House Journal 40th Day Thursday March 23 2023

A quorum was present.

Kiel and Lislegard 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 - 40th Day - Thursday, March 23, 2023 - Top of Page 2124

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Liebling from the Committee on Health Finance and Policy to which was referred:

H. F. No. 402, A bill for an act relating to health; requiring notice, review, and approval for certain health care entity transactions; requiring a health system to return charitable assets received from the state to the general fund in certain circumstances; amending Minnesota Statutes 2022, section 317A.811, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 144.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [144.588] REQUIREMENTS FOR CERTAIN HEALTH CARE ENTITY TRANSACTIONS.

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

(b) "Captive professional entity" means a professional corporation, limited liability company, or other entity formed to render professional services in which a beneficial owner is a health care provider employed by, controlled by, or subject to the direction of a hospital or hospital system.

(d) "Health care entity" means:

(1) a hospital;

(2) a hospital system;

(3) a captive professional entity;

(4) a medical foundation;

(5) a health care provider group practice;

(6) an entity organized or controlled by an entity listed in clauses (1) to (5); or

(7) an entity that owns or exercises substantial control over an entity listed in clauses (1) to (5).

(e) "Health care provider" means a physician licensed under chapter 147, a physician assistant licensed under chapter 147A, or an advanced practice registered nurse as defined in section 148.171, subdivision 3, who provides health care services, including but not limited to medical care, consultation, diagnosis, or treatment.

(f) "Health care provider group practice" means two or more health care providers legally organized in a partnership, professional corporation, limited liability company, medical foundation, nonprofit corporation, faculty practice plan, or other similar entity:

(1) in which each health care provider who is a member of the group provides substantially the full range of services that a health care provider routinely provides, including but not limited to medical care, consultation, diagnosis, and treatment through the joint use of shared office space, facilities, equipment, or personnel;

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2125

(2) for which substantially all services of the health care providers who are group members are provided through the group and are billed in the name of the group practice and amounts so received are treated as receipts of the group; or

(3) in which the overhead expenses of, and the income from, the group are distributed in accordance with methods previously determined by members of the group.

An entity that otherwise meets the definition of health care provider group practice in this paragraph shall be considered a health care provider group practice even if its shareholders, partners, or owners include single health care provider professional corporations, limited liability companies formed to render professional services, or other entities in which beneficial owners are individual health care providers.

(g) "Hospital" means a health care facility licensed as a hospital under sections 144.50 to 144.56.

(h) "Medical foundation" means a nonprofit legal entity through which physicians or other health care providers perform research or provide medical services.

(i) "Transaction" means a single action, or a series of actions within a five-year period, that constitutes:

(1) a merger or exchange of a health care entity with another entity;

(2) the sale, lease, or transfer of 30 percent or more of the assets of a health care entity to another entity;

(3) the granting of a security interest of 30 percent or more of the property and assets of a health care entity to another entity;

(4) the transfer of 30 percent or more of the shares or other ownership of the health care entity to another entity;

(5) an addition or substitution of one or more members of the health care entity's governing body that effectively transfers control of, responsibility for, or governance of the health care entity to another entity;

(6) the creation of a new health care entity; or

(7) substantial investment of 30 percent or more in a health care entity that results in sharing of revenues without a change in ownership or voting shares.

Subd. 2. Notice required. (a) This subdivision applies to all transactions where:

(1) the health care entity involved in the transaction has average revenue of at least $10,000,000 per year; or

(2) an entity created by the transaction is projected to have average revenue of at least $10,000,000 per year once the entity is operating at full capacity.

(b) A health care entity must provide notice to the attorney general and the commissioner and comply with this subdivision before entering into a transaction. Notice must be provided at least 180 days before the proposed completion date for the transaction.

(c) As part of the notice required under this subdivision, at least 180 days before the proposed completion date of the transaction, a health care entity must affirmatively disclose the following to the attorney general and the commissioner:

(1) the entities involved in the transaction;

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2126

(2) the leadership of the entities involved in the transaction, including all directors, board members, and officers;

(3) the services provided by each entity and the attributed revenue for each entity by location;

(4) the primary service area for each location;

(5) the proposed service area for each location;

(6) the current relationships between the entities and the health care providers and practices affected, the locations of affected health care providers and practices, the services provided by affected health care providers and practices, and the proposed relationships between the entities and the health care providers and practices affected;

(7) the terms of the transaction agreement or agreements;

(8) the acquisition price;

(9) markets in which the entities expect postmerger synergies to produce a competitive advantage;

(10) potential areas of expansion, whether in existing markets or new markets;

(11) plans to close facilities, reduce workforce, or reduce or eliminate services;

(12) the experts and consultants used to evaluate the transaction;

(13) the number of full-time equivalent positions at each location before and after the transaction by job category, including administrative and contract positions; and

(14) any other information requested by the attorney general or commissioner.

(d) As part of the notice required under this subdivision, at least 180 days before the proposed completion date of the transaction, a health care entity must affirmatively produce the following to the attorney general and the commissioner:

(1) the current governing documents for all entities involved in the transaction and any amendments to these documents;

(2) the transaction agreement or agreements and all related agreements;

(3) any collateral agreements related to the principal transaction, including leases, management contracts, and service contracts;

(4) all expert or consultant reports or valuations conducted in evaluating the transaction, including any valuation of the assets that are subject to the transaction prepared within three years preceding the anticipated transaction completion date and any reports of financial or economic analysis conducted in anticipation of the transaction;

(5) the results of any projections or modeling of health care utilization or financial impacts related to the transaction, including but not limited to copies of reports by appraisers, accountants, investment bankers, actuaries, and other experts;

(6) a financial and economic analysis and report prepared by an independent expert or consultant on the effects of the transaction;

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2127

(7) an impact analysis report prepared by an independent expert or consultant on the effects of the transaction on communities and the workforce, including any changes in availability or accessibility of services;

(8) all documents reflecting the purposes of or restrictions on any related nonprofit entity's charitable assets;

(9) copies of all filings submitted to federal regulators, including any Hart-Scott-Rodino filing the entities submitted to the Federal Trade Commission in connection with the transaction;

(10) a certification sworn under oath by each board member and chief executive officer for any nonprofit entity involved in the transaction containing the following: an explanation of how the completed transaction is in the public interest, addressing the factors in subdivision 5, paragraph (a); a disclosure of each declarant's compensation and benefits relating to the transaction for the three years following the transaction's anticipated completion date; and a disclosure of any conflicts of interest;

(11) audited and unaudited financial statements from all entities involved in the transaction and tax filings for all entities involved in the transaction covering the preceding five fiscal years; and

(12) any other information or documents requested by the attorney general or commissioner.

(e) The commissioner may adopt rules to implement this section, and may alter, amend, suspend, or repeal any of these rules. The requirements of section 14.125 do not apply to the adoption of rules under this paragraph.

(f) The attorney general may extend the notice and waiting period required under paragraph (b) for an additional 90 days by notifying the health care entity in writing of the extension.

(g) The attorney general may waive all or any part of the notice and waiting period required under paragraph (b).

(h) The attorney general or the commissioner may hold public listening sessions or forums to obtain input on the transaction from providers or community members who may be impacted by the transaction.

(i) The attorney general or the commissioner may bring an action in district court to compel compliance with the notice requirements in this subdivision.

Subd. 3. Prohibited transactions. No health care entity may enter into a transaction that will:

(1) substantially lessen competition; or

(2) tend to create a monopoly or monopsony.

Subd. 4. Additional requirements for nonprofit health care entities. A health care entity that is incorporated under chapter 317A or organized under section 322C.1101, or that is a subsidiary of any such entity, must, before entering into a transaction, ensure that:

(1) the transaction complies with chapters 317A and 501B and other applicable laws;

(2) the transaction does not involve or constitute a breach of charitable trust;

(3) the nonprofit health care entity will receive full and fair value for its public benefit assets;

(4) the value of the public benefit assets to be transferred has not been manipulated in a manner that causes or has caused the value of the assets to decrease;

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2128

(5) the proceeds of the transaction will be used in a manner consistent with the public benefit for which the assets are held by the nonprofit health care entity;

(6) the transaction will not result in a breach of fiduciary duty; and

(7) there are procedures and policies in place to prohibit any officer, director, trustee, or other executive of the nonprofit health care entity from directly or indirectly benefiting from the transaction.

Subd. 5. Attorney general enforcement and supplemental authority. (a) The attorney general may bring an action in district court to enjoin or unwind a transaction or seek other equitable relief necessary to protect the public interest if a health care entity or transaction violates this section, if the transaction is contrary to the public interest, or if both a health care entity and transaction violate this section and the transaction is contrary to the public interest. Factors informing whether a transaction is contrary to the public interest include but are not limited to whether the transaction:

(1) will harm public health;

(2) will reduce the affected community's continued access to affordable and quality care and to the range of services historically provided by the entities or will prevent members in the affected community from receiving a comparable or better patient experience;

(3) will have a detrimental impact on competing health care options within primary and dispersed service areas;

(4) will reduce delivery of health care to disadvantaged, uninsured, underinsured, and underserved populations and to populations enrolled in public health care programs;

(5) will have a substantial negative impact on medical education and teaching programs, health care workforce training, or medical research;

(6) will have a negative impact on the market for health care services, health insurance services, or skilled health care workers;

(7) will increase health care costs for patients; or

(8) will adversely impact provider cost trends and containment of total health care spending.

(b) The attorney general may enforce this section under section 8.31.

(c) Failure of the entities involved in a transaction to provide timely information as required by the attorney general or the commissioner shall be an independent and sufficient ground for a court to enjoin the transaction or provide other equitable relief, provided the attorney general notified the entities of the inadequacy of the information provided and provided the entities with a reasonable opportunity to remedy the inadequacy.

(d) The attorney general shall consult with the commissioner to determine whether a transaction is contrary to the public interest. Any information exchanged between the attorney general and the commissioner according to this subdivision is confidential data on individuals as defined in section 13.02, subdivision 3, or protected nonpublic data as defined in section 13.02, subdivision 13. The commissioner may share with the attorney general, according to section 13.05, subdivision 9, any not public data, as defined in section 13.02, subdivision 8a, held by the Department of Health to aid in the investigation and review of the transaction, and the attorney general must maintain this data with the same classification according to section 13.03, subdivision 4, paragraph (d).

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2129

Subd. 6. Supplemental authority of commissioner. (a) Notwithstanding any law to the contrary, the commissioner may use data or information submitted under this section and sections 62U.04 and 144.695 to 144.703 to conduct analyses of the aggregate impact of health care transactions on access to or the cost of health care services, health care market consolidation, and health care quality.

(b) The commissioner shall issue periodic public reports on the number and types of transactions subject to this section and on the aggregate impact of transactions on health care cost, quality, and competition in Minnesota.

Subd. 7. Relation to other law. (a) The powers and authority under this section are in addition to, and do not affect or limit, all other rights, powers, and authority of the attorney general or the commissioner under chapter 8, 309, 317A, 325D, 501B, or other law.

(b) Nothing in this section shall suspend any obligation imposed under chapter 8, 309, 317A, 325D, 501B, or other law on the entities involved in a transaction.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to transactions completed on or after that date. In determining whether a transaction was completed on or after the effective date, any actions or series of actions necessary to the completion of the transaction that occurred prior to the effective date must be considered.

Sec. 2. Laws 2017, First Special Session chapter 6, article 5, section 11, as amended by Laws 2019, First Special Session chapter 9, article 8, section 20, is amended to read:

Sec. 11. MORATORIUM ON CONVERSION TRANSACTIONS.

(a) Notwithstanding Laws 2017, chapter 2, article 2, a nonprofit ~~health~~ service plan corporation operating under Minnesota Statutes, chapter 62C, or a nonprofit health maintenance organization operating under Minnesota Statutes, chapter 62D, as of January 1, 2017, may only merge or consolidate with; convert; or transfer, as part of a single transaction or a series of transactions within a 24-month period, all or a material amount of its assets to an entity that is a corporation organized under Minnesota Statutes, chapter 317A; or to a Minnesota nonprofit hospital within the same integrated health system as the health maintenance organization. For purposes of this section, "material amount" means the lesser of ten percent of such an entity's total admitted net assets as of December 31 of the previous year, or $50,000,000.

(b) Paragraph (a) does not apply if the nonprofit service plan corporation or nonprofit health maintenance organization files an intent to dissolve due to insolvency of the corporation in accordance with Minnesota Statutes, chapter 317A, or insolvency proceedings are commenced under Minnesota Statutes, chapter 60B.

(c) Nothing in this section shall be construed to authorize a nonprofit health maintenance organization or a nonprofit service plan corporation to engage in any transaction or activities not otherwise permitted under state law.

(d) This section expires July 1, ~~2023~~ 2026.

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

Sec. 3. RETURN OF CHARITABLE ASSETS.

If a health system that is organized as a charitable organization, including M Health Fairview University of Minnesota Medical Center, sells or transfers control to an out-of-state nonprofit entity or to any for-profit entity, the health system must return to the general fund any charitable assets the health system received from the state.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to transactions completed on or after that date.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2130

Sec. 4. STUDY AND RECOMMENDATIONS; NONPROFIT HEALTH MAINTENANCE ORGANIZATION CONVERSIONS AND OTHER TRANSACTIONS.

(a) The commissioner of health shall study and develop recommendations on the regulation of conversions, mergers, transfers of assets, and other transactions affecting Minnesota-domiciled nonprofit health maintenance organizations and for-profit health maintenance organizations. The recommendations must address, at a minimum:

(1) monitoring and regulation of Minnesota-domiciled for-profit health maintenance organizations;

(2) issues related to public benefit assets held by a nonprofit health maintenance organization, including identifying the portion of the organization's assets that are considered public benefit assets to be protected, establishing a fair and independent process to value the assets, and how public benefit assets should be stewarded for the public good;

(3) designating a state agency or executive branch office with authority to review and approve or deny a nonprofit health maintenance organization's plan to convert to a for-profit organization; and

(4) establishing a process for the public to learn about and provide input on a nonprofit health maintenance organization's proposed conversion to a for-profit organization.

(b) To fulfill the requirements under this section, the commissioner:

(1) may consult with the commissioners of human services and commerce;

(2) may enter into one or more contracts for professional or technical services;

(3) notwithstanding any law to the contrary, may use data submitted under Minnesota Statutes, sections 62U.04 and 144.695 to 144.703, and other data held by the commissioner for purposes of regulating health maintenance organizations or already submitted to the commissioner by health carriers; and

(4) may collect from health maintenance organizations and their parent or affiliated companies financial data and other information, including nonpublic data and trade secret data, that are deemed necessary by the commissioner to conduct the study and develop the recommendations under this section. Health maintenance organizations must provide the commissioner with any information requested by the commissioner under this clause, in the form and manner specified by the commissioner. Any data collected by the commissioner under this clause is classified as confidential data on individuals as defined in Minnesota Statutes, section 13.02, subdivision 3, or protected nonpublic data as defined in Minnesota Statutes, section 13.02, subdivision 13.

(c) No later than October 1, 2023, the commissioner must seek public comments on the regulation of conversion transactions involving nonprofit health maintenance organizations.

(d) The commissioner may use the enforcement authority in Minnesota Statutes, section 62D.17, if a health maintenance organization fails to comply with a request for information under paragraph (b), clause (4).

(e) The commissioner shall submit preliminary findings from this study to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services by January 15, 2024, and shall submit a final report and recommendations to the legislature by June 30, 2024.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2131

Sec. 5. APPROPRIATIONS.

$....... in fiscal year 2024 and $....... in fiscal year 2025 are appropriated from the general fund to the commissioner of health for purposes of Minnesota Statutes, section 144.588."

Amend the title as follows:

Page 1, line 2, delete everything after the semicolon and insert "establishing requirements for certain health care entity transactions;"

Page 1, line 3, delete everything before "requiring" and insert "changing the expiration date on moratorium conversion transactions;"

Page 1, line 4, after the semicolon, insert "requiring a study on the regulation of certain transactions; requiring a report; appropriating money;"

Correct the title numbers accordingly

With the recommendation that when so amended the bill be re-referred to the Committee on Judiciary Finance and Civil Law.

The report was adopted.

Pinto from the Committee on Children and Families Finance and Policy to which was referred:

H. F. No. 1074, A bill for an act relating to economic development; appropriating money for the Minnesota Initiative Foundations.

Reported the same back with the following amendments:

Page 2, after line 9, insert:

"Sec. 2. APPROPRIATION; CHILD CARE BUSINESS SUPPORT AND TRAINING.

$1,000,000 in fiscal year 2024 and $1,000,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of employment and economic development for a grant to WomenVenture to support child care providers through business training and shared services programs and to create materials that could be used, free of charge, for start-up, expansion, and operation of child care businesses statewide, with the goal of helping new and existing child care businesses in underserved areas of the state become profitable and sustainable. The commissioner shall report data on outcomes and recommendations for replication of this training program throughout Minnesota to the governor and relevant committees of the legislature by December 15, 2025. This is a onetime appropriation."

Amend the title as follows:

Page 1, line 3, before the period, insert "; requiring a report"

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

The report was adopted.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2132

Freiberg from the Committee on Elections Finance and Policy to which was referred:

H. F. No. 1141, A bill for an act relating to elections; making technical and clarifying changes; amending Minnesota Statutes 2022, sections 203B.07, subdivisions 1, 2, 3; 203B.121, subdivision 4; 203B.21, subdivisions 1, 3; 203B.23, subdivision 2; 203B.24, subdivision 1.

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

The report was adopted.

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

H. F. No. 1750, A bill for an act relating to state government; making changes to data practices; establishing the Office of Collaboration and Dispute Resolution; establishing the Office of Enterprise Sustainability; removing an expired report on state government use of eligible contractors; modifying provisions for historic properties and fair campaign practices; amending Minnesota Statutes 2022, sections 13.04, subdivision 4; 16B.58, by adding a subdivision; 16C.36; 138.081, subdivision 3; 138.665, subdivision 2; 211B.20, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 16B; repealing Minnesota Statutes 2022, sections 179.90; 179.91.

Reported the same back with the following amendments:

Page 1, delete section 1 and insert:

"Section 1. Minnesota Statutes 2022, section 13.04, subdivision 4, is amended to read:

Subd. 4. Procedure when data is not accurate or complete. (a) An individual subject of the data may contest the accuracy or completeness of public or private data about themselves.

(b) To exercise this right, an individual shall notify in writing the responsible authority of the government entity that maintains the data, describing the nature of the disagreement.

(1) correct the data found to be inaccurate or incomplete and attempt to notify past recipients of inaccurate or incomplete data, including recipients named by the individual; or

(2) notify the individual that the responsible authority ~~believes~~ has determined the data to be correct. If the challenged data are determined to be accurate or complete, the responsible authority shall inform the individual of the right to appeal the determination to the commissioner under this section. Data in dispute shall be disclosed only if the individual's statement of disagreement is included with the disclosed data.

(d) A data subject may appeal the determination of the responsible authority ~~may be appealed~~ pursuant to the provisions of the Administrative Procedure Act relating to contested cases. An individual must submit an appeal to the commissioner within 60 days of the responsible authority's notice of the right to appeal or as otherwise provided by the rules of the commissioner. Upon receipt of an appeal by an individual, the commissioner shall, before issuing the order and notice of a contested case hearing required by chapter 14, try to resolve the dispute through education, conference, conciliation, or persuasion. If the parties consent, the commissioner may refer the matter to mediation. Following these efforts, the commissioner shall dismiss the appeal or issue the order and notice of hearing.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2133

(e) The commissioner may dismiss an appeal without first attempting to resolve the dispute or before issuing an order and notice of a contested case hearing if:

(1) the appeal to the commissioner is not timely;

(2) the appeal concerns data previously presented as evidence in a court proceeding in which the data subject was a party; or

(3) the individual making the appeal is not the subject of the data challenged as inaccurate or incomplete.

~~(b)~~ (f) Data on individuals that have been successfully challenged by an individual must be completed, corrected, or destroyed by a government entity without regard to the requirements of section 138.17.

(g) After completing, correcting, or destroying successfully challenged data, a government entity may retain a copy of the commissioner of administration's order issued under chapter 14 or, if no order were issued, a summary of the dispute between the parties that does not contain any particulars of the successfully challenged data."

Page 6, delete section 8

Page 7, line 23, after "sections" insert "16B.24, subdivision 13;"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 5, delete "and fair campaign"

Page 1, line 6, delete "practices"

Correct the title numbers accordingly

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

The report was adopted.

Hansen, R., from the Committee on Environment and Natural Resources Finance and Policy to which was referred:

H. F. No. 1828, A bill for an act relating to natural resources; modifying provisions for water and soil conservation; amending Minnesota Statutes 2022, sections 103B.101, subdivisions 9, 16, by adding a subdivision; 103B.103; 103C.501, subdivisions 1, 4, 5, 6; 103D.605, subdivision 5; 103F.505; 103F.511, by adding a subdivision; 103G.2242, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 103B; 103F; repealing Minnesota Statutes 2022, section 103C.501, subdivisions 2, 3; Minnesota Rules, parts 8400.0500; 8400.0550; 8400.0600, subparts 4, 5; 8400.0900, subparts 1, 2, 4, 5; 8400.1650; 8400.1700; 8400.1750; 8400.1800; 8400.1900.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2134

Reported the same back with the following amendments:

Page 8, after line 22, insert:

"Sec. 11. Minnesota Statutes 2022, section 103C.501, is amended by adding a subdivision to read:

Subd. 7. Inspections. The district or the district's delegate must conduct site inspections of conservation practices installed to determine if the land occupier is in compliance with design, operation, and maintenance specifications."

Page 9, line 10, after "benefits" insert "or reduce pesticide and fertilizer use"

Page 9, line 23, after "review" insert "and optimize the"

Page 9, line 30, after "benefits" insert "and reduce pesticide and fertilizer use"

Page 10, line 15, after the third comma, insert "karst geology,"

Page 10, line 20, after "as" insert "managed"

Page 10, after line 21, insert:

"Sec. 16. Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision to read:

Subd. 8d. Restored prairie. "Restored prairie" means a restoration that uses at least 25 representative and biologically diverse native prairie plant species and that occurs on land that was previously cropped or used as pasture."

Page 11, line 6, after "authorize" insert "managed" and after "and" insert "managed"

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 Ways and Means.

The report was adopted.

Klevorn from the Committee on State and Local Government Finance and Policy to which was referred:

H. F. No. 1859, A bill for an act relating to labor; creating new enforcement provisions for construction workers wage protection; amending Minnesota Statutes 2022, sections 177.27, subdivisions 1, 4, 8, 9, 10; 181.171, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 181.

Reported the same back with the following amendments:

Page 4, delete lines 33 and 34

Reletter the paragraphs in sequence

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

The report was adopted.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2135

Olson, L., from the Committee on Ways and Means to which was referred:

H. F. No. 2286, A bill for an act relating to human services; establishing procedures for the commissioner of human services related to the transition from the public health emergency; providing continuous medical assistance eligibility for children; appropriating money; amending Minnesota Statutes 2022, sections 256.962, subdivision 5; 256B.056, subdivision 7; Laws 2020, First Special Session chapter 7, section 1, subdivision 1, as amended; Laws 2021, First Special Session chapter 7, article 1, section 36.

Reported the same back with the following amendments:

Page 1, delete sections 1 and 2

Page 4, line 32, after "assistance" insert "and MinnesotaCare"

Page 5, line 5, after "assistance" insert "or MinnesotaCare"

Page 5, line 6, delete "medical assistance"

Page 5, lines 10, 15, and 18, after "assistance" insert "or MinnesotaCare"

Page 5, line 28, delete "The"

Page 5, delete lines 29 and 30

Page 5, before line 31, insert:

"(h) Notwithstanding any other law to the contrary, the commissioner shall, as required by the Centers for Medicare and Medicaid Services, suspend certain procedural terminations for medical assistance enrollees.

(i) Notwithstanding Minnesota Statutes, sections 256L.06 and 256L.15, or any other provision to the contrary, the commissioner must waive MinnesotaCare premiums for all enrollees beginning May 1, 2023, through June 30, 2024."

Page 6, delete section 5 and insert:

"Sec. 5. APPROPRIATION.

Subdivision 1. Transition to standard eligibility for medical assistance and MinnesotaCare. (a) $4,517,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of human services for medical assistance.

(b) $5,329,000 in fiscal year 2024 is appropriated from the health care access fund to the commissioner of human services for the MinnesotaCare program. This is a onetime appropriation.

(c) $21,953,000 in fiscal year 2024 and $1,323,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of human services to administer the transition to standard medical assistance and MinnesotaCare eligibility functions after March 31, 2023. This is a onetime appropriation.

(d) $1,827,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of human services for systems costs to implement the transition to standard medical assistance and MinnesotaCare eligibility functions and the suspension of MinnesotaCare premiums.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2136

(e) $36,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of human services for grants to county and Tribal processing entities to provide supplemental funding to assist processing entities with resuming medical assistance renewals after March 31, 2023. The commissioner must distribute the entire amount of this appropriation to the county and Tribal processing entities in proportion to each entity's March 2023 share of statewide enrollment in Minnesota health care programs other than MinnesotaCare.

Subd. 2. Grants to navigators. (a) $1,936,000 in fiscal year 2024 is appropriated from the health care access fund to the commissioner of human services for grants to organizations with a MNsure grant services navigator assister contract in good standing as of the date of enactment. The grant payment to each organization must be in proportion to the number of medical assistance and MinnesotaCare enrollees each organization assisted that resulted in a successful enrollment in the second quarter of fiscal years 2020 and 2023, as determined by MNsure's navigator payment process. This is a onetime appropriation and is available until June 30, 2025.

(b) $3,000,000 in fiscal year 2024 is appropriated from the health care access fund to the commissioner of human services for grants to organizations with a MNsure grant services navigator assister contract for successful enrollments in medical assistance and MinnesotaCare. This is a onetime appropriation."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 3, delete "providing"

Page 1, line 4, delete everything before "appropriating"

Correct the title numbers accordingly

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

The report was adopted.

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

H. F. No. 2300, A bill for an act relating to insurance; providing for certain premium discounts and rate reductions; establishing a strengthen Minnesota homes program; establishing an account; authorizing administrative rulemaking; proposing coding for new law in Minnesota Statutes, chapter 65A.

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

The report was adopted.

Hansen, R., from the Committee on Environment and Natural Resources Finance and Policy to which was referred:

H. F. No. 2304, A bill for an act relating to water; authorizing issuance and prohibiting modification of certain water use permits; establishing White Bear Lake Area Water Use Work Group; requiring comprehensive plan; appropriating money.

Reported the same back with the following amendments:

Page 1, delete sections 1 and 2 and insert:

"Section 1. WATER-USE PERMITS; CITY OF LAKE ELMO.

(a) Notwithstanding any other provision of law, the commissioner of natural resources may:

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2137

(1) issue permits necessary for the city of Lake Elmo to construct and operate a new municipal water supply well; and

(2) amend existing water-use permits issued to the city of Lake Elmo to increase the authorized volume of water that may be appropriated under the permits to a level consistent with the amount anticipated to be needed each year according to a water supply plan approved by the commissioner under Minnesota Statutes, section 103G.291.

(b) Notwithstanding paragraph (a), all new and amended water-use permits issued by the commissioner to the city of Lake Elmo must contain the same water-use conservation and planning measures required by law for municipal wells located wholly or partially within the five-mile radius of White Bear Lake.

Sec. 2. WHITE BEAR LAKE AREA WATER-USE PERMIT MODIFICATION MORATORIUM.

(a) Except as provided under paragraph (b), the commissioner of natural resources may not reduce the total maximum amount of groundwater use permitted under a White Bear Lake area water-use permit issued or amended before January 1, 2023.

(b) Notwithstanding paragraph (a), the commissioner of natural resources may reduce the authorized amount of groundwater use permitted or impose additional restrictions or conditions if necessary to address emergency preparedness or other public health and safety issues as determined by the commissioner.

(c) Except as provided under paragraph (b), this section does not authorize the commissioner to reduce or eliminate water-use conservation or planning conditions imposed on municipal water appropriation permits for wells located wholly or partially within a five-mile radius of White Bear Lake.

(d) For the purposes of this section, "White Bear Lake area water-use permit" means a water-use permit authorizing the use of groundwater from one or more municipal wells located wholly or partially within a five-mile radius of White Bear Lake.

(e) This section expires June 30, 2027."

Page 2, line 11, delete "$1,000,000" and insert "$3,000,000"

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

The report was adopted.

Klevorn from the Committee on State and Local Government Finance and Policy to which was referred:

H. F. No. 2321, A bill for an act relating to state government; modifying the children's cabinet; establishing the Department of Children, Youth, and Families; transferring responsibilities from the Department of Education, Department of Human Services, and Department of Public Safety to the Department of Children, Youth, and Families; requiring reports; authorizing rulemaking; appropriating money; amending Minnesota Statutes 2022, sections 4.045; 10.65, subdivision 2; 15.01; 15.06, subdivision 1; 15A.0815, subdivision 2; 43A.08, subdivision 1a; 256.014, subdivisions 1, 2; proposing coding for new law as Minnesota Statutes, chapter 143.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2138

Reported the same back with the following amendments:

Page 6, delete lines 14 to 18 and insert:

"(c) The following protections shall apply to employees who are transferred to the department from originating state agencies:

(1) no transferred employee shall have their employment status and job classification altered as a result of the transfer;

(2) such transferred employees who were represented by an exclusive representative prior to the transfer shall continue to be represented by the same exclusive representative after the transfer;

(3) the applicable collective bargaining agreements with exclusive representatives shall continue in full force and effect for such transferred employees after the transfer;

(4) the state shall have the obligation to meet and negotiate with the exclusive representatives of the transferred employees about any proposed changes affecting or relating to such transferred employees' terms and conditions of employment to the extent such changes are not addressed in the applicable collective bargaining agreement; and

(5) in the event that the state transfers ownership or control of any of the facilities, services, or operations of the department to another entity, whether private or public, by subcontracting, sale, assignment, lease, or other transfer, the state shall require as a written condition of such transfer of ownership or control the following:

(i) employees who perform work in such facilities, services, or operations shall be offered employment with the entity acquiring ownership or control before the entity offers employment to any individual who was not employed by the transferring agency at the time of the transfer; and

(ii) the wage and benefit standards of such transferred employees must not be reduced by the entity acquiring ownership or control through the expiration of the collective bargaining agreement in effect at the time of the transfer or for a period of two years after the transfer, whichever is longer.

There is no liability on the part of, and no cause of action arises against, the state of Minnesota or its officers or agents for any action or inaction of any entity acquiring ownership or control of any facilities, services, or operations of the department.

(d) To the extent that departmental changes affect the operations of any school district or charter school, employers have the obligation to bargain about any changes affecting or relating to employees' terms and conditions of employment if such changes are necessary during or after the term of an existing collective bargaining agreement."

Page 7, line 15, delete "lived"

Page 7, delete subdivision 3

Page 12, after line 17, insert:

"(g) The commissioner of children, youth, and families must provide four successive quarterly reports to relevant legislative committees on the status of transferring programs, responsibilities, and personnel under this section. The first report must cover the quarter starting July 1, 2024, and each report must be submitted by the 15th of the month following the quarter end."

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2139

Page 14, after line 26, insert:

"Sec. 16. TRANSITION REPORT TO THE LEGISLATURE.

(a) By March 1, 2024, the commissioner of management and budget must report to the legislature on the status of work related to establishing and setting up the Department of Children, Youth, and Families. The report must address, at a minimum:

(1) the completed, ongoing, and anticipated work related to the transfer of programs, responsibilities, and personnel to the department;

(2) the development of interagency agreements for services that will be shared across agencies;

(3) efforts to secure needed federal approvals for the transfer of programs and responsibilities;

(4) regular engagement with leaders and staff of state agencies, county and Tribal governments, and school districts about the creation of the department and the transfer of programs, responsibilities, and personnel to the department;

(5) input from individuals impacted by the programs that are to be transferred to the department and input from local services providers and other stakeholders about how to improve services through the creation of the department; and

(6) plans and timelines related to the items referenced in clauses (1) to (5).

(b) The report must include recommendations for how to coordinate and partner with county and Tribal governments, including through the use of a governing authority, such as an intergovernmental advisory committee. The recommendations must be developed in coordination with county and Tribal governments.

Sec. 17. DATA PRACTICES.

(a) To the extent not prohibited by state or federal law, and notwithstanding the data's classification under Minnesota Statutes, chapter 13:

(1) the commissioner of children, youth, and families may access data maintained by the commissioners of education, human services, and public safety related to the responsibilities transferred under section 15; and

(2) the commissioners of education, human services, and public safety may access data maintained by the commissioner of children, youth, and families related to each department's respective responsibilities transferred under section 15.

(b) Data sharing authorized by this subdivision includes only the data necessary to coordinate department activities and services transferred under section 15.

(d) Existing limitations and legal requirements under Minnesota Statutes, chapter 13, including but not limited to any applicable data subject to consent requirements, apply to any data accessed, transferred, disseminated, or shared under this section.

(e) This section expires July 1, 2027.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2140

Sec. 18. APPROPRIATION; COMMISSIONER OF MANAGEMENT AND BUDGET.

(a) $10,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of management and budget to support the creation of the Department of Children, Youth, and Families. The commissioner of management and budget may transfer all or part of the appropriation to other agencies. This is a onetime appropriation and is available until June 30, 2025.

(b) $1,931,000 in fiscal year 2024 and $2,066,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of management and budget for planning, research, analysis, and other efforts needed to establish the Department of Children, Youth, and Families and to transition programs to the department. On or after July 1, 2024, the commissioner of management and budget may transfer all or part of applicable agency responsibilities and funding to the commissioner of children, youth, and families. This is a onetime appropriation.

Sec. 19. APPROPRIATION; COMMISSIONER OF HUMAN SERVICES.

(a) $2,941,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of human services for the following:

(1) the development and implementation of separate public assistance cost allocation plans for the commissioner of human services and the commissioner of children, youth, and families, and for improvements to the technology platforms for operating the systems needed to support the two separate cost allocation plans; and

(2) knowledge transfer and activities necessary to develop the capacity of the Department of Children, Youth, and Families to perform the department's core functions, including but not limited to cost allocation, systems account management, and compliance.

(b) This is a onetime appropriation and is available until June 30, 2025.

Sec. 20. APPROPRIATION; COMMISSIONER OF CHILDREN, YOUTH, AND FAMILIES.

$823,000 in fiscal year 2024 and $3,521,000 in fiscal year 2025 are appropriated from the general fund to the Department of Children, Youth, and Families for staffing needs, including but not limited to agency leadership and operating expenses related to staff positions."

Page 15, delete section 17

Renumber the sections in sequence

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

The report was adopted.

Hansen, R., from the Committee on Environment and Natural Resources Finance and Policy to which was referred:

H. F. No. 2324, A bill for an act relating to natural resources; appropriating money for drill core library.

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

The report was adopted.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2141

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

H. F. No. 2369, A bill for an act relating to labor; establishing protections for transportation network company drivers; proposing coding for new law as Minnesota Statutes, chapter 181C.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [181C.01] DEFINITIONS.

(a) For the purposes of this chapter, the terms defined in this section have the meanings given.

(b) "Account deactivation" means one or more of the following actions by a transportation network company with respect to a transportation network company driver that lasts for three or more consecutive days:

(1) blocking access to the digital network controlled by a transportation network company;

(2) changing a driver's status from eligible to provide transportation network company services to ineligible; or

(3) establishing any other material restriction in access to the digital network controlled by a transportation network company.

(d) "Commissioner" means the commissioner of labor and industry or authorized designee or representative.

(e) "Digital network" has the meaning given in section 65B.472, subdivision 1.

(f) "Dispatched trip" means the provision of transportation by a driver for a rider through a digital network controlled by a transportation network company. Dispatched trip includes transportation:

(1) in which the driver transports the rider to the rider drop-off location;

(2) that is canceled after two or more minutes by a rider or the transportation network company, unless cancellation is due to driver conduct or no cancellation fee is charged to the rider;

(3) that is canceled by the driver for good cause consistent with transportation network company policy; and

(4) in which the rider does not appear at the rider pick-up location within five minutes.

(g) "Personal vehicle" has the meaning given in section 65B.472, subdivision 1.

(h) "Prearranged ride" or "ride" has the meaning given in section 65B.472, subdivision 1.

(i) "Rider platform time" means the time a driver spends providing a prearranged ride, excluding the time when traveling to the first rider pick-up location.

(j) "Transportation network company" has the meaning given in section 65B.472, subdivision 1, provided that the term does not include taxicabs, limousines, for-hire vehicles, or a private rider vehicle driven by a volunteer driver, as defined in section 65B.472, subdivision 1.

(k) "Transportation network company driver" or "driver" has the meaning given in section 65B.472, subdivision 1.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2142

Sec. 2. [181C.02] BOARD OF TRANSPORTATION NETWORK DRIVERS.

Subdivision 1. Board establishment. A Board of Transportation Network Drivers is established as provided in this section.

Subd. 2. Membership. (a) The board consists of seven members appointed by the governor, in consultation with the commissioner, and with the advice and consent of the senate.

(b) The governor's appointments must provide for representation on the board as follows:

(1) three members who represent a transportation network company's drivers association;

(2) two members who represent labor;

(3) one member who represents the interests of the general public; and

(4) one member who represents transportation network companies.

Subd. 3. Chair; officers. The board must elect a chair and a vice-chair from among its members.

Subd. 4. Executive director; staff. (a) The board must employ an executive director in the unclassified service. The executive director must perform the duties the board requires to manage and implement the requirements of this chapter.

(b) The executive director may:

(1) appoint subordinate employees in accordance with chapter 43A that the executive director considers necessary to discharge the functions of the board;

(2) prescribe the powers and duties of an employee; and

(3) delegate the powers, duties, and responsibilities of the executive director to employees under conditions prescribed by the executive director.

Subd. 5. Quorum. A majority of the board members constitutes a quorum. If there is a vacancy in the membership of the board, a majority of the remaining members of the board constitute a quorum.

Subd. 6. Meetings. The board must meet at least quarterly. Meetings of the board are subject to chapter 13D.

Subd. 7. Terms. The membership terms, compensation, removal of members, and filling of vacancies on the board are governed by section 15.0575.

Subd. 8. Administrative support. The commissioner shall provide administrative support and meeting space for the board.

Sec. 3. [181C.03] BOARD POWERS AND DUTIES.

Subdivision 1. Powers and responsibilities. (a) The board has the responsibilities established in this chapter.

(b) The board is responsible for receiving and investigating complaints against a transportation network company and forwarding recommendations to the appropriate licensing agency.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2143

(d) The board is responsible for the duties outlined in subdivision 2.

Subd. 2. Duties. The board must provide culturally and linguistically appropriate services, outreach, and education to transportation network company drivers, which includes:

(1) providing outreach and education to transportation network company drivers regarding drivers' rights and obligations under this chapter and the applicable labor standards to support drivers' ability to perform transportation network company driver services;

(2) consultation with drivers facing account deactivation or other sanctions or violations of this chapter; and

(3) educating drivers regarding other applicable federal, state, and local laws and regulations related to their role as drivers.

Sec. 4. [181C.04] DRIVER COMPENSATION.

Subdivision 1. Minimum compensation. (a) Subject to subdivision 7, a transportation network company must ensure that a driver's total compensation for each dispatched trip is the greater of:

(1) $0.59 per minute for all rider platform time for that trip, plus $1.85 per mile for all rider platform miles driven on that trip; or

(2) $5.17.

(b) For shared rides, the per trip minimums under paragraph (a) apply only to the entirety of the shared ride, and not on the basis of the individual rider's trip within the shared ride.

(c) Amounts charged to a rider and remitted to the driver for tolls, fees, or surcharges incurred by a driver during a trip must not be included in calculating compensation under this subdivision.

(d) A transportation network company may exclude time and miles if reasonably necessary to remedy or prevent fraudulent use of a digital network controlled by a transportation network company.

Subd. 2. Tips. A transportation network company must remit all tips to the driver. Tips paid to a driver are in addition to, and may not count toward, the driver's minimum compensation under subdivision 1.

Subd. 3. Deductions. (a) Except as required by law, a transportation network company may only deduct compensation when the driver expressly authorizes the deduction in writing and does so in advance for a lawful purpose. Any authorization by a driver must be voluntary and knowing.

(b) Nothing in this section prohibits a transportation network company from deducting compensation as required by state or federal law or as directed by a court order.

(c) Neither the transportation network company nor any person acting on behalf of the transportation network company may derive any financial profit or benefit from any of the deductions under this section. A deduction is financial profit or benefit only if it results in a gain over and above the fair market value of the goods or services for which the deduction was made. Reasonable interest charged by the transportation network company or any person acting on behalf of a transportation network company, for a loan or credit extended to the driver, is not financial profit or benefit under this paragraph.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2144

Subd. 4. Information to driver; trip receipts. (a) Within 24 hours of completion of each dispatched trip, a transportation network company must transmit an electronic receipt to the driver. The receipt must contain the following information for each unique trip, or portion of a unique trip, covered by this section:

(1) the total amount of rider platform time;

(2) the total mileage driven during rider platform time;

(3) rate or rates of pay, including but not limited to the rate per minute, rate per mile, percentage of rider fare, and any applicable price multiplier or variable pricing policy in effect for the trip;

(4) tip compensation;

(5) gross payment;

(6) net payment after deductions, fees, tolls, surcharges, lease fees, or other charges; and

(7) itemized deductions or fees, including any toll, surcharge, commission, lease fees, and other charges.

(b) The transportation network company must make per-trip receipts available to the driver in a standard electronically downloadable file format through a software application, website, or both. The receipts must be available for two years from the date that the transportation network company initially provided a receipt to the driver under paragraph (a).

Subd. 5. Information to driver; weekly summary. On a weekly basis, the transportation network company must provide written notice to the driver. The notice must contain the following information for trips, or a portion of a trip, covered by this section and which occurred in the prior week:

(1) the driver's total rider platform time;

(2) total mileage driven by the driver during rider platform time;

(3) the driver's total tip compensation;

(4) the driver's gross payment, itemized by:

(i) rate per minute;

(ii) rate per mile; and

(iii) any other method used to calculate pay, including but not limited to base pay, percentage of rider fare, or any applicable price multiplier or variable pricing policy in effect for the trip;

(5) the driver's net payment after deductions, fees, tolls, surcharges, lease fees, or other charges; and

(6) itemized deductions or fees, including all tolls, surcharges, commissions, lease fees, and other charges, from the driver's payment.

Subd. 6. Notice of rights. (a) A transportation network company must provide each driver with a written notice of rights established by this section.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2145

(b) The notice of rights must provide information on:

(1) the right to the applicable per minute rate and per mile rate or per trip rate established under this section;

(2) the right to be protected from retaliation for exercising in good faith the rights protected under this section; and

(3) the right to seek legal action or file a complaint with the department for violation of the requirements of this section, including but not limited to a transportation network company's failure to pay the minimum per minute rate or per mile rate or per trip rate, or a transportation network company's retaliation against a driver or other person for engaging in an activity protected by this section.

(c) A transportation network company must provide the notice of rights in a form and manner sufficient to inform drivers of their rights under this section. The notice of rights must be:

(1) made readily accessible to the driver in an electronic format through a software application, website, or both; and

(2) provided in English and the five most common languages spoken in this state.

Subd. 7. Rate adjustments. Beginning in 2025, the board must annually determine and adjust the rates and fees under this section based on the percentage change in the Minneapolis-St. Paul-Bloomington, MN-WI, Consumer Price Index for All Urban Consumers from the month of October in the preceding calendar year to the month of October in the current calendar year.

Sec. 5. [181C.05] ACCOUNT DEACTIVATION.

Subdivision 1. Definition. For purposes of this section, "qualifying account deactivation" means an account deactivation that is not:

(1) related to an allegation of discrimination and harassment, including sexual harassment or harassment due to someone's membership in a protected class;

(2) related to an allegation of physical or sexual assault, or willful commitment of fraud;

(3) related to an allegation that the driver was under the influence of drugs or alcohol while a related active investigation that takes no longer than ten business days is under way;

(4) related to layoffs for economic reasons that are not targeted at a particular driver or drivers; or

(5) identified as nonqualifying in an agreement between the transportation network company and the board under this section.

Subd. 2. Appeals process; agreement with the board. (a) A transportation network company must enter into an agreement with the board that establishes an appeals process for drivers who are subject to a qualifying account deactivation prior to operating a transportation network company in the state. A transportation network company and the board must renew the agreement every four years.

(b) The agreement must include:

(1) an opportunity, upon the driver's request, for a driver representative to support a driver throughout the account deactivation informal resolution process and board appeals process;

(2) notification to a driver at the time of the qualifying account deactivation of their right to representation;

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2146

(3) within 30 calendar days of a request from a driver, the transportation network company must furnish to the board an explanation and information the transportation network company may have relied upon in making the deactivation decision, excluding confidential, proprietary, or otherwise privileged communications, provided that personal identifying information and confidential information is redacted to address reasonable privacy and confidentiality concerns;

(4) procedures for a good faith, informal resolution process that is committed to efficient resolution of conflicts regarding qualifying account deactivations to be completed within 30 days of a notification to the transportation network company that the driver contests the deactivation; and

(5) procedures for a formal appeal process giving the board the authority to hear and make binding decisions related to a driver's appeal of a deactivation by a transportation network company that allows the board to order injunctive relief and damages, including monetary awards and back pay, based on the agreement between the transportation network company and the board.

Subd. 3. Appeal to Office of Administrative Hearings. (a) A driver may appeal a decision of the board under subdivision 2 to the Office of Administrative Hearings. The contested case proceeding procedures under chapter 14 apply.

(b) The Office of Administrative Hearings may order that an account deactivation be stayed until the hearing.

EFFECTIVE DATE. This section is effective October 1, 2023. Transportation network companies already operating in the state have until January 31, 2024, to complete an agreement required by this section with the board created in section 2.

Sec. 6. [181C.06] EQUAL ACCESS TO TRANSPORT.

(a) A transportation network company may not use assignment of rides to favor or disfavor any driver for any reason. The assignments must be on a nonpreferential basis. A transportation network company must not withhold or change assignments to a driver because a driver refused potential dispatches. All dispatches must be made on a driver-neutral basis.

(b) A transportation network company is prohibited from promising preferential treatment in rider assignments if a driver agrees to refrain from joining an organization of drivers or for any other reason.

Sec. 7. [181C.07] DISCRIMINATION PROHIBITED.

A transportation network company, as defined by section 181C.01, paragraph (j), is an employer for the purposes of the Minnesota Human Rights Act and subject to penalties for discrimination pursuant to chapter 363A. A driver as defined by section 181C.01, paragraph (k), is an employee for the purposes of chapter 363A.

Sec. 8. [181C.08] CIVIL ACTION.

(a) A driver or a driver's beneficiaries may bring a civil action in district court against a transportation network company for damages for noncompliance or a violation of this chapter.

(b) A prevailing plaintiff is entitled to three times the damages suffered. This includes but is not limited to damages for any income lost or expenses not paid, damages for emotional distress, and any other harm that resulted directly or indirectly from the failure to comply with this chapter. Injunctive relief may also be sought and granted. A prevailing plaintiff is entitled to reasonable attorney fees, costs, and expenses.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2147

(c) The court may award a $1,000 penalty payable by the transportation network company to an injured party for each violation of this chapter.

(d) An action under this section must be commenced within three years from the date of discovery of the last instance of the violation affecting the injured driver or driver's beneficiary.

Sec. 9. [181C.10] REVOCATION OF LICENSE.

(a) A local unit of government may revoke a transportation network company's license or otherwise disallow operations due to the transportation network company's failure to comply with the requirements under this chapter:

(1) upon the recommendation of the board; or

(2) upon a finding of a violation of this chapter by the transportation network company pursuant to:

(i) an informal resolution process or formal appeal under section 181C.05;

(ii) an Office of Administrative Hearing appeal under section 181C.05, subdivision 3; or

(iii) a civil action under section 181C.08.

(b) Nothing in this section shall be construed or applied so as to create any conflict with existing state or local law.

Sec. 10. [181C.13] DRIVER NOTICE PROVISIONS; RIGHTS RELATED TO ARBITRATION.

(a) A copy of this chapter and the notice described in paragraph (b) must be provided by the transportation network company to every driver in this state:

(1) within 30 days of the date of enactment of this act;

(2) at the time of the signing of a new contract between a driver and a transportation network company;

(3) at the time of the renewal of a contract or amendment of an existing contract between a driver and a transportation network company; and

(4) at any time at the request of a driver.

(b) The notice required in paragraph (a) must inform a driver that they may elect to pursue the remedies provided in this chapter rather than use arbitration.

(c) The rights and remedies established in this chapter are not required to be pursued through arbitration and are at the election of the driver. Notwithstanding any law to the contrary, if a driver elects to pursue arbitration, the rights and damages in an arbitration proceeding shall be as provided in this chapter.

Sec. 11. [181C.14] FINANCE.

Subdivision 1. Transportation network account; appropriation. (a) A transportation network account is established in the special revenue fund. The account consists of funds provided under subdivision 2, and any other money donated, allotted, transferred, or otherwise provided by law.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2148

(b) Money in the account is annually appropriated to the Board of Transportation Network Drivers for purposes of this chapter.

Subd. 2. Fee; remittance. (a) In addition to any other fees and charges, a transportation network company must collect a fee of $0.19 for each dispatched trip or portion of a trip in which a charge is otherwise imposed on the rider. This amount must be collected for each individual trip or shared trip.

(b) By the 15th of each month, the transportation network company must remit the total amount collected under paragraph (a) in the prior month to the board for deposit in the transportation network account.

EFFECTIVE DATE. Subdivision 1 is effective July 1, 2023. Subdivision 2 is effective October 1, 2023, for prearranged rides occurring on or after that date.

Sec. 12. PRIOR ACCOUNT DEACTIVATIONS.

Subdivision 1. Definitions. For purposes of this section, the terms have the meanings given them in Minnesota Statutes, section 181C.01 and 181C.05.

Subd. 2. Prior deactivation. A driver who has been deactivated by a transportation network company since January 1, 2019, has the right to a hearing, consistent with the procedures established in section 181C.05, to determine if there was a valid basis for the deactivation. If a valid basis is not established consistent with that section, the driver must be reinstated. A driver who has previously been deactivated may reapply for driver status and the application must be reviewed consistent with this chapter.

Subd. 3. Notice required. By October 1, 2023, a transportation network company must provide notice of a right to a hearing under Minnesota Statutes, section 181C.05, to all transportation network company drivers deactivated since January 1, 2019. The notice must be made through each of the following:

(1) emailing to the last known email address;

(2) texting to the last known cell phone number;

(3) sending a written notice to the last known home address; and

(4) calling the last known phone number of the deactivated driver.

Subd. 4. Hearings; procedures. An individual who is notified under subdivision 3 has until December 31, 2023, to request a hearing. If an individual requests a hearing, the procedures under Minnesota Statutes, section 181C.05, apply to the process.

Sec. 13. APPROPRIATION; IMPLEMENTATION.

$....... in fiscal year 2024 is appropriated from the general fund to the commissioner of labor and industry for the costs to implement the requirements of this act. This is a onetime appropriation and is available until June 30, 2025."

Amend the title as follows:

Page 1, line 3, after the semicolon, insert "providing a civil action; appropriating money;"

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

The report was adopted.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2149

Moller from the Committee on Public Safety Finance and Policy to which was referred:

H. F. No. 2415, A bill for an act relating to housing; establishing a high-rise sprinkler system grant program; requiring certain cities to report buildings that do not have a sprinkler system; requiring a report; appropriating money.

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

The report was adopted.

Klevorn from the Committee on State and Local Government Finance and Policy to which was referred:

H. F. No. 2427, A bill for an act relating to state government; requiring the Capitol Area Architectural and Planning Board to update the Capitol Mall Design Framework; specifying certain elements that must be included in the updated framework; appropriating money.

Reported the same back with the following amendments:

Page 1, after line 5, insert:

"Section 1. FORD BUILDING SITE REDEVELOPMENT; MIXED-USE DEVELOPMENT REQUIRED.

Notwithstanding any law to the contrary, the commissioner of administration may not prepare or approve building construction plans for redevelopment of the Ford Building or the Ford Building property site unless the plans are for mixed-use development and identify ground-level space for locally-owned businesses.

Sec. 2. CAPITOL AREA COMMUNITY VITALITY TASK FORCE; APPROPRIATION.

Subdivision 1. Task force established; membership. (a) A Capitol Area Community Vitality Task Force is established. The task force consists of the following members:

(1) the executive secretary of the Capitol Area Architectural and Planning Board;

(2) one member of the Capitol Area Architectural and Planning Board, appointed by the board;

(3) two members of the house of representatives appointed by the speaker of the house, one of whom must be a member of the majority caucus of the house and one of whom must be a member of the minority caucus of the house;

(4) two members of the senate appointed by the majority leader of the senate, one of whom must be a member of the majority caucus of the senate and one of whom must be a member of the minority caucus of the senate;

(5) four members who are residents, businesspeople, or members of local organizations in the Capitol Area, appointed by the mayor of St. Paul; and

(6) one member of the public appointed by the governor.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2150

(b) The task force must elect a chair and other officers from among its members. Appointments to the task force must be made no later than July 15, 2023. The executive secretary of the Capitol Area Architectural and Planning Board must convene the first meeting of the task force no later than August 15, 2023.

(c) As used in this section, "Capitol Area" includes that part of the city of St. Paul within the boundaries described in Minnesota Statutes, section 15B.02.

Subd. 2. Terms; compensation. The terms and compensation of members of the task force are governed by Minnesota Statutes, section 15.059, subdivision 6.

Subd. 3. Administrative support. The Capitol Area Architectural and Planning Board must provide administrative support to assist the task force in its work.

Subd. 4. Duties; report. The task force must consider and develop recommendations for the administration, program plan, and oversight of the Capitol Area community vitality account established by this act. The task force must submit its recommendations to the Capitol Area Architectural and Planning Board for approval. A report including the approved recommendations must be submitted by the Capitol Area Architectural and Planning Board to the chairs and ranking minority members of the committees of the legislature with jurisdiction over the board no later than February 1, 2024.

Subd. 5. Expiration. Notwithstanding Minnesota Statutes, section 15.059, subdivision 6, the task force expires upon submission of the report required by subdivision 4.

Subd. 6. Appropriation. $150,000 in fiscal year 2024 is appropriated from the general fund to the Capitol Area Architectural and Planning Board to support the work of the task force, including but not limited to payment of fees and other expenses necessary to retain appropriate professional consultants, conduct public meetings, and facilitate other activities as requested by the task force.

Sec. 3. CAPITOL AREA COMMUNITY VITALITY ACCOUNT.

Subdivision 1. Account established; appropriation. (a) A Capitol Area community vitality account is established in the special revenue fund. Money in the account is appropriated to the commissioner of administration to improve the livability, economic health, and safety of communities within the Capitol Area, provided that no funds may be expended until a detailed program and oversight plan to govern their use, in accordance with the spending recommendations of the Capitol Area Community Vitality Task Force as approved by the Capitol Area Architectural and Planning Board, has been further approved by law.

(b) As used in this section, "Capitol Area" includes that part of the city of St. Paul within the boundaries described in Minnesota Statutes, section 15B.02.

Subd. 2. Appropriation. $5,000,000 in fiscal year 2024 is appropriated from the general fund to the Capitol Area community vitality account."

Page 2, line 12, delete "December 31, 2023" and insert "March 1, 2024"

Renumber the sections in sequence

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2151

Amend the title as follows:

Page 1, line 3, after the semicolon, insert "establishing the Capitol Area Community Vitality Task Force and account;"

Page 1, line 4, after the semicolon, insert "requiring a report;"

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

The report was adopted.

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

H. F. No. 2788, A bill for an act relating to corrections; modifying Board of Pardons provisions; establishing Clemency Review Commission; requiring a report; authorizing rulemaking; appropriating money; amending Minnesota Statutes 2022, section 638.01; proposing coding for new law in Minnesota Statutes, chapter 638; repealing Minnesota Statutes 2022, sections 638.02; 638.03; 638.04; 638.05; 638.06; 638.07; 638.075; 638.08.

Reported the same back with the following amendments:

Page 1, before line 9, insert:

"Section 1. Minnesota Statutes 2022, section 13.871, subdivision 8, is amended to read:

Subd. 8. ~~Board of Pardons~~ Clemency Review Commission records. Access to ~~Board of Pardons~~ records of the Clemency Review Commission is governed by section ~~638.07~~ 638.20.

Sec. 2. Minnesota Statutes 2022, section 299C.11, subdivision 3, is amended to read:

Subd. 3. Definitions. For purposes of this section:

(1) "determination of all pending criminal actions or proceedings in favor of the arrested person" does not include:

(i) the sealing of a criminal record pursuant to section 152.18, subdivision 1, 242.31, or chapter 609A;

(ii) the arrested person's successful completion of a diversion program;

(iii) an order of discharge under section 609.165; or

(iv) a pardon granted under ~~section 638.02~~ chapter 638; and

(2) "targeted misdemeanor" has the meaning given in section 299C.10, subdivision 1."

Page 2, delete subdivision 6 and insert:

"Subd. 6. Waiver request. "Waiver request" means a request to waive a time restriction under sections 638.12, subdivisions 2 and 3, and 638.19, subdivision 1."

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2152

Page 2, line 13, delete "or" and insert "and waiver" and delete the second "and"

Page 2, line 15, before "request" insert "waiver" and delete the period and insert "; and"

Page 2, after line 15, insert:

"(3) recommend to the board, in writing, whether the board should conduct a hearing on a clemency application, with each member's vote reported."

Page 2, line 24, delete "and" and insert a period

Page 2, delete line 25

Page 3, line 9, delete "previous incumbent" and insert "vacating member"

Page 3, delete lines 15 to 20 and insert:

"(b) Each commission member must be:

(1) compensated at a rate of $150 for each day or part of the day spent on commission activities; and

(2) reimbursed for all reasonable expenses actually paid or incurred by the member while performing official duties.

(c) Beginning January 1, 2025, and annually thereafter, the board may set a new per diem rate for commission members, not to exceed an amount ten percent higher than the previous year's rate."

Page 4, line 16, after "crime" insert "and the applicant's age at the time of the crime"

Page 5, delete subdivision 4 and insert:

"Subd. 4. Notice to applicant. After the commission's initial investigation of a clemency application, the commission must notify the applicant of the scheduled date, time, and location that the applicant must appear before the commission for a meeting under section 638.14."

Page 5, line 16, delete "section" and insert "chapter"

Page 5, line 18, delete everything after "receiving" and insert "a clemency application"

Page 5, line 19, delete "pardon or commutation"

Page 5, delete lines 21 to 27 and insert:

"(b) At least 30 calendar days before the commission meeting at which the application will be heard, the commission must notify any located victim of:

(1) the application;

(2) the meeting's scheduled date, time, and location; and

(3) the victim's right to attend the meeting and submit an oral or written statement to the commission.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2153

(1) submit an oral or written statement; and

(2) receive victim support services as necessary to help the victim submit a statement and participate in the clemency process."

Page 5, line 31, delete "views" and insert "written statements"

Page 6, delete lines 1 to 4 and insert:

"Subd. 3. Notice to public. At least 30 days before the commission meeting at which the application will be heard, the commission must publish notice of an application in a local newspaper of the county in which the applicant's crime occurred."

Page 6, line 16, after "conviction" insert "at any time or place other than"

Page 6, line 17, delete "at any time or place other than"

Page 7, line 19, delete "and" and insert "the sentencing judge or successor, the prosecuting attorney or successor, and"

Page 8, after line 4, insert:

"(d) The governor, attorney general, and chief justice, or their designees, may attend commission meetings as ex officio nonvoting members, but their attendance does not affect whether the commission has a quorum."

Page 8, after line 15, insert:

"(d) The sentencing judge and the prosecuting attorney, or their successors, may provide their positions on whether the commission should recommend clemency by:

(1) appearing and speaking at the meeting; or

(2) submitting their statements under section 638.11, subdivision 2."

Page 8, line 20, delete everything after the first "the" and insert "nature, seriousness, and circumstances of the applicant's crime; the applicant's age at the time of the crime; and the time that has elapsed between the crime and the application;"

Page 9, after line 17, insert:

"Subd. 2. Recommending denial of commutation without hearing. (a) At a meeting under section 638.14, the commission may recommend denying a commutation application without a board hearing if:

(1) the applicant is challenging the conviction or sentence through court proceedings;

(2) the applicant has failed to exhaust all available state court remedies for challenging the sentence; or

(3) the commission determines that the matter should first be considered by the parole authority.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2154

(b) A commission recommendation to deny an application under paragraph (a) must be sent to the board along with the application."

Renumber the subdivisions in sequence

Page 9, line 20, after "judge" insert "or successor" and after "attorney" insert "or successor"

Page 9, delete lines 23 to 25 and insert "send to the board:"

Page 9, before line 26, insert:

"(1) the application;

(2) the commission's recommendation;

(3) any recording of the commission's meeting related to the application; and

(4) all statements from victims, the sentencing judge or successor, the prosecuting attorney or successor, and law enforcement agencies."

Page 9, line 30, delete "a"

Page 10, delete lines 1 and 2 and insert "recommendations under section 638.09, subdivision 1, paragraph (a), clauses (2) and (3), from the commission and any other applications for which at least one board member seeks consideration. Any board member may request a hearing on any application."

Page 10, delete lines 9 to 12 and insert:

"Subd. 2. Considering statements. (a) Applicants, victims, the sentencing judge or successor, the prosecuting attorney or successor, and law enforcement agencies may not submit oral or written statements at a board meeting unless:

(1) a board member requests a hearing on an application; or

(2) the commission has recommended a hearing on an application.

(b) The board must consider any statements provided to the commission when determining whether to consider a clemency application."

Page 11, line 13, after "a" insert "waiver"

Page 13, delete lines 8 to 10 and insert:

"(a) The board and commission may jointly adopt rules, including amending Minnesota Rules, chapter 6600, to:

(1) enforce their powers and duties under this chapter and ensure the efficient processing of applications; and

(2) allow for expedited review of applications if there is unanimous support from the sentencing judge or successor, the prosecuting attorney or successor, and any victims of the crime."

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2155

Page 13, line 16, delete "2 to 19" and insert "4 to 21"

Page 14, after line 8, insert:

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

Page 14, line 10, delete "4 to 17" and insert "1, 2, and 6 to 19"

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 Public Safety Finance and Policy.

The report was adopted.

Klevorn from the Committee on State and Local Government Finance and Policy to which was referred:

H. F. No. 2940, A bill for an act relating to state government; appropriating money for certain constitutional offices, legislature, state agencies, boards, offices, councils, commissions, and certain retirement accounts; establishing the consumer litigation fund; amending salary limits provisions and provisions of the compensation council; requiring performance measures for the state; amending provisions covering transfers from grants, setting agency rates for services, and billing procedures for settlement; creating the Office of Enterprise Sustainability and Office of Enterprise Translation; modifying grants governance provisions; establishing a cybersecurity grant program; establishing an enhanced computer system for the Department of Children, Youth, and Families and medical assistance and other human services programs; amending provisions covering human burial; requiring a study on the viability of implementing a single grants management system and a study of the unique issues faced by small agencies; making a postretirement adjustment for calendar year 2024; making certain reductions in appropriations and cancellations; modifying provisions for the stadium reserve; requiring reports; amending Minnesota Statutes 2022, sections 4.045; 5.30, subdivision 2; 15A.0815, subdivisions 1, 2; 15A.082, subdivisions 1, 2, 3, 4; 16A.122, subdivision 2; 16A.126, subdivision 1; 16A.1286, subdivision 2; 16A.151, subdivision 2; 16A.726; 16B.4805, subdivision 1; 16B.97, subdivisions 2, 3, 4; 16B.98, subdivisions 5, 6, 8, by adding subdivisions; 16B.991; 43A.08, subdivision 1; 145.951; 256.014; 297A.994, subdivision 4; 307.08; 349A.02, subdivision 1; 473J.13, subdivisions 2, 4; proposing coding for new law in Minnesota Statutes, chapters 8; 16A; 16B; 16E; proposing coding for new law as Minnesota Statutes, chapter 143; repealing Minnesota Statutes 2022, sections 4A.01; 4A.04; 4A.06; 4A.07; 4A.11; 15A.0815, subdivisions 3, 4, 5; 124D.23, subdivision 9; Laws 2014, chapter 287, section 25, as amended.

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

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 1141 and 2286 were read for the second time.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2156

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Hussein introduced:

H. F. No. 3083, A bill for an act relating to capital investment; appropriating money for redevelopment of blighted property in St. Paul; authorizing the sale and issuance of state bonds.

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

Heintzeman introduced:

H. F. No. 3084, A bill for an act relating to game and fish; expanding use of crossbows during firearms deer season; amending Minnesota Statutes 2022, section 97B.036.

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

Heintzeman introduced:

H. F. No. 3085, A bill for an act relating to capital investment; appropriating money for capital improvement at state fish hatcheries; authorizing the sale and issuance of state bonds.

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

Nash and Grossell introduced:

H. F. No. 3086, A bill for an act relating to taxation; sales and use; modifying the definition of prepared food; amending Minnesota Statutes 2022, section 297A.61, subdivision 31.

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

Hussein, Pérez-Vega and Finke introduced:

H. F. No. 3087, A bill for an act relating to capital investment; appropriating money for a grant to Penumbra Theatre Company.

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

Baker introduced:

H. F. No. 3088, A bill for an act relating to capital investment; appropriating money for the children's museum in the city of Willmar.

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

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2157

Baker introduced:

H. F. No. 3089, A bill for an act relating to capital investment; appropriating money for the final segment of the Glacial Lakes Trail.

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

Baker introduced:

H. F. No. 3090, A bill for an act relating to capital investment; appropriating money for a special education learning center in the city of New London; authorizing the sale and issuance of state bonds.

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

Gomez introduced:

H. F. No. 3091, A bill for an act relating to capital investment; appropriating money for the Minneapolis American Indian Center.

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

Olson, L., and Kozlowski introduced:

H. F. No. 3092, A bill for an act relating to capital investment; appropriating money for accessible housing units owned by Accessible Space, Inc., in the city of Duluth.

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

Kozlowski and Olson, L., introduced:

H. F. No. 3093, A bill for an act relating to capital investment; appropriating money for the Duluth Art Institute.

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

Nelson, M., introduced:

H. F. No. 3094, A bill for an act relating to human services; appropriating money for a grant to the Coalition of Northwest Suburbs Community Organizations.

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

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2158

Bierman and Baker introduced:

H. F. No. 3095, A bill for an act relating to human services; modifying the operation of the opioid prescribing improvement program; establishing a waiver process; providing a contingent sunset; amending Minnesota Statutes 2022, section 256B.0638, subdivision 4, by adding subdivisions.

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

Noor introduced:

H. F. No. 3096, A bill for an act relating to human services; appropriating money to develop a White Earth Nation-specific digital therapy tool for substance use disorder services.

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

Noor introduced:

H. F. No. 3097, A bill for an act relating to real property; landlord and tenant; providing for care facilities; proposing coding for new law in Minnesota Statutes, chapter 504B.

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

Hicks introduced:

H. F. No. 3098, A bill for an act relating to human services; appropriating money for a Somali mental health pilot project.

The bill was read for the first time and referred to the Committee on Human Services Policy.

Hicks introduced:

H. F. No. 3099, A bill for an act relating to education finance; appropriating money to Metro Deaf School.

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

Her; Cha; Berg; Nelson, M., and Wolgamott introduced:

H. F. No. 3100, A bill for an act relating to retirement; Teachers Retirement Association; providing for unreduced retirement at age 60 or older with at least 30 years of service; providing for a onetime 2.5 percent post‑retirement adjustment; increasing employee and employer contributions; extending the amortization date; reducing the assumption for investment rate of return; increasing the pension adjustment revenue for school districts; appropriating money; amending Minnesota Statutes 2022, sections 126C.10, subdivision 37; 354.42, subdivisions 2, 3; 354.435, subdivision 4; 354.436, subdivision 3; 354.44, subdivision 6; 356.215, subdivisions 8, 11; 356.415, subdivision 1d; 356.59, subdivision 4.

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

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2159

Dotseth introduced:

H. F. No. 3101, A bill for an act relating to capital investment; appropriating money for a new regional female offender and judicial facility in Carlton County.

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

Hollins introduced:

H. F. No. 3102, A bill for an act relating to energy; modifying the solar for schools program; transferring money; amending Minnesota Statutes 2022, sections 216C.375, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, by adding subdivisions; 216C.376, subdivision 1, by adding a subdivision; repealing Minnesota Statutes 2022, section 216C.376, subdivisions 2, 3, 4, 5, 6, 7, 8, 9.

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

Davids introduced:

H. F. No. 3103, A bill for an act relating to taxation; property; eliminating commercial and industrial property from the state general levy; amending Minnesota Statutes 2022, section 275.025, subdivisions 1, 4; repealing Minnesota Statutes 2022, section 275.025, subdivisions 2, 5, 6.

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

Niska introduced:

H. F. No. 3104, A bill for an act relating to taxation; sales and use; providing an exemption for construction materials for a new water treatment plant in the city of Ramsey; amending Minnesota Statutes 2022, section 297A.71, subdivision 52.

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

Niska introduced:

H. F. No. 3105, A bill for an act relating to energy; exempting electricity generated outside the state from the requirement that a certain proportion of retail electricity be carbon-free by certain dates; amending Laws 2023, chapter 7, section 10.

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

Norris and Becker-Finn introduced:

H. F. No. 3106, A bill for an act relating to taxation; sales and use; providing for a small business sales tax allowance; amending Minnesota Statutes 2022, section 297A.77, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 297A.

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

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2160

Hussein and Pérez-Vega introduced:

H. F. No. 3107, A bill for an act relating to housing; appropriating money for a grant to Rondo Community Land Trust.

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

Bierman introduced:

H. F. No. 3108, A bill for an act relating to academic health care facilities; designating certain academic health care facilities as essential to the University of Minnesota's public health mission.

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

Her introduced:

H. F. No. 3109, A bill for an act relating to local government; modifying Ramsey County employment provisions; amending Minnesota Statutes 2022, sections 383A.288, subdivision 3; 383A.292, subdivision 1; 383A.294, subdivisions 3, 4.

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

Myers, Hussein and Niska introduced:

H. F. No. 3110, A bill for an act relating to state government; requiring websites maintained by executive branch state agencies to include appropriate contact information, including at a minimum the direct email address of the agency's commissioner or head; amending Minnesota Statutes 2022, section 10.60, subdivision 2.

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

Myers introduced:

H. F. No. 3111, A bill for an act relating to transportation; modifying certain transportation-related taxes and tax allocation; amending Minnesota Statutes 2022, sections 168.013, subdivision 1a; 297A.94.

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

Coulter introduced:

H. F. No. 3112, A bill for an act relating to capital investment; appropriating money for The Works in the city of Bloomington.

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

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2161

Hornstein introduced:

H. F. No. 3113, A bill for an act relating to capital investment; appropriating money to preserve and improve parkways in a climate-resilient manner in the city of Minneapolis; authorizing the sale and issuance of state bonds.

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

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Madam Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 45, A bill for an act relating to judiciary; establishing an assessment process to determine if current and former members of the military charged with certain offenses are eligible for deferred prosecution; amending Minnesota Statutes 2022, section 609.1056, subdivision 2, by adding a subdivision.

Thomas S. Bottern, Secretary of the Senate

Madam Speaker:

I have the honor to inform the House of Representatives that the Senate is ready to meet with the House in Joint Convention at 6:45 p.m., Wednesday, April 19, 2023, to receive the message of the Honorable Tim Walz, Governor of the State of Minnesota, which will be delivered at 7:00 p.m.

Thomas S. Bottern, Secretary of the Senate

ANNOUNCEMENT BY THE SPEAKER

Pursuant to Rule 1.15(c)

A message by the Senate has been received requesting concurrence by the House to amendments adopted by the Senate to the following House File:

H. F. No. 244.

REPORTS FROM THE COMMITTEE ON RULES

AND LEGISLATIVE ADMINISTRATION

Long 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, March 27, 2023 and established a prefiling requirement for amendments offered to the following bills:

H. F. Nos. 375, 1355 and 1523.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2162

Long from the Committee on Rules and Legislative Administration, pursuant to rule 1.23, designated the following bills to be placed on the Consent Calendar for Monday, March 27, 2023:

H. F. Nos. 1370, 2175, 1327 and 581.

CALENDAR FOR THE DAY

H. F. No. 1200 was reported to the House.

Wolgamott moved to amend H. F. No. 1200 as follows:

Page 1, line 16, after "inmates" insert "who have not been conditionally released from prison, whether on parole, supervised release, work release, or an early release program," and after "in" insert "correctional"

Page 2, line 21, before "The" insert "(a)"

Page 2, line 22, delete "offenders" and insert "inmates"

Page 2, after line 22, insert:

"(b) Notwithstanding section 43A.047, nothing in this section prohibits the commissioner from contracting with privately owned residential facilities, such as halfway houses, group homes, work release centers, or treatment facilities, to provide for the care, custody, and rehabilitation of inmates who have been released from prison under section 241.26, 244.065, 244.05, 244.0513, 244.172, or any other form of supervised or conditional release."

Novotny moved to amend the Wolgamott amendment to H. F. No. 1200 as follows:

Page 1, after line 12, insert:

"Page 2, line 26, after "sheriff" insert "who are not on probation, work release, or some other form of approved release status"

Page 2, line 28, delete "The" and insert "(a) Except as provided in paragraph (b), the"

Page 2, after line 30, insert:

"(b) Nothing in this section prohibits a county board from contracting with privately owned residential facilities, such as halfway houses, group homes, work release centers, or treatment facilities, to provide for the care, custody, and rehabilitation of offenders who are on probation, work release, or some other form of approved release status.""

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

The question recurred on the Wolgamott amendment, as amended, to H. F. No. 1200. The motion prevailed and the amendment, as amended, was adopted.

Journal of the House - 40th Day - Thursday, March 23, 2023 - Top of Page 2163

Novotny moved to amend H. F. No. 1200, as amended, as follows:

Page 2, line 25, delete "After" and insert "(a) Except as provided for in paragraph (b), after"

Page 2, after line 27, insert:

"(b) A local unit of government or a group of local units of government may rent or lease and operate a privately-owned correctional facility to house inmates committed to the custody of a sheriff of a participating county."

A roll call was requested and properly seconded.

POINT OF ORDER

Neu Brindley raised a point of order pursuant to rule 7.20, relating to Duties of the Sergeant at Arms. The Speaker ruled the point of order not well taken.

The question recurred on the Novotny amendment and the roll was called. There were 63 yeas and 69 nays as follows:

Those who voted in the affirmative were: