3) (2) does not replace an existing employee;
(4) (3) has not previously
participated in the program;
(5) (4) will be employed at
a location in greater Minnesota;
(6) (5) will be paid at
least minimum wage for a minimum of 16 hours per week for a period of at least
eight weeks; and
(7) (6) will be supervised
and evaluated by the employer.
(d) The written agreement between the eligible institution and the eligible employer must certify a credit amount to the employer, not to exceed $2,000 per intern. The total dollar amount of credits that an eligible institution certifies to eligible employers in a calendar year may not exceed the amount of its allocation under subdivision 4.
(e) Participating eligible institutions and eligible employers must report annually to the office. The report must include at least the following:
(1) the number of interns hired;
(2) the number of hours and weeks worked by interns; and
(3) the compensation paid to interns.
(f) An internship required to complete
an academic program does not qualify for the greater Minnesota internship
program under this section.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 2. Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is amended to read:
Subd. 7. Internal
Revenue Code. Unless specifically
defined otherwise, "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through December 31, 2014 2015.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:
Subd. 7. Resident. (a) The term "resident" means any individual domiciled in Minnesota, except that an individual is not a "resident" for the period of time that the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the qualified individual notifies the county within three months of moving out of the country that homestead status be revoked for the Minnesota residence of the qualified individual, and the property is not classified as a homestead while the individual remains a qualified individual.
(b) "Resident" also means any individual domiciled outside the state who maintains a place of abode in the state and spends in the aggregate more than one-half of the tax year in Minnesota, unless:
(1) the individual or the spouse of the individual is in the armed forces of the United States; or
(2) the individual is covered under the reciprocity provisions in section 290.081.
For purposes of this subdivision, presence within the state for any part of a calendar day constitutes a day spent in the state. A day does not qualify as a Minnesota day if the taxpayer traveled from a place outside of Minnesota primarily for and essential to obtaining medical care, as defined in Internal Revenue Code, section 213(d)(1)(A), in Minnesota for the taxpayer, spouse, or a dependent of the taxpayer and the travel expense is allowed under Internal Revenue Code, section 213(d)(1)(B), and is claimed by the taxpayer as a deductible expense. Individuals shall keep adequate records to substantiate the days spent outside the state.
The term "abode" means a dwelling maintained by an individual, whether or not owned by the individual and whether or not occupied by the individual, and includes a dwelling place owned or leased by the individual's spouse.
(c) In determining where an individual is domiciled, neither the commissioner nor any court shall consider:
(1) charitable contributions made
by an the individual within or without the state in
determining if the individual is domiciled in Minnesota.;
(2) the location of the individual's
attorney, certified public accountant, or financial adviser; or
(3) the place of business of a
financial institution at which the individual applies for any new type of
credit or at which the individual opens or maintains any type of account.
(d) For purposes of this subdivision,
the following terms have the meanings given them:
(1) "financial adviser"
means:
(i) an individual or business entity
engaged in business as a certified financial planner, registered investment
adviser, licensed insurance producer or agent, or a registered securities
broker-dealer representative; or
(ii) a financial institution providing
services related to trust or estate administration, investment management, or
financial planning; and
(2) "financial institution"
means a financial institution as defined in section 47.015, subdivision 1; a
state or nationally chartered credit union; or a registered broker-dealer under
the Securities and Exchange Act of 1934.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015, except the
amendment to paragraph (b) is effective for taxable years beginning after
December 31, 2016.
Sec. 4. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is amended to read:
Subd. 19. Net income. The term "net income" means the federal taxable income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through the date named in this subdivision, incorporating the federal effective dates of changes to the Internal Revenue Code and any elections made by the taxpayer in accordance with the Internal Revenue Code in determining federal taxable income for federal income tax purposes, and with the modifications provided in subdivisions 19a to 19f.
In the case of a regulated investment company or a fund thereof, as defined in section 851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue Code must be applied by allowing a deduction for capital gain dividends and exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; and
(3) the deduction for dividends paid must also be applied in the amount of any undistributed capital gains which the regulated investment company elects to have treated as provided in section 852(b)(3)(D) of the Internal Revenue Code.
The net income of a real estate investment trust as defined and limited by section 856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
The net income of a designated settlement fund as defined in section 468B(d) of the Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal Revenue Code.
The Internal Revenue Code of 1986, as amended
through December 31, 2014 2015, shall be in effect for taxable
years beginning after December 31, 1996.
Except as otherwise provided, references to the Internal Revenue Code in subdivisions 19 to 19f mean the code in effect for purposes of determining net income for the applicable year.
EFFECTIVE
DATE. This section is
effective the day following final enactment, except the changes incorporated by
federal changes are effective retroactively at the same time as the changes
were effective for federal purposes.
Sec. 5. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read:
Subd. 19a. Additions to federal taxable income. For individuals, estates, and trusts, there shall be added to federal taxable income:
(1)(i) interest income on obligations of any state other than Minnesota or a political or governmental subdivision, municipality, or governmental agency or instrumentality of any state other than Minnesota exempt from federal income taxes under the Internal Revenue Code or any other federal statute; and
(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue Code, except:
(A) the
portion of the exempt-interest dividends exempt from state taxation under the
laws of the United States; and
(B) the portion of the exempt-interest dividends derived from interest income on obligations of the state of Minnesota or its political or governmental subdivisions, municipalities, governmental agencies or instrumentalities, but only if the portion of the exempt-interest dividends from such Minnesota sources paid to all shareholders represents 95 percent or more of the exempt-interest dividends, including any dividends exempt under subitem (A), that are paid by the regulated investment company as defined in section 851(a) of the Internal Revenue Code, or the fund of the regulated investment company as defined in section 851(g) of the Internal Revenue Code, making the payment; and
(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal government described in section 7871(c) of the Internal Revenue Code shall be treated as interest income on obligations of the state in which the tribe is located;
(2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or accrued within the taxable year under this chapter and the amount of taxes based on net income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or to any province or territory of Canada, to the extent allowed as a deduction
under section 63(d) of the Internal Revenue Code, but the addition may not be more than the amount by which the state itemized deduction exceeds the amount of the standard deduction as defined in section 63(c) of the Internal Revenue Code, minus any addition that would have been required under clause (17) if the taxpayer had claimed the standard deduction. For the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are the last itemized deductions disallowed under clause (15);
(3) the capital gain amount of a lump-sum distribution to which the special tax under section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
(4) the amount of income taxes paid or accrued within the taxable year under this chapter and taxes based on net income paid to any other state or any province or territory of Canada, to the extent allowed as a deduction in determining federal adjusted gross income. For the purpose of this paragraph, income taxes do not include the taxes imposed by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10 other than expenses or interest used in computing net interest income for the subtraction allowed under subdivision 19b, clause (1);
(6) the amount of a partner's pro rata share of net income which does not flow through to the partner because the partnership elected to pay the tax on the income under section 6242(a)(2) of the Internal Revenue Code;
(7) 80 percent of the depreciation deduction allowed under section 168(k) of the Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that in the taxable year generates a deduction for depreciation under section 168(k) and the activity generates a loss for the taxable year that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is limited to excess of the depreciation claimed by the activity under section 168(k) over the amount of the loss from the activity that is not allowed in the taxable year. In succeeding taxable years when the losses not allowed in the taxable year are allowed, the depreciation under section 168(k) is allowed;
(8) 80 percent of the amount by which the
deduction allowed by section 179 of the Internal Revenue Code exceeds the deduction
allowable by under the dollar limits of section 179 of the
Internal Revenue Code of 1986, as amended through December 31, 2003;
(9) to the extent deducted in computing federal taxable income, the amount of the deduction allowable under section 199 of the Internal Revenue Code;
(10) the amount of expenses disallowed under section 290.10, subdivision 2;
(11) for taxable years beginning before January 1, 2010, the amount deducted for qualified tuition and related expenses under section 222 of the Internal Revenue Code, to the extent deducted from gross income;
(12) for taxable years beginning before January 1, 2010, the amount deducted for certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted from gross income;
(13) discharge of indebtedness income resulting from reacquisition of business indebtedness and deferred under section 108(i) of the Internal Revenue Code;
(14) changes to federal taxable income attributable to a net operating loss that the taxpayer elected to carry back for more than two years for federal purposes but for which the losses can be carried back for only two years under section 290.095, subdivision 11, paragraph (c);
(15) the amount of disallowed itemized deductions, but the amount of disallowed itemized deductions plus the addition required under clause (2) may not be more than the amount by which the itemized deductions as allowed under section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of the Internal Revenue Code, and reduced by any addition that would have been required under clause (17) if the taxpayer had claimed the standard deduction:
(i) the amount of disallowed itemized deductions is equal to the lesser of:
(A) three percent of the excess of the taxpayer's federal adjusted gross income over the applicable amount; or
(B) 80 percent of the amount of the itemized deductions otherwise allowable to the taxpayer under the Internal Revenue Code for the taxable year;
(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a married individual filing a separate return. Each dollar amount shall be increased by an amount equal to:
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code for the calendar year in which the taxable year begins, by substituting "calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
(iii) the term "itemized deductions" does not include:
(A) the deduction for medical expenses under section 213 of the Internal Revenue Code;
(B) any deduction for investment interest as defined in section 163(d) of the Internal Revenue Code; and
(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue Code or for losses described in section 165(d) of the Internal Revenue Code;
(16) the amount of disallowed personal exemptions for taxpayers with federal adjusted gross income over the threshold amount:
(i) the disallowed personal exemption amount is equal to the number of personal exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal Revenue Code, and by the applicable percentage;
(ii) "applicable percentage" means two percentage points for each $2,500 (or fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable year exceeds the threshold amount. In the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In no event shall the applicable percentage exceed 100 percent;
(iii) the term "threshold amount" means:
(A) $150,000 in the case of a joint return or a surviving spouse;
(B) $125,000 in the case of a head of a household;
(C) $100,000 in the case of an individual who is not married and who is not a surviving spouse or head of a household; and
(D) $75,000 in the case of a married individual filing a separate return; and
(iv) the thresholds shall be increased by an amount equal to:
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code for the calendar year in which the taxable year begins, by substituting "calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and
(17) to the extent deducted in the computation of federal taxable income, for taxable years beginning after December 31, 2010, and before January 1, 2014, the difference between the standard deduction allowed under section 63(c) of the Internal Revenue Code and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue Code as amended through December 1, 2010.
EFFECTIVE
DATE. This section is effective
the day following final enactment, except the changes incorporated by federal
changes are effective retroactively at the same time as the changes were
effective for federal purposes.
Sec. 6. 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;
(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 the section 179 expensing subtraction as
provided under section 290.0803, subdivision 3;
(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.
(21) the amount equal to the
contributions made during the taxable year to an account in a plan qualifying
under section 529 of the Internal Revenue Code, reduced by any withdrawals from
the account during the taxable year, not including amounts rolled over from
other accounts in plans qualifying under section 529 of the Internal Revenue
Code, and not to exceed $3,000 for married couples filing joint returns and
$1,500 for all other filers. The
subtraction must not include any amount used to claim the credit allowed under
section 290.0684; and
(22) to the extent included in federal
taxable income, the discharge of indebtedness of the taxpayer if the
indebtedness discharged is a qualified education loan, as defined in section
221 of the Internal Revenue Code, and the indebtedness was discharged following
the taxpayer's completion of an income-driven repayment plan. For purposes of this clause,
"income-driven repayment plan" means a payment plan established by
the United States Department of Education that sets monthly student loan
payments based on income and family size under United States Code, title 20,
section 1087e, or similar authority and specifically includes, but is not
limited to:
(1) the income-based repayment plan
under United State Code, title 20, section 1098e;
(2)
the income contingent repayment plan established under United State Code, title
20, section 1087e, subsection (e); and
(3) the PAYE program or REPAYE program
established by the Department of Education under administrative regulations.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:
Subd. 19c. Corporations; additions to federal taxable income. For corporations, there shall be added to federal taxable income:
(1) the amount of any deduction taken for federal income tax purposes for income, excise, or franchise taxes based on net income or related minimum taxes, including but not limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or any foreign country or possession of the United States;
(2) interest not subject to federal tax upon obligations of: the United States, its possessions, its agencies, or its instrumentalities; the state of Minnesota or any other state, any of its political or governmental subdivisions, any of its municipalities, or any of its governmental agencies or instrumentalities; the District of Columbia; or Indian tribal governments;
(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal Revenue Code;
(4) the
amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or
operations loss deduction under section 810 of the Internal Revenue Code;
(5) the amount of any special deductions taken for federal income tax purposes under sections 241 to 247 and 965 of the Internal Revenue Code;
(6) losses from the business of mining, as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota income tax;
(7) the amount of any capital losses deducted for federal income tax purposes under sections 1211 and 1212 of the Internal Revenue Code;
(8) the amount of percentage depletion deducted under sections 611 through 614 and 291 of the Internal Revenue Code;
(9) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, the amount of the amortization deduction allowed in computing federal taxable income for those facilities;
(10) the amount of a partner's pro rata share of net income which does not flow through to the partner because the partnership elected to pay the tax on the income under section 6242(a)(2) of the Internal Revenue Code;
(11) any increase in subpart F income, as defined in section 952(a) of the Internal Revenue Code, for the taxable year when subpart F income is calculated without regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
(12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that in the taxable year generates a deduction for depreciation under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the amount of the loss from the activity that is not allowed in the taxable year. In succeeding taxable years when the losses not allowed in the taxable year are allowed, the depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
(13) 80 percent of the amount by which the
deduction allowed by section 179 of the Internal Revenue Code exceeds the
deduction allowable by under the dollar limits of section 179 of
the Internal Revenue Code of 1986, as amended through December 31, 2003;
(14) to the extent deducted in computing federal taxable income, the amount of the deduction allowable under section 199 of the Internal Revenue Code;
(15) the amount of expenses disallowed under section 290.10, subdivision 2; and
(16) discharge of indebtedness income resulting from reacquisition of business indebtedness and deferred under section 108(i) of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective the day following final enactment, except the changes incorporated by
federal changes are effective retroactively at the same time as the changes
were effective for federal purposes.
Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:
Subd. 19d. Corporations; modifications decreasing federal taxable income. For corporations, there shall be subtracted from federal taxable income after the increases provided in subdivision 19c:
(1) the amount of foreign dividend gross-up added to gross income for federal income tax purposes under section 78 of the Internal Revenue Code;
(2) the amount of salary expense not allowed for federal income tax purposes due to claiming the work opportunity credit under section 51 of the Internal Revenue Code;
(3) any dividend (not including any distribution in liquidation) paid within the taxable year by a national or state bank to the United States, or to any instrumentality of the United States exempt from federal income taxes, on the preferred stock of the bank owned by the United States or the instrumentality;
(4) the deduction for capital losses pursuant to sections 1211 and 1212 of the Internal Revenue Code, except that:
(i) for capital losses incurred in taxable years beginning after December 31, 1986, capital loss carrybacks shall not be allowed;
(ii) for capital losses incurred in taxable years beginning after December 31, 1986, a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be allowed;
(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryback to each of the three taxable years preceding the loss year, subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
(iv) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryover to each of the five taxable years succeeding the loss year to the extent such loss was not used in a prior taxable year and subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed;
(5) an amount for interest and expenses relating to income not taxable for federal income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 291 of the Internal Revenue Code in computing federal taxable income;
(6) in the case of mines, oil and gas wells, other natural deposits, and timber for which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a reasonable allowance for depletion based on actual cost. In the case of leases the deduction must be apportioned between the lessor and lessee in accordance with rules prescribed by the commissioner. In the case of property held in trust, the allowable deduction must be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the trust, or if there is no provision in the instrument, on the basis of the trust's income allocable to each;
(7) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7;
(8) amounts included in federal taxable income that are due to refunds of income, excise, or franchise taxes based on net income or related minimum taxes paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or a foreign country or possession of the United States to the extent that the taxes were added to federal taxable income under subdivision 19c, clause (1), in a prior taxable year;
(9) income or gains from the business of mining as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota franchise tax;
(10) the amount of disability access expenditures in the taxable year which are not allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
(11) the amount of qualified research expenses not allowed for federal income tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that the amount exceeds the amount of the credit allowed under section 290.068;
(12) the amount of salary expenses not allowed for federal income tax purposes due to claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;
(13) any decrease in subpart F income, as defined in section 952(a) of the Internal Revenue Code, for the taxable year when subpart F income is calculated without regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
(14) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19c, clause (12), 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 19c, clause (12). The resulting delayed depreciation cannot be less than zero;
(15) in each of the five tax years
immediately following the tax year in which an addition is required under
subdivision 19c, clause (13), an amount equal to one-fifth of the amount of the
addition the section 179 expensing subtraction as provided under section
290.0803, subdivision 3;
(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 19c, clause (16); and
(17) 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.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 9. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is amended to read:
Subd. 31. Internal
Revenue Code. Unless specifically
defined otherwise, "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through December 31, 2014 2015. Internal Revenue Code also includes any
uncodified provision in federal law that relates to provisions of the Internal
Revenue Code that are incorporated into Minnesota law. When used in this chapter, the reference to
"subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue
Code" is to the Internal Revenue Code as amended through March 18, 2010.
EFFECTIVE
DATE. This section is
effective the day following final enactment, except the changes incorporated by
federal changes are effective retroactively at the same time as the changes
were effective for federal purposes.
Sec. 10. Minnesota Statutes 2014, section 290.06, subdivision 22, is amended to read:
Subd. 22. Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes based on net income to another state, as provided in paragraphs (b) through (f), upon income allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who is subject to income tax as a resident in the state of the individual's domicile is not allowed this credit unless the state of domicile does not allow a similar credit.
(b) For an individual, estate, or trust, the credit is determined by multiplying the tax payable under this chapter by the ratio derived by dividing the income subject to tax in the other state that is also subject to tax in Minnesota while a resident of Minnesota by the taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue Code, modified by the addition required by section 290.01, subdivision 19a, clause (1), and the subtraction allowed by section 290.01, subdivision 19b, clause (1), to the extent the income is allocated or assigned to Minnesota under sections 290.081 and 290.17.
(c) If the taxpayer is an athletic team that apportions all of its income under section 290.17, subdivision 5, the credit is determined by multiplying the tax payable under this chapter by the ratio derived from dividing the total net income subject to tax in the other state by the taxpayer's Minnesota taxable income.
(d)(1) The credit determined under
paragraph (b) or (c) shall not exceed the amount of tax so paid to the other
state on the gross income earned within the other state subject to tax under
this chapter,.
nor shall (2) The allowance
of the credit does not reduce the taxes paid under this chapter to an
amount less than what would be assessed if such income amount was the
gross income earned within the other state were excluded from taxable net
income.
(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum distribution that is also subject to tax under section 290.032, and shall not exceed the tax assessed under section 290.032. To the extent the total lump-sum
distribution defined in section 290.032, subdivision 1, includes lump-sum distributions received in prior years or is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution allowed under section 290.032, subdivision 2, includes tax paid to another state that is properly apportioned to that distribution.
(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax in such other state on that same income after the Minnesota statute of limitations has expired, the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any statute of limitations to the contrary. The claim for the credit must be submitted within one year from the date the taxes were paid to the other state. The taxpayer must submit sufficient proof to show entitlement to a credit.
(g) For the purposes of this subdivision, a resident shareholder of a corporation treated as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share of any net income tax paid by the S corporation to another state. For the purposes of the preceding sentence, the term "net income tax" means any tax imposed on or measured by a corporation's net income.
(h) For the purposes of this subdivision, a resident partner of an entity taxed as a partnership under the Internal Revenue Code must be considered to have paid a tax imposed on the partner in an amount equal to the partner's pro rata share of any net income tax paid by the partnership to another state. For purposes of the preceding sentence, the term "net income" tax means any tax imposed on or measured by a partnership's net income.
(i) For the purposes of this subdivision, "another state":
(1) includes:
(i) the District of Columbia; and
(ii) a province or territory of Canada; but
(2) excludes Puerto Rico and the several territories organized by Congress.
(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state by state basis.
(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this subdivision is the excess of the tax over the amount of the foreign tax credit allowed under section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit allowed, the net income taxes imposed by Canada on the income are deducted first. Any remaining amount of the allowable foreign tax credit reduces the provincial or territorial tax that qualifies for the credit under this subdivision.
(l) If the amount of the credit which a qualifying individual is eligible to receive under this section for tax paid to a qualifying state, disregarding the limitation in paragraph (d), clause (2), exceeds the tax due under this chapter, the commissioner shall refund the excess to the individual. An amount sufficient to pay the refunds required by this section is appropriated to the commissioner from the general fund.
For purposes of this paragraph, "qualifying
individual" means a Minnesota resident under section 290.01, subdivision
7, paragraph (a), who received compensation during the taxable year for the
performance of personal or professional services within a qualifying state, and
"qualifying state" means a state with which an agreement under section 290.081 is not in effect for the taxable
year but was in effect for a taxable year beginning before January 1, 2010.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 11. Minnesota Statutes 2014, section 290.067, subdivision 1, is amended to read:
Subdivision 1. Amount
of credit. (a) A taxpayer may take
as a credit against the tax due from the taxpayer and a spouse, if any, under
this chapter an amount equal to the dependent care credit for which the
taxpayer is eligible pursuant to the provisions of section 21 of the Internal
Revenue Code subject to the limitations provided in subdivision 2 except
that in determining whether the child qualified as a dependent, income received
as a Minnesota family investment program grant or allowance to or on behalf of
the child must not be taken into account in determining whether the child
received more than half of the child's support from the taxpayer, and the
provisions of section 32(b)(1)(D) of the Internal Revenue Code do not apply.
(b) If a child who has not attained the age of six years at the close of the taxable year is cared for at a licensed family day care home operated by the child's parent, the taxpayer is deemed to have paid employment-related expenses. If the child is 16 months old or younger at the close of the taxable year, the amount of expenses deemed to have been paid equals the maximum limit for one qualified individual under section 21(c) and (d) of the Internal Revenue Code. If the child is older than 16 months of age but has not attained the age of six years at the close of the taxable year, the amount of expenses deemed to have been paid equals the amount the licensee would charge for the care of a child of the same age for the same number of hours of care.
(c) If a married couple:
(1) has a child who has not attained the age of one year at the close of the taxable year;
(2) files a joint tax return for the taxable year; and
(3) does not participate in a dependent care assistance program as defined in section 129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i) the combined earned income of the couple or (ii) the amount of the maximum limit for one qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed to be the employment related expense paid for that child. The earned income limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These deemed amounts apply regardless of whether any employment-related expenses have been paid.
(d) If the taxpayer is not required and does not file a federal individual income tax return for the tax year, no credit is allowed for any amount paid to any person unless:
(1) the name, address, and taxpayer identification number of the person are included on the return claiming the credit; or
(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name and address of the person are included on the return claiming the credit.
In the case of a failure to provide the information required under the preceding sentence, the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence in attempting to provide the information required.
(e) In the case of a nonresident, part-year resident, or a person who has earned income not subject to tax under this chapter including earned income excluded pursuant to section 290.01, subdivision 19b, clause (9), the credit determined under section 21 of the Internal Revenue Code must be allocated based on the ratio by which the earned income of the claimant and the claimant's spouse from Minnesota sources bears to the total earned income of the claimant and the claimant's spouse.
(f) For residents of Minnesota, the subtractions for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not considered "earned income not subject to tax under this chapter."
(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the Internal Revenue Code is not considered "earned income not subject to tax under this chapter."
(h) For taxpayers with federal adjusted
gross income in excess of $38,000, the credit is equal to the lesser of the
credit otherwise calculated under this subdivision or the amount equal to the
credit otherwise calculated under this subdivision minus ten percent of federal
adjusted gross income in excess of $38,000, but in no case is the credit less
than zero. For purposes of this
paragraph, "federal adjusted gross income" has the meaning given in
section 62 of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 12. Minnesota Statutes 2014, section 290.067, subdivision 2b, is amended to read:
Subd. 2b. Inflation
adjustment. The commissioner shall
adjust the dollar amount of the income threshold at which the maximum credit
begins to be reduced under subdivision 2 1 by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B) the word "1999" "2015"
shall be substituted for the word "1992." For 2001 2017, the commissioner
shall then determine the percent change from the 12 months ending on August 31,
1999 2015, to the 12 months ending on August 31, 2000 2016,
and in each subsequent year, from the 12 months ending on August 31, 1999
2015, to the 12 months ending on August 31 of the year preceding the
taxable year. The determination of the
commissioner pursuant to this subdivision must not be considered a "rule"
and is not subject to the Administrative Procedure Act contained in chapter 14. The threshold amount as adjusted must be
rounded to the nearest $10 amount. If
the amount ends in $5, the amount is rounded up to the nearest $10 amount.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2016.
Sec. 13. Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1, is amended to read:
Subdivision 1. Credit
allowed. (a) An individual who is a
resident of Minnesota is allowed a credit against the tax imposed by this
chapter equal to a percentage of earned income.
To receive a credit, a taxpayer must be eligible for a credit under
section 32 of the Internal Revenue Code., except that:
(i) the earned income and adjusted
gross income limitations of section 32 of the Internal Revenue Code do not
apply; and
(ii) a taxpayer with no qualifying
children who has attained the age of 21 but not attained age 65 before the
close of the taxable year and is otherwise eligible for a credit under section
32 of the Internal Revenue Code may also receive a credit.
(b) For individuals with no qualifying
children, the credit equals 2.10 three percent of the first $6,180
$6,500 of earned income. The
credit is reduced by 2.01 three percent of earned income or
adjusted gross income, whichever is greater, in excess of $8,130 $12,000,
but in no case is the credit less than zero.
(c) For individuals with one qualifying
child, the credit equals 9.35 12.71 percent of the first $11,120
$8,350 of earned income. The
credit is reduced by 6.02 5.2 percent of earned income or
adjusted gross income, whichever is greater, in excess of $21,190 $21,620,
but in no case is the credit less than zero.
(d)
For individuals with two or more qualifying children, the credit equals 11
14.94 percent of the first $18,240 $13,700 of earned
income. The credit is reduced by 10.82
9.2 percent of earned income or adjusted gross income, whichever is
greater, in excess of $25,130 $25,640, but in no case is the credit
less than zero.
(e) For a part-year resident, the credit must be allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
(f) For a person who was a resident for the entire tax year and has earned income not subject to tax under this chapter, including income excluded under section 290.01, subdivision 19b, clause (9), the credit must be allocated based on the ratio of federal adjusted gross income reduced by the earned income not subject to tax under this chapter over federal adjusted gross income. For purposes of this paragraph, the subtractions for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not considered "earned income not subject to tax under this chapter."
For the purposes of this paragraph, the exclusion of combat pay under section 112 of the Internal Revenue Code is not considered "earned income not subject to tax under this chapter."
(g) For tax years beginning after December
31, 2007, and before December 31, 2010, and for tax years beginning after
December 31, 2017, the $8,130 $12,000 in paragraph (b), the $21,190
$21,620 in paragraph (c), and the $25,130 $25,640 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each
increased by $3,000 for married taxpayers filing joint returns. For tax years beginning after December 31, 2008
2017, the commissioner shall annually adjust the $3,000 by the
percentage determined pursuant to the provisions of section 1(f) of the
Internal Revenue Code, except that in section 1(f)(3)(B), the word
"2007" shall be substituted for the word "1992." For 2009 2018, the commissioner
shall then determine the percent change from the 12 months ending on August 31,
2007, to the 12 months ending on August 31, 2008 2017, and in
each subsequent year, from the 12 months ending on August 31, 2007, to the 12
months ending on August 31 of the year preceding the taxable year. The earned income thresholds as adjusted for
inflation must be rounded to the nearest $10.
If the amount ends in $5, the amount is rounded up to the nearest $10. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.
(h)(1) For tax years beginning after
December 31, 2012, and before January 1, 2014, the $5,770 in paragraph (b), the
$15,080 in paragraph (c), and the $17,890 in paragraph (d), after being
adjusted for inflation under subdivision 7, are
increased by $5,340 for married taxpayers filing joint returns; and (2) For tax years beginning after December 31,
2013 2015, and before January 1, 2018, the $8,130 $12,000
in paragraph (b), the $21,190 $21,620 in paragraph (c), and the $25,130
$25,640 in paragraph (d), after being adjusted for inflation under
subdivision 7, are each increased by $5,000 for married taxpayers filing joint
returns. For tax years beginning after
December 31, 2010, and before January 1, 2012, and for tax years beginning
after December 31, 2013 2015, and before January 1, 2018, the
commissioner shall annually adjust the $5,000 by the percentage determined
pursuant to the provisions of
section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B),
the word "2008" shall be substituted for the word "1992." For 2011 2016, the commissioner
shall then determine the percent change from the 12 months ending on August 31,
2008, to the 12 months ending on August 31, 2010 2015, and in
each subsequent year, from the 12 months ending on August 31, 2008, to the 12
months ending on August 31 of the year preceding the taxable year. The earned income thresholds as adjusted for
inflation must be rounded to the nearest $10.
If the amount ends in $5, the amount is rounded up to the nearest $10. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.
(i) The commissioner shall construct tables showing the amount of the credit at various income levels and make them available to taxpayers. The tables shall follow the schedule contained in this subdivision, except that the commissioner may graduate the transition between income brackets.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 14. Minnesota Statutes 2014, section 290.0671, subdivision 7, is amended to read:
Subd. 7. Inflation
adjustment. The earned income
amounts used to calculate the credit and the income thresholds at which the
maximum credit begins to be reduced in subdivision 1 must be adjusted for
inflation. The commissioner shall adjust
by the percentage determined pursuant to the provisions of section 1(f) of the
Internal Revenue Code, except that in section 1(f)(3)(B) the word "2013"
"2015" shall be substituted for the word "1992." For 2015 2017, the commissioner
shall then determine the percent change from the 12 months ending on August 31,
2013 2015, to the 12 months ending on August 31, 2014 2016,
and in each subsequent year, from the 12 months ending on August 31, 2013
2015, to the 12 months ending on August 31 of the year preceding the
taxable year. The earned income
thresholds as adjusted for inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is
rounded up to the nearest $10 amount. The
determination of the commissioner under this subdivision is not a rule under
the Administrative Procedure Act.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2016.
Sec. 15. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read:
Subd. 2. Limitations. (a) For claimants with income not greater than $33,500, the maximum credit allowed for a family is $1,000 multiplied by the number of qualifying children in kindergarten through grade 12 in the family. The maximum credit for families with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of household income over $33,500, and the maximum credit for families with two or more qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of household income over $33,500, but in no case is the credit less than zero.
For purposes of this section
"income" has the meaning given in section 290.067, subdivision
2a. In the case of a married claimant, a
credit is not allowed unless a joint income tax return is filed.
(b) For a nonresident or part-year resident, the credit determined under subdivision 1 and the maximum credit amount in paragraph (a) must be allocated using the percentage calculated in section 290.06, subdivision 2c, paragraph (e).
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 16. Minnesota Statutes 2014, section 290.0674, is amended by adding a subdivision to read:
Subd. 2a. Income. (a) For purposes of this section,
"income" means the sum of the following:
(1) federal adjusted gross income as
defined in section 62 of the Internal Revenue Code; and
(2) the sum of the following amounts to
the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity
loss that is not disallowed as a result of section 469, paragraph (i) or (m),
of the Internal Revenue Code and the amount of passive activity loss carryover
allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of
any discharge of qualified farm indebtedness of a solvent individual excluded
from gross income under section 108(g) of the Internal Revenue Code;
(iv) cash public assistance and relief;
(v)
any pension or annuity (including railroad retirement benefits, all payments
received under the federal Social Security Act, Supplemental Security Income,
and veterans benefits), which was not exclusively funded by the claimant or
spouse, or which was funded exclusively by the claimant or spouse and which
funding payments were excluded from federal adjusted gross income in the years
when the payments were made;
(vi) interest received from the federal
or a state government or any instrumentality or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments
received in the nature of disability income or sick pay as a result of
accident, sickness, or other disability, whether funded through insurance or
otherwise;
(x) a lump-sum distribution under
section 402(e)(3) of the Internal Revenue Code of 1986, as amended through
December 31, 1995;
(xi) contributions made by the claimant
to an individual retirement account, including a qualified voluntary employee
contribution; simplified employee pension plan; self-employed retirement plan;
cash or deferred arrangement plan under section 401(k) of the Internal Revenue
Code; or deferred compensation plan under section 457 of the Internal Revenue
Code;
(xii) nontaxable scholarship or
fellowship grants;
(xiii) the amount of deduction allowed
under section 199 of the Internal Revenue Code;
(xiv) the amount of deduction allowed
under section 220 or 223 of the Internal Revenue Code;
(xv) the amount deducted for tuition
expenses under section 222 of the Internal Revenue Code; and
(xvi) the amount deducted for certain
expenses of elementary and secondary school teachers under section 62(a)(2)(D)
of the Internal Revenue Code.
In the case of an individual who files
an income tax return on a fiscal year basis, the term "federal adjusted
gross income" means federal adjusted gross income reflected in the fiscal
year ending in the next calendar year. Federal
adjusted gross income may not be reduced by the amount of a net operating loss
carryback or carryforward or a capital loss carryback or carryforward allowed
for the year.
(b) "Income" does not
include:
(1) amounts excluded pursuant to the
Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity
that were exclusively funded by the claimant or spouse if the funding payments
were not excluded from federal adjusted gross income in the years when the
payments were made;
(3) surplus food or other relief in
kind supplied by a governmental agency;
(4) relief granted under chapter 290A;
(5) child support payments received
under a temporary or final decree of dissolution or legal separation; and
(6)
restitution payments received by eligible individuals and excludable interest
as defined in section 803 of the Economic Growth and Tax Relief Reconciliation
Act of 2001, Public Law 107-16.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 17. Minnesota Statutes 2014, section 290.0677, subdivision 1a, is amended to read:
Subd. 1a. Credit
allowed; past military service. (a)
A qualified individual is allowed a credit against the tax imposed under this
chapter for past military service. The
credit equals $750 $1,000.
The credit allowed under this subdivision is reduced by ten percent of
adjusted gross income in excess of $30,000 $50,000, but in no
case is the credit less than zero.
(b) For a nonresident or a part-year resident, the credit under this subdivision must be allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:
Subd. 2. Definitions. For purposes of this section, the following terms have the meanings given.
(a) "Qualified research expenses" means (i) qualified research expenses and basic research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does not include expenses incurred for qualified research or basic research conducted outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and (ii) contributions to a nonprofit corporation established and operated pursuant to the provisions of chapter 317A for the purpose of promoting the establishment and expansion of business in this state, provided the contributions are invested by the nonprofit corporation for the purpose of providing funds for small, technologically innovative enterprises in Minnesota during the early stages of their development.
(b) "Qualified research" means qualified research as defined in section 41(d) of the Internal Revenue Code, except that the term does not include qualified research conducted outside the state of Minnesota.
(c) "Base amount" means base
amount as defined in section 41(c) of the Internal Revenue Code, except that
the average annual gross receipts must be calculated using Minnesota sales or
receipts under section 290.191 and the definitions contained in clauses (a) and
(b) shall apply. If there are
inadequate records or the records are unavailable to compute or verify the base
percentage, a fixed base percentage of 16 percent must be used.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 19. [290.0682]
CREDIT FOR ATTAINING MASTER'S DEGREE IN TEACHER'S LICENSURE FIELD.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given them.
(b) "Master's degree program"
means a graduate-level program at an accredited university leading to a master
of arts or science degree in a core content area directly related to a
qualified teacher's licensure field. The
master's degree program may not include pedagogy or a pedagogy component. To be eligible under this credit, a licensed
elementary school teacher must pursue and complete a master's degree program in
a core content area in which the teacher provides direct classroom instruction.
(c) "Qualified teacher" means
a K-12 teacher who:
(1)
holds a continuing license granted by the Minnesota Board of Teaching both when
the teacher begins the master's degree program and when the teacher completes
the master's degree program;
(2) began a master's degree program
after June 30, 2016; and
(3) completes the master's degree
program during the taxable year.
(d) "Core content area" means
the academic subject of reading, English or language arts, mathematics,
science, foreign languages, civics and government, economics, arts, history, or
geography.
Subd. 2. Credit
allowed. (a) An individual
who is a qualified teacher is allowed a credit against the tax imposed under
this chapter. The credit equals $2,500.
(b) For a nonresident or a part-year
resident, the credit under this subdivision must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
(c) A qualified teacher may claim the
credit in this section only one time for each master's degree program completed
in a core content area.
Subd. 3. Credit
refundable. (a) If the amount
of the credit for which an individual is eligible exceeds the individual's
liability for tax under this chapter, the commissioner shall refund the excess
to the individual.
(b) The amount necessary to pay the
refunds required by this section is appropriated to the commissioner from the
general fund.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 20. [290.0683]
STUDENT LOAN CREDIT.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Adjusted gross income"
means federal adjusted gross income as defined in section 62 of the Internal
Revenue Code. In the case of a married
couple filing jointly, "adjusted gross income" means the adjusted
gross income of the taxpayer and spouse.
(c)
"Earned income" has the meaning given in section 32(c) of the
Internal Revenue Code, except that "earned income" includes combat
pay excluded from federal taxable income under section 112 of the Internal
Revenue Code.
(d) "Education profession"
means:
(1) a full-time job in public
education; early childhood education, including licensed or regulated child
care, Head Start, and state-funded prekindergarten; school-based library
sciences; and other school-based services; or
(2) a full-time job as a faculty member
at a tribal college or university as defined in section 1059c(b) of the
Internal Revenue Code, and other faculty teaching in high-needs subject areas
or areas of shortage, including nurse faculty, foreign language faculty, and
part-time faculty at community colleges, as determined by the United States
Secretary of Education.
(e) "Eligible individual"
means an individual who has one or more qualified education loans related to an
undergraduate or graduate degree program of the individual at a postsecondary
educational institution.
(f)
"Eligible loan payments" means the amount the eligible individual
paid during the taxable year to pay principal and interest on qualified
education loans.
(g) "Postsecondary educational
institution" means a postsecondary institution eligible for state student
aid under section 136A.103 or, if the institution is not located in this state,
a postsecondary institution participating in the federal Pell Grant program
under Title IV of the Higher Education Act of 1965, Public Law 89-329, as
amended.
(h) "Public service job"
means a full-time job in emergency management; government, excluding time
served as a member of Congress; military service; public safety; law
enforcement; public health, including nurses, nurse practitioners, nurses in a
clinical setting, and full-time professionals engaged in health care
practitioner occupations and health care support occupations, as such terms are
defined by the Bureau of Labor Statistics; social work in a public child or
family service agency; public interest law services including prosecution or
public defense or legal advocacy on behalf of low-income communities at a
nonprofit organization; public service for individuals with disabilities or public service for the elderly;
public library sciences; or at an organization that is described in section
501(c)(3) of the Internal Revenue Code and exempt from taxation under section
501(a) of the Internal Revenue Code.
(i) "Qualified education
loan" has the meaning given in section 221 of the Internal Revenue Code,
but is limited to indebtedness incurred on behalf of the eligible individual.
Subd. 2. Credit
allowed. (a) An eligible
individual is allowed a credit against the tax due under this chapter. The credit equals a percentage of eligible
loan payments in excess of ten percent of adjusted gross income, up to $1,000,
as follows:
(1) for eligible individuals, 50
percent;
(2) for eligible individuals in a
public service job, 65 percent; and
(3) for eligible individuals in an
education profession, 75 percent.
(b) The credit must not exceed the
eligible individual's earned income for the taxable year.
(c) In the case of a married couple
filing a joint return, each spouse is eligible for the credit in this section.
(d) For a nonresident or part-year
resident, the credit must be allocated based on the percentage calculated under
section 290.06, subdivision 2c, paragraph (e).
(e) An eligible individual may receive
the credit under this section without regard to the individual's eligibility
for the public service loan forgiveness program under United States Code, title
20, section 1087e(m).
Subd. 3. Credit
refundable. If the amount of
credit that an individual who is a resident or part-year resident of Minnesota
is eligible to receive under this section exceeds the individual's tax
liability under this chapter, the commissioner shall refund the excess to the
individual. For a nonresident taxpayer,
the credit may not exceed the taxpayer's liability for tax under this chapter.
Subd. 4. Appropriation. An amount sufficient to pay the
refunds required by this section is appropriated to the commissioner from the
general fund.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 21. [290.0684]
SECTION 529 COLLEGE SAVINGS PLAN CREDIT.
Subdivision 1. Definitions. For purposes of this section, the term
"federal adjusted gross income" has the meaning given under section
62(a) of the Internal Revenue Code, and "nonqualified distribution"
means any distribution that is includible in gross income under section 529 of
the Internal Revenue Code.
Subd. 2. Credit
allowed. (a) A credit of up
to $500 is allowed to a resident individual against the tax imposed by this
chapter, subject to the limitations in paragraph (b). The credit is not allowed to an individual
who is eligible to be claimed as a dependent, as defined in sections 151 and
152 of the Internal Revenue Code.
(b) The credit allowed must be
calculated by applying the following rates to the amount contributed to an
account in a plan qualifying under section 529 of the Internal Revenue Code, in
a taxable year, reduced by any withdrawals from the account made during the
taxable year, and not including any amounts rolled over from other accounts in
plans qualifying under section 529 of the Internal Revenue Code:
(1) 50 percent for individual filers
and married couples filing a joint return who have federal adjusted gross
income of not more than $80,000;
(2) 25 percent for married couples
filing a joint return who have federal adjusted gross income over $80,000, but
not more than $100,000;
(3) ten percent for married couples
filing a joint return who have federal adjusted gross income over $100,000, but
not more than $120,000; and
(4) five percent for married couples
filing a joint return who have federal adjusted gross income over $120,000, but
not more than $160,000.
(c) The income thresholds in paragraph
(b), clauses (1) to (4), used to calculate the credit, must be adjusted for
inflation. The commissioner shall adjust
by the percentage determined under the provisions of section 1(f) of the
Internal Revenue Code, except that in section 1(f)(3)(B) the word
"2015" is substituted for the word "1992." For 2017, the commissioner shall then
determine the percent change from the 12 months ending on August 31, 2015, to
the 12 months ending on August 31, 2016, and in each subsequent year, from the
12 months ending on August 31, 2015, to the 12 months ending on August 31 of
the year preceding the taxable year. The
income thresholds as adjusted for inflation must be rounded to the nearest $10
amount. If the amount ends in $5, the
amount is rounded up to the nearest $10 amount.
The determination of the commissioner under this subdivision is not a
rule under the Administrative Procedure Act including section 14.386.
Subd. 3. Credit
refundable. If the amount of
credit that an individual is eligible to receive under this section exceeds the
individual's tax liability under this chapter, the commissioner shall refund
the excess to the individual.
Subd. 4. Allocation. For a part-year resident, the credit
must be allocated based on the percentage calculated under section 290.06,
subdivision 2c, paragraph (e).
Subd. 5. Recapture
of credit. In the case of a
nonqualified distribution, the taxpayer is liable to the commissioner for the
lesser of: ten percent of the amount of
the nonqualified distribution, or the sum of credits received under this
section for all years.
Subd. 6. Appropriation. An amount sufficient to pay the
refunds required by this section is appropriated to the commissioner from the
general fund.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 22. [290.0803]
SECTION 179 EXPENSING SUBTRACTION.
Subdivision 1. Current
year allowance. (a) In each
of the five tax years immediately following the tax year in which an addition
is required under section 290.01, subdivision 19a, clause (8), or 19c, clause
(13), the current year allowance equals one-fifth of the addition made by the
taxpayer under section 290.01, subdivision 19a, clause (8), or 19c, clause
(13).
(b) In the case of a shareholder of a
corporation that is an S corporation, the current year allowance is
reduced by the positive value of any net
operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition and, if the net operating loss exceeds the addition
for the tax year, the current year allowance is zero.
Subd. 2. Section
179 expensing carryover. For
purposes of this section, the current year allowance determined under
subdivision 1 is considered to be the last modification allowed under section
290.01, subdivision 19b or 19d, in determining net income. If the amount allowed under subdivision 1
exceeds net income computed without regard to the current year allowance, then
the excess is a section 179 expensing carryover to each of the ten succeeding
taxable years. The entire amount of the
section 179 expensing carryover is carried first to the earliest taxable year
to which the section 179 expensing carryover may be carried and then to each
successive year to which the section 179 expensing carryover may be carried.
Subd. 3. Section
179 expensing subtraction. A
taxpayer is allowed a section 179 expensing subtraction from federal taxable
income under section 290.01, subdivision 19b or 19d. The subtraction equals the sum of:
(1) the current year allowance
determined under subdivision 1; and
(2) any section 179 expensing carryover
from prior taxable years determined under subdivision 2.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 23. Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read:
Subd. 2. Definitions. For purposes of the tax imposed by this section, the following terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of the following for the taxable year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section 55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a disabled person;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), to the extent not included in federal alternative minimum taxable income, the excess of the deduction for depletion allowable under section 611 of the Internal Revenue Code for the taxable year over the adjusted basis of the property at the end of the taxable year (determined without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
(6) the amount of addition required by section 290.01, subdivision 19a, clauses (7) to (9), and (11) to (14);
less the sum of the amounts determined under the following:
(1) interest income as defined in section 290.01, subdivision 19b, clause (1);
(2) an overpayment of state income tax as provided by section 290.01, subdivision 19b, clause (2), to the extent included in federal alternative minimum taxable income;
(3) the amount of investment interest paid or accrued within the taxable year on indebtedness to the extent that the amount does not exceed net investment income, as defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted in computing federal adjusted gross income;
(4) amounts subtracted from federal taxable
income as provided by section 290.01, subdivision 19b, clauses (6), (8) to
(14), (16), and (21) (22); and
(5) the amount of the net operating loss allowed under section 290.095, subdivision 11, paragraph (c).
In the case of an estate or trust, alternative minimum taxable income must be computed as provided in section 59(c) of the Internal Revenue Code.
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed under this chapter.
(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income after subtracting the exemption amount determined under subdivision 3.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 24. Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15, is amended to read:
Subd. 15. Internal
Revenue Code. "Internal Revenue
Code" means the Internal Revenue Code of 1986, as amended through December
31, 2014 2015.
EFFECTIVE
DATE. This section is
effective retroactively for property tax refunds based on property taxes
payable after December 31, 2015, and rent paid after December 31, 2014.
Sec. 25. Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is amended to read:
Subdivision 1. Scope. Unless the context otherwise clearly requires, the following terms used in this chapter shall have the following meanings:
(1) "Commissioner" means the commissioner of revenue or any person to whom the commissioner has delegated functions under this chapter.
(2) "Federal gross estate" means the gross estate of a decedent as required to be valued and otherwise determined for federal estate tax purposes under the Internal Revenue Code, increased by the value of any property in which the decedent had a qualifying income interest for life and for which an election was made under section 291.03, subdivision 1d, for Minnesota estate tax purposes, but was not made for federal estate tax purposes.
(3) "Internal Revenue Code" means
the United States Internal Revenue Code of 1986, as amended through December
31, 2014 2015.
(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) excluding therefrom any property included in the estate which has its situs outside Minnesota, and (b) including any property omitted from the federal gross estate which is includable in the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
(5) "Nonresident decedent" means an individual whose domicile at the time of death was not in Minnesota.
(6) "Personal representative" means the executor, administrator or other person appointed by the court to administer and dispose of the property of the decedent. If there is no executor, administrator or other person appointed, qualified, and acting within this state, then any person in actual or constructive possession of any property having a situs in this state which is included in the federal gross estate of the decedent shall be deemed to be a personal representative to the extent of the property and the Minnesota estate tax due with respect to the property.
(7) "Resident decedent" means an
individual whose domicile at the time of death was in Minnesota. The provisions of section 290.01,
subdivision 7, paragraphs (c) and (d), apply to determinations of domicile
under this chapter.
(8) "Situs of property" means, with respect to:
(i) real property, the state or country in which it is located;
(ii) tangible personal property, the state or country in which it was normally kept or located at the time of the decedent's death or for a gift of tangible personal property within three years of death, the state or country in which it was normally kept or located when the gift was executed;
(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue Code, owned by a nonresident decedent and that is normally kept or located in this state because it is on loan to an organization, qualifying as exempt from taxation under section 501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
(iv) intangible personal property, the state or country in which the decedent was domiciled at death or for a gift of intangible personal property within three years of death, the state or country in which the decedent was domiciled when the gift was executed.
For a nonresident decedent with an ownership interest in a pass-through entity with assets that include real or tangible personal property, situs of the real or tangible personal property, including qualified works of art, is determined as if the pass-through entity does not exist and the real or tangible personal property is personally owned by the decedent. If the pass-through entity is owned by a person or persons in addition to the decedent, ownership of the property is attributed to the decedent in proportion to the decedent's capital ownership share of the pass-through entity.
(9) "Pass-through entity" includes the following:
(i) an entity electing S corporation status under section 1362 of the Internal Revenue Code;
(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
(iii) a single-member limited liability company or similar entity, regardless of whether it is taxed as an association or is disregarded for federal income tax purposes under Code of Federal Regulations, title 26, section 301.7701-3; or
(iv) a trust to the extent the property is includible in the decedent's federal gross estate; but excludes
(v) an entity whose ownership interest securities are traded on an exchange regulated by the Securities and Exchange Commission as a national securities exchange under section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.
EFFECTIVE DATE. This section is effective retroactively for
estates of decedents dying after December 31, 2015.
Sec. 26. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision to read:
Subd. 12. Certain
dispositions to government entities.
Notwithstanding any provision of this section, no taxpayer is
disqualified for the subtraction provided under section 291.016, subdivision 3,
nor is any taxpayer liable for the recapture tax provided in subdivision 11,
solely because the state, any local government unit, or any other entity that
has the power of eminent domain acquires title or possession of the land for a
public purpose within the three-year holding period.
EFFECTIVE
DATE. This section is
effective retroactively for estates of decedents dying after June 30, 2011.
Sec. 27. AMENDED
RETURNS.
Subdivision 1. Certain
IRA rollovers. An individual
who excludes an amount from net income in a prior taxable year through rollover
of an airline payment amount to a traditional IRA, as authorized under Public
Law 114-113, division Q, title III, section 307, may file an amended individual
income tax return and claim for refund of state taxes as provided under
Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September
1, 2016.
Subd. 2. Exclusion
for certain incarcerated individuals.
An individual who excludes from net income in a prior taxable
year civil damages, restitution, or other monetary award received as
compensation for a wrongful incarceration, as authorized under Public Law
114-113, division Q, title III, section 304, may file an amended individual
income tax return and claim for refund of state taxes as provided under
Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September
1, 2016.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 28. ESTATE
TAX REVIEW; TEMPORARY LIMIT ON ASSESSMENTS.
(a) The commissioner of revenue shall:
(1) review the estate tax's definition
of qualified farm property and its linkage to the property tax classification
of the property during the three-year period following the death of the
decedent; and
(2) by February 1, 2017, report to the
committees of the house of representatives and the senate with jurisdiction
over taxes on alternative methods of ensuring that the use of the property by
qualified heirs during the three-year period after the decedent's death is
consistent with the purpose of limiting the subtraction to properties where its
use continues that of the decedent without any material change in its use by
the qualified heirs and its ownership is consistent with maintaining family
ownership of the farm.
(b) Prior to June 1, 2017, the
commissioner of revenue shall not assess recapture tax under Minnesota
Statutes, section 291.03, subdivision 11, for a change in the property tax
classification of agricultural homestead property if the following conditions
are satisfied:
(1) the property is held in a trust of
which the surviving spouse is a beneficiary; and
(2) the property receives partial
homestead classification because a beneficiary of the trust is the owner of
another agricultural homestead.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 29. INDIVIDUAL
INCOME TAX COLLECTION ACTION PROHIBITED.
Notwithstanding any law to the contrary, the commissioner of revenue shall not increase the amount due or decrease the refund for an individual income tax return for the taxable year beginning after December 31, 2014, and before January 1, 2016, to the extent the amount due was understated or the refund was overstated because the taxpayer calculated the tax or refund based on the Internal Revenue Code, as amended through December 31, 2014, rather than based on the Internal Revenue Code, as amended through December 31, 2015, as provided in this act.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. REPEALER.
Minnesota Statutes 2014, section
290.067, subdivisions 2 and 2a, are repealed.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
ARTICLE 4
SALES AND USE TAXES
Section 1. Minnesota Statutes 2014, section 297A.61, subdivision 3, is amended to read:
Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited to, each of the transactions listed in this subdivision. In applying the provisions of this chapter, the terms "tangible personal property" and "retail sale" include the taxable services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable services, unless specifically provided otherwise. Services performed by an employee for an employer are not taxable. Services performed by a partnership or association for another partnership or association are not taxable if one of the entities owns or controls more than 80 percent of the voting power of the
equity interest in the other entity. Services performed between members of an affiliated group of corporations are not taxable. For purposes of the preceding sentence, "affiliated group of corporations" means those entities that would be classified as members of an affiliated group as defined under United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
(b) Sale and purchase include:
(1) any transfer of title or possession, or both, of tangible personal property, whether absolutely or conditionally, for a consideration in money or by exchange or barter; and
(2) the leasing of or the granting of a license to use or consume, for a consideration in money or by exchange or barter, tangible personal property, other than a manufactured home used for residential purposes for a continuous period of 30 days or more.
(c) Sale and purchase include the production, fabrication, printing, or processing of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the production, fabrication, printing, or processing.
(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
(1) prepared food sold by the retailer;
(2) soft drinks;
(3) candy;
(4) dietary supplements; and
(5) all food sold through vending machines.
(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas, water, or steam for use or consumption within this state.
(f) A sale and a purchase includes the transfer for a consideration of prewritten computer software whether delivered electronically, by load and leave, or otherwise.
(g) A sale and a purchase includes the furnishing for a consideration of the following services:
(1) the privilege of admission to places of amusement, recreational areas, or athletic events, and the making available of amusement devices, tanning facilities, reducing salons, steam baths, health clubs, and spas or athletic facilities;
(2) lodging and related services by a hotel, rooming house, resort, campground, motel, or trailer camp, including furnishing the guest of the facility with access to telecommunication services, and the granting of any similar license to use real property in a specific facility, other than the renting or leasing of it for a continuous period of 30 days or more under an enforceable written agreement that may not be terminated without prior notice and including accommodations intermediary services provided in connection with other services provided under this clause;
(3) nonresidential parking services, whether on a contractual, hourly, or other periodic basis, except for parking at a meter;
(4) the granting of membership in a club, association, or other organization if:
(i) the club, association, or other organization makes available for the use of its members sports and athletic facilities, without regard to whether a separate charge is assessed for use of the facilities; and
(ii) use of the sports and athletic facility is not made available to the general public on the same basis as it is made available to members.
Granting of membership means both onetime initiation fees and periodic membership dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming pools; and other similar athletic or sports facilities;
(5) delivery of aggregate materials by a third party, excluding delivery of aggregate material used in road construction; and delivery of concrete block by a third party if the delivery would be subject to the sales tax if provided by the seller of the concrete block. For purposes of this clause, "road construction" means construction of:
(i) public roads;
(ii) cartways; and
(iii) private roads in townships located outside of the seven-county metropolitan area up to the point of the emergency response location sign; and
(6) services as provided in this clause:
(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not include services provided by coin operated facilities operated by the customer;
(ii) motor vehicle washing, waxing, and cleaning services, including services provided by coin operated facilities operated by the customer, and rustproofing, undercoating, and towing of motor vehicles;
(iii) building and residential cleaning, maintenance, and disinfecting services and pest control and exterminating services;
(iv) detective, security, burglar, fire alarm, and armored car services; but not including services performed within the jurisdiction they serve by off-duty licensed peace officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit organization or any organization at the direction of a county for monitoring and electronic surveillance of persons placed on in-home detention pursuant to court order or under the direction of the Minnesota Department of Corrections;
(v) pet grooming services;
(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility lines. Services performed under a construction contract for the installation of shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
(vii) massages, except when provided by a licensed health care facility or professional or upon written referral from a licensed health care facility or professional for treatment of illness, injury, or disease; and
(viii) the furnishing of lodging, board, and care services for animals in kennels and other similar arrangements, but excluding veterinary and horse boarding services.
(h) A sale and a purchase includes the furnishing for a consideration of tangible personal property or taxable services by the United States or any of its agencies or instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
(i) A sale and a purchase includes the furnishing for a consideration of telecommunications services, ancillary services associated with telecommunication services, and pay television services. Telecommunication services include, but are not limited to, the following services, as defined in section 297A.669: air-to-ground radiotelephone service, mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid wireless calling service, and private communication services. The services in this paragraph are taxed to the extent allowed under federal law.
(j) A sale and a purchase includes the furnishing for a consideration of installation if the installation charges would be subject to the sales tax if the installation were provided by the seller of the item being installed.
(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02, subdivision 11.
(l) A sale and a purchase includes furnishing for a consideration of specified digital products or other digital products or granting the right for a consideration to use specified digital products or other digital products on a temporary or permanent basis and regardless of whether the purchaser is required to make continued payments for such right. Wherever the term "tangible personal property" is used in this chapter, other than in subdivisions 10 and 38, the provisions also apply to specified digital products, or other digital products, unless specifically provided otherwise or the context indicates otherwise.
(m) The sale of the privilege of
admission under section 297A.61, subdivision 3, paragraph (g), clause (1), to a
place of amusement or athletic event includes all charges included in the
privilege of admission's sales price, without deduction for amenities that may
be provided, unless the amenities are separately stated and the purchaser of
the privilege of admission is entitled to add or decline the amenities, and the
amenities are not otherwise taxable.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) To the extent allowed by the United States Constitution and the laws of the United States, "retailer maintaining a place of business in this state," or a similar term, means a retailer:
(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an office, place of distribution, sales, storage, or sample room or place, warehouse, or other place of business, including the employment of a resident of this state who works from a home office in this state; or
(2) having a representative, including, but
not limited to, an affiliate, agent, salesperson, canvasser, or marketplace
provider, solicitor, or other third party operating in this state
under the authority of the retailer or its subsidiary, for any purpose,
including the repairing, selling, delivering, installing, facilitating
sales, processing sales, or soliciting of orders for the retailer's goods
or services, or the leasing of tangible personal property located in this
state, whether the place of business or agent, representative, affiliate,
salesperson, canvasser, or solicitor is located in the state permanently or
temporarily, or whether or not the retailer, subsidiary, or affiliate is
authorized to do business in this state.
A retailer is represented by a marketplace provider in this state if
the retailer makes sales in this state facilitated by a marketplace provider
that maintains a place of business in this state.
(b) "Destination of a sale" means the location to which the retailer makes delivery of the property sold, or causes the property to be delivered, to the purchaser of the property, or to the agent or designee of the purchaser. The delivery may be made by any means, including the United States Postal Service or a for-hire carrier.
(c) "Marketplace provider"
means any person who facilitates a retail sale by a retailer by:
(1) listing or advertising for sale by
the retailer in any forum, tangible personal property, services, or digital
goods that are subject to tax under this chapter; and
(2) either directly or indirectly through
agreements or arrangements with third parties collecting payment from the
customer and transmitting that payment to the retailer regardless of whether
the marketplace provider receives compensation or other consideration in
exchange for its services.
(d) "Total taxable retail
sales" means the gross receipts from the sale of all tangible goods,
services, and digital goods subject to sales and use tax under this chapter.
Sec. 3. Minnesota Statutes 2014, section 297A.66, subdivision 2, is amended to read:
Subd. 2. Retailer maintaining place of business in this state. (a) Except as provided in paragraph (b), a retailer maintaining a place of business in this state who makes retail sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and remit them to the commissioner under section 297A.77.
(b) A retailer with total taxable
retail sales to customers in this state of less than $10,000 in the 12-month
period ending on the last day of the most recently completed calendar quarter
is not required to collect and remit sales tax if it is determined to be a
retailer maintaining a place of business in the state solely because it made
sales through one or more marketplace providers. The provisions of this paragraph do not apply
to a retailer that is or was registered to collect sales and use tax in this
state.
Sec. 4. Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read:
Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of subdivision 1, paragraph (a), if the entity:
(1) the entity uses its facilities
or employees in this state to advertise, promote, or facilitate the
establishment or maintenance of a market for sales of items by the retailer to
purchasers in this state or for the provision of services to the retailer's
purchasers in this state, such as accepting returns of purchases for the
retailer, providing assistance in resolving customer complaints of the
retailer, or providing other services; and
(2) the retailer and the entity are
related parties. has the same or a similar business name to the retailer
and sells, from a location or locations in this state, tangible personal
property, digital goods, or services, taxable under this chapter, that are
similar to that sold by the retailer;
(3) maintains an office, distribution
facility, salesroom, warehouse, storage place, or other similar place of
business in this state to facilitate the delivery of tangible personal
property, digital goods, or services sold by the retailer to its customers in
this state;
(4) maintains a place of business in
this state and uses trademarks, service marks, or trade names in this state
that are the same or substantially similar to those used by the retailer, and
that use is done with the express or implied consent of the holder of the marks
or names;
(5)
delivers, installs, or assembles tangible personal property in this state, or
performs maintenance or repair services on tangible personal property in this
state, for tangible personal property sold by the retailer;
(6) facilitates the delivery of
tangible personal property to customers of the retailer by allowing the
customers to pick up tangible personal property sold by the retailer at a place
of business the entity maintains in this state; or
(7) shares management, business
systems, business practices, or employees with the retailer, or engages in
intercompany transactions with the retailer related to the activities that
establish or maintain the market in this state of the retailer.
(b) Two entities are related parties under this section if one of the entities meets at least one of the following tests with respect to the other entity:
(1) one or both entities is a corporation, and one entity and any party related to that entity in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of section 318 of the Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent of the value of the corporation's outstanding stock;
(2) one or both entities is a partnership,
estate, or trust and any partner or beneficiary, and the partnership, estate,
or trust and its partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at least 50 percent of the
profits, capital, stock, or value of the other entity or both entities; or
(3) an individual stockholder and the
members of the stockholder's family (as defined in section 318 of the Internal
Revenue Code) owns directly, indirectly, beneficially, or constructively, in
the aggregate, at least 50 percent of the value of both entities' outstanding
stock.;
(4) the entities are related within the
meaning of subsections (b) and (c) of section 267 or 707(b)(1) of the Internal
Revenue Code; or
(5) the entities have one or more
ownership relationships and the relationships were designed with a principal
purpose of avoiding the application of this section.
(c) An entity is an affiliate under the provisions of this subdivision if the requirements of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first day of the month before the month in which the sale was made.
Sec. 5. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision to read:
Subd. 4b. Collection
and remittance requirements for marketplace providers and marketplace sellers. (a) A marketplace provider shall
collect sales and use taxes and remit them to the commissioner under section
297A.77 for all facilitated sales for a retailer, and is subject to audit on
the retail sales it facilitates unless the retailer either:
(1) provides a copy of the retailer's
registration to collect sales and use tax in this state to the marketplace
provider before the marketplace provider facilitates a sale; or
(2) upon inquiry by the marketplace
provider or its agent, the commissioner discloses that the retailer is
registered to collect sales and use taxes in this state.
(b) Nothing in this subdivision shall
be construed to interfere with the ability of a marketplace provider and a
retailer to enter into an agreement regarding fulfillment of the requirements
of this chapter.
(c)
A marketplace provider is not liable under this subdivision for failure to file
and collect and remit sales and use taxes if the marketplace provider
demonstrates that the error was due to incorrect or insufficient information
given to the marketplace provider by the retailer. This paragraph does not apply if the
marketplace provider and the marketplace seller are related as defined in
subdivision 4, paragraph (b).
Sec. 6. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read:
Subd. 7a. Accessories
and supplies. Accessories and
supplies required for the effective use of durable medical equipment for home
use only or purchased in a transaction covered by Medicare or, Medicaid,
or other health insurance plan, that are not already exempt under
subdivision 7, are exempt. Accessories
and supplies for the effective use of a prosthetic device, that are not already
exempt under subdivision 7, are exempt. For
purposes of this subdivision "durable medical equipment,"
"prosthetic device," "Medicare," and "Medicaid"
have the definitions given in subdivision 7., and "other health
insurance plan" means a health plan defined in section 62A.011,
subdivision 3, or 62V.02, subdivision 4, or a qualified health plan defined in
section 62A.011, subdivision 7.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 7. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision to read:
Subd. 34. Suite
licenses. The sale of the
privilege of admission under section 297A.61, subdivision 3, paragraph (g),
clause (1), to a place of amusement or athletic event does not include
consideration paid for a license to use a private suite, private skybox, or
private box seat provided that: (1) the
lessee may use the private suite, private skybox, or private box seat by mutual
arrangement with the lessor on days when there is no amusement or athletic event; and (2) the sales price for the
privilege of admission is separately stated and is equal to or greater than the
highest priced general admission ticket for the closest seat not in the private
suite, private skybox, or private box seat.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 8. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision to read:
Subd. 35. Stadium
builder's licenses. The sale
of the privilege of admission under section 297A.61, subdivision 3, paragraph
(g), clause (1), does not include consideration paid for a stadium builder's
license authorized under section 473J.15, subdivision 14.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2014, section 297A.68, subdivision 9, is amended to read:
Subd. 9. Super
Bowl admissions and related events.
(a) The granting of the privilege of admission to a world
championship football game sponsored by the National Football League is and
to related events sponsored by the National Football League or its affiliates,
or the Minnesota Super Bowl Host Committee, are exempt.
(b) The sale of nonresidential parking
by the National Football League for attendance at a world championship football
game sponsored by the National Football League and for related events sponsored
by the National Football League or its affiliates, or the Minnesota Super Bowl
Host Committee, is exempt.
(c) For the purposes of this
subdivision:
(1) "related events sponsored by
the National Football League or its affiliates" includes but is not
limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL On
Location, and NFL House; and
(2)
"affiliates" does not include National Football League teams.
EFFECTIVE
DATE. The amendments to this
section are effective for sales and purchases made after June 30, 2016, and
before March 1, 2018.
Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read:
Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible personal property or services at, and admission charges for fund-raising events sponsored by, a nonprofit organization are exempt if:
(1) all gross receipts are recorded as such, in accordance with generally accepted accounting practices, on the books of the nonprofit organization; and
(2) the entire proceeds, less the necessary expenses for the event, will be used solely and exclusively for charitable, religious, or educational purposes. Exempt sales include the sale of prepared food, candy, and soft drinks at the fund-raising event.
(b) This exemption is limited in the following manner:
(1) it does not apply to admission charges for events involving bingo or other gambling activities or to charges for use of amusement devices involving bingo or other gambling activities;
(2) all gross receipts are taxable if the profits are not used solely and exclusively for charitable, religious, or educational purposes;
(3) it does not apply unless the organization keeps a separate accounting record, including receipts and disbursements from each fund-raising event that documents all deductions from gross receipts with receipts and other records;
(4) it does not apply to any sale made by or in the name of a nonprofit corporation as the active or passive agent of a person that is not a nonprofit corporation;
(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
(6) it does not apply to fund-raising
events conducted on premises leased for more than five ten days
but less than 30 days; and
(7) it does not apply if the risk of the event is not borne by the nonprofit organization and the benefit to the nonprofit organization is less than the total amount of the state and local tax revenues forgone by this exemption.
(c) For purposes of this subdivision, a "nonprofit organization" means any unit of government, corporation, society, association, foundation, or institution organized and operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans' purposes, no part of the net earnings of which inures to the benefit of a private individual.
(d) For purposes of this subdivision, "fund-raising events" means activities of limited duration, not regularly carried out in the normal course of business, that attract patrons for community, social, and entertainment purposes, such as auctions, bake sales, ice cream socials, block parties, carnivals, competitions, concerts, concession stands, craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals, galas, special event workshops, sporting activities such as marathons and tournaments, and similar events. Fund-raising events do
not include the operation of a regular place of business in which services are provided or sales are made during regular hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or other activities carried out in the normal course of business.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 11. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision to read:
Subd. 49. Siding
production facility materials. Building
materials and supplies for constructing a siding production facility that can
produce at least 400,000,000 square feet of siding per year are exempt. The tax must be imposed and collected as if
the rate under section 297A.62, subdivision 1, applied, and then refunded in
the manner provided in section 297A.75.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 12. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision to read:
Subd. 50. Properties destroyed by fire. Building materials and supplies used in, and equipment incorporated into, the construction or replacement of real property that is located in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner provided in section 297A.75.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016, and before July 1,
2018.
Sec. 13. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision to read:
Subd. 51. Former
Duluth Central High School. Materials
and supplies used in and equipment incorporated into a private redevelopment
project on the site of the former Duluth Central High School are exempt,
provided the resulting development is subject to property taxes. The tax must be imposed and collected as if
the rate under section 297A.62, subdivision 1, applied and then refunded in the
manner provided in section 297A.75. The
commissioner must not pay more than $5,000,000 in refunds for purchases exempt
under this section. Refunds must be
processed and issued in the order that complete and accurate applications are
received by the commissioner.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016, and before January
1, 2018.
Sec. 14. Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read:
Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the following exempt items must be imposed and collected as if the sale were taxable and the rate under section 297A.62, subdivision 1, applied. The exempt items include:
(1) building materials for an agricultural processing facility exempt under section 297A.71, subdivision 13;
(2) building materials for mineral production facilities exempt under section 297A.71, subdivision 14;
(3) building materials for correctional facilities under section 297A.71, subdivision 3;
(4) building materials used in a residence for disabled veterans exempt under section 297A.71, subdivision 11;
(5) elevators and building materials exempt under section 297A.71, subdivision 12;
(6) materials and supplies for qualified low-income housing under section 297A.71, subdivision 23;
(7) materials, supplies, and equipment for municipal electric utility facilities under section 297A.71, subdivision 35;
(8) equipment and materials used for the generation, transmission, and distribution of electrical energy and an aerial camera package exempt under section 297A.68, subdivision 37;
(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph (a), clause (10);
(10) materials, supplies, and equipment for construction or improvement of projects and facilities under section 297A.71, subdivision 40;
(11) materials, supplies, and equipment for construction, improvement, or expansion of:
(i) an aerospace defense manufacturing facility exempt under section 297A.71, subdivision 42;
(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45;
(iii) a research and development facility exempt under section 297A.71, subdivision 46; and
(iv) an industrial measurement manufacturing and controls facility exempt under section 297A.71, subdivision 47;
(12) enterprise information technology equipment and computer software for use in a qualified data center exempt under section 297A.68, subdivision 42;
(13) materials, supplies, and equipment for qualifying capital projects under section 297A.71, subdivision 44;
(14) items purchased for use in providing
critical access dental services exempt under section 297A.70, subdivision 7,
paragraph (c); and
(15) items and services purchased under a
business subsidy agreement for use or consumption primarily in greater
Minnesota exempt under section 297A.68, subdivision 44;
(16)
building materials and supplies for constructing a siding facility exempt under
section 297A.71, subdivision 49;
(17) building materials, equipment, and
supplies for constructing or replacing real property exempt under section
297A.71, subdivision 50; and
(18) materials and supplies used in and equipment incorporated into a private redevelopment project exempt under section 297A.71, subdivision 51.
EFFECTIVE
DATE. Clause (16) is
effective for sales and purchases made after June 30, 2016. Clause (17) is effective for sales and
purchases made after June 30, 2016, and before July 1, 2018. Clause (18) is effective for sales and
purchases made after June 30, 2016, and before January 1, 2018.
Sec. 15. Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read:
Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must be paid to the applicant. Only the following persons may apply for the refund:
(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits provided in United States Code, title 38, chapter 21;
(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead property;
(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a joint venture of municipal electric utilities;
(7) for subdivision 1, clauses (8), (11),
(12), and (15), and (16), the owner of the qualifying business; and
(8) for subdivision 1, clauses (9), (10),
and (13), the applicant must be the governmental entity that owns or contracts
for the project or facility; and
(9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or developer of the building or project.
EFFECTIVE
DATE. The change to clause
(7) is effective for sales and purchases made after June 30, 2016. Clause (9) is effective for sales and
purchases made after June 30, 2016, and before July 1, 2018, as it pertains to
Minnesota Statutes, section 297A.71, subdivision 1, clause (17), and for sales
and purchases made after June 30, 2016, and before January 1, 2018, as it
pertains to Minnesota Statutes, section 297A.71, subdivision 1, clause (18).
Sec. 16. Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read:
Subd. 3. Application. (a) The application must include
sufficient information to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15),
to (18), the contractor, subcontractor, or builder must furnish to the
refund applicant a statement including the cost of the exempt items and the
taxes paid on the items unless otherwise specifically provided by this
subdivision. The provisions of sections
289A.40 and 289A.50 apply to refunds under this section.
(b) An applicant may not file more than two applications per calendar year for refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 17. Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:
Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision, "net revenue" means an amount equal to the revenues, including interest and penalties, collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
(b) On or before June 30 of each fiscal year, the commissioner of revenue shall estimate the amount of the net revenue for the current fiscal year.
(c) On or after July 1 of the subsequent fiscal year, the commissioner of management and budget shall transfer the net revenue as estimated in paragraph (b) from the general fund, as follows:
(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to the county state-aid highway fund. Notwithstanding any other law to the contrary, the commissioner of transportation shall allocate the funds transferred under this clause to the counties in the metropolitan area, as defined in section 473.121, subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall receive of such amount the percentage that its population, as defined in section 477A.011, subdivision 3, estimated or established by July 15 of the year prior to the current calendar year, bears to the total population of the counties receiving funds under this clause; and
(2) the remainder to the greater Minnesota transit account.
(d) The revenues deposited under this
subdivision do not include the revenues, including interest and penalties,
generated by the sales tax imposed under section 297A.62, subdivision 1a, which
must be deposited as provided under the Minnesota Constitution, article XI,
section 15.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an additional sales tax of up to one and three-quarter percent on sales transactions which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c). The imposition of this tax shall not be subject to voter referendum under either state law or city charter provisions. When the city council determines that the taxes imposed under this paragraph at a rate of three-quarters of one percent and other sources of revenue produce revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus issuance and discount costs, issued for capital improvements at the Duluth Entertainment and Convention Center, which include a new arena, the rate of tax under this subdivision must be reduced by three-quarters of one percent.
(b) In addition to the tax in paragraph
(a) and notwithstanding Minnesota Statutes, section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may,
by ordinance, impose an additional sales tax of up to one-half of one percent
on sales transactions which are described in Minnesota Statutes 2000, section
297A.01, subdivision 3, clause (c). This
tax expires when the city council determines that the tax imposed under this
paragraph, along with the tax imposed under section 22, paragraph (b), has
produced revenues sufficient to pay the debt service on bonds in a principal
amount of no more than $18,000,000, plus issuance and discount costs, to
finance capital improvements to public facilities to support tourism and
recreational activities in that portion of the city west of 34th 14th
Avenue West and the area south of and including Skyline Parkway.
(c) The city of Duluth may sell and issue
up to $18,000,000 in general obligation bonds under Minnesota Statutes, chapter
475, plus an additional amount to pay for the costs of issuance and any
premiums. The proceeds may be used to
finance capital improvements to public facilities that support tourism and
recreational activities in the portion of the city west of 34th 14th
Avenue West and the area south of and including Skyline Parkway, as
described in paragraph (b). The issuance of the bonds is subject to the provisions of Minnesota Statutes, chapter 475, except no election shall be required unless required by the city charter. The bonds shall not be included in computing net debt. The revenues from the taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph (b), may be pledged to pay principal of and interest on such bonds.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Duluth and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws 2014, chapter 308, article 3, section 22, is amended to read:
Sec. 22. CITY
OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an additional tax of one percent upon the gross receipts from the sale of lodging for periods of less than 30 days in hotels and motels located in the city. The tax shall be collected in the same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one. The imposition of this tax shall not be subject to voter referendum under either state law or city charter provisions.
(b) In addition to the tax in paragraph
(a) and notwithstanding Minnesota Statutes, section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may,
by ordinance, impose an additional sales tax of up to one-half of one percent
on the gross receipts from the sale of lodging for periods of less than 30 days
in hotels and motels located in the city.
This tax expires when the city council first determines that the tax
imposed under this paragraph, along with the tax imposed under section 21,
paragraph (b), has produced revenues sufficient to pay the debt service on
bonds in a principal amount of no more than $18,000,000, plus issuance and
discount costs, to finance capital improvements to public facilities to support
tourism and recreational activities in that portion of the city west of 34th
14th Avenue West and the area south of and including Skyline Parkway.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Duluth and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and Laws 2009, chapter 88, article 4, section 14, is amended to read:
Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a portion of the expenses of constructing and improving facilities as part of an urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses include, but are not limited to, acquiring property and paying relocation expenses related to the development of Riverfront 2000 and related facilities, and securing or paying debt service on bonds or other obligations issued to finance the construction of Riverfront 2000 and related facilities. For purposes of this section, "Riverfront 2000 and related facilities" means a civic-convention center, an arena, a riverfront park, a technology center and related educational facilities, and all publicly owned real or personal property that the governing body of the city determines will be necessary to facilitate the use of these facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.
(b)
Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject
to voter approval at a general election held before December 31, 2018; provided
that the sales tax in the city of North Mankato is also extended at the same
general election, the city may by ordinance also use revenues from taxes
authorized under subdivisions 1 and 2, up to a maximum of $47,000,000, plus associated
bond costs, to pay all or a portion of the expenses of the following capital
projects:
(1) construction and improvements to regional recreational facilities including existing hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal swimming pool including improvements to make the pool compliant with the Americans with Disabilities Act, and indoor regional athletic facilities;
(2) improvements to flood control and the
levee system;
(3) water quality improvement projects in Blue Earth and Nicollet Counties;
(4) expansion of the regional transit
building and related multimodal transit improvements;
(5) regional public safety and
emergency communications improvements and equipment; and
(6) matching funds for improvements to
publicly owned regional facilities including a historic museum, supportive
housing, and a senior center.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Mankato and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366, article 7, section 10, is amended to read:
Subd. 4. Expiration
of taxing authority and expenditure limitation.
The authority granted by subdivisions 1 and 2 to the city to impose
a sales tax and an excise tax shall expire on at the earlier of when
revenues are sufficient to pay off the bonds, including interest and all other
associated bond costs authorized under subdivision 5, or December 31, 2022,
unless the additional uses under subdivision 3, paragraph (b) or (c), are
authorized. If the additional use allowed
in subdivision 3, paragraph (b), is authorized, the taxes expire at the earlier
of when revenues are sufficient to pay off the bonds, including interest and
all other associated bond costs authorized under subdivision 5, or December 31,
2038.
EFFECTIVE
DATE. This section is
effective the day following final enactment without local approval pursuant to
Minnesota Statutes, section 645.023, subdivision 1.
Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
Subd. 5. Bonds. (a) The city of Mankato may issue general obligation bonds of the city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related facilities shall not be included in computing any debt limitations applicable to the city of Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest on the bonds shall not be subject to any levy limitation or be included in computing or applying any levy limitation applicable to the city.
(b) The city of Mankato, subject to voter
approval at the election required under subdivision 3, paragraph (b), may issue
general obligation bonds of the city in an amount not to exceed $47,000,000 for
the projects listed under subdivision 3, paragraph (b), without election under
Minnesota Statutes, chapter 475, on the question of issuance of the bonds or a
tax to pay them. The debt represented by
bonds under this paragraph shall not be included in
computing
any debt limitations applicable to the city of Mankato, and the levy of taxes
required by Minnesota Statutes, section 475.61, to pay principal of and
interest on the bonds, and shall not be subject to any levy limitation or be
included in computing or applying any levy limitation applicable to the city. The city may use tax revenue in excess of one
year's principal interest reserve for intended annual bond payments to pay all
or a portion of the cost of capital improvements authorized in subdivision 3.
EFFECTIVE
DATE. This section is
effective the day following final enactment without local approval pursuant to
Minnesota Statutes, section 645.023, subdivision 1.
Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:
Subd. 6. Reverse referendum; authorization of extension. (a) If the Mankato city council intends to exercise the authority provided by this section, it shall pass a resolution stating the fact before July 1, 1991. The resolution must be published for two successive weeks in the official newspaper of the city or, if there is no official newspaper, in a newspaper of general circulation in the city, together with a notice fixing a date for a public hearing on the matter. The hearing must be held at least two weeks but not more than four weeks after the first publication of the resolution. Following the public hearing, the city may determine to take no further action or adopt a resolution confirming its intention to exercise the authority. That resolution must also be published in the official newspaper of the city or, if there is no official newspaper, in a newspaper of general circulation in the city. If within 30 days after publication of the resolution a petition signed by voters equal in number to ten percent of the votes cast in the city in the last general election requesting a vote on the proposed resolution is filed with the county auditor, the resolution is not effective until it has been submitted to the voters at a general or special election and a majority of votes cast on the question of approving the resolution are in the affirmative. The commissioner of revenue shall prepare a suggested form of question to be presented at the election. The referendum must be held at a special or general election before December 1, 1991. This subdivision applies notwithstanding any city charter provision to the contrary.
(b) If the Mankato city council wishes to
extend the taxes authorized under subdivisions 1 and 2 to fund any of the
projects listed in subdivision 3, paragraph (b), the city must pass a
resolution extending the taxes before July 1, 2016. The tax may not be imposed unless approved by
the voters.
EFFECTIVE
DATE. This section is
effective the day following final enactment without local approval pursuant to
Minnesota Statutes, section 645.023, subdivision 1.
Sec. 24. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws 2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7, article 4, section 4, is amended to read:
Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other contrary provision of law, ordinance, or city charter, the city of Hermantown may, by ordinance, impose an additional sales tax of up to one percent on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within the city. The proceeds of the tax imposed under this section must be used to pay the cost of collection of the tax and to meet the costs, including principal, interest, and premiums of bonds used in the finance of:
(1) extending a sewer interceptor line;
(2) construction of a booster pump station,
reservoirs, and related improvements to the water system; and
(3) construction of a building containing a
police and fire station and an administrative services facility; and
(4) construction and equipping of a regional, multiuse wellness center.
(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a), it may increase the tax to one percent to fund the purposes under paragraph (a) provided it is approved by the voters at a general election held before December 31, 2012.
(c) The tax imposed in paragraph (a) may
only be used to fund projects listed in paragraph (a), clause (4), if approved
by the local voters at the November 8, 2016, general election. Revenue raised from the tax imposed under
this subdivision in every year must first be used to meet obligations in that
year related to the projects in paragraph (a), clauses (1) to (3), with excess
revenues available to fund the projects in paragraph (a), clause (4).
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Hermantown and its
chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 25. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws 2006, chapter 259, article 3, section 4, is amended to read:
Subd. 4. Termination. The tax authorized under this section terminates on March 31, 2026, unless the additional use under subdivision 1, paragraph (a), is approved as required under subdivision 1, paragraph (c). If the additional project is approved as required under subdivision 1, paragraph (c), the tax authorized under this section terminates at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council first determines that sufficient funds have been received from the tax to fund the costs, including bonds and associated bond costs for the uses specified in subdivision 1, paragraph (a). Any funds remaining after completion of the improvements and retirement or redemption of the bonds may be placed in the general fund of the city.
EFFECTIVE
DATE. This section is
effective the day following final enactment without local approval pursuant to
Minnesota Statutes, section 645.023, subdivision 1.
Sec. 26. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws 2008, chapter 366, article 7, section 12, is amended to read:
Subdivision 1. Sales and use tax. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law, ordinance, or city charter, if approved by the city voters at the first municipal general election held after the date of final enactment of this act or at a special election held November 2, 1999, the city of Proctor may impose by ordinance a sales and use tax of up to one-half of one percent for the purposes specified in subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement of the tax authorized under this subdivision.
(b) Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter,
the city of Proctor may impose by ordinance an additional sales and use tax of
up to one-half of one percent as approved by the voters at the November 4,
2014, general election. The revenues
received from the additional tax must be used for the purposes specified in
subdivision 3, paragraph (b).
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Proctor and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3, but only if the local approval requirement under section 10 is also
met.
Sec. 27. Laws 2008, chapter 366, article 7, section 20, is amended to read:
Sec. 20. CITY
OF NORTH MANKATO; TAXES AUTHORIZED.
Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the approval of the voters on November 7, 2006, the city of North Mankato may impose by ordinance a sales and use tax of one-half of one percent for the purposes specified in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement of the taxes authorized under this subdivision.
Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by subdivision 1 must be used to pay all or part of the capital costs of the following projects:
(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange project;
(2) development of regional parks and hiking and biking trails, including construction of indoor regional athletic facilities;
(3) expansion of the North Mankato Taylor Library;
(4) riverfront redevelopment; and
(5) lake improvement projects.
The total amount of revenues from the tax in subdivision 1 that may be used to fund these projects is $6,000,000 plus any associated bond costs.
(b) If the city extends the tax as
authorized under subdivision 2a, the total amount that may be used to fund
these projects is increased by $9,000,000, plus associated bond costs.
Subd. 2a. Authorization to extend the tax. Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 3, the North Mankato city council
may, by resolution, extend the tax authorized under subdivision 1 to cover an
additional $9,000,000 in bonds, plus associated bond costs, to fund the
projects in subdivision 2, paragraph (a), if approved by the voters at a
general election held before December 31, 2018; provided that the sales tax in
the city of Mankato is also extended at the same general election.
Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the voters at the November 7, 2006 referendum authorizing the imposition of the taxes in this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the projects described in subdivision 2, paragraph (a), in an amount that does not exceed $6,000,000. A separate election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
(b) The city of North Mankato, subject
to the referendum in subdivision 2a, allowing for additional revenue to be
spent for the projects in subdivision 2, may issue additional bonds under
Minnesota Statutes, chapter 475, to pay capital and administrative expenses for
those projects in an amount that does not exceed $9,000,000. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
(b) (c) The debt represented by
the bonds is not included in computing any debt limitation applicable to the
city, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation.
Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when the city council determines that the amount of revenues received from the taxes to pay for the projects under subdivision 2, paragraph (a), first equals or exceeds $6,000,000 plus the additional amount needed to pay the costs related to issuance of bonds under subdivision 3, including interest on the bonds, unless the tax is extended as allowed in this section. If the tax is extended as allowed under the referendum under subdivision 2a, the tax expires at the earlier of December 31, 2038, or when revenues from the taxes first equal or exceed $15,000,000 plus the additional amount needed to pay costs related to issuance of bonds under subdivision 3, including interest. Any funds remaining after completion of the projects and retirement or redemption of the bonds shall be placed in a capital facilities and equipment replacement fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so determines by ordinance.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of North Mankato and its
chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 28. CITY
OF EAST GRAND FORKS; TAXES AUTHORIZED.
Subdivision 1. Sales
and use tax authorization. Notwithstanding
Minnesota Statutes, section 297A.99, subdivisions 1 and 2, or 477A.016, or any
other law, ordinance, or city charter, and as approved by the voters at a
special election on March 7, 2016, the city of East Grand Forks may impose, by
ordinance, a sales and use tax of up to one percent for the purposes specified
in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section
297A.99, govern the imposition, administration, collection, and enforcement of
the tax authorized under this subdivision.
Subd. 2. Use
of sales and use tax revenues. The
revenues derived from the tax authorized under subdivision 1 must be used by
the city of East Grand Forks to pay the costs of collecting and administering
the tax and to finance the capital and administrative costs of improvement to
the city public swimming pool. Authorized
expenses include, but are not limited to, paying construction expenses related
to the renovation and the development of these facilities and improvements, and
securing and paying debt service on bonds issued under subdivision 3 or other obligations
issued to finance improvement of the public swimming pool in the city of East
Grand Forks
Subd. 3. Bonding
authority. (a) The city of
East Grand Forks may issue bonds under Minnesota Statutes, chapter 475, to
finance all or a portion of the costs of the facilities authorized in
subdivision 2. The aggregate principal
amount of bonds issued under this subdivision may not exceed $2,820,000, plus
an amount to be applied to the payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the city of East Grand Forks, including the tax authorized
under subdivision 1. The issuance of
bonds under this subdivision is not subject to Minnesota Statutes, sections
275.60 and 275.61.
(b) The bonds are not included in
computing any debt limitation applicable to the city of East Grand Forks, and
any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
Subd. 4. Termination
of taxes. The tax imposed
under subdivision 1 expires at the later of:
(1) five years after the tax is first imposed; or (2) when the city
council determines that $2,820,000 has been received from the tax to pay for
the cost of the projects authorized under subdivision 2, plus an amount
sufficient to pay the costs related to issuance of the bonds authorized under
subdivision 3, including interest on the bonds.
Any funds remaining after payment of all such costs and retirement or
redemption of the bonds shall be placed in the general fund of the city. The tax imposed under subdivision 1 may
expire at an earlier time if the city so determines by ordinance.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of East
Grand Forks with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 29. CITY
OF MARSHALL; VALIDATION OF PRIOR ACT.
(a) Notwithstanding the time limits in
Minnesota Statutes, section 645.021, the city of Marshall may approve Laws
2011, First Special Session chapter 7, article 4, section 14, and file its
approval with the secretary of state by June 15, 2013. If approved as authorized under this
paragraph, actions undertaken by the city as approved by the voters on November
6, 2012, and otherwise in accordance with Laws 2011, First Special Session
chapter 7, article 4, section 14, are validated.
(b) Notwithstanding the time limit on
the imposition of tax under Laws 2011, First Special Session chapter 7, article
4, section 14, and subject to local approval under paragraph (a), the city of
Marshall may impose the tax on or before July 1, 2013.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. CERTAIN
REIMBURSEMENT AUTHORIZED; CONSIDERED OPERATING OR CAPITAL EXPENSES.
Subdivision 1. Reimbursement
authorized. (a) An amount
equivalent to the taxes paid under Minnesota Statutes, chapter 297A, and any
local taxes administered by the Department of Revenue, on purchases of tangible
personal property, nonresidential parking services, and lodging, as these terms
are defined in Minnesota Statutes, chapter 297A, used and consumed in
connection with Super Bowl LII or related events sponsored by the National
Football League or its affiliates, will be reimbursed by the Minnesota Sports
Facilities Authority up to $1,600,000, if made after June 30, 2016, and before
March 1, 2018. Only purchases made by
the Minnesota Super Bowl Host Committee, the National Football League or its
affiliates, or their employees or independent contractors, qualify to be
reimbursed under this section.
(b) For purposes of this subdivision:
(1) "employee or independent
contractor" means only those employees or independent contractors that
make qualifying purchases that are reimbursed by the Minnesota Super Bowl Host
Committee or the National Football League or its affiliates; and
(2) "related events sponsored by
the National Football League or its affiliates" includes but is not
limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL
Honors, and NFL House.
Subd. 2. Operating
reserve and capital reserve fund. Notwithstanding
the requirements of Minnesota Statutes, section 473J.13, subdivisions 2 and 4,
up to $1,600,000 of the balance in the operating reserve or capital reserve
fund may be used for the purposes of paying reimbursements authorized under
subdivision 1.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016, and before March 1,
2018.
Sec. 31. SEVERABILITY.
If any provision of sections 2 to 5 or
the application thereof is held invalid, such invalidity shall not affect the
provisions or applications of the sections that can be given effect without the
invalid provisions or applications.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 32. EFFECTIVE
DATE.
(a) The provisions of sections 2 to 5
are effective at the earlier of:
(1) a decision by the United States
Supreme Court modifying its decision in Quill Corp. v. North Dakota, 504 U.S. 298
(1992) so that a state may require retailers without a physical presence in the
state to collect and remit sales tax; or
(2) July 1, 2019.
(b) Notwithstanding paragraph (a) or
the provisions of sections 2 to 5, if a federal law is enacted authorizing a
state to impose a requirement to collect and remit sales tax on retailers
without a physical presence in the state, the commissioner must enforce the
provisions of this section and sections 2 to 5 to the extent allowed under
federal law.
(c) The commissioner of revenue shall
notify the revisor of statutes when either of the provisions in paragraph (a)
or (b) apply.
ARTICLE 5
SPECIAL TAXES
Section 1. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to read:
Subd. 12. Compressed
natural gas or CNG. "Compressed
natural gas" or "CNG" means natural gas, primarily methane,
condensed under high pressure and stored in specially designed storage tanks at
between 2,000 and 3,600 pounds per square inch.
For purposes of this chapter, the energy content of CNG is considered to
be 1,000 900 BTUs per cubic foot.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 2. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision to read:
Subd. 13a. Dealer
of gasoline used as a substitute for aviation gasoline. "Dealer of gasoline used as a
substitute for aviation gasoline" means any person who sells gasoline on
the premises of an airport as defined under section 360.013, subdivision 39, to
be dispensed directly into the fuel tank of an aircraft.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 3. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:
Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or denatured ethanol purchased by:
(1) a transit system or transit provider receiving financial assistance or reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384;
(2) providers of transportation to recipients of medical assistance home and community-based services waivers enrolled in day programs, including adult day care, family adult day care, day treatment and habilitation, prevocational services, and structured day services;
(3) an ambulance service licensed under chapter 144E;
(4) providers of medical or dental
services by a federally qualified health center, as defined under title 19 of
the Social Security Act, as amended by Section 4161 of the Omnibus Budget
Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile
medical unit; or
(5) a licensed distributor to be delivered
to a terminal for use in blending; or
(6) a dealer of gasoline used as a substitute for aviation gasoline.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 4. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:
Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:
(a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
(c)
Compressed natural gas is taxed at the rate of $2.174 $1.974 per
thousand cubic feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline
equivalent," as defined by the National Conference on Weights and
Measures, is 5.66 pounds of natural gas or 126.67 cubic feet.
(d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed by the commissioner.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 5. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:
Subdivision 1. Gasoline tax imposed. Subject to any refunds or credits there is imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received, sold, stored, or withdrawn from storage in this state and on all gasoline used as a substitute for aviation gasoline. Aviation gasoline is defined in section 296A.01, subdivision 7.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 6. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:
Subd. 3. Exception to tax for aviation use. The provisions of subdivisions 1 and 2 do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel purchased and placed in the fuel tanks of an aircraft outside the state, even though the gasoline may be consumed within this state.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 7. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:
Subd. 5. Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are expressly declared not to be a tax upon consumption of gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel by an aircraft.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 8. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:
Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline, or jet fuel purchased by an ambulance service licensed under chapter 144E.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 9. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:
Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except as provided in paragraph (e), on or before the 23rd day of each month, every person who is required to pay a gasoline tax shall file with the commissioner a report, in the form and manner prescribed by the commissioner, showing the number of gallons of petroleum products received by the reporter during the preceding calendar month, and other information the commissioner may require. A written report is deemed to have been filed as required in this subdivision if postmarked on or before the 23rd day of the month in which the tax is payable.
(b) The number of gallons of gasoline must be reported in United States standard liquid gallons, 231 cubic inches, except that the commissioner may upon written application and for cause shown permit the distributor to report the number of gallons of gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline covered in the application and allowed by the commissioner must continue to be reported by the distributor on the adjusted basis for a period of one year from the date of the granting of the application. The number of gallons of petroleum products other than gasoline must be reported as originally invoiced. Each report must show separately the number of gallons of aviation gasoline received by the reporter during each calendar month and the number of gallons of gasoline sold to a dealer of gasoline used as a substitute for aviation fuel during each calendar month.
(c) Each report must also include the amount of gasoline tax on gasoline received by the reporter during the preceding month. In computing the tax a deduction of 2.5 percent of the quantity of gasoline received by a distributor shall be made for evaporation and loss. At the time of reporting, the reporter shall submit satisfactory evidence that one-third of the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
(d) Each report shall contain a confession of judgment for the amount of the tax shown due to the extent not timely paid.
(e) Under certain circumstances and with the approval of the commissioner, taxpayers may be allowed to file reports annually.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 10. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:
Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any person who buys gasoline from a dealer of gasoline used as a substitute for aviation gasoline, or buys aviation gasoline or special fuel for aircraft use and who has paid the excise taxes due directly or indirectly through the amount of the tax being included in the price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month following that in which such gasoline or special fuel was so used or sold, report the fact of the use or sale to the commissioner in the form and manner prescribed by the commissioner.
(b) Any person who buys gasoline other than aviation gasoline and who has paid the motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any person to be used for the purpose of producing or generating power for propelling aircraft, or who receives, stores, or withdraws from storage gasoline to be used for that purpose, shall, on or before the 23rd day of the month following that in which such gasoline was so sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal from storage to the commissioner in the form and manner prescribed by the commissioner.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 11. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:
Subdivision 1. Aviation refund requirements. Any person claiming to be entitled to any refund or credit provided for in subdivision 3 shall receive the refund or credit upon filing with the commissioner a claim in such form and manner prescribed by the commissioner. The claim shall set forth, among other things, the total number of gallons of gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use upon which the claimant has directly or indirectly paid the excise tax provided for in this chapter, during the calendar
year, which has been received, stored, or withdrawn from storage by the claimant in this state and not sold or otherwise disposed of to others. All claims for refunds under this subdivision shall be made on or before April 30 following the end of the calendar year for which the refund is claimed.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 12. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:
Subd. 2. Claim for refund; aviation tax. (a) Any person who buys gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use and who has paid the excise taxes directly or indirectly through the amount of the tax being included in the price, or otherwise, who does not use it in motor vehicles or receive, sell, store, or withdraw it from storage for the purpose of producing or generating power for propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing with the commissioner a claim in the form and manner prescribed by the commissioner. The claim shall state the total amount of the gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use purchased and used by the applicant, and shall state when and for what purpose it was used. On being satisfied that the claimant is entitled to payment, the commissioner shall approve the claim and transmit it to the commissioner of management and budget. The postmark on the envelope in which a written claim is mailed determines the date of filing.
(b) If a claim contains an error in preparation in computation or preparation, the commissioner is authorized to adjust the claim in accordance with the evidence shown on the claim or other information available to the commissioner.
(c) An applicant who files a claim that is false or fraudulent, is subject to the penalties provided in section 296A.23 for knowingly and willfully making a false claim.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 13. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:
Subd. 3. Refund on graduated basis. Any person who has directly or indirectly paid the excise tax on gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use provided for by this chapter and either paid the airflight property tax under section 270.072 or is an aerial applicator with a category B, general aerial license, under section 18B.33, shall, as to all such gasoline used as a substitute for aviation gasoline, aviation gasoline, and special fuel received, stored, or withdrawn from storage by the person in this state in any calendar year and not sold or otherwise disposed of to others, or intended for sale or other disposition to others, on which such tax has been so paid, be entitled to the following graduated reductions in such tax for that calendar year, to be obtained by means of the following refunds:
(1) on each gallon of such gasoline
used as a substitute for aviation gasoline, aviation gasoline, or
special fuel up to 50,000 gallons, all but five cents per gallon;
(2) on each gallon of such gasoline
used as a substitute for aviation gasoline, aviation gasoline, or
special fuel above 50,000 gallons and not more than 150,000 gallons, all but
two cents per gallon;
(3) on each gallon of such gasoline
used as a substitute for aviation gasoline, aviation gasoline, or
special fuel above 150,000 gallons and not more than 200,000 gallons, all but
one cent per gallon;
(4) on each gallon of such gasoline
used as a substitute for aviation gasoline, aviation gasoline, or
special fuel above 200,000, all but one-half cent per gallon.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 14. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:
Subdivision 1. Intent; gasoline use. All gasoline received in this state and all gasoline produced in or brought into this state except aviation gasoline, gasoline sold to a dealer of gasoline used as a substitute for aviation gasoline, and marine gasoline shall be determined to be intended for use in motor vehicles in this state.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 15. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:
Subd. 8. Airports. The revenues derived from the excise taxes on gasoline used as a substitute for aviation gasoline, aviation gasoline, and on special fuel received, sold, stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into the state treasury and credited to the state airports fund. There is hereby appropriated such sums as are needed to carry out the provisions of this subdivision.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 16. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:
Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk purchasers, dealers of gasoline used as a substitute for aviation gasoline, and all users of special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use of petroleum products and special fuel, including copies of all sales tickets issued, in a form and manner approved by the commissioner, and shall retain all such records for 3-1/2 years.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 17. Minnesota Statutes 2014, section 297E.02, subdivision 1, is amended to read:
Subdivision 1. Imposition. (a) A tax is imposed on all lawful gambling other than (1) paper or electronic pull‑tab deals or games; (2) tipboard deals or games; (3) electronic linked bingo; and (4) items listed in section 297E.01, subdivision 8, clauses (4) and (5), at the rate of 8.5 percent on the gross receipts as defined in section 297E.01, subdivision 8, less prizes actually paid.
(b) A tax is imposed on the conduct of
paper pull-tabs, at the rate of nine percent of the gross receipts, less prizes
actually paid, of the pull-tab deal. The
tax imposed under this paragraph applies only to paper pull-tabs sold at a
bingo hall as defined in section 349.12, subdivision 4a.
(c) The tax imposed by this subdivision is in lieu of the tax imposed by section 297A.62 and all local taxes and license fees except a fee authorized under section 349.16, subdivision 8, or a tax authorized under subdivision 5.
(d) The tax imposed under this subdivision is payable by the organization or party conducting, directly or indirectly, the gambling.
EFFECTIVE
DATE. This section is
effective for gross receipts received on or after July 1, 2016.
Sec. 18. Minnesota Statutes 2015 Supplement, section 297E.02, subdivision 6, is amended to read:
Subd. 6. Combined net receipts tax. (a) In addition to the taxes imposed under subdivision 1, a tax is imposed on the combined net receipts of the organization. As used in this section, "combined net receipts" is the sum of the organization's gross receipts from lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles, and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, for the fiscal year. The combined net receipts of an organization are subject to a tax computed according to the following schedule:
(b) On or before April 1, 2016, the commissioner shall estimate the total amount of revenue, including interest and penalties, that will be collected for fiscal year 2016 from taxes imposed under this chapter. If the amount estimated by the commissioner equals or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the rates under this section apply, the combined net receipts of an organization are subject to a tax computed according to the following schedule:
|
|
If the combined net receipts for the fiscal year are: |
The tax is: |
|
|
|
|
Not over $87,500 |
|
8.5 percent |
|
|
|
Over $87,500, but not over $122,500 |
$7,438 plus 17 percent of the amount over $87,500, but not over $122,500 |
||
|
|
Over $122,500, but not over $157,500 |
$13,388 plus 25.5 percent of the amount over $122,500, but not over $157,500 |
||
|
|
Over $157,500 |
|
$22,313 plus 34 percent of the amount over $157,500 |
|
(c) Gross receipts derived from sports-themed tipboards are exempt from taxation under this section. For purposes of this paragraph, a sports-themed tipboard means a sports-themed tipboard as defined in section 349.12, subdivision 34, under which the winning numbers are determined by the numerical outcome of a professional sporting event.
(d) Paper pull-tabs sold at a bingo
hall as defined in section 349.12, subdivision 4a, are exempt from taxation under
this subdivision.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 19. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision to read:
Subd. 6a. Bulk
nicotine. "Bulk
nicotine" means any vapor product that contains a solution having a
concentration of 50 milligrams of nicotine per milliliter or greater.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 20. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision to read:
Subd. 6b. Consumable
material. "Consumable
material" means any vapor product that contains nicotine in a solution
having a concentration of less than 50 milligrams of nicotine per milliliter.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 21. Minnesota Statutes 2014, section 297F.01, subdivision 19, is amended to read:
Subd. 19. Tobacco products. (a) "Tobacco products" means any product containing, made, or derived from tobacco that is intended for human consumption, whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component, part, or accessory of a tobacco product, including, but not limited to, cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, vapor products, and other kinds and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco products excludes any tobacco product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product, as a tobacco dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose.
(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco products includes a premium cigar, as defined in subdivision 13a.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 22. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision to read:
Subd. 24. Vapor
products. "Vapor
products" means any noncombustible product that employs a heating element,
power source, electronic circuit, or other electronic, chemical, or mechanical
means, regardless of shape or size, that can be used to produce vapor from
nicotine in a solution or other form. Vapor
products includes any electronic cigarette, electronic cigar, electronic
cigarillo, electronic pipe, or similar product or device and any vapor
cartridge or other container of bulk nicotine or consumable material in a
solution or other form that is intended to be used with or in an electronic
cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar
product or device.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 23. Minnesota Statutes 2014, section 297F.05, subdivision 1, is amended to read:
Subdivision 1. Rates;
cigarettes. A tax is imposed upon
the sale of cigarettes in this state, upon having cigarettes in possession in
this state with intent to sell, upon any person engaged in business as a
distributor, and upon the use or storage by consumers, at the rate of 141.5
150 mills, or 14.15 15 cents, on each cigarette.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 24. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read:
Subd. 3. Rates;
tobacco products. (a) Except as
provided in subdivision subdivisions 3a and 3b, a tax is
imposed upon all tobacco products in this state and upon any person engaged in
business as a distributor, at the rate of 95 percent of the wholesale sales
price of the tobacco products. The tax
is imposed at the time the distributor:
(1) brings, or causes to be brought, into this state from outside the state tobacco products for sale;
(2) makes, manufactures, or fabricates tobacco products in this state for sale in this state; or
(3) ships or transports tobacco products to retailers in this state, to be sold by those retailers.
(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a pack of 20 cigarettes weighing not more than three pounds per thousand, as established under subdivision 1, is imposed on each container of moist snuff.
For purposes of this subdivision, a "container" means the smallest consumer-size can, package, or other container that is marketed or packaged by the manufacturer, distributor, or retailer for separate sale to a retail purchaser. When more than one container is packaged together, each container is subject to tax.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 25. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision to read:
Subd. 3b. Rates;
vapor products. (a) A tax is
imposed upon all vapor products in this state and upon any person engaged in
business as a tobacco product distributor.
The tax imposed under this subdivision is imposed at the time the
tobacco products distributor:
(1) brings, or causes to be brought,
into this state vapor products for sale;
(2) makes, manufactures, or fabricates
vapor products in this state, not otherwise taxed under this subdivision, for
sale in this state; or
(3) ships or transports vapor products
to retailers in this state to be sold by those retailers.
(b) For vapor products that contain
bulk nicotine, the rate of tax is 300 percent of the wholesale sales price of
the vapor product.
(c) For vapor products that contain
consumable material, the rate of tax is 45 percent of the wholesale sales price
of the vapor product.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 26. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision to read:
Subd. 4b. Use
tax; vapor products. A tax is
imposed upon the use or storage by consumers of all vapor products in this
state, and upon such consumers, at the rate of 300 percent of the wholesale
sales price of a vapor product containing bulk nicotine, and 45 percent of the
wholesale sales price of a vapor product containing consumable material.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 27. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read:
Subd. 2. Rate. (a) Commercial generators that generate nonmixed municipal solid waste shall pay a solid waste management tax of 60 cents per noncompacted cubic yard of periodic waste collection capacity purchased by the generator, based on the size of the container for the nonmixed municipal solid waste, the actual volume, or the weight-to-volume conversion schedule in paragraph (c). However, the tax must be calculated by the waste management service provider using the same method for calculating the waste management service fee so that both are calculated according to container capacity, actual volume, or weight.
(b) Notwithstanding section 297H.02, a residential generator that generates nonmixed municipal solid waste shall pay a solid waste management tax in the same manner as provided in paragraph (a).
(c) The weight-to-volume conversion schedule for:
(1) construction debris as defined in
section 115A.03, subdivision 7, is one ton equals 3.33 cubic yards, or $2
per ton equal to 60 cents per cubic yard. The commissioner of revenue, after
consultation with the commissioner of the Pollution Control Agency, shall
determine and may publish by notice a conversion schedule for construction
debris;
(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 60 cents per cubic yard. The commissioner of revenue after consultation with the commissioner of the Pollution Control Agency, shall determine, and may publish by notice, a conversion schedule for various industrial wastes; and
(3) infectious waste as defined in section 116.76, subdivision 12, and pathological waste as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 60 cents per 150 pounds.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 28. Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision to read:
Subd. 4a. Bingo
hall. (a) "Bingo
hall" means the premises on which an organization licensed under this
chapter regularly conducts bingo if:
(1) more than 50 percent of the
organization's gross receipts from lawful gambling in the prior calendar year
were attributable to the conduct of bingo or the organization had no receipts
from lawful gambling in that year; or
(2) no other organization conducts
lawful gambling on the premises.
(b) For purposes of this subdivision,
"bingo" does not include a linked bingo game as defined in this
section.
EFFECTIVE
DATE. This section is effective
July 1, 2016.
Sec. 29. REPEALER.
(a) Minnesota Statutes 2014, section
297F.05, subdivision 1a, is repealed.
(b) Minnesota Rules, part 8125.1300,
subpart 3, is repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 6
MINERALS
Section 1. Minnesota Statutes 2014, section 298.24, is amended by adding a subdivision to read:
Subd. 5. TEDF;
deposits redirected. (a) For
concentrates produced by a plant subject to a reimbursement agreement dated
September 9, 2008, by and among Itasca County, Essar Global Limited, and
Minnesota Steel Industries LLC, the provisions of sections 298.227 and 298.28,
subdivision 9a, do not apply to the plant's production.
(b) All amounts not deposited in the
taconite economic development fund as a result of paragraph (a) must be
deposited in the Douglas J. Johnson economic protection trust fund created
under section 298.292.
(c)
The provisions of this subdivision expire upon certification by the
commissioner of employment and economic development that all requirements of
the reimbursement agreement, as specified in paragraph (a), are satisfied.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:
Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account to be distributed as provided in section 298.282.
(b) An amount must be allocated to towns or cities that is annually certified by the county auditor of a county containing a taconite tax relief area as defined in section 273.134, paragraph (b), within which there is (1) an organized township if, as of January 2, 1982, more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city consists of iron ore.
(c) The amount allocated under paragraph (b) will be the portion of a township's or city's certified levy equal to the proportion of (1) the difference between 50 percent of January 2, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980, assessed value in the case of a city and its current assessed value to (2) the sum of its current assessed value plus the difference determined in (1), provided that the amount distributed shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a city. For purposes of this limitation, population will be determined according to the 1980 decennial census conducted by the United States Bureau of the Census. If the current assessed value of the township exceeds 50 percent of the township's January 2, 1982, assessed value, or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed value," when used in reference to years other than 1980 or 1982, means the appropriate net tax capacities multiplied by 10.2.
(d) In addition to other distributions under
this subdivision, three 3.25 cents per taxable ton for
distributions in 2009 2017 and subsequent years must be allocated
for distribution to (1) towns that are entirely located within the
taconite tax relief area defined in section 273.134, paragraph (b); and (2)
the following unorganized territories in St. Louis County and Itasca
County: 56-17; 58-22; 59-16; 59-21; 60-18;
and 60-19. For distribution in
2010 through 2014 and for distribution distributions in 2018 and
subsequent years, the three-cent 3.25-cent amount must be
annually increased in the same proportion as the increase in the implicit price
deflator as provided in section 298.24, subdivision 1. The amount available under this paragraph will
must be distributed to eligible towns and eligible unorganized
territories on a per capita basis, provided that no town or unorganized
territory may receive more than $50,000 in any year under this paragraph. Any amount of the distribution that exceeds
the $50,000 limitation for a town or unorganized territory under this
paragraph must be redistributed on a per capita basis among the other eligible
towns and eligible unorganized territories, to whose distributions do
not exceed $50,000. The amount
available to unorganized territories in St. Louis County and Itasca County
may be held by the county and combined for public infrastructure projects for
the specified unorganized territories.
EFFECTIVE
DATE. This section is
effective for distributions beginning in 2017 and thereafter.
Sec. 3. Minnesota Statutes 2014, section 298.28, subdivision 5, is amended to read:
Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties to be distributed, based upon certification by the commissioner of revenue, under paragraphs (b) to (d).
(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite is mined or quarried or in which the concentrate is produced, less any amount which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 2 is the basis for the distribution.
(c) If 1.0 cent per taxable ton of
the tax distributed to the counties pursuant to paragraph (b) shall be paid to
a county that received a distribution under this section in 2000 because there
was located in the county an electric power plant owned by and providing
the primary source of power for a taxpayer mining and concentrating taconite is
located in a different county other than the county in which the
mining and the concentrating processes are conducted, one cent per taxable ton
of the tax distributed to the counties pursuant to paragraph (b) and imposed on
and collected from such taxpayer shall be paid to the county in which the power
plant is located.
(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents per taxable ton for distributions beginning in 2024, shall be paid to the county from which the taconite was mined, quarried or concentrated to be deposited in the county road and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those processes are carried on in more than one county, the commissioner shall follow the apportionment formula prescribed in subdivision 2.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
Subd. 7a. Iron Range school consolidation and cooperatively operated school account. The following amounts must be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in the Iron Range school consolidation and cooperatively operated school account that is hereby created:
(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed under section 298.24;
(2) the amount as determined under section 298.17, paragraph (b), clause (3);
(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J. Johnson economic protection trust fund;
(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the sum of the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
(4) any other amount as provided by law.
Expenditures from this account shall be made only to provide disbursements to assist school districts with the payment of bonds that were issued for qualified school projects, or for any other school disbursement as approved by the Iron Range Resources and Rehabilitation Board. For purposes of this section, "qualified school projects" means school projects within the taconite assistance area as defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner of education pursuant to section 123B.71.
Beginning in fiscal year 2019, the disbursement to school districts for payments for bonds issued under section 123A.482, subdivision 9, must be increased each year to offset any reduction in debt service equalization aid that the school district qualifies for in that year, under section 123B.53, subdivision 6, compared with the amount the school district qualified for in fiscal year 2018.
No expenditure under this section shall be made unless approved by seven members of the Iron Range Resources and Rehabilitation Board.
EFFECTIVE
DATE. This section is
effective for distributions beginning in 2017 and thereafter.
ARTICLE 7
LOCAL DEVELOPMENT
Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.
(b) "Activities" means acquisition of property, clearing of land, site preparation, soils correction, removal of hazardous waste or pollution, installation of utilities, construction of public or private improvements, and other similar activities, but only to the extent that tax increment revenues may be spent for such purposes under other law.
(c) "Third party" means an entity other than (1) the person receiving the benefit of assistance financed with tax increments, or (2) the municipality or the development authority or other person substantially under the control of the municipality.
(d) "Revenues derived from tax
increments paid by properties in the district" means only tax increment as
defined in section 469.174, subdivision 25, clause (1), and does not include
tax increment as defined in section 469.174, subdivision 25, clauses (2),
(3), and (4) to (5).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read:
Subd. 2. Expenditures
outside district. (a) For each tax
increment financing district, an amount equal to at least 75 percent of the
total revenue derived from tax increments paid by properties in the district
must be expended on activities in the district or to pay bonds, to the extent
that the proceeds of the bonds were used to finance activities in the district
or to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other than redevelopment
districts for which the request for certification was made after June 30, 1995,
the in-district percentage for purposes of the preceding sentence is 80 percent. Not more than 25 percent of the total revenue
derived from tax increments paid by properties in the district may be expended,
through a development fund or otherwise, on activities outside of the district
but within the defined geographic area of the project except to pay, or secure
payment of, debt service on credit enhanced bonds. For districts, other than redevelopment
districts for which the request for certification was made after June 30, 1995,
the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue revenues derived
from tax increments for paid by properties in the district that
are expended on costs under section 469.176, subdivision 4h, paragraph (b), may
be deducted first before calculating the percentages that must be expended
within and without the district.
(b) In the case of a housing district, a housing project, as defined in section 469.174, subdivision 11, is an activity in the district.
(c) All administrative expenses are for activities outside of the district, except that if the only expenses for activities outside of the district under this subdivision are for the purposes described in paragraph (d), administrative expenses will be considered as expenditures for activities in the district.
(d) The authority may elect, in the tax increment financing plan for the district, to increase by up to ten percentage points the permitted amount of expenditures for activities located outside the geographic area of the district under paragraph (a). As permitted by section 469.176, subdivision 4k, the expenditures, including the permitted expenditures under paragraph (a), need not be made within the geographic area of the project. Expenditures that meet the requirements of this paragraph are legally permitted expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase under this paragraph, the expenditures must:
(1) be used exclusively to assist housing that meets the requirement for a qualified low-income building, as that term is used in section 42 of the Internal Revenue Code; and
(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal Revenue Code; and
(3) be used to:
(i) acquire and prepare the site of the housing;
(ii) acquire, construct, or rehabilitate the housing; or
(iii) make public improvements directly related to the housing; or
(4) be used to develop housing:
(i) if the market value of the housing does not exceed the lesser of:
(A) 150 percent of the average market value of single-family homes in that municipality; or
(B) $200,000 for municipalities located in the metropolitan area, as defined in section 473.121, or $125,000 for all other municipalities; and
(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition of existing structures, site preparation, and pollution abatement on one or more parcels, if the parcel contains a residence containing one to four family dwelling units that has been vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 7, but without regard to whether the residence is the owner's principal residence, and only after the redemption period has expired.
(e) For a district created within a biotechnology and health sciences industry zone as defined in Minnesota Statutes 2012, section 469.330, subdivision 6, or for an existing district located within such a zone, tax increment derived from such a district may be expended outside of the district but within the zone only for expenditures required for the construction of public infrastructure necessary to support the activities of the zone, land acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are considered as expenditures for activities within the district. The authority provided by this paragraph expires for expenditures made after the later of (1) December 31, 2015, or (2) the end of the five-year period beginning on the date the district was certified, provided that date was before January 1, 2016.
(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. Increments may continue to be expended under this authority after that date, if they are used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if December 31, 2016, is considered to be the last date of the five-year period after certification under that provision.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read:
Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by properties in the district are considered to have been expended on an activity within the district under subdivision 2 only if one of the following occurs:
(1) before or within five years after certification of the district, the revenues are actually paid to a third party with respect to the activity;
(2) bonds, the proceeds of which must be used to finance the activity, are issued and sold to a third party before or within five years after certification, the revenues are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable temporary period within the meaning of the use of that term under section 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund;
(3) binding contracts with a third party are entered into for performance of the activity before or within five years after certification of the district and the revenues are spent under the contractual obligation;
(4) costs with respect to the activity are paid before or within five years after certification of the district and the revenues are spent to reimburse a party for payment of the costs, including interest on unreimbursed costs; or
(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision 2, paragraph (e).
(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the original refunded bonds meet the requirements of paragraph (a), clause (2).
(c) For a redevelopment district or a renewal and renovation district certified after June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are extended to ten years after certification of the district. For a redevelopment district certified after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph (a) are extended to eight years after certification of the district. This extension is provided primarily to accommodate delays in development activities due to unanticipated economic circumstances.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read:
Subd. 7. Interfund loans. (a) The authority or municipality may advance or loan money to finance expenditures under section 469.176, subdivision 4, from its general fund or any other fund under which it has legal authority to do so.
(b) Not later than 60 days after money is
transferred, advanced, or spent, whichever is earliest, the loan or advance
must be authorized, by resolution of the governing body or of the
authority, whichever has jurisdiction over the fund from which the advance or
loan is authorized, before money is transferred, advanced, or spent,
whichever is earliest.
(c)
The resolution may generally grant to the municipality or the authority
the power to make interfund loans under one or more tax increment financing
plans or for one or more districts. The
resolution may be adopted before or after the adoption of the tax increment
financing plan or the creation of the tax increment financing district from
which the advance or loan is to be repaid.
(d) The terms and conditions for
repayment of the loan must be provided in writing and. The written terms and conditions may be in
any form, but must include, at a minimum, the principal amount, the
interest rate, and maximum term. Written
terms may be modified or amended in writing by the municipality or the
authority before the latest decertification of any tax increment financing
district from which the interfund loan is to be repaid. The maximum rate of interest permitted to be
charged is limited to the greater of the rates specified under section 270C.40
or 549.09 as of the date the loan or advance is authorized, unless the written
agreement states that the maximum interest rate will fluctuate as the interest
rates specified under section 270C.40 or 549.09 are from time to time adjusted. Loans or advances may be structured as
draw-down or line-of-credit obligations of the lending fund.
(e) The authority shall report in the
annual report submitted pursuant to section 469.175, subdivision 6:
(1) the amount of any interfund loan or
advance made in a calendar year; and
(2) any amendment of an interfund loan or
advance made in a calendar year.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to all districts,
regardless of when the request for certification was made.
Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment financing plan for a district, the rules under this section apply to a redevelopment district, renewal and renovation district, economic development district, soil condition district, or a soil deficiency district established by the city or a development authority of the city in the project area.
(b) Prior to or upon the adoption of the first tax increment plan subject to the special rules under this subdivision, the city must find by resolution that parcels consisting of at least 80 percent of the acreage of the project area (excluding street and railroad right of way) are characterized by one or more of the following conditions:
(1) peat or other soils with geotechnical deficiencies that impair development of residential or commercial buildings or infrastructure;
(2) soils or terrain that requires substantial filling in order to permit the development of commercial or residential buildings or infrastructure;
(3) landfills, dumps, or similar deposits of municipal or private waste;
(4) quarries or similar resource extraction sites;
(5) floodway; and
(6) substandard buildings within the meaning of Minnesota Statutes, section 469.174, subdivision 10.
(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be characterized by the relevant condition if at least 70 percent of the area of the parcel contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to be characterized by substandard buildings if the buildings occupy at least 30 percent of the area of the parcel.
(d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is extended to nine years for any district. The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is extended to ten years for any district, and section 469.1763, subdivision 4, does not apply to any district.
(e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax increments paid by properties in any district (measured over the life of the district) may be expended on activities outside the district but within the project area.
(f) For a soil deficiency district:
(1) increments may be collected through 20 years after the receipt by the authority of the first increment from the district; and
(2) except as otherwise provided in this subdivision, increments may be used only to:
(i) acquire parcels on which the improvements described in item (ii) will occur;
(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional cost of installing public improvements directly caused by the deficiencies; and
(iii) pay for the administrative expenses of the authority allocable to the district.
(g) Increments spent for any infrastructure costs, whether inside a district or outside a district but within the project area, are deemed to satisfy the requirements of paragraph (f) and Minnesota Statutes, section 469.176, subdivisions 4b, 4c, and 4j.
(h) Increments from any district may not be used to pay the costs of landfill closure or public infrastructure located on the following parcels within the plat known as Burnsville Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
(i) The authority to approve tax increment
financing plans to establish tax increment financing districts under this
section expires on December 31, 2018 2020.
EFFECTIVE
DATE. This section is
effective upon approval by the governing body of the city of Burnsville and
compliance with the requirements of Minnesota Statutes, section 645.021.
Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter 382, section 84, is amended to read:
Sec. 17. SEAWAY
PORT AUTHORITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT; SPECIAL RULES.
(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and the governing body of the city of Duluth approves the plan for the tax increment financing district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; 010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010‑2730-00090; 010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160; 010‑2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320; 010-2746-01250; 010-2746-1330; 010‑2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; 010-2746-01490; 010-2746-01500; 010‑2746‑01510; 010-2746-01520; 010-2746-01530; 010-2746-01540; 010-2746-01550; 010-2746-01560; 010‑2746-01570; 010-2746-01580; 010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010‑3300‑04580; 010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota
Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year period from the date of certification of the tax increment financing district, must be considered to be met if the activities are undertaken within five years after the date all qualifying parcels are delisted from the Federal Superfund list.
(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning in the sixth year following certification of the district requirement, will begin in the sixth year following the date all qualifying parcels are delisted from the Federal Superfund list.
(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are satisfied if the action is commenced within four years after the date all qualifying parcels are delisted from the Federal Superfund list and evidence of the action required is submitted to the county auditor by February 1 of the fifth year following the year in which all qualifying parcels are delisted from the Federal Superfund list.
(d) For purposes of this section, "qualifying parcels" means United States Steel parcels listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the USS Site (USEPA OU 02) that are included in the tax increment financing district.
(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175, subdivision 5, the Seaway Port Authority of Duluth shall report the status of all parcels listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted status, and if delisted, the delisting date.
(f) Notwithstanding Minnesota Statutes,
section 469.178, subdivision 7, or any other law to the contrary, the Seaway
Port Authority of Duluth may establish an interfund loan program before
approval of the tax increment financing plan for or the establishment of the
district authorized by this section. The
authority may make loans under this program and the proceeds of the loans may
be used for any permitted use of increments under this law or Minnesota
Statutes, section 469.176, for the district, and may be repaid with increments
from the district established under this section. This subdivision applies to any action
authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Duluth and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivision
3.
Sec. 7. Laws 2014, chapter 308, article 6, section 9, is amended to read:
Sec. 9. CITY
OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have the meanings given them.
(b) "City" means the city of Maple Grove.
(c) "Project area" means all or a portion of the area in the city commencing at a point 130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way line of Hemlock Lane; thence northerly along said easterly right‑of‑way line of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance of 650 feet; thence northerly to a point on the northerly right‑of‑way line of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 degrees West to the south line of
the Northwest Quarter of the Northwest Quarter of Section 24; thence West along said south line to the east right‑of‑way line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence South along the east line of said Outlot A and its southerly extension to the south right-of-way line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east line to the north line of the South Half of the Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way line of Jefferson Highway North; thence southerly along the westerly right-of-way line of Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the westerly right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate 694 to its intersection with the southerly extension of the easterly right-of-way line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning and there terminating, provided that the project area includes the rights-of-way for all present and future highway interchanges abutting the area described in this paragraph, and may include any additional property necessary to cause the property included in the tax increment financing district to consist of complete parcels.
(d) "Soil deficiency district" means a type of tax increment financing district consisting of a portion of the project area in which the city finds by resolution that the following conditions exist:
(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in the district require substantial filling, grading, or other physical preparation for use; and
(2) the estimated cost of the physical preparation under clause (1), but excluding costs directly related to roads as defined in Minnesota Statutes, section 160.01, and local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before completion of the preparation.
Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment financing plan for a district, the rules under this section apply to a redevelopment district, renewal and renovation district, soil condition district, or soil deficiency district established by the city or a development authority of the city in the project area.
(b) Prior to or upon the adoption of the first tax increment plan subject to the special rules under this subdivision, the city must find by resolution that parcels consisting of at least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, are characterized by one or more of the following conditions:
(1) peat or other soils with geotechnical deficiencies that impair development of commercial buildings or infrastructure;
(2) soils or terrain that require substantial filling in order to permit the development of commercial buildings or infrastructure;
(3) landfills, dumps, or similar deposits of municipal or private waste;
(4) quarries or similar resource extraction sites;
(5) floodway; and
(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, subdivision 10.
(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the relevant condition if at least 70 percent of the area of the parcel contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by substandard buildings if substandard buildings occupy at least 30 percent of the area of the parcel.
(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision 4, does not apply to any district.
(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax increments paid by properties in any district, measured over the life of the district, may be expended on activities outside the district but within the project area.
(f) For a soil deficiency district:
(1) increments may be collected through 20 years after the receipt by the authority of the first increment from the district;
(2) increments may be used only to:
(i) acquire parcels on which the improvements described in item (ii) will occur;
(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional cost of installing public improvements directly caused by the deficiencies; and
(iii) pay for the administrative expenses of the authority allocable to the district; and
(3) any parcel acquired with increments from the district must be sold at no less than their fair market value.
(g) Increments spent for any infrastructure costs, whether inside a district or outside a district but within the project area, are deemed to satisfy the requirements of Minnesota Statutes, section 469.176, subdivision 4j.
(h) The authority to approve tax increment financing plans to establish tax increment financing districts under this section expires June 30, 2020.
(i) Notwithstanding the restrictions in
paragraph (f), clause (2), the city may use increments from a soil deficiency
district to acquire parcels and for other infrastructure costs either inside or
outside of the district, but within the project area, if the acquisition or
infrastructure is for a qualified development.
For purposes of this paragraph, a development is a qualified development
only if all of the following requirements are satisfied:
(1) the city finds, by resolution, that
the land acquisition and infrastructure are undertaken primarily to serve the
development;
(2) the city has a binding, written
commitment and adequate financial assurances from the developer that the
development will be constructed; and
(3) the development does not consist of
retail trade or housing improvements.
EFFECTIVE
DATE. This section is
effective upon approval by the governing body of the city of Maple Grove and
its compliance with the requirements of Minnesota Statutes, section 645.021.
Sec. 8. CITY
OF ANOKA; TIF DISTRICT.
For purposes of Minnesota Statutes,
section 469.1763, subdivision 3, paragraph (c), the city of Anoka's Greens of
Anoka redevelopment tax increment financing district is deemed to be certified
on June 29, 2012, rather than its actual certification date of July 2, 2012,
and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and
4, apply as if the district were certified on that date.
EFFECTIVE
DATE. This section is
effective upon approval by the governing body of the city of Anoka and upon
compliance by the city with Minnesota Statutes, section 645.021, subdivisions 2
and 3.
Sec. 9. CITY
OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
Notwithstanding the provisions of
Minnesota Statutes, section 645.021, subdivision 3, the chief clerical officer
of the city of Edina may file the city's certificate of its approval of Laws
2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the
certificate is so filed and the requirements of Minnesota Statutes, section
645.021, subdivision 3, are otherwise complied with, the special law is deemed
approved, and all actions taken by the city prior to the effective date of this
section in reliance on Laws 2014, chapter 308, article 6, section 8, are deemed
consistent with Laws 2014, chapter 308, article 6, section 8, and this act.
EFFECTIVE
DATE. This section is
effective June 30, 2016, without local approval as an amendment to the
provisions of Laws 2014, chapter 308, article 6, section 8.
Sec. 10. CITY
OF COON RAPIDS; TAX INCREMENT FINANCING.
Notwithstanding
the provisions of Minnesota Statutes, section 469.176, subdivision 1b, or any
other law to the contrary, the city of Coon Rapids may collect tax increment
from District 6-1 Port Riverwalk through December 31, 2038.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing bodies of the city of Coon Rapids,
Anoka County, and Independent School District No. 11 with the requirements
of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
subdivision 3.
Sec. 11. CITY
OF COTTAGE GROVE; TAX INCREMENT FINANCING.
The requirement of Minnesota Statutes,
section 469.1763, subdivision 3, that activities must be undertaken within a
five-year period from the date of certification of a tax increment financing
district, is considered to be met for Tax Increment Financing District No. 1-12
(Gateway North), administered by the Cottage Grove Economic Development
Authority, if the activities are undertaken prior to January 1, 2017.
EFFECTIVE
DATE. This section is
effective upon compliance by the chief clerical officer of the governing body of the city of Cottage Grove with the
requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 12. CITY
OF NORTHFIELD; TAX INCREMENT FINANCING.
The requirement of Minnesota Statutes,
section 469.1763, subdivision 3, that activities must be undertaken within a
five-year period from the date of certification of a tax increment financing
district, is considered to be met for the Riverfront Tax Increment Financing
District in the city of Northfield, if the activities are undertaken prior to
July 12, 2017.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Northfield and its
chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 13. CITY
OF RICHFIELD; EXTENSION OF DISTRICT.
Notwithstanding Minnesota Statutes,
section 469.176, subdivision 1b, or any other law to the contrary, the city of
Richfield and the Housing and Redevelopment Authority in and for the city of
Richfield may elect to extend the duration limit of the redevelopment tax
increment financing district known as the Cedar Avenue Tax Increment Financing
District established by Laws 2005, chapter 152, article 2, section 25, by ten years.
EFFECTIVE
DATE. This section is
effective upon compliance by the city of Richfield, Hennepin County, and
Independent School District No. 280 with the requirements of Minnesota
Statutes, sections 469.1782, subdivision 2; and 645.021, subdivisions 2 and 3.
Sec. 14. CITY
OF ST. PAUL; TIF AUTHORITY.
(a) For purposes of computing the
duration limits under Minnesota Statutes, section 469.176, subdivision 1b, the
housing and redevelopment authority of the city of St. Paul may waive
receipt of increment for the Ford Site Redevelopment Tax Increment Financing
District. This authority is limited to
the first four years of increment or increments derived from taxes payable in
2023, whichever occurs first.
(b) If the city elects to waive receipt
of increment under paragraph (a), for purposes of applying any limits based on
when the district was certified under Minnesota Statutes, section 469.176,
subdivision 6, or 469.1763, the date of certification for the district is
deemed to be January 2 of the property tax assessment year for which increment
is first received under the waiver.
EFFECTIVE
DATE. This section is
effective July 1, 2016, without local approval under Minnesota Statutes,
section 645.023, subdivision 1, paragraph (a).
ARTICLE 8
PUBLIC FINANCE
Section 1. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read:
Subdivision 1. Certificates of indebtedness. The town board may issue certificates of indebtedness within the debt limits for a town purpose otherwise authorized by law. The certificates shall be payable in not more than ten years and be issued on the terms and in the manner as the board may determine, provided that notes issued for projects that eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the estimated market value of the town, they shall not be issued for at least ten days after publication in a newspaper of general circulation in the town of the board's resolution determining to issue them. If within that time, a petition asking for an election on the proposition signed by voters equal to ten percent of the number of voters at the last regular town election is filed with the clerk, the certificates shall not be issued until their issuance has been approved by a majority of the votes cast on the question at a regular or special election. A tax levy shall be made to pay the principal and interest on the certificates as in the case of bonds.
Sec. 2. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read:
Subd. 2. Equipment
acquisition; capital notes. The
board may, by resolution and without public referendum, issue capital notes
within existing debt limits for the purpose of purchasing ambulance and other
medical equipment, road construction or maintenance equipment, public safety
equipment and other capital equipment having an expected useful life at least
equal to the term of the notes issued. The
notes shall be payable in not more than ten years and shall be issued on terms
and in a manner as the board determines, provided that notes issued for
projects that eliminate R-22, as such projects are defined in section 240A.09,
paragraph (b), clause (2), shall be payable in
not more than 20 years. The total principal amount of the notes issued for any fiscal year shall not exceed one percent of the total annual budget for that year and shall be issued solely for the purchases authorized in this subdivision. A tax levy shall be made for the payment of the principal and interest on such notes as in the case of bonds. For purposes of this subdivision, "equipment" includes computer hardware and software, whether bundled with machinery or equipment or unbundled. For purposes of this subdivision, the term "medical equipment" includes computer hardware and software and other intellectual property for use in medical diagnosis, medical procedures, research, record keeping, billing, and other hospital applications, together with application development services and training related to the use of the computer hardware and software and other intellectual property, all without regard to their useful life. For purposes of determining the amount of capital notes which the county may issue in any year, the budget of the county and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this subdivision shall be in addition to obligations issuable under section 373.01, subdivision 3.
Sec. 3. Minnesota Statutes 2014, section 410.32, is amended to read:
410.32
CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
(a) Notwithstanding any contrary provision of other law or charter, a home rule charter city may, by resolution and without public referendum, issue capital notes subject to the city debt limit to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or unbundled, together with application development services and training related to the use of the computer hardware and software.
(c) The equipment or software must have an expected useful life at least as long as the term of the notes.
(d) The notes shall be payable in not more than ten years and be issued on terms and in the manner the city determines, provided that notes issued for projects that eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years. The total principal amount of the capital notes issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable property in the city for that year.
(e) A tax levy shall be made for the payment of the principal and interest on the notes, in accordance with section 475.61, as in the case of bonds.
(f) Notes issued under this section shall require an affirmative vote of two-thirds of the governing body of the city.
(g) Notwithstanding a contrary provision of other law or charter, a home rule charter city may also issue capital notes subject to its debt limit in the manner and subject to the limitations applicable to statutory cities pursuant to section 412.301.
Sec. 4. Minnesota Statutes 2014, section 412.301, is amended to read:
412.301
FINANCING PURCHASE OF CERTAIN EQUIPMENT.
(a) The council may issue certificates of indebtedness or capital notes subject to the city debt limits to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or unbundled, together with application development services and training related to the use of the computer hardware or software.
(c) The equipment or software must have an expected useful life at least as long as the terms of the certificates or notes.
(d) Such certificates or notes shall be payable in not more than ten years and shall be issued on such terms and in such manner as the council may determine, provided, however, that notes issued for projects that eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years.
(e) If the amount of the certificates or notes to be issued to finance any such purchase exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall not be issued for at least ten days after publication in the official newspaper of a council resolution determining to issue them; and if before the end of that time, a petition asking for an election on the proposition signed by voters equal to ten percent of the number of voters at the last regular municipal election is filed with the clerk, such certificates or notes shall not be issued until the proposition of their issuance has been approved by a majority of the votes cast on the question at a regular or special election.
(f) A tax levy shall be made for the payment of the principal and interest on such certificates or notes, in accordance with section 475.61, as in the case of bonds.
Sec. 5. Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read:
Subd. 2. General obligation revenue bonds. (a) An authority may pledge the general obligation of the general jurisdiction governmental unit as additional security for bonds payable from income or revenues of the project or the authority. The authority must find that the pledged revenues will equal or exceed 110 percent of the principal and interest due on the bonds for each year. The proceeds of the bonds must be used for a qualified housing development project or projects. The obligations must be issued and sold in the manner and following the procedures provided by chapter 475, except the obligations are not subject to approval by the electors, and the maturities may extend to not more than 35 years for obligations sold to finance housing for the elderly and 40 years for other obligations issued under this subdivision. The authority is the municipality for purposes of chapter 475.
(b) The principal amount of the issue must be approved by the governing body of the general jurisdiction governmental unit whose general obligation is pledged. Public hearings must be held on issuance of the obligations by both the authority and the general jurisdiction governmental unit. The hearings must be held at least 15 days, but not more than 120 days, before the sale of the obligations.
(c) The maximum amount of general obligation
bonds that may be issued and outstanding under this section equals the greater
of (1) one-half of one percent of the estimated market value of the general
jurisdiction governmental unit whose general obligation is pledged, or (2) $3,000,000
$5,000,000. In the case of county
or multicounty general obligation bonds, the outstanding general obligation
bonds of all cities in the county or counties issued under this subdivision
must be added in calculating the limit under clause (1).
(d) "General jurisdiction governmental unit" means the city in which the housing development project is located. In the case of a county or multicounty authority, the county or counties may act as the general jurisdiction governmental unit. In the case of a multicounty authority, the pledge of the general obligation is a pledge of a tax on the taxable property in each of the counties.
(e) "Qualified housing development project" means a housing development project providing housing either for the elderly or for individuals and families with incomes not greater than 80 percent of the median family income as estimated by the United States Department of Housing and Urban Development for the standard metropolitan statistical area or the nonmetropolitan county in which the project is located. The project must be owned for the term of the bonds either by the authority or by a limited partnership or other entity in which the authority or another entity under the sole control of the authority is the sole general partner and the partnership or other entity must receive (1) an allocation from the Department of Management and Budget or an entitlement issuer of tax-exempt bonding authority for the project and a preliminary determination by the Minnesota Housing Finance Agency or the applicable suballocator of tax credits that the project will qualify for four percent low-income housing tax credits or (2) a reservation of nine percent low-income housing tax credits from the Minnesota Housing Finance Agency or a suballocator of tax credits for the project. A qualified housing development project may admit nonelderly individuals and families with higher incomes if:
(1) three years have passed since initial occupancy;
(2) the authority finds the project is experiencing unanticipated vacancies resulting in insufficient revenues, because of changes in population or other unforeseen circumstances that occurred after the initial finding of adequate revenues; and
(3) the authority finds a tax levy or payment from general assets of the general jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher income individuals or families are not admitted.
(f) The authority may issue bonds to refund bonds issued under this subdivision in accordance with section 475.67. The finding of the adequacy of pledged revenues required by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the issuance of refunding bonds. This paragraph applies to refunding bonds issued on and after July 1, 1992.
Sec. 6. Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read:
Subdivision 1. Establishment. An economic development authority may
create and define the boundaries of economic development districts at any place
or places within the city, except that the district boundaries must be
contiguous, and may use the powers granted in sections 469.090 to 469.108 to
carry out its purposes. First the
authority must hold a public hearing on the matter. At least ten days before the hearing, the
authority shall publish notice of the hearing in a daily newspaper of
general circulation in the city. Also,
the authority shall find that an economic development district is proper and
desirable to establish and develop within the city.
Sec. 7. Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision to read:
Subd. 1u. Obligations. (a) In addition to other authority in
this section, the council may issue certificates of indebtedness, bonds, or
other obligations under this section in an amount not exceeding $82,100,000 for
capital expenditures as prescribed in the council's transit capital improvement
program and for related costs, including the costs of issuance and sale of the
obligations. Of this authorization,
after July 1, 2016, the council may issue certificates of indebtedness, bonds,
or other obligations in an amount not exceeding $40,100,000, and after July 1,
2017, the council may issue certificates of indebtedness, bonds, or other
obligations in an additional amount not exceeding $42,000,000.
(b) This section applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read:
Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may, without regard to the election requirement under subdivision 1, issue and sell obligations for street reconstruction or bituminous overlays, if the following conditions are met:
(1) the streets are reconstructed or
overlaid under a street reconstruction or overlay plan that describes the
street reconstruction or overlay to be financed, the estimated costs, and any
planned reconstruction or overlay of other streets in the municipality over the
next five years, and the plan and issuance of the obligations has been approved
by a vote of all a majority of the members of the governing body
present at the meeting following a public hearing for which notice has been
published in the official newspaper at least ten days but not more than 28 days
prior to the hearing; and
(2) if a petition requesting a vote on the issuance is signed by voters equal to five percent of the votes cast in the last municipal general election and is filed with the municipal clerk within 30 days of the public hearing, the municipality may issue the bonds only after obtaining the approval of a majority of the voters voting on the question of the issuance of the obligations. If the municipality elects not to submit the question to the voters, the municipality shall not propose the issuance of bonds under this section for the same purpose and in the same amount for a period of 365 days from the date of receipt of the petition. If the question of issuing the bonds is submitted and not approved by the voters, the provisions of section 475.58, subdivision 1a, shall apply.
(b) Obligations issued under this subdivision are subject to the debt limit of the municipality and are not excluded from net debt under section 475.51, subdivision 4.
(c) For purposes of this subdivision, street reconstruction and bituminous overlays includes utility replacement and relocation and other activities incidental to the street reconstruction, turn lanes and other improvements having a substantial public safety function, realignments, other modifications to intersect with state and county roads, and the local share of state and county road projects. For purposes of this subdivision, "street reconstruction" includes expenditures for street reconstruction that have been incurred by a municipality before approval of a street reconstruction plan, if such expenditures are included in a street reconstruction plan approved on or before the date of the public hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
(d) Except in the case of turn lanes, safety improvements, realignments, intersection modifications, and the local share of state and county road projects, street reconstruction and bituminous overlays does not include the portion of project cost allocable to widening a street or adding curbs and gutters where none previously existed.
Sec. 9. Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read:
Subd. 2. Requirements waived. The requirements as to public sale shall not apply to:
(1) obligations issued under the provisions of a home rule charter or of a law specifically authorizing a different method of sale, or authorizing them to be issued in such manner or on such terms and conditions as the governing body may determine;
(2) obligations sold by an issuer in an amount not exceeding the total sum of $1,200,000 in any 12-month period;
(3) obligations issued by a governing body other than a school board in anticipation of the collection of taxes or other revenues appropriated for expenditure in a single year, if sold in accordance with the most favorable of two or more proposals solicited privately;
(4) obligations sold to any board, department, or agency of the United States of America or of the state of Minnesota, in accordance with rules or regulations promulgated by such board, department, or agency;
(5) obligations issued to fund pension and retirement fund liabilities under section 475.52, subdivision 6, obligations issued with tender options under section 475.54, subdivision 5a, crossover refunding obligations referred to in section 475.67, subdivision 13, and any issue of obligations comprised in whole or in part of obligations bearing interest at a rate or rates which vary periodically referred to in section 475.56;
(6) obligations to be issued for a purpose, in a manner, and upon terms and conditions authorized by law, if the governing body of the municipality, on the advice of bond counsel or special tax counsel, determines that interest on the obligations cannot be represented to be excluded from gross income for purposes of federal income taxation;
(7) obligations issued in the form of an installment purchase contract, lease purchase agreement, or other similar agreement;
(8) obligations sold under a bond reinvestment program; and
(9) if the municipality has retained an
independent financial municipal advisor, obligations which the
governing body determines shall be sold by private negotiation.
ARTICLE 9
IRON RANGE RESOURCES AND REHABILITATION
Section 1. Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read:
Subd. 7. Iron
Range resources and rehabilitation Board. After seeking a recommendation from
the Iron Range Resources and Rehabilitation Board, the commissioner of
Iron Range resources and rehabilitation Board may purchase insurance it
considers the commissioner deems necessary and appropriate to insure
facilities operated by the board.
Sec. 2. Minnesota Statutes 2014, section 116J.424, is amended to read:
116J.424
IRON RANGE RESOURCES AND REHABILITATION BOARD CONTRIBUTION.
The commissioner of the Iron Range
resources and rehabilitation Board with approval by the board, shall
provide an equal match for any loan or equity investment made for a facility
located in the tax relief area defined in section 273.134, paragraph (b), by
the Minnesota minerals 21st century fund created by section 116J.423. The match may be in the form of a loan or
equity investment, notwithstanding whether the fund makes a loan or equity
investment. The state shall not acquire
an equity interest because of an equity investment or loan by the board under
this section and the board at its sole discretion commissioner,
after consultation with the Iron Range Resources and Rehabilitation Board,
shall have the sole discretion to decide what interest it the
board acquires in a project. The
commissioner of employment and economic development may require a commitment
from the board commissioner to make the match prior to disbursing
money from the fund.
Sec. 3. Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given them in this subdivision.
(b) "Area development rate" means a rate schedule established by a utility that provides customers within an area development zone service under a base utility rate schedule, except that charges may be reduced from the base rate as agreed upon by the utility and the customer consistent with this section.
(c) "Area development zone" means a contiguous or noncontiguous area designated by an authority or municipality for development or redevelopment and within which one of the following conditions exists:
(1) obsolete buildings not suitable for improvement or conversion or other identified hazards to the health, safety, and general well-being of the community;
(2) buildings in need of substantial rehabilitation or in substandard condition; or
(3) low values and damaged investments.
(d) "Authority" means a rural development financing authority established under sections 469.142 to 469.151; a housing and redevelopment authority established under sections 469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an economic development authority established under sections 469.090 to 469.108; a redevelopment agency as defined in sections 469.152 to 469.165; the commissioner of Iron Range resources and rehabilitation, acting after consultation with the board established under section 298.22; a municipality that is administering a development district created under sections 469.124 to 469.133 or any special law; a municipality that undertakes a project under sections 469.152 to 469.165, except a town located outside the metropolitan area as defined in section 473.121, subdivision 2, or with a population of 5,000 persons or less; or a municipality that exercises the powers of a port authority under any general or special law.
(e) "Municipality" means a city, however organized, and, with respect to a project undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142 to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008, also includes any county.
Sec. 4. Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read:
Subd. 8. Municipality. "Municipality" means a city,
town, or township located in whole or part within the area. If a municipality is located partly within
and partly without the area, the references in sections 276A.01 to 276A.09 to
property or any portion thereof subject to taxation or taxing jurisdiction
within the municipality are to the property or portion thereof that is located
in that portion of the municipality within the area, except that the fiscal
capacity of the municipality must be computed upon the basis of the valuation
and population of the entire municipality.
A municipality shall be excluded from the area if its municipal
comprehensive zoning and planning policies conscientiously exclude most
commercial-industrial development, for reasons other than preserving an
agricultural use. The commissioner of
Iron Range resources and rehabilitation Board and the commissioner of
revenue shall jointly make this determination annually and shall notify those
municipalities that are ineligible to participate in the tax base sharing
program provided in this chapter for the following year. Before making the joint determination, the
commissioner of Iron Range resources and rehabilitation shall seek a
recommendation from the Iron Range Resources and Rehabilitation Board.
Sec. 5. Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read:
Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up to 25 percent of the areawide levy certified by the commissioner of Iron Range resources and rehabilitation, after seeking a recommendation from the Iron Range Resources and Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation and cooperatively operated school account under section 298.28, subdivision 7a.
(b) The allocation under paragraph (a) shall only be made after the commissioner of Iron Range resources and rehabilitation, after seeking a recommendation from the Iron Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range school consolidation and cooperatively operated account has insufficient funds to make payments as authorized under section 298.28, subdivision 7a.
Sec. 6. Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read:
Subdivision 1. Development. In any county where the county board by
proper resolution sets aside funds for forest development pursuant to section
282.08, clause (5), item (i), or section 459.06, subdivision 2, the
commissioner of Iron Range resources and rehabilitation with the approval of
the, after seeking a recommendation from the Iron Range Resources and
Rehabilitation Board, may upon request of the county board assist
said county in carrying out any project for the long range development of its
forest resources through matching of funds or otherwise.
Sec. 7. Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read:
Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue of the state of Minnesota, except that when used in sections 298.22 to 298.227, and 298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation.
Sec. 8. Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read:
Subdivision 1. The
Office of the Commissioner of Iron Range resources and rehabilitation. (a) The Office of the Commissioner of
Iron Range resources and rehabilitation is created as an agency in the
executive branch of state government. The
governor shall appoint the commissioner of Iron Range resources and
rehabilitation under section 15.06. The
commissioner may expend amounts appropriated to the commissioner or the board
for projects after submitting the expenditure to the board for a recommendation
under subdivision 1a.
(b) The commissioner may hold other positions or appointments that are not incompatible with duties as commissioner of Iron Range resources and rehabilitation. The commissioner may appoint a deputy commissioner. All expenses of the commissioner, including the payment of staff and other assistance as may be necessary, must be paid out of the amounts appropriated by section 298.28 or otherwise made available by law to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting options available under section 471.345 when the commissioner determines it is in the best interest of the agency. The agency is not subject to sections 16E.016 and 16C.05.
(c) When the commissioner determines that distress and unemployment exists or may exist in the future in any county by reason of the removal of natural resources or a possibly limited use of natural resources in the future and any resulting decrease in employment, the commissioner may use whatever amounts of the appropriation made to the commissioner of revenue in section 298.28 that are determined to be necessary and proper in the development of the remaining resources of the county and in the vocational training and rehabilitation of its residents, except that the amount needed to cover cost overruns awarded to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in effect after July 1, 1985, is appropriated from the general fund. For the purposes of this section, "development of remaining resources" includes, but is not limited to, the promotion of tourism.
Sec. 9. Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read:
Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range Resources and Rehabilitation Board consists of the state senators and representatives elected from state senatorial or legislative districts in which one-third or more of the residents reside in a taconite assistance area as defined in section 273.1341. One additional state senator shall also be appointed by the senate Subcommittee on Committees of the Committee on Rules and
Administration. All expenditures and projects made by the
commissioner shall first be submitted to the board for approval. The board shall recommend approval or
disapproval or modification of the expenditures and projects. The expenses of the board shall be paid by
the state from the funds raised pursuant to this section. Members of the board may be reimbursed for
expenses in the manner provided in sections 3.099, subdivision 1, and 3.101,
and may receive per diem payments during the interims between legislative
sessions in the manner provided in section 3.099, subdivision 1.
The members shall be appointed in January of every odd-numbered year, and shall serve until January of the next odd-numbered year. Vacancies on the board shall be filled in the same manner as original members were chosen.
Sec. 10. Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read:
Subd. 5a. Forest
trust. The commissioner, upon
approval by after requesting a recommendation from the board, may
purchase forest lands in the taconite assistance area defined in under section
273.1341 with funds specifically authorized for the purchase. The acquired forest lands must be held in
trust for the benefit of the citizens of the taconite assistance area as the
Iron Range Miners' Memorial Forest. The
forest trust lands shall be managed and developed for recreation and economic
development purposes. The commissioner, upon
approval by after requesting a recommendation from the board, may
sell forest lands purchased under this subdivision if the board finds commissioner
determines that the sale advances the purposes of the trust. Proceeds derived from the management or sale
of the lands and from the sale of timber or removal of gravel or other minerals
from these forest lands shall be deposited into an Iron Range Miners' Memorial
Forest account that is established within the state financial accounts. Funds may be expended from the account upon
approval by after the commissioner has sought a recommendation from
the board, to purchase, manage, administer, convey interests in, and improve
the forest lands. With approval by
After the commissioner has sought a recommendation from the board, money
in the Iron Range Miners' Memorial Forest account may be transferred into the
corpus of the Douglas J. Johnson economic protection trust fund established
under sections 298.291 to 298.294. The
property acquired under the authority granted by this subdivision and income
derived from the property or the operation or management of the property are exempt
from taxation by the state or its political subdivisions while held by the
forest trust.
Sec. 11. Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:
Subd. 6. Private
entity participation. After
seeking a recommendation from the board, the commissioner may
acquire an equity interest in any project for which it the
commissioner provides funding. The
commissioner may establish, participate in the management of, and dispose of
the assets of charitable foundations, nonprofit limited liability companies,
and nonprofit corporations associated with any project for which it provides
funding, including specifically, but without limitation, a corporation within
the meaning of section 317A.011, subdivision 6.
Sec. 12. Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read:
Subd. 8. Spending
priority. In making or approving
recommending any expenditures on programs or projects, the commissioner
and the board shall give the highest priority to programs and projects that
target relief to those areas of the taconite assistance area as defined in
section 273.1341, that have the largest percentages of job losses and
population losses directly attributable to the economic downturn in the
taconite industry since the 1980s. The
commissioner and the board shall compare the 1980 population and employment
figures with the 2000 population and employment figures, and shall specifically
consider the job losses in 2000 and 2001 resulting from the closure of LTV
Steel Mining Company, in making or approving recommending
expenditures consistent with this subdivision, as well as the areas of
residence of persons who suffered job loss for which relief is to be targeted
under this subdivision. The commissioner
may lease, for a term not exceeding 50 years and upon the terms determined by
the commissioner and approved after seeking review by the board,
surface and mineral interests owned or acquired by the state of Minnesota
acting by and through the office of the commissioner of Iron Range resources
and
rehabilitation
within those portions of the taconite assistance area affected by the closure
of the LTV Steel Mining Company facility near Hoyt Lakes. The payments and royalties from these leases
must be deposited into the fund established in section 298.292. This subdivision supersedes any other
conflicting provisions of law and does not preclude the commissioner and the
board from making expenditures for programs and projects in other areas after
seeking review by the board.
Sec. 13. Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:
Subd. 10. Sale
or privatization of functions. The
commissioner of Iron Range resources and rehabilitation may not sell or
privatize the Ironworld Discovery Center or Giants Ridge Golf and Ski Resort
without prior approval by first seeking a recommendation from the
board.
Sec. 14. Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:
Subd. 11. Budgeting. The commissioner of Iron Range resources
and rehabilitation shall annually prepare a budget for operational
expenditures, programs, and projects, and submit it to the Iron Range Resources
and Rehabilitation Board for a recommendation. After the budget is approved by the board
and the governor, the commissioner may spend money in accordance with the
approved budget.
Sec. 15. Minnesota Statutes 2014, section 298.221, is amended to read:
298.221
RECEIPTS FROM CONTRACTS; APPROPRIATION.
(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant to the terms of any contract entered into by the state under authority of section 298.22 and any fees which may, in the discretion of the commissioner of Iron Range resources and rehabilitation, be charged in connection with any project pursuant to that section as amended, shall be deposited in the state treasury to the credit of the Iron Range Resources and Rehabilitation Board account in the special revenue fund and are hereby appropriated for the purposes of section 298.22.
(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner of the Iron Range Resources and Rehabilitation Board for payment of advertising contracts if the commissioner determines that the merchandise can be used for special event prizes or mementos at facilities operated by the board. Nothing in this paragraph authorizes the commissioner or a member of the board to receive merchandise for personal use.
(c) All fees charged by the commissioner
in connection with public use of the state-owned ski and golf facilities at the
Giants Ridge Recreation Area and all other revenues derived by the commissioner
from the operation or lease of those facilities and from the lease, sale, or
other disposition of undeveloped lands at the Giants Ridge Recreation Area must
be deposited into an Iron Range Resources and Rehabilitation Board account that
is created within the state enterprise fund.
All funds deposited in the enterprise fund account are appropriated to
the commissioner to be expended, subject to approval by after seeking
a recommendation from the board, as follows:
(1) to pay costs associated with the construction, equipping, operation, repair, or improvement of the Giants Ridge Recreation Area facilities or lands;
(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs associated with the financing of the facilities; and
(3) to pay the costs of any other project authorized under section 298.22.
Sec. 16. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:
Subd. 3. Project
approval. All projects authorized by
this section shall be submitted by the commissioner to the Iron Range Resources
and Rehabilitation Board for approval by a recommendation from
the board. Prior to the commencement of
a project involving the exercise by the commissioner of any authority of
sections 469.174 to 469.179, the governing body of each municipality in which
any part of the project is located and the county board of any county
containing portions of the project not located in an incorporated area shall by
majority vote approve or disapprove the project. Any project approved by the board commissioner
and the applicable governing bodies, if any, together with detailed information
concerning the project, its costs, the sources of its funding, and the amount of
any bonded indebtedness to be incurred in connection with the project, shall be
transmitted to the governor, who shall approve, disapprove, or return the
proposal for additional consideration within 30 days of receipt. No project authorized under this section
shall be undertaken, and no obligations shall be issued and no tax increments
shall be expended for a project authorized under this section until the project
has been approved by the governor.
Sec. 17. Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read:
Subd. 4. Project
approval. After seeking a
recommendation from the board and, the commissioner shall by
August 1 each year prepare a list of projects to be funded from the money
appropriated in this section with necessary supporting information including
descriptions of the projects, plans, and cost estimates. A project must not be approved by the board
commissioner unless it the commissioner finds that:
(1) the project will materially assist, directly or indirectly, the creation of additional long-term employment opportunities;
(2) the prospective benefits of the expenditure exceed the anticipated costs; and
(3) in the case of assistance to private enterprise, the project will serve a sound business purpose.
Each project must be approved by the board
and the commissioner of Iron Range resources and rehabilitation. The list of projects must be submitted to the
governor, who shall, by November 15 of each year, approve, disapprove, or
return for further consideration, each project.
The money for a project may be spent only upon approval of the project
by the governor. The board commissioner
may submit supplemental projects for approval at any time, after seeking a
recommendation from the board.
Sec. 18. Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read:
Subd. 5. Advisory
committees. Before submission to
the board of a proposal for a project for expenditure of money appropriated
under this section, The commissioner of Iron Range resources and
rehabilitation shall appoint a technical advisory committee consisting of at
least seven persons who are knowledgeable in areas related to the objectives of
the proposal. If the project involves
investment in a scientific research proposal, at least four of the committee
members must be knowledgeable in the specific scientific research area relating
to the project. Members of the
committees must be compensated as provided in section 15.059, subdivision 3. The board commissioner shall
not act on a proposal for a request for expenditure of money appropriated
under this section until it has received the commissioner has
sought review from the board of the evaluation and recommendations of the
technical advisory committee.
Sec. 19. Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read:
Subd. 6. Use of
repayments and earnings. Principal
and interest received in repayment of loans made under this section must be
deposited in the state treasury and are appropriated to the board for the
purposes of this section northeast Minnesota economic development fund
account in the special revenue fund in the state treasury. The commissioner of Iron Range resources and
rehabilitation must seek a recommendation from the Iron Range Resources and
Rehabilitation Board for any use of funds appropriated under this section.
Sec. 20. Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read:
Subdivision 1. Creation; purposes. A fund called the taconite environmental protection fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast Minnesota located within the taconite assistance area defined in section 273.1341, that are adversely affected by the environmentally damaging operations involved in mining taconite and iron ore and producing iron ore concentrate and for the purpose of promoting the economic development of northeast Minnesota. The taconite environmental protection fund shall be used for the following purposes:
(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation Board determines are in need of study and which will determine the environmental problems requiring remedial action;
(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for by state law;
(3) local economic development projects
but only if those projects are approved by the board commissioner
after seeking a recommendation of the projects from the board, and public
works, including construction of sewer and water systems located within the
taconite assistance area defined in section 273.1341;
(4) monitoring of mineral industry related health problems among mining employees;
(5) local public works projects under section 298.227, paragraph (c); and
(6) local public works projects as provided under this clause. The following amounts shall be distributed in 2009 based upon the taxable tonnage of production in 2008:
(i) .4651 cent per ton to the city of Aurora for street repair and renovation;
(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure improvements to the south side industrial site;
(iii) .6460 cent per ton to the city of Buhl for street repair;
(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure upgrades;
(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure upgrades;
(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;
(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility modifications for the miners' memorial;
(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;
(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;
(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
(xii) .6460 cent per ton to the town of Balkan for community center repairs;
(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;
(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;
(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;
(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
(xix) .3230 cent per ton to Lake County for trail construction;
(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand Marais;
(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure improvements;
(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer improvements along Gayley Avenue;
(xxiv) .3876 cent per ton to the city of Marble for construction of a city administration facility;
(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the community center;
(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure upgrades;
(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades along Depot Street;
(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter improvements;
(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer infrastructure upgrades at Pokegema Golf Course and Park Place;
(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades for 1st Avenue from River Road to 3rd Street SE; and
(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing at Highway 2 and County Road 62.
Sec. 21. Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read:
Subd. 2. Administration. (a) The taconite area environmental protection fund shall be administered by the commissioner of the Iron Range Resources and Rehabilitation Board. The commissioner shall by September 1 of each year submit to the board a list of projects to be funded from the taconite area environmental protection fund, with such supporting information including description of the projects, plans, and cost estimates as may be necessary.
(b) Each year no less than one-half of the amounts deposited into the taconite environmental protection fund must be used for public works projects, including construction of sewer and water systems, as specified under subdivision 1, clause (3). After seeking a recommendation from the Iron Range Resources and Rehabilitation Board, the commissioner may waive the requirements of this paragraph.
(c)
Upon approval by the board, The list of projects approved by the commissioner
under this subdivision, after the commissioner has sought review of the
projects by the board, shall be submitted to the governor by November 1 of
each year. By December 1 of each year,
the governor shall approve or disapprove, or return for further consideration,
each project. Funds for a project may be
expended only upon approval of the project by the board commissioner
and the governor. The commissioner may
submit supplemental projects to the board and for approval from the
governor for approval after seeking review of the supplemental
projects from the board at any time.
Sec. 22. Minnesota Statutes 2014, section 298.227, is amended to read:
298.227
TACONITE ECONOMIC DEVELOPMENT FUND.
(a) An amount equal to that distributed pursuant to each taconite producer's taxable production and qualifying sales under section 298.28, subdivision 9a, shall be held by the Iron Range Resources and Rehabilitation Board in a separate taconite economic development fund for each taconite and direct reduced ore producer. Money from the fund for each producer shall be released by the commissioner after review by a joint committee consisting of an equal number of representatives of the salaried employees and the nonsalaried production and maintenance employees of that producer. The District 11 director of the United States Steelworkers of America, on advice of each local employee president, shall select the employee members. In nonorganized operations, the employee committee shall be elected by the nonsalaried production and maintenance employees. The review must be completed no later than six months after the producer presents a proposal for expenditure of the funds to the committee. The funds held pursuant to this section may be released only for workforce development and associated public facility improvement, or for acquisition of plant and stationary mining equipment and facilities for the producer or for research and development in Minnesota on new mining, or taconite, iron, or steel production technology, but only if the producer provides a matching expenditure equal to the amount of the distribution to be used for the same purpose beginning with distributions in 2014. Effective for proposals for expenditures of money from the fund beginning May 26, 2007, the commissioner may not release the funds before the next scheduled meeting of the board. If a proposed expenditure is not approved by the commissioner, after seeking a recommendation from the board, the funds must be deposited in the Taconite Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses money which has been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, and the producer removes the piece of equipment from the taconite tax relief area defined in section 273.134 within ten years from the date of receipt of the money from the fund, a portion of the money granted from the fund must be repaid to the taconite economic development fund. The portion of the money to be repaid is 100 percent of the grant if the equipment is removed from the taconite tax relief area within 12 months after receipt of the money from the fund, declining by ten percent for each of the subsequent nine years during which the equipment remains within the taconite tax relief area. If a taconite production facility is sold after operations at the facility had ceased, any money remaining in the fund for the former producer may be released to the purchaser of the facility on the terms otherwise applicable to the former producer under this section. If a producer fails to provide matching funds for a proposed expenditure within six months after the commissioner approves release of the funds, the funds are available for release to another producer in proportion to the distribution provided and under the conditions of this section. Any portion of the fund which is not released by the commissioner within one year of its deposit in the fund shall be divided between the taconite environmental protection fund created in section 298.223 and the Douglas J. Johnson economic protection trust fund created in section 298.292 for placement in their respective special accounts. Two-thirds of the unreleased funds shall be distributed to the taconite environmental protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of distributions and the review process, an amount equal to ten cents per taxable ton of production in 2007, for distribution in 2008 only, that would otherwise be distributed under paragraph (a), may be used for a loan or grant for the cost of providing for a value‑added wood product facility located in the taconite tax relief area and in a county that contains a city of the first class. This amount must be deducted from the distribution under paragraph (a) for which a matching
expenditure by the producer is not required. The granting of the loan or grant is subject to approval by the commissioner, after seeking a recommendation from the board. If the money is provided as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) Repayments of the loan and interest, if any, must be deposited in the taconite environment protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this paragraph by July 1, 2012, the amount that had been made available for the loan under this paragraph must be transferred to the taconite environment protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a pro rata basis.
(c) Repayment or transfer of money to the taconite environmental protection fund under paragraph (b), item (ii), must be allocated by the commissioner of Iron Range resources and rehabilitation, after seeking a recommendation from the Iron Range Resources and Rehabilitation Board for public works projects in house legislative districts in the same proportion as taxable tonnage of production in 2007 in each house legislative district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph do not require approval by the governor. For purposes of this paragraph, "house legislative districts" means the legislative districts in existence on May 15, 2009.
Sec. 23. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
Subd. 7a. Iron Range school consolidation and cooperatively operated school account. The following amounts must be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in the Iron Range school consolidation and cooperatively operated school account that is hereby created:
(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed under section 298.24;
(2) the amount as determined under section 298.17, paragraph (b), clause (3);
(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J. Johnson economic protection trust fund;
(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
(4) any other amount as provided by law.
Expenditures from this account may be approved as ongoing annual expenditures and shall be made only to provide disbursements to assist school districts with the payment of bonds that were issued for qualified school projects, or for any other school disbursement as approved by the commissioner of Iron Range resources and rehabilitation after the commissioner of Iron Range resources and rehabilitation has sought review of the expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this section, "qualified school projects" means school projects within the taconite assistance area as defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner of education pursuant to section 123B.71.
Beginning in fiscal year 2019, the disbursement to school districts for payments for bonds issued under section 123A.482, subdivision 9, must be increased each year to offset any reduction in debt service equalization aid that the school district qualifies for in that year, under section 123B.53, subdivision 6, compared with the amount the school district qualified for in fiscal year 2018.
No expenditure under this section shall be
made unless approved by seven members of the commissioner of Iron
Range resources and rehabilitation after seeking review of the expenditure from
the Iron Range Resources and Rehabilitation Board.
Sec. 24. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:
Subd. 9d. Iron
Range higher education account. Five
cents per taxable ton must be allocated to the Iron Range Resources and
Rehabilitation Board to be deposited in an Iron Range higher education account
that is hereby created, to be used for higher education programs conducted at
educational institutions in the taconite assistance area defined in section
273.1341. The Iron Range Higher
Education committee under section 298.2214, and the Iron Range Resources and
Rehabilitation Board commissioner of Iron Range resources and rehabilitation
must approve all expenditures from the account, after seeking review and
recommendation of the expenditures from the Iron Range Resources and
Rehabilitation Board.
Sec. 25. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:
Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust fund may be used for the following purposes:
(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation with private sources of financing, but a loan to a private enterprise shall be for a principal amount not to exceed one-half of the cost of the project for which financing is sought, and the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight percent or an interest rate three percentage points less than a full faith and credit obligation of the United States government of comparable maturity, at the time that the loan is approved;
(2) to fund reserve accounts established to secure the payment when due of the principal of and interest on bonds issued pursuant to section 298.2211;
(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or retrofitting heating facilities in connection with district heating systems or systems utilizing alternative energy sources;
(4) to invest in a venture capital fund or enterprise that will provide capital to other entities that are engaging in, or that will engage in, projects or programs that have the purposes set forth in subdivision 1. No investments may be made in a venture capital fund or enterprise unless at least two other unrelated investors make investments of at least $500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. Johnson economic protection trust fund may not exceed the amount of the largest investment by an unrelated investor in the venture capital fund or enterprise. For purposes of this subdivision, an "unrelated investor" is a person or entity that is not related to the entity in which the investment is made or to any individual who owns more than 40 percent of the value of the entity, in any of the following relationships: spouse, parent, child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of the value of all interests in it. For purposes of determining the limitations under this clause, the amount of investments made by an investor other than the Douglas J. Johnson economic protection trust fund is the sum of all investments made in the venture capital fund or enterprise during the period beginning one year before the date of the investment by the Douglas J. Johnson economic protection trust fund; and
(5)
to purchase forest land in the taconite assistance area defined in section
273.1341 to be held and managed as a public trust for the benefit of the area
for the purposes authorized in section 298.22, subdivision 5a. Property purchased under this section may be
sold by the commissioner upon approval by after seeking a
recommendation from the board. The
net proceeds must be deposited in the trust fund for the purposes and uses of
this section.
Money from the trust fund shall be expended only in or for the benefit of the taconite assistance area defined in section 273.1341.
Sec. 26. Minnesota Statutes 2014, section 298.294, is amended to read:
298.294
INVESTMENT OF FUND.
(a) The trust fund established by section 298.292 shall be invested pursuant to law by the State Board of Investment and the net interest, dividends, and other earnings arising from the investments shall be transferred, except as provided in paragraph (b), on the first day of each month to the trust and shall be included and become part of the trust fund. The amounts transferred, including the interest, dividends, and other earnings earned prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year 1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the commissioner of Iron Range resources and rehabilitation for deposit in a separate account for expenditure for the purposes set forth in section 298.292. Amounts appropriated pursuant to this section shall not cancel but shall remain available unless expended.
(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends, and other earnings under paragraph (a) shall be transferred to a special account. Funds in the special account are available for loans or grants to businesses, with priority given to businesses with 25 or fewer employees. Funds may be used for wage subsidies for up to 52 weeks of up to $5 per hour or other activities, including, but not limited to, short-term operating expenses and purchase of equipment and materials by businesses under financial duress, that will create additional jobs in the taconite assistance area under section 273.1341. Expenditures from the special account must be approved by the commissioner after seeking a recommendation from the board.
(c) To qualify for a grant or loan, a business must be currently operating and have been operating for one year immediately prior to its application for a loan or grant, and its corporate headquarters must be located in the taconite assistance area.
Sec. 27. Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read:
Subdivision 1. Project
approval. (a) The commissioner
of Iron Range resources and rehabilitation, after seeking a recommendation from
the board and commissioner, shall by August 1 of each year
prepare a list of projects to be funded from the Douglas J. Johnson economic
protection trust with necessary supporting information including description of
the projects, plans, and cost estimates.
These projects shall be consistent with the priorities established in
section 298.292 and shall not be approved by the board commissioner
unless it the commissioner, after seeking a recommendation from the
board, finds that:
(a) (1) the project will
materially assist, directly or indirectly, the creation of additional long-term
employment opportunities;
(b) (2) the prospective
benefits of the expenditure exceed the anticipated costs; and
(c) (3) in the case of
assistance to private enterprise, the project will serve a sound business
purpose.
(b) Each project must be approved by
over one-half of all of the members of the board and the commissioner of
Iron Range resources and rehabilitation after seeking a recommendation from
the board for the project. The list
of projects shall be submitted to the governor, who shall, by November 15 of
each year, approve or disapprove, or
return
for further consideration, each project.
The money for a project may be expended only upon approval of the
project by the governor. The board
commissioner may submit a supplemental projects project
for approval at any time after seeking a recommendation for the project from
the board.
Sec. 28. Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read:
Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended on projects and for administration of the trust fund only from the net interest, earnings, and dividends arising from the investment of the trust at any time, including net interest, earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for use in fiscal year 1983, except that any amount required to be paid out of the trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and to make school bond payments and payments to recipients of taconite production tax proceeds pursuant to section 298.225, may be taken from the corpus of the trust.
(b) Additionally, upon recommendation by the commissioner after seeking a recommendation from the board, up to $13,000,000 from the corpus of the trust may be made available for use as provided in subdivision 4, and up to $10,000,000 from the corpus of the trust may be made available for use as provided in section 298.2961.
(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8, section 17, may be expended on projects. Funds may be expended for projects under this paragraph only if the project:
(1) is for the purposes established under section 298.292, subdivision 1, clause (1) or (2); and
(2) is approved by two-thirds of all of
the members of the commissioner after seeking a recommendation from
the board.
No money made available under this paragraph or paragraph (d) can be used for administrative or operating expenses of the Iron Range Resources and Rehabilitation Board or expenses relating to any facilities owned or operated by the board on May 18, 2002.
(d) Upon recommendation by a unanimous
vote of all members the commissioner after seeking a unanimous
recommendation of the board, amounts in addition to those authorized under
paragraphs (a), (b), and (c) may be expended on projects described in section
298.292, subdivision 1.
(e) Annual administrative costs, not including detailed engineering expenses for the projects, shall not exceed five percent of the net interest, dividends, and earnings arising from the trust in the preceding fiscal year.
(f) Principal and interest received in repayment of loans made pursuant to this section, and earnings on other investments made under section 298.292, subdivision 2, clause (4), shall be deposited in the state treasury and credited to the trust. These receipts are appropriated to the board for the purposes of sections 298.291 to 298.298.
(g) Additionally, notwithstanding section 298.293, upon the approval of the commissioner of Iron Range resources and rehabilitation, after seeking a recommendation from the board, money from the corpus of the trust may be expanded to purchase forest lands within the taconite assistance area as provided in sections 298.22, subdivision 5a, and 298.292, subdivision 2, clause (5).
Sec. 29. Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read:
Subd. 4. Temporary
loan authority. (a) After seeking
a recommendation from the board, the commissioner of Iron Range resources
and rehabilitation may recommend that use up to $7,500,000
from the corpus of the trust may be used for loans, loan guarantees,
grants, or equity investments as provided in this subdivision. The money would be available for loans for
construction and equipping of facilities constituting (1) a value added iron
products plant, which may be either a new plant or a facility incorporated into
an existing plant that produces iron upgraded to a minimum of 75 percent iron
content or any iron alloy with a total minimum metallic content of 90 percent;
or (2) a new mine or minerals processing plant for any mineral subject to the
net proceeds tax imposed under section 298.015.
A loan or loan guarantee under this paragraph may not exceed $5,000,000
for any facility.
(b) Additionally, the board commissioner
of Iron Range resources and rehabilitation must reserve the first
$2,000,000 of the net interest, dividends, and earnings arising from the
investment of the trust after June 30, 1996, to be used for grants, loans, loan
guarantees, or equity investments for the purposes set forth in paragraph (a). This amount must be reserved until it is used
as described in this subdivision.
(c) Additionally, the board commissioner
may recommend that up to $5,500,000 from the corpus of the trust may be used
for additional grants, loans, loan guarantees, or equity investments for the
purposes set forth in paragraph (a).
(d) The commissioner of Iron Range
resources and rehabilitation, after seeking a recommendation from the board,
may require that it the board receive an equity percentage in any
project to which it contributes under this section.
Sec. 30. Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read:
Subd. 2. Projects; approval. (a) Projects funded must be for:
(1) environmentally unique reclamation projects; or
(2) pit or plant repairs, expansions, or modernizations other than for a value added iron products plant.
(b) To be proposed by the board, a
project must be approved by Before the commissioner may propose a
project, the commissioner must seek a recommendation from the board. The money for a project may be spent only
upon approval of the project by the governor.
The board commissioner may submit a supplemental projects
project for approval at any time after seeking a recommendation for
the project from the board.
(c) The board commissioner may
require that it the board receive an equity percentage in any
project to which it contributes under this section.
Sec. 31. Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read:
Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions under section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision. Any grant or loan made under this subdivision must first be approved by the commissioner after seeking a recommendation from the board, established under section 298.22.
(b) Distributions received in calendar year 2005 are allocated to the city of Virginia for improvements and repairs to the city's steam heating system.
(c) Distributions received in calendar year 2006 are allocated to a project of the public utilities commissions of the cities of Hibbing and Virginia to convert their electrical generating plants to the use of biomass products, such as wood.
(d) Distributions received in calendar year 2007 must be paid to the city of Tower to be used for the East Two Rivers project in or near the city of Tower.
(e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution must be paid to St. Louis County for deposit in its county road and bridge fund to be used for relocation of St. Louis County Road 715, commonly referred to as Pike River Road. The remainder of the 2008 distribution must be paid to St. Louis County for a grant to the city of Virginia for connecting sewer and water lines to the St. Louis County maintenance garage on Highway 135, further extending the lines to interconnect with the city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent years are allocated for projects under section 298.223, subdivision 1.
Sec. 32. Minnesota Statutes 2014, section 298.298, is amended to read:
298.298
LONG-RANGE PLAN.
Consistent with the policy established in
sections 298.291 to 298.298, the Iron Range Resources and Rehabilitation Board
shall prepare and present to the governor and the legislature by December 31,
2006, a long‑range plan for the use of the Douglas J. Johnson economic
protection trust fund for the economic development and diversification of the
taconite assistance area defined in section 273.1341. No project shall be approved recommended
by the Iron Range Resources and Rehabilitation Board which if the
board finds that the project is not consistent with the goals and
objectives established in the long-range plan.
Sec. 33. Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read:
Subd. 2. Unmined
iron ore; valuation petition. When
in the opinion of the duly constituted authorities of a taxing district there
are in existence reserves of unmined iron ore located in such district, these
authorities may petition the commissioner of Iron Range resources and
rehabilitation Board for authority to petition the county assessor to
verify the existence of such reserves and to ascertain the value thereof by
drilling in a manner consistent with established engineering and geological
exploration methods, in order that such taxing district may be able to forecast
in a proper manner its future economic and fiscal potentials. The commissioner of Iron Range resources
and rehabilitation may grant the authority to petition after seeking a
recommendation from the Iron Range Resources and Rehabilitation Board.
Sec. 34. IRON
RANGE RESOURCES AND REHABILITATION BOARD; EARLY SEPARATION INCENTIVE PROGRAM
AUTHORIZATION.
(a) "Commissioner" as used in
this section means the commissioner of the Iron Range Resources and
Rehabilitation Board unless otherwise specified.
(b) Notwithstanding any law to the
contrary, the commissioner, in consultation with the commissioner of management
and budget, shall offer a targeted early separation incentive program for
employees of the commissioner who have attained the age of 60 years or who have
received credit for at least 30 years of allowable service under the provisions
of Minnesota Statutes, chapter 352. The
commissioner shall also offer a targeted separation incentive program for
employees of the commissioner whose positions are in support of operations at
Giants Ridge and will be eliminated if the agency no longer directly manages
Giants Ridge operations.
(c)
The early separation incentive program may include one or more of the
following:
(1) employer-paid postseparation health,
medical, and dental insurance until age 65; and
(2) cash incentives that may, but are
not required to be, used to purchase additional years of service credit through
the Minnesota State Retirement System, to the extent that the purchases are
otherwise authorized by law.
(d) The commissioner shall establish
eligibility requirements for employees to receive an incentive.
(e) The commissioner, consistent with
the established program provisions under paragraph (b), and with the
eligibility requirements under paragraph (f), may designate specific programs
or employees as eligible to be offered the incentive program.
(f) Acceptance of the offered incentive
must be voluntary on the part of the employee and must be in writing. The incentive may only be offered at the sole
discretion of the commissioner.
(g) The cost of the incentive is payable
solely by funds made available to the commissioner by law, but only on prior
approval of the expenditures by the commissioner, after seeking a recommendation
from the Iron Range Resources and Rehabilitation Board.
(h) Unilateral implementation of this
section by the commissioner is not an unfair labor practice under Minnesota
Statutes, chapter 179A.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
This section is repealed
June 30, 2017.
Sec. 35. REVISOR'S
INSTRUCTION.
The revisor of statutes shall identify
and propose necessary changes to Minnesota Statutes and Minnesota Rules that
are consistent with the goals of this act to (i) transfer discretionary
approval authority for all expenditures and projects from the Iron Range
Resources and Rehabilitation Board to the commissioner of Iron Range resources
and rehabilitation, and (ii) provide that the commissioner must, in good faith,
seek the review and recommendation of the board, as required, before exercising
approval authority. The revisor shall
submit the proposal, in a form ready for introduction, during the 2017 regular
legislative session to the chairs and ranking minority members of the senate
and house of representatives committees with jurisdiction over taxes.
ARTICLE 10
SUSTAINABLE FOREST INCENTIVE ACT MODIFICATIONS
Section 1. Minnesota Statutes 2014, section 290C.01, is amended to read:
290C.01
PURPOSE.
It is the policy of this state to promote
sustainable forest resource management on the state's public and private lands. Recognizing that The state's
private forests comprise approximately one-half of the state forest land
resources, that healthy and robust forest land provides significant benefits
to the state of Minnesota, and that ad.
These forests play a critical role in protecting water quality and soil
resources, and provide extensive wildlife habitat, diverse recreational
experiences, and significant forest products that support the state's economy. Ad valorem property taxes represent a
significant annual cost that can discourage long-term forest management
investments. In order to foster
silviculture investments and retain these forests for their economic and
ecological benefits, this chapter, hereafter referred to as the
"Sustainable Forest Incentive Act," is enacted to encourage the
state's private forest landowners to make a long-term commitment to sustainable
forest management.
Sec. 2. Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read:
Subdivision 1. Application. When used in sections 290C.01 to 290C.11
290C.13, the terms in this section have the meanings given them.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read:
Subd. 3. Claimant. (a) "Claimant" means:
(1) a person, as that term is defined in section 290.01, subdivision 2, who owns forest land in Minnesota and files an application authorized by the Sustainable Forest Incentive Act;
(2) a purchaser or grantee if property enrolled in the program was sold or transferred after the original application was filed and prior to the annual incentive payment being made; or
(3) an owner of land previously covered by an auxiliary forest contract that automatically qualifies for inclusion in the Sustainable Forest Incentive Act program pursuant to section 88.49, subdivision 9a, or 88.491, subdivision 2.
The purchaser or grantee must notify the
commissioner in writing of the sale or transfer of the property. (b) Owners of land that qualifies for
inclusion pursuant to section 88.49, subdivision 9a, or 88.491, subdivision 2,
must notify the commissioner in writing of the expiration of the auxiliary
forest contract or land trade with a governmental unit and submit an
application to the commissioner by August 15 July 1 in order to
be eligible to receive a payment by October 1 of that same year. For purposes of section 290C.11, claimant
also includes any person bound by the covenant required in section 290C.04.
(b) (c) No more than one
claimant is entitled to a payment under this chapter with respect to any tract,
parcel, or piece of land enrolled under this chapter that has been assigned the
same parcel identification number. When
enrolled forest land is owned by two or more persons, the owners must determine
between them which person is eligible to claim the payments provided under
sections 290C.01 to 290C.11 209C.13. In the case of property sold or transferred,
the former owner and the purchaser or grantee must determine between them which
person is eligible to claim the payments provided under sections 290C.01 to 290C.11
209C.13. The owners, transferees,
or grantees must notify the commissioner in writing which person is eligible to
claim the payments.
EFFECTIVE
DATE. This section is
effective for certifications and applications due in 2017 and thereafter.
Sec. 4. Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read:
Subd. 6. Forest
land. "Forest land" means
land containing a minimum of 20 contiguous acres for which the owner has
implemented a forest management plan that was prepared or updated within the
past ten years by an approved plan writer.
For purposes of this subdivision, acres are considered to be contiguous
even if they are separated by a road, waterway, railroad track, or other
similar intervening property. At least
50 percent of the contiguous acreage must meet the definition of forest land in
section 88.01, subdivision 7. For the
purposes of sections 290C.01 to 290C.11 209C.13, forest land does
not include (i) land used for residential or agricultural purposes, (ii) land
enrolled in the reinvest in Minnesota program, a state or federal conservation
reserve or easement reserve program under sections 103F.501 to 103F.531, the
Minnesota agricultural property tax law under section 273.111, or land subject
to agricultural land preservation controls or restrictions as defined in
section 40A.02 or under the Metropolitan Agricultural Preserves Act under
chapter 473H, (iii) land exceeding 60,000 acres that is subject to a single
conservation easement funded under section 97A.056 or a comparable permanent
easement conveyed to a governmental or nonprofit entity; (iv) any land that
becomes subject to a conservation easement
funded
under section 97A.056 or a comparable permanent easement conveyed to a
governmental or nonprofit entity after May 30, 2013; or (v) (iv)
land improved with a structure,; pavement, other than a paved
trail under easement, lease, or terminable license to the state of Minnesota or
a political subdivision; sewer,; campsite,; or
any road, other than a township road, used for purposes not prescribed in the
forest management plan.
EFFECTIVE DATE. This section is effective for applications made in 2017 and thereafter.
Sec. 5. Minnesota Statutes 2014, section 290C.03, is amended to read:
290C.03
ELIGIBILITY REQUIREMENTS.
(a) Land may be enrolled in the sustainable forest incentive program under this chapter if all of the following conditions are met:
(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;
(2) a forest management plan for the land must be prepared by an approved plan writer and implemented during the period in which the land is enrolled;
(3) timber harvesting and forest management guidelines must be used in conjunction with any timber harvesting or forest management activities conducted on the land during the period in which the land is enrolled;
(4) the land must be enrolled for a minimum of eight years;
(5) there are no delinquent property taxes
on the land; and
(6) claimants enrolling more than 1,920
acres or enrolling any land that is subject to a conservation easement
funded under section 97A.056, or a comparable permanent easement conveyed to a
governmental or nonprofit entity in the sustainable forest incentive
program must allow year-round, nonmotorized access to fish and wildlife
resources and motorized access on established and maintained roads and trails,
unless the road or trail is temporarily closed for safety, natural resource, or
road damage reasons on enrolled land except within one-fourth mile of a
permanent dwelling or during periods of high fire hazard as determined by the
commissioner of natural resources.;
(7) the claimant has registered the
forest management plan under clause (2) with the commissioner of natural
resources, who has determined that the land meets qualifications for
enrollment; and
(8) the land is not classified as class
2c managed forest land.
(b) Claimants required to allow access under paragraph (a), clause (6), do not by that action:
(1) extend any assurance that the land is safe for any purpose;
(2) confer upon the person the legal status of an invitee or licensee to whom a duty of care is owed; or
(3) assume responsibility for or incur liability for any injury to the person or property caused by an act or omission of the person.
(c) The commissioner of natural
resources shall annually provide county assessors verification information
regarding plan registration under paragraph (a), clause (7), on a timely basis.
(d)
A minimum of three acres must be excluded from enrolled land when the land is
improved with a structure that is not a minor, ancillary, and nonresidential
structure.
(e) If land does not meet the definition of forest land in section 290C.02, subdivision 6, because the land is:
(1) enrolled in a state or federal conservation reserve or easement program under sections 103F.501 to 103F.531;
(2) subject to the Minnesota agricultural property tax under section 273.111; or
(3) subject to agricultural land
preservation controls or restrictions as defined in section 40A.02, or the
Metropolitan Agricultural Preserves Act under chapter 473H, the entire tax
parcel that contains the land is not eligible to be enrolled in the program.
EFFECTIVE
DATE. This section is
effective for certifications and applications due in 2017 and thereafter.
Sec. 6. Minnesota Statutes 2014, section 290C.04, is amended to read:
290C.04
APPLICATIONS.
(a) A landowner may apply to enroll forest
land for the sustainable forest incentive program under this chapter. The claimant must complete, sign, and submit
an application to the commissioner by September 30 in order for the land to
become eligible beginning in the next year.
The application shall be on a form prescribed by the commissioner
commissioners of revenue and natural resources and must include the
information the commissioner deems necessary.
At a minimum, the application must show the following information for
the land and the claimant: (i) the
claimant's Social Security number or state or federal business tax registration
number and date of birth, (ii) the claimant's address, (iii) the claimant's
signature, (iv) the county's parcel identification numbers for the tax parcels
that completely contain the claimant's forest land that is sought to be
enrolled, (v) the number of acres eligible for enrollment in the program, (vi)
the approved plan writer's signature and identification number, and
(vii) proof, in a form specified by the commissioner, that the claimant has
executed and acknowledged in the manner required by law for a deed, and
recorded, a covenant that the land is not and shall not be developed in a
manner inconsistent with the requirements and conditions of this chapter,
and (viii) a registration number for the forest management plan, issued by the
commissioner of natural resources. The
covenant shall state in writing that the covenant is binding on the claimant
and the claimant's successor or assignee, and that it runs with the land for a
period of not less than eight years unless the claimant requests termination
of the covenant after a reduction in payments due to changes in the payment
formula under section 290C.07 or as a result of executive action, the amount of
payment a claimant is eligible to receive under section 290C.07 is reduced or
limited. The commissioner shall
specify the form of the covenant and provide copies upon request. The covenant must include a legal description
that encompasses all the forest land that the claimant wishes to enroll under
this section or the certificate of title number for that land if it is
registered land. The commissioner of
natural resources shall record the area eligible for enrollment into the
Sustainable Forest Incentive Act as electronic geospatial data, as defined in
section 16E.30, subdivision 10.
(b) The commissioner shall provide a
copy of the application filed by the claimant and all supporting materials to
the commissioner of natural resources within 15 days of receipt or by September
1, whichever is sooner. The commissioner
of natural resources must notify the commissioner whether the applicant
qualifies for enrollment within 30 days of receipt, and if the applicant
qualifies for enrollment, the commissioner of natural resources shall specify
the number of qualifying acres per tax parcel.
(b) In all cases, (c) The
commissioner shall notify the claimant within 90 days after receipt of a
completed application that either the land has or has not been approved for
enrollment. A claimant whose application
is denied may appeal the denial as provided in section 290C.13.
(c) (d) Within 90 days after the denial of an application, or within 90 days after the final resolution of any appeal related to the denial, the commissioner shall execute and acknowledge a document releasing the land from the covenant required under this chapter. The document must be mailed to the claimant and is entitled to be recorded.
(d) (e) The Social Security
numbers collected from individuals under this section are private data as
provided in section 13.355. The federal
business tax registration number and date of birth data collected under this
section are also private data on individuals or nonpublic data, as defined in
section 13.02, subdivisions 9 and 12, but may be shared with county assessors
for purposes of tax administration and with county treasurers for purposes of
the revenue recapture under chapter 270A.
EFFECTIVE
DATE. This section is
effective for certifications and applications due in 2017 and thereafter.
Sec. 7. Minnesota Statutes 2014, section 290C.05, is amended to read:
290C.05
ANNUAL CERTIFICATION AND MONITORING.
(a) On or before July 1 May
15 of each year, beginning with the year after the original claimant has
received an approved application, the commissioner shall send each claimant
enrolled under the sustainable forest incentive program a certification form. For purposes of this section, the original
claimant is the person that filed the first application under section
290C.04 to enroll the land in the program current property owner on
record, or the person designated by the owners in the case of multiple
ownership. The claimant must sign and
return the certification, attesting to the commissioner by July 1
of that same year, and (1) attest that the requirements and conditions for
continued enrollment in the program are currently being met, and must return
the signed certification form to the commissioner by August 15 of that same
year (2) provide a report in the form and manner determined by the
commissioner of natural resources describing the management practices that have
been carried out on the enrolled property during the prior year. If the claimant does not return an annual
certification form by the due date, the provisions in section 290C.11 apply. The commissioner of natural resources must
verify that the claimant meets program requirements.
(b) The commissioner must provide the certification
form and annual report described in paragraph (a), clause (2), to the
commissioner of natural resources by August 1.
(c) The commissioner of natural
resources must conduct annual monitoring of a subset of claimants, excluding
land also enrolled in a conservation easement program. Claimants will be selected for monitoring
based on reported violations, annual certification, and random selections. Monitoring will be conducted on ten percent
of claimants as of July 1 of each year. Monitoring
may include, but is not limited to, a site visit by a Department of Natural
Resources or contracted forester. The
commissioner of natural resources must develop a monitoring form to record the
monitoring data.
EFFECTIVE
DATE. Paragraphs (a) and (b)
are effective for certifications and applications due in 2017 and thereafter. Paragraph (c) is effective July 1, 2019.
Sec. 8. Minnesota Statutes 2014, section 290C.055, is amended to read:
290C.055
LENGTH OF COVENANT.
(a) The covenant remains in effect for a
minimum of eight years. Claimants enrolling any land that is subject to
a conservation easement funded under section 97A.056 or a comparable permanent
easement conveyed to a governmental or nonprofit entity must enroll their land
under a covenant with a minimum duration of eight years. All other claimants may choose to enroll
their land under a covenant with a minimum duration of eight, 20, or 50 years. If land is removed the claimant
requests removal of land from the program before it has been enrolled for four
years one-half the number of years of the covenant's duration, the
covenant remains in effect for eight years the entire duration of the
covenant from the date recorded.
(b)
If land that has been enrolled for four years one-half the number of years
of the covenant's minimum duration or more is removed from the program for
any reason, there is a waiting period before the covenant terminates. The covenant terminates on January 1 of the
fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year
minimum covenant, respectively, that begins after the date that:
(1) the commissioner receives notification from the claimant that the claimant wishes to remove the land from the program under section 290C.10; or
(2) the date that the land is removed from the program under section 290C.11.
(c) Notwithstanding the other provisions of this section, the covenant is terminated:
(1) at the same time that the land is removed from the program due to acquisition of title or possession for a public purpose under section 290C.10; or
(2) at the request of the claimant after
(i) if there is a reduction in payments due to changes in the payment
formula under section 290C.07; or (ii) if, as a result of executive action,
the amount of payment a claimant is eligible to receive under section 290C.07
is reduced or limited.
EFFECTIVE
DATE. This section is
effective for certifications and applications in 2017 and thereafter.
Sec. 9. Minnesota Statutes 2014, section 290C.07, is amended to read:
290C.07
CALCULATION OF INCENTIVE PAYMENT.
(a) An approved claimant under the
sustainable forest incentive program is eligible to receive an annual payment for
each acre of enrolled land, excluding any acre improved with a paved trail
under easement, lease, or terminable license to the state of Minnesota or a
political subdivision. The payment
shall equal $7 per acre for each acre enrolled in the sustainable forest
incentive program. a percentage of the property tax that would be paid
on the land determined by using the previous year's statewide average total tax
rate for all taxes levied within townships and unorganized territories, the
estimated market value per acre as calculated in section 290C.06, and a class
rate of one percent as follows: (1) for
claimants enrolling land that is subject to a conservation easement funded
under section 97A.056 or a comparable permanent easement conveyed to a
governmental or nonprofit entity before May 31, 2013, 25 percent; (2) for
claimants enrolling land that is not subject to a conservation easement under
an eight-year covenant, 65 percent; (3) for claimants enrolling land that is
not subject to a conservation easement under a 20-year covenant, 90 percent;
and (4) for claimants enrolling land that is not subject to a conservation
easement under a 50‑year covenant, 115 percent.
(b) The calculated payment shall not be
less than the payment received in 2016 and shall not increase or decrease by
more than ten percent relative to the payment received for the previous year.
(c) In addition to the payments
provided under this section, a claimant enrolling more than 1,920 acres shall
be allowed an additional payment per acre equal to the amount prescribed in
paragraph (a), clause (1), for all acres of enrolled land on which public access
is allowed, as required under section 290C.03, paragraph (a), clause (6),
excluding any land subject to a conservation easement funded under section
97A.056, or a permanent easement conveyed to a governmental or nonprofit entity
that is required to allow for public access under section 290C.03, paragraph
(a), clause (6).
EFFECTIVE DATE. This section is effective for calculations made in 2017 and thereafter.
Sec. 10. Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read:
Subdivision 1. Annual
payment. An incentive payment for
each acre of enrolled land will be made annually to each claimant in the amount
determined under section 290C.07. By
September 15 of each year, the commissioner of natural resources will certify
to the commissioner the eligibility of each claimant to receive a payment. The incentive payment shall be paid by the
commissioner on or before October 1 each year based on the certifications
due August 15 July 1 of that year. Interest at the annual rate determined under
section 270C.40 shall be included with any incentive payment not paid by the
later of October 1 of the year the certification was due, or 45 days after the
completed certification was returned or filed if the commissioner accepts a
certification filed after August 15 July 1 of the taxes payable
year as the resolution of an appeal.
EFFECTIVE
DATE. This section is
effective for certifications and applications due in 2017 and thereafter.
Sec. 11. Minnesota Statutes 2014, section 290C.10, is amended to read:
290C.10
WITHDRAWAL PROCEDURES.
An approved claimant (a) The
current owner of land enrolled under the sustainable forest incentive
program for a minimum of four years one-half the number of years of
the covenant's minimum duration may notify the commissioner of the intent
to terminate enrollment. Within 90 days
of receipt of notice to terminate enrollment, the commissioner shall inform the
claimant in writing, acknowledging receipt of this notice and indicating the
effective date of termination from the sustainable forest incentive program. Termination of enrollment in the sustainable
forest incentive program occurs on January 1 of the fifth, 11th, or 26th
calendar year for the eight-, 20-, or 50-year respective minimum covenant
that begins after receipt by the commissioner of the termination notice. After the commissioner issues an effective
date of termination, a claimant wishing to continue the land's enrollment in
the sustainable forest incentive program beyond the termination date must apply
for enrollment as prescribed in section 290C.04. A claimant who withdraws a parcel of land
from this program may not reenroll the parcel for a period of three years. Within 90 days after the termination date,
the commissioner shall execute and acknowledge a document releasing the land
from the covenant required under this chapter.
The document must be mailed to the claimant and is entitled to be
recorded.
(b) Notwithstanding paragraph (a), on
request of the claimant, the commissioner may allow early withdrawal from
the Sustainable Forest Incentive Act without penalty when the state of
Minnesota, any local government unit, or any other entity which has the power
of eminent domain acquires title or possession to the land for a public purpose
notwithstanding the provisions of this section. In the case of such an eligible
acquisition under this paragraph, the commissioner shall execute and
acknowledge a document releasing the land acquired by the state, local
government unit, or other entity from the covenant.
(c) Notwithstanding paragraph (a), upon
request of the claimant, the commissioner shall allow early withdrawal from the
Sustainable Forest Incentive Act without penalty when a government or nonprofit
entity acquires a permanent conservation easement on the enrolled property and
the conservation easement is at least as restrictive as the covenant required
under section 290C.04. The commissioner
of natural resources must notify the commissioner of lands acquired under this
paragraph that are eligible for withdrawal.
In the case of an eligible easement acquisition under this paragraph,
the commissioner shall execute and acknowledge a document releasing the land
subject to the easement from the covenant.
(d) Notwithstanding paragraph (a), upon request
of the claimant, the commissioner shall allow early withdrawal from the
Sustainable Forest Incentive Act without penalty for land that is subject to
fee or easement acquisition or lease to the state of Minnesota or a political
subdivision of the state for the public purpose of a paved trail. The commissioner of natural resources must
notify the commissioner of lands acquired under this paragraph that are
eligible for withdrawal. In the case of
an eligible fee or easement acquisition or lease under this paragraph, the
commissioner shall execute and acknowledge a document releasing the land
subject to fee or easement acquisition or lease by the state or political
subdivision of the state.
(e) All other enrolled land must remain in the program.
EFFECTIVE
DATE. The amendments to
paragraphs (c) and (d) are effective the day following final enactment. The amendments to paragraphs (a), (b), and
(e) are effective for notifications made in 2017 and thereafter.
Sec. 12. [290C.101]
TRANSFER OF OWNERSHIP.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings provided.
(b) "New owner" means a
prospective purchaser or grantee.
(c) "Owner" means a grantor
or seller.
Subd. 2. Notification
to commissioner. (a) An owner
must notify the commissioner if the owner transfers any or all of the owner's land enrolled in the sustainable forest incentive
program to one or more new owners within 60 days of the transfer of
title to the property. The notification
must include the legal descriptions of the transferred property, the tax parcel
numbers, and the name and address of the new owner. If transfer of ownership is a result of the
death of the claimant, the provisions of section 290C.12 shall apply.
(b) Upon notification, the commissioner
shall inform the new owner of the restrictions of the covenant required by
section 290C.04 and the withdrawal procedures under section 290C.10. In order for the new owner to receive
payments pursuant to this chapter, the new owner must file an application and
register a new forest management plan with the commissioner of natural
resources within two years from the date the title of the property was
transferred to remain eligible.
Subd. 3. Termination
of enrollment. The commissioner
will terminate enrollment according to the procedure in section 290C.10 for
failure of the new owner to register a forest management plan within the time
period in subdivision 2, paragraph (b).
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 13. Minnesota Statutes 2014, section 290C.11, is amended to read:
290C.11
PENALTIES FOR REMOVAL.
(a) If the commissioner determines that land
enrolled in the sustainable forest incentive program is in violation of the
conditions for enrollment as specified in section 290C.03, or upon
notification by the commissioner of natural resources that land enrolled is in
violation of the conditions for enrollment, the commissioner shall notify
the claimant current owner of the land of the intent to remove all
the tax parcel of the enrolled land where the violation has occurred
from the sustainable forest incentive program.
The penalties described under paragraph (c) apply. The claimant current owner has
60 days to appeal this determination under the provisions of section 290C.13.
(b) If the commissioner determines the land
is to be removed from the sustainable forest incentive program due to the
construction or addition of an improvement to the property, the claimant
owner of the tax parcel that is in violation is liable for payment to
the commissioner in the amount equal to:
(1) the payments received issued related to the enrolled
tax parcel under this chapter for the previous four-year period in the
case of an eight-year minimum covenant, ten-year period in the case of a
20-year minimum covenant, or 25-year period in the case of a 50-year minimum
covenant, plus interest; and (2) 25 percent of the estimated market
value of the property as reclassified under section 273.13 due to the structure
being on the tax parcel, as determined by the assessor.
(c)
If the commissioner of natural resources determines that the land is used for
purposes other than forestry purposes, the commissioner of natural resources
shall notify the commissioner of revenue, who shall notify the current owner of
the tax parcel that is in violation that the current owner is liable to the
commissioner in an amount equal to: (1)
30 percent of the estimated market value as property reclassified under section
273.13, due to the change in use, as determined by the assessor; and (2) the
payments issued related to the enrolled tax parcel under this chapter for the
previous four-year period in the case of an eight-year covenant, ten-year
period in the case of a 20-year covenant, or 25-year period in the case of a
50-year covenant, plus interest.
(d) The claimant has 90 days to satisfy the payment for removal of land from the sustainable forest incentive program under this section. If the penalty is not paid within the 90-day period under this paragraph, the commissioner shall certify the amount to the county auditor for collection as a part of the general ad valorem real property taxes on the land in the following taxes payable year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read:
Subd. 6. Determination
of appeal. On the basis of
applicable law and available information, the commissioner shall determine the
validity, if any, in whole or in part, of the appeal and notify the claimant of
the decision. This notice must be in
writing and contain the basis for the determination. The commissioner shall consult with the
commissioner of natural resources when an appeal relates to the use of the
property for forestry or nonforestry purposes and for appeals related to forest
management plans.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. SUSTAINABLE
FOREST INCENTIVE ACT; TRANSITION PROVISION.
(a) For lands enrolled in the
Sustainable Forest Incentive Act on May 15, 2016, the owner of enrolled lands
may elect through May 15, 2018, and without penalty, to change the length of a
covenant, if eligible, under Minnesota Statutes, section 290C.055. The owner of enrolled land must provide
notice to the Department of Revenue of its intent to change the length of its
covenant.
(b) For lands enrolled in the
Sustainable Forest Incentive Act on May 15, 2016, the owner of enrolled land
must comply with the changes made in the act by certifications due in 2018, as
required under Minnesota Statutes, section 290C.05.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. ADMINISTRATIVE
APPROPRIATION.
$600,000 in fiscal year 2017 is
appropriated from the general fund to the commissioner of natural resources for
administering this article. The funding
base for administering this article in fiscal year 2018 and thereafter is
$600,000.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 17. REPEALER.
Minnesota Statutes 2014, section
290C.02, subdivisions 5 and 9, are repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 11
MISCELLANEOUS
Section 1. Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2, is amended to read:
Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general fund revenues and expenditures, the commissioner of management and budget determines that there will be a positive unrestricted budgetary general fund balance at the close of the biennium, the commissioner of management and budget must allocate money to the following accounts and purposes in priority order:
(1) the cash flow account established in subdivision 1 until that account reaches $350,000,000;
(2) the budget reserve account established
in subdivision 1a until that account reaches $810,992,000 $1,596,522,000;
(3) the amount necessary to increase the aid
payment schedule for school district aids and credits payments in section
127A.45 to not more than 90 percent rounded to the nearest tenth of a percent
without exceeding the amount available and with any remaining funds deposited
in the budget reserve; and
(4) the amount necessary to restore all or a
portion of the net aid reductions under section 127A.441 and to reduce the
property tax revenue recognition shift under section 123B.75, subdivision 5, by
the same amount;.
(5) the closed landfill investment fund
established in section 115B.421 until $63,215,000 has been transferred into the
account. This clause expires after the
entire amount of the transfer has been made; and
(6) the metropolitan landfill
contingency action trust account established in section 473.845 until
$8,100,000 has been transferred into the account. This clause expires after the entire amount
of the transfer has been made.
(b) The amounts necessary to meet the requirements of this section are appropriated from the general fund within two weeks after the forecast is released or, in the case of transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations schedules otherwise established in statute.
(c) The commissioner of management and budget shall certify the total dollar amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The commissioner of education shall increase the aid payment percentage and reduce the property tax shift percentage by these amounts and apply those reductions to the current fiscal year and thereafter.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 2. [116J.952]
NEW MARKETS GRANT PROGRAM.
Subdivision 1. Grant
program established. The
commissioner shall award new markets grants for qualified low-income community
investments as specified under this section.
The commissioner shall adopt rules to establish criteria for determining
grant eligibility.
Subd. 2. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Applicant" means a
qualified community development entity as defined in paragraph (h).
(c) "Commissioner" means the
commissioner of employment and economic development.
(d)
"Greater Minnesota" means the area of the state that excludes the
metropolitan area, as defined in section 473.121, subdivision 2.
(e) "Internal Revenue Code"
has the meaning given in section 290.01, subdivision 31.
(f) "Qualified active low-income
community business" has the meaning given in section 45D of the Internal
Revenue Code. The term does not include:
(1) any trade or business engaged in
insurance, banking, lending, lobbying, political consulting, or leisure; or
(2) any trade or business activity
consisting of the operation of any private or commercial golf course, country
club, suntan facility, hot tub facility, massage parlor, race track, or other
facility used for gambling, or any store the principal business of which is the
sale of alcoholic beverages for consumption off premises.
(g) "Low-income communities" as
defined in section 45D of the Internal Revenue Code and applied to any term or
requirement used in this section or an incorporated provision of federal law
includes the area of any home rule charter or statutory city that:
(1) is located in greater Minnesota;
(2) has a population, as defined in
section 477A.011, subdivision 3, of 500 or more; and
(3) has net tax capacity of property,
classified as class 3 under section 273.13, of less than $500 per capita for
property taxes assessed in 2015, payable in 2016, including the city's
distribution net tax capacity and excluding its contribution net tax capacity
under chapter 276A.
(h) "Qualified community
development entity" has the meaning given in section 45D of the Internal
Revenue Code, provided that the entity has direct lending experience serving
businesses in disadvantaged communities in the state and a primary mission of
economic development.
(i) "Qualified low-income
community investment" means any capital or equity investment in, or loan
to, any qualified active low-income community business.
Subd. 3. Grant awards. The commissioner shall award grants to qualified community development entities based on a competitive review of applications received by the commissioner using criteria established in subdivision 4.
Subd. 4. Application. (a) The commissioner shall develop an
application form requiring information necessary to evaluate the benefits to
Minnesota from awarding the grants.
(b) Prior to awarding grants to an
applicant under this subdivision, the commissioner shall consider the
following:
(1) whether the qualified community
development entity has demonstrated experience providing capital or technical
assistance to disadvantaged businesses or communities in the state;
(2) the extent to which an applicant
demonstrates direct experience in asset and risk management and in fulfilling
government compliance requirements;
(3) the extent to which an applicant
demonstrates a capitalization strategy that ensures that the economic benefit
of the grant allocation remains in the state;
(4)
the extent to which the applicant establishes standards for wages and benefits
exceeding federal poverty guidelines and includes a means by which to monitor
and measure ongoing compliance with those standards;
(5) the financial contributions
expected to be made to the project from nonstate sources; and
(6) any other criteria the commissioner
deems necessary.
Subd. 5. Annual
reporting by community development entities. A community development entity that
has been awarded a grant must submit an annual report to the commissioner
within 180 days after the end of the fiscal year. The report must include information on
investments made in the preceding year, including but not limited to the
following:
(1) the types of industries, identified
by the North American Industry Classification System Code, in which a qualified
low-income community investment was made;
(2) the names of the counties in which
the qualified active low-income community businesses are located which received
qualified low-income community investments;
(3) the number of jobs created and
retained by qualified active low-income community businesses receiving
qualified low-income community investments, including verification that the
average wages and benefits paid to full-time employees, based on an hourly wage
for a 40-hour work week, meet or exceed 105 percent of the federal poverty
income guidelines for a family of four; and
(4) other information and documentation
required by the commissioner to verify continued certification as a qualified
community development entity under United States Code, title 26, section 45D.
Subd. 6. Application
fees; fund created. The
qualified community development entity must submit a nonrefundable application
fee at the time the application is submitted equal to the amount published in
the Minnesota new markets grant program application. The commissioner may allow up to 25 percent
of the fee to be submitted up to 180 days following the grant award and up to
25 percent of the fee to be submitted up to 270 days following the grant award. Application fees are deposited in the new
markets grant program administration account in the special revenue fund.
Subd. 7. Administrative
fees. Upon the issuance of a
qualified low-income community investment by a qualified community development
entity, an administrative fee in an amount determined by the commissioner and
published in the grant agreement must be deposited in the new markets grant
program administration account in the special revenue fund.
Subd. 8. Administrative
expenses. Amounts in the new
markets grant program administration account are appropriated annually to the
commissioner for administrative expenses related to administering the new
markets grant program in this section.
Subd. 9. Annual
report. The commissioner
shall annually by January 15, 2018 through 2023, report to the chairs and
ranking minority members of the legislative committees on economic development
on the implementation of the grant program, including an evaluation of the
success and economic impact of the program in the state. The report must include:
(1) the number of women-owned and
minority-owned businesses assisted by the grants;
(2) the number of greater
Minnesota-located businesses assisted by the grants and the amount of that
assistance;
(3)
the number of metropolitan area-located businesses assisted by the grants and
the amount of that assistance;
(4) the number of jobs created by the
grants including the number of women and minorities obtaining jobs; and
(5) the number of jobs created by the
grants located in greater Minnesota and in the metropolitan area.
Subd. 10. Expiration. This section expires the earlier of
July 1, 2024, or when the last of the grant funds have been awarded. The commissioner must issue the rules for the
implementation of this section to allow commencement of grant awards by January
1, 2017.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. [270C.22]
TAX TIME SAVINGS GRANT PROGRAM.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Financial capability
services" means any of the following:
(1) assistance with opening a savings
or transactional account that meets the Federal Deposit Insurance Corporation's
model safe accounts template standards;
(2) assistance with depositing all or
part of a tax refund into a savings or transactional account;
(3) assistance with obtaining and
reviewing a consumer report or credit score, as those terms are defined in
United States Code, title 15, section 1681a;
(4) assistance with obtaining and
reviewing a banking history report;
(5) financial coaching, or referral to
financial coaching services, as provided in section 256E.35, subdivision 4a;
(6) National Foundation for Credit
Counseling certified consumer credit and debt counseling or referral to these
services;
(7) enrollment in a matched or
incentivized savings program, including the provision of matching or incentive
funds;
(8) assistance with purchasing federal
retirement savings bonds, as described in Code of Federal Regulations, title
31, part 347, or referral to a certified financial planner, registered
investment adviser, licensed insurance producer or agent, or a registered
securities broker-dealer representative for private sector retirement options;
or
(9) assistance with purchasing a Series
I United States Savings Bond with all or part of a tax refund.
(c) "Transactional account"
means a traditional demand deposit account or a general purpose reloadable
prepaid card offered by a bank or credit union.
(d) "TCE" means the Tax
Counseling for the Elderly program established by the Internal Revenue Service.
(e) "VITA" means the
Volunteer Income Tax Assistance program established by the Internal Revenue
Service.
Subd. 2. Creation. The commissioner of revenue shall
establish a tax time savings grant program to make grants to one or more
nonprofit organizations to fund the integration of financial capability
services into the delivery of taxpayer assistance services funded by grants
under section 270C.21.
Subd. 3. Qualified
applicant. To be eligible to
receive a grant under the tax time savings grant program, an applicant must:
(1) qualify under section 501(c)(3) of
the Internal Revenue Code and be registered with the Internal Revenue Service
as part of either the VITA or TCE programs; and
(2) commit to dedicate at least one
staff or volunteer position to coordinate financial capability services at a
VITA or TCE program site and to offer VITA or TCE program participants free
assistance with the initiation through completion of:
(i) opening a savings and a
transactional account that meet the Federal Deposit Insurance Corporation's
model safe accounts template standards;
(ii) depositing all or part of a tax
refund into a savings or transactional account; and
(iii) purchasing a Series I United
States Savings Bond with all or part of a tax refund.
Subd. 4. Conflict
of interest. (a) No applicant
may receive direct compensation from a bank, credit union, other financial
services provider, or vendor in exchange for the applicant offering to program
participants the products or services of that bank, credit union, other
financial services provider, or vendor.
(b) No applicant may receive funding
from a bank, credit union, other financial services provider, or vendor that is
contingent on the applicant offering products or services of that bank, credit
union, other financial services provider, or vendor to program participants.
(c) An applicant may receive funding
from a bank, credit union, other financial services provider, or vendor that is
not in exchange for or contingent upon the applicant offering products or services
of that bank, credit union, other financial services provider, or vendor to
program participants.
Subd. 5. Permitted
use of grant funds. (a) A
grant recipient may use grant funds to dedicate a staff or volunteer position
to coordinate financial capability services at a VITA or TCE site and to offer
VITA or TCE program participants free assistance with the initiation through
completion of:
(1) opening a savings and a
transactional account that meet the Federal Deposit Insurance Corporation's model
safe accounts template standards;
(2) depositing all or part of a tax
refund into a savings or transactional account; and
(3) purchasing a Series I United States
Savings Bond with all or part of a tax refund.
(b) A grant recipient who offers all of
the financial capability services enumerated in paragraph (a) may also use
grant funds to provide one or more additional financial capability services to
VITA or TCE program participants at no cost to the participant.
Sec. 4. Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read:
Subdivision 1. Written
order. The Tax Court, except in
Small Claims Division, shall determine every appeal by written order containing
findings of fact and the decision of the tax court. A memorandum of the grounds of the decision
shall be appended. Notice of the entry
of the order and of the substance of the decision shall be mailed to all
parties. A motion for rehearing, which
includes a motion for amended findings of fact, conclusions of law, or a new trial,
must be served by the moving party within 15 30 days after
mailing of the notice by the court as specified in this subdivision, and the
motion must be heard within 30 60 days thereafter, unless the
time for hearing is extended by the court within the 30-day 60-day
period for good cause shown.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read:
Subd. 2. Jurisdiction. At the election of the taxpayer, the Small Claims Division shall have jurisdiction only in the following matters:
(a) cases involving valuation, assessment, or taxation of real or personal property, if:
(i) the issue is a denial of a current year application for the homestead classification for the taxpayer's property;
(ii) only one parcel is included in the petition, the entire parcel is classified as homestead class 1a or 1b under section 273.13, and the parcel contains no more than one dwelling unit;
(iii) the entire property is classified as agricultural homestead class 2a or 1b under section 273.13; or
(iv) the assessor's estimated market value of the property included in the petition is less than $300,000; or
(b) any case not involving valuation,
assessment, or taxation of real and personal property in which the amount in
controversy does not exceed $5,000 $15,000, including penalty and
interest.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2014, section 289A.60, is amended by adding a subdivision to read:
Subd. 32. Sales
suppression. (a) A person
who:
(1) sells;
(2) transfers;
(3) develops;
(4) manufactures; or
(5) possesses with the intent to sell
or transfer
an automated sales suppression device, zapper,
phantom-ware, or similar device capable of being used to commit tax fraud or
suppress sales is liable for a civil penalty calculated under paragraph (b).
(b)
The amount of the civil penalty equals the greater of (1) $2,000, or (2) the
total amount of all taxes and penalties due that are attributable to the use of
any automated sales suppression device, zapper, phantom-ware, or similar device
facilitated by the sale, transfer, development, or manufacture of the automated
sales suppression device, zapper, phantom-ware, or similar device by the
person.
(c) The definitions in section 609.858
apply to this subdivision.
EFFECTIVE DATE. This section is effective for activities
enumerated in paragraph (a) that occur after July 1, 2016.
Sec. 7. Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read:
Subd. 13. Property taxes payable. "Property taxes payable" means the property tax exclusive of special assessments, penalties, and interest payable on a claimant's homestead after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, and any other state paid property tax credits in any calendar year, and after any refund claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the year that the property tax is payable. In the case of a claimant who makes ground lease payments, "property taxes payable" includes the amount of the payments directly attributable to the property taxes assessed against the parcel on which the house is located. No apportionment or reduction of the "property taxes payable" shall be required for the use of a portion of the claimant's homestead for a business purpose if the claimant does not deduct any business depreciation expenses for the use of a portion of the homestead, or does not deduct expenses under section 280A of the Internal Revenue Code for a business operated in the home, in the determination of federal adjusted gross income. For homesteads which are manufactured homes as defined in section 273.125, subdivision 8, and for homesteads which are park trailers taxed as manufactured homes under section 168.012, subdivision 9, "property taxes payable" shall also include 17 percent of the gross rent paid in the preceding year for the site on which the homestead is located. When a homestead is owned by two or more persons as joint tenants or tenants in common, such tenants shall determine between them which tenant may claim the property taxes payable on the homestead. If they are unable to agree, the matter shall be referred to the commissioner of revenue whose decision shall be final. Property taxes are considered payable in the year prescribed by law for payment of the taxes.
In the case of a claim relating to "property taxes payable," the claimant must have owned and occupied the homestead on January 2 of the year in which the tax is payable and (i) the property must have been classified as homestead property pursuant to section 273.124, on or before December 15 of the assessment year to which the "property taxes payable" relate; or (ii) the claimant must provide documentation from the local assessor that application for homestead classification has been made on or before December 15 of the year in which the "property taxes payable" were payable and that the assessor has approved the application.
EFFECTIVE
DATE. This section is
effective for refunds based on rent paid after December 31, 2014, and property
taxes payable after December 31, 2015.
Sec. 8. Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision to read:
Subd. 20. Additional
allocation; 2016. In addition
to the tax reductions in subdivisions 12 to 19, $3,000,000 is allocated for tax
reductions to border city enterprise zones in cities located on the western
border of the state. The commissioner
shall allocate this amount among cities on a per capita basis. Allocations under this subdivision may be
used for tax reductions under sections 469.171, 469.1732, and 469.1734, or for
other offsets of taxes imposed on or remitted by businesses located in the
enterprise zone, but only if the municipality determines that the granting of
the tax reduction or offset is necessary to retain a business within or attract
a business to the zone.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 9. Minnesota Statutes 2014, section 609.5316, subdivision 3, is amended to read:
Subd. 3. Weapons, telephone cloning paraphernalia, automated sales suppression devices, and bullet‑resistant vests. Weapons used are contraband and must be summarily forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as defined in section 609.486, worn or possessed during the commission or attempted commission of a crime are contraband and must be summarily forfeited to the appropriate agency upon conviction of the owner or possessor for a controlled substance crime or for any offense of this chapter. Telephone cloning paraphernalia used in a violation of section 609.894, and automated sales suppression devices, phantom-ware, and other devices containing an automated sales suppression or phantom-ware device or software used in violation of section 609.858, are contraband and must be summarily forfeited to the appropriate agency upon a conviction.
Sec. 10. [609.858]
USE OF AUTOMATED SALES SUPPRESSION DEVICES.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Automated sales suppression
device" or "zapper" means a software program, carried on any
tangible medium, or accessed through any other means, that falsifies the
electronic records of electronic cash registers and other point-of-sale systems
including, but not limited to, transaction data and transaction reports.
(c) "Electronic cash
register" means a device that keeps a register or supporting documents
through the means of an electronic device or computer system designed to record
transaction data for the purpose of computing, compiling, or processing retail
sales transaction data in whatever manner.
(d) "Phantom-ware" means hidden
preinstalled, or later-installed programming option embedded in the operating
system of an electronic cash register or hardwired into the electronic cash
register that can be used to create a virtual second electronic cash register
or may eliminate or manipulate transaction records that may or may not be
preserved in digital formats to represent the true or manipulated record of
transactions in the electronic cash register.
(e) "Transaction data"
includes items purchased by a customer, the price of each item, the taxability
determination for each item, a segregated tax amount for each of the taxed
items, the date and time of the purchase, the name, address and identification
number of the vendor, and the receipt or invoice number of the transaction.
(f) "Transaction report"
means a report documenting, but not limited to, the sales, taxes collected,
media totals, and discount voids at an electronic cash register that is printed
on cash register tape at the end of a day or shift, or a report documenting every
action at an electronic cash register that is stored electronically.
Subd. 2. Felony. A person who sells, purchases,
installs, transfers, possesses, develops, manufactures, accesses, or uses an
automated sales suppression device, zapper, phantom-ware, or similar device
knowing that the device or phantom-ware is capable of being used to commit tax
fraud or suppress sales is guilty of a felony and may be sentenced to
imprisonment for not more than five years or to a payment of a fine of not more
than $10,000, or both.
Subd. 3. Forfeiture. An automated sales suppression device,
zapper, phantom-ware, and any other device containing an automated sales
suppression, zapper, or phantom-ware device or software is contraband and
subject to forfeiture under section 609.5316.
EFFECTIVE DATE. This section is effective August 1, 2015, and
applies to crimes committed on or after that date.
Sec. 11. APPROPRIATIONS.
Subdivision 1. New
markets grant program. $30,000,000
in fiscal year 2017 is appropriated from the general fund to the commissioner
of employment and economic development for the new markets grant program under
Minnesota Statutes, section 116J.952. This
appropriation is a onetime appropriation and is available until June 30, 2024. The commissioner may award grants of up to
$10,000,000 per fiscal year.
Subd. 2. Department
of Revenue. $5,000,000 in
fiscal year 2017 is appropriated from the general fund to the commissioner of
revenue for administering this act. The
funding base for this appropriation in fiscal year 2018 and thereafter is
$2,000,000.
Subd. 3. Tax
time savings grant program. (a)
$400,000 is appropriated in fiscal year 2017 from the general fund to the
commissioner of revenue to make grants under the tax time savings grant program
under Minnesota Statutes, section 270C.22.
Of this amount, up to five percent may be used for the administration of
the tax time savings grant program.
(b) The base funding for the grant
program authorized under paragraph (a) is $400,000 each year.
Subd. 4. Taxpayer
assistance grants. (a)
$400,000 is appropriated in fiscal year 2017 from the general fund to the
commissioner of revenue for the provision of taxpayer assistance grants under
Minnesota Statutes, section 270C.21, in addition to the current base funding
for the program. Of the amount
appropriated under this paragraph and the current base funding for the
provision of taxpayer assistance grants, up to five percent may be used for the
administration of the taxpayer assistance grants program.
(b) Beginning in fiscal year 2018, the
total base funding for the program under paragraph (a) is $800,000 each year. This amount includes the base funding of
$400,000 each year established in Laws 2015, chapter 77, article 1, section 14,
subdivision 2, paragraph (a).
Subd. 5. Local
government grants. (a) The
following amounts are appropriated in fiscal year 2016 only from the general
fund to the commissioner of revenue for grants that shall be paid by June 30,
2016, and allocated as follows:
(1) $1,200,000 to the city of Madelia;
(2) $465,000 to the city of Hibbing;
and
(3) $52,288 to Stearns County.
(b) The following amounts are
appropriated in fiscal year 2017 only from the general fund to the commissioner
of revenue for grants that shall be paid by June 30, 2017, and allocated as
follows:
(1) $2,000,000 to Mahnomen County. Of this amount, $1,000,000 must be used by
the county for the Mahnomen Health Center, and $1,000,000 must be paid from the
county to the White Earth Band of Ojibwe;
(2) $1,130,000 to Hennepin County. Of this amount, $730,000 must be used for the
North Branch Library EMERGE Career and Technology Center, and $400,000 must be
used for the Cedar Riverside Opportunity Center;
(3) $1,000,000 to the city of Mahnomen;
and
(4) $150,000 to the city of Lilydale.
(c)
All of the appropriations under this subdivision are onetime and are not added
to the base budget.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 12
DEPARTMENT
POLICY AND TECHNICAL PROVISIONS; INCOME,
CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to read:
Subd. 11. Information included in income tax return. (a) The return must state:
(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address of the taxpayer in the same name or names and same address as the taxpayer has used in making the taxpayer's income tax return to the United States;
(2) the date or dates of birth of the taxpayer or taxpayers;
(3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number has been issued by the United States with respect to the taxpayers; and
(4) the amount of the taxable income of the taxpayer as it appears on the federal return for the taxable year to which the Minnesota state return applies.
(b) The taxpayer must attach to the
taxpayer's Minnesota state income tax return a copy of the federal income tax
return that the taxpayer has filed or is about to file for the period,
unless the taxpayer is eligible to telefile the federal return and does file
the Minnesota return by telefiling.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read:
Subd. 16. Tax
refund or return preparers; electronic filing; paper filing fee imposed. (a) A "tax refund or return
preparer," as defined in section 289A.60, subdivision 13, paragraph
(f), who is a tax return preparer for purposes of section 6011(e) of the
Internal Revenue Code, and who reasonably expects to prepare more than ten
Minnesota individual income, corporate franchise, S corporation,
partnership, or fiduciary income tax returns for the prior calendar
year must file all Minnesota individual income, corporate franchise, S corporation,
partnership, or fiduciary income tax returns prepared for that calendar
year by electronic means.
(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return that the taxpayer did not want the return filed by electronic means.
(c) For each return that is not filed electronically by a tax refund or return preparer under this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is imposed upon the preparer. The fee is collected from the preparer in the same manner as income tax. The fee does not apply to returns that the commissioner requires to be filed in paper form.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 3. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:
Subd. 2. Withholding statement. (a) A person required to deduct and withhold from an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or who would have been required to deduct and withhold a tax under section 290.92, subdivision 2a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined without regard to section 290.92, subdivision 19, if the employee or payee had claimed no more than one withholding exemption, or who paid wages or made payments not subject to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an employee or person receiving royalty payments in excess of $600, or who has entered into a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must give every employee or person receiving royalty payments in respect to the remuneration paid by the person to the employee or person receiving royalty payments during the calendar year, on or before January 31 of the succeeding year, or, if employment is terminated before the close of the calendar year, within 30 days after the date of receipt of a written request from the employee if the 30-day period ends before January 31, a written statement showing the following:
(1) name of the person;
(2) the name of the employee or payee and the employee's or payee's Social Security account number;
(3) the total amount of wages as that term is defined in section 290.92, subdivision 1, paragraph (1); the total amount of remuneration subject to withholding under section 290.92, subdivision 20; the amount of sick pay as required under section 6051(f) of the Internal Revenue Code; and the amount of royalties subject to withholding under section 290.923, subdivision 2; and
(4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2.
(b) The statement required to be furnished by paragraph (a) with respect to any remuneration must be furnished at those times, must contain the information required, and must be in the form the commissioner prescribes.
(c) The commissioner may prescribe rules providing for reasonable extensions of time, not in excess of 30 days, to employers or payers required to give the statements to their employees or payees under this subdivision.
(d) A duplicate of any statement made under
this subdivision and in accordance with rules prescribed by the commissioner,
along with a reconciliation in the form the commissioner prescribes of the
statements for the calendar year, including a reconciliation of the quarterly
returns required to be filed under subdivision 1, must be filed with the
commissioner on or before February 28 January 31 of the year
after the payments were made.
(e) If an employer cancels the employer's Minnesota withholding account number required by section 290.92, subdivision 24, the information required by paragraph (d), must be filed with the commissioner within 30 days of the end of the quarter in which the employer cancels its account number.
(f) The employer must submit the statements
required to be sent to the commissioner in the same manner required to
satisfy the federal reporting requirements of section 6011(e) of the Internal
Revenue Code and the regulations issued under it. An employer must submit statements to the
commissioner required by this section by electronic means if the employer is
required to send more than 25 statements to the commissioner, even though the
employer is not required to submit the returns federally by electronic means. For statements issued for wages paid in 2011
and after, the threshold is ten. All
statements issued for withholding required under section 290.92 are aggregated
for purposes of determining whether the electronic submission threshold is met. The commissioner shall prescribe the
content, format, and manner of the statement pursuant to section 270C.30.
(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph (a), clause (2), must submit the returns required by this subdivision and subdivision 1, paragraph (a), with the commissioner by electronic means.
EFFECTIVE DATE. This section is effective for statements required
to be sent to the commissioner after December 31, 2016, except that the date
change in paragraph (d) is effective for wages paid after December 31, 2015.
Sec. 4. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read:
Subd. 14. Regulated
investment companies; Reporting exempt interest and exempt-interest
dividends. (a) A regulated
investment company paying $10 or more in exempt-interest dividends to an individual
who is a resident of Minnesota, or any person receiving $10 or more of
exempt interest or exempt-interest dividends and paying as nominee to an
individual who is a resident of Minnesota, must make a return indicating
the amount of the exempt interest or exempt-interest dividends, the
name, address, and Social Security number of the recipient, and any other information that the commissioner specifies. The return must be provided to the shareholder
recipient by February 15 of the year following the year of the
payment. The return provided to the shareholder
recipient must include a clear statement, in the form prescribed by the
commissioner, that the exempt interest or exempt-interest dividends must
be included in the computation of Minnesota taxable income. By June 1 of each year, the regulated
investment company payor must file a copy of the return with the
commissioner.
(b) For purposes of this subdivision, the following definitions apply.
(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest dividends that are not required to be added to federal taxable income under section 290.01, subdivision 19a, clause (1)(ii).
(2) "Regulated investment company" means regulated investment company as defined in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company as defined in section 851(g) of the Internal Revenue Code.
(3) "Exempt interest" means
income on obligations of any state other than Minnesota, or a political or
governmental subdivision, municipality, or governmental agency or
instrumentality of any state other than Minnesota, and exempt from federal income
taxes under the Internal Revenue Code or any other federal statute.
EFFECTIVE
DATE. This section is
effective for reports required to be filed after December 31, 2016.
Sec. 5. Minnesota Statutes 2014, section 289A.18, is amended by adding a subdivision to read:
Subd. 2a. Annual
withholding returns; eligible employers.
(a) An employer who deducts and withholds an amount required to
be withheld by section 290.92 may file an annual return and make an annual
payment of the amount required to be deducted and withheld for that calendar
year if the employer has received a notification under paragraph (b). The ability to elect to file an annual return
continues through the year following the year where an employer is required to
deduct and withhold more than $500.
(b) The commissioner is authorized to
determine which employers are eligible to file an annual return and to notify
employers who newly qualify to file an annual return because the amount an
employer is required to deduct and withhold for that calendar year is $500 or
less based on the most recent period of four consecutive quarters for which the
commissioner has compiled data on that employer's withholding tax for that
period. At the time of notification,
eligible employers may still decide to file returns and make deposits quarterly. An employer who decides to file returns and
make deposits quarterly is required to make all returns and deposits required
by this chapter and, notwithstanding paragraph (a), is subject to all
applicable penalties for failing to do so.
(c)
If, at the end of any calendar month other than the last month of the calendar
year, the aggregate amount of undeposited tax withheld by an employer who has
elected to file an annual return exceeds $500, the employer must deposit the
aggregate amount with the commissioner within 30 days of the end of the
calendar month.
(d) If an employer who has elected to
file an annual return ceases to pay wages for which withholding is required,
the employer must file a final return and deposit any undeposited tax within 30
days of the end of the calendar month following the month in which the employer
ceased paying wages.
(e) An employer not subject to paragraph
(c) or (d) who elects to file an annual return must file the return and pay the
tax not previously deposited before February 1 of the year following the year
in which the tax was withheld.
(f) A notification to an employer
regarding eligibility to file an annual return under Minnesota Rules, part
8092.1400, is considered a notification under paragraph (a).
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 6. Minnesota Statutes 2014, section 289A.20, subdivision 2, is amended to read:
Subd. 2. Withholding from wages, entertainer withholding, withholding from payments to out-of-state contractors, and withholding by partnerships, small business corporations, trusts. (a) Except as provided in section 289A.18, subdivision 2a, a tax required to be deducted and withheld during the quarterly period must be paid on or before the last day of the month following the close of the quarterly period, unless an earlier time for payment is provided. A tax required to be deducted and withheld from compensation of an entertainer and from a payment to an out-of-state contractor must be paid on or before the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes required to be deducted and withheld by partnerships, S corporations, and trusts must be paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and trusts and under section 289A.26 for S corporations.
(b) An employer who, during the previous quarter, withheld more than $1,500 of tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax withheld under those sections with the commissioner within the time allowed to deposit the employer's federal withheld employment taxes under Code of Federal Regulations, title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers must submit a copy of their federal notice of deposit status to the commissioner upon request by the commissioner.
(c) The commissioner may prescribe by rule other return periods or deposit requirements. In prescribing the reporting period, the commissioner may classify payors according to the amount of their tax liability and may adopt an appropriate reporting period for the class that the commissioner judges to be consistent with efficient tax collection. In no event will the duration of the reporting period be more than one year.
(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments with respect to both the tax and the amount to be deducted must be made, without interest, in the manner and at the times the commissioner prescribes. If the underpayment cannot be adjusted, the amount of the underpayment will be assessed and collected in the manner and at the times the commissioner prescribes.
(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending June 30, the employer must remit each required deposit for wages paid in all subsequent calendar years by electronic means.
(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a), clause (2), who remits withholding deposits must remit all deposits by electronic means as provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal year for all of the employers.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 7. Minnesota Statutes 2014, section 289A.31, subdivision 1, is amended to read:
Subdivision 1. Individual income, fiduciary income, mining company, corporate franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining company, and corporate franchise taxes, and interest and penalties, must be paid by the taxpayer upon whom the tax is imposed, except in the following cases:
(1) The tax due from a decedent for that part of the taxable year in which the decedent died during which the decedent was alive and the taxes, interest, and penalty due for the prior years must be paid by the decedent's personal representative, if any. If there is no personal representative, the taxes, interest, and penalty must be paid by the transferees, as defined in section 270C.58, subdivision 3, to the extent they receive property from the decedent;
(2) The tax due from an infant or other incompetent person must be paid by the person's guardian or other person authorized or permitted by law to act for the person;
(3) The tax due from the estate of a decedent must be paid by the estate's personal representative;
(4) The tax due from a trust, including those within the definition of a corporation, as defined in section 290.01, subdivision 4, must be paid by a trustee; and
(5) The tax due from a taxpayer whose business or property is in charge of a receiver, trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge of the business or property so far as the tax is due to the income from the business or property.
(b) Entertainment taxes are the joint and several liability of the entertainer and the entertainment entity. The payor is liable to the state for the payment of the tax required to be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the entertainer for the amount of the payment.
(c) The tax taxes imposed
under section sections 289A.35 and 290.0922 on partnerships is
are the joint and several liability of the partnership and the general
partners.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2014, section 289A.35, is amended to read:
289A.35
ASSESSMENTS ON RETURNS.
(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable income, items of federal tax preferences, or federal credit amounts to make them conform with the provisions of chapter 290 or section 298.01. If a return has been filed, the commissioner shall enter the liability reported on the return and may make any audit or investigation that is considered necessary.
(b) Upon petition by a taxpayer, and
when the commissioner determines that it is in the best interest of the state,
the commissioner may allow S corporations and partnerships to receive
orders of assessment issued under section 270C.33, subdivision 4, on behalf of
their owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must be
calculated using the method provided in section 289A.08, subdivision 7,
paragraph (b).
(c) A taxpayer may petition the commissioner
for the use of the method described in paragraph (b) after the taxpayer is
notified that an audit has been initiated and before an order of assessment has
been issued.
(d) A determination of the commissioner
under paragraph (b) to grant or deny the petition of a taxpayer cannot be
appealed to the Tax Court or any other court.
(b) (e) The commissioner may audit and adjust the taxpayer's computation of tax under chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner shall notify the estate no later than nine months after the filing date, as provided by section 289A.38, subdivision 2, whether the return is under examination or the return has been processed as filed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read:
Subd. 28. Preparer
identification number. Any Minnesota
individual income tax return or claim for refund prepared by a "tax
refund or return preparer" as defined in subdivision 13, paragraph (f),
shall bear the identification number the preparer is required to use federally
under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who prepares
a Minnesota individual income tax return return required by section
289A.08, subdivisions 1, 2, 3, and 7; or 289A.12, subdivision 3, or claim
for refund and fails to include the required number on the return or claim is
subject to a penalty of $50 for each failure.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 10. 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;
(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) (11), 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) (11), 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)
(12), 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) (12), 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;
(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.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:
Subd. 19c. Corporations; additions to federal taxable income. For corporations, there shall be added to federal taxable income:
(1) the amount of any deduction taken for federal income tax purposes for income, excise, or franchise taxes based on net income or related minimum taxes, including but not limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or any foreign country or possession of the United States;
(2) interest not subject to federal tax upon obligations of: the United States, its possessions, its agencies, or its instrumentalities; the state of Minnesota or any other state, any of its political or governmental subdivisions, any of its municipalities, or any of its governmental agencies or instrumentalities; the District of Columbia; or Indian tribal governments;
(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal Revenue Code;
(4) the amount of any net operating loss deduction taken for federal income tax purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss deduction under section 810 of the Internal Revenue Code;
(5) the amount of any special deductions taken for federal income tax purposes under sections 241 to 247 and 965 of the Internal Revenue Code;
(6) losses from the business of mining, as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota income tax;
(7) the amount of any capital losses deducted for federal income tax purposes under sections 1211 and 1212 of the Internal Revenue Code;
(8) the amount of percentage depletion deducted under sections 611 through 614 and 291 of the Internal Revenue Code;
(9) for certified pollution control
facilities placed in service in a taxable year beginning before December 31,
1986, and for which amortization deductions were elected under section 169 of
the Internal Revenue Code of 1954, as amended through December 31, 1985, the
amount of the amortization deduction allowed in computing federal taxable
income for those facilities;
(10) (9) the amount of a
partner's pro rata share of net income which does not flow through to the
partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;
(11) (10) any increase in
subpart F income, as defined in section 952(a) of the Internal Revenue Code,
for the taxable year when subpart F income is calculated without regard to the
provisions of Division C, title III, section 303(b) of Public Law 110-343;
(12) (11) 80 percent of the
depreciation deduction allowed under section 168(k)(1)(A) and (k)(4)(A) of the
Internal Revenue Code. For purposes of
this clause, if the taxpayer has an activity that in the taxable year generates
a deduction for depreciation under section 168(k)(1)(A) and (k)(4)(A) and the
activity generates a loss for the taxable year that the taxpayer is not allowed
to claim for the taxable year, "the depreciation allowed under section
168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of
the depreciation claimed by the activity under section 168(k)(1)(A) and
(k)(4)(A) over the amount of the loss from the activity that is not allowed in
the taxable year. In succeeding taxable
years when the losses not allowed in the taxable year are allowed, the
depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
(13) (12) 80 percent of the
amount by which the deduction allowed by section 179 of the Internal Revenue
Code exceeds the deduction allowable by section 179 of the Internal Revenue
Code of 1986, as amended through December 31, 2003;
(14) (13) to the extent
deducted in computing federal taxable income, the amount of the deduction
allowable under section 199 of the Internal Revenue Code;
(15) (14) the amount of
expenses disallowed under section 290.10, subdivision 2; and
(16) (15) discharge of
indebtedness income resulting from reacquisition of business indebtedness and
deferred under section 108(i) of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:
Subd. 19d. Corporations; modifications decreasing federal taxable income. For corporations, there shall be subtracted from federal taxable income after the increases provided in subdivision 19c:
(1) the amount of foreign dividend gross-up added to gross income for federal income tax purposes under section 78 of the Internal Revenue Code;
(2) the amount of salary expense not allowed for federal income tax purposes due to claiming the work opportunity credit under section 51 of the Internal Revenue Code;
(3) any dividend (not including any distribution in liquidation) paid within the taxable year by a national or state bank to the United States, or to any instrumentality of the United States exempt from federal income taxes, on the preferred stock of the bank owned by the United States or the instrumentality;
(4) the deduction for capital losses pursuant to sections 1211 and 1212 of the Internal Revenue Code, except that:
(i) for capital losses incurred in taxable years beginning after December 31, 1986, capital loss carrybacks shall not be allowed;
(ii) for capital losses incurred in taxable years beginning after December 31, 1986, a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be allowed;
(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryback to each of the three taxable years preceding the loss year, subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
(iv) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryover to each of the five taxable years succeeding the loss year to the extent such loss was not used in a prior taxable year and subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed;
(5) an amount for interest and expenses relating to income not taxable for federal income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 291 of the Internal Revenue Code in computing federal taxable income;
(6) in the case of mines, oil and gas wells, other natural deposits, and timber for which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a reasonable allowance for depletion based on actual cost. In the case of leases the deduction must be apportioned between the lessor and lessee in accordance with rules prescribed by the commissioner. In the case of property held in trust, the allowable deduction must be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the trust, or if there is no provision in the instrument, on the basis of the trust's income allocable to each;
(7) for certified pollution control
facilities placed in service in a taxable year beginning before December 31,
1986, and for which amortization deductions were elected under section 169 of
the Internal Revenue Code of 1954, as amended through December 31, 1985, an
amount equal to the allowance for depreciation under Minnesota Statutes 1986,
section 290.09, subdivision 7;
(8) (7) amounts included in
federal taxable income that are due to refunds of income, excise, or franchise
taxes based on net income or related minimum taxes paid by the corporation to
Minnesota, another state, a political subdivision of another state, the
District of Columbia, or a foreign country or possession of the United States
to the extent that the taxes were added to federal taxable income under
subdivision 19c, clause (1), in a prior taxable year;
(9) (8) income or gains from the business of mining as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota franchise tax;
(10) (9) the amount of
disability access expenditures in the taxable year which are not allowed to be
deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
(11) (10) the amount of
qualified research expenses not allowed for federal income tax purposes under
section 280C(c) of the Internal Revenue Code, but only to the extent that the
amount exceeds the amount of the credit allowed under section 290.068;
(12) (11) the amount of salary
expenses not allowed for federal income tax purposes due to claiming the Indian
employment credit under section 45A(a) of the Internal Revenue Code;
(13) (12) any decrease in
subpart F income, as defined in section 952(a) of the Internal Revenue Code,
for the taxable year when subpart F income is calculated without regard to the
provisions of Division C, title III, section 303(b) of Public Law 110-343;
(14) (13) in each of the five
tax years immediately following the tax year in which an addition is required
under subdivision 19c, clause (12) (11), 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 19c, clause (12) (11). The resulting delayed depreciation cannot be
less than zero;
(15) (14) in each of the five
tax years immediately following the tax year in which an addition is required
under subdivision 19c, clause (13) (12), an amount equal to
one-fifth of the amount of the addition;
(16) (15) 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 19c, clause (16) (15); and
(17) (16) 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.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.
(b) "Long-term care insurance" means a policy that:
(1) qualifies for a deduction under
section 213 of the Internal Revenue Code, disregarding the 7.5 percent adjusted
gross income test; or meets the requirements given in section 62A.46; or
provides similar coverage issued under the laws of another jurisdiction; and
(2) has a lifetime long-term care benefit limit of not less than $100,000; and
(3) has been offered in compliance with the inflation protection requirements of section 62S.23.
(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
(d) "Premiums deducted in determining federal taxable income" means the lesser of (1) long-term care insurance premiums that qualify as deductions under section 213 of the Internal Revenue Code; and (2) the total amount deductible for medical care under section 213 of the Internal Revenue Code.
EFFECTIVE DATE. This section is effective retroactively for
taxable years beginning after December 31, 2012.
Sec. 14. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:
Subd. 2. Definitions. For purposes of this section, the following terms have the meanings given.
(a) "Qualified research expenses" means (i) qualified research expenses and basic research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does not include expenses incurred for qualified research or basic research conducted outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and (ii) contributions to a nonprofit corporation established and operated pursuant to the provisions of chapter 317A for the purpose of promoting the establishment and expansion of business in this state, provided the contributions are invested by the nonprofit corporation for the purpose of providing funds for small, technologically innovative enterprises in Minnesota during the early stages of their development.
(b) "Qualified research" means qualified research as defined in section 41(d) of the Internal Revenue Code, except that the term does not include qualified research conducted outside the state of Minnesota.
(c) "Base amount" means base
amount as defined in section 41(c) of the Internal Revenue Code, except that
the average annual gross receipts and aggregate gross receipts must be
calculated using Minnesota sales or receipts under section 290.191 and the
definitions contained in clauses paragraphs (a) and (b) shall
apply.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read:
Subd. 3. Exemption amount. (a) For purposes of computing the alternative minimum tax, the exemption amount is, for taxable years beginning after December 31, 2005, $60,000 for married couples filing joint returns, $30,000 for married individuals filing separate returns, estates, and trusts, and $45,000 for unmarried individuals.
(b) The exemption amount determined under this subdivision is subject to the phase out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum taxable income as determined under this section must be substituted in the computation of the phase out.
(c) For taxable years beginning after
December 31, 2006, the exemption amount under paragraph (a), clause (2),
must be adjusted for inflation. The
commissioner shall adjust the exemption amount by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word "2005" shall be substituted for
the word "1992." For 2007, the
commissioner shall then determine the percent change from the 12 months ending
on August 31, 2005, to the 12 months ending on August 31, 2006, and in each
subsequent year, from the 12 months ending on August 31, 2005, to the 12 months
ending on August 31 of the year preceding the taxable year. The exemption amount as adjusted must be
rounded to the nearest $10. If the
amount ends in $5, it must be rounded up to the nearest $10 amount. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read:
Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable income" is Minnesota net income as defined in section 290.01, subdivision 19, and includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), (f), and (h) of the Internal Revenue Code. If a corporation files a separate company Minnesota tax return, the minimum tax must be computed on a separate company basis. If a corporation is part of a tax group filing a unitary return, the minimum tax must be computed on a unitary basis. The following adjustments must be made.
(1) The portion of the depreciation
deduction allowed for federal income tax purposes under section 168(k) of the
Internal Revenue Code that is required as an addition under section 290.01,
subdivision 19c, clause (12) (11), is disallowed in determining
alternative minimum taxable income.
(2) The subtraction for depreciation
allowed under section 290.01, subdivision 19d, clause (14) (13),
is allowed as a depreciation deduction in determining alternative minimum
taxable income.
(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) of the Internal Revenue Code does not apply.
(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal Revenue Code does not apply.
(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code does not apply.
(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal Revenue Code does not apply.
(7) The tax preference for charitable contributions of appreciated property under section 57(a)(6) of the Internal Revenue Code does not apply.
(8) For purposes of calculating the adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable income" as it is used in section 56(g) of the Internal Revenue Code, means alternative minimum taxable income as defined in this subdivision, determined without regard to the adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
(9) For purposes of determining the amount
of adjusted current earnings under section 56(g)(3) of the Internal Revenue
Code, no adjustment shall be made under section 56(g)(4) of the Internal
Revenue Code with respect to (i) the amount of foreign dividend gross-up
subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii)
the amount of refunds of income, excise, or franchise taxes subtracted as
provided in section 290.01, subdivision 19d, clause (8) (7).
(10) Alternative minimum taxable income excludes the income from operating in a job opportunity building zone as provided under section 469.317.
Items of tax preference must not be reduced below zero as a result of the modifications in this subdivision.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 17. Minnesota Statutes 2014, section 290.17, subdivision 2, is amended to read:
Subd. 2. Income not derived from conduct of a trade or business. The income of a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or business must be assigned in accordance with paragraphs (a) to (f):
(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section 3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent that, the work of the employee is performed within it; all other income from such sources is treated as income from sources without this state.
Severance pay shall be considered income from labor or personal or professional services.
(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete or entertainer, income from compensation for labor or personal services performed within this state shall be determined in the following manner:
(i) The amount of income to be assigned to Minnesota for an individual who is a nonresident salaried athletic team employee shall be determined by using a fraction in which the denominator contains the total number of days in which the individual is under a duty to perform for the employer, and the numerator is the total number of those days spent in Minnesota. For purposes of this paragraph, off-season training activities, unless conducted at the team's facilities as part of a team imposed program, are not included in the total number of duty days. Bonuses earned as a result of play during the regular season or for participation in championship, play-off, or all-star games must be allocated under the formula. Signing bonuses are not subject to allocation under the formula if they are not conditional on playing any games for the team, are payable separately from any other compensation, and are nonrefundable; and
(ii) The amount of income to be assigned to Minnesota for an individual who is a nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's athletic or entertainment performance in Minnesota shall be determined by assigning to this state all income from performances or athletic contests in this state.
(3) For purposes of this section, amounts received by a nonresident as "retirement income" as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public Law 104-95, are not considered income derived from carrying on a trade or business or from wages or other compensation for work an employee performed in Minnesota, and are not taxable under this chapter.
(b) Income or gains from tangible property located in this state that is not employed in the business of the recipient of the income or gains must be assigned to this state.
(c) Income or gains from intangible personal property not employed in the business of the recipient of the income or gains must be assigned to this state if the recipient of the income or gains is a resident of this state or is a resident trust or estate.
Gain on the sale of a partnership interest is allocable to this state in the ratio of the original cost of partnership tangible property in this state to the original cost of partnership tangible property everywhere, determined at the time of the sale. If more than 50 percent of the value of the partnership's assets consists of intangibles, gain or loss from the sale of the partnership interest is allocated to this state in accordance with the sales factor of the partnership for its first full tax period immediately preceding the tax period of the partnership during which the partnership interest was sold.
Gain on the sale of an interest in a single member limited liability company that is disregarded for federal income tax purposes is allocable to this state as if the single member limited liability company did not exist and the assets of the limited liability company are personally owned by the sole member.
Gain on the sale of goodwill or income from a
covenant not to compete that is connected with a business operating all or
partially in Minnesota is allocated to this state to the extent that the income
from the business in the year preceding the year of sale was assignable allocable
to Minnesota under subdivision 3.
When an employer pays an employee for a covenant not to compete, the income allocated to this state is in the ratio of the employee's service in Minnesota in the calendar year preceding leaving the employment of the employer over the total services performed by the employee for the employer in that year.
(d) Income from winnings on a bet made by an individual while in Minnesota is assigned to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision 2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
(f) For the purposes of this section, working as an employee shall not be considered to be conducting a trade or business.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Minnesota Statutes 2014, section 290.31, subdivision 1, is amended to read:
Subdivision 1. Partners, not partnership, subject to tax. Except as provided under section 289A.35, paragraph (b), a partnership as such shall not be subject to the income tax imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons carrying on business as partners shall be liable for income tax only in their separate or individual capacities.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. Minnesota Statutes 2014, section 290A.19, is amended to read:
290A.19
OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
(a) The owner or managing agent of any property for which rent is paid for occupancy as a homestead must furnish a certificate of rent paid to a person who is a renter on December 31, in the form prescribed by the commissioner. If the renter moves before December 31, the owner or managing agent may give the certificate to the renter at the time of moving, or mail the certificate to the forwarding address if an address has been provided by the renter. The certificate must be made available to the renter before February 1 of the year following the year in which the rent was paid. The owner or managing agent must retain a duplicate of each certificate or an equivalent record showing the same information for a period of three years. The duplicate or other record must be made available to the commissioner upon request.
(b) The commissioner may require the
owner or managing agent, through a simple process, to furnish to the
commissioner on or before March 1 a copy of each certificate of rent paid
furnished to a renter for rent paid in the prior year, in the content, format,
and manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation, the commissioner,
after consulting with representatives of owners or managing agents, shall
develop an implementation and administration plan for the requirements of this
paragraph that attempts to minimize financial burdens, administration and compliance
costs, and takes into consideration existing systems of owners and managing
agents.
(c) For the purposes of this section, "owner" includes a park owner as defined under section 327C.01, subdivision 6, and "property" includes a lot as defined under section 327C.01, subdivision 3.
EFFECTIVE
DATE. This section is
effective for certificates of rent paid furnished to a renter for rent paid
after December 31, 2015.
Sec. 20. Minnesota Statutes 2014, section 291.016, subdivision 2, is amended to read:
Subd. 2. Additions. The following amounts, to the extent deducted in computing or otherwise excluded from the federal taxable estate, must be added in computing the Minnesota taxable estate:
(1) the amount of the deduction for state death taxes allowed under section 2058 of the Internal Revenue Code;
(2) the amount of the deduction for foreign death taxes allowed under section 2053(d) of the Internal Revenue Code; and
(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal Revenue Code, made by the decedent within three years of the date of death. For purposes of this clause, the amount of the addition equals the value of the gift under section 2512 of the Internal Revenue Code and excludes any value of the gift included in the federal estate.
EFFECTIVE
DATE. This section is
effective retroactively for estates of decedents dying after June 30, 2013.
Sec. 21. Minnesota Statutes 2014, section 291.016, subdivision 3, is amended to read:
Subd. 3. Subtraction. The following amounts, to the extent
included in computing the federal taxable estate, may be subtracted in
computing the Minnesota taxable estate but must not reduce the Minnesota
taxable estate to less than zero:
(1) the value of property subject to an
election under section 291.03, subdivision 1d; and
(2) the value of qualified small
business property under section 291.03, subdivision 9, and the value of
qualified farm property under section 291.03, subdivision 10, or the result of
$5,000,000 minus the amount for the year of death listed in clauses (1) to
(5) items (i) to (v), whichever is less, may be subtracted in
computing the Minnesota taxable estate but must not reduce the Minnesota
taxable estate to less than zero:
(1) (i) $1,200,000 for
estates of decedents dying in 2014;
(2) (ii) $1,400,000 for
estates of decedents dying in 2015;
(3) (iii) $1,600,000 for
estates of decedents dying in 2016;
(4) (iv) $1,800,000 for
estates of decedents dying in 2017; and
(5) (v) $2,000,000 for
estates of decedents dying in 2018 and thereafter.
EFFECTIVE
DATE. This section is
effective retroactively for estates of decedents dying after June 30, 2011.
Sec. 22. Minnesota Statutes 2014, section 291.03, subdivision 9, is amended to read:
Subd. 9. Qualified small business property. Property satisfying all of the following requirements is qualified small business property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of the assets of a trade or business or shares of stock or other ownership interests in a corporation or other entity engaged in a trade or business. Shares of stock in a corporation or an ownership interest in another type of entity do not qualify under this subdivision if the shares or ownership interests are traded on a public stock exchange at any time during the three-year period ending on the decedent's date of death. For purposes of this subdivision, an ownership interest includes the interest the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
(3) During the taxable year that ended before the decedent's death, the trade or business must not have been a passive activity within the meaning of section 469(c) of the Internal Revenue Code, and the decedent or the decedent's spouse must have materially participated in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided by United States Treasury Department regulation that substitutes material participation in prior taxable years for material participation in the taxable year that ended before the decedent's death.
(4) The gross annual sales of the trade or business were $10,000,000 or less for the last taxable year that ended before the date of the death of the decedent.
(5) The property does not consist of
include:
(i) cash,;
(ii) cash equivalents,;
(iii) publicly traded securities,;
or
(iv) any assets not used in the operation of the trade or business.
(6) For property consisting of
shares of stock or other ownership interests in an entity, the value of cash,
cash equivalents, publicly traded securities, or assets not used in the
operation of the trade or business held by the corporation or other entity items
described in clause (5) must be deducted from the value of the property
qualifying under this subdivision in proportion to the decedent's share of
ownership of the entity on the date of death excluded in the valuation
of the decedent's interest in the entity.
(6) (7) The decedent
continuously owned the property, including property the decedent is deemed to
own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for the
three-year period ending on the date of death of the decedent. In the case of a sole proprietor, if the
property replaced similar property within the three-year period, the
replacement property will be treated as having been owned for the three-year
period ending on the date of death of the decedent.
(7) (8) For three years
following the date of death of the decedent, the trade or business is not a
passive activity within the meaning of section 469(c) of the Internal Revenue
Code, and a family member materially participates in the operation of the trade
or business within the meaning of section 469(h) of the Internal Revenue Code,
excluding section 469(h)(3) of the Internal Revenue Code and any other
provision provided by United States Treasury Department regulation that
substitutes material participation in prior taxable years for material
participation in the three years following the date of death of the decedent.
(8) (9) The estate and the qualified heir elect to treat the property as qualified small business property and agree, in the form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable.
EFFECTIVE
DATE. This section is
effective retroactively for estates of decedents dying after June 30, 2011.
Sec. 23. Minnesota Statutes 2014, section 291.03, subdivision 11, is amended to read:
Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and before the death of the qualified heir, the qualified heir disposes of any interest in the qualified property, other than by a disposition to a family member, or a family member ceases to satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces qualified small business property excluded under subdivision 9 with similar property, then the qualified heir will not be treated as having disposed of an interest in the qualified property.
(b) The amount of the additional tax equals the amount of the exclusion claimed by the estate under subdivision 8, paragraph (d), multiplied by 16 percent.
(c) The additional tax under this subdivision is due on the day which is six months after the date of the disposition or cessation in paragraph (a).
(d) This subdivision shall not apply as
a result of any of the following:
(1) a portion of qualified farm
property consisting of less than one-fifth of the acreage of the property is
reclassified as class 2b property under section 273.13, subdivision 23, and the
qualified heir has not substantially altered the reclassified property during
the three-year holding period; or
(2) a portion of qualified farm
property classified as 2a property at the death of the decedent pursuant to
section 273.13, subdivision 23, paragraph (a), consisting of a residence,
garage, and immediately surrounding one acre of land is reclassified as 4bb
property during the three-year holding period, and the qualified heir has not
substantially altered the property.
EFFECTIVE
DATE. This section is
effective retroactively for estates of decedents dying after June 30, 2011.
Sec. 24. Minnesota Statutes 2014, section 291.031, is amended to read:
291.031
CREDIT.
(a) The estate of a nonresident decedent that is subject to tax under this chapter on the value of Minnesota situs property held in a pass-through entity is allowed a credit against the tax due under section 291.03 equal to the lesser of:
(1) the amount of estate or inheritance tax paid to another state that is attributable to the Minnesota situs property held in the pass-through entity; or
(2) the amount of tax paid under this
section due under section 291.03 attributable to the Minnesota situs
property held in the pass-through entity.
(b) The amount of tax attributable to the Minnesota situs property held in the pass-through entity must be determined by the increase in the estate or inheritance tax that results from including the market value of the property in the estate or treating the value as a taxable inheritance to the recipient of the property.
EFFECTIVE DATE. This section is effective retroactively for
estates of decedents dying after December 31, 2013.
Sec. 25. REPEALER.
(a) Minnesota Rules, part 8092.1400, is
repealed.
(b) Minnesota Rules, part 8092.2000, is
repealed.
EFFECTIVE
DATE. Paragraph (a) is
effective for taxable years beginning after December 31, 2015, except that
notifications from the Department of Revenue to employers regarding eligibility
to file an annual return for taxes withheld in calendar year 2016 remain in
force. Paragraph (b) is effective the
day following final enactment.
ARTICLE 13
DEPARTMENT
POLICY AND TECHNICAL PROVISIONS;
SPECIAL TAXES AND SALES TAXES
Section 1. Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read:
Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for apportionment, before the addition of the minimum fire state aid allocation amount under subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report. This amount must be reduced by the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations.
The total amount for apportionment in respect to fire state aid must not be less than two percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown Premium Report after subtracting the following amounts:
(1) the amount required to pay the state auditor's costs and expenses of the audits or exams of the firefighters relief associations; and
(2) one percent of the premiums reported by
town and farmers' township mutual insurance companies and mutual
property and casualty companies with total assets of $5,000,000 or less.
(b) The total amount for apportionment as police state aid is equal to 104 percent of the amount of premium taxes paid to the state on the premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report. The total amount for apportionment in respect to the police state aid program must not be less than two percent of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid to Police Premium Report.
(c) The commissioner shall calculate the percentage of increase or decrease reflected in the apportionment over or under the previous year's available state aid using the same premiums as a basis for comparison.
(d) In addition to the amount for apportionment of police state aid under paragraph (b), each year $100,000 must be apportioned for police state aid. An amount sufficient to pay this increase is annually appropriated from the general fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read:
Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed within 6-1/2 years after the due date of the return or the date the return was filed, whichever is later, if:
(1) the taxpayer omits from gross income an amount properly includable in it that is in excess of 25 percent of the amount of gross income stated in the return;
(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes reported in the return; or
(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross estate reported in the return.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read:
Subd. 2. Exemptions. The following entities are exempt from the tax imposed by this section:
(1) corporations exempt from tax under section 290.05;
(2) real estate investment trusts;
(3) regulated investment companies or a fund thereof; and
(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue Code;
(5) town and farmers' township
mutual insurance companies;
(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively to persons age 55 and over and are classified as homesteads under section 273.124, subdivision 3; and
(7) a qualified business as defined under section 469.310, subdivision 11, if for the taxable year all of its property is located in a job opportunity building zone designated under section 469.314 and all of its payroll is a job opportunity building zone payroll under section 469.310.
Entities not specifically exempted by this subdivision are subject to tax under this section, notwithstanding section 290.05.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read:
Subd. 2. Pharmacy
refund. A pharmacy may claim an
annual refund against the total amount of tax, if any, the pharmacy owes during
that calendar year under section 295.52, subdivision 4. The refund shall equal the amount paid by the
pharmacy to a wholesale drug distributor subject to tax under section 295.52,
subdivision 3, for legend drugs delivered by the pharmacy outside of Minnesota,
multiplied by the tax percentage specified in section 295.52, subdivision 3. If the amount of the refund exceeds the tax
liability of the pharmacy under section 295.52, subdivision 4, the commissioner
shall provide the pharmacy with a refund equal to the excess amount. Each qualifying pharmacy must apply for the
refund on the annual return as provided under section 295.55, subdivision 5
prescribed by the commissioner, on or before March 15 of the year following
the calendar year the legend drugs were delivered outside Minnesota. The refund must be claimed within 18
months from the date the drugs were delivered outside of Minnesota shall
not be allowed if the initial claim for refund is filed more than one year
after
the original due date of the return. Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due date of the return if a return is due or the date of the actual claim for refund, whichever is later.
EFFECTIVE
DATE. This section is
effective for qualifying legend drugs delivered outside Minnesota after
December 31, 2015.
Sec. 5. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision to read:
Subd. 9a. Bulk
storage or bulk storage facility. "Bulk
storage" or "bulk storage facility" means a single property, or contiguous
or adjacent properties used for a common purpose and owned or operated by the
same person, on or in which are located one or more stationary tanks that are
used singularly or in combination for the storage or containment of more than
1,100 gallons of petroleum.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read:
Subd. 33. Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel, regardless of its composition or properties, used to propel a motor vehicle.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read:
Subd. 42. Petroleum products. "Petroleum products" means all of the products defined in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read:
Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline blended with ethanol, and agricultural alcohol gasoline used in producing and generating power for propelling motor vehicles used on the public highways of this state. The tax is imposed on the first licensed distributor who received the product in Minnesota. For purposes of this section, gasoline is defined in section 296A.01, subdivisions 8b, 10, 18, 20, 23, 24, 25, 32, and 34. The tax is payable at the time and in the form and manner prescribed by the commissioner. The tax is payable at the rates specified in subdivision 3, subject to the exceptions and reductions specified in section 296A.17.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2014, section 297A.61, subdivision 10, is amended to read:
Subd. 10. Tangible personal property. (a) "Tangible personal property" means personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses. "Tangible personal property" includes, but is not limited to, electricity, water, gas, steam, and prewritten computer software.
(b) Tangible personal property does not include:
(1)
large ponderous machinery and equipment used in a business or production
activity which at common law would be considered to be real property;
(2) (1) property which is
subject to an ad valorem property tax;
(3) (2) property described in
section 272.02, subdivision 9, clauses (a) to (d);
(4) (3) property described in
section 272.03, subdivision 2, clauses (3) and (5); and
(5) (4) specified digital
products, or other digital products, transferred electronically.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Minnesota Statutes 2014, section 297A.82, subdivision 4, is amended to read:
Subd. 4. Exemptions. (a) The following transactions are exempt from the tax imposed in this chapter to the extent provided.
(b) The purchase or use of aircraft previously registered in Minnesota by a corporation or partnership is exempt if the transfer constitutes a transfer within the meaning of section 351 or 721 of the Internal Revenue Code.
(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of an aircraft for which a commercial use permit has been issued pursuant to section 360.654 is exempt, if the aircraft is resold while the permit is in effect.
(d) Air flight equipment when sold to, or
purchased, stored, used, or consumed by airline companies, as defined in
section 270.071, subdivision 4, is exempt.
For purposes of this subdivision, "air flight equipment"
includes airplanes and parts necessary for the repair and maintenance of such
air flight equipment, and flight simulators, but does not include airplanes
aircraft with a gross maximum takeoff weight of less than
30,000 pounds that are used on intermittent or irregularly timed flights.
(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in section 360.511 and approved by the Federal Aviation Administration, and which the seller delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter returned to a point within Minnesota, except in the course of interstate commerce or isolated and occasional use, and will be registered in another state or country upon its removal from Minnesota. This exemption applies even if the purchaser takes possession of the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes for a period not to exceed ten days prior to removing the aircraft from this state.
(f) The sale or purchase of the following items that relate to aircraft operated under Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: equipment and parts necessary for repair and maintenance of aircraft; and equipment and parts to upgrade and improve aircraft.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after December 31, 2016.
Sec. 11. Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read:
Subd. 4a. Deposit
in state airports fund. Tax revenue,
including interest and penalties, collected from the sale or purchase of an
aircraft taxable under this chapter must be deposited in the state airports
fund established in section 360.017. For
purposes of this subdivision, "revenue" does not include the revenue,
including interest and penalties, generated by the sales tax imposed under
section 297A.62, subdivision 1a, which must be deposited as provided under
article XI, section 15, of the Minnesota Constitution.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read:
Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal sanctions imposed by this chapter, a person, organization, or business entity possessing or selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed by this chapter has not been paid is liable for a tax of six percent of the ideal gross of each pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be assessed as if it were a full deal.
(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1) not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles, or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to 609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six percent of the gross receipts from that activity.
(c) The tax must may be
assessed by the commissioner. An
assessment must be considered a jeopardy assessment or jeopardy collection as
provided in section 270C.36. The
commissioner shall assess the tax based on personal knowledge or information
available to the commissioner. The
commissioner shall mail to the taxpayer at the taxpayer's last known address,
or serve in person, a written notice of the amount of tax, demand its immediate
payment, and, if payment is not immediately made, collect the tax by any method
described in chapter 270C, except that the commissioner need not await the
expiration of the times specified in chapter 270C. The tax assessed by the commissioner is
presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show its
incorrectness or invalidity. The tax
imposed under this subdivision does not apply to gambling that is exempt from
taxation under subdivision 2.
(d) A person, organization, or business
entity conducting gambling activity under this subdivision must file monthly
tax returns with the commissioner, in the form required by the commissioner. The returns must be filed on or before the
20th day of the month following the month in which the gambling activity
occurred. The tax imposed by this
section is due and payable at the time when the returns are required to be
filed.
(e) Notwithstanding any law to the
contrary, neither the commissioner nor a public employee may reveal facts
contained in a tax return filed with the commissioner of revenue as required by
this subdivision, nor can any information contained in the report or return be
used against the tax obligor in any criminal proceeding, unless independently
obtained, except in connection with a proceeding involving taxes due under this
section, or as provided in section 270C.055, subdivision 1. However, this paragraph does not prohibit the
commissioner from publishing statistics that do not disclose the identity of
tax obligors or the contents of particular returns or reports. Any person violating this paragraph is guilty
of a gross misdemeanor.
EFFECTIVE
DATE. This section is
effective for games played or purchased after June 30, 2016.
Sec. 13. Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read:
Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed municipal solid waste or upon the volume of nonmixed municipal solid waste for waste management services to manage the following materials:
(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside of Minnesota;
(2) recyclable materials that are separated for recycling by the generator, collected separately from other waste, and recycled, to the extent the price of the service for handling recyclable material is separately itemized on a bill to the generator;
(3) recyclable nonmixed municipal solid waste that is separated for recycling by the generator, collected separately from other waste, delivered to a waste facility for the purpose of recycling, and recycled;
(4) industrial waste, when it is transported to a facility owned and operated by the same person that generated it;
(5) mixed municipal solid waste from a recycling facility that separates or processes recyclable materials and reduces the volume of the waste by at least 85 percent, provided that the exempted waste is managed separately from other waste;
(6) recyclable materials that are separated from mixed municipal solid waste by the generator, collected and delivered to a waste facility that recycles at least 85 percent of its waste, and are collected with mixed municipal solid waste that is segregated in leakproof bags, provided that the mixed municipal solid waste does not exceed five percent of the total weight of the materials delivered to the facility and is ultimately delivered to a waste facility identified as a preferred waste management facility in county solid waste plans under section 115A.46;
(7) source-separated compostable waste
materials, if the waste is materials are delivered to a
facility exempted as described in this clause.
To initially qualify for an exemption, a facility must apply for an
exemption in its application for a new or amended solid waste permit to the
Pollution Control Agency. The first time
a facility applies to the agency it must certify in its application that it will
comply with the criteria in items (i) to (v) and the commissioner of the agency
shall so certify to the commissioner of revenue who must grant the exemption. The facility must annually apply to the
agency for certification to renew its exemption for the following year. The application must be filed according to
the procedures of, and contain the information required by, the agency. The commissioner of revenue shall grant the
exemption if the commissioner of the Pollution Control Agency finds and certifies
to the commissioner of revenue that based on an evaluation of the composition
of incoming waste and residuals and the quality and use of the product:
(i) generators separate materials at the source;
(ii) the separation is performed in a manner appropriate to the technology specific to the facility that:
(A) maximizes the quality of the product;
(B) minimizes the toxicity and quantity of residuals
rejects; and
(C) provides an opportunity for significant improvement in the environmental efficiency of the operation;
(iii) the operator of the facility educates generators, in coordination with each county using the facility, about separating the waste to maximize the quality of the waste stream for technology specific to the facility;
(iv)
process residuals rejects do not exceed 15 percent of the weight
of the total material delivered to the facility; and
(v) the final product is accepted for use;
(8) waste and waste by-products for which the tax has been paid; and
(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution Control Agency.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read:
Subd. 2. Town
and farmers' Township mutual insurance. A tax is imposed on town and farmers'
township mutual insurance companies.
The rate of tax is equal to one percent of gross premiums less return
premiums on all direct business received by the insurer or agents of the
insurer in Minnesota, in cash or otherwise, during the year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read:
Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross premiums, less return premiums, on all direct business received by any licensed foreign or domestic fire insurance company on property in a city of the first class, or by its agents for it, in cash or otherwise.
(b) By July 31 and December 31 of each
year, the commissioner of management and budget shall pay to each city
of the first class a warrant for an amount equal to the total amount of the
surcharge on the premiums collected within that city since the previous
payment.
(c) The treasurer of the city shall place the money received under this subdivision in a special account or fund to defray all or a portion of the employer contribution requirement of public employees police and fire plan coverage for city firefighters.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read:
Subd. 3. Appropriation. The amount necessary to make the payments
required under this section is appropriated to the commissioner of
management and budget from the general fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 17. Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read:
Subd. 3b. Deductions. (a) For purposes of determining taxable income under subdivision 3, the deductions from gross income include only those expenses necessary to convert raw ores to marketable quality. Such expenses include costs associated with refinement but do not include expenses such as transportation, stockpiling, marketing, or marine insurance that are incurred after marketable ores are produced, unless the expenses are included in gross income. The allowable deductions from a mine or plant that mines and produces more than one mineral, metal, or energy resource must be determined separately for the purposes of computing the deduction in section 290.01, subdivision 19c, clause (8). These deductions may be combined on one occupation tax return to arrive at the deduction from gross income for all production.
(b) The provisions of section 290.01,
subdivisions 19c, clauses (6) and (8), and 19d, clauses (6) and (9) (8),
are not used to determine taxable income.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read:
Subd. 4c. Special
deductions; net operating loss. (a)
For purposes of determining taxable income under subdivision 4, the provisions
of section 290.01, subdivisions 19c, clauses (6) and (8), and 19d, clauses (6)
and (9) (8), are not used to determine taxable income.
(b) The amount of net operating loss
incurred in a taxable year beginning before January 1, 1990, that may be
carried over to a taxable year beginning after December 31, 1989, is the amount
of net operating loss carryover determined in the calculation of the
hypothetical corporate franchise tax under Minnesota Statutes 1988, sections
298.40 and 298.402.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 14
DEPARTMENT
OF REVENUE TECHNICAL AND POLICY;
PROPERTY TAX PROVISIONS
Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read:
Subd. 2. Income property assessment data. The following data collected by political subdivisions and the state from individuals or business entities concerning income properties are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:
(a) detailed income and expense figures;
(b) average vacancy factors;
(c) verified net rentable areas or net usable areas, whichever is appropriate;
(d) anticipated income and expenses;
(e) projected vacancy factors; and
(f) lease information.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read:
Subd. 2. Air
commerce. (a) "Air
commerce" means the transportation by aircraft of persons or property for
hire in interstate, intrastate, or international transportation on regularly
scheduled flights or on intermittent or irregularly timed flights by airline
companies and includes transportation by any airline company making three or
more flights in or out of Minnesota, or within Minnesota, during a calendar
year.
(b) "Air commerce" includes
but is not limited to an intermittent or irregularly timed flight, a flight
arranged at the convenience of an airline and the person contracting for the
transportation, or a charter flight. It
includes any airline company making three or more flights in or out of
Minnesota during a calendar year.
(c) "Air commerce" does not
include casual transportation for hire by aircraft commonly owned and used for
private air flight purposes if the person furnishing the transportation does
not hold out to be engaged regularly in transportation for hire.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read:
Subd. 7. Flight
property. "Flight
property" means all aircraft and flight equipment used in connection
therewith, including spare flight equipment.
Flight property also includes computers and computer software used in
operating, controlling, or regulating aircraft and flight equipment. Flight property does not include aircraft
with a maximum takeoff weight of less than 30,000 pounds.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read:
Subd. 8. Person. "Person" means any an
individual, corporation, firm, copartnership, company, or association, and
includes any guardian, trustee, executor, administrator, receiver, conservator,
or any person acting in any fiduciary capacity therefor trust, estate,
fiduciary, partnership, company, corporation, limited liability company,
association, governmental unit or agency, public or private organization of any
kind, or other legal entity.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision to read:
Subd. 10. Intermittent
or irregularly timed flights. "Intermittently
or irregularly timed flights" means any flight in which the departure
time, departure location, and arrival location are specifically negotiated with
the customer or the customer's representative, including but not limited to
charter flights.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read:
Subd. 2. Assessment
of flight property. Flight property
that is owned by, or is leased, loaned, or otherwise made available to an
airline company operating in Minnesota shall be assessed and appraised annually
by the commissioner with reference to its value on January 2 of the assessment
year in the manner prescribed by sections 270.071 to 270.079. Aircraft with a gross weight of less than
30,000 pounds and used on intermittent or irregularly timed flights shall be
excluded from the provisions of sections 270.071 to 270.079.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read:
Subd. 3. Report
by airline company. (a) Each
year, on or before July 1, every airline company engaged in air commerce in
this state shall file with the commissioner a report under oath setting forth
specifically the information prescribed by the commissioner to enable the
commissioner to make the assessment required in sections 270.071 to 270.079,
unless the commissioner determines that the airline company or person should
be excluded from is exempt from filing because its activities do
not constitute air commerce as defined herein.
(b) The commissioner shall prescribe the
content, format, and manner of the report pursuant to section 270C.30, except
that a "law administered by the commissioner" includes the property
tax laws. If a report is made by
electronic means, the taxpayer's signature is defined pursuant to section
270C.304, except that a "law administered by the commissioner"
includes the property tax laws.
EFFECTIVE
DATE. The amendment to
paragraph (a) is effective for reports filed in 2017 and thereafter. The amendment adding paragraph (b) is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision to read:
Subd. 3a. Commissioner
filed reports. If an airline
company fails to file a report required by subdivision 3, the commissioner may,
from information in the commissioner's possession or obtainable by the
commissioner, make and file a report for the airline company, or may issue a
notice of net tax capacity and tax under section 270.075, subdivision 2.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision to read:
Subd. 6. Reassessment
orders. If the State Board of
Equalization determines that a considerable amount of property has been
undervalued or overvalued compared to like property such that the assessment is
grossly unfair or inequitable, the State Board of Equalization may, pursuant to
its responsibilities under subdivisions 2 and 3, issue orders to the county
assessor to reassess all or any part of a parcel in a county.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 10. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read:
Subdivision 1. Initial
report. Each county assessor shall
file by April 1 with the commissioner a copy of the abstract that will be acted
upon by the local and county boards of review.
The abstract must list the real and personal property in the county
itemized by assessment districts. The
assessor of each county in the state shall file with the commissioner, within
ten working days following final action of the local board of review or
equalization and within five days following final action of the county board of
equalization, any changes made by the local or county board. The information must be filed in the manner
prescribed by the commissioner. It
must be accompanied by a printed or typewritten copy of the proceedings of the
appropriate board.
EFFECTIVE
DATE. This section is
effective for county boards of appeal and equalization meetings held in 2017
and thereafter.
Sec. 11. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
Subd. 9. Personal property; exceptions. Except for the taxable personal property enumerated below, all personal property and the property described in section 272.03, subdivision 1, paragraphs (c) and (d), shall be exempt.
The following personal property shall be taxable:
(a) personal property which is part of (1)
an electric generating, transmission, or distribution system or; (2)
a pipeline system transporting or distributing water, gas, crude oil, or
petroleum products; or (3) mains and pipes used in the
distribution of steam or hot or chilled water for heating or cooling buildings
and structures;
(b) railroad docks and wharves which are part of the operating property of a railroad company as defined in section 270.80;
(c) personal property defined in section 272.03, subdivision 2, clause (3);
(d) leasehold or other personal property interests which are taxed pursuant to section 272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law providing the property is taxable as if the lessee or user were the fee owner;
(e) manufactured homes and sectional structures, including storage sheds, decks, and similar removable improvements constructed on the site of a manufactured home, sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph (f); and
(f) flight property as defined in section 270.071.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read:
Subd. 2. Definitions. (a) For the purposes of this section, the term:
(1) "wind energy conversion system" has the meaning given in section 216C.06, subdivision 19, and also includes a substation that is used and owned by one or more wind energy conversion facilities;
(2) "large scale wind energy
conversion system" means a wind energy conversion system of more than
12 megawatts, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b);
(3) "medium scale wind energy conversion system" means a wind energy conversion system of over two and not more than 12 megawatts, as measured by the nameplate capacity of the system or as combined with other systems as provided in paragraph (b); and
(4) "small scale wind energy conversion system" means a wind energy conversion system of two megawatts and under, as measured by the nameplate capacity of the system or as combined with other systems as provided in paragraph (b).
(b) For systems installed and contracted for after January 1, 2002, the total size of a wind energy conversion system under this subdivision shall be determined according to this paragraph. Unless the systems are interconnected with different distribution systems, the nameplate capacity of one wind energy conversion system shall be combined with the nameplate capacity of any other wind energy conversion system that is:
(1) located within five miles of the wind energy conversion system;
(2) constructed within the same calendar
year 12-month period as the wind energy conversion system; and
(3) under common ownership.
In the case of a dispute, the commissioner of commerce shall determine the total size of the system, and shall draw all reasonable inferences in favor of combining the systems.
(c) In making a determination under paragraph (b), the commissioner of commerce may determine that two wind energy conversion systems are under common ownership when the underlying ownership structure contains similar persons or entities, even if the ownership shares differ between the two systems. Wind energy conversion systems are not under common ownership solely because the same person or entity provided equity financing for the systems.
EFFECTIVE
DATE. This section is
effective for reports filed in 2017 and thereafter.
Sec. 13. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision to read:
Subd. 8. Extension. The commissioner may, for good cause,
extend the time for filing the report required by subdivision 4. The extension must not exceed 15 days.
EFFECTIVE
DATE. This section is
effective for reports filed in 2017 and thereafter.
Sec. 14. Minnesota Statutes 2014, section 273.032, is amended to read:
273.032
MARKET VALUE DEFINITION.
(a) Unless otherwise provided, for the purpose of determining any property tax levy limitation based on market value or any limit on net debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market value, any qualification to receive state aid based on market value, or any state aid amount based on market value, the terms "market value," "estimated market value," and "market valuation," whether equalized or unequalized, mean the estimated market value of taxable property within the local unit of government before any of the following or similar adjustments for:
(1) the market value exclusions under:
(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties);
(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
(v) section 273.11, subdivision 22
(qualifying lead hazardous reduction projects);
(vi) (v) section 273.13,
subdivision 34 (homestead of a disabled veteran or family caregiver); or
(vii) (vi) section 273.13,
subdivision 35 (homestead market value exclusion); or
(2) the deferment of value under:
(i) the Minnesota Agricultural Property Tax Law, section 273.111;
(ii) the Aggregate Resource Preservation Law, section 273.1115;
(iii) the Minnesota Open Space Property Tax Law, section 273.112;
(iv) the rural preserves property tax program, section 273.114; or
(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
(3) the adjustments to tax capacity for:
(i) tax increment financing under sections 469.174 to 469.1794;
(ii) fiscal disparities under chapter 276A or 473F; or
(iii) powerline credit under section 273.425.
(b) Estimated market value under paragraph (a) also includes the market value of tax-exempt property if the applicable law specifically provides that the limitation, qualification, or aid calculation includes tax-exempt property.
(c) Unless otherwise provided, "market value," "estimated market value," and "market valuation" for purposes of property tax levy limitations and calculation of state aid, refer to the estimated market value for the previous assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the estimated market value as last finally equalized.
(d) For purposes of a provision of a home rule charter or of any special law that is not codified in the statutes and that imposes a levy limitation based on market value or any limit on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market value, the terms "market value," "taxable market value," and "market valuation," whether equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read:
Subd. 7. Division
of duties between local and county assessor.
The duty of the duly appointed local assessor shall be to view and
appraise the value of all property as provided by law, but all the book work
shall be done by the county assessor, or the assessor's assistants, and the
value of all property subject to assessment and taxation shall be determined by
the county assessor, except as otherwise hereinafter provided. If directed by the county assessor, the local
assessor shall must perform the duties enumerated in subdivision
8, clause (16), and must enter construction and valuation data into the
records in the manner prescribed by the county assessor.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 16. Minnesota Statutes 2014, section 273.08, is amended to read:
273.08
ASSESSOR'S DUTIES.
The assessor shall actually view, and
determine the market value of each tract or lot of real property listed for
taxation, including the value of all improvements and structures thereon, at maximum
intervals of five years and shall enter the value opposite each description. When directed by the county assessor,
local assessors must enter construction and valuation data into the records in
the manner prescribed by the county assessor.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 17. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision to read:
Subd. 3. Compliance. A county assessor, or a city assessor
having the powers of a county assessor, who does not comply with the timely
notice requirement under subdivision 1 must:
(1) mail an additional valuation notice
to each person who was not provided timely notice; and
(2) convene a supplemental local board
of appeal and equalization or local review session no sooner than ten days
after sending the additional notices required by clause (1).
EFFECTIVE
DATE. This section is
effective for valuation notices sent in 2017 and thereafter.
Sec. 18. Minnesota Statutes 2014, section 273.13, subdivision 22, is amended to read:
Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and (c), real estate which is residential and used for homestead purposes is class 1a. In the case of a duplex or triplex in which one of the units is used for homestead purposes, the entire property is deemed to be used for homestead purposes. The market value of class 1a property must be determined based upon the value of the house, garage, and land.
The first $500,000 of market value of class 1a property has a net classification rate of one percent of its market value; and the market value of class 1a property that exceeds $500,000 has a classification rate of 1.25 percent of its market value.
(b) Class 1b property includes homestead real estate or homestead manufactured homes used for the purposes of a homestead by:
(1) any person who is blind as defined in section 256D.35, or the blind person and the blind person's spouse;
(2) any person who is permanently and totally disabled or by the disabled person and the disabled person's spouse; or
(3) the surviving spouse of a permanently and totally disabled veteran homesteading a property classified under this paragraph for taxes payable in 2008.
Property is classified and assessed under clause (2) only if the government agency or income-providing source certifies, upon the request of the homestead occupant, that the homestead occupant satisfies the disability requirements of this paragraph, and that the property is not eligible for the valuation exclusion under subdivision 34.
Property is classified and assessed under paragraph (b) only if the commissioner of revenue or the county assessor certifies that the homestead occupant satisfies the requirements of this paragraph.
Permanently and totally disabled for the
purpose of this subdivision means a condition which is permanent in nature and
totally incapacitates the person from working at an occupation which brings the
person an income. The first $50,000
market value of class 1b property has a net classification rate of .45 percent
of its market value. The remaining
market value of class 1b property has a classification rate using the rates
for is classified as class 1a or class 2a property, whichever is
appropriate, of similar market value.
(c) Class 1c property is commercial use real and personal property that abuts public water as defined in section 103G.005, subdivision 15, and is devoted to temporary and seasonal residential occupancy for recreational purposes but not devoted to commercial purposes for more than 250 days in the year preceding the year of assessment, and that includes a portion used as a homestead by the owner, which includes a dwelling occupied as a homestead by a shareholder of a corporation that owns the resort, a partner in a partnership that owns the resort, or a member of a limited liability company that owns the resort even if the title to the homestead is held by the corporation, partnership, or limited liability company. For purposes of this paragraph, property is devoted to a commercial purpose on a specific day if any portion of the property, excluding the portion used exclusively as a homestead, is used for residential occupancy and a fee is charged for residential occupancy. Class 1c property must contain three or more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site equipped with water and electrical hookups for recreational vehicles. Class 1c property must provide recreational activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina services, launch services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use the property is transferred to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies for class 1c even though it may remain available for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of the rental
agreement, as long as the use of the camping pad does not exceed 250 days. If the same owner owns two separate parcels that are located in the same township, and one of those properties is classified as a class 1c property and the other would be eligible to be classified as a class 1c property if it was used as the homestead of the owner, both properties will be assessed as a single class 1c property; for purposes of this sentence, properties are deemed to be owned by the same owner if each of them is owned by a limited liability company, and both limited liability companies have the same membership. The portion of the property used as a homestead is class 1a property under paragraph (a). The remainder of the property is classified as follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value is tier II, and any remaining market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to temporary and seasonal residential occupancy for recreation purposes in which all or a portion of the property was devoted to commercial purposes for not more than 250 days in the year preceding the year of assessment desiring classification as class 1c, must submit a declaration to the assessor designating the cabins or units occupied for 250 days or less in the year preceding the year of assessment by January 15 of the assessment year. Those cabins or units and a proportionate share of the land on which they are located must be designated as class 1c as otherwise provided. The remainder of the cabins or units and a proportionate share of the land on which they are located must be designated as class 3a commercial. The owner of property desiring designation as class 1c property must provide guest registers or other records demonstrating that the units for which class 1c designation is sought were not occupied for more than 250 days in the year preceding the assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility operated on a commercial basis not directly related to temporary and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
(d) Class 1d property includes structures that meet all of the following criteria:
(1) the structure is located on property that is classified as agricultural property under section 273.13, subdivision 23;
(2) the structure is occupied exclusively by seasonal farm workers during the time when they work on that farm, and the occupants are not charged rent for the privilege of occupying the property, provided that use of the structure for storage of farm equipment and produce does not disqualify the property from classification under this paragraph;
(3) the structure meets all applicable health and safety requirements for the appropriate season; and
(4) the structure is not salable as residential property because it does not comply with local ordinances relating to location in relation to streets or roads.
The market value of class 1d property has the same classification rates as class 1a property under paragraph (a).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read:
Subdivision 1. Listing
and assessment in county. The
personal property of express, stage and transportation companies, and of
pipeline companies engaged in the business of transporting natural gas,
gasoline, crude oil, or other petroleum products, except as
otherwise provided by law, shall be listed and assessed in the county, town or
district where the same is usually kept.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 20. Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read:
Subd. 2. Listing
and assessment by commissioner. The
personal property, consisting of the pipeline system of mains, pipes, and
equipment attached thereto, of pipeline companies and others engaged in the
operations or business of transporting natural gas, gasoline, crude oil, or
other petroleum products by pipelines, shall be listed with and assessed by
the commissioner of revenue and the values provided to the city or county
assessor by order. This subdivision
shall not apply to the assessment of the products transported through the
pipelines nor to the lines of local commercial gas companies engaged primarily
in the business of distributing gas products to consumers at
retail nor to pipelines used by the owner thereof to supply natural gas or
other petroleum products exclusively for such owner's own consumption and
not for resale to others. If more than
85 percent of the natural gas or other petroleum products actually
transported over the pipeline is used for the owner's own consumption and not
for resale to others, then this subdivision shall not apply; provided, however,
that in that event, the pipeline shall be assessed in proportion to the
percentage of gas products actually transported over such
pipeline that is not used for the owner's own consumption. On or before August 1, the commissioner shall
certify to the auditor of each county, the amount of such personal property
assessment against each company in each district in which such property is
located. If the commissioner determines that
the amount of personal property assessment certified on or before August 1 is
in error, the commissioner may issue a corrected certification on or before
October 1. The commissioner may correct
errors that are merely clerical in nature until December 31.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 21. Minnesota Statutes 2014, section 273.372, subdivision 1, is amended to read:
Subdivision 1. Scope. (a) As provided in this section, an
appeal by a utility or railroad company concerning property for which the
commissioner of revenue has provided the city or county assessor with
valuations by order, or for which the commissioner has recommended values to
the city or county assessor, must be brought against the commissioner, and
not against the county or taxing district where the property is located. Service must be made on the commissioner
only, and not on the county or taxing district.
(b) This section governs administrative appeals and appeals to court of a claim that utility or railroad operating property has been partially, unfairly, or unequally assessed, or assessed at a valuation greater than its real or actual value, misclassified, or that the property is exempt. This section applies only to property described in sections 270.81, subdivision 1, 273.33, 273.35, 273.36, and 273.37, and only with regard to taxable net tax capacities that have been provided to the city or county by the commissioner and which have not been changed by city or county. If the taxable net tax capacity being appealed is not the taxable net tax capacity established by the commissioner, or if the appeal claims that the tax rate applied against the parcel is incorrect, or that the tax has been paid, this section does not apply.
EFFECTIVE
DATE. This section is
effective for appeals of valuations made in assessment year 2017 and
thereafter.
Sec. 22. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read:
Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required to be brought against the commissioner under this section, the petition initiating the appeal must be served on the commissioner and must be filed with the Tax Court in Ramsey County, as provided in paragraph (b) or (c).
(b) If the appeal to court is from an order of the commissioner, it must be brought under chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2, except that when the provisions of this section conflict with chapter 271 or 278, this section prevails. In addition, the petition must include all the parcels encompassed by that order which the petitioner claims have been partially, unfairly, or unequally assessed, assessed
at a valuation greater than their real or actual value, misclassified, or are exempt. For this purpose, an order of the commissioner is either (1) a certification or notice of value by the commissioner for property described in subdivision 1, or (2) the final determination by the commissioner of either an administrative appeal conference or informal administrative appeal described in subdivision 4.
(c) If the appeal is from the tax that results from implementation of the commissioner's order, certification, or recommendation, it must be brought under chapter 278, and the provisions in that chapter apply, except that service shall be on the commissioner only and not on the local officials specified in section 278.01, subdivision 1, and if any other provision of this section conflicts with chapter 278, this section prevails. In addition, the petition must include either all the utility parcels or all the railroad parcels in the state in which the petitioner claims an interest and which the petitioner claims have been partially, unfairly, or unequally assessed, assessed at a valuation greater than their real or actual value, misclassified, or are exempt.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 23. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read:
Subd. 4. Administrative appeals. (a) Companies that submit the reports under section 270.82 or 273.371 by the date specified in that section, or by the date specified by the commissioner in an extension, may appeal administratively to the commissioner prior to bringing an action in court.
(b) Companies that must submit
reports under section 270.82 must submit file a written request to
for an appeal with the commissioner for a conference within ten
30 days after the notice date of the commissioner's valuation
certification or other notice to the company, or by June 15,
whichever is earlier. For
purposes of this section, the term "notice date" means the date of
the valuation certification, commissioner's order, recommendation, or other
notice.
(c) Companies that submit reports under
section 273.371 must submit a written request to the commissioner for a
conference within ten days after the date of the commissioner's valuation
certification or notice to the company, or by July 1, whichever is earlier. The appeal need not be in any particular
form but must contain the following information:
(1) name and address of the company;
(2) the date;
(3) its Minnesota identification number;
(4) the assessment year or period involved;
(5) the findings in the valuation that
the company disputes;
(6) a summary statement specifying its
reasons for disputing each item; and
(7) the signature of the company's duly
authorized agent or representative.
(d) When requested in writing and within
the time allowed for filing an administrative appeal, the commissioner may
extend the time for filing an appeal for a period of not more than 15 days from
the expiration of the time for filing the appeal.
(d)
(e) The commissioner shall conduct the conference either in person or
by telephone upon the commissioner's entire files and records and such
further information as may be offered. The
conference must be held no later than 20 days after the date of the commissioner's
valuation certification or notice to the company, or by the date specified by
the commissioner in an extension request for an appeal. Within 60 30 days after the
conference the commissioner shall make a final determination of the matter and
shall notify the company promptly of the determination. The conference is not a contested case
hearing subject to chapter 14.
(e) In addition to the opportunity for a
conference under paragraph (a), the commissioner shall also provide the
railroad and utility companies the opportunity to discuss any questions or
concerns relating to the values established by the commissioner through
certification or notice in a less formal manner. This does not change or modify the deadline
for requesting a conference under paragraph (a), the deadline in section 271.06
for appealing an order of the commissioner, or the deadline in section 278.01
for appealing property taxes in court.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 24. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision to read:
Subd. 5. Agreement
determining valuation. When
it appears to be in the best interest of the state, the commissioner may settle
any matter under consideration regarding an appeal filed under this section. The agreement must be in writing and signed
by the commissioner and the company or the company's authorized representative. The agreement is final and conclusive, and
except upon a showing of fraud, malfeasance, or misrepresentation of a material
fact, the case may not be reopened as to the matters agreed upon.
EFFECTIVE
DATE. This section is
effective for assessment year 2017 and thereafter.
Sec. 25. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision to read:
Subd. 6. Dismissal
of administrative appeal. If
a taxpayer files an administrative appeal from an order of the commissioner and
also files an appeal to the tax court for that same order of the commissioner,
the administrative appeal is dismissed and the commissioner is no longer
required to make the determination of appeal under subdivision 4.
EFFECTIVE
DATE. This section is
effective beginning with assessment year 2016.
Sec. 26. [273.88]
EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
After making the apportionment provided
in Minnesota Rules, part 8100.0600, the commissioner must equalize the values
of the operating structures to the level accepted by the State Board of
Equalization if the appropriate sales ratio for each county, as conducted by
the Department of Revenue pursuant to section 270.12, subdivision 2, clause
(6), is outside the range accepted by the State Board of Equalization. The commissioner must not equalize the value
of the operating structures if the sales ratio determined pursuant to this
subdivision is within the range accepted by the State Board of Equalization.
EFFECTIVE
DATE. This section is
effective beginning with assessment year 2016.
Sec. 27. Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read:
Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board of a town, or the council or other governing body of a city, is the local board of appeal and equalization except (1) in cities whose charters provide for a board of equalization or (2) in any city or town that has transferred its local board of review power and duties to the county board as provided in subdivision 3. The county assessor shall fix a day and time
when
the board or the local board of equalization shall meet in the
assessment districts of the county. Notwithstanding
any law or city charter to the contrary, a city board of equalization shall be
referred to as a local board of appeal and equalization. On or before February 15 of each year the
assessor shall give written notice of the time to the city or town clerk. Notwithstanding the provisions of any charter
to the contrary, the meetings must be held between April 1 and May 31 each year. The clerk shall give published and posted
notice of the meeting at least ten days before the date of the meeting.
The board shall meet either at a central location within the county or at the office of the clerk to review the assessment and classification of property in the town or city. No changes in valuation or classification which are intended to correct errors in judgment by the county assessor may be made by the county assessor after the board has adjourned in those cities or towns that hold a local board of review; however, corrections of errors that are merely clerical in nature or changes that extend homestead treatment to property are permitted after adjournment until the tax extension date for that assessment year. The changes must be fully documented and maintained in the assessor's office and must be available for review by any person. A copy of the changes made during this period in those cities or towns that hold a local board of review must be sent to the county board no later than December 31 of the assessment year.
(b) The board shall determine whether the taxable property in the town or city has been properly placed on the list and properly valued by the assessor. If real or personal property has been omitted, the board shall place it on the list with its market value, and correct the assessment so that each tract or lot of real property, and each article, parcel, or class of personal property, is entered on the assessment list at its market value. No assessment of the property of any person may be raised unless the person has been duly notified of the intent of the board to do so. On application of any person feeling aggrieved, the board shall review the assessment or classification, or both, and correct it as appears just. The board may not make an individual market value adjustment or classification change that would benefit the property if the owner or other person having control over the property has refused the assessor access to inspect the property and the interior of any buildings or structures as provided in section 273.20. A board member shall not participate in any actions of the board which result in market value adjustments or classification changes to property owned by the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a board member has a financial interest. The relationship may be by blood or marriage.
(c) A local board may reduce assessments upon petition of the taxpayer but the total reductions must not reduce the aggregate assessment made by the county assessor by more than one percent. If the total reductions would lower the aggregate assessments made by the county assessor by more than one percent, none of the adjustments may be made. The assessor shall correct any clerical errors or double assessments discovered by the board without regard to the one percent limitation.
(d) A local board does not have authority to grant an exemption or to order property removed from the tax rolls.
(e) A majority of the members may act at the meeting, and adjourn from day to day until they finish hearing the cases presented. The assessor shall attend and take part in the proceedings, but must not vote. The county assessor, or an assistant delegated by the county assessor shall attend the meetings. The board shall list separately all omitted property added to the list by the board and all items of property increased or decreased, with the market value of each item of property, added or changed by the board. The county assessor shall enter all changes made by the board.
(f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel, or by written communication before the board after being duly notified of the board's intent to raise the assessment of the property, or if a person feeling aggrieved by an assessment or classification fails to apply for a review of the assessment or classification, the person may not appear before the county board of appeal and equalization for a review. This paragraph does not apply if an assessment was made after the local board meeting, as provided in section 273.01, or if the person can establish not having received notice of market value at least five days before the local board meeting.
(g) The local board must complete its work and adjourn within 20 days from the time of convening stated in the notice of the clerk, unless a longer period is approved by the commissioner of revenue. No action taken after that date is valid. All complaints about an assessment or classification made after the meeting of the board must be heard and determined by the county board of equalization. A nonresident may, at any time, before the meeting of the board file written objections to an assessment or classification with the county assessor. The objections must be presented to the board at its meeting by the county assessor for its consideration.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 28. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read:
Subdivision 1. Members; meetings; rules for equalizing assessments. The county commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be present, the deputy county auditor, or, if there is no deputy, the court administrator of the district court, shall form a board for the equalization of the assessment of the property of the county, including the property of all cities whose charters provide for a board of equalization. This board shall be referred to as the county board of appeal and equalization. The board shall meet annually, on the date specified in section 274.14, at the office of the auditor. Each member shall take an oath to fairly and impartially perform duties as a member. Members shall not participate in any actions of the board which result in market value adjustments or classification changes to property owned by the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a board member has a financial interest. The relationship may be by blood or marriage. The board shall examine and compare the returns of the assessment of property of the towns or districts, and equalize them so that each tract or lot of real property and each article or class of personal property is entered on the assessment list at its market value, subject to the following rules:
(1) The board shall raise the valuation of each tract or lot of real property which in its opinion is returned below its market value to the sum believed to be its market value. The board must first give notice of intention to raise the valuation to the person in whose name it is assessed, if the person is a resident of the county. The notice must fix a time and place for a hearing.
(2) The board shall reduce the valuation of each tract or lot which in its opinion is returned above its market value to the sum believed to be its market value.
(3) The board shall raise the valuation of each class of personal property which in its opinion is returned below its market value to the sum believed to be its market value. It shall raise the aggregate value of the personal property of individuals, firms, or corporations, when it believes that the aggregate valuation, as returned, is less than the market value of the taxable personal property possessed by the individuals, firms, or corporations, to the sum it believes to be the market value. The board must first give notice to the persons of intention to do so. The notice must set a time and place for a hearing.
(4) The board shall reduce the valuation of each class of personal property that is returned above its market value to the sum it believes to be its market value. Upon complaint of a party aggrieved, the board shall reduce the aggregate valuation of the individual's personal property, or of any class of personal property for which the individual is assessed, which in its opinion has been assessed at too large a sum, to the sum it believes was the market value of the individual's personal property of that class.
(5) The board must not reduce the aggregate value of all the property of its county, as submitted to the county board of equalization, with the additions made by the auditor under this chapter, by more than one percent of its whole valuation. The board may raise the aggregate valuation of real property, and of each class of personal property, of the county, or of any town or district of the county, when it believes it is below the market value of the property, or class of property, to the aggregate amount it believes to be its market value.
(6) The board shall change the classification of any property which in its opinion is not properly classified.
(7) The board does not have the authority to grant an exemption or to order property removed from the tax rolls.
(8) The board may not make an individual
market value adjustment or classification change that would benefit property if
the owner or other person having control over the property has refused the
assessor access to inspect the property and the interior of any buildings or
structures as provided in section 273.20.
EFFECTIVE
DATE. This section is
effective for county board of appeal and equalization meetings in 2017 and
thereafter.
Sec. 29. Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read:
Subd. 3.
Proof of compliance; transfer of
duties. (a) Any county that conducts
county boards of appeal and equalization meetings must provide proof to the
commissioner by December 1, 2009, and each year thereafter, February
1 that it is in compliance with the requirements of subdivision 2. Beginning in 2009, This notice must
also verify that there was a quorum of voting members at each meeting of the
board of appeal and equalization in the current previous year. A county that does not comply with these
requirements is deemed to have transferred its board of appeal and equalization
powers to the special board of equalization appointed pursuant to section
274.13, subdivision 2, beginning with the following year's assessment and
continuing unless the powers are reinstated under paragraph (c). A county that does not comply with the
requirements of subdivision 2 and has not appointed a special board of
equalization shall appoint a special board of equalization before the following
year's assessment.
(b) The county shall notify the taxpayers when the board of appeal and equalization for a county has been transferred to the special board of equalization under this subdivision and, prior to the meeting time of the special board of equalization, the county shall make available to those taxpayers a procedure for a review of the assessments, including, but not limited to, open book meetings. This alternate review process must take place in April and May.
(c) A county board whose powers are
transferred to the special board of equalization under this subdivision may be reinstated by resolution of the county board
and upon proof of compliance with the requirements of subdivision 2. The resolution and proofs must be provided to
the commissioner by December February 1 in order to be effective
for the following current year's assessment.
(d) If a person who was entitled to appeal to the county board of appeal and equalization or to the county special board of equalization is not able to do so in a particular year because the county board or special board did not meet the quorum and training requirements in this section and section 274.13, or because the special board was not appointed, that person may instead appeal to the commissioner of revenue, provided that the appeal is received by the commissioner prior to August 1. The appeal is not subject to either chapter 14 or section 270C.92. The commissioner must issue an appropriate order to the county assessor in response to each timely appeal, either upholding or changing the valuation or classification of the property. Prior to October 1 of each year, the commissioner must charge and bill the county where the property is located $500 for each tax parcel covered by an order issued under this paragraph in that year. Amounts received by the commissioner under this paragraph must be deposited in the state's general fund. If payment of a billed amount is not received by the commissioner before December 1 of the year when billed, the commissioner must deduct that unpaid amount from any state aid the commissioner would otherwise pay to the county under chapter 477A in the next year. Late payments may either be returned to the county uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid paid to the county under chapter 477A must be adjusted within 12 months to eliminate any reduction that occurred because the payment was late. Amounts needed to make these adjustments are included in the appropriation under section 477A.03, subdivision 2.
EFFECTIVE
DATE. This section is
effective for county boards of appeal and equalization meetings held in 2017
and thereafter.
Sec. 30. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary, on or before September 30, each county and each home rule charter or statutory city shall certify to the county auditor the proposed property tax levy for taxes payable in the following year.
(b) Notwithstanding any law or charter to the contrary, on or before September 15, each town and each special taxing district shall adopt and certify to the county auditor a proposed property tax levy for taxes payable in the following year. For towns, the final certified levy shall also be considered the proposed levy.
(c) On or before September 30, each school district that has not mutually agreed with its home county to extend this date shall certify to the county auditor the proposed property tax levy for taxes payable in the following year. Each school district that has agreed with its home county to delay the certification of its proposed property tax levy must certify its proposed property tax levy for the following year no later than October 7. The school district shall certify the proposed levy as:
(1) a specific dollar amount by school district fund, broken down between voter-approved and non‑voter‑approved levies and between referendum market value and tax capacity levies; or
(2) the maximum levy limitation certified by the commissioner of education according to section 126C.48, subdivision 1.
(d) If the board of estimate and taxation or any similar board that establishes maximum tax levies for taxing jurisdictions within a first class city certifies the maximum property tax levies for funds under its jurisdiction by charter to the county auditor by the date specified in paragraph (a), the city shall be deemed to have certified its levies for those taxing jurisdictions.
(e) For purposes of this section, "special taxing district" means a special taxing district as defined in section 275.066. Intermediate school districts that levy a tax under chapter 124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing districts for purposes of this section.
(f) At the meeting at which a taxing
authority, other than a town, adopts its proposed tax levy under this
subdivision, the taxing authority shall announce the time and place of its
any subsequent regularly scheduled meetings at which the budget and levy
will be discussed and at which the public will be allowed to speak. The time and place of those meetings must be
included in the proceedings or summary of proceedings published in the official
newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 31. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read:
Subd. 2. Local
governments required to report. For purposes
of this section, "local governmental unit" means a county, home rule
charter or statutory city with a population greater than 2,500, a town with
a population greater than 5,000, or a home rule charter or statutory city or
town that receives a distribution from the taconite municipal aid account in
the levy year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 32. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read:
Subdivision 1. Determination of validity. (a) Any person having personal property, or any estate, right, title, or interest in or lien upon any parcel of land, who claims that such property has been partially, unfairly, or unequally assessed in comparison with other property in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class, the portion of the county excluding the first class city, or that the parcel has been assessed at a valuation greater than its real or actual value, or that the tax levied against the same is illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so levied, may have the validity of the claim, defense, or objection determined by the district court of the county in which the tax is levied or by the Tax Court by serving one copy of a petition for such determination upon the county auditor, one copy on the county attorney, one copy on the county treasurer, and three copies on the county assessor. The county assessor shall immediately forward one copy of the petition to the appropriate governmental authority in a home rule charter or statutory city or town in which the property is located if that city or town employs its own certified assessor. A copy of the petition shall also be forwarded by the assessor to the school board of the school district in which the property is located.
(b) In counties where the office of county treasurer has been combined with the office of county auditor, the county may elect to require the petitioner to serve the number of copies as determined by the county. The county assessor shall immediately forward one copy of the petition to the appropriate governmental authority in a home rule charter or statutory city or town in which the property is located if that city or town employs its own certified assessor. A list of petitioned properties, including the name of the petitioner, the identification number of the property, and the estimated market value, shall be sent on or before the first day of July by the county auditor/treasurer to the school board of the school district in which the property is located.
(c) For all counties, the petitioner must file the copies with proof of service, in the office of the court administrator of the district court on or before April 30 of the year in which the tax becomes payable. A petition for determination under this section may be transferred by the district court to the Tax Court. An appeal may also be taken to the Tax Court under chapter 271 at any time following receipt of the valuation notice that county assessors or city assessors having the powers of a county assessor are required by section 273.121 to send to persons whose property is to be included on the assessment roll that year, but prior to May 1 of the year in which the taxes are payable.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 33. Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read:
Subd. 1a. Conveyance to public entities. (a) Upon written request from a state agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be withheld from sale or lease to others for a maximum of six months. The request must be submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel from sale or lease to any other party for six months, and must confirm the starting date of the six-month withholding period to the requesting agency or subdivision. If the request is from a governmental subdivision of the state, the governmental subdivision must pay the maintenance costs incurred by the county during the period the parcel is withheld. The county board may approve a sale or conveyance to the requesting party during the withholding period. A conveyance of the property to the requesting party terminates the withholding period.
A governmental subdivision of the state must not make, and a county auditor must not act upon, a second request to withhold a parcel from sale or lease within 18 months of a previous request for that parcel. A county may reject a request made under this paragraph if the request is made more than 30 days after the county has given notice to the requesting state agency or governmental subdivision of the state that the county intends to sell or otherwise dispose of the property.
(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market value as determined by the county board, to an organized or incorporated governmental subdivision of the state for any public purpose for which the subdivision is authorized to acquire property. When the term "market value" is used in this section, it means an estimate of the full and actual market value of the parcel as determined by the county board, but in making this determination, the board and the persons employed by or under contract with the board in order to perform, conduct, or assist in the determination, are exempt from the licensure requirements of chapter 82B.
(c) Nonconservation tax-forfeited lands
may be released from the trust in favor of the taxing districts on
application to sold by the county board by, for their
market value as determined by the county board, to a state agency for an
authorized use at not less than their market value as determined by the county
board any public purpose for which the agency is authorized to acquire
property.
(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized or incorporated governmental subdivision of the state or state agency for less than their market value if:
(1) the county board determines that a sale at a reduced price is in the public interest because a reduced price is necessary to provide an incentive to correct the blighted conditions that make the lands undesirable in the open market, or the reduced price will lead to the development of affordable housing; and
(2) the governmental subdivision or state agency has documented its specific plans for correcting the blighted conditions or developing affordable housing, and the specific law or laws that empower it to acquire real property in furtherance of the plans.
If the sale under this paragraph is to a
governmental subdivision of the state, the commissioner of revenue must convey
the property on behalf of the state by quitclaim deed. If the sale under this paragraph is to a
state agency, the property is released from the trust in favor of the taxing
districts and the commissioner of revenue must issue a conveyance
document that releases the property from the trust in favor of the taxing
districts convey the property on behalf of the state by quitclaim deed
to the agency.
(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may be conveyed by the commissioner of revenue in the name of the state to a governmental subdivision for an authorized public use, if an application is submitted to the commissioner which includes a statement of facts as to the use to be made of the tract and the favorable recommendation of the county board. For the purposes of this paragraph, "authorized public use" means a use that allows an indefinite segment of the public to physically use and enjoy the property in numbers appropriate to its size and use, or is for a public service facility. Authorized public uses as defined in this paragraph are limited to:
(1) a road, or right-of-way for a road;
(2) a park that is both available to, and accessible by, the public that contains improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along with a reasonable amount of surrounding land maintained in its natural state;
(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other facilities related to a public transit system;
(5) public beaches or boat launches;
(6) public parking;
(7) civic recreation or conference facilities; and
(8) public service facilities such as fire halls, police stations, lift stations, water towers, sanitation facilities, water treatment facilities, and administrative offices.
No monetary compensation or consideration is required for the conveyance, except as provided in subdivision 1g, but the conveyance is subject to the conditions provided in law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited land to a local governmental subdivision of the state by quitclaim deed on behalf of the state upon the favorable recommendation of the county board if the governmental subdivision has certified to the board that prior to forfeiture the subdivision was entitled to the parcel under a written development agreement or instrument, but the conveyance failed to occur prior to forfeiture. No compensation or consideration is required for, and no conditions attach to, the conveyance.
(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited land to the association of a common interest community by quitclaim deed upon the favorable recommendation of the county board if the association certifies to the board that prior to forfeiture the association was entitled to the parcel under a written agreement, but the conveyance failed to occur prior to forfeiture. No compensation or consideration is required for, and no conditions attach to, the conveyance.
(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the state for less than its market value for either: (1) creation or preservation of wetlands; (2) drainage or storage of storm water under a storm water management plan; or (3) preservation, or restoration and preservation, of the land in its natural state. The deed must contain a restrictive covenant limiting the use of the land to one of these purposes for 30 years or until the property is reconveyed back to the state in trust. At any time, the governmental subdivision may reconvey the property to the state in trust for the taxing districts. The deed of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase price determined under this paragraph shall be refunded upon a reconveyance, but the amount paid for a conveyance under this paragraph may be taken into account by the county board when setting the terms of a future sale of the same property to the same governmental subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an incorporated municipality and the commissioner of natural resources determines there is a mineral use potential, the sale is subject to the approval of the commissioner of natural resources.
(i) A park and recreation board in a city of the first class is a governmental subdivision for the purposes of this section.
(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by the commissioner of revenue in the name of the state to a governmental subdivision for a school forest under section 89.41. An application that includes a statement of facts as to the use to be made of the tract and the favorable recommendation of the county board and the commissioner of natural resources must be submitted to the commissioner of revenue. No monetary compensation or consideration is required for the conveyance, but the conveyance is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the property back to the state in trust for the taxing districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 34. Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read:
Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years from the date of any conveyance of tax-forfeited land to a governmental subdivision for an authorized public use as provided in this section, regardless of when the deed for the authorized public use was executed, if the governmental subdivision has failed to put the land to that use, or abandons that use, the governing body of the subdivision must: (1) with the approval of the county board, purchase the property for an authorized public purpose at the present market value as determined by the county board, or (2) authorize the proper officers to convey the land, or the part of the land not required for an authorized public use, to the state of Minnesota in trust for the taxing districts. If the governing body purchases the property under clause (1), the commissioner of revenue shall, upon proper application submitted by the county auditor and upon the reconveyance of the land subject to the conditional use deed to the state, convey the property on behalf of the state by quitclaim deed to the subdivision free of a use restriction and the possibility of reversion or defeasement. If the governing body decides to reconvey the property to the state under this clause, the officers shall execute a deed of conveyance immediately. The conveyance is subject to the approval of the commissioner and its form must be approved by the attorney general. For 15 years from the date of the conveyance, there is no failure to put the land to the authorized public use and no abandonment of that use if a formal plan of the governmental subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an intended future use of the land for the authorized public use.
(b) Property held by a governmental subdivision of the state under a conditional use deed executed under this section by the commissioner of revenue on or after January 1, 2007, may be acquired by that governmental subdivision after 15 years from the date of the conveyance if the commissioner determines upon written application from the subdivision that the subdivision has in fact put the property to the authorized public use for which it was conveyed, and the subdivision has made a finding that it has no current plans to change the use of the lands. Prior to conveying the property, the commissioner shall inquire whether the county board where the land is located objects to a conveyance of the property to the subdivision without conditions and without further act by or obligation of the subdivision. If the county does not object within 60 days, and the commissioner makes a favorable determination, the commissioner shall issue a quitclaim deed on behalf of the state unconditionally conveying the property to the governmental subdivision. For purposes of this paragraph, demonstration of an intended future use for the authorized public use in a formal plan of the governmental subdivision does not constitute use for that authorized public use.
(c) Property held by a governmental subdivision of the state under a conditional use deed executed under this section by the commissioner of revenue before January 1, 2007, is released from the use restriction and possibility of reversion on January 1, 2022, if the county board records a resolution describing the land and citing this paragraph. The county board may authorize the county treasurer to deduct the amount of the recording fees from future settlements of property taxes to the subdivision.
(d) Except for tax-forfeited land conveyed to establish a school forest under section 89.41, property conveyed under a conditional use deed executed under this section by the commissioner of revenue, regardless of when the deed for the authorized public use was executed, is released from the use restriction and reverter, and any use restriction or reverter for which no declaration of reversion has been recorded with the county recorder or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from the date the deed was acknowledged; or (3) final resolution of an appeal to district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a school forest under section 89.41 is subject to a perpetual conditional use deed and reverter. The property reverts to the state in trust for the taxing districts by operation of law if the commissioner of natural resources determines and reports to the
commissioner of revenue under section 89.41, subdivision 3, that the governmental subdivision has failed to use the land for school forest purposes for three consecutive years. The commissioner of revenue shall record a declaration of reversion for land that has reverted under this paragraph.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 35. Minnesota Statutes 2014, section 477A.013, is amended by adding a subdivision to read:
Subd. 14. Communication by electronic mail. Prior to receiving aid pursuant to this section, a city must register an official electronic mail address with the commissioner, which the commissioner may use as an exclusive means to communicate with the city.
EFFECTIVE
DATE. This section is
effective for aids payable in 2017 and thereafter.
Sec. 36. Minnesota Statutes 2014, section 477A.19, is amended by adding a subdivision to read:
Subd. 3a. Certification. On or before June 1 of each year, the
commissioner of natural resources shall certify to the commissioner of revenue
the number of watercraft launches and the number of watercraft trailer parking
spaces in each county.
EFFECTIVE
DATE. This section is
effective for aids payable in 2017 and thereafter.
Sec. 37. Minnesota Statutes 2014, section 477A.19, is amended by adding a subdivision to read:
Subd. 3b. Certification. On or before June 1 of each year, the
commissioner of natural resources shall certify to the commissioner of revenue
the counties that complied with the requirements of subdivision 3 the prior
year and are eligible to receive aid under this section.
EFFECTIVE
DATE. This section is
effective for aids payable in 2017 and thereafter.
Sec. 38. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read:
Subd. 2. Exception. This section does not apply to sales made under chapter 282 or if the purchaser is represented throughout the transaction by either:
(1) a person licensed to practice law in this state; or
(2) a person licensed as a real estate broker or salesperson under chapter 82, provided that the representation does not create a dual agency, as that term is defined in section 82.55, subdivision 6.
EFFECTIVE
DATE. This section is
effective for sales of tax-forfeited land occurring after the day following
final enactment.
Sec. 39. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:
Subd. 2. Payment of supplemental credit. (a) The commissioner must pay supplemental credit amounts to each qualifying taxpayer by October 15, 2014.
(b) If the commissioner cannot locate
the qualifying taxpayer by October 15, 2016, or if a qualifying taxpayer to
whom a warrant was issued does not cash that warrant within two years from the
date the warrant was issued, the right to the credit shall lapse and the
warrant shall be deposited in the general fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 40. Laws 2014, chapter 308, article 9, section 94, is amended to read:
Sec. 94. REPEALER.
(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, part 8007.0200, are repealed.
(b) Minnesota Statutes 2012, sections
16D.02, subdivisions 5 and 8; 16D.11, subdivision 2; 270C.53; 270C.991,
subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and 82; 272.027,
subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3;
273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32;
281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23;
287.20, subdivision 4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e;
295.52, subdivision 7; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18,
20, 32, and 41; 297F.08, subdivision 11; 297H.10, subdivision 2; 469.174,
subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 469.177,
subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota
Statutes 2013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9,
section 47, and Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and
8130.7500, subpart 7, are repealed.
(c) Minnesota Statutes 2012, section 469.1764, is repealed.
(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement, section 469.340, subdivision 4, are repealed.
(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.
EFFECTIVE
DATE. This section is
effective retroactively from May 20, 2014, and pursuant to Minnesota Statutes,
section 645.36, Minnesota Statutes, section 272.027, subdivision 2, is revived
and reenacted as of that date.
Sec. 41. REPEALER.
(a) Minnesota Statutes 2014, section
281.22, is repealed.
(b) Minnesota Rules, part 8100.0700, is
repealed.
EFFECTIVE
DATE. Paragraph (a) is
effective the day following final enactment.
Paragraph (b) is effective beginning with assessment year 2016.
ARTICLE 15
DEPARTMENT POLICY AND TECHNICAL PROVISIONS; MISCELLANEOUS
Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:
Subdivision 1. Annual
report required. Every railroad
company doing business in Minnesota shall annually file with the commissioner
on or before March 31 a report under oath setting forth the information
prescribed by the commissioner to enable the commissioner to make the valuation
and equalization required by sections 270.80 to 270.87. The commissioner shall prescribe the
content, format, and manner of the report pursuant to section 270C.30, except
that a "law administered by the commissioner" includes the property
tax laws. If a report is made by
electronic means, the taxpayer's signature is defined pursuant to section
270C.304, except that a "law administered by the commissioner"
includes the property tax laws.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:
Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed and certain amount of money, which equals or exceeds $25 and which is due and payable to a claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125, fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and restitution. A debt may arise under a contractual or statutory obligation, a court order, or other legal obligation, but need not have been reduced to judgment.
A debt includes any legal obligation of a current recipient of assistance which is based on overpayment of an assistance grant where that payment is based on a client waiver or an administrative or judicial finding of an intentional program violation; or where the debt is owed to a program wherein the debtor is not a client at the time notification is provided to initiate recovery under this chapter and the debtor is not a current recipient of food support, transitional child care, or transitional medical assistance.
(b) A debt does not include any legal obligation to pay a claimant agency for medical care, including hospitalization if the income of the debtor at the time when the medical care was rendered does not exceed the following amount:
(1) for an unmarried debtor, an income of $8,800
$12,560 or less;
(2) for a debtor with one dependent, an
income of $11,270 $16,080 or less;
(3) for a debtor with two dependents, an
income of $13,330 $19,020 or less;
(4) for a debtor with three dependents, an
income of $15,120 $21,580 or less;
(5) for a debtor with four dependents, an
income of $15,950 $22,760 or less; and
(6) for a debtor with five or more
dependents, an income of $16,630 $23,730 or less.
For purposes of this paragraph,
"debtor" means the individual whose income, together with the income
of the individual's spouse, other than a separated spouse, brings the individual
within the income provisions of this paragraph.
For purposes of this paragraph, a spouse, other than a separated spouse,
shall be considered a dependent.
(c) The commissioner shall adjust the income
amounts in paragraph (b) by the percentage determined pursuant to the
provisions of section 1(f) of the Internal Revenue Code, except that in section
1(f)(3)(B) the word "1999 2014" shall be substituted
for the word "1992." For 2001
2016, the commissioner shall then determine the percent change from the 12
months ending on August 31, 1999 2014, to the 12 months ending on
August 31, 2000 2015, and in each subsequent year, from the 12
months ending on August 31, 1999 2014, to the 12 months ending on
August 31 of the year preceding the taxable year. The determination of the commissioner
pursuant to this subdivision shall not be considered a "rule" and
shall not be subject to the Administrative Procedure Act contained in chapter
14. The income amount as adjusted must
be rounded to the nearest $10 amount. If
the amount ends in $5, the amount is rounded up to the nearest $10 amount.
(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the dollar amount of the premium authorized under section 256L.15, subdivision 1a.
EFFECTIVE
DATE. The section is
effective retroactively for debts incurred after December 31, 2014.
Sec. 3. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:
Subdivision 1. Disclosure to commissioner of human services. (a) On the request of the commissioner of human services, the commissioner shall disclose return information regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, employment, income, and property of a person owing or alleged to be owing an obligation of child support.
(c) The commissioner of human services may request data only for the purposes of carrying out the child support enforcement program and to assist in the location of parents who have, or appear to have, deserted their children. Data received may be used only as set forth in section 256.978.
(d) The commissioner shall provide the records and information necessary to administer the supplemental housing allowance to the commissioner of human services.
(e) At the request of the commissioner of human services, the commissioner of revenue shall electronically match the Social Security numbers and names of participants in the telephone assistance plan operated under sections 237.69 to 237.71, with those of property tax refund filers, and determine whether each participant's household income is within the eligibility standards for the telephone assistance plan.
(f) The commissioner may provide records and information collected under sections 295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 102-234. Upon the written agreement by the United States Department of Health and Human Services to maintain the confidentiality of the data, the commissioner may provide records and information collected under sections 295.50 to 295.59 to the Centers for Medicare and Medicaid Services section of the United States Department of Health and Human Services for purposes of meeting federal reporting requirements.
(g) The commissioner may provide records and information to the commissioner of human services as necessary to administer the early refund of refundable tax credits.
(h) The commissioner may disclose
information to the commissioner of human services as necessary to
verify income for income verification for eligibility and premium
payment under the MinnesotaCare program, under section 256L.05, subdivision 2,
as well as the medical assistance program under section 256B.
(i) The commissioner may disclose information to the commissioner of human services necessary to verify whether applicants or recipients for the Minnesota family investment program, general assistance, food support, Minnesota supplemental aid program, and child care assistance have claimed refundable tax credits under chapter 290 and the property tax refund under chapter 290A, and the amounts of the credits.
(j) The commissioner may disclose information to the commissioner of human services necessary to verify income for purposes of calculating parental contribution amounts under section 252.27, subdivision 2a.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 270C.30, is amended to read:
270C.30
RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
Except as otherwise provided by law,
the commissioner shall prescribe the content and, format, and
manner of all returns and other forms required to be filed under a law
administered by the commissioner, and may furnish them subject to charge on
application.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read:
Subd. 5. Prohibition
against collection during appeal period of an order. No collection action can be taken on an order
of assessment, or any other order imposing a liability, including the filing of
liens under section 270C.63, and no late payment penalties may be imposed when
a return has been filed for the tax type and period upon which the order is
based, during the appeal period of an order.
The appeal period of an order ends:
(1) 60 days after the order has been mailed to the taxpayer notice
date designated by the commissioner on the order; (2) if an
administrative appeal is filed under section 270C.35, 60 days after the
notice date designated by the commissioner on the written determination of
the administrative appeal; (3) if an appeal to Tax Court is filed under chapter
271, when the decision of the Tax Court is made; or (4) if an appeal to Tax
Court is filed and the appeal is based upon a constitutional challenge to the
tax, 60 days after final determination of the appeal. This subdivision does not apply to a jeopardy
assessment under section 270C.36, or a jeopardy collection under section
270C.36.
EFFECTIVE
DATE. This section is
effective for orders dated after December 31, 2016.
Sec. 6. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read:
Subd. 8. Sufficiency
of notice. An assessment of tax made
by the commissioner, sent postage prepaid by United States mail to the taxpayer
at the taxpayer's last known address, or sent by electronic mail to the
taxpayer's last known electronic mailing address as provided for in section
325L.08, is sufficient even if the taxpayer is deceased or is under a legal
disability, or, in the case of a corporation, has terminated its existence,
unless the commissioner has been provided with a new address by a party
authorized to receive notices of assessment.
Notice of an assessment is sufficient if it is sent on or before the
notice date designated by the commissioner on the assessment.
EFFECTIVE
DATE. This section is
effective for assessments dated after December 31, 2016.
Sec. 7. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read:
Subd. 2. Procedure. (a) A request for abatement of penalty
under subdivision 1 or section 289A.60, subdivision 4, or a request for
abatement of interest or additional tax charge, must be filed with the
commissioner within 60 days of the notice date of the notice
was mailed to the taxpayer's last known address, stating that a penalty has
been imposed or additional tax charge.
For purposes of this section, the term "notice date" means the
notice date designated by the commissioner on the order or other notice that a
penalty or additional tax charge has been imposed.
(b) If the commissioner issues an order denying a request for abatement of penalty, interest, or additional tax charge, the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax Court as provided in section 271.06.
(c) If the commissioner does not issue an order on the abatement request within 60 days from the date the request is received, the taxpayer may appeal to Tax Court as provided in section 271.06.
EFFECTIVE
DATE. This section is
effective for orders and notices dated after December 31, 2016.
Sec. 8. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read:
Subdivision 1. Checks and warrants, authority to reissue. Notwithstanding any other provision of law, the commissioner may, based on a showing of reasonable cause, reissue an uncashed rebate, supplemental agricultural credit, or property tax refund warrant or check that has lapsed under any provision of law relating to rebates or under section 290A.18, subdivision 2. The authority to reissue warrants or checks under this subdivision is limited to five years after the date of issuance of the original warrant or check.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read:
Subd. 3. Notice
date. For purposes of this section,
the term "notice date" means the date of designated by the
commissioner on the order adjusting the tax or order denying a request for
abatement, or, in the case of a denied refund, the notice date of
designated by the commissioner on the notice of denial.
EFFECTIVE
DATE. This section is
effective for orders and notices dated after December 31, 2016.
Sec. 10. Minnesota Statutes 2014, section 270C.35, is amended by adding a subdivision to read:
Subd. 11. Dismissal
of administrative appeal. If
a taxpayer files an administrative appeal for an order of the commissioner and
also files an appeal to the Tax Court for that same order of the commissioner,
the administrative appeal is dismissed and
the commissioner is no longer required to make a determination of appeal under
subdivision 6.
EFFECTIVE
DATE. This section is
effective for all administrative appeals filed after June 30, 2016.
Sec. 11. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read:
Subdivision 1. Sufficient notice. (a) If no method of notification of a written determination or action of the commissioner is otherwise specifically provided for by law, notice of the determination or action sent postage prepaid by United States mail to the taxpayer or other person affected by the determination or action at the taxpayer's or person's last known address, is sufficient. If the taxpayer or person being notified is deceased or is under a legal disability, or, in the case of a corporation being notified that has terminated its existence, notice to the last known address of the taxpayer, person, or corporation is sufficient, unless the department has been provided with a new address by a party authorized to receive notices from the commissioner.
(b) If a taxpayer or other person agrees to accept notification by electronic means, notice of a determination or action of the commissioner sent by electronic mail to the taxpayer's or person's last known electronic mailing address as provided for in section 325L.08 is sufficient.
(c) Notice of a determination or action
of the commissioner is sufficient if it is sent on or before the notice date
designated by the commissioner on the notice.
EFFECTIVE
DATE. This section is
effective for notices dated after December 31, 2016.
Sec. 12. Minnesota Statutes 2014, section 270C.445, is amended by adding a subdivision to read:
Subd. 9. Enforcement;
limitations. (a)
Notwithstanding any other law, the imposition of a penalty or any other action
against a tax return preparer authorized by subdivision 6 with respect to a
return may be taken by the commissioner within the period provided by section
289A.38 to assess tax on that return.
(b) Imposition of a penalty or other
action against a tax return preparer authorized by subdivision 6 other than
with respect to a return must be taken by the commissioner within five years of
the violation of statute.
EFFECTIVE
DATE. This section is
effective for tax preparation services provided after the day following final
enactment.
Sec. 13. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read:
Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer from the list of tax preparers published under this section:
(1) when the commissioner determines that the name was included on the list in error;
(2) within 90 days three years
after the preparer has demonstrated to the commissioner that the preparer fully
paid all fines or penalties imposed, served any suspension, satisfied
any sentence imposed, successfully completed any probationary period
imposed, and successfully completed any remedial actions required by the
commissioner, the State Board of Accountancy, or the Lawyers Board of
Professional Responsibility; or
(3) when the commissioner has been notified that the tax preparer is deceased.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 14. Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read:
Subd. 4. Licensing
authority; duties. All licensing
authorities must require the applicant to provide the applicant's Social
Security number or individual taxpayer identification number and
Minnesota business identification number, as applicable, on all license
applications. Upon request of the
commissioner, the licensing authority must provide the commissioner with a list
of all applicants, including the name, address, business name and address, and
Social Security number, or individual taxpayer identification number
and business identification number, as applicable, of each applicant. The commissioner may request from a licensing
authority a list of the applicants no more than once each calendar year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read:
Subd. 2. Time;
notice; intervention. Except as
otherwise provided by law, within 60 days after the notice of the
making and filing date of an order of the commissioner of revenue,
the appellant, or the appellant's attorney, shall serve a notice of appeal upon
the commissioner and file the original, with proof of such service, with the
Tax Court administrator or with the court administrator of district court
acting as court administrator of the Tax Court; provided, that the Tax Court,
for cause shown, may by written order extend the time for appealing for an
additional period not exceeding 30 days.
For purposes of this section, the term "notice date" means
the notice date designated by the commissioner on the order. The notice of appeal shall be in the form
prescribed by the Tax Court. Within five
days after receipt, the commissioner shall transmit a copy of the notice of
appeal to the attorney general. The
attorney general shall represent the commissioner, if requested, upon all such
appeals except in cases where the
attorney general has appealed in behalf of the state, or in other cases where the attorney general deems it against the interests of the state to represent the commissioner, in which event the attorney general may intervene or be substituted as an appellant in behalf of the state at any stage of the proceedings.
Upon a final determination of any other matter over which the court is granted jurisdiction under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a petition or notice of appeal as provided by law with the court administrator of district court, acting in the capacity of court administrator of the Tax Court, with proof of service of the petition or notice of appeal as required by law and within the time required by law. As used in this subdivision, "final determination" includes a notice of assessment and equalization for the year in question received from the local assessor, an order of the local board of equalization, or an order of a county board of equalization.
The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed with the district court administrator acting as court administrator of the Tax Court is forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning property valuation for which the assessor, a local board of equalization, a county board of equalization or the commissioner of revenue has issued an order, the officer issuing the order shall be notified of the filing of the appeal. The notice of appeal or petition shall be in the form prescribed by the Tax Court.
EFFECTIVE
DATE. This section is
effective for orders dated after December 31, 2016.
Sec. 16. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read:
Subd. 7. Rules. Except as provided in section 278.05, subdivision 6, the Rules of Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the 60-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989, apply until superseded.
EFFECTIVE
DATE. This section is
effective for orders dated after December 31, 2016.
Sec. 17. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:
Subd. 10. Personal property used for pollution control. Personal property used primarily for the abatement and control of air, water, or land pollution is exempt to the extent that it is so used, and real property is exempt if it is used primarily for abatement and control of air, water, or land pollution as part of an agricultural operation, as a part of a centralized treatment and recovery facility operating under a permit issued by the Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater treatment facility and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as part of an electric generation system. For purposes of this subdivision, personal property includes ponderous machinery and equipment used in a business or production activity that at common law is considered real property.
Any taxpayer requesting exemption of all or a portion of any real property or any equipment or device, or part thereof, operated primarily for the control or abatement of air, water, or land pollution shall file an application with the commissioner of revenue. The commissioner shall develop an electronic means to notify interested parties when electric power generation facilities have filed an application. The commissioner shall prescribe the content, format, and manner of the application pursuant to section 270C.30, except that a "law administered by the commissioner" includes the property tax laws, and if an application is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except that a "law administered by the commissioner" includes the property tax laws. The Minnesota Pollution Control Agency shall upon request of the commissioner furnish information and advice to the commissioner.
The information and advice furnished by the Minnesota Pollution Control Agency must include statements as to whether the equipment, device, or real property meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and whether the equipment, device, or real property is installed or operated in accordance with it. On determining that property qualifies for exemption, the commissioner shall issue an order exempting the property from taxation. The commissioner shall develop an electronic means to notify interested parties when the commissioner has issued an order exempting property from taxation under this subdivision. The equipment, device, or real property shall continue to be exempt from taxation as long as the order issued by the commissioner remains in effect.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read:
Subdivision 1. Efficiency
determination and certification. An
owner or operator of a new or existing electric power generation facility,
excluding wind energy conversion systems, may apply to the commissioner of
revenue for a market value exclusion on the property as provided for in this
section. This exclusion shall apply only
to the market value of the equipment of the facility, and shall not apply to
the structures and the land upon which the facility is located. The commissioner of revenue shall prescribe
the forms content, format, manner, and procedures for this
application pursuant to section 270C.30, except that a "law
administered by the commissioner" includes the property tax laws. If an application is made by electronic
means, the taxpayer's signature is defined pursuant to section 270C.304, except
that a "law administered by the commissioner" includes the property
tax laws. Upon receiving the application,
the commissioner of revenue shall: (1)
request the commissioner of commerce to make a determination of the efficiency
of the applicant's electric power generation facility; and (2) shall develop an
electronic means to notify interested parties when electric power generation
facilities have filed an application. The
commissioner of commerce shall calculate efficiency as the ratio of useful
energy outputs to energy inputs, expressed as a percentage, based on the
performance of the facility's equipment during normal full load operation. The commissioner must include in this formula
the energy used in any on-site preparation of materials necessary to convert
the materials into the fuel used to generate electricity, such as a process to
gasify petroleum coke. The commissioner
shall use the Higher Heating Value (HHV) for all substances in the
commissioner's efficiency calculations, except for wood for fuel in a
biomass-eligible project under section 216B.2424; for these instances, the
commissioner shall adjust the heating value to allow for energy consumed for
evaporation of the moisture in the wood.
The applicant shall provide the commissioner of commerce with whatever
information the commissioner deems necessary to make the determination. Within 30 days of the receipt of the
necessary information, the commissioner of commerce shall certify the findings
of the efficiency determination to the commissioner of revenue and to the
applicant. The commissioner of commerce
shall determine the efficiency of the facility and certify the findings of that
determination to the commissioner of revenue every two years thereafter from
the date of the original certification.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read:
Subdivision 1. Statement of exemption. (a) Except in the case of property owned by the state of Minnesota or any political subdivision thereof, and property exempt from taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times provided in subdivision 3, a taxpayer claiming an exemption from taxation on property described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with the assessor of the assessment district in which the property is located.
(b) A taxpayer claiming an exemption from taxation on property described in section 272.02, subdivision 10, must file a statement of exemption with the commissioner of revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
(c) In case of sickness, absence or other disability or for good cause, the assessor or the commissioner may extend the time for filing the statement of exemption for a period not to exceed 60 days.
(d) The commissioner of revenue shall
prescribe the form and contents content, format, and manner of
the statement of exemption pursuant to section 270C.30, except that a
"law administered by the commissioner" includes the property tax laws.
(e) If a statement is made by
electronic means, the taxpayer's signature is defined pursuant to section
270C.304, except that a "law administered by the commissioner"
includes the property tax laws.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 20. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:
Subd. 4. Reports. (a) An owner of a wind energy conversion
system subject to tax under subdivision 3 shall file a report with the
commissioner of revenue annually on or before February 1 January 15
detailing the amount of electricity in kilowatt-hours that was produced by the
wind energy conversion system for the previous calendar year. The commissioner shall prescribe the form
content, format, and manner of the report pursuant to section
270C.30, except that a "law administered by the commissioner"
includes the property tax laws. The
report must contain the information required by the commissioner to determine
the tax due to each county under this section for the current year. If an owner of a wind energy conversion
system subject to taxation under this section fails to file the report by the
due date, the commissioner of revenue shall determine the tax based upon the
nameplate capacity of the system multiplied by a capacity factor of 60 percent.
(b) If a report is made by electronic
means, the taxpayer's signature is defined pursuant to section 270C.304, except
that a "law administered by the commissioner" includes the property
tax laws.
(b) (c) On or before
February 28, the commissioner of revenue shall notify the owner of the wind
energy conversion systems of the tax due to each county for the current year
and shall certify to the county auditor of each county in which the systems are
located the tax due from each owner for the current year.
EFFECTIVE
DATE. This section is
effective the day following final enactment, except that the amendment in
paragraph (a) moving the date to file the report is effective for reports filed
in 2017 and thereafter.
Sec. 21. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read:
Subd. 4. Reports. An owner of a solar energy generating
system subject to tax under this section shall file a report with the
commissioner of revenue annually on or before January 15 detailing the amount
of electricity in megawatt-hours that was produced by the system in the
previous calendar year. The commissioner
shall prescribe the form content, format, and manner of the
report pursuant to section 270C.30.
The report must contain the information required by the commissioner to
determine the tax due to each county under this section for the current year. If an owner of a solar energy generating
system subject to taxation under this section fails to file the report by the
due date, the commissioner of revenue shall determine the tax based upon the
nameplate capacity of the system multiplied by a capacity factor of 30 percent.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 22. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read:
Subd. 2. Form;
information required. The certificate
of value shall require such facts and information as may be determined by the
commissioner to be reasonably necessary in the administration of the state
education aid formulas. The form commissioner
shall prescribe the content, format, and manner of the certificate of value
shall be prescribed by the Department of Revenue which shall provide an
adequate supply of forms to each county auditor pursuant to section
270C.30, except that a "law administered by the commissioner"
includes the property tax laws.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 23. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read:
Subd. 13. Homestead application. (a) A person who meets the homestead requirements under subdivision 1 must file a homestead application with the county assessor to initially obtain homestead classification.
(b) The format and contents of a uniform
homestead application shall be prescribed by the commissioner of revenue. The commissioner shall prescribe the
content, format, and manner of the homestead application required to be filed
under this chapter pursuant to section 270C.30. The application must clearly inform the
taxpayer that this application must be signed by all owners who occupy the
property or by the qualifying relative and returned to the county assessor in
order for the property to receive homestead treatment.
(c) Every property owner applying for homestead classification must furnish to the county assessor the Social Security number of each occupant who is listed as an owner of the property on the deed of record, the name and address of each owner who does not occupy the property, and the name and Social Security number of each owner's spouse who occupies the property. The application must be signed by each owner who occupies the property and by each owner's spouse who occupies the property, or, in the case of property that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not claim another property as a homestead unless the property owner and the property owner's spouse file with the assessor an affidavit or other proof required by the assessor stating that the property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously occupied with the other spouse, either of whom fail to include the other spouse's name and Social Security number on the homestead application or provide the affidavits or other proof requested, will be deemed to have elected to receive only partial homestead treatment of their residence. The remainder of the residence will be classified as nonhomestead residential. When an owner or spouse's name and Social Security number appear on homestead applications for two separate residences and only one application is signed, the owner or spouse will be deemed to have elected to homestead the residence for which the application was signed.
(d) If residential real estate is occupied and used for purposes of a homestead by a relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for the property to receive homestead status, a homestead application must be filed with the assessor. The Social Security number of each relative and spouse of a relative occupying the property shall be required on the homestead application filed under this subdivision. If a different relative of the owner subsequently occupies the property, the owner of the property must notify the assessor within 30 days of the change in occupancy. The Social Security number of a relative or relative's spouse occupying the property is private data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(e) The homestead application shall also notify the property owners that if the property is granted homestead status for any assessment year, that same property shall remain classified as homestead until the property is sold or transferred to another person, or the owners, the spouse of the owner, or the relatives no longer use the property as their homestead. Upon the sale or transfer of the homestead property, a certificate of value must be timely filed with the county auditor as provided under section 272.115. Failure to notify the assessor within 30 days that the property has been sold, transferred, or that the owner, the spouse of the owner, or the relative is no longer occupying the property as a homestead, shall result in the penalty provided under this subdivision and the property will lose its current homestead status.
(f) If a homestead application has not been filed with the county by December 15, the assessor shall classify the property as nonhomestead for the current assessment year for taxes payable in the following year, provided that the owner may be entitled to receive the homestead classification by proper application under section 375.192.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 24. Minnesota Statutes 2014, section 273.371, is amended to read:
273.371
REPORTS OF UTILITY COMPANIES.
Subdivision 1. Report
required. Every electric light,
power, gas, water, express, stage, and transportation company and
pipeline company doing business in Minnesota shall annually file with
the commissioner on or before March 31 a report under oath setting forth the
information prescribed by the commissioner to enable the commissioner to make
valuations, recommended valuations, and equalization required under sections
273.33, 273.35, 273.36, 273.37, and 273.3711.
The commissioner shall prescribe the content, format, and manner of
the report pursuant to section 270C.30, except that a "law administered by
the commissioner" includes the property tax laws. If all the required information is not
available on March 31, the company or pipeline shall file the information that
is available on or before March 31, and the balance of the information as soon
as it becomes available. If a report
is made by electronic means, the taxpayer's signature is defined pursuant to
section 270C.304, except that a "law administered by the
commissioner" includes the property tax laws.
Subd. 2. Extension. The commissioner for good cause may
extend the time for filing the report required by subdivision 1. The extension may must not
exceed 15 days.
Subd. 3. Reports
filed by the commissioner. If
a company fails to file a report required by subdivision 1, the commissioner
may, from information in the commissioner's possession or obtainable by the
commissioner, make and file a report for the company or make the valuations,
recommended valuations, and equalizations required under sections 273.33,
273.35 to 273.37, and 273.3711.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 25. Minnesota Statutes 2014, section 287.2205, is amended to read:
287.2205
TAX-FORFEITED LAND.
Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by the purchaser of tax-forfeited land whether the purchase is the result of a public auction or private sale or a repurchase of tax-forfeited land. State agencies and local units of government that acquire tax-forfeited land by purchase or any other means are subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision for an authorized public use under section 282.01, subdivision 1a, for a school forest under section 282.01, subdivision 1a, or for redevelopment purposes under section 282.01, subdivision 1b.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 26. Minnesota Statutes 2014, section 289A.08, is amended by adding a subdivision to read:
Subd. 17. Format. The commissioner shall prescribe the
content, format, and manner of the returns and other documents pursuant to
section 270C.30. This does not authorize
the commissioner to require individual income taxpayers to file individual
income tax returns electronically.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 27. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read:
Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax under section 290.923, subdivision 2, must file a return with the commissioner for each quarterly period unless otherwise prescribed by the commissioner.
(b) A person or corporation required to make deposits under section 290.9201, subdivision 8, must file an entertainer withholding tax return with the commissioner.
(c) A person required to withhold an amount under section 290.9705, subdivision 1, must file a return.
(d) A partnership required to deduct and withhold tax under section 290.92, subdivision 4b, must file a return.
(e) An S corporation required to deduct and withhold tax under section 290.92, subdivision 4c, must also file a return.
(f) Returns must be filed in the form
and manner, and contain the information prescribed by the commissioner. The commissioner shall prescribe the
content, format, and manner of the returns pursuant to section 270C.30. Every return for taxes withheld must be
signed by the employer, entertainment entity, contract payor, partnership, or S corporation,
or a designee.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 28. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read:
Subdivision 1. Return
required. (a) Except as provided in
section 289A.18, subdivision 4, for the month in which taxes imposed by chapter
297A are payable, or for which a return is due, a return for the preceding
reporting period must be filed with the commissioner in the form and manner
the commissioner prescribes. The
commissioner shall prescribe the content, format, and manner of the returns
pursuant to section 270C.30. A
person making sales at retail at two or more places of business may file a
consolidated return subject to rules prescribed by the commissioner. In computing the dollar amount of items on
the return, the amounts are rounded off to the nearest whole dollar,
disregarding amounts less than 50 cents and increasing amounts of 50 cents to
99 cents to the next highest dollar.
(b) Notwithstanding this subdivision, a
person who is not required to hold a sales tax permit under chapter 297A and
who makes annual purchases, for use in a trade or business, of less than
$18,500, or a person who is not required to hold a sales tax permit and who
makes purchases for personal use, that are subject to the use tax imposed by
section 297A.63, may file an annual use tax return on a form prescribed by
the commissioner. The
commissioner shall prescribe the content, format, and manner of the return
pursuant to section 270C.30. If a
person who qualifies for an annual use tax reporting period is required to
obtain a sales tax permit or makes use tax purchases, for use in a trade or
business, in excess of $18,500 during the calendar year, the reporting period
must be considered ended at the end of the month in which the permit is applied
for or the purchase in excess of $18,500 is made and a return must be filed for
the preceding reporting period.
(c)
Notwithstanding paragraph paragraphs (a) and (b), a person
prohibited by the person's religious beliefs from using electronics shall be
allowed to file by mail, without any additional fees. The filer must notify the commissioner of
revenue of the intent to file by mail on a form prescribed by the commissioner. A return filed under this paragraph must be
postmarked no later than the day the return is due in order to be considered
filed on a timely basis.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 29. Minnesota Statutes 2014, section 289A.18, subdivision 1, is amended to read:
Subdivision 1. Individual income, fiduciary income, corporate franchise, and entertainment taxes; partnership and S corporation returns; information returns; mining company returns. The returns required to be made under sections 289A.08 and 289A.12 must be filed at the following times:
(1) returns made on the basis of the calendar year must be filed on April 15 following the close of the calendar year, except that returns of corporations and partnerships must be filed on the due date for filing the federal income tax return;
(2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth month following the close of the fiscal year, except that returns of corporations and partnerships must be filed on the due date for filing the federal income tax return;
(3) returns for a fractional part of a year must be filed on the due date for filing the federal income tax return;
(4) in the case of a final return of a decedent for a fractional part of a year, the return must be filed on the 15th day of the fourth month following the close of the 12-month period that began with the first day of that fractional part of a year;
(5) in the case of the return of a cooperative association, returns must be filed on or before the 15th day of the ninth month following the close of the taxable year;
(6) if a corporation has been divested from a unitary group and files a return for a fractional part of a year in which it was a member of a unitary business that files a combined report under section 290.17, subdivision 4, the divested corporation's return must be filed on the 15th day of the third month following the close of the common accounting period that includes the fractional year;
(7) returns of entertainment entities must be filed on April 15 following the close of the calendar year;
(8) returns required to be filed under section 289A.08, subdivision 4, must be filed on the 15th day of the fifth month following the close of the taxable year;
(9) returns of mining companies must be filed on May 1 following the close of the calendar year; and
(10) returns required to be filed with the commissioner under section 289A.12, subdivision 2, 4 to 10, or 16 must be filed within 30 days after being demanded by the commissioner.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. Minnesota Statutes 2014, section 289A.37, subdivision 2, is amended to read:
Subd. 2. Erroneous
refunds. An erroneous refund is
considered an underpayment of tax on the date made. An assessment of a deficiency arising out of
an erroneous refund may be made at any time within two years from the making of
the refund. If part of the refund was
induced by fraud or misrepresentation of a material fact, the assessment may be
made at any time. (a) Except as
provided in paragraph (b), an erroneous refund occurs when the commissioner
issues a payment to a person that exceeds the amount the person is entitled to
receive under law. An erroneous refund
is considered an underpayment of tax on the date issued.
(b) To the extent that the amount paid
does not exceed the amount claimed by the taxpayer, an erroneous refund does
not include the following:
(1) any amount of a refund or credit
paid pursuant to a claim for refund filed by a taxpayer, including but not
limited to refunds of claims made under section 290.06, subdivision 23;
290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; 290.0681;
or 290.0692; or chapter 290A; or
(2) any amount paid pursuant to a claim
for refund of an overpayment of tax filed by a taxpayer.
(c) The commissioner may make an
assessment to recover an erroneous refund at any time within two years from the
issuance of the erroneous refund. If all
or part of the erroneous refund was induced by fraud or misrepresentation of a
material fact, the assessment may be made at any time.
(d) Assessments of amounts that are not
erroneous refunds under paragraph (b) must be conducted under section 289A.38.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies retroactively to all
refunds issued on, before, or after that date, but does not apply to the
refunds at issue in Connexus Energy et al. v. Commissioner of Revenue, 868 N.W.2d
234 (Minn. 2015). Notwithstanding any
law to the contrary, the changes in this section do not invalidate any
assessments made by the commissioner prior to this effective date.
Sec. 31. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read:
Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the refund claim is denied in whole or in part, the taxpayer may:
(1) file an administrative appeal as
provided in section 270C.35, or an appeal with the Tax Court, within 60 days
after issuance the notice date of the commissioner's notice of
denial; or
(2) file an action in the district court to recover the refund.
(b) An action in the district court on a
denied claim for refund must be brought within 18 months of the notice
date of the denial of the claim by the commissioner. For the purposes of this section,
"notice date" is defined in section 270C.35, subdivision 3.
(c) No action in the district court or the Tax Court shall be brought within six months of the filing of the refund claim unless the commissioner denies the claim within that period.
(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial of the claim, the taxpayer may bring an action in the district court or the Tax Court at any time after the expiration of six months from the time the claim was filed.
(e) The commissioner and the taxpayer may agree to extend the period for bringing an action in the district court.
(f) An action for refund of tax by the taxpayer must be brought in the district court of the district in which lies the county of the taxpayer's residence or principal place of business. In the case of an estate or trust, the action must be brought at the principal place of its administration. Any action may be brought in the district court for Ramsey County.
EFFECTIVE
DATE. This section is
effective for claims for refund denied after December 31, 2016.
Sec. 32. [290B.11]
FORMS.
The commissioner shall prescribe the
content, format, and manner of all forms and other documents required to be
filed under this chapter pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 33. [290C.051]
VERIFICATION OF FOREST MANAGEMENT PLAN.
On request of the commissioner, the
commissioner of natural resources must annually provide verification that the
claimant has a current forest management plan on file with the Department of
Natural Resources.
EFFECTIVE
DATE. This section is
effective for certifications filed after July 1, 2017.
Sec. 34. [293.15]
FORMS.
The commissioner shall prescribe the
content, format, and manner of all forms and other documents required to be
filed under this chapter pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 35. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read:
Subd. 6. Form
of returns. The estimated
payments and annual return must contain the information and be in the form
prescribed by the commissioner. The
commissioner shall prescribe the content, format, and manner of the estimated
payment forms and annual return pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 36. Minnesota Statutes 2014, section 296A.02, is amended by adding a subdivision to read:
Subd. 5. Forms. The commissioner shall prescribe the
content, format, and manner of all forms and other documents required to be
filed under this chapter pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 37. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read:
Subd. 9. Abatement of penalty. (a) The commissioner may by written order abate any penalty imposed under this section, if in the commissioner's opinion there is reasonable cause to do so.
(b)
A request for abatement of penalty must be filed with the commissioner within
60 days of the notice date of the notice stating that a
penalty has been imposed was mailed to the taxpayer's last known address. For purposes of this section, the term
"notice date" means the notice date designated by the commissioner on
the order or other notice that a penalty has been imposed.
(c) If the commissioner issues an order denying a request for abatement of penalty, the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax Court as provided in section 271.06. If the commissioner does not issue an order on the abatement request within 60 days from the date the request is received, the taxpayer may appeal to Tax Court as provided in section 271.06.
EFFECTIVE
DATE. This section is
effective for orders and notices dated after December 31, 2016.
Sec. 38. Minnesota Statutes 2014, section 296A.26, is amended to read:
296A.26
JUDICIAL REVIEW; APPEAL TO TAX COURT.
In lieu of an administrative appeal under
section 270C.35, any person aggrieved by an order of the commissioner fixing a
tax, penalty, or interest under this chapter may, within 60 days from the notice
date of the notice of the order, appeal to the Tax Court in the manner
provided under section 271.06. For
purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or
interest.
EFFECTIVE
DATE. This section is
effective for orders dated after December 31, 2016.
Sec. 39. Minnesota Statutes 2014, section 297D.02, is amended to read:
297D.02
ADMINISTRATION.
The commissioner of revenue shall administer this chapter. The commissioner shall prescribe the content, format, and manner of all forms and other documents required to be filed under this chapter pursuant to section 270C.30. Payments required by this chapter must be made to the commissioner on the form provided by the commissioner. Tax obligors are not required to give their name, address, Social Security number, or other identifying information on the form. The commissioner shall collect all taxes under this chapter.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 40. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read:
Subd. 3. Collection;
disposition. (a) Taxes imposed by
this section are due and payable to the commissioner when the gambling tax
return is required to be filed. Distributors
must file their monthly sales figures with the commissioner on a form
prescribed by the commissioner. Returns
covering the taxes imposed under this section must be filed with the
commissioner on or before the 20th day of the month following the close of the
previous calendar month. The
commissioner may require that the returns be filed via magnetic media or
electronic data transfer. The
commissioner shall prescribe the content, format, and manner of returns or
other documents pursuant to section 270C.30. The proceeds, along with the revenue received
from all license fees and other fees under sections 349.11 to 349.191, 349.211,
and 349.213, must be paid to the commissioner of management and budget for
deposit in the general fund.
(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by the organization is exempt from taxes imposed by chapter 297A and is exempt from all local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
(c) One-half of one percent of the revenue deposited in the general fund under paragraph (a), is appropriated to the commissioner of human services for the compulsive gambling treatment program established under section 245.98. One-half of one percent of the revenue deposited in the general fund under paragraph (a), is appropriated to the commissioner of human services for a grant to the state affiliate recognized by the National Council on Problem Gambling to increase public awareness of problem gambling, education and training for individuals and organizations providing effective treatment services to problem gamblers and their families, and research relating to problem gambling. Money appropriated by this paragraph must supplement and must not replace existing state funding for these programs.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 41. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read:
Subdivision 1. Reports
of sales. A manufacturer who sells
gambling product for use or resale in this state, or for receipt by a person or
entity in this state, shall file with the commissioner, on a form prescribed by
the commissioner, a report of gambling product sold to any person in the state,
including the established governing body of an Indian tribe recognized by the
United States Department of the Interior.
The report must be filed monthly on or before the 20th day of the month
succeeding the month in which the sale was made. The commissioner may require that the
report be submitted via magnetic media or electronic data transfer. The commissioner shall prescribe the
content, format, and manner of returns or other documents pursuant to section
270C.30. The commissioner may
inspect the premises, books, records, and inventory of a manufacturer without
notice during the normal business hours of the manufacturer. A person violating this section is guilty of
a misdemeanor.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 42. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read:
Subd. 4. Reports. A distributor shall report monthly to the
commissioner, on a form the commissioner prescribes, its sales of each type of
gambling product. This report must be
filed monthly on or before the 20th day of the month succeeding the month in
which the sale was made. The
commissioner may require that a distributor submit the monthly report and
invoices required in this subdivision via magnetic media or electronic data
transfer. The commissioner shall
prescribe the content, format, and manner of returns or other documents
pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 43. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read:
Subdivision 1. Reports. An organization must file with the
commissioner, on a form prescribed by the commissioner, a report showing all
gambling activity conducted by that organization for each month. Gambling activity includes all gross
receipts, prizes, all gambling taxes owed or paid to the commissioner, all
gambling expenses, and all lawful purpose and board-approved expenditures. The report must be filed with the
commissioner on or before the 20th day of the month following the month in
which the gambling activity takes place.
The commissioner may require that the reports be filed via magnetic
media or electronic data transfer. The
commissioner shall prescribe the content, format, and manner of returns or
other documents pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 44. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read:
Subdivision 1. Monthly
return; cigarette distributor. On or
before the 18th day of each calendar month, a distributor with a place of
business in this state shall file a return with the commissioner showing the
quantity of cigarettes manufactured or brought in from outside the state or
purchased during the preceding calendar month and the quantity of cigarettes
sold or otherwise disposed of in this state and outside this state during that
month. A licensed distributor outside
this state shall in like manner file a return showing the quantity of
cigarettes shipped or transported into this state during the preceding calendar
month. Returns must be made in the
form and manner prescribed by The commissioner shall prescribe the
content, format, and manner of returns pursuant to section 270C.30, and the
returns must contain any other information required by the commissioner. The return must be accompanied by a
remittance for the full unpaid tax liability shown by it. For distributors subject to the accelerated
tax payment requirements in subdivision 10, the return for the May liability is
due two business days before June 30th of the year and the return for the June
liability is due on or before August 18th of the year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 45. Minnesota Statutes 2014, section 297F.23, is amended to read:
297F.23
JUDICIAL REVIEW.
In lieu of an administrative appeal under
section 270C.35, a person aggrieved by an order of the commissioner fixing a
tax, penalty, or interest under this chapter may, within 60 days from the notice
date of the notice of the order, appeal to the Tax Court in the manner
provided under section 271.06. For
purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or
interest.
EFFECTIVE
DATE. This section is
effective for orders dated after December 31, 2016.
Sec. 46. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read:
Subdivision 1. Monthly
returns; manufacturers, wholesalers, brewers, or importers. On or before the 18th day of each
calendar month following the month in which a licensed manufacturer or
wholesaler first sells wine and distilled spirits within the state, or a brewer
or importer first sells or imports fermented malt beverages, or a wholesaler
knowingly acquires title to or possession of untaxed fermented malt beverages,
the licensed manufacturer, wholesaler, brewer, or importer liable for the
excise tax must file a return with the commissioner, and in addition must keep
records and render reports as required by the commissioner. Returns must be made in a form and manner
prescribed by the commissioner, and The commissioner shall prescribe the
content, format, and manner of returns pursuant to section 270C.30. The returns must contain any other
information required by the commissioner.
Returns must be accompanied by a remittance for the full unpaid tax
liability. Returns must be filed
regardless of whether a tax is due.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 47. Minnesota Statutes 2014, section 297G.22, is amended to read:
297G.22
JUDICIAL REVIEW.
In lieu of an administrative appeal under
this chapter, a person aggrieved by an order of the commissioner fixing a tax,
penalty, or interest under this chapter may, within 60 days from the date of
the notice date of the order, appeal to the Tax Court in the manner
provided under section 271.06. For
purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or
interest.
EFFECTIVE
DATE. This section is
effective for orders dated after December 31, 2016.
Sec. 48. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision to read:
Subd. 11. Format. The commissioner shall prescribe the
content, format, and manner of returns or other documents pursuant to section
270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 49. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read:
Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole or in part, the taxpayer may contest the denial by:
(1) filing an administrative appeal with the commissioner under section 270C.35;
(2) filing an appeal in Tax Court within
60 days of the notice date of the notice of denial; or
(3) filing an action in the district court to recover the refund.
(b) An action in the district court must
be brought within 18 months following of the notice date
of the notice of denial. For purposes
of this section, "notice date" is defined in section 270C.35,
subdivision 3. An action for refund
of tax or surcharge must be brought in the district court of the district in
which lies the taxpayer's principal place of business or in the District Court
for Ramsey County. If a taxpayer files a
claim for refund and the commissioner has not issued a denial of the claim, the
taxpayer may bring an action in the district court or the Tax Court at any time
after the expiration of six months from the time the claim was filed.
EFFECTIVE
DATE. This section is
effective for claims for refund denied after December 31, 2016.
Sec. 50. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read:
Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a repayment required under subdivision 1, if the commissioner, in consultation with the commissioner of employment and economic development and appropriate officials from the local government units in which the qualified business is located, determines that requiring repayment of the tax is not in the best interest of the state or the local government units and the business ceased operating as a result of circumstances beyond its control including, but not limited to:
(1) a natural disaster;
(2) unforeseen industry trends; or
(3) loss of a major supplier or customer.
(b)(1) The commissioner shall waive repayment required under subdivision 1a if the commissioner has waived repayment by the operating business under subdivision 1, unless the person that received benefits without having to operate a business in the zone was a contributing factor in the qualified business becoming subject to repayment under subdivision 1;
(2) the commissioner shall waive the repayment required under subdivision 1a, even if the repayment has not been waived for the operating business if:
(i) the person that received benefits without having to operate a business in the zone and the business that operated in the zone are not related parties as defined in section 267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and
(ii) actions of the person were not a contributing factor in the qualified business becoming subject to repayment under subdivision 1.
(c) Requests for waiver must be made no
later than 60 days after the earlier of the notice date of an order issued
under subdivision 4, paragraph (d), or the date of a tax statement issued under
subdivision 4, paragraph (c). For
purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order.
EFFECTIVE
DATE. This section is
effective for orders of the commissioner of revenue dated after
December 31, 2016.
Sec. 51. REPEALER.
Minnesota Statutes 2014, section
290C.06, is repealed.
EFFECTIVE DATE. This section is effective the day following final enactment."
Delete the title and insert:
"A bill for an act relating to financing of state and local government; making changes to property, individual income, corporate franchise, estate, sales and use, excise, petroleum and other fuel, gambling, tobacco, special, mineral, local, and other taxes and tax-related provisions; modifying local government aids and credits; amending county levy authority; exempting certain electric generation facility property and soccer stadium property from property tax; extending homestead value exclusion for spouses of qualifying deceased veterans; amending the state general levy; abating local property taxes in the Lake Mille Lacs area; establishing school building bond agricultural credit; establishing reimbursement for certain out-of-home placements of Indian children; establishing riparian protection aid; forgiving certain aid penalties; providing for federal tax conformity; modifying income tax credits; providing income tax credits; changing income tax modifications; modifying residency rules; modifying sales and use tax definitions; modifying sales and use tax collection requirements; modifying sales and use tax exemptions; providing for reimbursement from the Minnesota Sports Facilities Authority of certain sales and use taxes; allocating certain sales and use tax revenues; modifying and allowing certain local sales and use taxes; modifying provisions for gasoline used as a substitute for aviation gasoline; providing tax rates on paper pull-tabs sold at bingo halls; providing definitions and a tax rate for vapor products; modifying taconite tax distributions and deposits; providing for local development projects; modifying public finance provisions; transferring approval authority from the Iron Range Resources and Rehabilitation Board to the commissioner of Iron Range resources and rehabilitation; requiring the commissioner of Iron Range resources and rehabilitation to seek a recommendation from the board in certain circumstances; providing for transfer of ownership, eligibility, certification, and notification requirements for enrollment of land in the Sustainable Forest Incentive Act; modifying the budget reserve; providing a new markets grant program; providing a tax time savings grant program; providing civil and criminal penalties for sales suppression devices; allocating additional amounts to the border city enterprise zones; making clarifying and conforming changes; removing obsolete language; requiring reports; appropriating money; amending Minnesota Statutes 2014, sections 13.51, subdivision 2; 15.38, subdivision 7; 69.021, subdivision 5; 116J.424; 136A.129, subdivision 3; 138.053; 216B.161, subdivision 1; 270.071, subdivisions 2, 7, 8, by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision; 270.12, by adding a subdivision; 270.82, subdivision 1; 270A.03, subdivision 5; 270B.14, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, subdivision 2; 270C.347, subdivision 1; 270C.35, subdivision 3, by adding a subdivision; 270C.38, subdivision 1; 270C.445, by adding a subdivision; 270C.446, subdivision 5; 270C.72, subdivision 4; 270C.89, subdivision 1; 271.06, subdivisions 2, 7; 271.08, subdivision 1; 271.21, subdivision 2; 272.02, subdivisions 9, 10, by adding subdivisions; 272.0211, subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, by adding a subdivision; 272.0295, subdivision 4; 272.115, subdivision 2; 272.162; 273.032; 273.061, subdivision 7; 273.08; 273.121, by adding a subdivision;
273.124, subdivision 13; 273.13, subdivisions 22, 34; 273.1392; 273.1393; 273.33, subdivisions 1, 2; 273.371; 273.372, subdivisions 1, 2, 4, by adding subdivisions; 274.01, subdivision 1; 274.13, subdivision 1; 274.135, subdivision 3; 275.025, subdivisions 1, 2, 4; 275.065, subdivisions 1, 3; 275.066; 275.07, subdivisions 1, 2; 275.08, subdivision 1b; 275.62, subdivision 2; 276.04, subdivision 2; 276.11, subdivision 1; 276.111; 276A.01, subdivisions 8, 17; 278.01, subdivision 1; 278.12; 278.14, subdivision 1; 279.01, subdivisions 1, 2, 3; 279.03, subdivision 2; 279.37, subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 282.38, subdivision 1; 287.2205; 289A.08, subdivisions 11, 16, by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18, subdivision 1, by adding a subdivision; 289A.20, subdivision 2; 289A.31, subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, subdivision 6; 289A.50, subdivision 7; 289A.60, subdivision 28, by adding a subdivision; 290.01, subdivisions 7, 19a, 19b, 19c, 19d; 290.06, subdivision 22; 290.067, subdivisions 1, 2b; 290.0671, subdivision 7; 290.0672, subdivision 1; 290.0674, subdivision 2, by adding a subdivision; 290.0677, subdivision 1a; 290.068, subdivision 2; 290.091, subdivisions 2, 3; 290.0921, subdivision 3; 290.0922, subdivision 2; 290.17, subdivision 2; 290.31, subdivision 1; 290A.03, subdivision 13; 290A.19; 290C.01; 290C.02, subdivisions 1, 3, 6; 290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 1; 290C.10; 290C.11; 290C.13, subdivision 6; 291.016, subdivisions 2, 3; 291.03, subdivisions 9, 11, by adding a subdivision; 291.031; 295.54, subdivision 2; 295.55, subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions; 296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4; 296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision 1; 296A.22, subdivision 9; 296A.26; 297A.61, subdivisions 3, 10; 297A.66, subdivisions 1, 2, 4, by adding a subdivision; 297A.67, subdivision 7a, by adding subdivisions; 297A.68, subdivision 9; 297A.70, subdivision 14; 297A.71, by adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.815, subdivision 3; 297A.82, subdivisions 4, 4a; 297D.02; 297E.02, subdivisions 1, 3, 7; 297E.04, subdivision 1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.01, subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by adding subdivisions; 297F.09, subdivision 1; 297F.23; 297G.09, subdivision 1; 297G.22; 297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2; 298.001, subdivision 8; 298.01, subdivisions 3b, 4c; 298.22, subdivisions 1, 1a, 5a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5, 6; 298.223, subdivisions 1, 2; 298.227; 298.24, by adding a subdivision; 298.28, subdivisions 3, 5, 7a, 9d; 298.292, subdivision 2; 298.294; 298.296, subdivisions 1, 2, 4; 298.2961, subdivisions 2, 4; 298.298; 298.46, subdivision 2; 349.12, by adding a subdivision; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32; 412.301; 469.034, subdivision 2; 469.101, subdivision 1; 469.169, by adding a subdivision; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.319, subdivision 5; 473.39, by adding a subdivision; 473H.09; 475.58, subdivision 3b; 475.60, subdivision 2; 477A.013, by adding a subdivision; 477A.017, subdivisions 2, 3; 477A.03, subdivision 2b; 477A.19, by adding subdivisions; 559.202, subdivision 2; 609.5316, subdivision 3; Minnesota Statutes 2015 Supplement, sections 16A.152, subdivision 2; 289A.02, subdivision 7; 290.01, subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision 15; 291.005, subdivision 1; 297E.02, subdivision 6; 477A.015; 477A.03, subdivision 2a; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1988, chapter 645, section 3, as amended; Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5, 6; Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended; article 3, section 51; Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended; Laws 2001, First Special Session chapter 5, article 3, section 86; Laws 2008, chapter 154, article 9, section 21, subdivision 2; Laws 2008, chapter 366, article 7, section 20; Laws 2009, chapter 88, article 2, section 46, subdivisions 1, as amended, 2, 3, as amended, 4, 5; article 5, section 17, as amended; Laws 2014, chapter 308, article 1, section 14, subdivision 2; article 6, section 9; article 9, section 94; proposing coding for new law in Minnesota Statutes, chapters 103C; 116J; 216B; 270C; 273; 290; 290B; 290C; 293; 477A; 609; repealing Minnesota Statutes 2014, sections 272.02, subdivision 23; 281.22; 290.067, subdivisions 2, 2a; 290C.02, subdivisions 5, 9; 290C.06; 297F.05, subdivision 1a; 477A.20; Minnesota Rules, parts 8092.1400; 8092.2000; 8100.0700; 8125.1300, subpart 3."
We request the adoption of this report and repassage of the bill.
House Conferees: Greg Davids, Steve Drazkowski, Bob Barrett, Chris Swedzinski and Gene Pelowski Jr.
Senate Conferees: Rod Skoe, Ann H. Rest, Lyle Koenen, Kari Dziedzic and Paul E. Gazelka.
Davids moved that the report of the Conference Committee on H. F. No. 848 be adopted and that the bill be repassed as amended by the Conference Committee.
A roll call was requested and properly seconded.
The question was taken on the Davids motion and the roll was called. There were 87 yeas and 43 nays as follows:
Those who voted in the affirmative were:
Albright
Anderson, C.
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Atkins
Backer
Baker
Barrett
Bennett
Christensen
Cornish
Daniels
Davids
Dean, M.
Dettmer
Drazkowski
Ecklund
Erickson
Fabian
Fenton
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hancock
Heintzeman
Hertaus
Hilstrom
Hoppe
Hornstein
Howe
Johnson, B.
Kiel
Knoblach
Koznick
Lesch
Lien
Lillie
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Marquart
McDonald
McNamara
Metsa
Miller
Murphy, M.
Nash
Newberger
Newton
Nornes
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Poppe
Pugh
Quam
Rarick
Runbeck
Sanders
Schomacker
Scott
Smith
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Vogel
Whelan
Wills
Zerwas
Spk. Daudt
Those who voted in the negative were:
Allen
Bernardy
Bly
Carlson
Clark
Considine
Davnie
Erhardt
Fischer
Flanagan
Freiberg
Halverson
Hansen
Hausman
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Liebling
Loeffler
Mahoney
Mariani
Masin
Melin
Moran
Mullery
Murphy, E.
Nelson
Norton
Pinto
Rosenthal
Schoen
Schultz
Selcer
Simonson
Slocum
Sundin
Thissen
Wagenius
Ward
Yarusso
Youakim
The motion prevailed.
H. F. No. 848, A bill for an act relating to financing and operation of state and local government; making changes to individual income, corporate franchise, property, sales and use, excise, estate, mineral, tobacco, gambling, special, local, and other taxes and tax-related provisions; providing for long-term care savings plans; modifying business income tax credits; modifying income tax subtractions and additions; modifying the definition of resident for income tax purposes; modifying the dependent care credit, education credit, and research credit; providing credits for MNsure premium payments, attaining a master's degree, student loan payments, college savings plans, and job training centers; modifying reciprocity provisions; providing an additional personal and dependent exemption; allowing a reverse referendum for property tax levies under certain circumstances; modifying dates for local referenda related to spending; changing proposed levy certification dates for special taxing districts; modifying general property tax provisions; providing for joint county and township assessment agreements; modifying the definition of agricultural homestead; modifying property classification definitions; permanently extending the market value exclusion for surviving spouses of deceased service members and permanently disabled
veterans; modifying provisions for appeals and equalizations courses; providing a tax credit for overvalued property; modifying and phasing out the state general levy; modifying proposed levy provisions; modifying due dates for property taxes; changing withdrawal procedures for the Sustainable Forest Incentive Program; authorizing valuation exclusion for certain improvements to homestead and commercial-industrial property; providing an increased estate tax exemption amount and other estate tax provisions; providing for certain economic development projects; providing for the Minnesota New Markets Jobs Act; restricting expenditures and other powers related to certain rail projects; providing for additional border city zone allocations; modifying general tax increment financing provisions; modifying provisions for the Destination Medical Center; modifying general and local sales and use tax provisions; modifying sales tax definitions and refunds related to petroleum and special fuel, durable medical equipment, instructional materials, propane tanks, bullion, capital equipment, and nonprofit groups; providing for a vendor allowance; providing exemptions for animal shelters, city celebrations, BMX tracks, and certain building and construction materials; repealing the tax on digital products; providing a separate rate for certain modular housing; modifying gambling taxes; providing a definition and rate of tax for vapor products under the tobacco tax; modifying cigarette stamp provisions; modifying rates for pull tabs sold at bingo halls; modifying miscellaneous tax provisions; modifying sales tax deposits, accounts, and provisions for transportation purposes; modifying local government aids and credits; providing for a school building bond agricultural credit; modifying assessor accreditation; accelerating the repeal of MinnesotaCare provider taxes; creating a county program aid working group; establishing trust fund accounts; providing trust fund payments to counties; modifying provisions related to payments in lieu of taxes for natural resources land; repealing the political contribution refund; making various conforming and technical changes; requiring reports; appropriating money; amending Minnesota Statutes 2014, sections 16A.726; 40A.18, subdivision 2; 62V.05, subdivision 5; 97A.055, subdivision 2; 97A.056, subdivision 1a, by adding subdivisions; 116J.8737, subdivisions 5, 12; 116P.02, subdivision 1, by adding a subdivision; 123B.63, subdivision 3; 126C.17, subdivision 9; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.46; 237.19; 270A.03, subdivision 7; 270B.14, subdivision 17; 270C.13, subdivision 1; 270C.9901; 273.061, subdivision 4; 273.072, by adding a subdivision; 273.124, subdivision 14; 273.13, subdivisions 23, 25, 34; 274.014, subdivision 2; 275.025; 275.065, subdivisions 1, 3; 275.07, subdivisions 1, 2; 275.08, subdivision 1b; 275.60; 276.04, subdivisions 1, 2; 278.12; 279.01, subdivisions 1, 3; 279.37, subdivision 2; 282.01, subdivision 4; 282.261, subdivision 2; 289A.02, subdivision 7, as amended; 289A.10, subdivision 1; 289A.12, by adding a subdivision; 289A.20, subdivision 4; 289A.50, subdivision 1; 290.01, subdivisions 6, 7, 19, as amended, 19a, 19b, 19d, 29, 31, as amended; 290.06, by adding subdivisions; 290.067, subdivision 1; 290.0671, subdivisions 1, 6a; 290.0672, subdivision 2; 290.0674, subdivisions 1, 2, by adding a subdivision; 290.0677, subdivision 2; 290.068, subdivisions 1, 3, 6a, by adding a subdivision; 290.081; 290.091, subdivision 2; 290.191, subdivision 5; 290A.03, subdivision 15, as amended; 290C.10; 291.005, subdivision 1, as amended; 291.016, subdivision 3; 291.03, subdivisions 1, 1d; 296A.01, subdivision 12; 296A.08, subdivision 2; 296A.16, subdivision 2; 297A.61, subdivisions 3, 4, 38; 297A.62, subdivision 3; 297A.668, subdivisions 1, 2, 6a, 7; 297A.669, subdivision 14a; 297A.67, subdivisions 7a, 13a, by adding subdivisions; 297A.68, subdivisions 5, 19; 297A.70, subdivisions 4, 10, 14, by adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.77, subdivision 3; 297A.815, subdivision 3; 297A.94; 297A.992, subdivisions 1, 6, 6a, by adding a subdivision; 297A.994, subdivision 4; 297E.02, subdivisions 1, 6; 297F.01, subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by adding subdivisions; 297F.06, subdivisions 1, 4; 297F.08, subdivisions 5, 7, 8; 297F.09, subdivision 1; 297I.20, by adding a subdivision; 298.24, subdivision 1; 309.53, subdivision 3; 345.42, by adding a subdivision; 349.12, by adding a subdivision; 412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045, subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1; 469.053, subdivision 5; 469.0724; 469.107, subdivision 2; 469.169, by adding a subdivision; 469.174, subdivisions 12, 14; 469.175, subdivision 3; 469.176, subdivisions 4, 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 469.40, subdivision 11, as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; 469.47, subdivision 4, as amended; 471.57, subdivision 3; 471.571, subdivision 3; 471.572, subdivisions 2, 4; 473.13, by adding a subdivision; 473.39, by adding a subdivision; 473.446, subdivision 1; 473H.09; 473H.17, subdivision 1a; 475.59; 477A.013, subdivision 10, by adding a subdivision; 477A.017, subdivision 2, by adding a subdivision; 477A.03, subdivisions 2a, 2b; 477A.10; 477A.11, by adding subdivisions; 609.5316, subdivision 3; 611.27, subdivisions 13, 15; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1991, chapter 291, article 8, section 27, subdivisions 3,
as amended, 4, as amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended; Laws 2008, chapter 366, article 7, section 20; Laws 2009, chapter 88, article 5, section 17, as amended; Laws 2011, First Special Session chapter 9, article 6, section 97, subdivision 6; Laws 2014, chapter 308, article 6, section 7; proposing coding for new law in Minnesota Statutes, chapters 11A; 16A; 16B; 116J; 116P; 117; 273; 274; 275; 290; 297A; 416; 459; 473; 477A; 609; proposing coding for new law as Minnesota Statutes, chapter 116X; repealing Minnesota Statutes 2014, sections 10A.322, subdivision 4; 13.4967, subdivision 2; 205.10, subdivision 3; 290.06, subdivision 23; 290.067, subdivisions 2, 2a, 2b; 297A.61, subdivisions 50, 51, 52, 53, 54, 55, 56; 297A.992, subdivision 12; 297F.05, subdivision 1a; 477A.017, subdivision 3; 477A.085; 477A.19; Minnesota Rules, part 4503.1400, subpart 4.
The bill was read for the third time, as amended by Conference, and placed upon its repassage.
The question was taken on the repassage of the bill and the roll was called. There were 123 yeas and 10 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anderson, C.
Anderson, M.
Anderson, P.
Anzelc
Applebaum
Atkins
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Drazkowski
Ecklund
Erhardt
Erickson
Fabian
Fenton
Fischer
Flanagan
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Kahn
Kelly
Kiel
Knoblach
Koznick
Laine
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
McNamara
Melin
Metsa
Miller
Moran
Mullery
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Sundin
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Yarusso
Youakim
Zerwas
Spk. Daudt
Those who voted in the negative were:
Anderson, S.
Freiberg
Hansen
Hornstein
Johnson, S.
Lesch
Liebling
Murphy, E.
Pinto
Thissen
The bill was repassed, as amended by Conference, and its title agreed to.
Freiberg was excused between the hours of 12:40 p.m. and 6:20 p.m.
CONFERENCE COMMITTEE REPORT ON H. F. No. 3384
A bill for an act relating to insurance; making changes to the life insurance reserves; amending Minnesota Statutes 2014, sections 61A.24, subdivision 12, by adding a subdivision; 61A.25.
May 22, 2016
The Honorable Kurt L. Daudt
Speaker of the House of Representatives
The Honorable Sandra L. Pappas
President of the Senate
We, the undersigned conferees for H. F. No. 3384 report that we have agreed upon the items in dispute and recommend as follows:
That the House concur in the Senate amendment.
We request the adoption of this report and repassage of the bill.
House Conferees: Joe Hoppe, Greg Davids and Joe Atkins.
Senate Conferees: Vicki Jensen, Bobby Joe Champion and Eric R. Pratt.
Hoppe moved that the report of the Conference Committee on H. F. No. 3384 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
H. F. No. 3384, A bill for an act relating to insurance; making changes to the life insurance reserves; amending Minnesota Statutes 2014, sections 61A.24, subdivision 12, by adding a subdivision; 61A.25.
The bill was read for the third time, as amended by Conference, and placed upon its repassage.
The question was taken on the repassage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anderson, C.
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Atkins
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Drazkowski
Ecklund
Erhardt
Erickson
Fabian
Fenton
Fischer
Flanagan
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kiel
Knoblach
Koznick
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
McNamara
Melin
Metsa
Miller
Moran
Mullery
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Pinto
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Sundin
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Yarusso
Youakim
Zerwas
Spk. Daudt
The bill was repassed, as amended by Conference, and its title agreed to.
CONFERENCE COMMITTEE REPORT ON H. F. No. 3142
A bill for an act relating to health; amending provisions for the statewide trauma system, home care, hearing instrument dispensers, Zika preparedness, and food, beverage, and lodging establishments; amending Minnesota Statutes 2014, sections 144.605, subdivision 5; 144.608, subdivision 1; 144A.473, subdivision 2; 144A.475, subdivisions 3, 3b, by adding a subdivision; 144A.4791, by adding a subdivision; 144A.4792, subdivision 13; 144A.4799, subdivisions 1, 3; 144A.482; 144D.01, subdivision 2a; 144G.03, subdivisions 2, 4; 153A.14, subdivisions 2d, 2h; 153A.15, subdivision 2a; 157.15, subdivision 14; 157.16, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 144.
May 21, 2016
The Honorable Kurt L. Daudt
Speaker of the House of Representatives
The Honorable Sandra L. Pappas
President of the Senate
We, the undersigned conferees for H. F. No. 3142 report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 3142 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1. [62K.075]
PROVIDER NETWORK NOTIFICATIONS.
(a) A health carrier must update the
carrier's Web site at least once a month with any changes to the carrier's
provider network, including provider changes from in-network status to
out-of-network status.
(b) Upon notification from an enrollee,
a health carrier must reprocess any claim for services provided by a provider
whose status has changed from in-network to out-of-network as an in-network
claim if the service was provided after the network change went into effect but
before the change was posted as required under paragraph (a) unless the health
carrier notified the enrollee of the network change prior to the service being
provided. This paragraph does not apply
if the health carrier is able to verify that the health carrier's Web site
displayed the correct provider network status on the health carrier's Web site
at the time the service was provided.
(c) The limitations of section 62Q.56,
subdivision 2a, shall apply to payments required by paragraph (b).
Sec. 2. Minnesota Statutes 2015 Supplement, section 62U.04, subdivision 11, is amended to read:
Subd. 11. Restricted uses of the all-payer claims data. (a) Notwithstanding subdivision 4, paragraph (b), and subdivision 5, paragraph (b), the commissioner or the commissioner's designee shall only use the data submitted under subdivisions 4 and 5 for the following purposes:
(1) to evaluate the performance of the health care home program as authorized under sections 256B.0751, subdivision 6, and 256B.0752, subdivision 2;
(2) to study, in collaboration with the reducing avoidable readmissions effectively (RARE) campaign, hospital readmission trends and rates;
(3) to analyze variations in health care costs, quality, utilization, and illness burden based on geographical areas or populations;
(4) to evaluate the state innovation model (SIM) testing grant received by the Departments of Health and Human Services, including the analysis of health care cost, quality, and utilization baseline and trend information for targeted populations and communities; and
(5) to compile one or more public use files of summary data or tables that must:
(i) be available to the public for no or minimal cost by March 1, 2016, and available by Web-based electronic data download by June 30, 2019;
(ii) not identify individual patients, payers, or providers;
(iii) be updated by the commissioner, at least annually, with the most current data available;
(iv) contain clear and conspicuous explanations of the characteristics of the data, such as the dates of the data contained in the files, the absence of costs of care for uninsured patients or nonresidents, and other disclaimers that provide appropriate context; and
(v) not lead to the collection of additional
data elements beyond what is authorized under this section as of
June 30, 2015.
(b) The commissioner may publish the results of the authorized uses identified in paragraph (a) so long as the data released publicly do not contain information or descriptions in which the identity of individual hospitals, clinics, or other providers may be discerned.
(c) Nothing in this subdivision shall be
construed to prohibit the commissioner from using the data collected under
subdivision 4 to complete the state-based risk adjustment system assessment due
to the legislature on
October 1, 2015.
(d) The commissioner or the commissioner's
designee may use the data submitted under subdivisions 4 and 5 for the purpose
described in paragraph (a), clause (3), until July 1, 2016 2019.
(e) The commissioner shall consult with the all-payer claims database work group established under subdivision 12 regarding the technical considerations necessary to create the public use files of summary data described in paragraph (a), clause (5).
Sec. 3. Minnesota Statutes 2014, section 144.605, subdivision 5, is amended to read:
Subd. 5. Level IV designation. (a) The commissioner shall grant the appropriate level IV trauma hospital designation to a hospital that successfully completes the designation process under paragraph (b).
(b) The hospital must complete and submit
a self-reported survey and application to the Trauma Advisory Council for
review, verifying that the hospital meets the criteria as a level IV trauma
hospital. When the Trauma Advisory
Council is satisfied the application is complete, the council shall review
the application and, if the council approves the application, send a letter of
recommendation to the commissioner for final approval and designation. The commissioner shall grant a level IV
designation and shall arrange a site review visit within three years of the
designation and every three years thereafter, to coincide with the three-year
reverification process. commissioner shall arrange a site review visit. Upon successful completion of the site
review, the review team shall make written recommendations to the Trauma
Advisory Council. If approved by the
Trauma Advisory Council, a letter of recommendation shall be sent to the
commissioner for final approval and designation.
EFFECTIVE
DATE. This section is
effective October 1, 2016.
Sec. 4. Minnesota Statutes 2014, section 144.608, subdivision 1, is amended to read:
Subdivision 1. Trauma Advisory Council established. (a) A Trauma Advisory Council is established to advise, consult with, and make recommendations to the commissioner on the development, maintenance, and improvement of a statewide trauma system.
(b) The council shall consist of the following members:
(1) a trauma surgeon certified by the American Board of Surgery or the American Osteopathic Board of Surgery who practices in a level I or II trauma hospital;
(2) a general surgeon certified by the American Board of Surgery or the American Osteopathic Board of Surgery whose practice includes trauma and who practices in a designated rural area as defined under section 144.1501, subdivision 1, paragraph (b);
(3) a neurosurgeon certified by the American Board of Neurological Surgery who practices in a level I or II trauma hospital;
(4) a trauma program nurse manager or coordinator practicing in a level I or II trauma hospital;
(5) an emergency physician certified by the American Board of Emergency Medicine or the American Osteopathic Board of Emergency Medicine whose practice includes emergency room care in a level I, II, III, or IV trauma hospital;
(6) a trauma program manager or coordinator who practices in a level III or IV trauma hospital;
(7) a physician certified by the American Board of Family Medicine or the American Osteopathic Board of Family Practice whose practice includes emergency department care in a level III or IV trauma hospital located in a designated rural area as defined under section 144.1501, subdivision 1, paragraph (b);
(8) a nurse practitioner, as defined under section 144.1501, subdivision 1, paragraph (h), or a physician assistant, as defined under section 144.1501, subdivision 1, paragraph (j), whose practice includes emergency room care in a level IV trauma hospital located in a designated rural area as defined under section 144.1501, subdivision 1, paragraph (b);
(9)
a pediatrician physician certified in pediatric emergency
medicine by the American Board of Pediatrics or certified in pediatric
emergency medicine by the American Board of Emergency Medicine or certified by
the American Osteopathic Board of Pediatrics whose practice primarily
includes emergency department medical care in a level I, II, III, or IV
trauma hospital, or a surgeon certified in pediatric surgery by the American
Board of Surgery whose practice involves the care of pediatric trauma patients
in a trauma hospital;
(10) an orthopedic surgeon certified by the American Board of Orthopaedic Surgery or the American Osteopathic Board of Orthopedic Surgery whose practice includes trauma and who practices in a level I, II, or III trauma hospital;
(11) the state emergency medical services medical director appointed by the Emergency Medical Services Regulatory Board;
(12) a hospital administrator of a level III or IV trauma hospital located in a designated rural area as defined under section 144.1501, subdivision 1, paragraph (b);
(13) a rehabilitation specialist whose practice includes rehabilitation of patients with major trauma injuries or traumatic brain injuries and spinal cord injuries as defined under section 144.661;
(14) an attendant or ambulance director who is an EMT, EMT-I, or EMT-P within the meaning of section 144E.001 and who actively practices with a licensed ambulance service in a primary service area located in a designated rural area as defined under section 144.1501, subdivision 1, paragraph (b); and
(15) the commissioner of public safety or the commissioner's designee.
Sec. 5. [144.945]
ZIKA PREPAREDNESS AND RESPONSE.
The commissioner of health shall seek
additional federal funds for the following statewide planning, coordination,
preparation, and response activities related to the Zika virus:
(1) maintaining state and local public
health readiness to address Zika-related public health threats;
(2) conducting diagnostic tests of
patients who meet criteria for Zika testing and maintaining enhanced laboratory
surveillance activities related to Zika;
(3) engaging in Zika surveillance
activities, including evaluating patients for testing based on criteria,
advising health care providers on Zika virus research, providing
recommendations and interpretations of test results, and conducting
Zika-related public awareness and prevention activities; and
(4) conducting mosquito surveillance
activities under section 144.95 to enhance monitoring of areas where mosquitoes
carrying the Zika virus may be found in Minnesota, notwithstanding section
144.95, subdivision 10.
Sec. 6. Minnesota Statutes 2014, section 144A.471, subdivision 9, is amended to read:
Subd. 9. Exclusions from home care licensure. The following are excluded from home care licensure and are not required to provide the home care bill of rights:
(1) an individual or business entity providing only coordination of home care that includes one or more of the following:
(i) determination of whether a client needs home care services, or assisting a client in determining what services are needed;
(ii) referral of clients to a home care provider;
(iii) administration of payments for home care services; or
(iv) administration of a health care home established under section 256B.0751;
(2) an individual who is not an employee of a licensed home care provider if the individual:
(i) only provides services as an independent contractor to one or more licensed home care providers;
(ii) provides no services under direct agreements or contracts with clients; and
(iii) is contractually bound to perform services in compliance with the contracting home care provider's policies and service plans;
(3) a business that provides staff to home care providers, such as a temporary employment agency, if the business:
(i) only provides staff under contract to licensed or exempt providers;
(ii) provides no services under direct agreements with clients; and
(iii) is contractually bound to perform services under the contracting home care provider's direction and supervision;
(4) any home care services conducted by and for the adherents of any recognized church or religious denomination for its members through spiritual means, or by prayer for healing;
(5) an individual who only provides home care services to a relative;
(6) an individual not connected with a home care provider that provides assistance with basic home care needs if the assistance is provided primarily as a contribution and not as a business;
(7) an individual not connected with a home care provider that shares housing with and provides primarily housekeeping or homemaking services to an elderly or disabled person in return for free or reduced-cost housing;
(8) an individual or provider providing home-delivered meal services;
(9) an individual providing senior companion services and other older American volunteer programs (OAVP) established under the Domestic Volunteer Service Act of 1973, United States Code, title 42, chapter 66;
(10) an employee of a nursing home or
home care provider licensed under this chapter or an employee of a boarding
care home licensed under sections 144.50 to 144.56 who responds when
responding to occasional emergency calls from individuals residing in a
residential setting that is attached to or located on property contiguous to
the nursing home or, boarding care home, or location where
home care services are also provided;
(11) an employee of a nursing home or
home care provider licensed under this chapter or an employee of a boarding
care home licensed under sections 144.50 to 144.56 when providing occasional
minor services free of charge to individuals residing in a residential setting
that is attached to or located on property contiguous to the nursing home,
boarding care home, or location where home care services are also provided;
(11) (12) a member of a professional corporation organized under chapter 319B that does not regularly offer or provide home care services as defined in section 144A.43, subdivision 3;
(12) (13) the following
organizations established to provide medical or surgical services that do not
regularly offer or provide home care services as defined in section 144A.43,
subdivision 3: a business trust organized
under sections 318.01 to 318.04, a nonprofit corporation organized under
chapter 317A, a partnership organized under chapter 323, or any other entity
determined by the commissioner;
(13) (14) an individual or
agency that provides medical supplies or durable medical equipment, except when
the provision of supplies or equipment is accompanied by a home care service;
(14) (15) a physician
licensed under chapter 147;
(15) (16) an individual who
provides home care services to a person with a developmental disability who
lives in a place of residence with a family, foster family, or primary
caregiver;
(16) (17) a business that
only provides services that are primarily instructional and not medical
services or health-related support services;
(17) (18) an individual who
performs basic home care services for no more than 14 hours each calendar week
to no more than one client;
(18) (19) an individual or
business licensed as hospice as defined in sections 144A.75 to 144A.755 who is
not providing home care services independent of hospice service;
(19) (20) activities
conducted by the commissioner of health or a community health board as defined
in section 145A.02, subdivision 5, including communicable disease
investigations or testing; or
(20) (21) administering or
monitoring a prescribed therapy necessary to control or prevent a communicable
disease, or the monitoring of an individual's compliance with a health
directive as defined in section 144.4172, subdivision 6.
Sec. 7. Minnesota Statutes 2014, section 144A.473, subdivision 2, is amended to read:
Subd. 2. Temporary license. (a) For new license applicants, the commissioner shall issue a temporary license for either the basic or comprehensive home care level. A temporary license is effective for up to one year from the date of issuance. Temporary licensees must comply with sections 144A.43 to 144A.482.
(b) During the temporary license year, the commissioner shall survey the temporary licensee after the commissioner is notified or has evidence that the temporary licensee is providing home care services.
(c) Within five days of beginning the provision of services, the temporary licensee must notify the commissioner that it is serving clients. The notification to the commissioner may be mailed or emailed to the commissioner at the address provided by the commissioner. If the temporary licensee does not provide home care services during the temporary license year, then the temporary license expires at the end of the year and the applicant must reapply for a temporary home care license.
(d) A temporary licensee may request a change in the level of licensure prior to being surveyed and granted a license by notifying the commissioner in writing and providing additional documentation or materials required to update or complete the changed temporary license application. The applicant must pay the difference between the application fees when changing from the basic level to the comprehensive level of licensure. No refund will be made if the provider chooses to change the license application to the basic level.
(e) If the temporary licensee notifies the commissioner that the licensee has clients within 45 days prior to the temporary license expiration, the commissioner may extend the temporary license for up to 60 days in order to allow the commissioner to complete the on-site survey required under this section and follow-up survey visits.
Sec. 8. Minnesota Statutes 2014, section 144A.475, subdivision 3, is amended to read:
Subd. 3. Notice. (a) Prior to any suspension,
revocation, or refusal to renew a license, the home care provider shall be
entitled to notice and a hearing as provided by sections 14.57 to 14.69. In addition to any other remedy provided by
law, the commissioner may, without a prior contested case hearing, temporarily
suspend a license or prohibit delivery of services by a provider for not more
than 90 days, or issue a conditional license if the commissioner
determines that there are level 3 or 4 violations as defined in section
144A.474, subdivision 11, paragraph (b), that do not pose an imminent
risk of harm to the health or safety of persons in the provider's care, provided:
(1) advance notice is given to the home care provider;
(2) after notice, the home care provider fails to correct the problem;
(3) the commissioner has reason to believe that other administrative remedies are not likely to be effective; and
(4) there is an opportunity for a contested case hearing within the 30 days unless there is an extension granted by an administrative law judge pursuant to subdivision 3b.
(b) If the commissioner determines there
are:
(1) level 4 violations; or
(2) violations that pose an imminent
risk of harm to the health or safety of persons in the provider's care,
the commissioner may immediately temporarily suspend a
license, prohibit delivery of services by a provider, or issue a conditional
license without meeting the requirements of paragraph (a), clauses (1) to (4).
For the purposes of this subdivision, "level 3" and
"level 4" have the meanings given in section 144A.474, subdivision
11, paragraph (b).
Sec. 9. Minnesota Statutes 2014, section 144A.475, subdivision 3b, is amended to read:
Subd. 3b. Temporary
suspension Expedited hearing. (a)
Within five business days of receipt of the license holder's timely appeal of a
temporary suspension or issuance of a conditional license, the
commissioner shall request assignment of an administrative law judge. The request must include a proposed date,
time, and place of a hearing. A hearing
must be conducted by an administrative law judge within 30 calendar days of the
request for assignment, unless an extension is requested by either party and
granted by the administrative law judge for good cause. The commissioner shall issue a notice of
hearing by certified mail or personal service at least ten business days before
the hearing. Certified mail to the last
known address is sufficient. The scope
of the hearing shall be limited solely to the issue of whether the temporary
suspension or issuance of a conditional license should remain in effect
and whether there is sufficient evidence to conclude that the licensee's
actions or failure to comply with applicable laws are level 3 or 4 violations
as defined in section 144A.474, subdivision 11, paragraph (b), or that there
were violations that posed an imminent risk of harm to the health and safety of
persons in the provider's care.
(b) The administrative law judge shall issue findings of fact, conclusions, and a recommendation within ten business days from the date of hearing. The parties shall have ten calendar days to submit exceptions to the administrative law judge's report. The record shall close at the end of the ten-day period for submission of
exceptions. The commissioner's final order shall be issued within ten business days from the close of the record. When an appeal of a temporary immediate suspension or conditional license is withdrawn or dismissed, the commissioner shall issue a final order affirming the temporary immediate suspension or conditional license within ten calendar days of the commissioner's receipt of the withdrawal or dismissal. The license holder is prohibited from operation during the temporary suspension period.
(c) When the final order under paragraph (b) affirms an immediate suspension, and a final licensing sanction is issued under subdivisions 1 and 2 and the licensee appeals that sanction, the licensee is prohibited from operation pending a final commissioner's order after the contested case hearing conducted under chapter 14.
(d) A licensee whose license is
temporarily suspended must comply with the requirements for notification and
transfer of clients in subdivision 5. These
requirements remain if an appeal is requested.
Sec. 10. Minnesota Statutes 2014, section 144A.475, is amended by adding a subdivision to read:
Subd. 3c. Immediate
temporary suspension. (a) In
addition to any other remedies provided by law, the commissioner may, without a
prior contested case hearing, immediately temporarily suspend a license or
prohibit delivery of services by a provider for not more than 90 days, or issue
a conditional license, if the commissioner determines that there are:
(1) level 4 violations; or
(2) violations that pose an imminent risk
of harm to the health or safety of persons in the provider's care.
(b) For purposes of this subdivision,
"level 4" has the meaning given in section 144A.474, subdivision 11,
paragraph (b).
(c) A notice stating the reasons for
the immediate temporary suspension or conditional license and informing the
license holder of the right to an expedited hearing under subdivision 3b, must
be delivered by personal service to the address shown on the application or the
last known address of the license holder.
The license holder may appeal an order immediately temporarily
suspending a license or issuing a conditional license. The appeal must be made in writing by
certified mail or personal service. If
mailed, the appeal must be postmarked and sent to the commissioner within five
calendar days after the license holder receives notice. If an appeal is made by personal service, it
must be received by the commissioner within five calendar days after the
license holder received the order.
(d) A license holder whose license is
immediately temporarily suspended must comply with the requirements for
notification and transfer of clients in subdivision 5. These requirements remain if an appeal is
requested.
Sec. 11. Minnesota Statutes 2014, section 144A.4791, is amended by adding a subdivision to read:
Subd. 14. Application
of other law. Home care
providers may exercise the authority and are subject to the protections in
section 152.34.
Sec. 12. Minnesota Statutes 2014, section 144A.4792, subdivision 13, is amended to read:
Subd. 13. Prescriptions. There must be a current written or
electronically recorded prescription as defined in Minnesota Rules, part
6800.0100, subpart 11a section 151.01, subdivision 16a, for all
prescribed medications that the comprehensive home care provider is managing
for the client.
Sec. 13. Minnesota Statutes 2014, section 144A.4799, subdivision 1, is amended to read:
Subdivision 1. Membership. The commissioner of health shall appoint
eight persons to a home care provider home care and assisted living
program advisory council consisting of the following:
(1) three public members as defined in section 214.02 who shall be either persons who are currently receiving home care services or have family members receiving home care services, or persons who have family members who have received home care services within five years of the application date;
(2) three Minnesota home care licensees representing basic and comprehensive levels of licensure who may be a managerial official, an administrator, a supervising registered nurse, or an unlicensed personnel performing home care tasks;
(3) one member representing the Minnesota Board of Nursing; and
(4) one member representing the ombudsman for long-term care.
Sec. 14. Minnesota Statutes 2014, section 144A.4799, subdivision 3, is amended to read:
Subd. 3. Duties. (a) At the commissioner's request, the advisory council shall provide advice regarding regulations of Department of Health licensed home care providers in this chapter, including advice on the following:
(1) community standards for home care practices;
(2) enforcement of licensing standards and whether certain disciplinary actions are appropriate;
(3) ways of distributing information to licensees and consumers of home care;
(4) training standards;
(5) identify identifying
emerging issues and opportunities in the home care field, including the use of
technology in home and telehealth capabilities;
(6) allowable home care licensing modifications and exemptions, including a method for an integrated license with an existing license for rural licensed nursing homes to provide limited home care services in an adjacent independent living apartment building owned by the licensed nursing home; and
(7) recommendations for studies using
the data in section 62U.04, subdivision 4, including but not limited to studies
concerning costs related to dementia and chronic disease among an elderly
population over 60 and additional long-term care costs, as described in section
62U.10, subdivision 6.
(7) (b) The advisory council
shall perform other duties as directed by the commissioner.
Sec. 15. Minnesota Statutes 2014, section 144A.482, is amended to read:
144A.482
REGISTRATION OF HOME MANAGEMENT PROVIDERS.
(a) For purposes of this section, a home management provider is a person or organization that provides at least two of the following services: housekeeping, meal preparation, and shopping to a person who is unable to perform these activities due to illness, disability, or physical condition.
(b) A person or organization that provides only home management services may not operate in the state without a current certificate of registration issued by the commissioner of health. To obtain a certificate of registration, the person or organization must annually submit to the commissioner the name, mailing and physical addresses, email address, and telephone number of the person or organization and a signed statement declaring that the person or organization is aware that the home care bill of rights applies to their clients and that the person or organization will comply with the home care bill of rights provisions contained in section 144A.44. A person or organization applying for a certificate must also provide the name, business address, and telephone number of each of the persons responsible for the management or direction of the organization.
(c) The commissioner shall charge an annual registration fee of $20 for persons and $50 for organizations. The registration fee shall be deposited in the state treasury and credited to the state government special revenue fund.
(d) A home care provider that provides home management services and other home care services must be licensed, but licensure requirements other than the home care bill of rights do not apply to those employees or volunteers who provide only home management services to clients who do not receive any other home care services from the provider. A licensed home care provider need not be registered as a home management service provider but must provide an orientation on the home care bill of rights to its employees or volunteers who provide home management services.
(e) An individual who provides home
management services under this section must, within 120 days after beginning to
provide services, attend an orientation session approved by the commissioner
that provides training on the home care bill of rights and an orientation on
the aging process and the needs and concerns of elderly and disabled persons.
(f) The commissioner may suspend or revoke a provider's certificate of registration or assess fines for violation of the home care bill of rights. Any fine assessed for a violation of the home care bill of rights by a provider registered under this section shall be in the amount established in the licensure rules for home care providers. As a condition of registration, a provider must cooperate fully with any investigation conducted by the commissioner, including providing specific information requested by the commissioner on clients served and the employees and volunteers who provide services. Fines collected under this paragraph shall be deposited in the state treasury and credited to the fund specified in the statute or rule in which the penalty was established.
(g) The commissioner may use any of the powers granted in sections 144A.43 to 144A.4798 to administer the registration system and enforce the home care bill of rights under this section.
Sec. 16. Minnesota Statutes 2014, section 144D.01, subdivision 2a, is amended to read:
Subd. 2a. Arranged
home care provider. "Arranged
home care provider" means a home care provider licensed under Minnesota
Rules, chapter 4668, chapter 144A that provides services to some or
all of the residents of a housing with services establishment and that is
either the establishment itself or another entity with which the establishment
has an arrangement.
Sec. 17. Minnesota Statutes 2014, section 144G.03, subdivision 2, is amended to read:
Subd. 2. Minimum requirements for assisted living. (a) Assisted living shall be provided or made available only to individuals residing in a registered housing with services establishment. Except as expressly stated in this chapter, a person or entity offering assisted living may define the available services and may offer assisted living to all or some of the residents of a housing with services establishment. The services that comprise assisted living may be provided or made available directly by a housing with services establishment or by persons or entities with which the housing with services establishment has made arrangements.
(b) A person or entity entitled to use the phrase "assisted living," according to section 144G.02, subdivision 1, shall do so only with respect to a housing with services establishment, or a service, service package, or program available within a housing with services establishment that, at a minimum:
(1) provides or makes available
health-related services under a class A or class F home care license. At a minimum, health-related services must
include:
(i) assistance with self-administration of
medication, as defined in Minnesota Rules, part 4668.0003, subpart
2a, medication management, or medication administration as defined in
Minnesota Rules, part 4668.0003, subpart 21a in section 144A.43; and
(ii) assistance with at least three of the following seven activities of daily living: bathing, dressing, grooming, eating, transferring, continence care, and toileting.
All health-related services shall be provided in a manner
that complies with applicable home care licensure requirements in chapter 144A,
and sections 148.171 to 148.285, and Minnesota Rules, chapter 4668;
(2) provides necessary assessments of the
physical and cognitive needs of assisted living clients by a registered nurse,
as required by applicable home care licensure requirements in chapter 144A,
and sections 148.171 to 148.285, and Minnesota Rules, chapter 4668;
(3) has and maintains a system for
delegation of health care activities to unlicensed assistive health care
personnel by a registered nurse, including supervision and evaluation of the
delegated activities as required by applicable home care licensure requirements
in chapter 144A, and sections 148.171 to 148.285, and
Minnesota Rules, chapter 4668;
(4) provides staff access to an on-call registered nurse 24 hours per day, seven days per week;
(5) has and maintains a system to check on each assisted living client at least daily;
(6) provides a means for assisted living clients to request assistance for health and safety needs 24 hours per day, seven days per week, from the establishment or a person or entity with which the establishment has made arrangements;
(7) has a person or persons available 24 hours per day, seven days per week, who is responsible for responding to the requests of assisted living clients for assistance with health or safety needs, who shall be:
(i) awake;
(ii) located in the same building, in an attached building, or on a contiguous campus with the housing with services establishment in order to respond within a reasonable amount of time;
(iii) capable of communicating with assisted living clients;
(iv) capable of recognizing the need for assistance;
(v) capable of providing either the assistance required or summoning the appropriate assistance; and
(vi) capable of following directions;
(8) offers to provide or make available at least the following supportive services to assisted living clients:
(i) two meals per day;
(ii) weekly housekeeping;
(iii) weekly laundry service;
(iv) upon the request of the client, reasonable assistance with arranging for transportation to medical and social services appointments, and the name of or other identifying information about the person or persons responsible for providing this assistance;
(v) upon the request of the client, reasonable assistance with accessing community resources and social services available in the community, and the name of or other identifying information about the person or persons responsible for providing this assistance; and
(vi) periodic opportunities for socialization; and
(9) makes available to all prospective and current assisted living clients information consistent with the uniform format and the required components adopted by the commissioner under section 144G.06. This information must be made available beginning no later than six months after the commissioner makes the uniform format and required components available to providers according to section 144G.06.
Sec. 18. Minnesota Statutes 2014, section 144G.03, subdivision 4, is amended to read:
Subd. 4. Nursing assessment. (a) A housing with services establishment offering or providing assisted living shall:
(1) offer to have the arranged home care
provider conduct a nursing assessment by a registered nurse of the physical and
cognitive needs of the prospective resident and propose a service agreement
or service plan prior to the date on which a prospective resident executes
a contract with a housing with services establishment or the date on which a
prospective resident moves in, whichever is earlier; and
(2) inform the prospective resident of the availability of and contact information for long-term care consultation services under section 256B.0911, prior to the date on which a prospective resident executes a contract with a housing with services establishment or the date on which a prospective resident moves in, whichever is earlier.
(b) An arranged home care provider is not obligated to conduct a nursing assessment by a registered nurse when requested by a prospective resident if either the geographic distance between the prospective resident and the provider, or urgent or unexpected circumstances, do not permit the assessment to be conducted prior to the date on which the prospective resident executes a contract or moves in, whichever is earlier. When such circumstances occur, the arranged home care provider shall offer to conduct a telephone conference whenever reasonably possible.
(c) The arranged home care provider shall
comply with applicable home care licensure requirements in chapter 144A,
and sections 148.171 to 148.285, and Minnesota Rules, chapter 4668,
with respect to the provision of a nursing assessment prior to the delivery of
nursing services and the execution of a home care service plan or service
agreement.
Sec. 19. Minnesota Statutes 2014, section 146B.01, subdivision 28, is amended to read:
Subd. 28. Supervision. "Supervision" means the
physical presence of a technician licensed under this chapter while a body art
procedure is being performed and includes:
(1)
"direct supervision" where a licensed technician is physically
present in the establishment, and is within five feet and is in the line of
sight of the temporary licensee who is performing a body art procedure while
the procedure is being performed; and
(2) "indirect supervision" where a licensed technician is physically present in the establishment while a body art procedure is being performed by the temporary licensee.
Sec. 20. Minnesota Statutes 2014, section 146B.03, subdivision 4, is amended to read:
Subd. 4. Licensure
requirements. (a) An
applicant for licensure under this section shall must submit to
the commissioner on a form provided by the commissioner:
(1) proof that the applicant is over the age of 18;
(2) the type of license the applicant is applying for;
(3) all fees required under section 146B.10;
(4) proof of completing a minimum of 200 hours of supervised experience within each area for which the applicant is seeking a license, and must include an affidavit from the supervising licensed technician;
(5) proof of having satisfactorily completed coursework within the year preceding application and approved by the commissioner on bloodborne pathogens, the prevention of disease transmission, infection control, and aseptic technique. Courses to be considered for approval by the commissioner may include, but are not limited to, those administered by one of the following:
(i) the American Red Cross;
(ii) United States Occupational Safety and Health Administration (OSHA); or
(iii) the Alliance of Professional Tattooists; and
(6) any other relevant information requested by the commissioner.
The licensure requirements in this
paragraph are effective for all applications for new licenses received before
January 1, 2017.
(b) An applicant for licensure under
this section must submit to the commissioner on a form provided by the
commissioner:
(1) proof that the applicant is over
the age of 18;
(2) the type of license the applicant
is applying for;
(3) all fees required under section
146B.10;
(4) a log showing the completion of the
required supervised experience described under subdivision 12 that includes a
list of each licensed technician who provided the required supervision;
(5) a signed affidavit from each
licensed technician who the applicant listed in the log described in clause
(4);
(6)
proof of having satisfactorily completed a minimum of five hours of coursework,
within the year preceding application and approval by the commissioner, on
bloodborne pathogens, the prevention of disease transmission, infection
control, and aseptic technique. Courses
to be considered for approval by the commissioner may include, but are not
limited to, those administered by one of the following:
(i) the American Red Cross;
(ii) the United States Occupational
Safety and Health Administration (OSHA); or
(iii) the Alliance of Professional
Tattooists; and
(7) any other relevant information
requested by the commissioner.
The licensure requirements in this
paragraph are effective for all applications for new licenses received on or
after January 1, 2017.
Sec. 21. Minnesota Statutes 2014, section 146B.03, subdivision 6, is amended to read:
Subd. 6. Licensure term; renewal. (a) A technician's license is valid for two years from the date of issuance and may be renewed upon payment of the renewal fee established under section 146B.10.
(b) At renewal, a licensee must submit
proof of continuing education approved by the commissioner in the areas
identified in subdivision 4, clause (5).
(c) The commissioner shall notify the
technician of the pending expiration of a technician license at least 60 days
prior to license expiration.
Sec. 22. Minnesota Statutes 2014, section 146B.03, subdivision 7, is amended to read:
Subd. 7. Temporary licensure. (a) The commissioner may issue a temporary license to an applicant who submits to the commissioner on a form provided by the commissioner:
(1) proof that the applicant is over the age of 18;
(2) all fees required under section 148B.10; and
(3) a letter from a licensed technician
who has agreed to provide the supervision to meet the supervised experience
requirement under subdivision 4, clause (4).
(b) Upon completion of the required
supervised experience, the temporary licensee shall submit documentation of
satisfactorily completing the requirements under subdivision 4, clauses (3)
and (4), and the applicable fee under section 146B.10. The commissioner shall issue a new license in
accordance with subdivision 4.
(c) A temporary license issued under this subdivision is valid for one year and may be renewed for one additional year.
Sec. 23. Minnesota Statutes 2014, section 146B.03, is amended by adding a subdivision to read:
Subd. 12. Required
supervised experience. An
applicant for a body art technician license must complete the following minimum
supervised experience for licensure:
(1)
for a tattoo technician license an applicant must complete a minimum of 200
hours of tattoo experience under supervision;
(2) for a body piercing technician
license an applicant must perform 250 body piercings under direct supervision
and 250 body piercings under indirect supervision; and
(3) for a dual body art technician
license an applicant must complete a minimum of 200 hours of tattoo experience
under supervision and perform 250 body piercings under direct supervision and
250 body piercings under indirect supervision.
Sec. 24. Minnesota Statutes 2014, section 146B.07, subdivision 1, is amended to read:
Subdivision 1. Proof of age. (a) A technician shall require proof of age from clients who state they are 18 years of age or older before performing any body art procedure on a client. Proof of age must be established by one of the following methods:
(1) a valid driver's license or identification card issued by the state of Minnesota or another state that includes a photograph and date of birth of the individual;
(2) a valid military identification card issued by the United States Department of Defense;
(3) a valid passport;
(4) a resident alien card; or
(5) a tribal identification card.
(b) Before performing any body art procedure, the technician must provide the client with a disclosure and authorization form that indicates whether the client has:
(1) diabetes;
(2) a history of hemophilia;
(3) a history of skin diseases, skin lesions, or skin sensitivities to soap or disinfectants;
(4) a history of epilepsy, seizures, fainting, or narcolepsy;
(5) any condition that requires the client to take medications such as anticoagulants that thin the blood or interfere with blood clotting; or
(6) any other information that would aid the technician in the body art procedure process evaluation.
(c) The form must include a statement informing the client that the technician shall not perform a body art procedure if the client fails to complete or sign the disclosure and authorization form, and the technician may decline to perform a body art procedure if the client has any identified health conditions.
(d) The technician shall ask the client to sign and date the disclosure and authorization form confirming that the information listed on the form is accurate.
(e) Before performing any body art procedure, the technician shall offer and make available to the client personal draping, as appropriate.
Sec. 25. Minnesota Statutes 2014, section 146B.07, subdivision 2, is amended to read:
Subd. 2. Parent
or legal guardian consent; prohibitions.
(a) A technician may perform body piercings on an individual under
the age of 18 if:
(1) the individual's parent or legal
guardian is present and;
(2) the individual's parent or legal
guardian provides personal identification by using one of the methods described
in subdivision 1, paragraph (a), clauses (1) to (5), and provides documentation
that reasonably establishes that the individual is the parent or legal guardian
of the individual who is seeking the body piercing;
(3) the individual seeking the body
piercing provides proof of identification by using one of the methods described
in subdivision 1, paragraph (a), clauses (1) to (5), a current student
identification, or another official source that includes the name and a
photograph of the individual;
(4) a consent form and the
authorization form under subdivision 1, paragraph (b) is signed by the parent
or legal guardian in the presence of the technician,; and
(5) the piercing is not prohibited under paragraph (c).
(b) No technician shall tattoo any individual under the age of 18 regardless of parental or guardian consent.
(c) No nipple or genital piercing, branding, scarification, suspension, subdermal implantation, microdermal, or tongue bifurcation shall be performed by any technician on any individual under the age of 18 regardless of parental or guardian consent.
(d) No technician shall perform body art procedures on any individual who appears to be under the influence of alcohol, controlled substances as defined in section 152.01, subdivision 4, or hazardous substances as defined in rules adopted under chapter 182.
(e) No technician shall perform body art procedures while under the influence of alcohol, controlled substances as defined under section 152.01, subdivision 4, or hazardous substances as defined in the rules adopted under chapter 182.
(f) No technician shall administer anesthetic injections or other medications.
Sec. 26. [147.0375]
MEDICAL FACULTY LICENSE.
Subdivision 1. Requirements. The board shall issue a license to
practice medicine to any person who satisfies the requirements in paragraphs
(a) to (d).
(a) The applicant must satisfy all the
requirements established in section 147.02, subdivision 1, paragraphs (a), (e),
(f), (g), and (h).
(b) The applicant must present evidence
satisfactory to the board that the applicant is a graduate of a medical or
osteopathic school approved by the board as equivalent to accredited United
States or Canadian schools based upon its faculty, curriculum, facilities,
accreditation, or other relevant data. If
the applicant is a graduate of a medical or osteopathic program that is not
accredited by the Liaison Committee for Medical Education or the American
Osteopathic
Association, the applicant may use the Federation of State Medical Boards'
Federation Credentials Verification Service (FCVS) or its successor. If the applicant uses this service as allowed
under this paragraph, the physician application fee may be less than $200 but
must not exceed the cost of administering this paragraph.
(c) The applicant must present evidence
satisfactory to the board of the completion of two years of graduate, clinical
medical training in a program located in the United States, its territories, or
Canada and accredited by a national accrediting organization approved by the
board. This requirement does not apply:
(1) to an applicant who is admitted as a
permanent immigrant to the United States on or before October 1, 1991, as a
person of exceptional ability in the sciences according to Code of Federal
Regulations, title 20, section 656.22(d);
(2) to an applicant holding a valid
license to practice medicine in another state or country and issued a permanent
immigrant visa after October 1, 1991, as a person of extraordinary ability in
the field of science or as an outstanding professor or researcher according to
Code of Federal Regulations, title 8, section 204.5(h) and (i), or a temporary
nonimmigrant visa or status as a person of extraordinary ability in the field
of science according to Code of Federal Regulations, title 8, section 214.2(o);
or
(3) to an applicant who is licensed in
another state, has practiced five years without disciplinary action in the
United States, its territories, or Canada, has completed one year of the graduate,
clinical medical training required by this paragraph, and has passed the
Special Purpose Examination of the Federation of State Medical Boards within
three attempts in the 24 months before licensing.
(d) The applicant must present evidence
satisfactory to the board that the applicant has been appointed to serve as a
faculty member of a medical school accredited by the Liaison Committee of
Medical Education or an osteopathic medical school accredited by the American
Osteopathic Association.
Subd. 2. Medical
school review. The board may
contract with any qualified person or organization for the performance of a
review or investigation, including site visits if necessary, of any medical or
osteopathic school prior to approving the school under section 147.02,
subdivision 1, paragraph (b), or subdivision 1, paragraph (b), of this section. To the extent possible, the board shall
require the school being reviewed to pay the costs of the review or
investigation.
Subd. 3. Resignation
or termination for the medical faculty position. If a person holding a license issued
under this section resigns or is terminated from the academic medical center in
which the licensee is employed as a faculty member, the licensee must notify
the board in writing no later than 30 days after the date of termination or
resignation. Upon notification of
resignation or termination, the board shall terminate the medical license.
Subd. 4. Reporting
obligation. A person holding
a license issued under this section is subject to the reporting obligations of
section 147.111.
Subd. 5. Limitation
of practice. A person issued
a license under this section may only practice medicine within the clinical
setting of the academic medical center where the licensee is an appointed
faculty member or within a physician group practice affiliated with the
academic medical center.
Subd. 6. Continuing
education. The licensee must
meet the continuing education requirements under Minnesota Rules, chapter 5605.
Subd. 7. Expiration. This section expires July 1, 2018.
Sec. 27. Minnesota Statutes 2014, section 152.22, subdivision 14, is amended to read:
Subd. 14. Qualifying medical condition. "Qualifying medical condition" means a diagnosis of any of the following conditions:
(1) cancer, if the underlying condition or treatment produces one or more of the following:
(i) severe or chronic pain;
(ii) nausea or severe vomiting; or
(iii) cachexia or severe wasting;
(2) glaucoma;
(3) human immunodeficiency virus or acquired immune deficiency syndrome;
(4) Tourette's syndrome;
(5) amyotrophic lateral sclerosis;
(6) seizures, including those characteristic of epilepsy;
(7) severe and persistent muscle spasms, including those characteristic of multiple sclerosis;
(8) inflammatory bowel disease, including Crohn's disease;
(9) terminal illness, with a probable life expectancy of under one year, if the illness or its treatment produces one or more of the following:
(i) severe or chronic pain;
(ii) nausea or severe vomiting; or
(iii) cachexia or severe wasting; or
(10) any other medical condition or its treatment approved by the commissioner.
Sec. 28. Minnesota Statutes 2014, section 152.25, subdivision 3, is amended to read:
Subd. 3. Deadlines. (a) The commissioner shall adopt
rules necessary for the manufacturer to begin distribution of medical cannabis
to patients under the registry program by July 1, 2015, and have notice of
proposed rules published in the State Register prior to January 1, 2015.
(b) The commissioner shall, by November
1, 2014, advise the public and the cochairs of the task force on medical
cannabis therapeutic research established under section 152.36 if the
commissioner is unable to register two manufacturers by the December 1, 2014,
deadline. The commissioner shall provide
a written statement as to the reason or reasons the deadline will not be met. Upon request of the commissioner, the task
force shall extend the deadline by six months, but may not extend the deadline
more than once.
(c)
If notified by a manufacturer that distribution to patients may not begin by
the July 1, 2015, deadline, the commissioner shall advise the public and the
cochairs of the task force on medical cannabis therapeutic research. Upon notification by the commissioner, the
task force shall extend the deadline by six months, but may not extend the
deadline more than once.
Sec. 29. Minnesota Statutes 2014, section 152.25, subdivision 4, is amended to read:
Subd. 4. Reports. (a) The commissioner shall provide regular updates to the task force and to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services, public safety, judiciary, and civil law on medical cannabis therapeutic research regarding any changes in federal law or regulatory restrictions regarding the use of medical cannabis.
(b) The commissioner may submit medical research based on the data collected under sections 152.22 to 152.37 to any federal agency with regulatory or enforcement authority over medical cannabis to demonstrate the effectiveness of medical cannabis for treating a qualifying medical condition.
Sec. 30. Minnesota Statutes 2014, section 152.29, subdivision 3, is amended to read:
Subd. 3. Manufacturer;
distribution. (a) A manufacturer
shall require that employees licensed as pharmacists pursuant to chapter 151 be
the only employees to distribute give final approval for the distribution
of medical cannabis to a patient.
(b) A manufacturer may dispense medical cannabis products, whether or not the products have been manufactured by the manufacturer, but is not required to dispense medical cannabis products.
(c) Prior to distribution of any medical cannabis, the manufacturer shall:
(1) verify that the manufacturer has received the registry verification from the commissioner for that individual patient;
(2) verify that the person requesting the distribution of medical cannabis is the patient, the patient's registered designated caregiver, or the patient's parent or legal guardian listed in the registry verification using the procedures described in section 152.11, subdivision 2d;
(3) assign a tracking number to any medical cannabis distributed from the manufacturer;
(4) ensure that any employee of the manufacturer licensed as a pharmacist pursuant to chapter 151 has consulted with the patient to determine the proper dosage for the individual patient after reviewing the ranges of chemical compositions of the medical cannabis and the ranges of proper dosages reported by the commissioner. For purposes of this clause, a consultation may be conducted remotely using a videoconference, so long as the employee providing the consultation is able to confirm the identity of the patient, the consultation occurs while the patient is at a distribution facility, and the consultation adheres to patient privacy requirements that apply to health care services delivered through telemedicine;
(5) properly package medical cannabis in compliance with the United States Poison Prevention Packing Act regarding child-resistant packaging and exemptions for packaging for elderly patients, and label distributed medical cannabis with a list of all active ingredients and individually identifying information, including:
(i) the patient's name and date of birth;
(ii) the name and date of birth of the patient's registered designated caregiver or, if listed on the registry verification, the name of the patient's parent or legal guardian, if applicable;
(iii) the patient's registry identification number;
(iv) the chemical composition of the medical cannabis; and
(v) the dosage; and
(6) ensure that the medical cannabis distributed contains a maximum of a 30-day supply of the dosage determined for that patient.
(d) A manufacturer shall require any employee of the manufacturer who is transporting medical cannabis or medical cannabis products to a distribution facility to carry identification showing that the person is an employee of the manufacturer.
Sec. 31. Minnesota Statutes 2014, section 152.29, is amended by adding a subdivision to read:
Subd. 3a. Transportation
of medical cannabis; staffing. A
medical cannabis manufacturer may staff a transport motor vehicle with only one
employee if the medical cannabis manufacturer is transporting medical cannabis
to either a certified laboratory for the purpose of testing or a facility for
the purpose of disposal. If the medical
cannabis manufacturer is transporting medical cannabis for any other purpose or
destination, the transport motor vehicle must be staffed with a minimum of two
employees as required by rules adopted by the commissioner.
Sec. 32. Minnesota Statutes 2014, section 152.36, is amended by adding a subdivision to read:
Subd. 1a. Administration. The commissioner of health shall
provide administrative and technical support to the task force.
Sec. 33. Minnesota Statutes 2014, section 152.36, subdivision 2, is amended to read:
Subd. 2. Impact
assessment. The task force shall
hold hearings to conduct an assessment that evaluates evaluate
the impact of the use of medical cannabis and evaluates Minnesota's
activities and other states' activities involving medical cannabis, and
offer analysis of including, but not limited to:
(1) program design and implementation;
(2) the impact on the health care provider community;
(3) patient experiences;
(4) the impact on the incidence of substance abuse;
(5) access to and quality of medical cannabis and medical cannabis products;
(6) the impact on law enforcement and prosecutions;
(7) public awareness and perception; and
(8) any unintended consequences.
Sec. 34. Minnesota Statutes 2014, section 153A.14, subdivision 2d, is amended to read:
Subd. 2d. Certification
renewal notice. Certification must
be renewed annually. The commissioner
shall mail a renewal notice to the dispenser's last known address on record
with the commissioner by September 1 of each year. The notice must include a renewal
application and notice of fees required for renewal. A dispenser is not relieved from meeting the
renewal deadline on the basis that the dispenser did not receive the renewal
notice. In renewing a certificate, a dispenser shall follow the procedures for
applying for a certificate specified in subdivision 1.
Sec. 35. Minnesota Statutes 2014, section 153A.14, subdivision 2h, is amended to read:
Subd. 2h. Certification by examination. An applicant must achieve a passing score, as determined by the commissioner, on an examination according to paragraphs (a) to (c).
(a) The examination must include, but is not limited to:
(1) A written examination approved by the commissioner covering the following areas as they pertain to hearing instrument selling:
(i) basic physics of sound;
(ii) the anatomy and physiology of the ear;
(iii) the function of hearing instruments; and
(iv) the principles of hearing instrument selection.
(2) Practical tests of proficiency in the following techniques as they pertain to hearing instrument selling:
(i) pure tone audiometry, including air conduction testing and bone conduction testing;
(ii) live voice or recorded voice speech audiometry including speech recognition (discrimination) testing, most comfortable loudness level, and uncomfortable loudness measurements of tolerance thresholds;
(iii) masking when indicated;
(iv) recording and evaluation of audiograms and speech audiometry to determine proper selection and fitting of a hearing instrument;
(v) taking ear mold impressions;
(vi) using an otoscope for the visual observation of the entire ear canal; and
(vii) state and federal laws, rules, and regulations.
(b) The practical examination shall be administered by the commissioner at least twice a year.
(c) An applicant must achieve a passing score on all portions of the examination within a two-year period. An applicant who does not achieve a passing score on all portions of the examination within a two-year period must retake the entire examination and achieve a passing score on each portion of the examination. An applicant who does not apply for certification within one year of successful completion of the examination must retake the examination and achieve a passing score on each portion of the examination. An applicant may not take any part of the practical examination more than three times in a two-year period.
Sec. 36. Minnesota Statutes 2014, section 153A.15, subdivision 2a, is amended to read:
Subd. 2a. Hearings. If the commissioner proposes to take action against the dispenser as described in subdivision 2, the commissioner must first notify the person against whom the action is proposed to be taken and provide the person with an opportunity to request a hearing under the contested case provisions of chapter 14. Service of a notice of disciplinary action may be made personally or by certified mail, return receipt requested. If the person does not request a hearing by notifying the commissioner within 30 days after service of the notice of the proposed action, the commissioner may proceed with the action without a hearing.
Sec. 37. Minnesota Statutes 2014, section 157.15, subdivision 14, is amended to read:
Subd. 14. Special
event food stand. "Special
event food stand" means a food and beverage service establishment which is
used in conjunction with celebrations and special events, and which operates no
more than three times annually for no more than ten total days within
the applicable license period.
Sec. 38. Minnesota Statutes 2014, section 157.16, subdivision 4, is amended to read:
Subd. 4. Posting
requirements. Every food and
beverage service establishment, for-profit youth camp, hotel, motel, lodging
establishment, public pool, or resort must have the original license
posted in a conspicuous place at the establishment. Mobile food units, food carts, and
seasonal temporary food stands shall be issued decals with the initial license
and each calendar year with license renewals.
The current license year decal must be placed on the unit or stand in a
location determined by the commissioner.
Decals are not transferable.
Sec. 39. RESIDENTIAL
CARE AND SERVICES ELECTRONIC MONITORING WORK GROUP.
(a) A residential care and services
electronic monitoring work group is established to create recommendations for
legislation that authorizes the use of voluntary electronic monitoring to
protect vulnerable children and adults and hold accountable perpetrators of
abuse.
(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;
(3) the commissioner of health or a
designee;
(4) the commissioner of human services
or a designee;
(5) one representative of consumers or
victims;
(6) the ombudsman for long-term care
established under Minnesota Statutes, section 256.974;
(7) one representative from Care
Providers of Minnesota;
(8) one representative from LeadingAge
Minnesota;
(9) one representative from the
Minnesota Home Care Association;
(10) one representative from the
Minnesota chapter of AARP;
(11)
one representative of a nonprofit organization with a focus on Alzheimer's
disease;
(12) one representative of county
attorneys;
(13) one representative with legal
expertise on medical privacy; and
(14) one representative of direct-care
workers.
The commissioner of health
shall appoint the work group chair and convene its first meeting no later than
July 1, 2016.
(c) The work group shall be exempt from
the appointment requirements in Minnesota Statutes, section 15.0597.
(d) The work group may accept donated services
from a nonprofit organization that prevents abuse, neglect, and financial
exploitation of vulnerable adults.
(e) Work group members shall serve
without compensation or expense reimbursement.
(f) 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, 2017.
(g) The work group expires 30 days
following the completion of the work required by this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 40. APPROPRIATION.
$24,000 is appropriated in fiscal year
2017 from the general fund to the commissioner of health to administer the task
force on medical cannabis therapeutic research under Minnesota Statutes,
section 152.36, and for the task force to conduct the impact assessment on the
use of cannabis for medicinal purposes.
Sec. 41. APPROPRIATION
CANCELLATION.
Effective July 1, 2016, the appropriation in Laws 2014, chapter 311, section 21, subdivision 2, of $24,000 to the Legislative Coordinating Commission is canceled to the general fund."
Delete the title and insert:
"A bill for an act relating to health; requiring a health carrier to update its Web site; amending provisions for the all-payer claims data, statewide trauma system, home care, assisted living, body art, hearing instrument dispensers, and food, beverage, and lodging establishments; directing activities for response to the Zika virus; adopting requirements for a medical faculty license; changing provisions in the medical cannabis program; establishing a residential care and services electronic monitoring work group; appropriating money and canceling a specific appropriation; amending Minnesota Statutes 2014, sections 144.605, subdivision 5; 144.608, subdivision 1; 144A.471, subdivision 9; 144A.473, subdivision 2; 144A.475, subdivisions 3, 3b, by adding a subdivision; 144A.4791, by adding a subdivision; 144A.4792, subdivision 13; 144A.4799, subdivisions 1, 3; 144A.482; 144D.01, subdivision 2a; 144G.03, subdivisions 2, 4; 146B.01, subdivision 28; 146B.03, subdivisions 4, 6, 7, by adding a subdivision; 146B.07, subdivisions 1, 2; 152.22, subdivision 14; 152.25, subdivisions 3, 4; 152.29, subdivision 3, by adding a subdivision; 152.36, subdivision 2, by adding a subdivision; 153A.14, subdivisions 2d, 2h; 153A.15, subdivision 2a; 157.15, subdivision 14; 157.16, subdivision 4; Minnesota Statutes 2015 Supplement, section 62U.04, subdivision 11; proposing coding for new law in Minnesota Statutes, chapters 62K; 144; 147."
We request the adoption of this report and repassage of the bill.
House Conferees: Nick Zerwas, Tara Mack and Peter Fischer.
Senate Conferees: Kathy Sheran, John Marty and Jim Abeler.
Zerwas moved that the report of the Conference Committee on H. F. No. 3142 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
H. F. No. 3142, A bill for an act relating to health; amending provisions for the statewide trauma system, home care, hearing instrument dispensers, Zika preparedness, and food, beverage, and lodging establishments; amending Minnesota Statutes 2014, sections 144.605, subdivision 5; 144.608, subdivision 1; 144A.473, subdivision 2; 144A.475, subdivisions 3, 3b, by adding a subdivision; 144A.4791, by adding a subdivision; 144A.4792, subdivision 13; 144A.4799, subdivisions 1, 3; 144A.482; 144D.01, subdivision 2a; 144G.03, subdivisions 2, 4; 153A.14, subdivisions 2d, 2h; 153A.15, subdivision 2a; 157.15, subdivision 14; 157.16, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 144.
The bill was read for the third time, as amended by Conference, and placed upon its repassage.
The question was taken on the repassage of the bill and the roll was called. There were 88 yeas and 44 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anderson, C.
Anzelc
Applebaum
Atkins
Baker
Bennett
Bernardy
Bly
Carlson
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dehn, R.
Ecklund
Erhardt
Fenton
Fischer
Flanagan
Garofalo
Gunther
Halverson
Hamilton
Hansen
Hausman
Hilstrom
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, C.
Johnson, S.
Kahn
Kelly
Knoblach
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Loonan
Mack
Mahoney
Mariani
Marquart
Masin
McNamara
Melin
Metsa
Moran
Mullery
Murphy, E.
Nelson
Newton
Nornes
Norton
O'Driscoll
Pelowski
Persell
Petersburg
Pierson
Pinto
Poppe
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schultz
Selcer
Simonson
Slocum
Sundin
Theis
Thissen
Wagenius
Ward
Wills
Yarusso
Youakim
Zerwas
Spk. Daudt
Those who voted in the negative were:
Anderson, M.
Anderson, P.
Anderson, S.
Backer
Barrett
Christensen
Dean, M.
Dettmer
Drazkowski
Erickson
Fabian
Franson
Green
Gruenhagen
Hackbarth
Hancock
Heintzeman
Hertaus
Johnson, B.
Kiel
Koznick
Lohmer
Loon
Lucero
Lueck
McDonald
Miller
Murphy, M.
Nash
Newberger
O'Neill
Peppin
Peterson
Pugh
Quam
Schomacker
Scott
Smith
Swedzinski
Torkelson
Uglem
Urdahl
Vogel
Whelan
The bill was repassed, as amended by Conference, and its title agreed to.
CALENDAR
FOR THE DAY, Continued
S. F. No. 588 was reported to the House.
Speaker pro tempore Sanders called Davids to the Chair.
Atkins offered an amendment to S. F. No. 588, the second engrossment.
POINT OF ORDER
Albright raised a point of order pursuant to rule 3.21 that the Atkins amendment was not in order. Speaker pro tempore Davids ruled the point of order well taken and the Atkins amendment out of order.
Atkins appealed the decision of Speaker pro tempore Davids.
A roll call was requested and properly seconded.
The vote was taken on the question "Shall the decision of Speaker pro tempore Davids stand as the judgment of the House?" and the roll was called. There were 67 yeas and 63 nays as follows:
Those who voted in the affirmative were:
Albright
Anderson, C.
Anderson, M.
Anderson, P.
Anderson, S.
Backer
Baker
Barrett
Christensen
Cornish
Daniels
Davids
Dean, M.
Dettmer
Drazkowski
Erickson
Fabian
Fenton
Franson
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hancock
Heintzeman
Hertaus
Hoppe
Howe
Johnson, B.
Kelly
Kiel
Knoblach
Koznick
Lohmer
Loon
Loonan
Lueck
Mack
McDonald
McNamara
Miller
Nash
Newberger
Nornes
O'Driscoll
O'Neill
Peppin
Petersburg
Peterson
Pierson
Pugh
Quam
Runbeck
Sanders
Schomacker
Scott
Smith
Swedzinski
Theis
Torkelson
Urdahl
Vogel
Whelan
Wills
Zerwas
Spk. Daudt
Those who voted in the negative were:
Allen
Anzelc
Applebaum
Atkins
Bernardy
Bly
Carlson
Clark
Considine
Davnie
Dehn, R.
Ecklund
Erhardt
Fischer
Flanagan
Garofalo
Halverson
Hansen
Hausman
Hilstrom
Hornstein
Hortman
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Lucero
Mahoney
Mariani
Marquart
Masin
Melin
Metsa
Moran
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Pelowski
Persell
Pinto
Poppe
Rosenthal
Schoen
Schultz
Selcer
Simonson
Slocum
Sundin
Thissen
Uglem
Wagenius
Ward
Yarusso
Youakim
So it was the judgment of the House that the decision of Speaker pro tempore Davids should stand.
Nelson moved to amend S. F. No. 588, the second engrossment, as follows:
Page 2, line 17, delete "MSRS, TRA, AND"
Page 2, line 18, delete "SPTRFA SUPPLEMENTAL" and insert "AND" and after "CONTRIBUTION" insert "INCREASE"
Page 4, lines 35 to 37, delete the new language
Page 4, line 39, reinstate the stricken "1" and delete the new language and strike ", whichever applies"
Page 5, lines 1 to 3, delete the new language
Page 5, line 5, reinstate the stricken
"1a," and reinstate the stricken "1d,"
Page 5, line 9, reinstate the stricken "1" and delete the new language
Page 5, line 11, delete everything after "of"
Page 5, line 12, delete "356.20, subdivision 2, clauses (1), (3), (5), and (12)," and insert "the St. Paul Teachers Retirement Fund Association"
Page 5, line 14, delete "or 356.415, subdivision 1a or 1d, whichever applies" and insert ", subdivision 7"
Pages 9 to 19, delete sections 4 to 10
Page 19, delete line 13
Page 19, line 14, delete "(b)"
Page 19, line 16, delete "Paragraph (a) is effective June 30, 2016. Paragraph (b)" and insert "This section"
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly seconded.
The question was taken on the Nelson amendment and the roll was called. There were 61 yeas and 68 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anzelc
Applebaum
Atkins
Bernardy
Bly
Carlson
Clark
Considine
Cornish
Davnie
Dehn, R.
Ecklund
Erhardt
Fischer
Flanagan
Halverson
Hansen
Hausman
Hertaus
Hilstrom
Hornstein
Hortman
Johnson, C.
Johnson, S.
Kahn
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
Melin
Metsa
Moran
Mullery
Murphy, E.
Nelson
Newton
Norton
Pelowski
Persell
Pinto
Poppe
Rosenthal
Schoen
Schultz
Selcer
Simonson
Slocum
Sundin
Thissen
Wagenius
Ward
Yarusso
Youakim
Those who voted in the negative were:
Anderson, C.
Anderson, M.
Anderson, P.
Anderson, S.
Backer
Baker
Barrett
Bennett
Christensen
Daniels
Davids
Dean, M.
Dettmer
Drazkowski
Erickson
Fabian
Fenton
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hancock
Heintzeman
Hoppe
Howe
Johnson, B.
Kelly
Kiel
Knoblach
Koznick
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
McDonald
McNamara
Miller
Nash
Newberger
Nornes
O'Driscoll
O'Neill
Peppin
Petersburg
Peterson
Pierson
Pugh
Quam
Runbeck
Sanders
Schomacker
Scott
Smith
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Vogel
Whelan
Wills
Zerwas
Spk. Daudt
The motion did not prevail and the amendment was not adopted.
Kahn moved to amend S. F. No. 588, the second engrossment, as follows:
Page 37, after line 29, insert:
"Section 1. [11A.245]
CLIMATE CHANGE RISKS AND OPPORTUNITIES.
(a) The State Board of Investment must
develop climate change risk management strategies. These strategies must include the following:
(1) In engaging with corporate
management and in proxy voting for companies in which the state board invests,
the State Board of Investment shall take steps to ensure that corporate boards
of directors include members who have expertise and experience in climate
change risk management strategies.
(2) The State Board of Investment shall
ensure that external managers hired to invest the state board's portfolio are
knowledgeable in climate change-related investment risks and opportunities.
(b) For purposes of this section, climate change risks and opportunities include those arising from: physical impacts of climate change; liabilities that may accrue from physical loss claims, or due to persons suffering from climate-change related loss seeking compensation; and financial risks from modifications in economic activity that may result in revaluing assets and opportunities."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly seconded.
The question was taken on the Kahn amendment and the roll was called. There were 59 yeas and 73 nays as follows:
Those who voted in the affirmative were:
Allen
Anzelc
Applebaum
Atkins
Bernardy
Bly
Carlson
Clark
Considine
Davnie
Dehn, R.
Ecklund
Erhardt
Fischer
Flanagan
Halverson
Hansen
Hausman
Hilstrom
Hornstein
Hortman
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
Melin
Metsa
Moran
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Pelowski
Persell
Pinto
Poppe
Rosenthal
Schoen
Schultz
Selcer
Simonson
Slocum
Sundin
Thissen
Wagenius
Ward
Yarusso
Youakim
Those who voted in the negative were:
Albright
Anderson, C.
Anderson, M.
Anderson, P.
Anderson, S.
Backer
Baker
Barrett
Bennett
Christensen
Cornish
Daniels
Davids
Dean, M.
Dettmer
Drazkowski
Erickson
Fabian
Fenton
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hancock
Heintzeman
Hertaus
Hoppe
Howe
Johnson, B.
Kelly
Kiel
Knoblach
Koznick
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
McDonald
McNamara
Miller
Nash
Newberger
Nornes
Norton
O'Driscoll
O'Neill
Peppin
Petersburg
Peterson
Pierson
Pugh
Quam
Rarick
Runbeck
Sanders
Schomacker
Scott
Smith
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Vogel
Whelan
Wills
Zerwas
Spk. Daudt
The motion did not prevail and the amendment was not adopted.
S. F. No. 588, A bill for an act relating to retirement; modifying cost of living adjustments; eliminating cost of living adjustment triggers; increasing St. Paul Teachers Retirement Fund Association employer contributions; making administrative changes to the Minnesota State Retirement System, Teachers Retirement Association, Public Employees Retirement Association, and St. Paul Teachers Retirement Fund Association; clarifying refund repayment procedures; modifying executive director credentials; clarifying combined service annuity augmentation rates and service requirements; revising appeal procedures; clarifying coverage for charter school administrators; modifying service credit purchase procedures; establishing new procedures for disability applications due to private disability insurance requirements; clarifying death and disability benefit payment provisions; modifying annual benefit limitations for federal tax code compliance; authorizing use of IRS correction procedures; clarifying benefit offsets for certain refund payments; clarifying police and fire plan coverage for certain Hennepin Healthcare System supervisors; modifying various economic actuarial assumptions; adopting recommendations of the Volunteer Firefighter Relief Association Working Group; increasing relief association lump-sum service pension maximums; lowering certain vesting requirements for Eden Prairie Volunteer Firefighters Relief Association; providing for the consolidation of the Coleraine and Bovey Volunteer Firefighters Relief Associations; modifying the MSRS disability application deadlines in certain instances; adopting definition of the Hometown Heroes Act related to public safety officer death benefits; allowing service credit purchase and Rule of 90-eligibility for certain Minnesota Department of Transportation employees; authorizing MnSCU employees to elect retroactive and prospective TRA coverage; authorizing MnSCU employee to transfer past service from IRAP to PERA; increasing maximum employer contribution to a supplemental laborers pension fund; authorizing certain additional sources of retirement
plan funding; making technical and conforming changes; amending Minnesota Statutes 2014, sections 3A.03, subdivision 3; 16A.14, subdivision 2a; 352.03, subdivisions 5, 6; 352.113, subdivisions 2, 4; 353.01, subdivision 43; 353.012; 353.32, subdivisions 1, 4; 353.34, subdivision 2; 354.05, subdivision 2, by adding a subdivision; 354.06, subdivisions 2, 2a; 354.095; 354.45, by adding a subdivision; 354.46, subdivision 6; 354.48, subdivision 1; 354.52, subdivisions 4, 6; 354A.011, subdivision 29; 354A.093, subdivision 4; 354A.095; 354A.12, subdivision 2a; 354A.35, subdivision 2; 354A.38, as amended; 356.24, subdivision 1; 356.30, subdivision 1; 356.635, by adding subdivisions; 356.96, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 423A.02, subdivision 3; 424A.01, by adding subdivisions; 424A.015, by adding a subdivision; 424B.20, subdivision 4; 490.121, subdivisions 25, 26; Minnesota Statutes 2015 Supplement, sections 3A.03, subdivision 2; 352.23; 352B.11, subdivision 4; 352D.05, subdivision 4; 353.01, subdivision 16; 353.0162; 353.64, subdivision 10; 353G.02, subdivision 6; 354.44, subdivision 9; 354A.093, subdivision 6; 354A.096; 354A.29, subdivision 7; 356.215, subdivisions 8, 11; 356.415, subdivisions 1a, 1d, 1e, 1f; 356.50, subdivision 2; 356.551, subdivision 2; 356.635, subdivision 10; 424A.02, subdivision 3; 490.124, subdivision 12; proposing coding for new law in Minnesota Statutes, chapters 356; 424A; repealing Minnesota Statutes 2014, sections 352.04, subdivision 11; 353.0161, subdivision 1; 353.34, subdivision 6; 354A.12, subdivision 2c; 354A.31, subdivision 3; 356.47, subdivision 1; 356.611, subdivisions 3, 3a, 4, 5; 356.96, subdivisions 14, 15; 424A.02, subdivision 13; Minnesota Statutes 2015 Supplement, sections 353.0161, subdivisions 2, 3; 354A.12, subdivision 3c; 354A.29, subdivisions 8, 9; 356.415, subdivision 1.
The bill was read for the third time and placed upon its final passage.
The question was taken on the passage of the bill and the roll was called. There were 129 yeas and 3 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anderson, C.
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Drazkowski
Ecklund
Erhardt
Erickson
Fabian
Fenton
Fischer
Flanagan
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kiel
Knoblach
Koznick
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
McNamara
Melin
Metsa
Miller
Moran
Mullery
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Pinto
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Smith
Sundin
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Yarusso
Youakim
Zerwas
Spk. Daudt
Those who voted in the negative were:
Atkins
Slocum
Thissen
The bill was passed and its title agreed to.
There being no objection, the order of business reverted to Reports of Standing Committees and Divisions.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Sanders from the Committee on Government Operations and Elections Policy reported on the following appointment which had been referred to the committee by the Speaker:
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
MARGARET LEPPIK
Reported the same back with the recommendation that the appointment be confirmed.
Sanders moved that the report of the Committee on Government Operations and Elections Policy relating to the appointment of Margaret Leppik to the Campaign Finance and Public Disclosure Board be now adopted. The motion prevailed and the report was adopted.
CONFIRMATION
Sanders moved that the House, having advised, do now consent to and confirm the appointment of Margaret Leppik, 7500 Western Avenue, Golden Valley, Minnesota 55427, in the county of Hennepin, effective January 20, 2016, for a term that expires on January 6, 2020. The motion prevailed and the appointment of Margaret Leppik was confirmed by the House.
Sanders from the Committee on Government Operations and Elections Policy reported on the following appointment which had been referred to the committee by the Speaker:
CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD
EMMA GREENMAN
Reported the same back with the recommendation that the appointment be confirmed.
Sanders moved that the report of the Committee on Government Operations and Elections Policy relating to the appointment of Emma Greenman to the Campaign Finance and Public Disclosure Board be now adopted. The motion prevailed and the report was adopted.
CONFIRMATION
Sanders moved that the House, having advised, do now consent to and confirm the appointment of Emma Greenman, 4729 13th Avenue South, Minneapolis, Minnesota 55407, in the county of Hennepin, effective January 20, 2016, for a term that expires on January 6, 2020. The motion prevailed and the appointment of Emma Greenman was confirmed by the House.
Peppin moved that the House recess subject to the call of the Chair. The motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to order by Speaker pro tempore O’Driscoll.
There being no objection, the order of business reverted to Introduction and First Reading of House Bills.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The following House Files were introduced:
Clark, Barrett and Hausman introduced:
H. F. No. 4031, A bill for an act relating to capital investment; appropriating money for restoration of the Almelund Creamery Company Building in Chisago County.
The bill was read for the first time and referred to the Committee on State Government Finance.
Baker introduced:
H. F. No. 4032, A bill for an act relating to health; placing limits on controlled substance prescriptions for the relief of pain; proposing coding for new law in Minnesota Statutes, chapter 214.
The bill was read for the first time and referred to the Committee on Health and Human Services Reform.
MESSAGES FROM THE SENATE
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
H. F. No. 2553, A bill for an act relating to orders for protection; eliminating respondent filing fee requirements; amending Minnesota Statutes 2014, section 518B.01, subdivision 3a.
The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
H. F. No. 3142, A bill for an act relating to health; amending provisions for the statewide trauma system, home care, hearing instrument dispensers, Zika preparedness, and food, beverage, and lodging establishments; amending Minnesota Statutes 2014, sections 144.605, subdivision 5; 144.608, subdivision 1; 144A.473, subdivision 2; 144A.475, subdivisions 3, 3b, by adding a subdivision; 144A.4791, by adding a subdivision; 144A.4792, subdivision 13; 144A.4799, subdivisions 1, 3; 144A.482; 144D.01, subdivision 2a; 144G.03, subdivisions 2, 4; 153A.14, subdivisions 2d, 2h; 153A.15, subdivision 2a; 157.15, subdivision 14; 157.16, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 144.
The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned:
H. F. No. 3211, A bill for an act relating to pari-mutuel horse racing; authorizing advance deposit wagering; providing for horse-racing revenue; appropriating money; amending Minnesota Statutes 2014, sections 240.08, subdivision 1; 240.13, subdivision 4; 240.15, subdivision 2; 240.25, subdivision 1; Minnesota Statutes 2015 Supplement, sections 240.01, by adding subdivisions; 240.08, subdivision 2; 240.10; 240.15, subdivisions 1, 6; 240.22; proposing coding for new law in Minnesota Statutes, chapter 240.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned:
H. F. No. 3333, A bill for an act relating to health; modifying the schedules of controlled substances; amending Minnesota Statutes 2015 Supplement, section 152.02, subdivisions 2, 5.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned:
H. F. No. 3353, A bill for an act relating to agriculture; establishing voluntary solar site management practices for solar sites; proposing coding for new law in Minnesota Statutes, chapter 216B.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
H. F. No. 3384, A bill for an act relating to insurance; making changes to the life insurance reserves; amending Minnesota Statutes 2014, sections 61A.24, subdivision 12, by adding a subdivision; 61A.25.
The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
H. F. No. 3469, A bill for an act relating to crime; modifying crime and increasing sentence of interfering with a body or scene of death; appropriating money; amending Minnesota Statutes 2014, section 609.502, subdivision 1, by adding subdivisions.
The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
S. F. No. 1440.
The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.
JoAnne M. Zoff, Secretary of the Senate
CONFERENCE COMMITTEE REPORT ON S. F. No. 1440
A bill for an act relating to health; making changes to the Minnesota prescription monitoring program; amending Minnesota Statutes 2014, section 152.126, subdivisions 1, 3, 5, 6; repealing Laws 2014, chapter 286, article 7, section 4.
May 21, 2016
The Honorable Sandra L. Pappas
President of the Senate
The Honorable Kurt L. Daudt
Speaker of the House of Representatives
We, the undersigned conferees for S. F. No. 1440 report that we have agreed upon the items in dispute and recommend as follows:
That the House recede from its amendments and that S. F. No. 1440 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 2014, section 152.126, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in this subdivision have the meanings given.
(b) "Board" means the Minnesota State Board of Pharmacy established under chapter 151.
(c) "Controlled substances" means
those substances listed in section 152.02, subdivisions 3 to 6, and those
substances defined by the board pursuant to section 152.02, subdivisions 7, 8,
and 12. For the purposes of this
section, controlled substances includes tramadol and butalbital and
gabapentin.
(d) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision 30. Dispensing does not include the direct administering of a controlled substance to a patient by a licensed health care professional.
(e) "Dispenser" means a person authorized by law to dispense a controlled substance, pursuant to a valid prescription. For the purposes of this section, a dispenser does not include a licensed hospital pharmacy that distributes controlled substances for inpatient hospital care or a veterinarian who is dispensing prescriptions under section 156.18.
(f) "Prescriber" means a licensed health care professional who is authorized to prescribe a controlled substance under section 152.12, subdivision 1 or 2.
(g) "Prescription" has the meaning
given in section 151.01, subdivision 16 16a.
Sec. 2. Minnesota Statutes 2014, section 152.126, subdivision 3, is amended to read:
Subd. 3. Prescription Monitoring Program Advisory Task Force. (a) The board shall appoint an advisory task force consisting of at least one representative of:
(1) the Department of Health;
(2) the Department of Human Services;
(3) each health-related licensing board that licenses prescribers;
(4) a professional medical association, which may include an association of pain management and chemical dependency specialists;
(5) a professional pharmacy association;
(6) a professional nursing association;
(7) a professional dental association;
(8) a consumer privacy or security advocate;
(9) a consumer or patient rights organization; and
(10) an association of medical examiners and coroners.
(b) The advisory task force shall advise the board on the development and operation of the prescription monitoring program, including, but not limited to:
(1) technical standards for electronic prescription drug reporting;
(2) proper analysis and interpretation of prescription monitoring data;
(3) an evaluation process for the program; and
(4) criteria for the unsolicited provision of prescription monitoring data by the board to prescribers and dispensers.
(c) The task force is governed by section 15.059. Notwithstanding any other provisions of law to the contrary, the task force shall not expire.
Sec. 3. Minnesota Statutes 2014, section 152.126, subdivision 5, is amended to read:
Subd. 5. Use of data by board. (a) The board shall develop and maintain a database of the data reported under subdivision 4. The board shall maintain data that could identify an individual prescriber or dispenser in encrypted form. Except as otherwise allowed under subdivision 6, the database may be used by permissible users identified under subdivision 6 for the identification of:
(1) individuals receiving prescriptions for controlled substances from prescribers who subsequently obtain controlled substances from dispensers in quantities or with a frequency inconsistent with generally recognized standards of use for those controlled substances, including standards accepted by national and international pain management associations; and
(2) individuals presenting forged or otherwise false or altered prescriptions for controlled substances to dispensers.
(b) No permissible user identified under subdivision 6 may access the database for the sole purpose of identifying prescribers of controlled substances for unusual or excessive prescribing patterns without a valid search warrant or court order.
(c) No personnel of a state or federal
occupational licensing board or agency may access the database for the purpose
of obtaining information to be used to initiate or substantiate a
disciplinary action against a prescriber.
(d) Data reported under subdivision 4 shall
be made available to permissible users for a 12-month period beginning the day
the data was received and ending 12 months from the last day of the month in
which the data was received, except that permissible users defined in
subdivision 6, paragraph (b), clauses (6) and (7), may use all data collected
under this section for the purposes of administering, operating, and
maintaining the prescription monitoring program and conducting trend analyses
and other studies necessary to evaluate the effectiveness of the program. Data retained beyond 24 months must be
de-identified.
(e) The board shall not retain data
reported under subdivision 4 for a period longer than four years from the date
the data was received.
(e) Data reported during the period
January 1, 2015, through December 31, 2018, may be retained through December
31, 2019, in an identifiable manner. Effective
January 1, 2020, data older than 24 months must be destroyed. Data reported on or after January 1, 2020,
must be destroyed no later than 12 months from the date the data was received.
Sec. 4. Minnesota Statutes 2014, section 152.126, subdivision 6, is amended to read:
Subd. 6. Access to reporting system data. (a) Except as indicated in this subdivision, the data submitted to the board under subdivision 4 is private data on individuals as defined in section 13.02, subdivision 12, and not subject to public disclosure.
(b) Except as specified in subdivision 5, the following persons shall be considered permissible users and may access the data submitted under subdivision 4 in the same or similar manner, and for the same or similar purposes, as those persons who are authorized to access similar private data on individuals under federal and state law:
(1) a prescriber or an agent or employee of the prescriber to whom the prescriber has delegated the task of accessing the data, to the extent the information relates specifically to a current patient, to whom the prescriber is:
(i) prescribing or considering prescribing any controlled substance;
(ii) providing emergency medical treatment
for which access to the data may be necessary; or
(iii) providing care, and the prescriber
has reason to believe, based on clinically valid indications, that the patient
is potentially abusing a controlled substance; or
(iii) (iv) providing other
medical treatment for which access to the data may be necessary for a
clinically valid purpose and the patient has consented to access to the
submitted data, and with the provision that the prescriber remains responsible
for the use or misuse of data accessed by a delegated agent or employee;
(2) a dispenser or an agent or employee of the dispenser to whom the dispenser has delegated the task of accessing the data, to the extent the information relates specifically to a current patient to whom that dispenser is dispensing or considering dispensing any controlled substance and with the provision that the dispenser remains responsible for the use or misuse of data accessed by a delegated agent or employee;
(3) a licensed pharmacist who is providing pharmaceutical care for which access to the data may be necessary to the extent that the information relates specifically to a current patient for whom the pharmacist is providing pharmaceutical care: (i) if the patient has consented to access to the submitted data; or (ii) if the pharmacist is consulted by a prescriber who is requesting data in accordance with clause (1);
(4) an individual who is the recipient of a controlled substance prescription for which data was submitted under subdivision 4, or a guardian of the individual, parent or guardian of a minor, or health care agent of the individual acting under a health care directive under chapter 145C;
(5) personnel or designees of the
a health-related licensing board specifically listed in
section 214.01, subdivision 2, or of the Emergency Medical Services Regulatory Board,
assigned to conduct a bona fide investigation of a complaint received by
that board that alleges that a specific licensee is impaired by use of a
drug for which data is collected under subdivision 4, has engaged in activity
that would constitute a crime as defined in section 152.025, or has engaged in
the behavior specified in subdivision 5, paragraph (a);
(6) personnel of the board engaged in the collection, review, and analysis of controlled substance prescription information as part of the assigned duties and responsibilities under this section;
(7) authorized personnel of a vendor under contract with the state of Minnesota who are engaged in the design, implementation, operation, and maintenance of the prescription monitoring program as part of the assigned duties and responsibilities of their employment, provided that access to data is limited to the minimum amount necessary to carry out such duties and responsibilities, and subject to the requirement of de-identification and time limit on retention of data specified in subdivision 5, paragraphs (d) and (e);
(8) federal, state, and local law enforcement authorities acting pursuant to a valid search warrant;
(9) personnel of the Minnesota health care programs assigned to use the data collected under this section to identify and manage recipients whose usage of controlled substances may warrant restriction to a single primary care provider, a single outpatient pharmacy, and a single hospital;
(10)
personnel of the Department of Human Services assigned to access the data
pursuant to paragraph (h) (i); and
(11) personnel of the health professionals services program established under section 214.31, to the extent that the information relates specifically to an individual who is currently enrolled in and being monitored by the program, and the individual consents to access to that information. The health professionals services program personnel shall not provide this data to a health-related licensing board or the Emergency Medical Services Regulatory Board, except as permitted under section 214.33, subdivision 3.
For purposes of clause (4), access by an
individual includes persons in the definition of an individual under section
13.02.; and
(12) personnel or designees of a
health-related licensing board listed in section 214.01, subdivision 2,
assigned to conduct a bona fide investigation of a complaint received by that
board that alleges that a specific licensee is inappropriately prescribing controlled
substances as defined in this section.
(c) By July 1, 2017, every prescriber
licensed by a health-related licensing board listed in section 214.01,
subdivision 2, practicing within this state who is authorized to prescribe
controlled substances for humans and who holds a current registration issued by
the federal Drug Enforcement Administration, and every pharmacist licensed by
the board and practicing within the state, shall register and maintain a user
account with the prescription monitoring program. Data submitted by a prescriber, pharmacist,
or their delegate during the registration application process, other than their
name, license number, and license type, is classified as private pursuant to
section 13.02, subdivision 12.
(d) A Only permissible user
users identified in paragraph (b), clauses (1), (2), (3), (6), (7), (9),
and (10), may directly access the data electronically. No other permissible users may directly
access the data electronically. If
the data is directly accessed electronically, the permissible user shall
implement and maintain a comprehensive information security program that
contains administrative, technical, and physical safeguards that are
appropriate to the user's size and complexity, and the sensitivity of the personal
information obtained. The permissible
user shall identify reasonably foreseeable internal and external risks to the
security, confidentiality, and integrity of personal information that could
result in the unauthorized disclosure, misuse, or other compromise of the
information and assess the sufficiency of any safeguards in place to control
the risks.
(d) (e) The board shall not
release data submitted under subdivision 4 unless it is provided with evidence,
satisfactory to the board, that the person requesting the information is
entitled to receive the data.
(e) (f) The board shall
maintain a log of all persons who access the data for a period of at least
three years and shall ensure that any permissible user complies with paragraph
(c) prior to attaining direct access to the data.
(f) (g) Section 13.05,
subdivision 6, shall apply to any contract the board enters into pursuant to
subdivision 2. A vendor shall not use
data collected under this section for any purpose not specified in this section.
(g) (h) The board may
participate in an interstate prescription monitoring program data exchange
system provided that permissible users in other states have access to the data
only as allowed under this section, and that section 13.05, subdivision 6, applies
to any contract or memorandum of understanding that the board enters into under
this paragraph. The board shall
report to the chairs and ranking minority members of the senate and house of
representatives committees with jurisdiction over health and human services policy
and finance on the interstate prescription monitoring program by January 5,
2016.
(h) (i) With available appropriations, the commissioner of human services shall establish and implement a system through which the Department of Human Services shall routinely access the data for the purpose of determining whether any client enrolled in an opioid treatment program licensed according to chapter 245A has been prescribed or dispensed a controlled substance in addition to that administered or dispensed by the opioid treatment program. When the commissioner determines there have been multiple prescribers or multiple prescriptions of controlled substances, the commissioner shall:
(1) inform the medical director of the opioid treatment program only that the commissioner determined the existence of multiple prescribers or multiple prescriptions of controlled substances; and
(2) direct the medical director of the opioid treatment program to access the data directly, review the effect of the multiple prescribers or multiple prescriptions, and document the review.
If determined necessary, the commissioner of human services shall seek a federal waiver of, or exception to, any applicable provision of Code of Federal Regulations, title 42, section 2.34, paragraph (c), prior to implementing this paragraph.
(i) (j) The board shall
review the data submitted under subdivision 4 on at least a quarterly basis and
shall establish criteria, in consultation with the advisory task force, for
referring information about a patient to prescribers and dispensers who
prescribed or dispensed the prescriptions in question if the criteria are met. The board shall report to the chairs and
ranking minority members of the senate and house of representatives committees with
jurisdiction over health and human services policy and finance on the criteria
established under this paragraph and the review process by January 5, 2016. This paragraph expires August 1, 2016.
Sec. 5. REPEALER.
Laws 2014, chapter 286, article 7, section 4, is repealed."
We request the adoption of this report and repassage of the bill.
Senate Conferees: Julie A. Rosen, Kathy Sheran and Michelle R. Benson.
House Conferees: Dave
Baker and Nick Zerwas.
Baker moved that the report of the Conference Committee on S. F. No. 1440 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
S. F. No. 1440, A bill for an act relating to health; making changes to the Minnesota prescription monitoring program; amending Minnesota Statutes 2014, section 152.126, subdivisions 1, 3, 5, 6; repealing Laws 2014, chapter 286, article 7, section 4.
The bill was read for the third time, as amended by Conference, and placed upon its repassage.
The question was taken on the repassage of the bill and the roll was called. There were 115 yeas and 18 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anderson, C.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Atkins
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dehn, R.
Dettmer
Ecklund
Erhardt
Erickson
Fabian
Fenton
Fischer
Flanagan
Franson
Freiberg
Garofalo
Green
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hilstrom
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kiel
Knoblach
Koznick
Kresha
Lien
Lillie
Loeffler
Loon
Loonan
Lueck
Mack
Mahoney
Marquart
McDonald
McNamara
Melin
Metsa
Miller
Moran
Mullery
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Poppe
Rarick
Rosenthal
Sanders
Schoen
Schomacker
Schultz
Selcer
Simonson
Slocum
Smith
Sundin
Swedzinski
Theis
Thissen
Torkelson
Uglem
Urdahl
Wagenius
Ward
Wills
Yarusso
Youakim
Zerwas
Spk. Daudt
Those who voted in the negative were:
Anderson, M.
Dean, M.
Drazkowski
Gruenhagen
Hertaus
Laine
Lesch
Liebling
Lohmer
Lucero
Masin
Pinto
Pugh
Quam
Runbeck
Scott
Vogel
Whelan
The bill was repassed, as amended by Conference, and its title agreed to.
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
S. F. No. 3018.
The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.
JoAnne M. Zoff, Secretary of the Senate
CONFERENCE COMMITTEE REPORT ON S. F. No. 3018
A bill for an act relating to agriculture; making various policy and technical changes to agricultural-related provisions; modifying certain agricultural-related appropriations; amending Minnesota Statutes 2014, sections 17.53, subdivision 16; 18B.345; 28A.085, subdivision 1; 31.122; 31.94; Minnesota Statutes 2015 Supplement, sections 41A.14; 583.215; Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 216B; repealing Laws 2015, First Special Session chapter 4, article 2, section 81.
May 22, 2016
The Honorable Sandra L. Pappas
President of the Senate
The Honorable Kurt L. Daudt
Speaker of the House of Representatives
We, the undersigned conferees for S. F. No. 3018 report that we have agreed upon the items in dispute and recommend as follows:
That the House recede from its amendments and that S. F. No. 3018 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 2014, section 3.7371, is amended by adding a subdivision to read:
Subd. 8. Report. The commissioner must submit a report
to the chairs of the house of representatives and senate committees and
divisions with jurisdiction over agriculture and environment and natural
resources by December 15 each year that details the total amount of damages
paid, by elk herd, in the previous two fiscal years.
Sec. 2. Minnesota Statutes 2014, section 17.53, subdivision 16, is amended to read:
Subd. 16. Qualified voter. "Qualified voter" means a producer who would be subject to the payment of fees to finance the activities described in sections 17.51 to 17.69 and who shares directly in the profits and risk of loss from the agricultural operation which produces or grows the commodity, regardless of the Internal Revenue Service tax filing status of the producer.
Sec. 3. Minnesota Statutes 2014, section 18B.345, is amended to read:
18B.345
PESTICIDE APPLICATION ON GOLF COURSES.
(a) Application of a pesticide to the property of a golf course must be performed by:
(1) a structural pest control applicator; or
(2) a commercial or noncommercial pesticide
applicator with appropriate use certification.
(b) Pesticides determined by the commissioner to be sanitizers and disinfectants are exempt from the requirements in paragraph (a).
Sec. 4. Minnesota Statutes 2014, section 28A.085, subdivision 1, is amended to read:
Subdivision 1. Violations; prohibited acts. The commissioner may charge a reinspection fee for each reinspection of a food handler that:
(1) is found with a major violation of
requirements in chapter 28, 29, 30, 31, 31A, 32, 33, or 34, or rules adopted
under one of those chapters; or
(2) is found with a violation of
section 31.02, 31.161, or 31.165, and requires a follow-up inspection after an
administrative meeting held pursuant to section 34A.06; or
(3) (2) fails to correct equipment and facility deficiencies as required in rules adopted under chapter 28, 29, 30, 31, 31A, 32, or 34.
The first reinspection of a firm with gross food sales under $1,000,000 must be assessed at $150. The fee for a firm with gross food sales over $1,000,000 is $200. The fee for a subsequent reinspection of a firm for the same violation is 50 percent of their current license fee or $300, whichever is greater. The establishment must be issued written notice of violations with a reasonable date for compliance listed on the notice. An initial inspection relating to a complaint is not a reinspection.
Sec. 5. Minnesota Statutes 2014, section 31.122, is amended to read:
31.122
FOOD; TOLERANCES FOR ADDED POISONOUS INGREDIENTS.
Any added poisonous or deleterious
substance, any food additive, any pesticide chemical in or on a raw
agricultural commodity or any color additive, shall with respect to any
particular use or intended use be deemed unsafe for the purpose of application
of section 31.121, clause (b) 34A.02, clause (2), with respect to
any food, unless there is in effect a rule pursuant to section 31.101 limiting
the quantity of such substance, and the use or intended use of such substance
conforms to the terms prescribed by such rule.
While such rules relating to such substance are in effect, a food shall
not, by reason of bearing or containing such substance in accordance with the
rules, be considered adulterated within the meaning of section 31.121,
clause (a) 34A.02, clause (1).
Sec. 6. Minnesota Statutes 2014, section 31.94, is amended to read:
31.94
ORGANIC AGRICULTURE; COMMISSIONER DUTIES.
(a) In order to promote opportunities for organic agriculture in Minnesota, the commissioner shall:
(1) survey producers and support services and organizations to determine information and research needs in the area of organic agriculture practices;
(2) work with the University of Minnesota and other research and education institutions to demonstrate the on‑farm applicability of organic agriculture practices to conditions in this state;
(3) direct the programs of the department so as to work toward the promotion of organic agriculture in this state;
(4) inform agencies of how about
state or federal programs could utilize and that support organic
agriculture practices; and
(5) work closely with producers, producer
organizations, the University of Minnesota, the Minnesota Trade Office,
and other appropriate agencies and organizations to identify
opportunities and needs as well as ensure coordination and avoid duplication of
state agency efforts regarding research, teaching, marketing, and extension
work relating to organic agriculture.
(b) By November 15 of each year that ends in a zero or a five, the commissioner, in conjunction with the task force created in paragraph (c), shall report on the status of organic agriculture in Minnesota to the legislative policy and finance committees and divisions with jurisdiction over agriculture. The report must include available data on organic acreage and production, available data on the sales or market performance of organic products, and recommendations regarding programs, policies, and research efforts that will benefit Minnesota's organic agriculture sector.
(c)
A Minnesota Organic Advisory Task Force shall advise the commissioner and the
University of Minnesota on policies and programs that will improve organic
agriculture in Minnesota, including how available resources can most effectively
be used for outreach, education, research, and technical assistance that meet
the needs of the organic agriculture community sector. The task force must consist of the following
residents of the state:
(1) three organic farmers;
(2) one wholesaler or distributor of organic products;
(3) one representative of organic certification agencies;
(4) two organic processors;
(5) one representative from University of Minnesota Extension;
(6) one University of Minnesota faculty member;
(7) one representative from a nonprofit organization representing producers;
(8) two public members;
(9) one representative from the United States Department of Agriculture;
(10) one retailer of organic products; and
(11) one organic consumer representative.
The commissioner, in consultation with the director of the Minnesota Agricultural Experiment Station; the dean and director of University of Minnesota Extension and the dean of the College of Food, Agricultural and Natural Resource Sciences, shall appoint members to serve three-year terms.
Compensation and removal of members are
governed by section 15.059, subdivision 6.
The task force must meet at least twice each year and expires on June
30, 2016 2019.
(d) For the purposes of expanding, improving, and developing production and marketing of the organic products of Minnesota agriculture, the commissioner may receive funds from state and federal sources and spend them, including through grants or contracts, to assist producers and processors to achieve certification, to conduct education or marketing activities, to enter into research and development partnerships, or to address production or marketing obstacles to the growth and well-being of the industry.
(e) The commissioner may facilitate the
registration of state organic production and handling operations including
those exempt from organic certification according to Code of Federal
Regulations, title 7, section 205.101, and accredited certification agents
agencies operating within the state.
Sec. 7. Minnesota Statutes 2015 Supplement, section 41A.14, is amended to read:
41A.14
AGRICULTURE RESEARCH, EDUCATION, EXTENSION, AND TECHNOLOGY TRANSFER GRANT
PROGRAM.
Subdivision 1. Duties; grants. The agriculture research, education, extension, and technology transfer grant program is created. The purpose of the grant program is to provide investments that will most efficiently achieve long-term agricultural productivity increases through improved infrastructure, vision, and accountability. The scope
and
intent of the grants, to the extent possible, shall provide for a
long-term base funding that allows the research grantee to continue the
functions of the research, education, and extension, and technology transfer
efforts to a practical conclusion. Priority
for grants shall be given to human infrastructure. The commissioner shall provide grants for:
(1) agricultural research, extension,
and technology transfer needs and recipients including agricultural research
and extension at the University of Minnesota, research and outreach
centers, the College of Food, Agricultural and Natural Resource Sciences, the
Minnesota Agricultural Experiment Station, University of Minnesota Extension
Service, the University of Minnesota Veterinary School, the Veterinary Diagnostic
Laboratory, the Stakman‑Borlaug Center, and the Minnesota Agriculture
Fertilizer Research and Education Council; for use by any of the
following:
(i) the College of Food, Agricultural
and Natural Resource Sciences;
(ii) the Minnesota Agricultural
Experiment Station;
(iii) the University of Minnesota
Extension Service;
(iv) the University of Minnesota
Veterinary School;
(v) the Veterinary Diagnostic
Laboratory; or
(vi) the Stakman-Borlaug Center;
(2) agriculture rapid response for plant and animal diseases and pests; and
(3) agricultural education including but not limited to the Minnesota Agriculture Education Leadership Council, farm business management, mentoring programs, graduate debt forgiveness, and high school programs.
Subd. 2. Advisory panel. (a) In awarding grants under this section, the commissioner and a representative of the College of Food, Agricultural and Natural Resource Sciences at the University of Minnesota must consult with an advisory panel consisting of the following stakeholders:
(1) a representative of the College of
Food, Agricultural and Natural Resource Sciences at the University of
Minnesota;
(2) (1) a representative of
the Minnesota State Colleges and Universities system;
(3) (2) a representative of
the Minnesota Farm Bureau;
(4) (3) a representative of
the Minnesota Farmers Union;
(5) (4) a person
representing agriculture industry statewide;
(6) (5) a representative of
each of the state commodity councils organized under section 17.54 and the
Minnesota Pork Board;
(7) (6) a person
representing an association of primary manufacturers of forest products;
(8) (7) a person
representing organic or sustainable agriculture; and
(9) (8) a person representing statewide environment and natural resource conservation organizations.
(b) Members under paragraph (a),
clauses (1) to (3) and (5), shall be chosen by their respective organizations.
Subd. 3. Account. An agriculture research, education, extension, and technology transfer account is created in the agricultural fund in the state treasury. The account consists of money received in the form of gifts, grants, reimbursement, or appropriations from any source for any of the purposes provided in subdivision 1, and any interest or earnings of the account. Money in the account is appropriated to the commissioner of agriculture for the purposes under subdivision 1.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2014, section 97B.516, is amended to read:
97B.516
ELK MANAGEMENT PLAN.
(a) The commissioner of natural resources must adopt an elk management plan that:
(1) recognizes the value and uniqueness of elk;
(2) provides for integrated management of an elk population in harmony with the environment; and
(3) affords optimum recreational opportunities.
(b) Notwithstanding paragraph (a), the
commissioner must not manage an elk herd in a manner that would increase the
size of the herd, including adoption or implementation of an elk management
plan designed to increase an elk herd, unless the commissioner of agriculture
verifies that crop and fence damages paid under section 3.7371 and attributed
to the herd have not increased for at least two years.
(c) At least 60 days prior to
implementing a plan to increase an elk herd, the commissioners of natural
resources and agriculture must hold a joint public meeting in the county where
the elk herd to be increased is located.
At the meeting, the commissioners must present evidence that crop and
fence damages have not increased in the prior two years and must detail the
practices that will be used to reduce elk conflicts with area landowners.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. [216B.1642]
SOLAR SITE MANAGEMENT.
Subdivision 1. Site
management practices. An
owner of a ground-mounted solar site with a generating capacity of more than 40
kilowatts may follow site management practices that (1) provide native
perennial vegetation and foraging habitat beneficial to gamebirds, songbirds,
and pollinators, and (2) reduce storm water runoff and erosion at the solar
generation site. To the extent
practicable, when establishing perennial vegetation and beneficial foraging
habitat, a solar site owner shall use native plant species and seed mixes under
Department of Natural Resources "Prairie Establishment & Maintenance
Technical Guidance for Solar Projects."
Subd. 2. Recognition
of beneficial habitat. An
owner of a solar site implementing solar site management practices under this
section may claim that the site provides benefits to gamebirds, songbirds, and
pollinators only if the site adheres to guidance set forth by the pollinator
plan provided by the Board of Water and Soil Resources or any other gamebird,
songbird, or pollinator foraging-friendly vegetation standard established by
the Board of Water and Soil Resources. An
owner making a beneficial habitat claim must make the site's vegetation management
plan available to the public and provide a copy of the plan to a Minnesota
nonprofit solar industry trade association.
Sec. 10. Minnesota Statutes 2015 Supplement, section 583.215, is amended to read:
583.215
EXPIRATION.
Sections 336.9-601, subsections (h) and
(i); 550.365; 559.209; 582.039; and 583.20 to 583.32, expire June 30, 2016
2018.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, is amended to read:
|
Subd. 4. Agriculture,
Bioenergy, and Bioproduct Advancement |
14,993,000 |
|
19,010,000 |
$4,483,000 the first year and $8,500,000 the
second year are for transfer to the agriculture research, education, extension,
and technology transfer account under Minnesota Statutes, section 41A.14,
subdivision 3. The transfer in this
paragraph includes money for plant breeders at the University of Minnesota for
wild rice, potatoes, and grapes. Of
these amounts, at least $600,000 each year is for agriculture rapid response
the Minnesota Agricultural Experiment Station's Agriculture Rapid Response
Fund under Minnesota Statutes, section 41A.14, subdivision 1, clause (2). Of the amount appropriated in this paragraph,
$1,000,000 each year is for transfer to the Board of Regents of the University
of Minnesota for research to determine (1) what is causing avian influenza, (2)
why some fowl are more susceptible, and (3) prevention measures that can be
taken. Of the amount appropriated in
this paragraph, $2,000,000 each year is for grants to the Minnesota Agriculture
Education Leadership Council to enhance agricultural education with priority
given to Farm Business Management challenge grants. The commissioner shall transfer the
remaining grant funds in this appropriation each year to the Board of Regents
of the University of Minnesota for purposes of Minnesota Statutes, section
41A.14.
To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14, subdivision 1, clauses (1) and (2),
must supplement and not supplant existing sources and levels of funding. The commissioner may use up to 4.5 percent of
this appropriation for costs incurred to administer the program. Any unencumbered balance does not cancel
at the end of the first year and is available for the second year.
$10,235,000 the first year and $10,235,000 the second year are for the agricultural growth, research, and innovation program in Minnesota Statutes, section 41A.12. No later than February 1, 2016, and February 1, 2017, the commissioner must report to the legislative committees with jurisdiction over agriculture policy and finance regarding the commissioner's accomplishments and anticipated accomplishments in the following areas: facilitating the start-up, modernization, or expansion of livestock operations
including beginning and transitioning livestock operations; developing new markets for Minnesota farmers by providing more fruits, vegetables, meat, grain, and dairy for Minnesota school children; assisting value-added agricultural businesses to begin or expand, access new markets, or diversify products; developing urban agriculture; facilitating the start-up, modernization, or expansion of other beginning and transitioning farms including loans under Minnesota Statutes, section 41B.056; sustainable agriculture on farm research and demonstration; development or expansion of food hubs and other alternative community-based food distribution systems; and research on bioenergy, biobased content, or biobased formulated products and other renewable energy development. The commissioner may use up to 4.5 percent of this appropriation for costs incurred to administer the program. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. Notwithstanding Minnesota Statutes, section 16A.28, the appropriations encumbered under contract on or before June 30, 2017, for agricultural growth, research, and innovation grants are available until June 30, 2019.
The commissioner may use funds appropriated for the agricultural growth, research, and innovation program as provided in this paragraph. The commissioner may award grants to owners of Minnesota facilities producing bioenergy, biobased content, or a biobased formulated product; to organizations that provide for on‑station, on-farm field scale research and outreach to develop and test the agronomic and economic requirements of diverse strands of prairie plants and other perennials for bioenergy systems; or to certain nongovernmental entities. For the purposes of this paragraph, "bioenergy" includes transportation fuels derived from cellulosic material, as well as the generation of energy for commercial heat, industrial process heat, or electrical power from cellulosic materials via gasification or other processes. Grants are limited to 50 percent of the cost of research, technical assistance, or equipment related to bioenergy, biobased content, or biobased formulated product production or $500,000, whichever is less. Grants to nongovernmental entities for the development of business plans and structures related to community ownership of eligible bioenergy facilities together may not exceed $150,000. The commissioner shall make a good-faith effort to select projects that have merit and, when taken together, represent a variety of bioenergy technologies, biomass feedstocks, and geographic regions of the state. Projects must have a qualified engineer provide certification on the technology and fuel source. Grantees must provide reports at the request of the commissioner.
Of the amount appropriated for the agricultural growth, research, and innovation program in this subdivision, $1,000,000 the first year and $1,000,000 the second year are for distribution in equal amounts to each of the state's county fairs to preserve and promote Minnesota agriculture.
Of the amount appropriated for the agricultural growth, research, and innovation program in this subdivision, $500,000 in fiscal year 2016 and $1,500,000 in fiscal year 2017 are for incentive payments under Minnesota Statutes, sections 41A.16, 41A.17, and 41A.18. If the appropriation exceeds the total amount for which all producers are eligible in a fiscal year, the balance of the appropriation is available to the commissioner for the agricultural growth, research, and innovation program. Notwithstanding Minnesota Statutes, section 16A.28, the first year appropriation is available until June 30, 2017, and the second year appropriation is available until June 30, 2018. The commissioner may use up to 4.5 percent of the appropriation for administration of the incentive payment programs.
Of the amount appropriated for the agricultural growth, research, and innovation program in this subdivision, $250,000 the first year is for grants to communities to develop or expand food hubs and other alternative community-based food distribution systems. Of this amount, $50,000 is for the commissioner to consult with existing food hubs, alternative community-based food distribution systems, and University of Minnesota Extension to identify best practices for use by other Minnesota communities. No later than December 15, 2015, the commissioner must report to the legislative committees with jurisdiction over agriculture and health regarding the status of emerging alternative community-based food distribution systems in the state along with recommendations to eliminate any barriers to success. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. This is a onetime appropriation.
$250,000 the first year and $250,000 the second year are for grants that enable retail petroleum dispensers to dispense biofuels to the public in accordance with the biofuel replacement goals established under Minnesota Statutes, section 239.7911. A retail petroleum dispenser selling petroleum for use in spark ignition engines for vehicle model years after 2000 is eligible for grant money under this paragraph if the retail petroleum dispenser has no more than 15 retail petroleum dispensing sites and each site is located in Minnesota. The grant money received under this paragraph must be used for the installation of appropriate technology that uses fuel dispensing equipment appropriate for at least one fuel dispensing site to dispense gasoline that is blended with 15 percent of agriculturally derived, denatured ethanol, by volume, and appropriate technical assistance related to the installation. A grant award must not exceed 85 percent of the cost of the technical assistance and appropriate technology, including remetering of and retrofits for retail petroleum dispensers and replacement of petroleum dispenser projects. The commissioner may use up to $35,000 of this appropriation for administrative expenses. The commissioner shall cooperate with biofuel stakeholders in the implementation of the grant program. The
commissioner must report to the legislative committees with jurisdiction over agriculture policy and finance by February 1 each year, detailing the number of grants awarded under this paragraph and the projected effect of the grant program on meeting the biofuel replacement goals under Minnesota Statutes, section 239.7911. These are onetime appropriations.
$25,000 the first year and $25,000 the second year are for grants to the Southern Minnesota Initiative Foundation to promote local foods through an annual event that raises public awareness of local foods and connects local food producers and processors with potential buyers.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. FARMER-LENDER
MEDIATION TASK FORCE.
The commissioner of agriculture must
convene an advisory task force to provide recommendations to the legislature
regarding the state's Farmer-Lender Mediation Act. The task force must be comprised of 14
members, including the commissioner or the commissioner's designee, one farm
advocate appointed by the commissioner who is responsible for mediating debt
between farmers and lenders, one adult farm business management instructor
appointed by the commissioner and three farmers appointed by the commissioner,
at least one of whom is a beginning or nontraditional farmer and at least one
of whom has personal experience with the farmer-lender mediation program. The remaining membership of the task force
consists of one member appointed by each of the following entities:
(1) Minnesota Farm Bureau;
(2) Minnesota Farmers Union;
(3) Minnesota Bankers Association;
(4) Independent Community Bankers of
Minnesota;
(5) Farm Credit Services - Minnesota
State Federation;
(6) Minnesota Credit Union Network;
(7) Minnesota-South Dakota Equipment
Dealers Association; and
(8) University of Minnesota Extension.
No later than February 1, 2017, the
commissioner must report the task force's recommendations to the legislative
committees with jurisdiction over agriculture policy and finance.
Sec. 13. FARM
SAFETY INITIATIVE.
(a) The commissioner of agriculture
shall analyze the range of safety challenges presented in the operation of a
farm. The commissioner's analysis shall
include consultation with organizations in Minnesota that address issues of
farm safety. The commissioner shall
report the findings to the legislative committees with jurisdiction over
agricultural policy by February 1, 2017.
The report must, at a minimum:
(1)
provide information on how other states in the Midwest, including but not
limited to Wisconsin, Iowa, and Nebraska, address farm safety issues;
(2) identify common safety issues faced
by Minnesota farmers that need attention, including common causes of
farm-related accidents;
(3) identify how farm safety programs
can better serve the growing farm labor population; and
(4) make recommendations to the
legislature on how to improve farm safety efforts in Minnesota.
(b) By October 1, 2016, the commissioner
of agriculture shall compile an inventory of farm safety programs and resources
that are currently available in Minnesota.
After compiling the inventory, the commissioner shall make available the
inventory and promote to farm operators in Minnesota the farm safety programs
and resources contained in the inventory.
Sec. 14. REPEALER.
Laws 2015, First Special Session chapter
4, article 2, section 81, is repealed.
EFFECTIVE DATE. This section is effective the day following final enactment."
Delete the title and insert:
"A bill for an act relating to agriculture; making various policy and technical changes to agriculture-related provisions and programs; providing for solar site management; modifying elk management plan; modifying a previous appropriation; establishing a Farmer-Lender Mediation Task Force and a Farm Safety Initiative; requiring reports; amending Minnesota Statutes 2014, sections 3.7371, by adding a subdivision; 17.53, subdivision 16; 18B.345; 28A.085, subdivision 1; 31.122; 31.94; 97B.516; Minnesota Statutes 2015 Supplement, sections 41A.14; 583.215; Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 216B; repealing Laws 2015, First Special Session chapter 4, article 2, section 81."
We request the adoption of this report and repassage of the bill.
Senate Conferees: Dan Sparks, Gary H. Dahms and Kent Eken.
House Conferees: Paul Anderson, Rod Hamilton and Jeanne Poppe.
Anderson, P., moved that the report of the Conference Committee on S. F. No. 3018 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.
S. F. No. 3018, A bill for an act relating to agriculture; making various policy and technical changes to agricultural-related provisions; modifying certain agricultural-related appropriations; amending Minnesota Statutes 2014, sections 17.53, subdivision 16; 18B.345; 28A.085, subdivision 1; 31.122; 31.94; Minnesota Statutes 2015 Supplement, sections 41A.14; 583.215; Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 216B; repealing Laws 2015, First Special Session chapter 4, article 2, section 81.
The bill was read for the third time, as amended by Conference, and placed upon its repassage.
The question was taken on the repassage of the bill and the roll was called. There were 132 yeas and 2 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anderson, C.
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Atkins
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Drazkowski
Ecklund
Erhardt
Erickson
Fabian
Fenton
Fischer
Flanagan
Franson
Freiberg
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kiel
Knoblach
Koznick
Kresha
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
Melin
Metsa
Miller
Moran
Mullery
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Pinto
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Sundin
Swedzinski
Theis
Thissen
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Yarusso
Youakim
Zerwas
Spk. Daudt
Those who voted in the negative were:
Hoppe
McNamara
The bill was repassed, as amended by Conference, and its title agreed to.
McNamara moved that the House recess subject to the call of the Chair. The motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to order by Speaker pro tempore Davids.
There being no objection, the order of business reverted to Reports of Standing Committees and Divisions.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Peppin from the Committee on Rules and Legislative Administration to which was referred:
H. F. No. 3980, A bill for an act relating to legislative enactments; correcting miscellaneous oversights, inconsistencies, ambiguities, unintended results, and technical errors; amending Minnesota Statutes 2014, section 124D.90, subdivision 4.
Reported the same back with the recommendation that the bill be placed on the General Register.
Joint Rule 2.03 has been waived for any subsequent committee action on this bill.
The report was adopted.
SECOND READING OF HOUSE BILLS
H. F. No. 3980 was read for the second time.
REPORT FROM THE COMMITTEE ON RULES
AND LEGISLATIVE ADMINISTRATION
Peppin from the Committee on Rules and Legislative Administration, pursuant to rule 1.21, designated the following bill to be placed on the Supplemental Calendar for the Day for Sunday, May 22, 2016:
S. F. No. 3327.
The following Conference Committee Report was received:
CONFERENCE COMMITTEE REPORT ON H. F. No. 2749
A bill for an act relating to state government; conforming buyback level for the budget reserve with the most recent forecast; eliminating obsolete language; providing policy and finance for the Office of Higher Education, the Minnesota State Colleges and Universities, and the University of Minnesota, including programs for student loans, students with disabilities, fetal tissue research, psychiatric drug trials, and collegiate recovery; providing funding and policy for early childhood and family, prekindergarten through grade 12, and adult education, including general education, education excellence, charter schools, special education, early childhood education, self-sufficiency, lifelong learning, and state agencies; appropriating money; requiring reports; amending Minnesota Statutes 2014, sections 120A.22, subdivision 12; 120A.42; 120B.02, by adding a subdivision; 120B.021, subdivisions 1, 3; 120B.11, subdivisions 1a, 2, 3, 4, 5; 120B.15; 120B.31, by adding subdivisions; 120B.35; 120B.36, as amended; 121A.53; 121A.61, subdivision 1; 121A.64; 122A.07, subdivision 2; 122A.09, subdivision 10, by adding a subdivision; 122A.14, subdivision 9; 122A.16; 122A.18, subdivisions 7c, 8; 122A.21, subdivision 1, by adding a subdivision; 122A.245, subdivision 8; 122A.31, subdivision 3; 122A.40, subdivision 10; 122A.41, by adding a subdivision; 122A.4144; 122A.416; 122A.42; 122A.72, subdivision 5; 123A.24, subdivision 2; 123B.147, subdivision 3; 123B.49, subdivision 4; 123B.571, subdivision 2; 123B.60, subdivision 1; 123B.71, subdivision 8; 123B.79, subdivisions 5, 8, 9; 124D.111, by adding a subdivision; 124D.13, subdivisions 1, 5, 9; 124D.135, subdivisions 5, 7; 124D.15, subdivisions 1, 3a, 15; 124D.16, subdivisions 3, 5; 124D.165, as amended; 124D.52, subdivisions 1, 2; 124D.55; 124D.59, by adding a subdivision; 124D.861, as amended; 124D.896; 125A.091, subdivision 11; 125A.0942, subdivision 4; 126C.10, subdivisions 2e, 24; 126C.15, subdivision 3; 126C.17, subdivision 9a; 126C.40, subdivision 5; 126C.63, subdivision 7; 127A.095; 127A.353, subdivision 4; 127A.41, subdivision 2; 127A.45, subdivision 6a; 127A.51; 129C.10, subdivision 1; 136A.01, by adding a subdivision; 136A.101, subdivision 10; 245.92; 245.94; 245.945; 245.95, subdivision 1; 245.97, subdivision 5; Minnesota Statutes 2015 Supplement, sections 16A.152, subdivision 2; 120B.021, subdivision 4; 120B.125; 120B.30, subdivisions 1, 1a; 120B.301; 120B.31, subdivision 4; 122A.09, subdivision 4; 122A.21, subdivision 2; 122A.30; 122A.40, subdivision 8; 122A.41, subdivision 5; 122A.414, subdivisions 1, 2, 2b; 122A.415, subdivision 3;
122A.60, subdivision 4; 123B.53, subdivision 1; 123B.595, subdivisions 4, 7, 8, 9, 10, 11, by adding a subdivision; 124D.16, subdivision 2; 124D.231, subdivision 2; 124D.73, subdivision 4; 124E.05, subdivisions 4, 5, 7; 124E.10, subdivisions 1, 5; 124E.16, subdivision 2; 125A.08; 125A.083; 125A.0942, subdivision 3; 125A.11, subdivision 1; 125A.21, subdivision 3; 125A.63, subdivision 4; 125A.76, subdivision 2c; 125A.79, subdivision 1; 126C.10, subdivisions 1, 13a; 126C.15, subdivisions 1, 2; 126C.48, subdivision 8; 127A.05, subdivision 6; 127A.47, subdivision 7; 136A.121, subdivision 7a; 136A.125, subdivisions 2, 4; 136A.1791, subdivisions 4, 5, 6; 136A.87; 136F.302, subdivision 1; Laws 2010, chapter 396, section 7; Laws 2011, First Special Session chapter 11, article 4, section 8; Laws 2012, chapter 263, section 1, as amended; Laws 2013, chapter 116, article 7, section 19, as amended; Laws 2015, chapter 69, article 1, sections 3, subdivisions 19, 28; 5, subdivision 2; article 3, sections 20, subdivision 15; 24, subdivision 1; Laws 2015, First Special Session chapter 3, article 1, section 27, subdivisions 2, 4, 5, 6, 7, 9; article 2, section 70, subdivisions 2, 3, 4, 5, 6, 7, 11, 12; article 3, section 15, subdivision 3; article 4, sections 4; 9, subdivision 2; article 5, section 30, subdivisions 2, 3, 5; article 6, section 13, subdivisions 2, 3, 6, 7; article 7, section 7, subdivisions 2, 3, 4; article 9, section 8, subdivisions 5, 6, 7, 9; article 10, section 3, subdivision 2; article 11, section 3, subdivisions 2, 3; article 12, section 4; proposing coding for new law in Minnesota Statutes, chapters 119A; 120B; 121A; 122A; 124D; 125B; 127A; 129C; 136A; 136F; 137; 181; repealing Minnesota Statutes 2014, sections 120B.299, subdivision 5; 122A.40, subdivision 11; 122A.41, subdivision 14; 122A.413, subdivision 3; 122A.74; 123B.60, subdivision 2; 123B.79, subdivisions 2, 6; Minnesota Statutes 2015 Supplement, section 122A.413, subdivisions 1, 2; Minnesota Rules, part 3535.0110, subparts 6, 7, 8.
May 22, 2016
The Honorable Kurt L. Daudt
Speaker of the House of Representatives
The Honorable Sandra L. Pappas
President of the Senate
We, the undersigned conferees for H. F. No. 2749 report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 2749 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
HIGHER EDUCATION
|
Section 1. APPROPRIATIONS. |
The sums shown in the columns marked
"Appropriations" are added to the appropriations in Laws 2015,
chapter 69, article 1, unless otherwise specified, to the agencies and for the
purposes specified in this article. The
appropriations are from the general fund, or another named fund, and are
available for the fiscal years indicated for each purpose. The figures "2016" and
"2017" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2016, or June 30, 2017,
respectively. "The first year"
is fiscal year 2016. "The second
year" is fiscal year 2017.
"The biennium" is fiscal years 2016 and 2017.
|
|
|
|
APPROPRIATIONS |
||
|
|
|
|
Available for the Year |
||
|
|
|
|
Ending June 30 |
||
|
|
|
|
2016 |
2017 |
|
|
Sec. 2. MINNESOTA
OFFICE OF HIGHER EDUCATION |
|
|
|
|
Subdivision 1. Total
Appropriations |
|
$-0- |
|
$3,210,000 |
The
amounts that may be spent for each purpose are specified in the following
subdivisions.
|
Subd. 2. Equity
in Postsecondary Education Grants |
|
-0-
|
|
500,000
|
For equity in postsecondary attainment
grants under section 31. This
appropriation is available until June 30, 2020.
Of this appropriation, $25,000 may be used for administration expenses
to administer the grant program. This is
a onetime appropriation.
|
Subd. 3. State
Grant |
|
-0-
|
|
2,000,000
|
For the state grant program under Minnesota
Statutes, section 136A.121. This is a
onetime appropriation.
|
Subd. 4. Addiction Medicine Graduate Fellowship Program |
-0-
|
|
210,000
|
For establishing a grant program used to
support up to four physicians who are enrolled each year in an addiction
medicine fellowship program. A grant
recipient must be enrolled in a program that trains fellows in diagnostic
interviewing, motivational interviewing, addiction counseling, recognition and
care of common acute withdrawal syndromes and complications, pharmacotherapies
of addictive disorders, epidemiology and pathophysiology of addiction,
addictive disorders in special populations, secondary interventions, use of
screening and diagnostic instruments, inpatient care, and working within a multidisciplinary team, and prepares doctors to
practice addiction medicine in rural and underserved areas of the state. The base for this program is $210,000 in
fiscal year 2018 and $0 in fiscal year 2019.
|
Subd. 5. Student and Employer Connection Information System |
-0-
|
|
500,000
|
For a grant to the Saint Paul Foundation
for the creation of a web-based job and intern-seeking software tool that blind
matches the needs of employers located in Minnesota with the individual
profiles of high school seniors and postsecondary students attending Minnesota
high schools and postsecondary institutions.
No more than three percent of this appropriation may be used for administrative
expenses of the foundation. The
foundation must report by January 15, 2017, on activities under this
subdivision to the chairs and ranking minority members of the legislative
committees with jurisdiction over higher education finance. The base for this appropriation is $405,000
in fiscal year 2018.
|
Sec. 3. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES |
|
|
|
|
Subdivision 1. Total
Appropriations |
|
$-0- |
|
$790,000 |
The amounts that may be spent for each
purpose are specified in the following subdivisions.
|
Subd. 2. |
|
-0-
|
|
570,000
|
|
Subd. 3. MnSCU
Open Textbooks |
|
-0-
|
|
100,000
|
(a) For programs on system campuses that
promote adoption of open textbooks.
Programs must focus on the review, creation, and promotion of new or
existing open textbooks and on saving money for students while meeting the
academic needs of faculty. This is a
onetime appropriation.
(b) By January 15, 2017, the board shall
report to the chairs and ranking minority members of the legislative committees
with jurisdiction over higher education regarding the progress of the pilot
programs. The report shall include a
summary of each pilot program and the total savings expected for students as a
result of the programs.
|
Subd. 4. MnSCU
Open Textbook Library |
|
-0-
|
|
100,000
|
To expand and promote the open textbook
library to faculty across the state.
This is a onetime appropriation.
|
Subd. 5. Cook
County Higher Education Board |
|
-0-
|
|
20,000
|
For transfer to the Cook County Higher
Education Board to provide educational programming and academic support
services to remote regions in northeastern Minnesota. This appropriation is in addition to other
funds previously appropriated for transfer to the board.
|
Sec. 4. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA |
|
|
|
|
Subdivision
1. Total Appropriation |
|
$-0- |
|
$900,000 |
The amounts that may be spent for each
purpose are specified in the following subdivisions.
|
Subd. 2. Health
Training Restoration |
|
|
|
800,000
|
This appropriation must be used to support
all of the following:
(1) faculty physicians who teach at eight residency program sites, including medical resident and student training programs in the Department of Family Medicine;
(2) the Mobile Dental Clinic; and
(3) expansion of geriatric education and
family programs.
|
Subd. 3. Rochester Campus, Collegiate Recovery Program |
-0-
|
|
100,000
|
(a) To design and implement a collegiate
recovery program at its Rochester campus.
This is a onetime appropriation and is available until June 30, 2019.
(b) The purpose of the collegiate recovery
program is to provide structured support for students in recovery from alcohol,
chemical, or other addictive behaviors.
Program activities may include, but are not limited to, specialized
professional support through academic, career, and financial advising;
establishment of on‑campus or residential peer support communities; and
opportunities for personal growth through leadership development and other
community engagement activities.
(c) No later than January 15, 2020, the
Board of Regents must submit a report to the chairs and ranking minority
members of the legislative committees with jurisdiction over higher education
finance and policy on campus recovery program outcomes. Based on available data, the report must
describe, in summary form, the number of students participating in the program
and the success rate of participants, including retention and graduation rates,
and long-term recovery and relapse rates.
|
Sec. 5. OFFICE
OF OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES |
$-0- |
|
$100,000 |
For the duties of the office related to
clinical drug trials at the Department of Psychiatry at the University of Minnesota.
Sec. 6. MNSCU
TWO-YEAR COLLEGE PROGRAM; ADMINISTRATIVE COSTS.
The appropriation made by Laws 2015,
chapter 69, article 1, section 3, subdivision 18, paragraph (c), for fiscal
year 2017 for information technology and administrative costs is available on
the effective date of this section and until June 30, 2017.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. [136A.0412]
ACCEPTANCE OF PRIVATE FUNDS; APPROPRIATION.
The commissioner may accept donations,
grants, bequests, and other gifts of money to carry out the purposes of section
136A.01. Donations, nonfederal grants,
bequests, or other gifts of money accepted by the commissioner must be
deposited in an account in the special revenue fund and is appropriated to the
commissioner for the purpose for which it was given.
Sec. 8. Minnesota Statutes 2014, section 136A.101, subdivision 5a, is amended to read:
Subd. 5a. Assigned
family responsibility. "Assigned
family responsibility" means the amount of a family's contribution to a
student's cost of attendance, as determined by a federal need analysis. For dependent students, the assigned family
responsibility is 96 94 percent of the parental
contribution. For independent students
with dependents other than a spouse, the assigned family responsibility is 86
percent of the student contribution. For
independent students without dependents other than a spouse, the assigned
family responsibility is 50 percent of the student contribution.
Sec. 9. Minnesota Statutes 2014, section 136A.101, subdivision 10, is amended to read:
Subd. 10. Satisfactory academic progress. "Satisfactory academic progress" means satisfactory academic progress as defined under Code of Federal Regulations, title 34, sections 668.16(e), 668.32(f), and 668.34, except that a student with an intellectual disability as defined in Code of Federal Regulations, title 34, section 668.231, enrolled in an approved comprehensive transition and postsecondary program under that section is subject to the institution's published satisfactory academic process standards for that program as approved by the Office of Higher Education.
Sec. 10. Minnesota Statutes 2015 Supplement, section 136A.121, subdivision 7a, is amended to read:
Subd. 7a. Surplus
appropriation. If the amount
appropriated is determined by the office to be more than sufficient to fund
projected grant demand in the second year of the biennium, the office may
increase the living and miscellaneous expense allowance or the tuition and
fee maximums in the second year of the biennium by up to an amount that
retains sufficient appropriations to fund the projected grant demand. The adjustment may be made one or more
times. In making the determination that
there are more than sufficient funds, the office shall balance the need for
sufficient resources to meet the projected demand for grants with the goal of
fully allocating the appropriation for state grants. An increase in the living and miscellaneous
expense allowance under this subdivision does not carry forward into a
subsequent biennium.
Sec. 11. Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 2, is amended to read:
Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if the applicant:
(1) is a resident of the state of Minnesota or the applicant's spouse is a resident of the state of Minnesota;
(2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled as defined in section 125A.02, and who is receiving or will receive care on a regular basis from a licensed or legal, nonlicensed caregiver;
(3) is income eligible as determined by the office's policies and rules, but is not a recipient of assistance from the Minnesota family investment program;
(4) either has not earned a baccalaureate degree and has been enrolled full time less than eight semesters or the equivalent, or has earned a baccalaureate degree and has been enrolled full time less than eight semesters or the equivalent in a graduate or professional degree program;
(5) is pursuing a nonsectarian program or course of study that applies to an undergraduate, graduate, or professional degree, diploma, or certificate;
(6) is enrolled in at least half
time six credits in an undergraduate program or one credit in a graduate
or professional program in an eligible institution; and
(7) is in good academic standing and making satisfactory academic progress.
(b) A student who withdraws from enrollment for active military service after December 31, 2002, because the student was ordered to active military service as defined in section 190.05, subdivision 5b or 5c, or for a major illness, while under the care of a medical professional, that substantially limits the student's ability to complete the term is entitled to an additional semester or the equivalent of grant eligibility and will be considered to be in continuing enrollment status upon return.
Sec. 12. Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 4, is amended to read:
Subd. 4. Amount and length of grants. (a) The amount of a child care grant must be based on:
(1) the income of the applicant and the applicant's spouse;
(2) the number in the applicant's family, as defined by the office; and
(3) the number of eligible children in the applicant's family.
(b) The maximum award to the applicant shall be $2,800 for each eligible child per academic year, except that the campus financial aid officer may apply to the office for approval to increase grants by up to ten percent to compensate for higher market charges for infant care in a community. The office shall develop policies to determine community market costs and review institutional requests for compensatory grant increases to ensure need and equal treatment. The office shall prepare a chart to show the amount of a grant that will be awarded per child based on the factors in this subdivision. The chart shall include a range of income and family size.
(c) Applicants with family incomes at or below a percentage of the federal poverty level, as determined by the commissioner, will qualify for the maximum award. The commissioner shall attempt to set the percentage at a level estimated to fully expend the available appropriation for child care grants. Applicants with family incomes exceeding that threshold will receive the maximum award minus ten percent of their income exceeding that threshold. If the result is less than zero, the grant is zero.
(d) The academic year award amount must be disbursed by academic term using the following formula:
(1) the academic year amount described in paragraph (b);
(2) divided by the number of terms in the academic year;
(3) divided by 15 for undergraduate students and six for graduate and professional students; and
(4) multiplied by the number of credits for which the student is enrolled that academic term, up to 15 credits for undergraduate students and six for graduate and professional students.
(e) Payments shall be made each academic term to the student or to the child care provider, as determined by the institution. Institutions may make payments more than once within the academic term.
Sec. 13. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 4, is amended to read:
Subd. 4. Application for loan forgiveness. Each applicant for loan forgiveness, according to rules adopted by the commissioner, shall:
(1) apply for teacher shortage loan
forgiveness and promptly submit any additional information required by the
commissioner; and
(2) annually reapply for up to five
consecutive school years and submit information the commissioner requires to
determine the applicant's continued eligibility for loan forgiveness; and
(3) (2) submit to the
commissioner a completed affidavit, prescribed by the commissioner, affirming
the teacher is teaching in: (i) a
licensure field and in identified by the commissioner as experiencing
a teacher shortage; or (ii) an economic development region identified by
the commissioner as experiencing a teacher shortage.
Sec. 14. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 5, is amended to read:
Subd. 5. Amount of loan forgiveness. (a) To the extent funding is available, the annual amount of teacher shortage loan forgiveness for an approved applicant shall not exceed $1,000 or the cumulative balance of the applicant's qualified educational loans, including principal and interest, whichever amount is less.
(b) Recipients must secure their own qualified educational loans. Teachers who graduate from an approved teacher preparation program or teachers who add a licensure field, consistent with the teacher shortage requirements of this section, are eligible to apply for the loan forgiveness program.
(c) No teacher shall receive more than
five annual awards.
Sec. 15. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 6, is amended to read:
Subd. 6. Disbursement. (a) The commissioner must make annual disbursements directly to the participant of the amount for which a participant is eligible, for each year that a participant is eligible.
(b) Within 60 days of receipt of a the
disbursement date, the participant must provide the commissioner with
verification that the full amount of loan repayment disbursement has been
applied toward the designated loans. A
participant that previously received funds under this section but has not
provided the commissioner with such verification is not eligible to receive
additional funds.
Sec. 16. [136A.1792]
PROMOTION OF FEDERAL PUBLIC SERVICE LOAN FORGIVENESS PROGRAMS.
Subdivision 1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given.
(b) "Employer" means an
organization, agency, or entity that is a public service organization under
Code of Federal Regulations, title 34, part 685, section 219, provided that the
following are not employers:
(1) a federal or tribal government
organization, agency, or entity; and
(2) a tribal college or university.
(c) "Employment certification
form" means the form used by the United States Department of Education to
certify an individual's employment at a public service organization for the
purposes of the federal public service loan forgiveness program.
(d) "Federal loan forgiveness
program" means a loan forgiveness program offered under Code of Federal
Regulations, title 34, part 685.
(e) "Public service loan
forgiveness program" means the loan forgiveness program under Code of
Federal Regulations, title 34, part 685, section 219.
(f)
"Public service organization" means a public service organization
under Code of Federal Regulations, title 34, part 685, section 219.
Subd. 2. Promotion
of federal public service loan forgiveness programs. (a) The commissioner must develop and
distribute informational materials designed to increase awareness of federal
public service loan forgiveness programs among Minnesota residents who are
eligible for those programs. At a
minimum, the commissioner must develop and distribute informational materials
that public service organizations may use to promote awareness of the federal
public service loan forgiveness program, including:
(1)
a one-page letter addressed to individuals who may be eligible for the public
service loan forgiveness program that briefly summarizes the program, provides
information on what an eligible individual must do in order to participate, and
recommends that they contact their student loan servicer or servicers for
additional information;
(2) a detailed fact sheet describing the
public service loan forgiveness program; and
(3) a document containing answers to
frequently asked questions about the public service loan forgiveness program.
(b) In place of developing and
publishing an informational document required under paragraph (a), the commissioner may distribute a document published
by a federal agency that meets the requirements of paragraph (a).
Subd. 3. Publication
of informational materials. The
commissioner must make the informational materials required under subdivision 2
available on the office's Web site and must verify each biennium that the
informational materials contain current information. The commissioner must update and correct any
informational materials that the commissioner finds inaccurate or outdated.
Subd. 4. Employer
information. (a) An employer
must provide an employee with information about the employee's potential
eligibility for the federal public service loan forgiveness program. An employer must annually provide to each
employee in written or electronic form the one-page letter, fact sheet, and
frequently asked questions required under subdivision 2. In addition, an employer must provide a newly
hired employee with that information within two weeks of the employee's first
day of employment.
(b) At an employee's request, an
employer must provide the employee with a copy of the employment certification
form.
EFFECTIVE
DATE. Subdivision 4 is
effective January 1, 2017.
Sec. 17. [136A.1793]
PROMOTION OF TEACHER LOAN FORGIVENESS PROGRAMS.
The commissioner shall provide
information to public and private teacher education programs concerning public
and private student loan programs that provide for full or partial repayment
forgiveness. Teacher education programs
must provide the information furnished by the commissioner to their teacher
education students.
Sec. 18. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by adding a subdivision to read:
Subd. 10. Dual
training account. A dual
training account is created in the special revenue fund in the state
treasury. The commissioner shall deposit
into the account appropriations made for the purposes of this section. Money in the account is appropriated to the
commissioner for the purposes for which it was appropriated.
Sec. 19. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by adding a subdivision to read:
Subd. 11. Administration
expenses. The commissioner
may expend up to five percent of the appropriation made for the purposes of
this section for administration of this section.
Sec. 20. Minnesota Statutes 2015 Supplement, section 136A.87, is amended to read:
136A.87
PLANNING INFORMATION FOR POSTSECONDARY EDUCATION.
(a) The office shall make available to all residents beginning in 7th grade through adulthood information about planning and preparing for postsecondary opportunities. Information must be provided to all 7th grade students and their parents annually by September 30 about planning for their postsecondary education. The office may also provide information to high school students and their parents, to adults, and to out-of-school youth.
(b)
The office shall gather and share information with students and parents about
the dual credit acceptance policies of each Minnesota public and private
college and university. The office shall
gather and share information related to the acceptance policies for concurrent
enrollment courses, postsecondary enrollment options courses, advanced
placement courses, and international baccalaureate courses. This information must be shared on the
office's Web site and included in the information under paragraph (a).
(c) The information provided under paragraph (a) may include the following:
(1) the need to start planning early;
(2) the availability of assistance in educational planning from educational institutions and other organizations;
(3) suggestions for studying effectively during high school;
(4) high school courses necessary to be adequately prepared for postsecondary education;
(5) encouragement to involve parents actively in planning for all phases of education;
(6) information about postsecondary education and training opportunities existing in the state, their respective missions and expectations for students, their preparation requirements, admission requirements, and student placement;
(7) ways to evaluate and select postsecondary institutions;
(8) the process of transferring credits among Minnesota postsecondary institutions and systems;
(9) the costs of postsecondary education and the availability of financial assistance in meeting these costs, including specific information about the Minnesota Promise;
(10) the
interrelationship of assistance from student financial aid, public assistance,
and job training programs; and
(11) financial planning for postsecondary education.
EFFECTIVE
DATE. This section is
effective for the 2016-2017 school year and later.
Sec. 21. Minnesota Statutes 2015 Supplement, section 136F.302, subdivision 1, is amended to read:
Subdivision 1. ACT or
SAT college ready score. (a)
A state college or university may must not require an individual
to take a remedial, noncredit course in a subject area if the individual has
received a college ready ACT or SAT score in that subject area.
(b) When deciding if an individual is
admitted to or if an individual may enroll in a state college or university,
the state college or university must consider the individual's scores on the
high school Minnesota Comprehensive Assessments, in addition to other factors
determined relevant by the college or university.
Sec. 22. Minnesota Statutes 2014, section 245.92, is amended to read:
245.92
OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS; FUNCTION.
The ombudsman for persons receiving services or treatment for mental illness, developmental disabilities, chemical dependency, or emotional disturbance shall promote the highest attainable standards of treatment, competence, efficiency, and justice. The ombudsman may gather information and data about decisions, acts, and
other matters of an agency, facility, or program, and shall monitor the treatment of individuals participating in a University of Minnesota Department of Psychiatry clinical drug trial. The ombudsman is appointed by the governor, serves in the unclassified service, and may be removed only for just cause. The ombudsman must be selected without regard to political affiliation and must be a person who has knowledge and experience concerning the treatment, needs, and rights of clients, and who is highly competent and qualified. No person may serve as ombudsman while holding another public office.
Sec. 23. Minnesota Statutes 2014, section 245.94, is amended to read:
245.94
POWERS OF OMBUDSMAN; REVIEWS AND EVALUATIONS; RECOMMENDATIONS.
Subdivision 1. Powers. (a) The ombudsman may prescribe the methods by which complaints to the office are to be made, reviewed, and acted upon. The ombudsman may not levy a complaint fee.
(b) The ombudsman may mediate or advocate on behalf of a client.
(c) The ombudsman may investigate the quality of services provided to clients and determine the extent to which quality assurance mechanisms within state and county government work to promote the health, safety, and welfare of clients, other than clients in acute care facilities who are receiving services not paid for by public funds. The ombudsman is a health oversight agency as defined in Code of Federal Regulations, title 45, section 164.501.
(d) At the request of a client, or upon receiving a complaint or other information affording reasonable grounds to believe that the rights of a client who is not capable of requesting assistance have been adversely affected, the ombudsman may gather information and data about and analyze, on behalf of the client, the actions of an agency, facility, or program.
(e) The ombudsman may gather, on behalf of a client, records of an agency, facility, or program, or records related to clinical drug trials from the University of Minnesota Department of Psychiatry, if the records relate to a matter that is within the scope of the ombudsman's authority. If the records are private and the client is capable of providing consent, the ombudsman shall first obtain the client's consent. The ombudsman is not required to obtain consent for access to private data on clients with developmental disabilities. The ombudsman is not required to obtain consent for access to private data on decedents who were receiving services for mental illness, developmental disabilities, or emotional disturbance. All data collected, created, received, or maintained by the ombudsman are governed by chapter 13 and other applicable law.
(f) Notwithstanding any law to the contrary, the ombudsman may subpoena a person to appear, give testimony, or produce documents or other evidence that the ombudsman considers relevant to a matter under inquiry. The ombudsman may petition the appropriate court in Ramsey County to enforce the subpoena. A witness who is at a hearing or is part of an investigation possesses the same privileges that a witness possesses in the courts or under the law of this state. Data obtained from a person under this paragraph are private data as defined in section 13.02, subdivision 12.
(g) The ombudsman may, at reasonable times in the course of conducting a review, enter and view premises within the control of an agency, facility, or program.
(h) The ombudsman may attend Department of Human Services Review Board and Special Review Board proceedings; proceedings regarding the transfer of patients or residents, as defined in section 246.50, subdivisions 4 and 4a, between institutions operated by the Department of Human Services; and, subject to the consent of the affected client, other proceedings affecting the rights of clients. The ombudsman is not required to obtain consent to attend meetings or proceedings and have access to private data on clients with developmental disabilities.
(i) The ombudsman shall gather data of agencies, facilities, or programs classified as private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding services provided to clients with developmental disabilities.
(j) To avoid duplication and preserve evidence, the ombudsman shall inform relevant licensing or regulatory officials before undertaking a review of an action of the facility or program.
(k) The ombudsman shall monitor the
treatment of individuals participating in a University of Minnesota Department
of Psychiatry clinical drug trial and ensure that all protections for human
subjects required by federal law and the Institutional Review Board are
provided.
(l) Sections 245.91 to 245.97 are in addition to other provisions of law under which any other remedy or right is provided.
Subd. 2. Matters appropriate for review. (a) In selecting matters for review by the office, the ombudsman shall give particular attention to unusual deaths or injuries of a client or reports of emergency use of manual restraint as identified in section 245D.061, served by an agency, facility, or program, or actions of an agency, facility, or program that:
(1) may be contrary to law or rule;
(2) may be unreasonable, unfair, oppressive, or inconsistent with a policy or order of an agency, facility, or program;
(3) may be mistaken in law or arbitrary in the ascertainment of facts;
(4) may be unclear or inadequately explained, when reasons should have been revealed;
(5) may result in abuse or neglect of a person receiving treatment;
(6) may disregard the rights of a client or other individual served by an agency or facility;
(7) may impede or promote independence, community integration, and productivity for clients; or
(8) may impede or improve the monitoring or evaluation of services provided to clients.
(b) The ombudsman shall, in selecting matters for review and in the course of the review, avoid duplicating other investigations or regulatory efforts.
(c) The ombudsman shall give particular
attention to the death or unusual injury of any individual who is participating
in a University of Minnesota Department of Psychiatry clinical drug trial.
Subd. 2a. Mandatory
reporting. Within 24 hours after a
client suffers death or serious injury, the agency, facility, or program
director, or lead investigator of a clinical drug trial at the University of
Minnesota Department of Psychiatry shall notify the ombudsman of the death
or serious injury. The emergency use of
manual restraint must be reported to the ombudsman as required under section
245D.061, subdivision 8. The ombudsman
is authorized to receive identifying
information about a deceased client according to Code of Federal Regulations,
title 42, section 2.15, paragraph (b).
Subd. 3. Complaints. (a) The ombudsman may receive a complaint from any source concerning an action of an agency, facility, or program. After completing a review, the ombudsman shall inform the complainant and the agency, facility, or program. No client may be punished nor may the general condition of the client's treatment be
unfavorably altered as a result of an investigation, a complaint by the client, or by another person on the client's behalf. An agency, facility, or program shall not retaliate or take adverse action against a client or other person, who in good faith makes a complaint or assists in an investigation. The ombudsman may classify as confidential, the identity of a complainant, upon request of the complainant.
(b) The ombudsman shall receive a
complaint from any source concerning an action or inaction of the University of
Minnesota Department of Psychiatry related to an individual who is enrolled in
a department-approved clinical drug trial.
No individual participating in the trial may be punished, nor may the
general condition of the individual's treatment be unfavorably altered, as a
result of an investigation or a complaint by the individual or the individual's
advocate. The university shall not
retaliate or take adverse action against any person who in good faith makes a
complaint or assists in an investigation.
The ombudsman may classify the identity of the complainant as
confidential, upon request of the complainant.
Subd. 4. Recommendations to agency. (a) If, after reviewing a complaint or conducting an investigation and considering the response of an agency, facility, or program and any other pertinent material, the ombudsman determines that the complaint has merit or the investigation reveals a problem, the ombudsman may recommend that the agency, facility, or program:
(1) consider the matter further;
(2) modify or cancel its actions;
(3) alter a rule, order, or internal policy;
(4) explain more fully the action in question; or
(5) take other action.
(b) At the ombudsman's request, the agency, facility, or program shall, within a reasonable time, inform the ombudsman about the action taken on the recommendation or the reasons for not complying with it.
Subd. 5. Recommendations
to University of Minnesota. If,
after reviewing a complaint or conducting an investigation and considering the
response of the clinical drug trial's primary investigator or the Department of
Psychiatry, the ombudsman determines that the complaint has merit or the
investigation reveals noncompliance with the federal protection of human
subjects requirements or the requirements of the Institutional Review Board,
the ombudsman shall recommend that the Board of Regents of the University of
Minnesota take corrective action to remedy the violations.
Sec. 24. Minnesota Statutes 2014, section 245.95, subdivision 1, is amended to read:
Subdivision 1. Specific
reports. The ombudsman may send
conclusions and suggestions concerning any matter reviewed to the
governor. Before making public a
conclusion or recommendation that expressly or implicitly criticizes an agency,
facility, program, or any person, the ombudsman shall consult with the governor
and the agency, facility, program, or person concerning the conclusion or
recommendation. When sending a
conclusion or recommendation to the governor that is adverse to an agency,
facility, program, or any person, the ombudsman shall include any statement of
reasonable length made by that agency, facility, program, or person in defense
or mitigation of the office's conclusion or recommendation. For purposes of this subdivision,
"agency, facility, program, or any person" includes the University of
Minnesota Department of Psychiatry and its employees working in clinical drug
trials.
Sec. 25. Minnesota Statutes 2014, section 245.97, subdivision 5, is amended to read:
Subd. 5. Medical Review Subcommittee. At least five members of the committee, including at least three physicians, one of whom is a psychiatrist, must be designated by the governor to serve as a Medical Review Subcommittee. Terms of service, vacancies, and compensation are governed by subdivision 2. The governor shall designate one of the members to serve as chair of the subcommittee. The Medical Review Subcommittee may have access to private and confidential data collected or created by the ombudsman that are necessary to fulfill the duties of the Medical Review Subcommittee under this section and may:
(1) make a preliminary determination of whether the death of a client that has been brought to its attention is unusual or reasonably appears to have resulted from causes other than natural causes and warrants investigation;
(2) review the causes of and circumstances surrounding the death;
(3) request the county coroner or medical examiner to conduct an autopsy;
(4) assist an agency in its investigations
of unusual deaths and deaths from causes other than natural causes; and
(5) make a preliminary determination of
whether the death of a participant in a clinical drug trial conducted by the
University of Minnesota Department of Psychiatry appears to have resulted from
causes other than natural causes and warrants investigation and reporting as
required by federal laws on the protection of human subjects; and
(6) submit a report regarding the death of a client to the committee, the ombudsman, the client's next-of-kin, and the facility where the death occurred and, where appropriate, make recommendations to prevent recurrence of similar deaths to the head of each affected agency or facility, or the Board of Regents of the University of Minnesota.
Sec. 26. Laws 2015, chapter 69, article 3, section 20, subdivision 15, is amended to read:
Subd. 15. Reporting. (a) A college must report to the commissioner the following information:
(1) the number of grantees and their race, gender, and ethnicity;
(2) grantee persistence and completion;
(3) employment outcomes; and
(4) other information requested by the commissioner.
(b) The commissioner shall report annually
by January 15, 2017, and January 15, 2018, to the chairs and ranking
minority members of the legislative committees with jurisdiction over higher
education finance by college and in aggregate on the information submitted to
the commissioner under paragraph (a).
The commissioner may include in the report recommendations for changes
in the grant program.
Sec. 27. Laws 2015, chapter 69, article 3, section 24, subdivision 1, is amended to read:
Subdivision 1. Pilot
program created. The commissioner of
the Office of Higher Education shall make a grant to a nonprofit qualified debt
counseling organization to provide individual student loan debt repayment
counseling to borrowers who are Minnesota residents concerning loans obtained
to attend a Minnesota postsecondary institution. The counseling shall be provided to
borrowers who are 30 to 60 days delinquent when they are referred to or
otherwise identified by the organization as candidates for counseling. The number of individuals receiving
counseling may be limited to those capable of being served with available appropriations for that purpose. A goal of the counseling program is to provide two counseling sessions to at least 75 percent of borrowers receiving counseling.
The purpose of the counseling is to assist borrowers to:
(1) understand their loan and repayment options;
(2) manage loan repayment; and
(3) develop a workable budget based on the borrower's full financial situation regarding income, expenses, and other debt.
EFFECTIVE DATE. This section is effective the day following final
enactment and is retroactive to July 1, 2015.
Sec. 28. STATE
GRANT TUITION CAPS.
For the purposes of the state grant
program under Minnesota Statutes, section 136A.121, for the fiscal year ending
June 30, 2017, the tuition maximum is $5,736 for students in two-year programs
and the tuition maximum is $14,186 for students in four-year programs.
Sec. 29. MNSCU
PROGRAM FOR STUDENTS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES; PLAN
REQUIRED.
Subdivision 1. Development of plan required. The Board of Trustees of the Minnesota State Colleges and Universities must develop a plan for offering an academic program for students with intellectual and developmental disabilities, consistent with the principles established in subdivisions 2 to 4.
Subd. 2. Program
locations. The plan developed
must assume the program will be offered at up to four college or university
campuses chosen based on (1) their ability to offer a robust program using
existing facilities and resources and (2) a goal to provide the program in
diverse geographic regions of the state.
Subd. 3. Enrollment
and admission. The plan
developed must assume an enrollment goal for each campus's program of at least
ten incoming students per academic year.
The plan may allow for students to be admitted based on an application
process that includes an in-person interview; an independent assessment of an
applicant's interest, motivation, and likelihood of success in the program; and
any other eligibility requirements established by the board. Upon successful completion, a student must be
awarded a certificate, diploma, or other appropriate academic credential.
Subd. 4. Curriculum
and activities. (a) The plan
developed must assume a program that provides an inclusive, two-year full-time
residential college experience for students with intellectual and developmental
disabilities. The required curriculum
must include core courses that develop life skills, financial literacy, and the
ability to live independently; rigorous academic work in a student's chosen
field of study; and an internship, apprenticeship, or other skills-based
experience to prepare for meaningful employment upon completion of the program.
(b) In addition to academic
requirements, the plan developed must allow participating students the
opportunity to engage fully in campus life.
Program activities must include but are not limited to (1) the establishment
of on-campus mentoring and peer support communities and (2) opportunities for
personal growth through leadership development and other community engagement
activities.
(c)
A participating campus may tailor its program curriculum and activities to
highlight academic programs, student and community life experiences, and
employment opportunities unique to that campus or the region of the state where
the campus is located.
Subd. 5. Report
to legislature. The board
must submit a report on the plan required to be developed by this section to
the chairs and ranking minority members of the committees of the legislature
with jurisdiction over higher education finance and policy and human services
finance and policy no later than January 15, 2017. The report must describe program plans, including
strategies for recruitment of applicants, and strategies to address anticipated
program needs that cannot be filled using existing campus or system resources.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 30. UNIVERSITY
OF MINNESOTA AND MNSCU BUDGET ALLOCATION REPORTS.
(a) The Board of Regents of the
University of Minnesota shall report by February 1, 2017, to the chairs and
ranking minority members of the legislative committees with primary jurisdiction
over higher education finance on the factors it considers when allocating funds
to system campuses. The report must
specifically, without limitation, address the following questions:
(1) what circumstances would lead the
university to adopt an alternate budget model to the Resource Responsibility
Center (RRC) model for a system campus;
(2) what were the rationale and factors
considered for the initial base budget allocation to system campuses when the
RRC was first established; and
(3) what factors would lead the
university to consider adjusting the initial base allocation model.
(b) The Board of Trustees of the
Minnesota State Colleges and Universities shall report by February 1, 2017, to
the chairs and ranking minority members of the legislative committees with
primary jurisdiction over higher education finance on the factors it considers
when allocating state funds to colleges and universities. The report must specifically, without
limitations, address the following areas:
(1) the design and methodology for the
allocation of state funds to the colleges and universities; and
(2) the factors considered in the
allocation process.
Sec. 31. EQUITY
IN EDUCATION AND JOB CONNECTION GRANT PROGRAM.
Subdivision 1. Grants. (a) The commissioner of the Office of
Higher Education shall award grants to improve postsecondary attendance,
completion, and retention and the obtaining of well-paying jobs for which the
postsecondary education provides training by providing services to historically
underrepresented college students.
Grants must be awarded to Minnesota state colleges and universities and
private organization programs that help the state reach the attainment goals
under Minnesota Statutes, section 135A.012.
Programs must provide services targeted to make the improvements
including, but not limited to:
(1) academic and nonacademic counseling
or advising;
(2) mentoring in education and career
opportunities;
(3) structured tutoring;
(4)
career awareness and exploration including internships and post graduation job
placements;
(5) orientation to college life;
(6) financial aid counseling;
(7) academic instruction programs in core
curricular areas of mathematics and language arts;
(8) supplemental instruction programs for
college courses with high failure and withdrawal rates; and
(9) co-requisite college course models for
delivery of academic support.
(b) The office shall structure the
grants for sustainability of programs funded by a grant.
(c) To the extent there are sufficient
qualified applicants, approximately 50 percent of grant dollars must be awarded
to private organization programs.
(d) A grant must not be made to a
private organization that is a postsecondary institution.
Subd. 2. Application
process. (a) The commissioner
shall develop a grant application process.
The commissioner shall attempt to support projects in a manner that
ensures that eligible students throughout the state have access to program
services.
(b) The grant application must include, at
a minimum, the following information:
(1) a description of the characteristics
of the students to be served reflective of the need for services listed in
subdivision 1;
(2) a description of the services to be
provided and a timeline for implementation of the service activities;
(3) a description of how the services
provided will foster postsecondary retention and completion;
(4) a description of how the services will
be evaluated to determine whether the program goals were met;
(5) the history of the applicant in
achieving successful improvements using the services for which a grant is
sought;
(6) the assumed cost per student of
achieving successful outcomes;
(7) the effect of the grant on assisting students to obtain well-paying jobs;
(8) the proposed grant match;
(9) the organizational commitment to
program sustainability; and
(10) other information as identified by
the commissioner.
Grant recipients must specify both program and student
outcome goals, and performance measures for each goal.
Subd. 3. Advisory
committee. The commissioner
may establish and convene an advisory committee to assist the commissioner in
reviewing applications and advise the commissioner on grantees and grant
amounts. The members of the committee
may include representatives of postsecondary institutions, organizations
providing postsecondary academic and career services, and others deemed
appropriate by the commissioner.
Subd. 4. Outcome
report. Each grant recipient
must annually submit a report to the Office of Higher Education identifying its
program and student goals and activities implemented. A report must include, but not be limited to,
information on:
(1) number of students served;
(2) course taking and grade point
average of participating students;
(3) persistence and retention rates of participating students;
(4) postsecondary graduation rates of
participating students;
(5) the number of students who required
postsecondary academic remediation and number of remedial courses for each of
those students and in the aggregate; and
(6) jobs and wage rates of students
after postsecondary graduation.
To the extent possible, the report must breakdown outcomes
by Pell grant qualification, race, and ethnicity.
Subd. 5. Legislative
report. By January 15 of each
year through 2021, the office shall submit a report to the chairs and ranking
minority members of the committees in the house of representatives and the
senate with jurisdiction over higher education finance regarding the grant
recipients and their activities. The report
shall include information about the students served, the organizations
providing services, program activities, program goals and outcomes, and program
revenue sources and funding levels.
ARTICLE 2
AGRICULTURE
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Section 1. APPROPRIATIONS. |
The sums shown in the columns marked
"Appropriations" are added to the appropriations in Laws 2015, First
Special Session chapter 4, or appropriated to the agencies and for the purposes
specified in this article. The
appropriations are from the general fund, or another named fund, and are
available for the fiscal year indicated for each purpose. The figures "2016" and
"2017" used in this article mean that the addition to the
appropriations listed under them are available for the fiscal year ending June
30, 2016, or June 30, 2017, respectively.
"The first year" is fiscal year 2016. "The second year" is fiscal year
2017. Appropriations for fiscal year
2016 are effective the day following final enactment.
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APPROPRIATIONS |
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Available for the Year |
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Ending June 30 |
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2016 |
2017 |
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Sec. 2. DEPARTMENT
OF AGRICULTURE |
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$-0- |
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$4,433,000 |
$250,000 the second year is for the
tractor rollover protection pilot program under Minnesota Statutes, section
17.119. This is a onetime appropriation.
$250,000
the second year is to administer the industrial hemp pilot program under
Minnesota Statutes, section 18K.09. This
is a onetime appropriation.
$1,000,000 the second year is for grants
to the Board of Regents of the University of Minnesota to fund the Forever
Green Agriculture Initiative and to protect the state's natural resources while
increasing the efficiency, profitability, and productivity of Minnesota farmers
by incorporating perennial and winter annual crops into existing agricultural
practices. This is a onetime
appropriation and is available until June 30, 2019. The appropriation in Laws 2015, First Special
Session chapter 2, article 2, section 3, paragraph (i), is available until June
30, 2018.
$600,000 the second year is for a grant to
the Board of Regents of the University of Minnesota to develop, in consultation
with the commissioner of agriculture and the Board of Animal Health, a software tool or application through the
Veterinary Diagnostic Laboratory that empowers veterinarians and producers to
understand the movement of unique pathogen strains in livestock and poultry production
systems, monitor antibiotic resistance, and implement effective biosecurity measures that promote animal health and
limit production losses. The base for fiscal year 2020 is $0.
In addition to the amounts appropriated in
Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision
4:
(1) $450,000 the second year is appropriated for transfer to the Board of Regents of the University of Minnesota for the cultivated wild rice breeding project at the North Central Research and Outreach Center to include a tenure track/research associate plant breeder; and
(2) $350,000 the second year is
appropriated for transfer to the Board of Regents of the University of
Minnesota for potato breeding.
$283,000 the second year is for a grant to
the Board of Regents of the University of Minnesota to maintain and increase
animal disease testing capacity through the purchase of Veterinary Diagnostic
Laboratory equipment. This is a onetime
appropriation.
$250,000 the second year is appropriated
for transfer to the good food access account created under Minnesota Statutes,
section 17.1017, subdivision 3. This is
a onetime appropriation and is available until June 30, 2019.
$1,000,000 the second year is appropriated
for transfer to the agricultural emergency account in the agricultural
fund. This is a onetime transfer.
Sec. 3. [17.041]
AGRICULTURAL EMERGENCY ACCOUNT; APPROPRIATION.
Subdivision 1. Establishment;
appropriation. An
agricultural emergency account is established in the agricultural fund. Money in the account, including interest, is
appropriated to the commissioner for emergency response and preparedness
activities for agricultural emergencies affecting producers of livestock,
poultry, crops, or other agricultural products.
Eligible uses include, but are not limited to, purchasing necessary
equipment and reimbursing costs incurred by local units of government that are
not eligible for reimbursement from other sources.
Subd. 2. Transfer
authorized. The commissioner
may transfer money in the account to the Board of Animal Health, other state
agencies, or the University of Minnesota for purposes of subdivision 1.
Subd. 3. Annual
report. No later than
February 1 each year, the commissioner must report activities and expenditures
under this section to the legislative committees and divisions with
jurisdiction over agriculture finance.
Sec. 4. [17.1017]
GOOD FOOD ACCESS PROGRAM.
Subdivision 1. Definitions. (a) For purposes of this section,
unless the language or context indicates that a different meaning is intended,
the following terms have the meanings given them.
(b) "Account" means the good
food access account established in subdivision 3.
(c) "Commissioner" means the
commissioner of agriculture.
(d) "Economic or community
development financial institution (ECDFI)" means a lender, including but
not limited to a community development financial institution (CDFI), an
economic development district (EDD), a political subdivision of the state, a
microenterprise firm, or a nonprofit community lending organization that has
previous experience lending to a food retailer, producer, or another healthy
food enterprise in an underserved community in a low-income or moderate-income
area, as defined in this section; has been in existence and operating prior to
January 1, 2014; has demonstrated the ability to raise matching capital and
in-kind services to leverage appropriated money; has the demonstrated ability
to underwrite loans and grants; and has partnered previously with nonprofit
healthy food access, public health, or related governmental departments or
community organizations.
(e) "Farmers' market" means
an association of three or more persons who assemble at a defined location that
is open to the public for the purpose of selling directly to the consumer the
products of a farm or garden occupied and cultivated by the person selling the
product.
(f) "Financing" means loans,
including low-interest loans, zero-interest loans, forgivable loans, and other
types of financial assistance other than grants.
(g) "Food hub" means a
centrally located facility with a business management structure that
facilitates the aggregation, storage, processing, distribution, marketing, and
sale of locally or regionally produced food products, and which may include a
small-scale retail grocery operation.
(h) "Good Food Access Program
Advisory Committee" means the Good Food Access Program Advisory Committee
under section 17.1018.
(i) "Grocery store" means a
for-profit, not-for-profit, or cooperative self-service retail establishment
that sells primarily meat, fish, seafood, fruits, vegetables, dry groceries,
and dairy products and may also sell household products, sundries, and other
products. Grocery store includes a
supermarket or a large-, mid-, or small-scale retail grocery establishment and
may include a mobile food market or a delivery service operation.
(j)
"Low-income area" means a census tract as reported in the most recently
completed decennial census published by the United States Bureau of the Census
that has a poverty rate of at least 20 percent or in which the median family
income does not exceed 80 percent of the greater of the statewide or
metropolitan median family income.
(k) "Moderate-income area"
means a census tract as reported in the most recently completed decennial
census published by the United States Bureau of the Census in which the median
family income is between 81 percent and 95 percent of the median family income
for that area.
(l) "Mobile food market" means
a self-contained for-profit, not-for-profit, or cooperative retail grocery
operation located in a movable new or renovated truck, bus, or other vehicle
that is used to store, prepare, display, and sell primarily meat, fish,
seafood, fruits, vegetables, dry groceries, and dairy products and may also be
used to sell a nominal supply of cooking utensils and equipment and other
household products and sundries.
(m) "Program" means the good
food access program established in this section.
(n) "Small food retailer"
means a small-scale retail food outlet, other than a grocery store as defined
in this section. Small food retailer
includes, but is not limited to, a corner store, convenience store, farmers'
market, mobile food market, and a retail food outlet operated by an emergency
food program or food hub.
(o) "Technical assistance"
means needs-based project assistance provided through the program, including
sustainability-focused individualized guidance, presentations, workshops,
trainings, printed materials, mentorship opportunities, peer-to-peer
opportunities, or other guidance and resources on relevant topics such as
business planning, sales projections, cash flow, succession planning,
financing, fund-raising, marketing, food preparation demonstrations, and
workforce training.
(p) "Underserved community"
means a census tract that is federally designated as a food desert by the
United States Department of Agriculture, or a census tract in a low-income or
moderate-income area that includes a substantial subpopulation such as the
elderly or the disabled that has low supermarket access, regardless of
distance, due to lack of transportation.
Subd. 2. Program
established. (a) A good food
access program is established within the Department of Agriculture to increase
the availability of and access to affordable, nutritious, and culturally
appropriate food, including fresh fruits and vegetables, for underserved
communities in low-income and moderate-income areas by providing financial
support and sustainable public-private projects to open, renovate, or expand
the operations of grocery stores and small food retailers; expanding access to
credit and reducing barriers to investment in underserved communities in low-
and moderate-income areas; and to provide technical assistance, primarily for
small food retailers with demonstrated need, to increase availability and
sustainable sales of affordable, nutritious, and culturally appropriate food,
including fresh fruits and vegetables, to underserved communities in low-income
and moderate-income areas. The
commissioner, in cooperation with public and private partners, shall establish
and implement the program as provided in this section.
(b) The good food access program shall
be comprised of state or private grants, loans, or other types of financial and
technical assistance for the establishment, construction, expansion of
operations, or renovation of grocery stores and small food retailers to
increase the availability of and access to affordable fresh produce and other
nutritious, culturally appropriate food to underserved communities in
low-income and moderate-income areas.
Subd. 3. Good
food access account. A good
food access account is established in the agricultural fund. The account consists of money appropriated by
the legislature to the commissioner, as provided by law, and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in the account, including interest, is
appropriated to the commissioner for the purposes of this section, and shall be
used, to the extent practicable, to leverage other forms of public and private
financing or financial assistance for the projects.
Subd. 4. Program
administration. (a) The commissioner
shall be the administrator of the account for auditing purposes and shall
establish program requirements and a competitive process for projects applying
for financial and technical assistance.
(b) The commissioner may receive money
or other assets from any source, including but not limited to philanthropic
foundations and financial investors, for deposit into the account.
(c) Through issuance of requests for
proposals, the commissioner may contract with one or more qualified economic or
community development financial institutions to manage the financing component
of the program and with one or more qualified organizations or public agencies
with financial or other program-related expertise to manage the provision of
technical assistance to project grantees.
(d) Money in the account at the close
of each fiscal year shall remain in the account and shall not cancel. In each biennium, the commissioner shall
determine the appropriate proportion of money to be allocated to loans, grants,
technical assistance, and any other types of financial assistance.
(e) To encourage public-private,
cross-sector collaboration and investment in the account and program and to
ensure that the program intent is maintained throughout implementation, the
commissioner shall convene and maintain the Good Food Access Program Advisory
Committee.
(f) The commissioner, in cooperation
with the Good Food Access Program Advisory Committee, shall manage the program,
establish program criteria, facilitate leveraging of additional public and
private investment, and promote the program statewide.
(g) The commissioner, in cooperation
with the Good Food Access Program Advisory Committee, shall establish annual
monitoring and accountability mechanisms for all projects receiving financing
or other financial or technical assistance through this program.
Subd. 5. Eligible
projects. (a) The
commissioner, in cooperation with the program partners and advisors, shall
establish project eligibility guidelines and application processes to be used
to review and select project applicants for financing or other financial or
technical assistance. All projects must
be located in an underserved community or must serve primarily underserved
communities in low-income and moderate-income areas.
(b) Projects eligible for financing
include, but are not limited to, new construction, renovations, expansions of operations, and infrastructure upgrades of
grocery stores and small food retailers to improve the availability of and
access to affordable, nutritious food, including fresh fruits and vegetables,
and build capacity in areas of greatest need.
(c) Projects eligible for other types
of financial assistance such as grants or technical assistance are primarily
projects throughout the state, including, but not limited to, feasibility
studies, new construction, renovations, expansion of operations, and
infrastructure upgrades of small food retailers.
Subd. 6. Qualifications
for receipt of financing and other financial or technical assistance. (a) An applicant for receipt of
financing through an economic or community development financial institution,
or an applicant for a grant or other financial or technical assistance, may be
a for-profit or not-for-profit entity, including, but not limited to, a sole
proprietorship, limited liability company, corporation, cooperative, nonprofit
organization, or nonprofit community development organization. Each applicant must:
(1) demonstrate community engagement in
and support for the project;
(2) demonstrate the capacity to
successfully implement the project;
(3)
demonstrate a viable plan for long-term sustainability, including the ability
to increase the availability of and access to affordable, nutritious, and
culturally appropriate food, including fresh fruits and vegetables, for
underserved communities in low-income and moderate-income areas; and
(4) demonstrate the ability to repay
the debt, to the extent that the financing requires repayment.
(b) Each applicant must also agree to
comply with the following conditions for a period of at least five years,
except as otherwise specified in this section:
(1) accept Supplemental Nutrition
Assistance Program (SNAP) benefits;
(2) apply to accept Special
Supplemental Nutrition Program for Women, Infants, and Children (WIC) benefits
and, if approved, accept WIC benefits;
(3) allocate at least 30 percent of
retail space for the sale of affordable, nutritious, and culturally appropriate
foods, including fruits and vegetables, low-fat and nonfat dairy, fortified
dairy substitute beverages such as soy‑based or nut-based dairy
substitute beverages, whole grain-rich staple foods, meats, poultry, fish,
seafood, and other proteins, consistent with nutrition standards in national
guidelines described in the current United States Department of Agriculture
Dietary Guidelines for Americans;
(4) comply with all data collection and
reporting requirements established by the commissioner; and
(5) promote the hiring, training, and
retention of local or regional residents from low-income and moderate-income
areas that reflect area demographics, including communities of color.
(c) A selected project that is a small
food retailer is not subject to the allocation agreement under paragraph (b),
clause (3), and may use financing, grants, or other financial or technical
assistance for refrigeration, displays, or onetime capital expenditures for the
promotion and sale of perishable foods, including a combination of affordable,
nutritious, and culturally appropriate fresh or frozen dairy, dairy substitute
products, produce, meats, poultry, and fish, consistent with nutrition
standards in national guidelines described in the current United States
Department of Agriculture Dietary Guidelines for Americans.
Subd. 7. Additional
selection criteria. In
determining which qualified projects to finance, and in determining which
qualified projects to provide with grants or other types of financial or
technical assistance, the commissioner, in cooperation with any entities with
which the commissioner contracts for those purposes and the Good Food Access
Program Advisory Committee, shall also consider:
(1) the level of need in the area to be
served;
(2) the degree to which the project
requires an investment of public support, or technical assistance where
applicable, to move forward, build capacity, create community impact, or be
competitive;
(3) the likelihood that the project
will have positive economic and health impacts on the underserved community,
including creation and retention of jobs for local or regional residents from
low-income and moderate-income areas that reflect area demographics, including
communities of color;
(4) the degree to which the project
will participate in state and local health department initiatives to educate
consumers on nutrition, promote healthy eating and healthy weight, and support
locally grown food products through programs such as Minnesota Grown; and
(5)
any other criteria that the commissioner, in cooperation with public and
private partners, determines to be consistent with the purposes of this
chapter.
Subd. 8. Eligible
costs. Financing for project
loans, including low-interest, zero-interest, and forgivable loans, grants, and
other financial or technical assistance, may be used to support one or more of
the following purposes:
(1) site acquisition and preparation;
(2) predevelopment costs, including but
not limited to feasibility studies, market studies, and appraisals;
(3) construction and build-out costs;
(4) equipment and furnishings;
(5) workforce or retailer training; and
(6) working capital.
Subd. 9. Legislative
report. The commissioner, in
cooperation with any economic or community development financial institution
and any other entity with which it contracts, shall submit an annual report on
the good food access program by January 15 of each year to the chairs and
ranking minority members of the house of representatives and senate committees
and divisions with jurisdiction over agriculture policy and finance. The annual report shall include, but not be
limited to, a summary of the following metrics:
(1) the number and types of projects
financed;
(2) the amount of dollars leveraged or
matched per project;
(3) the geographic distribution of
financed projects;
(4) the number and types of technical
assistance recipients;
(5) any market or commodity expansion
associated with increased access;
(6) the demographics of the areas
served;
(7) the costs of the program;
(8) the number of SNAP and WIC dollars
spent;
(9) any increase in retail square
footage;
(10) the number of loans or grants to
minority-owned or female-owned businesses; and
(11) measurable economic and health
outcomes, including, but not limited to, increases in sales and consumption of
locally sourced and other fresh fruits and vegetables, the number of
construction and retail jobs retained or created, and any health initiatives
associated with the program.
Sec. 5. [17.1018]
GOOD FOOD ACCESS PROGRAM ADVISORY COMMITTEE.
Subdivision 1. Definitions. As used in this section, the following
terms have the meanings given them:
(1) "program" means the good
food access program under section 17.1017; and
(2)
"commissioner" means the commissioner of agriculture.
Subd. 2. Creation. The Good Food Access Program Advisory
Committee consists of the following members, appointed by the commissioner of
agriculture, unless otherwise specified:
(1) the commissioners of health,
employment and economic development, and human services, or their respective
designees;
(2) one person representing the grocery
industry;
(3) two people representing economic or
community development, one rural member and one urban or suburban member;
(4) two people representing political
subdivisions of the state;
(5) one person designated by the
Council for Minnesotans of African Heritage;
(6) one person designated by the
Minnesota Indian Affairs Council;
(7) one person designated by the
Council on Asian Pacific Minnesotans;
(8) one person designated by the
Chicano Latino Affairs Council;
(9) one person designated by the
Minnesota Farmers Union;
(10) one person representing public
health experts;
(11) one person representing
philanthropic foundations;
(12) one person representing economic
or community development financial institutions;
(13) one person representing the
University of Minnesota Regional Sustainable Development Partnerships;
(14) two people representing
organizations engaged in addressing food security, one representative from a
statewide hunger relief organization and one from a community-based
organization;
(15) one person representing immigrant
farmer-led organizations;
(16) one person representing small
business technical assistance with experience in food retail; and
(17) up to four additional members with
economic development, health equity, financial, or other relevant expertise.
At least half of the members must
reside in or their organizations must serve rural Minnesota. The commissioner may remove members and fill
vacancies as provided in section 15.059, subdivision 4.
Subd. 3. Duties. The advisory committee must advise the commissioner of agriculture on managing the program, establishing program criteria, establishing project eligibility guidelines, establishing application processes and additional selection criteria, establishing annual monitoring and accountability mechanisms, facilitating leveraging of additional public and private investments, and promoting the program statewide.
Subd. 4. Meetings. The commissioner must convene the
advisory committee at least two times per year to achieve the committee's
duties.
Subd. 5. Administrative
support. The commissioner of
agriculture must provide staffing, meeting space, and administrative services
for the advisory committee.
Subd. 6. Chair. The commissioner of agriculture or the
commissioner's designee shall serve as chair of the committee.
Subd. 7. Compensation. The public members of the advisory
committee serve without compensation or payment of expenses.
Subd. 8. Expiration. The advisory committee does not
expire.
Sec. 6. Minnesota Statutes 2014, section 17.117, subdivision 4, is amended to read:
Subd. 4. Definitions. (a) For the purposes of this section, the terms defined in this subdivision have the meanings given them.
(b) "Agricultural and environmental revolving accounts" means accounts in the agricultural fund, controlled by the commissioner, which hold funds available to the program.
(c) "Agriculture supply business" means a person, partnership, joint venture, corporation, limited liability company, association, firm, public service company, or cooperative that provides materials, equipment, or services to farmers or agriculture-related enterprises.
(d) "Allocation" means the funds awarded to an applicant for implementation of best management practices through a competitive or noncompetitive application process.
(e) "Applicant" means a local unit of government eligible to participate in this program that requests an allocation of funds as provided in subdivision 6b.
(f) "Best management practices"
has the meaning given in sections 103F.711, subdivision 3, and 103H.151,
subdivision 2, or. Best
management practices also means other practices, techniques, and measures
that have been demonstrated to the satisfaction of the commissioner: (1) to prevent or reduce adverse
environmental impacts by using the most effective and practicable means of
achieving environmental goals; or (2) to achieve drinking water quality
standards under chapter 103H or under Code of Federal Regulations, title 40, parts
141 and 143, as amended.
(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner applying for a low-interest loan.
(h) "Commissioner" means the commissioner of agriculture, including when the commissioner is acting in the capacity of chair of the Rural Finance Authority, or the designee of the commissioner.
(i) "Committed project" means an eligible project scheduled to be implemented at a future date:
(1) that has been approved and certified by the local government unit; and
(2) for which a local lender has obligated itself to offer a loan.
(j) "Comprehensive water management plan" means a state approved and locally adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or 103D.405.
(k) "Cost incurred" means expenses for implementation of a project accrued because the borrower has agreed to purchase equipment or is obligated to pay for services or materials already provided as a result of implementing an approved eligible project.
(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability company, association, firm, public service company, or cooperative that regularly participates in physical labor or operations management of farming and files a Schedule F as part of filing United States Internal Revenue Service Form 1040 or indicates farming as the primary business activity under Schedule C, K, or S, or any other applicable report to the United States Internal Revenue Service.
(m) "Lender agreement" means an agreement entered into between the commissioner and a local lender which contains terms and conditions of participation in the program.
(n) "Local government unit" means a county, soil and water conservation district, or an organization formed for the joint exercise of powers under section 471.59 with the authority to participate in the program.
(o) "Local lender" means a local government unit as defined in paragraph (n), a state or federally chartered bank, a savings association, a state or federal credit union, Agribank and its affiliated organizations, or a nonprofit economic development organization or other financial lending institution approved by the commissioner.
(p) "Local revolving loan account" means the account held by a local government unit and a local lender into which principal repayments from borrowers are deposited and new loans are issued in accordance with the requirements of the program and lender agreements.
(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.
(r) "Program" means the agriculture best management practices loan program in this section.
(s) "Project" means one or more components or activities located within Minnesota that are required by the local government unit to be implemented for satisfactory completion of an eligible best management practice.
(t) "Rural landowner" means the owner of record of Minnesota real estate located in an area determined by the local government unit to be rural after consideration of local land use patterns, zoning regulations, jurisdictional boundaries, local community definitions, historical uses, and other pertinent local factors.
(u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph (d), except as expressly limited in this section.
Sec. 7. Minnesota Statutes 2014, section 17.117, subdivision 11a, is amended to read:
Subd. 11a. Eligible
projects. (a) All projects
that remediate or mitigate adverse environmental impacts are eligible if:
(1) the project is eligible under the
an allocation agreement and funding sources designated by the local
government unit to finance the project; and.
(2) (b) A manure management projects
remediate project is eligible if the project remediates or mitigate
mitigates impacts from facilities with less than 1,000 animal units as
defined in Minnesota Rules, chapter 7020, and otherwise meets the
requirements of this section.
(c) A drinking water project is eligible if the project:
(1)
remediates the adverse environmental impacts or presence of contaminants in
private well water;
(2) implements best management
practices to achieve drinking water standards; and
(3) otherwise meets the requirements of
this section.
Sec. 8. [17.119]
TRACTOR ROLLOVER PROTECTION PILOT GRANT PROGRAM.
Subdivision 1. Grants;
eligibility. (a) The
commissioner must award cost-share grants to Minnesota farmers who retrofit
eligible tractors and Minnesota schools that retrofit eligible tractors with
eligible rollover protective structures.
Grants are limited to 70 percent of the farmer's or school's documented
cost to purchase, ship, and install an eligible rollover protective
structure. The commissioner must
increase the grant award amount over the 70 percent grant limitation
requirement if necessary to limit a farmer's or school's cost per tractor to no
more than $500.
(b) A rollover protective structure is
eligible if it meets or exceeds SAE International standard J2194.
(c) A tractor is eligible if the
tractor was built before 1987.
Subd. 2. Promotion;
administration. The
commissioner may spend up to 20 percent of total program dollars each fiscal
year to promote and administer the program to Minnesota farmers and schools.
Subd. 3. Nonstate
sources; appropriation. The
commissioner must accept contributions from nonstate sources to supplement
state appropriations for this program.
Contributions received under this subdivision are appropriated to the
commissioner for purposes of this section.
Subd. 4. Expiration. This section expires on June 30, 2019.
Sec. 9. Minnesota Statutes 2014, section 18B.26, subdivision 3, is amended to read:
Subd. 3. Registration application and gross sales fee. (a) For an agricultural pesticide, a registrant shall pay an annual registration application fee for each agricultural pesticide of $350. The fee is due by December 31 preceding the year for which the application for registration is made. The fee is nonrefundable.
(b) For a nonagricultural pesticide, a
registrant shall pay a minimum annual registration application fee for each
nonagricultural pesticide of $350. The
fee is due by December 31 preceding the year for which the application for
registration is made. The fee is
nonrefundable. The If the
registrant's annual gross sales of the nonagricultural pesticide exceeded
$70,000 in the previous calendar year, the registrant of a
nonagricultural pesticide shall pay, in addition to the $350 minimum fee, a
fee of equal to 0.5 percent of that portion of the annual
gross sales of the over $70,000.
For purposes of this subdivision, gross sales includes both
nonagricultural pesticide sold in the state and the annual gross
sales of the nonagricultural pesticide sold into the state for use in this
state. No additional fee is
required if the fee due amount based on percent of annual gross sales of a
nonagricultural pesticide is less than $10.
The registrant shall secure sufficient sales information of
nonagricultural pesticides distributed into this state from distributors and
dealers, regardless of distributor location, to make a determination. Sales of nonagricultural pesticides in this
state and sales of nonagricultural pesticides for use in this state by
out-of-state distributors are not exempt and must be included in the
registrant's annual report, as required under paragraph (g), and fees shall be
paid by the registrant based upon those reported sales. Sales of nonagricultural pesticides in the
state for use outside of the state are exempt from the gross sales fee in this
paragraph if the registrant properly documents the sale location and
distributors. A registrant paying more
than the minimum fee shall pay the balance due by March 1 based on the gross
sales of the nonagricultural pesticide by the registrant for the preceding
calendar year. A pesticide determined by
the commissioner to be a sanitizer or disinfectant is exempt from the gross
sales fee.
(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the agricultural pesticide in the state and the annual gross sales of the agricultural pesticide sold into the state for use in this state.
(d) In those cases where a registrant first sells an agricultural pesticide in or into the state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer license and is responsible for payment of the annual gross sales fee under paragraph (c), record keeping under paragraph (i), and all other requirements of section 18B.316.
(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013, by the commissioner on the registration and sale of pesticides is less than $6,600,000, the commissioner, after a public hearing, may increase proportionally the pesticide sales and product registration fees under this chapter by the amount necessary to ensure this level of revenue is achieved. The authority under this section expires on June 30, 2014. The commissioner shall report any fee increases under this paragraph 60 days before the fee change is effective to the senate and house of representatives agriculture budget divisions.
(f) An additional fee of 50 percent of the registration application fee must be paid by the applicant for each pesticide to be registered if the application is a renewal application that is submitted after December 31.
(g) A registrant must annually report to the commissioner the amount, type and annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state. The report shall be filed by March 1 for the previous year's registration. The commissioner shall specify the form of the report or approve the method for submittal of the report and may require additional information deemed necessary to determine the amount and type of nonagricultural pesticide annually distributed in the state. The information required shall include the brand name, United States Environmental Protection Agency registration number, and amount of each nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but the information collected, if made public, shall be reported in a manner which does not identify a specific brand name in the report.
(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually report to the commissioner the amount, type, and annual gross sales of each registered agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the state for use in the state. The report must be filed by January 31 for the previous year's sales. The commissioner shall specify the form, contents, and approved electronic method for submittal of the report and may require additional information deemed necessary to determine the amount and type of agricultural pesticide annually distributed within the state or into the state. The information required must include the brand name, United States Environmental Protection Agency registration number, and amount of each agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
(i) A person who registers a pesticide with the commissioner under paragraph (b), or a registrant under paragraph (d), shall keep accurate records for five years detailing all distribution or sales transactions into the state or in the state and subject to a fee and surcharge under this section.
(j) The records are subject to inspection, copying, and audit by the commissioner and must clearly demonstrate proof of payment of all applicable fees and surcharges for each registered pesticide product sold for use in this state. A person who is located outside of this state must maintain and make available records required by this subdivision in this state or pay all costs incurred by the commissioner in the inspecting, copying, or auditing of the records.
(k) The commissioner may adopt by rule regulations that require persons subject to audit under this section to provide information determined by the commissioner to be necessary to enable the commissioner to perform the audit.
(l) A registrant who is required to pay more than the minimum fee for any pesticide under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee paid after March 1 in the year for which the license is to be issued.
Sec. 10. Minnesota Statutes 2014, section 41A.12, subdivision 2, is amended to read:
Subd. 2. Activities
authorized. For the purposes of this
program, the commissioner may issue grants, loans, or other forms of financial
assistance. Eligible activities include,
but are not limited to, grants to livestock producers under the livestock
investment grant program under section 17.118, bioenergy awards made by the
NextGen Energy Board under section 41A.105, cost-share grants for the
installation of biofuel blender pumps, and financial assistance to support
other rural economic infrastructure activities.
Sec. 11. Minnesota Statutes 2015 Supplement, section 41A.14, is amended to read:
41A.14
AGRICULTURE RESEARCH, EDUCATION, EXTENSION, AND TECHNOLOGY TRANSFER GRANT
PROGRAM.
Subdivision 1. Duties;
grants. The agriculture research,
education, extension, and technology transfer grant program is created. The purpose of the grant program is to
provide investments that will most efficiently achieve long-term agricultural
productivity increases through improved infrastructure, vision, and
accountability. The scope and intent of
the grants, to the extent possible, shall provide for a long-term base
funding that allows the research grantee to continue the functions of
the research, education, and extension, and technology transfer
efforts to a practical conclusion.
Priority for grants shall be given to human infrastructure. The commissioner shall provide grants for:
(1) agricultural research, extension,
and technology transfer needs and recipients including agricultural research
and extension at the University of Minnesota, research and outreach
centers, the College of Food, Agricultural and Natural Resource Sciences, the
Minnesota Agricultural Experiment Station, University of Minnesota Extension
Service, the University of Minnesota Veterinary School, the Veterinary
Diagnostic Laboratory, the Stakman‑Borlaug Center, and the Minnesota
Agriculture Fertilizer Research and Education Council; for use by any of
the following:
(i) the College of Food, Agricultural
and Natural Resource Sciences;
(ii) the Minnesota Agricultural
Experiment Station;
(iii) the University of Minnesota Extension
Service;
(iv) the University of Minnesota
Veterinary School;
(v) the Veterinary Diagnostic
Laboratory; or
(vi) the Stakman-Borlaug Center;
(2) agriculture rapid response for plant and animal diseases and pests; and
(3) agricultural education including but not limited to the Minnesota Agriculture Education Leadership Council, farm business management, mentoring programs, graduate debt forgiveness, and high school programs.
Subd. 2. Advisory panel. (a) In awarding grants under this section, the commissioner and a representative of the College of Food, Agricultural and Natural Resource Sciences at the University of Minnesota must consult with an advisory panel consisting of the following stakeholders:
(1) a representative of the College of
Food, Agricultural and Natural Resource Sciences at the University of
Minnesota;
(2) (1) a representative of
the Minnesota State Colleges and Universities system;
(3) (2) a representative of
the Minnesota Farm Bureau;
(4) (3) a representative of
the Minnesota Farmers Union;
(5) (4) a person
representing agriculture industry statewide;
(6) (5) a representative of
each of the state commodity councils organized under section 17.54 and the
Minnesota Pork Board;
(7) (6) a person
representing an association of primary manufacturers of forest products;
(8) (7) a person
representing organic or sustainable agriculture; and
(9) (8) a person
representing statewide environment and natural resource conservation
organizations.
(b) Members under paragraph (a),
clauses (1) to (3) and (5), shall be chosen by their respective organizations.
Subd. 3. Account. An agriculture research, education, extension, and technology transfer account is created in the agricultural fund in the state treasury. The account consists of money received in the form of gifts, grants, reimbursement, or appropriations from any source for any of the purposes provided in subdivision 1, and any interest or earnings of the account. Money in the account is appropriated to the commissioner of agriculture for the purposes under subdivision 1.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a subdivision to read:
Subd. 2a. Biobased
content. "Biobased
content" means a chemical, polymer, monomer, or plastic that is not sold
primarily for use as food, feed, or fuel and that has a biobased percentage of
at least 51 percent as determined by testing representative samples using
American Society for Testing and Materials specification D6866.
Sec. 13. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a subdivision to read:
Subd. 2b. Biobased
formulated product. "Biobased
formulated product" means a product that is not sold primarily for use as
food, feed, or fuel and that has a biobased content percentage of at least ten
percent as determined by testing representative samples using American Society
for Testing and Materials specification D6866, or that contains a biobased
chemical constituent that displaces a known hazardous or toxic constituent
previously used in the product formulation.
Sec. 14. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a subdivision to read:
Subd. 2c. Biobutanol. "Biobutanol" means
fermentation isobutyl alcohol that is derived from agricultural products,
including potatoes, cereal grains, cheese whey, and sugar beets; forest
products; or other renewable resources, including residue and waste generated
from the production, processing, and marketing of agricultural products, forest
products, and other renewable resources.
Sec. 15. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a subdivision to read:
Subd. 2d. Biobutanol
facility. "Biobutanol
facility" means a facility at which biobutanol is produced.
Sec. 16. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a subdivision to read:
Subd. 9a. Quarterly. "Quarterly" means any of the
following three-month intervals in a calendar year: January through March, April through June,
July through September, or October through December.
Sec. 17. Minnesota Statutes 2015 Supplement, section 41A.15, subdivision 10, is amended to read:
Subd. 10. Renewable
chemical. "Renewable
chemical" means a chemical with biobased content as defined in section
41A.105, subdivision 1a.
Sec. 18. Minnesota Statutes 2015 Supplement, section 41A.16, subdivision 1, is amended to read:
Subdivision 1. Eligibility. (a) A facility eligible for payment under
this section must source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from
the state border, raw materials may be sourced from within a 100-mile
radius. Raw materials must be from
agricultural or forestry sources or from solid waste. The facility must be located in Minnesota,
must begin production at a specific location by June 30, 2025, and must not
begin operating above 95,000 23,750 MMbtu of annual quarterly
biofuel production before July 1, 2015.
Eligible facilities include existing companies and facilities that are
adding advanced biofuel production capacity, or retrofitting existing capacity,
as well as new companies and facilities.
Production of conventional corn ethanol and conventional biodiesel is
not eligible. Eligible advanced biofuel
facilities must produce at least 95,000 23,750 MMbtu a year
of biofuel quarterly.
(b) No payments shall be made for advanced biofuel production that occurs after June 30, 2035, for those eligible biofuel producers under paragraph (a).
(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility for payments under this section to an advanced biofuel facility at a different location.
(d) A producer that ceases production for any reason is ineligible to receive payments under this section until the producer resumes production.
(e) Renewable chemical production for which payment has been received under section 41A.17, and biomass thermal production for which payment has been received under section 41A.18, are not eligible for payment under this section.
(f) Biobutanol is eligible under this
section.
Sec. 19. Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 1, is amended to read:
Subdivision 1. Eligibility. (a) A facility eligible for payment under
this program must source at least 80 percent biobased content, as defined in
section 41A.105, subdivision 1a, clause (1), from Minnesota. If a facility is sited 50 miles or less from the
state border, biobased content must be sourced from within a 100-mile
radius. Biobased content must be from
agricultural or forestry sources or from solid waste. The facility must be located in Minnesota,
must begin production at a specific location by June 30, 2025, and must not
begin production of 3,000,000 750,000 pounds of chemicals annually
quarterly before January 1, 2015.
Eligible facilities include existing companies and facilities that are
adding production capacity, or retrofitting existing capacity, as well as new
companies and facilities. Eligible
renewable chemical facilities must produce at least 3,000,000 750,000
pounds per year of renewable chemicals quarterly. Renewable chemicals produced through
processes that are fully commercial before January 1, 2000, are not eligible.
(b) No payments shall be made for renewable chemical production that occurs after June 30, 2035, for those eligible renewable chemical producers under paragraph (a).
(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility for payments under this section to a renewable chemical facility at a different location.
(d) A producer that ceases production for any reason is ineligible to receive payments under this section until the producer resumes production.
(e) Advanced biofuel production for which payment has been received under section 41A.16, and biomass thermal production for which payment has been received under section 41A.18, are not eligible for payment under this section.
Sec. 20. Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 2, is amended to read:
Subd. 2. Payment amounts; bonus; limits. (a) The commissioner shall make payments to eligible producers of renewable chemicals located in the state. The amount of the payment for each producer's annual production is $0.03 per pound of sugar-derived renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of cellulosic-derived renewable chemical produced at a specific location for ten years after the start of production.
(b) An
eligible facility producing renewable chemicals using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each MMbtu
pound produced from agricultural biomass that is derived from perennial
crop or cover crop biomass.
(c) Total payments under this section to an eligible renewable chemical producer in a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable chemical production. Total payments under this section to all eligible renewable chemical producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of renewable chemical production. The commissioner shall award payments on a first-come, first-served basis within the limits of available funding.
(d) For purposes of this section, an entity that holds a controlling interest in more than one renewable chemical production facility is considered a single eligible producer.
Sec. 21. Minnesota Statutes 2015 Supplement, section 41A.18, subdivision 1, is amended to read:
Subdivision 1. Eligibility. (a) A facility eligible for payment under this section must source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from the state border, raw materials should be sourced from within a 100-mile radius. Raw materials must be from agricultural or forestry sources. The facility
must
be located in Minnesota, must have begun production at a specific location by
June 30, 2025, and must not begin before July 1, 2015. Eligible facilities include existing
companies and facilities that are adding production capacity, or retrofitting
existing capacity, as well as new companies and facilities. Eligible biomass thermal production
facilities must produce at least 1,000 250 MMbtu per year of
biomass thermal quarterly.
(b) No payments shall be made for biomass thermal production that occurs after June 30, 2035, for those eligible biomass thermal producers under paragraph (a).
(c) An eligible producer of biomass thermal production shall not transfer the producer's eligibility for payments under this section to a biomass thermal production facility at a different location.
(d) A producer that ceases production for any reason is ineligible to receive payments under this section until the producer resumes production.
(e) Biofuel production for which payment has been received under section 41A.16, and renewable chemical production for which payment has been received under section 41A.17, are not eligible for payment under this section.
Sec. 22. [41A.20]
SIDING PRODUCTION INCENTIVE.
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 agriculture.
(c) "Forest resources" means
raw wood logs and material primarily made up of cellulose, hemicellulose, or
lignin, or a combination of those ingredients.
Subd. 2. Eligibility. (a) A facility eligible for payment
under this section must source at least 80 percent raw materials from
Minnesota. If a facility is sited 50
miles or less from the state border, raw materials may be sourced from within a
100-mile radius. Raw materials must be
from forest resources. The facility must
be located in Minnesota, must begin
production at a specific location by June 30, 2025, and must not begin
operating before July 1, 2017.
Eligible facilities include existing companies and facilities that are
adding siding production capacity, or retrofitting existing capacity, as well
as new companies and facilities.
Eligible siding production facilities must produce at least 200,000,000
siding square feet on a 3/8 inch nominal basis of siding each year.
(b) No payments shall be made for
siding production that occurs after June 30, 2035, for those eligible producers
under paragraph (a).
(c) An eligible producer of siding
shall not transfer the producer's eligibility for payments under this section
to a facility at a different location.
(d) A producer that ceases production
for any reason is ineligible to receive payments under this section until the
producer resumes production.
Subd. 3. Payment
amounts; limits. (a) The
commissioner shall make payments to eligible producers of siding. The amount of the payment for each eligible
producer's annual production is $7.50 per 1,000 siding square feet on a 3/8
inch nominal basis of siding produced at a specific location for ten years
after the start of production.
(b)
Total payments under this section to an eligible siding producer in a fiscal
year may not exceed the amount necessary for 400,000,000 siding square feet on
a 3/8 inch nominal basis of siding produced.
Total payments under this section to all eligible siding producers in a
fiscal year may not exceed the amount necessary for 400,000,000 siding square
feet on a 3/8 inch nominal basis of siding produced. The commissioner shall award payments on a
first-come, first-served basis within the limits of available funding.
(c) For purposes of this section, an
entity that holds a controlling interest in more than one siding facility is
considered a single eligible producer.
Subd. 4. Forest
resources requirements. Forest
resources that come from land parcels greater than 160 acres must be certified
by the Forest Stewardship Council, Sustainable Forestry Initiative, or American
Tree Farm System. Uncertified land from
parcels of 160 acres or less and federal land must be harvested by a logger who
has completed training from the Minnesota logger education program or the equivalent,
and have a forest stewardship plan.
Subd. 5. Claims. (a) By the last day of October,
January, April, and July, each eligible siding producer shall file a claim for
payment for siding production during the preceding three calendar months. An eligible siding producer that files a
claim under this subdivision shall include a statement of the eligible
producer's total board feet of siding produced during the quarter covered by
the claim. For each claim and statement
of total board feet of siding filed under this subdivision, the board feet of
siding produced must be examined by a certified public accounting firm with a
valid permit to practice under chapter 326A, in accordance with Statements on
Standards for Attestation Engagements established by the American Institute of
Certified Public Accountants.
(b) The commissioner must issue
payments by November 15, February 15, May 15, and August 15. A separate payment must be made for each
claim filed.
Subd. 6. Appropriation. A sum sufficient to make the payments
required by this section, not to exceed $3,000,000 in a fiscal year, is
annually appropriated from the general fund to the commissioner.
Sec. 23. Minnesota Statutes 2015 Supplement, section 116D.04, subdivision 2a, is amended to read:
Subd. 2a. When prepared. Where there is potential for significant environmental effects resulting from any major governmental action, the action shall be preceded by a detailed environmental impact statement prepared by the responsible governmental unit. The environmental impact statement shall be an analytical rather than an encyclopedic document which describes the proposed action in detail, analyzes its significant environmental impacts, discusses appropriate alternatives to the proposed action and their impacts, and explores methods by which adverse environmental impacts of an action could be mitigated. The environmental impact statement shall also analyze those economic, employment, and sociological effects that cannot be avoided should the action be implemented. To ensure its use in the decision-making process, the environmental impact statement shall be prepared as early as practical in the formulation of an action.
(a) The board shall by rule establish
categories of actions for which environmental impact statements and for which
environmental assessment worksheets shall be prepared as well as categories of
actions for which no environmental review is required under this section. A mandatory environmental assessment
worksheet shall not be required for the expansion of an ethanol plant, as
defined in section 41A.09, subdivision 2a, paragraph (b), or the conversion of
an ethanol plant to a biobutanol facility or the expansion of a biobutanol
facility as defined in section 41A.105 41A.15, subdivision 1a
2d, based on the capacity of the expanded or converted facility to
produce alcohol fuel, but must be required if the ethanol plant or biobutanol
facility meets or exceeds thresholds of other categories of actions for which
environmental assessment worksheets must be prepared. The responsible governmental unit for an
ethanol plant or biobutanol facility project for which an environmental
assessment worksheet is prepared shall be the state agency with the greatest responsibility
for supervising or approving the project as a whole.
A
mandatory environmental impact statement shall not be required for a facility
or plant located outside the seven-county metropolitan area that produces less
than 125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually,
or produces less than 400,000 tons of chemicals annually, if the facility or
plant is: an ethanol plant, as defined
in section 41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as
defined in section 41A.105 41A.15, subdivision 1a, clause (1)
2d; or a cellulosic biofuel facility.
A facility or plant that only uses a cellulosic feedstock to produce
chemical products for use by another facility as a feedstock shall not be
considered a fuel conversion facility as used in rules adopted under this
chapter.
(b) The responsible governmental unit shall promptly publish notice of the completion of an environmental assessment worksheet by publishing the notice in at least one newspaper of general circulation in the geographic area where the project is proposed, by posting the notice on a Web site that has been designated as the official publication site for publication of proceedings, public notices, and summaries of a political subdivision in which the project is proposed, or in any other manner determined by the board and shall provide copies of the environmental assessment worksheet to the board and its member agencies. Comments on the need for an environmental impact statement may be submitted to the responsible governmental unit during a 30-day period following publication of the notice that an environmental assessment worksheet has been completed. The responsible governmental unit's decision on the need for an environmental impact statement shall be based on the environmental assessment worksheet and the comments received during the comment period, and shall be made within 15 days after the close of the comment period. The board's chair may extend the 15-day period by not more than 15 additional days upon the request of the responsible governmental unit.
(c) An environmental assessment worksheet shall also be prepared for a proposed action whenever material evidence accompanying a petition by not less than 100 individuals who reside or own property in the state, submitted before the proposed project has received final approval by the appropriate governmental units, demonstrates that, because of the nature or location of a proposed action, there may be potential for significant environmental effects. Petitions requesting the preparation of an environmental assessment worksheet shall be submitted to the board. The chair of the board shall determine the appropriate responsible governmental unit and forward the petition to it. A decision on the need for an environmental assessment worksheet shall be made by the responsible governmental unit within 15 days after the petition is received by the responsible governmental unit. The board's chair may extend the 15-day period by not more than 15 additional days upon request of the responsible governmental unit.
(d) Except in an environmentally sensitive location where Minnesota Rules, part 4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental review under this chapter and rules of the board, if:
(1) the proposed action is:
(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or
(ii) an expansion of an existing animal feedlot facility with a total cumulative capacity of less than 1,000 animal units;
(2) the application for the animal feedlot facility includes a written commitment by the proposer to design, construct, and operate the facility in full compliance with Pollution Control Agency feedlot rules; and
(3) the county board holds a public meeting for citizen input at least ten business days prior to the Pollution Control Agency or county issuing a feedlot permit for the animal feedlot facility unless another public meeting for citizen input has been held with regard to the feedlot facility to be permitted. The exemption in this paragraph is in addition to other exemptions provided under other law and rules of the board.
(e) The board may, prior to final approval of a proposed project, require preparation of an environmental assessment worksheet by a responsible governmental unit selected by the board for any action where environmental review under this section has not been specifically provided for by rule or otherwise initiated.
(f) An early and open process shall be utilized to limit the scope of the environmental impact statement to a discussion of those impacts, which, because of the nature or location of the project, have the potential for significant environmental effects. The same process shall be utilized to determine the form, content and level of detail of the statement as well as the alternatives which are appropriate for consideration in the statement. In addition, the permits which will be required for the proposed action shall be identified during the scoping process. Further, the process shall identify those permits for which information will be developed concurrently with the environmental impact statement. The board shall provide in its rules for the expeditious completion of the scoping process. The determinations reached in the process shall be incorporated into the order requiring the preparation of an environmental impact statement.
(g) The responsible governmental unit shall, to the extent practicable, avoid duplication and ensure coordination between state and federal environmental review and between environmental review and environmental permitting. Whenever practical, information needed by a governmental unit for making final decisions on permits or other actions required for a proposed project shall be developed in conjunction with the preparation of an environmental impact statement. When an environmental impact statement is prepared for a project requiring multiple permits for which two or more agencies' decision processes include either mandatory or discretionary hearings before a hearing officer prior to the agencies' decision on the permit, the agencies may, notwithstanding any law or rule to the contrary, conduct the hearings in a single consolidated hearing process if requested by the proposer. All agencies having jurisdiction over a permit that is included in the consolidated hearing shall participate. The responsible governmental unit shall establish appropriate procedures for the consolidated hearing process, including procedures to ensure that the consolidated hearing process is consistent with the applicable requirements for each permit regarding the rights and duties of parties to the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing.
(h) An environmental impact statement shall be prepared and its adequacy determined within 280 days after notice of its preparation unless the time is extended by consent of the parties or by the governor for good cause. The responsible governmental unit shall determine the adequacy of an environmental impact statement, unless within 60 days after notice is published that an environmental impact statement will be prepared, the board chooses to determine the adequacy of an environmental impact statement. If an environmental impact statement is found to be inadequate, the responsible governmental unit shall have 60 days to prepare an adequate environmental impact statement.
(i) The proposer of a specific action may include in the information submitted to the responsible governmental unit a preliminary draft environmental impact statement under this section on that action for review, modification, and determination of completeness and adequacy by the responsible governmental unit. A preliminary draft environmental impact statement prepared by the project proposer and submitted to the responsible governmental unit shall identify or include as an appendix all studies and other sources of information used to substantiate the analysis contained in the preliminary draft environmental impact statement. The responsible governmental unit shall require additional studies, if needed, and obtain from the project proposer all additional studies and information necessary for the responsible governmental unit to perform its responsibility to review, modify, and determine the completeness and adequacy of the environmental impact statement.
Sec. 24. Minnesota Statutes 2015 Supplement, section 583.215, is amended to read:
583.215
EXPIRATION.
Sections 336.9-601, subsections (h) and
(i); 550.365; 559.209; 582.039; and 583.20 to 583.32, expire June 30, 2016
2018.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 25. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 2, is amended to read:
|
Subd. 2. Protection
Services |
|
16,452,000 |
|
16,402,000 |
|
Appropriations by Fund |
||
|
|
2016
|
2017
|
|
General |
15,874,000 |
15,824,000 |
|
Agricultural |
190,000 |
190,000 |
|
Remediation |
388,000 |
388,000 |
$25,000 the first year and $25,000 the second year are to develop and maintain cottage food license exemption outreach and training materials.
$75,000 the first year is for the commissioner, in consultation with the Northeast Regional Corrections Center and the United Food and Commercial Workers, to study and provide recommendations for upgrading the existing processing facility on the campus of the Northeast Regional Corrections Center into a USDA-certified food processing facility. The commissioner shall report these recommendations to the chairs of the house of representatives and senate committees with jurisdiction over agriculture finance by March 15, 2016.
$75,000 the second year is for a
coordinator for to coordinate the correctional facility vocational
training pilot program and to assist entities that have explored the
feasibility of establishing a USDA‑certified or state "equal
to" food processing facility within 30 miles of the Northeast Regional
Corrections Center.
$388,000 the first year and $388,000 the second year are from the remediation fund for administrative funding for the voluntary cleanup program.
$225,000 the first year and $175,000 the second year are for compensation for destroyed or crippled animals under Minnesota Statutes, section 3.737. This appropriation may be spent to compensate for animals that were destroyed or crippled during fiscal years 2014 and 2015. If the amount in the first year is insufficient, the amount in the second year is available in the first year.
$125,000 the first year and $125,000 the second year are for compensation for crop damage under Minnesota Statutes, section 3.7371. If the amount in the first year is insufficient, the amount in the second year is available in the first year.
If the commissioner determines that claims made under Minnesota Statutes, section 3.737 or 3.7371, are unusually high, amounts appropriated for either program may be transferred to the appropriation for the other program.
$70,000 the first year and $70,000 the second year are for additional cannery inspections.
$100,000 the first year and $100,000 the second year are for increased oversight of delegated local health boards.
$100,000 the first year and $100,000 the second year are to decrease the turnaround time for retail food handler plan reviews.
$1,024,000 the first year and $1,024,000 the second year are to streamline the retail food safety regulatory and licensing experience for regulated businesses and to decrease the inspection delinquency rate.
$1,350,000 the first year and $1,350,000 the second year are for additional inspections of food manufacturers and wholesalers.
$150,000 the first year and $150,000 the second year are for additional funding for dairy inspection services.
$150,000 the first year and $150,000 the second year are for additional funding for laboratory services operations.
$250,000 the first year and $250,000 the second year are for additional meat inspection services, including inspections provided under the correctional facility vocational training pilot program.
Notwithstanding Minnesota Statutes, section 18B.05, $90,000 the first year and $90,000 the second year are from the pesticide regulatory account in the agricultural fund for an increase in the operating budget for the Laboratory Services Division.
$100,000 the first year and $100,000 the second year are from the pesticide regulatory account in the agricultural fund to update and modify applicator education and training materials.
Sec. 26. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, is amended to read:
|
Subd. 4. Agriculture, Bioenergy, and Bioproduct Advancement |
14,993,000 |
|
19,010,000 |
$4,483,000 the first year and $8,500,000 the second year are for transfer to the agriculture research, education, extension, and technology transfer account under Minnesota Statutes, section
41A.14,
subdivision 3. The transfer in this
paragraph includes money for plant breeders at the University of Minnesota for
wild rice, potatoes, and grapes. Of
these amounts, at least $600,000 each year is for agriculture rapid response
the Minnesota Agricultural Experiment Station's Agriculture Rapid Response
Fund under Minnesota Statutes, section 41A.14, subdivision 1, clause
(2). Of the amount appropriated in this
paragraph, $1,000,000 each year is for transfer to the Board of Regents of the
University of Minnesota for research to determine (1) what is causing avian
influenza, (2) why some fowl are more susceptible, and (3) prevention measures
that can be taken. Of the amount
appropriated in this paragraph, $2,000,000 each year is for grants to the
Minnesota Agriculture Education Leadership Council to enhance agricultural
education with priority given to Farm Business Management challenge
grants. The commissioner shall
transfer the remaining grant funds in this appropriation each year to the Board
of Regents of the University of Minnesota for purposes of Minnesota Statutes,
section 41A.14.
To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14, subdivision 1, clauses (1) and (2),
must supplement and not supplant existing sources and levels of funding. The commissioner may use up to 4.5 percent of
this appropriation for costs incurred to administer the program. Any unencumbered balance does not cancel
at the end of the first year and is available for the second year.
$10,235,000 the first year and $10,235,000 the second year are for the agricultural growth, research, and innovation program in Minnesota Statutes, section 41A.12. No later than February 1, 2016, and February 1, 2017, the commissioner must report to the legislative committees with jurisdiction over agriculture policy and finance regarding the commissioner's accomplishments and anticipated accomplishments in the following areas: facilitating the start-up, modernization, or expansion of livestock operations including beginning and transitioning livestock operations; developing new markets for Minnesota farmers by providing more fruits, vegetables, meat, grain, and dairy for Minnesota school children; assisting value-added agricultural businesses to begin or expand, access new markets, or diversify products; developing urban agriculture; facilitating the start-up, modernization, or expansion of other beginning and transitioning farms including loans under Minnesota Statutes, section 41B.056; sustainable agriculture on farm research and demonstration; development or expansion of food hubs and other alternative community-based food distribution systems; and research on bioenergy, biobased content, or biobased formulated products and other renewable energy development. The commissioner may use up to 4.5 percent of this appropriation for costs incurred to administer the program. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. Notwithstanding Minnesota Statutes, section 16A.28, the appropriations
encumbered under contract on or before June 30, 2017, for agricultural growth, research, and innovation grants are available until June 30, 2019.
The commissioner may use funds appropriated for the agricultural growth, research, and innovation program as provided in this paragraph. The commissioner may award grants to owners of Minnesota facilities producing bioenergy, biobased content, or a biobased formulated product; to organizations that provide for on‑station, on-farm field scale research and outreach to develop and test the agronomic and economic requirements of diverse strands of prairie plants and other perennials for bioenergy systems; or to certain nongovernmental entities. For the purposes of this paragraph, "bioenergy" includes transportation fuels derived from cellulosic material, as well as the generation of energy for commercial heat, industrial process heat, or electrical power from cellulosic materials via gasification or other processes. Grants are limited to 50 percent of the cost of research, technical assistance, or equipment related to bioenergy, biobased content, or biobased formulated product production or $500,000, whichever is less. Grants to nongovernmental entities for the development of business plans and structures related to community ownership of eligible bioenergy facilities together may not exceed $150,000. The commissioner shall make a good-faith effort to select projects that have merit and, when taken together, represent a variety of bioenergy technologies, biomass feedstocks, and geographic regions of the state. Projects must have a qualified engineer provide certification on the technology and fuel source. Grantees must provide reports at the request of the commissioner.
Of the amount appropriated for the agricultural growth, research, and innovation program in this subdivision, $1,000,000 the first year and $1,000,000 the second year are for distribution in equal amounts to each of the state's county fairs to preserve and promote Minnesota agriculture.
Of the amount appropriated for the agricultural growth, research, and innovation program in this subdivision, $500,000 in fiscal year 2016 and $1,500,000 in fiscal year 2017 are for incentive payments under Minnesota Statutes, sections 41A.16, 41A.17, and 41A.18. If the appropriation exceeds the total amount for which all producers are eligible in a fiscal year, the balance of the appropriation is available to the commissioner for the agricultural growth, research, and innovation program. Notwithstanding Minnesota Statutes, section 16A.28, the first year appropriation is available until June 30, 2017, and the second year appropriation is available until June 30, 2018. The commissioner may use up to 4.5 percent of the appropriation for administration of the incentive payment programs.
Of the amount appropriated for the agricultural growth, research, and innovation program in this subdivision, $250,000 the first year is for grants to communities to develop or expand food hubs and other alternative community-based food distribution systems. Of this amount, $50,000 is for the commissioner to consult with existing food hubs, alternative community-based food distribution systems, and University of Minnesota Extension to identify best practices for use by other Minnesota communities. No later than December 15, 2015, the commissioner must report to the legislative committees with jurisdiction over agriculture and health regarding the status of emerging alternative community-based food distribution systems in the state along with recommendations to eliminate any barriers to success. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. This is a onetime appropriation.
$250,000 the first year and $250,000 the second year are for grants that enable retail petroleum dispensers to dispense biofuels to the public in accordance with the biofuel replacement goals established under Minnesota Statutes, section 239.7911. A retail petroleum dispenser selling petroleum for use in spark ignition engines for vehicle model years after 2000 is eligible for grant money under this paragraph if the retail petroleum dispenser has no more than 15 retail petroleum dispensing sites and each site is located in Minnesota. The grant money received under this paragraph must be used for the installation of appropriate technology that uses fuel dispensing equipment appropriate for at least one fuel dispensing site to dispense gasoline that is blended with 15 percent of agriculturally derived, denatured ethanol, by volume, and appropriate technical assistance related to the installation. A grant award must not exceed 85 percent of the cost of the technical assistance and appropriate technology, including remetering of and retrofits for retail petroleum dispensers and replacement of petroleum dispenser projects. The commissioner may use up to $35,000 of this appropriation for administrative expenses. The commissioner shall cooperate with biofuel stakeholders in the implementation of the grant program. The commissioner must report to the legislative committees with jurisdiction over agriculture policy and finance by February 1 each year, detailing the number of grants awarded under this paragraph and the projected effect of the grant program on meeting the biofuel replacement goals under Minnesota Statutes, section 239.7911. These are onetime appropriations.
$25,000 the first year and $25,000 the second year are for grants to the Southern Minnesota Initiative Foundation to promote local foods through an annual event that raises public awareness of local foods and connects local food producers and processors with potential buyers.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 27. Laws 2015, First Special Session chapter 4, article 1, section 5, is amended to read:
Sec. 5. AVIAN
INFLUENZA RESPONSE ACTIVITIES; EMERGENCY PREPAREDNESS; APPROPRIATIONS AND TRANSFERS.
(a) $3,619,000
$519,000 is appropriated from the general fund in fiscal year 2016 to
the commissioner of agriculture for avian influenza emergency response
activities. The commissioner may use
money appropriated under this paragraph to purchase necessary euthanasia and
composting equipment and to reimburse costs incurred by local units of
government directly related to avian influenza emergency response activities
that are not eligible for federal reimbursement. This appropriation is available the day
following final enactment until June 30, 2017.
(b) $1,853,000 is appropriated from the
general fund in fiscal year 2016 to the Board of Animal Health for avian
influenza emergency response activities.
The Board may use money appropriated under this paragraph to purchase
necessary euthanasia and composting equipment. any animal disease
emergency response or planning activity, including but not limited to:
(1) the retention of staff trained in
disease response;
(2) costs associated with the relocation
and expansion of the Minnesota Poultry Testing Laboratory;
(3) the identification of risk factors
for disease transmission; and
(4) the implementation of strategies to
prevent or reduce the risk of disease introduction and transmission.
This appropriation is available the day following final
enactment until June 30, 2017 2019.
(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the commissioner of health for avian influenza emergency response activities. This appropriation is available the day following final enactment until June 30, 2017.
(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the commissioner of natural resources for sampling wild animals to detect and monitor the avian influenza virus. This appropriation may also be used to conduct serology sampling, in consultation with the Board of Animal Health and the University of Minnesota Pomeroy Chair in Avian Health, from birds within a control zone and outside of a control zone. This appropriation is available the day following final enactment until June 30, 2017.
(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the commissioner of public safety to operate the State Emergency Operation Center in coordination with the statewide avian influenza response activities. Appropriations under this paragraph may also be used to support a staff person at the state's agricultural incident command post in Willmar. This appropriation is available the day following final enactment until June 30, 2017.
(f) The commissioner of management and budget may transfer unexpended balances from the appropriations in this section to any state agency for operating expenses related to avian influenza emergency response activities. The commissioner of management and budget must report each transfer to the chairs and ranking minority members of the senate Committee on Finance and the house of representatives Committee on Ways and Means.
(g) In addition to the transfers required
under Laws 2015, chapter 65, article 1, section 17, no later than September 30,
2015, the commissioner of management and budget must transfer $4,400,000 from
the fiscal year 2015 closing balance in the general fund to the disaster
assistance contingency account in Minnesota Statutes, section 12.221, subdivision
6. This amount is available for avian
influenza emergency response eligible activities as provided in Laws
2015, chapter 65, article 1, section 18, as amended.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 28. GOOD
FOOD ACCESS ADVISORY COMMITTEE.
The commissioner of agriculture and
designating authorities must make their initial appointments and designations
by July 1, 2016, for the Good Food Access Advisory Committee established under
Minnesota Statutes, section 17.1018. The
commissioner of agriculture or the commissioner's designee must convene the
first meeting of the Good Food Access Advisory Committee by September 1, 2016.
Sec. 29. FARMER-LENDER
MEDIATION TASK FORCE.
The commissioner of agriculture must
convene an advisory task force to provide recommendations to the legislature
regarding the state's Farmer-Lender Mediation Act. The task force must be comprised of 14
members, including the commissioner or the commissioner's designee, one farm
advocate appointed by the commissioner who is responsible for mediating debt
between farmers and lenders, one adult farm business management instructor
appointed by the commissioner, and three farmers appointed by the commissioner,
at least one of whom is a beginning or nontraditional farmer and at least one
of whom has personal experience with the farmer-lender mediation program. The remaining membership of the task force
consists of one member appointed by each of the following entities:
(1) Minnesota Farm Bureau;
(2) Minnesota Farmers Union;
(3) Minnesota Bankers Association;
(4) Independent Community Bankers of
Minnesota;
(5) Farm Credit Services - Minnesota
State Federation;
(6) Minnesota Credit Union Network;
(7) Minnesota-South Dakota Equipment
Dealers Association; and
(8) University of Minnesota Extension.
No later than February 1, 2017, the
commissioner must report the task force's recommendations to the legislative
committees with jurisdiction over agriculture policy and finance.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. TRANSFER
REQUIRED.
Of the amount appropriated from the
general fund to the commissioner of agriculture for transfer to the rural
finance authority revolving loan account in Laws 2015, First Special Session
chapter 4, article 2, section 6, the commissioner of management and budget must
transfer $7,713,000 back to the general fund in fiscal year 2016. This is a onetime transfer.
Sec. 31. REPEALER.
Laws 2015, First Special Session chapter
4, article 2, section 81, is repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 3
ENVIRONMENT AND NATURAL RESOURCES
|
Section 1. APPROPRIATIONS. |
The sums shown in the columns marked
"Appropriations" are added to the appropriations in Laws 2015, First
Special Session chapter 4, or appropriated to the agencies and for the purposes
specified in this article. The
appropriations are from the general fund, or another named fund, and are
available for the fiscal year indicated for each purpose. The figures "2016" and
"2017" used in this article mean that the addition to the
appropriations listed under them are available for the fiscal year ending June
30, 2016, or June 30, 2017, respectively.
"The first year" is fiscal year 2016. "The second year" is fiscal year
2017. Appropriations for fiscal year
2016 are effective the day following final enactment.
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Available for the Year |
|
|
|
|
|
Ending June 30 |
|
|
|
|
|
2016 |
2017 |
|
Sec. 2. POLLUTION
CONTROL AGENCY |
|
|
|
|
|
Subdivision
1. Total Appropriation |
|
$-0- |
|
$2,620,000 |
|
Appropriations
by Fund |
||
|
|
2016
|
2017
|
|
General |
-0-
|
1,918,000
|
|
Environmental |
-0-
|
702,000
|
|
Subd. 2. Water
|
|
-0-
|
|
1,038,000
|
$437,000 the second year is from the
general fund and $486,000 the second year is from the environmental fund to
meet the increased demand for technical assistance and review of municipal
water infrastructure projects that will be generated by increased grant funding
through the Public Facilities Authority.
This is a onetime appropriation and is available until June 30, 2019.
$115,000 the second year is for the
working lands program feasibility study and program plan. This is a onetime appropriation and is
available until June 30, 2018.
|
Subd. 3. Land
|
|
-0-
|
|
432,000
|
$216,000 the second year is from the
general fund and $216,000 the second year is from the environmental fund to
manage contaminated sediment projects at multiple sites identified in the
St. Louis River remedial action plan to restore water quality in the
St. Louis River area of concern.
This amount is added to the base for fiscal years 2018, 2019, and 2020
only.
|
Subd. 4. Environmental
Assistance and Cross-Media |
|
-0-
|
|
1,150,000
|
$500,000 the second year is for SCORE
block grants to counties. This amount is
in addition to the amounts appropriated in Laws 2015, First Special Session
chapter 4, article 3, section 2, subdivision 5.
This is a onetime appropriation.
$650,000 the second year is to design
remedial actions and prepare bids for the Waste Disposal Engineering Landfill
in the city of Andover in accordance with the closed landfill program under
Minnesota Statutes, sections 115B.39 to 115B.42. This is a onetime appropriation.
|
Sec. 3. NATURAL
RESOURCES |
|
|
|
|
|
Subdivision
1. Total Appropriation |
|
$2,269,000 |
|
$14,432,000 |
|
Appropriations
by Fund |
||
|
|
2016 |
2017
|
|
General |
1,599,000
|
9,567,000
|
|
Natural Resources |
-0-
|
4,755,000
|
|
Game and Fish |
670,000
|
110,000
|
The amounts that may be spent for each
purpose are specified in the following subdivisions.
|
Subd. 2. Lands
and Minerals Management |
|
-0-
|
|
200,000
|
$200,000 the second year is to initiate,
in consultation with the school trust lands director, a valuation process and
representative valuations for the compensation of school trust lands required
by Minnesota Statutes, section 84.027, subdivision 18, paragraph (b). By January 15, 2017, the commissioner must
submit a report to the chairs and ranking minority members of the house of representatives
and senate committees and divisions with jurisdiction over environment and
natural resources and education policy and finance on the Department of Natural
Resources' progress in developing a valuation process, a description of the
process to identify representative sample valuations, and the results of the
representative valuations of school trust lands identified for
compensation. This is a onetime
appropriation.
|
Subd. 3. Ecological
and Water Resources |
|
-0-
|
|
612,000
|
$187,000 the second year is for a grant to
the Middle-Snake-Tamarac Rivers Watershed District to match equal funds from
the North Dakota State Water Commission and North Dakota water boards to
conduct hydraulic modeling of alternative floodway options for the reach
including and upstream and downstream of
the
Minnesota and North Dakota agricultural levies in the vicinity of Oslo,
Minnesota. The modeling must include
evaluating removal of floodway flow obstructions, channel obstructions,
transportation access, and equalization of agricultural levy protection. The project must be conducted in partnership
with the border township association group representing four Minnesota
townships and the city of Oslo and the three adjacent townships in North
Dakota. This is a onetime appropriation
and is available until June 30, 2018.
$200,000 the second year is for a grant to
the Koronis Lake Association for purposes of removing and preventing aquatic
invasive species. This is a onetime
appropriation.
$225,000 the second year is from the water
management account in the natural resources fund for water appropriation
monitoring, modeling, and reporting for the Cold Spring Creek area as required
under this act. This is a onetime
appropriation and is available until June 30, 2022.
|
Subd. 4. Forest
Management |
|
-0-
|
|
3,500,000
|
$2,500,000 the second year is for private
forest management assistance. The agency
base is increased by $2,000,000 in fiscal year 2018 and thereafter.
$1,000,000 the second year is from the
forest management investment account in the natural resources fund for
reforestation on state lands. This is a
onetime appropriation.
|
Subd. 5. Parks
and Trails Management |
|
-0-
|
|
6,459,000
|
|
Appropriations
by Fund |
||
|
|
2016 |
2017
|
|
General |
-0-
|
2,929,000
|
|
Natural Resources |
-0-
|
3,530,000
|
$2,800,000 the second year is a onetime
appropriation.
$2,300,000 the second year is from the
state parks account in the natural resources fund. Of this amount, $1,300,000 is onetime, of
which $1,150,000 is for strategic park acquisition.
$20,000 the second year is from the
natural resources fund to design and erect signs marking the David Dill trail
designated in this act. Of this amount,
$10,000 is from the snowmobile trails and enforcement account and $10,000 is
from the all-terrain vehicle account.
This is a onetime appropriation.
$100,000
the second year is for the improvement of the infrastructure for sanitary sewer
service at the Woodenfrog Campground in Kabetogama State Forest. This is a onetime appropriation.
$29,000 the second year is for computer
programming related to the transfer-on-death title changes for watercraft. This is a onetime appropriation.
$210,000 the first year is from the water
recreation account in the natural resources fund for implementation of
Minnesota Statutes, section 86B.532, established in this act. This is a onetime appropriation. The commissioner of natural resources shall
seek federal and other nonstate funds to reimburse the department for the
initial costs of producing and distributing carbon monoxide boat warning
labels. All amounts collected under this
paragraph shall be deposited into the water recreation account.
$1,000,000 the second year is from the
natural resources fund for a grant to Lake County for construction, including
bridges, of the Prospectors ATV Trail System linking the communities of Ely,
Babbitt, Embarrass, and Tower; Bear Head Lake and Lake Vermilion-Soudan
Underground Mine State Parks; the Taconite State Trail; and the Lake County
Regional ATV Trail System. Of this
amount, $900,000 is from the all-terrain vehicle account, $50,000 is from the
off-highway motorcycle account, and $50,000 is from the off-road vehicle
account. This is a onetime
appropriation.
|
Subd. 6. Fish
and Wildlife Management |
|
-0-
|
|
50,000
|
$50,000 the second year is from the game
and fish fund for fish virus surveillance, including fish testing in high-risk
waters used for bait production, to ensure the availability of safe bait. This is a onetime appropriation.
|
Subd. 7. Enforcement
|
|
670,000
|
|
-0-
|
$670,000 the first year is from the game
and fish fund for aviation services.
This is a onetime appropriation.
|
Subd. 8. Operations
Support |
|
1,599,000
|
|
3,611,000
|
|
Appropriations
by Fund |
||
|
|
2016 |
2017
|
|
General |
1,599,000
|
3,551,000
|
|
Game and Fish |
-0- |
60,000 |
$1,599,000
the first year and $2,801,000 the second year are for legal costs related to
the NorthMet mining project. Of this
amount, up to $1,289,000 the second year may be transferred to other agencies
for legal costs associated with the NorthMet mining project. This is a onetime appropriation and is
available until
June 30, 2019.
$750,000 the second year is for a grant to
Wolf Ridge Environmental Learning Center to construct a new dormitory, renovate
an old dormitory, construct a maintenance building, and construct a small
classroom building with parking. The
grant is not available until the commissioner of management and budget
determines that an amount sufficient to complete the project is available from
nonstate sources. This is a onetime
appropriation and is available until June 30, 2019.
$60,000 the second year is from the
heritage enhancement account for the department's Southeast Asian unit to
conduct outreach efforts to the Southeast Asian community in Minnesota,
including outreach efforts to refugees from Burma, to encourage participation
in outdoor education opportunities and activities. This is a onetime appropriation.
|
Sec. 4.
BOARD OF WATER AND SOIL
RESOURCES |
|
$-0- |
|
$479,000 |
$479,000 the second year is for the
development of a detailed plan to implement a working lands watershed
restoration program to incentivise the establishment and maintenance of
perennial crops that includes the following:
(1) a process for selecting pilot
watersheds that are expected to result in the greatest water quality
improvements and exhibit readiness to participate in the program;
(2) an assessment of the quantity of
agricultural land that is expected to be eligible for the program in each
watershed;
(3) an assessment of landowner interest in
participating in the program;
(4) an assessment of the contract terms
and any recommendations for changes to the terms, including consideration of
variable payment rates for lands of different priority or type;
(5) an assessment of the opportunity to
leverage federal funds through the program and recommendations on how to
maximize the use of federal funds for assistance to establish perennial crops;
(6) an assessment of how other state
programs could complement the program;
(7)
an estimate of water quality improvements expected to result from
implementation in pilot watersheds;
(8) an assessment of how to best integrate
program implementation with existing conservation requirements and develop
recommendations on harvest practices and timing to benefit wildlife production;
(9) an assessment of the potential
viability and water quality benefit of cover crops used in biomass processing
facilities;
(10) a timeline for implementation,
coordinated to the extent possible with proposed biomass processing facilities;
and
(11) a projection of funding sources
needed to complete implementation.
This is
a onetime appropriation and is available until June 30, 2018.
The board shall coordinate development of
the working lands watershed restoration plan with stakeholders and the
commissioners of natural resources, agriculture, and the Pollution Control
Agency. The board must submit an interim
report by October 15, 2017, and the feasibility study and program plan by
February 1, 2018, to the chairs and ranking minority members of the legislative
committees and divisions with jurisdiction over agriculture, natural resources,
and environment policy and finance and to the Clean Water Council.
|
Sec. 5. LEGISLATURE
|
|
$25,000 |
|
$-0- |
$25,000 the first year is from the Minnesota
future resources fund to the Legislative Coordinating Commission for the
Aggregate Resources Task Force established in this act. This is a onetime appropriation and is
available until June 30, 2018.
|
Sec. 6. ADMINISTRATION
|
|
$250,000 |
|
$-0- |
$250,000 the first year is from the state
forest suspense account in the permanent school fund for the school trust lands
director to initiate real estate development projects on school trust lands as
determined by the school trust lands director.
This is a onetime appropriation.
Sec. 7. Minnesota Statutes 2014, section 17.4982, subdivision 18a, is amended to read:
Subd. 18a. Nonindigenous
species. "Nonindigenous
species" means a species of fish or other aquatic life that is:
(1) not known to have been historically present in the state;
(2) not known to be naturally occurring in a particular part of the state; or
(3)
listed designated by rule as a prohibited or regulated invasive
species.
Sec. 8. Minnesota Statutes 2014, section 84.027, subdivision 13, is amended to read:
Subd. 13. Game and fish rules. (a) The commissioner of natural resources may adopt rules under sections 97A.0451 to 97A.0459 and this subdivision that are authorized under:
(1) chapters 97A, 97B, and 97C to set open seasons and areas, to close seasons and areas, to select hunters for areas, to provide for tagging and registration of game and fish, to prohibit or allow taking of wild animals to protect a species, to prevent or control wildlife disease, to open or close bodies of water or portions of bodies of water for night bow fishing, and to prohibit or allow importation, transportation, or possession of a wild animal;
(2) sections 84.093, 84.15, and 84.152 to set seasons for harvesting wild ginseng roots and wild rice and to restrict or prohibit harvesting in designated areas; and
(3) section 84D.12 to list designate
prohibited invasive species, regulated invasive species, and unregulated
nonnative species, and to list infested waters.
(b) If conditions exist that do not allow the commissioner to comply with sections 97A.0451 to 97A.0459, including the need to adjust season variables on an annual basis based upon current biological and harvest data, the commissioner may adopt a rule under this subdivision by submitting the rule to the attorney general for review under section 97A.0455, publishing a notice in the State Register and filing the rule with the secretary of state and the Legislative Coordinating Commission, and complying with section 97A.0459, and including a statement of the conditions and a copy of the rule in the notice. The conditions for opening a water body or portion of a water body for night bow fishing under this section may include the need to temporarily open the area to evaluate compatibility of the activity on that body of water prior to permanent rulemaking. The notice may be published after it is received from the attorney general or five business days after it is submitted to the attorney general, whichever is earlier.
(c) Rules adopted under paragraph (b) are effective upon publishing in the State Register and may be effective up to seven days before publishing and filing under paragraph (b), if:
(1) the commissioner of natural resources determines that an emergency exists;
(2) the attorney general approves the rule; and
(3) for a rule that affects more than three counties the commissioner publishes the rule once in a legal newspaper published in Minneapolis, St. Paul, and Duluth, or for a rule that affects three or fewer counties the commissioner publishes the rule once in a legal newspaper in each of the affected counties.
(d) Except as provided in paragraph (e), a rule published under paragraph (c), clause (3), may not be effective earlier than seven days after publication.
(e) A rule published under paragraph (c), clause (3), may be effective the day the rule is published if the commissioner gives notice and holds a public hearing on the rule within 15 days before publication.
(f) The commissioner shall attempt to notify persons or groups of persons affected by rules adopted under paragraphs (b) and (c) by public announcements, posting, and other appropriate means as determined by the commissioner.
(g) Notwithstanding section 97A.0458, a rule adopted under this subdivision is effective for the period stated in the notice but not longer than 18 months after the rule is effective.
Sec. 9. Minnesota Statutes 2015 Supplement, section 84.027, subdivision 13a, is amended to read:
Subd. 13a. Game and fish expedited permanent rules. (a) In addition to the authority granted in subdivision 13, the commissioner of natural resources may adopt rules under section 14.389 that are authorized under:
(1) chapters 97A, 97B, and 97C to describe zone or permit area boundaries, to designate fish spawning beds or fish preserves, to select hunters or anglers for areas, to provide for registration of game or fish, to prevent or control wildlife disease, or to correct errors or omissions in rules that do not have a substantive effect on the intent or application of the original rule; or
(2) section 84D.12 to list designate
prohibited invasive species, regulated invasive species, and unregulated
nonnative species.
(b) The commissioner of natural resources may adopt rules under section 14.389 that are authorized under chapters 97A, 97B, and 97C, for purposes in addition to those listed in paragraph (a), clause (1), subject to the notice and public hearing provisions of section 14.389, subdivision 5.
Sec. 10. Minnesota Statutes 2014, section 84.091, subdivision 2, is amended to read:
Subd. 2. License
required; exception exemptions.
(a) Except as provided in paragraph (b) this subdivision,
a person may not harvest, buy, sell, transport, or possess aquatic plants
without a license required under this chapter.
A license shall be issued in the same manner as provided under the game
and fish laws.
(b) A resident under the age of 18 years may harvest wild rice without a license, if accompanied by a person with a wild rice license.
(c) Tribal band members who possess a
valid tribal identification card from a federally recognized tribe located in
Minnesota are deemed to have a license to harvest wild rice under this section.
Sec. 11. Minnesota Statutes 2014, section 84.798, subdivision 2, is amended to read:
Subd. 2. Exemptions. Registration is not required for an off-road vehicle that is:
(1) owned and used by the United States,
an Indian tribal government, the state, another state, or a political
subdivision; or
(2) registered in another state or country
and has not been in this state for more than 30 consecutive days; or
(3) operated with a valid state trail pass according to section 84.8035.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 12. Minnesota Statutes 2014, section 84.8035, is amended to read:
84.8035
NONRESIDENT OFF-ROAD VEHICLE STATE TRAIL PASS.
Subdivision 1. Pass
required; fee. (a) Except as
provided under paragraph (c), a nonresident person may not
operate an off-road vehicle on a state or grant-in-aid off-road vehicle trail or
use area unless the vehicle displays a nonresident an
off-road vehicle state trail pass sticker issued according to this
section. The pass must be viewable by a
peace officer, a conservation officer, or an employee designated under section
84.0835.
(b)
The fee for an annual pass is $20.
The pass is valid from January 1 through December 31. The fee for a three-year pass is $30. The commissioner of natural resources shall
issue a pass upon application and payment of the fee. Fees collected under this section, except for
the issuing fee for licensing agents, shall be deposited in the state treasury
and credited to the off-road vehicle account in the natural resources fund and,
except for the electronic licensing system commission established by the
commissioner under section 84.027, subdivision 15, must be used for
grants-in-aid to counties and municipalities for off-road vehicle organizations
to construct and maintain off-road vehicle trails and use areas.
(c) A nonresident An off-road
vehicle state trail pass is not required for:
(1) an off-road vehicle that is owned and used by the United States, another state, or a political subdivision thereof that is exempt from registration under section 84.798, subdivision 2;
(2) a person operating an off-road vehicle only on the portion of a trail that is owned by the person or the person's spouse, child, or parent; or
(3) a nonresident person
operating an off-road vehicle that is registered according to section 84.798.
(d) The fee for an annual nonresident
off-road vehicle state trail pass is $20.
The nonresident pass is valid from January 1 through December 31. The fee for a nonresident three-year pass is
$30.
(e) The fee for a resident off-road
vehicle state trail pass is $20. The
resident pass is valid for 30 consecutive days after the date of issuance.
Subd. 2. License
agents. The commissioner may appoint
agents to issue and sell nonresident off-road vehicle state trail
passes. The commissioner may revoke the
appointment of an agent at any time. The
commissioner may adopt additional rules as provided in section 97A.485,
subdivision 11. An agent shall observe
all rules adopted by the commissioner for accounting and handling of passes
pursuant to section 97A.485, subdivision 11.
An agent shall promptly deposit and remit all money received from the
sale of the passes, exclusive of the issuing fee, to the commissioner.
Subd. 3. Issuance
of passes. The commissioner and
agents shall issue and sell nonresident off-road vehicle state trail
passes. The commissioner shall also make
the passes available through the electronic licensing system established under
section 84.027, subdivision 15.
Subd. 4. Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for passes issued by the commissioner shall be deposited in the off-road vehicle account in the natural resources fund and retained for the operation of the electronic licensing system.
Subd. 5. Duplicate
passes. The commissioner and agents
shall issue a duplicate pass to persons whose pass is lost or destroyed using
the process established under section 97A.405, subdivision 3, and rules adopted
thereunder. The fee for a duplicate nonresident
off-road vehicle state trail pass is $4, with an issuing fee of 50 cents.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 13. Minnesota Statutes 2014, section 84D.01, subdivision 2, is amended to read:
Subd. 2. Aquatic macrophyte. "Aquatic macrophyte" means macro algae or a macroscopic nonwoody plant, either a submerged, floating leafed, floating, or emergent plant that naturally grows in water.
Sec. 14. Minnesota Statutes 2014, section 84D.05, subdivision 1, is amended to read:
Subdivision 1. Prohibited activities. A person may not possess, import, purchase, sell, propagate, transport, or introduce a prohibited invasive species, except:
(1) under a permit issued by the commissioner under section 84D.11;
(2) in the case of purple loosestrife, as provided by sections 18.75 to 18.88;
(3) under a restricted species permit issued under section 17.457;
(4) when being transported to the department, or another destination as the commissioner may direct, in a sealed container for purposes of identifying the species or reporting the presence of the species;
(5) when being transported for disposal as part of a harvest or control activity when specifically authorized under a permit issued by the commissioner according to section 103G.615, when being transported for disposal as specified under a commercial fishing license issued by the commissioner according to section 97A.418, 97C.801, 97C.811, 97C.825, 97C.831, or 97C.835, or when being transported as specified by the commissioner;
(6) when the specimen has been lawfully
acquired dead and, in the case of plant species, all seeds are removed or are
otherwise secured in a sealed container;
(7) in the form of herbaria or other
preserved specimens;
(8) (6) when being removed
from watercraft and equipment, or caught while angling, and immediately
returned to the water from which they came; or
(9) (7) as the commissioner
may otherwise prescribe by rule.
Sec. 15. [84D.075]
NONNATIVE SPECIES, AQUATIC PLANTS, AND AQUATIC MACROPHYTES; PARTS AND LIFE
STAGE.
A law relating to a nonnative species,
aquatic plant, or aquatic macrophyte applies in the same manner to a part of a
nonnative species, aquatic plant, or aquatic macrophyte, whether alive or dead,
and to any life stage or form.
Sec. 16. Minnesota Statutes 2014, section 84D.09, subdivision 2, is amended to read:
Subd. 2. Exceptions. Unless otherwise prohibited by law, a person may transport aquatic macrophytes:
(1) that are duckweeds in the family Lemnaceae;
(2) for purposes of constructing shooting or observation blinds in amounts sufficient for that purpose, provided that the aquatic macrophytes are emergent and cut above the waterline;
(3) when legally purchased or traded by or from commercial or hobbyist sources for aquarium, wetland or lakeshore restoration, or ornamental purposes;
(4) when harvested for personal or commercial use if in a motor vehicle;
(5) to the department, or another destination as the commissioner may direct, in a sealed container for purposes of identifying a species or reporting the presence of a species;
(6) that are wild rice harvested under section 84.091;
(7) in the form of fragments of emergent
aquatic macrophytes incidentally transported in or on watercraft or decoys used
for waterfowl hunting during the waterfowl season; or
(8) when removing water-related equipment
from waters of the state for purposes of cleaning off aquatic macrophytes
before leaving a water access site.; or
(9) when being transported from
riparian property to a legal disposal site that is at least 100 feet from any
surface water, ditch, or seasonally flooded land, provided the aquatic
macrophytes are in a covered commercial vehicle specifically designed and used
for hauling trash.
Sec. 17. Minnesota Statutes 2014, section 84D.10, subdivision 4, is amended to read:
Subd. 4. Persons
transporting water-related equipment. (a)
When leaving waters a water of the state, a person must
drain water-related equipment holding water and live wells and bilges by
removing the drain plug before transporting the water-related equipment off
the water access site or riparian property.
For the purposes of this paragraph, "transporting" includes
moving water-related equipment over land between connected or unconnected water
bodies, but does not include moving water-related equipment within the
immediate area required for loading and preparing the water-related equipment
for transport over land.
(b) Drain plugs, bailers, valves, or other devices used to control the draining of water from ballast tanks, bilges, and live wells must be removed or opened while transporting water-related equipment.
(c) Emergency response vehicles and equipment may be transported on a public road with the drain plug or other similar device replaced only after all water has been drained from the equipment upon leaving the water body.
(d) Portable bait containers used by licensed aquatic farms, portable bait containers when fishing through the ice except on waters listed infested for viral hemorrhagic septicemia, and marine sanitary systems are exempt from this subdivision.
(e) A person must not dispose of bait in waters of the state.
(f) A boat lift, dock, swim raft, or associated equipment that has been removed from any water body may not be placed in another water body until a minimum of 21 days have passed.
(g) A person who transports water that is appropriated from noninfested surface water bodies and that is transported by a commercial vehicle, excluding watercraft, or commercial trailer, which vehicle or trailer is specifically designed and used for water hauling, is exempt from paragraphs (a) and (b), provided that the person does not discharge the transported water to other surface waters or within 100 feet of a surface water body.
(h) A person transporting water from noninfested surface water bodies for firefighting or emergencies that threaten human safety or property is exempt from paragraphs (a) and (b).
Sec. 18. Minnesota Statutes 2014, section 84D.108, is amended by adding a subdivision to read:
Subd. 2a. Lake
Minnetonka pilot study. (a)
The commissioner may issue an additional permit to service providers to return
to Lake Minnetonka water-related equipment with zebra mussels attached after
the equipment has been seasonally stored, serviced, or repaired. The permit must include verification and
documentation requirements and any other conditions the commissioner deems
necessary.
(b)
Water-related equipment with zebra mussels attached may be returned only to
Lake Minnetonka (DNR Division of Waters number 27-0133) by service providers permitted
under subdivision 1.
(c) The service provider's place of
business must be within the Lake Minnetonka Conservation District as
established according to sections 103B.601 to 103B.645.
(d) A service provider applying for a
permit under this subdivision must, if approved for a permit and before the
permit is valid, furnish a corporate surety bond in favor of the state for
$50,000 payable upon violation of this chapter.
(e) This subdivision expires December 1,
2018.
Sec. 19. Minnesota Statutes 2015 Supplement, section 84D.11, subdivision 1, is amended to read:
Subdivision 1. Prohibited invasive species. (a) The commissioner may issue a permit for the propagation, possession, importation, purchase, or transport of a prohibited invasive species for the purposes of disposal, decontamination, control, research, or education.
(b) The commissioner may issue a permit
as provided under section 84D.108, subdivision 2a, to a service provider to
allow water-related equipment to be placed back into the same body of water
after being seasonally stored, serviced, or repaired by the service
provider. This paragraph expires
December 1, 2018.
Sec. 20. Minnesota Statutes 2014, section 84D.13, subdivision 4, is amended to read:
Subd. 4.
Warnings; civil citations. After appropriate training, conservation
officers, other licensed peace officers, and
other department personnel designated by the commissioner may issue warnings or
citations to a person who:
(1) unlawfully transports prohibited invasive species or aquatic macrophytes;
(2) unlawfully places or attempts to place into waters of the state water-related equipment that has aquatic macrophytes or prohibited invasive species attached;
(3) intentionally damages, moves, removes, or sinks a buoy marking, as prescribed by rule, Eurasian watermilfoil;
(4) fails to remove plugs, open valves, and
drain water from water-related equipment before leaving waters of the state or
when transporting water-related equipment as provided in section 84D.10,
subdivision 4; or
(5) transports infested water, in violation
of rule, off riparian property.;
(6) fails to comply with a
decontamination order when a decontamination unit is available on site;
(7) fails to complete decontamination of
water-related equipment or to remove invasive species from water-related
equipment by the date specified on a tagging notice and order; or
(8) fails to complete the aquatic
invasive species offender training course required under section 86B.13.
Sec. 21. Minnesota Statutes 2015 Supplement, section 84D.13, subdivision 5, is amended to read:
Subd. 5. Civil penalties. (a) A civil citation issued under this section must impose the following penalty amounts:
(1) for transporting aquatic macrophytes in violation of section 84D.09, $100;
(2) for placing or attempting to place into waters of the state water-related equipment that has aquatic macrophytes attached, $200;
(3) for
unlawfully possessing or transporting a prohibited invasive species other than
an aquatic macrophyte, $500;
(4) for placing or attempting to place into waters of the state water-related equipment that has prohibited invasive species attached when the waters are not listed by the commissioner as being infested with that invasive species, $500;
(5) for intentionally damaging, moving, removing, or sinking a buoy marking, as prescribed by rule, Eurasian watermilfoil, $100;
(6) for failing to have drain plugs or similar devices removed or opened while transporting water-related equipment or for failing to remove plugs, open valves, and drain water from water-related equipment, other than marine sanitary systems, before leaving waters of the state, $100;
(7) for transporting infested water off
riparian property without a permit as required by rule, $200; and
(8) for failing to have aquatic invasive
species affirmation displayed or available for inspection as provided in
sections 86B.401 and 97C.301, subdivision 2a, $25.;
(9) for failing to comply with a
decontamination order when a decontamination unit is available on site, $250;
(10) for failing to complete
decontamination of water-related equipment or to remove invasive species from
water-related equipment by the date specified on a tagging notice and order,
$250; and
(11)
for failing to complete the aquatic invasive species offender training course
required under section 86B.13, $25.
(b) A civil citation that is issued to a person who has one or more prior convictions or final orders for violations of this chapter is subject to twice the penalty amounts listed in paragraph (a).
Sec. 22. Minnesota Statutes 2014, section 85.015, subdivision 13, is amended to read:
Subd. 13. Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton, Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St. Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in Itasca County and there terminate;
(2) the C.J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand Marais in Cook County, thence northeasterly to the international boundary in the vicinity of the north shore of Lake Superior, and there terminate;
(3) The Grand Marais to International
Falls Trail shall originate in Grand Marais in Cook County and extend
northwesterly, outside of the Boundary Waters Canoe Area, to Ely in
St. Louis County, thence southwesterly along the route of the Taconite
Trail to Tower in St. Louis County, thence northwesterly through the
Pelican Lake area in St. Louis County to International Falls in
Koochiching County, and there terminate the David Dill/Arrowhead Trail
shall originate at International Falls in Koochiching County and extend
southeasterly through the Pelican Lake area in St. Louis County,
intersecting with the Taconite Trail west of Tower; then the David
Dill/Taconite Trail continues easterly to Ely in St. Louis County; then
the David Dill/Tomahawk Trail extends southeasterly, outside the Boundary
Waters Canoe Area, to the area of Little Marais in Lake County and there
terminates at the intersection with the C.J. Ramstad/Northshore Trail; and
(4) the Matthew Lourey Trail shall originate in Duluth in St. Louis County and extend southerly to Chengwatana State Forest in Pine County.
(b) The trails shall be developed primarily for riding and hiking.
(c) In addition to the authority granted in subdivision 1, lands and interests in lands for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring any land or interest in land by eminent domain the commissioner of administration shall obtain the approval of the governor. The governor shall consult with the Legislative Advisory Commission before granting approval. Recommendations of the Legislative Advisory Commission shall be advisory only. Failure or refusal of the commission to make a recommendation shall be deemed a negative recommendation.
Sec. 23. Minnesota Statutes 2014, section 86B.005, is amended by adding a subdivision to read:
Subd. 4a. Enclosed
accommodation compartment. "Enclosed
accommodation compartment" means one contiguous space, surrounded by boat
structure that contains all of the following:
(1) designated sleeping accommodations;
(2) a galley area with sink; and
(3) a head compartment.
Sec. 24. Minnesota Statutes 2014, section 86B.005, is amended by adding a subdivision to read:
Subd. 4b. Enclosed
occupancy compartment. "Enclosed
occupancy compartment" means one contiguous enclosed space surrounded by
boat structure that may be occupied by a person.
Sec. 25. Minnesota Statutes 2014, section 86B.005, is amended by adding a subdivision to read:
Subd. 8a. Marine
carbon monoxide detection system. "Marine
carbon monoxide detection system" means a device or system that meets the
requirements of the American Boat and Yacht Council Standard A-24, July, 2015,
for carbon monoxide detection systems.
Sec. 26. [86B.532]
CARBON MONOXIDE DETECTION DEVICE REQUIREMENTS.
Subdivision 1. Requirements. (a) No motorboat that has an enclosed
accommodation compartment may be operated on any waters of the state unless the
motorboat is equipped with a functioning marine carbon monoxide detection
system installed according to the manufacturer's instructions.
(b) After the effective date of this
section, no new motorboat that has an enclosed accommodation compartment may be
sold or offered for sale in Minnesota unless the motorboat is equipped with a
new functioning marine carbon monoxide detection system installed according to
the manufacturer's instructions.
Subd. 2. Boating
safety courses. All
state-sponsored boating safety courses and all boating safety courses that
require state approval by the commissioner must incorporate information about
the dangers of being overcome by carbon monoxide poisoning while on or behind a
motorboat and how to prevent that poisoning.
Subd. 3. Carbon monoxide poisoning warning labels. (a) No gasoline-powered motorboat that has an enclosed occupancy compartment may be operated on any waters of the state unless labels warning of carbon monoxide dangers are affixed in the vicinity of: the aft reboarding/stern area, the steering station, and in or at the entrance to any enclosed occupancy compartment.
(b)
For a motorboat sold by a dealer, the dealer must ensure that specified warning
labels have been affixed before completion of the transaction.
(c) Warning labels approved by the
American Boat and Yacht Council, National Marine Manufacturers Association, or
the commissioner satisfy the requirements of this section when installed as
specified.
Subd. 4. License
agents; distribution. The
commissioner shall mail the information and labels to all owners of motorboats
that are 19 feet and greater in length the first year. The commissioner must also provide license
agents with informational brochures and warning labels about the dangers of
carbon monoxide poisoning while boating.
A license agent must make the brochure and labels available to motorboat
owners and make efforts to inform new owners of the requirement. The commissioner shall highlight the new
requirements on the watercraft renewal reminder postcard for three consecutive
three-year license cycles and in the Minnesota Boating Guide. The brochure must instruct motorboat owners
to place the labels according to subdivision 3, and inform motorboat owners of
carbon monoxide dangers of gasoline-powered generators.
Subd. 5. Safety
warning. A first violation of
this section shall not result in a penalty, but is punishable only by a safety
warning. A second or subsequent
violation is a petty misdemeanor.
EFFECTIVE
DATE. This section is
effective May 1, 2017.
Sec. 27. [86B.841]
TRANSFER-ON-DEATH TITLE TO WATERCRAFT.
Subdivision 1. Titled
as transfer-on-death. A
natural person who is the owner of a watercraft may have the watercraft titled
in transfer-on-death or TOD form by including in the application for the
certificate of title a designation of a beneficiary or beneficiaries to whom
the watercraft must be transferred on death of the owner or the last survivor
of joint owners with rights of survivorship, subject to the rights of secured
parties.
Subd. 2. Designation
of beneficiary. A watercraft
is registered in transfer-on-death form by designating on the certificate of
title the name of the owner and the names of joint owners with identification
of rights of survivorship, followed by the words "transfer-on-death to
(name of beneficiary or beneficiaries)."
The designation "TOD" may be used instead of
"transfer-on-death." A title
in transfer-on-death form is not required to be supported by consideration, and
the certificate of title in which the designation is made is not required to be
delivered to the beneficiary or beneficiaries in order for the designation to
be effective.
Subd. 3. Interest
of beneficiary. The
transfer-on-death beneficiary or beneficiaries have no interest in the
watercraft until the death of the owner or the last survivor of joint owners
with rights of survivorship. A
beneficiary designation may be changed at any time by the owner or by all joint
owners with rights of survivorship, without the consent of the beneficiary or
beneficiaries, by filing an application for a new certificate of title.
Subd. 4. Vesting
of ownership in beneficiary. Ownership
of a watercraft titled in transfer-on-death form vests in the designated
beneficiary or beneficiaries on the death of the owner or the last of the joint
owners with rights of survivorship, subject to the rights of secured
parties. The transfer-on-death
beneficiary or beneficiaries who survive the owner may apply for a new
certificate of title to the watercraft upon submitting a certified death record
of the owner of the watercraft. If no
transfer-on-death beneficiary or beneficiaries survive the owner of a
watercraft, the watercraft must be included in the probate estate of the
deceased owner. A transfer of a
watercraft to a transfer-on-death beneficiary or beneficiaries is not a
testamentary transfer.
Subd. 5. Rights
of creditors. (a) This
section does not limit the rights of any secured party or creditor of the owner
of a watercraft against a transfer-on-death beneficiary or beneficiaries.
(b) The state or a county agency with a
claim or lien authorized by section 246.53, 256B.15, 261.04, or 270C.63, is a
creditor for purposes of this subdivision.
A claim or lien under those sections continues to apply against the
designated beneficiary or beneficiaries after the transfer under this section
if other assets of the deceased owner's estate are insufficient to pay the
amount of the claim. The claim or lien
continues to apply to the watercraft until the designated beneficiary sells or
transfers it to a person against whom the claim or lien does not apply and who
did not have actual notice or knowledge of the claim or lien.
Sec. 28. Minnesota Statutes 2014, section 88.01, is amended by adding a subdivision to read:
Subd. 28. Prescribed
burn. "Prescribed
burn" means a fire that is intentionally ignited, managed, and controlled
by an entity meeting certification requirements established by the commissioner
for the purpose of managing vegetation.
A prescribed burn that has exceeded its prescribed boundaries and
requires suppression action is considered a wildfire.
Sec. 29. Minnesota Statutes 2014, section 88.22, subdivision 1, is amended to read:
Subdivision 1. Imposition of restrictions. (a) Road closure. When the commissioner of natural resources shall determine that conditions conducive to wildfire hazards exist in the wildfire areas of the state and that the presence of persons in the wildlife areas tends to aggravate wildfire hazards, render forest trails impassable by driving thereon during wet seasons and hampers the effective enforcement of state timber trespass and game laws, the commissioner may by written order, close any road or trail leading into any land used for any conservation purposes, to all modes of travel except that considered essential such as residents traveling to and from their homes or in other cases to be determined by the authorized forest officers assigned to guard the area.
(b) Burning ban. The commissioner may also, upon such determination, by written order, suspend the issuance of permits for open fires or prescribed burns, revoke or suspend the operation of a permit previously issued and, to the extent the commissioner deems necessary, prohibit the building of all or some kinds of open fires or prescribed burns in all or any part of a wildfire area regardless of whether a permit is otherwise required; and the commissioner also may, by written order, prohibit smoking except at places of habitation or automobiles or other enclosed vehicles properly equipped with an efficient ash tray.
Sec. 30. Minnesota Statutes 2014, section 89.0385, is amended to read:
89.0385
FOREST MANAGEMENT INVESTMENT ACCOUNT; COST CERTIFICATION.
(a) The commissioner shall certify the total costs incurred for forest management, forest improvement, and road improvement on state-managed lands during each fiscal year. The commissioner shall distribute forest management receipts credited to various accounts according to this section.
(b) The amount of the certified costs incurred for forest management activities on state lands shall be transferred from the account where receipts are deposited to the forest management investment account in the natural resources fund, except for those costs certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and revenue reports, throughout the fiscal year, with final certification and reconciliation after each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.
(c) The amount of the certified costs
incurred for forest management activities on nonstate lands managed under a
good neighbor or joint powers agreement must be transferred from the account
where receipts are deposited to the forest management investment account in the
natural resources fund. Transfers for
costs incurred may occur after projects or timber permits are finalized.
Sec. 31. Minnesota Statutes 2014, section 93.0015, subdivision 3, is amended to read:
Subd. 3. Expiration. The committee expires June 30, 2016
2026.
Sec. 32. Minnesota Statutes 2014, section 93.2236, is amended to read:
93.2236
MINERALS MANAGEMENT ACCOUNT.
(a) The minerals management account is created as an account in the natural resources fund. Interest earned on money in the account accrues to the account. Money in the account may be spent or distributed only as provided in paragraphs (b) and (c).
(b) If the balance in the minerals management account exceeds $3,000,000 on March 31, June 30, September 30, or December 31, the amount exceeding $3,000,000 must be distributed to the permanent school fund, the permanent university fund, and taxing districts as provided in section 93.22, subdivision 1, paragraph (c). The amount distributed to each fund must be in the same proportion as the total mineral lease revenue received in the previous biennium from school trust lands, university lands, and lands held by the state in trust for taxing districts.
(c) Subject to appropriation by the legislature, money in the minerals management account may be spent by the commissioner of natural resources for mineral resource management and projects to enhance future mineral income and promote new mineral resource opportunities.
Sec. 33. Minnesota Statutes 2014, section 94.3495, subdivision 2, is amended to read:
Subd. 2. Classes of land; definitions. (a) The classes of public land that may be involved in an expedited exchange under this section are:
(1) Class 1 land, which for the purpose of
this section is Class A land as defined in section 94.342, subdivision 1,
except for: ;
(i) school trust land as defined in
section 92.025; and
(ii) university land granted to the state
by acts of Congress;
(2)
Class 2 land, which for the purpose of this section is Class B land as defined
in section 94.342, subdivision 2; and
(3) Class 3 land, which for the purpose of this section is all land owned in fee by a governmental subdivision of the state.
(b) "School trust land" has
the meaning given in section 92.025.
(c) "University land" means
land granted to the state by acts of Congress for university purposes.
Sec. 34. Minnesota Statutes 2014, section 94.3495, subdivision 3, is amended to read:
Subd. 3. Valuation of land. (a) In an exchange of Class 1 land for Class 2 or 3 land, the value of all the land shall be determined by the commissioner of natural resources, but the county board must approve the value determined for the Class 2 land, and the governmental subdivision of the state must approve the value determined for the Class 3 land. In an exchange of Class 2 land for Class 3 land, the value of all the land shall be determined by the county board of the county in which the land lies, but the governmental subdivision of the state must approve the value determined for the Class 3 land.
(b)
To determine the value of the land, the parties to the exchange may either
(1) cause the land to be appraised, utilize the valuation process
provided under section 84.0272, subdivision 3, or obtain a market analysis from
a qualified real estate broker or (2) determine the value for each
40-acre tract or lot, or a portion thereof, using the most current township or
county assessment schedules for similar land types from the county assessor of
the county in which the lands are located.
Merchantable timber value must should be determined and
considered in finalizing valuation of the lands.
(b) All (c) Except for school trust
lands and university lands, the lands exchanged under this section shall be
exchanged only for lands of at least substantially equal value. For the purposes of this subdivision,
"substantially equal value" has the meaning given under section
94.343, subdivision 3, paragraph (b). No
payment is due either party if the lands, other than school trust lands or
university lands, are of substantially equal value but are not of the same
value.
(d) School trust lands and university
lands exchanged under this section must be exchanged only for lands of equal or
greater value.
Sec. 35. Minnesota Statutes 2014, section 94.3495, subdivision 7, is amended to read:
Subd. 7.
Reversionary interest;
Mineral and water power rights and other reservations. (a) All deeds conveying land given in
an expedited land exchange under this section shall include a reverter that
provides that title to the land automatically reverts to the conveying
governmental unit if:
(1) the receiving governmental unit sells,
exchanges, or otherwise transfers title of the land within 40 years of the date
of the deed conveying ownership; and
(2) there is no prior written approval for
the transfer from the conveying governmental unit. The authority for granting approval is the
commissioner of natural resources for former Class 1 land, the county board for
former Class 2 land, and the governing body for former Class 3 land.
(b) Class 1 land given in exchange is
subject to the reservation provisions of section 94.343, subdivision 4. Class 2 land given in exchange is subject to
the reservation provisions of section 94.344, subdivision 4. County fee land given in exchange is subject
to the reservation provisions of section 373.01, subdivision 1, paragraph (g).
Sec. 36. Minnesota Statutes 2014, section 97A.075, subdivision 7, is amended to read:
Subd. 7. Wolf licenses; account established. (a) For purposes of this subdivision, "wolf license" means a license or permit issued under section 97A.475, subdivision 2, clause (20); 3, paragraph (a), clause (16); or 20, paragraph (b).
(b) A wolf management and monitoring
account is created in the game and fish fund.
Revenue from wolf licenses must be credited to the wolf management and
monitoring account and is appropriated to the commissioner only for wolf
management, research, damage control, enforcement, and education. Notwithstanding any other law to the
contrary, money credited to the account may not be used to pay indirect costs
or agency shared services.
Sec. 37. Minnesota Statutes 2014, section 97A.405, subdivision 2, is amended to read:
Subd. 2.
Personal possession. (a) A person acting under a license or
traveling from an area where a licensed activity was performed must have in
personal possession either: (1) the
proper license, if the license has been issued to and received by the person; (2)
a driver's license or Minnesota identification card that bears a valid
designation of the proper lifetime license, as provided under section 171.07,
subdivision 19; or (2) (3) the proper license identification
number or stamp validation, if the license has been sold to the person by
electronic means but the actual license has not been issued and received.
(b)
If possession of a license or a license identification number is required, a
person must exhibit, as requested by a conservation officer or peace officer,
either: (1) the proper license if the
license has been issued to and received by the person; (2) a driver's
license or Minnesota identification card that bears a valid designation of the
proper lifetime license, as provided under section 171.07, subdivision 19;
or (2) (3) the proper license identification number or stamp
validation and a valid state driver's license, state identification card, or
other form of identification provided by the commissioner, if the license has
been sold to the person by electronic means but the actual license has not been
issued and received. A person charged
with violating the license possession requirement shall not be convicted if the
person produces in court or the office of the arresting officer, the actual
license previously issued to that person, which was valid at the time of
arrest, or satisfactory proof that at the time of the arrest the person was
validly licensed. Upon request of a
conservation officer or peace officer, a licensee shall write the licensee's
name in the presence of the officer to determine the identity of the licensee.
(c) Except as provided in paragraph (a), clause (2), if the actual license has been issued and received, a receipt for license fees, a copy of a license, or evidence showing the issuance of a license, including the license identification number or stamp validation, does not entitle a licensee to exercise the rights or privileges conferred by a license.
(d) A license issued electronically and not immediately provided to the licensee shall be mailed to the licensee within 30 days of purchase of the license. A pictorial migratory waterfowl, pheasant, trout and salmon, or walleye stamp shall be provided to the licensee after purchase of a stamp validation only if the licensee pays an additional fee that covers the costs of producing and mailing a pictorial stamp. A pictorial turkey stamp may be purchased for a fee that covers the costs of producing and mailing the pictorial stamp. Notwithstanding section 16A.1283, the commissioner may, by written order published in the State Register, establish fees for providing the pictorial stamps. The fees must be set in an amount that does not recover significantly more or less than the cost of producing and mailing the stamps. The fees are not subject to the rulemaking provisions of chapter 14, and section 14.386 does not apply.
EFFECTIVE DATE. This section is effective January 1,
2018, or on the date the Department of Public Safety implements the Minnesota
Licensing and Registration System (MNLARS), whichever occurs first.
Sec. 38. Minnesota Statutes 2014, section 97A.465, is amended by adding a subdivision to read:
Subd. 8.
Nonresident active members of
National Guard. A nonresident
that is an active member of the state's National Guard may obtain a resident
license to take fish or game. This
subdivision does not apply to the taking of moose or elk.
Sec. 39. Minnesota Statutes 2014, section 171.07, is amended by adding a subdivision to read:
Subd. 19.
Resident lifetime game and
fish license. (a) The
department shall maintain in its records information transmitted electronically
from the commissioner of natural resources identifying each person to whom the
commissioner has issued a resident lifetime license under section 97A.473. The records transmitted from the Department
of Natural Resources must contain:
(1) the full name and date of birth as required for the
driver's license or identification card;
(2) the person's driver's license or identification card
number;
(3) the category of lifetime license issued under
section 97A.473; and
(4) the Department of Natural Resources customer
identification number.
(b)
The department may delete records described in paragraph (a) if they have not
been matched to a driver's license or identification card record within seven
years after transmission to the department.
(c) Except as provided in paragraph
(b), the department shall include, on all drivers' licenses or Minnesota
identification cards issued to a person who holds a lifetime license, a graphic
or written designation of the lifetime license, and the category of the
lifetime license.
(d) If a person with a lifetime license
under section 97A.473 applies for a driver's license or Minnesota
identification card before that information has been transmitted to the
department, the department may accept a copy of the license issued under
section 97A.473 as proof of its issuance and shall then follow the procedures
in paragraph (c).
EFFECTIVE
DATE. This section is effective
January 1, 2018, or on the date the Department of Public Safety implements the
Minnesota Licensing and Registration System (MNLARS), whichever occurs first.
Sec. 40. Laws 2014, chapter 312, article 12, section 6, subdivision 5, as amended by Laws 2015, First Special Session chapter 4, article 3, section 11, is amended to read:
|
Subd. 5. Fish and Wildlife Management |
-0- |
|
2,412,000 |
$3,000 in 2015 is from the heritage enhancement account in the game and fish fund for a report on aquatic plant management permitting policies for the management of narrow-leaved and hybrid cattail in a range of basin types across the state. The report shall be submitted to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over environment and natural resources by December 15, 2014, and include recommendations for any necessary changes in statutes, rules, or permitting procedures. This is a onetime appropriation.
$9,000 in 2015 is from the game and fish fund for the commissioner, in consultation with interested parties, agencies, and other states, to develop a detailed restoration plan to recover the historical native population of bobwhite quail in Minnesota for its ecological and recreational benefits to the citizens of the state. The commissioner shall conduct public meetings in developing the plan. No later than January 15, 2015, the commissioner must report on the plan's progress to the legislative committees with jurisdiction over environment and natural resources policy and finance. This is a onetime appropriation.
$2,000,000 in 2015 is from the game and fish fund for shooting sports facility grants under Minnesota Statutes, section 87A.10. The commissioner may spend up to $50,000 of this appropriation to administer the grant. This is a onetime appropriation and is available until June 30, 2017.
$400,000 in 2015 is from the heritage enhancement account in the game and fish fund for hunter and angler recruitment and retention activities and grants to local chapters of Let's Go Fishing of
Minnesota
to provide community outreach to senior citizens, youth, and veterans and for
the costs associated with establishing and recruiting new chapters. The grants must be matched with cash or
in-kind contributions from nonstate sources.
Of this amount, $25,000 is for Asian Outdoor Heritage for youth
fishing recruitment efforts and outreach in the metropolitan area. The commissioner shall establish a grant
application process that includes a standard for ownership of equipment
purchased under the grant program and contract requirements that cover the
disposition of purchased equipment if the grantee no longer exists. Any equipment purchased with state grant
money must be specified on the grant application and approved by the
commissioner. The commissioner may spend
up to three percent of the appropriation to administer the grant. This is a onetime appropriation and is
available until June 30, 2016 2017.
Sec. 41. Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 2, is amended to read:
|
Subd. 2. Land
and Mineral Resources Management |
|
6,461,000 |
|
5,521,000 |
|
Appropriations by Fund |
||
|
|
2016
|
2017 |
|
General |
1,585,000 |
1,585,000 |
|
Natural Resources |
3,332,000 |
3,392,000 |
|
Game and Fish |
344,000 |
344,000 |
|
Remediation |
1,000,000 |
-0- |
|
Permanent School |
200,000 |
200,000 |
$68,000 the first year and $68,000 the second
year are for minerals cooperative environmental research, of which $34,000
the first year and $34,000 the second year are available only as matched by $1
of nonstate money for each $1 of state money.
The match may be cash or in-kind.
$251,000 the first year and $251,000 the
second year are for iron ore cooperative research. Of this amount, $200,000 each year is from
the minerals management account in the natural resources fund. $175,000 the first year and $175,000 the
second year are available only as matched by $1 of nonstate money for
each $1 of state money. The match may be
cash or in-kind. Any unencumbered
balance from the first year does not cancel and is available in the second
year.
$2,755,000 the first year and $2,815,000 the second year are from the minerals management account in the natural resources fund for use as provided in Minnesota Statutes, section 93.2236, paragraph (c), for mineral resource management, projects to enhance future mineral income, and projects to promote new mineral resource opportunities.
$200,000 the first year and $200,000 the second year are from the state forest suspense account in the permanent school fund to accelerate land exchanges, land sales, and commercial leasing of school trust lands and to identify, evaluate, and lease construction aggregate located on school trust lands. This appropriation is to be used for securing long-term economic return from the school trust lands consistent with fiduciary responsibilities and sound natural resources conservation and management principles.
Notwithstanding Minnesota Statutes, section 115B.20, $1,000,000 the first year is from the dedicated account within the remediation fund for the purposes of Minnesota Statutes, section 115B.20, subdivision 2, clause (4), to acquire salt lands as described under Minnesota Statutes, section 92.05, within Bear Head Lake State Park. This is a onetime appropriation and is available until June 30, 2018.
Sec. 42. Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 5, is amended to read:
|
Subd. 5. Parks
and Trails Management |
|
74,064,000 |
|
73,650,000 |
|
Appropriations by Fund |
||
|
|
2016
|
2017 |
|
General |
24,967,000 |
24,427,000 |
|
Natural Resources |
46,831,000 |
46,950,000 |
|
Game and Fish |
2,266,000 |
2,273,000 |
$1,075,000 the first year and $1,075,000 the second year are from the water recreation account in the natural resources fund for enhancing public water access facilities.
$5,740,000 the first year and $5,740,000 the second year are from the natural resources fund for state trail, park, and recreation area operations. This appropriation is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (2).
$1,005,000 the first year and $1,005,000 the
second year are from the natural resources fund for park and trail grants to
local units of government on land to be maintained for at least 20 years for
the purposes of the grants. This
appropriation is from the revenue deposited in the natural resources fund under
Minnesota Statutes, section 297A.94, paragraph (e), clause (4). Any unencumbered balance does not cancel at
the end of the first year and is available for the second year. Up to 2.5 percent of this appropriation
may be used to administer the grants.
$8,424,000 the first year and $8,424,000 the second year are from the snowmobile trails and enforcement account in the natural resources fund for the snowmobile grants-in-aid program. Any unencumbered balance does not cancel at the end of the first year and is available for the second year.
$1,360,000 the first year and $1,360,000 the second year are from the natural resources fund for the off-highway vehicle grants-in-aid program. Of this amount, $1,210,000 each year is from the all‑terrain vehicle account; and $150,000 each year is from the off‑highway motorcycle account. Any unencumbered balance does not cancel at the end of the first year and is available for the second year.
$75,000 the first year and $75,000 the second year are from the cross-country ski account in the natural resources fund for grooming and maintaining cross-country ski trails in state parks, trails, and recreation areas.
$250,000 the first year and $250,000 the second year are from the state land and water conservation account (LAWCON) in the natural resources fund for priorities established by the commissioner for eligible state projects and administrative and planning activities consistent with Minnesota Statutes, section 84.0264, and the federal Land and Water Conservation Fund Act. Any unencumbered balance does not cancel at the end of the first year and is available for the second year.
$968,000 the first year and $968,000 the second year are from the off-road vehicle account in the natural resources fund. Of this amount, $568,000 each year is for parks and trails management for off-road vehicle purposes; $325,000 each year is for the off-road vehicle grant in aid program; and $75,000 each year is for a new full-time employee position or contract in northern Minnesota to work in conjunction with the Minnesota Four-Wheel Drive Association to address off-road vehicle touring routes and other issues related to off-road vehicle activities. Of this appropriation, the $325,000 each year is onetime.
$65,000 the first year is from the water recreation account in the natural resources fund to cooperate with local units of government in marking routes and designating river accesses and campsites under Minnesota Statutes, section 85.32. This is a onetime appropriation and is available until June 30, 2019.
$190,000 the first year is for a grant to the city of Virginia for the additional cost of supporting a trail due to the rerouting of U.S. Highway No. 53. This is a onetime appropriation and is available until June 30, 2019.
$50,000 the first year is for development of a master plan for the Mississippi Blufflands Trail, including work on possible extensions or connections to other state or regional trails. This is a onetime appropriation that is available until June 30, 2017.
$61,000 from the natural resources fund the first year is for a grant to the city of East Grand Forks for payment under a reciprocity agreement for the Red River State Recreation Area.
$500,000 the first year is for restoration or replacement of a historic trestle bridge in Blackduck. This is a onetime appropriation and is available until June 30, 2019.
The base for parks and trails operations in the natural resources fund in fiscal year 2018 and thereafter is $46,450,000.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 43. Laws 2015, First Special Session chapter 4, article 4, section 131, is amended to read:
Sec. 131. SURPLUS
STATE LAND SALES.
The school trust lands director shall
identify, in consultation with the commissioner of natural resources, at least
$5,000,000 in state-owned lands suitable for sale or exchange with school
trust lands. The lands identified
shall not be within a unit of the outdoor recreation system under Minnesota
Statutes, section 86A.05, an administrative site, or trust land. The commissioner shall sell or exchange
at least $3,000,000 worth of lands identified under this section by June 30, 2017. Land exchanged under this section may be
exchanged in accordance with Minnesota Statutes, section 94.3495. The value of the surplus land exchanged shall
serve as compensation to the permanent school fund as provided under Minnesota
Statutes, section 84.027, subdivision 18, paragraph (b). Notwithstanding the restrictions on sale of
riparian land and the public sale provisions under Minnesota Statutes, sections
92.45, 94.09, and 94.10, the commissioner may offer the surplus land, including
land bordering public water, for public or private sale. Notwithstanding Minnesota Statutes, section
94.16, subdivision 3, or any other law to the contrary, the amount an
amount equal to 90 percent of the proceeds from the sale of lands that
exceeds the actual expenses of selling the lands must be deposited in the
school trust lands account and used to extinguish the school trust interest as
provided under Minnesota Statutes, section 92.83, on school trust lands that
have public water access sites or old growth forests located on them. Notwithstanding Minnesota Statutes,
section 92.83, the remaining ten percent of the proceeds must be used to fund
transactional and legal work associated with the Boundary Waters Canoe Area
Wilderness land exchange and sale projects under Minnesota Statutes, sections
92.80 and 92.82.
Sec. 44. COLD
SPRING WATER APPROPRIATION PERMITS; REPORT.
(a) The commissioner of natural
resources shall amend the city of Cold Spring's water appropriation permit to
allow an increase in the city's water withdrawal of 100 million gallons per
year from city wells 4, 5, and 6, provided a combined reduction of ten million
gallons per year is made from city well 3 or water appropriations under any
permits held by brewing companies in the Cold Spring Creek area. The city and any other permit holder with
permit modifications made under this section must comply with all existing
reporting requirements and demonstrate that increased pumping does not result
in violations of the Safe Drinking Water Act.
The increases under this section are available on an interim basis, not
to exceed five years, to allow the city to establish a long-term water supply
solution for the city and area businesses.
(b)
The commissioner must conduct necessary monitoring of stream flow and water
levels and develop a groundwater model to determine the amount of water that
can be sustainably pumped in the area of Cold Spring Creek for area businesses,
agriculture, and city needs. Beginning
July 1, 2017, the commissioner must submit an annual progress report to the
chairs and ranking minority members of the house of representatives and senate
committees and divisions with jurisdiction over environment and natural
resources. The commissioner must submit
a final report by January 15, 2022.
Sec. 45. MARINE
CARBON MONOXIDE DETECTORS; REPORT.
The commissioner of natural resources
shall submit a report to the legislature by November 1, 2017. The report must outline any issues
encountered relating to implementation of Minnesota Statutes, section 86B.532,
any changes to marine manufacturing industry standards relating to carbon
monoxide, the availability of plug-in or battery‑powered marine certified
carbon monoxide detectors, and best practices in preventing carbon monoxide
poisoning relating to motorboat operation, including the feasibility of
requiring carbon monoxide detectors that are more sensitive in measuring carbon
monoxide than required in this act.
Sec. 46. PRESCRIBED
BURN REQUIREMENTS; REPORT.
The commissioner of natural resources,
in cooperation with prescribed burning professionals, nongovernmental
organizations, and local and federal governments, must develop criteria for
certifying an entity to conduct a prescribed burn under a general permit. The certification requirements must include
training, equipment, and experience requirements and include an apprentice
program to allow entities without experience to become certified. The commissioner must establish provisions
for decertifying entities. The
commissioner must not require additional certification or requirements for
burns conducted as part of normal agricultural practices not currently subject
to prescribed burn specifications. The
commissioner must submit a report with recommendations and any legislative
changes needed to the chairs and ranking minority members of the house of
representatives and senate committees and divisions with jurisdiction over
environment and natural resources by January 15, 2017.
Sec. 47. SAND
DUNES STATE FOREST; REPORT.
(a) Until July 1, 2017, the
commissioner of natural resources shall not log, enter into a logging contract,
or otherwise remove trees for purposes of creating oak savanna in the Sand
Dunes State Forest. This paragraph does
not prohibit work done under contracts entered into before the effective date
of this section or work on school trust lands.
(b) By January 15, 2017, the
commissioner must submit a report, prepared by the Division of Forestry, to the
chairs and ranking minority members of the house of representatives and senate
committees and divisions with jurisdiction over environment and natural
resources with the Division of Forestry's progress on collaborating with local
citizens and other stakeholders over the past year when making decisions that
impact the landscape, including forest conversions and other clear-cutting
activities, and the division's progress on other citizen engagement activities.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 48. LAKE
SERVICE PROVIDER FEASIBILITY REPORT.
The commissioner of natural resources
shall report to the chairs of the house of representatives and senate
committees with jurisdiction over natural resources by January 15, 2019,
regarding the feasibility of expanding permitting to service providers as
described in Minnesota Statutes, section 84D.108, subdivision 2a, to other
water bodies in the state. The report
must:
(1)
include recommendations for state and local resources needed to implement the
program;
(2) assess local government inspection
roles under Minnesota Statutes, section 84D.105, subdivision 2, paragraph (g);
and
(3) assess whether mechanisms to ensure
that water-related equipment placed back into the same body of water from which
it was removed can adequately protect other water bodies.
Sec. 49. WORKERS'
COMPENSATION FOR VOLUNTEERS; REPORT.
By January 15, 2017, the commissioner
of natural resources, in coordination with the commissioner of labor and
industry and the Workers' Compensation Advisory Council, shall make recommendations
to the chairs of the house of representatives and senate committees and
divisions with jurisdiction over the environment and natural resources on how
to clarify the state's liability for workers' compensation in relation to
volunteers of nonprofit organizations assisting with providing public services
on lands administered by the commissioner of natural resources subject to
Minnesota Statutes, section 175.007, subdivision 2.
Sec. 50. AGGREGATE
RESOURCES TASK FORCE.
Subdivision 1. Creation;
membership. (a) The Aggregate
Resources Task Force consists of eight members appointed as follows:
(1) the speaker of the house shall
appoint four members of the house of representatives to include two members of
the majority party and two members of the minority party, with one member being
the chair of the committee with jurisdiction over aggregate mining; and
(2) the senate Subcommittee on
Committees of the Committee on Rules and Administration shall appoint four
members of the senate to include two members of the majority party and two
members of the minority party, with one member being the chair of the committee
or division with jurisdiction over natural resources finance.
(b) The appointing authorities must
make their respective appointments no later than July 15, 2016.
(c) The first meeting of the task force
must be convened by the chairs of the house of representatives and senate
committees specified in paragraph (a) who will serve as cochairs of the task
force.
Subd. 2. Duties. The task force must study and provide
recommendations on:
(1) the Department of Natural
Resources' and Metropolitan Council's aggregate mapping progress and needs;
(2) the effectiveness of recent
aggregate tax legislation and the use of the revenues collected by counties;
(3) the use of state funds to preserve
aggregate reserves; and
(4) local land use and permitting
issues, environmental review requirements, and the impacts of other state
regulations on aggregate reserves.
Subd. 3. Report. No later than January 15, 2018, the
task force shall submit a report to the chairs of the house of representatives
and senate committees and divisions with jurisdiction over aggregate mining and
natural resources finance containing the findings of the study.
Subd. 4.
Expiration. The Aggregate Resources Task Force
expires 45 days after the report and recommendations are delivered to the
legislature or on June 30, 2018, whichever date is earlier.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 51. APPROPRIATION
REALLOCATION.
Notwithstanding Laws 2013, chapter 137,
article 3, section 4, paragraph (o), and Laws 2015, First Special Session
chapter 2, article 3, section 4, paragraph (b), the Minneapolis Park and
Recreation Board may allocate its share of the distribution of fiscal years
2016 and 2017 funds under Minnesota Statutes, section 85.53, subdivision 3, to
the Minneapolis Chain of Lakes, Mississippi Gorge, Above the Falls, and Central
Mississippi Riverfront Regional Parks in accordance with the most recent
priority rankings that the Minneapolis Park and Recreation Board has submitted
to the Metropolitan Council. This
reallocation of funds is anticipated to result in $500,000 in federal funds to
match extant parks and trails fund appropriations.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 52. CITATION.
Sections 23, 24, 25, 26, and 45 may be
known and cited as "Sophia's Law."
Sec. 53. REPEALER.
Minnesota Statutes 2014, section 116P.13,
is repealed.
EFFECTIVE
DATE. This section is
effective July 1, 2018, and any funds remaining in the Minnesota future
resources fund on July 1, 2018, are transferred to the general fund.
ARTICLE 4
PUBLIC SAFETY AND CORRECTIONS
|
Section 1. APPROPRIATIONS. |
The sums shown in the column under
"Appropriations" are added to the appropriations in Laws 2015,
chapter 65, article 1, to the agencies and for the purposes specified in this
article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years
indicated for each purpose. The figures
"2016" and "2017" used in this article mean that the
addition to the appropriation listed under them is available for the fiscal
year ending June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations for the fiscal
year ending June 30, 2016, are effective the day following final enactment.
|
|
|
|
APPROPRIATIONS |
||
|
|
|
|
Available for the Year |
||
|
|
|
|
Ending June 30 |
||
|
|
|
|
2016 |
2017 |
|
|
Sec. 2. SUPREME
COURT |
|
$-0- |
|
$1,000,000 |
For a competitive grant program established
by the chief justice for the distribution of safe and secure courthouse fund
grants to government entities responsible for providing or maintaining a
courthouse or other facility where court proceedings are held. Grant recipients must provide a 50 percent
nonstate match. This is a onetime
appropriation and is available until June 30, 2019.
|
Sec. 3. DISTRICT
COURTS |
|
$-0- |
|
$1,547,000 |
To increase the juror per diem to $20 and
the juror mileage reimbursement rate to 54 cents per mile.
|
Sec. 4. GUARDIAN
AD LITEM BOARD |
|
$-0- |
|
$878,000 |
To hire additional guardians ad litem to
comply with federal and state mandates, and court orders for representing the
best interests of children in juvenile and family court proceedings.
|
Sec. 5. HUMAN
RIGHTS |
|
$-0- |
|
$180,000 |
For a St. Cloud office.
|
Sec. 6. CORRECTIONS
|
|
|
|
|
|
Subdivision
1. Total Appropriation |
|
$4,341,000 |
|
$15,426,000 |
The amounts that may be spent for each
purpose are specified in the following subdivisions.
|
Subd. 2. Correctional
Institutions |
|
4,037,000
|
|
10,671,000
|
(a) Employee Compensation
$1,427,000 in fiscal year 2016 and
$7,512,000 in fiscal year 2017 are for employee compensation.
(b) Challenge Incarceration Expansion
$2,610,000 in fiscal year 2016 and
$2,757,000 in fiscal year 2017 are to increase capacity in the challenge
incarceration program. The base for this
activity is $3,263,000 in fiscal year 2018 and $3,623,000 in fiscal year 2019.
(c) 24-Hour Nursing
$375,000 in fiscal year 2017 is for
24-hour nursing coverage seven days a week at MCF-Shakopee.
|
Subd. 3. Community
Services |
|
241,000
|
|
2,566,000
|
(a) Employee Compensation
$241,000 in fiscal year 2016 and $860,000
in fiscal year 2017 are for employee compensation.
(b)
Challenge Incarceration Expansion
$406,000 in fiscal year 2017 is to
increase capacity in the challenge incarceration program.
(c) Reentry and Halfway Houses
$300,000 in fiscal year 2017 is for grants
to counties or groups of counties for reentry and halfway house services. Eligible programs must be proven to reduce
recidivism. Grant recipients must
provide a 50 percent nonstate match.
(d) High-Risk Revocation Reduction Program
$1,000,000 in fiscal year 2017 is to
establish a high-risk revocation reduction program in the metropolitan
area. The program shall provide
sustained case planning, housing assistance, employment assistance, group
mentoring, life skills programming, and transportation assistance to adult
release violators who are being released from prison.
|
Subd. 4. Operations
Support |
|
63,000
|
|
2,189,000
|
(a) Employee Compensation
$63,000 in fiscal year 2016 and $339,000
in fiscal year 2017 are for employee compensation.
(b) Information Technology Critical Updates
$1,850,000 in fiscal year 2017 is for
information technology upgrades and staffing.
This is a onetime appropriation.
|
Sec. 7. PUBLIC
SAFETY |
|
$-0- |
|
$6,100,000 |
|
Appropriations
by Fund |
||
|
General |
-0-
|
1,600,000
|
|
Trunk Highway |
-0-
|
4,500,000
|
The amounts that may be spent for each
purpose are specified in the following paragraphs.
(a) DNA Laboratory
$630,000 is for the Bureau of Criminal
Apprehension DNA laboratory, including the addition of six forensic
scientists. The base for this activity
is $1,000,000 in each of the fiscal years 2018 and 2019 for eight forensic
scientists.
(b)
Children In Need of Services or in
Out-Of-Home Placement
$150,000 is for a grant to an organization
that provides legal representation to children in need of protection or
services and children in out-of-home placement.
The grant is contingent upon a match in an equal amount from nonstate
funds. The match may be in kind, including
the value of volunteer attorney time, or in cash, or in a combination of the
two.
(c) Sex Trafficking
$820,000 is for grants to state and local
units of government for the following purposes:
(1) to support new or existing
multijurisdictional entities to investigate sex trafficking crimes; and
(2) to provide technical assistance for
sex trafficking crimes, including training and case consultation, to law
enforcement agencies statewide.
(d) State Patrol
$4,500,000 is from the trunk highway fund
to recruit, hire, train, and equip a State Patrol Academy. This amount is added to the appropriation in
Laws 2015, chapter 75, article 1, section 5, subdivision 3. The base appropriation from the trunk highway
fund for patrolling highways in each of fiscal years 2018 and 2019 is
$87,492,000, which includes $4,500,000 each year for a State Patrol Academy.
Sec. 8. Minnesota Statutes 2014, section 171.07, subdivision 6, is amended to read:
Subd. 6. Medical alert identifier. Upon the written request of the applicant, the department shall issue a driver's license or Minnesota identification card bearing a graphic or written medical alert identifier. The applicant must request the medical alert identifier at the time the photograph or electronically produced image is taken. No specific medical information will be contained on the driver's license or Minnesota identification card.
Sec. 9. Minnesota Statutes 2014, section 171.07, subdivision 7, is amended to read:
Subd. 7. Living
Will/Health Care Directive designation. (a)
At the written request of the applicant and on payment of the required fee, the
department shall issue, renew, or reissue a driver's license or Minnesota
identification card bearing the graphic or written designation of a
"Living Will/Health Care Directive" or an abbreviation
thereof. The designation does not
constitute delivery of a health care declaration under section 145B.05.
(b) On payment of the required fee, the department shall issue a replacement or renewal license or identification card without the designation if requested by the applicant.
(c) This subdivision does not impose any additional duty on a health care provider, as defined in section 145B.02, subdivision 6, or 145C.01, subdivision 6, beyond the duties imposed in chapter 145B or 145C.
(d) For the purposes of this subdivision:
(1) "living will" means a declaration made under section 145B.03; and
(2) "health care directive" means a durable power of attorney for health care under section 145C.02, or any other written advance health care directive of the applicant that is authorized by statute or not prohibited by law.
Sec. 10. Minnesota Statutes 2014, section 171.07, subdivision 15, is amended to read:
Subd. 15. Veteran designation. (a) At the request of an eligible applicant and on payment of the required fee, the department shall issue, renew, or reissue to the applicant a driver's license or Minnesota identification card bearing a graphic or written designation of:
(1) "Veteran"; or
(2) "Veteran 100% T&P."
(b) At the time of the initial application for the designation provided under this subdivision, the applicant must:
(1) be a veteran, as defined in section 197.447;
(2) have a certified copy of the veteran's discharge papers; and
(3) if the applicant is seeking the disability designation under paragraph (a), clause (2), provide satisfactory evidence of a 100 percent total and permanent service-connected disability as determined by the United States Department of Veterans Affairs.
(c) The commissioner of public safety is required to issue drivers' licenses and Minnesota identification cards with the veteran designation only after entering a new contract or in coordination with producing a new card design with modifications made as required by law.
Sec. 11. Minnesota Statutes 2014, section 243.166, subdivision 1b, is amended to read:
Subd. 1b. Registration required. (a) A person shall register under this section if:
(1) the person was charged with or petitioned for a felony violation of or attempt to violate, or aiding, abetting, or conspiracy to commit, any of the following, and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances:
(i) murder under section 609.185, paragraph (a), clause (2);
(ii) kidnapping under section 609.25;
(iii) criminal sexual conduct under section 609.342; 609.343; 609.344; 609.345; 609.3451, subdivision 3; or 609.3453; or
(iv) indecent exposure under section 617.23, subdivision 3;
(2) the person was charged with or petitioned for a violation of, or attempt to violate, or aiding, abetting, or conspiring to commit criminal abuse in violation of section 609.2325, subdivision 1, paragraph (b); false imprisonment in violation of section 609.255, subdivision 2; solicitation, inducement, or promotion of the
prostitution
of a minor or engaging in the sex trafficking of a minor in violation of
section 609.322; a prostitution offense involving a minor under the age of
13 years in violation of section 609.324, subdivision 1, paragraph (a);
soliciting a minor to engage in sexual conduct in violation of section 609.352,
subdivision 2 or 2a, clause (1); using a minor in a sexual performance in
violation of section 617.246; or possessing pornographic work involving a minor
in violation of section 617.247, and convicted of or adjudicated delinquent for
that offense or another offense arising out of the same set of circumstances;
(3) the person was sentenced as a patterned sex offender under section 609.3455, subdivision 3a; or
(4) the person was charged with or petitioned for, including pursuant to a court martial, violating a law of the United States, including the Uniform Code of Military Justice, similar to the offenses described in clause (1), (2), or (3), and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances.
(b) A person also shall register under this section if:
(1) the person was charged with or petitioned for an offense in another state that would be a violation of a law described in paragraph (a) if committed in this state and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances;
(2) the person enters this state to reside, work, or attend school, or enters this state and remains for 14 days or longer; and
(3) ten years have not elapsed since the person was released from confinement or, if the person was not confined, since the person was convicted of or adjudicated delinquent for the offense that triggers registration, unless the person is subject to a longer registration period under the laws of another state in which the person has been convicted or adjudicated, or is subject to lifetime registration.
If a person described in this paragraph is subject to a longer registration period in another state or is subject to lifetime registration, the person shall register for that time period regardless of when the person was released from confinement, convicted, or adjudicated delinquent.
(c) A person also shall register under this section if the person was committed pursuant to a court commitment order under Minnesota Statutes 2012, section 253B.185, chapter 253D, Minnesota Statutes 1992, section 526.10, or a similar law of another state or the United States, regardless of whether the person was convicted of any offense.
(d) A person also shall register under this section if:
(1) the person was charged with or petitioned for a felony violation or attempt to violate any of the offenses listed in paragraph (a), clause (1), or a similar law of another state or the United States, or the person was charged with or petitioned for a violation of any of the offenses listed in paragraph (a), clause (2), or a similar law of another state or the United States;
(2) the person was found not guilty by reason of mental illness or mental deficiency after a trial for that offense, or found guilty but mentally ill after a trial for that offense, in states with a guilty but mentally ill verdict; and
(3) the person was committed pursuant to a court commitment order under section 253B.18 or a similar law of another state or the United States.
EFFECTIVE DATE. This section is effective August 1, 2016, and
applies to crimes committed on or after that date.
Sec. 12. [325E.041]
SENSORY TESTING RESEARCH.
Subdivision 1. Definitions. For purposes of this section, the
following terms have the meanings given:
(1) "sensory testing firm"
means a business that tests consumer reaction to physical aspects of products
for a third-party client;
(2) "trained sensory
assessors" means members of the public at least 21 years of age selected
by sensory testing firms and trained for a minimum of one hour to test
products;
(3) "sensory testing
facility" means a facility specifically designed as a controlled
environment for testing; and
(4) "department" means the
Department of Public Safety.
Subd. 2. Allowed
activities. Notwithstanding
any law to the contrary, a sensory testing firm may possess and may purchase
alcohol at retail or wholesale, and may allow consumption of that alcohol, by
trained sensory assessors for testing purposes at their facility, provided
that:
(1) the firm must comply with section
340A.409 and all other state laws that do not conflict with this section;
(2) firms choosing to serve alcohol
must be licensed by the department, which may assess a fee sufficient to cover
costs; and
(3) records of testing protocols must
be retained by the firm for at least one year.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 13. Minnesota Statutes 2014, section 484.90, subdivision 6, is amended to read:
Subd. 6. Allocation. (a) In all cases prosecuted in district court by an attorney for a municipality or other subdivision of government within the county for violations of state statute, or of an ordinance; or charter provision, rule, or regulation of a city; all fines, penalties, and forfeitures collected shall be deposited in the state treasury and distributed according to this paragraph. For the purpose of this section, the county attorney shall be considered the attorney for any town in which a violation occurs. Except where a different disposition is provided by section 299D.03, subdivision 5, 484.841, 484.85, or other law, on or before the last day of each month, the courts shall pay over all fines, penalties, and forfeitures collected by the court administrator during the previous month as follows:
(1) 100 percent of all fines or penalties for parking violations for which complaints and warrants have not been issued to the treasurer of the city or town in which the offense was committed; and
(2) two-thirds of all other fines to the treasurer of the city or town in which the offense was committed and one‑third credited to the state general fund.
All other fines, penalties, and forfeitures collected by the court administrator shall be distributed by the courts as provided by law.
(b) Fines, penalties, and forfeitures shall be distributed as provided in paragraph (a) when:
(1) a city contracts with the county attorney for prosecutorial services under section 484.87, subdivision 3;
(2) a city has a population of 600 or less and has given the duty to prosecute cases to the county attorney under section 484.87; or
(3) the attorney general provides assistance to the county attorney as permitted by law.
Sec. 14. [609.2233]
FELONY ASSAULT MOTIVATED BY BIAS; INCREASED STATUTORY MAXIMUM SENTENCE.
A person who violates section 609.221,
609.222, or 609.223 because of the victim's or another person's actual or
perceived race, color, religion, sex, sexual orientation, disability as defined
in section 363A.03, age, or national origin is subject to a statutory maximum
penalty of 25 percent longer than the maximum penalty otherwise applicable.
EFFECTIVE DATE. This section is effective August 1, 2016, and
applies to crimes committed on or after that date.
Sec. 15. Minnesota Statutes 2015 Supplement, section 609.324, subdivision 1, is amended to read:
Subdivision 1. Engaging in, hiring, or agreeing to hire minor to engage in prostitution; penalties. (a) Whoever intentionally does any of the following may be sentenced to imprisonment for not more than 20 years or to payment of a fine of not more than $40,000, or both:
(1) engages in prostitution with an
individual under the age of 13 years; or
(2) hires or offers or agrees to hire an
individual under the age of 13 years to engage in sexual penetration or sexual
contact; or
(3) hires or offers or agrees to hire an individual who the actor reasonably believes to be under the age of 13 years to engage in sexual penetration or sexual contact.
(b) Whoever intentionally does any of the following may be sentenced to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both:
(1) engages in prostitution with an
individual under the age of 16 years but at least 13 years; or
(2) hires or offers or agrees to hire an
individual under the age of 16 years but at least 13 years to engage in sexual
penetration or sexual contact; or
(3) hires or offers or agrees to hire an individual who the actor reasonably believes to be under the age of 16 years but at least 13 years to engage in sexual penetration or sexual contact.
(c) Whoever intentionally does any of the following may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both:
(1) engages in prostitution with an individual under the age of 18 years but at least 16 years;
(2) hires or offers or agrees to hire an individual under the age of 18 years but at least 16 years to engage in sexual penetration or sexual contact; or
(3) hires or offers or agrees to hire an individual who the actor reasonably believes to be under the age of 18 years but at least 16 years to engage in sexual penetration or sexual contact.
EFFECTIVE
DATE. This section is
effective August 1, 2016, and applies to crimes committed on or after that
date.
Sec. 16. Laws 2015, chapter 65, article 1, section 18, is amended to read:
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Sec. 18. AVIAN INFLUENZA AND AGRICULTURAL EMERGENCY RESPONSE. |
|
|
|
Notwithstanding Minnesota Statutes, section
12.221, subdivision 6, for fiscal years 2016 and 2017 through June
30, 2019, only, the disaster contingency account, under Minnesota Statutes,
section 12.221, subdivision 6, may be used to pay for costs of eligible
avian influenza emergency response activities for avian influenza and
any agricultural emergency. By
January 15, 2018, and again by January 15, 2020, the commissioner of
management and budget must report to the chairs and ranking minority members of
the senate Finance Committee and the house of representatives Committee on Ways
and Means on any amount used for avian influenza the purposes
authorized under this section.
Sec. 17. ST. CLOUD
STATE UNIVERSITY; SPECIAL LICENSE.
Notwithstanding any other law, local
ordinance, or charter provision to the contrary, the city of St. Cloud may
issue an on-sale wine and malt liquor intoxicating liquor license to
St. Cloud State University. A
license authorized by this section may be issued for space that is not compact
and contiguous, provided that all the space is within the boundaries of the
campus of St. Cloud State University and is included in the description of
the licensed premises on the approved license application. The license under this section authorizes
sales on all days of the week to persons attending events at Herb Brooks National
Hockey Center, subject to the hours and days of sale restrictions in Minnesota
Statutes, and any reasonable license conditions or restrictions imposed by the
licensing authority. All other
provisions of Minnesota Statutes not inconsistent with this section apply to
the license authorized under this section.
EFFECTIVE
DATE. This section is
effective upon approval by the St. Cloud City Council in the manner
provided by Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 18. INDIAFEST;
SPECIAL LICENSE.
Notwithstanding any other law, local
ordinance, or charter provision to the contrary, the city of St. Paul may
issue a temporary on-sale intoxicating liquor license to the India Association
of Minnesota, a nonprofit 501(c)(3) organization, for Indiafest on the grounds of
the State Capitol. The license may
authorize only the sale of intoxicating malt liquor and wine. All provisions of Minnesota Statutes not
inconsistent with this section apply to the license authorized by this section.
EFFECTIVE
DATE. This section is effective
upon approval by the St. Paul City Council and compliance with Minnesota
Statutes, section 645.021.
Sec. 19. MAJOR
LEAGUE SOCCER STADIUM; SPECIAL LICENSE.
Notwithstanding any other law, local
ordinance, or charter provision to the contrary, the city of St. Paul may
issue an on-sale intoxicating liquor license to the operator of the Major
League Soccer stadium located in the city of St. Paul or to entities
affiliated with it for operation of food and beverage concessions at the
stadium. The license may authorize sales
both to persons attending any and all events, and sales in a restaurant, bar,
or banquet facility at the stadium. The
license authorizes sales on all days of the week. All provisions of Minnesota Statutes not
inconsistent
with this section apply to the license under this section. The license may be issued for a space that is
not compact and contiguous, provided that the licensed premises may include
only the space within the stadium or on stadium premises or grounds, as
described in the approved license application.
EFFECTIVE
DATE. This section is
effective upon approval by the St. Paul City Council and compliance with
Minnesota Statutes, section 645.021.
Sec. 20. JANESVILLE;
SPECIAL LICENSE.
Notwithstanding any law or ordinance to
the contrary, the city of Janesville may issue an on-sale intoxicating liquor
license for the Prairie Ridge Golf Club that is located at 2000 North Main
Street and is owned by the city. The
provisions of Minnesota Statutes not inconsistent with this section apply to
the license issued under this section.
The city of Janesville is deemed the licensee under this section, and
the relevant provisions of Minnesota Statutes apply to the licensee as if the
establishment were a municipal liquor store.
EFFECTIVE
DATE. This section is
effective upon approval by the Janesville City Council and compliance with
Minnesota Statutes, section 645.021.
Sec. 21. CITY
OF MINNEAPOLIS; SPECIAL LICENSE.
The city of Minneapolis may issue an
on-sale intoxicating liquor license to a restaurant located at 5000 Hiawatha
Avenue, notwithstanding any law or local ordinance or charter provision to the
contrary.
EFFECTIVE
DATE. This section is
effective upon approval by the Minneapolis City Council and compliance with
Minnesota Statutes, section 645.021.
Sec. 22. REPEALER.
Special Laws 1891, chapter 57, chapter
XII, section 5, is repealed.
EFFECTIVE
DATE. This section is
effective upon approval by the Duluth City Council and compliance with
Minnesota Statutes, section 645.021.
ARTICLE 5
BROADBAND DEVELOPMENT
|
Section 1.
DEPARTMENT OF EMPLOYMENT AND
ECONOMIC DEVELOPMENT |
$-0- |
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$35,000,000 |
Border-To-Border
Broadband Development Program. (a)
$35,000,000 in fiscal year 2017 is from the general fund for deposit in the border-to-border
broadband fund account under Minnesota Statutes, section 116J.396, to award
grants under that section. Of this
appropriation, no more than $5,000,000 may be used for grants to underserved
areas. Of this appropriation, up to
$1,000,000 may be used for administrative costs, including mapping. This is a onetime appropriation.
(b) $500,000 may be awarded to projects
that propose to expand the availability and adoption of broadband service to
areas that contain a significant proportion of low-income households. For
the
purposes of this paragraph, "low-income households" means households
whose household income is less than or equal to 200 percent of the most recent
calculation of the United States federal poverty guidelines published by the United
States Department of Health and Human Services, adjusted for family size.
(c) If grant awards in any area are
insufficient to fully expend the funds available for that area, the
commissioner may reallocate unexpended funds to other areas.
Sec. 2. Minnesota Statutes 2015 Supplement, section 116J.394, is amended to read:
116J.394
DEFINITIONS.
(a) For
the purposes of sections 116J.394 to 116J.396 116J.398, the
following terms have the meanings given them.
(b) "Broadband" or "broadband service" has the meaning given in section 116J.39, subdivision 1, paragraph (b).
(c) "Broadband infrastructure" means networks of deployed telecommunications equipment and technologies necessary to provide high-speed Internet access and other advanced telecommunications services for end users.
(d) "Commissioner" means the commissioner of employment and economic development.
(e) "Last-mile infrastructure" means broadband infrastructure that serves as the final leg connecting the broadband service provider's network to the end-use customer's on-premises telecommunications equipment.
(f) "Middle-mile infrastructure" means broadband infrastructure that links a broadband service provider's core network infrastructure to last-mile infrastructure.
(g) "Political subdivision" means any county, city, town, school district, special district or other political subdivision, or public corporation.
(h) "Underserved areas" means
areas of Minnesota in which households or businesses lack access to wire-line
broadband service at speeds that meet the state broadband goals of ten
to 20 at least 100 megabits per second download and five to ten
at least 20 megabits per second upload.
(i) "Unserved areas" means areas of Minnesota in which households or businesses lack access to wire-line broadband service, as defined in section 116J.39.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2014, section 116J.395, subdivision 4, is amended to read:
Subd. 4. Application process. (a) An eligible applicant must submit an application to the commissioner on a form prescribed by the commissioner. The commissioner shall develop administrative procedures governing the application and grant award process. The commissioner shall act as fiscal agent for the grant program and shall be responsible for receiving and reviewing grant applications and awarding grants under this section.
(b) At least 30 days prior to the first
day applications may be submitted each fiscal year, the commissioner must
publish on the department's Web site the specific criteria and any quantitative
weighting scheme or scoring system the commissioner will use to evaluate or
rank applications and award grants under subdivision 6.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 116J.395, subdivision 5, is amended to read:
Subd. 5. Application contents. An applicant for a grant under this section shall provide the following information on the application:
(1) the location of the project;
(2) the kind and amount of broadband infrastructure to be purchased for the project;
(3) evidence regarding the unserved or underserved nature of the community in which the project is to be located;
(4) the number of households passed that will have access to broadband service as a result of the project, or whose broadband service will be upgraded as a result of the project;
(5) significant community institutions that will benefit from the proposed project;
(6) evidence of community support for the project;
(7) the total cost of the project;
(8) sources of funding or in-kind
contributions for the project that will supplement any grant award; and
(9) evidence that no later than six
weeks before submission of the application the applicant contacted, in writing,
all entities providing broadband service in the proposed project area to ask
for each broadband service provider's plan to upgrade broadband service in the
project area to speeds that meet or exceed the state's broadband speed goals in
section 237.012, subdivision 1, within the time frame specified in the proposed
grant activities;
(10) the broadband service providers'
written responses to the inquiry made under clause (9); and
(11) any additional information requested by the commissioner.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision to read:
Subd. 5a. Challenge
process. (a) Within three
days of the close of the grant application process, the office shall publish on
its Web site the proposed geographic broadband service area and the proposed
broadband service speeds for each application submitted.
(b) An existing broadband service provider
in or proximate to the proposed project area may, within 30 days of publication
of the information under paragraph (a), submit in writing to the commissioner a
challenge to an application. A challenge
must contain information demonstrating that:
(1) the provider currently provides or
has begun construction to provide broadband service to the proposed project
area at speeds equal to or greater than the state speed goal contained in
section 237.012, subdivision 1; or
(2) the provider commits to complete
construction of broadband infrastructure and provide broadband service in the
proposed project area at speeds equal to or greater than the state speed goal
contained in section 237.012, subdivision 1, no later than 18 months after the
date grant awards are made under this section for the grant cycle under which
the application was submitted.
(c)
The commissioner must evaluate the information submitted in a provider's
challenge under this section, and is prohibited from funding a project if the
commissioner determines that the provider's commitment to provide broadband
service that meets the requirements of paragraph (b) in the proposed project
area is credible.
(d) If the commissioner denies funding to an applicant as a result of a broadband service provider's challenge made under this section, and the broadband service provider does not fulfill the provider's commitment to provide broadband service in the project area, the commissioner is prohibited from denying funding to an applicant as a result of a challenge by the same broadband service provider for the following two grant cycles, unless the commissioner determines that the broadband service provider's failure to fulfill the provider's commitment was the result of factors beyond the broadband service provider's control.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision to read:
Subd. 8. Application
evaluation report. By June 30
of each year, the Office of Broadband Development shall publish on the
Department of Employment and Economic Development's Web site and provide to the
chairs and ranking minority members of the senate and house of representatives
committees with primary jurisdiction over broadband a list of all applications
for grants under this section received during the previous year and, for each
application:
(1) the results of any quantitative
weighting scheme or scoring system the commissioner used to award grants or rank
the applications;
(2) the grant amount requested; and
(3) the grant amount awarded, if any.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
The initial report submission required under this section is due June
30, 2016.
Sec. 7. [116J.397]
UPDATED BROADBAND DEPLOYMENT DATA AND MAPS.
(a) Beginning in 2016 and continuing
each year thereafter, the Office of Broadband Development shall contract with
one or more independent organizations that have extensive experience working
with Minnesota broadband providers to:
(1) collect broadband deployment data
from Minnesota providers, verify its accuracy through on-the-ground testing,
and create state and county maps available to the public by April 15, 2017, and
each April 15 thereafter, showing the availability of broadband service at
various upload and download speeds throughout Minnesota;
(2) analyze the deployment data
collected to help inform future investments in broadband infrastructure; and
(3) conduct business and residential
surveys that measure broadband adoption and use in the state.
(b)
Data provided by a broadband provider under this section is nonpublic data
under section 13.02, subdivision 9.
Maps produced under this paragraph are public data under section 13.03.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. [116J.398]
BROADBAND PREVAILING WAGE EXEMPTION.
Notwithstanding any other law to the
contrary, section 116J.871 does not apply to a project receiving a grant under section
116J.395 for the construction, installation, remodeling, and repair of
last-mile infrastructure, as defined under section 116J.394, paragraph (e).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2014, section 237.012, is amended to read:
237.012
BROADBAND GOALS.
Subdivision 1. Universal
access and high-speed goal. It is a
state goal that as soon as possible, but no later than 2015, all state
residents and businesses have access to high-speed broadband that provides
minimum download speeds of ten to 20 megabits per second and minimum upload
speeds of five to ten megabits per second.:
(1) no later than 2022, all Minnesota
businesses and homes have access to high-speed broadband that provides minimum
download speeds of at least 25 megabits per second and minimum upload speeds of
at least three megabits per second; and
(2) no later than 2026, all Minnesota
businesses and homes have access to at least one provider of broadband with
download speeds of at least 100 megabits per second and upload speeds of at
least 20 megabits per second.
Subd. 2. State
broadband leadership position. It is
a goal of the state that by 2015 2022 and thereafter, the state
be in:
(1) the top five states of the United States for broadband speed universally accessible to residents and businesses;
(2) the top five states for broadband access; and
(3) the top 15 when compared to countries globally for broadband penetration.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
ARTICLE 6
ENERGY
Section 1. Minnesota Statutes 2014, section 115C.09, subdivision 1, is amended to read:
Subdivision 1. Reimbursable costs. (a) The board shall provide reimbursement to eligible applicants for reimbursable costs.
(b) The following costs are reimbursable for purposes of this chapter:
(1) corrective action costs incurred by
the applicant and documented in a form prescribed by the board, except the
costs related to the physical removal of a tank. Corrective action costs incurred by the
applicant include costs for physical removal of a tank when the physical
removal is part of a corrective action, regardless of whether the tank is
leaking at the time of removal, and the removal is directed or approved by the
commissioner;
(2) costs that the responsible person is legally obligated to pay as damages to third parties for bodily injury, property damage, or corrective action costs incurred by a third party caused by a release where the responsible person's liability for the costs has been established by a court order or court-approved settlement; and
(3) up to 180 days of interest costs associated with the financing of corrective action and incurred by the applicant in a written extension of credit or loan that has been signed by the applicant and executed after July 1, 2002, provided that the applicant documents that:
(i) the interest costs are incurred as a result of an extension of credit or loan from a financial institution; and
(ii) the board has not considered the application within the applicable time frame specified in subdivision 2a, paragraph (c).
Interest costs meeting the requirements of this clause are eligible only when they are incurred between the date a complete initial application is received by the board, or the date a complete supplemental application is received by the board, and the date that the board first notifies the applicant of its reimbursement determination. An application is complete when the information reasonably required or requested by the board's staff from the applicant has been received by the board's staff. Interest costs are not eligible for reimbursement to the extent they exceed two percentage points above the adjusted prime rate charged by banks, as defined in section 270C.40, subdivision 5, at the time the extension of credit or loan was executed.
(c) A cost for liability to a third party is incurred by the responsible person when an order or court-approved settlement is entered that sets forth the specific costs attributed to the liability. Except as provided in this paragraph, reimbursement may not be made for costs of liability to third parties until all eligible corrective action costs have been reimbursed. If a corrective action is expected to continue in operation for more than one year after it has been fully constructed or installed, the board may estimate the future expense of completing the corrective action and, after subtracting this estimate from the total reimbursement available under subdivision 3, reimburse the costs for liability to third parties. The total reimbursement may not exceed the limit set forth in subdivision 3.
Sec. 2. Minnesota Statutes 2014, section 115C.09, subdivision 3, is amended to read:
Subd. 3. Reimbursements; subrogation; appropriation. (a) The board shall reimburse an eligible applicant from the fund for 90 percent of the total reimbursable costs incurred at the site, except that the board may reimburse an eligible applicant from the fund for greater than 90 percent of the total reimbursable costs, if the applicant previously qualified for a higher reimbursement rate. For costs associated with a release from a tank in transport, the board may reimburse a maximum of $100,000.
Not more than $1,000,000 may be reimbursed
for costs associated with a single release, regardless of the number of persons
eligible for reimbursement, and not more than $2,000,000 may be reimbursed
for costs associated with a single tank facility release.
(b) A reimbursement may not be made from the fund under this chapter until the board has determined that the costs for which reimbursement is requested were actually incurred and were reasonable.
(c) When an applicant has obtained responsible competitive bids or proposals according to rules promulgated under this chapter prior to June 1, 1995, the eligible costs for the tasks, procedures, services, materials, equipment, and tests of the low bid or proposal are presumed to be reasonable by the board, unless the costs of the low bid or proposal are substantially in excess of the average costs charged for similar tasks, procedures, services, materials, equipment, and tests in the same geographical area during the same time period.
(d)
When an applicant has obtained a minimum of two responsible competitive bids or
proposals on forms prescribed by the board and where the rules promulgated
adopted under this chapter after June 1, 1995, designate maximum costs
for specific tasks, procedures, services, materials, equipment and tests, the
eligible costs of the low bid or proposal are deemed reasonable if the costs
are at or below the maximums set forth in the rules.
(e) Costs incurred for change orders
executed as prescribed in rules promulgated adopted under this
chapter after June 1, 1995, are presumed reasonable if the costs are at or
below the maximums set forth in the rules, unless the costs in the change order
are above those in the original bid or proposal or are unsubstantiated and
inconsistent with the process and standards required by the rules.
(f) A reimbursement may not be made from the fund in response to either an initial or supplemental application for costs incurred after June 4, 1987, that are payable under an applicable insurance policy, except that if the board finds that the applicant has made reasonable efforts to collect from an insurer and failed, the board shall reimburse the applicant.
(g) If the board reimburses an applicant for costs for which the applicant has insurance coverage, the board is subrogated to the rights of the applicant with respect to that insurance coverage, to the extent of the reimbursement by the board. The board may request the attorney general to bring an action in district court against the insurer to enforce the board's subrogation rights. Acceptance by an applicant of reimbursement constitutes an assignment by the applicant to the board of any rights of the applicant with respect to any insurance coverage applicable to the costs that are reimbursed. Notwithstanding this paragraph, the board may instead request a return of the reimbursement under subdivision 5 and may employ against the applicant the remedies provided in that subdivision, except where the board has knowingly provided reimbursement because the applicant was denied coverage by the insurer.
(h) Money in the fund is appropriated to the board to make reimbursements under this chapter. A reimbursement to a state agency must be credited to the appropriation account or accounts from which the reimbursed costs were paid.
(i) The board may reduce the amount of reimbursement to be made under this chapter if it finds that the applicant has not complied with a provision of this chapter, a rule or order issued under this chapter, or one or more of the following requirements:
(1) the agency was given notice of the release as required by section 115.061;
(2) the applicant, to the extent possible, fully cooperated with the agency in responding to the release;
(3) the state rules applicable after December 22, 1993, to operating an underground storage tank and appurtenances without leak detection;
(4) the state rules applicable after December 22, 1998, to operating an underground storage tank and appurtenances without corrosion protection or spill and overfill protection; and
(5) the state rule applicable after November 1, 1998, to operating an aboveground tank without a dike or other structure that would contain a spill at the aboveground tank site.
(j) The reimbursement may be reduced as much as 100 percent for failure by the applicant to comply with the requirements in paragraph (i), clauses (1) to (5). In determining the amount of the reimbursement reduction, the board shall consider:
(1) the reasonable determination by the agency that the noncompliance poses a threat to the environment;
(2) whether the noncompliance was negligent, knowing, or willful;
(3) the deterrent effect of the award reduction on other tank owners and operators;
(4) the amount of reimbursement reduction recommended by the commissioner; and
(5) the documentation of noncompliance provided by the commissioner.
(k) An applicant may request that the board issue a multiparty check that includes each lender who advanced funds to pay the costs of the corrective action or to each contractor or consultant who provided corrective action services. This request must be made by filing with the board a document, in a form prescribed by the board, indicating the identity of the applicant, the identity of the lender, contractor, or consultant, the dollar amount, and the location of the corrective action. The applicant must submit a request for the issuance of a multiparty check for each application submitted to the board. Payment under this paragraph does not constitute the assignment of the applicant's right to reimbursement to the consultant, contractor, or lender. The board has no liability to an applicant for a payment issued as a multiparty check that meets the requirements of this paragraph.
Sec. 3. Minnesota Statutes 2014, section 115C.13, is amended to read:
115C.13
REPEALER.
Sections 115C.01, 115C.02, 115C.021,
115C.03, 115C.04, 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08,
115C.09, 115C.093, 115C.094, 115C.10, 115C.11, 115C.112, 115C.113, 115C.12, and
115C.13, are repealed effective June 30, 2017 2022.
Sec. 4. Minnesota Statutes 2014, section 216B.16, subdivision 12, is amended to read:
Subd. 12. Exemption
for small gas utility franchise. (a)
A municipality may file with the commission a resolution of its governing body
requesting exemption from the provisions of this section for a public utility
that is under a franchise with the municipality to supply natural,
manufactured, or mixed gas and that serves 650 or fewer customers in the
municipality as long as the public utility serves no more than a total of 2,000
5,000 customers.
(b) The commission shall grant an exemption from this section for that portion of a public utility's business that is requested by each municipality it serves. Furthermore, the commission shall also grant the public utility an exemption from this section for any service provided outside of a municipality's border that is considered by the commission to be incidental. The public utility shall file with the commission and the department all initial and subsequent changes in rates, tariffs, and contracts for service outside the municipality at least 30 days in advance of implementation.
(c) However, the commission shall require the utility to adopt the commission's policies and procedures governing disconnection during cold weather. The utility shall annually submit a copy of its municipally approved rates to the commission.
(d) In all cases covered by this subdivision in which an exemption for service outside of a municipality is granted, the commission may initiate an investigation under section 216B.17, on its own motion or upon complaint from a customer.
(e) If a municipality files with the commission a resolution of its governing body rescinding the request for exemption, the commission shall regulate the public utility's business in that municipality under this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. [216B.1647]
PROPERTY TAX ADJUSTMENT; COOPERATIVE ASSOCIATION.
A cooperative electric association that
has elected to be subject to rate regulation under section 216B.026 is eligible
to file with the commission for approval an adjustment for real and personal
property taxes, fees, and permits.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2014, section 216B.1691, subdivision 10, is amended to read:
Subd. 10. Utility
acquisition of resources. A
competitive resource acquisition process established by the commission prior to
June 1, 2007, shall not apply to a utility for the construction, ownership, and
operation of generation facilities used to satisfy the requirements of this
section unless, upon a finding that it is in the public interest, the
commission issues an order on or after June 1, 2007, that requires compliance
by a utility with a competitive resource acquisition process. A utility that owns a nuclear generation
facility and intends to construct, own, or operate facilities under this
section shall file with the commission on or before March 1, 2008, a renewable
energy plan setting forth the manner in which the utility proposes to meet the
requirements of this section, including a proposed schedule for purchasing
renewable energy from C-BED and non-C-BED projects. The utility shall update the plan as necessary
in its filing under section 216B.2422.
The commission shall approve the plan unless it determines, after public
hearing and comment, that the plan is not in the public interest. As part of its determination of public
interest, the commission shall consider the plan's allocation of projects
among C-BED, non-C-BED, and utility-owned projects, impact on
balancing the state's interest in:
(1) promoting the policy of economic development in rural areas through the development of renewable energy projects, as expressed in subdivision 9;
(2) maintaining the reliability of the state's electric power grid; and
(3) minimizing cost impacts on ratepayers.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2014, section 216B.241, subdivision 1c, is amended to read:
Subd. 1c. Energy-saving goals. (a) The commissioner shall establish energy-saving goals for energy conservation improvement expenditures and shall evaluate an energy conservation improvement program on how well it meets the goals set.
(b) Each individual utility and association shall have an annual energy-savings goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the commissioner under paragraph (d). The savings goals must be calculated based on the most recent three-year weather-normalized average. A utility or association may elect to carry forward energy savings in excess of 1.5 percent for a year to the succeeding three calendar years, except that savings from electric utility infrastructure projects allowed under paragraph (d) may be carried forward for five years. A particular energy savings can be used only for one year's goal.
(c) The commissioner must adopt a filing schedule that is designed to have all utilities and associations operating under an energy-savings plan by calendar year 2010.
(d) In its energy conservation improvement plan filing, a utility or association may request the commissioner to adjust its annual energy-savings percentage goal based on its historical conservation investment experience, customer class makeup, load growth, a conservation potential study, or other factors the commissioner determines
warrants an adjustment. The commissioner may not approve a plan of a public utility that provides for an annual energy-savings goal of less than one percent of gross annual retail energy sales from energy conservation improvements.
A utility or association may include in its energy conservation plan energy savings from electric utility infrastructure projects approved by the commission under section 216B.1636 or waste heat recovery converted into electricity projects that may count as energy savings in addition to a minimum energy-savings goal of at least one percent for energy conservation improvements. Energy savings from electric utility infrastructure projects, as defined in section 216B.1636, may be included in the energy conservation plan of a municipal utility or cooperative electric association. Electric utility infrastructure projects must result in increased energy efficiency greater than that which would have occurred through normal maintenance activity.
(e) An energy-savings goal is not satisfied by attaining the revenue expenditure requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the energy-savings goal established in this subdivision.
(f) An association or utility is not required to make energy conservation investments to attain the energy-savings goals of this subdivision that are not cost-effective even if the investment is necessary to attain the energy-savings goals. For the purpose of this paragraph, in determining cost-effectiveness, the commissioner shall consider the costs and benefits to ratepayers, the utility, participants, and society. In addition, the commissioner shall consider the rate at which an association or municipal utility is increasing its energy savings and its expenditures on energy conservation.
(g) On an annual basis, the commissioner shall produce and make publicly available a report on the annual energy savings and estimated carbon dioxide reductions achieved by the energy conservation improvement programs for the two most recent years for which data is available. The commissioner shall report on program performance both in the aggregate and for each entity filing an energy conservation improvement plan for approval or review by the commissioner.
(h) By January 15, 2010, the commissioner shall report to the legislature whether the spending requirements under subdivisions 1a and 1b are necessary to achieve the energy-savings goals established in this subdivision.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2014, section 216B.243, subdivision 8, is amended to read:
Subd. 8. Exemptions. (a) This section does not apply to:
(1) cogeneration or small power production facilities as defined in the Federal Power Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and paragraph (18), subparagraph (A), and having a combined capacity at a single site of less than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or any case where the commission has determined after being advised by the attorney general that its application has been preempted by federal law;
(2) a high-voltage transmission line proposed primarily to distribute electricity to serve the demand of a single customer at a single location, unless the applicant opts to request that the commission determine need under this section or section 216B.2425;
(3) the upgrade to a higher voltage of an existing transmission line that serves the demand of a single customer that primarily uses existing rights-of-way, unless the applicant opts to request that the commission determine need under this section or section 216B.2425;
(4) a high-voltage transmission line of one mile or less required to connect a new or upgraded substation to an existing, new, or upgraded high-voltage transmission line;
(5) conversion of the fuel source of an existing electric generating plant to using natural gas;
(6) the modification of an existing
electric generating plant to increase efficiency, as long as the capacity of
the plant is not increased more than ten percent or more than 100 megawatts,
whichever is greater; or
(7) a wind energy conversion system or
solar electric generation facility if the system or facility is owned and
operated by an independent power producer and the electric output of the system
or facility is not sold to an entity that provides retail service in Minnesota
or wholesale electric service to another entity in Minnesota other than an
entity that is a federally recognized regional transmission organization or
independent system operator; or
(8) a
large wind energy conversion system, as defined in section 216F.01, subdivision
2, or a solar energy generating large energy facility, as defined in section
216B.2421, subdivision 2, engaging in a repowering project that:
(i) will not result in the facility
exceeding the nameplate capacity under its most recent interconnection
agreement; or
(ii) will result in the facility exceeding the nameplate capacity under its most recent interconnection agreement, provided that the Midcontinent Independent System Operator has provided a signed generator interconnection agreement that reflects the expected net power increase.
(b) For the purpose of this subdivision,
"repowering project" means:
(1) modifying a large wind energy
conversion system or a solar energy generating large energy facility to
increase its efficiency without increasing its nameplate capacity;
(2) replacing turbines in a large wind
energy conversion system without increasing the nameplate capacity of the
system; or
(3) increasing the nameplate capacity of
a large wind energy conversion system.
Sec. 9. Minnesota Statutes 2014, section 216C.20, subdivision 3, is amended to read:
Subd. 3. Parking
ramp. No enclosed structure or
portion of an enclosed structure constructed after January 1, 1978, and used
primarily as a commercial parking facility for three or more motor vehicles
shall be heated. Incidental heating
resulting from building exhaust air passing through a parking facility shall
not be prohibited, provided that substantially all useful heat has previously
been removed from the air. The
commissioner of commerce may grant an exemption from this subdivision if the
commercial parking is integrated within a facility that has both public and
private uses, the benefits of the exemption to taxpayers exceed the costs, and
all appropriate energy efficiency measures have been considered.
Sec. 10. Minnesota Statutes 2014, section 216E.03, subdivision 5, is amended to read:
Subd. 5. Environmental review. (a) The commissioner of the Department of Commerce shall prepare for the commission an environmental impact statement on each proposed large electric generating plant or high-voltage transmission line for which a complete application has been submitted. The commissioner shall not consider whether or not the project is needed. No other state environmental review documents shall be required. The commissioner shall study and evaluate any site or route proposed by an applicant and any other site or route the commission deems necessary that was proposed in a manner consistent with rules concerning the form, content, and timeliness of proposals for alternate sites or routes.
(b)
For a cogeneration facility as defined in section 216H.01, subdivision 1a, that
is a large electric power generating plant and is not proposed by a utility,
the commissioner must make a finding in the environmental impact statement
whether the project is likely to result in a net reduction of carbon dioxide
emissions, considering both the utility providing electric service to the
proposed cogeneration facility and any reduction in carbon dioxide emissions as
a result of increased efficiency from the production of thermal energy on the
part of the customer operating or owning the proposed cogeneration facility.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2014, section 216H.01, is amended by adding a subdivision to read:
Subd. 1a. Cogeneration
facility or combined heat and power facility. "Cogeneration facility" or
"combined heat and power facility" means a facility that:
(1) has the meaning given in United
States Code, title 16, section 796, clause (18), paragraph (A); and
(2) meets the applicable operating and
efficiency standards contained in Code of Federal Regulations, title 18, part
292.205.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2014, section 216H.03, subdivision 1, is amended to read:
Subdivision 1. Definition; new large energy facility. For the purpose of this section, "new large energy facility" means a large energy facility, as defined in section 216B.2421, subdivision 2, clause (1), that is not in operation as of January 1, 2007, but does not include a facility that (1) uses natural gas as a primary fuel, (2) is a cogeneration facility or combined heat and power facility located in the electric service area of a public utility, as defined in section 216B.02, subdivision 4, or is designed to provide peaking, intermediate, emergency backup, or contingency services, (3) uses a simple cycle or combined cycle turbine technology, and (4) is capable of achieving full load operations within 45 minutes of startup for a simple cycle facility, or is capable of achieving minimum load operations within 185 minutes of startup for a combined cycle facility.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2014, section 373.48, subdivision 3, is amended to read:
Subd. 3. Joint
purchase of energy and acquisition of generation projects; financing. (a) A county may enter into agreements
under section 471.59 with other counties for joint purchase of energy or joint
acquisition of interests in projects. A
county that enters into a multiyear agreement for purchase of energy or
acquires an interest in a project, including C-BED projects pursuant to
section 216B.1612, subdivision 9, may finance the estimated cost of the
energy to be purchased during the term of the agreement or the cost to the
county of the interest in the project by the issuance of revenue bonds of the
county, including clean renewable energy revenue bonds, provided that the
annual debt service on all bonds issued under this section, together with the
amounts to be paid by the county in any year for the purchase of energy under
agreements entered into under this section, must not exceed the estimated
revenues of the project.
(b) An agreement entered into under section 471.59 as provided by this section may provide that:
(1) each county issues bonds to pay their respective shares of the cost of the projects;
(2) one of the counties issues bonds to pay the full costs of the project and that the other participating counties pay any available revenues of the project and pledge the revenues to the county that issues the bonds; or
(3) the joint powers board issues revenue bonds to pay the full costs of the project and that the participating counties pay any available revenues of the project under this subdivision and pledge the revenues to the joint powers entity for payment of the revenue bonds.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. Laws 2001, chapter 130, section 3, is amended to read:
Sec. 3. ASSESSMENT.
A propane education and research council,
established and certified pursuant to section 2, may assess propane producers
and retail marketers an amount not to exceed one mill the maximum
assessment authorized in United States Code, title 15, section 6405(a), per
gallon of odorized propane in a manner established by the council in compliance
with United States Code, title 15, section 6405, subsections (a) to (c). Propane producers and retail marketers shall
be responsible for the amounts assessed.
Sec. 15. Laws 2014, chapter 198, article 2, section 2, the effective date, is amended to read:
EFFECTIVE
DATE; APPLICATION. This section is
effective July 1, 2015 January 1, 2016, and applies to
applications for reimbursement on or after that date.
EFFECTIVE
DATE. This section is
effective retroactively from May 5, 2014.
Sec. 16. REPEALER.
Minnesota Statutes 2014, sections
216B.1612; and 216C.39, are repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 7
ECONOMIC DEVELOPMENT
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Section 1. APPROPRIATIONS
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The sums shown in the columns under
"Appropriations" are added to or, if shown in parentheses, subtracted
from the appropriations in Laws 2015, First Special Session, chapter 1, or
other law to the specified agencies. The
appropriations are from the general fund, or another named fund, and are
available for the fiscal years indicated for each purpose. The figures "2016" and
"2017" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2016, or June 30, 2017,
respectively. Appropriations for the
fiscal year ending June 30, 2016, are effective the day following final
enactment. Reductions may be taken in
either fiscal year.
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APPROPRIATIONS |
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Available for the Year |
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Ending June 30 |
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2016 |
2017 |
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Sec. 2. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT |
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The amounts that may be spent for each
purpose are specified in the following subdivisions.
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Subd. 2. Business
and Community Development |
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-0-
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8,021,000
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Appropriations
by Fund |
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General |
-0-
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7,271,000
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Workforce Development |
-0-
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750,000
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(a) $9,000,000 in fiscal year 2017 is a
onetime reduction in the general fund appropriation for the Minnesota
investment fund under Minnesota Statutes, section 116J.8731. The base funding for this purpose is $11,000,000
in fiscal year 2018 and each fiscal year thereafter.
(b) $11,500,000 in fiscal year 2017 is a
onetime reduction in the general fund appropriation for the Minnesota job
creation fund under Minnesota Statutes, section 116J.8748. The base funding for this program is
$6,500,000 in fiscal year 2018 and each fiscal year thereafter.
(c) $2,000,000 in fiscal year 2017 is for
the redevelopment program under Minnesota Statutes, section 116J.571. This is a onetime appropriation.
(d) $1,220,000 in fiscal year 2017 is for
a grant to the Duluth North Shore Sanitary District to retire debt of the
district in order to bring the district's monthly wastewater rates in line with
those of similarly situated facilities across the state. This is a onetime appropriation.
(e) $300,000 in fiscal year 2017 is from
the workforce development fund for expansion of business assistance services
provided by business development specialists located in the Northwest Region,
Northeast Region, West Central Region, Southwest Region, Southeast Region, and
Twin Cites Metro Region offices established throughout the state. Funds under this section may be used to
provide services including, but not limited to, business start-ups; expansion;
location or relocation; finance; regulatory and permitting assistance; and
other services determined by the commissioner.
The commissioner may also use funds under this section to increase the
number of business development specialists in each region of the state,
increase and expand the services provided through each regional office, and
publicize the services available and provide outreach to communities in each
region
regarding services and assistance available through the business development
specialist program. This is a onetime
appropriation.
(f) $50,000 in fiscal year 2017 is from the
workforce development fund to enhance the outreach and public awareness
activities of the Bureau of Small Business under Minnesota Statutes, section
116J.68. This is a onetime
appropriation.
(g) $100,000 in fiscal year 2017 is from
the general fund for an easy-to-understand manual to instruct aspiring business
owners in how to start a child care business.
The commissioner shall work in consultation with relevant state and local
agencies and affected stakeholders to produce the manual. The manual must be made available
electronically to interested persons.
This is a onetime appropriation and is available until June 30, 2019.
(h) $2,500,000 in fiscal year 2017 is for
grants to initiative foundations to provide financing for business startups,
expansions, and maintenance; and for business ownership transition and
succession. This is a onetime
appropriation. Of the amount
appropriated:
(1) $357,000 is for a grant to the
Southwest Initiative Foundation;
(2) $357,000 is for a grant to the West
Central Initiative Foundation;
(3) $357,000 is for a grant to the Southern
Minnesota Initiative Foundation;
(4) $357,000 is for a grant to the
Northwest Minnesota Foundation;
(5) $357,000 is for a grant to the
Initiative Foundation;
(6) $357,000 is for a grant to the
Northland Foundation; and
(7) $357,000 is for a grant for the
Minnesota emerging entrepreneur program under Minnesota Statutes, chapter
116M. Funds available under this clause
must be allocated as follows:
(i) 50 percent of the funds must be
allocated for projects in the counties of Dakota, Ramsey, and Washington; and
(ii) 50 percent of the funds must be
allocated for projects in the counties of Anoka, Carver, Hennepin, and Scott.
(i) $600,000 in fiscal year 2017 is for a
grant to a city of the second class that is designated as an economically
depressed area by the United States Department of Commerce for economic
development, redevelopment, and job creation programs and projects. This is a onetime appropriation and is
available until June 30, 2019.
(j)
$4,500,000 in fiscal year 2017 is for a grant to the Minnesota Film and TV
Board for the film production jobs program under Minnesota Statutes, section
116U.26. This appropriation is in
addition to the appropriation in Laws 2015, First Special Session chapter 1,
article 1, section 2, subdivision 2.
This is a onetime appropriation.
(k) $3,651,000 in fiscal year 2017 is from
the general fund for a grant to Mille Lacs County to develop and operate the
Lake Mille Lacs area economic relief program established in section 45. This is a onetime appropriation.
(l) $500,000 in fiscal year 2017 is from
the general fund for grants to local communities outside of the metropolitan
area as defined under Minnesota Statutes, section 473.121, subdivision 2, to
increase the supply of quality child care providers in order to support
regional economic development. Grant
recipients must match state funds on a dollar-for-dollar basis. Grant funds available under this section must
be used to implement solutions to reduce the child care shortage in the state,
including but not limited to funding for child care business start-up or
expansion, training, facility modifications or improvements required for
licensing, and assistance with licensing and other regulatory
requirements. In awarding grants, the
commissioner must give priority to communities in greater Minnesota that have
documented a shortage of child care providers in the area. This is a onetime appropriation and is available
until June 30, 2019.
By September 30, 2017, grant recipients
must report to the commissioner on the outcomes of the grant program, including
but not limited to the number of new providers, the number of additional child
care provider jobs created, the number of additional child care slots, and the
amount of local funds invested.
By January 1, 2018, the commissioner must
report to the standing committees of the legislature having jurisdiction over
child care and economic development on the outcomes of the program to date.
(m) $100,000 in fiscal year 2017 is from
the general fund for a grant to the city of Madelia to provide match funding
for a federal Economic Development Agency technical assistance grant. This is a onetime appropriation.
(n) $10,000,000 in fiscal year 2017 is for
deposit in the Minnesota 21st century fund.
This is a onetime appropriation.
(o) $400,000 in fiscal year 2017 is from
the workforce development fund for grants to small business development centers
under Minnesota Statutes, section 116J.68.
Funds made available under this section may be used to match funds under
the federal
Small
Business Development Center (SBDC) program under United States Code, title 15,
section 648, provide consulting and technical services, or to build additional
SBDC network capacity to serve entrepreneurs and small businesses. The commissioner shall allocate funds equally
among the nine regional centers and lead center. This is a onetime appropriation.
(p) $2,600,000 in fiscal year 2017 is for
a transfer to the Board of Regents of the University of Minnesota for academic
and applied research through MnDRIVE at the Natural Resources Research
Institute to develop new technologies that enhance the long-term viability of
the Minnesota mining industry. The
research must be done in consultation with the Mineral Coordinating Committee
established by Minnesota Statutes, section 93.0015. This is a onetime transfer.
(q) Of the amount appropriated in fiscal
year 2017 for the Minnesota Investment Fund in Laws 2015, First Special Session
chapter 1, article 1, section 2, subdivision 2, paragraph (a), $450,000 is for
a grant to the Lake Superior-Poplar River Water District to acquire interests
in real property, engineer, design, permit, and construct infrastructure to
transport and treat water from Lake Superior through the Poplar River Valley to
serve domestic, irrigation, commercial, stock watering, and industrial water
users. This grant does not require a
local match. This is a onetime appropriation. This amount is available until June 30, 2019.
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Subd. 3. Workforce
Development |
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-0-
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1,900,000
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This appropriation is from the workforce
development fund.
(a) $500,000 in fiscal year 2017 is from
the workforce development fund for rural career counseling coordinators in the
workforce service areas and for the purposes specified in Minnesota Statutes,
section 116L.667. This appropriation is
for increases to existing applicants who were awarded grants in fiscal years
2016 and 2017.
(b) $500,000 in fiscal year 2017 is from
the workforce development fund for a grant to Occupational Development
Corporation, Inc. in the city of Buhl to provide training and employment
opportunities for people with disabilities and disadvantaged workers. This is a onetime appropriation.
(c) $400,000 in fiscal year 2017 is from
the workforce development fund for a grant to Northern Bedrock Historic
Preservation Corps for the pathway to the preservation trades program for
recruitment of corps members, engagement of technical specialists, development
of a certificate program, and skill development in historic preservation for
youth ages 18 to 25. This is a onetime
appropriation.
(d)
$500,000 in fiscal year 2017 is from the workforce development fund for a grant
to the North East Higher Education District to purchase equipment for training
programs due to increased demand for job training under the state dislocated
worker program. This is a onetime
appropriation and is available until June 30, 2018.
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Subd. 4. Vocational
rehabilitation |
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-0-
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1,800,000
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This appropriation is from the workforce
development fund.
(a) $800,000 in fiscal year 2017 is from
the workforce development fund for grants to day training and habilitation
providers to provide innovative employment options and to advance community
integration for persons with disabilities as required under the Minnesota
Olmstead Plan. Eligible day training and
habilitation providers are those who certify that they do not possess a
certification as provided by section 14(c) of the Fair Labor Standards
Act. Of this amount, $250,000 is for a
pilot program for home-based, technology-enhanced monitoring of persons with
disabilities. This is a onetime
appropriation and is available until June 30, 2018.
(b) $1,000,000 in fiscal year 2017 is from
the workforce development fund for rate increases to providers of extended
employment services for persons with severe disabilities under Minnesota
Statutes, section 268A.15. This is a
onetime appropriation.
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Sec. 3. DEPARTMENT
OF LABOR AND INDUSTRY |
$-0- |
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$350,000 |
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Appropriations
by Fund |
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General |
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100,000
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Workforce Development |
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250,000
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(a) $250,000 in fiscal year 2017 is from
the workforce development fund for the apprenticeship program under Minnesota Statutes,
chapter 178. This amount is added to the
base appropriation for this purpose.
(b) $100,000 in fiscal year 2017 is to
provide outreach and education concerning requirements under state or federal
law governing removal of architectural barriers that limit access to public
accommodations by persons with disabilities and resources that are available to
comply with those requirements. This is
a onetime appropriation.
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Sec. 4. EXPLORE
MINNESOTA TOURISM |
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$-0- |
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$1,073,000 |
(a) $300,000 in fiscal year 2017 is for a
grant to the Mille Lacs Tourism Council to enhance marketing activities related
to tourism promotion in the Mille Lacs Lake area. This is a onetime appropriation.
(b) $773,000 in fiscal year 2017 is to
establish a pilot project to assist in funding and securing major events
benefiting communities throughout the state.
The pilot project must measure the economic impact of visitors on state
and local economies, increased lodging and nonlodging sales taxes in addition
to visitor spending, and increased media awareness of the state as an event
destination. This is a onetime
appropriation. Of this amount, $100,000
is for a grant to the St. Louis County Historical Society for a project,
in collaboration with the Erie Mining history book project team, to research,
document, publish, preserve, and exhibit the history of taconite mining in
Minnesota.
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Sec. 5. HOUSING
FINANCE AGENCY |
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$-0- |
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$1,750,000 |
(a) $500,000 in fiscal year 2017 is to
establish a grant program within the housing trust fund for the exploited
families rental assistance program. This
is a onetime appropriation and is available until June 30, 2019.
(b) $500,000 in fiscal year 2017 is for a
competitive grant program to fund a housing project or projects in a community
or communities: (1) that have low
housing vacancy rates; and (2) that have an education and training center for
jobs in agriculture, farm business management, health care fields, or other
fields with anticipated significant job growth potential. A grant or grants must be no more than 50
percent of the total development costs for the project. Funds for a grant or grants made in this
section must be to a housing project or projects that have financial and
in-kind contributions from nonagency sources that when combined with a grant
under this section are sufficient to complete the housing project. Funds must be used to create new housing
units either through new construction or through acquisition and rehabilitation
of a building or buildings not currently used for housing. If funds remain uncommitted at the end of
fiscal year 2017, the agency may transfer the uncommitted funds to the housing
development fund and use the funds for the economic development and housing
challenge program under Minnesota Statutes, section 462A.33. This is a onetime appropriation.
(c) $750,000 in fiscal year 2017 is for
the Workforce and Affordable Homeownership Development Program under Minnesota
Statutes, section 462A.38. This is a
onetime appropriation and is available until June 30, 2019.
|
Sec. 6. COMMERCE
|
|
$-0- |
|
$1,332,000 |
(a) $832,000 in fiscal year 2017 is for
energy regulation and planning unit staff.
(b) $500,000 in fiscal year 2017 is for
additional actuarial work to prepare for implementation of principle-based reserves. This appropriation is contingent on enactment
of 2016 HF No. 3384. The base
appropriation for this purpose is $412,000.
|
Sec. 7. PUBLIC
UTILITIES COMMISSION |
|
$225,000 |
|
$577,000 |
The amounts appropriated are in addition
to those appropriated in Laws 2015, First Special Session chapter 1. The base amount for fiscal year 2018 and
thereafter is $514,000.
Sec. 8. Laws 2014, chapter 312, article 2, section 14, is amended to read:
Sec. 14. ASSIGNED
RISK TRANSFER.
(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1). This is a onetime transfer.
(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year, to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1), but after the transfer authorized in paragraph (a). The total amount authorized for all transfers under this paragraph must not exceed $24,100,000. This paragraph expires the day following the transfer in which the total amount transferred under this paragraph to the Minnesota minerals 21st century fund equals $24,100,000.
(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a transfer occurs under this paragraph, the amount transferred is appropriated from the general fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section 15. Both the transfer and appropriation under this paragraph are onetime.
(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a transfer occurs under this paragraph, the amount transferred is appropriated from the general fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section 15. Both the transfer and appropriation under this paragraph are onetime.
(e)
Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of
management and budget shall transfer to the assigned risk plan under
Minnesota Statutes, section 79.252 general fund, any unencumbered or
unexpended balance of the appropriations under paragraphs (c) and (d) remaining
on June 30, 2017 2016, or the date the commissioner of commerce
determines that an excess surplus in the assigned risk plan does not exist,
whichever occurs earlier.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Laws 2014, chapter 312, article 2, section 15, is amended to read:
Sec. 15. WORKERS'
COMPENSATION SYSTEM REFORM; USE OF FUNDS.
(a) The appropriations under section 14 to the commissioner of labor and industry are for reform of the workers' compensation system. Funds appropriated under section 14, paragraphs (c) and (d), may be expended by the commissioner only after the advisory council on workers' compensation created under Minnesota Statutes, section 175.007, has approved a new system including, but not limited to: a Medicare-based diagnosis-related group (MS‑DRG) or similar system for payment of workers' compensation inpatient hospital services. Of the amount appropriated under section 14, paragraphs (c) and (d), up to $100,000 may be used by the commissioner to develop and implement the new system approved by the advisory council on workers' compensation.
(b) Funds available for expenditure under paragraph (a) may be used by the commissioner for reimbursement of expenditures that are reasonable and necessary to defray the costs of the implementation by hospitals, insurers, and self-insured employers of the new system including, but not limited to: a Medicare-based diagnosis-related group (MS-DRG) or similar system for payment of workers' compensation inpatient hospital services, litigation expense reform, worker safety training, administrative costs, or other related system reform.
(c) For the purposes of this section, reasonable and necessary system reform and implementation costs include, but are not limited to:
(1) the cost of analyzing data to determine the anticipated costs and savings of implementing the new system;
(2) the cost of analyzing system or organizational changes necessary for implementation;
(3) the cost of determining how an organization would implement group or other software;
(4) the cost of upgrading existing software or purchasing new software and other technology upgrades needed for implementation;
(5) the cost of educating and training staff about the new system as applied to workers' compensation; and
(6) the cost of integrating the new system with electronic billing and remittance systems.
(d) This section expires June 30, 2016.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 3, is amended to read:
|
Subd. 3. Workforce
Development |
|
|
|
|
|
Appropriations by Fund |
||
|
General |
2,189,000 |
1,789,000 |
|
Workforce Development |
17,567,000 |
16,767,000 |
(a) $1,039,000 each year from the general fund and $3,104,000 each year from the workforce development fund are for the adult workforce development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the adult workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year.
(b) $4,050,000 each year is from the workforce development fund for the Minnesota youth program under Minnesota Statutes, sections 116L.56 and 116L.561, to provide employment and career advising to youth, including career guidance in secondary schools, to address the youth career advising deficiency, to carry out activities outlined in Minnesota Statutes, section 116L.561, to provide support services, and to provide work experience to youth in the workforce service areas. The funds in this paragraph may be used for expansion of the pilot program combining career and higher education advising in Laws 2013, chapter 85, article 3, section 27. Activities in workforce services areas under this paragraph may serve all youth up to age 24.
(c) $1,000,000 each year is from the workforce development fund for the youthbuild program under Minnesota Statutes, sections 116L.361 to 116L.366.
(d) $450,000 each year is from the workforce development fund for a grant to Minnesota Diversified Industries, Inc., to provide progressive development and employment opportunities for people with disabilities.
(e) $3,348,000 each year is from the workforce development fund for the "Youth at Work" youth workforce development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the youth workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year.
(f) $500,000 each year is from the workforce development fund for the Opportunities Industrialization Center programs.
(g) $750,000 each year is from the workforce development fund for a grant to the Minnesota Alliance of Boys and Girls Clubs to administer a statewide project of youth jobs skills development. This project, which may have career guidance components, including health and life skills, is to encourage, train, and assist youth in job-seeking skills, workplace orientation, and job-site knowledge through coaching. This grant requires a 25 percent match from nonstate resources.
(h) $250,000 the first year and $250,000 the second year are for pilot programs in the workforce service areas to combine career and higher education advising.
(i) $215,000 each year is from the workforce development fund for a grant to Big Brothers, Big Sisters of the Greater Twin Cities for workforce readiness, employment exploration, and skills development for youth ages 12 to 21. The grant must serve youth in the Twin Cities, Central Minnesota and Southern Minnesota Big Brothers, Big Sisters chapters.
(j) $900,000 in fiscal year 2016 and $1,100,000 in fiscal year 2017 are from the workforce development fund for a grant to the Minnesota High Tech Association to support SciTechsperience, a program that supports science, technology, engineering, and math (STEM) internship opportunities for two- and four-year college students in their field of study. The internship opportunities must match students with paid internships within STEM disciplines at small, for-profit companies located in the seven-county metropolitan area, having fewer than 150 total employees; or at small or medium, for-profit companies located outside of the seven-county metropolitan area, having fewer than 250 total employees. At least 200 students must be matched in the first year and at least 250 students must be matched in the second year. Selected hiring companies shall receive from the grant 50 percent of the wages paid to the intern, capped at $2,500 per intern. The program must work toward increasing the participation among women or other underserved populations.
(k) $50,000 each year is from the workforce
development fund for a grant to the St. Cloud Area Somali Salvation
Youth Organization for youth development and crime prevention
activities. Grant funds may be used to
train and place mentors in elementary and secondary schools; for athletic,
social, and other activities to foster leadership development; to provide a
safe place for participating youth to gather after school, on weekends, and on
holidays; and activities to improve the organizational and job readiness skills
of participating youth. This is a
onetime appropriation and is available until June 30, 2019. Funds appropriated the first year are
available for use in the second year of the biennium.
(l) $500,000 each year is for rural career counseling coordinator positions in the workforce service areas and for the purposes specified in Minnesota Statutes, section 116L.667. The commissioner, in consultation with local workforce investment boards and local elected officials in each of the service areas receiving funds, shall develop a method of distributing funds to provide equitable services across workforce service areas.
(m) $400,000 in fiscal year 2016 is for a grant to YWCA Saint Paul for training and job placement assistance, including commercial driver's license training, through the job placement and retention program. This is a onetime appropriation.
(n) $800,000 in fiscal year 2016 is from the workforce development fund for the customized training program for manufacturing industries under article 2, section 24. This is a onetime appropriation and is available in either year of the biennium. Of this amount:
(1) $350,000 is for a grant to Central Lakes College for the purposes of this paragraph;
(2) $250,000 is for Minnesota West Community and Technical College for the purposes of this paragraph; and
(3) $200,000 is for South Central College for the purposes of this paragraph.
(o) $500,000 each year is from the workforce development fund for a grant to Resource, Inc. to provide low-income individuals career education and job skills training that are fully integrated with chemical and mental health services.
(p) $200,000 in fiscal year 2016 and $200,000 in fiscal year 2017 are from the workforce development fund for performance grants under Minnesota Statutes, section 116J.8747, to Twin Cities RISE! to provide training to hard-to-train individuals. This is a onetime appropriation.
(q) $200,000 in fiscal year 2016 is from the workforce development fund for the foreign-trained health care professionals grant program modeled after the pilot program conducted under Laws 2006, chapter 282, article 11, section 2, subdivision 12, to encourage state licensure of foreign-trained health care professionals, including: physicians, with preference given to primary care physicians who commit to practicing for at least five years after licensure in underserved areas of the state; nurses; dentists; pharmacists; mental health professionals; and other allied health care professionals. The commissioner must collaborate with health-related licensing boards and Minnesota workforce centers to award grants to foreign-trained health care professionals sufficient to cover the actual costs of taking a course to prepare health care professionals for required licensing examinations and the fee for the state licensing examinations. When awarding grants, the commissioner must consider the following factors:
(1) whether the recipient's training involves a medical specialty that is in high demand in one or more communities in the state;
(2) whether the recipient commits to practicing in a designated rural area or an underserved urban community, as defined in Minnesota Statutes, section 144.1501;
(3) whether the recipient's language skills provide an opportunity for needed health care access for underserved Minnesotans; and
(4) any additional criteria established by the commissioner.
This is a
onetime appropriation and is available until June 30, 2019.
Sec. 11. Laws 2015, First Special Session chapter 1, article 1, section 6, is amended to read:
|
Sec. 6. BUREAU
OF MEDIATION SERVICES |
|
$2,208,000 |
|
$ |
(a) $68,000 each year is for grants to area labor management committees. Grants may be awarded for a 12-month period beginning July 1 each year. Any unencumbered balance remaining at the end of the first year does not cancel but is available for the second year.
(b) $125,000 each year is for purposes of the Public Employment Relations Board under Minnesota Statutes, section 179A.041.
(c) $256,000 each year is in fiscal
year 2016 and $394,000 in fiscal year 2017 are for the Office of Collaboration
and Dispute Resolution under Minnesota Statutes, section 179.90. The base appropriation for this purpose is
$394,000 in fiscal year 2018 and $394,000 in fiscal year 2019. Of this amount, $160,000 each year is for
grants under Minnesota Statutes, section 179.91, and $96,000 each year is for
intergovernmental and public policy collaboration and operation of the office.
(d)
$250,000 is to complete the Case Management System‑Database Project Phase
II. This is a onetime appropriation.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2014, section 61A.24, is amended by adding a subdivision to read:
Subd. 12b. Mortality
table; exception. Notwithstanding
subdivisions 12, 12a, or any other law to the contrary, a company may use the
Commissioners 2017 Standard Ordinary Mortality Table in determining the minimum
nonforfeiture standard for policies issued on or after January 1, 2017.
Sec. 13. Minnesota Statutes 2014, section 61A.25, is amended by adding a subdivision to read:
Subd. 10. Mortality
table; exception. Notwithstanding
anything in this section, or any other law to the contrary, a company may use
the Commissioners 2017 Standard Ordinary Mortality Table in determining the
minimum valuation standard for policies issued on or after January 1, 2017.
Sec. 14. Minnesota Statutes 2014, section 116J.423, is amended to read:
116J.423
MINNESOTA MINERALS 21ST CENTURY FUND.
Subdivision 1. Created. The Minnesota minerals 21st
century fund is created as a separate account in the treasury. Money in the account is appropriated to the
commissioner of employment and economic development for the purposes of this
section. All money earned by the
account, loan repayments of principal and interest, and earnings on investments
must be credited to the account. For the
purpose of this section, "fund" means the Minnesota minerals
21st century fund. The commissioner
shall operate the account as a revolving account.
Subd. 2. Use of
fund. The commissioner shall use
money in the fund to make loans or equity investments in mineral, steel,
or taconite any other industry processing facilities, steel
production facilities, facilities for the manufacturing of renewable
energy products, or facilities for the manufacturing of biobased or biomass
products, manufacturing, or technology project that would enhance the
economic diversification and that are is located within the
taconite relief tax area as defined under section 273.134. The commissioner must, prior to making any
loans or equity investments and after consultation with industry and public
officials, develop a strategy for making loans and equity investments that
assists the Minnesota mineral industry in becoming globally competitive taconite
relief area in retaining and enhancing its economic competitiveness. Money in the fund may also be used to pay for
the costs of carrying out the commissioner's due diligence duties under this
section.
Subd. 2a. Grants authorized. Notwithstanding subdivision 2, the commissioner may use money in the fund to make grants to a municipality or county, or to a county regional rail authority as appropriate, for public infrastructure needed to support an eligible project under this section. Grant money may be used by the municipality, county, or regional rail authority to acquire right-of-way and mitigate loss of wetlands and runoff of storm water; to predesign, design, construct, and equip roads and rail lines; and, in cooperation with municipal utilities, to predesign, design, construct, and equip natural gas pipelines, electric infrastructure, water supply systems, and wastewater collection and treatment systems. Grants made under this subdivision are available until expended.
Subd. 3. Requirements prior to committing funds. The commissioner, prior to making a commitment for a loan or equity investment must, at a minimum, conduct due diligence research regarding the proposed loan or equity investment, including contracting with professionals as needed to assist in the due diligence.
Subd. 4. Requirements for fund disbursements. The commissioner may make conditional commitments for loans or equity investments but disbursements of funds pursuant to a commitment may not be made until commitments for the remainder of a project's funding are made that are satisfactory to the commissioner and disbursements made from the other commitments sufficient to protect the interests of the state in its loan or investment.
Subd. 5. Company contribution. The commissioner may provide loans or equity investments that match, in a proportion determined by the commissioner, an investment made by the owner of a facility.
Sec. 15. Minnesota Statutes 2014, section 116J.424, is amended to read:
116J.424
IRON RANGE RESOURCES AND REHABILITATION BOARD CONTRIBUTION.
The commissioner of the Iron Range
Resources and Rehabilitation Board with approval by the board, shall may
provide an equal match for any loan or equity investment made for a facility
project located in the tax relief area defined in section 273.134,
paragraph (b), by the Minnesota minerals 21st century fund created by
section 116J.423. The match may be in
the form of a loan or equity investment, notwithstanding whether the fund makes
a loan or equity investment. The state
shall not acquire an equity interest because of an equity investment or loan by
the
board and the board at its sole discretion shall decide what interest it acquires in a project. The commissioner of employment and economic development may require a commitment from the board to make the match prior to disbursing money from the fund.
Sec. 16. Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:
Subdivision 1. Grant program established; purpose. (a) The commissioner shall make grants to counties or cities to provide up to 50 percent of the capital costs of public infrastructure necessary for an eligible economic development project. The county or city receiving a grant must provide for the remainder of the costs of the project, either in cash or in kind. In-kind contributions may include the value of site preparation other than the public infrastructure needed for the project.
(b) The purpose of the grants made under this section is to keep or enhance jobs in the area, increase the tax base, or to expand or create new economic development.
(c) In awarding grants under this
section, the commissioner must adhere to the criteria under subdivision 4.
(d) If the commissioner awards a grant
for less than 50 percent of the project, the commissioner shall provide the
applicant and the chairs and ranking minority members of the senate and house
of representatives committees with jurisdiction over economic development
finance a written explanation of the reason less than 50 percent of the capital
costs were awarded in the grant.
Sec. 17. Minnesota Statutes 2014, section 116J.431, subdivision 2, is amended to read:
Subd. 2. Eligible projects. An economic development project for which a county or city may be eligible to receive a grant under this section includes:
(1) manufacturing;
(2) technology;
(3) warehousing and distribution;
(4) research and development;
(5) agricultural processing, defined as transforming, packaging, sorting, or grading livestock or livestock products into goods that are used for intermediate or final consumption, including goods for nonfood use; or
(6) industrial park development that would be used by any other business listed in this subdivision even if no business has committed to locate in the industrial park at the time the grant application is made.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Minnesota Statutes 2014, section 116J.431, subdivision 4, is amended to read:
Subd. 4. Application. (a) The commissioner must develop forms and procedures for soliciting and reviewing applications for grants under this section. At a minimum, a county or city must include in its application a resolution of the county or city council certifying that the required local match is available. The commissioner must evaluate complete applications for eligible projects using the following criteria:
(1) the project is an eligible project as defined under subdivision 2;
(2)
the project will is expected to result in or will attract
substantial public and private capital investment and provide substantial
economic benefit to the county or city in which the project would be located;
(3) the project is not relocating substantially the same operation from another location in the state, unless the commissioner determines the project cannot be reasonably accommodated within the county or city in which the business is currently located, or the business would otherwise relocate to another state; and
(4) the project is expected to or
will create or maintain retain full-time jobs.
(b) The determination of whether to make a
grant for a site is within the discretion of the commissioner, subject to this
section. The commissioner's decisions
and application of the priorities criteria are not subject to
judicial review, except for abuse of discretion.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:
Subd. 6. Maximum
grant amount. A county or city may
receive no more than $1,000,000 $2,000,000 in two years for one
or more projects.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 20. Minnesota Statutes 2014, section 116J.68, is amended to read:
116J.68
BUREAU OF SMALL BUSINESS.
Subdivision 1. Generally. The Bureau of Small Business within the business assistance center shall serve as a clearinghouse, technical assistance center, and referral service for information and other assistance needed by small businesses including small targeted group businesses and small businesses located in an economically disadvantaged area.
Subd. 2. Duties. The bureau shall:
(1) provide information and assistance with respect to all aspects of business planning, business finance, and business management related to the start-up, operation, or expansion of a small business in Minnesota;
(2) refer persons interested in the start-up, operation, or expansion of a small business in Minnesota to assistance programs sponsored by federal agencies, state agencies, educational institutions, chambers of commerce, civic organizations, community development groups, private industry associations, and other organizations;
(3) plan, develop, and implement a master file of information on small business assistance programs of federal, state, and local governments, and other public and private organizations so as to provide comprehensive, timely information to the bureau's clients;
(4) employ staff with adequate and appropriate skills and education and training for the delivery of information and assistance;
(5) seek out and utilize, to the extent practicable, contributed expertise and services of federal, state, and local governments, educational institutions, and other public and private organizations;
(6) maintain a close and continued relationship with the director of the procurement program within the Department of Administration so as to facilitate the department's duties and responsibilities under sections 16C.16 to 16C.19 relating to the small targeted group business and economically disadvantaged business program of the state;
(7) develop an information system which will enable the commissioner and other state agencies to efficiently store, retrieve, analyze, and exchange data regarding small business development and growth in the state. All executive branch agencies of state government and the secretary of state shall to the extent practicable, assist the bureau in the development and implementation of the information system;
(8) establish and maintain a toll-free
telephone number, e-mail account, and other electronic contact mediums
determined by the commissioner so that all small business persons anywhere
in the state can call may contact the bureau office for
assistance. An outreach program shall be
established to make the existence of the bureau and the assistance and
services the bureau may provide to small businesses well known to its
potential clientele throughout the state.
If the small business person requires a referral to another provider the
bureau may use the business assistance referral system established by the
Minnesota Project Outreach Corporation;
(9) conduct research and provide data as required by the state legislature;
(10) develop and publish material on all aspects of the start-up, operation, or expansion of a small business in Minnesota;
(11) collect and disseminate information on state procurement opportunities, including information on the procurement process;
(12) develop a public awareness program through
the use of regarding state assistance programs for small businesses,
including those programs specifically for socially disadvantaged small business
persons. The commissioner may utilize
print and electronic newsletters, personal contacts, and advertising
devices as defined in section 173.02, subdivision 16, social media, other
electronic and print news media advertising about state assistance programs
for small businesses, including those programs specifically for socially
disadvantaged small business persons, and any other means determined by
the commissioner;
(13) enter into agreements with the federal government and other public and private entities to serve as the statewide coordinator or host agency for the federal small business development center program under United States Code, title 15, section 648; and
(14) assist providers in the evaluation of their programs and the assessment of their service area needs. The bureau may establish model evaluation techniques and performance standards for providers to use.
Sec. 21. Minnesota Statutes 2014, section 116J.8737, subdivision 3, is amended to read:
Subd. 3. Certification of qualified investors. (a) Investors may apply to the commissioner for certification as a qualified investor for a taxable year. The application must be in the form and be made under the procedures specified by the commissioner, accompanied by an application fee of $350. Application fees are deposited in the small business investment tax credit administration account in the special revenue fund. The application for certification for 2010 must be made available on the department's Web site by August 1, 2010. Applications for subsequent years' certification must be made available on the department's Web site by November 1 of the preceding year.
(b) Within 30 days of receiving an application for certification under this subdivision, the commissioner must either certify the investor as satisfying the conditions required of a qualified investor, request additional information from the investor, or reject the application for certification. If the commissioner requests additional information from the investor, the commissioner must either certify the investor or reject the application within 30 days of
receiving the additional information. If the commissioner neither certifies the investor nor rejects the application within 30 days of receiving the original application or within 30 days of receiving the additional information requested, whichever is later, then the application is deemed rejected, and the commissioner must refund the $350 application fee. An investor who applies for certification and is rejected may reapply.
(c) To receive certification, an investor must (1) be a natural person; and (2) certify to the commissioner that the investor will only invest in a transaction that is exempt under section 80A.46, clause (13) or (14), in a security exempt under section 80A.461, or in a security registered under section 80A.50, paragraph (b).
(d) In order for a qualified investment in a qualified small business to be eligible for tax credits, a qualified investor who makes the investment must have applied for and received certification for the calendar year prior to making the qualified investment, except in the case of an investor who is not an accredited investor, within the meaning of Regulation D of the Securities and Exchange Commission, Code of Federal Regulations, title 17, section 230.501, paragraph (a), application for certification may be made within 30 days after making the qualified investment.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 22. Minnesota Statutes 2014, section 116J.8747, subdivision 1, is amended to read:
Subdivision 1. Grant allowed. The commissioner may provide a grant to a qualified job training program from money appropriated for the purposes of this section as follows:
(1) a $9,000 an $11,000
placement grant paid to a job training program upon placement in employment of
a qualified graduate of the program; and
(2) a $9,000 an $11,000
retention grant paid to a job training program upon retention in employment of
a qualified graduate of the program for at least one year.
Sec. 23. Minnesota Statutes 2014, section 116J.8747, subdivision 2, is amended to read:
Subd. 2. Qualified job training program. To qualify for grants under this section, a job training program must satisfy the following requirements:
(1) the program must be operated by a nonprofit corporation that qualifies under section 501(c)(3) of the Internal Revenue Code;
(2) the program must spend at least,
on average, $15,000 or more per graduate of the program;
(3) the program must provide education and training in:
(i) basic skills, such as reading, writing, mathematics, and communications;
(ii) thinking skills, such as reasoning, creative thinking, decision making, and problem solving; and
(iii) personal qualities, such as responsibility, self-esteem, self-management, honesty, and integrity;
(4) the program must may
provide income supplements, when needed, to participants for housing,
counseling, tuition, and other basic needs;
(5) the program's education and training course must last for an average of at least six months;
(6) individuals served by the program must:
(i) be 18 years of age or older;
(ii) have federal adjusted gross income of
no more than $11,000 $12,000 per year in the calendar year
immediately before entering the program;
(iii) have assets of no more than $7,000
$10,000, excluding the value of a homestead; and
(iv) not have been claimed as a dependent on the federal tax return of another person in the previous taxable year; and
(7) the program must be certified by the commissioner of employment and economic development as meeting the requirements of this subdivision.
Sec. 24. Minnesota Statutes 2014, section 116M.14, subdivision 2, is amended to read:
Subd. 2. Board. "Board" means the Urban
Initiative Board. Minnesota emerging entrepreneur program.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 25. Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:
Subd. 3a. Department. "Department" means the
Department of Employment and Economic Development.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 26. Minnesota Statutes 2014, section 116M.14, subdivision 4, is amended to read:
Subd. 4. Low-income area. "Low-income area" means:
(1) Minneapolis, St. Paul;
(2) those cities in the metropolitan area as defined in section 473.121, subdivision 2, that have an average income that is below 80 percent of the median income for a four-person family as of the latest report by the United States Census Bureau; and
(3) those cities in the metropolitan
area, which contain two or more contiguous census tracts in which the average
family income is less than 80 percent of the median family income for the Twin
Cities the area outside the metropolitan area.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 27. Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:
Subd. 4a. Low-income
person. "Low-income
person" means a person who has an annual income, adjusted for family size,
of not more than 80 percent of the area median family income for the county of
residence as of the latest report by the United States Census Bureau.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 28. Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:
Subd. 4b. Metropolitan
area. "Metropolitan
area" has the meaning given in section 473.121, subdivision 2.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 29. Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:
Subd. 6. Minority
person. "Minority
person" means a person belonging to a racial or ethnic minority as defined
in Code of Federal Regulations, title 49, section 23.5.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 30. Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:
Subd. 7. Program. "Program" means the
Minnesota emerging entrepreneur program created by this chapter.
EFFECTIVE
DATE. This section is effective
July 1, 2016.
Sec. 31. Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:
Subd. 8. Veteran. "Veteran" means a veteran as
defined in section 197.447.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 32. Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:
Subd. 9. Persons
with disabilities. "Persons
with disabilities" means an individual with a disability, as defined under
the Americans with Disabilities Act, United States Code, title 42, section
12102.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 33. Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:
Subdivision 1. Creation;
Membership. The Urban Initiative
Minnesota Emerging Entrepreneur Board is created and consists of the
commissioner of employment and economic development, the commissioner of
human rights, the chair of the Metropolitan Council, and eight 12
members from the general public appointed by the governor. Six Nine of the public members
must be representatives from minority business enterprises. No more than four six of the
public members may be of one gender. At
least one member must be a representative from a veteran-owned business, and at
least one member must be a representative from a business owned by a person
with disabilities. Appointments must
ensure balanced geographic representation.
At least half of the public members must have experience working to
address racial income disparities.
All public members must be experienced in business or economic
development.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 34. Minnesota Statutes 2014, section 116M.15, is amended by adding a subdivision to read:
Subd. 1a. Board
responsibilities. The board
shall:
(1) submit a report to the commissioner
by February 1 of each year describing the condition of Minnesota small
businesses that are majority owned and operated by a racial or ethnic minority,
woman, veteran, or a person with disabilities, along with any policy
recommendations;
(2) act as a liaison between the
department and nonprofit corporations engaged in small business development
support activities; and
(3) assist the department in
informational outreach about the program.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 35. Minnesota Statutes 2014, section 116M.17, subdivision 2, is amended to read:
Subd. 2. Technical
assistance. The board through the
department, shall provide technical assistance and development
information services to state agencies, regional agencies, special districts,
local governments, and the public, with special emphasis on minority
communities informational outreach about the program to lenders,
nonprofit corporations, and low-income and minority communities throughout the
state that support the development of business enterprises and entrepreneurs.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 36. Minnesota Statutes 2014, section 116M.17, subdivision 4, is amended to read:
Subd. 4. Reports. The board shall submit an annual report
to the legislature of an accounting of loans made under section 116M.18,
including information on loans to minority business enterprises made,
the number of jobs created by the program, the impact on low-income
areas, and recommendations concerning minority business development and jobs
for persons in low-income areas.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 37. Minnesota Statutes 2014, section 116M.18, is amended to read:
116M.18
URBAN CHALLENGE GRANTS MINNESOTA EMERGING ENTREPRENEUR PROGRAM.
Subdivision 1. Establishment. The Minnesota emerging entrepreneur
program is established to award grants to nonprofit corporations to fund loans
to businesses owned by minority or low-income persons, women, veterans, or
people with disabilities.
Subd. 1a. Statewide
loans. To the extent there is
sufficient eligible demand, loans shall be made so that an approximately equal
dollar amount of loans are made to businesses in the metropolitan area as in
the nonmetropolitan area. After
September 30 of each calendar year, the department may allow loans to be made
anywhere in the state without regard to geographic area.
Subdivision 1 Subd. 1b. Eligibility
rules Grants. The board
department shall make urban challenge grants for use in
low-income areas to nonprofit corporations to fund loans to businesses
owned by minority or low-income persons, women, veterans, or people with
disabilities to encourage private investment, to provide jobs for minority and
low-income persons and others in low-income areas, to create and
strengthen minority business enterprises, and to promote economic development
in a low-income area. The board shall
adopt rules to establish criteria for determining loan eligibility.
Subd. 2. Challenge
Grant eligibility; nonprofit corporation.
(a) The board department may enter into
agreements with nonprofit corporations to fund and guarantee loans the
nonprofit corporation makes in low-income areas under subdivision 4. A corporation must demonstrate that to
businesses owned by minority or low-income persons, women, veterans, or people
with disabilities. The department shall
evaluate applications from nonprofit corporations. In evaluating applications, the department
must consider, among other things, whether the nonprofit corporation:
(1) its has a board of
directors that includes citizens experienced in business and
community development, minority business enterprises, addressing racial
income disparities, and creating jobs in low-income areas for low‑income
and minority persons;
(2) it has the technical skills to
analyze projects;
(3) it is familiar with other
available public and private funding sources and economic development programs;
(4) it can initiate and implement
economic development projects;
(5) it can establish and administer
a revolving loan account or has operated a revolving loan account; and
(6) it can work with job referral
networks which assist minority and other persons in low-income areas low‑income
persons; and
(7) has established relationships with minority communities.
(b) The department shall review
existing agreements with nonprofit corporations every five years and may renew
or terminate the agreement based on the review.
In making its review, the department shall consider, among other
criteria, the criteria in paragraph (a).
Subd. 3. Revolving
loan fund. (a) The board department
shall establish a revolving loan fund to make grants to nonprofit corporations
for the purpose of making loans and loan guarantees to new and
expanding businesses in a low-income area to promote owned by
minority or low-income persons, women, veterans, or people with disabilities,
and to support minority business enterprises and job creation for minority
and other persons in low‑income areas low-income persons.
(b) Nonprofit corporations that receive
grants from the department under the program must establish a
commissioner-certified revolving loan fund for the purpose of making eligible loans.
(c) Eligible business enterprises include, but are not limited to, technologically innovative industries, value‑added manufacturing, and information industries.
(d) Loan applications given
preliminary approval by the nonprofit corporation must be forwarded to the board
department for approval. The
commissioner must give final approval for each loan or loan guarantee
made by the nonprofit corporation. The amount of the state funds contributed to
any loan or loan guarantee may not exceed 50 percent of each
loan.
Subd. 4. Business
loan criteria. (a) The criteria in
this subdivision apply to loans made or guaranteed by nonprofit
corporations under the urban challenge grant program.
(b) Loans or guarantees must be
made to businesses that are not likely to undertake a project for which loans
are sought without assistance from the urban challenge grant program.
(c)
A loan or guarantee must be used for a project designed to benefit
persons in low-income areas through the creation of job or business opportunities
for them to support a business owned by a minority or a low-income
person, woman, veteran, or a person with disabilities. Priority must be given for loans to the
lowest income areas.
(d) The minimum state contribution to a
loan or guarantee is $5,000 and the maximum is $150,000.
(e) The state contribution must be matched by at least an equal amount of new private investment.
(f) A loan may not be used for a retail development project.
(g) The business must agree to work with
job referral networks that focus on minority and low-income applicants from
low-income areas.
Subd. 4a. Microenterprise
loan. Urban challenge Program
grants may be used to make microenterprise loans to small, beginning
businesses, including a sole proprietorship.
Microenterprise loans are subject to this section except that:
(1) they may also be made to qualified retail businesses;
(2) they may be made for a minimum of $1,000
$5,000 and a maximum of $25,000 $35,000; and
(3) in a low-income area, they may be
made for a minimum of $5,000 and a maximum of $50,000; and
(3) (4) they do not require
a match.
Subd. 5. Revolving
fund administration; rules. (a)
The board department shall establish a minimum interest rate for
loans or guarantees to ensure that necessary loan administration costs are
covered. The interest rate charged by
a nonprofit corporation for a loan under this subdivision must not exceed the
Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
nonprofit corporation may charge a loan origination fee equal to or less than
one percent of the loan value. The
nonprofit corporation may retain the amount of the origination fee.
(b) Loan repayment amounts equal to
one-half of the principal and interest must be deposited
in a revolving fund created by the board for challenge grants. The remaining amount of the loan repayment
may be paid to the department for deposit in the revolving loan
fund. Loan interest payments must be
deposited in a revolving loan fund created by the nonprofit corporation
originating the loan being repaid for further distribution or use,
consistent with the loan criteria specified in subdivision 4 of
this section.
(c) Administrative expenses of the board
and nonprofit corporations with whom the board department
enters into agreements under subdivision 2, including expenses incurred
by a nonprofit corporation in providing financial, technical, managerial, and
marketing assistance to a business enterprise receiving a loan under
subdivision 4, may be paid out of the interest earned on loans and out of
interest earned on money invested by the state Board of Investment under
section 116M.16, subdivision 2, as may be provided by the board department.
Subd. 6. Rules. The board shall adopt rules to
implement this section.
Subd. 6a. Nonprofit
corporation loans. The board
may make loans to a nonprofit corporation with which it has entered into an
agreement under subdivision 1. These
loans must be used to support a new or expanding business. This support may include such forms of
financing as the sale of goods to the business on installment or deferred
payments, lease purchase agreements, or royalty investments in the
business. The interest rate charged by a
nonprofit corporation for a loan under this subdivision must not exceed the
Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
nonprofit corporation may charge a loan origination fee equal to or
less
than one percent of the loan value. The
nonprofit corporation may retain the amount of the origination fee. The nonprofit corporation must provide at
least an equal match to the loan received by the board. The maximum loan available to the nonprofit
corporation under this subdivision is $50,000.
Loans made to the nonprofit corporation under this subdivision may be
made without interest. Repayments made
by the nonprofit corporation must be deposited in the revolving fund created
for urban initiative grants.
Subd. 7. Cooperation. A nonprofit corporation that receives an
urban challenge a program grant shall cooperate with other
organizations, including but not limited to, community development
corporations, community action agencies, and the Minnesota small business
development centers.
Subd. 8. Reporting
requirements. A nonprofit
corporation that receives a challenge program grant shall:
(1) submit an annual report to the board and
department by September March 30 of each year that includes a
description of projects businesses supported by the urban
challenge grant program, an account of loans made during the calendar year,
the program's impact on minority business enterprises and job creation for
minority persons and low-income persons in low-income areas, the
source and amount of money collected and distributed by the urban challenge
grant program, the program's assets and liabilities, and an explanation of
administrative expenses; and
(2) provide for an independent annual
audit to be performed in accordance with generally accepted accounting
practices and auditing standards and submit a copy of each annual audit report
to the board department.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 38. Minnesota Statutes 2015 Supplement, section 326B.988, is amended to read:
326B.988
EXCEPTIONS.
(a) The provisions of sections 326B.95 to 326B.998 shall not apply to:
(1) boilers and pressure vessels in buildings occupied solely for residence purposes with accommodations for not more than five families;
(2) railroad locomotives operated by railroad companies for transportation purposes;
(3) air tanks installed on the right-of-way of railroads and used directly in the operation of trains;
(4) boilers and pressure vessels under the direct jurisdiction of the United States;
(5) unfired pressure vessels having an internal or external working pressure not exceeding 15 psig with no limit on size;
(6) pressure vessels used for storage of compressed air not exceeding five cubic feet in volume and equipped with an ASME code stamped safety valve set at a maximum of 100 psig;
(7) pressure vessels having an inside diameter not exceeding six inches;
(8) every vessel that contains water under pressure, including those containing air that serves only as a cushion, whose design pressure does not exceed 300 psig and whose design temperature does not exceed 210 degrees Fahrenheit;
(9) boiler or pressure vessels located on farms used solely for agricultural or horticultural purposes; for purposes of this section, boilers used for mint oil extraction are considered used for agricultural or horticultural purposes, provided that the owner or lessee complies with the inspection requirements contained in section 326B.958;
(10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;
(11) unfired pressure vessels in petroleum refineries;
(12) an air tank or pressure vessel which is an integral part of a passenger motor bus, truck, or trailer;
(13) hot water heating and other hot liquid boilers not exceeding a heat input of 750,000 BTU per hour;
(14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000 BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity of 120 gallons, or a pressure of 160 psig;
(15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;
(16) pressure vessels operated full of water or other liquid not materially more hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees Fahrenheit or a pressure of 200 psig;
(17) steam-powered turbines at papermaking facilities which are powered by steam generated by steam facilities at a remote location;
(18) manually fired boilers for model locomotive, boat, tractor, stationary engine, or antique motor vehicles constructed or maintained only as a hobby for exhibition, educational or historical purposes and not for commercial use, if the boilers have an inside diameter of 12 inches or less, or a grate area of two square feet or less, and are equipped with an ASME stamped safety valve of adequate size, a water level indicator, and a pressure gauge;
(19) any pressure vessel used as an integral part of an electrical circuit breaker;
(20) pressure vessels used for the storage of refrigerant if they are built to ASME code specifications, registered with the national board, and equipped with an ASME code-stamped pressure-relieving device set no higher than the maximum allowable working pressure of the vessel. This does not include pressure vessels used in ammonia refrigeration systems;
(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide, argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME or Minnesota Department of Transportation specifications and equipped with an ASME code-stamped pressure-relieving device. The owner of the vessels shall perform annual visual inspections and planned maintenance on these vessels to ensure vessel integrity;
(22) pressure vessels used for the storage of compressed air for self-contained breathing apparatuses;
(23) hot water heating or other hot liquid boilers vented directly to the atmosphere; and
(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or less.
(b) An engineer's license is not required for hot water supply boilers.
(c) An engineer's license and annual inspection by the department is not required for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.
(d) Electric boilers not exceeding a maximum working pressure of 50 psig, maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure vessels and shall not require an engineer license to operate.
(e) Sawmills, located in a county with a population of less than 8,000 according to the last federal census and that utilize steam for the drying of lumber, are not required to meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part 5225.1180, only if all of the following conditions are met:
(1) the owner complies with the inspection requirements under section 326B.958, and the licensing requirements under section 326B.972; and
(2) the boiler:
(i) is equipped with electronic control systems that are remotely operated but which require on-site manual reset of system faults;
(ii) is remotely monitored for log water levels, boiler pressure, and steam flow;
(iii) has automatic safety mechanisms built into the remote monitoring systems that send an alarm upon detection of a fault condition, and an on-site alarm that will sound upon detection of a fault condition and which may be heard at a distance of 500 feet;
(iv) has a water treatment program that is supervised by a third party water treatment company; and
(v) is attended on site by a licensed boiler operator at least two times in a 24-hour period. If the boiler is not attended more than twice in a 24-hour period, the period between checks must not be less than eight hours.
This paragraph expires August 1, 2016. This paragraph expires the sooner of
August 1, 2018, or upon the effective date of a rule regulating high pressure
boiler attendance requirements at a sawmill described in this paragraph adopted
after the effective date of this act.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 39. Minnesota Statutes 2014, section 462A.204, subdivision 1, is amended to read:
Subdivision 1. Establishment. The agency may establish a family
homeless prevention and assistance program to assist families who are homeless
or are at imminent risk of homelessness.
The term "family" may include single individuals. The agency may make grants to develop and
implement family homeless prevention and assistance projects under the
program. For purposes of this section,
"families" means families and persons under the age of 22 24
years of age or younger.
Sec. 40. Minnesota Statutes 2014, section 462A.204, subdivision 3, is amended to read:
Subd. 3. Set aside. At least one grant must be awarded in an area located outside of the metropolitan area. A county, a group of contiguous counties jointly acting together, a tribe, a group of tribes, or a community-based nonprofit organization with a sponsoring resolution from each of the county boards of the counties located within its operating jurisdiction may apply for and receive grants for areas located outside the metropolitan area.
Sec. 41. [462A.38]
WORKFORCE AND AFFORDABLE HOMEOWNERSHIP DEVELOPMENT PROGRAM.
Subdivision 1. Establishment. A workforce and affordable
homeownership development program is established to award homeownership
development grants to nonprofit organizations, cooperatives created under chapter 308A or 308B, and community land trusts
created for the purposes outlined in section 462A.31, subdivision 1, for
development of workforce and affordable homeownership projects. The purpose of the program is to increase the
supply of workforce and affordable, owner-occupied multifamily or single-family
housing throughout Minnesota.
Subd. 2. Use
of funds. (a) Grant funds
awarded under this program may be used for:
(1) development costs;
(2) rehabilitation;
(3) land development; and
(4) residential housing, including storm
shelters and related community facilities.
(b) A project funded through the grant
program shall serve households that meet the income limits as provided in section 462A.33, subdivision 5, unless a project
is intended for the purpose outlined in section 462A.02, subdivision 6.
Subd. 3. Application. The commissioner shall develop forms
and procedures for soliciting and reviewing applications for grants under this
section. The commissioner shall consult
with interested stakeholders when developing the guidelines and procedures for
the program. In making grants, the
commissioner shall establish semiannual application deadlines in which grants
will be authorized from all or part of the available appropriations.
Subd. 4. Awarding
grants. Among comparable
proposals, preference must be given to proposals that include contributions
from nonstate resources for the greatest portion of the total development cost.
Subd. 5. Statewide
program. The agency shall
attempt to make grants in approximately equal amounts to applicants outside and
within the metropolitan area.
Subd. 6. Report. Beginning January 15, 2018, the
commissioner must annually submit a report to the chairs and ranking minority
members of the senate and house of representatives committees having
jurisdiction over housing and workforce development specifying the projects
that received grants under this section and the specific purposes for which the
grant funds were used.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 42. Laws 2014, chapter 211, section 13, as amended by Laws 2015, First Special Session chapter 1, article 7, section 1, is amended to read:
Sec. 13. EFFECTIVE
DATE.
Sections 1 to 3 and 6 to 11 are effective
July 1, 2016 2017.
Sections 4, 5, and 12 are effective July 1, 2014.
EFFECTIVE
DATE. This section is effective the
day following final enactment. Until
July 1, 2016 2017, any employee, employer, employee or employer
organization, exclusive representative, or any other person or organization
aggrieved by an unfair labor practice as defined in Minnesota Statutes, section
179A.13, may bring an action for injunctive relief and for damages caused by
the unfair labor practice in the district court of the county in which the
practice is alleged to have occurred.
Sec. 43. Laws 2015, First Special Session chapter 1, article 1, section 4, is amended to read:
|
Sec. 4. EXPLORE
MINNESOTA TOURISM |
|
$14,118,000 |
|
$14,248,000 |
(a) To develop maximum private sector
involvement in tourism, $500,000 in fiscal year 2016 and $500,000 in fiscal
year 2017 must be matched by Explore Minnesota Tourism from nonstate
sources. Each $1 of state incentive must
be matched with $6 of private sector funding.
Cash match is defined as revenue to the state or documented cash
expenditures directly expended to support Explore Minnesota Tourism
programs. Up to one-half of the private
sector contribution may be in-kind or soft match. The incentive in fiscal year 2016 shall be
based on fiscal year 2015 private sector contributions. The incentive in fiscal year 2017 shall be
based on fiscal year 2016 private sector contributions. This incentive is ongoing. Of this amount, $100,000 is for a grant to
the Northern Lights International Music festival.
(b) Funding for the marketing grants is available either year of the biennium. Unexpended grant funds from the first year are available in the second year.
(c) $30,000 in fiscal year 2016 is for Mille Lacs Lake tourism promotion. This is a onetime appropriation.
Sec. 44. DAY
TRAINING AND HABILITATION GRANT PROGRAM.
Subdivision 1. Establishment. The commissioner of employment and
economic development shall establish a day training and habilitation grant
program in fulfillment of the Olmstead Plan purpose of ensuring that people
with disabilities have choices for competitive, meaningful, and sustained
employment in the most integrated setting.
Subd. 2. Definitions. (a) For the purposes of this section, the following terms have the meanings given them.
(b) "Day training and habilitation
providers" means those organizations whose names are listed as Department
of Human Services providers in the Minnesota Department of Administration,
Materials Management Division, ALP Manual, Appendix J, without regard to
whether they are listed as approved vendors with the Minnesota Department of
Employment and Economic Development, Division of Rehabilitation Services as a
community rehabilitation provider, limited-use vendor, or center for
independent living, and irrespective as to whether they are accredited by CARF
International.
(c) "Competitive employment"
means full-time or part-time employment, with or without support, in an
integrated setting in the community that pays at least minimum wage, as defined
by the Fair Labor Standards Act, but not less than the customary wage and level
of benefits paid by the employer for the same or similar work performed by
workers without a disability.
(d) "Olmstead Plan" means
Minnesota's 2013 Olmstead Plan, dated November 1, 2013, and all subsequent
modifications approved by the United States District Court.
Subd. 3. Competitive
process. The commissioner
shall issue a request for proposals to day training and habilitation providers
seeking proposals to assist the Department of Employment and Economic
Development in achieving its goals as provided in the Olmstead Plan. Grant funds shall be used to improve
individual employment outcomes by aligning programs, funding, and policies to
support people with disabilities to choose, secure, and maintain competitive
employment and self-employment, including, but not limited to, the following
activities:
(1)
implementing policies and initiating processes that improve the employment
outcomes of working adults with disabilities;
(2) offering incentives for innovation
that increase competitive employment in the general work force;
(3) expanding the flexibility in current
funding and services to increase competitive employment outcomes;
(4) providing evidence of partnerships
with private sector businesses and public sector employment; and
(5) submitting outcome data, required by
the department, according to the stipulations of the Olmstead Plan.
Subd. 4. Eligibility. Any person who has a disability as
determined by the Social Security Administration or state medical review team
is eligible to receive services provided with grant funds.
Subd. 5. Consultation
required. The commissioner
shall consult with the governor's Workforce Development Council, the Commission
of Deaf, DeafBlind, and Hard-of-Hearing Minnesotans, the governor's Council on
Developmental Disabilities, and other governor-appointed disability councils in
designing, implementing, and evaluating the competitive grant program.
Subd. 6. Report. On or before February 1, 2017, and
annually thereafter, the commissioner shall report to the chairs and ranking
minority members of the senate and house of representatives committees having
jurisdiction over employment and economic development policy and finance on the
amount of funds awarded and the outcomes reported by grantees.
Sec. 45. EXPLOITED
FAMILIES RENTAL ASSISTANCE PILOT PROGRAM.
Subdivision 1. Rental
assistance program. (a) The
commissioner of housing finance shall establish a grant pilot program within
the housing trust fund to serve individuals or families from emerging
communities at risk of being homeless and who have been victims of gender-based
violence, including but not limited to domestic violence, sexual assault,
trafficking, international abusive marriage, or forced marriage. For the purposes of this section, the term
"emerging communities" is defined as communities that are unfamiliar
with mainstream government services and that have limited English
proficiency. The commissioner shall
award grants to organizations that can provide or partner with an organization
that can provide linguistically and culturally appropriate services and that
have the capacity to serve individuals or families from emerging communities
who have experienced gender-based violence.
The commissioner may consult with the Departments of Human Services and
Public Safety when establishing the grant program.
(b) The pilot program must:
(1) provide rental assistance to individuals
or families with a minor child;
(2) require the participants to pay at
least 30 percent of the participant's income toward the rent;
(3)
allow the families to choose their own housing, including single-family homes,
townhomes, and apartments; and
(4) give priority to individuals or
families who experience barriers in accessing housing, including having limited
English proficiency, lack of positive rental history, employment history, and
financial history.
Subd. 2. Program
evaluation. All grant
recipients must collect and make available to the commissioner of housing
finance aggregate data to assist the agency in the evaluation of the
program. The commissioner of housing
finance shall evaluate the program and measure the number of families served
from emerging communities and the housing status of the participants.
Sec. 46. LAKE
MILLE LACS AREA ECONOMIC RELIEF PROGRAM.
Subdivision 1. Relief
program established. Mille
Lacs County must develop and implement a Lake Mille Lacs area economic relief
program to assist businesses adversely affected by a decline in walleye fishing
on Lake Mille Lacs.
Subd. 2. Available
relief. (a) The economic
relief program established under this section may include grants or loans as
provided in this section to the extent that funds are available. Prior to awarding a grant to Mille Lacs
County for the relief program under this section:
(1) the county must develop criteria,
procedures, and requirements for:
(i) determining eligibility for
assistance;
(ii) the duration, terms, underwriting
and security requirements, and repayment requirements for loans;
(iii) evaluating applications for
assistance;
(iv) awarding assistance; and
(v) administering the grant and loan
program authorized under this section;
(2) the county must submit its
criteria, procedures, and requirements developed pursuant to clause (1) to the
commissioner of employment and economic development for review; and
(3) the commissioner must approve the
criteria, procedures, and requirements as developed pursuant to clause (1) to
be used by the county in determining eligibility for assistance, evaluating,
awarding, and administering the grant and loan program.
(b) The relief authorized under this
section includes:
(1) grants not to exceed $50,000 per
business. Grants may be awarded to
applicants only when the county determines that a loan is not appropriate to
address the needs of the applicant; and
(2) loans, with or without interest,
and deferred or forgivable loans. The
maximum loan amount under this subdivision
is $100,000 per business. The lending
criteria adopted by the county for loans under this subdivision must:
(i) specify that an entity receiving a
deferred or forgivable loan must remain in the local community a minimum of
five years after the date of the loan.
The maximum loan deferral period must not exceed five years from the
date the loan is approved. The maximum
amount of a loan that may be forgiven must not exceed 50 percent of the
principle amount and may be forgiven only if the business has remained in
operation in the community for at least ten years after the loan is approved;
and
(ii) require submission of a business
plan for continued operation until the walleye fishing resource recovers. The plan must document the probable success
of the applicant's business plan and probable success in repaying the loan
according to the terms established for the loan program; and
(3) tourism promotion grants to the
Mille Lacs Tourism Council.
(c)
All loan repayment funds under this subdivision must be paid to the
commissioner of employment and economic development for deposit in the
Minnesota investment fund disaster contingency account under Minnesota
Statutes, section 116J.8731.
Subd. 3. Qualification
requirements. To qualify for
assistance under this section, a business must:
(1) be located within one of the
following municipalities surrounding Lake Mille Lacs:
(i) in Crow Wing County, the city of
Garrison, township of Garrison, or township of Roosevelt;
(ii) in Aitkin County, the township of
Hazelton, township of Wealthwood, township of Malmo, or township of Lakeside;
or
(iii) in Mille Lacs County, the city of
Isle, city of Wahkon, city of Onamia, township of East Side, township of Isle
Harbor, township of South Harbor, or township of Kathio;
(2) document a reduction of at least
ten percent in gross receipts in any two-year period since 2010; and
(3) be a business in one of the
following industries, as defined within the North American Industry
Classification System: accommodation,
restaurants, bars, amusement and recreation, food and beverages retail,
sporting goods, miscellaneous retail, general retail, museums, historical
sites, health and personal care, gas station, general merchandise, business and
professional membership, movies, or nonstore retailer, as determined by Mille
Lacs County in consultation with the commissioner of employment and economic
development.
Subd. 4. Monitoring. (a) Mille Lacs County must establish
performance measures that include, but are not limited to, the following
components:
(1) the number of loans approved and
the amounts and terms of the loans;
(2) the number of grants awarded, award
amounts, and the reason that a grant award was made in lieu of a loan;
(3) the loan default rate;
(4) the number of jobs created or
retained as a result of the assistance, including information on the wages and
benefit levels, the status of the jobs as full-time or part-time, and the
status of the jobs as temporary or permanent;
(5) the amount of business activity and
changes in gross revenues of the grant or loan recipient as a result of the
assistance; and
(6) the new tax revenue generated as a
result of the assistance.
(b) The commissioner of employment and
economic development must monitor Mille Lacs County's compliance with this
section and the performance measures developed under paragraph (a).
(c) Mille Lacs County must comply with
all requests made by the commissioner under this section.
Subd. 5. Business
subsidy requirements. Sections
116J.993 to 116J.995 do not apply to assistance under this section. Businesses in receipt of assistance under
this section must provide for job creation and retention goals, and wage and
benefit goals.
Subd. 6. Administrative
costs. The commissioner of employment
and economic development may use up to one percent of the appropriation made
for this section for administrative expenses of the department.
EFFECTIVE
DATE. This section, except
for subdivision 4, is effective July 1, 2016, and expires June 30, 2017. Subdivision 4 is effective July 1, 2016, and
expires on the date the last loan is repaid or forgiven as provided under this
section.
Sec. 47. REVISOR'S
INSTRUCTION.
In the next editions of Minnesota
Statutes and Minnesota Rules, the revisor of statutes shall change the term
"Urban Initiative Board" or similar to "Minnesota emerging
entrepreneur program," "program," or similar terms as the
context requires.
ARTICLE 8
LABOR AND INDUSTRY
HOUSEKEEPING
Section 1. Minnesota Statutes 2015 Supplement, section 326B.13, subdivision 8, is amended to read:
Subd. 8. Effective date of rules. A rule to adopt or amend the State Building Code is effective 270 days after publication of the rule's notice of adoption in the State Register. The rule may provide for a later effective date. The rule may provide for an earlier effective date if the commissioner or board proposing the rule finds that an earlier effective date is necessary to protect public health and safety after considering, among other things, the need for time for training of individuals to comply with and enforce the rule. The commissioner must publish an electronic version of the entire adopted rule chapter on the department's Web site within ten days of receipt from the revisor of statutes. The commissioner shall clearly indicate the effective date of the rule on the department's Web site.
Sec. 2. Minnesota Statutes 2014, section 326B.439, is amended to read:
326B.439
BAN ON LEAD IN PLUMBING.
Lead pipe, Solders and flux
containing more than 0.2 percent lead, and pipes and pipe fittings containing not
more than eight a weighted average of 0.25 percent lead when
used with respect to the wetted surfaces of pipes, pipe fittings, plumbing
fittings, and fixtures shall not be used in any plumbing
installation which conveys a potable water supply. A Minnesota seller of lead solder, except for
a seller whose primary business is contracting in plumbing, heating, and air
conditioning, shall not sell any solder containing 0.2 percent lead unless the
seller displays a sign which states,
"Contains Lead
Minnesota law prohibits the use of this solder in any
plumbing installation which is connected to a potable water
supply."
Sec. 3. Minnesota Statutes 2014, section 326B.49, subdivision 1, is amended to read:
Subdivision 1. Application, examination, and license fees. (a) Applications for master and journeyman plumber's licenses shall be made to the commissioner, with all fees required by section 326B.092. Unless the applicant is entitled to a renewal, the applicant shall be licensed by the commissioner only after passing a satisfactory examination developed and administered by the commissioner, based upon rules adopted by the Plumbing Board, showing fitness.
(b)
All initial journeyman plumber's licenses shall be effective for more
than one calendar year and shall expire on December 31 of the year after
the year in which the application is made each odd-numbered year after
issuance or renewal. All master
plumber's licenses shall expire on December 31 of each even-numbered year after
issuance or renewal. The commissioner
shall in a manner determined by the commissioner, without the need for any
rulemaking under chapter 14, phase in the renewal of master and journeyman
plumber's licenses from one year to two years.
By June 30, 2011, All renewed master and journeyman plumber's
licenses shall be two-year licenses.
(c) Applications for contractor licenses shall be made to the commissioner, with all fees required by section 326B.092. All contractor licenses shall expire on December 31 of each odd-numbered year after issuance or renewal.
(d) For purposes of calculating license fees and renewal license fees required under section 326B.092:
(1) the following licenses shall be considered business licenses: plumbing contractor and restricted plumbing contractor;
(2) the following licenses shall be considered master licenses: master plumber and restricted master plumber;
(3) the following licenses shall be considered journeyman licenses: journeyman plumber and restricted journeyman plumber; and
(4) the registration of an unlicensed individual under section 326B.47, subdivision 3, shall be considered an entry level license.
(e) For each filing of a certificate of responsible individual by an employer, the fee is $100.
(f) The commissioner shall charge each person giving bond under section 326B.46, subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a licensed contractor.
ARTICLE 9
UNEMPLOYMENT
INSURANCE ADVISORY COUNCIL
HOUSEKEEPING
Section 1. Minnesota Statutes 2014, section 268.035, subdivision 12, is amended to read:
Subd. 12. Covered employment. (a) "Covered employment" means the following unless excluded as "noncovered employment" under subdivision 20:
(1) an employee's entire employment during the calendar quarter if:
(i) the employment during the quarter is performed primarily in Minnesota;
(ii) the employment during the quarter is not performed primarily in Minnesota or any other state but some of the employment is performed in Minnesota and the base of operations or the place from which the employment is directed or controlled is in Minnesota; or
(iii) the employment during the quarter is not performed primarily in Minnesota or any other state and the base of operations or place from which the employment is directed or controlled is not in any state where part of the employment is performed, but the employee's residence is in Minnesota;
(2) an
employee's entire employment during the calendar quarter performed within the
United States or Canada, if:
(i)
the employment is not considered covered employment under the
unemployment insurance program of any other state, federal law, or the law of
Canada; and
(ii) the place from which the employment is directed or controlled is in Minnesota;
(3) the employment during the calendar
quarter, performed entirely outside of the United States and Canada, by
an employee who is a United States citizen in the employ of an American
employer if the employer's principal place of business in the United States is
located in Minnesota. An "American
employer," for the purposes of this clause, means a corporation organized
under the laws of any state, an individual who is a resident of the United
States, or a partnership if two-thirds or more of the partners are residents of
the United States, or a trust, if all of the trustees are residents of the
United States; and
(4) all employment during the calendar quarter performed by an officer or member of the crew of an American vessel on or in connection with the vessel, if the operating office from which the operations of the vessel operating on navigable waters within, or within and without, the United States are ordinarily and regularly supervised, managed, directed, and controlled is in Minnesota.
(b) "Covered employment" includes covered agricultural employment under subdivision 11.
(c) For the purposes of satisfying the
period of ineligibility under section 268.095, subdivision 10, "covered
employment" includes covered employment covered under an
unemployment insurance program:
(1) of any other state; or
(2) established by an act of Congress.
EFFECTIVE
DATE. This section is
effective July 31, 2016, and applies to all matters pending a determination or
a decision by an unemployment law judge.
Sec. 2. Minnesota Statutes 2014, section 268.035, subdivision 29, is amended to read:
Subd. 29. Wages. (a) "Wages" means all compensation for employment, including commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by a customer of an employer and accounted for by the employee to the employer; sickness and accident disability payments, except as otherwise provided in this subdivision; and the cash value of housing, utilities, meals, exchanges of services, and any other goods and services provided to compensate an employee, except:
(1) the amount of any payment made to, or on behalf of, an employee under a plan established by an employer that makes provision for employees generally or for a class or classes of employees, including any amount paid by an employer for insurance or annuities, or into a plan, to provide for a payment, on account of (i) retirement or (ii) medical and hospitalization expenses in connection with sickness or accident disability, or (iii) death;
(2) the payment by an employer of the tax imposed upon an employee under United States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect to compensation paid to an employee for domestic employment in a private household of the employer or for agricultural employment;
(3) any payment made to, or on behalf of, an employee or beneficiary (i) from or to a trust described in United States Code, title 26, section 401(a) of the federal Internal Revenue Code, that is exempt from tax under section 501(a) at the time of the payment unless the payment is made to an employee of the trust as compensation for services as an employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at the time of the payment, is a plan described in section 403(a);
(4) the value of any special discount or markdown allowed to an employee on goods purchased from or services supplied by the employer where the purchases are optional and do not constitute regular or systematic payment for services;
(5) customary and reasonable directors' fees paid to individuals who are not otherwise employed by the corporation of which they are directors;
(6) the payment to employees for reimbursement of meal expenses when employees are required to perform work after their regular hours;
(7) the payment into a trust or plan for purposes of providing legal or dental services if provided for all employees generally or for a class or classes of employees;
(8) the value of parking facilities provided or paid for by an employer, in whole or in part, if provided for all employees generally or for a class or classes of employees;
(9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral, or other right;
(10) advances or reimbursements for traveling or other bona fide ordinary and necessary expenses incurred or reasonably expected to be incurred in the business of the employer. Traveling and other reimbursed expenses must be identified either by making separate payments or by specifically indicating the separate amounts where both wages and expense allowances are combined in a single payment;
(11) residual payments to radio, television, and similar artists that accrue after the production of television commercials, musical jingles, spot announcements, radio transcriptions, film sound tracks, and similar activities;
(12) the income to a former employee resulting from the exercise of a nonqualified stock option;
(13) payments made to supplement supplemental
unemployment benefits benefit payments under a plan established
by an employer, that makes provisions for employees generally or for a class
or classes of employees under the written terms of an agreement, contract,
trust arrangement, or other instrument if the payment is not wages under
the Federal Unemployment Tax Act. The
plan must provide supplemental payments are wages unless made
solely for the supplementing of weekly state or federal unemployment benefits. The plan must provide supplemental
payments only for those weeks the applicant has been paid regular, extended, or
additional unemployment benefits. The
supplemental payments, when combined with the applicant's weekly unemployment
benefits paid, may not exceed the applicant's regular weekly pay. The plan must not allow the assignment of
Supplemental unemployment benefit payments or provide for any type of
additional payment. The plan must not
require may not be assigned, nor may any consideration be
required from the applicant, other than a release of claims, and must
not be designed for the purpose of avoiding the payment of Social Security
obligations, or unemployment taxes on money disbursed from the plan in
order to be excluded from wages;
(14) sickness or accident disability payments made by the employer after the expiration of six calendar months following the last calendar month that the individual worked for the employer;
(15) disability payments made under the provisions of any workers' compensation law;
(16) sickness or accident disability payments made by a third-party payer such as an insurance company; or
(17) payments made into a trust fund, or for the purchase of insurance or an annuity, to provide for sickness or accident disability payments to employees under a plan or system established by the employer that provides for the employer's employees generally or for a class or classes of employees.
(b) Nothing in this subdivision excludes from the term "wages" any payment made under any type of salary reduction agreement, including payments made under a cash or deferred arrangement and cafeteria plan, as defined in United States Code, title 26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that the employee has the option to receive the payment in cash.
(c) Wages includes the total payment to the operator and supplier of a vehicle or other equipment where the payment combines compensation for personal services as well as compensation for the cost of operating and hiring the equipment in a single payment. This paragraph does not apply if:
(1) there is a preexisting written agreement providing for allocation of specific amounts; or
(2) at the time of each payment there is a
written acknowledgement acknowledgment indicating the separate
allocated amounts.
(d) Wages includes payments made for services as a caretaker. Unless there is a contract or other proof to the contrary, compensation is considered as being equally received by a married couple where the employer makes payment to only one spouse, or by all tenants of a household who perform services where two or more individuals share the same dwelling and the employer makes payment to only one individual.
(e) Wages includes payments made for services by a migrant family. Where services are performed by a married couple or a family and an employer makes payment to only one individual, each worker is considered as having received an equal share of the compensation unless there is a contract or other proof to the contrary.
(f) Wages includes advances or draws against future earnings, when paid, unless the payments are designated as a loan or return of capital on the books of the employer at the time of payment.
(g) Wages includes payments made by a subchapter "S" corporation, as organized under the Internal Revenue Code, to or on behalf of officers and shareholders that are reasonable compensation for services performed for the corporation.
For a subchapter "S" corporation, wages does not include:
(1) a loan for business purposes to an officer or shareholder evidenced by a promissory note signed by an officer before the payment of the loan proceeds and recorded on the books and records of the corporation as a loan to an officer or shareholder;
(2) a repayment of a loan or payment of interest on a loan made by an officer to the corporation and recorded on the books and records of the corporation as a liability;
(3) a reimbursement of reasonable corporation expenses incurred by an officer and documented by a written expense voucher and recorded on the books and records of the corporation as corporate expenses; and
(4) a reasonable lease or rental payment to an officer who owns property that is leased or rented to the corporation.
Sec. 3. Minnesota Statutes 2015 Supplement, section 268.085, subdivision 2, is amended to read:
Subd. 2. Not eligible. An applicant is ineligible for unemployment benefits for any week:
(1) that occurs before the effective date of a benefit account;
(2)
that the applicant, at the beginning of any time during the week,
has an outstanding fraud overpayment balance under section 268.18, subdivision
2, including any penalties and interest;
(3) that occurs in a period when the applicant is a student in attendance at, or on vacation from a secondary school including the period between academic years or terms;
(4) that the applicant is incarcerated or performing court-ordered community service. The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day the applicant is incarcerated or performing court-ordered community service;
(5) that the applicant fails or refuses to provide information on an issue of ineligibility required under section 268.101;
(6) that the applicant is performing services 32 hours or more, in employment, covered employment, noncovered employment, volunteer work, or self-employment regardless of the amount of any earnings; or
(7) with respect to which the applicant has filed an application for unemployment benefits under any federal law or the law of any other state. If the appropriate agency finally determines that the applicant is not entitled to establish a benefit account under federal law or the law of any other state, this clause does not apply.
Sec. 4. Minnesota Statutes 2014, section 268.0865, subdivision 3, is amended to read:
Subd. 3. Continued request for unemployment benefits by electronic transmission. (a) A continued request for unemployment benefits by electronic transmission must be filed to that electronic mail address, telephone number, or Internet address prescribed by the commissioner for that applicant. In order to constitute a continued request, all information asked for, including information authenticating that the applicant is sending the transmission, must be provided in the format required. If all of the information asked for is not provided, the communication does not constitute a continued request for unemployment benefits.
(b) The continued request by
electronic transmission communication must be filed within four
calendar weeks following the week for which payment is requested on the date
day of the week and during the time of day designated for the applicant for
filing a continued request by electronic transmission.
(c) If the electronic transmission
continued request is not filed as required under paragraph (b), a continued
request by electronic transmission must be accepted if the applicant files the
continued request by electronic transmission within three calendar weeks
following the week for which payment is requested. If the continued request by electronic
transmission is not filed within three four calendar weeks
following the week for which payment is requested, the electronic continued
request will not be accepted and the applicant is ineligible for unemployment
benefits for the period covered by the continued request, unless the applicant
shows good cause for failing to file the continued request by electronic
transmission within the time period required.
Sec. 5. Minnesota Statutes 2014, section 268.0865, subdivision 4, is amended to read:
Subd. 4. Continued
request for unemployment benefits by mail.
(a) A continued request for unemployment benefits by mail must be on
a form prescribed by the commissioner. The
form, in order to constitute a continued request, must be totally completed and
signed by the applicant. The form must
be filed by mail, in an envelope with postage prepaid, and sent to the address
designated during the week following the week for which payment is
requested.
(b)
If the mail continued request for unemployment benefits is not filed as
required under paragraph (a), a continued request must be accepted if the form
is filed by mail within three four calendar weeks following
the week for which payment is requested.
(b) If the continued request
form is not filed within three four calendar weeks following the
week for which payment is requested, the form will not be accepted and the
applicant is ineligible for unemployment benefits for the period covered by
the continued request for unemployment benefits, unless the applicant shows
good cause for failing to file the form by mail within the time period
required.
(c) If the applicant has been designated to
file a continued request for unemployment benefits by mail, an applicant may
submit the form by facsimile transmission within three four
calendar weeks following the week for which payment is requested. A form submitted by facsimile transmission
must be sent only to the telephone number assigned for that purpose.
(d) An applicant who has been designated to file a continued request by mail may personally deliver a continued request form only to the location to which the form was otherwise designated to be mailed.
Sec. 6. Minnesota Statutes 2014, section 268.095, subdivision 2, is amended to read:
Subd. 2. Quit defined. (a) A quit from employment occurs when the decision to end the employment was, at the time the employment ended, the employee's.
(b) When determining if an applicant
quit, the theory of a constructive quit does not apply.
(b) (c) An employee who has
been notified that the employee will be discharged in the future, who chooses
to end the employment while employment in any capacity is still available, is
considered to have has quit the employment.
(c) (d) An employee who seeks
to withdraw a previously submitted notice of quitting is considered to have
has quit the employment, as of the intended date of quitting, if the
employer does not agree that the notice may be withdrawn.
(d) (e) An applicant who
has quit employment with a staffing service if, within five calendar
days after completion of a suitable job assignment from a staffing service,
the applicant:
(1) fails without good cause to
affirmatively request an additional suitable job assignment,;
(2) refuses without good cause an additional
suitable job assignment offered,; or
(3) accepts employment with the client of
the staffing service, is considered to have quit employment with the
staffing service. Accepting
employment with the client of the staffing service meets the requirements of
the exception to ineligibility under subdivision 1, clause (2).
This paragraph applies only if, at the time of beginning of employment with the staffing service, the applicant signed and was provided a copy of a separate document written in clear and concise language that informed the applicant of this paragraph and that unemployment benefits may be affected.
For purposes of this paragraph, "good
cause" is a reason that is significant and would compel an average,
reasonable worker, who would otherwise want an additional suitable job
assignment with the staffing service (1) to fail to contact the staffing
service, or (2) to refuse an offered assignment.
Sec. 7. Minnesota Statutes 2014, section 268.095, subdivision 5, is amended to read:
Subd. 5. Discharge
defined. (a) A discharge from
employment occurs when any words or actions by an employer would lead a
reasonable employee to believe that the employer will no longer allow the
employee to work for the employer in any capacity. A layoff because of lack of work is considered
a discharge. A suspension from
employment without pay of more than 30 calendar days is considered a
discharge.
(b) When determining if an applicant
was discharged, the theory of a constructive discharge does not apply.
(b) (c) An employee who gives
notice of intention to quit the employment and is not allowed by the employer
to work the entire notice period is considered discharged from the
employment as of the date the employer will no longer allow the employee to
work. If the discharge occurs within 30
calendar days before the intended date of quitting, then, as of the intended
date of quitting, the separation from employment is considered a quit
from employment subject to subdivision 1.
(c) (d) The end of a job
assignment with the client of a staffing service is considered a
discharge from employment with the staffing service unless subdivision 2,
paragraph (d), applies.
Sec. 8. Minnesota Statutes 2014, section 268.18, is amended to read:
268.18
UNEMPLOYMENT BENEFIT OVERPAYMENTS.
Subdivision 1. Nonfraud
Repaying an overpayment. (a)
Any applicant who (1) because of a determination or amended determination
issued under section 268.07 or 268.101, or any other section of this chapter,
or (2) because of an unemployment law judge's decision under section 268.105,
has received any unemployment benefits that the applicant was held not entitled
to, is overpaid the benefits, and must promptly repay the unemployment
benefits to the trust fund.
(b) If the applicant fails to repay the
unemployment benefits overpaid, the commissioner may offset from any future
unemployment benefits otherwise payable the amount of the overpayment. Except when the overpayment resulted because
the applicant failed to report deductible earnings or deductible or benefit
delaying payments, no single offset may exceed 50 percent of the amount of the
payment from which the offset is made. The
overpayment may also including any penalty and interest assessed under
subdivisions 2 and 2b, the total due may be collected by the methods
allowed under state and federal law.
(c) If an applicant has been overpaid
unemployment benefits under the law of another state, because of a reason other
than fraud, and that state certifies that the applicant is liable under its law
to repay the unemployment benefits and requests the commissioner to recover the
overpayment, the commissioner may offset from future unemployment benefits
otherwise payable the amount of overpayment, except that no single offset may
exceed 50 percent of the amount of the payment from which the offset is made.
Subd. 2. Overpayment
because of fraud. (a) Any An
applicant who receives has committed fraud if the applicant is
overpaid unemployment benefits by:
(1) knowingly misrepresenting,
misstating, or failing to disclose any material fact,; or who
makes
(2) making a false statement or
representation without a good faith belief as to the correctness of the
statement or representation, has committed fraud.
After
the discovery of facts indicating fraud, the commissioner must make issue
a determination that the applicant obtained unemployment benefits by fraud
and that the applicant must promptly repay the unemployment benefits to the
trust fund. In addition, the
commissioner must assess of overpayment penalty assessing a penalty
equal to 40 percent of the amount fraudulently obtained overpaid. This penalty is in addition to penalties
under section 268.182. The
determination is effective the Sunday of the week that it was issued.
(b) Unless the applicant files an appeal
within 20 calendar days after the sending of the a determination
of overpayment by fraud penalty to the applicant by mail or
electronic transmission, the determination is final. Proceedings on the appeal are conducted in
accordance with section 268.105.
(c) If the applicant fails to repay the
unemployment benefits, penalty, and interest assessed, the total due may be
collected by the methods allowed under state and federal law. A determination of overpayment by fraud
penalty must state the methods of collection the commissioner may use to
recover the overpayment, penalty, and interest assessed. Money received in repayment of fraudulently
obtained overpaid unemployment benefits, penalties, and interest is
first applied to the unemployment benefits overpaid, then to the penalty
amount due, then to any interest due. 62.5
percent of the payments made toward the penalty are credited to the contingent
account and 37.5 percent credited to the trust fund.
(d) If an applicant has been overpaid
unemployment benefits under the law of another state because of fraud and that
state certifies that the applicant is liable to repay the unemployment benefits
and requests the commissioner to recover the overpayment, the commissioner may
offset from future unemployment benefits otherwise payable the amount of
overpayment.
(e) Regardless of the limitations in
section 268.101, subdivision 2, paragraph (e), unemployment benefits paid for
weeks more than four years before the date of (d) A determination of
overpayment by fraud issued penalty under this subdivision are
not considered overpaid unemployment benefits may be issued within 48
months of the establishment of the benefit account upon which the unemployment benefits
were obtained through fraud.
Subd. 2b. Interest. On any unemployment benefits fraudulently
obtained, and any penalty amounts assessed under subdivision 2, the
commissioner must assess interest at the rate of one percent per month on any
amount that remains unpaid beginning 30 calendar days after the date of the
a determination of overpayment by fraud penalty. A determination of overpayment by fraud
penalty must state that interest will be assessed. Interest is assessed in the same manner as on
employer debt under section 268.057, subdivision 5. Interest payments collected under this
subdivision are credited to the trust fund.
Subd. 3a. Offset
of federal unemployment benefits.
The commissioner is authorized to enter into reciprocal
agreements with the United States Secretary of Labor, whereby, (a) The
commissioner may offset from any future unemployment benefits otherwise payable
the amount of a nonfraud overpayment. Except
when the nonfraud overpayment resulted because the applicant failed to report
deductible earnings or deductible or benefit delaying payments, no single
offset may exceed 50 percent of the amount of the payment from which the offset
is made.
(b) Overpayments of unemployment
benefits as determined under a federal law program,
may be recovered by offset from unemployment future benefits
otherwise payable and.
(c) If an applicant has been overpaid
unemployment benefits under the law of another state, the commissioner may
offset from future benefits otherwise payable the amount of overpayment.
(d) Nonfraud unemployment benefit overpayments
under subdivisions 1 and 2 may be recovered by offset from unemployment
future benefits otherwise payable under a federal program.
Subd. 4. Cancellation
of overpayments. (a) If unemployment
benefits overpaid under subdivision 1 for reasons other than fraud
are not repaid or offset from subsequent unemployment benefits as
provided for in subdivision 1 within six years after the date of the
determination or decision holding the applicant overpaid, the commissioner must
cancel the overpayment balance, and no administrative or legal proceedings may
be used to enforce collection of those amounts.
(b) If unemployment benefits determined
overpaid under subdivision 2 because of fraud including penalties
and interest are not repaid within ten years after the date of the
determination of overpayment by fraud penalty, the commissioner
must cancel the overpayment balance and any penalties and interest due, and no
administrative or legal proceeding may be used to enforce collection of those
amounts.
(c) The commissioner may cancel at any time any overpayment, including penalties and interest, that the commissioner determines is uncollectible because of death or bankruptcy.
Subd. 4a. Court
fees; collection fees. (a) If the commissioner
department is required to pay any court fees in an attempt to enforce
collection of overpaid unemployment benefits, penalties, or interest, the
commissioner may add the amount of the court fees may be added to
the total amount due.
(b) If an applicant who has been determined
overpaid unemployment benefits because of fraud seeks to have any portion of
the debt discharged under the federal bankruptcy code, and the commissioner
department files an objection in bankruptcy court to the discharge, the commissioner
may add the commissioner's cost of any court fees may be added to
the debt if the bankruptcy court does not discharge the debt.
(c) If the Internal Revenue Service
assesses the commissioner department a fee for offsetting from a
federal tax refund the amount of any overpayment, including penalties and
interest, the amount of the fee may be added to the total amount due. The offset amount must be put in the trust
fund and that amount credited to the total amount due from the applicant.
Subd. 5. Remedies. (a) Any method undertaken to recover an overpayment of unemployment benefits, including any penalties and interest, is not considered an election of a method of recovery.
(b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter under section 176.361 is not considered an election of a remedy and does not prevent the commissioner from determining any unemployment benefits overpaid under subdivision 1 or 2 or taking action under section 268.182.
Subd. 6. Collection
of overpayments. (a) The
commissioner may not compromise the amount that has been determined of
any overpaid under this section unemployment benefits
including penalties and interest.
(b) The commissioner has discretion
regarding the recovery of any overpayment under subdivision 1 for
reasons other than fraud. Regardless
of any law to the contrary, the commissioner is not required to refer any amount
determined overpaid under subdivision 1 overpayment for reasons other
than fraud to a public or private collection agency, including agencies of
this state.
(c) Amounts determined overpaid under
subdivision 1 for reasons other than fraud are not considered a
"debt" to the state of Minnesota for purposes of any reporting
requirements to the commissioner of management and budget.
(d) A pending appeal under section 268.105
does not suspend the assessment of interest, penalties, or collection of an
overpayment under this section.
(e) Section 16A.626 applies to the repayment
by an applicant of any overpayment, penalty, or interest under this section.
Sec. 9. Laws 2015, First Special Session chapter 1, article 6, section 16, the effective date, is amended to read:
EFFECTIVE
DATE. This section is effective the
day following final enactment and is retroactive to March 1, 2015. This section expires on June 1, 2016 December
1, 2016.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies retroactively to March
1, 2015.
Sec. 10. EFFECTIVE
DATE.
This article is effective July 31, 2016,
unless indicated otherwise.
ARTICLE 10
UNEMPLOYMENT INSURANCE ADVISORY COUNCIL TECHNICAL
Section 1. Minnesota Statutes 2014, section 268.035, is amended by adding a subdivision to read:
Subd. 12e. Earnings. "Earnings" means all
compensation to which the applicant has a legal claim and is earned income
under state and federal law for income tax purposes.
Sec. 2. Minnesota Statutes 2014, section 268.035, subdivision 20, is amended to read:
Subd. 20. Noncovered employment. "Noncovered employment" means:
(1) employment for the United States government or an instrumentality thereof, including military service;
(2) employment for a state, other than Minnesota, or a political subdivision or instrumentality thereof;
(3) employment for a foreign government;
(4) employment for an instrumentality
wholly owned by a foreign government, if the employment is of a character
similar to that performed in foreign countries by employees of the United
States government or an instrumentality thereof and the United States Secretary
of State has certified that the foreign government grants an equivalent
exemption to similar employment performed in the foreign country by employees
of the United States government and instrumentalities thereof;
(5) (4) employment covered
under United States Code, title 45, section 351, the federal
Railroad Unemployment Insurance Act;
(6) employment covered by a reciprocal
arrangement between the commissioner and another state or the federal
government that provides that all employment performed by an individual for an
employer during the period covered by the reciprocal arrangement is considered
performed entirely within another state;
(7) (5) employment for a church
or convention or association of churches, or an a nonprofit
organization operated primarily for religious purposes that is operated,
supervised, controlled, or principally supported by a church or convention or
association of churches described in United States Code, title 26, section
501(c)(3) of the federal Internal Revenue Code and exempt from income tax under
section 501(a);
(8) (6) employment for
Minnesota or a political subdivision, or a nonprofit organization, of a
duly ordained or licensed minister of a church in the exercise of a ministry or
by a member of a religious order in the exercise of duties required by the
order, for Minnesota or a political subdivision or an organization described
in United States Code, title 26, section 501(c)(3) of the federal Internal
Revenue Code and exempt from income tax under section 501(a);
(9)
(7) employment for Minnesota or a political subdivision, or a
nonprofit organization, of an individual receiving rehabilitation of
"sheltered" work in a facility conducted for the purpose of carrying
out a program of rehabilitation for individuals whose earning capacity is
impaired by age or physical or mental deficiency or injury or a program
providing "sheltered" work for individuals who because of an impaired
physical or mental capacity cannot be readily absorbed in the competitive labor
market. This clause applies only to
services performed for Minnesota or a political subdivision or an
organization described in United States Code, title 26, section 501(c)(3) of
the federal Internal Revenue Code and exempt from income tax under section
501(a) in a facility certified by the Rehabilitation Services Branch of the
department or in a day training or habilitation program licensed by the
Department of Human Services;
(10) (8) employment for
Minnesota or a political subdivision, or a nonprofit organization, of an
individual receiving work relief or work training as part of an unemployment
work relief or work training program assisted or financed in whole or in part
by any federal agency or an agency of a state or political subdivision thereof. This clause applies only to employment for
Minnesota or a political subdivision or an organization described in United
States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code
and exempt from income tax under section 501(a). This clause does not apply to programs that
require unemployment benefit coverage for the participants;
(11) (9) employment for Minnesota
or a political subdivision, as an elected official, a member of a
legislative body, or a member of the judiciary;
(12) (10) employment as a
member of the Minnesota National Guard or Air National Guard;
(13) (11) employment for
Minnesota, or a political subdivision, or instrumentality
thereof, as an employee of an individual serving only on a
temporary basis in case of fire, flood, tornado, or similar emergency;
(14) (12) employment as an
election official or election worker for Minnesota or a political subdivision, but
only if the compensation for that employment was less than $1,000 in a
calendar year;
(15) (13) employment for
Minnesota that is a major policy-making or advisory position in the
unclassified service;
(16) (14) employment for Minnesota in an
unclassified position established under section 43A.08, subdivision 1a;
(17) (15) employment for a
political subdivision of Minnesota that is a nontenured major policy making or
advisory position;
(18) (16) domestic employment
in a private household, local college club, or local chapter of a college
fraternity or sorority performed for a person, only, if the wages
paid in any calendar quarter in either the current or prior calendar year to
all individuals in domestic employment totaled less than $1,000.
"Domestic employment" includes all service in the operation and maintenance of a private household, for a local college club, or local chapter of a college fraternity or sorority as distinguished from service as an employee in the pursuit of an employer's trade or business;
(19) (17) employment of an
individual by a son, daughter, or spouse, and employment of a child under the
age of 18 by the child's father or mother;
(20) (18) employment of an
inmate of a custodial or penal institution;
(21) (19) employment for a school, college, or university, by a student who is enrolled and whose primary relation to the school, college, or university is as a student. This does not include an individual whose primary relation to the school, college, or university is as an employee who also takes courses;
(22) (20) employment of an
individual who is enrolled as a student in a full-time program at a nonprofit
or public educational institution that maintains a regular faculty and
curriculum and has a regularly organized body of students in attendance at the
place where its educational activities are carried on, taken for credit at the
institution, that combines academic instruction with work experience, if the
employment is an integral part of the program, and the institution has so
certified to the employer, except that this clause does not apply to employment
in a program established for or on behalf of an employer or group of employers;
(23) (21) employment of
university, college, or professional school students in an internship or other
training program with the city of St. Paul or the city of Minneapolis
under Laws 1990, chapter 570, article 6, section 3;
(24) (22) employment for a
hospital by a patient of the hospital. "Hospital"
means an institution that has been licensed by the Department of Health as a
hospital;
(25) (23) employment as a
student nurse for a hospital or a nurses' training school by an individual who
is enrolled and is regularly attending classes in an accredited nurses'
training school;
(26) (24) employment as an
intern for a hospital by an individual who has completed a four-year course in
an accredited medical school;
(27) (25) employment as an
insurance salesperson, by other than a corporate officer, if all the wages from
the employment is solely by way of commission.
The word "insurance" includes an annuity and an optional
annuity;
(28) (26) employment as an
officer of a township mutual insurance company or farmer's mutual insurance
company operating under chapter 67A;
(29) (27) employment of a
corporate officer, if the officer directly or indirectly, including through a
subsidiary or holding company, owns 25 percent or more of the employer
corporation, and employment of a member of a limited liability company, if the
member directly or indirectly, including through a subsidiary or holding
company, owns 25 percent or more of the employer limited liability company;
(30) (28) employment as a real
estate salesperson, by other than a corporate officer, if all the wages
from the employment is solely by way of commission;
(31) (29) employment as a
direct seller as defined in United States Code, title 26, section 3508;
(32) (30) employment of an
individual under the age of 18 in the delivery or distribution of newspapers or
shopping news, not including delivery or distribution to any point for
subsequent delivery or distribution;
(33) (31) casual employment
performed for an individual, other than domestic employment under clause (18)
(16), that does not promote or advance that employer's trade or
business;
(34) (32) employment in
"agricultural employment" unless considered it is
"covered agricultural employment" under subdivision 11; or
(35) (33) if employment during
one-half or more of any pay period was covered employment, all the employment
for the pay period is considered covered employment; but if during more
than one-half of any pay period the employment was noncovered employment, then
all of the employment for the pay period is considered noncovered
employment. "Pay period" means
a period of not more than a calendar month for which a payment or compensation
is ordinarily made to the employee by the employer.
Sec. 3. Minnesota Statutes 2014, section 268.035, is amended by adding a subdivision to read:
Subd. 20b. Nonprofit
organization. "Nonprofit
organization" means an organization described in United States Code, title
26, section 501(c)(3), and is exempt from income tax under section 501(a).
Sec. 4. Minnesota Statutes 2014, section 268.035, subdivision 23a, is amended to read:
Subd. 23a. Suitable employment. (a) Suitable employment means employment in the applicant's labor market area that is reasonably related to the applicant's qualifications. In determining whether any employment is suitable for an applicant, the degree of risk involved to the health and safety, physical fitness, prior training, experience, length of unemployment, prospects for securing employment in the applicant's customary occupation, and the distance of the employment from the applicant's residence is considered.
(b) In determining what is suitable employment, primary consideration is given to the temporary or permanent nature of the applicant's separation from employment and whether the applicant has favorable prospects of finding employment in the applicant's usual or customary occupation at the applicant's past wage level within a reasonable period of time.
If prospects are unfavorable, employment at lower skill or wage levels is suitable if the applicant is reasonably suited for the employment considering the applicant's education, training, work experience, and current physical and mental ability.
The total compensation must be considered, including the wage rate, hours of employment, method of payment, overtime practices, bonuses, incentive payments, and fringe benefits.
(c) When potential employment is at a rate of pay lower than the applicant's former rate, consideration must be given to the length of the applicant's unemployment and the proportion of difference in the rates. Employment that may not be suitable because of lower wages during the early weeks of the applicant's unemployment may become suitable as the duration of unemployment lengthens.
(d) For an applicant seasonally unemployed, suitable employment includes temporary work in a lower skilled occupation that pays average gross weekly wages equal to or more than 150 percent of the applicant's weekly unemployment benefit amount.
(e) If a majority of the applicant's weeks
of employment in the base period includes part-time employment, part-time
employment in a position with comparable skills and comparable hours that pays
comparable wages is considered suitable employment.
Full-time employment is not considered
suitable employment for an applicant if a majority of the applicant's weeks of
employment in the base period includes part-time employment.
(f) To determine suitability of employment in terms of shifts, the arrangement of hours in addition to the total number of hours is to be considered. Employment on a second, third, rotating, or split shift is suitable employment if it is customary in the occupation in the labor market area.
(g) Employment is not considered
suitable if:
(1) the position offered is vacant because of a labor dispute;
(2) the wages, hours, or other conditions of
employment are substantially less favorable than those prevailing for
similar employment in the labor market area; or
(3)
as a condition of becoming employed, the applicant would be required to join a
company union or to resign from or refrain from joining any bona fide labor
organization; or
(4) the employment is with a staffing
service and less than 25 percent of the applicant's wage credits are from a job
assignment with the client of a staffing service.
(h) A job assignment with a staffing
service is considered suitable only if 25 percent or more of the
applicant's wage credits are from job assignments with clients of a staffing
service and the job assignment meets the definition of suitable employment
under paragraph (a).
Sec. 5. Minnesota Statutes 2014, section 268.085, subdivision 4, is amended to read:
Subd. 4. Social Security old age insurance benefits. (a) Any applicant aged 62 or over is required to state when filing an application for unemployment benefits and when filing continued requests for unemployment benefits if the applicant is receiving, has filed for, or intends to file for, primary Social Security old age benefits.
(b) Unless paragraph (b) (c)
applies, 50 percent of the weekly equivalent of the primary Social Security old
age benefit the applicant has received, has filed for, or intends to file for,
with respect to that week must be deducted from an applicant's weekly unemployment
benefit amount.
(b) (c) If all of the
applicant's wage credits were earned while the applicant was claiming Social
Security old age benefits, there is no deduction of the Social Security
benefits from the applicant's weekly unemployment benefit amount.
(c) (d) Information from the
Social Security Administration is considered conclusive, absent specific
evidence showing that the information was erroneous.
(d) (e) This subdivision
does not apply to Social Security survivor benefits.
Sec. 6. Minnesota Statutes 2014, section 268.085, subdivision 5, is amended to read:
Subd. 5. Deductible earnings. (a) If the applicant has earnings, including holiday pay, with respect to any week, from employment, covered employment, noncovered employment, self-employment, or volunteer work, equal to or in excess of the applicant's weekly unemployment benefit amount, the applicant is ineligible for unemployment benefits for that week.
(b) If the applicant has earnings, including holiday pay, with respect to any week, that is less than the applicant's weekly unemployment benefit amount, from employment, covered employment, noncovered employment, self-employment, or volunteer work, 50 percent of the earnings are deducted from the weekly unemployment benefit amount.
(c) No deduction is made from an applicant's weekly unemployment benefit amount for earnings from service in the National Guard or a United States military reserve unit or from direct service as a volunteer firefighter or volunteer ambulance service personnel. This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made for jury duty pay or for pay as an election judge.
(d) The applicant may report deductible earnings on continued requests for unemployment benefits at the next lower whole dollar amount.
(e)
Deductible earnings does not include any money considered that is
a deductible payment under subdivision 3, but includes all compensation
considered wages under section 268.035, subdivision 29, and any other
compensation considered earned income under state and federal law for income
tax purposes.
Sec. 7. REVISOR'S
INSTRUCTION.
(a) The revisor of statutes shall
change "liability" to "liability for damages" in Minnesota
Rules, part 3315.0555, subpart 1.
(b) The revisor of statutes shall
change "entitled to" to "eligible for" in Minnesota
Statutes, section 268.085, subdivision 1, clause (6).
(c) The revisor of statutes shall
change "shall calculate" to "must calculate" in Minnesota
Statutes, section 268.035, subdivision 23.
(d)
The revisor of statutes shall renumber Minnesota Statutes, section 268.035,
subdivision 12d, to subdivision 12f.
(e) The revisor of statutes shall
reletter the paragraphs in Minnesota Statutes, section 268.085, subdivision 4,
as follows:
(1) paragraph (a) shall be relettered
paragraph (c); and
(2) paragraph (c) shall be relettered
paragraph (a).
(f) The revisor of statutes shall
renumber the reference to "clause (29)" to "clause (27)" in
Minnesota Statutes, section 268.046, subdivision 1.
(g) The revisor of statutes shall
renumber the reference to "clause (10)" to "clause (8)" in
Minnesota Statutes, section 383C.19.
Sec. 8. EFFECTIVE
DATE.
This article is effective July 31,
2016, and applies to all matters pending a determination or a decision by an
unemployment law judge.
ARTICLE 11
UNEMPLOYMENT INSURANCE ADVISORY COUNCIL POLICY
Section 1. Minnesota Statutes 2014, section 268.051, subdivision 5, is amended to read:
Subd. 5. Tax
rate for new employers. (a) Each
new taxpaying employer that does not qualify for an experience rating under
subdivision 3, except new employers in a high experience rating industry, must
be assigned, for a calendar year, a tax rate the higher of (1) one percent, or
(2) the tax rate computed, to the nearest 1/100 of a percent, by dividing the
total amount of unemployment benefits paid all applicants during the 48
calendar months ending on June 30 of the prior calendar year by the total
taxable wages of all taxpaying employers during the same period, plus the
applicable base tax rate and any additional assessments under subdivision 2,
paragraph (c).
(b) Each new taxpaying employer in a high
experience rating industry that does not qualify for an experience rating under
subdivision 3, must be assigned, for a calendar year, a tax rate the higher of
(1) that assigned under paragraph (a), or (2) the tax rate, computed to the
nearest 1/100 of a percent, by dividing the total amount of unemployment
benefits paid to all applicants from high experience rating industry employers
during the 48 calendar
months
ending on June 30 of the prior calendar year by the total taxable wages of all
high experience rating industry employers during the same period, to a maximum
provided for under subdivision 3, paragraph (b), plus the applicable base tax
rate and any additional assessments under subdivision 2, paragraph (c).
(c) An employer is considered to be in a
high experience rating industry if:
(1) the employer is engaged in
residential, commercial, or industrial construction, including general
contractors;
(2) the employer is engaged in sand,
gravel, or limestone mining;
(3) the employer is engaged in the
manufacturing of concrete, concrete products, or asphalt; or
(4) the employer is engaged in road
building, repair, or resurfacing, including bridge and tunnels and residential
and commercial driveways and parking lots.
(a) Each new taxpaying employer that
does not qualify for an experience rating under subdivision 3 must be assigned,
for the calendar year, a tax rate equal to the average experience rating for
the employer's industry, plus the applicable base tax rate and any additional
assessments under subdivision 2, paragraph (c).
The tax rate assigned may not be less than one percent.
(b) The employer's industry, except for
construction, is determined by the first two digits of the North American
Industrial Classification System (NAICS).
The construction industry is determined to five digits. For each calendar year the commissioner must
compute, in accordance with subdivision 3, the average industry experience
rating for the employer's industry.
(d) (c) Regardless of any
law to the contrary, a taxpaying employer must be assigned a tax rate under
this subdivision if the employer had no taxable wages during the experience
rating period under subdivision 3.
(e) (d) The commissioner must
send to the new employer, by mail or electronic transmission, a determination
of tax rate. An employer may appeal the
determination of tax rate in accordance with the procedures in
subdivision 6, paragraph (c).
EFFECTIVE
DATE. This section is
effective January 1, 2018, and applies to tax rates assigned for the calendar
year 2018 and thereafter.
Sec. 2. Minnesota Statutes 2015 Supplement, section 268.07, subdivision 3b, is amended to read:
Subd. 3b. Limitations
on applications and benefit accounts. (a)
An application for unemployment benefits is effective the Sunday of the
calendar week that the application was filed.
An application for unemployment benefits may be backdated one calendar
week before the Sunday of the week the application was actually filed if the
applicant requests the backdating at within seven calendar days of
the time date the application is filed. An application may be backdated only if the
applicant was unemployed during the period of the backdating. If an individual attempted to file an
application for unemployment benefits, but was prevented from filing an
application by the department, the application is effective the Sunday of the
calendar week the individual first attempted to file an application.
(b) A benefit account established under subdivision 2 is effective the date the application for unemployment benefits was effective.
(c) A benefit account, once established, may later be withdrawn only if:
(1) the applicant has not been paid any unemployment benefits on that benefit account; and
(2) a new application for unemployment benefits is filed and a new benefit account is established at the time of the withdrawal.
A determination or amended determination of eligibility or ineligibility issued under section 268.101, that was sent before the withdrawal of the benefit account, remains in effect and is not voided by the withdrawal of the benefit account.
(d) An application for unemployment benefits is not allowed before the Sunday following the expiration of the benefit year on a prior benefit account. Except as allowed under paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks. This paragraph applies to benefit accounts established under any federal law or the law of any other state.
EFFECTIVE
DATE. This section is
effective July 31, 2016, and applies to applications for unemployment benefits
filed after that date.
Sec. 3. Minnesota Statutes 2014, section 268.095, subdivision 1, is amended to read:
Subdivision 1. Quit. An applicant who quit employment is ineligible for all unemployment benefits according to subdivision 10 except when:
(1) the
applicant quit the employment because of a good reason caused by the employer
as defined in subdivision 3;
(2) the applicant quit the employment to
accept other covered employment that provided substantially equal to
or better terms and conditions of employment, but the applicant did not
work long enough at the second employment to have sufficient subsequent earnings
wages paid to satisfy the period of ineligibility that would otherwise
be imposed under subdivision 10 for quitting the first employment;
(3) the applicant quit the employment within
30 calendar days of beginning the employment because and the employment
was unsuitable for the applicant;
(4) the employment was unsuitable for the
applicant and the applicant quit to enter reemployment assistance training;
(5) the employment was part time and the
applicant also had full-time employment in the base period, from which
full-time employment the applicant separated because of reasons for which the
applicant was held is not to be ineligible, and the wage
credits from the full-time employment are sufficient to meet the minimum
requirements to establish a benefit account under section 268.07;
(6) the applicant quit because the employer notified the applicant that the applicant was going to be laid off because of lack of work within 30 calendar days. An applicant who quit employment within 30 calendar days of a notified date of layoff because of lack of work is ineligible for unemployment benefits through the end of the week that includes the scheduled date of layoff;
(7) the applicant quit the employment (i) because the applicant's serious illness or injury made it medically necessary that the applicant quit; or (ii) in order to provide necessary care because of the illness, injury, or disability of an immediate family member of the applicant. This exception only applies if the applicant informs the employer of the medical problem and requests accommodation and no reasonable accommodation is made available.
If the applicant's serious illness is chemical dependency, this exception does not apply if the applicant was previously diagnosed as chemically dependent or had treatment for chemical dependency, and since that diagnosis or treatment has failed to make consistent efforts to control the chemical dependency.
This exception raises an issue of the applicant's being available for suitable employment under section 268.085, subdivision 1, that the commissioner must determine;
(8) the applicant's loss of child care for the applicant's minor child caused the applicant to quit the employment, provided the applicant made reasonable effort to obtain other child care and requested time off or other accommodation from the employer and no reasonable accommodation is available.
This exception raises an issue of the applicant's being available for suitable employment under section 268.085, subdivision 1, that the commissioner must determine;
(9) the applicant quit because domestic abuse, sexual assault, or stalking of the applicant or an immediate family member of the applicant, necessitated the applicant's quitting the employment.
For purposes of this subdivision:
(i) "domestic abuse" has the meaning given in section 518B.01;
(ii)
"sexual assault" means an act that would constitute a violation of
sections 609.342 to 609.3453 or 609.352; and
(iii) "stalking" means an act that would constitute a violation of section 609.749; or
(10) the applicant quit in order to
relocate to accompany a spouse:
(1) who is in the military; or
(2) whose job was transferred by
the spouse's employer to a new location changed making it
impractical for the applicant to commute.
EFFECTIVE
DATE. This section is
effective July 31, 2016, and applies to all matters pending a determination or
a decision by an unemployment law judge.
Sec. 4. Minnesota Statutes 2014, section 268.101, subdivision 2, is amended to read:
Subd. 2. Determination. (a) The commissioner must determine any issue of ineligibility raised by information required from an applicant under subdivision 1, paragraph (a) or (c), and send to the applicant and any involved employer, by mail or electronic transmission, a document titled a determination of eligibility or a determination of ineligibility, as is appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge of the applicant must state the effect on the employer under section 268.047. A determination must be made in accordance with this paragraph even if a notified employer has not raised the issue of ineligibility.
(b) The commissioner must determine any issue of ineligibility raised by an employer and send to the applicant and that employer, by mail or electronic transmission, a document titled a determination of eligibility or a determination of ineligibility as is appropriate. The determination on an issue of ineligibility as a result of a quit or discharge of the applicant must state the effect on the employer under section 268.047.
If a base period employer:
(1) was not the applicant's most recent employer before the application for unemployment benefits;
(2) did not employ the applicant during the six calendar months before the application for unemployment benefits; and
(3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant within ten calendar days of notification under subdivision 1, paragraph (b);
then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two weeks following the week that the issue of ineligibility as a result of a quit or discharge of the applicant was raised by the employer.
A communication from an employer must specifically set out why the applicant should be determined ineligible for unemployment benefits for that communication to be considered to have raised an issue of ineligibility for purposes of this section. A statement of "protest" or a similar term without more information does not constitute raising an issue of ineligibility for purposes of this section.
(c) Subject to section 268.031, an issue of ineligibility is determined based upon that information required of an applicant, any information that may be obtained from an applicant or employer, and information from any other source.
(d) Regardless of the requirements of this subdivision, the commissioner is not required to send to an applicant a copy of the determination where the applicant has satisfied a period of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.
(e) The commissioner may issue a
determination on an issue of ineligibility at any time within 24 months
from the establishment of a benefit account based upon information from any source,
even if the issue of ineligibility was not raised by the applicant or an
employer. This paragraph does not
prevent the imposition of a penalty on
If an applicant obtained
unemployment benefits through fraud under section 268.18, subdivision 2, or
268.182 a determination of ineligibility may be issued within 48 months
of the establishment of the benefit account.
(f) A determination of eligibility or
determination of ineligibility is final unless an appeal is filed by the
applicant or notified employer within 20 calendar days after sending. The determination must contain a prominent
statement indicating the consequences of not appealing. Proceedings on the appeal are conducted in
accordance with section 268.105.
(g) An issue of ineligibility required to be determined under this section includes any question regarding the denial or allowing of unemployment benefits under this chapter except for issues under section 268.07. An issue of ineligibility for purposes of this section includes any question of effect on an employer under section 268.047.
(h) Except for issues of ineligibility as
a result of a quit or discharge of the applicant, the employer will be (1) sent
a copy of the determination of eligibility or a determination of ineligibility,
or (2) considered an involved employer for purposes of an appeal under section
268.105, only if the employer raised the issue of ineligibility.
EFFECTIVE
DATE. This section is
effective July 31, 2016, and applies to all matters pending a determination.
Sec. 5. Minnesota Statutes 2014, section 268.182, subdivision 2, is amended to read:
Subd. 2. Administrative penalties. (a) Any applicant who knowingly makes a false statement or representation, who knowingly fails to disclose a material fact, or who makes a false statement or representation without a good faith belief as to the correctness of the statement or representation, in order to obtain or in an attempt to obtain unemployment benefits may be assessed, in addition to any other penalties, an administrative penalty of being ineligible for unemployment benefits for 13 to 104 weeks.
(b) A determination of ineligibility setting out the weeks the applicant is ineligible must be sent to the applicant by mail or electronic transmission. A determination of ineligibility under this subdivision may be issued within 48 months of the establishment of the benefit account upon which the unemployment benefits were obtained, or attempted to be obtained. Unless an appeal is filed within 20 calendar days of sending, the determination is final. Proceedings on the appeal are conducted in accordance with section 268.105.
EFFECTIVE DATE. This section is effective July 31, 2016 and applies to all matters pending a determination.
ARTICLE 12
EQUITY
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Section 1. APPROPRIATIONS. |
The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article. The
appropriations are from the general fund, or another named fund, and are
available for the fiscal year indicated for each purpose. The figures "2016" and
"2017" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2016, or June 30, 2017,
respectively.
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|
|
|
APPROPRIATIONS |
||
|
|
|
|
Available for the Year |
||
|
|
|
|
Ending June 30 |
||
|
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2016 |
2017 |
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Sec. 2. EQUITY
APPROPRIATIONS |
|
|
|
|
|
Subdivision 1. Total
Appropriation |
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$-0- |
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$35,000,000 |
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Subd. 2. Department of Employment and Economic Development |
-0-
|
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34,250,000
|
(a) $1,500,000 in fiscal year 2017 is for
grants to the Neighborhood Development Center for small business programs. For fiscal year 2018 and thereafter, the base
amount is $750,000 per year.
Of this amount, $810,000 is for the small
business development program, including:
(1) $620,000 for training, lending, and
business services for aspiring business owners, and expansion of services for
immigrants in suburban communities; and
(2) $190,000 is for Neighborhood Development Center model outreach and training activities in greater Minnesota.
Of this amount, $690,000 is for grants for the small business incubator program, including:
(1) $420,000 for capital improvements to
existing small business incubators; and
(2) $270,000 for the creation of two additional
small business incubators.
(b) $2,000,000 in fiscal year 2017 is for a
competitive grant program to provide grants to organizations that provide
support services for individuals, such as job training, employment preparation,
internships, job assistance to fathers, financial literacy, academic and
behavioral interventions for low-performing students, and youth intervention. Grants made under this section must focus on
low-income communities, young adults from families with a history of
intergenerational poverty, and communities of color. All grant recipients are subject to the
requirements of section 11. Of this
amount, up to five percent is for administration and monitoring of the program. For fiscal year 2018 and thereafter, the base
amount is $1,500,000 per year.
(c) $1,000,000 in fiscal year 2017 is for a
grant to YWCA St. Paul to provide job training services and workforce
development programs and services, including job skills training and counseling. For fiscal year 2018 and thereafter, the base
amount is $250,000 per year.
(d) $750,000 in fiscal year 2017 is for a
grant to the YWCA of Minneapolis to provide economically challenged individuals
the jobs skills training, career counseling, and job placement assistance
necessary to secure a child development associate credential and to have a
career path in early childhood education.
For fiscal year 2018 and thereafter, the base amount is $375,000 per
year.
(e) $4,250,000 in fiscal year 2017 is for a
grant to EMERGE Community Development, in collaboration with community
partners, for services targeting Minnesota communities with the highest
concentrations of African and African-American joblessness, based on the most
recent census tract data, to provide employment readiness training, credentialed
training placement, job placement and retention services, supportive services
for hard-to-employ individuals, and a general education development fast track
and adult diploma program. For fiscal
year 2018 and thereafter, the base amount is $1,000,000 per year.
(f) $2,500,000 in fiscal year 2017 is for a
grant to the Metropolitan Economic Development Association (MEDA) for statewide
business development and assistance services, including services to
entrepreneurs
with businesses that have the potential to create job opportunities for
unemployed and underemployed people, with an emphasis on minority-owned
businesses. For fiscal year 2018 and
thereafter, the base amount is $1,175,000 per year.
Of this appropriation, $1,600,000 is for a
revolving loan fund to provide additional minority-owned businesses with access
to capital.
(g) $1,000,000 in fiscal year 2017 is for
a grant to the Minneapolis Foundation for a strategic intervention program
designed to target and connect program participants to meaningful, sustainable
living-wage employment.
(h) $1,200,000 in fiscal year 2017 is for
performance grants under Minnesota Statutes, section 116J.8747, to Twin Cities
R!SE to provide training to hard-to-train individuals. For fiscal year 2018 and thereafter, the base
amount is $600,000 per year. Of the
amount appropriated in fiscal year 2017, $407,000 is for a grant to Twin Cities
R!SE, in collaboration with Metro Transit and Hennepin Technical College, for
the Metro Transit technician training program.
This is a onetime appropriation and is available until June 30, 2019.
(i) $2,500,000 in fiscal year 2017 is for
the creation of additional multiemployer, sector-based career connections
pathways. This is a onetime
appropriation and is available until June 30, 2019. $2,200,000 of this amount is for a grant to
Hennepin County to establish pathways using the Hennepin Career Connections
framework. $300,000 of this amount is
for a grant to Hennepin County to establish a pilot program based on the career
connections pathways framework outside the seven-county metropolitan area, in
collaboration with another local unit of government.
(j) $1,500,000 in fiscal year 2017 is for
the high-wage, high-demand, nontraditional jobs grant program under Minnesota
Statutes, section 116L.99. Of this
amount, up to five percent is for administration and monitoring of the program. For fiscal year 2018 and thereafter, the base
amount is $1,000,000 per year.
(k) $1,000,000 in fiscal year 2017 is for
the youth-at-work competitive grant program under Minnesota Statutes, section
116L.562, subdivision 3. Of this amount,
up to five percent is for administration and monitoring of the program.
(l) $2,000,000 in fiscal year 2017 is for
a competitive grant program for grants to organizations providing services to
relieve economic disparities in the Southeast Asian community through workforce
recruitment, development, job creation, assistance of smaller organizations to
increase capacity, and outreach. Grant
recipients
under this paragraph are subject to the requirements of section 11. Of this amount, up to five percent is for
administration and monitoring of the program.
For fiscal year 2018 and thereafter, the base amount is $1,000,000 per
year.
(m) $1,500,000 in fiscal year 2017 is for a
grant to Latino Communities United in Service (CLUES) to expand culturally
tailored programs that address employment and education skill gaps for working
parents and underserved youth by providing new job skills training to stimulate
higher wages for low-income people, family support systems designed to reduce
intergenerational poverty, and youth programming to promote educational
advancement and career pathways. At
least 50 percent of this amount must be used for programming targeted at
greater Minnesota. For fiscal year 2018
and thereafter, the base amount is $750,000 per year.
(n) $880,000 in fiscal year 2017 is for a
grant to the American Indian Opportunities and Industrialization Center, in
collaboration with the Northwest Indian Community Development Center, to reduce
academic disparities for American Indian students and adults. The grant funds may be used to provide:
(1) student tutoring and testing support
services;
(2) training in information technology;
(3) assistance in obtaining a GED;
(4) remedial training leading to enrollment in a postsecondary higher education institution;
(5)
real-time work experience in information technology fields; and
(6) contextualized adult basic education.
After notification to the legislature, the
commissioner may transfer this appropriation to the commissioner of education. For fiscal year 2018 and thereafter, the base
amount is $250,000 per year.
(o) $500,000 in fiscal year 2017 is for a
grant to the White Earth Nation for the White Earth Nation Integrated Business
Development System to provide business assistance with workforce development,
outreach, technical assistance, infrastructure and operational support,
financing, and other business development activities. For fiscal year 2018 and thereafter, the base
amount is $125,000 per year.
(p) $500,000 is for the Minnesota emerging
entrepreneur program under Minnesota Statutes, section 116M.18. Of this amount, up to five percent is for
administration and monitoring of the program.
For fiscal year 2018 and thereafter, the base amount is $750,000 per
year.
(q)
$1,000,000 is for the Pathways to Prosperity adult workforce development
competitive grant program. When awarding
grants under this paragraph, the commissioner may give preference to any previous
grantee with demonstrated success in job training and placement for
hard-to-train individuals. A portion of
the grants may provide year-end educational and experiential learning
opportunities for teens and young adults that provide careers in the
construction industry. Of this amount,
up to five percent is for administration and monitoring of the program.
(r) $320,000 is for the capacity building
grant program to assist nonprofit organizations offering or seeking to offer
workforce development and economic development programming. For fiscal year 2018 and thereafter, the base
amount is $1,000,000 per year.
(s) $2,000,000 in fiscal year 2017 is for
grants for positive youth development, community engagement, legal services,
and capacity building for community-based organizations serving Somali youth,
including youth engagement, prevention, and intervention activities that help
build the resiliency of the Somali Minnesotan community and address challenges
facing Somali youth. Of this amount,
$1,000,000 is for a grant to Youthprise for activities provided in this
paragraph. Funded projects must provide
culturally and linguistically relevant services. To the maximum extent possible, 50 percent of
the funding must be distributed in greater Minnesota, and 50 percent of funding
must be distributed within the metropolitan area, as defined in Minnesota
Statutes, section 473.121, subdivision 2.
Of the amount appropriated for grants to be awarded by the commissioner,
up to five percent is for administration and monitoring of the program. This is a onetime appropriation and is
available until June 30, 2019.
(t) $600,000 in fiscal year 2017 is for a
grant to Ujamaa Place for job training, employment preparation, internships,
education, training in the construction trades, housing, and organizational
capacity building.
(u) $1,750,000 in fiscal year 2017 is for a
grant to Enterprise Minnesota, Inc. Of this amount, $875,000 is for the small
business growth acceleration program under Minnesota Statutes, section
116O.115, and $875,000 is for operations under Minnesota Statutes, sections
116O.01 to 116O.061. For fiscal year
2018 and thereafter, the base amount is $875,000 per year.
(v) $1,000,000 in fiscal year 2017 is for
grants to centers for independent living under Minnesota Statutes, section
268A.11. For fiscal year 2018 and
thereafter, the base amount is $500,000 per year.
(w) $1,000,000 in fiscal year 2017 is from
the general fund for State Services for the Blind. Funds appropriated must be used to provide
services for senior citizens who are becoming blind. At
least
half of the funds appropriated must be used to provide training services for
seniors who are becoming blind. Training
services must provide independent living skills to seniors who are becoming
blind to allow them to continue to live independently in their homes. For fiscal year 2018 and thereafter, the base
amount is $500,000 per year.
(x) $2,000,000 in fiscal year 2017 is from
the general fund for a grant to the Construction Careers Foundation for the
construction career pathway initiative to provide year-round educational and
experiential learning opportunities for teens and young adults under the age of
21 that lead to careers in the construction industry. For fiscal year 2018 and thereafter, the base
amount is $1,000,000 per year. Grant
funds must be used to:
(1) increase construction industry
exposure activities for middle school and high school youth, parents, and
counselors to reach a more diverse demographic and broader statewide audience. This requirement includes, but is not limited
to, an expansion of programs to provide experience in different crafts to youth
and young adults throughout the state;
(2) increase the number of high schools in
Minnesota offering construction classes during the academic year that utilize a
multicraft curriculum;
(3) increase the number of summer
internship opportunities;
(4) enhance activities to support
graduating seniors in their efforts to obtain employment in the construction
industry;
(5) increase the number of young adults
employed in the construction industry and ensure that they reflect Minnesota's
diverse workforce; and
(6) enhance an industrywide marketing
campaign targeted to youth and young adults about the depth and breadth of careers
within the construction industry.
Programs and services supported by grant
funds must give priority to individuals and groups that are economically
disadvantaged or historically underrepresented in the construction industry,
including but not limited to women, veterans, and members of minority and
immigrant groups.
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Subd. 3. Minnesota
Housing Finance Agency |
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-0-
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750,000
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$500,000 is for a grant to Build Wealth MN
to provide a family stabilization plan program including program outreach, financial
literacy education, and budget and debt counseling.
$250,000
is a onetime appropriation for grants to eligible applicants to create or
expand risk mitigation programs to reduce landlord financial risks for renting
to persons eligible under Minnesota Statutes, section 462A.204. Eligible programs may reimburse landlords for
costs including but not limited to nonpayment of rent, or damage costs above
those costs covered by security deposits.
The agency may give higher priority to applicants that can demonstrate a
matching amount of money by a local unit of government, business, or nonprofit
organization. Grantees must establish a
procedure to review and validate claims and reimbursements under this grant
program.
Sec. 3. Minnesota Statutes 2014, section 16C.10, subdivision 6, is amended to read:
Subd. 6. Expenditures under specified amounts. A competitive solicitation process described in this chapter is not required for the acquisition of goods, services, construction, and utilities in an amount of $5,000 or less or as authorized by section 16C.16, subdivisions 6, paragraph (b), 6a, paragraph (b), and 7, paragraph (b).
Sec. 4. Minnesota Statutes 2014, section 16C.16, subdivision 6, is amended to read:
Subd. 6. Purchasing
methods. (a) The commissioner may
award up to a six percent preference in the amount bid for specified
goods or services to small targeted group businesses.
(b) The commissioner may award a
contract for goods, services, or construction directly to a small business or
small targeted group business without going through a competitive solicitation
process up to a total contract award value, including extension options, of
$25,000.
(b) (c) The commissioner may
designate a purchase of goods or services for award only to small businesses or
small targeted group businesses if the commissioner determines that at least
three small businesses or small targeted group businesses are likely to bid
respond to a solicitation.
(c) (d) The commissioner, as
a condition of awarding a construction contract or approving a contract for
professional or technical services, may set goals that require the prime
contractor to subcontract a portion of the contract to small businesses or
small targeted group businesses. The
commissioner must establish a procedure for granting waivers from the
subcontracting requirement when qualified small businesses or small targeted
group businesses are not reasonably available.
The commissioner may establish financial incentives for prime
contractors who exceed the goals for use of small business or small targeted
group business subcontractors and financial penalties for prime contractors who
fail to meet goals under this paragraph.
The subcontracting requirements of this paragraph do not apply to prime
contractors who are small businesses or small targeted group businesses.
Sec. 5. Minnesota Statutes 2015 Supplement, section 16C.16, subdivision 6a, is amended to read:
Subd. 6a. Veteran-owned
small businesses. (a) Except when
mandated by the federal government as a condition of receiving federal funds,
the commissioner shall award up to a six percent preference, but no less than
the percentage awarded to any other group under this section, in the amount
bid on state procurement to certified small businesses that are
majority-owned and operated by veterans.
(b) The commissioner may award a
contract for goods, services, or construction directly to a veteran-owned small
business without going through a competitive solicitation process up to a total
contract award value, including extension options, of $25,000.
(c)
The commissioner may designate a purchase of goods or services for award only
to a veteran-owned small business if the commissioner determines that at least
three veteran-owned small businesses are likely to respond to a solicitation.
(d) The commissioner, as a condition of
awarding a construction contract or approving a contract for professional or
technical services, may set goals that require the prime contractor to
subcontract a portion of the contract to a veteran-owned small business. The commissioner must establish a procedure
for granting waivers from the subcontracting requirement when qualified
veteran-owned small businesses are not reasonably available. The commissioner may establish financial
incentives for prime contractors who exceed the goals for use of veteran-owned
small business subcontractors and financial penalties for prime contractors who
fail to meet goals under this paragraph.
The subcontracting requirements of this paragraph do not apply to prime
contractors who are veteran-owned small businesses.
(b) (e) The purpose of this
designation is to facilitate the transition of veterans from military to
civilian life, and to help compensate veterans for their sacrifices, including
but not limited to their sacrifice of health and time, to the state and nation
during their military service, as well as to enhance economic development
within Minnesota.
(c) (f) Before the
commissioner certifies that a small business is majority-owned and operated by
a veteran, the commissioner of veterans affairs must verify that the owner of
the small business is a veteran, as defined in section 197.447.
Sec. 6. Minnesota Statutes 2014, section 16C.16, subdivision 7, is amended to read:
Subd. 7. Economically
disadvantaged areas. (a) Except
as otherwise provided in paragraph (b), The commissioner may award up to a
six percent preference in the amount bid on state procurement to small
businesses located in an economically disadvantaged area.
(b) The commissioner may award up to a
four percent preference in the amount bid on state construction to small
businesses located in an economically disadvantaged area.
(b) The commissioner may award a
contract for goods, services, or construction directly to a small business
located in an economically disadvantaged area without going through a
competitive solicitation process up to a total contract award value, including
extension options, of $25,000.
(c) The commissioner may designate a
purchase of goods or services for award only to a small business located in an
economically disadvantaged area if the commissioner determines that at least
three small businesses located in an economically disadvantaged area are likely
to respond to a solicitation.
(d) The commissioner, as a condition of
awarding a construction contract or approving a contract for professional or
technical services, may set goals that require the prime contractor to
subcontract a portion of the contract to a small business located in an economically
disadvantaged area. The commissioner
must establish a procedure for granting waivers from the subcontracting
requirement when qualified small businesses located in an economically
disadvantaged area are not reasonably available. The commissioner may establish financial
incentives for prime contractors who exceed the goals for use of subcontractors
that are small businesses located in an economically disadvantaged area and
financial penalties for prime contractors who fail to meet goals under this
paragraph. The subcontracting
requirements of this paragraph do not apply to prime contractors who are small
businesses located in an economically disadvantaged area.
(c) (e) A business is located in an economically disadvantaged area if:
(1) the owner resides in or the business is located in a county in which the median income for married couples is less than 70 percent of the state median income for married couples;
(2) the owner resides in or the business is located in an area designated a labor surplus area by the United States Department of Labor; or
(3) the
business is a certified rehabilitation facility or extended employment provider
as described in chapter 268A.
(d) (f) The commissioner may
designate one or more areas designated as targeted neighborhoods under section
469.202 or as border city enterprise zones under section 469.166 as
economically disadvantaged areas for purposes of this subdivision if the
commissioner determines that this designation would further the purposes of
this section. If the owner of a small
business resides or is employed in a designated area, the small business is
eligible for any preference provided under this subdivision.
(e) (g) The Department of
Revenue shall gather data necessary to make the determinations required by
paragraph (c) (e), clause (1), and shall annually certify
counties that qualify under paragraph (c) (e), clause (1). An area designated a labor surplus area
retains that status for 120 days after certified small businesses in the area
are notified of the termination of the designation by the United States
Department of Labor.
Sec. 7. Minnesota Statutes 2014, section 16C.16, is amended by adding a subdivision to read:
Subd. 7a. Designated
purchases and subcontractor goals. (a)
When designating purchases directly to a business in accordance with this
section, the commissioner may also designate a purchase of goods or services
directly to any combination of small businesses, small targeted group
businesses, veteran-owned small businesses or small businesses located in an
economically disadvantaged area if the commissioner determines that at least
three businesses in two or more of the disadvantaged business categories are
likely to respond.
(b) When establishing subcontractor
goals under this section, the commissioner may set goals that require the prime
contractor to subcontract a portion of the contract to any combination of a
small business, small targeted group business, veteran-owned small business, or
small business located in an economically disadvantaged area.
Sec. 8. Minnesota Statutes 2014, section 16C.16, subdivision 11, is amended to read:
Subd. 11. Procurement
procedures. All laws and rules
pertaining to solicitations, bid evaluations, contract awards, and other
procurement matters apply equally to procurements designated for small
businesses or small targeted group businesses involving any small
business, small targeted group business, veteran-owned business, or small
business located in an economically disadvantaged area. In the event of conflict with other rules,
section 16C.15 and rules adopted under it govern, if section 16C.15 applies. If it does not apply, sections 16C.16 to
16C.21 and rules adopted under those sections govern.
Sec. 9. [116L.562]
YOUTH-AT-WORK GRANT PROGRAM.
Subdivision 1. Establishment. The commissioner shall award grants to
eligible organizations for the purpose of providing workforce development and
training opportunities to economically disadvantaged or at-risk youth ages 14
to 24.
Subd. 2. Definitions. For purposes of this section:
(1) "eligible organization" or "eligible applicant" means a local government unit, nonprofit organization, community action agency, or a public school district;
(2) "at-risk youth" means
youth classified as at-risk under section 116L.56, subdivision 2; and
(3) "economically
disadvantaged" means youth who are economically disadvantaged as defined
in United States Code, title 29, section 1503.
Subd. 3. Competitive grant awards. (a) In awarding competitive grants,
priority shall be given to programs that:
(1) provide students with information
about education and training requirements for careers in high-growth, in‑demand
occupations;
(2) serve youth from communities of
color who are under represented in the workforce; or
(3) serve youth with disabilities.
(b) Eligible organizations must have
demonstrated effectiveness in administering youth workforce programs and must
leverage nonstate or private sector funds.
(c) New eligible applicants must be
youth-serving organizations with significant capacity and demonstrable youth
development experience and outcomes to operate a youth workforce development
project.
(d) If a program is not operated by a
local unit of government or a workforce development board, the grant recipient
must coordinate the program with the local workforce development board.
Subd. 4. Reports. Each grant recipient shall report to
the commissioner in a format to be determined by commissioner.
Sec. 10. Minnesota Statutes 2014, section 116L.99, is amended to read:
116L.99
WOMEN AND HIGH-WAGE, HIGH-DEMAND, NONTRADITIONAL JOBS GRANT PROGRAM.
Subdivision 1. Definitions. (a) For the purpose of this section, the following terms have the meanings given.
(b) "Commissioner" means the commissioner of employment and economic development.
(c) ''Eligible organization'' includes, but is not limited to:
(1) community-based organizations experienced in serving women;
(2) employers;
(3) business and trade associations;
(4) labor unions and employee organizations;
(5) registered apprenticeship programs;
(6) secondary and postsecondary education institutions located in Minnesota; and
(7) workforce and economic development agencies.
(d) "High-wage, high-demand" means occupations that represent at least 0.1 percent of total employment in the base year, have an annual median salary which is higher than the average for the current year, and are projected to have more total openings as a share of employment than the average.
(e) "Low-income" means income less than 200 percent of the federal poverty guideline adjusted for a family size of four.
(f) "Nontraditional occupations'' means those occupations in which women make up less than 25 percent of the workforce as defined under United States Code, title 20, section 2302.
(g)
"Registered apprenticeship program'' means a program registered under
United States Code, title 29, section 50.
(h) "STEM" means science,
technology, engineering, and math.
(i) "Women of color" means
females age 18 and older who are American Indian, Asian, Black, or Hispanic.
(j) "Girls of color" means
females under age 18 who are American Indian, Asian, Black, or Hispanic.
Subd. 2. Grant
program. The commissioner shall
establish the women and high-wage, high-demand, nontraditional jobs grant
program to increase the number of women in high-wage, high-demand,
nontraditional occupations. The
commissioner shall make grants to eligible organizations for programs that
encourage and assist women to enter high-wage, high-demand, nontraditional
occupations including but not limited to those in the skilled trades, science,
technology, engineering, and math (STEM) STEM occupations. The commissioner must give priority to
programs that encourage and assist women of color to enter high-wage,
high-demand, nontraditional occupations and STEM occupations.
Subd. 3. Use of funds. (a) Grant funds awarded under this section may be used for:
(1) recruitment, preparation, placement, and retention of women, including women of color, low-income women and women over 50 years old, in registered apprenticeships, postsecondary education programs, on-the-job training, and permanent employment in high-wage, high-demand, nontraditional occupations;
(2) secondary or postsecondary education or other training to prepare women to succeed in high-wage, high-demand, nontraditional occupations. Activities under this clause may be conducted by the grantee or in collaboration with another institution, including but not limited to a public or private secondary or postsecondary school;
(3) innovative, hands-on, best practices that stimulate interest in high-wage, high-demand, nontraditional occupations among girls, increase awareness among girls about opportunities in high-wage, high-demand, nontraditional occupations, or increase access to secondary programming leading to jobs in high-wage, high-demand, nontraditional occupations. Best practices include but are not limited to mentoring, internships, or apprenticeships for girls in high-wage, high-demand, nontraditional occupations;
(4) training and other staff development for job seeker counselors and Minnesota family investment program (MFIP) caseworkers on opportunities in high-wage, high-demand, nontraditional occupations;
(5) incentives for employers and sponsors of registered apprenticeship programs to retain women in high-wage, high-demand, nontraditional occupations for more than one year;
(6) training and technical assistance for employers to create a safe and healthy workplace environment designed to retain and advance women, including best practices for addressing sexual harassment, and to overcome gender inequity among employers and registered apprenticeship programs;
(7) public education and outreach
activities to overcome stereotypes about women in high-wage, high-demand,
nontraditional occupations, including the development of educational and
marketing materials; and
(8) services to support for
women in high-wage, high-demand, nontraditional occupations including but not
limited to assistance with balancing work responsibilities; skills training
and education; family caregiving; financial assistance for child care,
transportation, and safe and stable housing; workplace issues resolution;
and access to advocacy assistance and services; and
(9) recruitment, participation, and support of girls of color in approved training programs or a valid apprenticeship program subject to section 181A.07, subdivision 7.
(b) Grant applications must include detailed information about how the applicant plans to:
(1) increase women's participation in high-wage, high-demand occupations in which women are currently underrepresented in the workforce;
(2) comply with the requirements under
subdivision 3; and
(3) use grant funds in conjunction with
funding from other public or private sources.; and
(4) collaborate with existing,
successful programs for training, education, recruitment, preparation,
placement, and retention of women of color in high-wage, high-demand,
nontraditional occupations and STEM occupations.
(c) In awarding grants under this subdivision, the commissioner shall give priority to eligible organizations:
(1) with demonstrated success in recruiting and preparing women, especially low-income women, women of color, and women over 50 years old, for high-wage, high-demand, nontraditional occupations; and
(2) that leverage additional public and private resources.
(d) At least 50 percent of total grant funds must be awarded to programs providing services and activities targeted to low-income women and women of color.
(e) The commissioner of employment and economic development in conjunction with the commissioner of labor and industry shall monitor the use of funds under this section, collect and compile information on the activities of other state agencies and public or private entities that have purposes similar to those under this section, and identify other public and private funding available for these purposes.
(f) By January 15, 2019, and each
January 15 thereafter, the commissioner must submit a report to the chairs and
ranking minority members of the committees of the house of representatives and
the senate having jurisdiction over workforce development that details the use
of grant funds. If data is available,
the report must contain data that is disaggregated by race, cultural groups,
family income, age, geographical location, migrant or foreign immigrant status,
primary language, whether the participant is an English learner under Minnesota
Statutes, section 124D.59, disability, and status of homelessness.
Sec. 11. REQUIREMENTS
FOR GRANTS TO INDIVIDUALLY SPECIFIED RECIPIENTS.
(a) Application. This
section applies to any grant funded under this act where the recipient of the
grant is individually specified in this act.
The commissioner serving as the fiscal agent for the grant must ensure
compliance with the requirements of this section, and all applicable
requirements under existing law, including applicable grants management
policies and procedures established by the Office of Grants Management.
(b) Prerequisites. Before
any funding is provided to the grant recipient, the recipient must provide the
fiscal agent with a description of the following information in a grant
application:
(1) the purpose of the grant, including
goals, priorities, and measurable outcomes;
(2) eligibility requirements for
individuals who will be served by the grant program;
(3) the proposed geographic service
areas for individuals served by the grant; and
(4) the reporting requirements.
These requirements are in addition to any requirements
under existing laws and policies.
(c) Financial Review. Office
of Grants Management Operating Policy and Procedure number 08-06, titled
"Policy on the Financial Review of Nongovernmental Organizations" applies
in pertinent part to all grants covered by paragraph (a).
(d) Reporting to Fiscal Agent.
In addition to meeting any reporting requirements included in the
grant agreement, grant recipients subject to this section must provide the
following information to the commissioner serving as fiscal agent:
(1) a detailed accounting of the use of
any grant proceeds;
(2) a description of program outcomes
to date, including performance measured against indicators specified in the
grant agreement, including, but not limited to, job creation, employment
activity, wage information, business formation or expansion, and academic
performance; and
(3) the portion of the grant, if any,
spent on the recipient's operating expenses.
Grant recipients must report the information required
under this paragraph to the fiscal agent within one year after receiving any
portion of the grant, annually thereafter, and within 30 days following the use
of all funds provided under the grant.
(e) Reporting to Legislature.
Beginning January 15, 2017, a commissioner serving as a fiscal
agent for a grant subject to this section must submit a report containing the
information provided by the grant recipients to the chairs and ranking minority
members of the legislative committees and budget divisions with jurisdiction
over the agency serving as fiscal agent for the grant. The report submitted under this section must
also include the commissioner's summary of the use of grant proceeds, and an
analysis of the grant recipients' success in meeting the goals, priorities, and
measurable outcomes specified for the grant.
An updated version of this report must be submitted on January 15 of
each succeeding year until January 15 in the year following the date when all
of the grant funds have been spent.
Sec. 12. ETHNIC
COUNCIL REVIEW.
The commissioners of each agency
appropriated money in this article may consult with the four ethnic councils
under Minnesota Statutes, sections 3.922 and 15.0145, regarding implementation
of the programs funded under this article.
Any request for proposals developed by a state agency as a result of
this article may be reviewed by the four ethnic councils prior to public
submission.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 13
STATE DEPARTMENTS AND VETERANS
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Section 1. APPROPRIATIONS. |
The sums shown in the columns marked
"Appropriations" are added to the appropriations in Laws 2015,
chapter 77, article 1, to the agencies and for the purposes specified in this
article. The appropriations are from the
general fund or another named fund. The
figures "2016" and "2017" used in this article mean that
the addition to the appropriation listed under them are available for the
fiscal year ending June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations for the fiscal
year ending June 30, 2016, are effective the day following final enactment.
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APPROPRIATIONS |
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Available for the Year |
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Ending June 30 |
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2016 |
2017 |
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Sec. 2. ADMINISTRATION
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Subdivision 1. Total
Appropriation |
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$-0- |
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$1,198,000 |
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Subd. 2. Government and Citizen Services - Olmstead Plan Increased Capacity |
-0- |
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148,000 |
For administrative costs to expand
services provided under the Olmstead Plan serving people with disabilities.
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Subd. 3. Fiscal
Agent - Veterans' Voices |
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-0-
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50,000
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For a grant to the Association of
Minnesota Public Educational Radio Stations for statewide programming to
promote the Veterans' Voices program. This
is a onetime appropriation.
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Subd. 4. Accounting
and Procurement Software |
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-0-
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1,000,000
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$1,000,000 is to assess, upgrade, and
enhance accounting and procurement software to facilitate targeted group
business utilization and data reporting.
This is a onetime appropriation and is available until June 30, 2019.
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Sec. 3. MINNESOTA
MANAGEMENT AND BUDGET |
$-0- |
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$2,018,000 |
Of this amount, $2,000,000 is for
statewide information technology systems and is available until June 30, 2018. This is a onetime appropriation.
Of this amount, $18,000 is to the Office
of Economic Analysis for the revenue uncertainty report under Minnesota
Statutes, section 16A.103, subdivision 1h.
The base is $9,000 each fiscal year beginning in fiscal year 2018.
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Sec. 4. REVENUE
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$-0- |
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$1,333,000 |
Tax System Management. $500,000 is for tax refund fraud protection software and services.
$833,000 is for (1) communication and
outreach; and (2) technology, audit, and fraud staff.
$1,506,000 is added to the base in fiscal
year 2018 and $1,506,000 in fiscal year 2019.
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Sec. 5. AMATEUR
SPORTS COMMISSION |
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$-0- |
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$10,000,000 |
Mighty
Ducks. For the purposes of
making grants under Minnesota Statutes, section 240A.09, paragraph (b). This appropriation is a onetime appropriation
and is added to the appropriations in Laws 2015, chapter 77, article 1, section
18, and Laws 2015, First Special Session chapter 5, article 1, section 9.
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Sec. 6. HUMANITIES
CENTER |
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$-0- |
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$95,000 |
To expand education efforts around the
Veterans' Voices program, and to work with veterans to educate and engage the
community regarding veterans' contributions, knowledge, skills, and experiences
through the Veterans' Voices program. This
is a onetime appropriation.
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Sec. 7. MINNESOTA
STATE RETIREMENT SYSTEM |
$-0- |
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$3,000,000 |
Judges
Retirement Plan. In fiscal
year 2017 for transfer to the judges' retirement fund defined in Minnesota
Statutes, section 490.123. $6,000,000
each fiscal year is included in the base and the transfer continues each fiscal
year until the judges retirement plan reaches 100 percent funding as determined
by an actuarial valuation prepared under Minnesota Statutes, section 356.214.
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Sec. 8. MILITARY
AFFAIRS |
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$-0- |
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$248,000 |
Security
Improvement; General Support. For
payroll costs and contracted costs of training and testing to provide security
at state-owned Minnesota National Guard facilities.
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Sec. 9. VETERANS
AFFAIRS |
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Subdivision 1. Total
Appropriation |
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$-0- |
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$700,000 |
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Subd. 2. Cottages
of Anoka |
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-0- |
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100,000 |
$100,000 is to support nonprofit
organizations in providing rent subsidies for housing for veterans and their
families at the Cottages of Anoka.
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Subd. 3. State
Soldiers Assistance Grant |
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-0-
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200,000
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$200,000 is for the state soldiers
assistance fund, for housing assistance and health assistance to veterans.
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Subd. 4. Mental
Health Study |
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-0-
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150,000
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For the study and report in section 62. This is a onetime appropriation.
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Subd. 5. Disabled
Veterans Interim Housing Study |
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-0-
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250,000
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For the study and report in section 63. This is a onetime appropriation.
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Sec. 10. PUBLIC
SAFETY |
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$-0- |
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$88,000 |
$88,000 is for a grant to the Arrowhead
Regional Development Commission to conduct an assessment of law enforcement
needs for detention facilities in northeast Minnesota. This is a onetime appropriation.
Sec. 11. Minnesota Statutes 2014, section 3.3005, subdivision 3, is amended to read:
Subd. 3. State
match. If a request to spend federal
money is included in the governor's budget or spending the money is authorized
by law but the amount of federal money received that has been awarded
and requires a state match greater than that the amount that was
included in the budget request or authorized by law, the amount federal
funds that have been awarded that requires require an
additional state match may be allotted for expenditure after the requirements
of subdivision 5 or 6 are met.
Sec. 12. Minnesota Statutes 2014, section 3.3005, subdivision 3b, is amended to read:
Subd. 3b. Increase
in amount. If a request to spend
federal money is included in a governor's budget request and approved according
to subdivision 2 or 5 and the amount of money available awarded
increases after the request is made and authorized, the additional amount may
be allotted for expenditure after a revised request is submitted according to
subdivision 2, or the requirements of subdivision 4, 5, or 6 are
met.
Sec. 13. Minnesota Statutes 2014, section 3.3005, subdivision 4, is amended to read:
Subd. 4. Interim
procedures; urgencies. If federal
money becomes available is awarded to the state for expenditure
after the deadline in subdivision 2 or while the legislature is not in session,
and the availability of money from that source or for that purpose or in that
fiscal year could not reasonably have been anticipated and included in the
governor's budget request, and an urgency requires that all or part of the
money be allotted encumbered or expended before the legislature
reconvenes or prior to the end of the 20-day period specified in subdivision 2,
it may be allotted to a state agency after the requirements of subdivision 5
are met.
Sec. 14. Minnesota Statutes 2014, section 3.3005, subdivision 5, is amended to read:
Subd. 5. Legislative Advisory Commission review. Federal money that is awarded and becomes available under subdivision 3, 3a, 3b, or 4 may be allotted after the commissioner of management and budget has submitted the request to the members of the Legislative Advisory Commission for their review and recommendation for further review. If a recommendation is not made within ten days, no further review by the Legislative Advisory Commission is required, and the commissioner shall approve or disapprove the request. If a recommendation by any member is for further review the governor shall submit the request to the Legislative Advisory Commission for its review and recommendation. Failure or refusal of the commission to make a recommendation promptly is a negative recommendation.
Sec. 15. Minnesota Statutes 2014, section 3.3005, subdivision 6, is amended to read:
Subd. 6. Interim
procedures; nonurgencies. If federal
money becomes available to the state for expenditure after the deadline in
subdivision 2 or while the legislature is not in session, and subdivision 4
does not apply, a request to expend the that federal money may be
submitted by the commissioner of management and budget to members of the
Legislative Advisory Commission for their review and recommendation. This request must be submitted by the
later of October 1 of any year or 100 days before the start of
the next legislative session. If any
member of the commission makes a negative recommendation or a recommendation
for further review on a request by October 20 of the same year during
the 20-day period beginning the day the commissioner submits the request,
the commissioner shall not approve expenditure of that federal money. If a request to expend federal money submitted
under this subdivision receives a negative recommendation or a recommendation
for further review, the request may be submitted again under subdivision 2. If the members of the commission make a
positive recommendation or no recommendation, the commissioner shall may
approve or disapprove the request and the federal money may be allotted
for expenditure. The commissioner may
submit the request again under subdivision 2 if the request receives a negative
recommendation or a recommendation for further review under this subdivision.
Sec. 16. Minnesota Statutes 2014, section 3.3005, is amended by adding a subdivision to read:
Subd. 6a. Withdrawal
of commission recommendation. A
member of the commission, with written notice to the commissioner, may withdraw
a negative recommendation or a recommendation for further review within 20 days
of making the recommendation. If all
negative recommendations and all recommendations for further review have been
withdrawn, the commissioner may approve the expenditure of the federal money.
Sec. 17. Minnesota Statutes 2014, section 3.3005, is amended by adding a subdivision to read:
Subd. 9. Withdrawal
of request. The commissioner
of management and budget may, with written notice, withdraw any request to spend
federal money under this section. The
commissioner of an agency requesting to expend federal money under this section
may, with written notice, withdraw any request to spend federal money under
this section that was submitted by the commissioner's agency.
Sec. 18. Minnesota Statutes 2014, section 16A.103, is amended by adding a subdivision to read:
Subd. 1h. Revenue
uncertainty information. The
commissioner shall report to the legislature within 14 days of a forecast under
subdivision 1 on uncertainty in Minnesota's general fund revenue projections. The report shall present information on: (1) the estimated range of forecast error for
revenues; and (2) the data and methods used to construct those measurements.
Sec. 19. Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2, is amended to read:
Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general fund revenues and expenditures, the commissioner of management and budget determines that there will be a positive unrestricted budgetary general fund balance at the close of the biennium, the commissioner of management and budget must allocate money to the following accounts and purposes in priority order:
(1) the cash flow account established in subdivision 1 until that account reaches $350,000,000;
(2) the budget reserve account established
in subdivision 1a until that account reaches $810,992,000 $1,596,522,000;
(3) the amount necessary to increase the aid
payment schedule for school district aids and credits payments in section
127A.45 to not more than 90 percent rounded to the nearest tenth of a percent
without exceeding the amount available and with any remaining funds deposited
in the budget reserve; and
(4) the amount necessary to restore all or a
portion of the net aid reductions under section 127A.441 and to reduce the
property tax revenue recognition shift under section 123B.75, subdivision 5, by
the same amount;.
(5) the closed landfill investment fund
established in section 115B.421 until $63,215,000 has been transferred into the
account. This clause expires after the
entire amount of the transfer has been made; and
(6) the metropolitan landfill
contingency action trust account established in section 473.845 until
$8,100,000 has been transferred into the account. This clause expires after the entire amount
of the transfer has been made.
(b) The amounts necessary to meet the requirements of this section are appropriated from the general fund within two weeks after the forecast is released or, in the case of transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations schedules otherwise established in statute.
(c) The commissioner of management and budget shall certify the total dollar amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The commissioner of education shall increase the aid payment percentage and reduce the property tax shift percentage by these amounts and apply those reductions to the current fiscal year and thereafter.
Sec. 20. Minnesota Statutes 2015 Supplement, section 16C.073, subdivision 2, is amended to read:
Subd. 2. Purchases. (a) Whenever practicable, a public entity shall:
(1) purchase uncoated copy paper, office paper, and printing paper;
(2) purchase recycled content copy paper with at least 30 percent postconsumer material by weight and purchase printing and office paper with at least ten percent postconsumer material by weight;
(3) purchase copy, office, and printing paper which has not been dyed with colors, excluding pastel colors;
(4) purchase recycled content copy, office, and printing paper that is manufactured using little or no chlorine bleach or chlorine derivatives;
(5) use reusable binding materials or staples and bind documents by methods that do not use glue;
(6) use soy-based inks;
(7) purchase printer or duplication
cartridges that:
(i) have ten percent postconsumer
material; or
(ii) are purchased as remanufactured;
or
(iii) are backed by a vendor-offered
program that will take back the printer cartridges after their useful life, ensure that the cartridge is recycled, and comply
with the definition of recycling in section 115A.03, subdivision 25b;
(7) (8) produce reports,
publications, and periodicals that are readily recyclable; and
(8) (9) purchase paper which
has been made on a paper machine located in Minnesota.
(b) Paragraph (a), clause (1), does not apply to coated paper that is made with at least 50 percent postconsumer material.
(c) A public entity shall print documents on both sides of the paper where commonly accepted publishing practices allow.
Sec. 21. Minnesota Statutes 2014, section 16E.0466, is amended to read:
16E.0466
STATE AGENCY TECHNOLOGY PROJECTS.
(a) Every state agency with an information or telecommunications project must consult with the Office of MN.IT Services to determine the information technology cost of the project. Upon agreement between the commissioner of a particular agency and the chief information officer, the agency must transfer the information technology cost portion of the project to the Office of MN.IT Services. Service level agreements must document all project-related transfers under this section. Those agencies specified in section 16E.016, paragraph (d), are exempt from the requirements of this section.
(b) Notwithstanding section 16A.28,
subdivision 3, any unexpended operating balance appropriated to a state agency
may be transferred to the information and telecommunications technology systems
and services account for the information technology cost of a specific project,
subject to the review of the Legislative Advisory Commission, under section
16E.21, subdivision 3.
Sec. 22. Minnesota Statutes 2014, section 16E.21, subdivision 2, is amended to read:
Subd. 2. Charges. Upon agreement of the participating agency, the Office of MN.IT Services may collect a charge or receive a fund transfer under section 16E.0466 for purchases of information and telecommunications technology systems and services by state agencies and other governmental entities through state contracts for purposes described in subdivision 1. Charges collected under this section must be credited to the information and telecommunications technology systems and services account.
Sec. 23. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision to read:
Subd. 3. Legislative
Advisory Commission review. (a)
No funds may be transferred to the information and telecommunications technology
systems and services account under subdivision 2 or section 16E.0466 until the
commissioner of management and budget has submitted the proposed transfer to
the members of the Legislative Advisory Commission for review and
recommendation. If the commission makes
a positive recommendation or no recommendation, or if the commission has not
reviewed the request within 20 days after the date the request to transfer
funds was submitted, the commissioner of management and budget may approve the
request to transfer the funds. If the
commission recommends further review of a request to transfer funds, the
commissioner shall provide additional information to the commission. If the commission makes a negative
recommendation on the request within ten days of receiving further information,
the commissioner shall not approve the fund transfer. If the commission makes a positive
recommendation or no recommendation within ten days of receiving further
information, the commissioner may approve the fund transfer.
(b) A recommendation of the commission
must be made at a meeting of the commission unless a written recommendation is
signed by all members entitled to vote on the item as specified in section
3.30, subdivision 2. A recommendation of
the commission must be made by a majority of the commission.
Sec. 24. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision to read:
Subd. 4. Lapse. Any portion of any receipt credited to
the information and telecommunications technology systems and services account
from a fund transfer under subdivision 2 that remains unexpended and
unencumbered at the close of the fiscal year four years after the funds were
received in the account shall lapse to the fund from which the receipt was
transferred.
Sec. 25. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision to read:
Subd. 5. Report. The chief information officer shall
report by September 15 of each odd-numbered year to the chairs and ranking
minority members of the legislative committees and divisions with jurisdiction
over the Office of MN.IT Services regarding the receipts credited to the
account. The report must include a
description of projects funded through the information and telecommunications
technology systems and services account and each project's current status.
Sec. 26. Minnesota Statutes 2014, section 116J.8737, subdivision 2, is amended to read:
Subd. 2. Certification of qualified small businesses. (a) Businesses may apply to the commissioner for certification as a qualified small business or qualified greater Minnesota small business for a calendar year. The application must be in the form and be made under the procedures specified by the commissioner, accompanied by an application fee of $150. Application fees are deposited in the small business investment tax credit administration account in the special revenue fund. The application for certification for 2010 must be made available on the department's Web site by August 1, 2010. Applications for subsequent years' certification must be made available on the department's Web site by November 1 of the preceding year.
(b) Within 30 days of receiving an application for certification under this subdivision, the commissioner must either certify the business as satisfying the conditions required of a qualified small business or qualified greater Minnesota small business, request additional information from the business, or reject the application for certification. If the commissioner requests additional information from the business, the commissioner must either certify the business or reject the application within 30 days of receiving the additional information. If the commissioner neither certifies the business nor rejects the application within 30 days of receiving the original application or within 30 days of receiving the additional information requested, whichever is later, then the application is deemed rejected, and the commissioner must refund the $150 application fee. A business that applies for certification and is rejected may reapply.
(c) To receive certification as a qualified small business, a business must satisfy all of the following conditions:
(1) the business has its headquarters in Minnesota;
(2) at least: (i) 51 percent of the business's
employees are employed in Minnesota, and; (ii) 51 percent of the
business's total payroll is paid or incurred in the state; and (iii) 51
percent of the total value of all contractual agreements to which the business
is a party in connection with its primary business activity is for services
performed under contract in Minnesota, unless the business obtains a waiver
under paragraph (i);
(3) the business is engaged in, or is committed to engage in, innovation in Minnesota in one of the following as its primary business activity:
(i) using proprietary technology to add value to a product, process, or service in a qualified high-technology field;
(ii) researching or developing a proprietary product, process, or service in a qualified high-technology field;
(iii) researching or developing a proprietary product, process, or service in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation; or
(iv) researching, developing, or producing a new proprietary technology for use in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
(4) other than the activities specifically listed in clause (3), the business is not engaged in real estate development, insurance, banking, lending, lobbying, political consulting, information technology consulting, wholesale or retail trade, leisure, hospitality, transportation, construction, ethanol production from corn, or professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants;
(5) the business has fewer than 25 employees;
(6) the business must pay its employees annual wages of at least 175 percent of the federal poverty guideline for the year for a family of four and must pay its interns annual wages of at least 175 percent of the federal minimum wage used for federally covered employers, except that this requirement must be reduced proportionately for employees and interns who work less than full-time, and does not apply to an executive, officer, or member of the board of the business, or to any employee who owns, controls, or holds power to vote more than 20 percent of the outstanding securities of the business;
(7) the business has (i) not been in operation for more than ten years, or (ii) not been in operation for more than 20 years if the business is engaged in the research, development, or production of medical devices or pharmaceuticals for which United States Food and Drug Administration approval is required for use in the treatment or diagnosis of a disease or condition;
(8) the business has not previously received private equity investments of more than $4,000,000;
(9) the business is not an entity disqualified under section 80A.50, paragraph (b), clause (3); and
(10) the business has not issued securities that are traded on a public exchange.
(d) In applying the limit under paragraph (c), clause (5), the employees in all members of the unitary business, as defined in section 290.17, subdivision 4, must be included.
(e) In order for a qualified investment in a business to be eligible for tax credits:
(1) the business must have applied for and received certification for the calendar year in which the investment was made prior to the date on which the qualified investment was made;
(2) the business must not have issued securities that are traded on a public exchange;
(3) the business must not issue securities that are traded on a public exchange within 180 days after the date on which the qualified investment was made; and
(4) the business must not have a liquidation event within 180 days after the date on which the qualified investment was made.
(f) The commissioner must maintain a list of qualified small businesses and qualified greater Minnesota businesses certified under this subdivision for the calendar year and make the list accessible to the public on the department's Web site.
(g) For purposes of this subdivision, the following terms have the meanings given:
(1) "qualified high-technology field" includes aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical device products, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields;
(2) "proprietary technology" means the technical innovations that are unique and legally owned or licensed by a business and includes, without limitation, those innovations that are patented, patent pending, a subject of trade secrets, or copyrighted; and
(3) "greater Minnesota" means the area of Minnesota located outside of the metropolitan area as defined in section 473.121, subdivision 2.
(h) To receive certification as a qualified greater Minnesota business, a business must satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:
(1) the business has its headquarters in greater Minnesota; and
(2) at least: (i) 51 percent of the business's
employees are employed in greater Minnesota, and; (ii) 51 percent
of the business's total payroll is paid or incurred in greater Minnesota.;
and (iii) 51 percent of the total value of all contractual agreements to which
the business is a party in connection with its primary business activity is for
services performed under contract in greater Minnesota, unless the business
obtains a waiver under paragraph (i).
(i) The commissioner must exempt a
business from the requirement under paragraph (c), clause (2), item (iii), if
the business certifies to the commissioner that the services required under a
contract in connection with the primary business activity cannot be performed
in Minnesota if the business otherwise qualifies as a qualified small business,
or in greater Minnesota if the business otherwise qualifies as a qualified
greater Minnesota business. The business
must submit the certification required under this paragraph every six months
from the month the exemption was granted.
The exemption allowed under this paragraph must be submitted in a form
and manner prescribed by the commissioner.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 27. Minnesota Statutes 2014, section 116J.8737, subdivision 5, is amended to read:
Subd. 5. Credit allowed. (a)(1) A qualified investor or qualified fund is eligible for a credit equal to 25 percent of the qualified investment in a qualified small business. Investments made by a pass-through entity qualify for a credit only if the entity is a qualified fund. The commissioner must not allocate more than $15,000,000 in credits to qualified investors or qualified funds for taxable years beginning after December 31, 2013, and before January 1, 2017, and must not allocate more than $10,000,000 in credits to qualified investors or qualified funds for taxable years beginning after December 31, 2016, and before January 1, 2018; and
(2) for taxable years beginning after
December 31, 2014, and before January 1, 2017 2018, $7,500,000
50 percent must be allocated to credits for qualifying investments in
qualified greater Minnesota businesses and minority- or women-owned qualified
small businesses in Minnesota. Any
portion of a taxable year's credits that is reserved for qualifying investments
in greater Minnesota businesses and minority- or women-owned qualified small
businesses in Minnesota that is not allocated by September 30 of the taxable
year is available for allocation to other credit applications beginning on
October 1. Any portion of a taxable
year's credits that is not allocated by the commissioner does not cancel and
may be carried forward to subsequent taxable years until all credits have been
allocated.
(b) The commissioner may not allocate more than a total maximum amount in credits for a taxable year to a qualified investor for the investor's cumulative qualified investments as an individual qualified investor and as an investor in a qualified fund; for married couples filing joint returns the maximum is $250,000, and for all other filers the maximum is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits over all taxable years for qualified investments in any one qualified small business.
(c) The commissioner may not allocate a credit to a qualified investor either as an individual qualified investor or as an investor in a qualified fund if, at the time the investment is proposed:
(1) the investor is an officer or principal of the qualified small business; or
(2) the investor, either individually or in combination with one or more members of the investor's family, owns, controls, or holds the power to vote 20 percent or more of the outstanding securities of the qualified small business.
A member of the family of an individual disqualified by this paragraph is not eligible for a credit under this section. For a married couple filing a joint return, the limitations in this paragraph apply collectively to the investor and spouse. For purposes of determining the ownership interest of an investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal Revenue Code apply.
(d) Applications for tax credits for 2010 must be made available on the department's Web site by September 1, 2010, and the department must begin accepting applications by September 1, 2010. Applications for subsequent years must be made available by November 1 of the preceding year.
(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. Tax credits must be allocated to qualified investors or qualified funds in the order that the tax credit request applications are filed with the department. The commissioner must approve or reject tax credit request applications within 15 days of receiving the application. The investment specified in the application must be made within 60 days of the allocation of the credits. If the investment is not made within 60 days, the credit allocation is canceled and available for reallocation. A qualified investor or qualified fund that fails to invest as specified in the application, within 60 days of allocation of the credits, must notify the commissioner of the failure to invest within five business days of the expiration of the 60-day investment period.
(f) All tax credit request applications filed with the department on the same day must be treated as having been filed contemporaneously. If two or more qualified investors or qualified funds file tax credit request applications on the same day, and the aggregate amount of credit allocation claims exceeds the aggregate limit of credits under this section or the lesser amount of credits that remain unallocated on that day, then the credits must be allocated among the qualified investors or qualified funds who filed on that day on a pro rata basis with respect to the amounts claimed. The pro rata allocation for any one qualified investor or qualified fund is the product obtained by multiplying a fraction, the numerator of which is the amount of the credit allocation claim filed on behalf of a qualified investor and the denominator of which is the total of all credit allocation claims filed on behalf of all applicants on that day, by the amount of credits that remain unallocated on that day for the taxable year.
(g) A qualified investor or qualified fund, or a qualified small business acting on their behalf, must notify the commissioner when an investment for which credits were allocated has been made, and the taxable year in which the investment was made. A qualified fund must also provide the commissioner with a statement indicating the amount invested by each investor in the qualified fund based on each investor's share of the assets of the qualified fund at the time of the qualified investment. After receiving notification that the investment was made, the commissioner must issue credit certificates for the taxable year in which the investment was made to the qualified investor or, for an investment made by a qualified fund, to each qualified investor who is an investor in the fund. The certificate must state that the credit is subject to revocation if the qualified investor or qualified fund does not hold the investment in the qualified small business for at least three years, consisting of the calendar year in which the investment was made and the two following years. The three-year holding period does not apply if:
(1) the investment by the qualified investor or qualified fund becomes worthless before the end of the three-year period;
(2) 80 percent or more of the assets of the qualified small business is sold before the end of the three-year period;
(3) the qualified small business is sold before the end of the three-year period;
(4) the qualified small business's common stock begins trading on a public exchange before the end of the three-year period; or
(5) the qualified investor dies before the end of the three-year period.
(h) The commissioner must notify the commissioner of revenue of credit certificates issued under this section.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2016.
Sec. 28. Minnesota Statutes 2014, section 116J.8737, subdivision 12, is amended to read:
Subd. 12. Sunset. This section expires for taxable years beginning
after December 31, 2016 2017, except that reporting requirements
under subdivision 6 and revocation of credits under subdivision 7 remain in
effect through 2018 2019 for qualified investors and qualified
funds, and through 2020 2021 for qualified small businesses,
reporting requirements under subdivision 9 remain in effect through 2021
2022, and the appropriation in subdivision 11 remains in effect through 2020
2021.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 29. Minnesota Statutes 2014, section 154.001, subdivision 2, is amended to read:
Subd. 2. Board
of Barber Examiners. (a) A Board of
Barber Examiners is established to consist of three four barber
members and one public member, as defined in section 214.02, appointed by the
governor.
(b) The barber members shall be persons who have practiced as registered barbers in this state for at least five years immediately prior to their appointment; shall be graduates from the 12th grade of a high school or have equivalent education, and shall have knowledge of the matters to be taught in registered barber schools, as set forth in section 154.07. One of the barber members shall be a member of, or recommended by, a union of journeymen barbers that has existed at least two years, and one barber member shall be a member of, or recommended by, a professional organization of barbers.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 30. Minnesota Statutes 2014, section 154.002, is amended to read:
154.002
OFFICERS; COMPENSATION; FEES; EXPENSES.
The Board of Barber Examiners shall annually elect a chair and secretary. It shall adopt and use a common seal for the authentication of its orders and records. The board shall appoint an executive secretary or enter into an interagency agreement to procure the services of an executive secretary. The executive secretary shall not be a member of the board and shall be in the unclassified civil service. The position of executive secretary may be a part-time position.
The executive secretary shall keep a record of all proceedings of the board. The expenses of administering this chapter shall be paid from the appropriations made to the Board of Barber Examiners.
Each member of the board shall take the oath provided by law for public officers.
A majority of the board, in meeting assembled, may perform and exercise all the duties and powers devolving upon the board.
The members of the board shall receive compensation, as provided in section 214.09, for each day spent on board activities, but not to exceed 20 days in any calendar month nor 100 days in any calendar year.
The board shall have authority to employ such inspectors, clerks, deputies, and other assistants as it may deem necessary to carry out the provisions of this chapter.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 31. Minnesota Statutes 2015 Supplement, section 154.003, is amended to read:
154.003
FEES.
(a) The fees collected, as required in this chapter, chapter 214, and the rules of the board, shall be paid to the board. The board shall deposit the fees in the general fund in the state treasury.
(b) The board shall charge the following fees:
(1) examination and certificate, registered barber, $85;
(2) retake of written examination, registered
barber, $10;
(3) examination and certificate,
apprentice, $80;
(4) retake of written examination,
apprentice, $10;
(5) (3) examination and certificate, instructor, $180;
(6) (4) certificate,
instructor, $65;
(7) (5) temporary teacher or
apprentice permit, $80;
(8) (6) temporary registered
barber, military, $85;
(9) (7) temporary barber
instructor, military, $180;
(10) temporary apprentice barber,
military, $80;
(11) (8) renewal of
registration, registered barber, $80;
(12) renewal of registration, apprentice,
$70;
(13) (9) renewal of
registration, instructor, $80;
(14) (10) renewal of temporary
teacher permit, $65;
(15) (11) student permit, $45;
(16) (12) renewal of student
permit, $25;
(17) (13) initial shop
registration, $85;
(18) (14) initial school
registration, $1,030;
(19) (15) renewal shop
registration, $85;
(20) (16) renewal school
registration, $280;
(21) (17) restoration of
registered barber registration, $95;
(22) restoration of apprentice
registration, $90;
(23) (18) restoration of shop
registration, $105;
(24) (19) change of ownership
or location, $55;
(25) (20) duplicate
registration, $40;
(26) (21) home study course,
$75;
(27) (22) letter of
registration verification, $25; and
(28) (23) reinspection,
$100.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 32. Minnesota Statutes 2014, section 154.01, is amended to read:
154.01
REGISTRATION MANDATORY.
(a) The registration of the practice of
barbering serves the public health and safety of the people of the state of
Minnesota by ensuring that individuals seeking to practice the profession of
barbering are appropriately trained in the use of the chemicals, tools, and
implements of barbering and demonstrate the skills necessary to conduct barber
services in a safe, sanitary, and appropriate environment required for
infection control.
(a) (b) No person shall
practice, offer to practice, or attempt to practice barbering without a current
certificate of registration as a registered barber, issued pursuant to
provisions of sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162,
154.19 to 154.21, and 154.24 to 154.26 154.28 by the Board of
Barber Examiners.
(b) No person shall serve, offer to
serve, or attempt to serve as an apprentice under a registered barber without a
current certificate of registration as a registered apprentice or temporary
apprentice permit issued pursuant to provisions of sections 154.001, 154.002,
154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 by the Board
of Barber Examiners. The registered
apprentice shall, prior to or immediately upon issuance of the apprentice's
certificate of registration, and immediately after changing employment, advise
the board of the name, address, and certificate number of the registered barber
under whom the registered apprentice is working.
(c) A registered barber must only
provide barbering services in a registered barber shop or barber school, unless
prior authorization is given by the board.
(c) (d) No person shall
operate a barber shop unless it is at all times under the direct supervision
and management of a registered barber and the owner or operator of the barber
shop possesses a current shop registration card, issued to the barber shop
establishment address, under sections 154.001, 154.002, 154.003, 154.01 to 154.161
154.162, 154.19 to 154.21, and 154.24 to 154.26 154.28 by
the Board of Barber Examiners.
(d) (e) No person shall
serve, offer to serve, or attempt to serve as an instructor of barbering
without a current certificate of registration as a registered instructor of
barbering or a temporary permit as an instructor of barbering, as provided for
the board by rule, issued under sections 154.001, 154.002, 154.003, 154.01 to 154.161
154.162, 154.19 to 154.21, and 154.24 to 154.26 154.28 by
the Board of Barber Examiners. Barber
instruction must be provided in registered barber schools only.
(e) (f) No person shall
operate a barber school unless the owner or operator possesses a current
certificate of registration as a barber school, issued under sections 154.001,
154.002, 154.003, 154.01 to 154.161 154.162, 154.19 to 154.21,
and 154.24 to 154.26 154.28 by the Board of Barber Examiners.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 33. Minnesota Statutes 2014, section 154.02, is amended to read:
154.02
WHAT CONSTITUTES BARBERING DEFINITIONS.
Subdivision 1. What
constitutes barbering. Any one
or any combination of the following practices when done upon the head, face,
and neck for cosmetic purposes and not for the treatment of disease or physical
or mental ailments and when done for payment directly or indirectly or without
payment for the public generally constitutes the practice of barbering within
the meaning of sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162,
154.19 to 154.21, and 154.24 to 154.26 154.28: to shave the face or neck, trim the beard, clean,
condition, cut or bob, color, shape, or straighten the hair
of any person of either sex for compensation or other reward received by the
person performing such service or any other person; to give facial and scalp
massage or treatments with oils, creams, lotions, or other preparations
either by hand or mechanical appliances; to singe, shampoo the hair, or apply
hair tonics; or to apply cosmetic preparations, antiseptics, powders, oils,
clays, or lotions to hair, scalp, face, or neck.
Subd. 2. Barber
school. A "barber school"
is a place that holds a registration as a barber school in which barbering, as
defined in subdivision 1, is practiced by registered student barbers under the
direction of registered barber instructors for the purpose of learning and
teaching barber skills.
Subd. 3. Barber
shop. A "barber
shop" is a place other than a barber school that holds a registration as a
barber shop under this chapter in which barbering, as defined in subdivision 1,
is practiced.
Subd. 4. Certificate
of registration. A "certificate
of registration" means the certificate issued to an individual, barber
shop, or barber school that is in compliance with the requirements of sections
154.001, 154.002, 154.003, 154.01 to 154.162, 154.19 to 154.21, and 154.24 to
154.28.
Subd. 5. Designated
registered barber. The
"designated registered barber" is a registered barber designated as
the manager of a barber shop.
Subd. 6. Registered
barber. A "registered
barber" is an individual who, for compensation, performs the personal
services as defined in subdivision 1, in compliance with this chapter.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 34. Minnesota Statutes 2014, section 154.04, is amended to read:
154.04
PERSONS EXEMPT FROM REGISTRATION.
The following persons are exempt from the
provisions of sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162,
154.19 to 154.21, and 154.24 to 154.26 154.28 while in the proper
discharge of their professional duties:
(1) persons authorized by the law of this state to practice medicine, surgery, osteopathy, and chiropractic;
(2) commissioned medical or surgical officers of the United States armed services;
(3) registered nurses, licensed practical nurses, and nursing aides performing services under the direction and supervision of a licensed physician or licensed registered nurse, provided, however, that no additional compensation shall be paid for such service and patients who are so attended shall not be charged for barbering;
(4) licensed cosmetologists, when
providing cosmetology services as defined in section 155A.23, subdivision 3,
provided, however, that cosmetologists shall not hold themselves out as barbers
or, except in the case of nail technicians, practice their occupation in
a barber shop; and
(5) persons who perform barbering services for charitable purposes in nursing homes, shelters, missions, individual homes, or other similar facilities, provided, however, that no direct or indirect compensation is received for the services, and that persons who receive barbering services are not charged for the services.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 35. Minnesota Statutes 2014, section 154.05, is amended to read:
154.05
WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A REGISTERED BARBER.
(a) A person is qualified to receive a certificate of registration as a registered barber if the person:
(1) who is qualified under the
provisions of section 154.06 has successfully completed ten grades of
education;
(2)
who has practiced as a registered apprentice for a period of 12 months under
the immediate personal supervision of a registered barber; and (2) has
successfully completed 1,500 hours of study in a board-approved barber school;
and
(3) who has passed an examination
conducted by the board to determine fitness to practice barbering
(3) has passed an examination conducted by the board to determine fitness to practice barbering.
An apprentice (b) A first-time
applicant for a certificate of registration to practice as a registered barber
who fails to pass the comprehensive examination conducted by the board and who
fails to pass a onetime retake of the written examination, shall continue to
practice as an apprentice for complete an additional 300 500
hours of barber education before being eligible to retake the
comprehensive examination as many times as necessary to pass.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 36. Minnesota Statutes 2014, section 154.065, subdivision 2, is amended to read:
Subd. 2. Qualifications. A person is qualified to receive a certificate of registration as an instructor of barbering who:
(1) is a graduate of an approved high school, or its equivalent, as determined by examination by the Department of Education;
(2) has successfully completed vocational instructor training from a board-approved program or accredited college or university program that includes the following courses or their equivalents as determined by the board:
(i) introduction to career and technical education training;
(ii) philosophy and practice of career and technical education;
(iii) course development for career and technical education;
(iv) instructional methods for career and technical education; and
(v) human relations;
(3) is currently a registered barber and has at least three years experience as a registered barber in this state, or its equivalent in another state or jurisdiction as determined by the board; and
(4) has passed an examination conducted by the board to determine fitness to instruct in barbering.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 37. Minnesota Statutes 2014, section 154.065, subdivision 4, is amended to read:
Subd. 4. Examinations. Examinations under this section shall be
held not to exceed twice a year at times and at a place or places to be
determined by the board. In case of an
emergency, there being no registered instructor of barbering available, a
temporary certificate as an instructor of barbering, valid only until the
results of the next examination are released, may be issued upon such terms
and conditions as the board may prescribe.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 38. Minnesota Statutes 2014, section 154.07, is amended to read:
154.07
BARBER SCHOOLS; REQUIREMENTS.
Subdivision 1. Admission
requirements; course of instruction. No
barber school shall be approved by the board unless it requires, as a
prerequisite to admission, ten grades of an approved school or its equivalent,
as determined by educational transcript, high school diploma, high school
equivalency certificate, or an examination conducted by the commissioner of
education, which shall issue a certificate that the student has passed the
required examination, and unless it requires, as a prerequisite to graduation,
a course of instruction of at least 1,500 hours, of not more than eight
ten hours of schooling in any one working day. The course of instruction must include the
following subjects: scientific
fundamentals for barbering; hygiene; practical study of the hair, skin,
muscles, and nerves; structure of the head, face, and neck; elementary
chemistry relating to sanitation; disinfection; sterilization and
antiseptics; diseases of the skin, hair, and glands; massaging and manipulating
the muscles of the face and neck; haircutting; shaving; trimming the beard;
bleaching, tinting and dyeing the hair; and the chemical waving and
straightening of hair.
Subd. 3. Costs. It is permissible for barber schools to make a reasonable charge for materials used and services rendered by students for work done in the schools by students.
Subd. 3a. Number
of instructors. There must be one
registered instructor of barbering for every 17 20 students or
minor fraction in excess of 17 in attendance at the same time. Instruction must not be performed by persons
not possessing a certificate of registration as an instructor of barbering or a
temporary permit as an instructor of barbering.
Subd. 4. Building requirements. Each barber school must be conducted and operated in one building, or in connecting buildings, and a barber school must not have any department or branch in a building completely separated or removed from the remainder of the barber school.
Subd. 5. Owner's
requirements. Any person may own and
operate a barber school if the person has had six years' continuous
experience as a barber, provided the person first secures from the board an
annual certificate of registration as a barber school, keeps it prominently
displayed, and before commencing business:
(1) files with the secretary of state a
bond to the state approved by the attorney general in the sum of $25,000,
conditioned upon the faithful compliance of the barber school with sections
154.001, 154.002, 154.003, 154.01 to 154.161 154.162, 154.19 to
154.21, and 154.24 to 154.26 154.28, and to pay all judgments
that may be obtained against the school, or the owners thereof, on account of
fraud, misrepresentation, or deceit practiced by them or their agents; and
(2) keeps prominently displayed on the exterior a substantial sign indicating that the establishment is a barber school.
Subd. 5a. Student permits. All barber schools upon receiving students shall immediately apply to the board for student permits upon forms for that purpose furnished by the board.
Subd. 5b. Designated operator. All barber schools shall be operated by a barber with no less than six years of continuous experience as a registered barber in this state or another state or jurisdiction as determined by the board. When a person who owns a barber school does not meet the requirements of this section to operate a barber school, the owner shall notify the board in writing and under oath of the identity of the person designated to operate the barber school and shall notify the board of any change of operator by telephone within 24 hours of such change, exclusive of Saturdays, Sundays, and legal holidays, and shall notify the board in writing and under oath within 72 hours of such change.
Subd. 6. Operation
by technical college or state institution.
A public technical college or a state institution may operate a
barber school provided it has in its employment a qualified instructor holding
a current certificate of registration as a barber instructor and provided that
it secures from the board an annual certificate of registration and does so in
accordance with sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162,
154.19 to 154.21, and 154.24 to 154.26 154.28 and the rules of
the board for barber schools but without the requirement to file a performance
bond with the secretary of state.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 39. Minnesota Statutes 2014, section 154.08, is amended to read:
154.08
APPLICATION; FEE.
Each applicant for an examination shall:
(1) make application to the Board of Barber Examiners on blank forms prepared and furnished by it, the application to contain proof under the applicant's oath of the particular qualifications and identity of the applicant;
(2) provide all documentation required in support of the application;
(3) pay to the board the required fee; and
(4) present a government-issued photo
identification as proof of identity upon acceptance of the notarized
application and present a corresponding government-issued photo
identification when the applicant appears for examination.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 40. Minnesota Statutes 2014, section 154.09, is amended to read:
154.09
EXAMINATIONS, CONDUCT AND SCOPE.
The board shall conduct examinations of
applicants for certificates of registration to practice as registered
barbers and apprentices not more than six times each year, at such time
and place as the board may determine. Additional
written examinations may be scheduled by the board and conducted by board staff
as designated by the board. The
proprietor of a barber school must file an affidavit with the board of hours
completed by students applying to take the apprentice registered
barber examination. Students must
complete 1,500 hours the full 1,500-hour curriculum in a barber
school approved by the board within the past four years to be eligible for
examination. Barber students who have
completed barber school more than four years prior to application, that have
not obtained a barber registration, license, or certificate in any jurisdiction
must complete an additional 500 hours of barber school education to be eligible
for the registered barber examination. Registered
barbers that fail to renew their registration for four or more years are
required to take the registered barber examination to reinstate the
registration.
The examination of applicants for
certificates of registration as barbers and apprentices shall include a
practical demonstration and a written and oral test. The examination must cover the subjects usually
taught in barber schools registered with the board, including applicable
state statute and rule.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 41. Minnesota Statutes 2014, section 154.10, subdivision 2, is amended to read:
Subd. 2. Certificates
of registration; fees. When the
provisions of this chapter have been complied with, the board shall issue a
certificate of registration as a registered barber, as a registered
apprentice, as a registered instructor of barbering, or as a registered
barber school, a temporary apprentice permit, a temporary permit as an
instructor of barbering, or a barber shop registration card upon payment
of the required fee. Certificates of
registration, temporary permits, and shop registration cards are not
transferable.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 42. Minnesota Statutes 2014, section 154.11, subdivision 1, is amended to read:
Subdivision 1. Examination
of nonresidents. (a) A person
who meets all of the requirements for barber registration in sections 154.001,
154.002, 154.003, 154.01 to 154.161 154.162, 154.19 to 154.21,
and 154.24 to 154.26 154.28 and either has a currently active
license, certificate of registration, or an equivalent as a practicing
barber or instructor of barbering as verified from another state or,
if presenting foreign country credentials as verified by a
board-approved professional credential evaluation provider, which in the
discretion of the board has substantially the same requirements for registering
barbers and instructors of barbering as required by sections 154.001, 154.002,
154.003, 154.01 to 154.161 154.162, 154.19 to 154.21, and 154.24
to 154.26 or can prove by sworn affidavits practice as a barber or
instructor of barbering in another state or country for at least five years
immediately prior to making application in this state, 154.28 shall,
upon payment of the required fee, be issued a certificate of registration
without examination.
(b) Individuals without a current
documented license, certificate of registration, or equivalent, as verified in
paragraph (a), must have a minimum of 1,500 hours of barber education as
verified by the barber school attended in the other state or if presenting
foreign country education as verified by a board-approved professional
credential evaluation provider, completed within the previous four years,
which, in the discretion of the board, has substantially the same requirements
as required in sections 154.001, 154.002, 154.003, 154.01 to 154.162, 154.19 to
154.21, and 154.24 to 154.28 will be eligible for examination.
(c) Individuals unable to meet the
requirements in paragraph (a) or (b) shall be subject to all the requirements
of section 154.05.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 43. Minnesota Statutes 2015 Supplement, section 154.11, subdivision 3, is amended to read:
Subd. 3. Temporary military permits. (a) In accordance with section 197.4552, the board shall issue a temporary:
(1) permit for apprentice barbers;
(2) (1) certificate for
registered barbers; and
(3) (2) certificate for
registered barber instructors.
(b) Fees for temporary military permits and certificates of registration under this subdivision are listed under section 154.003.
(c) Permits or certificates of registration issued under this subdivision are valid for one year from the date of issuance, after which the individual must complete a full application as required by section 197.4552.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 44. Minnesota Statutes 2014, section 154.14, is amended to read:
154.14
CERTIFICATES OF REGISTRATION AND TEMPORARY PERMITS TO BE DISPLAYED.
Every holder of a certificate of
registration as a registered barber or registered apprentice or temporary
apprentice permit shall display the certificate or permit, with a
photograph of the certificate or permit holder that meets the same standards as
required for a United States passport, in a conspicuous place adjacent to or
near the chair where work is performed. Every
holder of a certificate of registration as an instructor of barbering or a
temporary permit as an instructor of barbering shall display the certificate or
permit, with a photograph of the certificate or permit holder that meets the
same standards as required for a United States passport, in a conspicuous place
within the barber school that is accessible to the public. Every holder of a certificate of registration
as a barber school and of a barber shop registration card shall display
it in a conspicuous place within the establishment that is accessible to
the public.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 45. Minnesota Statutes 2014, section 154.15, is amended to read:
154.15
CERTIFICATES OF REGISTRATION MUST BE RENEWED ANNUALLY.
Subdivision 1. Annual
renewal required. All registered
barbers, registered apprentices, and registered instructors of barbering
who continue in active practice or service shall, on or before December 31 each
year, renew their certificates of registration for the following year and pay
the required fee. Every certificate of
registration which has not been renewed during the month of December in any
year shall expire on the 31st day of December in that year. All shop registration cards shall be renewed
on or before June 30 of each year upon payment of the required fee. All certificates of registration as a barber
school shall be renewed on or before December 31 of each year upon payment of
the required fee.
Subd. 2. Effect
of failure to renew. A registered
barber or a registered apprentice who has not renewed a certificate of
registration may be reinstated within four years of such failure to renew
without examination upon the payment of the required restoration fee for each
year the certificate is lapsed. A
registered instructor of barbering who has not renewed a certificate of
registration may be reinstated within four years of such failure to renew
without examination upon payment of the required restoration fee for each year
the certificate is lapsed. All
registered barbers and registered apprentices who allow their
certificates of registration to lapse for more than four years shall be
required to reexamine before being issued a certificate of registration. All registered instructors of barbering who
allow their certificates of registration to lapse for more than four years
shall be required to reexamine before being issued a certificate of
registration. A barber shop owner who
has not renewed the barber shop certificate for more than one year may
reinstate the barber shop registration upon payment of the restoration fee for
each year the shop card was lapsed. If
lapsed or unregistered status is discovered by the barber inspector during
inspection, penalties under section 154.162 shall apply.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 46. Minnesota Statutes 2015 Supplement, section 154.161, subdivision 4, is amended to read:
Subd. 4. Registration
actions. (a) With respect to a
person who is a holder of or applicant for registration or a shop registration
card under sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162,
154.19 to 154.21, and 154.24 to 154.26 154.28, the board may by
order deny, refuse to renew, suspend, temporarily suspend, or revoke the
application, certificate of registration, or shop registration card, censure or
reprimand the person, refuse to permit the person to sit for examination, or
refuse to release the person's examination grades, if the board finds that such
an order is in the public interest and that, based on a preponderance of the
evidence presented, the person has:
(1) violated a statute, rule, or order that the board has adopted or issued or is empowered to enforce;
(2) engaged in conduct or acts that are fraudulent, deceptive, or dishonest, whether or not the conduct or acts relate to the practice of barbering, if the fraudulent, deceptive, or dishonest conduct or acts reflect adversely on the person's ability or fitness to engage in the practice of barbering;
(3) engaged in conduct or acts that constitute malpractice, are negligent, demonstrate incompetence, or are otherwise in violation of the standards in the rules of the board, where the conduct or acts relate to the practice of barbering;
(4) employed fraud or deception in obtaining a certificate of registration, shop registration card, renewal, or reinstatement, or in passing all or a portion of the examination;
(5) had a certificate of registration or shop registration card, right to examine, or other similar authority revoked in another jurisdiction;
(6) failed to meet any requirement for issuance or renewal of the person's certificate of registration or shop registration card;
(7) practiced as a barber while having an infectious or contagious disease;
(8) advertised by means of false or deceptive statements;
(9) demonstrated intoxication or indulgence in the use of drugs, including but not limited to narcotics as defined in section 152.01 or in United States Code, title 26, section 4731, barbiturates, amphetamines, benzedrine, dexedrine, or other sedatives, depressants, stimulants, or tranquilizers;
(10) demonstrated unprofessional conduct or practice;
(11) permitted an employee or other person
under the person's supervision or control to practice as a registered barber, registered
apprentice, or registered instructor of barbering unless that person has
(i) a current certificate of registration as a registered barber, registered
apprentice, or registered instructor of barbering, (ii) a temporary
apprentice permit, or (iii) a temporary permit as an instructor of barbering;
(12) practices, offered to practice, or attempted to practice by misrepresentation;
(13) failed to display a certificate of registration as required by section 154.14;
(14) used any room or place of barbering that is also used for any other purpose, or used any room or place of barbering that violates the board's rules governing sanitation;
(15) in the case of a barber,
apprentice, or other person working in or in charge of any barber shop, or
any person in a barber school engaging in the practice of barbering, failed to
use separate and clean towels for each customer or patron, or to discard and
launder each towel after being used once;
(16) in the case of a barber or other person in charge of any barber shop or barber school, (i) failed to supply in a sanitary manner clean hot and cold water in quantities necessary to conduct the shop or barbering service for the school, (ii) failed to have water and sewer connections from the shop or barber school with municipal water and sewer systems where they are available for use, or (iii) failed or refused to maintain a receptacle for hot water of a capacity of at least five gallons;
(17)
refused to permit the board to make an inspection permitted or required by
sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162,
154.19 to 154.21, and 154.24 to 154.26 154.28, or failed to
provide the board or the attorney general on behalf of the board with any
documents or records they request;
(18) failed promptly to renew a certificate of registration or shop registration card when remaining in practice, pay the required fee, or issue a worthless check;
(19) failed to supervise a registered
apprentice or temporary apprentice, or permitted the practice of barbering
by a person not registered with the board or not holding a temporary permit;
(20) refused to serve a customer because of race, color, creed, religion, disability, national origin, or sex;
(21) failed to comply with a provision of sections 136A.82 to 136A.834, or a provision of another chapter that relates to barber schools; or
(22) with respect to temporary suspension orders, has committed an act, engaged in conduct, or committed practices that the board, or complaint committee if authorized by the board, has determined may result or may have resulted in an immediate threat to the public.
(b) In lieu of or in addition to any remedy under paragraph (a), the board may as a condition of continued registration, termination of suspension, reinstatement of registration, examination, or release of examination results, require that the person:
(1) submit to a quality review of the person's ability, skills, or quality of work, conducted in a manner and by a person or entity that the board determines; or
(2) complete to the board's satisfaction continuing education as the board requires.
(c) Service of an order under this subdivision is effective if the order is served personally on, or is served by certified mail to the most recent address provided to the board by the certificate holder, applicant, or counsel of record. The order must state the reason for the entry of the order.
(d) Except as provided in subdivision 5, paragraph (c), all hearings under this subdivision must be conducted in accordance with the Administrative Procedure Act.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 47. Minnesota Statutes 2014, section 154.161, subdivision 7, is amended to read:
Subd. 7. Reinstatement. The board may reinstate a suspended,
revoked, or surrendered certificate of registration or shop registration card,
on petition of the former or suspended registrant. The board may in its sole discretion place
any conditions on reinstatement of a suspended, revoked, or surrendered
certificate of registration or shop registration card that it finds appropriate
and necessary to ensure that the purposes of sections 154.001, 154.002,
154.003, 154.01 to 154.161 154.162, 154.19 to 154.21, and 154.24
to 154.26 154.28 are met. No
certificate of registration or shop registration card may be reinstated until
the former registrant has completed at least one-half of the suspension period.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 48. Minnesota Statutes 2014, section 154.162, is amended to read:
154.162
ADMINISTRATIVE PENALTIES.
The board shall impose and collect the following penalties:
(1) missing or lapsed shop registration discovered upon inspection; penalty imposed on shop owner: up to $500;
(2) unregistered apprentice or
registered barber, first occurrence discovered upon inspection; penalty
imposed on shop owner and unlicensed or unregistered individual: up to $500; and
(3) unregistered apprentice or
registered barber, second occurrence discovered upon inspection; penalty
imposed on shop owner and unlicensed or unregistered individual: up to $1,000.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 49. Minnesota Statutes 2014, section 154.19, is amended to read:
154.19
VIOLATIONS.
Each of the following constitutes a misdemeanor:
(1) The violation of any of the provisions of section 154.01;
(2) Permitting any person in one's employ,
supervision, or control to practice as a registered barber or registered
apprentice unless that person has a certificate of registration as a
registered barber or registered apprentice;
(3) Obtaining or attempting to obtain a certificate of registration for money other than the required fee, or any other thing of value, or by fraudulent misrepresentation;
(4) Practicing or attempting to practice by fraudulent misrepresentation;
(5) The willful failure to display a certificate of registration as required by section 154.14;
(6) The use of any room or place for
barbering which is also used for residential or business purposes, except the
sale of hair tonics, lotions, creams, cutlery, toilet articles, cigars,
tobacco, candies in original package, and such commodities as are used and sold
in barber shops, and except that shoeshining and an agency for the reception
and delivery of laundry, or either, may be conducted in a barber shop without
the same being construed as a violation of this section, unless a substantial
partition of ceiling height separates the portion used for residential or
business purposes, and where a barber shop is situated in a residence,
poolroom, confectionery, store, restaurant, garage, clothing store, liquor
store, hardware store, or soft drink parlor, there must be an outside entrance
leading into the barber shop independent of any entrance leading into such
business establishment, except that this provision as to an outside entrance
shall not apply to barber shops in operation at the time of the passage of this
section and except that a barber shop and beauty parlor cosmetology
salon may be operated in conjunction, without the same being separated by
partition of ceiling height;
(7) The failure or refusal of any barber or other person in charge of any barber shop, or any person in barber schools or colleges doing barber service work, to use separate and clean towels for each customer or patron, or to discard and launder each towel after once being used;
(8) The failure or refusal by any barber or other person in charge of any barber shop or barber school or barber college to supply clean hot and cold water in such quantities as may be necessary to conduct such shop, or the barbering service of such school or college, in a sanitary manner, or the failure or refusal of any such person to have water and sewer connections from such shop, or barber school or college, with municipal water and sewer systems where the latter are available for use, or the failure or refusal of any such person to maintain a receptacle for hot water of a capacity of not less than five gallons;
(9) For the purposes of this section,
barbers, students, apprentices, or the proprietor or manager of a barber
shop, or barber school or barber college, shall be responsible for all
violations of the sanitary sanitation and disinfection provisions
of this section, and. If
any barber workstation in any barber shop, or barber school or barber
college, upon inspection, shall be found to be in an unsanitary condition, the
person making such inspection shall immediately issue an order to place the
barber shop, or barber school, or barber college, in a sanitary condition, in a
manner and within a time satisfactory to the Board of Barber Examiners, and for
the failure to comply with such order the board shall immediately file a
complaint for the arrest of the persons upon whom the order was issued, and any
registered barber who shall fail to comply with the rules adopted by the Board
of Barber Examiners, with the approval of the state commissioner of health, or
the violation or commission of any of the offenses described in this section
and section 154.161, subdivision 4, paragraph (a), clauses (1), (3), and (4) to
(12), shall be fined not less than $10 or imprisoned for ten days and not more
than $100 or imprisoned for 90 days.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 50. Minnesota Statutes 2014, section 154.21, is amended to read:
154.21
PERJURY.
The willful making of any false statement
as to a material matter in any oath or affidavit which is required by the
provisions of sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162,
154.19 to 154.21, and 154.24 to 154.26 154.28 is perjury and
punishable as such.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 51. Minnesota Statutes 2014, section 154.24, is amended to read:
154.24
RULES.
The Board of Barber Examiners shall have
authority to make reasonable rules for the administration of the provisions of
sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162,
154.19 to 154.21, and 154.24 to 154.26 154.28 and prescribe sanitary
sanitation and disinfection requirements for barber shops and barber
schools, subject to the approval of the state commissioner of health. Any member of the board, or its agents or
assistants, shall have authority to enter upon and to inspect any barber shop
or barber school at any time during business hours. A copy of the rules adopted by the board
shall be furnished by it to the owner or manager of each barber shop or barber
school and such copy shall be posted in a conspicuous place in such barber shop
or barber school.
The board shall keep a record of its
proceedings relating to the issuance, refusal, renewal, suspension, and
revocation of certificates of registration.
This record shall contain the name, place of business, and
residence of each registered barber and registered apprentice, and the
date and number of the certificate of registration. This record shall be open to public
inspection at all reasonable times.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 52. Minnesota Statutes 2014, section 154.25, is amended to read:
154.25
NOT TO SERVE CERTAIN PERSONS.
No person practicing the occupation of a
barber in any barber shop, barber school, or college in this state shall
knowingly serve a person afflicted, in a dangerous or infectious state of the
disease, with erysipelas, eczema, impetigo, sycosis, or any other
contagious or infectious disease. Any
person so afflicted is hereby prohibited from being served in any barber shop,
barber school, or college in this state.
Any violation of this section shall be considered a misdemeanor as
provided for in sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162,
154.19 to 154.21, and 154.24 to 154.26 154.28.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 53. Minnesota Statutes 2014, section 161.368, is amended to read:
161.368
HIGHWAY CONTRACTS WITH TRIBAL AUTHORITIES.
(a) On behalf of the state, the commissioner may enter into agreements with Indian tribal authorities for the purpose of providing maintenance, design, and construction to highways on tribal lands. These agreements may include (1) a provision for waiver of immunity from suit by a party to the contract on the part of the tribal authority with respect to any controversy arising out of the contract and (2) a provision conferring jurisdiction on state district courts to hear such a controversy.
(b) Notwithstanding section 161.32, for
construction of highways on tribal lands in a reservation exempt from Public
Law 83-280, the commissioner may: (1)
award a preference for Indian-owned contractors to the same extent provided in
the applicable Tribal Employment Rights Ordinance, but not to exceed ten
percent; or (2) negotiate with the tribal authority and enter into an agreement
for the tribal authority to award and administer the construction contract,
with the commissioner providing funding for the state share of the project. If negotiating with the tribal authority, the
commissioner must perform an independent cost estimate and determine that the
cost proposed by the tribal authority is reasonable. An agreement negotiated with a tribal
authority must include a clause requiring conformance with plans and
specifications approved by the commissioner.
Sec. 54. Minnesota Statutes 2014, section 197.455, subdivision 1, is amended to read:
Subdivision 1. Application. (a) This section shall govern preference of a veteran under the civil service laws, charter provisions, ordinances, rules or regulations of a county, home rule charter or statutory city, town, school district, or other municipality or political subdivision of this state. Any provision in a law, charter, ordinance, rule or regulation contrary to the applicable provisions of this section is void to the extent of such inconsistency.
(b) Sections 197.46 to 197.481 also apply to a veteran who is an incumbent in a classified appointment in the state civil service and has completed the probationary period for that position, as defined under section 43A.16. In matters of dismissal from such a position, a qualified veteran has the irrevocable option of using the procedures described in sections 197.46 to 197.481, or the procedures provided in the collective bargaining agreement applicable to the person, but not both. For a qualified veteran electing to use the procedures of sections 197.46 to 197.481, the matters governed by those sections must not be considered grievances under a collective bargaining agreement, and if a veteran elects to appeal the dispute through those sections, the veteran is precluded from making an appeal under the grievance procedure of the collective bargaining agreement.
(c) A county, home rule charter or
statutory city, town, school district, or other municipality or political
subdivision may require a veteran to complete an initial hiring probationary
period, as defined under section 43A.16.
In matters of dismissal, a veteran employed by a county, home rule
charter or statutory city, town, school district, or other municipality or
political subdivision is entitled to the same rights and legal protections that
state employees receive under paragraph (b).
Sec. 55. Minnesota Statutes 2015 Supplement, section 197.46, is amended to read:
197.46
VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT OF MANDAMUS.
(a) Any person whose rights may be in any
way prejudiced contrary to any of the provisions of this section, shall be
is entitled to a writ of mandamus to remedy the wrong. After any initial hiring probationary
period expires, no person holding a position either in the state civil
service or by appointment or employment in the several counties any
county, cities home rule charter or statutory city, towns
town, school districts and all district, or any other
political subdivisions subdivision in the state, who is a
veteran separated from the military service under honorable conditions, shall
be removed from such the position or employment except for
incompetency or misconduct shown after a hearing, upon due notice, upon stated
charges, in writing.
(b) Any veteran who has been notified of
the intent to discharge the veteran from an appointed position or employment
pursuant to this section shall be notified in writing of such the
intent to discharge and of the veteran's right to request a hearing within 60
30 days of receipt of the notice of intent to discharge. The failure of a veteran to request a hearing
within the provided 60-day 30-day period shall constitute constitutes
a waiver of the right to a hearing. Such
The failure shall also waive waives all other
available legal remedies for reinstatement.
Request for a hearing concerning such a
discharge shall be made in writing and submitted by mail or personal service to
the employment office of the concerned employer or other appropriate office or
person. If the veteran requests a
hearing under this section, such the written request must also
contain the veteran's election to be heard by a civil service board or
commission, a merit authority, or a three-person panel an arbitrator
as defined in paragraph (c). If the
veteran fails to identify the veteran's election, the governmental subdivision
may select the hearing body.
(c) In all governmental subdivisions
having an established civil service board or commission, or merit system
authority, such the veteran may elect to have the hearing for
removal or discharge shall be held before such the civil
service board or commission or merit system authority, or before an
arbitrator as specified in this paragraph.
Where no such civil service board or commission or merit system
authority exists, such the hearing shall be held by a board of
three persons appointed as follows: one
by the governmental subdivision, one by the veteran, and the third by the two
so selected an arbitrator. In
cases where a hearing will be held by an arbitrator, the employer shall request
from the Bureau of Mediation Services a list of seven persons to serve as an
arbitrator. The employer shall strike
the first name from the list and the parties shall alternately strike names
from the list until the name of one arbitrator remains. After receiving each of the employer's
elections to strike a person from the list, the veteran has 48 hours to strike
a person from the list. The person
remaining after the striking procedure must be the arbitrator. Upon the selection of the arbitrator, the
employer shall notify the designated arbitrator and request available dates to
hold the hearing. In the event that
the hearing is authorized to be held before a three-person board an
arbitrator, the governmental subdivision's notice of intent to discharge
shall state that the veteran must respond within 60 30 days of
receipt of the notice of intent to discharge., and provide in writing
to the governmental subdivision the name, United States mailing address, and
telephone number of the veteran's selected representative for the three-person
board. The failure of a veteran to
submit the name, address, and telephone number of the veteran's selected
representative to the governmental subdivision by mail or by personal service
within the provided notice's 60-day period, shall constitute a waiver of the
veteran's right to the hearing and all other legal remedies available for
reinstatement of the veteran's employment position. In the event the two persons selected by the
veteran and governmental subdivision do not appoint the third person within ten
days after the appointment of the last of the two, then the judge of the
district court of the county wherein the proceeding is pending, or if there be
more than one judge in said county then any judge in chambers, shall have
jurisdiction to appoint, and Upon application of either or both of the two so
selected shall appoint, the third person to the board and the person so
appointed by the judge with the two first selected shall constitute the board.
(d)
Either the veteran or the governmental subdivision may appeal from the decision
of the board hearing body upon the charges to the district court
by causing written notice of appeal, stating the grounds thereof of
the appeal, to be served upon the other party within 15 days after notice
of the decision and by filing the original notice of appeal with proof of
service thereof in the office of the court administrator of the district
court within ten days after service thereof.
Nothing in section 197.455 or this section shall be construed to apply
to the position of private secretary, superintendent of schools, or one chief
deputy of any elected official or head of a department, or to any person
holding a strictly confidential relation to the appointing officer. Nothing in this section shall be construed to
apply to the position of teacher. The
burden of establishing such relationship shall be upon the appointing officer
in all proceedings and actions relating thereto.
(e) For disputes heard by a civil service
board, commission or merit system authority, or an arbitrator, the political
governmental subdivisions shall bear all costs associated with the
hearing but not including attorney fees for attorneys representing the veteran. For disputes heard by a three-person
panel, all parties shall bear equally all costs associated with the hearing,
but not including attorney fees for attorneys representing the veteran. If the veteran prevails in a dispute heard by
a civil service board or a three-person panel, commission or merit
system authority, or an arbitrator and the hearing reverses all aspects
of the level of the alleged incompetency or misconduct requiring discharge,
the governmental subdivision shall pay the veteran's reasonable attorney fees.
(f) All officers, boards, commissions, and employees shall conform to, comply with, and aid in all proper ways in carrying into effect the provisions of section 197.455 and this section notwithstanding any laws, charter provisions, ordinances or rules to the contrary. Any willful violation of such sections by officers, officials, or employees is a misdemeanor.
Sec. 56. [240A.085]
JAMES METZEN MIGHTY DUCKS ICE CENTER DEVELOPMENT ACT.
Sections 240A.085 to 240A.11 may be
cited as the James Metzen Mighty Ducks Ice Center Development Act.
Sec. 57. 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;
(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;
(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 to the extent included in federal taxable income, compensation
received from a pension or other retirement pay from the federal government for
service in the military, as computed under United States Code, title 10,
sections 1401 to 1414, 1447 to 1455, and 12733.
The subtraction must not include any amount used to claim the credit
allowed under section 290.0677.
EFFECTIVE
DATE. The striking of the
qualified fringe benefits subtraction is effective the day following final
enactment, except the changes incorporated by federal changes are effective
retroactively at the same time as the changes were effective for federal
purposes. The new subtraction for
pension or other military retirement pay is effective for taxable years
beginning after December 31, 2015.
Sec. 58. Minnesota Statutes 2014, section 327C.03, subdivision 6, is amended to read:
Subd. 6. Payment
to the Minnesota manufactured home relocation trust fund. In the event a park owner has been
assessed under section 327C.095, subdivision 12, paragraph (c), the park owner
may collect the $12 $15 annual payment required by section
327C.095, subdivision 12, for participation in the relocation trust fund, as a
lump sum or, along with monthly lot rent, a fee of no more than $1 $1.25
per month to cover the cost of participating in the relocation trust fund. The $1 $1.25 fee must be separately
itemized and clearly labeled "Minnesota manufactured home relocation trust
fund."
Sec. 59. Minnesota Statutes 2014, section 327C.095, subdivision 12, is amended to read:
Subd. 12. Payment to the Minnesota manufactured home relocation trust fund. (a) If a manufactured home owner is required to move due to the conversion of all or a portion of a manufactured home park to another use, the closure of a park, or cessation of use of the land as a manufactured home park, the manufactured park owner shall, upon the change in use, pay to the commissioner of management and budget for deposit in the Minnesota manufactured home relocation trust fund under section 462A.35, the lesser amount of the actual costs of moving or purchasing the manufactured home approved by the neutral third party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph (a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each multisection manufactured home, for which a manufactured home owner has made application for payment of relocation costs under subdivision 13, paragraph (c). The manufactured home park owner shall make payments required under this section to the Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice from the neutral third party.
(b) A manufactured home park owner is not required to make the payment prescribed under paragraph (a), nor is a manufactured home owner entitled to compensation under subdivision 13, paragraph (a) or (e), if:
(1) the manufactured home park owner relocates the manufactured home owner to another space in the manufactured home park or to another manufactured home park at the park owner's expense;
(2) the manufactured home owner is vacating the premises and has informed the manufactured home park owner or manager of this prior to the mailing date of the closure statement under subdivision 1;
(3) a manufactured home owner has abandoned the manufactured home, or the manufactured home owner is not current on the monthly lot rental, personal property taxes;
(4) the manufactured home owner has a pending eviction action for nonpayment of lot rental amount under section 327C.09, which was filed against the manufactured home owner prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery has been ordered by the district court;
(5) the conversion of all or a portion of a manufactured home park to another use, the closure of a park, or cessation of use of the land as a manufactured home park is the result of a taking or exercise of the power of eminent domain by a governmental entity or public utility; or
(6) the owner of the manufactured home is not a resident of the manufactured home park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home is a resident, but came to reside in the manufactured home park after the mailing date of the closure statement under subdivision 1.
(c) If the unencumbered fund balance in the
manufactured home relocation trust fund is less than $1,000,000 as of June 30
of each year, the commissioner of management and budget shall assess each
manufactured home park owner by mail the total amount of $12 $15
for each licensed lot in their park, payable on or before September 15 of that
year. The commissioner of management and
budget shall deposit any payments in the Minnesota manufactured
home
relocation trust fund. On or before July
15 of each year, the commissioner of management and budget shall prepare and
distribute to park owners a letter explaining whether funds are being collected
for that year, information about the collection, an invoice for all licensed
lots, and a sample form for the park owners to collect information on which
park residents have been accounted for. If
assessed under this paragraph, the park owner may recoup the cost of the $12
$15 assessment as a lump sum or as a monthly fee of no more than $1
$1.25 collected from park residents together with monthly lot rent as
provided in section 327C.03, subdivision 6.
Park owners may adjust payment for lots in their park that are vacant or
otherwise not eligible for contribution to the trust fund under section
327C.095, subdivision 12, paragraph (b), and deduct from the assessment
accordingly.
(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action in a court of appropriate jurisdiction. The court may award a prevailing party reasonable attorney fees, court costs, and disbursements.
Sec. 60. Minnesota Statutes 2014, section 327C.095, subdivision 13, is amended to read:
Subd. 13. Change
in use, relocation expenses; payments by park owner. (a) If a manufactured home owner is
required to relocate due to the conversion of all or a portion of a
manufactured home park to another use, the closure of a manufactured home park,
or cessation of use of the land as a manufactured home park under subdivision
1, and the manufactured home owner complies with the requirements of this
section, the manufactured home owner is entitled to payment from the Minnesota
manufactured home relocation trust fund equal to the manufactured home owner's
actual relocation costs for relocating the manufactured home to a new location
within a 25-mile radius of the park that is being closed, up to a maximum of $4,000
$7,000 for a single-section and $8,000 $12,500 for a
multisection manufactured home. The
actual relocation costs must include the reasonable cost of taking down,
moving, and setting up the manufactured home, including equipment rental,
utility connection and disconnection charges, minor repairs, modifications
necessary for transportation of the home, necessary moving permits and
insurance, moving costs for any appurtenances, which meet applicable local,
state, and federal building and construction codes.
(b) A manufactured home owner is not entitled to compensation under paragraph (a) if the manufactured home park owner is not required to make a payment to the Minnesota manufactured home relocation trust fund under subdivision 12, paragraph (b).
(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota manufactured home relocation trust fund, the manufactured home owner shall submit to the neutral third party and the Minnesota Housing Finance Agency, with a copy to the park owner, an application for payment, which includes:
(1) a copy of the closure statement under subdivision 1;
(2) a copy of the contract with a moving or towing contractor, which includes the relocation costs for relocating the manufactured home;
(3) a statement with supporting materials of any additional relocation costs as outlined in subdivision 1;
(4) a statement certifying that none of the exceptions to receipt of compensation under subdivision 12, paragraph (b), apply to the manufactured home owner;
(5) a statement from the manufactured park
owner that the lot rental is current and that the annual $12 $15
payments to the Minnesota manufactured home relocation trust fund have been
paid when due; and
(6) a statement from the county where the manufactured home is located certifying that personal property taxes for the manufactured home are paid through the end of that year.
(d) If the neutral third party has acted reasonably and does not approve or deny payment within 45 days after receipt of the information set forth in paragraph (c), the payment is deemed approved. Upon approval and request by the neutral third party, the Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 percent of the contract price payable to the mover and towing contractor for relocating the manufactured home in the amount of the actual relocation cost, plus a check to the home owner for additional certified costs associated with third-party vendors, that were necessary in relocating the manufactured home. The moving or towing contractor shall receive 50 percent upon execution of the contract and 50 percent upon completion of the relocation and approval by the manufactured home owner. The moving or towing contractor may not apply the funds to any other purpose other than relocation of the manufactured home as provided in the contract. A copy of the approval must be forwarded by the neutral third party to the park owner with an invoice for payment of the amount specified in subdivision 12, paragraph (a).
(e) In lieu of collecting a relocation
payment from the Minnesota manufactured home relocation trust fund under
paragraph (a), the manufactured home owner may collect an amount from the fund
after reasonable efforts to relocate the manufactured home have failed due to
the age or condition of the manufactured home, or because there are no
manufactured home parks willing or able to accept the manufactured home within
a 25-mile radius. A manufactured home
owner may tender title of the manufactured home in the manufactured home park
to the manufactured home park owner, and collect an amount to be determined by
an independent appraisal. The appraiser
must be agreed to by both the manufactured home park owner and the manufactured
home owner. If the appraised market
value cannot be determined, the tax market value, averaged over a period of
five years, can be used as a substitute.
The maximum amount that may be reimbursed under the fund is a
maximum of $5,000 $8,000 for a single-section and $9,000 $14,500
for a multisection manufactured home. The
minimum amount that may be reimbursed under the fund is $2,000 for a single
section and $4,000 for a multisection manufactured home. The manufactured home owner shall deliver to
the manufactured home park owner the current certificate of title to the
manufactured home duly endorsed by the owner of record, and valid releases of all
liens shown on the certificate of title, and a statement from the county where
the manufactured home is located evidencing that the personal property taxes
have been paid. The manufactured home
owner's application for funds under this paragraph must include a document
certifying that the manufactured home cannot be relocated, that the lot rental
is current, that the annual $12 $15 payments to the Minnesota
manufactured home relocation trust fund have been paid when due, that the
manufactured home owner has chosen to tender title under this section, and that
the park owner agrees to make a payment to the commissioner of management and
budget in the amount established in subdivision 12, paragraph (a), less any
documented costs submitted to the neutral third party, required for demolition
and removal of the home, and any debris or refuse left on the lot, not to
exceed $1,000. The manufactured home
owner must also provide a copy of the certificate of title endorsed by the
owner of record, and certify to the neutral third party, with a copy to the
park owner, that none of the exceptions to receipt of compensation under
subdivision 12, paragraph (b), clauses (1) to (6), apply to the manufactured
home owner, and that the home owner will vacate the home within 60 days after
receipt of payment or the date of park closure, whichever is earlier, provided
that the monthly lot rent is kept current.
(f) The Minnesota Housing Finance Agency must make a determination of the amount of payment a manufactured home owner would have been entitled to under a local ordinance in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured home owner's compensation for relocation costs from the fund under section 462A.35, is the greater of the amount provided under this subdivision, or the amount under the local ordinance in effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this paragraph is intended to increase the liability of the park owner.
(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be liable to any person for recovery if the funds in the Minnesota manufactured home relocation trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance Agency shall keep a record of the time and date of its approval of payment to a claimant.
(h) The agency shall report to the chairs of the senate Finance Committee and house of representatives Ways and Means Committee by January 15 of each year on the Minnesota manufactured home relocation trust fund, including the account balance, payments to claimants, the amount of any advances to the fund, the amount of any insufficiencies encountered during the previous calendar year, and any administrative charges or expenses deducted from the trust fund balance. If sufficient funds become available, the Minnesota Housing Finance Agency shall pay the manufactured home owner whose unpaid claim is the earliest by time and date of approval.
Sec. 61. PLAQUE
OR MARKER AUTHORIZED TO HONOR CAPITOL CONSTRUCTION WORKERS.
(a) The commissioner of administration
shall place a plaque or three-dimensional marker in the State Capitol building
in a space easily visible to public visitors to recognize and honor the efforts
and sacrifice of workers who constructed the State Capitol building, as well as
those who worked on subsequent projects to preserve the building. The plaque or marker shall specifically honor
the six workers who died during construction of the State Capitol building. The Capitol Area Architectural and Planning
Board and the Minnesota Historical Society shall set the parameters and
location for the memorial plaque or marker.
(b) The Capitol Area Architectural and
Planning Board shall conduct an opportunity contest for sixth graders from across
the state to submit designs for the memorial plaque or marker. The board shall select a design from those
submissions to be used as a basis for the final production of this plaque or
marker by January 1, 2017. The memorial
plaque or marker shall be installed during the State Capitol remodel.
Sec. 62. STUDY
ON VETERANS' UNMET NEEDS FOR BEHAVIOR AND MENTAL HEALTH SERVICES.
The commissioner of veterans affairs
shall perform a study to quantify and describe unmet needs amongst Minnesota
veterans for behavioral and mental health services. The study will include conducting focus
groups of stakeholders, including veterans and their families, representatives
of the United States Veterans Administration, community referral centers, and
county veteran service officers. The
commissioner of veterans affairs may contract with a statewide nonprofit
organization to conduct the study. The
commissioner of veterans affairs shall report by February 15, 2017, to the
chairs and ranking minority members of the committees in the house of
representatives and the senate with jurisdiction over veterans policy and
budget with the findings of the study and with recommendations about how
current services provided to veterans could be expanded to better meet the
needs identified by the study.
Sec. 63. FEASIBILITY
STUDY ON PARTNERSHIPS TO PROVIDE INTERIM HOUSING FOR DISABLED VETERANS.
The commissioner of veterans affairs
shall study the feasibility of partnering with an established nonprofit
organization to provide interim housing for disabled veterans in conjunction
with fully integrated and customizable support services. The commissioner of veterans affairs shall
submit a report including its findings and recommendations regarding the
feasibility of such a partnership to the chairs and ranking minority members of
the standing committees in the house of representatives and the senate having
jurisdiction over veterans affairs by February 15, 2017.
Sec. 64. MEMORIAL
COMMEMORATING RECIPIENTS OF THE MEDAL OF HONOR.
Subdivision 1. Medal
of Honor Memorial on the State Capitol grounds. Subject to approval by the Capitol
Area Architectural and Planning Board, the commissioner of administration shall
place a memorial on the State Capitol grounds to honor Minnesotans awarded the
Medal of Honor.
Subd. 2. Gifts
and grants. The commissioner
of veterans affairs may solicit gifts, grants, or donations of any kind from
any private or public source to carry out the purposes of this section. A Medal of Honor Memorial account is created in
the special revenue fund. All gifts,
grants, or donations received by the commissioner shall be deposited in a Medal
of Honor Memorial account in the special revenue fund. Money in the account is appropriated to the
commissioner of administration for predesign, design, construction, and ongoing
maintenance of the memorial.
Subd. 3. Restrictions. Money deposited in the Medal of Honor
Memorial account is not available until the commissioner of management and
budget has determined an amount sufficient to complete predesign of the
memorial has been committed to the project from nonstate sources. The commissioner of administration shall not
begin construction on this project until money in the account is sufficient to
pay for all costs related to construction and ongoing maintenance of the
memorial.
Sec. 65. LEGISLATIVE
ADVISORY COMMISSION; FEDERAL FUNDS.
The commissioner of management and
budget, in consultation with legislative nonpartisan fiscal staff, shall review
and recommend the federal funds that should not be subject to review by the
Legislative Advisory Commission, under Minnesota Statutes, section 3.3005. The commissioner shall make this
recommendation before the 2017 regular legislative session.
Sec. 66. 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;
(3) three members of the house of
representatives appointed by the speaker of the house;
(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,
2016.
Subd. 2. Chair. The commission shall elect a chair
from among its members.
Subd. 3. Meetings. The ranking majority member of the
commission who is appointed by the senate majority leader shall convene the
first meeting by July 1, 2016. The
commission shall have at least six meetings but may not have more than ten
meetings.
Subd. 4. 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. 5. 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. 6. 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 of
representatives and senate by December 15, 2016. On topics where the commission fails to reach
consensus, a majority and minority report shall be issued.
Subd. 7. Staffing. The Legislative Coordinating
Commission shall provide staffing and administrative support to the commission.
Subd. 8. Expiration. The commission expires the day after submitting
the report required under subdivision 6.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 67. LCPFP
STUDY OF JOINT BUDGET TARGET PROCESS; TIMING.
The Legislative Commission on Planning
and Fiscal Policy shall study and make recommendations to the legislature by
January 15, 2017, on the process and timing for the legislature to establish
joint budget targets. In preparing its
recommendations, the commission must take public testimony.
Sec. 68. RULEMAKING.
The Board of Barber Examiners may use
expedited rulemaking procedures under Minnesota Statutes, section 14.389, to
amend Minnesota Rules, chapter 2100, to conform with sections 29 to 52 and
sections 69 and 70.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 69. TRANSITIONING
APPRENTICE BARBERS TO REGISTERED BARBERS.
An apprentice barber practicing on
August 1, 2016, is eligible to apply for registered barber status. An apprentice barber must take the registered
barber examination to become a registered barber. All apprentice barber registrations will be
discontinued on December 31, 2017.
EFFECTIVE
DATE. This section is
effective August 1, 2016.
Sec. 70. REPEALER.
Minnesota Statutes 2014, sections
154.03; 154.06; 154.11, subdivision 2; and 154.12, are repealed effective
August 1, 2016.
ARTICLE 14
MISCELLANEOUS
Section 1.
[290.0685] CREDIT FOR PARENTS
OF STILLBORN CHILDREN.
Subdivision 1. Credit
allowed. (a) An individual is
allowed a credit against the tax imposed by this chapter equal to $2,000 for
each birth for which a certificate of birth resulting in stillbirth has been
issued under section 144.2151. The
credit under this section is allowed only in the taxable year in which the
stillbirth occurred and if the child would have been a dependent of the
taxpayer as defined in section 152 of the Internal Revenue Code.
(b) For a nonresident or part-year
resident, the credit must be allocated based on the percentage calculated under
section 290.06, subdivision 2c, paragraph (e).
Subd. 2. Credit
refundable. If the amount of
credit that an individual is allowed under this section exceeds the
individual's tax liability under this chapter, the commissioner shall refund
the excess to the individual.
Subd. 3. Appropriation. An amount sufficient to pay the
refunds required by this section is appropriated to the commissioner from the
general fund.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 2. Minnesota Statutes 2014, section 297A.62, subdivision 3, is amended to read:
Subd. 3. Manufactured housing and park trailers; modular housing. (a) For retail sales of manufactured homes as defined in section 327.31, subdivision 6, for residential uses, the sales tax under subdivisions 1 and 1a is imposed on 65 percent of the dealer's cost of the manufactured home. For retail sales of new or used park trailers, as defined in section 168.002, subdivision 23, the sales tax under subdivisions 1 and 1a is imposed on 65 percent of the sales price of the park trailer.
(b) For retail sales of a modular home
as defined in section 297A.668, subdivision 8, paragraph (b), for residential
uses, the sales tax under subdivisions 1 and 1a is imposed on 65 percent of the
modular home manufacturer's sales price of the modular home.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 3. Minnesota Statutes 2014, section 299A.41, subdivision 3, is amended to read:
Subd. 3. Killed
in the line of duty. "Killed in
the line of duty" does not include deaths from natural causes, except
as provided in this subdivision. In
the case of a peace public safety officer, "killed in
the line of duty" includes the death of an a public
safety officer caused by accidental means while the peace public
safety officer is acting in the course and scope of duties as a peace
public safety officer. Killed
in the line of duty also means if a public safety officer dies as the direct
and proximate result of a heart attack, stroke, or vascular rupture, that
officer shall be presumed to have died as the direct and proximate result of a
personal injury sustained in the line of duty if:
(1) that officer, while on duty:
(i) engaged in a situation, and that
engagement involved nonroutine stressful or strenuous physical law enforcement,
fire suppression, rescue, hazardous material response, emergency medical
services, prison security, disaster relief, or other emergency response
activity; or
(ii) participated in a training exercise,
and that participation involved nonroutine stressful or strenuous physical
activity;
(2) that officer died as a result of a
heart attack, stroke, or vascular rupture suffered:
(i) while engaging or participating
under clause (1);
(ii) while still on duty after engaging or participating under clause (1); or
(iii) not later than 24 hours after engaging or participating under clause (1); and
(3) the presumption is not overcome by
competent medical evidence to the contrary.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 299A.41, subdivision 4, is amended to read:
Subd. 4. Public safety officer. "Public safety officer" includes:
(1) a peace officer defined in section 626.84, subdivision 1, paragraph (c) or (d);
(2) a correction officer employed at a correctional facility and charged with maintaining the safety, security, discipline, and custody of inmates at the facility;
(3) an individual employed on a full-time basis by the state or by a fire department of a governmental subdivision of the state, who is engaged in any of the following duties:
(i) firefighting;
(ii) emergency motor vehicle operation;
(iii) investigation into the cause and origin of fires;
(iv) the provision of emergency medical services; or
(v) hazardous material responder;
(4) a legally enrolled member of a volunteer fire department or member of an independent nonprofit firefighting corporation who is engaged in the hazards of firefighting;
(5) a good samaritan while complying with the request or direction of a public safety officer to assist the officer;
(6) a reserve police officer or a reserve deputy sheriff while acting under the supervision and authority of a political subdivision;
(7) a driver or attendant with a licensed basic or advanced life-support transportation service who is engaged in providing emergency care;
(8) a first responder who is certified by the emergency medical services regulatory board to perform basic emergency skills before the arrival of a licensed ambulance service and who is a member of an organized service recognized by a local political subdivision to respond to medical emergencies to provide initial medical care before the arrival of an ambulance; and
(9) a person, other than a state trooper, employed by the commissioner of public safety and assigned to the State Patrol, whose primary employment duty is either Capitol security or the enforcement of commercial motor vehicle laws and regulations.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. APPROPRIATION;
PUBLIC SAFETY.
$260,000 in fiscal year 2017 is
appropriated from the general fund to the commissioner of public safety for
payment of public safety officer survivor benefits. This is added to the appropriation in Laws
2015, chapter 75, article 1, section 5, subdivision 2, paragraph (b).
ARTICLE 15
CHILDREN AND FAMILIES
Section 1. Minnesota Statutes 2014, section 145.4716, subdivision 2, is amended to read:
Subd. 2. Duties of director. The director of child sex trafficking prevention is responsible for the following:
(1) developing and providing comprehensive training on sexual exploitation of youth for social service professionals, medical professionals, public health workers, and criminal justice professionals;
(2) collecting, organizing, maintaining, and disseminating information on sexual exploitation and services across the state, including maintaining a list of resources on the Department of Health Web site;
(3) monitoring and applying for federal funding for antitrafficking efforts that may benefit victims in the state;
(4) managing grant programs established under sections 145.4716 to 145.4718, and 609.3241, paragraph (c), clause (3);
(5) managing the request for proposals for grants for comprehensive services, including trauma-informed, culturally specific services;
(6) identifying best practices in serving sexually exploited youth, as defined in section 260C.007, subdivision 31;
(7) providing oversight of and technical support to regional navigators pursuant to section 145.4717;
(8)
conducting a comprehensive evaluation of the statewide program for safe harbor
of sexually exploited youth; and
(9) developing a policy consistent with the requirements of chapter 13 for sharing data related to sexually exploited youth, as defined in section 260C.007, subdivision 31, among regional navigators and community-based advocates.
Sec. 2. Minnesota Statutes 2014, section 145.4716, is amended by adding a subdivision to read:
Subd. 3. Youth
eligible for services. Youth
24 years of age or younger shall be eligible for all services, support, and
programs provided under this section and section 145.4717, and all shelter,
housing beds, and services provided by the commissioner of human services to
sexually exploited youth and youth at risk of sexual exploitation.
Sec. 3. Minnesota Statutes 2014, section 256D.051, subdivision 6b, is amended to read:
Subd. 6b. Federal reimbursement. (a) Federal financial participation from the United States Department of Agriculture for food stamp employment and training expenditures that are eligible for reimbursement through the food stamp employment and training program are dedicated funds and are annually appropriated to the commissioner of human services for the operation of the food stamp employment and training program.
(b) The appropriation must be used for
skill attainment through employment, training, and support services for food
stamp participants. By February 15,
2017, the commissioner shall report to the chairs and ranking minority members
of the legislative committees having jurisdiction over the food stamp
employment and training program on the progress of securing additional federal
reimbursement dollars under this program.
(c) Federal financial participation for the nonstate portion of food stamp employment and training costs must be paid to the county agency or service provider that incurred the costs.
EFFECTIVE
DATE. This section is
effective October 1, 2016.
Sec. 4. Minnesota Statutes 2014, section 256N.26, subdivision 3, is amended to read:
Subd. 3. Basic
monthly rate. From January 1,
2015 July 1, 2017, to June 30, 2016 2018, the basic
monthly rate must be according to the following schedule:
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Sec. 5. Minnesota Statutes 2015 Supplement, section 256P.06, subdivision 3, is amended to read:
Subd. 3. Income inclusions. The following must be included in determining the income of an assistance unit:
(1) earned income; and
(2) unearned income, which includes:
(i) interest and dividends from investments and savings;
(ii) capital gains as defined by the Internal Revenue Service from any sale of real property;
(iii) proceeds from rent and contract for deed payments in excess of the principal and interest portion owed on property;
(iv) income from trusts, excluding special needs and supplemental needs trusts;
(v) interest income from loans made by the participant or household;
(vi) cash prizes and winnings;
(vii) unemployment insurance income;
(viii) retirement, survivors, and disability insurance payments;
(ix) nonrecurring income over $60 per quarter unless earmarked and used for the purpose for which it is intended. Income and use of this income is subject to verification requirements under section 256P.04;
(x) retirement benefits;
(xi) cash assistance benefits, as defined by each program in chapters 119B, 256D, 256I, and 256J;
(xii) tribal per capita payments unless excluded by federal and state law;
(xiii) income and payments from service and rehabilitation programs that meet or exceed the state's minimum wage rate;
(xiv) income from members of the United States armed forces unless excluded from income taxes according to federal or state law;
(xv) all child support payments for programs under chapters 119B, 256D, and 256I;
(xvi) the amount of current child
support received that exceeds $100 for assistance units with one child and $200
for assistance units with two or more children for programs under chapter 256J;
and
(xvii) spousal support.
Sec. 6. [260C.125]
CASE TRANSFER PROCESS.
Subdivision 1. Purpose. This section pertains to the transfer
of responsibility for the placement and care of an Indian child in out-of-home
placement from the responsible social services agency to a tribal title IV-E
agency or an Indian tribe in and outside of Minnesota with a title IV-E
agreement.
Subd. 2. Establishment of transfer procedures. The responsible social services agency shall establish and maintain procedures, in consultation with Indian tribes, for the transfer of responsibility for placement and care of a child to a tribal agency. Transfer of a child's case under this section shall not affect the child's title IV-E and Medicaid eligibility.
Subd. 3. Title
IV-E eligibility. If a
child's title IV-E eligibility has not been determined by the responsible
social services agency by the time of transfer, it shall be established at the
time of the transfer by the responsible social services agency.
Subd. 4. Documentation
and information. Essential
documents and information shall be transferred to a tribal agency, including
but not limited to:
(1) district court judicial
determinations to the effect that continuation in the home from which the child
was removed would be contrary to the welfare of the child and that reasonable
efforts were made to ensure placement prevention and family reunification
pursuant to section 260.012;
(2) documentation related to the
child's permanency proceeding under sections 260C.503 to 260C.521;
(3) documentation from the responsible
social services agency related to the child's title IV-E eligibility;
(4) documentation regarding the child's
eligibility or potential eligibility for other federal benefits;
(5) the child's case plan, developed
pursuant to the Social Security Act, United States Code, title 42, sections
675(1) and 675a, including health and education records of the child pursuant
to the Social Security Act, United States Code, title 42, section 675(1)(c);
and section 260C.212, subdivision 1, and information; and
(6) documentation of the child's
placement setting, including a copy of the most recent provider's license.
Sec. 7. Minnesota Statutes 2015 Supplement, section 260C.203, is amended to read:
260C.203
ADMINISTRATIVE OR COURT REVIEW OF PLACEMENTS.
(a) Unless the court is conducting the reviews required under section 260C.202, there shall be an administrative review of the out-of-home placement plan of each child placed in foster care no later than 180 days after the initial placement of the child in foster care and at least every six months thereafter if the child is not returned to the home of the parent or parents within that time. The out-of-home placement plan must be monitored and updated at each administrative review. The administrative review shall be conducted by the responsible social services agency using a panel of appropriate persons at least one of whom is not responsible for the case management of, or the delivery of services to, either the child or the parents who are the subject of the review. The administrative review shall be open to participation by the parent or guardian of the child and the child, as appropriate.
(b) As an alternative to the administrative review required in paragraph (a), the court may, as part of any hearing required under the Minnesota Rules of Juvenile Protection Procedure, conduct a hearing to monitor and update the out-of-home placement plan pursuant to the procedure and standard in section 260C.201, subdivision 6, paragraph (d). The party requesting review of the out-of-home placement plan shall give parties to the proceeding notice of the request to review and update the out-of-home placement plan. A court review conducted pursuant to section 260C.141, subdivision 2; 260C.193; 260C.201, subdivision 1; 260C.202; 260C.204; 260C.317; or 260D.06 shall satisfy the requirement for the review so long as the other requirements of this section are met.
(c) As appropriate to the stage of the proceedings and relevant court orders, the responsible social services agency or the court shall review:
(1) the safety, permanency needs, and well-being of the child;
(2) the continuing necessity for and appropriateness of the placement;
(3) the extent of compliance with the out-of-home placement plan;
(4) the extent of progress that has been made toward alleviating or mitigating the causes necessitating placement in foster care;
(5) the projected date by which the child may be returned to and safely maintained in the home or placed permanently away from the care of the parent or parents or guardian; and
(6) the appropriateness of the services provided to the child.
(d) When a child is age 14 or older,:
(1) in addition to any administrative
review conducted by the responsible social services agency, at the
in-court review required under section 260C.317, subdivision 3, clause (3), or
260C.515, subdivision 5 or 6, the court shall review the independent living
plan required under section 260C.212, subdivision 1, paragraph (c), clause
(12), and the provision of services to the child related to the well-being of
the child as the child prepares to leave foster care. The review shall include the actual plans
related to each item in the plan necessary to the child's future safety and
well-being when the child is no longer in foster care.; and
(e) At the court review required under
paragraph (d) for a child age 14 or older, the following procedures apply:
(1) six months before the child is
expected to be discharged from foster care, the responsible social services
agency shall give the written notice required under section 260C.451,
subdivision 1, regarding the right to continued access to services for certain
children in foster care past age 18 and of the right to appeal a denial of
social services under section 256.045. The
agency shall file a copy of the notice, including the right to appeal a denial
of social services, with the court. If
the agency does not file the notice by the time the child is age 17-1/2, the
court shall require the agency to give it;
(2) consistent with the requirements of the independent living plan, the court shall review progress toward or accomplishment of the following goals:
(i) the child has obtained a high school diploma or its equivalent;
(ii) the child has completed a driver's education course or has demonstrated the ability to use public transportation in the child's community;
(iii) the child is employed or enrolled in postsecondary education;
(iv) the child has applied for and obtained postsecondary education financial aid for which the child is eligible;
(v) the child has health care coverage and health care providers to meet the child's physical and mental health needs;
(vi) the child has applied for and obtained disability income assistance for which the child is eligible;
(vii) the child has obtained affordable housing with necessary supports, which does not include a homeless shelter;
(viii) the child has saved sufficient funds to pay for the first month's rent and a damage deposit;
(ix) the child has an alternative affordable housing plan, which does not include a homeless shelter, if the original housing plan is unworkable;
(x) the child, if male, has registered for the Selective Service; and
(xi) the child has a permanent connection to
a caring adult; and.
(3)
the court shall ensure that the responsible agency in conjunction with the
placement provider assists the child in obtaining the following documents prior
to the child's leaving foster care: a
Social Security card; the child's birth certificate; a state identification
card or driver's license, tribal enrollment identification card, green card, or
school visa; the child's school, medical, and dental records; a contact list of
the child's medical, dental, and mental health providers; and contact
information for the child's siblings, if the siblings are in foster care.
(f) For a child who will be discharged
from foster care at age 18 or older, the responsible social services agency is
required to develop a personalized transition plan as directed by the youth. The transition plan must be developed during
the 90-day period immediately prior to the expected date of discharge. The transition plan must be as detailed as
the child may elect and include specific options on housing, health insurance,
education, local opportunities for mentors and continuing support services, and
work force supports and employment services.
The agency shall ensure that the youth receives, at no cost to the
youth, a copy of the youth's consumer credit report as defined in section
13C.001 and assistance in interpreting and resolving any inaccuracies in the
report. The plan must include information
on the importance of designating another individual to make health care
treatment decisions on behalf of the child if the child becomes unable to
participate in these decisions and the child does not have, or does not want, a
relative who would otherwise be authorized to make these decisions. The plan must provide the child with the
option to execute a health care directive as provided under chapter 145C. The agency shall also provide the youth with
appropriate contact information if the youth needs more information or needs
help dealing with a crisis situation through age 21.
Sec. 8. Minnesota Statutes 2015 Supplement, section 260C.212, subdivision 1, is amended to read:
Subdivision 1. Out-of-home placement; plan. (a) An out-of-home placement plan shall be prepared within 30 days after any child is placed in foster care by court order or a voluntary placement agreement between the responsible social services agency and the child's parent pursuant to section 260C.227 or chapter 260D.
(b) An out-of-home placement plan means a written document which is prepared by the responsible social services agency jointly with the parent or parents or guardian of the child and in consultation with the child's guardian ad litem, the child's tribe, if the child is an Indian child, the child's foster parent or representative of the foster care facility, and, where appropriate, the child. When a child is age 14 or older, the child may include two other individuals on the team preparing the child's out-of-home placement plan. The child may select one member of the case planning team to be designated as the child's advisor and to advocate with respect to the application of the reasonable and prudent parenting standards. The responsible social services agency may reject an individual selected by the child if the agency has good cause to believe that the individual would not act in the best interest of the child. For a child in voluntary foster care for treatment under chapter 260D, preparation of the out-of-home placement plan shall additionally include the child's mental health treatment provider. For a child 18 years of age or older, the responsible social services agency shall involve the child and the child's parents as appropriate. As appropriate, the plan shall be:
(1) submitted to the court for approval under section 260C.178, subdivision 7;
(2) ordered by the court, either as presented or modified after hearing, under section 260C.178, subdivision 7, or 260C.201, subdivision 6; and
(3) signed by the parent or parents or guardian of the child, the child's guardian ad litem, a representative of the child's tribe, the responsible social services agency, and, if possible, the child.
(c) The out-of-home placement plan shall be explained to all persons involved in its implementation, including the child who has signed the plan, and shall set forth:
(1) a description of the foster care home or facility selected, including how the out-of-home placement plan is designed to achieve a safe placement for the child in the least restrictive, most family-like, setting available which is in close proximity to the home of the parent or parents or guardian of the child when the case plan goal is reunification, and how the placement is consistent with the best interests and special needs of the child according to the factors under subdivision 2, paragraph (b);
(2) the specific reasons for the placement
of the child in foster care, and when reunification is the plan, a description
of the problems or conditions in the home of the parent or parents which
necessitated removal of the child from home and the changes the parent or
parents must make in order for the child to safely return home;
(3) a description of the services offered and provided to prevent removal of the child from the home and to reunify the family including:
(i) the specific actions to be taken by the parent or parents of the child to eliminate or correct the problems or conditions identified in clause (2), and the time period during which the actions are to be taken; and
(ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made to achieve a safe and stable home for the child including social and other supportive services to be provided or offered to the parent or parents or guardian of the child, the child, and the residential facility during the period the child is in the residential facility;
(4) a description of any services or resources that were requested by the child or the child's parent, guardian, foster parent, or custodian since the date of the child's placement in the residential facility, and whether those services or resources were provided and if not, the basis for the denial of the services or resources;
(5) the visitation plan for the parent or parents or guardian, other relatives as defined in section 260C.007, subdivision 26b or 27, and siblings of the child if the siblings are not placed together in foster care, and whether visitation is consistent with the best interest of the child, during the period the child is in foster care;
(6) when a child cannot return to or be in the care of either parent, documentation of steps to finalize adoption as the permanency plan for the child through reasonable efforts to place the child for adoption. At a minimum, the documentation must include consideration of whether adoption is in the best interests of the child, child-specific recruitment efforts such as relative search and the use of state, regional, and national adoption exchanges to facilitate orderly and timely placements in and outside of the state. A copy of this documentation shall be provided to the court in the review required under section 260C.317, subdivision 3, paragraph (b);
(7) when a child cannot return to or be in the care of either parent, documentation of steps to finalize the transfer of permanent legal and physical custody to a relative as the permanency plan for the child. This documentation must support the requirements of the kinship placement agreement under section 256N.22 and must include the reasonable efforts used to determine that it is not appropriate for the child to return home or be adopted, and reasons why permanent placement with a relative through a Northstar kinship assistance arrangement is in the child's best interest; how the child meets the eligibility requirements for Northstar kinship assistance payments; agency efforts to discuss adoption with the child's relative foster parent and reasons why the relative foster parent chose not to pursue adoption, if applicable; and agency efforts to discuss with the child's parent or parents the permanent transfer of permanent legal and physical custody or the reasons why these efforts were not made;
(8) efforts to ensure the child's
educational stability while in foster care, including for a child who
attained the minimum age for compulsory school attendance under state law and
is enrolled full time in elementary or secondary school, or instructed in
elementary or secondary education at home, or instructed in an independent
study elementary or secondary program, or incapable of attending school on a
full-time basis due to a medical condition that is documented and supported by
regularly updated information in the child's case plan. Educational stability efforts include:
(i) efforts to ensure that the child remains in the same school in which the child was enrolled prior to placement or upon the child's move from one placement to another, including efforts to work with the local education authorities to ensure the child's educational stability and attendance; or
(ii) if it is not in the child's best interest to remain in the same school that the child was enrolled in prior to placement or move from one placement to another, efforts to ensure immediate and appropriate enrollment for the child in a new school;
(9) the educational records of the child including the most recent information available regarding:
(i) the names and addresses of the child's educational providers;
(ii) the child's grade level performance;
(iii) the child's school record;
(iv) a statement about how the child's placement in foster care takes into account proximity to the school in which the child is enrolled at the time of placement; and
(v) any other relevant educational information;
(10) the efforts by the local responsible
social services agency to ensure the oversight and continuity of health
care services for the foster child, including:
(i) the plan to schedule the child's initial health screens;
(ii) how the child's known medical
problems and identified needs from the screens, including any known
communicable diseases, as defined in section 144.4172, subdivision 2, will
shall be monitored and treated while the child is in foster care;
(iii) how the child's medical information will
shall be updated and shared, including the child's immunizations;
(iv) who is responsible to coordinate and respond to the child's health care needs, including the role of the parent, the agency, and the foster parent;
(v) who is responsible for oversight of the child's prescription medications;
(vi) how physicians or other appropriate
medical and nonmedical professionals will shall be consulted and
involved in assessing the health and well-being of the child and determine the
appropriate medical treatment for the child; and
(vii) the responsibility to ensure that the child has access to medical care through either medical insurance or medical assistance;
(11) the health records of the child including information available regarding:
(i) the names and addresses of the child's health care and dental care providers;
(ii) a record of the child's immunizations;
(iii) the child's known medical problems, including any known communicable diseases as defined in section 144.4172, subdivision 2;
(iv) the child's medications; and
(v) any other relevant health care information such as the child's eligibility for medical insurance or medical assistance;
(12) an independent living plan for a
child age 14 years of age or older, developed in consultation
with the child. The child may select one
member of the case planning team to be designated as the child's advisor and to
advocate with respect to the application of the reasonable and prudent
parenting standards in subdivision 14.
The plan should include, but not be limited to, the following
objectives:
(i) educational, vocational, or employment planning;
(ii) health care planning and medical coverage;
(iii) transportation including, where appropriate, assisting the child in obtaining a driver's license;
(iv) money management, including the
responsibility of the responsible social services agency to ensure that
the youth child annually receives, at no cost to the youth
child, a consumer report as defined under section 13C.001 and assistance
in interpreting and resolving any inaccuracies in the report;
(v) planning for housing;
(vi) social and recreational skills;
(vii) establishing and maintaining connections with the child's family and community; and
(viii) regular opportunities to engage in
age-appropriate or developmentally appropriate activities typical for the
child's age group, taking into consideration the capacities of the individual
child; and
(13) for a child in voluntary foster care
for treatment under chapter 260D, diagnostic and assessment information, specific services relating to meeting
the mental health care needs of the child, and treatment outcomes.;
and
(14) for a child 14 years of age or
older, a signed acknowledgment that describes the child's rights regarding
education, health care, visitation, safety and protection from exploitation,
and court participation; receipt of the documents identified in section
260C.452; and receipt of an annual credit report. The acknowledgment shall state that the
rights were explained in an age-appropriate manner to the child.
(d) The parent or parents or guardian and the child each shall have the right to legal counsel in the preparation of the case plan and shall be informed of the right at the time of placement of the child. The child shall also have the right to a guardian ad litem. If unable to employ counsel from their own resources, the court shall appoint counsel upon the request of the parent or parents or the child or the child's legal guardian. The parent or parents may also receive assistance from any person or social services agency in preparation of the case plan.
After the plan has been agreed upon by the parties involved or approved or ordered by the court, the foster parents shall be fully informed of the provisions of the case plan and shall be provided a copy of the plan.
Upon discharge from foster care, the parent, adoptive parent, or permanent legal and physical custodian, as appropriate, and the child, if appropriate, must be provided with a current copy of the child's health and education record.
Sec. 9. Minnesota Statutes 2015 Supplement, section 260C.212, subdivision 14, is amended to read:
Subd. 14. Support age-appropriate and developmentally appropriate activities for foster children. (a) Responsible social services agencies and licensed child-placing agencies shall support a foster child's emotional and developmental growth by permitting the child to participate in activities or events that are generally accepted as suitable for children of the same chronological age or are developmentally appropriate for the child. "Developmentally appropriate" means based on a child's cognitive, emotional, physical, and behavioral capacities that are typical for an age or age group. Foster parents and residential facility staff are permitted to allow foster children to participate in extracurricular, social, or cultural activities that are typical for the child's age by applying reasonable and prudent parenting standards.
(b) "Reasonable and prudent
parenting" means the standards are characterized by careful
and sensible parenting decisions that maintain the child's health and safety, cultural,
religious, and are made in the child's tribal values, and best
interest interests while encouraging the child's emotional and
developmental growth.
(c) The commissioner shall provide
guidance about the childhood activities and factors a foster parent and
authorized residential facility staff must consider when applying the
reasonable and prudent parenting standards.
The factors must include the:
(1) child's age, maturity, and
developmental level;
(2) risk of activity;
(3) best interests of the child;
(4) importance of the experience in the
child's emotional and developmental growth;
(5) importance of a family-like
experience;
(6) behavioral history of the child; and
(7) wishes of the child's parent or
legal guardian, as appropriate.
(d) A residential facility licensed
under Minnesota Rules, chapter 2960, must have at least one onsite staff person
who is trained on the standards according to section 260C.215, subdivision 4,
and authorized to apply the reasonable and prudent parenting standards to
decisions involving the approval of a foster child's participation in age and
developmentally appropriate extracurricular, social, or cultural activities. The onsite staff person referenced in this
paragraph is not required to be available 24 hours per day.
(e) The foster parent or designated
staff at residential facilities demonstrating compliance with the reasonable
and prudent parenting standards shall not incur civil liability if a foster
child is harmed or injured because of participating in approved
extracurricular, enrichment, cultural, and social activities.
Sec. 10. Minnesota Statutes 2015 Supplement, section 260C.215, subdivision 4, is amended to read:
Subd. 4. Duties of commissioner. The commissioner of human services shall:
(1) provide practice guidance to responsible social services agencies and licensed child-placing agencies that reflect federal and state laws and policy direction on placement of children;
(2) develop criteria for determining whether a prospective adoptive or foster family has the ability to understand and validate the child's cultural background;
(3) provide a standardized training curriculum for adoption and foster care workers and administrators who work with children. Training must address the following objectives:
(i) developing and maintaining sensitivity to all cultures;
(ii) assessing values and their cultural implications;
(iii) making individualized placement decisions that advance the best interests of a particular child under section 260C.212, subdivision 2; and
(iv) issues related to cross-cultural placement;
(4) provide a training curriculum for all prospective adoptive and foster families that prepares them to care for the needs of adoptive and foster children taking into consideration the needs of children outlined in section 260C.212, subdivision 2, paragraph (b), and, as necessary, preparation is continued after placement of the child and includes the knowledge and skills related to reasonable and prudent parenting standards for the participation of the child in age or developmentally appropriate activities, according to section 260C.212, subdivision 14;
(5) develop and provide to responsible social services agencies and licensed child-placing agencies a home study format to assess the capacities and needs of prospective adoptive and foster families. The format must address problem-solving skills; parenting skills; evaluate the degree to which the prospective family has the ability to understand and validate the child's cultural background, and other issues needed to provide sufficient information for agencies to make an individualized placement decision consistent with section 260C.212, subdivision 2. For a study of a prospective foster parent, the format must also address the capacity of the prospective foster parent to provide a safe, healthy, smoke-free home environment. If a prospective adoptive parent has also been a foster parent, any update necessary to a home study for the purpose of adoption may be completed by the licensing authority responsible for the foster parent's license. If a prospective adoptive parent with an approved adoptive home study also applies for a foster care license, the license application may be made with the same agency which provided the adoptive home study; and
(6) consult with representatives reflecting diverse populations from the councils established under sections 3.922 and 15.0145, and other state, local, and community organizations.
Sec. 11. Minnesota Statutes 2015 Supplement, section 260C.451, subdivision 6, is amended to read:
Subd. 6. Reentering
foster care and accessing services after age 18 years of age and up
to 21 years of age. (a) Upon
request of an individual between the ages of 18 and 21 who had been
under the guardianship of the commissioner and who has left foster care without
being adopted, the responsible social services agency which had been the
commissioner's agent for purposes of the guardianship shall develop with the
individual a plan to increase the
individual's ability to live safely and independently using the plan
requirements of section 260C.212, subdivision 1, paragraph (c), clause
(12), and to assist the individual to meet one or more of the eligibility
criteria in subdivision 4 if the individual wants to reenter foster care. The responsible social services agency
shall provide foster care as required to implement the plan. The responsible social services agency
shall enter into a voluntary placement agreement under section 260C.229 with
the individual if the plan includes foster care.
(b) Individuals who had not been under the
guardianship of the commissioner of human services prior to 18 years of
age 18 and are between the ages of 18 and 21 may ask to reenter foster
care after age 18 and, to the extent funds are available, the responsible
social services agency that had responsibility for planning for the individual
before discharge from foster care may provide foster care or other services to the individual for the purpose of increasing the individual's ability to live safely and independently and to meet the eligibility criteria in subdivision 3a, if the individual:
(1) was in foster care for the six consecutive months prior to the person's 18th birthday and was not discharged home, adopted, or received into a relative's home under a transfer of permanent legal and physical custody under section 260C.515, subdivision 4; or
(2) was discharged from foster care while on runaway status after age 15.
(c) In conjunction with a qualifying and eligible individual under paragraph (b) and other appropriate persons, the responsible social services agency shall develop a specific plan related to that individual's vocational, educational, social, or maturational needs and, to the extent funds are available, provide foster care as required to implement the plan. The responsible social services agency shall enter into a voluntary placement agreement with the individual if the plan includes foster care.
(d) Youth A child who left
foster care while under guardianship of the commissioner of human services retain
retains eligibility for foster care for placement at any time between
the ages of 18 and prior to 21 years of age.
Sec. 12. Minnesota Statutes 2014, section 260C.451, is amended by adding a subdivision to read:
Subd. 9. Administrative
or court review of placements. (a)
The court shall conduct reviews at least annually to ensure the responsible
social services agency is making reasonable efforts to finalize the permanency
plan for the child.
(b) The court shall find that the
responsible social services agency is making reasonable efforts to finalize the
permanency plan for the child when the responsible social services agency:
(1) provides appropriate support to the
child and foster care provider to ensure continuing stability and success in
placement;
(2) works with the child to plan for
transition to adulthood and assists the child in demonstrating progress in
achieving related goals;
(3) works with the child to plan for
independent living skills and assists the child in demonstrating progress in
achieving independent living goals; and
(4) prepares the child for independence
according to sections 260C.203, paragraph (d), and 260C.452, subdivision 4.
(c) The responsible social services
agency must ensure that an administrative review that meets the requirements of
this section and section 260C.203 is completed at least six months after each
of the court's annual reviews.
Sec. 13. [260C.452]
SUCCESSFUL TRANSITION TO ADULTHOOD.
Subdivision 1. Scope. This section pertains to a child who
is under the guardianship of the commissioner of human services, or who has a
permanency disposition of permanent custody to the agency, or who will leave
foster care at 18 to 21 years of age.
Subd. 2. Independent
living plan. When the child
is 14 years of age or older, the responsible social services agency, in
consultation with the child, shall complete the independent living plan
according to section 260C.212, subdivision 1, paragraph (c), clause (12).
Subd. 3. Notification. Six months before the child is
expected to be discharged from foster care, the responsible social services
agency shall provide written notice to the child regarding the right to
continued access to services for certain children in foster care past 18 years
of age and of the right to appeal a denial of social services under section
256.045.
Subd. 4. Administrative
or court review of placements. (a)
When the child is 14 years of age or older, the court, in consultation with the
child, shall review the independent living plan according to section 260C.203,
paragraph (d).
(b) The responsible social services
agency shall file a copy of the notification required in subdivision 3 with the
court. If the responsible social
services agency does not file the notice by the time the child is 17-1/2 years
of age, the court shall require the responsible social services agency to file
the notice.
(c) The court shall ensure that the
responsible social services agency assists the child in obtaining the following
documents before the child leaves foster care:
a Social Security card; an official or certified copy of the child's
birth certificate; a state identification card or driver's license, tribal
enrollment identification card, green card, or school visa; health insurance
information; the child's school, medical, and dental records; a contact list of
the child's medical, dental, and mental health providers; and contact
information for the child's siblings, if the siblings are in foster care.
(d) For a child who will be discharged
from foster care at 18 years of age or older, the responsible social services
agency must develop a personalized transition plan as directed by the child
during the 90-day period immediately prior to the expected date of discharge. The transition plan must be as detailed as
the child elects and include specific options, including but not limited to:
(1) affordable housing with necessary
supports that does not include a homeless shelter;
(2) health insurance, including
eligibility for medical assistance as defined in section 256B.055, subdivision
17;
(3) education, including application to
the Education and Training Voucher Program;
(4) local opportunities for mentors and
continuing support services, including the Healthy Transitions and Homeless
Prevention program, if available;
(5) workforce supports and employment
services;
(6) a copy of the child's consumer
credit report as defined in section 13C.001 and assistance in interpreting and
resolving any inaccuracies in the report, at no cost to the child;
(7) information on executing a health
care directive under chapter 145C and on the importance of designating another
individual to make health care decisions on behalf of the child if the child
becomes unable to participate in decisions; and
(8) appropriate contact information
through 21 years of age if the child needs information or help dealing with a
crisis situation.
Subd. 5. Notice
of termination of foster care. (a)
When a child leaves foster care at 18 years of age or older, the responsible
social services agency shall give the child written notice that foster care
shall terminate 30 days from the date the notice is sent.
(b) The child or the child's guardian ad
litem may file a motion asking the court to review the responsible social
services agency's determination within 15 days of receiving the notice. The child shall not be discharged from foster
care until the motion is heard. The
responsible social services agency shall work with the child to transition out
of foster care.
(c) The written notice of termination of
benefits shall be on a form prescribed by the commissioner and shall give
notice of the right to have the responsible social services agency's
determination reviewed by the court under this section or sections 260C.203,
260C.317, and 260C.515, subdivision 5 or 6.
A copy of the termination notice shall be sent to the child and the
child's attorney, if any, the foster care provider, the child's guardian ad
litem, and the court. The responsible
social services agency is not responsible for paying foster care benefits for
any period of time after the child leaves foster care.
Sec. 14. Minnesota Statutes 2015 Supplement, section 260C.521, subdivision 1, is amended to read:
Subdivision 1. Child in permanent custody of responsible social services agency. (a) Court reviews of an order for permanent custody to the responsible social services agency for placement of the child in foster care must be conducted at least yearly at an in-court appearance hearing.
(b) The purpose of the review hearing is to ensure:
(1) the responsible social services
agency made intensive, ongoing, and, as of the date of the hearing, unsuccessful
efforts to return the child home or secure a placement for the child with a fit
and willing relative, custodian, or adoptive parent, and an order for
permanent custody to the responsible social services agency for placement of
the child in foster care continues to be in the best interests of the child and
that no other permanency disposition order is in the best interests of the
child;
(2) that the responsible social services
agency is assisting the child to build connections to the child's family and
community; and
(3) that the responsible social services
agency is appropriately planning with the child for development of independent
living skills for the child and, as appropriate, for the orderly and successful
transition to independent living adulthood that may occur if the
child continues in foster care without another permanency disposition order.;
(4) the child's foster family home or
child care institution is following the reasonable and prudent parenting
standards; and
(5) the child has regular, ongoing
opportunities to engage in age or developmentally appropriate activities by
consulting with the child in an age-appropriate manner about the opportunities.
(c) The court must review the child's out-of-home placement plan and the reasonable efforts of the responsible social services agency to finalize an alternative permanent plan for the child including the responsible social services agency's efforts to:
(1) ensure that permanent custody to the responsible
social services agency with placement of the child in foster care continues
to be the most appropriate legal arrangement for meeting the child's need for
permanency and stability or, if not, to identify and attempt to finalize
another permanency disposition order under this chapter that would better serve
the child's needs and best interests; by reviewing the compelling
reasons it continues not to be in the best interest of the child to:
(i)
return home;
(ii) be placed for adoption; or
(iii) be placed with a fit and willing
relative through an order for permanent legal and physical custody under
section 260C.515, subdivision 4;
(2) identify a specific foster home for the child, if one has not already been identified;
(3) support continued placement of the child in the identified home, if one has been identified;
(4) ensure appropriate services are provided to address the physical health, mental health, and educational needs of the child during the period of foster care and also ensure appropriate services or assistance to maintain relationships with appropriate family members and the child's community; and
(5) plan for the child's independence upon the child's leaving foster care living as required under section 260C.212, subdivision 1.
(d) The court may find that the responsible social services agency has made reasonable efforts to finalize the permanent plan for the child when:
(1) the responsible social services agency has made reasonable efforts to identify a more legally permanent home for the child than is provided by an order for permanent custody to the agency for placement in foster care;
(2) the child has been asked about the child's desired permanency outcome; and
(3) the responsible social services
agency's engagement of the child in planning for independent living a
successful transition to adulthood is reasonable and appropriate.
Sec. 15. [260D.14]
SUCCESSFUL TRANSITION TO ADULTHOOD FOR CHILDREN IN VOLUNTARY PLACEMENT.
Subdivision 1. Case
planning. When the child is
14 years of age or older, the responsible social services agency shall ensure a
child in foster care under this chapter is provided with the case plan
requirements in section 260C.212, subdivisions 1 and 14.
Subd. 2. Notification. The responsible social services agency shall provide written notice of the right to continued access to services for certain children in foster care past 18 years of age under section 260C.452, subdivision 3, and of the right to appeal a denial of social services under section 256.045. The notice must be provided to the child six months before the child's 18th birthday.
Subd. 3. Administrative
or court reviews. When the
child is 17 years of age or older, the administrative review or court hearing
must include a review of the responsible social services agency's support for
the child's successful transition to adulthood as required in section 260C.452,
subdivision 4.
Sec. 16. Minnesota Statutes 2014, section 518.175, subdivision 5, is amended to read:
Subd. 5. Modification
of parenting plan or order for parenting time.
(a) If a parenting plan or an order granting parenting time
cannot be used to determine the number of overnights or overnight equivalents
the child has with each parent, the court shall modify the parenting plan or
order granting parenting time so that the number of overnights or overnight
equivalents the child has with each parent can be determined. For purposes of this section, "overnight
equivalents" has the meaning given in section 518A.36, subdivision 1.
(b) If modification would serve the best interests of the child, the court shall modify the decision-making provisions of a parenting plan or an order granting or denying parenting time, if the modification would not change the child's primary residence. Consideration of a child's best interest includes a child's changing developmental needs.
(b) (c) Except as provided
in section 631.52, the court may not restrict parenting time unless it finds
that:
(1) parenting time is likely to endanger the child's physical or emotional health or impair the child's emotional development; or
(2) the parent has chronically and unreasonably failed to comply with court-ordered parenting time.
A modification of parenting time which increases a parent's percentage of parenting time to an amount that is between 45.1 to 54.9 percent parenting time is not a restriction of the other parent's parenting time.
(c) (d) If a parent makes
specific allegations that parenting time by the other parent places the parent
or child in danger of harm, the court shall hold a hearing at the earliest
possible time to determine the need to modify the order granting parenting time. Consistent with subdivision 1a, the court may
require a third party, including the local social services agency, to supervise
the parenting time or may restrict a parent's parenting time if necessary to
protect the other parent or child from harm.
If there is an existing order for protection governing the parties, the
court shall consider the use of an independent, neutral exchange location for
parenting time.
EFFECTIVE
DATE. This section is
effective August 1, 2018.
Sec. 17. Minnesota Statutes 2015 Supplement, section 518A.26, subdivision 14, is amended to read:
Subd. 14. Obligor. "Obligor" means a person
obligated to pay maintenance or support.
For purposes of ordering medical support under section 518A.41, a parent
who has primary physical custody of a child may be an obligor subject to a
payment agreement under section 518A.69.
If a parent has more than 55 percent court-ordered parenting time, there
is a rebuttable presumption that the parent has a zero dollar basic support
obligation. A party seeking to overcome
this presumption must show, and the court must consider, the following:
(1) a significant income disparity,
which may include potential income determined under section 518A.32;
(2) the benefit and detriment to the
child and the ability of each parent to meet the needs of the child; and
(3) whether the application of the
presumption would have an unjust or inappropriate result.
The presumption of a zero dollar basic support obligation
does not eliminate a parent's obligation to pay child support arrears under
section 518A.60. The presumption of a
zero dollar basic support obligation does not apply to an action under section
256.87, subdivision 1 or 1a.
EFFECTIVE
DATE. This section is
effective August 1, 2018.
Sec. 18. Minnesota Statutes 2014, section 518A.34, is amended to read:
518A.34
COMPUTATION OF CHILD SUPPORT OBLIGATIONS.
(a) To determine the presumptive child support obligation of a parent, the court shall follow the procedure set forth in this section.
(b) To determine the obligor's basic support obligation, the court shall:
(1) determine the gross income of each parent under section 518A.29;
(2) calculate the parental income for determining child support (PICS) of each parent, by subtracting from the gross income the credit, if any, for each parent's nonjoint children under section 518A.33;
(3) determine the percentage contribution of each parent to the combined PICS by dividing the combined PICS into each parent's PICS;
(4) determine the combined basic support obligation by application of the guidelines in section 518A.35;
(5) determine the obligor's each
parent's share of the combined basic support obligation by
multiplying the percentage figure from clause (3) by the combined basic support
obligation in clause (4); and
(6) determine the parenting expense
adjustment, if any, as apply the parenting expense adjustment formula
provided in section 518A.36, and adjust the obligor's basic support
obligation accordingly to determine the obligor's basic support
obligation. If the parenting time
of the parties is presumed equal, section 518A.36, subdivision 3, applies to
the calculation of the basic support obligation and a determination of which
parent is the obligor.
(c) If the parents have split custody of
joint children, child support must be calculated for each joint child as
follows:
(1) the court shall determine each
parent's basic support obligation under paragraph (b) and include the amount of
each parent's obligation in the court order.
If the basic support calculation results in each parent owing support to
the other, the court shall offset the higher basic support obligation with the
lower basic support obligation to determine the amount to be paid by the parent
with the higher obligation to the parent with the lower obligation. For the purpose of the cost-of-living
adjustment required under section 518A.75, the adjustment must be based on each
parent's basic support obligation prior to offset. For the purposes of this paragraph,
"split custody" means that there are two or more joint children and
each parent has at least one joint child more than 50 percent of the time;
(2) if each parent pays all child care
expenses for at least one joint child, the court shall calculate child care
support for each joint child as provided in section 518A.40. The court shall determine each parent's child
care support obligation and include the amount of each parent's obligation in
the court order. If the child care
support calculation results in each parent owing support to the other, the
court shall offset the higher child care support obligation with the lower
child care support obligation to determine the amount to be paid by the parent
with the higher obligation to the parent with the lower obligation; and
(3) if each parent pays all medical or
dental insurance expenses for at least one joint child, medical support shall
be calculated for each joint child as provided in section 518A.41. The court shall determine each parent's
medical support obligation and include the amount of each parent's obligation
in the court order. If the medical
support calculation results in each parent owing support to the other, the
court shall offset the higher medical support obligation with the lower medical
support obligation to determine the amount to be paid by the parent with the
higher obligation to the parent with the lower obligation. Unreimbursed and uninsured medical expenses are
not included in the presumptive amount of support owed by a parent and are
calculated and collected as provided in section 518A.41.
(d) The court shall determine the child care support obligation for the obligor as provided in section 518A.40.
(d) (e) The court shall determine the medical support obligation for each parent as provided in section 518A.41. Unreimbursed and uninsured medical expenses are not included in the presumptive amount of support owed by a parent and are calculated and collected as described in section 518A.41.
(e) (f) The court shall
determine each parent's total child support obligation by adding together each
parent's basic support, child care support, and health care coverage
obligations as provided in this section.
(f) (g) If Social Security
benefits or veterans' benefits are received by one parent as a representative
payee for a joint child based on the other parent's eligibility, the court
shall subtract the amount of benefits from the other parent's net child support
obligation, if any.
(g) (h) The final child
support order shall separately designate the amount owed for basic support,
child care support, and medical support.
If applicable, the court shall use the self-support adjustment and
minimum support adjustment under section 518A.42 to determine the obligor's
child support obligation.
EFFECTIVE
DATE. This section is
effective August 1, 2018.
Sec. 19. Minnesota Statutes 2014, section 518A.35, subdivision 1, is amended to read:
Subdivision 1. Determination of support obligation. (a) The guideline in this section is a rebuttable presumption and shall be used in any judicial or administrative proceeding to establish or modify a support obligation under this chapter.
(b) The basic child support obligation shall be determined by referencing the guideline for the appropriate number of joint children and the combined parental income for determining child support of the parents.
(c) If a child is not in the custody of
either parent and a support order is sought against one or both parents, the
basic child support obligation shall be determined by referencing the guideline
for the appropriate number of joint children, and the parent's individual
parental income for determining child support, not the combined parental
incomes for determining child support of the parents. Unless a parent has court-ordered
parenting time, the parenting expense adjustment formula under section 518A.34
must not be applied.
(d) If a child is in custody of either
parent and a support order is sought by the public authority under section
256.87, unless the parent against whom the support order is sought has
court-ordered parenting time, the support obligation must be determined by
referencing the guideline for the appropriate number of joint children and the
parent's individual income without application of the parenting expense
adjustment formula under section 518A.34.
(e) For combined parental incomes for determining child support exceeding $15,000 per month, the presumed basic child support obligations shall be as for parents with combined parental income for determining child support of $15,000 per month. A basic child support obligation in excess of this level may be demonstrated for those reasons set forth in section 518A.43.
EFFECTIVE
DATE. This section is
effective August 1, 2018.
Sec. 20. Minnesota Statutes 2014, section 518A.36, is amended to read:
518A.36
PARENTING EXPENSE ADJUSTMENT.
Subdivision 1. General. (a) The parenting expense adjustment under this section reflects the presumption that while exercising parenting time, a parent is responsible for and incurs costs of caring for the child, including, but not limited to, food, clothing, transportation, recreation, and household expenses. Every child support order shall
specify
the percentage of parenting time granted to or presumed for each parent. For purposes of this section, the percentage
of parenting time means the percentage of time a child is scheduled to spend
with the parent during a calendar year according to a court order averaged
over a two-year period. Parenting
time includes time with the child whether it is designated as visitation,
physical custody, or parenting time. The
percentage of parenting time may be determined by calculating the number of
overnights or overnight equivalents that a child parent
spends with a parent, or child pursuant to a court order. For purposes of this section, overnight
equivalents are calculated by using a method other than overnights if the
parent has significant time periods on separate days where the child is in the
parent's physical custody and under the direct care of the parent but does not
stay overnight. The court may consider
the age of the child in determining whether a child is with a parent for a
significant period of time.
(b) If there is not a court order awarding parenting time, the court shall determine the child support award without consideration of the parenting expense adjustment. If a parenting time order is subsequently issued or is issued in the same proceeding, then the child support order shall include application of the parenting expense adjustment.
Subd. 2. Calculation
of parenting expense adjustment. The
obligor is entitled to a parenting expense adjustment calculated as provided in
this subdivision. The court shall:
(1) find the adjustment percentage
corresponding to the percentage of parenting time allowed to the obligor below:
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(2) multiply the adjustment percentage by
the obligor's basic child support obligation to arrive at the parenting expense
adjustment; and
(3) subtract the parenting expense
adjustment from the obligor's basic child support obligation. The result is the obligor's basic support
obligation after parenting expense adjustment.
(a) For the purposes of this section,
the following terms have the meanings given:
(1) "parent A" means the
parent with whom the child or children will spend the least number of
overnights under the court order; and
(2) "parent B" means the
parent with whom the child or children will spend the greatest number of
overnights under the court order.
(b) The court shall apply the following
formula to determine which parent is the obligor and calculate the basic support
obligation:
(1) raise to the power of three the
approximate number of annual overnights the child or children will likely spend
with parent A;
(2) raise to the power of three the
approximate number of annual overnights the child or children will likely spend
with parent B;
(3)
multiply the result of clause (1) times parent B's share of the combined basic
support obligation as determined in section 518A.34, paragraph (b), clause (5);
(4) multiply the result of clause (2)
times parent A's share of the combined basic support obligation as determined
in section 518A.34, paragraph (b), clause (5);
(5) subtract the result of clause (4)
from the result of clause (3); and
(6) divide the result of clause (5) by
the sum of clauses (1) and (2).
(c) If the result is a negative number,
parent A is the obligor, the negative number becomes its positive equivalent,
and the result is the basic support obligation.
If the result is a positive number, parent B is the obligor and the
result is the basic support obligation.
Subd. 3. Calculation
of basic support when parenting time presumed is equal. (a) If the parenting time is equal
and the parental incomes for determining child support of the parents also are
equal, no basic support shall be paid unless the court determines that the
expenses for the child are not equally shared.
(b) If the parenting time is equal but
the parents' parental incomes for determining child support are not equal, the
parent having the greater parental income for determining child support shall
be obligated for basic child support, calculated as follows:
(1) multiply the combined basic support
calculated under section 518A.34 by 0.75;
(2) prorate the amount under clause (1)
between the parents based on each parent's proportionate share of the combined
PICS; and
(3) subtract the lower amount from the
higher amount.
The resulting figure is the obligation
after parenting expense adjustment for the parent with the greater parental
income for determining child support.
EFFECTIVE
DATE. This section is
effective August 1, 2018.
Sec. 21. Minnesota Statutes 2015 Supplement, section 518A.39, subdivision 2, is amended to read:
Subd. 2. Modification. (a) The terms of an order respecting maintenance or support may be modified upon a showing of one or more of the following, any of which makes the terms unreasonable and unfair: (1) substantially increased or decreased gross income of an obligor or obligee; (2) substantially increased or decreased need of an obligor or obligee or the child or children that are the subject of these proceedings; (3) receipt of assistance under the AFDC program formerly codified under sections 256.72 to 256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a change in the cost of living for either party as measured by the Federal Bureau of Labor Statistics; (5) extraordinary medical expenses of the child not provided for under section 518A.41; (6) a change in the availability of appropriate health care coverage or a substantial increase or decrease in health care coverage costs; (7) the addition of work-related or education-related child care expenses of the obligee or a substantial increase or decrease in existing work-related or education-related child care expenses; or (8) upon the emancipation of the child, as provided in subdivision 5.
(b) It is presumed that there has been a substantial change in circumstances under paragraph (a) and the terms of a current support order shall be rebuttably presumed to be unreasonable and unfair if:
(1) the application of the child support guidelines in section 518A.35, to the current circumstances of the parties results in a calculated court order that is at least 20 percent and at least $75 per month higher or lower than the current support order or, if the current support order is less than $75, it results in a calculated court order that is at least 20 percent per month higher or lower;
(2) the medical support provisions of the order established under section 518A.41 are not enforceable by the public authority or the obligee;
(3) health coverage ordered under section 518A.41 is not available to the child for whom the order is established by the parent ordered to provide;
(4) the existing support obligation is in the form of a statement of percentage and not a specific dollar amount;
(5) the gross income of an obligor or obligee has decreased by at least 20 percent through no fault or choice of the party; or
(6) a deviation was granted based on the factor in section 518A.43, subdivision 1, clause (4), and the child no longer resides in a foreign country or the factor is otherwise no longer applicable.
(c) A child support order is not presumptively modifiable solely because an obligor or obligee becomes responsible for the support of an additional nonjoint child, which is born after an existing order. Section 518A.33 shall be considered if other grounds are alleged which allow a modification of support.
(d) If child support was established by
applying a parenting expense adjustment or presumed equal parenting time calculation
under previously existing child support guidelines and there is no parenting
plan or order from which overnights or overnight equivalents can be determined,
there is a rebuttable presumption that the established adjustment or
calculation will continue after modification so long as the modification is not
based on a change in parenting time. In
determining an obligation under previously existing child support guidelines,
it is presumed that the court shall:
(1) if a 12 percent parenting expense
adjustment was applied, multiply the obligor's share of the combined basic
support obligation calculated under section 518A.34, paragraph (b), clause (5),
by 0.88; or
(2) if the parenting time was presumed
equal but the parents' parental incomes for determining child support were not
equal:
(i) multiply the combined basic support
obligation under section 518A.34, paragraph (b), clause (5), by 0.075;
(ii) prorate the amount under item (i)
between the parents based on each parent's proportionate share of the combined
PICS; and
(iii) subtract the lower amount from
the higher amount.
(e) On a motion for modification of maintenance, including a motion for the extension of the duration of a maintenance award, the court shall apply, in addition to all other relevant factors, the factors for an award of maintenance under section 518.552 that exist at the time of the motion. On a motion for modification of support, the court:
(1)
shall apply section 518A.35, and shall not consider the financial circumstances
of each party's spouse, if any; and
(2) shall not consider compensation received by a party for employment in excess of a 40-hour work week, provided that the party demonstrates, and the court finds, that:
(i) the excess employment began after entry of the existing support order;
(ii) the excess employment is voluntary and not a condition of employment;
(iii) the excess employment is in the nature of additional, part-time employment, or overtime employment compensable by the hour or fractions of an hour;
(iv) the party's compensation structure has not been changed for the purpose of affecting a support or maintenance obligation;
(v) in the case of an obligor, current child support payments are at least equal to the guidelines amount based on income not excluded under this clause; and
(vi) in the case of an obligor who is in arrears in child support payments to the obligee, any net income from excess employment must be used to pay the arrearages until the arrearages are paid in full.
(e) (f) A modification of
support or maintenance, including interest that accrued pursuant to section
548.091, may be made retroactive only with respect to any period during which
the petitioning party has pending a motion for modification but only from the
date of service of notice of the motion on the responding party and on the
public authority if public assistance is being furnished or the county attorney
is the attorney of record, unless the court adopts an alternative effective
date under paragraph (l). The court's
adoption of an alternative effective date under paragraph (l) shall not be
considered a retroactive modification of maintenance or support.
(f) (g) Except for an award of
the right of occupancy of the homestead, provided in section 518.63, all
divisions of real and personal property provided by section 518.58 shall be
final, and may be revoked or modified only where the court finds the existence
of conditions that justify reopening a judgment under the laws of this state,
including motions under section 518.145, subdivision 2. The court may impose a lien or charge on the
divided property at any time while the property, or subsequently acquired
property, is owned by the parties or either of them, for the payment of
maintenance or support money, or may sequester the property as is provided by
section 518A.71.
(g) (h) The court need not hold
an evidentiary hearing on a motion for modification of maintenance or support.
(h) (i) Sections 518.14 and
518A.735 shall govern the award of attorney fees for motions brought under this
subdivision.
(i) (j) Except as expressly
provided, an enactment, amendment, or repeal of law does not constitute a
substantial change in the circumstances for purposes of modifying a child
support order.
(j) MS 2006 [Expired]
(k) On the first modification under the
income shares method of calculation following implementation of amended
child support guidelines, the modification of basic support may be limited
if the amount of the full variance would create hardship for either the obligor
or the obligee. Hardship includes,
but is not limited to, eligibility for assistance under chapter 256J.
(l) The court may select an alternative effective date for a maintenance or support order if the parties enter into a binding agreement for an alternative effective date.
EFFECTIVE
DATE. This section is
effective August 1, 2018.
Sec. 22. [518A.79]
CHILD SUPPORT TASK FORCE.
Subdivision 1. Establishment;
purpose. There is established
the Child Support Task Force for the Department of Human Services. The purpose of the task force is to advise
the commissioner of human services on matters relevant to maintaining effective
and efficient child support guidelines that will best serve the children of
Minnesota and take into account the changing dynamics of families.
Subd. 2. Members. (a) The task force must consist of:
(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;
(3) one representative from the
Minnesota County Attorneys Association;
(4) one staff member from the
Department of Human Services Child Support Division;
(5) one representative from a tribe
with an approved IV-D program appointed by resolution of the Minnesota Indian
Affairs Council;
(6) one representative from the
Minnesota Family Support Recovery Council;
(7) one child support magistrate,
family court referee, or one district court judge or retired judge with
experience in child support matters, appointed by the chief justice of the
Supreme Court;
(8) four parents, at least two of whom
represent diverse cultural and social communities, appointed by the
commissioner with equal representation between custodial and noncustodial
parents;
(9) one representative from the
Minnesota Legal Services Coalition; and
(10) one representative from the Family
Law Section of the Minnesota Bar Association.
(b) Section 15.059 governs the Child Support Task Force.
(c) Members of the task force shall be
compensated as provided in section 15.059, subdivision 3.
Subd. 3. Organization. (a) The commissioner or the
commissioner's designee shall convene the first meeting of the task force.
(b) The members of the task force shall
annually elect a chair and other officers as the members deem necessary.
(c) The task force shall meet at least
three times per year, with one meeting devoted to collecting input from the
public.
Subd. 4. Staff. The commissioner shall provide support
staff, office space, and administrative services for the task force.
Subd. 5. Duties
of the task force. (a)
General duties of the task force include, but are not limited to:
(1) serving in an advisory capacity to
the commissioner of human services;
(2) reviewing the effects of implementing the parenting expense adjustment enacted by the 2016 legislature;
(3) at least every four years,
preparing for and advising the commissioner on the development of the
quadrennial review report;
(4) collecting and studying information
and data relating to child support awards; and
(5) conducting a comprehensive review
of child support guidelines, economic conditions, and other matters relevant to
maintaining effective and efficient child support guidelines.
(b) The task force must review, address, and make recommendations on the following priority issues:
(1) the self-support reserve for
custodial and noncustodial parents;
(2) simultaneous child support orders;
(3) obligors who are subject to child
support orders in multiple counties;
(4) parents with multiple families;
(5) non-nuclear families, such as grandparents, relatives, and foster parents who are caretakers of children;
(6) standards to apply for
modifications; and
(7) updating section 518A.35,
subdivision 2, the guideline for basic support.
Subd. 6. Consultation. The chair of the task force must
consult with the Cultural and Ethnic Communities Leadership Council at least
annually on the issues under consideration by the task force.
Subd. 7. Report
and recommendations. Beginning
February 15, 2018, and biennially thereafter, if the task force is extended by
the legislature, the commissioner shall prepare and submit to the chairs and
ranking minority members of the committees of the house of representatives and
the senate with jurisdiction over child support matters a report that
summarizes the activities of the task force, issues identified by the task
force, methods taken to address the issues, and recommendations for legislative
action, if needed.
Subd. 8. Expiration. The task force expires June 30, 2019,
unless extended by the legislature.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 23. Minnesota Statutes 2014, section 609.3241, is amended to read:
609.3241
PENALTY ASSESSMENT AUTHORIZED.
(a) When a court sentences an adult convicted of violating section 609.322 or 609.324, while acting other than as a prostitute, the court shall impose an assessment of not less than $500 and not more than $750 for a violation of section 609.324, subdivision 2, or a misdemeanor violation of section 609.324, subdivision 3; otherwise the court shall impose an assessment of not less than $750 and not more than $1,000. The assessment shall be distributed as provided in paragraph (c) and is in addition to the surcharge required by section 357.021, subdivision 6.
(b) The court may not waive payment of the minimum assessment required by this section. If the defendant qualifies for the services of a public defender or the court finds on the record that the convicted person is indigent or that immediate payment of the assessment would create undue hardship for the convicted person or that person's immediate family, the court may reduce the amount of the minimum assessment to not less than $100. The court also may authorize payment of the assessment in installments.
(c) The assessment collected under paragraph (a) must be distributed as follows:
(1) 40 percent of the assessment shall be forwarded to the political subdivision that employs the arresting officer for use in enforcement, training, and education activities related to combating sexual exploitation of youth, or if the arresting officer is an employee of the state, this portion shall be forwarded to the commissioner of public safety for those purposes identified in clause (3);
(2) 20 percent of the assessment shall be forwarded to the prosecuting agency that handled the case for use in training and education activities relating to combating sexual exploitation activities of youth; and
(3) 40 percent of the assessment must be
forwarded to the commissioner of public safety health to be
deposited in the safe harbor for youth account in the special revenue fund and
are appropriated to the commissioner for distribution to crime victims services
organizations that provide services to sexually exploited youth, as defined in
section 260C.007, subdivision 31.
(d) A safe harbor for youth account is established as a special account in the state treasury.
Sec. 24. Minnesota Statutes 2015 Supplement, section 626.556, subdivision 2, is amended to read:
Subd. 2. Definitions. As used in this section, the following terms have the meanings given them unless the specific content indicates otherwise:
(a) "Accidental" means a sudden, not reasonably foreseeable, and unexpected occurrence or event which:
(1) is not likely to occur and could not have been prevented by exercise of due care; and
(2) if occurring while a child is receiving services from a facility, happens when the facility and the employee or person providing services in the facility are in compliance with the laws and rules relevant to the occurrence or event.
(b) "Commissioner" means the commissioner of human services.
(c) "Facility" means:
(1) a licensed or unlicensed day care facility, residential facility, agency, hospital, sanitarium, or other facility or institution required to be licensed under sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or chapter 245D;
(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E; or
(3) a nonlicensed personal care provider organization as defined in section 256B.0625, subdivision 19a.
(d) "Family assessment" means a comprehensive assessment of child safety, risk of subsequent child maltreatment, and family strengths and needs that is applied to a child maltreatment report that does not allege sexual abuse or substantial child endangerment. Family assessment does not include a determination as to whether child maltreatment occurred but does determine the need for services to address the safety of family members and the risk of subsequent maltreatment.
(e) "Investigation" means fact gathering related to the current safety of a child and the risk of subsequent maltreatment that determines whether child maltreatment occurred and whether child protective services are needed. An investigation must be used when reports involve sexual abuse or substantial child endangerment, and for reports of maltreatment in facilities required to be licensed under chapter 245A or 245D; under sections 144.50 to 144.58 and 241.021; in a school as defined in section 120A.05, subdivisions 9, 11, and 13, and chapter 124E; or in a nonlicensed personal care provider association as defined in section 256B.0625, subdivision 19a.
(f) "Mental injury" means an injury to the psychological capacity or emotional stability of a child as evidenced by an observable or substantial impairment in the child's ability to function within a normal range of performance and behavior with due regard to the child's culture.
(g) "Neglect" means the commission or omission of any of the acts specified under clauses (1) to (9), other than by accidental means:
(1) failure by a person responsible for a child's care to supply a child with necessary food, clothing, shelter, health, medical, or other care required for the child's physical or mental health when reasonably able to do so;
(2) failure to protect a child from conditions or actions that seriously endanger the child's physical or mental health when reasonably able to do so, including a growth delay, which may be referred to as a failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
(3) failure to provide for necessary supervision or child care arrangements appropriate for a child after considering factors as the child's age, mental ability, physical condition, length of absence, or environment, when the child is unable to care for the child's own basic needs or safety, or the basic needs or safety of another child in their care;
(4) failure to ensure that the child is educated as defined in sections 120A.22 and 260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
(5) nothing in this section shall be construed to mean that a child is neglected solely because the child's parent, guardian, or other person responsible for the child's care in good faith selects and depends upon spiritual means or prayer for treatment or care of disease or remedial care of the child in lieu of medical care; except that a parent, guardian, or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report if a lack of medical care may cause serious danger to the child's health. This section does not impose upon persons, not otherwise legally responsible for providing a child with necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
(6) prenatal exposure to a controlled substance, as defined in section 253B.02, subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal symptoms in the child at birth, results of a toxicology test performed on the mother at delivery or the child at birth, medical effects or developmental delays during the child's first year of life that medically indicate prenatal exposure to a controlled substance, or the presence of a fetal alcohol spectrum disorder;
(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
(8) chronic and severe use of alcohol or a controlled substance by a parent or person responsible for the care of the child that adversely affects the child's basic needs and safety; or
(9) emotional harm from a pattern of behavior which contributes to impaired emotional functioning of the child which may be demonstrated by a substantial and observable effect in the child's behavior, emotional response, or cognition that is not within the normal range for the child's age and stage of development, with due regard to the child's culture.
(h) "Nonmaltreatment mistake" means:
(1) at the time of the incident, the individual was performing duties identified in the center's child care program plan required under Minnesota Rules, part 9503.0045;
(2) the individual has not been determined responsible for a similar incident that resulted in a finding of maltreatment for at least seven years;
(3) the individual has not been determined to have committed a similar nonmaltreatment mistake under this paragraph for at least four years;
(4) any injury to a child resulting from the incident, if treated, is treated only with remedies that are available over the counter, whether ordered by a medical professional or not; and
(5) except for the period when the incident occurred, the facility and the individual providing services were both in compliance with all licensing requirements relevant to the incident.
This definition only applies to child care centers licensed under Minnesota Rules, chapter 9503. If clauses (1) to (5) apply, rather than making a determination of substantiated maltreatment by the individual, the commissioner of human services shall determine that a nonmaltreatment mistake was made by the individual.
(i) "Operator" means an operator or agency as defined in section 245A.02.
(j) "Person responsible for the child's care" means (1) an individual functioning within the family unit and having responsibilities for the care of the child such as a parent, guardian, or other person having similar care responsibilities, or (2) an individual functioning outside the family unit and having responsibilities for the care of the child such as a teacher, school administrator, other school employees or agents, or other lawful custodian of a child having either full-time or short-term care responsibilities including, but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, and coaching.
(k) "Physical abuse" means any physical injury, mental injury, or threatened injury, inflicted by a person responsible for the child's care on a child other than by accidental means, or any physical or mental injury that cannot reasonably be explained by the child's history of injuries, or any aversive or deprivation procedures, or regulated interventions, that have not been authorized under section 125A.0942 or 245.825.
Abuse does not include reasonable and moderate physical discipline of a child administered by a parent or legal guardian which does not result in an injury. Abuse does not include the use of reasonable force by a teacher, principal, or school employee as allowed by section 121A.582. Actions which are not reasonable and moderate include, but are not limited to, any of the following:
(1) throwing, kicking, burning, biting, or cutting a child;
(2) striking a child with a closed fist;
(3) shaking a child under age three;
(4) striking or other actions which result in any nonaccidental injury to a child under 18 months of age;
(5) unreasonable interference with a child's breathing;
(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
(7) striking a child under age one on the face or head;
(8) striking a child who is at least age one but under age four on the face or head, which results in an injury;
(9) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled substances which were not prescribed for the child by a practitioner, in order to control or punish the child; or other substances that substantially affect the child's behavior, motor coordination, or judgment or that results in sickness or internal injury, or subjects the child to medical procedures that would be unnecessary if the child were not exposed to the substances;
(10) unreasonable physical confinement or restraint not permitted under section 609.379, including but not limited to tying, caging, or chaining; or
(11) in a school facility or school zone, an act by a person responsible for the child's care that is a violation under section 121A.58.
(l) "Practice of social services," for the purposes of subdivision 3, includes but is not limited to employee assistance counseling and the provision of guardian ad litem and parenting time expeditor services.
(m) "Report" means any communication received by the local welfare agency, police department, county sheriff, or agency responsible for child protection pursuant to this section that describes neglect or physical or sexual abuse of a child and contains sufficient content to identify the child and any person believed to be responsible for the neglect or abuse, if known.
(n) "Sexual abuse" means the subjection of a child by a person responsible for the child's care, by a person who has a significant relationship to the child, as defined in section 609.341, or by a person in a position of authority, as defined in section 609.341, subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual conduct in the first degree), 609.343 (criminal sexual conduct in the second degree), 609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual abuse also includes any act which involves a minor which constitutes a violation of prostitution offenses under sections 609.321 to 609.324 or 617.246. Effective May 29, 2017, sexual abuse includes all reports of known or suspected child sex trafficking involving a child who is identified as a victim of sex trafficking. Sexual abuse includes child sex trafficking as defined in section 609.321, subdivisions 7a and 7b. Sexual abuse includes threatened sexual abuse which includes the status of a parent or household member who has committed a violation which requires registration as an offender under section 243.166, subdivision 1b, paragraph (a) or (b), or required registration under section 243.166, subdivision 1b, paragraph (a) or (b).
(o) "Substantial child endangerment" means a person responsible for a child's care, by act or omission, commits or attempts to commit an act against a child under their care that constitutes any of the following:
(1) egregious harm as defined in section 260C.007, subdivision 14;
(2) abandonment under section 260C.301, subdivision 2;
(3) neglect as defined in paragraph (g), clause (2), that substantially endangers the child's physical or mental health, including a growth delay, which may be referred to as failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
(4) murder in the first, second, or third degree under section 609.185, 609.19, or 609.195;
(5) manslaughter in the first or second degree under section 609.20 or 609.205;
(6) assault in the first, second, or third degree under section 609.221, 609.222, or 609.223;
(7) solicitation, inducement, and promotion of prostitution under section 609.322;
(8) criminal sexual conduct under sections 609.342 to 609.3451;
(9) solicitation of children to engage in sexual conduct under section 609.352;
(10) malicious punishment or neglect or endangerment of a child under section 609.377 or 609.378;
(11) use of a minor in sexual performance under section 617.246; or
(12) parental behavior, status, or condition which mandates that the county attorney file a termination of parental rights petition under section 260C.503, subdivision 2.
(p) "Threatened injury" means a statement, overt act, condition, or status that represents a substantial risk of physical or sexual abuse or mental injury. Threatened injury includes, but is not limited to, exposing a child to a person responsible for the child's care, as defined in paragraph (j), clause (1), who has:
(1) subjected a child to, or failed to protect a child from, an overt act or condition that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a similar law of another jurisdiction;
(2) been found to be palpably unfit under section 260C.301, subdivision 1, paragraph (b), clause (4), or a similar law of another jurisdiction;
(3) committed an act that has resulted in an involuntary termination of parental rights under section 260C.301, or a similar law of another jurisdiction; or
(4) committed an act that has resulted in the involuntary transfer of permanent legal and physical custody of a child to a relative under Minnesota Statutes 2010, section 260C.201, subdivision 11, paragraph (d), clause (1), section 260C.515, subdivision 4, or a similar law of another jurisdiction.
A child is the subject of a report of threatened injury when the responsible social services agency receives birth match data under paragraph (q) from the Department of Human Services.
(q) Upon receiving data under section 144.225, subdivision 2b, contained in a birth record or recognition of parentage identifying a child who is subject to threatened injury under paragraph (p), the Department of Human Services shall send the data to the responsible social services agency. The data is known as "birth match" data. Unless the responsible social services agency has already begun an investigation or assessment of the report due to the birth of the child or execution of the recognition of parentage and the parent's previous history with child protection, the agency shall accept the birth match data as a report under this section. The agency may use either a family assessment or investigation to determine whether the child is safe. All of the provisions of this section apply. If the child is determined to be safe, the agency shall consult with the county attorney to determine the appropriateness of filing a petition alleging the child is in need of protection or services under section 260C.007, subdivision 6, clause (16), in order to deliver needed services. If the child is determined not to be safe, the agency and the county attorney shall take appropriate action as required under section 260C.503, subdivision 2.
(r) Persons who conduct assessments or investigations under this section shall take into account accepted child‑rearing practices of the culture in which a child participates and accepted teacher discipline practices, which are not injurious to the child's health, welfare, and safety.
Sec. 25. Minnesota Statutes 2014, section 626.556, subdivision 3e, is amended to read:
Subd. 3e. Agency
responsible for assessing or investigating reports of sexual abuse. The local welfare agency is the agency
responsible for investigating allegations of sexual abuse if the alleged
offender is the parent, guardian, sibling, or an individual functioning within
the family unit as a person responsible for the child's care, or a person with
a significant relationship to the child if that person resides in the child's
household. Effective May 29, 2017,
the local welfare agency is also responsible for investigating when a child is
identified as a victim of sex trafficking.
Sec. 26. Minnesota Statutes 2014, section 626.558, subdivision 1, is amended to read:
Subdivision 1. Establishment of team. A county shall establish a multidisciplinary child protection team that may include, but not be limited to, the director of the local welfare agency or designees, the county attorney or designees, the county sheriff or designees, representatives of health and education, representatives of mental health or other appropriate human service or community-based agencies, and parent groups. As used in this section, a "community-based agency" may include, but is not limited to, schools, social service agencies, family service and mental health collaboratives, children's advocacy centers, early childhood and family education programs, Head Start, or other agencies serving children and families. A member of the team must be designated as the lead person of the team responsible for the planning process to develop standards for its activities with battered women's and domestic abuse programs and services.
Sec. 27. Minnesota Statutes 2014, section 626.558, subdivision 2, is amended to read:
Subd. 2. Duties of team. A multidisciplinary child protection team may provide public and professional education, develop resources for prevention, intervention, and treatment, and provide case consultation to the local welfare agency or other interested community-based agencies. The community-based agencies may request case consultation from the multidisciplinary child protection team regarding a child or family for whom the community-based agency is providing services. As used in this section, "case consultation" means a case review process in which recommendations are made concerning services to be provided to the identified children and family. Case consultation may be performed by a committee or subcommittee of members representing human services, including mental health and chemical dependency; law enforcement, including probation and parole; the county attorney; a children's advocacy center; health care; education; community-based agencies and other necessary agencies; and persons directly involved in an individual case as designated by other members performing case consultation.
Sec. 28. Minnesota Statutes 2014, section 626.558, is amended by adding a subdivision to read:
Subd. 4. Children's
advocacy center; definition. (a)
For purposes of this section, "children's advocacy center" means an
organization, using a multidisciplinary team approach, whose primary purpose is
to provide children who have been the victims of abuse and their nonoffending
family members with:
(1) support and advocacy;
(2) specialized medical evaluation;
(3) trauma-focused mental health
services; and
(4) forensic interviews.
(b) Children's advocacy centers provide
multidisciplinary case review and the tracking and monitoring of case progress.
Sec. 29. DIRECTION
TO COMMISSIONERS; INCOME AND ASSET EXCLUSION.
(a) The commissioner of human services
shall not count payments made to families by the income and child development
in the first three years of life demonstration project as income or assets for
purposes of determining or redetermining eligibility for child care assistance
programs under Minnesota Statutes, chapter 119B; the Minnesota family
investment program, work benefit program, or diversionary work program under
Minnesota Statutes, chapter 256J, during the duration of the demonstration.
(b) The commissioner of human services
shall not count payments made to families by the income and child development
in the first three years of life demonstration project as income for purposes
of determining or redetermining eligibility for medical assistance under
Minnesota Statutes, chapter 256B, and MinnesotaCare under Minnesota Statutes,
chapter 256L.
(c) For the purposes of this section,
"income and child development in the first three years of life
demonstration project" means a demonstration project funded by the United
States Department of Health and Human Services National Institutes of Health to
evaluate whether the unconditional cash payments have a causal effect on the
cognitive, socioemotional, and brain development of infants and toddlers.
(d) This section shall only be
implemented if Minnesota is chosen as a site for the child development in the
first three years of life demonstration project, and expires January 1, 2022.
(e) The commissioner of human services
shall provide a report to the chairs and ranking minority members of the
legislative committees having jurisdiction over human services issues by
January 1, 2023, informing the legislature on the progress and outcomes of the
demonstration under this section.
EFFECTIVE
DATE. Paragraph (b) is
effective August 16, 2016, or upon federal approval, whichever is later. The commissioner of human services shall
notify the revisor of statutes when federal approval is obtained.
ARTICLE 16
CHEMICAL AND MENTAL HEALTH
Section 1. Minnesota Statutes 2015 Supplement, section 245.735, subdivision 3, is amended to read:
Subd. 3. Reform
projects Certified community behavioral health clinics. (a) The commissioner shall establish standards
for a state certification of clinics as process for
certified community behavioral health clinics, in accordance (CCBHCs)
to be eligible for the prospective payment system in paragraph (f). Entities that choose to be CCBHCs must:
(1) comply with the CCBHC
criteria published on or before September 1, 2015, by the United States
Department of Health and Human Services.
Certification standards established by the commissioner shall require
that:;
(1) (2) employ or contract for
clinic staff who have backgrounds in diverse disciplines, include
including licensed mental health professionals, and staff who are
culturally and linguistically trained to serve the needs of the clinic's
patient population;
(2) (3) ensure that clinic
services are available and accessible to patients of all ages and genders
and that crisis management services are available 24 hours per day;
(3) (4) establish fees for
clinic services are established for non-medical assistance patients
using a sliding fee scale and that ensures that services to
patients are not denied or limited due to a patient's inability to pay for
services;
(4)
clinics provide coordination of care across settings and providers to ensure
seamless transitions for patients across the full spectrum of health services,
including acute, chronic, and behavioral needs.
Care coordination may be accomplished through partnerships or formal
contracts with federally qualified health centers, inpatient psychiatric
facilities, substance use and detoxification facilities, community-based mental
health providers, and other community services, supports, and providers
including schools, child welfare agencies, juvenile and criminal justice
agencies, Indian Health Services clinics, tribally licensed health care and
mental health facilities, urban Indian health clinics, Department of Veterans
Affairs medical centers, outpatient clinics, drop-in centers, acute care
hospitals, and hospital outpatient clinics; (5) comply with quality
assurance reporting requirements and other reporting requirements, including
any required reporting of encounter data, clinical outcomes data, and quality
data;
(5) services provided by clinics
include (6) provide crisis mental health services, withdrawal
management services, emergency crisis intervention services, and
stabilization services; screening, assessment, and diagnosis services,
including risk assessments and level of care determinations; patient-centered
treatment planning; outpatient mental health and substance use services;
targeted case management; psychiatric rehabilitation services; peer support and
counselor services and family support services; and intensive community-based
mental health services, including mental health services for members of the
armed forces and veterans; and
(6) clinics comply with quality
assurance reporting requirements and other reporting requirements, including
any required reporting of encounter data, clinical outcomes data, and quality
data. (7) provide coordination of
care across settings and providers to ensure seamless transitions for patients
across the full spectrum of health services, including acute, chronic, and
behavioral needs. Care coordination may
be accomplished through partnerships or formal contracts with:
(i) counties, health plans,
pharmacists, pharmacies, rural health clinics, federally qualified health
centers, inpatient psychiatric facilities, substance use and detoxification
facilities, or community-based mental health providers; and
(ii) other community services,
supports, and providers, including schools, child welfare agencies, juvenile
and criminal justice agencies, Indian health services clinics, tribally
licensed health care and mental health facilities, urban Indian health clinics,
Department of Veterans Affairs medical centers, outpatient clinics, drop-in
centers, acute care hospitals, and hospital outpatient clinics;
(8) be certified as mental health
clinics under section 245.69, subdivision 2;
(9) be certified to provide integrated
treatment for co-occurring mental illness and substance use disorders in adults
or children under Minnesota Rules, chapter 9533, effective July 1, 2017;
(10) comply with standards relating to
mental health services in Minnesota Rules, parts 9505.0370 to 9505.0372;
(11) be licensed to provide chemical
dependency treatment under Minnesota Rules, parts 9530.6405 to 9530.6505;
(12) be certified to provide children's
therapeutic services and supports under section 256B.0943;
(13) be certified to provide adult
rehabilitative mental health services under section 256B.0623;
(14) be enrolled to provide mental health
crisis response services under section 256B.0624;
(15) be enrolled to provide mental
health targeted case management under section 256B.0625, subdivision 20;
(16)
comply with standards relating to mental health case management in Minnesota
Rules, parts 9520.0900 to 9520.0926; and
(17) provide services that comply with
the evidence-based practices described in paragraph (e).
(b) If an entity is unable to provide
one or more of the services listed in paragraph (a), clauses (6) to (17), the
commissioner may certify the entity as a CCBHC, if the entity has a current
contract with another entity that has the required authority to provide that
service and that meets federal CCBHC criteria as a designated collaborating
organization, or, to the extent allowed by the federal CCBHC criteria, the
commissioner may approve a referral arrangement. The CCBHC must meet federal requirements
regarding the type and scope of services to be provided directly by the CCBHC.
(c) Notwithstanding any other law that
requires a county contract or other form of county approval for certain
services listed in paragraph (a), clause (6), a clinic that otherwise meets
CCBHC requirements may receive the prospective payment under paragraph (f) for
those services without a county contract or county approval. There is no county share when medical
assistance pays the CCBHC prospective payment.
As part of the certification process in paragraph (a), the commissioner
shall require a letter of support from the CCBHC's host county confirming that
the CCBHC and the county or counties it serves have an ongoing relationship to
facilitate access and continuity of care, especially for individuals who are
uninsured or who may go on and off medical assistance.
(d) When the standards listed in
paragraph (a) or other applicable standards conflict or address similar issues
in duplicative or incompatible ways, the commissioner may grant variances to
state requirements if the variances do not conflict with federal requirements. If standards overlap, the commissioner may
substitute all or a part of a licensure or certification that is substantially
the same as another licensure or certification.
The commissioner shall consult with stakeholders, as described in
subdivision 4, before granting variances under this provision.
(e) The commissioner shall issue a list
of required evidence-based practices to be delivered by CCBHCs, and may also
provide a list of recommended evidence-based practices. The commissioner may update the list to
reflect advances in outcomes research and medical services for persons living
with mental illnesses or substance use disorders. The commissioner shall take into
consideration the adequacy of evidence to support the efficacy of the practice,
the quality of workforce available, and the current availability of the
practice in the state. At least 30 days
before issuing the initial list and any revisions, the commissioner shall
provide stakeholders with an opportunity to comment.
(b) (f) The commissioner
shall establish standards and methodologies for a prospective payment system
for medical assistance payments for mental health services delivered by
certified community behavioral health clinics, in accordance with guidance
issued on or before September 1, 2015, by the Centers for Medicare and
Medicaid Services. During the operation
of the demonstration project, payments shall comply with federal requirements
for a 90 percent an enhanced federal medical assistance
percentage. The commissioner may
include quality bonus payment in the prospective payment system based on
federal criteria and on a clinic's provision of the evidence‑based
practices in paragraph (e). The
prospective payment system does not apply to MinnesotaCare. Implementation of the prospective payment
system is effective July 1, 2017, or upon federal approval, whichever is later.
(g) The commissioner shall seek federal
approval to continue federal financial participation in payment for CCBHC
services after the federal demonstration period ends for clinics that were certified
as CCBHCs during the demonstration period and that continue to meet the CCBHC
certification standards in paragraph (a).
Payment for CCBHC services shall cease effective July 1, 2019, if
continued federal financial participation for the payment of CCBHC services
cannot be obtained.
(h)
The commissioner may certify at least one CCBHC located in an urban area and at
least one CCBHC located in a rural area, as defined by federal criteria. To the extent allowed by federal law, the
commissioner may limit the number of certified clinics so that the projected
claims for certified clinics will not exceed the funds budgeted for this
purpose. The commissioner shall give
preference to clinics that:
(1) provide a comprehensive range of
services and evidence-based practices for all age groups, with services being
fully coordinated and integrated; and
(2) enhance the state's ability to meet
the federal priorities to be selected as a CCBHC demonstration state.
(i) The commissioner shall recertify
CCBHCs at least every three years. The
commissioner shall establish a process for decertification and shall require
corrective action, medical assistance repayment, or decertification of a CCBHC
that no longer meets the requirements in this section or that fails to meet the
standards provided by the commissioner in the application and certification
process.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2015 Supplement, section 245.735, subdivision 4, is amended to read:
Subd. 4. Public
participation. In developing the
projects and implementing CCBHCs under subdivision 3, the
commissioner shall consult, collaborate, and partner with stakeholders,
including but not limited to mental health providers, substance use
disorder treatment providers, advocacy organizations, licensed mental
health professionals, counties, tribes, hospitals, other health care
providers, and Minnesota public health care program enrollees who receive
mental health services and their families.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2014, section 245.99, subdivision 2, is amended to read:
Subd. 2. Rental
assistance. The program shall pay up
to 90 days of housing assistance for persons with a serious and persistent
mental illness who require inpatient or residential care for stabilization. The commissioner of human services may extend
the length of assistance on a case-by-case basis.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 254B.01, subdivision 4a, is amended to read:
Subd. 4a. Culturally specific program. (a) "Culturally specific program" means a substance use disorder treatment service program or subprogram that is recovery-focused and culturally specific when the program:
(1) improves service quality to and outcomes of a specific population by advancing health equity to help eliminate health disparities; and
(2) ensures effective, equitable, comprehensive, and respectful quality care services that are responsive to an individual within a specific population's values, beliefs and practices, health literacy, preferred language, and other communication needs.
(b) A tribally licensed substance use disorder program that is designated as serving a culturally specific population by the applicable tribal government is deemed to satisfy this subdivision.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2014, section 254B.03, subdivision 4, is amended to read:
Subd. 4. Division
of costs. (a) Except for
services provided by a county under section 254B.09, subdivision 1, or services
provided under section 256B.69 or 256D.03, subdivision 4, paragraph (b),
the county shall, out of local money, pay the state for 22.95 percent of the
cost of chemical dependency services, including those services provided to
persons eligible for medical assistance under chapter 256B and general
assistance medical care under chapter 256D.
Counties may use the indigent hospitalization levy for treatment and
hospital payments made under this section.
(b) 22.95 percent of any state collections from private or third-party pay, less 15 percent for the cost of payment and collections, must be distributed to the county that paid for a portion of the treatment under this section.
(c) For fiscal year 2017 only, the
22.95 percentages under paragraphs (a) and (b) are equal to 20.2 percent.
Sec. 6. Minnesota Statutes 2014, section 254B.04, subdivision 2a, is amended to read:
Subd. 2a. Eligibility for treatment in residential settings. Notwithstanding provisions of Minnesota Rules, part 9530.6622, subparts 5 and 6, related to an assessor's discretion in making placements to residential treatment settings, a person eligible for services under this section must score at level 4 on assessment dimensions related to relapse, continued use, or recovery environment in order to be assigned to services with a room and board component reimbursed under this section. Whether a treatment facility has been designated an institution for mental diseases under United States Code, title 42, section 1396d, shall not be a factor in making placements.
Sec. 7. Minnesota Statutes 2015 Supplement, section 254B.05, subdivision 5, is amended to read:
Subd. 5. Rate requirements. (a) The commissioner shall establish rates for chemical dependency services and service enhancements funded under this chapter.
(b) Eligible chemical dependency treatment services include:
(1) outpatient treatment services that are licensed according to Minnesota Rules, parts 9530.6405 to 9530.6480, or applicable tribal license;
(2) medication-assisted therapy services that are licensed according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6500, or applicable tribal license;
(3) medication-assisted therapy plus enhanced treatment services that meet the requirements of clause (2) and provide nine hours of clinical services each week;
(4) high, medium, and low intensity residential treatment services that are licensed according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable tribal license which provide, respectively, 30, 15, and five hours of clinical services each week;
(5) hospital-based treatment services that are licensed according to Minnesota Rules, parts 9530.6405 to 9530.6480, or applicable tribal license and licensed as a hospital under sections 144.50 to 144.56;
(6) adolescent treatment programs that are licensed as outpatient treatment programs according to Minnesota Rules, parts 9530.6405 to 9530.6485, or as residential treatment programs according to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430 to 2960.0490, or applicable tribal license;
(7) high-intensity residential treatment services that are licensed according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable tribal license, which provide 30 hours of clinical services each week provided by a state-operated vendor or to clients who have been civilly committed to the commissioner, present the most complex and difficult care needs, and are a potential threat to the community; and
(8) room and board facilities that meet the requirements of subdivision 1a.
(c) The commissioner shall establish higher rates for programs that meet the requirements of paragraph (b) and one of the following additional requirements:
(1) programs that serve parents with their children if the program:
(i) provides on-site child care during the hours of treatment activity that:
(A) is licensed under chapter 245A as a child care center under Minnesota Rules, chapter 9503; or
(B) meets the licensure exclusion criteria of section 245A.03, subdivision 2, paragraph (a), clause (6), and meets the requirements under Minnesota Rules, part 9530.6490, subpart 4; or
(ii) arranges for off-site child care during hours of treatment activity at a facility that is licensed under chapter 245A as:
(A) a child care center under Minnesota Rules, chapter 9503; or
(B) a family child care home under Minnesota Rules, chapter 9502;
(2) culturally specific programs as defined
in section 254B.01, subdivision 4a, or programs or subprograms serving
special populations, if the program or subprogram meets the following
requirements in Minnesota Rules, part 9530.6605, subpart 13;:
(i) is designed to address the unique
needs of individuals who share a common language, racial, ethnic, or social
background;
(ii) is governed with significant input
from individuals of that specific background; and
(iii) employs individuals to provide
individual or group therapy, at least 50 percent of whom are of that specific
background, except when the common social background of the individuals served
is a traumatic brain injury or cognitive disability and the program employs
treatment staff who have the necessary professional training, as approved by
the commissioner, to serve clients with the specific disabilities that the
program is designed to serve;
(3) programs that offer medical services delivered by appropriately credentialed health care staff in an amount equal to two hours per client per week if the medical needs of the client and the nature and provision of any medical services provided are documented in the client file; and
(4) programs that offer services to individuals with co-occurring mental health and chemical dependency problems if:
(i) the program meets the co-occurring requirements in Minnesota Rules, part 9530.6495;
(ii) 25 percent of the counseling staff are licensed mental health professionals, as defined in section 245.462, subdivision 18, clauses (1) to (6), or are students or licensing candidates under the supervision of a licensed alcohol and drug counselor supervisor and licensed mental health professional, except that no more than 50 percent of the mental health staff may be students or licensing candidates with time documented to be directly related to provisions of co-occurring services;
(iii) clients scoring positive on a standardized mental health screen receive a mental health diagnostic assessment within ten days of admission;
(iv) the program has standards for multidisciplinary case review that include a monthly review for each client that, at a minimum, includes a licensed mental health professional and licensed alcohol and drug counselor, and their involvement in the review is documented;
(v) family education is offered that addresses mental health and substance abuse disorders and the interaction between the two; and
(vi) co-occurring counseling staff will
shall receive eight hours of co-occurring disorder training annually.
(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program that provides arrangements for off-site child care must maintain current documentation at the chemical dependency facility of the child care provider's current licensure to provide child care services. Programs that provide child care according to paragraph (c), clause (1), must be deemed in compliance with the licensing requirements in Minnesota Rules, part 9530.6490.
(e) Adolescent residential programs that
meet the requirements of Minnesota Rules, parts 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt
from the requirements in paragraph (c), clause (4), items (i) to (iv).
(f) Subject to federal approval, chemical dependency services that are otherwise covered as direct face-to-face services may be provided via two-way interactive video. The use of two-way interactive video must be medically appropriate to the condition and needs of the person being served. Reimbursement shall be at the same rates and under the same conditions that would otherwise apply to direct face-to-face services. The interactive video equipment and connection must comply with Medicare standards in effect at the time the service is provided.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2014, section 254B.06, subdivision 2, is amended to read:
Subd. 2. Allocation of collections. (a) The commissioner shall allocate all federal financial participation collections to a special revenue account. The commissioner shall allocate 77.05 percent of patient payments and third-party payments to the special revenue account and 22.95 percent to the county financially responsible for the patient.
(b) For fiscal year 2017 only, the
commissioner's allocation to the special revenue account shall be increased
from 77.05 percent to 79.8 percent and the county financial responsibility
shall be reduced from 22.95 percent to 20.2 percent.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 9. Minnesota Statutes 2014, section 254B.06, is amended by adding a subdivision to read:
Subd. 4. Reimbursement
for institutions for mental diseases.
The commissioner shall not deny reimbursement to a program
designated as an institution for mental diseases under United States Code,
title 42, section 1396d, due to a reduction in federal financial participation
and the addition of new residential beds.
Sec. 10. [254B.15]
PILOT PROJECTS; TREATMENT FOR PREGNANT AND POSTPARTUM WOMEN WITH SUBSTANCE USE
DISORDER.
Subdivision 1. Pilot
projects established. (a)
Within the limits of federal funds available specifically for this purpose, the
commissioner of human services shall establish pilot projects to provide
substance use disorder treatment and services to pregnant and postpartum women
with a primary diagnosis of substance use disorder, including opioid use
disorder. Pilot projects funded under
this section must:
(1) promote flexible uses of funds to
provide treatment and services to pregnant and postpartum women with substance
use disorders;
(2) fund family-based treatment and
services for pregnant and postpartum women with substance use disorders;
(3) identify gaps in services along the
continuum of care that are provided to pregnant and postpartum women with
substance use disorders; and
(4) encourage new approaches to service
delivery and service delivery models.
(b) A pilot project funded under this
section must provide at least a portion of its treatment and services to women
who receive services on an outpatient basis.
Subd. 2. Federal
funds. The commissioner shall
apply for any available grant funds from the federal Center for Substance Abuse
Treatment for these pilot projects.
Sec. 11. Minnesota Statutes 2014, section 256B.0622, is amended by adding a subdivision to read:
Subd. 12. Start-up
grants. The commissioner may,
within available appropriations, disburse grant funding to counties, Indian
tribes, or mental health service providers to establish additional assertive
community treatment teams, intensive residential treatment services, or crisis
residential services.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 17
DIRECT CARE AND TREATMENT
Section 1. Minnesota Statutes 2014, section 246.50, subdivision 7, is amended to read:
Subd. 7. Client's
county. "Client's county"
means the county of the client's legal settlement for poor relief purposes
at the time of commitment or voluntary admission to a state facility, or if the
client has no such legal settlement in this state, it means the county of
commitment financial responsibility under chapter 256G, except that
where a client with no such legal settlement residence in this state
is committed while serving a sentence at a penal institution, it means the
county from which the client was sentenced.
Sec. 2. Minnesota Statutes 2014, section 246.54, as amended by Laws 2015, chapter 71, article 4, section 2, is amended to read:
246.54
LIABILITY OF COUNTY; REIMBURSEMENT.
Subdivision 1. County
portion for cost of care Generally.
(a) Except for chemical dependency services provided under
sections 254B.01 to 254B.09, the client's county shall pay to the state of
Minnesota a portion of the cost of care provided in a regional treatment center
or a state nursing facility to a client legally settled in that county.
A
county's payment shall be made from the county's own sources of revenue and
payments shall equal a percentage of the cost of care, as determined by the
commissioner, for each day, or the portion thereof, that the client spends at a
regional treatment center or a state nursing facility according to the
following schedule:.
Subd. 1a. Anoka-Metro
Regional Treatment Center. (a)
A county's payment of the cost of care provided at Anoka-Metro Regional
Treatment Center shall be according to the following schedule:
(1) zero percent for the first 30 days;
(2) 20 percent for days 31 and over if the stay is determined to be clinically appropriate for the client; and
(3) 100 percent for each day during the stay, including the day of admission, when the facility determines that it is clinically appropriate for the client to be discharged.
(b) If payments received by the state under sections 246.50 to 246.53 exceed 80 percent of the cost of care for days over 31 for clients who meet the criteria in paragraph (a), clause (2), the county shall be responsible for paying the state only the remaining amount. The county shall not be entitled to reimbursement from the client, the client's estate, or from the client's relatives, except as provided in section 246.53.
Subd. 1b. Community
behavioral health hospitals. A
county's payment of the cost of care provided at state‑operated
community-based behavioral health hospitals shall be according to the following
schedule:
(1) 100 percent for each day during the
stay, including the day of admission, when the facility determines that it is
clinically appropriate for the client to be discharged; and
(2) the county shall not be entitled to
reimbursement from the client, the client's estate, or from the client's
relatives, except as provided in section 246.53.
Subd. 1c. State-operated
forensic services. A county's
payment of the cost of care provided at state-operated forensic services shall
be according to the following schedule:
(1) Minnesota Security Hospital: ten percent for each day, or portion thereof,
that the client spends in a Minnesota Security Hospital program. If payments received by the state under
sections 246.50 to 246.53 for services provided at the Minnesota Security
Hospital exceed 90 percent of the cost of care, the county shall be responsible
for paying the state only the remaining amount.
The county shall not be entitled to reimbursement from the client, the
client's estate, or the client's relatives except as provided in section 246.53;
(2) forensic nursing home: ten percent for each day, or portion thereof,
that the client spends in a forensic nursing home program. If payments received by the state under
sections 246.50 to 246.53 for services provided at the forensic nursing home exceed
90 percent of the cost of care, the county shall be responsible for paying the
state only the remaining amount. The
county shall not be entitled to reimbursement from the client, the client's
estate, or the client's relatives except as provided in section 246.53;
(3) forensic transition services: 50 percent for each day, or portion thereof,
that the client spends in the forensic transition services program. If payments received by the state under
sections 246.50 to 246.53 for services provided in the forensic transition
services exceed 50 percent of the cost of care, the county shall be responsible
for paying the state only the remaining amount.
The county shall not be entitled to reimbursement from the client, the
client's estate, or the client's relatives except as provided in section
246.53; and
(4) residential competency restoration
program:
(i)
20 percent for each day, or portion thereof, that the client spends in a
residential competency restoration program while the client is in need of restoration
services;
(ii) 50 percent for each day, or
portion thereof, that the client spends in a residential competency restoration
program once the examiner determines that the client no longer needs
restoration services; and
(iii) 100 percent for each day, or
portion thereof, once charges against a client have been resolved or dropped.
Subd. 2. Exceptions. (a) Subdivision 1 does not apply to
services provided at the Minnesota Security Hospital. For services at the Minnesota Security
Hospital, a county's payment shall be made from the county's own sources of
revenue and payments. Excluding the
state-operated forensic transition service, payments to the state from the
county shall equal ten percent of the cost of care, as determined by the commissioner,
for each day, or the portion thereof, that the client spends at the facility. For the state-operated forensic transition
service, payments to the state from the county shall equal 50 percent of the
cost of care, as determined by the commissioner, for each day, or the portion
thereof, that the client spends in the program.
If payments received by the state under sections 246.50 to 246.53 for
services provided at the Minnesota Security Hospital, excluding the
state-operated forensic transition service, exceed 90 percent of the cost of
care, the county shall be responsible for paying the state only the remaining
amount. If payments received by the
state under sections 246.50 to 246.53 for the state-operated forensic
transition service exceed 50 percent of the cost of care, the county shall be
responsible for paying the state only the remaining amount. The county shall not be entitled to
reimbursement from the client, the client's estate, or from the client's
relatives, except as provided in section 246.53.
(b) Regardless of the facility to
which the client is committed, subdivision 1 does subdivisions 1, 1a,
1b, and 1c, do not apply to the following individuals:
(1) clients who are committed as sexual psychopathic personalities under section 253D.02, subdivision 15; and
(2) clients who are committed as sexually dangerous persons under section 253D.02, subdivision 16.
Sec. 3. Minnesota Statutes 2014, section 246B.01, subdivision 1b, is amended to read:
Subd. 1b. Civilly
committed sex offender's county. "Civilly
committed sex offender's county" means the county of the civilly
committed sex offender's legal settlement for poor relief purposes at the time
of commitment. If the civilly committed
sex offender has no legal settlement for poor relief in this state, it means
the county of commitment financial responsibility under chapter 256G,
except that when a civilly committed sex offender with no legal settlement
for poor relief residence in this state is committed while serving a
sentence at a penal institution, it means the county from which the civilly
committed sex offender was sentenced.
Sec. 4. Minnesota Statutes 2014, section 246B.035, is amended to read:
246B.035
ANNUAL PERFORMANCE REPORT REQUIRED.
The executive director of the Minnesota
sex offender program shall submit electronically a performance report to the
chairs and ranking minority members of the legislative committees and divisions
with jurisdiction over funding for the program by January February
15 of each year beginning in 2010 2017. The report must include the following:
(1) a description of the program, including the strategic mission, goals, objectives, and outcomes;
(2) the programwide per diem reported in a standard calculated method as outlined in the program policies and procedures;
(3) program annual statistics as outlined in the departmental policies and procedures; and
(4) the sex offender program evaluation report required under section 246B.03. The executive director shall submit a printed copy upon request.
Sec. 5. REPORT
ON ANOKA-METRO REGIONAL TREATMENT CENTER (AMRTC), MINNESOTA SECURITY HOSPITAL
(MSH), AND COMMUNITY BEHAVIORAL HEALTH HOSPITALS (CBHH).
The commissioner of human services
shall issue a public quarterly report to the chairs and ranking minority
leaders of the senate and house of representatives committees having
jurisdiction over health and human services issues on the AMRTC, MSH, and CBHH. The report shall contain information on the
number of licensed beds, budgeted capacity, occupancy rate, number of
Occupational Safety and Health Administration (OSHA) recordable injuries and
the number of OSHA recordable injuries due to patient aggression or restraint,
number of clinical positions budgeted, the percentage of those positions that
are filled, the number of direct care positions budgeted, and the percentage of
those positions that are filled.
ARTICLE 18
CONTINUING CARE
Section 1. Minnesota Statutes 2014, section 144A.073, subdivision 13, is amended to read:
Subd. 13. Moratorium exception funding. In fiscal year 2013, the commissioner of health may approve moratorium exception projects under this section for which the full annualized state share of medical assistance costs does not exceed $1,000,000 plus any carryover of previous appropriations for this purpose.
EFFECTIVE
DATE. This section is
effective retroactively from July 1, 2012.
Sec. 2. Minnesota Statutes 2014, section 144A.073, subdivision 14, is amended to read:
Subd. 14. Moratorium exception funding. In fiscal year 2015, the commissioner of health may approve moratorium exception projects under this section for which the full annualized state share of medical assistance costs does not exceed $1,000,000 plus any carryover of previous appropriations for this purpose.
EFFECTIVE
DATE. This section is
effective retroactively from July 1, 2014.
Sec. 3. Minnesota Statutes 2014, section 144A.073, is amended by adding a subdivision to read:
Subd. 15. Moratorium
exception funding. In fiscal
year 2017, the commissioner may approve moratorium exception projects under
this section for which the full annualized state share of medical assistance
costs does not exceed $1,000,000 plus any carryover of previous appropriations
for this purpose.
Sec. 4. Minnesota Statutes 2014, section 144A.611, subdivision 1, is amended to read:
Subdivision 1. Nursing
homes and certified boarding care homes.
The actual costs of tuition and textbooks and reasonable
expenses for the competency evaluation or the nursing assistant training
program and competency evaluation approved under section 144A.61, which are
paid to nursing assistants or adult training programs pursuant to subdivision
subdivisions 2 and 4, are a reimbursable expense for nursing
homes and certified boarding care homes under the provisions of chapter 256B
and the rules promulgated thereunder section 256B.431, subdivision 36.
EFFECTIVE
DATE. This section is
effective for costs incurred on or after October 1, 2016.
Sec. 5. Minnesota Statutes 2014, section 144A.611, subdivision 2, is amended to read:
Subd. 2.
Nursing assistants Reimbursement
for training program and competency evaluation costs. A nursing assistant who has completed an
approved competency evaluation or an approved training program and competency
evaluation shall be reimbursed by the nursing home or certified boarding care
home for actual costs of tuition and textbooks and reasonable expenses
for the competency evaluation or the training program and competency evaluation
90 days after the date of employment, or upon completion of the approved
training program, whichever is later.
EFFECTIVE
DATE. This section is
effective for costs incurred on or after October 1, 2016.
Sec. 6. Minnesota Statutes 2014, section 144A.611, is amended by adding a subdivision to read:
Subd. 4. Reimbursement
for adult basic education components.
(a) Nursing facilities and certified boarding care homes shall
provide reimbursement for costs related to additional adult basic education
components of an approved nursing assistant training program, to:
(1) an adult training program that
provided an approved nursing assistant training program to an employee of the
nursing facility or boarding care home; or
(2) a nursing assistant who is an employee
of the nursing facility or boarding care home and completed an approved nursing
assistant training program provided by an adult training program.
(b) For purposes of this subdivision,
adult basic education components of a nursing assistant training program must
include the following, if needed: training
in mathematics, vocabulary, literacy skills, workplace skills, resume writing,
and job interview skills. Reimbursement
provided under this subdivision shall not exceed 30 percent of the cost of
tuition, textbooks, and competency evaluation.
(c) An adult training program is
prohibited from billing program students, nursing facilities, or certified
boarding care homes for costs under this subdivision until the program student
has been employed by the nursing facility as a certified nursing assistant for
at least 90 days.
EFFECTIVE
DATE. This section is
effective for costs incurred on or after October 1, 2016.
Sec. 7. Minnesota Statutes 2014, section 245A.11, subdivision 2a, as amended by Laws 2016, chapter 163, article 3, section 5, if enacted, is amended to read:
Subd. 2a. Adult foster care and community residential setting license capacity. (a) The commissioner shall issue adult foster care and community residential setting licenses with a maximum licensed capacity of four beds, including nonstaff roomers and boarders, except that the commissioner may issue a license with a capacity of five beds, including roomers and boarders, according to paragraphs (b) to (f).
(b) The license holder may have a maximum license capacity of five if all persons in care are age 55 or over and do not have a serious and persistent mental illness or a developmental disability.
(c) The commissioner may grant variances to paragraph (b) to allow a facility with a licensed capacity of up to five persons to admit an individual under the age of 55 if the variance complies with section 245A.04, subdivision 9, and approval of the variance is recommended by the county in which the licensed facility is located.
(d) The commissioner may grant variances to paragraph (b) to allow the use of an additional bed, up to five, for emergency crisis services for a person with serious and persistent mental illness or a developmental disability, regardless of age, if the variance complies with section 245A.04, subdivision 9, and approval of the variance is recommended by the county in which the licensed facility is located.
(e) The commissioner may grant a variance to paragraph (b) to allow for the use of an additional bed, up to five, for respite services, as defined in section 245A.02, for persons with disabilities, regardless of age, if the variance complies with sections 245A.03, subdivision 7, and 245A.04, subdivision 9, and approval of the variance is recommended by the county in which the licensed facility is located. Respite care may be provided under the following conditions:
(1) staffing ratios cannot be reduced below the approved level for the individuals being served in the home on a permanent basis;
(2) no more than two different individuals can be accepted for respite services in any calendar month and the total respite days may not exceed 120 days per program in any calendar year;
(3) the person receiving respite services must have his or her own bedroom, which could be used for alternative purposes when not used as a respite bedroom, and cannot be the room of another person who lives in the facility; and
(4) individuals living in the facility must be notified when the variance is approved. The provider must give 60 days' notice in writing to the residents and their legal representatives prior to accepting the first respite placement. Notice must be given to residents at least two days prior to service initiation, or as soon as the license holder is able if they receive notice of the need for respite less than two days prior to initiation, each time a respite client will be served, unless the requirement for this notice is waived by the resident or legal guardian.
(f) The commissioner may issue an adult foster care or community residential setting license with a capacity of five adults if the fifth bed does not increase the overall statewide capacity of licensed adult foster care or community residential setting beds in homes that are not the primary residence of the license holder, as identified in a plan submitted to the commissioner by the county, when the capacity is recommended by the county licensing agency of the county in which the facility is located and if the recommendation verifies that:
(1) the facility meets the physical environment requirements in the adult foster care licensing rule;
(2) the five-bed living arrangement is specified for each resident in the resident's:
(i) individualized plan of care;
(ii) individual service plan under section 256B.092, subdivision 1b, if required; or
(iii) individual resident placement agreement under Minnesota Rules, part 9555.5105, subpart 19, if required;
(3) the license holder obtains written and signed informed consent from each resident or resident's legal representative documenting the resident's informed choice to remain living in the home and that the resident's refusal to consent would not have resulted in service termination; and
(4) the facility was licensed for adult foster care before March 1, 2011.
(g) The commissioner shall not issue a new
adult foster care license under paragraph (f) after June 30, 2019 2017. The commissioner shall allow a facility with
an adult foster care license issued under paragraph (f) before June 30, 2019
2017, to continue with a capacity of five adults if the license holder
continues to comply with the requirements in paragraph (f).
Sec. 8. Minnesota Statutes 2015 Supplement, section 256B.431, subdivision 36, is amended to read:
Subd. 36. Employee scholarship costs and training in English as a second language. (a) For the period between July 1, 2001, and June 30, 2003, the commissioner shall provide to each nursing facility reimbursed under this section, section 256B.434, or any other section, a scholarship per diem of 25 cents to the total operating payment rate. For the 27-month period beginning October 1, 2015, through December 31, 2017, the commissioner shall allow a scholarship per diem of up to 25 cents for each nursing facility with no scholarship per diem that is requesting a scholarship per diem to be added to the external fixed payment rate to be used:
(1) for employee scholarships that satisfy the following requirements:
(i) scholarships are available to all
employees who work an average of at least ten hours per week at the facility
except the administrator, and to reimburse student loan expenses for newly
hired and recently graduated registered nurses and licensed practical nurses,
and training expenses for nursing assistants as defined specified
in section 144A.611, subdivision subdivisions 2 and 4, who
are newly hired and have graduated within the last 12 months; and
(ii) the course of study is expected to lead to career advancement with the facility or in long-term care, including medical care interpreter services and social work; and
(2) to provide job-related training in English as a second language.
(b) All facilities may annually request a rate adjustment under this subdivision by submitting information to the commissioner on a schedule and in a form supplied by the commissioner. The commissioner shall allow a scholarship payment rate equal to the reported and allowable costs divided by resident days.
(c) In calculating the per diem under paragraph (b), the commissioner shall allow costs related to tuition, direct educational expenses, and reasonable costs as defined by the commissioner for child care costs and transportation expenses related to direct educational expenses.
(d) The rate increase under this subdivision is an optional rate add-on that the facility must request from the commissioner in a manner prescribed by the commissioner. The rate increase must be used for scholarships as specified in this subdivision.
(e) For instances in which a rate adjustment will be 15 cents or greater, nursing facilities that close beds during a rate year may request to have their scholarship adjustment under paragraph (b) recalculated by the commissioner for the remainder of the rate year to reflect the reduction in resident days compared to the cost report year.
EFFECTIVE
DATE. This section is
effective for costs incurred on or after October 1, 2016.
Sec. 9. REVISOR'S
INSTRUCTION.
(a) The revisor of statutes shall
codify Laws 2015, chapter 71, article 7, section 55, as Minnesota Statutes,
section 256B.0921.
(b) The revisor of statutes, in
consultation with the Department of Human Services, shall change the
cross-references in Minnesota Rules, chapters 2960, 9503, and 9525, resulting
from the repealer adopted in rules found at 40 State Register 179. The revisor may make technical and other
necessary changes to sentence structure to preserve the meaning of the text.
EFFECTIVE
DATE. Paragraph (b) is
effective the day following final enactment.
ARTICLE 19
HEALTH CARE
Section 1. Minnesota Statutes 2015 Supplement, section 16A.724, subdivision 2, is amended to read:
Subd. 2. Transfers. (a) Notwithstanding section 295.581, to
the extent available resources in the health care access fund exceed
expenditures in that fund, effective for the biennium beginning July 1, 2007,
the commissioner of management and budget shall transfer the excess funds from
the health care access fund to the general fund on June 30 of each year,
provided that the amount transferred in fiscal year 2016 shall not exceed
$48,000,000, the amount in fiscal year 2017 shall not exceed $122,000,000, and
the amount in any fiscal biennium thereafter shall not exceed $96,000,000
$244,000,000. The purpose of this
transfer is to meet the rate increase required under Laws 2003, First Special
Session chapter 14, article 13C, section 2, subdivision 6.
(b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and, if necessary, the commissioner shall reduce these transfers from the health care access fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary, transfer sufficient funds from the general fund to the health care access fund to meet annual MinnesotaCare expenditures.
Sec. 2. Minnesota Statutes 2014, section 62V.05, is amended by adding a subdivision to read:
Subd. 12. Reports
on interagency agreements and intra-agency transfers. The MNsure Board shall provide
quarterly reports to the chairs and ranking minority members of the legislative
committees with jurisdiction over health and human services policy and finance
on:
(1) interagency agreements or
service-level agreements and any renewals or extensions of existing interagency
or service-level agreements with a state department under section 15.01, state
agency under section 15.012, or the Office of MN.IT Services, with a value of
more than $100,000, or related agreements with the same department or agency
with a cumulative value of more than $100,000; and
(2) transfers of appropriations of more
than $100,000 between accounts within or between agencies.
The report must include the statutory citation authorizing
the agreement, transfer or dollar amount, purpose, and effective date of the
agreement, the duration of the agreement, and a copy of the agreement.
Sec. 3. Minnesota Statutes 2014, section 256.01, is amended by adding a subdivision to read:
Subd. 41. Reports
on interagency agreements and intra-agency transfers. The commissioner of human services
shall provide quarterly reports to the chairs and ranking minority members of
the legislative committees with jurisdiction over health and human services
policy and finance on:
(1) interagency agreements or
service-level agreements and any renewals or extensions of existing interagency
or service-level agreements with a state department under section 15.01, state
agency under section 15.012, or the Office of MN.IT Services, with a value of
more than $100,000, or related agreements with the same department or agency
with a cumulative value of more than $100,000; and
(2) transfers of appropriations of more
than $100,000 between accounts within or between agencies.
The report must include the statutory citation authorizing
the agreement, transfer or dollar amount, purpose, and effective date of the
agreement, the duration of the agreement, and a copy of the agreement.
Sec. 4. Minnesota Statutes 2014, section 256B.059, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section and sections 256B.058 and 256B.0595, the terms defined in this subdivision have the meanings given them.
(b) "Community spouse" means the spouse of an institutionalized spouse.
(c) "Spousal share" means
one-half of the total value of all assets, to the extent that either the
institutionalized spouse or the community spouse had an ownership interest at
the time of the first continuous period of institutionalization.
(d) (c) "Assets otherwise
available to the community spouse" means assets individually or jointly
owned by the community spouse, other than assets excluded by subdivision 5,
paragraph (c).
(e) (d) "Community spouse
asset allowance" is the value of assets that can be transferred under
subdivision 3.
(f) (e) "Institutionalized
spouse" means a person who is:
(1) in a hospital, nursing facility, or intermediate care facility for persons with developmental disabilities, or receiving home and community-based services under section 256B.0915, and is expected to remain in the facility or institution or receive the home and community-based services for at least 30 consecutive days; and
(2) married to a person who is not in a hospital, nursing facility, or intermediate care facility for persons with developmental disabilities, and is not receiving home and community-based services under section 256B.0915, 256B.092, or 256B.49.
(g) (f) "For the sole
benefit of" means no other individual or entity can benefit in any way
from the assets or income at the time of a transfer or at any time in the
future.
(h) (g) "Continuous
period of institutionalization" means a 30-consecutive-day period of time
in which a person is expected to stay in a medical or long-term care facility,
or receive home and community-based services that would qualify for coverage
under the elderly waiver (EW) or alternative care (AC) programs. For a stay in a facility, the
30-consecutive-day period begins on the date of entry into a medical or
long-term care facility. For receipt of
home and community-based services, the
30-consecutive-day period begins on the date that the following conditions are
met:
(1) the person is receiving services that meet the nursing facility level of care determined by a long-term care consultation;
(2) the person has received the long-term care consultation within the past 60 days;
(3) the services are paid by the EW program under section 256B.0915 or the AC program under section 256B.0913 or would qualify for payment under the EW or AC programs if the person were otherwise eligible for either program, and but for the receipt of such services the person would have resided in a nursing facility; and
(4) the services are provided by a licensed provider qualified to provide home and community-based services.
EFFECTIVE
DATE. This section is
effective June 1, 2016.
Sec. 5. Minnesota Statutes 2014, section 256B.059, subdivision 2, is amended to read:
Subd. 2. Assessment
of spousal share marital assets.
At the beginning of the first continuous period of
institutionalization of a person beginning on or after October 1, 1989, at the
request of either the institutionalized spouse or the community spouse, or
Upon application for medical assistance benefits for an institutionalized
spouse, the total value of assets in which either the institutionalized
spouse or the community spouse had has an interest at the time
of the first period of institutionalization of 30 days or more shall be
assessed and documented and the spousal share shall be assessed and
documented the community spouse asset allowance shall be calculated as
required in subdivision 3.
EFFECTIVE
DATE. This section is
effective June 1, 2016.
Sec. 6. Minnesota Statutes 2014, section 256B.059, subdivision 3, is amended to read:
Subd. 3. Community
spouse asset allowance. An institutionalized
spouse may transfer assets to the community spouse for the sole benefit of the
community spouse. Except for increased
amounts allowable under subdivision 4, the maximum amount of assets allowed to
be transferred is the amount which, when added to the assets otherwise
available to the community spouse, is as follows the greater of:
(1) prior to July 1, 1994, the greater
of:
(i) $14,148;
(ii) the lesser of the spousal share or
$70,740; or
(iii) the amount required by court order
to be paid to the community spouse; and
(2) for persons whose date of initial
determination of eligibility for medical assistance following their first
continuous period of institutionalization occurs on or after July 1, 1994, the
greater of:
(i) $20,000;
(ii) the lesser of the spousal share or
$70,740; or
(iii) the amount required by court order
to be paid to the community spouse.
(1) $119,220 subject to an annual
adjustment on January 1, 2017, and every January 1 thereafter, equal to the
percentage increase in the Consumer Price Index for All Urban Consumers (all
items; United States city average) between the two previous Septembers; or
(2) the amount required by court order
to be paid to the community spouse.
If the assets available to the community
spouse are already at the limit permissible under this section, or the higher
limit attributable to increases under subdivision 4, no assets may be
transferred from the institutionalized spouse to the community spouse. The transfer must be made as soon as practicable
after the date the institutionalized spouse is determined eligible for medical
assistance, or within the amount of time needed for any court order required
for the transfer. On January 1, 1994,
and every January 1 thereafter, the limits in this subdivision shall be
adjusted by the same percentage change in the Consumer Price Index for All
Urban Consumers (all items; United States city average) between the two
previous Septembers. These adjustments
shall also be applied to the limits in subdivision 5.
EFFECTIVE
DATE. This section is
effective June 1, 2016.
Sec. 7. Minnesota Statutes 2015 Supplement, section 256B.059, subdivision 5, is amended to read:
Subd. 5. Asset
availability. (a) At the time of
initial determination of eligibility for medical assistance benefits following
the first continuous period of institutionalization on or after October 1, 1989
for an institutionalized spouse, assets considered available to the
institutionalized spouse shall be the total value of all assets in which either
spouse has an ownership interest, reduced by the following amount for
the community spouse: available
to the community spouse under subdivision 3.
(1) prior to July 1, 1994, the greater
of:
(i) $14,148;
(ii) the lesser of the spousal share or
$70,740; or
(iii) the amount required by court
order to be paid to the community spouse;
(2) for persons whose date of initial
determination of eligibility for medical assistance following their first
continuous period of institutionalization occurs on or after July 1, 1994, the
greater of:
(i) $20,000;
(ii) the lesser of the spousal share or
$70,740; or
(iii) the amount required by court
order to be paid to the community spouse.
The value of assets transferred for the sole benefit of the community spouse under section 256B.0595, subdivision 4, in combination with other assets available to the community spouse under this section, cannot exceed the limit for the community spouse asset allowance determined under subdivision 3 or 4. Assets that exceed this allowance shall be considered available to the institutionalized spouse. If the community spouse asset allowance has been increased under subdivision 4, then the assets considered available to the institutionalized spouse under this subdivision shall be further reduced by the value of additional amounts allowed under subdivision 4.
(b) An institutionalized spouse may be found eligible for medical assistance even though assets in excess of the allowable amount are found to be available under paragraph (a) if the assets are owned jointly or individually by the community spouse, and the institutionalized spouse cannot use those assets to pay for the cost of care without the consent of the community spouse, and if:
(i) the institutionalized spouse assigns to the commissioner the right to support from the community spouse under section 256B.14, subdivision 3;
(ii) the institutionalized spouse lacks
the ability to execute an assignment due to a physical or mental impairment; or
(iii) the denial of eligibility would
cause an imminent threat to the institutionalized spouse's health and well‑being.;
or
(iv) the assets in excess of the amount
under paragraph (a) are assets owned by the community spouse, and the denial of
eligibility would cause an undue hardship to the family due to the loss of
retirement funds for the community spouse or funds protected for the
postsecondary education of a child under 25 years of age. For purposes of this clause, only retirement
assets held by the community spouse in a tax-deferred retirement account,
including a defined benefit plan, defined contribution plan, an
employer-sponsored individual retirement
arrangement,
or individually purchased individual retirement arrangement are protected, and
are only protected until the community spouse is eligible to withdraw
retirement funds from any or all accounts without penalty. For purposes of this clause, only funds in a
plan designated under section 529 of the Internal Revenue Code on behalf of a
child of either or both spouses who is under 25 years of age are protected. There shall not be an assignment of spousal
support to the commissioner or a cause of action against the individual's
spouse under section 256B.14, subdivision 3, for the funds in the protected
retirement and college savings accounts.
(c) After the month in which the
institutionalized spouse is determined eligible for medical assistance, and
during the continuous period of institutionalization enrollment,
no assets of the community spouse are considered available to the institutionalized spouse, unless the institutionalized
spouse has been found eligible under paragraph (b).
(d) Assets determined to be available to the institutionalized spouse under this section must be used for the health care or personal needs of the institutionalized spouse.
(e) For purposes of this section, assets do not include assets excluded under the Supplemental Security Income program.
EFFECTIVE
DATE. This section is
effective June 1, 2016. The commissioner
shall cease implementation of the amendment to paragraph (b), clause (iv), if
the federal government denies the state plan amendment. The commissioner shall inform the revisor of
statutes once federal approval is obtained or denied.
Sec. 8. Minnesota Statutes 2014, section 256B.059, is amended by adding a subdivision to read:
Subd. 6. Temporary
application. (a) During the
period in which rules against spousal impoverishment are temporarily applied
according to section 2404 of the Patient Protection Affordable Care Act, Public
Law 111-148, as amended by the Health Care and Education Reconciliation Act of
2010, Public Law 111-152, this section applies to an institutionalized spouse:
(1) applying for home and
community-based waivers under sections 256B.092, 256B.093, and 256B.49 on or
after June 1, 2016;
(2) enrolled in home and
community-based waivers under sections 256B.092, 256B.093, and 256B.49 before
June 1, 2016; or
(3) applying for services under section
256B.85 upon the effective date of that section.
(b) During the applicable period of
paragraph (a), the definition of "institutionalized spouse" in
subdivision 1, paragraph (f), also includes an institutionalized spouse
referenced in paragraph (a).
EFFECTIVE
DATE. (a) Minnesota Statutes,
section 256B.059, subdivision 6, paragraphs (a), clauses (1) and (3), and (b),
are effective June 1, 2016. Minnesota
Statutes, section 256B.059, subdivision 6, paragraph (a), clause (2), is
effective March 1, 2017.
(b) Minnesota Statutes, section 256B.059,
subdivision 6, paragraph (a), clauses (1) and (2), expire upon notification to
the commissioner of human services that the Center for Medicare and Medicaid
Services approved the continuation of the deeming rules in effect on May 31,
2016, for the treatment of the assets of a community spouse. The commissioner of human services shall
notify the revisor of statutes when notice is received.
Sec. 9. Minnesota Statutes 2014, section 256B.06, subdivision 4, is amended to read:
Subd. 4. Citizenship requirements. (a) Eligibility for medical assistance is limited to citizens of the United States, qualified noncitizens as defined in this subdivision, and other persons residing lawfully in the United States. Citizens or nationals of the United States must cooperate in obtaining satisfactory documentary evidence of citizenship or nationality according to the requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171.
(b) "Qualified noncitizen" means a person who meets one of the following immigration criteria:
(1) admitted for lawful permanent residence according to United States Code, title 8;
(2) admitted to the United States as a refugee according to United States Code, title 8, section 1157;
(3) granted asylum according to United States Code, title 8, section 1158;
(4) granted withholding of deportation according to United States Code, title 8, section 1253(h);
(5) paroled for a period of at least one year according to United States Code, title 8, section 1182(d)(5);
(6) granted conditional entrant status according to United States Code, title 8, section 1153(a)(7);
(7) determined to be a battered noncitizen by the United States Attorney General according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
(8) is a child of a noncitizen determined to be a battered noncitizen by the United States Attorney General according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill, Public Law 104-200; or
(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public Law 96-422, the Refugee Education Assistance Act of 1980.
(c) All qualified noncitizens who were residing in the United States before August 22, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for medical assistance with federal financial participation.
(d) Beginning December 1, 1996, qualified noncitizens who entered the United States on or after August 22, 1996, and who otherwise meet the eligibility requirements of this chapter are eligible for medical assistance with federal participation for five years if they meet one of the following criteria:
(1) refugees admitted to the United States according to United States Code, title 8, section 1157;
(2) persons granted asylum according to United States Code, title 8, section 1158;
(3) persons granted withholding of deportation according to United States Code, title 8, section 1253(h);
(4) veterans of the United States armed forces with an honorable discharge for a reason other than noncitizen status, their spouses and unmarried minor dependent children; or
(5) persons on active duty in the United States armed forces, other than for training, their spouses and unmarried minor dependent children.
Beginning July 1, 2010, children and pregnant women who are noncitizens described in paragraph (b) or who are lawfully present in the United States as defined in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet eligibility requirements of this chapter, are eligible for medical assistance with federal financial participation as provided by the federal Children's Health Insurance Program Reauthorization Act of 2009, Public Law 111-3.
(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter are eligible for the benefits as provided in paragraphs (f) to (h). For purposes of this subdivision, a "nonimmigrant" is a person in one of the classes listed in United States Code, title 8, section 1101(a)(15).
(f) Payment shall also be made for care and services that are furnished to noncitizens, regardless of immigration status, who otherwise meet the eligibility requirements of this chapter, if such care and services are necessary for the treatment of an emergency medical condition.
(g) For purposes of this subdivision, the term "emergency medical condition" means a medical condition that meets the requirements of United States Code, title 42, section 1396b(v).
(h)(1) Notwithstanding paragraph (g), services that are necessary for the treatment of an emergency medical condition are limited to the following:
(i) services delivered in an emergency room or by an ambulance service licensed under chapter 144E that are directly related to the treatment of an emergency medical condition;
(ii) services delivered in an inpatient hospital setting following admission from an emergency room or clinic for an acute emergency condition; and
(iii) follow-up services that are directly related to the original service provided to treat the emergency medical condition and are covered by the global payment made to the provider.
(2) Services for the treatment of emergency medical conditions do not include:
(i) services delivered in an emergency room or inpatient setting to treat a nonemergency condition;
(ii) organ transplants, stem cell transplants, and related care;
(iii) services for routine prenatal care;
(iv) continuing care, including long-term care, nursing facility services, home health care, adult day care, day training, or supportive living services;
(v) elective surgery;
(vi) outpatient prescription drugs, unless the drugs are administered or dispensed as part of an emergency room visit;
(vii) preventative health care and family planning services;
(viii) rehabilitation services;
(ix) physical, occupational, or speech therapy;
(x) transportation services;
(xi) case management;
(xii) prosthetics, orthotics, durable medical equipment, or medical supplies;
(xiii) dental services;
(xiv) hospice care;
(xv) audiology services and hearing aids;
(xvi) podiatry services;
(xvii) chiropractic services;
(xviii) immunizations;
(xix) vision services and eyeglasses;
(xx) waiver services;
(xxi) individualized education programs; or
(xxii) chemical dependency treatment.
(i) Pregnant noncitizens who are ineligible for federally funded medical assistance because of immigration status, are not covered by a group health plan or health insurance coverage according to Code of Federal Regulations, title 42, section 457.310, and who otherwise meet the eligibility requirements of this chapter, are eligible for medical assistance through the period of pregnancy, including labor and delivery, and 60 days postpartum, to the extent federal funds are available under title XXI of the Social Security Act, and the state children's health insurance program.
(j) Beginning October 1, 2003, persons who are receiving care and rehabilitation services from a nonprofit center established to serve victims of torture and are otherwise ineligible for medical assistance under this chapter are eligible for medical assistance without federal financial participation. These individuals are eligible only for the period during which they are receiving services from the center. Individuals eligible under this paragraph shall not be required to participate in prepaid medical assistance. The nonprofit center referenced under this paragraph may establish itself as a provider of mental health targeted case management services through a county contract under section 256.0112, subdivision 6. If the nonprofit center is unable to secure a contract with a lead county in its service area, then, notwithstanding the requirements of section 256B.0625, subdivision 20, the commissioner may negotiate a contract with the nonprofit center for provision of mental health targeted case management services. When serving clients who are not the financial responsibility of their contracted lead county, the nonprofit center must gain the concurrence of the county of financial responsibility prior to providing mental health targeted case management services for those clients.
(k) Notwithstanding paragraph (h), clause (2), the following services are covered as emergency medical conditions under paragraph (f) except where coverage is prohibited under federal law for services under clauses (1) and (2):
(1) dialysis services provided in a
hospital or freestanding dialysis facility; and
(2)
surgery and the administration of chemotherapy, radiation, and related services
necessary to treat cancer if the recipient has a cancer diagnosis that is not
in remission and requires surgery, chemotherapy, or radiation treatment; and
(3) kidney transplant if the person has been diagnosed with end stage renal disease, is currently receiving dialysis services, and is a potential candidate for a kidney transplant.
(l) Effective July 1, 2013, recipients of emergency medical assistance under this subdivision are eligible for coverage of the elderly waiver services provided under section 256B.0915, and coverage of rehabilitative services provided in a nursing facility. The age limit for elderly waiver services does not apply. In order to qualify for coverage, a recipient of emergency medical assistance is subject to the assessment and reassessment requirements of section 256B.0911. Initial and continued enrollment under this paragraph is subject to the limits of available funding.
Sec. 10. Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 17a, is amended to read:
Subd. 17a. Payment for ambulance services. (a) Medical assistance covers ambulance services. Providers shall bill ambulance services according to Medicare criteria. Nonemergency ambulance services shall not be paid as emergencies. Effective for services rendered on or after July 1, 2001, medical assistance payments for ambulance services shall be paid at the Medicare reimbursement rate or at the medical assistance payment rate in effect on July 1, 2000, whichever is greater.
(b) Effective for services provided on or after July 1, 2016, medical assistance payment rates for ambulance services identified in this paragraph are increased by five percent. Capitation payments made to managed care plans and county-based purchasing plans for ambulance services provided on or after January 1, 2017, shall be increased to reflect this rate increase. The increased rate described in this paragraph applies to ambulance service providers whose base of operations as defined in section 144E.10 is located:
(1) outside the metropolitan counties
listed in section 473.121, subdivision 4, and outside the cities of Duluth,
Mankato, Moorhead, St. Cloud, and Rochester; or
(2) within a municipality with a
population of less than 1,000.
Sec. 11. Minnesota Statutes 2014, section 256B.0625, subdivision 30, is amended to read:
Subd. 30. Other clinic services. (a) Medical assistance covers rural health clinic services, federally qualified health center services, nonprofit community health clinic services, and public health clinic services. Rural health clinic services and federally qualified health center services mean services defined in United States Code, title 42, section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified health center services shall be made according to applicable federal law and regulation.
(b) A federally qualified health center that is beginning initial operation shall submit an estimate of budgeted costs and visits for the initial reporting period in the form and detail required by the commissioner. A federally qualified health center that is already in operation shall submit an initial report using actual costs and visits for the initial reporting period. Within 90 days of the end of its reporting period, a federally qualified health center shall submit, in the form and detail required by the commissioner, a report of its operations, including allowable costs actually incurred for the period and the actual number of visits for services furnished during the period, and other information required by the commissioner. Federally qualified health centers that file Medicare cost reports shall provide the commissioner with a copy of the most recent Medicare cost report filed with the Medicare program intermediary for the reporting year which support the costs claimed on their cost report to the state.
(c) In order to continue cost-based payment under the medical assistance program according to paragraphs (a) and (b), a federally qualified health center or rural health clinic must apply for designation as an essential community provider within six months of final adoption of rules by the Department of Health according to section 62Q.19, subdivision 7. For those federally qualified health centers and rural health clinics that have applied for essential community provider status within the six-month time prescribed, medical assistance payments will continue to be made according to paragraphs (a) and (b) for the first three years after application. For federally qualified health centers and rural health clinics that either do not apply within the time specified above or who have had essential community provider status for three years, medical assistance payments for health services provided by these entities shall be according to the same rates and conditions applicable to the same service provided by health care providers that are not federally qualified health centers or rural health clinics.
(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally qualified health center or a rural health clinic to make application for an essential community provider designation in order to have cost-based payments made according to paragraphs (a) and (b) no longer apply.
(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
(f) Effective January 1, 2001, each federally qualified health center and rural health clinic may elect to be paid either under the prospective payment system established in United States Code, title 42, section 1396a(aa), or under an alternative payment methodology consistent with the requirements of United States Code, title 42, section 1396a(aa), and approved by the Centers for Medicare and Medicaid Services. The alternative payment methodology shall be 100 percent of cost as determined according to Medicare cost principles.
(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
(1) has nonprofit status as specified in chapter 317A;
(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
(3) is established to provide health services to low-income population groups, uninsured, high-risk and special needs populations, underserved and other special needs populations;
(4) employs professional staff at least one-half of which are familiar with the cultural background of their clients;
(5) charges for services on a sliding fee scale designed to provide assistance to low-income clients based on current poverty income guidelines and family size; and
(6) does not restrict access or services because of a client's financial limitations or public assistance status and provides no-cost care as needed.
(h) Effective for services provided on or after January 1, 2015, all claims for payment of clinic services provided by federally qualified health centers and rural health clinics shall be paid by the commissioner. The commissioner shall determine the most feasible method for paying claims from the following options:
(1) federally qualified health centers and rural health clinics submit claims directly to the commissioner for payment, and the commissioner provides claims information for recipients enrolled in a managed care or county-based purchasing plan to the plan, on a regular basis; or
(2) federally qualified health centers and rural health clinics submit claims for recipients enrolled in a managed care or county-based purchasing plan to the plan, and those claims are submitted by the plan to the commissioner for payment to the clinic.
(i) For clinic services provided prior to January 1, 2015, the commissioner shall calculate and pay monthly the proposed managed care supplemental payments to clinics, and clinics shall conduct a timely review of the payment calculation data in order to finalize all supplemental payments in accordance with federal law. Any issues arising from a clinic's review must be reported to the commissioner by January 1, 2017. Upon final agreement between the commissioner and a clinic on issues identified under this subdivision, and in accordance with United States Code, title 42, section 1396a(bb), no supplemental payments for managed care plan or county-based purchasing plan claims for services provided prior to January 1, 2015, shall be made after June 30, 2017. If the commissioner and clinics are unable to resolve issues under this subdivision, the parties shall submit the dispute to the arbitration process under section 14.57.
(j) The commissioner shall seek a
federal waiver, authorized under section 1115 of the Social Security Act, to
obtain federal financial participation at the 100 percent federal matching
percentage available to facilities of the Indian Health Service or tribal
organization in accordance with section 1905(b) of the Social Security Act for
expenditures made to organizations dually certified under Title V of the Indian
Health Care Improvement Act, Public Law 94-437, and as a federally qualified
health center under paragraph (a) that provides services to American Indian and
Alaskan Native individuals eligible for services under this subdivision.
Sec. 12. Minnesota Statutes 2014, section 256B.0625, subdivision 34, is amended to read:
Subd. 34. Indian
health services facilities. (a)
Medical assistance payments and MinnesotaCare payments to facilities of the
Indian health service and facilities operated by a tribe or tribal organization
under funding authorized by United States Code, title 25, sections 450f to
450n, or title III of the Indian Self-Determination and Education Assistance
Act, Public Law 93-638, for enrollees who are eligible for federal financial
participation, shall be at the option of the facility in accordance with the
rate published by the United States Assistant Secretary for Health under the
authority of United States Code, title 42, sections 248(a) and 249(b). General assistance medical care payments
to facilities of the Indian health services and facilities operated by a tribe
or tribal organization for the provision of outpatient medical care services
billed after June 30, 1990, must be in accordance with the general assistance
medical care rates paid for the same services when provided in a facility other
than a facility of the Indian health service or a facility operated by a tribe
or tribal organization.
MinnesotaCare payments for enrollees who are not eligible for federal
financial participation at facilities of the Indian health service and
facilities operated by a tribe or tribal organization for the provision of
outpatient medical services must be in accordance with the medical assistance
rates paid for the same services when provided in a facility other than a
facility of the Indian health service or a facility operated by a tribe or
tribal organization.
(b) Effective upon federal approval,
the medical assistance payments to a dually certified facility as defined in
subdivision 30, paragraph (j), shall be the encounter rate described in
paragraph (a) or a rate that is substantially equivalent for services provided
to American Indians and Alaskan Native populations. The rate established under this paragraph for
dually certified facilities shall not apply to MinnesotaCare payments.
Sec. 13. Minnesota Statutes 2014, section 256B.0625, is amended by adding a subdivision to read:
Subd. 60a. Community
emergency medical technician services.
(a) Medical assistance covers services provided by a community
emergency medical technician (CEMT) who is certified under section 144E.275,
subdivision 7, when the services are provided in accordance with this
subdivision.
(b) A CEMT may provide a posthospital
discharge visit when ordered by a treating physician. The posthospital discharge visit includes:
(1)
verbal or visual reminders of discharge orders;
(2) recording and reporting of vital
signs to the patient's primary care provider;
(3) medication access confirmation;
(4) food access confirmation; and
(5) identification of home hazards.
(c) An individual who has repeat
ambulance calls due to falls, has been discharged from a nursing home, or has
been identified by the individual's primary care provider as at risk for
nursing home placement, may receive a safety evaluation visit from a CEMT when
ordered by a primary care provider in accordance with the individual's care
plan. A safety evaluation visit
includes:
(1) medication access confirmation;
(2) food access confirmation; and
(3) identification of home hazards.
(d) A CEMT shall be paid at $9.75 per
15-minute increment. A safety evaluation
visit may not be billed for the same day as a posthospital discharge visit for
the same individual.
EFFECTIVE
DATE. This section is
effective January 1, 2017, or upon federal approval, whichever is later. The commissioner of human services shall
notify the revisor of statutes when federal approval is obtained.
Sec. 14. Minnesota Statutes 2014, section 256B.15, subdivision 1, is amended to read:
Subdivision 1. Policy
and applicability. (a) It is the
policy of this state that individuals or couples, either or both of whom
participate in the medical assistance program, use their own assets to pay
their share of the total cost of their care during or after their
enrollment in the program according to applicable federal law and the laws of
this state. The following provisions
apply:
(1) subdivisions 1c to 1k shall not apply to claims arising under this section which are presented under section 525.313;
(2) the provisions of subdivisions 1c to 1k expanding the interests included in an estate for purposes of recovery under this section give effect to the provisions of United States Code, title 42, section 1396p, governing recoveries, but do not give rise to any express or implied liens in favor of any other parties not named in these provisions;
(3) the continuation of a recipient's life estate or joint tenancy interest in real property after the recipient's death for the purpose of recovering medical assistance under this section modifies common law principles holding that these interests terminate on the death of the holder;
(4) all laws, rules, and regulations governing or involved with a recovery of medical assistance shall be liberally construed to accomplish their intended purposes;
(5) a deceased recipient's life estate and joint tenancy interests continued under this section shall be owned by the remainderpersons or surviving joint tenants as their interests may appear on the date of the recipient's death. They shall not be merged into the remainder interest or the interests of the surviving joint tenants by reason of ownership.
They shall be subject to the provisions of this section. Any conveyance, transfer, sale, assignment, or encumbrance by a remainderperson, a surviving joint tenant, or their heirs, successors, and assigns shall be deemed to include all of their interest in the deceased recipient's life estate or joint tenancy interest continued under this section; and
(6) the provisions of subdivisions 1c to 1k continuing a recipient's joint tenancy interests in real property after the recipient's death do not apply to a homestead owned of record, on the date the recipient dies, by the recipient and the recipient's spouse as joint tenants with a right of survivorship. Homestead means the real property occupied by the surviving joint tenant spouse as their sole residence on the date the recipient dies and classified and taxed to the recipient and surviving joint tenant spouse as homestead property for property tax purposes in the calendar year in which the recipient dies. For purposes of this exemption, real property the recipient and their surviving joint tenant spouse purchase solely with the proceeds from the sale of their prior homestead, own of record as joint tenants, and qualify as homestead property under section 273.124 in the calendar year in which the recipient dies and prior to the recipient's death shall be deemed to be real property classified and taxed to the recipient and their surviving joint tenant spouse as homestead property in the calendar year in which the recipient dies. The surviving spouse, or any person with personal knowledge of the facts, may provide an affidavit describing the homestead property affected by this clause and stating facts showing compliance with this clause. The affidavit shall be prima facie evidence of the facts it states.
(b) For purposes of this section, "medical assistance" includes the medical assistance program under this chapter and the general assistance medical care program under chapter 256D and alternative care for nonmedical assistance recipients under section 256B.0913.
(c) For purposes of this section, beginning January 1, 2010, "medical assistance" does not include Medicare cost-sharing benefits in accordance with United States Code, title 42, section 1396p.
(d) All provisions in this subdivision, and subdivisions 1d, 1f, 1g, 1h, 1i, and 1j, related to the continuation of a recipient's life estate or joint tenancy interests in real property after the recipient's death for the purpose of recovering medical assistance, are effective only for life estates and joint tenancy interests established on or after August 1, 2003. For purposes of this paragraph, medical assistance does not include alternative care.
Sec. 15. Minnesota Statutes 2014, section 256B.15, subdivision 1a, is amended to read:
Subd. 1a. Estates
subject to claims. (a) If a person
receives any medical assistance hereunder, on the person's death, if single,
or on the death of the survivor of a married couple, either or both of whom
received medical assistance, or as otherwise provided for in this section, the total
amount paid for medical assistance rendered as limited under
subdivision 2 for the person and spouse shall be filed as a claim against
the estate of the person or the estate of the surviving spouse in the court
having jurisdiction to probate the estate or to issue a decree of descent
according to sections 525.31 to 525.313.
(b) For the purposes of this section, the person's estate must consist of:
(1) the person's probate estate;
(2) all of the person's interests or proceeds of those interests in real property the person owned as a life tenant or as a joint tenant with a right of survivorship at the time of the person's death;
(3) all of the person's interests or proceeds of those interests in securities the person owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time of the person's death, to the extent the interests or proceeds of those interests become part of the probate estate under section 524.6-307;
(4) all of the person's interests in joint accounts, multiple-party accounts, and pay-on-death accounts, brokerage accounts, investment accounts, or the proceeds of those accounts, as provided under sections 524.6-201 to 524.6-214 at the time of the person's death to the extent the interests become part of the probate estate under section 524.6-207; and
(5) assets conveyed to a survivor, heir, or assign of the person through survivorship, living trust, or other arrangements.
(c) For the purpose of this section and recovery in a surviving spouse's estate for medical assistance paid for a predeceased spouse, the estate must consist of all of the legal title and interests the deceased individual's predeceased spouse had in jointly owned or marital property at the time of the spouse's death, as defined in subdivision 2b, and the proceeds of those interests, that passed to the deceased individual or another individual, a survivor, an heir, or an assign of the predeceased spouse through a joint tenancy, tenancy in common, survivorship, life estate, living trust, or other arrangement. A deceased recipient who, at death, owned the property jointly with the surviving spouse shall have an interest in the entire property.
(d) For the purpose of recovery in a single person's estate or the estate of a survivor of a married couple, "other arrangement" includes any other means by which title to all or any part of the jointly owned or marital property or interest passed from the predeceased spouse to another including, but not limited to, transfers between spouses which are permitted, prohibited, or penalized for purposes of medical assistance.
(e) A claim shall be filed if medical assistance was rendered for either or both persons under one of the following circumstances:
(1) the person was over 55 years of age, and received services under this chapter prior to January 1, 2014;
(2) the person resided in a medical institution
for six months or longer, received services under this chapter, and, at the
time of institutionalization or application for medical assistance, whichever
is later, the person could not have reasonably been expected to be discharged
and returned home, as certified in writing by the person's treating physician. For purposes of this section only, a
"medical institution" means a skilled nursing facility, intermediate
care facility, intermediate care facility for persons with developmental
disabilities, nursing facility, or inpatient hospital; or
(3) the person received general assistance
medical care services under chapter 256D.; or
(4) the person was 55 years of age or
older and received medical assistance services on or after January 1, 2014,
that consisted of nursing facility services, home and community-based services,
or related hospital and prescription drug benefits.
(f) The claim shall be considered an expense of the last illness of the decedent for the purpose of section 524.3‑805. Notwithstanding any law or rule to the contrary, a state or county agency with a claim under this section must be a creditor under section 524.6-307. Any statute of limitations that purports to limit any county agency or the state agency, or both, to recover for medical assistance granted hereunder shall not apply to any claim made hereunder for reimbursement for any medical assistance granted hereunder. Notice of the claim shall be given to all heirs and devisees of the decedent, and to other persons with an ownership interest in the real property owned by the decedent at the time of the decedent's death, whose identity can be ascertained with reasonable diligence. The notice must include procedures and instructions for making an application for a hardship waiver under subdivision 5; time frames for submitting an application and determination; and information regarding appeal rights and procedures. Counties are entitled to one-half of the nonfederal share of medical assistance collections from estates that are directly attributable to county effort. Counties are entitled to ten percent of the collections for alternative care directly attributable to county effort.
EFFECTIVE
DATE. This section is
effective upon federal approval and applies retroactively to services rendered
on or after January 1, 2014, and to claims not paid prior to July 1, 2016. The commissioner of human services shall
notify the revisor of statutes when federal approval is obtained.
Sec. 16. Minnesota Statutes 2014, section 256B.15, subdivision 2, is amended to read:
Subd. 2. Limitations on claims. (a) For services rendered prior to January 1, 2014, the claim shall include only the total amount of medical assistance rendered after age 55 or during a period of institutionalization described in subdivision 1a, paragraph (e), and the total amount of general assistance medical care rendered, and shall not include interest.
(b) For services rendered on or after
January 1, 2014, the claim shall include only:
(1) the amount of medical assistance
rendered to recipients 55 years of age or older and that consisted of nursing
facility services, home and community-based services, and related hospital and
prescription drug services; and
(2) the total amount of medical
assistance rendered during a period of institutionalization described in
subdivision 1a, paragraph (e), clause (2).
The claim shall not include interest. For the purposes of this section, "home
and community-based services" has the same meaning it has when used in
United States Code, title 42, section 1396p(b)(1)(B)(i), and includes the
alternative care program under section 256B.0913.
(c) Claims that have been allowed but not paid shall bear interest according to section 524.3-806, paragraph (d). A claim against the estate of a surviving spouse who did not receive medical assistance, for medical assistance rendered for the predeceased spouse, shall be payable from the full value of all of the predeceased spouse's assets and interests which are part of the surviving spouse's estate under subdivisions 1a and 2b. Recovery of medical assistance expenses in the nonrecipient surviving spouse's estate is limited to the value of the assets of the estate that were marital property or jointly owned property at any time during the marriage. The claim is not payable from the value of assets or proceeds of assets in the estate attributable to a predeceased spouse whom the individual married after the death of the predeceased recipient spouse for whom the claim is filed or from assets and the proceeds of assets in the estate which the nonrecipient decedent spouse acquired with assets which were not marital property or jointly owned property after the death of the predeceased recipient spouse. Claims for alternative care shall be net of all premiums paid under section 256B.0913, subdivision 12, on or after July 1, 2003, and shall be limited to services provided on or after July 1, 2003. Claims against marital property shall be limited to claims against recipients who died on or after July 1, 2009.
EFFECTIVE
DATE. This section is
effective upon federal approval and applies retroactively to services rendered
on or after January 1, 2014, and to claims not paid prior to July 1, 2016. The commissioner of human services shall
notify the revisor of statutes when federal approval is obtained.
Sec. 17. Minnesota Statutes 2015 Supplement, section 256B.76, subdivision 2, is amended to read:
Subd. 2. Dental reimbursement. (a) Effective for services rendered on or after October 1, 1992, the commissioner shall make payments for dental services as follows:
(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992; and
(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th percentile of 1989, less the percent in aggregate necessary to equal the above increases.
(b) Beginning October 1, 1999, the payment for tooth sealants and fluoride treatments shall be the lower of (1) submitted charge, or (2) 80 percent of median 1997 charges.
(c) Effective for services rendered on or after January 1, 2000, payment rates for dental services shall be increased by three percent over the rates in effect on December 31, 1999.
(d) Effective for services provided on or after January 1, 2002, payment for diagnostic examinations and dental x-rays provided to children under age 21 shall be the lower of (1) the submitted charge, or (2) 85 percent of median 1999 charges.
(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1, 2000, for managed care.
(f) Effective for dental services rendered on or after October 1, 2010, by a state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based on the Medicare principles of reimbursement. This payment shall be effective for services rendered on or after January 1, 2011, to recipients enrolled in managed care plans or county-based purchasing plans.
(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal year, a supplemental state payment equal to the difference between the total payments in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated services for the operation of the dental clinics.
(h) If the cost-based payment system for state-operated dental clinics described in paragraph (f) does not receive federal approval, then state-operated dental clinics shall be designated as critical access dental providers under subdivision 4, paragraph (b), and shall receive the critical access dental reimbursement rate as described under subdivision 4, paragraph (a).
(i) Effective for services rendered on or after September 1, 2011, through June 30, 2013, payment rates for dental services shall be reduced by three percent. This reduction does not apply to state-operated dental clinics in paragraph (f).
(j) Effective for services rendered on or after January 1, 2014, payment rates for dental services shall be increased by five percent from the rates in effect on December 31, 2013. This increase does not apply to state-operated dental clinics in paragraph (f), federally qualified health centers, rural health centers, and Indian health services. Effective January 1, 2014, payments made to managed care plans and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment increase described in this paragraph.
(k) Effective for services rendered on or after July 1, 2015, through December 31, 2016, the commissioner shall increase payment rates for services furnished by dental providers located outside of the seven-county metropolitan area by the maximum percentage possible above the rates in effect on June 30, 2015, while remaining within the limits of funding appropriated for this purpose. This increase does not apply to state-operated dental clinics in paragraph (f), federally qualified health centers, rural health centers, and Indian health services. Effective January 1, 2016, through December 31, 2016, payments to managed care plans and county-based purchasing plans under sections 256B.69 and 256B.692 shall reflect the payment increase described in this paragraph. The commissioner shall require managed care and county-based purchasing plans to pass on the full amount of the increase, in the form of higher payment rates to dental providers located outside of the seven-county metropolitan area.
(l) Effective for services provided on
or after January 1, 2017, the commissioner shall increase payment rates by 9.65
percent for dental services provided outside of the seven-county metropolitan
area. This increase does not apply to
state-operated dental clinics in paragraph (f), federally qualified health centers,
rural health centers, or Indian health services. Effective January 1, 2017, payments to
managed care plans and county-based purchasing plans under sections 256B.69 and
256B.692 shall reflect the payment increase described in this paragraph.
Sec. 18. Minnesota Statutes 2015 Supplement, section 256B.76, subdivision 4, is amended to read:
Subd. 4. Critical
access dental providers. (a) Effective
for dental services rendered on or after January 1, 2002, The commissioner
shall increase reimbursements to dentists and dental clinics deemed by the
commissioner to be critical access dental providers. For dental services rendered on or after July
1, 2007 2016, the commissioner shall increase reimbursement by 35
37.5 percent above the reimbursement rate that would otherwise be paid
to the critical access dental provider, except as specified under paragraph
(b). The commissioner shall pay the
managed care plans and county-based purchasing plans in amounts sufficient to
reflect increased reimbursements to critical access dental providers as
approved by the commissioner.
(b) For dental services rendered on or
after July 1, 2016, by a dental clinic or dental group that meets the critical
access dental provider designation under paragraph (d), clause (4), and is
owned and operated by a health maintenance organization licensed under chapter
62D, the commissioner shall increase reimbursement by 35 percent above the
reimbursement rate that would otherwise be paid to the critical access
provider.
(c) Critical access dental payments
made under paragraph (a) or (b) for dental services provided by a critical
access dental provider to an enrollee of a managed care plan or county-based
purchasing plan must not reflect any capitated payments or cost-based payments
from the managed care plan or county-based purchasing plan. The managed care plan or county-based
purchasing plan must base the additional critical access dental payment on the
amount that would have been paid for that service had the dental provider been
paid according to the managed care plan or county-based purchasing plan's fee
schedule that applies to dental providers that are not paid under a capitated
payment or cost-based payment.
(d) The commissioner shall designate the following dentists and dental clinics as critical access dental providers:
(1) nonprofit community clinics that:
(i) have nonprofit status in accordance with chapter 317A;
(ii) have tax exempt status in accordance with the Internal Revenue Code, section 501(c)(3);
(iii) are established to provide oral health services to patients who are low income, uninsured, have special needs, and are underserved;
(iv) have professional staff familiar with the cultural background of the clinic's patients;
(v) charge for services on a sliding fee scale designed to provide assistance to low-income patients based on current poverty income guidelines and family size;
(vi) do not restrict access or services because of a patient's financial limitations or public assistance status; and
(vii) have free care available as needed;
(2) federally qualified health centers, rural health clinics, and public health clinics;
(3) city or county hospital-based
dental clinics owned and operated hospital-based dental clinics by
a city, county, or former state hospital as defined in section 62Q.19,
subdivision 1, paragraph (a), clause (4);
(4) a dental clinic or dental group owned and operated by a nonprofit corporation in accordance with chapter 317A with more than 10,000 patient encounters per year with patients who are uninsured or covered by medical assistance or MinnesotaCare;
(5) a dental clinic owned and operated by the University of Minnesota or the Minnesota State Colleges and Universities system; and
(6) private practicing dentists if:
(i) the dentist's office is located within
a health professional shortage area as defined under Code of Federal
Regulations, title 42, part 5, and United States Code, title 42, section 254E;
(ii) more the seven-county
metropolitan area and more than 50 percent of the dentist's patient
encounters per year are with patients who are uninsured or covered by medical
assistance or MinnesotaCare; and or
(iii) the level of service provided by
the dentist is critical to maintaining adequate levels of patient access within
the service area in which the dentist operates.
(ii) the dentist's office is located
outside the seven-county metropolitan area and more than 25 percent of the
dentist's patient encounters per year are with patients who are uninsured or
covered by medical assistance or MinnesotaCare.
Sec. 19. Minnesota Statutes 2015 Supplement, section 256B.766, is amended to read:
256B.766
REIMBURSEMENT FOR BASIC CARE SERVICES.
(a) Effective for services provided on or after July 1, 2009, total payments for basic care services, shall be reduced by three percent, except that for the period July 1, 2009, through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical assistance and general assistance medical care programs, prior to third-party liability and spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical therapy services, occupational therapy services, and speech-language pathology and related services as basic care services. The reduction in this paragraph shall apply to physical therapy services, occupational therapy services, and speech-language pathology and related services provided on or after July 1, 2010.
(b) Payments made to managed care plans and county-based purchasing plans shall be reduced for services provided on or after October 1, 2009, to reflect the reduction effective July 1, 2009, and payments made to the plans shall be reduced effective October 1, 2010, to reflect the reduction effective July 1, 2010.
(c) Effective for services provided on or after September 1, 2011, through June 30, 2013, total payments for outpatient hospital facility fees shall be reduced by five percent from the rates in effect on August 31, 2011.
(d) Effective for services provided on or after September 1, 2011, through June 30, 2013, total payments for ambulatory surgery centers facility fees, medical supplies and durable medical equipment not subject to a volume purchase contract, prosthetics and orthotics, renal dialysis services, laboratory services, public health nursing services, physical therapy services, occupational therapy services, speech therapy services, eyeglasses not subject to a volume purchase contract, hearing aids not subject to a volume purchase contract, and anesthesia services shall be reduced by three percent from the rates in effect on August 31, 2011.
(e) Effective for services provided on or after September 1, 2014, payments for ambulatory surgery centers facility fees, hospice services, renal dialysis services, laboratory services, public health nursing services, eyeglasses not subject to a volume purchase contract, and hearing aids not subject to a volume purchase contract shall be increased by three percent and payments for outpatient hospital facility fees shall be increased by three percent. Payments made to managed care plans and county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.
(f)
Payments for medical supplies and durable medical equipment not subject to a
volume purchase contract, and prosthetics and orthotics, provided on or after
July 1, 2014, through June 30, 2015, shall be decreased by .33 percent. Payments for medical supplies and durable
medical equipment not subject to a volume purchase contract, and prosthetics
and orthotics, provided on or after July 1, 2015, shall be increased by three
percent from the rates as determined under paragraph paragraphs
(i) and (j).
(g) Effective for services provided on or after July 1, 2015, payments for outpatient hospital facility fees, medical supplies and durable medical equipment not subject to a volume purchase contract, prosthetics and orthotics, and laboratory services to a hospital meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause (4), shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments made to managed care plans and county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.
(h) This section does not apply to physician and professional services, inpatient hospital services, family planning services, mental health services, dental services, prescription drugs, medical transportation, federally qualified health centers, rural health centers, Indian health services, and Medicare cost-sharing.
(i) Effective for services provided on
or after July 1, 2015, the medical assistance payment rate for durable
medical equipment, prosthetics, orthotics, or supplies shall be restored to the
January 1, 2008, medical assistance fee schedule, updated to include subsequent
rate increases in the Medicare and medical assistance fee schedules, and
including following categories of durable medical equipment shall be
individually priced items for the following categories: enteral nutrition and supplies, customized
and other specialized tracheostomy tubes and supplies, electric patient lifts,
and durable medical equipment repair and service. This paragraph does not apply to medical
supplies and durable medical equipment subject to a volume purchase contract,
products subject to the preferred diabetic testing supply program, and items
provided to dually eligible recipients when Medicare is the primary payer for
the item. The commissioner shall not
apply any medical assistance rate reductions to durable medical equipment as a
result of Medicare competitive bidding.
(j) Effective for services provided on
or after July 1, 2015, medical assistance payment rates for durable medical
equipment, prosthetics, orthotics, or supplies shall be increased as follows:
(1) payment rates for durable medical
equipment, prosthetics, orthotics, or supplies that were subject to the
Medicare competitive bid that took effect in January of 2009 shall be increased
by 9.5 percent; and
(2) payment rates for durable medical
equipment, prosthetics, orthotics, or supplies on the medical assistance fee
schedule, whether or not subject to the Medicare competitive bid that took
effect in January of 2009, shall be increased by 2.94 percent, with this
increase being applied after calculation of any increased payment rate under
clause (1).
This paragraph does not apply to medical supplies and
durable medical equipment subject to a volume purchase contract, products
subject to the preferred diabetic testing supply program, items provided to
dually eligible recipients when Medicare is the primary payer for the item, and
individually priced items identified in paragraph (i). Payments made to managed care plans and
county-based purchasing plans shall not be adjusted to reflect the rate increases
in this paragraph.
EFFECTIVE
DATE. This section is
effective retroactively from July 1, 2015.
Sec. 20. Minnesota Statutes 2014, section 256L.01, subdivision 1a, is amended to read:
Subd. 1a. Child. "Child" means an individual
under 21 years of age, including the unborn child of a pregnant woman, an
emancipated minor, and an emancipated minor's spouse.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 21. Minnesota Statutes 2015 Supplement, section 256L.01, subdivision 5, is amended to read:
Subd. 5. Income. "Income" has the meaning given
for modified adjusted gross income, as defined in Code of Federal Regulations,
title 26, section 1.36B-1, and means a household's projected annual income
for the applicable tax year current income, or if income fluctuates
month to month, the income for the 12-month eligibility period.
EFFECTIVE
DATE. This section is
effective July 1, 2017.
Sec. 22. Minnesota Statutes 2014, section 256L.04, subdivision 1a, is amended to read:
Subd. 1a. Social
Security number required. (a)
Individuals and families applying for MinnesotaCare coverage must provide a
Social Security number if required by Code of Federal Regulations, title 45,
section 155.310(a)(3).
(b) The commissioner shall not deny
eligibility to an otherwise eligible applicant who has applied for a Social
Security number and is awaiting issuance of that Social Security number.
(c) Newborns enrolled under section
256L.05, subdivision 3, are exempt from the requirements of this subdivision.
(d) Individuals who refuse to provide a
Social Security number because of well-established religious objections are
exempt from the requirements of this subdivision. The term "well-established religious
objections" has the meaning given in Code of Federal Regulations, title
42, section 435.910.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 23. Minnesota Statutes 2014, section 256L.04, subdivision 2, is amended to read:
Subd. 2. Third-party
liability, paternity, and other medical support. (a) To be eligible for MinnesotaCare,
Individuals and families must may cooperate with the state agency
to identify potentially liable third-party payers and assist the state in
obtaining third-party payments. "Cooperation"
includes, but is not limited to, complying with the notice requirements in
section 256B.056, subdivision 9, identifying any third party who may be liable
for care and services provided under MinnesotaCare to the enrollee, providing
relevant information to assist the state in pursuing a potentially liable third
party, and completing forms necessary to recover third-party payments.
(b) A parent, guardian, relative
caretaker, or child enrolled in the MinnesotaCare program must cooperate with the
Department of Human Services and the local agency in establishing the paternity
of an enrolled child and in obtaining medical care support and payments for the
child and any other person for whom the person can legally assign rights, in
accordance with applicable laws and rules governing the medical assistance
program. A child shall not be ineligible
for or disenrolled from the MinnesotaCare program solely because the child's
parent, relative caretaker, or guardian fails to cooperate in establishing paternity
or obtaining medical support.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 24. Minnesota Statutes 2015 Supplement, section 256L.04, subdivision 7b, is amended to read:
Subd. 7b. Annual
income limits adjustment. The
commissioner shall adjust the income limits under this section annually on
January each July 1 as provided described in Code
of Federal Regulations, title 26, section 1.36B-1(h) section 256B.056,
subdivision 1c.
EFFECTIVE
DATE. This section is
effective July 1, 2017.
Sec. 25. Minnesota Statutes 2015 Supplement, section 256L.05, subdivision 3a, is amended to read:
Subd. 3a. Redetermination
of eligibility. (a) An enrollee's
eligibility must be redetermined on an annual basis, in accordance with Code
of Federal Regulations, title 42, section 435.916(a). The period of eligibility is the entire
calendar year following the year in which eligibility is redetermined. Beginning in calendar year 2015, eligibility
redeterminations shall occur during the open enrollment period for qualified
health plans as specified in Code of Federal Regulations, title 45, section
155.410. The 12-month eligibility
period begins the month of application. Beginning
July 1, 2017, the commissioner shall adjust the eligibility period for
enrollees to implement renewals throughout the year according to guidance from
the Centers for Medicare and Medicaid Services.
(b) Each new period of eligibility must take into account any changes in circumstances that impact eligibility and premium amount. Coverage begins as provided in section 256L.06.
EFFECTIVE
DATE. This section is
effective July 1, 2017.
Sec. 26. Minnesota Statutes 2015 Supplement, section 256L.06, subdivision 3, is amended to read:
Subd. 3. Commissioner's duties and payment. (a) Premiums are dedicated to the commissioner for MinnesotaCare.
(b) The commissioner shall develop and implement procedures to: (1) require enrollees to report changes in income; (2) adjust sliding scale premium payments, based upon both increases and decreases in enrollee income, at the time the change in income is reported; and (3) disenroll enrollees from MinnesotaCare for failure to pay required premiums. Failure to pay includes payment with a dishonored check, a returned automatic bank withdrawal, or a refused credit card or debit card payment. The commissioner may demand a guaranteed form of payment, including a cashier's check or a money order, as the only means to replace a dishonored, returned, or refused payment.
(c) Premiums are calculated on a calendar month basis and may be paid on a monthly, quarterly, or semiannual basis, with the first payment due upon notice from the commissioner of the premium amount required. The commissioner shall inform applicants and enrollees of these premium payment options. Premium payment is required before enrollment is complete and to maintain eligibility in MinnesotaCare. Premium payments received before noon are credited the same day. Premium payments received after noon are credited on the next working day.
(d) Nonpayment of the premium will result in disenrollment from the plan effective for the calendar month following the month for which the premium was due. Persons disenrolled for nonpayment may not reenroll prior to the first day of the month following the payment of an amount equal to two months' premiums.
(e) The commissioner shall forgive the
past-due premium for persons disenrolled under paragraph (d) prior to issuing a
premium invoice for the fourth month following disenrollment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 27. Minnesota Statutes 2014, section 256L.07, subdivision 1, is amended to read:
Subdivision 1. General
requirements. Individuals enrolled
in MinnesotaCare under section 256L.04, subdivision 1, and individuals enrolled
in MinnesotaCare under section 256L.04, subdivision 7, whose income increases
above 200 percent of the federal poverty guidelines, are no longer eligible for
the program and shall be disenrolled by the commissioner. For persons disenrolled under this
subdivision, MinnesotaCare coverage terminates the last day of the calendar
month following the month in which the commissioner determines that
sends advance notice according to Code of Federal Regulations, title 42,
section 431.211, that indicates the income of a family or individual
exceeds program income limits.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 28. Minnesota Statutes 2014, section 256L.11, subdivision 7, is amended to read:
Subd. 7. Critical
access dental providers. Effective
for dental services provided to MinnesotaCare enrollees on or after January
1, 2007, through August 31, 2011 July 1, 2016, the commissioner
shall increase payment rates to dentists and dental clinics deemed by the
commissioner to be critical access providers under section 256B.76, subdivision
4, by 50 percent above the payment rate that would otherwise be paid to the
provider. Effective for dental services
provided on or after September 1, 2011, the commissioner shall increase the
payment rate by 30 32.5 percent above the payment rate that
would otherwise be paid to the provider, except for a dental clinic or
dental group described in section 256B.76, subdivision 4, paragraph (b), in
which the commissioner shall increase the payment rate by 30 percent above the
payment rate that would otherwise be paid to the provider. The commissioner shall pay the prepaid health
plans under contract with the commissioner amounts sufficient to reflect this
rate increase. The prepaid health plan
must pass this rate increase to providers who have been identified by the
commissioner as critical access dental providers under section 256B.76,
subdivision 4.
Sec. 29. Minnesota Statutes 2015 Supplement, section 256L.15, subdivision 1, is amended to read:
Subdivision 1. Premium determination for MinnesotaCare. (a) Families with children and individuals shall pay a premium determined according to subdivision 2.
(b) Members of the military and their families who meet the eligibility criteria for MinnesotaCare upon eligibility approval made within 24 months following the end of the member's tour of active duty shall have their premiums paid by the commissioner. The effective date of coverage for an individual or family who meets the criteria of this paragraph shall be the first day of the month following the month in which eligibility is approved. This exemption applies for 12 months.
(c) Beginning July 1, 2009, American
Indians enrolled in MinnesotaCare and their families shall have their premiums
waived by the commissioner in accordance with section 5006 of the American
Recovery and Reinvestment Act of 2009, Public Law 111-5. An individual must document indicate
status as an American Indian, as defined under Code of Federal Regulations,
title 42, section 447.50, to qualify for the waiver of premiums. The commissioner shall accept attestation
of an individual's status as an American Indian as verification until the
United States Department of Health and Human Services approves an electronic
data source for this purpose.
(d) For premiums effective August 1, 2015, and after, the commissioner, after consulting with the chairs and ranking minority members of the legislative committees with jurisdiction over human services, shall increase premiums under subdivision 2 for recipients based on June 2015 program enrollment. Premium increases shall be sufficient to increase projected revenue to the fund described in section 16A.724 by at least $27,800,000 for the biennium ending June 30, 2017. The commissioner shall publish the revised premium scale on the Department of Human Services Web site and in the State Register no later than June 15, 2015. The revised premium scale applies to all premiums on or after August 1, 2015, in place of the scale under subdivision 2.
(e) By July 1, 2015, the commissioner shall provide the chairs and ranking minority members of the legislative committees with jurisdiction over human services the revised premium scale effective August 1, 2015, and statutory language to codify the revised premium schedule.
(f) Premium changes authorized under paragraph (d) must only apply to enrollees not otherwise excluded from paying premiums under state or federal law. Premium changes authorized under paragraph (d) must satisfy the requirements for premiums for the Basic Health Program under title 42 of Code of Federal Regulations, section 600.505.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. DIRECTION
TO COMMISSIONER OF HUMAN SERVICES; NOTICE.
For all individuals that received
medical assistance non-long-term care services on or after July 1, 2014, the
commissioner of human services must provide notice of the 2016 amendments to
Minnesota Statutes, section 256B.15, subdivisions 1a and 2. The notice must be provided within 90 days
from the date of enactment.
Sec. 31. REPEALER.
(a) Minnesota Statutes 2014, section
256B.059, subdivision 1a, is repealed.
(b) Minnesota Statutes 2014, sections
256L.04, subdivisions 2a and 8; 256L.22; 256L.24; 256L.26; and 256L.28, are
repealed.
EFFECTIVE
DATE. Paragraph (a) is
effective June 1, 2016. Paragraph (b) is
effective the day following final enactment.
ARTICLE 20
HEALTH DEPARTMENT
Section 1. Minnesota Statutes 2014, section 13.3805, is amended by adding a subdivision to read:
Subd. 5. Radon
testing and mitigation data. Data
maintained by the Department of Health that identify the address of a radon
testing or mitigation site, and the name, address, email address, and
telephone number of residents and residential property owners of a radon
testing or mitigation site, are private data on individuals or nonpublic data.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 62D.04, subdivision 1, is amended to read:
Subdivision 1. Application review. Upon receipt of an application for a certificate of authority, the commissioner of health shall determine whether the applicant for a certificate of authority has:
(a) demonstrated the willingness and potential ability to assure that health care services will be provided in such a manner as to enhance and assure both the availability and accessibility of adequate personnel and facilities;
(b) arrangements for an ongoing evaluation of the quality of health care, including a peer review process;
(c) a procedure to develop, compile, evaluate, and report statistics relating to the cost of its operations, the pattern of utilization of its services, the quality, availability and accessibility of its services, and such other matters as may be reasonably required by regulation of the commissioner of health;
(d) reasonable provisions for emergency and out of area health care services;
(e) demonstrated that it is financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees. In making this determination, the commissioner of health shall require the amount of initial net worth required in section 62D.042, compliance with the risk-based capital standards under sections 60A.50 to 60A.592, the deposit required in section 62D.041, and in addition shall consider:
(1) the financial soundness of its arrangements for health care services and the proposed schedule of charges used in connection therewith;
(2) arrangements which will guarantee for a reasonable period of time the continued availability or payment of the cost of health care services in the event of discontinuance of the health maintenance organization; and
(3) agreements with providers for the provision of health care services;
(f) demonstrated that it will assume full financial risk on a prospective basis for the provision of comprehensive health maintenance services, including hospital care; provided, however, that the requirement in this paragraph shall not prohibit the following:
(1) a health maintenance organization from obtaining insurance or making other arrangements (i) for the cost of providing to any enrollee comprehensive health maintenance services, the aggregate value of which exceeds $5,000 in any year, (ii) for the cost of providing comprehensive health care services to its members on a nonelective emergency basis, or while they are outside the area served by the organization, or (iii) for not more than 95 percent of the amount by which the health maintenance organization's costs for any of its fiscal years exceed 105 percent of its income for such fiscal years; and
(2) a health maintenance organization from having a provision in a group health maintenance contract allowing an adjustment of premiums paid based upon the actual health services utilization of the enrollees covered under the contract, except that at no time during the life of the contract shall the contract holder fully self-insure the financial risk of health care services delivered under the contract. Risk sharing arrangements shall be subject to the requirements of sections 62D.01 to 62D.30;
(g) demonstrated that it has made provisions for and adopted a conflict of interest policy applicable to all members of the board of directors and the principal officers of the health maintenance organization. The conflict of interest policy shall include the procedures described in section 317A.255, subdivisions 1 and 2. However, the commissioner is not precluded from finding that a particular transaction is an unreasonable expense as described in section 62D.19 even if the directors follow the required procedures; and
(h) otherwise met the requirements of sections 62D.01 to 62D.30.
Sec. 3. Minnesota Statutes 2014, section 62D.08, subdivision 3, is amended to read:
Subd. 3. Report requirements. Such report shall be on forms prescribed by the commissioner of health, and shall include:
(a) a financial statement of the organization, including its balance sheet and receipts and disbursements for the preceding year certified by an independent certified public accountant, reflecting at least (1) all prepayment and other payments received for health care services rendered, (2) expenditures to all providers, by classes or groups of providers, and insurance companies or nonprofit health service plan corporations engaged to fulfill obligations arising out of the health maintenance contract, (3) expenditures for capital improvements, or additions thereto, including but not limited to construction, renovation or purchase of facilities and capital equipment, and (4) a supplementary statement of assets, liabilities, premium revenue, and expenditures for risk sharing business under section 62D.04, subdivision 1, on forms prescribed by the commissioner;
(b) the number of new enrollees enrolled during the year, the number of group enrollees and the number of individual enrollees as of the end of the year and the number of enrollees terminated during the year;
(c) a summary of information compiled pursuant to section 62D.04, subdivision 1, clause (c), in such form as may be required by the commissioner of health;
(d) a report of the names and addresses of all persons set forth in section 62D.03, subdivision 4, clause (c), who were associated with the health maintenance organization or the major participating entity during the preceding year, and the amount of wages, expense reimbursements, or other payments to such individuals for services to the health maintenance organization or the major participating entity, as those services relate to the health maintenance organization, including a full disclosure of all financial arrangements during the preceding year required to be disclosed pursuant to section 62D.03, subdivision 4, clause (d);
(e) a separate report addressing health
maintenance contracts sold to individuals covered by Medicare, title XVIII of
the Social Security Act, as amended, including the information required under
section 62D.30, subdivision 6; and
(f) data on the number of complaints
received and the category of each complaint as defined by the commissioner. The categories must include access,
communication and behavior, health plan administration, facilities and
environment, coordination of care, and technical competence and appropriateness. The commissioner, in consultation with
interested stakeholders, shall define complaint categories to be used by each
health maintenance organization by July 1, 2017, and the categories must be
used by each health maintenance organization beginning calendar year 2018; and
(f) (g) such other
information relating to the performance of the health maintenance organization
as is reasonably necessary to enable the commissioner of health to carry out
the duties under sections 62D.01 to 62D.30.
Sec. 4. [62D.115]
QUALITY OF CARE COMPLAINTS.
Subdivision 1. Quality
of care complaint. For
purposes of this section, "quality of care complaint" means an
expressed dissatisfaction regarding health care services resulting in potential
or actual harm to an enrollee. Quality
of care complaints may include the following, to the extent that they affect
the clinical quality of health care services rendered: access; provider and staff competence;
clinical appropriateness of care; communications; behavior; facility and
environmental considerations; and other factors that could impact the quality
of health care services.
Subd. 2. Quality
of care complaint investigation. (a)
Each health maintenance organization shall develop and implement a quality of
care complaint investigation process that meets the requirements of this
section. The process must include a
written policy and procedures for the receipt, investigation, and follow-up of
quality of care complaints, that includes the requirements in paragraphs (b) to
(h).
(b) A health maintenance organization's
definition for quality of care complaints must include the concerns identified
in subdivision 1.
(c) A health maintenance organization
must include a description of each quality of care complaint level of severity,
including:
(1) classification of complaints that warrant peer protection confidentiality as defined by the commissioner in paragraph (h); and
(2) investigation procedures for each
level of severity.
(d) Any complaint with an allegation
regarding quality of care or service must be investigated by the health
maintenance organization. Documentation
must show that each allegation has been addressed.
(e) Conclusions of each investigation
must be supported with evidence that may include an associated corrective
action plan implemented and documented and a formal response from a provider to
the health maintenance organization if a formal response was submitted to the
health maintenance organization. The
record of investigation must include all related documents, correspondence,
summaries, discussions, consultation, and conferences held.
(f)
A medical director review shall be conducted as part of the investigation
process when there is potential for patient harm.
(g) Each quality of care complaint
received by a health maintenance organization must be tracked and trended for
review by the health maintenance organization according to provider type and
the following type of quality of care issue:
behavior, facility, environmental, or technical competence.
(h) The commissioner, in consultation
with interested stakeholders, shall define complaints that are subject to peer
protection confidentiality in accordance with state and federal law by January
1, 2018.
Subd. 3. Complaint
reporting. Each health
maintenance organization shall submit to the commissioner, as part of the
company's annual filing, data on the number of complaints and the category as
defined by the commissioner as required under section 62D.08, subdivision 3,
paragraph (f).
Subd. 4. Records. Each health maintenance organization
shall maintain records of all quality of care complaints and their resolution
and retain those records for five years.
Notwithstanding section 145.64, information provided to the commissioner
according to this subdivision is classified as confidential data on individuals
or protected nonpublic data as defined in section 13.02, subdivision 3 or 13.
Subd. 5. Exception. This section does not apply to quality
of care complaints received by a health maintenance organization from an
enrollee who is covered under a public health care program administered by the
commissioner of human services under chapter 256B or 256L.
Sec. 5. Minnesota Statutes 2014, section 62J.495, subdivision 4, is amended to read:
Subd. 4. Coordination with national HIT activities. (a) The commissioner, in consultation with the e-Health Advisory Committee, shall update the statewide implementation plan required under subdivision 2 and released June 2008, to be consistent with the updated Federal HIT Strategic Plan released by the Office of the National Coordinator in accordance with section 3001 of the HITECH Act. The statewide plan shall meet the requirements for a plan required under section 3013 of the HITECH Act.
(b) The commissioner, in consultation with the e-Health Advisory Committee, shall work to ensure coordination between state, regional, and national efforts to support and accelerate efforts to effectively use health information technology to improve the quality and coordination of health care and the continuity of patient care among health care providers, to reduce medical errors, to improve population health, to reduce health disparities, and to reduce chronic disease. The commissioner's coordination efforts shall include but not be limited to:
(1)
assisting in the development and support of health information technology
regional extension centers established under section 3012(c) of the HITECH Act
to provide technical assistance and disseminate best practices; and
(2) providing supplemental information to
the best practices gathered by regional centers to ensure that the information
is relayed in a meaningful way to the Minnesota health care community.;
(3) providing financial and technical
support to Minnesota health care providers to encourage implementation of
admission, discharge and transfer alerts, and care summary document exchange
transactions and to evaluate the impact of health information technology on
cost and quality of care. Communications
about available financial and technical support shall include clear information
about the interoperable health record requirements in subdivision 1, including
a separate statement in bold-face type clarifying the exceptions to those
requirements;
(4) providing educational resources and technical assistance to health care providers and patients related to state and national privacy, security, and consent laws governing clinical health information, including the requirements in sections 144.291 to 144.298. In carrying out these activities, the commissioner's technical assistance does not constitute legal advice;
(5)
assessing Minnesota's legal, financial, and regulatory framework for health
information exchange, including the requirements in sections 144.291 to
144.298, and making recommendations for modifications that would strengthen the
ability of Minnesota health care providers to securely exchange data in
compliance with patient preferences and in a way that is efficient and
financially sustainable; and
(6) seeking public input on both
patient impact and costs associated with requirements related to patient
consent for release of health records for the purposes of treatment, payment,
and health care operations, as required in section 144.293, subdivision 2. The commissioner shall provide a report to
the legislature on the findings of this public input process no later than
February 1, 2017.
(c) The commissioner, in consultation with the e-Health Advisory Committee, shall monitor national activity related to health information technology and shall coordinate statewide input on policy development. The commissioner shall coordinate statewide responses to proposed federal health information technology regulations in order to ensure that the needs of the Minnesota health care community are adequately and efficiently addressed in the proposed regulations. The commissioner's responses may include, but are not limited to:
(1) reviewing and evaluating any standard, implementation specification, or certification criteria proposed by the national HIT standards committee;
(2) reviewing and evaluating policy proposed by the national HIT policy committee relating to the implementation of a nationwide health information technology infrastructure;
(3) monitoring and responding to activity related to the development of quality measures and other measures as required by section 4101 of the HITECH Act. Any response related to quality measures shall consider and address the quality efforts required under chapter 62U; and
(4) monitoring and responding to national activity related to privacy, security, and data stewardship of electronic health information and individually identifiable health information.
(d) To the extent that the state is either required or allowed to apply, or designate an entity to apply for or carry out activities and programs under section 3013 of the HITECH Act, the commissioner of health, in consultation with the e-Health Advisory Committee and the commissioner of human services, shall be the lead applicant or sole designating authority. The commissioner shall make such designations consistent with the goals and objectives of sections 62J.495 to 62J.497 and 62J.50 to 62J.61.
(e) The commissioner of human services shall apply for funding necessary to administer the incentive payments to providers authorized under title IV of the American Recovery and Reinvestment Act.
(f) The commissioner shall include in the report to the legislature information on the activities of this subdivision and provide recommendations on any relevant policy changes that should be considered in Minnesota.
Sec. 6. Minnesota Statutes 2014, section 62J.496, subdivision 1, is amended to read:
Subdivision 1. Account establishment. (a) An account is established to:
(1) finance the purchase of certified electronic health records or qualified electronic health records as defined in section 62J.495, subdivision 1a;
(2) enhance the utilization of electronic health record technology, which may include costs associated with upgrading the technology to meet the criteria necessary to be a certified electronic health record or a qualified electronic health record;
(3) train personnel in the use of electronic health record technology; and
(4) improve the secure electronic exchange of health information.
(b) Amounts deposited in the account, including any grant funds obtained through federal or other sources, loan repayments, and interest earned on the amounts shall be used only for awarding loans or loan guarantees, as a source of reserve and security for leveraged loans, for activities authorized in section 62J.495, subdivision 4, or for the administration of the account.
(c) The commissioner may accept contributions to the account from private sector entities subject to the following provisions:
(1) the contributing entity may not specify the recipient or recipients of any loan issued under this subdivision;
(2) the commissioner shall make public the identity of any private contributor to the loan fund, as well as the amount of the contribution provided;
(3) the commissioner may issue letters of commendation or make other awards that have no financial value to any such entity; and
(4) a contributing entity may not specify that the recipient or recipients of any loan use specific products or services, nor may the contributing entity imply that a contribution is an endorsement of any specific product or service.
(d) The commissioner may use the loan funds to reimburse private sector entities for any contribution made to the loan fund. Reimbursement to private entities may not exceed the principle amount contributed to the loan fund.
(e) The commissioner may use funds deposited in the account to guarantee, or purchase insurance for, a local obligation if the guarantee or purchase would improve credit market access or reduce the interest rate applicable to the obligation involved.
(f) The commissioner may use funds deposited in the account as a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the state if the proceeds of the sale of the bonds will be deposited into the loan fund.
(g) The commissioner shall not award
new loans or loan guarantees after July 1, 2016.
Sec. 7. Minnesota Statutes 2014, section 144.05, is amended by adding a subdivision to read:
Subd. 6. Reports
on interagency agreements and intra-agency transfers. The commissioner of health shall
provide quarterly reports to the chairs and ranking minority members of the
legislative committees with jurisdiction over health and human services policy
and finance on:
(1) interagency agreements or
service-level agreements and any renewals or extensions of existing interagency
or service level agreements with a state department under section 15.01, state
agency under section 15.012, or the Office of MN.IT Services, with a value of
more than $100,000, or related agreements with the same department or agency
with a cumulative value of more than $100,000; and
(2) transfers of appropriations of more
than $100,000 between accounts within or between agencies.
The
report must include the statutory citation authorizing the agreement, transfer
or dollar amount, purpose, and effective date of the agreement, duration of the
agreement, and a copy of the agreement.
Sec. 8. [144.1912]
GREATER MINNESOTA FAMILY MEDICINE RESIDENCY GRANT PROGRAM.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Commissioner" means the
commissioner of health.
(c) "Eligible family medicine
residency program" means a program that meets the following criteria:
(1) is located in Minnesota outside the
seven-county metropolitan area, as defined in section 473.121, subdivision 4;
(2) is accredited as a family medicine
residency program or is a candidate for accreditation;
(3) is focused on the education and
training of family medicine physicians to serve communities outside the
metropolitan area; and
(4) demonstrates that over the most
recent three years, at least 25 percent of its graduates practice in Minnesota
communities outside the metropolitan area.
Subd. 2. Program
administration. (a) The
commissioner shall award family medicine residency grants to existing,
eligible, not-for-profit family medicine residency programs to support current
and new residency positions. Funds shall
be allocated first to proposed new family medicine residency positions, and
remaining funds shall be allocated proportionally based on the number of
existing residents in eligible programs.
The commissioner may fund a new residency position for up to three
years.
(b) Grant funds awarded may only be
spent to cover the costs of:
(1) establishing, maintaining, or expanding
training for family medicine residents;
(2) recruitment, training, and
retention of residents and faculty;
(3) travel and lodging for residents;
and
(4) faculty, resident, and preceptor
salaries.
(c) Grant funds shall not be used to
supplant any other government or private funds available for these purposes.
Subd. 3. Applications. Eligible family medicine residency
programs seeking a grant must apply to the commissioner. The application must include objectives, a
related work plan and budget, a description of the number of new and existing
residency positions that will be supported using grant funds, and additional
information the commissioner determines to be necessary. The commissioner shall determine whether
applications are complete and responsive and may require revisions or
additional information before awarding a grant.
Subd. 4. Program
oversight. The commissioner
shall require and collect from family medicine residency programs receiving
grants, information necessary to administer and evaluate the program. The evaluation shall include the scope of
expansion of new residency positions and information describing specific
programs to enhance current residency positions, which may include facility
improvements. The commissioner shall
continue to collect data on greater Minnesota family medicine residency
shortages.
Sec. 9. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 3, is amended to read:
Subd. 3. Rulemaking. The commissioner of health shall adopt
rules for establishing licensure requirements and enforcement
of applicable laws and rules work standards relating to indoor radon
in dwellings and other buildings, with the exception of newly constructed
Minnesota homes according to section 326B.106, subdivision 6. The commissioner shall coordinate, oversee,
and implement all state functions in matters concerning the presence, effects,
measurement, and mitigation of risks of radon in dwellings and other buildings.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 4, is amended to read:
Subd. 4. System
tag. All radon mitigation systems
installed in Minnesota on or after October 1, 2017 January 1,
2018, must have a radon mitigation system tag provided by the commissioner. A radon mitigation professional must attach
the tag to the radon mitigation system in a visible location.
Sec. 11. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 5, is amended to read:
Subd. 5. License
required annually. Effective
January 1, 2018, a license is required annually for every person, firm, or
corporation that sells a device or performs a service for compensation
to detect the presence of radon in the indoor atmosphere, performs laboratory
analysis, or performs a service to mitigate radon in the indoor atmosphere. This section does not apply to retail
stores that only sell or distribute radon sampling but are not engaged in the
manufacture of radon sampling devices.
Sec. 12. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 6, is amended to read:
Subd. 6. Exemptions. Radon systems installed in newly
constructed Minnesota homes according to section 326B.106, subdivision 6, prior
to the issuance of a certificate of occupancy are not required to follow the
requirements of this section. This
section does not apply to:
(1) employees of a firm or corporation
that installs radon control systems in newly constructed Minnesota homes as
specified in subdivision 11;
(2)
a person authorized as a building official under Minnesota Rules, part
1300.0070, or that person's designee; or
(3) any person, firm, corporation, or
entity that distributes radon testing devices or information for general
educational purposes.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 8, is amended to read:
Subd. 8. Licensing fees. (a) All radon license applications submitted to the commissioner of health must be accompanied by the required fees. If the commissioner determines that insufficient fees were paid, the necessary additional fees must be paid before the commissioner approves the application. The commissioner shall charge the following fees for each radon license:
(1) Each measurement professional license,
$300 $150 per year. "Measurement
professional" means any person who performs a test to determine the
presence and concentration of radon in a building they do the person
does not own or lease; provides professional or expert advice on radon
testing, radon exposure, or health risks related to radon exposure; or makes
representations of doing any of these activities.
(2)
Each mitigation professional license, $500 $250 per year. "Mitigation professional" means an
individual who performs installs or designs a radon mitigation system
in a building they do the individual does not own or lease; provides
professional or expert advice on radon mitigation or radon entry routes; or
provides on-site supervision of radon mitigation and mitigation technicians;
or makes representations of doing any of these activities. "On-site supervision" means a
review at the property of mitigation work upon completion of the work and
attachment of a system tag. Employees or
subcontractors who are supervised by a licensed mitigation professional are not
required to be licensed under this clause.
This license also permits the licensee to perform the activities of a
measurement professional described in clause (1).
(3) Each mitigation company license, $500
$100 per year. "Mitigation
company" means any business or government entity that performs or
authorizes employees to perform radon mitigation. This fee is waived if the mitigation
company is a sole proprietorship employs only one licensed mitigation
professional.
(4) Each radon analysis laboratory license, $500 per year. "Radon analysis laboratory" means a business entity or government entity that analyzes passive radon detection devices to determine the presence and concentration of radon in the devices. This fee is waived if the laboratory is a government entity and is only distributing test kits for the general public to use in Minnesota.
(5) Each Minnesota Department of Health radon mitigation system tag, $75 per tag. "Minnesota Department of Health radon mitigation system tag" or "system tag" means a unique identifiable radon system label provided by the commissioner of health.
(b) Fees collected under this section shall be deposited in the state treasury and credited to the state government special revenue fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. Minnesota Statutes 2015 Supplement, section 144.4961, is amended by adding a subdivision to read:
Subd. 10. Local
inspections or permits. This
section does not preclude local units of government from requiring additional
permits or inspections for radon control systems, and does not supersede any
local inspection or permit requirements.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. Minnesota Statutes 2015 Supplement, section 144.4961, is amended by adding a subdivision to read:
Subd. 11. Application;
newly constructed homes. This
section does not apply to newly constructed Minnesota homes according to
section 326B.106, subdivision 6, prior to the issuance of a certificate of
occupancy.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2014, section 144A.75, subdivision 5, is amended to read:
Subd. 5. Hospice
provider. "Hospice
provider" means an individual, organization, association, corporation,
unit of government, or other entity that is regularly engaged in the delivery,
directly or by contractual arrangement, of hospice services for a fee to terminally
ill hospice patients. A hospice must
provide all core services.
Sec. 17. Minnesota Statutes 2014, section 144A.75, subdivision 6, is amended to read:
Subd. 6. Hospice
patient. "Hospice patient"
means an individual who has been diagnosed as terminally ill, with a
probable life expectancy of under one year, as whose illness has been
documented by the individual's attending physician and hospice medical
director, who alone or, when unable, through the individual's family has
voluntarily consented to and received admission to a hospice provider, and
who:
(1) has been diagnosed as terminally
ill, with a probable life expectancy of under one year; or
(2) is 21 years of age or younger; has been diagnosed with a chronic, complex, and life-threatening illness contributing to a shortened life expectancy; and is not expected to survive to adulthood.
Sec. 18. Minnesota Statutes 2014, section 144A.75, subdivision 8, is amended to read:
Subd. 8. Hospice services; hospice care. "Hospice services" or "hospice care" means palliative and supportive care and other services provided by an interdisciplinary team under the direction of an identifiable hospice administration to terminally ill hospice patients and their families to meet the physical, nutritional, emotional, social, spiritual, and special needs experienced during the final stages of illness, dying, and bereavement, or during a chronic, complex, and life-threatening illness contributing to a shortened life expectancy for hospice patients who meet the criteria in subdivision 6, clause (2). These services are provided through a centrally coordinated program that ensures continuity and consistency of home and inpatient care that is provided directly or through an agreement.
Sec. 19. Minnesota Statutes 2015 Supplement, section 144A.75, subdivision 13, is amended to read:
Subd. 13. Residential hospice facility. (a) "Residential hospice facility" means a facility that resembles a single-family home modified to address life safety, accessibility, and care needs, located in a residential area that directly provides 24-hour residential and support services in a home-like setting for hospice patients as an integral part of the continuum of home care provided by a hospice and that houses:
(1) no more than eight hospice patients; or
(2) at least nine and no more than 12 hospice patients with the approval of the local governing authority, notwithstanding section 462.357, subdivision 8.
(b) Residential hospice facility also means a facility that directly provides 24-hour residential and support services for hospice patients and that:
(1) houses no more than 21 hospice patients;
(2) meets hospice certification regulations adopted pursuant to title XVIII of the federal Social Security Act, United States Code, title 42, section 1395, et seq.; and
(3) is located on St. Anthony Avenue in St. Paul, Minnesota, and was licensed as a 40-bed non-Medicare certified nursing home as of January 1, 2015.
Sec. 20. Minnesota Statutes 2014, section 144A.75, is amended by adding a subdivision to read:
Subd. 13a. Respite
care. "Respite
care" means short-term care in an inpatient facility, such as a
residential hospice facility, when necessary to relieve the hospice patient's
family or other persons caring for the patient.
Respite care may be provided on an occasional basis.
Sec. 21. [145.908]
GRANT PROGRAM; SCREENING AND TREATMENT FOR PRE- AND POSTPARTUM MOOD AND ANXIETY
DISORDERS.
Subdivision 1. Grant
program established. Within
the limits of federal funds available specifically for this purpose, the
commissioner of health shall establish a grant program to provide culturally
competent programs to screen and treat pregnant women and women who have given
birth in the preceding 12 months for pre- and postpartum mood and anxiety
disorders. Organizations may use grant
funds to establish new screening or treatment programs, or expand or maintain
existing screening or treatment programs.
In establishing the grant program, the commissioner shall prioritize
expanding or enhancing screening for pre- and postpartum mood and anxiety
disorders in primary care settings. The
commissioner shall determine the types of organizations eligible for grants.
Subd. 2. Allowable
uses of funds. Grant funds
awarded by the commissioner under this section:
(1) must be used to provide health care
providers with appropriate training and relevant resources on screening,
treatment, follow-up support, and links to community-based resources for pre-
and postpartum mood and anxiety disorders; and
(2) may be used to:
(i) enable health care providers to
provide or receive psychiatric consultations to treat eligible women for pre‑
and postpartum mood and anxiety disorders;
(ii) conduct a public awareness
campaign;
(iii) fund start-up costs for telephone
lines, Web sites, and other resources to collect and disseminate information
about screening and treatment for pre- and postpartum mood and anxiety
disorders; or
(iv) establish connections between
community-based resources.
Subd. 3. Federal
funds. The commissioner shall
apply for any available grant funds from the federal Department of Health and
Human Services for this program.
Sec. 22. Minnesota Statutes 2014, section 149A.50, subdivision 2, is amended to read:
Subd. 2. Requirements for funeral establishment. A funeral establishment licensed under this section must:
(1) contain a comply with
preparation and embalming room requirements as described in section
149A.92;
(2) contain office space for making arrangements; and
(3) comply with applicable local and state building codes, zoning laws, and ordinances.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 23. Minnesota Statutes 2015 Supplement, section 149A.92, subdivision 1, is amended to read:
Subdivision 1. Establishment
update. (a) Notwithstanding
subdivision 11, a funeral establishment with other establishment locations that uses one preparation and embalming room
for all establishment locations has until July 1, 2017, to bring the
other establishment locations that are not used for preparation or embalming
into compliance with this section so long as the preparation and embalming room
that is used complies with the minimum standards in this section.
(b)
At the time that ownership of a funeral establishment changes, the physical
location of the establishment changes, or the building housing the funeral
establishment or business space of the establishment is remodeled the existing
preparation and embalming room must be brought into compliance with the minimum
standards in this section and in accordance with subdivision 11.
(a) Any room used by a funeral
establishment for preparation and embalming must comply with the minimum
standards of this section. A funeral
establishment where no preparation and embalming is performed, but which
conducts viewings, visitations, and services, or which holds human remains
while awaiting final disposition, need not comply with the minimum standards of
this section.
(b) Each funeral establishment must
have a preparation and embalming room that complies with the minimum standards
of this section, except that a funeral establishment that operates branch
locations need only have one compliant preparation and embalming room for all
locations.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 24. Minnesota Statutes 2014, section 327.14, subdivision 8, is amended to read:
Subd. 8. Recreational camping area. "Recreational camping area" means any area, whether privately or publicly owned, used on a daily, nightly, weekly, or longer basis for the accommodation of five or more tents or recreational camping vehicles free of charge or for compensation. "Recreational camping area" excludes:
(1) children's camps;
(2) industrial camps;
(3) migrant labor camps, as defined in Minnesota Statutes and state commissioner of health rules;
(4) United States Forest Service camps;
(5) state forest service camps;
(6) state wildlife management areas or
state-owned public access areas which are restricted in use to picnicking and
boat landing; and
(7) temporary holding areas for
self-contained recreational camping vehicles created by and adjacent to motor
sports facilities, if the chief law enforcement officer of an affected
jurisdiction determines that it is in the interest of public safety to provide
a temporary holding area; and
(8) a privately owned area used for camping no more than once a year and for no longer than seven consecutive days by members of a private club where the members pay annual dues to belong to the club.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 25. Laws 2015, chapter 71, article 8, section 24, the effective date, is amended to read:
EFFECTIVE
DATE. This section is effective July
1, 2015, except subdivisions 4 and 5, which are effective October 1, 2017
July 1, 2016.
Sec. 26. REPEALER.
Minnesota Statutes 2014, section
149A.92, subdivision 11, is repealed the day following final enactment.
ARTICLE 21
HEALTH-RELATED
OCCUPATIONAL LICENSING
GENETIC COUNSELORS
Section 1.
[147F.01] DEFINITIONS.
Subdivision 1. Applicability. For purposes of this chapter, the
terms defined in this section have the meanings given them.
Subd. 2. ABGC. "ABGC" means the American
Board of Genetic Counseling, a national agency for certification and
recertification of genetic counselors, or its successor organization or
equivalent.
Subd. 3. ABMG. "ABMG" means the American
Board of Medical Genetics, a national agency for certification and
recertification of genetic counselors, medical geneticists, and Ph.D. geneticists,
or its successor organization.
Subd. 4. ACGC. "ACGC" means the
Accreditation Council for Genetic Counseling, a specialized program
accreditation board for educational training programs granting master's degrees
or higher in genetic counseling, or its successor organization.
Subd. 5. Board. "Board" means the Board of
Medical Practice.
Subd. 6. Eligible
status. "Eligible
status" means an applicant who has met the requirements and received
approval from the ABGC to sit for the certification examination.
Subd. 7. Genetic
counseling. "Genetic
counseling" means the provision of services described in section 147F.03
to help clients and their families understand the medical, psychological, and
familial implications of genetic contributions to a disease or medical
condition.
Subd. 8. Genetic
counselor. "Genetic
counselor" means an individual licensed under this chapter to engage in
the practice of genetic counseling.
Subd. 9. Licensed
physician. "Licensed
physician" means an individual who is licensed to practice medicine under
chapter 147.
Subd. 10. NSGC. "NSGC" means the National
Society of Genetic Counselors, a professional membership association for
genetic counselors that approves continuing education programs.
Subd. 11. Qualified
supervisor. "Qualified
supervisor" means any person who is licensed under this chapter as a
genetic counselor or a physician licensed under chapter 147 to practice
medicine in Minnesota.
Subd. 12. Supervisee. "Supervisee" means a genetic
counselor with a provisional license.
Subd. 13. Supervision. "Supervision" means an
assessment of the work of the supervisee, including regular meetings and file
review, by a qualified supervisor according to the supervision contract. Supervision does not require the qualified
supervisor to be present while the supervisee provides services.
Sec. 2. [147F.03]
SCOPE OF PRACTICE.
The practice of genetic counseling by a
licensed genetic counselor includes the following services:
(1) obtaining and interpreting
individual and family medical and developmental histories;
(2) determining the mode of inheritance
and the risk of transmitting genetic conditions and birth defects;
(3) discussing the inheritance,
features, natural history, means of diagnosis, and management of conditions
with clients;
(4) identifying, coordinating,
ordering, and explaining the clinical implications of genetic laboratory tests
and other laboratory studies;
(5) assessing psychosocial factors,
including social, educational, and cultural issues;
(6) providing client-centered
counseling and anticipatory guidance to the client or family based on their
responses to the condition, risk of occurrence, or risk of recurrence;
(7) facilitating informed
decision-making about testing and management;
(8) identifying and using community
resources that provide medical, educational, financial, and psychosocial
support and advocacy; and
(9) providing accurate written medical,
genetic, and counseling information for families and health care professionals.
Sec. 3. [147F.05]
UNLICENSED PRACTICE PROHIBITED; PROTECTED TITLES AND RESTRICTIONS ON USE.
Subdivision 1. Protected
titles. No individual may use
the title "genetic counselor," "licensed genetic
counselor," "gene counselor," "genetic consultant," "genetic
assistant," "genetic associate," or any words, letters,
abbreviations, or insignia indicating or implying that the individual is
eligible for licensure by the state as a genetic counselor unless the
individual has been licensed as a genetic counselor according to this chapter.
Subd. 2. Unlicensed
practice prohibited. Effective
January 1, 2018, no individual may practice genetic counseling unless the
individual is licensed as a genetic counselor under this chapter except as
otherwise provided under this chapter.
Subd. 3. Other practitioners. (a) Nothing in this chapter shall be construed to prohibit or restrict the practice of any profession or occupation licensed or registered by the state by an individual duly licensed or registered to practice the profession or occupation or to perform any act that falls within the scope of practice of the profession or occupation.
(b) Nothing in this chapter shall be
construed to require a license under this chapter for:
(1) an individual employed as a genetic
counselor by the federal government or a federal agency if the individual is
providing services under the direction and control of the employer;
(2) a student or intern, having graduated within the past six months, or currently enrolled in an ACGC-accredited genetic counseling educational program providing genetic counseling services that are an integral part of the student's or intern's course of study, are performed under the direct supervision of a licensed genetic counselor or physician who is on duty in the assigned patient care area, and the student is identified by the title "genetic counseling intern";
(3) a visiting ABGC- or ABMG-certified
genetic counselor working as a consultant in this state who permanently resides
outside of the state, or the occasional use of services from organizations from
outside of the state that employ ABGC- or ABMG-certified genetic counselors. This is limited to practicing for 30 days
total within one calendar year. Certified
genetic counselors from outside of the state working as a consultant in this
state must be licensed in their state of residence if that credential is
available; or
(4) an individual who is licensed to
practice medicine under chapter 147.
Subd. 4. Sanctions. An individual who violates this
section is guilty of a misdemeanor and shall be subject to sanctions or actions
according to section 214.11.
Sec. 4. [147F.07]
LICENSURE REQUIREMENTS.
Subdivision 1. General
requirements for licensure. To
be eligible for licensure, an applicant, with the exception of those seeking
licensure by reciprocity under subdivision 2, must submit to the board:
(1) a completed application on forms
provided by the board along with all fees required under section 147F.17. The applicant must include:
(i) the applicant's name, Social
Security number, home address and telephone number, and business address and
telephone number if currently employed;
(ii) the name and location of the
genetic counseling or medical program the applicant completed;
(iii) a list of degrees received from
other educational institutions;
(iv) a description of the applicant's
professional training;
(v) a list of registrations,
certifications, and licenses held in other jurisdictions;
(vi) a description of any other
jurisdiction's refusal to credential the applicant;
(vii) a description of all professional
disciplinary actions initiated against the applicant in any jurisdiction; and
(viii) any history of drug or alcohol
abuse, and any misdemeanor, gross misdemeanor, or felony conviction;
(2) evidence of graduation from an
education program accredited by the ACGC or its predecessor or successor
organization;
(3) a verified copy of a valid and
current certification issued by the ABGC or ABMG as a certified genetic
counselor, or by the ABMG as a certified medical geneticist;
(4) additional information as requested
by the board, including any additional information necessary to ensure that the
applicant is able to practice with reasonable skill and safety to the public;
(5)
a signed statement verifying that the information in the application is true
and correct to the best of the applicant's knowledge and belief; and
(6) a signed waiver authorizing the
board to obtain access to the applicant's records in this or any other state in
which the applicant completed an educational program or engaged in the practice
of genetic counseling.
Subd. 2. Licensure
by reciprocity. To be
eligible for licensure by reciprocity, the applicant must hold a current genetic counselor or medical geneticist
registration or license in another state, the District of Columbia, or a
territory of the United States, whose standards for registration or licensure
are at least equivalent to those of Minnesota, and must:
(1) submit the application materials and
fees as required by subdivision 1, clauses (1), (2), and (4) to (6);
(2) provide a verified copy from the
appropriate government body of a current registration or license for the
practice of genetic counseling in another jurisdiction that has initial
registration or licensing requirements equivalent to or higher than the
requirements in subdivision 1; and
(3) provide letters of verification from
the appropriate government body in each jurisdiction in which the applicant
holds a registration or license. Each
letter must state the applicant's name, date of birth, registration or license
number, date of issuance, a statement regarding disciplinary actions, if any,
taken against the applicant, and the terms under which the registration or
license was issued.
Subd. 3. Licensure
by equivalency. (a) The board
may grant a license to an individual who does not meet the certification
requirements in subdivision 1 but who has been employed as a genetic counselor
for a minimum of ten years and provides the following documentation to the
board:
(1) proof of a master's or higher degree
in genetics or related field of study from an accredited educational
institution;
(2) proof that the individual has never
failed the ABGC or ABMG certification examination;
(3) three letters of recommendation, with at least one from an individual eligible for licensure under this chapter, and at least one from an individual certified as a genetic counselor by the ABGC or ABMG or an individual certified as a medical geneticist by the ABMG. An individual who submits a letter of recommendation must have worked with the applicant in an employment setting during the past ten years and must attest to the applicant's competency; and
(4) documentation of the completion of
100 hours of NSGC-approved continuing education credits within the past five
years.
(b) This subdivision expires January 1,
2018.
Subd. 4. License
expiration. A genetic
counselor license shall be valid for one year from the date of issuance.
Subd. 5. License
renewal. To be eligible for
license renewal, a licensed genetic counselor must submit to the board:
(1) a renewal application on a form
provided by the board;
(2) the renewal fee required under
section 147F.17;
(3) evidence of compliance with the
continuing education requirements in section 147F.11; and
(4) any additional information requested
by the board.
Sec. 5. [147F.09]
BOARD ACTION ON APPLICATIONS FOR LICENSURE.
(a) The board shall act on each
application for licensure according to paragraphs (b) to (d).
(b) The board shall determine if the
applicant meets the requirements for licensure under section 147F.07. The board may investigate information
provided by an applicant to determine whether the information is accurate and
complete.
(c) The board shall notify each
applicant in writing of action taken on the application, the grounds for
denying licensure if a license is denied, and the applicant's right to review
the board's decision under paragraph (d).
(d) Applicants denied licensure may make
a written request to the board, within 30 days of the board's notice, to appear
before the advisory council and for the advisory council to review the board's
decision to deny the applicant's license.
After reviewing the denial, the advisory council shall make a
recommendation to the board as to whether the denial shall be affirmed. Each applicant is allowed only one request
for review per licensure period.
Sec. 6. [147F.11]
CONTINUING EDUCATION REQUIREMENTS.
(a) A licensed genetic counselor must complete
a minimum of 25 hours of NSGC- or ABMG-approved continuing education units
every two years. If a licensee's renewal
term is prorated to be more or less than one year, the required number of
continuing education units is prorated proportionately.
(b) The board may grant a variance to
the continuing education requirements specified in this section if a licensee
demonstrates to the satisfaction of the board that the licensee is unable to
complete the required number of educational units during the renewal term. The board may allow the licensee to complete
the required number of continuing education units within a time frame specified
by the board. In no case shall the board
allow the licensee to complete less than the required number of continuing education
units.
Sec. 7. [147F.13]
DISCIPLINE; REPORTING.
For purposes of this chapter, licensed
genetic counselors and applicants are subject to sections 147.091 to 147.162.
Sec. 8. [147F.15]
LICENSED GENETIC COUNSELOR ADVISORY COUNCIL.
Subdivision 1. Membership. The board shall appoint a five-member
Licensed Genetic Counselor Advisory Council.
One member must be a licensed physician with experience in genetics,
three members must be licensed genetic counselors, and one member must be a
public member.
Subd. 2. Organization. The advisory council shall be
organized and administered as provided in section 15.059.
Subd. 3. Duties. The advisory council shall:
(1) advise the board regarding
standards for licensed genetic counselors;
(2) provide for distribution of
information regarding licensed genetic counselor practice standards;
(3) advise the board on enforcement of
this chapter;
(4) review applications and recommend
granting or denying licensure or license renewal;
(5)
advise the board on issues related to receiving and investigating complaints,
conducting hearings, and imposing disciplinary action in relation to complaints
against licensed genetic counselors; and
(6) perform other duties authorized for
advisory councils under chapter 214, as directed by the board.
Subd. 4. Expiration. Notwithstanding section 15.059, the
advisory council does not expire.
Sec. 9. [147F.17]
FEES.
Subdivision 1. Fees. Fees are as follows:
(1) license application fee, $200;
(2) initial licensure and annual
renewal, $150; and
(3) late fee, $75.
Subd. 2. Proration
of fees. The board may
prorate the initial license fee. All
licensees are required to pay the full fee upon license renewal.
Subd. 3. Penalty for late renewals. An application for registration renewal submitted after the deadline must be accompanied by a late fee in addition to the required fees.
Subd. 4. Nonrefundable
fees. All fees are
nonrefundable.
Subd. 5. Deposit. Fees collected by the board under this
section shall be deposited in the state government special revenue fund.
ORTHOTICS, PEDORTHICS, AND PROSTHETICS
Sec. 10. [153B.10]
SHORT TITLE.
Chapter 153B may be cited as the
"Minnesota Orthotist, Prosthetist, and Pedorthist Practice Act."
Sec. 11. [153B.15]
DEFINITIONS.
Subdivision 1. Application. For purposes of this chapter, the
following words have the meanings given.
Subd. 2. Advisory
council. "Advisory
council" means the Orthotics, Prosthetics, and Pedorthics Advisory Council
established under section 153B.25.
Subd. 3. Board. "Board" means the Board of
Podiatric Medicine.
Subd. 4. Custom-fabricated
device. "Custom-fabricated
device" means an orthosis, prosthesis, or pedorthic device for use by a
patient that is fabricated to comprehensive measurements or a mold or patient
model in accordance with a prescription and which requires on-site or in-person
clinical and technical judgment in its design, fabrication, and fitting.
Subd. 5. Licensed
orthotic-prosthetic assistant. "Licensed
orthotic-prosthetic assistant" or "assistant" means a person,
licensed by the board, who is educated and trained to participate in
comprehensive orthotic and prosthetic care while under the supervision of a
licensed orthotist or licensed prosthetist.
Assistants may perform orthotic and
prosthetic
procedures and related tasks in the management of patient care. The assistant may fabricate, repair, and
maintain orthoses and prostheses. The
use of the title "orthotic-prosthetic assistant" or representations
to the public is limited to a person who is licensed under this chapter as an
orthotic-prosthetic assistant.
Subd. 6. Licensed
orthotic fitter. "Licensed
orthotic fitter" or "fitter" means a person licensed by the
board who is educated and trained in providing certain orthoses, and is trained
to conduct patient assessments, formulate treatment plans, implement treatment
plans, perform follow-up, and practice management pursuant to a prescription. An orthotic fitter must be competent to fit
certain custom-fitted, prefabricated, and off-the-shelf orthoses as follows:
(1) cervical orthoses, except those
used to treat an unstable cervical condition;
(2) prefabricated orthoses for the upper and lower extremities, except those used in:
(i) the initial or acute treatment of
long bone fractures and dislocations;
(ii) therapeutic shoes and inserts needed
as a result of diabetes; and
(iii) functional electrical stimulation
orthoses;
(3) prefabricated spinal orthoses,
except those used in the treatment of scoliosis or unstable spinal conditions,
including halo cervical orthoses; and
(4) trusses.
The use of the title "orthotic fitter" or
representations to the public is limited to a person who is licensed under this
chapter as an orthotic fitter.
Subd. 7. Licensed
orthotist. "Licensed
orthotist" means a person licensed by the board who is educated and
trained to practice orthotics, which includes managing comprehensive orthotic
patient care pursuant to a prescription.
The use of the title "orthotist" or representations to the
public is limited to a person who is licensed under this chapter as an
orthotist.
Subd. 8. Licensed
pedorthist. "Licensed
pedorthist" means a person licensed by the board who is educated and
trained to manage comprehensive pedorthic patient care and who performs patient
assessments, formulates and implements treatment plans, and performs follow-up
and practice management pursuant to a prescription. A pedorthist may fit, fabricate, adjust, or
modify devices within the scope of the pedorthist's education and training. Use of the title "pedorthist" or
representations to the public is limited to a person who is licensed under this
chapter as a pedorthist.
Subd. 9. Licensed
prosthetist. "Licensed
prosthetist" means a person licensed by the board who is educated and
trained to manage comprehensive prosthetic patient care, and who performs
patient assessments, formulates and implements treatment plans, and performs
follow-up and practice management pursuant to a prescription. Use of the title "prosthetist" or
representations to the public is limited to a person who is licensed under this
chapter as a prosthetist.
Subd. 10. Licensed
prosthetist orthotist. "Licensed
prosthetist orthotist" means a person licensed by the board who is
educated and trained to manage comprehensive prosthetic and orthotic patient
care, and who performs patient assessments, formulates and implements treatment
plans, and performs follow-up and practice management pursuant to a
prescription. Use of the title
"prosthetist orthotist" or representations to the public is limited
to a person who is licensed under this chapter as a prosthetist orthotist.
Subd. 11. NCOPE. "NCOPE" means National
Commission on Orthotic and Prosthetic Education, an accreditation program that ensures
educational institutions and residency programs meet the minimum standards of
quality to prepare individuals to enter the orthotic, prosthetic, and pedorthic
professions.
Subd. 12. Orthosis. "Orthosis" means an external
device that is custom-fabricated or custom-fitted to a specific patient based
on the patient's unique physical condition and is applied to a part of the body
to help correct a deformity, provide support and protection, restrict motion,
improve function, or relieve symptoms of a disease, syndrome, injury, or
postoperative condition.
Subd. 13. Orthotics. "Orthotics" means the
science and practice of evaluating, measuring, designing, fabricating,
assembling, fitting, adjusting, or servicing an orthosis pursuant to a
prescription. The practice of orthotics
includes providing the initial training necessary for fitting an orthotic
device for the support, correction, or alleviation of neuromuscular or
musculoskeletal dysfunction, disease, injury, or deformity.
Subd. 14. Over-the-counter. "Over-the-counter" means a
prefabricated, mass-produced item that is prepackaged, requires no professional
advice or judgment in size selection or use, and is currently available at
retail stores without a prescription. Over-the-counter
items are not regulated by this chapter.
Subd. 15. Off-the-shelf. "Off-the-shelf" means a
prefabricated device sized or modified for the patient's use pursuant to a
prescription and that requires changes to be made by a qualified practitioner
to achieve an individual fit, such as requiring the item to be trimmed, bent,
or molded with or without heat, or requiring any other alterations beyond self
adjustment.
Subd. 16. Pedorthic
device. "Pedorthic
device" means below-the-ankle partial foot prostheses for transmetatarsal
and more distal amputations, foot orthoses, and subtalar-control foot orthoses
to control the range of motion of the subtalar joint. A prescription is required for any pedorthic
device, modification, or prefabricated below-the-knee orthosis addressing a
medical condition that originates at the ankle or below. Pedorthic devices do not include
nontherapeutic inlays or footwear regardless of method of manufacture;
unmodified, nontherapeutic over-the-counter shoes; or prefabricated foot care
products.
Subd. 17. Pedorthics. "Pedorthics" means the
science and practice of evaluating, measuring, designing, fabricating,
assembling, fitting, adjusting, or servicing a pedorthic device pursuant to a
prescription for the correction or alleviation of neuromuscular or
musculoskeletal dysfunction, disease, injury, or deformity. The practice of pedorthics includes providing
patient care and services pursuant to a prescription to prevent or ameliorate
painful or disabling conditions of the foot and ankle.
Subd. 18. Prescription. "Prescription" means an
order deemed medically necessary by a physician, podiatric physician,
osteopathic physician, or a licensed health care provider who has authority in
this state to prescribe orthotic and prosthetic devices, supplies, and
services.
Subd. 19. Prosthesis. "Prosthesis" means a
custom-designed, fabricated, fitted, or modified device to treat partial or
total limb loss for purposes of restoring physiological function or cosmesis. Prosthesis does not include artificial eyes,
ears, fingers, or toes; dental appliances; external breast prosthesis; or
cosmetic devices that do not have a significant impact on the musculoskeletal
functions of the body.
Subd. 20. Prosthetics. "Prosthetics" means the
science and practice of evaluating, measuring, designing, fabricating,
assembling, fitting, adjusting, or servicing a prosthesis pursuant to a
prescription. It includes providing the
initial training necessary to fit a prosthesis in order to replace external
parts of a human body lost due to amputation, congenital deformities, or
absence.
Subd. 21. Resident. "Resident" means a person
who has completed a NCOPE-approved education program in orthotics or
prosthetics and is receiving clinical training in a residency accredited by
NCOPE.
Subd. 22. Residency. "Residency" means a minimum
of an NCOPE-approved program to acquire practical clinical training in
orthotics and prosthetics in a patient care setting.
Subd. 23. Supervisor. "Supervisor" means the
licensed orthotist, prosthetist, or pedorthist who oversees and is responsible
for the delivery of appropriate, effective, ethical, and safe orthotic,
prosthetic, or pedorthic patient care.
Sec. 12. [153B.20]
EXCEPTIONS.
Nothing in this chapter shall prohibit:
(1) a physician, osteopathic physician,
or podiatric physician licensed by the state of Minnesota from providing
services within the physician's scope of practice;
(2) a health care professional licensed
by the state of Minnesota, including, but not limited to, chiropractors,
physical therapists, and occupational therapy practitioners from providing
services within the professional's scope of practice, or an individual working
under the supervision of a licensed physician or podiatric physician;
(3) the practice of orthotics,
prosthetics, or pedorthics by a person who is employed by the federal
government or any bureau, division, or agency of the federal government while
in the discharge of the employee's official duties;
(4) the practice of orthotics,
prosthetics, or pedorthics by:
(i) a student enrolled in an accredited
or approved orthotics, prosthetics, or pedorthics education program who is
performing activities required by the program;
(ii) a resident enrolled in an
NCOPE-accredited residency program; or
(iii) a person working in a qualified,
supervised work experience or internship who is obtaining the clinical
experience necessary for licensure under this chapter; or
(5) an orthotist, prosthetist,
prosthetist orthotist, pedorthist, assistant, or fitter who is licensed in
another state or territory of the United States or in another country that has
equivalent licensure requirements as approved by the board from providing
services within the professional's scope of practice subject to this chapter,
if the individual is qualified and has applied for licensure under this chapter. The individual shall be allowed to practice
for no longer than six months following the filing of the application for
licensure, unless the individual withdraws the application for licensure or the
board denies the license.
Sec. 13. [153B.25]
ORTHOTICS, PROSTHETICS, AND PEDORTHICS ADVISORY COUNCIL.
Subdivision 1. Creation;
membership. (a) There is
established an Orthotics, Prosthetics, and Pedorthics Advisory Council that shall
consist of seven voting members appointed by the board. Five members shall be licensed and practicing
orthotists, prosthetists, or pedorthists.
Each profession shall be represented on the advisory council. One member shall be a Minnesota-licensed doctor
of podiatric medicine who is also a member of the Board of Podiatric Medicine,
and one member shall be a public member.
(b) The council shall be organized and
administered under section 15.059.
Subd. 2. Duties. The advisory council shall:
(1) advise the board on enforcement of
the provisions contained in this chapter;
(2) review reports of investigations or
complaints relating to individuals and make recommendations to the board as to
whether a license should be denied or disciplinary action taken against an
individual;
(3) advise the board regarding
standards for licensure of professionals under this chapter; and
(4) perform other duties authorized for
advisory councils by chapter 214, as directed by the board.
Subd. 3. Chair. The council must elect a chair from
among its members.
Subd. 4. Administrative
provisions. The Board of
Podiatric Medicine must provide meeting space and administrative services for
the council.
Sec. 14. [153B.30]
LICENSURE.
Subdivision 1. Application. An application for a license shall be
submitted to the board in the format required by the board and shall be
accompanied by the required fee, which is nonrefundable.
Subd. 2. Qualifications. (a) To be eligible for licensure as an
orthotist, prosthetist, or prosthetist orthotist, an applicant shall meet
orthotist, prosthetist, or prosthetist orthotist certification requirements of
either the American Board for Certification in Orthotics, Prosthetics, and
Pedorthics or the Board of Certification/Accreditation requirements in effect
at the time of the individual's application for licensure and be in good
standing with the certifying board.
(b) To be eligible for licensure as a
pedorthist, an applicant shall meet the pedorthist certification requirements
of either the American Board for Certification in Orthotics, Prosthetics, and
Pedorthics or the Board of Certification/Accreditation that are in effect at
the time of the individual's application for licensure and be in good standing
with the certifying board.
(c) To be eligible for licensure as an
orthotic or prosthetic assistant, an applicant shall meet the orthotic or
prosthetic assistant certification requirements of the American Board for
Certification in Orthotics, Prosthetics, and Pedorthics that are in effect at
the time of the individual's application for licensure and be in good standing
with the certifying board.
(d) To be eligible for licensure as an
orthotic fitter, an applicant shall meet the orthotic fitter certification
requirements of either the American Board for Certification in Orthotics,
Prosthetics, and Pedorthics or the Board of Certification/Accreditation that
are in effect at the time of the individual's application for licensure and be
in good standing with the certifying board.
Subd. 3. License
term. A license to practice
is valid for a term of up to 24 months beginning on January 1 or commencing
after initially fulfilling the license requirements and ending on December 31
of the following year.
Sec. 15. [153B.35]
EMPLOYMENT BY AN ACCREDITED FACILITY; SCOPE OF PRACTICE.
A licensed orthotist, prosthetist,
pedorthist, assistant, or orthotic fitter may provide limited, supervised
orthotic or prosthetic patient care services beyond their licensed scope of
practice if all of the following conditions are met:
(1)
the licensee is employed by a patient care facility that is accredited by a
national accrediting organization in orthotics, prosthetics, and pedorthics;
(2) written objective criteria are
documented by the accredited facility to describe the knowledge and skills
required by the licensee to demonstrate competency to provide additional
specific and limited orthotic or prosthetic patient care services that are
outside the licensee's scope of practice;
(3) the licensee provides orthotic or
prosthetic patient care only at the direction of a supervisor who is licensed
as an orthotist, pedorthist, or prosthetist who is employed by the facility to
provide the specific orthotic or prosthetic patient care or services that are
outside the licensee's scope of practice; and
(4) the supervised orthotic or
prosthetic patient care occurs in compliance with facility accreditation
standards.
Sec. 16. [153B.40]
CONTINUING EDUCATION.
Subdivision 1. Requirement. Each licensee shall obtain the number
of continuing education hours required by the certifying board to maintain
certification status pursuant to the specific license category.
Subd. 2. Proof
of attendance. A licensee
must submit to the board proof of attendance at approved continuing education
programs during the license renewal period in which it was attended in the form
of a certificate, statement of continuing education credits from the American
Board for Certification in Orthotics, Prosthetics, and Pedorthics or the Board
of Certification/Accreditation, descriptive receipt, or affidavit. The board may conduct random audits.
Subd. 3. Extension
of continuing education requirements.
For good cause, a licensee may apply to the board for a six-month
extension of the deadline for obtaining the required number of continuing
education credits. No more than two
consecutive extensions may be granted. For
purposes of this subdivision, "good cause" includes unforeseen
hardships such as illness, family emergency, or military call-up.
Sec. 17. [153B.45]
LICENSE RENEWAL.
Subdivision 1. Submission
of license renewal application. A
licensee must submit to the board a license renewal application on a form
provided by the board together with the license renewal fee. The completed form must be postmarked no
later than January 1 in the year of renewal.
The form must be signed by the licensee in the place provided for the
renewal applicant's signature, include evidence of participation in approved
continuing education programs, and any other information as the board may
reasonably require.
Subd. 2. Renewal application postmarked after
January 1. A renewal
application postmarked after January 1 in the renewal year shall
be returned to the licensee for addition of the late renewal fee. A license renewal application postmarked
after January 1 in the renewal year is not complete until the late renewal fee
has been received by the board.
Subd. 3. Failure
to submit renewal application. (a)
At any time after January 1 of the applicable renewal year, the board shall
send notice to a licensee who has failed to apply for license renewal. The notice shall be mailed to the licensee at
the last address on file with the board and shall include the following
information:
(1) that the licensee has failed to
submit application for license renewal;
(2) the amount of renewal and late
fees;
(3) information about continuing
education that must be submitted in order for the license to be renewed;
(4)
that the licensee must respond within 30 calendar days after the notice was
sent by the board; and
(5) that the licensee may voluntarily
terminate the license by notifying the board or may apply for license renewal
by sending the board a completed renewal application, license renewal and late
fees, and evidence of compliance with continuing education requirements.
(b) Failure by the licensee to notify
the board of the licensee's intent to voluntarily terminate the license or to
submit a license renewal application shall result in expiration of the license
and termination of the right to practice.
The expiration of the license and termination of the right to practice
shall not be considered disciplinary action against the licensee.
(c) A license that has been expired
under this subdivision may be reinstated.
Sec. 18. [153B.50]
NAME AND ADDRESS CHANGE.
(a) A licensee who has changed names
must notify the board in writing within 90 days and request a revised license. The board may require official documentation
of the legal name change.
(b) A licensee must maintain with the
board a correct mailing address to receive board communications and notices. A licensee who has changed addresses must
notify the board in writing within 90 days.
Mailing a notice by United States mail to a licensee's last known mailing
address constitutes valid mailing.
Sec. 19. [153B.55]
INACTIVE STATUS.
(a) A licensee who notifies the board
in the format required by the board may elect to place the licensee's
credential on inactive status and shall be excused from payment of renewal fees
until the licensee notifies the board in the format required by the board of
the licensee's plan to return to practice.
(b) A person requesting restoration
from inactive status shall be required to pay the current renewal fee and
comply with section 153B.45.
(c) A person whose license has been
placed on inactive status shall not practice in this state.
Sec. 20. [153B.60]
LICENSE LAPSE DUE TO MILITARY SERVICE.
A licensee whose license has expired
while on active duty in the armed forces of the United States, with the
National Guard while called into service or training, or while in training or
education preliminary to induction into military service may have the
licensee's license renewed or restored without paying a late fee or license
restoration fee if the licensee provides verification to the board within two
years of the termination of service obligation.
Sec. 21. [153B.65]
ENDORSEMENT.
The board may license, without
examination and on payment of the required fee, an applicant who is an orthotist,
prosthetist, prosthetist orthotist, pedorthist, assistant, or fitter who is
certified by the American Board for Certification in Orthotics, Prosthetics,
and Pedorthics or a national certification organization with educational,
experiential, and testing standards equal to or higher than the licensing
requirements in Minnesota.
Sec. 22. [153B.70]
GROUNDS FOR DISCIPLINARY ACTION.
(a) The board may refuse to issue or
renew a license, revoke or suspend a license, or place on probation or
reprimand a licensee for one or any combination of the following:
(1)
making a material misstatement in furnishing information to the board;
(2) violating or intentionally
disregarding the requirements of this chapter;
(3) conviction of a crime, including a
finding or verdict of guilt, an admission of guilt, or a no-contest plea, in
this state or elsewhere, reasonably related to the practice of the profession. Conviction, as used in this clause, includes
a conviction of an offense which, if committed in this state, would be deemed a
felony, gross misdemeanor, or misdemeanor, without regard to its designation
elsewhere, or a criminal proceeding where a finding or verdict of guilty is
made or returned but the adjudication of guilt is either withheld or not
entered;
(4) making a misrepresentation in order
to obtain or renew a license;
(5) displaying a pattern of practice or
other behavior that demonstrates incapacity or incompetence to practice;
(6) aiding or assisting another person
in violating the provisions of this chapter;
(7) failing to provide information
within 60 days in response to a written request from the board, including
documentation of completion of continuing education requirements;
(8) engaging in dishonorable, unethical,
or unprofessional conduct;
(9) engaging in conduct of a character
likely to deceive, defraud, or harm the public;
(10) inability to practice due to
habitual intoxication, addiction to drugs, or mental or physical illness;
(11) being disciplined by another state
or territory of the United States, the federal government, a national
certification organization, or foreign nation, if at least one of the grounds
for the discipline is the same or substantially equivalent to one of the
grounds in this section;
(12) directly or indirectly giving to or
receiving from a person, firm, corporation, partnership, or association a fee,
commission, rebate, or other form of compensation for professional services not
actually or personally rendered;
(13) incurring a finding by the board
that the licensee, after the licensee has been placed on probationary status,
has violated the conditions of the probation;
(14) abandoning a patient or client;
(15) willfully making or filing false
records or reports in the course of the licensee's practice including, but not
limited to, false records or reports filed with state or federal agencies;
(16) willfully failing to report child
maltreatment as required under the Maltreatment of Minors Act, section 626.556;
or
(17) soliciting professional services using
false or misleading advertising.
(b) A license to practice is
automatically suspended if (1) a guardian of a licensee is appointed by order
of a court pursuant to sections 524.5-101 to 524.5-502, for reasons other than
the minority of the licensee, or (2) the licensee is committed by order of a
court pursuant to chapter 253B. The
license remains suspended until the licensee is restored to capacity by a court
and, upon petition by the licensee, the suspension is terminated by the board
after a hearing. The licensee may be
reinstated to practice, either with or without restrictions, by demonstrating
clear and convincing evidence of rehabilitation. The regulated person is not required to prove
rehabilitation if the subsequent court decision overturns previous court
findings of public risk.
(c)
If the board has probable cause to believe that a licensee or applicant has
violated paragraph (a), clause (10), it may direct the person to submit to a
mental or physical examination. For the
purpose of this section, every person is deemed to have consented to submit to
a mental or physical examination when directed in writing by the board and to
have waived all objections to the admissibility of the examining physician's
testimony or examination report on the grounds that the testimony or report
constitutes a privileged communication. Failure
of a regulated person to submit to an examination when directed constitutes an
admission of the allegations against the person, unless the failure was due to
circumstances beyond the person's control, in which case a default and final
order may be entered without the taking of testimony or presentation of
evidence. A regulated person affected
under this paragraph shall at reasonable intervals be given an opportunity to
demonstrate that the person can resume the competent practice of the regulated
profession with reasonable skill and safety to the public. In any proceeding under this paragraph,
neither the record of proceedings nor the orders entered by the board shall be
used against a regulated person in any other proceeding.
(d) In addition to ordering a physical
or mental examination, the board may, notwithstanding section 13.384 or
144.293, or any other law limiting access to medical or other health data,
obtain medical data and health records relating to a licensee or applicant
without the person's or applicant's consent if the board has probable cause to
believe that a licensee is subject to paragraph (a), clause (10). The medical data may be requested from a provider
as defined in section 144.291, subdivision 2, paragraph (i), an insurance
company, or a government agency, including the Department of Human Services. A provider, insurance company, or government
agency shall comply with any written request of the board under this section
and is not liable in any action for damages for releasing the data requested by
the board if the data are released pursuant to a written request under this
section, unless the information is false and the provider giving the information
knew, or had reason to know, the information was false. Information obtained under this section is
private data on individuals as defined in section 13.02.
(e) If the board issues an order of
immediate suspension of a license, a hearing must be held within 30 days of the
suspension and completed without delay.
Sec. 23. [153B.75]
INVESTIGATION; NOTICE AND HEARINGS.
The board has the authority to
investigate alleged violations of this chapter, conduct hearings, and impose
corrective or disciplinary action as provided in section 214.103.
Sec. 24. [153B.80]
UNLICENSED PRACTICE.
Subdivision 1. License
required. Effective January
1, 2018, no individual shall practice as an orthotist, prosthetist, prosthetist
orthotist, pedorthist, orthotic or prosthetic assistant, or orthotic fitter,
unless the individual holds a valid license issued by the board under this
chapter, except as permitted under section 153B.20 or 153B.35.
Subd. 2. Designation. No individual shall represent
themselves to the public as a licensed orthotist, prosthetist, prosthetist
orthotist, pedorthist, orthotic or prosthetic assistant, or an orthotic fitter,
unless the individual is licensed under this chapter.
Subd. 3. Penalties. Any individual who violates this
section is guilty of a misdemeanor. The
board shall have the authority to seek a cease and desist order against any
individual who is engaged in the unlicensed practice of a profession regulated
by the board under this chapter.
Sec. 25. [153B.85]
FEES.
Subdivision 1. Fees. (a) The application fee for initial
licensure shall not exceed $600.
(b) The biennial renewal fee for a
license to practice as an orthotist, prosthetist, prosthetist orthotist, or
pedorthist shall not exceed $600.
(c)
The biennial renewal fee for a license to practice as an assistant or a fitter
shall not exceed $300.
(d) The fee for license restoration
shall not exceed $600.
(e) The fee for license verification
shall not exceed $30.
(f) The fee to obtain a list of
licensees shall not exceed $25.
Subd. 2. Proration
of fees. For the first
renewal period following initial licensure, the renewal fee is the fee
specified in subdivision 1, paragraph (b) or (c), prorated to the nearest
dollar that is represented by the ratio of the number of days the license is
held in the initial licensure period to 730 days.
Subd. 3. Late fee. The fee for late license renewal is
the license renewal fee in effect at the time of renewal plus $100.
Subd. 4. Nonrefundable
fees. All fees are
nonrefundable.
Subd. 5. Deposit. Fees collected by the board under this
section shall be deposited in the state government special revenue fund.
Sec. 26. Minnesota Statutes 2014, section 214.075, subdivision 3, is amended to read:
Subd. 3. Consent form; fees; fingerprints. (a) In order to effectuate the federal and state level, fingerprint‑based criminal background check, the applicant or licensee must submit a completed criminal history records check consent form and a full set of fingerprints to the respective health-related licensing board or a designee in the manner and form specified by the board.
(b) The applicant or licensee is responsible for all fees associated with preparation of the fingerprints, the criminal records check consent form, and the criminal background check. The fees for the criminal records background check shall be set by the BCA and the FBI and are not refundable. The fees shall be submitted to the respective health-related licensing board by the applicant or licensee as prescribed by the respective board.
(c) All fees received by the health-related
licensing boards under this subdivision shall be deposited in a
dedicated account accounts in the special revenue fund and are
appropriated to the Board of Nursing Home Administrators for the administrative
services unit health-related licensing boards to pay for the
criminal background checks conducted by the Bureau of Criminal Apprehension and
Federal Bureau of Investigation.
Sec. 27. FIRST
APPOINTMENTS, FIRST MEETING, AND FIRST CHAIR OF THE ORTHOTICS, PROSTHETICS, AND
PEDORTHICS ADVISORY COUNCIL.
The Board of Podiatric Medicine shall
make its first appointments authorized under Minnesota Statutes, section
153B.25, to the Orthotics, Prosthetics, and Pedorthics Advisory Council, by
September 1, 2016. The board shall
designate four of its first appointees to serve terms that are coterminous with
the governor. The chair of the Board of
Podiatric Medicine or the chair's designee shall convene the first meeting of
the council by November 1, 2016. The
council must elect a chair from among its members at the first meeting of the
council.
Sec. 28. INITIAL
APPOINTMENTS; FIRST MEETING; AND FIRST CHAIR OF THE LICENSED GENETIC COUNSELOR
ADVISORY COUNCIL.
The Board of Medical Practice shall make
its first appointments authorized under Minnesota Statutes, section 147F.15, to
the Licensed Genetic Counselor Advisory Council by December 1, 2016. The chair of the Board of Medical Practice or
the chair's designee shall convene the first meeting of the council by March 1,
2017. The council must elect a chair
from its members at the first meeting of the council.
ARTICLE 22
HUMAN SERVICES FORECAST ADJUSTMENTS
|
Section 1. HUMAN
SERVICES APPROPRIATION. |
The sums shown in the columns marked
"Appropriations" are added to or, if shown in parentheses, subtracted
from the appropriations in Laws 2015, chapter 71, article 13, from the general
fund or any fund named to the Department of Human Services for the purposes
specified in this article, to be available for the fiscal year indicated for
each purpose. The figures
"2016" and "2017" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June
30, 2016, or June 30, 2017, respectively.
"The first year" is fiscal year 2016. "The second year" is fiscal year
2017. "The biennium" is fiscal
years 2016 and 2017.
|
|
|
|
APPROPRIATIONS |
||
|
|
|
|
Available for the Year |
||
|
|
|
|
Ending June 30 |
||
|
|
|
|
2016 |
2017 |
|
|
Sec. 2. COMMISSIONER
OF HUMAN SERVICES |
|
|
|
|
|
Subdivision 1. Total
Appropriation |
|
$(615,912,000) |
|
$(518,891,000) |
|
Appropriations
by Fund |
||
|
|
2016 |
2017
|
|
General Fund |
(307,806,000)
|
(246,029,000)
|
|
Health Care Access Fund |
(289,770,000)
|
(277,101,000)
|
|
Federal TANF |
(18,336,000)
|
4,239,000
|
|
Subd. 2. Forecasted
Programs |
|
|
|
|
|
(a) MFIP/DWP |
|
|
|
|
|
Appropriations
by Fund |
||
|
General Fund |
9,833,000
|
(8,799,000)
|
|
Federal TANF |
(20,225,000)
|
4,212,000
|
|
(b) MFIP Child Care Assistance |
|
(23,094,000)
|
|
(7,760,000)
|
|
(c) General Assistance |
|
(2,120,000)
|
|
(1,078,000)
|
|
(d) Minnesota Supplemental Aid |
|
(1,613,000)
|
|
(1,650,000)
|
|
(e) Group Residential Housing |
|
(8,101,000)
|
|
(7,954,000)
|
|
(f) Northstar Care for Children |
|
2,231,000
|
|
4,496,000
|
|
(g) MinnesotaCare |
|
(227,821,000)
|
|
(230,027,000)
|
These appropriations are from the health
care access fund.
|
(h)
Medical Assistance |
|
|
|
|
|
Appropriations
by Fund |
||
|
General Fund |
(294,773,000)
|
(243,700,000)
|
|
Health Care Access Fund |
(61,949,000)
|
(47,074,000)
|
|
(i) Alternative Care Program |
|
-0-
|
|
-0-
|
|
(j) CCDTF Entitlements |
|
9,831,000
|
|
20,416,000
|
|
Subd. 3. Technical
Activities |
|
1,889,000
|
|
27,000
|
These appropriations are from the federal
TANF fund.
Sec. 3. EFFECTIVE
DATE.
Sections 1 and 2 are effective the day
following final enactment.
ARTICLE 23
HEALTH AND HUMAN SERVICES APPROPRIATIONS
|
Section 1. HEALTH
AND HUMAN SERVICES APPROPRIATIONS.
|
The sums shown in the columns marked
"Appropriations" are added to or, if shown in parentheses, subtracted
from the appropriations in Laws 2015, chapter 71, article 14, to the agencies
and for the purposes specified in this article.
The appropriations are from the general fund or other named fund and are
available for the fiscal years indicated for each purpose. The figures "2016" and
"2017" used in this article mean that the addition to or subtraction
from the appropriation listed under them is available for the fiscal year
ending June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations and reductions to
appropriations for the fiscal year ending June 30, 2016, are effective the day
following final enactment unless a different effective date is explicit.
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Available for the Year |
|
|
|
|
|
Ending June 30 |
|
|
|
|
|
2016 |
2017 |
|
Sec. 2. COMMISSIONER
OF HUMAN SERVICES |
|
|
|
|
|
Subdivision 1. Total
Appropriation |
|
$6,851,000 |
|
$74,660,000 |
|
(a) Operations |
|
|
|
|
|
Appropriations
by Fund |
||
|
General |
-0-
|
558,000
|
|
Health Care Access |
-0-
|
427,000
|
Base
Adjustment. The general fund
base is decreased by $482,000 in fiscal year 2018 and $484,000 in fiscal year
2019. The health care access fund base
is decreased by $376,000 in fiscal year 2018 and $376,000 in fiscal year 2019.
|
(b) Children and Families |
|
-0-
|
|
132,000
|
Base
Adjustment. The general fund
base is decreased by $132,000 in fiscal years 2018 and 2019.
|
(c) Health Care |
|
-0-
|
|
374,000
|
Base
Adjustment. The general fund
base is decreased by $43,000 in fiscal year 2018 and $43,000 in fiscal year
2019.
|
(d) Continuing Care |
|
-0-
|
|
1,000
|
Base
Adjustment. The general fund
base is increased by $1,000 in fiscal year 2018 and increased by $3,000 in
fiscal year 2019.
|
(e) Community Supports |
|
-0-
|
|
74,000
|
Base
Adjustment. The general fund
base is increased by $469,000 in fiscal year 2018 and $429,000 in fiscal year
2019.
|
Subd. 3. Forecasted
Programs |
|
|
|
|
|
(a) Northstar Care for Children |
|
-0-
|
|
-0-
|
Base
Adjustment. The general fund
base is increased by $8,802,000 in fiscal year 2018 and increased by
$10,927,000 in fiscal year 2019.
|
(b) MinnesotaCare |
|
-0-
|
|
33,000
|
This appropriation is from the health care
access fund.
|
(c) Medical Assistance |
|
|
|
|
CCDTF
Transfer. Notwithstanding
Minnesota Statutes, section 254B.06, subdivision 1, in fiscal year 2017, the
commissioner shall transfer $2,000,000 from the consolidated chemical
dependency treatment fund administrative account in the special revenue fund to
the general fund. This is a onetime
transfer.
|
Subd. 4. Grant
Programs |
|
|
|
|
|
(a) Children's Services Grants |
|
-0-
|
|
800,000
|
American
Indian Child Welfare Initiative. $800,000
in fiscal year 2017 is for planning efforts to expand the American Indian Child
Welfare Initiative authorized under Minnesota Statutes, section 256.01, subdivision
14b. Of this appropriation, $400,000 is
for grants to the Mille Lacs Band of Ojibwe and $400,000 is for grants to the
Red Lake Nation. This is a onetime
appropriation.
Base
Adjustment. The general fund
base is decreased by $800,000 in fiscal year 2018 and $800,000 in fiscal year
2019.
|
(b) Child and Community Service Grants |
|
-0-
|
|
1,900,000
|
White
Earth Band of Ojibwe Human Services Initiative Project. $1,400,000 in fiscal year 2017 is for
a grant to the White Earth Band of Ojibwe for the direct implementation and
administrative costs of the White Earth Human Services Initiative Project
authorized under Laws 2011, First Special Session chapter 9, article 9, section
18.
Red
Lake Nation Human Services Initiative Project. $500,000 in fiscal year 2017 is for a
grant to the Red Lake Nation for the direct implementation and administrative
costs of the Red Lake Human Services Initiative Project authorized under
Minnesota Statutes, section 256.01, subdivision 2, paragraph (a), clause (7).
|
(c) Child and Economic Support Grants |
|
-0-
|
|
66,000
|
Safe
Harbor for Sexually Exploited Youth.
$33,000 in fiscal year 2017 is for emergency shelter and
transitional and long-term housing beds for sexually exploited youth and youth
at risk of sexual exploitation, and for statewide youth outreach workers to
connect sexually exploited youth with shelter and services. The base for this appropriation is $750,000
in fiscal year 2018 and $750,000 in fiscal year 2019. The commissioner shall not use any portion of
this appropriation nor of the base amounts in fiscal year 2018 and fiscal year
2019 for administrative costs.
Base
Level Adjustment. The general
fund base is increased by $2,134,000 in fiscal year 2018 and $2,134,000 in
fiscal year 2019.
|
(d)
Adult Mental Health Grants |
|
-0-
|
|
200,000
|
Adult
Mental Illness Crisis Housing Assistance Program. The general fund appropriation for the
adult mental illness crisis housing assistance program is decreased by $300,000
in fiscal year 2017. The general fund
appropriation is increased by $300,000 in fiscal year 2017 for expanding
eligibility to include persons with serious mental illness under Minnesota
Statutes, section 245.99, subdivision 2.
Integrated
Behavioral Health Care Coordination Demonstration Project. $200,000 in fiscal year 2017 is for a
grant to the Zumbro Valley Health Center.
The grant shall be used to continue a pilot project to test an
integrated behavioral health care coordination model. The grant recipient must report measurable
outcomes to the commissioner of human services by December 1, 2018. This is a onetime appropriation and is
available until June 30, 2018.
Base
Adjustment. The general fund
base is decreased by $200,000 in fiscal year 2018 and is decreased by $200,000
in fiscal year 2019.
|
(e) Child Mental Health Grants |
|
-0-
|
|
33,000
|
School-Linked
Mental Health Grants. $33,000
in fiscal year 2017 is for children's mental health grants under Minnesota
Statutes, section 245.4889, subdivision 1, paragraph (b), clause (8), for current
grantees to expand services to school buildings, school districts, or counties
that do not have school-linked mental health available, and to provide training
to grantees on the use of evidence-based practices. The general fund base for this appropriation
is $1,450,000 in fiscal year 2018 and $1,450,000 in fiscal year 2019. The amount in fiscal year 2019 shall be
awarded through a competitive process open to all eligible grantees as part of
a new grant cycle. This appropriation
does not include additional administrative money.
Base
Adjustment. The general fund
base is increased by $1,417,000 in fiscal years 2018 and 2019.
|
(f) Chemical Dependency Treatment Support Grants |
|
-0-
|
|
34,000
|
Peer
Specialists. $34,000 in
fiscal year 2017 from the general fund is for grants to recovery community
organizations to train, hire, and supervise peer specialists to work with
underserved populations as part of the continuum of care for substance use
disorders. Recovery community
organizations located in Rochester, Moorhead, and the Twin Cities metropolitan
area are
eligible
to receive grant funds. The general fund
base for this appropriation is $725,000 in fiscal year 2018 and $725,000 in
fiscal year 2019.
Base
Adjustment. The general fund
base is increased by $691,000 in fiscal years 2018 and 2019.
|
Subd. 5. DCT
State-Operated Services |
|
|
|
|
Allocation
of Funds. The commissioner
may allocate the appropriations in this subdivision to ensure a safe
environment at the Minnesota Security Hospital and other hospitals in direct
care and treatment state-operated services.
Any reallocation of the appropriations under this subdivision must be
reported in the report required under Minnesota Statutes, section 256.01,
subdivision 41.
|
(a) DCT State-Operated Services Mental Health |
|
1,256,000
|
|
33,830,000
|
Restore
Funds Transferred to Minnesota State-Operated Community Services. $14,000,000 in fiscal year 2017 is to
restore funds transferred to the enterprise fund for state-operated community
services in fiscal year 2016. This is a
onetime appropriation.
Community Behavioral Health Hospitals Full Capacity Staffing. $19,678,000 in fiscal year 2017 is to increase staffing to a level sufficient to operate the community behavioral health hospitals at full licensed capacity. The base for this appropriation is $25,879,000 in fiscal year 2018 and $25,879,000 in fiscal year 2019.
Anoka-Metro
Regional Treatment Center Nursing Float Pool. $788,000 in fiscal year 2017 is for a
nursing float pool for weekend coverage at the Anoka-Metro Regional Treatment
Center. The base for this appropriation
is $1,526,000 in fiscal year 2018 and $1,526,000 in fiscal year 2019.
Anoka-Metro
Regional Treatment Center Increased Clinical Oversight. $336,000 in fiscal year 2017 is for
increased clinical oversight at the Anoka-Metro Regional Treatment Center. The base for this appropriation is $632,000
in fiscal year 2018 and $632,000 in fiscal year 2019.
Base
Adjustment. The general fund
base is decreased by $7,149,000 in fiscal year 2018 and $7,149,000 in fiscal
year 2019.
|
(b) DCT State-Operated Services Enterprise Services |
|
-0-
|
|
14,000,000
|
State-Operated
Community Services. $14,000,000
in fiscal year 2017 is for the Minnesota state-operated community services
program. This is a onetime appropriation. The commissioner must
transfer
$14,000,000 in fiscal year 2017 to the enterprise fund for Minnesota
state-operated community services. This
is a onetime transfer.
Base Adjustment. The general fund base is decreased by $14,000,000
in fiscal year 2018 and $14,000,000 in fiscal year 2019.
|
(c) DCT State-Operated Services Minnesota Security Hospital |
2,200,000
|
|
10,056,000
|
Competency
Restoration Program. $6,754,000
in fiscal year 2017 is for the development of a new residential competency
restoration program to be operated by state-operated forensic services. The commissioner shall use this appropriation
to make available 20 hospital beds at Anoka Metro Regional Treatment Center and
12 secure beds at the Minnesota Security Hospital. The base for this appropriation is $8,423,000
in fiscal year 2018 and $8,423,000 in fiscal year 2019.
Base
Adjustment. The general fund
base is increased by $2,490,000 in fiscal year 2018 and $2,490,000 in fiscal
year 2019.
|
Subd. 6. DCT
Minnesota Sex Offender Program |
|
3,395,000
|
|
4,669,000
|
Base
Adjustment. The general fund
base is increased by $788,000 in fiscal year 2018 and $788,000 in fiscal year
2019.
|
Sec. 3. COMMISSIONER
OF HEALTH |
|
|
|
|
|
Subdivision 1. Total
Appropriation |
|
$-0- |
|
$2,214,000 |
|
Appropriations
by Fund |
||
|
|
2016 |
2017
|
|
General |
-0-
|
33,000
|
|
State Government Special Revenue |
-0-
|
146,000
|
|
Health Care Access |
-0-
|
2,035,000
|
The appropriations for each purpose are
shown in the following subdivisions.
|
Subd. 2. Health
Improvement |
|
|
|
|
|
Appropriations
by Fund |
||
|
General |
-0-
|
33,000
|
|
Health Care Access |
-0-
|
2,035,000
|
Safe
Harbor for Sexually Exploited Youth.
$33,000 in fiscal year 2017 is from the general fund for trauma-informed,
culturally specific services for exploited youth. The base for this
appropriation
is $750,000 in fiscal year 2018 and $750,000 in fiscal year 2019. Neither the appropriation in fiscal year 2017
nor the base amounts in fiscal years 2018 and 2019 may be used for
administration.
Greater
Minnesota Family Medicine Residency.
$1,035,000 in fiscal year 2017 is from the health care access
fund for the greater Minnesota family medicine residency grant program under
Minnesota Statutes, section 144.1912. The
commissioner may use up to $35,000 for administration.
Medical
Education. $1,000,000 in
fiscal year 2017 from the health care access fund is for the medical education
program under Minnesota Statutes, section 62J.692.
Base
Adjustments. The general fund
base is increased by $717,000 in fiscal year 2018 and $717,000 in fiscal year
2019.
|
Subd. 3. Health
Protection |
|
-0-
|
|
146,000
|
This appropriation is from the state
government special revenue fund.
Base
Adjustment. The state
government special revenue fund base is decreased by $219,000 in fiscal year
2018 and $156,000 in fiscal year 2019.
|
Sec. 4. HEALTH-RELATED
BOARDS |
|
|
|
|
|
Subdivision 1. Total
Appropriation |
|
$195,000 |
|
$352,000 |
This appropriation is from the state
government special revenue fund.
|
Subd. 2. Board
of Dentistry |
|
(850,000)
|
|
(864,000)
|
|
Subd. 3. Board
of Marriage and Family Therapy |
|
40,000
|
|
50,000
|
|
Subd. 4. Board
of Medical Practice |
|
-0-
|
|
22,000
|
Genetic Counselor Licensing. $22,000 in fiscal year 2017 is from the state government special revenue fund for genetic counselor licensure activities under Minnesota Statutes, chapter 147F.
|
Subd. 5. Board
of Pharmacy |
|
115,000
|
|
145,000
|
|
Subd. 6. Board
of Physical Therapy |
|
890,000
|
|
924,000
|
Health
Professional Services Program. Of
this appropriation, $850,000 in fiscal year 2016 and $864,000 in fiscal year
2017 are from the state government special revenue fund for the health
professional services program.
|
Subd. 7. Board
of Podiatric Medicine |
|
-0-
|
|
75,000
|
Orthotist,
Prosthetist, and Pedorthist Licensing.
$75,000 in fiscal year 2017 is from the state government special
revenue fund for licensure activities under the Minnesota Orthotists,
Prosthetist, and Pedorthist Practice Act, Minnesota Statutes, chapter 153B. The base for this appropriation is $112,000
in fiscal year 2018 and $112,000 in fiscal year 2019.
Base
Adjustment. The state
government special revenue fund base is increased by $37,000 in fiscal year
2018 and $37,000 in fiscal year 2019.
|
Sec. 5. OMBUDSMAN
FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES |
$-0- |
|
$250,000 |
|
Sec. 6. DEPARTMENT
OF COMMERCE |
|
$(210,000) |
|
$(213,000) |
Sec. 7. Laws 2015, chapter 71, article 14, section 4, subdivision 3, is amended to read:
|
Subd. 3. Board
of Dentistry |
|
2,192,000 |
|
2,206,000 |
This appropriation includes $864,000 in
fiscal year 2016 and $878,000 in fiscal year 2017 for the health professional
services program.
Sec. 8. DIRECTION
TO COMMISSIONER OF MANAGEMENT AND BUDGET.
In making determinations under
Minnesota Statutes, section 295.52, subdivision 8, the commissioner of
management and budget in fiscal year 2017 only shall not include $74,000,000 of
the transfer under Minnesota Statutes, section 16A.724, subdivision 2,
paragraph (a), as an expenditure or transfer of the health care access fund in
determining the ratio of revenues to expenditures and transfers when making any
determination of tax rate reductions under that subdivision.
Sec. 9. EXPIRATION
OF UNCODIFIED LANGUAGE.
All uncodified language contained in
this article expires on June 30, 2017, unless a different expiration date is
explicit.
Sec. 10. EFFECTIVE
DATE.
This article is effective the day
following final enactment.
ARTICLE 24
TEACHERS
Section 1. Minnesota Statutes 2014, section 122A.09, as amended by Laws 2015, chapter 69, article 2, section 3, and Laws 2015, First Special Session chapter 3, article 2, sections 9 to 11, is amended to read:
122A.09
DUTIES.
Subdivision 1. Code of ethics. The Board of Teaching must develop by rule a code of ethics covering standards of professional teaching practices, including areas of ethical conduct and professional performance and methods of enforcement.
Subd. 2. Advise members of profession. The board must act in an advisory capacity to members of the profession in matters of interpretation of the code of ethics.
Subd. 3. Election of chair and officers. The board shall elect a chair and such other officers as it may deem necessary.
Subd. 4. License and rules. (a) The board must adopt rules to license public school teachers and interns subject to chapter 14.
(b) The board must require all candidates
for teacher licensure to demonstrate a passing score on a board-adopted skills
examination in reading, writing, and mathematics, as a requirement for an
initial teacher licensure professional five-year teaching license,
except that the board may issue up to four temporary, initial
professional one-year teaching licenses to an otherwise qualified candidate
who has not yet passed the board-adopted skills exam. The board must require colleges and
universities offering a board-approved teacher preparation program to provide
remedial assistance to persons who did not achieve a qualifying score on the
board-adopted skills examination, including those for whom English is a second
language. The requirement to pass a
board-adopted reading, writing, and mathematics skills examination does not
apply to nonnative English speakers, as verified by qualified Minnesota school
district personnel or Minnesota higher education faculty, who, after meeting
the content and pedagogy requirements under this subdivision, apply for a
teaching license to provide direct instruction in their native language or
world language instruction under section 120B.022, subdivision 1. The Board of Teaching and the entity
administering the content, pedagogy, and skills examinations must allow any
individual who produces documentation of a disability in the form of an
evaluation, 504 plan, or individual education program (IEP) to receive the same
testing accommodations on the content, pedagogy, and skills examinations that
the applicant received during their secondary or postsecondary education.
(c) The board must adopt rules to approve teacher preparation programs. The board, upon the request of a postsecondary student preparing for teacher licensure or a licensed graduate of a teacher preparation program, shall assist in resolving a dispute between the person and a postsecondary institution providing a teacher preparation program when the dispute involves an institution's recommendation for licensure affecting the person or the person's credentials. At the board's discretion, assistance may include the application of chapter 14.
(d) The board must provide the leadership and adopt rules for the redesign of teacher education programs to implement a research based, results-oriented curriculum that focuses on the skills teachers need in order to be effective. Among other components, teacher preparation programs may use the Minnesota State Colleges and Universities program model to provide a school-year-long student teaching program that combines clinical opportunities with academic coursework and in-depth student teaching experiences to offer students ongoing mentorship, coaching, and assessment, help to prepare a professional development plan, and structured learning experiences. The board shall implement new systems of teacher preparation program evaluation to assure program effectiveness based on proficiency of graduates in demonstrating attainment of program outcomes. Teacher preparation programs including alternative teacher preparation programs under section 122A.245, among other programs, must include a content-specific, board-approved, performance-based assessment that measures teacher candidates in three areas: planning for instruction and assessment; engaging students and supporting learning; and assessing student learning. The board's redesign rules must include creating flexible, specialized teaching licenses, credentials, and other endorsement forms to increase students' participation in language immersion programs, world
language instruction, career development opportunities, work-based learning, early college courses and careers, career and technical programs, Montessori schools, and project and place-based learning, among other career and college ready learning offerings.
(e) The board must adopt rules requiring
candidates for initial professional five-year teaching licenses
to pass an examination of general pedagogical knowledge and examinations of
licensure-specific teaching skills. The
rules shall be effective by September 1, 2001.
The rules under this paragraph also must require candidates for initial
licenses to teach prekindergarten or elementary students to pass, as part of
the examination of licensure-specific teaching skills, test items assessing the
candidates' knowledge, skill, and ability in comprehensive, scientifically
based reading instruction under section 122A.06, subdivision 4, and their
knowledge and understanding of the foundations of reading development, the
development of reading comprehension, and reading assessment and instruction,
and their ability to integrate that knowledge and understanding.
(f) The board must adopt rules requiring teacher educators to work directly with elementary or secondary school teachers in elementary or secondary schools to obtain periodic exposure to the elementary or secondary teaching environment.
(g) The board must grant licenses to
interns and to candidates for initial professional five-year teaching
licenses based on appropriate professional competencies that are aligned with
the board's licensing system and students' diverse learning needs. All teacher candidates must have preparation
in English language development and content instruction for English learners in
order to be able to effectively instruct the English learners in their
classrooms. The board must include these
licenses in a statewide differentiated licensing system that creates new
leadership roles for successful experienced teachers premised on a
collaborative professional culture dedicated to meeting students' diverse
learning needs in the 21st century, recognizes the importance of cultural and
linguistic competencies, including the ability to teach and communicate in
culturally competent and aware ways, and formalizes mentoring and induction for
newly licensed teachers provided through a teacher support framework.
(h) The board must design and implement an assessment system which requires a candidate for an initial license and first continuing license to demonstrate the abilities necessary to perform selected, representative teaching tasks at appropriate levels.
(i) The board must receive recommendations
from local committees as established by the board for the renewal of teaching
licenses. The board must require a
licensed teachers teacher who are is renewing a continuing
license professional five-year teaching license to include in the
renewal requirements further preparation in English language development and
specially designed content instruction in English for English learners.
(j) The board must grant life licenses to those who qualify according to requirements established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 214.10. The board must not establish any expiration date for application for life licenses.
(k) The board must adopt rules that
require all licensed teachers who are renewing their continuing license professional
five-year teaching licenses to include in their renewal requirements
further preparation in the areas of using positive behavior interventions and
in accommodating, modifying, and adapting curricula, materials, and strategies
to appropriately meet the needs of individual students and ensure adequate
progress toward the state's graduation rule.
(l) In adopting rules to license public school teachers who provide health-related services for disabled children, the board shall adopt rules consistent with license or registration requirements of the commissioner of health and the health-related boards who license personnel who perform similar services outside of the school.
(m)
The board must adopt rules that require all licensed teachers who are renewing
their continuing license professional five-year teaching licenses
to include in their renewal requirements further reading preparation,
consistent with section 122A.06, subdivision 4.
The rules do not take effect until they are approved by law. Teachers who do not provide direct
instruction including, at least, counselors, school psychologists, school
nurses, school social workers, audiovisual directors and coordinators, and
recreation personnel are exempt from this section.
(n) The board must adopt rules that
require all licensed teachers who are renewing their continuing license professional
five-year teaching licenses to include in their renewal requirements at
least one hour of suicide prevention best practices in each licensure renewal
period that are based on nationally recognized evidence-based programs and
practices, among the continuing education credits required to renew a license
under this paragraph, and further preparation, first, in understanding the
key warning signs of early-onset mental illness in children and adolescents and
then, during subsequent licensure renewal periods, preparation may include
providing a more in‑depth understanding of students' mental illness
trauma, accommodations for students' mental illness, parents' role in addressing
students' mental illness, Fetal Alcohol Spectrum Disorders, autism, the
requirements of section 125A.0942 governing restrictive procedures, and
de-escalation methods, among other similar topics.
(o) The board must adopt rules by January 1, 2016, to license applicants under sections 122A.23 and 122A.245. The rules must permit applicants to demonstrate their qualifications through the board's recognition of a teaching license from another state in a similar content field, completion of a state-approved teacher preparation program, teaching experience as the teacher of record in a similar licensure field, depth of content knowledge, depth of content methods or general pedagogy, subject-specific professional development and contribution to the field, or classroom performance as determined by documented student growth on normed assessments or documented effectiveness on evaluations. The rules must adopt criteria for determining a "similar content field" and "similar licensure area."
Subd. 4a. Teacher and administrator preparation and performance data; report. (a) The Board of Teaching and the Board of School Administrators, in cooperation with the Minnesota Association of Colleges of Teacher Education and Minnesota colleges and universities offering board-adopted teacher or administrator preparation programs, annually must collect and report summary data on teacher and administrator preparation and performance outcomes, consistent with this subdivision. The Board of Teaching and the Board of School Administrators annually by June 1 must update and post the reported summary preparation and performance data on teachers and administrators from the preceding school years on a Web site hosted jointly by the boards.
(b) Publicly reported summary data on teacher preparation programs must include: student entrance requirements for each Board of Teaching-approved program, including grade point average for enrolling students in the preceding year; the average board-adopted skills examination or ACT or SAT scores of students entering the program in the preceding year; summary data on faculty qualifications, including at least the content areas of faculty undergraduate and graduate degrees and their years of experience either as kindergarten through grade 12 classroom teachers or school administrators; the average time resident and nonresident program graduates in the preceding year needed to complete the program; the current number and percent of students by program who graduated, received a standard Minnesota teaching license, and were hired to teach full time in their licensure field in a Minnesota district or school in the preceding year; the number of content area credits and other credits by undergraduate program that students in the preceding school year needed to complete to graduate; students' pass rates on skills and subject matter exams required for graduation in each program and licensure area in the preceding school year; survey results measuring student and graduate satisfaction with the program in the preceding school year; a standard measure of the satisfaction of school principals or supervising teachers with the student teachers assigned to a school or supervising teacher; and information under paragraphs (d) and (e). Program reporting must be consistent with subdivision 11.
(c) Publicly reported summary data on administrator preparation programs approved by the Board of School Administrators must include: summary data on faculty qualifications, including at least the content areas of faculty undergraduate and graduate degrees and their years of experience either as kindergarten through grade 12 classroom teachers or school administrators; the average time program graduates in the preceding year needed to complete the program; the current number and percent of students who graduated, received a standard Minnesota administrator license, and were employed as an administrator in a Minnesota school district or school in the preceding year; the number of credits by graduate program that students in the preceding school year needed to complete to graduate; survey results measuring student, graduate, and employer satisfaction with the program in the preceding school year; and information under paragraphs (f) and (g). Program reporting must be consistent with section 122A.14, subdivision 10.
(d) School districts annually by October 1 must report to the Board of Teaching the following information for all teachers who finished the probationary period and accepted a continuing contract position with the district from September 1 of the previous year through August 31 of the current year: the effectiveness category or rating of the teacher on the summative evaluation under section 122A.40, subdivision 8, or 122A.41, subdivision 5; the licensure area in which the teacher primarily taught during the three-year evaluation cycle; and the teacher preparation program preparing the teacher in the teacher's primary areas of instruction and licensure.
(e) School districts annually by October 1 must report to the Board of Teaching the following information for all probationary teachers in the district who were released or whose contracts were not renewed from September 1 of the previous year through August 31 of the current year: the licensure areas in which the probationary teacher taught; and the teacher preparation program preparing the teacher in the teacher's primary areas of instruction and licensure.
(f) School districts annually by October 1 must report to the Board of School Administrators the following information for all school principals and assistant principals who finished the probationary period and accepted a continuing contract position with the district from September 1 of the previous year through August 31 of the current year: the effectiveness category or rating of the principal or assistant principal on the summative evaluation under section 123B.147, subdivision 3; and the principal preparation program providing instruction to the principal or assistant principal.
(g) School districts annually by October 1 must report to the Board of School Administrators all probationary school principals and assistant principals in the district who were released or whose contracts were not renewed from September 1 of the previous year through August 31 of the current year.
Subd. 5. Commissioner's
representative to comment on proposed rule.
Prior to the adoption by Before the Board of Teaching of
adopts any rule which that must be submitted to public
hearing, a representative of the commissioner shall appear before the Board of
Teaching and at the hearing required pursuant to under section
14.14, subdivision 1, to comment on the cost and educational implications of
that proposed rule.
Subd. 6. Register of persons licensed. The executive secretary of the Board of Teaching shall keep a record of the proceedings of and a register of all persons licensed pursuant to the provisions of this chapter. The register must show the name, address, license number and the renewal of the license. The board must on July 1, of each year or as soon thereafter as is practicable, compile a list of such duly licensed teachers and transmit a copy of the list to the board. A copy of the register must be available during business hours at the office of the board to any interested person.
Subd. 7. Commissioner's assistance; board money. The commissioner shall provide all necessary materials and assistance for the transaction of the business of the Board of Teaching and all moneys received by the Board of Teaching shall be paid into the state treasury as provided by law. The expenses of administering sections 122A.01, 122A.05 to 122A.09, 122A.15, 122A.16, 122A.17, 122A.18, 122A.20, 122A.21, 122A.22, 122A.23, 122A.26, 122A.30, 122A.40, 122A.41, 122A.42, 122A.45, 122A.49, 122A.54, 122A.55, 122A.56, 122A.57, and 122A.58 which are incurred by the Board of Teaching shall be paid for from appropriations made to the Board of Teaching.
Subd. 8. Fraud; gross misdemeanor. A person who claims to be a licensed teacher without a valid existing license issued by the board or any person who employs fraud or deception in applying for or securing a license is guilty of a gross misdemeanor.
Subd. 9. Board may adopt rules. The Board of Teaching may adopt rules subject to the provisions of chapter 14 to implement sections 122A.05 to 122A.09, 122A.16, 122A.17, 122A.18, 122A.20, 122A.21, and 122A.23.
Subd. 10. Variances
Permissions. (a)
Notwithstanding subdivision 9 and section 14.05, subdivision 4 14.055,
the Board of Teaching may grant a variance waivers to its rules
upon application by a school district or a charter school for purposes
of implementing experimental programs in learning or management.
(b) To enable a school district or a charter school to meet the needs of students enrolled in an alternative education program and to enable licensed teachers instructing those students to satisfy content area licensure requirements, the Board of Teaching annually may permit a licensed teacher teaching in an alternative education program to instruct students in a content area for which the teacher is not licensed, consistent with paragraph (a).
(c) A special education license variance
permission issued by the Board of Teaching for a primary employer's
low-incidence region shall be is valid in all low-incidence
regions.
(d) The Board of Teaching may issue a
one-year professional license under paragraph (a), which the board may renew
two times, to allow a person holding a full credential from the American
Montessori Society, a diploma from Association Montessori Internationale, or a
certificate of completion from a program accredited by the Montessori
Accreditation Council for Teacher Education to teach in a Montessori program
operated by a school district or charter school.
(e) The Board of Teaching may grant a
one-year waiver, renewable two times, to allow individuals who hold a
bachelor's degree from an accredited postsecondary institution, demonstrate
occupational competency based on at least three years of full-time work
experience in business or industry, and enroll and make satisfactory progress
in an alternative preparation program leading to certification as a career and
technical education instructor to teach career and technical education courses
offered by a school district or charter school.
Consistent with this paragraph and section 136F.361, the Board of
Teaching must strongly encourage teacher preparation programs and institutions
throughout Minnesota to develop alternative pathways for certifying and
licensing high school career and technical education instructors and teachers,
allowing such candidates to meet certification and licensure standards that
demonstrate their content knowledge, classroom experience, and pedagogical
practices and their qualifications based on a combination of occupational
testing, professional certification or licensure, and long-standing work
experience.
Subd. 11. Teacher preparation program reporting. By December 31, 2018, and annually thereafter, the Board of Teaching shall report and publish on its Web site the cumulative summary results of at least three consecutive years of data reported to the board under subdivision 4a, paragraph (b). Where the data are sufficient to yield statistically reliable information and the results would not reveal personally identifiable information about an individual teacher, the board shall report the data by teacher preparation program.
EFFECTIVE
DATE. Subdivision 4,
paragraph (n), is effective the day following final enactment and applies to
teachers renewing their teaching licenses beginning August 1, 2017. Subdivision 10, paragraphs (d) and (e) are
effective for the 2016-2017 through 2018-2019 school years.
Sec. 2. Minnesota Statutes 2014, section 122A.16, is amended to read:
122A.16
HIGHLY QUALIFIED TEACHER DEFINED.
(a) A qualified teacher is one
holding a valid license, under this chapter, to perform the particular service
for which the teacher is employed in a public school.
(b)
For the purposes of the federal No Child Left Behind Act, a highly qualified teacher
is one who holds a valid license under this chapter, including under section
122A.245, among other sections and is determined by local administrators as
having highly qualified status according to the approved Minnesota highly
qualified plan. Teachers delivering core
content instruction must be deemed highly qualified at the local level and
reported to the state via the staff automated reporting system.
Sec. 3. Minnesota Statutes 2014, section 122A.18, as amended by Laws 2015, First Special Session chapter 3, article 2, sections 14 and 15, is amended to read:
122A.18
BOARD TO ISSUE LICENSES.
Subdivision 1. Authority to license. (a) The Board of Teaching must license teachers, as defined in section 122A.15, subdivision 1, except for supervisory personnel, as defined in section 122A.15, subdivision 2.
(b) The Board of School Administrators must license supervisory personnel as defined in section 122A.15, subdivision 2, except for athletic coaches.
(c) Licenses under the jurisdiction of the Board of Teaching, the Board of School Administrators, and the commissioner of education must be issued through the licensing section of the department.
(d) The Board of Teaching and the Department of Education must enter into a data sharing agreement to share educational data at the E-12 level for the limited purpose of program approval and improvement for teacher education programs. The program approval process must include targeted redesign of teacher preparation programs to address identified E-12 student areas of concern.
(e) The Board of School Administrators and the Department of Education must enter into a data sharing agreement to share educational data at the E-12 level for the limited purpose of program approval and improvement for education administration programs. The program approval process must include targeted redesign of education administration preparation programs to address identified E-12 student areas of concern.
(f) For purposes of the data sharing agreements under paragraphs (d) and (e), the Board of Teaching, Board of School Administrators, and Department of Education may share private data, as defined in section 13.02, subdivision 12, on teachers and school administrators. The data sharing agreements must not include educational data, as defined in section 13.32, subdivision 1, but may include summary data, as defined in section 13.02, subdivision 19, derived from educational data.
Subd. 2. Teacher
and support personnel qualifications. (a)
The Board of Teaching must issue licenses under its jurisdiction to persons the
board finds to be qualified and competent for their respective positions,
including those meeting the standards adopted under section 122A.09,
subdivision 4, paragraph (o) (n).
(b) The board must require a candidate for
teacher licensure to demonstrate a passing score on a board-adopted examination
of skills in reading, writing, and mathematics, before being granted an
initial a professional five-year teaching license to provide direct
instruction to pupils in prekindergarten, elementary, secondary, or special
education programs, except that the board may issue up to four temporary,
one-year teaching licenses to an otherwise qualified candidate who has not yet
passed a board-adopted skills exam. At
the request of the employing school district or charter school, the Board of
Teaching may issue a restricted an initial professional one-year
teaching license to an otherwise qualified teacher not passing or
demonstrating a passing score on a board-adopted skills examination in reading,
writing, and mathematics. For purposes
of this section, the restricted initial professional one-year
teaching license issued by the board is limited to the current subject or
content matter the teacher is employed to teach and limited to the district or
charter school requesting the restricted initial professional
one-year teaching license. If the
board denies the request, it must provide a detailed response to the school
administrator
as to the reasons for the denial. The
board must require colleges and universities offering a board approved teacher
preparation program to make available upon request remedial assistance that
includes a formal diagnostic component to persons enrolled in their institution
who did not achieve a qualifying score on a board-adopted skills examination,
including those for whom English is a second language. The colleges and universities must make
available assistance in the specific academic areas of candidates' deficiency. School districts may make available upon
request similar, appropriate, and timely remedial assistance that includes a
formal diagnostic component to those persons employed by the district who
completed their teacher education program, who did not achieve a qualifying
score on a board-adopted skills examination, and who received a temporary
an initial professional one-year teaching license to teach in Minnesota. The Board of Teaching shall report annually
to the education committees of the legislature on the total number of teacher
candidates during the most recent school year taking a board-adopted skills
examination, the number who achieve a qualifying score on the examination, the
number who do not achieve a qualifying score on the examination, and the
candidates who have not passed a content or pedagogy exam, disaggregated by
categories of race, ethnicity, and eligibility for financial aid.
(c) The Board of Teaching must grant continuing
professional five-year teaching licenses only to those persons who have
met board criteria for granting a continuing that license, which
includes passing a board-adopted skills examination in reading, writing, and
mathematics, and the exceptions in section 122A.09, subdivision 4, paragraph
(b), that are consistent with this paragraph.
The requirement to pass a board-adopted reading, writing, and
mathematics skills examination, does not apply to nonnative English speakers,
as verified by qualified Minnesota school district personnel or Minnesota
higher education faculty, who, after meeting the content and pedagogy
requirements under this subdivision, apply for a professional five-year
teaching license to provide direct instruction in their native language or
world language instruction under section 120B.022, subdivision 1.
(d) All colleges and universities approved by the board of teaching to prepare persons for teacher licensure must include in their teacher preparation programs a common core of teaching knowledge and skills to be acquired by all persons recommended for teacher licensure. Among other requirements, teacher candidates must demonstrate the knowledge and skills needed to provide appropriate instruction to English learners to support and accelerate their academic literacy, including oral academic language, and achievement in content areas in a regular classroom setting. This common core shall meet the standards developed by the interstate new teacher assessment and support consortium in its 1992 "model standards for beginning teacher licensing and development." Amendments to standards adopted under this paragraph are covered by chapter 14. The board of teaching shall report annually to the education committees of the legislature on the performance of teacher candidates on common core assessments of knowledge and skills under this paragraph during the most recent school year.
Subd. 2a. Reading
strategies. (a) All colleges and
universities approved by the Board of Teaching to prepare persons for classroom
teacher licensure must include in their teacher preparation programs research-based
best practices in reading, consistent with section 122A.06, subdivision 4, that
enable the licensure candidate to know how to teach reading in the candidate's
content areas. Teacher candidates must
be instructed in using students' native languages as a resource in creating
effective differentiated instructional strategies for English learners
developing literacy skills. These
colleges and universities also must prepare early childhood and elementary
teacher candidates for initial professional five-year teaching
licenses to teach prekindergarten or elementary students for the assessment
of reading instruction portion of the examination of licensure-specific
teaching skills under section 122A.09, subdivision 4, paragraph (e),
covering assessment of reading instruction.
(b) Board-approved teacher preparation
programs for teachers of elementary education must require instruction in
the application of in applying comprehensive, scientifically based,
and balanced reading instruction programs that:
(1) teach students to read using
foundational knowledge, practices, and strategies consistent with section
122A.06, subdivision 4, so that all students will achieve continuous
progress in reading; and
(2) teach specialized instruction in reading strategies, interventions, and remediations that enable students of all ages and proficiency levels to become proficient readers.
(c) Nothing in this section limits the authority of a school district to select a school's reading program or curriculum.
Subd. 2b. Reading
specialist. Not later than July 1,
2002, the Board of Teaching must adopt rules providing for the reading
teacher licensure of teachers of reading.
Subd. 3. Supervisory and coach qualifications; code of ethics. The commissioner of education must issue licenses under its jurisdiction to persons the commissioner finds to be qualified and competent for their respective positions under the rules it adopts. The commissioner of education may develop, by rule, a code of ethics for supervisory personnel covering standards of professional practices, including areas of ethical conduct and professional performance and methods of enforcement.
Subd. 3a. Technology strategies. All colleges and universities approved by the Board of Teaching to prepare persons for classroom teacher licensure must include in their teacher preparation programs the knowledge and skills teacher candidates need to deliver digital and blended learning and curriculum and engage students with technology.
Subd. 4. Expiration and renewal. (a) Each license the Department of Education issues through its licensing section must bear the date of issue and the name of the state-approved teacher training provider. Licenses must expire and be renewed according to the respective rules the Board of Teaching, the Board of School Administrators, or the commissioner of education adopts. Requirements for renewing a license must include showing satisfactory evidence of successful teaching or administrative experience for at least one school year during the period covered by the license in grades or subjects for which the license is valid or completing such additional preparation as the Board of Teaching prescribes. The Board of School Administrators shall establish requirements for renewing the licenses of supervisory personnel except athletic coaches. The State Board of Teaching shall establish requirements for renewing the licenses of athletic coaches.
(b) Relicensure Applicants for
license renewal who have been employed as a teacher during the renewal
period of their expiring license, as a condition of relicensure license
renewal, must present to their local continuing education and relicensure
committee or other local relicensure committee evidence of work that
demonstrates professional reflection and growth in best teaching practices,
including among other things, practices in meeting the varied needs of English
learners, from young children to adults under section 124D.59, subdivisions 2
and 2a. The applicant must include a
reflective statement of professional accomplishment and the applicant's own
assessment of professional growth showing evidence of:
(1) support for student learning;
(2) use of best practices techniques and their applications to student learning;
(3) collaborative work with colleagues that includes examples of collegiality such as attested-to committee work, collaborative staff development programs, and professional learning community work; or
(4) continual professional development that may include (i) job-embedded or other ongoing formal professional learning or (ii) for teachers employed for only part of the renewal period of their expiring license, other similar professional development efforts made during the relicensure period.
The Board of Teaching must ensure that its teacher relicensing requirements also include this paragraph.
(c)
The Board of Teaching shall offer alternative continuing relicensure
options for license renewal for teachers who are accepted into and
complete the National Board for Professional Teaching Standards certification
process, and offer additional continuing relicensure options for teachers who
earn National Board for Professional Teaching Standards certification. Continuing relicensure requirements for
teachers who do not maintain National Board for Professional Teaching Standards
certification are those the board prescribes, consistent with this section.
Subd. 4a. Limited provisional licenses. The board may grant two-year provisional licenses to licensure candidates in a field in which they were not previously licensed or in a field in which a shortage of licensed teachers exists. A shortage is defined as an inadequate supply of licensed personnel in a given licensure area as determined by the commissioner.
Subd. 5. Effective
date. Nothing contained
herein shall be construed as affecting the validity of a permanent certificate
or license issued prior to July 1, 1969.
Subd. 6. Human
relations. The Board of Teaching and
the commissioner of education shall accept training programs completed
through Peace Corps, VISTA, or Teacher Corps in lieu of completion of completing
the human relations component of the training program for purposes of issuing
or renewing a teaching license in education.
Subd. 7. Limited provisional licenses. The Board of Teaching may grant provisional licenses, which shall be valid for two years, in fields in which licenses were not issued previously or in fields in which a shortage of licensed teachers exists. A shortage is defined as a lack of or an inadequate supply of licensed personnel within a given licensure area in a school district that has notified the Board of Teaching of the shortage and has applied to the Board of Teaching for provisional licenses for that district's licensed staff.
Subd. 7a. Permission to substitute teach. (a) The Board of Teaching may allow a person who is enrolled in and making satisfactory progress in a board-approved teacher program and who has successfully completed student teaching to be employed as a short-call substitute teacher.
(b) The Board of Teaching may issue a lifetime qualified short-call substitute teaching license to a person who:
(1) was a qualified teacher under section
122A.16 while holding a continuing professional five-year
teaching license issued by the board, and receives a retirement annuity from
the Teachers Retirement Association or the St. Paul Teachers Retirement
Fund Association;
(2) holds an out-of-state teaching license and receives a retirement annuity as a result of the person's teaching experience; or
(3) held a continuing professional
five-year teaching license issued by the board, taught at least three
school years in an accredited nonpublic school in Minnesota, and receives a
retirement annuity as a result of the person's teaching experience.
A person holding a lifetime qualified short-call substitute
teaching license is not required to complete continuing education clock hours. A person holding this license may reapply to
the board for a continuing professional five-year teaching
license and must again complete continuing education clock hours one school
year after receiving the continuing professional five-year teaching
license.
Subd. 7b. Temporary limited licenses; personnel variances. (a) The Board of Teaching must accept applications for a temporary limited teaching license beginning July 1 of the school year for which the license is requested and must issue or deny the temporary limited teaching license within 30 days of receiving the complete application.
(b) The Board of Teaching must accept applications for a personnel variance beginning July 1 of the school year for which the variance is requested and must issue or deny the personnel variance within 30 days of receiving the complete application.
Subd. 7c. Temporary military license. The Board of Teaching shall establish a temporary license in accordance with section 197.4552 for teaching. The fee for a temporary license under this subdivision shall be $87.90 for an online application or $86.40 for a paper application.
Subd. 8. Background
checks. (a) The Board of Teaching
and the commissioner of education must request a criminal history background
check from the superintendent of the Bureau of Criminal Apprehension on all first-time
teaching applicants for initial licenses under their jurisdiction. An application for a license under this
section must be accompanied by Applicants must include with their
licensure applications:
(1) an executed criminal history consent form, including fingerprints; and
(2) a money order or cashier's check payable to the Bureau of Criminal Apprehension for the fee for conducting the criminal history background check.
(b) The superintendent of the Bureau of Criminal Apprehension shall perform the background check required under paragraph (a) by retrieving criminal history data as defined in section 13.87 and shall also conduct a search of the national criminal records repository. The superintendent is authorized to exchange fingerprints with the Federal Bureau of Investigation for purposes of the criminal history check. The superintendent shall recover the cost to the bureau of a background check through the fee charged to the applicant under paragraph (a).
(c) The Board of Teaching or the commissioner of education may issue a license pending completion of a background check under this subdivision, but must notify the individual that the individual's license may be revoked based on the result of the background check.
Sec. 4. Minnesota Statutes 2015 Supplement, section 122A.23, is amended to read:
122A.23
APPLICANTS TRAINED IN OTHER STATES.
Subdivision 1. Preparation
equivalency. When a license to teach
is authorized to be issued to any holder of a diploma or a degree of a
Minnesota state university, or of the University of Minnesota, or of a liberal
arts university, or a technical training institution, such license may also, in
the discretion of the Board of Teaching or the commissioner of education,
whichever has jurisdiction, be issued to any holder of a diploma or a
degree of a teacher training institution of equivalent rank and standing of any
other state. The diploma or degree must
be granted by virtue of completing coursework in teacher preparation as
preliminary to the granting of a diploma or a degree of the same rank and class. For purposes of granting a Minnesota teaching
license to a person who receives a diploma or degree from a state-accredited,
out-of-state teacher training program leading to licensure, the Board of
Teaching must establish criteria and streamlined policies and procedures
by January 1, 2016, to recognize the experience and professional credentials of
the person holding the out-of-state diploma or degree and allow that person to
demonstrate to the board the person's qualifications for receiving a Minnesota
teaching license based on performance measures the board adopts by January 1,
2016, under this section.
Subd. 2. Applicants
licensed in other states. (a)
Subject to the requirements of sections 122A.18, subdivision 8, and 123B.03,
the Board of Teaching must issue a professional five-year teaching
license or a temporary an initial professional one-year teaching
license under paragraphs (c) to (f) to an applicant who holds at least a
baccalaureate degree from a regionally accredited college or university and
holds or held an out-of-state teaching license that requires the applicant to
successfully complete a teacher preparation program approved by the issuing
state, which includes either (1) field-specific teaching methods, student
teaching, or equivalent experience, or (2) at least two years of teaching
experience as the teacher of record in a similar licensure field area.
(b)
The Board of Teaching may issue a standard profes