House Journal 86th Day Thursday March 31 2022

A quorum was present.

Baker, McDonald and Poston were excused.

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

Journal of the House - 86th Day - Thursday, March 31, 2022 - Top of Page 8698

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Pelowski from the Committee on Industrial Education and Economic Development Finance and Policy to which was referred:

H. F. No. 14, A bill for an act relating to telecommunications; transferring money for deposit in the broadband grant program.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2020, section 116J.395, subdivision 7, is amended to read:

Subd. 7. Limitation. (a) No grant awarded under this section may fund more than 50 75 percent of the total cost of a project.

(b) Grants awarded to a single project under this section must not exceed ~~$5,000,000~~ $10,000,000.

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

Sec. 2. REPORT; GRANT AWARD CHANGES.

No later than December 31, 2022, the Office of Broadband Development must submit a report to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over broadband policy and finance analyzing the impacts of the statutory changes made in section 1 of this act on the number and amounts of grants awarded under Minnesota Statutes, section 116J.395.

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

Sec. 3. TRANSFER.

$100,000,000 in fiscal year 2023 is transferred from the general fund to the border-to-border broadband fund account established in Minnesota Statutes, section 116J.396. This is a onetime transfer and remains available until expended.

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

Delete the title and insert:

"A bill for an act relating to broadband; modifying the border-to-border broadband grant program; transferring money; requiring a report; amending Minnesota Statutes 2020, section 116J.395, subdivision 7."

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

The report was adopted.

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Stephenson from the Committee on Commerce Finance and Policy to which was referred:

H. F. No. 1829, A bill for an act relating to commerce; prohibiting discrimination against organ or bone marrow donors by certain insurers; amending Minnesota Statutes 2020, section 72A.20, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, line 8, delete "40" and insert "41"

Page 1, line 9, delete "(a)" and after "care insurance," insert "or" and delete ", or health"

Page 1, line 10, delete "insurance"

Page 1, delete lines 14 to 17

Page 1, line 19, delete "2021" and insert "2022"

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

The report was adopted.

Marquart from the Committee on Taxes to which was referred:

H. F. No. 3167, A bill for an act relating to amateur sports; dedicating certain sales and use tax collections to the Minnesota Amateur Sports Commission; creating an amateur sports account; appropriating money; amending Minnesota Statutes 2020, section 297A.94; proposing coding for new law in Minnesota Statutes, chapter 240A.

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

The report was adopted.

Stephenson from the Committee on Commerce Finance and Policy to which was referred:

H. F. No. 3255, A bill for an act relating to commerce; making technical changes to various provisions administered by the Department of Commerce; updating references to federal law; amending Minnesota Statutes 2020, sections 47.08; 47.16, subdivisions 1, 2; 47.172, subdivision 2; 47.28, subdivision 3; 47.30, subdivision 5; 55.10, subdivision 1; 65B.84, subdivision 2; 80A.61; 80C.05, subdivision 2; 239.761, subdivisions 3, 4; 239.791, subdivision 2a; 296A.01, subdivision 23.

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

The report was adopted.

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Davnie from the Committee on Education Finance to which was referred:

H. F. No. 3265, A bill for an act relating to education; modifying lead testing and remediation requirements in schools; requiring a report; appropriating money; amending Minnesota Statutes 2020, section 121A.335.

Reported the same back with the following amendments:

Page 2, line 16, strike "that has tested its buildings"

Page 2, strike line 17

Page 2, line 18, strike "and must notify parents of the availability of the information." and insert "must send parents an annual notice that includes the district's or charter school's annual testing and remediation plan, information about how to find test results, and a description of remediation efforts on the district website. The district or charter school must update the lead testing and remediation information on its website at least annually. In addition to the annual notice, the district or charter school must include in an official school handbook or official school policy guide information on how parents may find the test results and a description of remediation efforts on the district or charter school website and how often this information is updated. (b)"

Page 2, lines 22 and 23, reinstate the stricken language

Page 2, lines 24 to 27, delete the new language

Page 2, line 28, reinstate the stricken language and delete the new language

Page 2, line 29, delete the new language and insert "and remediation activities have been completed in accordance with subdivision 3"

Page 2, line 30, delete "(b)" and insert "(c)"

Page 2, after line 34, insert:

"Subd. 6. Public water system. If testing reveals that a significant contributor to lead contamination in school drinking water is the infrastructure operated by a public water system that is not a school water system, the district or charter school is not financially responsible for remediating elevated lead levels in drinking water that passes through that infrastructure. The district or charter school must communicate with the public water system regarding its documented significant contribution to lead contamination in school drinking water and request from the public water system a plan for reducing the lead contamination. The district or charter school may defer its remediation activities under this section until after the elevated lead level in the public water system's infrastructure is remediated and postremediation testing does not detect an elevated lead level in the drinking water that passes through that infrastructure."

Page 3, line 1, delete "6" and insert "7"

Page 3, after line 7, insert:

"Sec. 2. Minnesota Statutes 2020, section 123B.595, subdivision 1, is amended to read:

Subdivision 1. Long-term facilities maintenance revenue. (a) For fiscal year 2017 only, long-term facilities maintenance revenue equals the greater of (1) the sum of (i) $193 times the district's adjusted pupil units times the lesser of one or the ratio of the district's average building age to 35 years, plus the cost approved by the commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement projects under section

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123B.57, subdivision 6, with an estimated cost of $100,000 or more per site, plus (ii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction.

(b) For fiscal year 2018 only, long-term facilities maintenance revenue equals the greater of (1) the sum of (i) $292 times the district's adjusted pupil units times the lesser of one or the ratio of the district's average building age to 35 years, plus (ii) the cost approved by the commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 or more per site, plus (iii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction.

~~(c)~~ (a) For fiscal year ~~2019~~ 2023 and later, long-term facilities maintenance revenue equals the greater of:

(1) the sum of (i) $380 times the district's adjusted pupil units times the lesser of one or the ratio of the district's average building age to 35 years, ~~plus~~ (ii) the cost approved by the commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 or more per site, ~~plus~~ (iii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction, and (iv) the costs approved by the commissioner of health for remediation of lead in the school's drinking water, including the cost of filters; or

(2) the sum of (i) the amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction.

~~(d)~~ (b) Notwithstanding ~~paragraphs~~ paragraph (a), ~~(b), and (c),~~ a school district that qualified for eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a), for fiscal year 2010 remains eligible for funding under this section as a district that would have qualified for eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a), for fiscal year 2017 and later.

EFFECTIVE DATE. This section is effective July 1, 2022.

Sec. 3. Minnesota Statutes 2020, section 123B.595, subdivision 2, is amended to read:

Subd. 2. Long-term facilities maintenance revenue for a charter school. ~~(a) For fiscal year 2017 only, long‑term facilities maintenance revenue for a charter school equals $34 times the adjusted pupil units.~~

~~(b) For fiscal year 2018 only, long-term facilities maintenance revenue for a charter school equals $85 times the adjusted pupil units.~~

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~~(c)~~ For fiscal year ~~2019~~ 2023 and later, long-term facilities maintenance revenue for a charter school equals the sum of $132 times the adjusted pupil units for that year, plus the costs approved by the commissioner of health for remediation of lead in the school's drinking water, including the cost of filters.

EFFECTIVE DATE. This section is effective July 1, 2022.

Sec. 4. Minnesota Statutes 2020, section 123B.595, subdivision 7, is amended to read:

Subd. 7. Long-term facilities maintenance equalization revenue. (a) For fiscal year 2017 only, a district's long-term facilities maintenance equalization revenue equals the lesser of (1) $193 times the adjusted pupil units or (2) the district's revenue under subdivision 1.

(b) For fiscal year 2018 only, a district's long-term facilities maintenance equalization revenue equals the lesser of (1) $292 times the adjusted pupil units or (2) the district's revenue under subdivision 1.

~~(c)~~ (a) For fiscal year ~~2019~~ 2023 and later, a district's long-term facilities maintenance equalization revenue equals the lesser of (1) $380 times the adjusted pupil units or (2) the district's revenue under subdivision 1.

~~(d)~~ (b) Notwithstanding ~~paragraphs~~ paragraph (a) ~~to (c)~~, a district's long-term facilities maintenance equalization revenue must not be less than the lesser of the district's long-term facilities maintenance revenue or the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014, section 123B.59, subdivision 6.

EFFECTIVE DATE. This section is effective July 1, 2022.

Sec. 5. Minnesota Statutes 2020, section 123B.595, subdivision 8, is amended to read:

Subd. 8. Long-term facilities maintenance equalized levy. (a) ~~For fiscal year 2017 and later,~~ A district's long‑term facilities maintenance equalized levy equals the district's long-term facilities maintenance equalization revenue minus the greater of:

(1) the lesser of the district's long-term facilities maintenance equalization revenue or the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014, section 123B.59, subdivision 6; or

(2) the district's long-term facilities maintenance equalization revenue times the greater of (i) zero or (ii) one minus the ratio of its adjusted net tax capacity per adjusted pupil unit in the year preceding the year the levy is certified to 123 percent of the state average adjusted net tax capacity per adjusted pupil unit for all school districts in the year preceding the year the levy is certified.

(b) For purposes of this subdivision, "adjusted net tax capacity" means the value described in section 126C.01, subdivision 2, paragraph (b).

EFFECTIVE DATE. This section is effective July 1, 2022.

Sec. 6. Minnesota Statutes 2020, section 123B.595, subdivision 8a, is amended to read:

Subd. 8a. Long-term facilities maintenance unequalized levy. ~~For fiscal year 2017 and later,~~ A district's long-term facilities maintenance unequalized levy equals the difference between the district's revenue under subdivision 1 and the district's equalization revenue under subdivision 7.

EFFECTIVE DATE. This section is effective July 1, 2022.

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Sec. 7. Minnesota Statutes 2020, section 123B.595, subdivision 9, is amended to read:

Subd. 9. Long-term facilities maintenance equalized aid. ~~For fiscal year 2017 and later,~~ A district's long‑term facilities maintenance equalized aid equals its long-term facilities maintenance equalization revenue minus its long-term facilities maintenance equalized levy times the ratio of the actual equalized amount levied to the permitted equalized levy.

EFFECTIVE DATE. This section is effective July 1, 2022."

Renumber the sections in sequence

Correct the title numbers accordingly

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

The report was adopted.

Ecklund from the Committee on Labor, Industry, Veterans and Military Affairs Finance and Policy to which was referred:

H. F. No. 3403, A bill for an act relating to professional licensing; establishing a preliminary application procedure for individuals seeking professional licenses; permitting licensing boards to charge application fees; authorizing appeals; requiring reports; proposing coding for new law in Minnesota Statutes, chapter 214.

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

The report was adopted.

Noor from the Committee on Workforce and Business Development Finance and Policy to which was referred:

H. F. No. 4024, A bill for an act relating to economic development; appropriating money for a grant to GiveMN.

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

The report was adopted.

Noor from the Committee on Workforce and Business Development Finance and Policy to which was referred:

H. F. No. 4215, A bill for an act relating to corrections; appropriating money for instruction to incarcerated individuals for employment after incarceration and work release.

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

The report was adopted.

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Becker-Finn from the Committee on Judiciary Finance and Civil Law to which was referred:

H. F. No. 4314, A bill for an act relating to labor and industry; modifying fair labor standards provisions for agricultural and food processing workers; amending Minnesota Statutes 2020, sections 177.27, subdivision 4; 179.86, subdivisions 1, 3, by adding subdivisions; 181.14, subdivision 1; 181.635, subdivisions 1, 2, 3, 4, 6; 181.85, subdivisions 2, 4; 181.86, subdivision 1; 181.87, subdivisions 2, 3, 7; 181.88; 181.89, subdivision 2, by adding a subdivision.

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

The report was adopted.

Stephenson from the Committee on Commerce Finance and Policy to which was referred:

H. F. No. 4430, A bill for an act relating to health; establishing the Health Care Affordability Board and Health Care Affordability Advisory Council; requiring monitoring of and recommendations related to health care market trends; establishing the health care spending growth target program; requiring reports; providing for civil penalties; requiring certain transfers of funds; amending Minnesota Statutes 2020, section 62U.04, subdivision 11; proposing coding for new law in Minnesota Statutes, chapter 62J.

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

The report was adopted.

Pinto from the Committee on Early Childhood Finance and Policy to which was referred:

H. F. No. 4570, A bill for an act relating to early childhood; removing obsolete language from voluntary prekindergarten statutes; amending Minnesota Statutes 2020, section 124D.151, subdivision 5.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2020, section 120A.20, subdivision 1, is amended to read:

Subdivision 1. Age limitations; pupils. (a) All schools supported in whole or in part by state funds are public schools. Admission to a public school is free to any person who: (1) resides within the district that operates the school; (2) is under 21 years of age or who meets the requirements of paragraph (c); and (3) satisfies the minimum age requirements imposed by this section. Notwithstanding the provisions of any law to the contrary, the conduct of all students under 21 years of age attending a public secondary school is governed by a single set of reasonable rules and regulations promulgated by the school board.

(b) A person shall not be admitted to a public school: (1) as a prekindergarten pupil, unless the pupil is at least four years of age as of September 1 of the calendar year in which the school year for which the pupil seeks admission commences; (2) as a kindergarten pupil, unless the pupil is at least five years of age on September 1 of the calendar year in which the school year for which the pupil seeks admission commences; or ~~(2)~~ (3) as a 1st grade student, unless the pupil is at least six years of age on September 1 of the calendar year in which the school year for which the pupil seeks admission commences or has completed kindergarten; except that any school board may establish a policy for admission of selected pupils at an earlier age under section 124D.02.

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(c) A pupil who becomes age 21 after enrollment is eligible for continued free public school enrollment until at least one of the following occurs: (1) the first September 1 after the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3) the pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4) the end of the school year.

Sec. 2. Minnesota Statutes 2020, section 120A.41, is amended to read:

120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.

(a) A school board's annual school calendar must include at least 425 hours of instruction for a kindergarten student without a disability, 935 hours of instruction for a student in grades 1 through 6, and 1,020 hours of instruction for a student in grades 7 through 12, not including summer school. The school calendar for a prekindergarten student without a disability and a student in an all-day kindergarten must include at least 850 hours of instruction for the school year. ~~The school calendar for a prekindergarten student under section 124D.151, if offered by the district, must include at least 350 hours of instruction for the school year.~~ A school board's annual calendar must include at least 165 days of instruction for a student in grades 1 through 11 unless a four-day week schedule has been approved by the commissioner under section 124D.126.

(b) A school board's annual school calendar may include plans for up to five days of instruction provided through online instruction due to inclement weather. The inclement weather plans must be developed according to section 120A.414.

Sec. 3. Minnesota Statutes 2020, section 124D.151, as amended by Laws 2021, First Special Session chapter 13, article 9, section 1, is amended to read:

124D.151 VOLUNTARY PREKINDERGARTEN PROGRAM FOR ELIGIBLE FOUR-YEAR-OLD CHILDREN.

Subdivision 1. Establishment; purpose. A ~~district, a charter school, a group of districts, a group of charter schools, or a group of districts and charter schools~~ school district or charter school, a child care center or family child care provider licensed under section 245A.03, or a Head Start agency licensed under section 245A.03 that meets program requirements under subdivision 2, may establish a voluntary prekindergarten program for eligible four-year-old children. The purpose of a voluntary prekindergarten program is to prepare children for success as they enter kindergarten in the following year.

Subd. 1a. Definition. For purposes of this section, a "lead teacher" is an individual with primary responsibility for the instruction and care of eligible children in a voluntary prekindergarten classroom. A lead teacher employed by a school district is a teacher for purposes of sections 122A.40, subdivision 1; 122A.41, subdivision 1, clause (a); and 179A.03, subdivision 18.

Subd. 2. Program requirements. ~~(a)~~ A voluntary prekindergarten program provider must:

(1) provide instruction through play-based learning to foster children's social and emotional development, cognitive development, physical and motor development, and language and literacy skills, including the native language and literacy skills of English learners, to the extent practicable;

(2) ~~measure each child's cognitive and social skills~~ assess each child's progress toward the state's early learning standards at program entrance and exit using a commissioner-approved, formative measure aligned to the state's early learning standards when the child enters and again before the child leaves the program, screening and progress monitoring measures, and other age-appropriate versions from the state-approved menu of kindergarten entry profile measures;, age-appropriate assessment that must be submitted to the department in the form and manner prescribed by the commissioner;

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(3) provide comprehensive program content aligned with the state early learning standards, including the implementation of curriculum, assessment, and intentional instructional strategies ~~aligned with the state early learning standards, and kindergarten through grade 3 academic standards~~;

(4) provide instructional content and activities that are of sufficient length and intensity to address learning needs including offering a program with at least ~~350~~ 850 hours of instruction per school year for a prekindergarten student;

(5) provide voluntary prekindergarten ~~instructional~~ staff salaries ~~comparable~~ and set salary schedules equivalent to the salaries of ~~local kindergarten through grade 12 instructional staff;~~ public school district elementary school staff with similar credentials and experience for school district and charter prekindergarten program sites and, to the extent practicable, for Head Start, child care center, and family child care sites;

(6) employ a lead teacher for each voluntary prekindergarten classroom who has at least a bachelor's degree in early education or a related field no later than July 1, 2028. Teachers employed by an eligible provider for at least three of the last five years immediately preceding July 1, 2022, who meet the necessary content knowledge and teaching skills for early childhood educators, as demonstrated through measures determined by the state, may be employed as a lead teacher;

~~(6)~~ (7) coordinate appropriate kindergarten transition with families~~, community-based prekindergarten programs, and school district kindergarten programs;~~ and all mixed-delivery partners within the school district;

~~(7)~~ (8) involve parents in program ~~planning~~ decision-making and transition planning by implementing parent engagement strategies that include culturally and linguistically responsive activities in prekindergarten through third grade that are aligned with early childhood family education under section 124D.13;

~~(8)~~ (9) coordinate with relevant community-based services, including health and social service agencies, to ensure children have access to comprehensive services;

~~(9)~~ (10) coordinate with all relevant school district programs and services including early childhood special education, homeless students, and English learners;

~~(10)~~ (11) ensure staff-to-child ratios of one-to-ten and a maximum group size of 20 children; in school-based programs, staff-to-child ratios and group size as required for child care center and family child care licensing in programs offered in child care centers and by family child care providers, and staff-to-child ratios and group size as determined by Head Start standards in programs offered by Head Start agencies; and

~~(11)~~ (12) provide high-quality coordinated professional development, training, and coaching for ~~both~~ school district ~~and community-based early learning~~, Head Start, child care center, and family child care providers that is informed by a measure of adult-child interactions and enables teachers to be highly knowledgeable in early childhood curriculum content, assessment, native and English language development programs, and instruction~~; and~~.

~~(12) implement strategies that support the alignment of professional development, instruction, assessments, and prekindergarten through grade 3 curricula.~~

~~(b) A voluntary prekindergarten program must have teachers knowledgeable in early childhood curriculum content, assessment, native and English language programs, and instruction.~~

(c) Districts and charter schools must include their strategy for implementing and measuring the impact of their voluntary prekindergarten program under section 120B.11 and provide results in their world's best workforce annual summary to the commissioner of education.

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Subd. 3. Mixed delivery ~~of services~~ program plan. A district or charter school may contract with a charter school, Head Start or child care centers, family child care programs licensed under section 245A.03, or a community-based organization to provide eligible children with developmentally appropriate services that meet the program requirements in subdivision 2. Components of a mixed-delivery plan include strategies for recruitment, contracting, and monitoring of fiscal compliance and program quality. School districts and charter schools that receive funding for voluntary prekindergarten programs must develop and submit a mixed-delivery program plan to the Department of Education annually by July 1, 2023, and every year thereafter, in a manner and format prescribed by the commissioner. The plan must ensure alignment of all voluntary prekindergarten program providers within the school district boundaries in meeting the program requirements in subdivision 2 and must include:

(1) a description of the process used to convene and obtain group agreement among all voluntary prekindergarten program providers within the district boundaries in order to coordinate efforts regarding the requirements in subdivision 2;

(2) a description of the voluntary prekindergarten program providers within the school district boundaries, including but not limited to the name and location of partners and the number of hours and days per week the program will be offered at each program site;

(3) an estimate of the number of eligible children to be served in the program at each school site or mixed‑delivery location;

(4) a plan for recruitment, outreach, and communication regarding the availability of public prekindergarten programming within the community;

(5) a plan for coordinating and offering professional development opportunities, as needed;

(6) a plan for coordinating the required child assessments, as needed, and continuous quality improvement efforts to ensure quality instruction;

(7) a plan for meeting the needs for any child with an individualized education plan;

(8) a plan to ensure salaries equivalent to school staff with comparable credentials and experience;

(9) a detailed plan for transitioning children and families to kindergarten; and

(10) a statement of assurances signed by the superintendent, charter school director, Head Start director, child care center director, and family child care license holder that the proposed program meets the requirements of subdivision 2. A statement of assurances must be submitted in the mixed-delivery program plan and must be signed by an individual from each voluntary prekindergarten program provider with authority to enter into the agreement.

Subd. 3a. Funding. (a) School district and charter school voluntary prekindergarten providers are funded based on the number of eligible pupils enrolled as authorized under chapters 124D, 124E, and 126C.

(b) Head Start voluntary prekindergarten providers that are licensed under section 245A.03 and meet the requirements of subdivisions 2 and 3 must receive $11,000 per child served per year.

(c) Licensed child care center and family child care voluntary prekindergarten providers that are licensed under section 245A.03 and meet the requirements of subdivisions 2 and 3 must receive $11,000 per child served per year.

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(d) The commissioner must establish a process for allocating the seats under paragraphs (b) and (c) that match community strengths, capacity, and needs. The number of seats per year is subject to the availability of appropriations.

(e) Up to 2.5 percent of the amounts appropriated for paragraphs (b) and (c) may be used for distribution of funds.

Subd. 4. Eligibility. A (a) An eligible child means a child who:

(1) is four years of age as of September 1 in the calendar year in which the school year commences is; and

(2) meets at least one of the following criteria:

(i) qualifies for free or reduced-price meals;

(ii) is an English learner as defined by section 124D.59, subdivision 2;

(iii) is American Indian;

(iv) is experiencing homelessness;

(v) has an individualized education plan under section 125A.08;

(vi) was identified as having a potential risk factor that may influence learning through health and developmental screening under sections 121A.16 to 121.19;

(vii) is in foster care, in need of child protection services, or in kinship care, including children receiving Northstar kinship assistance under chapter 256N;

(viii) has a parent who is a migrant or seasonal agriculture laborer under section 181.85; or

(ix) has a parent who is incarcerated.

(b) An eligible to child is eligible to participate in a voluntary prekindergarten program free of charge. ~~An eligible four-year-old child served in a mixed-delivery system by a child care center, family child care program licensed under section 245A.03, or community-based organization~~ Programs may charge a sliding fee for the instructional hours that exceed 850 hours during the school year, any hours that provide before- or after-school child care during the school year, or any hours that provide child care during the summer. A child that does not meet the eligibility requirements in paragraph (a), clause (2), may participate in the same classroom as eligible children and may be charged a sliding fee as long as ~~the mixed-delivery partner~~ state funding was not awarded ~~a seat~~ for that child.

(c) Each eligible child must complete a health and developmental screening within 90 days of program enrollment under sections 121A.16 to 121A.19, and provide documentation of required immunizations under section 121A.15.

Subd. 5. Application process; priority for high poverty schools. (a) To qualify for program approval for fiscal year 2017, a district or charter school must submit an application to the commissioner by July 1, 2016. To qualify for program approval for fiscal year 2018 and later, a district or charter school must submit an application to the commissioner by January 30 of the fiscal year prior to the fiscal year in which the program will be implemented. The application must include:

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(1) a description of the proposed program, including the number of hours per week the program will be offered at each school site or mixed-delivery location;

(2) an estimate of the number of eligible children to be served in the program at each school site or mixed‑delivery location; and

(3) a statement of assurances signed by the superintendent or charter school director that the proposed program meets the requirements of subdivision 2.

(b) The commissioner must review all applications submitted for fiscal year 2017 by August 1, 2016, and must review all applications submitted for fiscal year 2018 and later by March 1 of the fiscal year in which the applications are received and determine whether each application meets the requirements of paragraph (a).

(c) The commissioner must divide all applications for new or expanded voluntary prekindergarten programs under this section meeting the requirements of paragraph (a) and school readiness plus programs into four groups as follows: the Minneapolis and St. Paul school districts; other school districts located in the metropolitan equity region as defined in section 126C.10, subdivision 28; school districts located in the rural equity region as defined in section 126C.10, subdivision 28; and charter schools. Within each group, the applications must be ordered by rank using a sliding scale based on the following criteria:

(1) concentration of kindergarten students eligible for free or reduced-price lunches by school site on October 1 of the previous school year. A school site may contract to partner with a community-based provider or Head Start under subdivision 3 or establish an early childhood center and use the concentration of kindergarten students eligible for free or reduced-price meals from a specific school site as long as those eligible children are prioritized and guaranteed services at the mixed-delivery site or early education center. For school district programs to be operated at locations that do not have free and reduced-price lunch concentration data for kindergarten programs for October 1 of the previous school year, including mixed-delivery programs, the school district average concentration of kindergarten students eligible for free or reduced-price lunches must be used for the rank ordering;

(2) presence or absence of a three- or four-star Parent Aware rated program within the school district or close proximity of the district. School sites with the highest concentration of kindergarten students eligible for free or reduced-price lunches that do not have a three- or four-star Parent Aware program within the district or close proximity of the district shall receive the highest priority, and school sites with the lowest concentration of kindergarten students eligible for free or reduced-price lunches that have a three- or four-star Parent Aware rated program within the district or close proximity of the district shall receive the lowest priority; and

(3) whether the district has implemented a mixed delivery system.

(d) The limit on participation for the programs as specified in subdivision 6 must initially be allocated among the four groups based on each group's percentage share of the statewide kindergarten enrollment on October 1 of the previous school year. Within each group, the participation limit for fiscal years 2018 and 2019 must first be allocated to school sites approved for aid in the previous year to ensure that those sites are funded for the same number of participants as approved for the previous year. The remainder of the participation limit for each group must be allocated among school sites in priority order until that region's share of the participation limit is reached. If the participation limit is not reached for all groups, the remaining amount must be allocated to the highest priority school sites, as designated under this section, not funded in the initial allocation on a statewide basis. For fiscal year 2020 and later, the participation limit must first be allocated to school sites approved for aid in fiscal year 2017, and then to school sites approved for aid in fiscal year 2018 based on the statewide rankings under paragraph (c).

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(e) Once a school site or a mixed delivery site under subdivision 3 is approved for aid under this subdivision, it shall remain eligible for aid if it continues to meet program requirements, regardless of changes in the concentration of students eligible for free or reduced-price lunches.

(f) If the total number of participants approved based on applications submitted under paragraph (a) is less than the participation limit under subdivision 6, the commissioner must notify all school districts and charter schools of the amount that remains available within 30 days of the initial application deadline under paragraph (a), and complete a second round of allocations based on applications received within 60 days of the initial application deadline.

(g) Procedures for approving applications submitted under paragraph (f) shall be the same as specified in paragraphs (a) to (d), except that the allocations shall be made to the highest priority school sites not funded in the initial allocation on a statewide basis.

Subd. 6. Participation limits. (a) Notwithstanding section 126C.05, subdivision 1, paragraph (d), the pupil units for a voluntary prekindergarten program for an eligible school district or charter school must not exceed 60 percent of the kindergarten pupil units for that school district or charter school under section 126C.05, subdivision 1, paragraph (e).

(b) In reviewing applications under subdivision 5, the commissioner must limit the total number of participants in the voluntary prekindergarten and school readiness plus programs under Laws 2017, First Special Session chapter 5, article 8, section 9, to not more than 7,160 participants for fiscal years 2019, 2020, 2021, 2022, and 2023, and 3,160 participants for fiscal years 2024 and later.

Subd. 7. Financial accounting. An eligible school district or charter school must record expenditures attributable to voluntary prekindergarten pupils according to guidelines prepared by the commissioner under section 127A.17. Child care centers, family child care providers, and Head Start agencies must record expenditures attributable to voluntary prekindergarten pupils according to guidelines developed and approved by the commissioner of education.

EFFECTIVE DATE. This section is effective for revenue for fiscal year 2023 and later.

Sec. 4. Minnesota Statutes 2021 Supplement, section 126C.05, subdivision 1, is amended to read:

Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), in average daily membership enrolled in the district of residence, in another district under sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under chapter 124E; or for whom the resident district pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved by the commissioner and has an individualized education program is counted as the ratio of the number of hours of assessment and education service to 825 times 1.0 with a minimum average daily membership of 0.28, but not more than 1.0 pupil unit.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is counted as the ratio of the number of hours of assessment service to 825 times 1.0.

(c) A kindergarten pupil with a disability who is enrolled in a program approved by the commissioner is counted as the ratio of the number of hours of assessment and education services required in the fiscal year by the pupil's individualized education program to 875, but not more than one.

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(d) A prekindergarten pupil who is not included in paragraph (a) or (b) and is enrolled in ~~an approved~~ a voluntary prekindergarten program under section 124D.151 ~~is counted as the ratio of the number of hours of instruction to 850 times 1.0, but not more than 0.6 pupil units~~ that meets the minimum hours required in section 120A.41 is counted as 1.0 pupil unit.

(e) A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil unit if the pupil is enrolled in a free all-day, every day kindergarten program available to all kindergarten pupils at the pupil's school that meets the minimum hours requirement in section 120A.41, or is counted as .55 pupil unit, if the pupil is not enrolled in a free all-day, every day kindergarten program available to all kindergarten pupils at the pupil's school.

(f) A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.

(g) A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted as 1.2 pupil units.

~~(i) For fiscal years 2018 through 2023, a prekindergarten pupil who:~~

~~(1) is not included in paragraph (a), (b), or (d);~~

~~(2) is enrolled in a school readiness plus program under Laws 2017, First Special Session chapter 5, article 8, section 9; and~~

~~(3) has one or more of the risk factors specified by the eligibility requirements for a school readiness plus program,~~

is counted as the ratio of the number of hours of instruction to 850 times 1.0, but not more than 0.6 pupil units. A pupil qualifying under this paragraph must be counted in the same manner as a voluntary prekindergarten student for all general education and other school funding formulas.

EFFECTIVE DATE. This section is effective for revenue for fiscal year 2023 and later.

Sec. 5. Minnesota Statutes 2021 Supplement, section 126C.05, subdivision 3, is amended to read:

Subd. 3. Compensation revenue pupil units. Compensation revenue pupil units must be computed according to this subdivision.

(a) The compensation revenue concentration percentage for each building in a district equals the product of 100 times the ratio of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch plus one-half of the pupils eligible to receive reduced priced lunch on October 1 of the previous fiscal year; to

(2) the number of pupils enrolled in the building on October 1 of the previous fiscal year.

(b) The compensation revenue pupil weighting factor for a building equals the lesser of one or the quotient obtained by dividing the building's compensation revenue concentration percentage by 80.0.

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch and one-half of the pupils eligible to receive reduced priced lunch on October 1 of the previous fiscal year; times

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(2) the compensation revenue pupil weighting factor for the building; times

(3) .60.

(d) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten programs under section 124D.151, charter schools, and contracted alternative programs in the first year of operation, compensation revenue pupil units shall be computed using data for the current fiscal year. If the voluntary prekindergarten program, charter school, or contracted alternative program begins operation after October 1, compensatory revenue pupil units shall be computed based on pupils enrolled on an alternate date determined by the commissioner, and the compensation revenue pupil units shall be prorated based on the ratio of the number of days of student instruction to 170 days.

(e) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten seats discontinued in fiscal year 2024 due to the reduction in the participation limit under section 124D.151, subdivision 6, those discontinued seats must not be used to calculate compensation revenue pupil units for fiscal year 2024.

~~(f)~~ (e) The percentages in this subdivision must be based on the count of individual pupils and not on a building average or minimum.

EFFECTIVE DATE. This section is effective for revenue for fiscal year 2023 and later.

Sec. 6. Minnesota Statutes 2021 Supplement, section 126C.10, subdivision 2d, is amended to read:

Subd. 2d. Declining enrollment revenue. (a) A school district's declining enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the formula allowance for that year and (2) the difference between the adjusted pupil units for the preceding year and the adjusted pupil units for the current year.

(b) Notwithstanding paragraph (a), for prekindergarten programs for fiscal year ~~2024~~ 2023 only, prekindergarten pupil units under section 126C.05, subdivision 1, paragraph ~~(d)~~ (c), must be excluded from the calculation of declining enrollment revenue.

EFFECTIVE DATE. This section is effective for revenue for fiscal year 2023 and later.

Sec. 7. Laws 2021, First Special Session chapter 13, article 9, section 4, subdivision 3, is amended to read:

Subd. 3. Early learning scholarships. (a) For the early learning scholarship program under Minnesota Statutes, section 124D.165:

		$70,709,000	. . . . .	2022
		$70,709,000	. . . . .	2023

(b) This appropriation is subject to the requirements under Minnesota Statutes, section 124D.165, subdivision 6.

(c) Notwithstanding section 124D.165, for fiscal year 2023 only, the commissioner may allocate funds to Head Start agencies, child care centers, and family child care providers as necessary to implement the voluntary prekindergarten transition year, including allocating funds under section 124D.165 as they existed prior to the date of enactment of this act.

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Sec. 8. TRANSITION YEAR IN 2023.

(a) Fiscal year 2023 may serve as a transition year in order to give current voluntary prekindergarten programs, school readiness plus programs, and early learning scholarships pathway II programs a year to transition to the new voluntary prekindergarten program for eligible four-year-old children and to make the necessary adjustments to meet the additional program requirements and facilitate relationships with all voluntary prekindergarten program providers within the school district boundaries.

(b) For fiscal year 2023 only, school districts operating a voluntary prekindergarten program under Minnesota Statutes, section 124D.151, or school readiness plus program under Laws 2017, First Special Session chapter 5, article 8, section 9, may apply to the Department of Education to allow the program to continue to operate under the provisions of Minnesota Statutes, sections 124D.151 and 126C.05, subdivision 1, as they existed prior to the date of enactment of this act.

Sec. 9. APPROPRIATIONS.

Subdivision 1. Department of Education. The sums indicated in this section are appropriated from the general fund to the Department of Education for the fiscal years designated.

Subd. 2. Voluntary prekindergarten through mixed delivery. For voluntary prekindergarten provided by Head Start agencies, child care centers, and family child care providers under Minnesota Statutes, section 124D.151, subdivision 3a, paragraphs (b) and (c).

		$0	. . . . .	2022
		$96,920,000	. . . . .	2023

Sec. 10. REPEALER.

(a) Minnesota Statutes 2020, section 124D.151, subdivision 5, is repealed.

(b) Minnesota Statutes 2021 Supplement, section 124D.151, subdivision 6, is repealed.

EFFECTIVE DATE. This section is effective July 1, 2022."

Delete the title and insert:

"A bill for an act relating to early childhood; making changes to prekindergarten programs; providing for voluntary prekindergarten for eligible four-year-old children; establishing a transition year for early childhood programs; appropriating money; amending Minnesota Statutes 2020, sections 120A.20, subdivision 1; 120A.41; 124D.151, as amended; Minnesota Statutes 2021 Supplement, sections 126C.05, subdivisions 1, 3; 126C.10, subdivision 2d; Laws 2021, First Special Session chapter 13, article 9, section 4, subdivision 3; repealing Minnesota Statutes 2020, section 124D.151, subdivision 5; Minnesota Statutes 2021 Supplement, section 124D.151, subdivision 6."

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

The report was adopted.

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SECOND READING OF HOUSE BILLS

H. F. Nos. 1829 and 3255 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Lippert introduced:

H. F. No. 4709, A bill for an act relating to redistricting; adjusting the house of representatives district boundaries within Senate District 58; proposing coding for new law in Minnesota Statutes, chapter 2.

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

Lislegard introduced:

H. F. No. 4710, A bill for an act relating to energy; amending the definition of pipeline; amending Minnesota Statutes 2020, section 216G.02, subdivision 1.

The bill was read for the first time and referred to the Committee on Climate and Energy Finance and Policy.

Wolgamott introduced:

H. F. No. 4711, A bill for an act relating to public safety; expanding the doxing crime to include other criminal justice officials; amending Minnesota Statutes 2021 Supplement, section 609.5151.

The bill was read for the first time and referred to the Committee on Public Safety and Criminal Justice Reform Finance and Policy.

Kotyza-Witthuhn introduced:

H. F. No. 4712, A bill for an act relating to capital investment; appropriating money for riverbank stabilization in the lower Minnesota River; authorizing the sale and issuance of state bonds.

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

Mekeland introduced:

H. F. No. 4713, A bill for an act relating to local government; creating a contested annexation account for reimbursement of township attorney fees incurred in a contested annexation; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 414.

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

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Jordan; Hansen, R.; Hausman; Freiberg; Fischer; Carlson and Thompson introduced:

H. F. No. 4714, A bill for an act relating to state government; appropriating money for humanitarian relief aid for Ukraine; requiring a report.

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

Lillie introduced:

H. F. No. 4715, A bill for an act relating to energy; expanding the state building energy loan program to include the installation of solar energy in buildings in state parks; transferring money; amending Minnesota Statutes 2021 Supplement, sections 16B.86; 16B.87.

The bill was read for the first time and referred to the Committee on Climate and Energy Finance and Policy.

Olson, B., introduced:

H. F. No. 4716, A bill for an act relating to capital investment; appropriating money for roadway improvements in the city of Waldorf; authorizing the sale and issuance of state bonds.

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

Stephenson introduced:

H. F. No. 4717, A bill for an act relating to commerce; modifying provisions governing unfair practices by motor vehicle manufacturers; amending Minnesota Statutes 2020, sections 80E.03, subdivision 4; 80E.13.

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

Koegel introduced:

H. F. No. 4718, A bill for an act relating to capital investment; appropriating money for Anoka County State-Aid Highway 1 interchange improvements at marked Trunk Highway 610 in the city of Coon Rapids; authorizing the sale and issuance of state bonds.

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

Koegel introduced:

H. F. No. 4719, A bill for an act relating to capital investment; appropriating money for Anoka County State-Aid Highway 1 interchange improvements at marked Trunk Highway 610 in the city of Coon Rapids.

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

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Gruenhagen introduced:

H. F. No. 4720, A bill for an act relating to capital investment; appropriating money for replacement of the Lake Titlow Dam; authorizing the sale and issuance of state bonds.

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

Frederick introduced:

H. F. No. 4721, A bill for an act relating to capital investment; appropriating money for a regional sports facility at Minnesota State University Mankato; authorizing the sale and issuance of state bonds.

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

Hornstein introduced:

H. F. No. 4722, A bill for an act relating to transportation; amending requirements governing certain advertisements, public art, and signs within road rights-of-way; defining terms; amending Minnesota Statutes 2020, sections 160.27, subdivision 7, by adding a subdivision; 169.011, by adding a subdivision.

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

Daniels introduced:

H. F. No. 4723, A bill for an act relating to health; establishing the William Shegstad Healthcare Advocates Act; providing civil penalties; proposing coding for new law in Minnesota Statutes, chapter 144.

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

Masin and Huot introduced:

H. F. No. 4724, A bill for an act relating to transportation; appropriating money to the Dakota County Regional Chamber of Commerce to establish a Dakota County Transportation Management Organization.

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

Rasmusson introduced:

H. F. No. 4725, A bill for an act relating to taxation; income and corporate franchise; creating a tax credit for employer paid family leave; proposing coding for new law in Minnesota Statutes, chapter 290.

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

Scott introduced:

H. F. No. 4726, A bill for an act relating to capital investment; appropriating money to mitigate contaminants in the city of Andover; authorizing the sale and issuance of state bonds.

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

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Scott introduced:

H. F. No. 4727, A bill for an act relating to education finance; authorizing a onetime adjustment to a school district's American Indian education aid; appropriating money.

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

Scott introduced:

H. F. No. 4728, A bill for an act relating to family law; amending provisions related to parenting time determinations; amending Minnesota Statutes 2020, section 518.17, subdivision 1.

The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law.

Dettmer introduced:

H. F. No. 4729, A bill for an act relating to taxation; lawful gambling; modifying the combined net receipts tax; modifying the calculation for the stadium reserve; amending Minnesota Statutes 2020, sections 297E.02, subdivision 6; 297E.021, subdivision 2.

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

Ecklund and Sundin introduced:

H. F. No. 4730, A bill for an act relating to public safety; precluding pattern bargaining for law enforcement officer salaries; amending Minnesota Statutes 2020, section 43A.17, by adding a subdivision.

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

Bernardy introduced:

H. F. No. 4731, A bill for an act relating to taxation; income; providing a subtraction for dispositions of certain depreciable realty; amending Minnesota Statutes 2020, sections 290.0132, by adding a subdivision; 290.0134, by adding a subdivision; 290.091, subdivision 2.

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

Heinrich introduced:

H. F. No. 4732, A bill for an act relating to capital investment; appropriating money for a water treatment plant in the city of Ramsey; authorizing the sale and issuance of state bonds.

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

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Davids introduced:

H. F. No. 4733, A bill for an act relating to taxation; property; eliminating commercial and industrial property from the state general levy; amending Minnesota Statutes 2020, section 275.025, subdivision 4; Minnesota Statutes 2021 Supplement, section 275.025, subdivision 1; repealing Minnesota Statutes 2020, section 275.025, subdivisions 5, 6; Minnesota Statutes 2021 Supplement, section 275.025, subdivision 2.

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

Baker introduced:

H. F. No. 4734, A bill for an act relating to taxation; sales and use; providing an exemption for meals purchased for and provided to employees by restaurants; amending Minnesota Statutes 2020, section 297A.68, by adding a subdivision.

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

Pinto introduced:

H. F. No. 4735, A bill for an act relating to early childhood; repealing obsolete language; repealing Minnesota Statutes 2020, section 124D.165, subdivision 5.

The bill was read for the first time and referred to the Committee on Early Childhood Finance and Policy.

Hansen, R., introduced:

H. F. No. 4736, A bill for an act relating to environment; requiring rulemaking to address certain climate issues for wastewater and water supply projects; amending Minnesota Statutes 2020, sections 116.182, subdivision 5; 446A.081, subdivision 12.

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

Lislegard introduced:

H. F. No. 4737, A bill for an act relating to energy; amending the definition of pipeline; amending Minnesota Statutes 2020, section 216G.02, subdivision 1.

The bill was read for the first time and referred to the Committee on Climate and Energy Finance and Policy.

REPORT FROM THE COMMITTEE ON RULES

AND LEGISLATIVE ADMINISTRATION

Winkler from the Committee on Rules and Legislative Administration, pursuant to rules 1.21 and 3.33, designated the following bills to be placed on the Calendar for the Day for Monday, April 4, 2022 and established a prefiling requirement for amendments offered to the following bills:

S. F. No. 2736; and H. F. Nos. 4065, 3620, 3013, 3296, 3989 and 1442.

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CALENDAR FOR THE DAY

H. F. No. 3216, A bill for an act relating to transportation; amending membership of the local road improvement program advisory committee; amending Minnesota Statutes 2020, section 174.52, subdivision 3.

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 130 yeas and 0 nays as follows:

Those who voted in the affirmative were:

The bill was passed and its title agreed to.

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Winkler 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 Wolgamott.

There being no objection, the order of business reverted to Messages from the Senate.

MESSAGES FROM THE SENATE

The following message was received from the Senate:

Madam Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

S. F. No. 3472.

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.

Cal R. Ludeman, Secretary of the Senate

SUSPENSION OF RULES

Winkler moved that Joint Rule 2.06, relating to Conference Committees, be suspended as it relates to S. F. No. 3472. The motion prevailed.

CONFERENCE COMMITTEE REPORT ON S. F. No. 3472

A bill for an act relating to state government; extending the operation of the Minnesota premium security plan; transferring money; appropriating money; amending Minnesota Statutes 2020, section 62E.23, subdivision 3; Laws 2017, chapter 13, article 1, section 15, as amended; Laws 2021, First Special Session chapter 7, article 15, section 3.

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March 31, 2022

The Honorable David J. Osmek

President of the Senate

The Honorable Melissa Hortman

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 3472 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. 3472 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2020, 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, the amount in fiscal year 2024 shall not exceed $70,215,000, and the amount in any fiscal biennium thereafter shall not exceed $244,000,000. The purpose of this transfer is to meet the rate increase required under section 256B.04, subdivision 25.

(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 2020, section 62E.23, subdivision 3, is amended to read:

Subd. 3. Operation. (a) The board shall propose to the commissioner the payment parameters for the next benefit year by January 15 of the year before the applicable benefit year. The commissioner shall approve or reject the payment parameters no later than 14 days following the board's proposal. If the commissioner fails to approve or reject the payment parameters within 14 days following the board's proposal, the proposed payment parameters are final and effective.

(b) If the amount in the premium security plan account in section 62E.25, subdivision 1, is not anticipated to be adequate to fully fund the approved payment parameters as of July 1 of the year before the applicable benefit year, the board, in consultation with the commissioner and the commissioner of management and budget, shall propose payment parameters within the available appropriations. The commissioner must permit an eligible health carrier to revise an applicable rate filing based on the final payment parameters for the next benefit year.

(1) an attachment point of $50,000;

(2) a coinsurance rate of 80 percent; and

(3) a reinsurance cap of $250,000.

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Sec. 3. [62Q.521] POSTNATAL CARE.

(a) For purposes of this section, "comprehensive postnatal visit" means a visit with a health care provider that includes a full assessment of the mother's and infant's physical, social, and psychological well-being, including but not limited to: mood and emotional well-being; infant care and feeding; sexuality, contraception, and birth spacing; sleep and fatigue; physical recovery from birth; chronic disease management; and health maintenance.

(b) A health plan must provide coverage for the following:

(1) a comprehensive postnatal visit with a health care provider not more than three weeks from the date of delivery;

(2) any postnatal visits recommended by a health care provider between three and 11 weeks from the date of delivery; and

(3) a comprehensive postnatal visit with a health care provider 12 weeks from the date of delivery.

EFFECTIVE DATE. This section is effective January 1, 2023, and applies to health plans offered, issued, or renewed on or after that date.

Sec. 4. Minnesota Statutes 2020, section 62Q.81, is amended by adding a subdivision to read:

Subd. 6. Prescription drug benefits. (a) A health plan company that offers individual health plans must ensure that, in each geographic area the health plan company services, no fewer than one silver plan and one gold plan the health plan company offers apply a predeductible, flat-dollar amount co-payment structure to the entire drug benefit, including all tiers.

(b) A health plan company that offers small group health plans must ensure that, in each geographic area the health plan company services, no fewer than one silver plan and one gold plan the health plan company offers apply a predeductible, flat-dollar amount co-payment structure to the entire drug benefit, including all tiers.

(c) The highest allowable co-payment for the highest cost drug tier for health plans offered pursuant to this subdivision must be no greater than 1/12 of the plan's out-of-pocket maximum for an individual.

(d) The flat-dollar amount co-payment tier structure for prescription drugs under this subdivision must be graduated and proportionate.

(e) All individual and small group health plans offered pursuant to this subdivision must be:

(1) clearly and appropriately named to aid the purchaser in the selection process;

(2) marketed in the same manner as other health plans offered by the health plan company; and

(3) offered for purchase to any individual or small group.

(f) This subdivision does not apply to catastrophic plans, grandfathered plans, large group health plans, health savings accounts, qualified high deductible health benefit plans, limited health benefit plans, or short-term limited‑duration health insurance policies.

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(g) A health plan company or a pharmacy benefit manager, as defined in section 62W.02, subdivision 15, must not delay or divide payment to a pharmacy or pharmacy provider, as defined in section 62W.02, subdivision 14, because of the co-payment structure of a health plan offered pursuant to this subdivision.

(h) Health plan companies must meet the requirements in this subdivision separately for plans offered through MNsure under chapter 62V and plans offered outside of MNsure.

(i) Notwithstanding section 62A.65, subdivision 2, a health plan company may discontinue offering a health plan under this subdivision if, three years after the date the silver or gold health plan is initially offered, the silver or gold health plan has fewer than 75 enrollees enrolled in the plan. A health plan company discontinuing a plan under this paragraph must only discontinue the silver or gold health plan that has fewer than 75 enrollees and:

(1) provide notice of the plan's discontinuation in writing, in a form prescribed by the commissioner, to each individual enrolled in the plan at least 90 calendar days before the date the coverage is discontinued;

(2) offer on a guaranteed issue basis to each individual enrolled the option to purchase an individual health plan currently being offered by the health plan company for individuals in that geographic rating area. An enrollee who does not select an option must be automatically enrolled in the individual health plan closest in actuarial value to the enrollee's current plan; and

(3) act uniformly without regard to any health status-related factor of enrolled individuals or dependents of enrolled individuals who may become eligible for coverage.

(j) A health plan company must annually report to the commissioner, as specified by the commissioner, the total enrollment in silver and gold plans under this subdivision.

EFFECTIVE DATE. This section is effective January 1, 2024, and applies to individual and small group health plans offered, issued, or renewed on or after that date.

Sec. 5. Laws 2017, chapter 13, article 1, section 15, as amended by Laws 2017, First Special Session chapter 6, article 5, section 10, Laws 2019, First Special Session chapter 9, article 8, section 19, and Laws 2021, First Special Session chapter 7, article 15, section 1, is amended to read:

Sec. 15. MINNESOTA PREMIUM SECURITY PLAN FUNDING.

(a) The Minnesota Comprehensive Health Association shall fund the operational and administrative costs and reinsurance payments of the Minnesota security plan and association using the following amounts deposited in the premium security plan account in Minnesota Statutes, section 62E.25, subdivision 1, in the following order:

(1) any federal funding available;

(2) funds deposited under article 1, sections 12 and 13;

(3) any state funds from the health care access fund; and

(4) any state funds from the general fund.

(b) The association shall transfer from the premium security plan account any remaining state funds not used for the Minnesota premium security plan by June 30, ~~2024~~ 2029, to the commissioner of commerce. Any amount transferred to the commissioner of commerce shall be deposited in the health care access fund in Minnesota Statutes, section 16A.724.

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(c) The Minnesota Comprehensive Health Association may not spend more than $271,000,000 for benefit year 2018 and not more than $271,000,000 for benefit year 2019 for the operational and administrative costs of, and reinsurance payments under, the Minnesota premium security plan.

Sec. 6. Laws 2021, First Special Session chapter 7, article 1, section 40, is amended to read:

Sec. 40. REPEALER.

(a) Minnesota Rules, parts 9505.0275; 9505.1693; 9505.1696, subparts 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, and 22; 9505.1699; 9505.1701; 9505.1703; 9505.1706; 9505.1712; 9505.1715; 9505.1718; 9505.1724; 9505.1727; 9505.1730; 9505.1733; 9505.1736; 9505.1739; 9505.1742; 9505.1745; and 9505.1748, are repealed.

(b) Minnesota Statutes 2020, section 16A.724, subdivision 2, is repealed effective July 1, ~~2025~~ 2024.

Sec. 7. Laws 2021, First Special Session chapter 7, article 15, section 3, is amended to read:

Sec. 3. PLAN YEAR ~~2022~~ 2023 PROPOSED RATE FILINGS FOR THE INDIVIDUAL MARKET. The rate filing deadline for individual health plans, as defined in Minnesota Statutes, section 62E.21, subdivision 9, to be offered, issued, sold, or renewed on or after January 1, ~~2022~~ 2023, and before January 1, 2024, is no later than July 9, ~~2021~~ 2022. Eligible health carriers under Minnesota Statutes, section 62E.21, subdivision 8, filing individual health plans to be offered, issued, sold, or renewed for benefit ~~year 2022~~ years 2023 through 2027 shall include the impact of the Minnesota premium security plan payment parameters in the proposed individual health plan rates. Notwithstanding Minnesota Statutes, section 60A.08, subdivision 15, paragraph (g), the commissioner must provide public access on the Department of Commerce's website to compiled data of the proposed changes to rates for individual health plans and small group health plans, as defined in Minnesota Statutes, section 62K.03, subdivision 12, separated by health plan and geographic rating area, no later than July 23, ~~2021~~ 2022.

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

Sec. 8. TRANSFER.

(a) The commissioner of management and budget must transfer $300,092,000 in fiscal year 2023 from the general fund to the premium security plan account under Minnesota Statutes, section 62E.25, subdivision 1. This is a onetime transfer.

(b) The commissioner of management and budget must transfer $229,465,000 in fiscal year 2025 from the general fund to the premium security plan account under Minnesota Statutes, section 62E.25, subdivision 1. This is a onetime transfer.

(c) $13,269,000 in fiscal year 2023 is transferred from the general fund to the MNsure enterprise fund. This is a onetime transfer.

Sec. 9. APPROPRIATIONS.

$53,404,000 in fiscal year 2023 is appropriated from the health care access fund to the commissioner of human services for the MinnesotaCare program. The base for this appropriation is $113,503,000 in fiscal year 2024, $120,442,000 in fiscal year 2025, and $60,221,000 in fiscal year 2026.

EFFECTIVE DATE. This section is effective January 1, 2023, but only if the continuation of the state innovation waiver described in Laws 2021, First Special Session chapter 7, article 15, section 4, is approved."

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Delete the title and insert:

"A bill for an act relating to state government; extending operation of the Minnesota premium security plan; requiring certain additional coverage under health plans; requiring a report; appropriating and transferring money; amending Minnesota Statutes 2020, sections 16A.724, subdivision 2; 62E.23, subdivision 3; 62Q.81, by adding a subdivision; Laws 2017, chapter 13, article 1, section 15, as amended; Laws 2021, First Special Session chapter 7, article 1, section 40; article 15, section 3; proposing coding for new law in Minnesota Statutes, chapter 62Q."

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

Senate Conferees: Gary Dahms, Paul Utke, Matt Klein, Rich Draheim and Gene Dornink.

House Conferees: Zack Stephenson, Carlie Kotyza-Witthuhn and Tim O'Driscoll.

The Speaker resumed the Chair.

Stephenson moved that the report of the Conference Committee on S. F. No. 3472 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 3472, A bill for an act relating to state government; extending the operation of the Minnesota premium security plan; transferring money; appropriating money; amending Minnesota Statutes 2020, section 62E.23, subdivision 3; Laws 2017, chapter 13, article 1, section 15, as amended; Laws 2021, First Special Session chapter 7, article 15, section 3.

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 106 yeas and 25 nays as follows:

Those who voted in the affirmative were: