Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13771

STATE OF MINNESOTA

 

Journal of the House

 

NINETY-THIRD SESSION - 2024

 

_____________________

 

ONE HUNDRED FOURTH DAY

 

Saint Paul, Minnesota, Wednesday, April 24, 2024

 

 

      The House of Representatives convened at 2:00 p.m. and was called to order by Laurie Pryor, Speaker pro tempore.

 

      Prayer was offered by Pastor David Bjorklund, St. Mark's Evangelical Lutheran Church, North St. Paul, Minnesota.

 

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

 

      The roll was called and the following members were present:

 


Acomb

Agbaje

Altendorf

Anderson, P. E.

Anderson, P. H.

Backer

Bahner

Bakeberg

Baker

Becker-Finn

Berg

Bierman

Brand

Burkel

Carroll

Cha

Clardy

Coulter

Curran

Daniels

Davids

Davis

Demuth

Dotseth

Edelson

Elkins

Engen

Feist

Finke

Fischer

Fogelman

Franson

Frazier

Frederick

Freiberg

Garofalo

Gillman

Grossell

Hansen, R.

Hanson, J.

Harder

Hassan

Heintzeman

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hornstein

Howard

Hudella

Hudson

Huot

Hussein

Igo

Jacob

Johnson

Jordan

Joy

Keeler

Kiel

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Kozlowski

Koznick

Kraft

Kresha

Lawrence

Lee, F.

Lee, K.

Liebling

Lillie

Lislegard

Long

Mekeland

Moller

Mueller

Murphy

Myers

Nadeau

Nash

Nelson, M.

Nelson, N.

Neu Brindley

Newton

Niska

Noor

Norris

Novotny

O'Driscoll

Olson, B.

Olson, L.

Pelowski

Pérez-Vega

Perryman

Petersburg

Pfarr

Pinto

Pryor

Pursell

Quam

Rarick

Reyer

Robbins

Schomacker

Schultz

Scott

Sencer-Mura

Skraba

Smith

Swedzinski

Tabke

Torkelson

Urdahl

Vang

Virnig

West

Wiener

Wiens

Witte

Wolgamott

Xiong

Youakim

Zeleznikar

Spk. Hortman


 

      A quorum was present.

 

      Bliss, McDonald, Rehm and Stephenson were excused.

 

      Gomez and Greenman were excused until 4:15 p.m.  Bennett was excused until 4:30 p.m.

 

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


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13772

REPORTS OF CHIEF CLERK

 

      S. F. No. 3204 and H. F. No. 3182, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

 

      Olson, L., moved that S. F. No. 3204 be substituted for H. F. No. 3182 and that the House File be indefinitely postponed.  The motion prevailed.

 

 

PETITIONS AND COMMUNICATIONS

 

 

      The following communications were received:

 

 

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

 

April 17, 2024

 

The Honorable Melissa Hortman

Speaker of the House of Representatives

The State of Minnesota

 

Dear Speaker Hortman:

 

      Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State the following House

 

H. F. No. 3589, relating to trusts; clarifying in rem jurisdiction for judicial proceedings.

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Tim Walz

                                                                                                                                Governor

 

 

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

 

The Honorable Melissa Hortman

Speaker of the House of Representatives

 

The Honorable Bobby Joe Champion

President of the Senate

 

      I have the honor to inform you that the following enrolled Act of the 2024 Session of the State Legislature has been received from the Office of the Governor and is deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13773

S. F.

No.

 

H. F.

No.

 

Session Laws

Chapter No.

Time and

Date Approved

2024

 

Date Filed

2024

 

                               3589                         87                                         10:31 a.m.  April 17                              April 17

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Steve Simon

                                                                                                                                Secretary of State

 

 

REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

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

 

H. F. No. 2476, A bill for an act relating to child care assistance; removing obsolete language; amending Minnesota Statutes 2022, section 245H.03, subdivision 1.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

CHILD PROTECTION AND SUPPORT

 

Section 1.  Minnesota Statutes 2023 Supplement, section 256.01, subdivision 12b, is amended to read:

 

Subd. 12b.  Department of Human Services systemic critical incident review team.  (a) The commissioner may establish a Department of Human Services systemic critical incident review team to review (1) critical incidents reported as required under section 626.557 for which the Department of Human Services is responsible under section 626.5572, subdivision 13; chapter 245D; or Minnesota Rules, chapter 9544; or (2) child fatalities and near fatalities that occur in licensed facilities and are not due to natural causes.  When reviewing a critical incident, the systemic critical incident review team shall identify systemic influences to the incident rather than determine the culpability of any actors involved in the incident.  The systemic critical incident review may assess the entire critical incident process from the point of an entity reporting the critical incident through the ongoing case management process.  Department staff shall lead and conduct the reviews and may utilize county staff as reviewers.  The systemic critical incident review process may include but is not limited to:

 

(1) data collection about the incident and actors involved.  Data may include the relevant critical services; the service provider's policies and procedures applicable to the incident; the community support plan as defined in section 245D.02, subdivision 4b, for the person receiving services; or an interview of an actor involved in the critical incident or the review of the critical incident.  Actors may include:

 

(i) staff of the provider agency;

 

(ii) lead agency staff administering home and community-based services delivered by the provider;

 

(iii) Department of Human Services staff with oversight of home and community-based services;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13774

(iv) Department of Health staff with oversight of home and community-based services;

 

(v) members of the community including advocates, legal representatives, health care providers, pharmacy staff, or others with knowledge of the incident or the actors in the incident; and

 

(vi) staff from the Office of the Ombudsman for Mental Health and Developmental Disabilities and the Office of Ombudsman for Long-Term Care;

 

(2) systemic mapping of the critical incident.  The team conducting the systemic mapping of the incident may include any actors identified in clause (1), designated representatives of other provider agencies, regional teams, and representatives of the local regional quality council identified in section 256B.097; and

 

(3) analysis of the case for systemic influences.

 

Data collected by the critical incident review team shall be aggregated and provided to regional teams, participating regional quality councils, and the commissioner.  The regional teams and quality councils shall analyze the data and make recommendations to the commissioner regarding systemic changes that would decrease the number and severity of critical incidents in the future or improve the quality of the home and community-based service system.

 

(b) Cases selected for the systemic critical incident review process shall be selected by a selection committee among the following critical incident categories:

 

(1) cases of caregiver neglect identified in section 626.5572, subdivision 17;

 

(2) cases involving financial exploitation identified in section 626.5572, subdivision 9;

 

(3) incidents identified in section 245D.02, subdivision 11;

 

(4) behavior interventions identified in Minnesota Rules, part 9544.0110;

 

(5) service terminations reported to the department in accordance with section 245D.10, subdivision 3a; and

 

(6) other incidents determined by the commissioner.

 

(c) The systemic critical incident review under this section shall not replace the process for screening or investigating cases of alleged maltreatment of an adult under section 626.557 or of a child under chapter 260E.  The department may select cases for systemic critical incident review, under the jurisdiction of the commissioner, reported for suspected maltreatment and closed following initial or final disposition.

 

(d) The proceedings and records of the review team are confidential data on individuals or protected nonpublic data as defined in section 13.02, subdivisions 3 and 13.  Data that document a person's opinions formed as a result of the review are not subject to discovery or introduction into evidence in a civil or criminal action against a professional, the state, or a county agency arising out of the matters that the team is reviewing.  Information, documents, and records otherwise available from other sources are not immune from discovery or use in a civil or criminal action solely because the information, documents, and records were assessed or presented during proceedings of the review team.  A person who presented information before the systemic critical incident review team or who is a member of the team shall not be prevented from testifying about matters within the person's knowledge.  In a civil or criminal proceeding, a person shall not be questioned about opinions formed by the person as a result of the review.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13775

(e) By October 1 of each year, the commissioner shall prepare an annual public report containing the following information:

 

(1) the number of cases reviewed under each critical incident category identified in paragraph (b) and a geographical description of where cases under each category originated;

 

(2) an aggregate summary of the systemic themes from the critical incidents examined by the critical incident review team during the previous year;

 

(3) a synopsis of the conclusions, incident analyses, or exploratory activities taken in regard to the critical incidents examined by the critical incident review team; and

 

(4) recommendations made to the commissioner regarding systemic changes that could decrease the number and severity of critical incidents in the future or improve the quality of the home and community-based service system.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 2.  Minnesota Statutes 2022, section 256N.26, subdivision 12, is amended to read:

 

Subd. 12.  Treatment of Supplemental Security Income.  (a) If a child placed in foster care receives benefits through Supplemental Security Income (SSI) at the time of foster care placement or subsequent to placement in foster care, the financially responsible agency may apply to be the payee for the child for the duration of the child's placement in foster care.  If a child continues to be eligible for SSI after finalization of the adoption or transfer of permanent legal and physical custody and is determined to be eligible for a payment under Northstar Care for Children, a permanent caregiver may choose to receive payment from both programs simultaneously.  The permanent caregiver is responsible to report the amount of the payment to the Social Security Administration and the SSI payment will be reduced as required by the Social Security Administration.

 

(b) If a financially responsible agency applies to be the payee for a child who receives benefits through SSI, or receives the benefits under this subdivision on behalf of a child, the financially responsible agency must provide written notice by certified mail, return receipt requested to:

 

(1) the child, if the child is 13 years of age or older;

 

(2) the child's next of kin;

 

(3) the guardian ad litem;

 

(4) the legally responsible agency; and

 

(5) the counsel appointed for the child pursuant to section 260C.163, subdivision 3.

 

(c) If a financially responsible agency receives benefits under this subdivision on behalf of a child 13 years of age or older, the legally responsible agency and the guardian ad litem must disclose this information to the child in person in a manner that best helps the child understand the information.  This paragraph does not apply in circumstances where the child is living outside of Minnesota.

 

(d) If a financially responsible agency receives the benefits under this subdivision on behalf of a child, it cannot use those funds for any other purpose than the care of that child.  The financially responsible agency must not commingle any benefits received under this subdivision and must not put the benefits received on behalf of a child under this subdivision into a general fund.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13776

(e) If a financially responsible agency receives any benefits under this subdivision, it must keep a record of: 

 

(1) the total dollar amount it received on behalf of all children it receives benefits for;

 

(2) the total number of children it applied to be a payee for; and

 

(3) the total number of children it received benefits for. 

 

(f) By July 1, 2025, and each July 1 thereafter, each financially responsible agency must submit a report to the commissioner of human services that includes the information required under paragraph (e).  By September 1 of each year, the commissioner must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over child protection that compiles the information provided to the commissioner by each financially responsible agency under paragraph (e); subdivision 13, paragraph (e); and section 260C.331, subdivision 7, paragraph (d).

 

Sec. 3.  Minnesota Statutes 2022, section 256N.26, subdivision 13, is amended to read:

 

Subd. 13.  Treatment of retirement, survivor's, and disability insurance, veteran's benefits, railroad retirement benefits, and black lung benefits.  (a) If a child placed in foster care receives retirement, survivor's, and disability insurance, veteran's benefits, railroad retirement benefits, or black lung benefits at the time of foster care placement or subsequent to placement in foster care, the financially responsible agency may apply to be the payee for the child for the duration of the child's placement in foster care.  If it is anticipated that a child will be eligible to receive retirement, survivor's, and disability insurance, veteran's benefits, railroad retirement benefits, or black lung benefits after finalization of the adoption or assignment of permanent legal and physical custody, the permanent caregiver shall apply to be the payee of those benefits on the child's behalf.

 

(b) If the financially responsible agency applies to be the payee for a child who receives retirement, survivor's, and disability insurance, veteran's benefits, railroad retirement benefits, or black lung benefits, or receives the benefits under this subdivision on behalf of a child, the financially responsible agency must provide written notice by certified mail, return receipt requested to:

 

(1) the child, if the child is 13 years of age or older;

 

(2) the child's next of kin;

 

(3) the guardian ad litem;

 

(4) the legally responsible agency; and

 

(5) the counsel appointed for the child pursuant to section 260C.163, subdivision 3. 

 

(c) If a financially responsible agency receives benefits under this subdivision on behalf of a child 13 years of age or older, the legally responsible agency and the guardian ad litem must disclose this information to the child in person in a manner that best helps the child understand the information.  This paragraph does not apply in circumstances where the child is living outside of Minnesota.

 

(d) If a financially responsible agency receives the benefits under this subdivision on behalf of a child, it cannot use those funds for any other purpose than the care of that child.  The financially responsible agency must not commingle any benefits received under this subdivision and must not put the benefits received on behalf of a child under this subdivision into a general fund.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13777

(e) If a financially responsible agency receives any benefits under this subdivision, it must keep a record of:

 

(1) the total dollar amount it received on behalf of all children it receives benefits for;

 

(2) the total number of children it applied to be a payee for; and

 

(3) the total number of children it received benefits for. 

 

(f) By January 1 of each year, each financially responsible agency must submit a report to the commissioner of human services that includes the information required under paragraph (e).

 

Sec. 4.  Minnesota Statutes 2022, section 260C.331, is amended by adding a subdivision to read:

 

Subd. 7.  Notice.  (a) If the responsible social services agency receives retirement, survivor's, and disability insurance, Supplemental Security Income, veteran's benefits, railroad retirement benefits, or black lung benefits on behalf of a child, it must provide written notice by certified mail, return receipt requested to:

 

(1) the child, if the child is 13 years of age or older;

 

(2) the child's next of kin;

 

(3) the guardian ad litem;

 

(4) the legally responsible agency as defined in section 256N.02, if different than the responsible social services agency; and

 

(5) the counsel appointed for the child pursuant to section 260C.163, subdivision 3.

 

(b) If the responsible social services agency receives benefits under this subdivision on behalf of a child 13 years of age or older, the legally responsible agency as defined in section 256N.02, subdivision 14, if different, and the guardian ad litem must disclose this information to the child in person in a manner that best helps the child understand the information.  This paragraph does not apply in circumstances where the child is living outside of Minnesota.

 

(c) If the responsible social services agency receives the benefits listed under this subdivision on behalf of a child, it cannot use those funds for any other purpose than the care of that child.  The responsible social services agency must not commingle any benefits received under this subdivision and must not put the benefits received on behalf of a child into a general fund.

 

(d) If the responsible social services agency receives any benefits listed under this subdivision, it must keep a record of the total dollar amount it received on behalf of all children it receives benefits for and the total number of children it receives benefits for.  By July 1, 2025, and each July 1 thereafter, the responsible social services agency must submit a report to the commissioner that includes the information required under this paragraph.

 

Sec. 5.  [260E.39] CHILD FATALITY AND NEAR FATALITY REVIEW.

 

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

 

(1) "critical incident" means a child fatality or near fatality in which maltreatment was a known or suspected contributing cause;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13778

(2) "joint review" means the critical incident review conducted by the child mortality review panel jointly with the local review team under subdivision 4, paragraph (b);

 

(3) "local review" means the local critical incident review conducted by the local review team under subdivision 4, paragraph (c);

 

(4) "local review team" means a local child mortality review team established under subdivision 2; and

 

(5) "panel" means the child mortality review panel established under subdivision 3.

 

Subd. 2.  Local child mortality review teams.  (a) Each county shall establish a multidisciplinary local child mortality review team and shall participate in local critical incident reviews that are based on safety science principles to support a culture of learning.  The local welfare agency's child protection team may serve as the local review team.  The local review team shall include but not be limited to professionals with knowledge of the critical incident being reviewed and, if the critical incident being reviewed involved an Indian child as defined in section 260.755, subdivision 8, at least one representative from the child's Tribe.

 

(b) The local review team shall conduct reviews of critical incidents jointly with the child mortality review panel or as otherwise required under subdivision 4, paragraph (c).

 

Subd. 3.  Child mortality review panel; establishment and membership.  (a) The commissioner shall establish a child mortality review panel to review critical incidents attributed to child maltreatment.  The purpose of the panel is to identify systemic changes to improve child safety and well-being and recommend modifications in statute, rule, policy, and procedure.

 

(b) The panel shall consist of:

 

(1) the commissioner of children, youth, and families, or a designee;

 

(2) the commissioner of human services, or a designee;

 

(3) the commissioner of health, or a designee;

 

(4) the commissioner of education, or a designee;

 

(5) a judge, appointed by the Minnesota judicial branch; and

 

(6) other members appointed by the governor, including but not limited to:

 

(i) a physician who is a medical examiner;

 

(ii) a physician who is a child abuse specialist pediatrician;

 

(iii) a county attorney who works on child protection cases;

 

(iv) two current child protection supervisors for local welfare agencies, each of whom has previous experience as a frontline child protection worker;

 

(v) a current local welfare agency director who has previous experience as a frontline child protection worker or supervisor;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13779

(vi) two current child protection supervisors or directors for Tribal child welfare agencies, each of whom has previous experience as a frontline child protection worker or supervisor;

 

(vii) a county or Tribal public health worker; and

 

(viii) a member representing law enforcement.

 

(c) The governor shall designate one member as chair of the panel from the members listed in paragraph (b), clauses (5) and (6).

 

(d) Members of the panel shall serve terms of four years for an unlimited number of terms.  A member of the panel may be removed by the appointing authority for the member.

 

(e) The commissioner shall employ an executive director for the panel to:

 

(1) provide administrative support to the panel and the chair, including providing the panel with critical incident notices submitted by local welfare agencies;

 

(2) compile and synthesize information for the panel;

 

(3) draft recommendations and reports for the panel's final approval; and

 

(4) conduct or otherwise direct training and consultation under subdivision 7.

 

Subd. 4.  Critical incident review process.  (a) A local welfare agency that has determined that maltreatment was the cause of or a contributing factor in a critical incident must notify the commissioner and the executive director of the panel within three business days of making the determination.

 

(b) The panel shall conduct a joint review with the local review team for:

 

(1) any critical incident relating to a family, child, or caregiver involved in a local welfare agency family assessment or investigation within the 12 months preceding the critical incident;

 

(2) a critical incident the governor or commissioner directs the panel to review; and

 

(3) any other critical incident the panel chooses for review.

 

(c) The local review team must review all critical incident cases not subject to joint review under paragraph (b).

 

(d) Within 120 days of initiating a joint review or local review of a critical incident, except as provided under paragraph (h), the panel or local review team shall complete the joint review or local review and compile a report.  The report must include any systemic learnings that may increase child safety and well-being, and may include policy or practice considerations for systems changes that may improve child well-being and safety.

 

(e) A local review team must provide its report following a local review to the panel within three business days after the report is complete.  After receiving the local review team report, the panel may conduct a further joint review.

 

(f) Following the panel's joint review or after receiving a local review team report, the panel may make recommendations to any state or local agency, branch of government, or system partner to improve child safety and well-being.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13780

(g) The commissioner shall conduct additional information gathering as requested by the panel or the local review team.  The commissioner must conduct information gathering for all cases for which the panel requests assistance.  The commissioner shall compile a summary report for each critical incident for which information gathering is conducted and provide the report to the panel and the local welfare agency that reported the critical incident.

 

(h) If the panel or local review team requests information gathering from the commissioner, the panel or local review team may conduct the joint review or local review and compile its report under paragraph (d) after receiving the commissioner's summary information-gathering report.  The timeline for a local or joint review under paragraph (d) may be extended if the panel or local review team requests additional information gathering to complete their review.  If the local review team extends the timeline for its review and report, the local welfare agency must notify the executive director of the panel of the extension and the expected completion date.

 

(i) The review of any critical incident shall proceed as specified in this section, regardless of the status of any pending litigation or other active investigation.

 

Subd. 5.  Critical incident reviews; data practices and immunity.  (a) In conducting reviews, the panel, the local review team, and the commissioner shall have access to not public data under chapter 13 maintained by state agencies, statewide systems, or political subdivisions that are related to the child's critical incident or circumstances surrounding the care of the child.  The panel, the local review team, and the commissioner shall also have access to records of private hospitals as necessary to carry out the duties prescribed by this section.  A state agency, statewide system, or political subdivision shall provide the data upon request from the commissioner.  Not public data may be shared with members of the panel, a local review team, or the commissioner in connection with an individual case.

 

(b) Notwithstanding the data's classification in the possession of any other agency, data acquired by a local review team, the panel, or the commissioner in the exercise of their duties are protected nonpublic or confidential data as defined in section 13.02 but may be disclosed as necessary to carry out the duties of the review team, panel, or commissioner.  The data are not subject to subpoena or discovery.

 

(c) The commissioner shall disclose information regarding a critical incident upon request but shall not disclose data that was classified as confidential or private data on decedents under section 13.10 or private, confidential, or protected nonpublic data in the disseminating agency, except that the commissioner may disclose local social service agency data as provided in section 260E.35 on individual cases involving a critical incident with a person served by the local social service agency prior to the date of the critical incident.

 

(d) A person attending a local review team or child mortality review panel meeting shall not disclose what transpired at the meeting except to carry out the purposes of the local review team or panel.  The commissioner shall not disclose what transpired during its information-gathering process except to carry out the duties of the commissioner.  The proceedings and records of the local review team, the panel, and the commissioner are protected nonpublic data as defined in section 13.02, subdivision 13, and are not subject to discovery or introduction into evidence in a civil or criminal action.  Information, documents, and records otherwise available from other sources are not immune from discovery or use in a civil or criminal action solely because they were presented during proceedings of the local review team, the panel, or the commissioner.

 

(e) A person who presented information before the local review team, the panel, or the commissioner or who is a member of the local review team or the panel, or an employee conducting information gathering as designated by the commissioner, shall not be prevented from testifying about matters within the person's knowledge.  However, in a civil or criminal proceeding, a person may not be questioned about the person's presentation of information to the local review team, the panel, or the commissioner, or about the information reviewed or discussed during a critical incident review or the information-gathering process, any conclusions drawn or recommendations made related to information gathering or a critical incident review, or opinions formed by the person as a result of the panel or review team meetings.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13781

(f) A person who presented information before the local review team, the panel, or the commissioner, or who is a member of the local review team or the panel, or an employee conducting information gathering as designated by the commissioner, is immune from any civil or criminal liability that might otherwise result from the person's presentation or statements if the person was acting in good faith and assisting with information gathering or in a critical incident review under this section.

 

Subd. 6.  Child mortality review panel; annual report.  Beginning December 15, 2026, and on or before December 15 annually thereafter, the commissioner shall publish a report of the child mortality review panel.  The report shall include but not be limited to de-identified summary data on the number of critical incidents reported to the panel, the number of critical incidents reviewed by the panel and local review teams, and systemic learnings identified by the panel or local review teams during the period covered by the report.  The report shall also include recommendations on improving the child protection system, including modifications to statutes, rules, policies, and procedures.  The panel may make recommendations to the legislature or any state or local agency at any time, outside of its annual report.

 

Subd. 7.  Local welfare agency critical incident review training.  The commissioner shall provide training and support to local review teams and the panel to assist with local or joint review processes and procedures.  The commissioner shall also provide consultation to local review teams and the panel conducting local or joint reviews pursuant to this section.

 

Subd. 8.  Culture of learning and improvement.  The local review teams and panel shall advance and support a culture of learning and improvement within Minnesota's child welfare system.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 6.  Minnesota Statutes 2023 Supplement, section 518A.42, subdivision 3, is amended to read:

 

Subd. 3.  Exception.  (a) This section The minimum basic support amount under subdivision 2 does not apply to an obligor who is incarcerated or is a recipient of a general assistance grant, Supplemental Security Income, temporary assistance for needy families (TANF) grant, or comparable state-funded Minnesota family investment program (MFIP) benefits.

 

(b) The minimum basic support amount under subdivision 2 does not apply to an obligor who is a recipient of:

 

(1) a general assistance grant;

 

(2) Supplemental Security Income;

 

(3) a Temporary Assistance for Needy Families (TANF) grant; or

 

(4) comparable state-funded Minnesota family investment program (MFIP) benefits.

 

(b) (c) If the court finds the obligor receives no income and completely lacks the ability to earn income, the minimum basic support amount under this subdivision 2 does not apply.

 

(c) (d) If the obligor's basic support amount is reduced below the minimum basic support amount due to the application of the parenting expense adjustment, the minimum basic support amount under this subdivision 2 does not apply and the lesser amount is the guideline basic support.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13782

Sec. 7.  Laws 2023, chapter 70, article 14, section 42, is amended by adding a subdivision to read:

 

Subd. 9.  Compensation.  Compensation of board members is governed by Minnesota Statutes, section 15.0575.

 

Sec. 8.  SUPREME COURT COUNCIL ON CHILD PROTECTION.

 

Subdivision 1.  Establishment.  The chief justice of the supreme court is invited to establish a Supreme Court Council on Child Protection as part of Minnesota's Court Improvement Program, the Children's Justice Initiative, authorized under Public Law 116-260, Division CC, title III, section 305, of the Consolidated Appropriations Act of 2021, to develop a comprehensive blueprint to improve Minnesota's child protection system.

 

Subd. 2.  Membership.  The council must consist of the following members:

 

(1) the chief justice of the supreme court or a designee;

 

(2) the commissioner of children, youth, and families, or a designee;

 

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

 

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

 

(5) members representing Indian Tribes, including Tribal courts, appointed by the executive board of the Minnesota Indian Affairs Council;

 

(6) professionals, including law enforcement officers, with substantial experience responding to reports of child maltreatment, appointed by the chief justice of the supreme court;

 

(7) professionals with experience providing child protective services, foster care, adoption services, and postpermanency services, appointed by the chief justice of the supreme court;

 

(8) legal professionals and guardians ad litem with significant experience in juvenile protection matters, appointed by the chief justice of the supreme court;

 

(9) educational professionals, including professionals with experience in early childhood education and providing educational services to children with disabilities, appointed by the chief justice of the supreme court;

 

(10) professionals from nonprofit community organizations with experience providing services and supports to children, parents, and relatives involved in child maltreatment and juvenile protection matters, appointed by the chief justice of the supreme court;

 

(11) professionals with expertise on childhood trauma and adverse childhood experiences, appointed by the chief justice of the supreme court;

 

(12) professionals with expertise providing services to persons with disabilities involved with the child protection system, appointed by the chief justice of the supreme court; and

 

(13) persons with lived experience as a parent or child involved with the child protection system, appointed by the chief justice of the supreme court.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13783

Subd. 3.  Organization and administration.  (a) The council is governed by Minnesota Statutes, section 15.059, except that subdivision 6 does not apply.  The state court administrator must provide the council with staff support, office and meeting space, and access to office equipment and services.

 

(b) Council members serve at the pleasure of the appointing authority.  The chief justice of the supreme court must select a chair from among the members.  The council may select other officers, subcommittees, and work groups as it deems necessary.

 

Subd. 4.  Meetings.  (a) The council must meet at the call of the chair.

 

(b) The chair must convene the council's first meeting, which must occur by September 15, 2024.

 

Subd. 5.  Duties.  The council must develop a comprehensive blueprint for improvement that addresses all aspects of the child protection system, including prevention and early intervention, by:

 

(1) reviewing policies, laws, practices, latest research, and data related to children in the child protection system;

 

(2) gathering information through surveys or focus groups, including consultation with individuals who have lived experience with the child protection system; and

 

(3) making recommendations for changes in policies and law that are designed to improve outcomes for children in the child protection system or at risk of maltreatment.

 

Subd. 6.  Reports.  By January 15, 2025, the Supreme Court Council on Child Protection must submit a progress report on the council's duties under subdivision 5 to the governor, the chief justice of the supreme court, and the chairs and ranking minority members of the legislative committees with jurisdiction over child protection.  By January 15, 2026, the council must submit its final report to the governor, the chief justice of the supreme court, and the chairs and ranking minority members of the legislative committees with jurisdiction over child protection, detailing the comprehensive blueprint developed under subdivision 5.

 

Subd. 7.  Expiration.  The Supreme Court Council on Child Protection expires upon the submission of its final report under subdivision 6.

 

Sec. 9.  PREVENTING NONRELATIVE FOSTER CARE PLACEMENT GRANTS.

 

(a) The commissioner of children, youth, and families shall award grants to eligible community-based nonprofit organizations to provide culturally competent support and connection to local and statewide resources for relative caregivers who are caring for relative children.  Grant funds must be used to serve relative caregivers for children from communities that are disproportionately overrepresented in the child welfare system, as determined by the commissioner, based on available data.  Grant funds may be used to assess relative caregiver and child needs, provide connection to local and statewide culturally competent resources, provide culturally competent case management to assist with complex cases, and provide culturally competent supports to reduce the need for child welfare involvement or risk of child welfare involvement and increase family stability by preventing nonrelative foster care placement.

 

(b) For purposes of this section, "relative" has the meaning given in Minnesota Statutes, section 260C.007, subdivision 27.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13784

Sec. 10.  DIRECTION TO COMMISSIONER OF CHILDREN, YOUTH, AND FAMILIES; CHILD MALTREATMENT REPORTING SYSTEMS REVIEW AND RECOMMENDATIONS.

 

The commissioner of children, youth, and families must review current child maltreatment reporting processes and systems in various states and evaluate the costs and benefits of each reviewed state's system.  In consultation with stakeholders, including but not limited to counties, Tribes, and organizations with expertise in child maltreatment prevention and child protection, the commissioner must develop recommendations on implementing a statewide common entry point system for reporting child maltreatment in Minnesota, outlining the benefits, challenges, and costs of such a transition.  By March 1, 2025, the commissioner must submit a report detailing the commissioner's recommendations to the chairs and ranking minority members of the legislative committees with jurisdiction over child protection.  The commissioner must also publish the report on the department's website.

 

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

 

Sec. 11.  DIRECTION TO COMMISSIONER OF HUMAN SERVICES; CHILD WELFARE FISCAL ANALYSIS.

 

Subdivision 1.  Child welfare fiscal analysis.  The commissioner of human services must contract with a third‑party consultant selected according to subdivision 2.

 

Subd. 2.  Fiscal analysis consultant selection.  The commissioner, in consultation with the Association of Minnesota Counties, the Minnesota Indian Affairs Council, community nonprofits, community providers, and other child welfare system stakeholders, must select a third-party independent consultant to conduct the fiscal analysis required under this section.  The consultant must have expertise in and experience with child welfare systems and conducting fiscal analyses.

 

Subd. 3.  Child welfare fiscal analysis requirements.  When conducting the child welfare fiscal analysis under this section, the third-party consultant must evaluate:

 

(1) financial systems in Minnesota's child welfare system and funding sources available to the child welfare system;

 

(2) state and local agency administrative resources necessary to effectively obtain, manage, and distribute federal funds to counties and Tribal Nations;

 

(3) the state's access to and use of funding or reimbursements under federal Title IV-E and Title IV-B, the federal Child Abuse Prevention and Treatment Act, TANF, Medicaid, the federal Social Services Block Grant Program, and other federal funds for expenses related to child welfare, including legal representation, training, and prevention services;

 

(4) relevant information needed to secure available federal funds for the child welfare system;

 

(5) the implementation of the Family First Prevention Services Act and related claim processes; and

 

(6) federal Title IV-E attorney and training reimbursements in the state and all allowable Title IV-E administrative costs.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13785

Subd. 4.  Report on fiscal analysis.  By June 30, 2026, the third-party consultant who conducted the child welfare fiscal analysis under this section must submit a final report to the commissioner of human services and the chairs and ranking minority members of the legislative committees with jurisdiction over the child welfare system.  The final report must include the findings from the fiscal analysis required in this section.  The report must also include recommendations on:

 

(1) whether Minnesota should increase state investment into the child welfare system;

 

(2) how to maximize the state's receipt of federal funding, including reimbursements;

 

(3) legislative proposals for any necessary statutory changes; and

 

(4) administrative and fiscal resources needed to implement necessary statutory changes.

 

Subd. 5.  Tribal participation.  Each of Minnesota's 11 federally recognized Tribal Nations may participate in the fiscal analysis required under this section.  Tribal Nations that choose to participate have sovereignty over data they choose to share with the consultant, or other individuals or entities, and may request that their data not be included in any public documents.

 

Sec. 12.  REPEALER.

 

(a) Minnesota Statutes 2022, section 256.01, subdivisions 12 and 12a, are repealed.

 

(b) Minnesota Rules, part 9560.0232, subpart 5, is repealed.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

ARTICLE 2

ECONOMIC SUPPORTS

 

Section 1.  [256D.66] CAMPUS-BASED EMPLOYMENT AND TRAINING PROGRAM FOR STUDENTS ENROLLED IN HIGHER EDUCATION.

 

Subdivision 1.  Designation.  (a) Within six months of the effective date of this section, the Board of Trustees of Minnesota State Colleges and Universities must, and the Board of Regents of the University of Minnesota is requested to, submit an application to the commissioner of human services verifying whether each of its institutions meets the requirements to be a campus-based employment and training program that qualifies for the student exemption for supplemental nutrition assistance program (SNAP) eligibility, as described in the Code of Federal Regulations, title 7, section 273.5(b)(11)(iv). 

 

(b) An institution of higher education must be designated as a campus-based employment and training program by the commissioner of human services if that institution meets the requirements set forth in the guidance under subdivision 3.  The commissioner of human services must maintain a list of approved programs on its website.

 

Subd. 2.  Student eligibility.  A student is eligible to participate in a campus-based employment and training program under this section if they are enrolled in: 

 

(1) a public two-year community or technical college and received a state grant under section 136A.121, received a federal Pell grant, or has a student aid index of $0 or less;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13786

(2) a Tribal college as defined in section 136A.62 and received a state grant under section 136A.121, received a federal Pell grant, or has a student aid index of $0 or less; or

 

(3) a public four-year university and received a state grant under section 136A.121, received a federal Pell grant, or has a student aid index of $0 or less.

 

Subd. 3.  Guidance.  Within three months of the effective date of this section and annually thereafter, the commissioner of human services, in consultation with the commissioner of higher education, must issue guidance to counties, Tribal Nations, Tribal colleges, and Minnesota public postsecondary institutions that:

 

(1) clarifies the state and federal eligibility requirements for campus-based employment and training programs for low-income households;

 

(2) clarifies the application process for campus-based employment and training programs for low-income households including, but not limited to, providing a list of the supporting documents required for program approval;

 

(3) clarifies how students in an institution of higher education approved as campus-based employment and training program for low-income households qualify for a SNAP student exemption; and

 

(4) clarifies the SNAP eligibility criteria for students that qualify for a SNAP student exemption under this section.

 

Subd. 4.  Application.  Within three months of the effective date of this section, the commissioner of human services, in consultation with the commissioner of higher education, must design an application for institutions of higher education to apply for a campus-based employment and training program designation. 

 

Subd. 5.  Notice.  At the beginning of each academic semester, an institution of higher education with a designated campus-based employment and training program must send a letter to students eligible under this section to inform them that they may qualify for SNAP benefits and direct them to resources to apply.  The letter under this subdivision shall serve as proof of a student's enrollment in a campus-based employment and training program.

 

EFFECTIVE DATE.  This section is effective upon federal approval.  The commissioner of human services must notify the revisor of statutes when federal approval is obtained.

 

Sec. 2.  Minnesota Statutes 2023 Supplement, section 256E.35, subdivision 2, is amended to read:

 

Subd. 2.  Definitions.  (a) The definitions in this subdivision apply to this section.

 

(b) "Eligible educational institution" means the following:

 

(1) an institution of higher education described in section 101 or 102 of the Higher Education Act of 1965; or

 

(2) an area vocational education school, as defined in subparagraph (C) or (D) of United States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational and Applied Technology Education Act), which is located within any state, as defined in United States Code, title 20, chapter 44, section 2302 (30).  This clause is applicable only to the extent section 2302 is in effect on August 1, 2008.

 

(c) "Family asset account" means a savings account opened by a household participating in the Minnesota family assets for independence initiative.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13787

(d) "Fiduciary organization" means:

 

(1) a community action agency that has obtained recognition under section 256E.31;

 

(2) a federal community development credit union;

 

(3) a women-oriented economic development agency;

 

(4) a federally recognized Tribal Nation; or

 

(5) a nonprofit organization as defined under section 501(c)(3) of the Internal Revenue Code.

 

(e) "Financial coach" means a person who:

 

(1) has completed an intensive financial literacy training workshop that includes curriculum on budgeting to increase savings, debt reduction and asset building, building a good credit rating, and consumer protection;

 

(2) participates in ongoing statewide family assets for independence in Minnesota (FAIM) network training meetings under FAIM program supervision; and

 

(3) provides financial coaching to program participants under subdivision 4a.

 

(f) "Financial institution" means a bank, bank and trust, savings bank, savings association, or credit union, the deposits of which are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.

 

(g) "Household" means all individuals who share finances and use of a dwelling unit as primary quarters for living and eating separate from other individuals.  Sharing finances does not include situations in which a person is living in the same dwelling unit as others without sharing any other financial arrangements.

 

(h) "Permissible use" means:

 

(1) postsecondary educational expenses at an eligible educational institution as defined in paragraph (b), including books, supplies, and equipment required for courses of instruction;

 

(2) acquisition costs of acquiring, constructing, or reconstructing a residence, including any usual or reasonable settlement, financing, or other closing costs;

 

(3) business capitalization expenses for expenditures on capital, plant, equipment, working capital, and inventory expenses of a legitimate business pursuant to a business plan approved by the fiduciary organization;

 

(4) acquisition costs of a principal residence within the meaning of section 1034 of the Internal Revenue Code of 1986 which do not exceed 100 percent of the average area purchase price applicable to the residence determined according to section 143(e)(2) and (3) of the Internal Revenue Code of 1986;

 

(5) acquisition costs of a personal vehicle only if approved by the fiduciary organization;

 

(6) contributions to an emergency savings account; and

 

(7) contributions to a Minnesota 529 savings plan.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13788

Sec. 3.  Minnesota Statutes 2022, section 256E.35, subdivision 5, is amended to read:

 

Subd. 5.  Household eligibility; participation.  (a) To be eligible for state or TANF matching funds in the family assets for independence initiative, a household must meet the eligibility requirements of the federal Assets for Independence Act, Public Law 105-285, in Title IV, section 408 of that act have maximum income that is equal to or less than the greater of:

 

(1) 50 percent of the area median income as determined by the United States Department of Housing and Urban Development; or

 

(2) 200 percent of the federal poverty guidelines.

 

(b) To be eligible for state matching funds under this section, a household must meet the requirements of this section.

 

(b) (c) Each participating household must sign a family asset agreement that includes the amount of scheduled deposits into its savings account, the proposed use, and the proposed savings goal.  A participating household must agree to complete an economic literacy training program.

 

(c) (d) Participating households may only deposit money that is derived from household earned income or from state and federal income tax credits.

 

Sec. 4.  Minnesota Statutes 2023 Supplement, section 256E.38, subdivision 4, is amended to read:

 

Subd. 4.  Eligible uses of grant money.  An eligible applicant that receives grant money under this section shall use the money to purchase diapers and wipes and may use up to four ten percent of the money for administrative costs.

 

ARTICLE 3

HOUSING AND HOMELESSNESS

 

Section 1.  EMERGENCY SHELTER NEEDS ANALYSIS FOR LGBTQIA+ YOUTH EXPERIENCING HOMELESSNESS.

 

(a) The commissioner of human services must contract with a third-party entity with experience conducting research related to youth experiencing homelessness, to conduct a needs analysis for emergency shelter serving LGBTQIA+ youth experiencing homelessness and to conduct site analysis and develop a plan for building the emergency shelter.

 

(b) In conducting the needs analysis under this section, the third-party entity must consider:

 

(1) the number of individuals needing emergency shelter at any given time;

 

(2) the age ranges of the individuals who would be served;

 

(3) the types of support services needed when individuals arrive at the shelter;

 

(4) the outreach necessary to let LGBTQIA+ individuals know that emergency shelter is available; and

 

(5) where individuals needing emergency shelter are coming from.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13789

(c) No later than March 1, 2025, the commissioner must submit a written report to the legislative committees with jurisdiction over services for persons experiencing homelessness with the results of the needs analysis, recommendations for a site location, and the plan for building the emergency shelter, as required under this section.

 

Sec. 2.  PREGNANT AND PARENTING HOMELESS YOUTH STUDY.

 

(a) The commissioner of human services must contract with the Wilder Foundation to conduct a study of:

 

(1) the statewide numbers and unique needs of pregnant and parenting youth experiencing homelessness; and

 

(2) best practices in supporting pregnant and parenting homeless youth within programming, emergency shelter, and housing settings.

 

(b) The Wilder Foundation must submit a final report to the commissioner by December 31, 2025.  The commissioner shall submit the report to the chairs and ranking minority members of the legislative committees with jurisdiction over homeless youth services finance and policy.

 

ARTICLE 4

CHILD CARE LICENSING

 

Section 1.  [142B.171] CHILD CARE WEIGHTED RISK SYSTEM.

 

Subdivision 1.  Implementation.  The commissioner shall develop and implement a child care weighted risk system that provides a tiered licensing enforcement framework for child care licensing requirements in this chapter or Minnesota Rules, chapter 9502 or 9503.

 

Subd. 2.  Documented technical assistance.  (a) In lieu of a correction order under section 142B.16, the commissioner shall provide documented technical assistance to a family child care or child care center license holder if the commissioner finds that:

 

(1) the license holder has failed to comply with a requirement in this chapter or Minnesota Rules, chapter 9502 or 9503, that the commissioner determines to be low risk as determined by the child care weighted risk system;

 

(2) the noncompliance does not imminently endanger the health, safety, or rights of the persons served by the program; and

 

(3) the license holder did not receive documented technical assistance or a correction order for the same violation at the license holder's most recent annual licensing inspection.

 

(b) Documented technical assistance must include communication from the commissioner to the license holder that:

 

(1) states the conditions that constitute a violation of a law or rule;

 

(2) references the specific law or rule violated; and

 

(3) explains remedies for correcting the violation.

 

(c) The commissioner shall not publicly publish documented technical assistance on the department's website.

 

Sec. 2.  REPEALER.

 

Minnesota Statutes 2022, section 245A.065, is repealed.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13790

ARTICLE 5

DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES

 

Section 1.  [142A.045] CHILDREN, YOUTH, AND FAMILIES INTERGOVERNMENTAL ADVISORY COMMITTEE.

 

(a) An intergovernmental advisory committee is established to provide advice, consultation, and recommendations to the commissioner on the planning, design, administration, funding, and evaluation of services to children, youth, and families.  Notwithstanding section 15.059, the commissioner, the Association of Minnesota Counties, and the Minnesota Association of County Social Services Administrators must codevelop and execute a process to administer the committee that ensures each county is represented.  The committee must meet at least quarterly and special meetings may be called by the committee chair or a majority of the members.

 

(b) Subject to section 15.059, the commissioner may reimburse committee members or their alternates for allowable expenses while engaged in their official duties as committee members.

 

(c) Notwithstanding section 15.059, the intergovernmental advisory committee does not expire.

 

Sec. 2.  Minnesota Statutes 2022, section 245.975, subdivision 2, is amended to read:

 

Subd. 2.  Duties.  (a) The ombudsperson's duties shall include:

 

(1) advocating on behalf of a family child care provider to address all areas of concern related to the provision of child care services, including licensing monitoring activities, licensing actions, and other interactions with state and county licensing staff;

 

(2) providing recommendations for family child care improvement or family child care provider education;

 

(3) operating a telephone line to answer questions, receive complaints, and discuss agency actions when a family child care provider believes that the provider's rights or program may have been adversely affected; and

 

(4) assisting a family child care license applicant with navigating the application process.

 

(b) The ombudsperson must report annually by December 31 to the commissioner of children, youth, and families and the chairs and ranking minority members of the legislative committees with jurisdiction over child care on the services provided by the ombudsperson to child care providers, including the number and locations of child care providers served and the activities of the ombudsperson in carrying out the duties under this section.  The commissioner shall determine the form of the report and may specify additional reporting requirements.

 

Sec. 3.  Minnesota Statutes 2022, section 245.975, subdivision 4, is amended to read:

 

Subd. 4.  Access to records.  (a) The ombudsperson or designee, excluding volunteers, has access to any data of a state agency necessary for the discharge of the ombudsperson's duties, including records classified as confidential data on individuals or private data on individuals under chapter 13 or any other law.  The ombudsperson's data request must relate to a specific case and is subject to section 13.03, subdivision 4.  If the data concerns an individual, the ombudsperson or designee shall first obtain the individual's consent.  If the individual is unable to consent and has no parent or legal guardian, then the ombudsperson's or designee's access to the data is authorized by this section.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13791

(b) The ombudsperson and designees must adhere to the Minnesota Government Data Practices Act and must not disseminate any private or confidential data on individuals unless specifically authorized by state, local, or federal law or pursuant to a court order.

 

(c) The commissioner of human services; the commissioner of children, youth, and families; and any county agency must provide the ombudsperson copies of all fix-it tickets, correction orders, and licensing actions issued to family child care providers.

 

Sec. 4.  Minnesota Statutes 2022, section 245.975, subdivision 9, is amended to read:

 

Subd. 9.  Posting.  (a) The commissioner of children, youth, and families shall post on the department's website the mailing address, email address, and telephone number for the office of the ombudsperson.  The commissioner shall provide family child care providers with the mailing address, email address, and telephone number of the ombudsperson's office on the family child care licensing website and upon request of a family child care applicant or provider.  Counties must provide family child care applicants and providers with the name, mailing address, email address, and telephone number of the ombudsperson's office upon request.

 

(b) The ombudsperson must approve all postings and notices required by the department and counties under this subdivision.

 

Sec. 5.  Minnesota Statutes 2023 Supplement, section 256.043, subdivision 3, is amended to read:

 

Subd. 3.  Appropriations from registration and license fee account.  (a) The appropriations in paragraphs (b) to (n) shall be made from the registration and license fee account on a fiscal year basis in the order specified.

 

(b) The appropriations specified in Laws 2019, chapter 63, article 3, section 1, paragraphs (b), (f), (g), and (h), as amended by Laws 2020, chapter 115, article 3, section 35, shall be made accordingly.

 

(c) $100,000 is appropriated to the commissioner of human services for grants for opiate antagonist distribution.  Grantees may utilize funds for opioid overdose prevention, community asset mapping, education, and opiate antagonist distribution.

 

(d) $2,000,000 is appropriated to the commissioner of human services for grants to Tribal nations and five urban Indian communities for traditional healing practices for American Indians and to increase the capacity of culturally specific providers in the behavioral health workforce.

 

(e) $400,000 is appropriated to the commissioner of human services for competitive grants for opioid-focused Project ECHO programs.

 

(f) $277,000 in fiscal year 2024 and $321,000 each year thereafter is appropriated to the commissioner of human services to administer the funding distribution and reporting requirements in paragraph (o).

 

(g) $3,000,000 in fiscal year 2025 and $3,000,000 each year thereafter is appropriated to the commissioner of human services for safe recovery sites start-up and capacity building grants under section 254B.18.

 

(h) $395,000 in fiscal year 2024 and $415,000 each year thereafter is appropriated to the commissioner of human services for the opioid overdose surge alert system under section 245.891.

 

(i) $300,000 is appropriated to the commissioner of management and budget for evaluation activities under section 256.042, subdivision 1, paragraph (c).


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13792

(j) $261,000 is appropriated to the commissioner of human services for the provision of administrative services to the Opiate Epidemic Response Advisory Council and for the administration of the grants awarded under paragraph (n).

 

(k) $126,000 is appropriated to the Board of Pharmacy for the collection of the registration fees under section 151.066.

 

(l) $672,000 is appropriated to the commissioner of public safety for the Bureau of Criminal Apprehension.  Of this amount, $384,000 is for drug scientists and lab supplies and $288,000 is for special agent positions focused on drug interdiction and drug trafficking.

 

(m) After the appropriations in paragraphs (b) to (l) are made, 50 percent of the remaining amount is appropriated to the commissioner of human services children, youth, and families for distribution to county social service agencies and Tribal social service agency initiative projects authorized under section 256.01, subdivision 14b, to provide child protection services to children and families who are affected by addiction.  The commissioner shall distribute this money proportionally to county social service agencies and Tribal social service agency initiative projects based on out-of-home placement episodes where parental drug abuse is the primary reason for the out-of-home placement using data from the previous calendar year.  County social service agencies and Tribal social service agency initiative projects receiving funds from the opiate epidemic response fund must annually report to the commissioner on how the funds were used to provide child protection services, including measurable outcomes, as determined by the commissioner.  County social service agencies and Tribal social service agency initiative projects must not use funds received under this paragraph to supplant current state or local funding received for child protection services for children and families who are affected by addiction.

 

(n) After the appropriations in paragraphs (b) to (m) are made, the remaining amount in the account is appropriated to the commissioner of human services to award grants as specified by the Opiate Epidemic Response Advisory Council in accordance with section 256.042, unless otherwise appropriated by the legislature.

 

(o) Beginning in fiscal year 2022 and each year thereafter, funds for county social service agencies and Tribal social service agency initiative projects under paragraph (m) and grant funds specified by the Opiate Epidemic Response Advisory Council under paragraph (n) may be distributed on a calendar year basis.

 

(p) Notwithstanding section 16A.28, subdivision 3, funds appropriated in paragraphs (c), (d), (e), (g), (m), and (n) are available for three years after the funds are appropriated.

 

Sec. 6.  Minnesota Statutes 2023 Supplement, section 256.043, subdivision 3a, is amended to read:

 

Subd. 3a.  Appropriations from settlement account.  (a) The appropriations in paragraphs (b) to (e) shall be made from the settlement account on a fiscal year basis in the order specified.

 

(b) If the balance in the registration and license fee account is not sufficient to fully fund the appropriations specified in subdivision 3, paragraphs (b) to (l), an amount necessary to meet any insufficiency shall be transferred from the settlement account to the registration and license fee account to fully fund the required appropriations.

 

(c) $209,000 in fiscal year 2023 and $239,000 in fiscal year 2024 and subsequent fiscal years are appropriated to the commissioner of human services for the administration of grants awarded under paragraph (e).  $276,000 in fiscal year 2023 and $151,000 in fiscal year 2024 and subsequent fiscal years are appropriated to the commissioner of human services to collect, collate, and report data submitted and to monitor compliance with reporting and settlement expenditure requirements by grantees awarded grants under this section and municipalities receiving direct payments from a statewide opioid settlement agreement as defined in section 256.042, subdivision 6.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13793

(d) After any appropriations necessary under paragraphs (b) and (c) are made, an amount equal to the calendar year allocation to Tribal social service agency initiative projects under subdivision 3, paragraph (m), is appropriated from the settlement account to the commissioner of human services children, youth, and families for distribution to Tribal social service agency initiative projects to provide child protection services to children and families who are affected by addiction.  The requirements related to proportional distribution, annual reporting, and maintenance of effort specified in subdivision 3, paragraph (m), also apply to the appropriations made under this paragraph.

 

(e) After making the appropriations in paragraphs (b), (c), and (d), the remaining amount in the account is appropriated to the commissioner of human services to award grants as specified by the Opiate Epidemic Response Advisory Council in accordance with section 256.042.

 

(f) Funds for Tribal social service agency initiative projects under paragraph (d) and grant funds specified by the Opiate Epidemic Response Advisory Council under paragraph (e) may be distributed on a calendar year basis.

 

(g) Notwithstanding section 16A.28, subdivision 3, funds appropriated in paragraphs (d) and (e) are available for three years after the funds are appropriated.

 

Sec. 7.  Minnesota Statutes 2023 Supplement, section 256.045, subdivision 3, as amended by Laws 2024, chapter 79, article 3, section 3, and Laws 2024, chapter 80, article 1, section 67, is amended to read:

 

Subd. 3.  State agency hearings.  (a) State agency hearings are available for the following:

 

(1) any person:

 

(i) applying for, receiving or having received public assistance, medical care, or a program of social services administered by the commissioner or a county agency on behalf of the commissioner; and

 

(ii) whose application for assistance is denied, not acted upon with reasonable promptness, or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly paid;

 

(2) any patient or relative aggrieved by an order of the commissioner under section 252.27;

 

(3) a party aggrieved by a ruling of a prepaid health plan;

 

(4) except as provided under chapter 245C, any individual or facility determined by a lead investigative agency to have maltreated a vulnerable adult under section 626.557 after they have exercised their right to administrative reconsideration under section 626.557;

 

(5) any person to whom a right of appeal according to this section is given by other provision of law;

 

(6) an applicant aggrieved by an adverse decision to an application for a hardship waiver under section 256B.15;

 

(7) an applicant aggrieved by an adverse decision to an application or redetermination for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a;

 

(8) except as provided under chapter 245A, an individual or facility determined to have maltreated a minor under chapter 260E, after the individual or facility has exercised the right to administrative reconsideration under chapter 260E;

 

(8) (9) except as provided under chapter 245C and except for a subject of a background study that the commissioner has conducted on behalf of another agency for a program or facility not otherwise overseen by the commissioner, an individual disqualified under sections 245C.14 and 245C.15, following a reconsideration decision


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13794

issued under section 245C.23, on the basis of serious or recurring maltreatment; a preponderance of the evidence that the individual has committed an act or acts that meet the definition of any of the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make reports required under section 260E.06, subdivision 1, or 626.557, subdivision 3.  Hearings regarding a maltreatment determination under clause (4) or (8) or section 142A.20, subdivision 3, clause (4), and a disqualification under this clause in which the basis for a disqualification is serious or recurring maltreatment, shall be consolidated into a single fair hearing.  In such cases, the scope of review by the human services judge shall include both the maltreatment determination and the disqualification.  The failure to exercise the right to an administrative reconsideration shall not be a bar to a hearing under this section if federal law provides an individual the right to a hearing to dispute a finding of maltreatment;

 

(9) (10) any person with an outstanding debt resulting from receipt of public assistance administered by the commissioner or medical care who is contesting a setoff claim by the Department of Human Services or a county agency.  The scope of the appeal is the validity of the claimant agency's intention to request a setoff of a refund under chapter 270A against the debt;

 

(10) (11) a person issued a notice of service termination under section 245D.10, subdivision 3a, by a licensed provider of any residential supports or services listed in section 245D.03, subdivision 1, paragraphs (b) and (c), that is not otherwise subject to appeal under subdivision 4a;

 

(11) (12) an individual disability waiver recipient based on a denial of a request for a rate exception under section 256B.4914;

 

(12) (13) a person issued a notice of service termination under section 245A.11, subdivision 11, that is not otherwise subject to appeal under subdivision 4a; or

 

(13) (14) a recovery community organization seeking medical assistance vendor eligibility under section 254B.01, subdivision 8, that is aggrieved by a membership or accreditation determination and that believes the organization meets the requirements under section 254B.05, subdivision 1, paragraph (d), clauses (1) to (10).  The scope of the review by the human services judge shall be limited to whether the organization meets each of the requirements under section 254B.05, subdivision 1, paragraph (d), clauses (1) to (10).

 

(b) The hearing for an individual or facility under paragraph (a), clause (4), (8), or (9), is the only administrative appeal to the final agency determination specifically, including a challenge to the accuracy and completeness of data under section 13.04.  Hearings requested under paragraph (a), clause (4), apply only to incidents of maltreatment that occur on or after October 1, 1995.  Hearings requested by nursing assistants in nursing homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a contested case proceeding under the provisions of chapter 14.  Hearings requested under paragraph (a), clause (8), apply only to incidents of maltreatment that occur on or after July 1, 1997.  A hearing for an individual or facility under paragraph (a), clause (4), (8), or (9), is only available when there is no district court action pending.  If such action is filed in district court while an administrative review is pending that arises out of some or all of the events or circumstances on which the appeal is based, the administrative review must be suspended until the judicial actions are completed.  If the district court proceedings are completed, dismissed, or overturned, the matter may be considered in an administrative hearing.

 

(c) For purposes of this section, bargaining unit grievance procedures are not an administrative appeal.

 

(d) The scope of hearings involving claims to foster care payments under section 142A.20, subdivision 2, clause (2), shall be limited to the issue of whether the county is legally responsible for a child's placement under court order or voluntary placement agreement and, if so, the correct amount of foster care payment to be made on the child's behalf and shall not include review of the propriety of the county's child protection determination or child placement decision.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13795

(d) (e) The scope of hearings under paragraph (a), clauses (11) and (13), shall be limited to whether the proposed termination of services is authorized under section 245D.10, subdivision 3a, paragraph (b), or 245A.11, subdivision 11, and whether the requirements of section 245D.10, subdivision 3a, paragraphs (c) to (e), or 245A.11, subdivision 2a, paragraphs (d) and (e), were met.  If the appeal includes a request for a temporary stay of termination of services, the scope of the hearing shall also include whether the case management provider has finalized arrangements for a residential facility, a program, or services that will meet the assessed needs of the recipient by the effective date of the service termination.

 

(e) (f) A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services is not a party and may not request a hearing under this section, except if assisting a recipient as provided in subdivision 4.

 

(f) (g) An applicant or recipient is not entitled to receive social services beyond the services prescribed under chapter 256M or other social services the person is eligible for under state law.

 

(g) (h) The commissioner may summarily affirm the county or state agency's proposed action without a hearing when the sole issue is an automatic change due to a change in state or federal law, except in matters covered by paragraph (h) (i).

 

(h) (i) When the subject of an administrative review is a matter within the jurisdiction of the direct care and treatment executive board as a part of the board's powers and duties under chapter 246C, the executive board may summarily affirm the county or state agency's proposed action without a hearing when the sole issue is an automatic change due to a change in state or federal law.

 

(i) (j) Unless federal or Minnesota law specifies a different time frame in which to file an appeal, an individual or organization specified in this section may contest the specified action, decision, or final disposition before the state agency by submitting a written request for a hearing to the state agency within 30 days after receiving written notice of the action, decision, or final disposition, or within 90 days of such written notice if the applicant, recipient, patient, or relative shows good cause, as defined in section 256.0451, subdivision 13, why the request was not submitted within the 30-day time limit.  The individual filing the appeal has the burden of proving good cause by a preponderance of the evidence.

 

Sec. 8.  Minnesota Statutes 2022, section 256.045, subdivision 3b, as amended by Laws 2024, chapter 80, article 1, section 68, is amended to read:

 

Subd. 3b.  Standard of evidence for maltreatment and disqualification hearings.  (a) The state human services judge shall determine that maltreatment has occurred if a preponderance of evidence exists to support the final disposition under section 626.557 and chapter 260E.  For purposes of hearings regarding disqualification, the state human services judge shall affirm the proposed disqualification in an appeal under subdivision 3, paragraph (a), clause (9), if a preponderance of the evidence shows the individual has:

 

(1) committed maltreatment under section 626.557 or chapter 260E that is serious or recurring;

 

(2) committed an act or acts meeting the definition of any of the crimes listed in section 245C.15, subdivisions 1 to 4; or

 

(3) failed to make required reports under section 626.557 or chapter 260E, for incidents in which the final disposition under section 626.557 or chapter 260E was substantiated maltreatment that was serious or recurring.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13796

(b) If the disqualification is affirmed, the state human services judge shall determine whether the individual poses a risk of harm in accordance with the requirements of section 245C.22, and whether the disqualification should be set aside or not set aside.  In determining whether the disqualification should be set aside, the human services judge shall consider all of the characteristics that cause the individual to be disqualified, including those characteristics that were not subject to review under paragraph (a), in order to determine whether the individual poses a risk of harm.  A decision to set aside a disqualification that is the subject of the hearing constitutes a determination that the individual does not pose a risk of harm and that the individual may provide direct contact services in the individual program specified in the set aside.

 

(c) If a disqualification is based solely on a conviction or is conclusive for any reason under section 245C.29, the disqualified individual does not have a right to a hearing under this section.

 

(d) The state human services judge shall recommend an order to the commissioner of health,; education,; children, youth, and families; or human services, as applicable, who shall issue a final order.  The commissioner shall affirm, reverse, or modify the final disposition.  Any order of the commissioner issued in accordance with this subdivision is conclusive upon the parties unless appeal is taken in the manner provided in subdivision 7.  In any licensing appeal under chapters 245A and 245C and sections 144.50 to 144.58 and 144A.02 to 144A.482, the commissioner's determination as to maltreatment is conclusive, as provided under section 245C.29.

 

Sec. 9.  Minnesota Statutes 2022, section 256.045, subdivision 5, as amended by Laws 2024, chapter 79, article 3, section 4, is amended to read:

 

Subd. 5.  Orders of the commissioner of human services.  (a) Except as provided for under subdivision 5a for matters under the jurisdiction of the direct care and treatment executive board and for hearings held under section 142A.20, subdivision 2, a state human services judge shall conduct a hearing on the appeal and shall recommend an order to the commissioner of human services.  The recommended order must be based on all relevant evidence and must not be limited to a review of the propriety of the state or county agency's action.  A human services judge may take official notice of adjudicative facts.  The commissioner of human services may accept the recommended order of a state human services judge and issue the order to the county agency and the applicant, recipient, former recipient, or prepaid health plan.  The commissioner on refusing to accept the recommended order of the state human services judge, shall notify the petitioner, the agency, or prepaid health plan of that fact and shall state reasons therefor and shall allow each party ten days' time to submit additional written argument on the matter.  After the expiration of the ten-day period, the commissioner shall issue an order on the matter to the petitioner, the agency, or prepaid health plan.

 

(b) A party aggrieved by an order of the commissioner may appeal under subdivision 7, or request reconsideration by the commissioner within 30 days after the date the commissioner issues the order.  The commissioner may reconsider an order upon request of any party or on the commissioner's own motion.  A request for reconsideration does not stay implementation of the commissioner's order.  The person seeking reconsideration has the burden to demonstrate why the matter should be reconsidered.  The request for reconsideration may include legal argument and proposed additional evidence supporting the request.  If proposed additional evidence is submitted, the person must explain why the proposed additional evidence was not provided at the time of the hearing.  If reconsideration is granted, the other participants must be sent a copy of all material submitted in support of the request for reconsideration and must be given ten days to respond.  Upon reconsideration, the commissioner may issue an amended order or an order affirming the original order.

 

(c) Any order of the commissioner issued under this subdivision shall be conclusive upon the parties unless appeal is taken in the manner provided by subdivision 7.  Any order of the commissioner is binding on the parties and must be implemented by the state agency, a county agency, or a prepaid health plan according to subdivision 3a, until the order is reversed by the district court, or unless the commissioner or a district court orders monthly assistance or aid or services paid or provided under subdivision 10.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13797

(d) A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services is not a party and may not request a hearing or seek judicial review of an order issued under this section, unless assisting a recipient as provided in subdivision 4.  A prepaid health plan is a party to an appeal under subdivision 3a, but cannot seek judicial review of an order issued under this section.

 

Sec. 10.  Minnesota Statutes 2022, section 256.045, subdivision 7, as amended by Laws 2024, chapter 79, article 3, section 7, is amended to read:

 

Subd. 7.  Judicial review.  Except for a prepaid health plan, any party who is aggrieved by an order of the commissioner of human services,; the commissioner of health; or the commissioner of children, youth, and families in appeals within the commissioner's jurisdiction under subdivision 3b,; or the direct care and treatment executive board in appeals within the jurisdiction of the executive board under subdivision 5a may appeal the order to the district court of the county responsible for furnishing assistance, or, in appeals under subdivision 3b, the county where the maltreatment occurred, by serving a written copy of a notice of appeal upon the applicable commissioner or executive board and any adverse party of record within 30 days after the date the commissioner or executive board issued the order, the amended order, or order affirming the original order, and by filing the original notice and proof of service with the court administrator of the district court.  Service may be made personally or by mail; service by mail is complete upon mailing; no filing fee shall be required by the court administrator in appeals taken pursuant to this subdivision, with the exception of appeals taken under subdivision 3b.  The applicable commissioner or executive board may elect to become a party to the proceedings in the district court.  Except for appeals under subdivision 3b, any party may demand that the commissioner or executive board furnish all parties to the proceedings with a copy of the decision, and a transcript of any testimony, evidence, or other supporting papers from the hearing held before the human services judge, by serving a written demand upon the applicable commissioner or executive board within 30 days after service of the notice of appeal.  Any party aggrieved by the failure of an adverse party to obey an order issued by the commissioner or executive board under subdivisions 5 or 5a may compel performance according to the order in the manner prescribed in sections 586.01 to 586.12.

 

Sec. 11.  Minnesota Statutes 2022, section 256.0451, subdivision 1, as amended by Laws 2024, chapter 80, article 1, section 72, is amended to read:

 

Subdivision 1.  Scope.  (a) The requirements in this section apply to all fair hearings and appeals under section sections 142A.20, subdivision 2, and 256.045, subdivision 3, paragraph (a), clauses (1), (2), (3), (5), (6), (7), (8), (11) (10), and (13) (12).  Except as provided in subdivisions 3 and 19, the requirements under this section apply to fair hearings and appeals under section 256.045, subdivision 3, paragraph (a), clauses (4), (9) (8), (10) (9), and (12) (11).

 

(b) For purposes of this section, "person" means an individual who, on behalf of themselves or their household, is appealing or disputing or challenging an action, a decision, or a failure to act, by an agency in the human services system.  When a person involved in a proceeding under this section is represented by an attorney or by an authorized representative, the term "person" also means the person's attorney or authorized representative.  Any notice sent to the person involved in the hearing must also be sent to the person's attorney or authorized representative.

 

(c) For purposes of this section, "agency" means the county human services agency, the state human services agency, and, where applicable, any entity involved under a contract, subcontract, grant, or subgrant with the state agency or with a county agency, that provides or operates programs or services in which appeals are governed by section 256.045.

 

Sec. 12.  Minnesota Statutes 2022, section 256.0451, subdivision 22, is amended to read:

 

Subd. 22.  Decisions.  A timely, written decision must be issued in every appeal.  Each decision must contain a clear ruling on the issues presented in the appeal hearing and should contain a ruling only on questions directly presented by the appeal and the arguments raised in the appeal.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13798

(a) A written decision must be issued within 90 days of the date the person involved requested the appeal unless a shorter time is required by law.  An additional 30 days is provided in those cases where the commissioner refuses to accept the recommended decision.  In appeals of maltreatment determinations or disqualifications filed pursuant to section 256.045, subdivision 3, paragraph (a), clause (4), (9) (8), or (10) (9), that also give rise to possible licensing actions, the 90-day period for issuing final decisions does not begin until the later of the date that the licensing authority provides notice to the appeals division that the authority has made the final determination in the matter or the date the appellant files the last appeal in the consolidated matters.

 

(b) The decision must contain both findings of fact and conclusions of law, clearly separated and identified.  The findings of fact must be based on the entire record.  Each finding of fact made by the human services judge shall be supported by a preponderance of the evidence unless a different standard is required under the regulations of a particular program.  The "preponderance of the evidence" means, in light of the record as a whole, the evidence leads the human services judge to believe that the finding of fact is more likely to be true than not true.  The legal claims or arguments of a participant do not constitute either a finding of fact or a conclusion of law, except to the extent the human services judge adopts an argument as a finding of fact or conclusion of law.

 

The decision shall contain at least the following:

 

(1) a listing of the date and place of the hearing and the participants at the hearing;

 

(2) a clear and precise statement of the issues, including the dispute under consideration and the specific points which must be resolved in order to decide the case;

 

(3) a listing of the material, including exhibits, records, reports, placed into evidence at the hearing, and upon which the hearing decision is based;

 

(4) the findings of fact based upon the entire hearing record.  The findings of fact must be adequate to inform the participants and any interested person in the public of the basis of the decision.  If the evidence is in conflict on an issue which must be resolved, the findings of fact must state the reasoning used in resolving the conflict;

 

(5) conclusions of law that address the legal authority for the hearing and the ruling, and which give appropriate attention to the claims of the participants to the hearing;

 

(6) a clear and precise statement of the decision made resolving the dispute under consideration in the hearing; and

 

(7) written notice of the right to appeal to district court or to request reconsideration, and of the actions required and the time limits for taking appropriate action to appeal to district court or to request a reconsideration.

 

(c) The human services judge shall not independently investigate facts or otherwise rely on information not presented at the hearing.  The human services judge may not contact other agency personnel, except as provided in subdivision 18.  The human services judge's recommended decision must be based exclusively on the testimony and evidence presented at the hearing, and legal arguments presented, and the human services judge's research and knowledge of the law.

 

(d) The commissioner will review the recommended decision and accept or refuse to accept the decision according to section 142A.20, subdivision 3, or 256.045, subdivision 5.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13799

Sec. 13.  Minnesota Statutes 2022, section 256.0451, subdivision 24, is amended to read:

 

Subd. 24.  Reconsideration.  (a) Reconsideration may be requested within 30 days of the date of the commissioner's final order.  If reconsideration is requested under section 142A.20, subdivision 3, or 256.045, subdivision 5, the other participants in the appeal shall be informed of the request.  The person seeking reconsideration has the burden to demonstrate why the matter should be reconsidered.  The request for reconsideration may include legal argument and may include proposed additional evidence supporting the request.  The other participants shall be sent a copy of all material submitted in support of the request for reconsideration and must be given ten days to respond.

 

(b) When the requesting party raises a question as to the appropriateness of the findings of fact, the commissioner shall review the entire record.

 

(c) When the requesting party questions the appropriateness of a conclusion of law, the commissioner shall consider the recommended decision, the decision under reconsideration, and the material submitted in connection with the reconsideration.  The commissioner shall review the remaining record as necessary to issue a reconsidered decision.

 

(d) The commissioner shall issue a written decision on reconsideration in a timely fashion.  The decision must clearly inform the parties that this constitutes the final administrative decision, advise the participants of the right to seek judicial review, and the deadline for doing so.

 

Sec. 14.  Minnesota Statutes 2022, section 256.046, subdivision 2, as amended by Laws 2024, chapter 80, article 1, section 75, is amended to read:

 

Subd. 2.  Combined hearing.  (a) The human services judge may combine a fair hearing under section 142A.20 or 256.045 and administrative fraud disqualification hearing under this section or section 142A.27 into a single hearing if the factual issues arise out of the same, or related, circumstances; the commissioner of human services has jurisdiction over at least one of the hearings; and the individual receives prior notice that the hearings will be combined.  If the administrative fraud disqualification hearing and fair hearing are combined, the time frames for administrative fraud disqualification hearings specified in Code of Federal Regulations, title 7, section 273.16, apply.  If the individual accused of wrongfully obtaining assistance is charged under section 256.98 for the same act or acts which are the subject of the hearing, the individual may request that the hearing be delayed until the criminal charge is decided by the court or withdrawn.

 

(b) The human services judge must conduct any hearings under section 142A.20 or 142A.27 pursuant to the relevant laws and rules governing children, youth, and families judges.

 

Sec. 15.  Laws 2023, chapter 70, article 12, section 30, subdivision 2, is amended to read:

 

Subd. 2.  Department of Human Services.  The powers and duties of the Department of Human Services with respect to the following responsibilities and related elements are transferred to the Department of Children, Youth, and Families according to Minnesota Statutes, section 15.039:

 

(1) family services and community-based collaboratives under Minnesota Statutes, section 124D.23;

 

(2) child care programs under Minnesota Statutes, chapter 119B;

 

(3) Parent Aware quality rating and improvement system under Minnesota Statutes, section 124D.142;

 

(4) migrant child care services under Minnesota Statutes, section 256M.50;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13800

(5) early childhood and school-age professional development training under Laws 2007, chapter 147, article 2, section 56;

 

(6) licensure of family child care and child care centers, child foster care, and private child placing agencies under Minnesota Statutes, chapter 245A;

 

(7) certification of license-exempt child care centers under Minnesota Statutes, chapter 245H;

 

(8) program integrity and fraud related to the Child Care Assistance Program (CCAP), the Minnesota Family Investment Program (MFIP), and the Supplemental Nutrition Assistance Program (SNAP) under Minnesota Statutes, chapters 119B and 245E;

 

(9) SNAP under Minnesota Statutes, sections 256D.60 to 256D.63;

 

(10) electronic benefit transactions under Minnesota Statutes, sections 256.9862, 256.9863, 256.9865, 256.987, 256.9871, 256.9872, and 256J.77;

 

(11) Minnesota food assistance program under Minnesota Statutes, section 256D.64;

 

(12) Minnesota food shelf program under Minnesota Statutes, section 256E.34;

 

(13) MFIP and Temporary Assistance for Needy Families (TANF) under Minnesota Statutes, sections 256.9864 and 256.9865 and chapters 256J and 256P;

 

(14) Diversionary Work Program (DWP) under Minnesota Statutes, section 256J.95;

 

(15) resettlement programs under Minnesota Statutes, section 256B.06, subdivision 6 American Indian food sovereignty program under Minnesota Statutes, section 256E.342;

 

(16) child abuse under Minnesota Statutes, chapter 256E;

 

(17) reporting of the maltreatment of minors under Minnesota Statutes, chapter 260E;

 

(18) children in voluntary foster care for treatment under Minnesota Statutes, chapter 260D;

 

(19) juvenile safety and placement under Minnesota Statutes, chapter 260C;

 

(20) the Minnesota Indian Family Preservation Act under Minnesota Statutes, sections 260.751 to 260.835;

 

(21) the Interstate Compact for Juveniles under Minnesota Statutes, section 260.515, and the Interstate Compact on the Placement of Children under Minnesota Statutes, sections 260.851 to 260.93;

 

(22) adoption under Minnesota Statutes, sections 259.20 to 259.89;

 

(23) Northstar Care for Children under Minnesota Statutes, chapter 256N;

 

(24) child support under Minnesota Statutes, chapters 13, 13B, 214, 256, 256J, 257, 259, 518, 518A, 518C, 551, 552, 571, and 588, and Minnesota Statutes, section 609.375;

 

(25) community action programs under Minnesota Statutes, sections 256E.30 to 256E.32; and


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13801

(26) Family Assets for Independence in Minnesota under Minnesota Statutes, section 256E.35.;

 

(27) capital for emergency food distribution facilities under Laws 2023, chapter 70, article 20, section 2, subdivision 24, paragraph (i);

 

(28) community resource centers under Laws 2023, chapter 70, article 14, section 42;

 

(29) diaper distribution grant program under Minnesota Statutes, section 256E.38;

 

(30) Family First Prevention Services Act support and development grant program under Minnesota Statutes, section 256.4793;

 

(31) Family First Prevention Services Act kinship navigator program under Minnesota Statutes, section 256.4794;

 

(32) family first prevention and early intervention allocation program under Minnesota Statutes, section 260.014;

 

(33) grants for prepared meals food relief under Laws 2023, chapter 70, article 12, section 33;

 

(34) homeless youth cash stipend pilot under Laws 2023, chapter 70, article 11, section 13;

 

(35) independent living skills for foster youth under Laws 2023, chapter 70, article 14, section 41;

 

(36) legacy adoption assistance under Minnesota Statutes, chapter 259A;

 

(37) quality parenting initiative grant program under Minnesota Statutes, section 245.0962;

 

(38) relative custody assistance under Minnesota Statutes, section 257.85;

 

(39) reimbursement to counties and Tribes for certain out-of-home placements under Minnesota Statutes, section 477A.0126; and

 

(40) Supplemental Nutrition Assistance Program outreach under Minnesota Statutes, section 256D.65.

 

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

 

Sec. 16.  Laws 2023, chapter 70, article 12, section 30, subdivision 3, is amended to read:

 

Subd. 3.  Department of Education.  The powers and duties of the Department of Education with respect to the following responsibilities and related elements are transferred to the Department of Children, Youth, and Families according to Minnesota Statutes, section 15.039:

 

(1) Head Start Program and Early Head Start under Minnesota Statutes, sections 119A.50 to 119A.545;

 

(2) the early childhood screening program under Minnesota Statutes, sections 121A.16 to 121A.19;

 

(3) early learning scholarships under Minnesota Statutes, section 124D.165;

 

(4) the interagency early childhood intervention system under Minnesota Statutes, sections 125A.259 to 125A.48;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13802

(5) voluntary prekindergarten programs and school readiness plus programs under Minnesota Statutes, section 124D.151;

 

(6) early childhood family education programs under Minnesota Statutes, sections 124D.13 to 124D.135;

 

(7) school readiness under Minnesota Statutes, sections 124D.15 to 124D.16; and

 

(8) after-school community learning programs under Minnesota Statutes, section 124D.2211.; and

 

(9) grow your own program under Minnesota Statutes, section 122A.731.

 

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

 

Sec. 17.  Laws 2024, chapter 80, article 1, section 38, subdivision 1, is amended to read:

 

Subdivision 1.  Children, youth, and families judges; appointment Hearings held by the Department of Human Services.  The commissioner of children, youth, and families may appoint one or more state children, youth, and families judges to conduct hearings and recommend orders in accordance with subdivisions 2, 3, and 5.  Children, youth, and families judges designated pursuant to this section may administer oaths and shall be under the control and supervision of the commissioner of children, youth, and families and shall not be a part of the Office of Administrative Hearings established pursuant to sections 14.48 to 14.56.  The commissioner shall only appoint as a full-time children, youth, and families judge an individual who is licensed to practice law in Minnesota and who is:

 

(1) in active status;

 

(2) an inactive resident;

 

(3) retired;

 

(4) on disabled status; or

 

(5) on retired senior status.

 

All state agency hearings under subdivision 2 must be heard by a human services judge pursuant to sections 256.045 and 256.0451.

 

Sec. 18.  Laws 2024, chapter 80, article 1, section 38, subdivision 2, is amended to read:

 

Subd. 2.  State agency hearings.  (a) State agency hearings are available for the following:

 

(1) any person:

 

(i) applying for, receiving, or having received public assistance or a program of social services administered by the commissioner or a county agency on behalf of the commissioner or the federal Food and Nutrition Act; and

 

(ii) whose application for assistance is denied, not acted upon with reasonable promptness, or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly paid;

 

(2) any person whose claim for foster care payment according to a placement of the child resulting from a child protection assessment under chapter 260E is denied or not acted upon with reasonable promptness, regardless of funding source;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13803

(3) any person to whom a right of appeal according to this section is given by other provision of law; and

 

(4) except as provided under chapter 142B, an individual or facility determined to have maltreated a minor under chapter 260E, after the individual or facility has exercised the right to administrative reconsideration under chapter 260E;

 

(5) except as provided under chapter 245C, an individual disqualified under sections 245C.14 and 245C.15, following a reconsideration decision issued under section 245C.23, on the basis of serious or recurring maltreatment; of a preponderance of the evidence that the individual has committed an act or acts that meet the definition of any of the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make reports required under section 260E.06, subdivision 1, or 626.557, subdivision 3.  Hearings regarding a maltreatment determination under clause (4) and a disqualification under this clause in which the basis for a disqualification is serious or recurring maltreatment shall be consolidated into a single fair hearing.  In such cases, the scope of review by the children, youth, and families judge shall include both the maltreatment determination and the disqualification.  The failure to exercise the right to an administrative reconsideration shall not be a bar to a hearing under this section if federal law provides an individual the right to a hearing to dispute a finding of maltreatment; and

 

(6) (4) any person with an outstanding debt resulting from receipt of public assistance or the federal Food and Nutrition Act who is contesting a setoff claim by the commissioner of children, youth, and families or a county agency.  The scope of the appeal is the validity of the claimant agency's intention to request a setoff of a refund under chapter 270A against the debt.

 

(b) The hearing for an individual or facility under paragraph (a), clause (4) or (5), is the only administrative appeal to the final agency determination specifically, including a challenge to the accuracy and completeness of data under section 13.04.  A hearing for an individual or facility under paragraph (a), clause (4) or (5), is only available when there is no district court action pending.  If such action is filed in district court while an administrative review is pending that arises out of some or all of the events or circumstances on which the appeal is based, the administrative review must be suspended until the judicial actions are completed.  If the district court proceedings are completed, dismissed, or overturned, the matter may be considered in an administrative hearing.

 

(c) For purposes of this section, bargaining unit grievance procedures are not an administrative appeal.

 

(d) The scope of hearings involving claims to foster care payments under paragraph (a), clause (2), shall be limited to the issue of whether the county is legally responsible for a child's placement under court order or voluntary placement agreement and, if so, the correct amount of foster care payment to be made on the child's behalf and shall not include review of the propriety of the county's child protection determination or child placement decision.

 

(e) An applicant or recipient is not entitled to receive social services beyond the services prescribed under chapter 256M or other social services the person is eligible for under state law.

 

(f) The commissioner may summarily affirm the county or state agency's proposed action without a hearing when the sole issue is an automatic change due to a change in state or federal law.

 

(g) Unless federal or Minnesota law specifies a different time frame in which to file an appeal, an individual or organization specified in this section may contest the specified action, decision, or final disposition before the state agency by submitting a written request for a hearing to the state agency within 30 days after receiving written notice of the action, decision, or final disposition or within 90 days of such written notice if the applicant, recipient, patient, or relative shows good cause, as defined in section 142A.21, subdivision 13, why the request was not submitted within the 30-day time limit.  The individual filing the appeal has the burden of proving good cause by a preponderance of the evidence.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13804

Sec. 19.  Laws 2024, chapter 80, article 1, section 38, subdivision 5, is amended to read:

 

Subd. 5.  Orders of the commissioner of children, youth, and families.  (a) A state children, youth, and families human services judge shall conduct a hearing on the an appeal of a matter listed in subdivision 2 and shall recommend an order to the commissioner of children, youth, and families.  The recommended order must be based on all relevant evidence and must not be limited to a review of the propriety of the state or county agency's action.  A children, youth, and families state human services judge may take official notice of adjudicative facts.  The commissioner of children, youth, and families may accept the recommended order of a state children, youth, and families human services judge and issue the order to the county agency and the applicant, recipient, or former recipient.  If the commissioner refuses to accept the recommended order of the state children, youth, and families human services judge, the commissioner shall notify the petitioner or the agency of the commissioner's refusal and shall state reasons for the refusal.  The commissioner shall allow each party ten days' time to submit additional written argument on the matter.  After the expiration of the ten-day period, the commissioner shall issue an order on the matter to the petitioner and the agency.

 

(b) A party aggrieved by an order of the commissioner may appeal under subdivision 7 5 or request reconsideration by the commissioner within 30 days after the date the commissioner issues the order.  The commissioner may reconsider an order upon request of any party or on the commissioner's own motion.  A request for reconsideration does not stay implementation of the commissioner's order.  The person seeking reconsideration has the burden to demonstrate why the matter should be reconsidered.  The request for reconsideration may include legal argument and proposed additional evidence supporting the request.  If proposed additional evidence is submitted, the person must explain why the proposed additional evidence was not provided at the time of the hearing.  If reconsideration is granted, the other participants must be sent a copy of all material submitted in support of the request for reconsideration and must be given ten days to respond.  Upon reconsideration, the commissioner may issue an amended order or an order affirming the original order.

 

(c) Any order of the commissioner issued under this subdivision shall be conclusive upon the parties unless appeal is taken in the manner provided by subdivision 7 5.  Any order of the commissioner is binding on the parties and must be implemented by the state agency or a county agency until the order is reversed by the district court or unless the commissioner or a district court orders monthly assistance or aid or services paid or provided under subdivision 10 8.

 

(d) A vendor under contract with a county agency to provide social services is not a party and may not request a hearing or seek judicial review of an order issued under this section, unless assisting a recipient as provided in section 256.045, subdivision 4.

 

Sec. 20.  Laws 2024, chapter 80, article 1, section 38, subdivision 6, is amended to read:

 

Subd. 6.  Additional powers of commissioner; subpoenas.  (a) The commissioner may initiate a review of any action or decision of a county agency and direct that the matter be presented to a state children, youth, and families human services judge for a hearing held under subdivision 2 or 3 section 256.045, subdivision 3b.  In all matters dealing with children, youth, and families committed by law to the discretion of the county agency, the commissioner's judgment may be substituted for that of the county agency.  The commissioner may order an independent examination when appropriate.

 

(b) Any party to a hearing held pursuant to subdivision 2 or 3 section 256.045, subdivision 3b, may request that the commissioner issue a subpoena to compel the attendance of witnesses and the production of records at the hearing.  A local agency may request that the commissioner issue a subpoena to compel the release of information from third parties prior to a request for a hearing under section 142A.21 upon a showing of relevance to such a proceeding.  The issuance, service, and enforcement of subpoenas under this subdivision is governed by section 357.22 and the Minnesota Rules of Civil Procedure.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13805

(c) The commissioner may issue a temporary order staying a proposed demission by a residential facility licensed under chapter 142B:

 

(1) while an appeal by a recipient under subdivision 3 is pending; or

 

(2) for the period of time necessary for the case management provider to implement the commissioner's order.

 

Sec. 21.  Laws 2024, chapter 80, article 1, section 38, subdivision 7, is amended to read:

 

Subd. 7.  Judicial review.  Any party who is aggrieved by an order of the commissioner of children, youth, and families may appeal the order to the district court of the county responsible for furnishing assistance, or, in appeals under section 256.045, subdivision 3 3b, the county where the maltreatment occurred, by serving a written copy of a notice of appeal upon the commissioner and any adverse party of record within 30 days after the date the commissioner issued the order, the amended order, or order affirming the original order, and by filing the original notice and proof of service with the court administrator of the district court.  Service may be made personally or by mail; service by mail is complete upon mailing.  The court administrator shall not require a filing fee in appeals taken pursuant to this subdivision, except for appeals taken under section 256.045, subdivision 3 3b.  The commissioner may elect to become a party to the proceedings in the district court.  Except for appeals under section 256.045, subdivision 3 3b, any party may demand that the commissioner furnish all parties to the proceedings with a copy of the decision, and a transcript of any testimony, evidence, or other supporting papers from the hearing held before the children, youth, and families state human services judge, by serving a written demand upon the commissioner within 30 days after service of the notice of appeal.  Any party aggrieved by the failure of an adverse party to obey an order issued by the commissioner under subdivision 5 may compel performance according to the order in the manner prescribed in sections 586.01 to 586.12.

 

Sec. 22.  Laws 2024, chapter 80, article 1, section 38, subdivision 9, is amended to read:

 

Subd. 9.  Appeal.  Any party aggrieved by the order of the district court may appeal the order as in other civil cases.  Except for appeals under section 256.045, subdivision 3 3b, no costs or disbursements shall be taxed against any party nor shall any filing fee or bond be required of any party.

 

Sec. 23.  Laws 2024, chapter 80, article 1, section 96, is amended to read:

 

Sec. 96.  REVISOR INSTRUCTION.

 

The revisor of statutes must renumber sections or subdivisions in Column A as Column B.

 

 

Column A

Column B

 

 

256.01, subdivision 12

142A.03, subdivision 7

 

256.01, subdivision 12a

142A.03, subdivision 8

 

256.01, subdivision 15

142A.03, subdivision 10

 

256.01, subdivision 36

142A.03, subdivision 22

 

256.0112, subdivision 10

142A.07, subdivision 8

 

256.019, subdivision 2

142A.28, subdivision 2

 

256.4793

142A.45

 

256.4794

142A.451

 

256.82

142A.418

 

256.9831

142A.13, subdivision 14

 

256.9862, subdivision 1

142A.13, subdivision 10

 

256.9862, subdivision 2

142A.13, subdivision 11


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13806

256.9863

142A.13, subdivision 5

 

256.9865, subdivision 1

142A.13, subdivision 6

 

256.9865, subdivision 2

142A.13, subdivision 7

 

256.9865, subdivision 3

142A.13, subdivision 8

 

256.9865, subdivision 4

142A.13, subdivision 9

 

256.987, subdivision 2

142A.13, subdivision 2

 

256.987, subdivision 3

142A.13, subdivision 3

 

256.987, subdivision 4

142A.13, subdivision 4

 

256.9871

142A.13, subdivision 12

 

256.9872

142A.13, subdivision 13

 

256.997

142A.30

 

256.998

142A.29

 

256B.06, subdivision 6

142A.40

 

256E.20

142A.41

 

256E.21

142A.411

 

256E.22

142A.412

 

256E.24

142A.413

 

256E.25

142A.414

 

256E.26

142A.415

 

256E.27

142A.416

 

256E.28

142A.417

 

256E.38

142A.42

 

256N.001

142A.60

 

256N.01

142A.601

 

256N.02

142A.602

 

256N.20

142A.603

 

256N.21

142A.604

 

256N.22

142A.605

 

256N.23

142A.606

 

256N.24

142A.607

 

256N.25

142A.608

 

256N.26

142A.609

 

256N.261

142A.61

 

256N.27

142A.611

 

256N.28

142A.612

 

257.85

142A.65

 

257.175

142A.03, subdivision 32

 

257.33, subdivision 1

142A.03, subdivision 33

 

257.33, subdivision 2

142A.03, subdivision 34

 

260.014

142A.452

 

299A.72

142A.75

 

299A.73

142A.43

 

299A.95

142A.76

 

The revisor of statutes must correct any statutory cross-references consistent with this renumbering.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13807

Sec. 24.  Laws 2024, chapter 80, article 4, section 26, is amended to read:

 

Sec. 26.  REVISOR INSTRUCTION.

 

(a) The revisor of statutes shall renumber each section of Minnesota Statutes listed in column A with the number listed in column B.  The revisor shall also make necessary cross-reference changes consistent with the renumbering.  The revisor shall also make any technical, language, and other changes necessitated by the renumbering and cross‑reference changes in this act.

 

Column A

 

Column B

119A.50

142D.12

119A.52

142D.121

119A.53

142D.122

119A.535

142D.123

119A.5411

142D.124

119A.545

142D.125

119B.195

142D.30

119B.196

142D.24

119B.25

142D.20

119B.251

142D.31

119B.252

142D.32

119B.27

142D.21

119B.28

142D.22

119B.29

142D.23

121A.16

142D.09

121A.17

142D.091

121A.18

142D.092

121A.19

142D.093

122A.731

142D.33

124D.13

142D.10

124D.135

142D.11

124D.141

142D.16

124D.142

142D.13

124D.15

142D.05

124D.151

142D.08

124D.16

142D.06

124D.165

142D.25

124D.2211

142D.14

124D.23

142D.15

 

(b) The revisor of statutes shall codify Laws 2017, First Special Session chapter 5, article 8, section 9, as amended by article 4, section 25, as Minnesota Statutes, section 142D.07.

 

(c) The revisor of statutes shall change "commissioner of education" to "commissioner of children, youth, and families" and change "Department of Education" to "Department of Children, Youth, and Families" as necessary in Minnesota Statutes, chapters 119A and 120 to 129C, to reflect the changes in this act and Laws 2023, chapter 70, article 12.  The revisor shall also make any technical, language, and other changes resulting from the change of term to the statutory language, sentence structure, or both, if necessary to preserve the meaning of the text.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13808

Sec. 25.  Laws 2024, chapter 80, article 6, section 4, is amended to read:

 

Sec. 4.  REVISOR INSTRUCTION.

 

(a) The revisor of statutes must renumber each section of Minnesota Statutes in Column A with the number in Column B.

 

 

Column A

 

Column B

 

245.771

142F.05

 

256D.60

142F.10

 

256D.61

142F.11

 

256D.62

142F.101

 

256D.63

142F.102

 

256D.64

142F.13

 

256D.65

142F.12

 

256E.30

142F.30

 

256E.31

142F.301

 

256E.32

142F.302

 

256E.34

142F.14

 

256E.342

142F.15

 

256E.35

142F.20

 

(b) The revisor of statutes must correct any statutory cross-references consistent with this renumbering.

 

Sec. 26.  DIRECTION TO THE COMMISSIONER OF CHILDREN, YOUTH, AND FAMILIES; COORDINATION OF SERVICES FOR CHILDREN WITH DISABILITIES AND MENTAL HEALTH.

 

The commissioner of children, youth, and families shall designate a department leader to be responsible for coordination of services and outcomes around children's mental health and for children with or at risk for disabilities within and between the Department of Children, Youth, and Families; the Department of Human Services; and related agencies.

 

Sec. 27.  REVISOR INSTRUCTION.

 

The revisor of statutes must correct any statutory cross-references consistent with this act.

 

Sec. 28.  REPEALER.

 

(a) Minnesota Statutes 2022, section 245.975, subdivision 8, is repealed.

 

(b) Laws 2024, chapter 80, article 1, sections 38, subdivisions 3, 4, and 11; 39; and 43, subdivision 2; and Laws 2024, chapter 80, article 7, sections 3; and 9, are repealed.

 

ARTICLE 6

EARLY CHILDHOOD EDUCATION

 

Section 1.  Minnesota Statutes 2023 Supplement, section 124D.151, subdivision 6, is amended to read:

 

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


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13809

(b) In reviewing applications under subdivision 5, the commissioner must limit the total number of participants in the voluntary prekindergarten and school readiness plus programs under Laws 2017, First Special Session chapter 5, article 8, section 9, to not more than 7,160 participants for fiscal years 2023, year 2024, and 2025, and 12,360 participants for fiscal year 2026 2025 and later.

 

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

 

Sec. 2.  Minnesota Statutes 2023 Supplement, section 124D.165, subdivision 3, is amended to read:

 

Subd. 3.  Administration.  (a) The commissioner shall establish a schedule of tiered per-child scholarship amounts based on the results of the rate survey conducted under section 119B.02, subdivision 7, the cost of providing high-quality early care and learning to children in varying circumstances, a family's income, and geographic location.

 

(b) Notwithstanding paragraph (a), a program that has a four-star rating under section 124D.142 must receive, for each scholarship recipient who meets the criteria in subdivision 2a, paragraph (b) or (c), an amount not less than the cost to provide full-time care at the 75th percentile of the most recent market rate survey under section 119B.02, subdivision 7.

 

(c) A four-star rated program that has children eligible for a scholarship enrolled in or on a waiting list for a program beginning in July, August, or September may notify the commissioner, in the form and manner prescribed by the commissioner, each year of the program's desire to enhance program services or to serve more children than current funding provides.  The commissioner may designate a predetermined number of scholarship slots for that program and notify the program of that number.  For fiscal year 2018 and later, the statewide amount of funding directly designated by the commissioner must not exceed the funding directly designated for fiscal year 2017.  Beginning July 1, 2016, a school district or Head Start program qualifying under this paragraph may use its established registration process to enroll scholarship recipients and may verify a scholarship recipient's family income in the same manner as for other program participants.

 

(d) A scholarship is awarded for a 12-month period.  If the scholarship recipient has not been accepted and subsequently enrolled in a rated program within three months of the awarding of the scholarship, the scholarship cancels and the recipient must reapply in order to be eligible for another scholarship.  An extension may be requested if a program is unavailable for the child within the three-month timeline.  A child may not be awarded more than one scholarship in a 12-month period.

 

(e) A child who receives a scholarship who has not completed development screening under sections 121A.16 to 121A.19 must complete that screening within 90 days of first attending an eligible program or within 90 days after the child's third birthday if awarded a scholarship under the age of three.

 

(f) For fiscal year 2017 and later through calendar year 2025, a school district or Head Start program enrolling scholarship recipients under paragraph (c) may apply to the commissioner, in the form and manner prescribed by the commissioner, for direct payment of state aid.  Upon receipt of the application, the commissioner must pay each program directly for each approved scholarship recipient enrolled under paragraph (c) according to the metered payment system or another schedule established by the commissioner.

 

(g) Beginning January 1, 2026, the commissioner must:

 

(1) make scholarship payments to eligible programs in advance of or at the beginning of the delivery of services based on an approved scholarship recipient's enrollment; and


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13810

(2) implement a process for transferring scholarship awards between eligible programs, when initiated by a scholarship recipient.  Under the process, the commissioner:

 

(i) may adjust scholarship payment schedules for eligible programs to account for changes in a scholarship recipient's enrollment; and

 

(ii) must specify a period of time for which scholarship payments must continue to an eligible program for a scholarship recipient who transfers to a different eligible program.

 

(h) By January 1, 2026, the commissioner must have information technology systems in place that prioritize efficiency and usability for families and early childhood programs and that support the following:

 

(1) the ability for a family to apply for a scholarship through an online system that allows the family to upload documents that demonstrate scholarship eligibility;

 

(2) the administration of scholarships, including but not limited to verification of family and child eligibility, identification of programs eligible to accept scholarships, management of scholarship awards and payments, and communication with families and eligible programs; and

 

(3) making scholarship payments to eligible programs in advance of or at the beginning of the delivery of services for an approved scholarship recipient.

 

(i) In creating the information technology systems and functions under paragraph (h), the commissioner must consider the requirements for and the potential transition to the great start scholarships program under section 119B.99.

 

Sec. 3.  Minnesota Statutes 2023 Supplement, section 124D.165, subdivision 6, is amended to read:

 

Subd. 6.  Early learning scholarship account.  (a) An account is established in the special revenue fund known as the "early learning scholarship account."

 

(b) Funds appropriated for early learning scholarships under this section must be transferred to the early learning scholarship account in the special revenue fund.

 

(c) Money in the account is annually appropriated to the commissioner for early learning scholarships under this section.  Any returned funds are available to be regranted.

 

(d) Up to $2,133,000 annually is appropriated to the commissioner for costs associated with administering and monitoring early learning scholarships.

 

(e) The commissioner may use funds under paragraph (c) for the purpose of family outreach and distribution of scholarships.

 

(f) The commissioner may use up to $5,000,000 in funds under paragraph (c) to create and maintain the information technology systems, including but not limited to an online application, a case management system, attendance tracking, and a centralized payment system under subdivision 3, paragraph (h).  Beginning July 1, 2025, the commissioner may use up to $750,000 annually in funds under paragraph (c) to maintain the information technology systems created under this paragraph.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13811

(g) By December 31 of each year, the commissioner must provide a written report to the legislative committees with jurisdiction over early care and education programs on the use of funds under paragraph (c) for purposes other than providing scholarships to eligible children.

 

Sec. 4.  Laws 2023, chapter 54, section 20, subdivision 6, is amended to read:

 

Subd. 6.  Head Start program.  (a) For Head Start programs under Minnesota Statutes, section 119A.52:

 

 

 

$35,100,000

. . . . . 

2024

 

 

$35,100,000

. . . . . 

2025

 

(b) Up to two percent of the appropriation in fiscal year 2025 is available for administration.

 

(b) (c) Any balance in the first year does not cancel but is available in the second year.

 

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

 

Sec. 5.  Laws 2023, chapter 54, section 20, subdivision 24, is amended to read:

 

Subd. 24.  Early childhood curriculum grants.  (a) For competitive grants to Minnesota postsecondary institutions to improve the curricula of the recipient institution's early childhood education programs by incorporating or conforming to the Minnesota knowledge and competency frameworks for early childhood professionals:

 

 

 

$250,000

. . . . . 

2024

 

 

$250,000

. . . . . 

2025

 

(b) By December 1, 2024, and again by December 1, 2025, the commissioner must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over early childhood through grade 12 education and higher education finance and policy reporting on grants awarded under this subdivision.  The report must include the following information for the previous fiscal year:

 

(1) the number of grant applications received;

 

(2) the criteria applied by the commissioner for evaluating applications;

 

(3) the number of grants awarded, grant recipients, and amounts awarded;

 

(4) early childhood education curricular reforms proposed by each recipient institution;

 

(5) grant outcomes for each recipient institution; and

 

(6) other information identified by the commissioner as outcome indicators.

 

(c) The commissioner may use no more than three percent of the appropriation under this subdivision to administer the grant program.

 

(d) This is a onetime appropriation.

 

(e) Any balance in the first year does not cancel but is available in the second year.

 

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


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13812

ARTICLE 7

APPROPRIATIONS

 

      Section 1.  HEALTH AND HUMAN SERVICES APPROPRIATIONS. 

 

The sums shown in the columns marked "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2023, chapter 70, article 20, to the agencies and for the purposes specified in this article.  The appropriations are from the general fund or other named fund and are available for the fiscal years indicated for each purpose.  The figures "2024" and "2025" used in this article mean that the addition to or subtraction from the appropriation listed under them is available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.  Base adjustments mean the addition to or subtraction from the base level adjustment set in Laws 2023, chapter 70, article 20.  Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2024, are effective the day following final enactment unless a different effective date is explicit.

 

 

 

 

APPROPRIATIONS

 

 

 

Available for the Year

 

 

 

Ending June 30

 

 

 

2024

2025

 

      Sec. 2.  COMMISSIONER OF HUMAN SERVICES

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$2,193,000

 

$29,884,000

 

Appropriations by Fund

 

 

2024

 

2025

General

 2,193,000

29,884,000

 

The amounts that may be spent for each purpose are specified in the following subdivisions.

 

      Subd. 2.  Central Office; Operations

 

 

 

 

 

Appropriations by Fund

 

General

(405,000)

12,872,000

TANF

(990,000)

(1,094,000)

 

(a) Child welfare technology system.  $8,657,000 in fiscal year 2025 is for information technology improvements to the statewide child welfare information system.  This is a onetime appropriation and is available until June 30, 2026.

 

(b) Base level adjustment.  The general fund base is increased by $4,411,000 in fiscal year 2026 and by $4,411,000 in fiscal year 2027.  The TANF base is decreased by $1,094,000 in fiscal year 2026 and by $1,094,000 in fiscal year 2027.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13813

               Subd. 3.  Central Office; Children and Families

 

 

 

 

 

Appropriations by Fund

 

General

2,598,000

6,467,000

TANF

990,000

1,094,000

 

(a) Child maltreatment reporting review.  $200,000 in fiscal year 2025 is to conduct a review of child maltreatment reporting processes and systems in various states, evaluate the costs and benefits of each reviewed state's system, and submit a report to the legislature with recommendations.  This is a onetime appropriation.

 

(b) Child welfare fiscal analysis.  $250,000 in fiscal year 2025 is for a contract with a third-party consultant to conduct an independent fiscal analysis of the child welfare system in Minnesota.  This is a onetime appropriation and is available until June 30, 2026.

 

(c) Pregnant and parenting homeless youth study.  $150,000 in fiscal year 2025 is for a contract with the Wilder Foundation to conduct a study of pregnant and parenting homeless youth.  This is a onetime appropriation.

 

(d) Needs analysis for LGBTQIA+ youth experiencing homelessness.  $150,000 in fiscal year 2025 is for a contract to conduct a needs analysis and a site analysis for emergency shelter serving LGBTQIA+ youth experiencing homelessness.  This is a onetime appropriation and is available until June 30, 2026.

 

(e) Base level adjustment.  The general fund base is increased by $5,208,000 in fiscal year 2026 and by $5,208,000 in fiscal year 2027.  The TANF base is increased by $1,094,000 in fiscal year 2026 and by $1,094,000 in fiscal year 2027.

 

      Subd. 4.  Grant Programs; Child Care Development Grants

 

-0-

 

 

360,000

 

Child development associate credential coursework.  $360,000 in fiscal year 2025 is for distribution to child care resource and referral programs to coordinate professional development opportunities for child care providers under Minnesota Statutes, section 119B.19, subdivision 7, clause (5), for training related to obtaining a child development associate credential.  This is a onetime appropriation and is available through June 30, 2026.

 

      Subd. 5.  Grant Programs; Children's Services Grants

 

-0-

 

760,000

 

Preventing nonrelative foster care placement grants.  $760,000 in fiscal year 2025 is for preventing nonrelative foster care placement grants.  This is a onetime appropriation and is available until June 30, 2028.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13814

         Subd. 6.  Grant Programs; Child and Community Service Grants

 

-0-

 

 

(2,704,000)

 

      Subd. 7.  Grant Programs; Children and Economic Support Grants

 

-0-

 

 

9,111,000

 

(a) American Indian food sovereignty funding program.  $1,000,000 in fiscal year 2025 is for the American Indian food sovereignty funding program under Minnesota Statutes, section 256E.342.  This is a onetime appropriation and is available until June 30, 2026.

 

(b) Minnesota food bank funding.  $2,000,000 in fiscal year 2025 is for Minnesota's regional food banks that the commissioner contracts with for the purposes of the emergency food assistance program (TEFAP).  The commissioner shall distribute funding under this paragraph in accordance with the federal TEFAP formula and guidelines of the United States Department of Agriculture.  Funding must be used by all regional food banks to purchase food that will be distributed free of charge to TEFAP partner agencies.  Funding must also cover the handling and delivery fees typically paid by food shelves to food banks to ensure that costs associated with funding under this paragraph are not incurred at the local level.  This is a onetime appropriation.

 

(c) Minnesota food shelf program.  $2,000,000 in fiscal year 2025 is for the Minnesota food shelf program under Minnesota Statutes, section 256E.34.  This is a onetime appropriation.

 

(d) Emergency services program.  $4,000,000 in fiscal year 2025 is for emergency services grants under Minnesota Statutes, section 256E.36.  The commissioner must distribute grants under this paragraph to entities that received an emergency services grant award for fiscal years 2024 and 2025 and have emerging, critical, and immediate homelessness response needs that have arisen since receiving the award, including:  (1) the need to support overnight emergency shelter capacity or daytime service capacity that has a demonstrated and significant increase in the number of persons served in fiscal year 2024 compared to fiscal year 2023; and (2) the need to maintain existing overnight emergency shelter bed capacity or daytime service capacity that has a demonstrated and significant risk of closure before April 30, 2025.  This is a onetime appropriation and is available until June 30, 2027.

 

(e) Base level adjustment.  The general fund base is reduced by $2,593,000 in fiscal year 2026 and by $2,593,000 in fiscal year 2027. 


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13815

               Subd. 8.  Fraud Prevention Grants

 

-0-

 

3,018,000

 

Base level adjustment.  The general fund base is increased by $3,018,000 in fiscal year 2026 and by $3,018,000 in fiscal year 2027.

 

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

 

      Sec. 3.  DEPARTMENT OF EDUCATION

 

$1,822,000

 

$1,715,000

 

(a) Summer EBT.  $1,822,000 in fiscal year 2024 and $1,542,000 in fiscal year 2025 are for administration of the summer electronic benefits transfer program under Public Law 117-328.  The base for this appropriation is $572,000 in fiscal year 2026 and $572,000 in fiscal year 2027.

 

(b) Operating adjustment due to DCYF transition.  $173,000 in fiscal year 2025 is for the agency to maintain current levels of service after the transition of staff and resources to the Department of Children, Youth, and Families.  The base for this appropriation is $345,000 in fiscal year 2026 and $345,000 in fiscal year 2027.

 

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

 

      Sec. 4.  COMMISSIONER OF CHILDREN, YOUTH, AND FAMILIES

 

$0

 

 

$3,279,000

 

Base level adjustment.  The general fund base is increased by $7,183,000 in fiscal year 2026 and $6,833,000 in fiscal year 2027.

 

      Sec. 5.  OFFICE OF THE FAMILY CHILD CARE OMBUDSPERSON

 

$0

 

 

$350,000

 

This is a onetime appropriation.

 

      Sec. 6.  SUPREME COURT

 

$0

 

$800,000

 

Supreme Court Council on Child Protection.  $800,000 in fiscal year 2025 is for the establishment and administration of the Supreme Court Council on Child Protection.  This is a onetime appropriation and is available until June 30, 2026.

 

Sec. 7.  Laws 2023, chapter 70, article 20, section 2, subdivision 22, is amended to read:

 

      Subd. 22.  Grant Programs; Children's Services Grants

 

 

 

 

Appropriations by Fund

 

General

86,212,000

85,063,000

Federal TANF

140,000

140,000


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13816

(a) Title IV-E Adoption Assistance.  The commissioner shall allocate funds from the state's savings from the Fostering Connections to Success and Increasing Adoptions Act's expanded eligibility for Title IV-E adoption assistance as required in Minnesota Statutes, section 256N.261, and as allowable under federal law.  Additional savings to the state as a result of the Fostering Connections to Success and Increasing Adoptions Act's expanded eligibility for Title IV-E adoption assistance is for postadoption, foster care, adoption, and kinship services, including a parent-to-parent support network and as allowable under federal law.

 

(b) Mille Lacs Band of Ojibwe American Indian child welfare initiative.  $3,337,000 in fiscal year 2024 and $5,294,000 in fiscal year 2025 are from the general fund for the Mille Lacs Band of Ojibwe to join the American Indian child welfare initiative.  The base for this appropriation is $7,893,000 in fiscal year 2026 and $7,893,000 in fiscal year 2027.

 

(c) Leech Lake Band of Ojibwe American Indian child welfare initiative.  $1,848,000 in fiscal year 2024 and $1,848,000 in fiscal year 2025 are from the general fund for the Leech Lake Band of Ojibwe to participate in the American Indian child welfare initiative.

 

(d) Red Lake Band of Chippewa American Indian child welfare initiative.  $3,000,000 in fiscal year 2024 and $3,000,000 in fiscal year 2025 are from the general fund for the Red Lake Band of Chippewa to participate in the American Indian child welfare initiative.

 

(e) White Earth Nation American Indian child welfare initiative.  $3,776,000 in fiscal year 2024 and $3,776,000 in fiscal year 2025 are from the general fund for the White Earth Nation to participate in the American Indian child welfare initiative.

 

(f) Indian Child welfare grants.  $4,405,000 in fiscal year 2024 and $4,405,000 in fiscal year 2025 are from the general fund for Indian child welfare grants under Minnesota Statutes, section 260.785.  The base for this appropriation is $4,640,000 in fiscal year 2026 and $4,640,000 in fiscal year 2027.

 

(g) Child welfare staff allocation for Tribes.  $799,000 in fiscal year 2024 and $799,000 in fiscal year 2025 are from the general fund for grants to Tribes for child welfare staffing under Minnesota Statutes, section 260.786.

 

(h) Grants for kinship navigator services.  $764,000 in fiscal year 2024 and $764,000 in fiscal year 2025 are from the general fund for grants for kinship navigator services and grants to Tribal Nations for kinship navigator services under Minnesota Statutes, section 256.4794.  The base for this appropriation is $506,000 in fiscal year 2026 and $507,000 in fiscal year 2027.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13817

(i) Family first prevention and early intervention assessment response grants.  $4,000,000 in fiscal year 2024 and $6,112,000 in fiscal year 2025 are from the general fund for family assessment response grants under Minnesota Statutes, section 260.014.  The base for this appropriation is $6,000,000 in fiscal year 2026 and $6,000,000 in fiscal year 2027.

 

(j) Grants for evidence-based prevention and early intervention services.  $4,329,000 in fiscal year 2024 and $4,100,000 in fiscal year 2025 are from the general fund for grants to support evidence-based prevention and early intervention services under Minnesota Statutes, section 256.4793. 

 

(k) Grant to administer pool of qualified individuals for assessments.  $250,000 in fiscal year 2024 and $250,000 in fiscal year 2025 are from the general fund for grants to establish and manage a pool of state-funded qualified individuals to conduct assessments for out-of-home placement of a child in a qualified residential treatment program.

 

(l) Quality parenting initiative grant program.  $100,000 in fiscal year 2024 and $100,000 in fiscal year 2025 are from the general fund for a grant to Quality Parenting Initiative Minnesota under Minnesota Statutes, section 245.0962.

 

(m) STAY in the community grants.  $1,579,000 in fiscal year 2024 and $2,247,000 in fiscal year 2025 are from the general fund for the STAY in the community program under Minnesota Statutes, section 260C.452.  This is a onetime appropriation and is available until June 30, 2027.

 

(n) Grants for community resource centers.  $5,657,000 in fiscal year 2024 is from the general fund for grants to establish a network of community resource centers.  This is a onetime appropriation and is available until June 30, 2027.

 

(o) Family assets for independence in Minnesota.  $1,405,000 in fiscal year 2024 and $1,391,000 in fiscal year 2025 are from the general fund for the family assets for independence in Minnesota program, under Minnesota Statutes, section 256E.35.  This is a onetime appropriation and is available until June 30, 2027.

 

(p) (o) Base level adjustment.  The general fund base is $85,280,000 in fiscal year 2026 and $85,281,000 in fiscal year 2027.

 

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


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13818

Sec. 8.  Laws 2023, chapter 70, article 20, section 2, subdivision 24, is amended to read:

 

      Subd. 24.  Grant Programs; Children and Economic Support Grants

 

212,877,000

 

 

78,333,000

 

(a) Fraud prevention initiative start-up grants.  $400,000 in fiscal year 2024 is for start-up grants to the Red Lake Nation, White Earth Nation, and Mille Lacs Band of Ojibwe to develop a fraud prevention program.  This is a onetime appropriation and is available until June 30, 2025.

 

(b) American Indian food sovereignty funding program.  $3,000,000 in fiscal year 2024 and $3,000,000 in fiscal year 2025 are for Minnesota Statutes, section 256E.342.  This appropriation is available until June 30, 2025.  The base for this appropriation is $2,000,000 in fiscal year 2026 and $2,000,000 in fiscal year 2027.

 

(c) Hennepin County grants to provide services to people experiencing homelessness.  $11,432,000 in fiscal year 2024 is for grants to maintain capacity for shelters and services provided to persons experiencing homelessness in Hennepin County.  Of this amount:

 

(1) $4,500,000 is for a grant to Avivo Village;

 

(2) $2,000,000 is for a grant to the American Indian Community Development Corporation Homeward Bound shelter;

 

(3) $1,650,000 is for a grant to the Salvation Army Harbor Lights shelter;

 

(4) $500,000 is for a grant to Agate Housing and Services;

 

(5) $1,400,000 is for a grant to Catholic Charities of St. Paul and Minneapolis;

 

(6) $450,000 is for a grant to Simpson Housing; and

 

(7) $932,000 is for a grant to Hennepin County.

 

Nothing shall preclude an eligible organization receiving funding under this paragraph from applying for and receiving funding under Minnesota Statutes, section 256E.33, 256E.36, 256K.45, or 256K.47, nor does receiving funding under this paragraph count against any eligible organization in the competitive processes related to those grant programs under Minnesota Statutes, section 256E.33, 256E.36, 256K.45, or 256K.47.

 

(d) Diaper distribution grant program.  $545,000 in fiscal year 2024 and $553,000 in fiscal year 2025 are for a grant to the Diaper Bank of Minnesota under Minnesota Statutes, section 256E.38.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13819

(e) Prepared meals food relief.  $1,654,000 in fiscal year 2024 and $1,638,000 in fiscal year 2025 are for prepared meals food relief grants.  This is a onetime appropriation.

 

(f) Emergency shelter facilities.  $98,456,000 in fiscal year 2024 is for grants to eligible applicants for emergency shelter facilities.  This is a onetime appropriation and is available until June 30, 2028.

 

(g) Homeless youth cash stipend pilot project.  $5,302,000 in fiscal year 2024 is for a grant to Youthprise for the homeless youth cash stipend pilot project.  The grant must be used to provide cash stipends to homeless youth, provide cash incentives for stipend recipients to participate in periodic surveys, provide youth‑designed optional services, and complete a legislative report.  This is a onetime appropriation and is available until June 30, 2028 2027.

 

(h) Heading Home Ramsey County continuum of care grants.  $11,432,000 in fiscal year 2024 is for grants to maintain capacity for shelters and services provided to people experiencing homelessness in Ramsey County.  Of this amount:

 

(1) $2,286,000 is for a grant to Catholic Charities of St. Paul and Minneapolis;

 

(2) $1,498,000 is for a grant to More Doors;

 

(3) $1,734,000 is for a grant to Interfaith Action Project Home;

 

(4) $2,248,000 is for a grant to Ramsey County;

 

(5) $689,000 is for a grant to Radias Health;

 

(6) $493,000 is for a grant to The Listening House;

 

(7) $512,000 is for a grant to Face to Face; and

 

(8) $1,972,000 is for a grant to the city of St. Paul.

 

Nothing shall preclude an eligible organization receiving funding under this paragraph from applying for and receiving funding under Minnesota Statutes, section 256E.33, 256E.36, 256K.45, or 256K.47, nor does receiving funding under this paragraph count against any eligible organization in the competitive processes related to those grant programs under Minnesota Statutes, section 256E.33, 256E.36, 256K.45, or 256K.47.

 

(i) Capital for emergency food distribution facilities.  $7,000,000 in fiscal year 2024 is for improving and expanding the infrastructure of food shelf facilities.  Grant money must be made


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13820

available to nonprofit organizations, federally recognized Tribes, and local units of government.  This is a onetime appropriation and is available until June 30, 2027.

 

(j) Emergency services program grants.  $15,250,000 in fiscal year 2024 and $14,750,000 in fiscal year 2025 are for emergency services grants under Minnesota Statutes, section 256E.36.  Any unexpended amount in the first year does not cancel and is available in the second year.  The base for this appropriation is $25,000,000 in fiscal year 2026 and $30,000,000 in fiscal year 2027.

 

(k) Homeless Youth Act grants.  $15,136,000 in fiscal year 2024 and $15,136,000 in fiscal year 2025 are for grants under Minnesota Statutes, section 256K.45, subdivision 1.  Any unexpended amount in the first year does not cancel and is available in the second year.

 

(l) Transitional housing programs.  $3,000,000 in fiscal year 2024 and $3,000,000 in fiscal year 2025 are for transitional housing programs under Minnesota Statutes, section 256E.33.  Any unexpended amount in the first year does not cancel and is available in the second year.

 

(m) Safe harbor shelter and housing grants.  $2,125,000 in fiscal year 2024 and $2,125,000 in fiscal year 2025 are for grants under Minnesota Statutes, section 256K.47.  Any unexpended amount in the first year does not cancel and is available in the second year.  The base for this appropriation is $1,250,000 in fiscal year 2026 and $1,250,000 in fiscal year 2027.

 

(n) Supplemental nutrition assistance program (SNAP) outreach.  $1,000,000 in fiscal year 2024 and $1,000,000 in fiscal year 2025 are for the SNAP outreach program under Minnesota Statutes, section 256D.65.  The base for this appropriation is $500,000 in fiscal year 2026 and $500,000 in fiscal year 2027.

 

(o) Base level adjustment.  The general fund base is $83,179,000 in fiscal year 2026 and $88,179,000 in fiscal year 2027.

 

(p) Minnesota food assistance program.  Unexpended funds for the Minnesota food assistance program under Minnesota Statutes, section 256D.64, for fiscal year 2024 are available until June 30, 2025.

 

(q) Family assets for independence in Minnesota.  $1,405,000 in fiscal year 2024 and $1,391,000 in fiscal year 2025 are from the general fund for the family assets for independence in Minnesota program under Minnesota Statutes, section 256E.35.  This is a onetime appropriation and is available under June 30, 2027.

 

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


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13821

Sec. 9.  Laws 2023, chapter 70, article 20, section 23, is amended to read:

 

Sec. 23.  TRANSFERS.

 

Subdivision 1.  Grants.  The commissioner of human services and commissioner of children, youth, and families, with the approval of the commissioner of management and budget, may transfer unencumbered appropriation balances for the biennium ending June 30, 2025, within fiscal years among MFIP; general assistance; medical assistance; MinnesotaCare; MFIP child care assistance under Minnesota Statutes, section 119B.05; Minnesota supplemental aid program; housing support program; the entitlement portion of Northstar Care for Children under Minnesota Statutes, chapter 256N; and the entitlement portion of the behavioral health fund between fiscal years of the biennium.  The commissioner shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services quarterly about transfers made under this subdivision.

 

Subd. 2.  Administration.  Positions, salary money, and nonsalary administrative money may be transferred within and between the Department of Human Services and Department of Children, Youth, and Families as the commissioners consider necessary, with the advance approval of the commissioner of management and budget.  The commissioners shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services finance quarterly about transfers made under this section.

 

Sec. 10.  DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES FEDERAL REIMBURSEMENT. 

 

Minnesota Management and Budget shall reflect Department of Children, Youth, and Families federal reimbursement costs as expenditure reductions in the general fund budgeted fund balance as they would be reported in conformity with generally accepted accounting principles."

 

Delete the title and insert:

 

"A bill for an act relating to children; modifying provisions related to child protection, economic supports, housing and homelessness, child care licensing, the Department of Children, Youth, and Families, and early childhood education; requiring reports; appropriating money; amending Minnesota Statutes 2022, sections 245.975, subdivisions 2, 4, 9; 256.045, subdivisions 3b, as amended, 5, as amended, 7, as amended; 256.0451, subdivisions 1, as amended, 22, 24; 256.046, subdivision 2, as amended; 256E.35, subdivision 5; 256N.26, subdivisions 12, 13; 260C.331, by adding a subdivision; Minnesota Statutes 2023 Supplement, sections 124D.151, subdivision 6; 124D.165, subdivisions 3, 6; 256.01, subdivision 12b; 256.043, subdivisions 3, 3a; 256.045, subdivision 3, as amended; 256E.35, subdivision 2; 256E.38, subdivision 4; 518A.42, subdivision 3; Laws 2023, chapter 54, section 20, subdivisions 6, 24; Laws 2023, chapter 70, article 12, section 30, subdivisions 2, 3; article 14, section 42, by adding a subdivision; article 20, sections 2, subdivisions 22, 24; 23; Laws 2024, chapter 80, article 1, sections 38, subdivisions 1, 2, 5, 6, 7, 9; 96; article 4, section 26; article 6, section 4; proposing coding for new law in Minnesota Statutes, chapters 142A; 256D; 260E; proposing coding for new law as Minnesota Statutes, chapter 142B; repealing Minnesota Statutes 2022, sections 245.975, subdivision 8; 245A.065; 256.01, subdivisions 12, 12a; Laws 2024, chapter 80, article 1, sections 38, subdivisions 3, 4, 11; 39; 43, subdivision 2; article 7, sections 3; 9; Minnesota Rules, part 9560.0232, subpart 5."

 

 

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 - 104th Day - Wednesday, April 24, 2024 - Top of Page 13822

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

 

H. F. No. 3431, A bill for an act relating to state government; making technical changes under the governance of the Department of Administration; amending Minnesota Statutes 2022, sections 16B.055, subdivision 1; 16B.48, subdivision 4; 16C.137, subdivision 2; Minnesota Statutes 2023 Supplement, section 307.08, subdivision 3a.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

 

Section 1.  Laws 2023, chapter 62, article 1, section 11, subdivision 2, is amended to read:

 

      Subd. 2.  Government and Citizen Services

 

39,928,000

 

19,943,000

 

The base for this appropriation is $17,268,000 in fiscal year 2026 and $17,280,000 in fiscal year 2027.

 

Council on Developmental Disabilities.  $222,000 each year is for the Council on Developmental Disabilities.

 

State Agency Accommodation Reimbursement.  $200,000 each year may be transferred to the accommodation account established in Minnesota Statutes, section 16B.4805.

 

Disparity Study.  $500,000 the first year and $1,000,000 the second year are to conduct a study on disparities in state procurement.  This is a onetime appropriation. 

 

Grants Administration Oversight.  $2,411,000 the first year and $1,782,000 the second year are for grants administration oversight.  The base for this appropriation in fiscal year 2026 and each year thereafter is $1,581,000.

 

Of this amount, $735,000 the first year and $201,000 the second year are for a study to develop a road map on the need for an enterprise grants management system and to implement the study's recommendation.  This is a onetime appropriation. 

 

Risk Management Fund Property Self-Insurance.  $12,500,000 the first year is for transfer to the risk management fund under Minnesota Statutes, section 16B.85.  This is a onetime appropriation. 

 

Office of Enterprise Translations.  $1,306,000 the first year and $1,159,000 the second year are to establish the Office of Enterprise Translations.  $250,000 each year may be transferred to the language access service account established in Minnesota Statutes, section 16B.373.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13823

Capitol Mall Design Framework Implementation.  $5,000,000 the first year is to implement the updated Capitol Mall Design Framework, prioritizing the framework plans identified in article 2, section 124.  This appropriation is available until December 31, 2024.

 

Parking Fund.  $3,255,000 the first year and $1,085,000 the second year are for a transfer to the state parking account to maintain the operations of the parking and transit program on the Capitol complex.  These are onetime transfers.

 

Procurement; Environmental Analysis and Task Force.  $522,000 the first year and $367,000 the second year are to implement the provisions of Minnesota Statutes, section 16B.312.

 

Center for Rural Policy and Development.  $100,000 the first year is for a grant to the Center for Rural Policy and Development.

 

EFFECTIVE DATE.  This section is effective retroactively from July 1, 2023.

 

Sec. 2.  Laws 2023, chapter 62, article 1, section 11, subdivision 4, is amended to read:

 

      Subd. 4.  Fiscal Agent

 

31,121,000

 

23,833,000

 

The base for this appropriation is $15,833,000 in fiscal year 2026 and each fiscal year thereafter.

 

The appropriations under this section are to the commissioner of administration for the purposes specified.

 

In-Lieu of Rent.  $11,129,000 each year is for space costs of the legislature and veterans organizations, ceremonial space, and statutorily free space.

 

Public Television.  (a) $1,550,000 each year is for matching grants for public television.

 

(b) $250,000 each year is for public television equipment grants under Minnesota Statutes, section 129D.13.

 

(c) $500,000 each year is for block grants to public television under Minnesota Statutes, section 129D.13.  Of this amount, up to three percent is for the commissioner of administration to administer the grants.  This is a onetime appropriation.

 

(d) The commissioner of administration must consider the recommendations of the Minnesota Public Television Association before allocating the amounts appropriated in paragraphs (a) and (b) for equipment or matching grants.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13824

Public Radio.  (a) $2,392,000 the first year and $1,242,000 the second year are for community service grants to public educational radio stations.  This appropriation may be used to disseminate emergency information in foreign languages.  Any unencumbered balance does not cancel at the end of the first year and is available for the second year.  The association of Minnesota Public Educational Radio Stations may use up to four percent of this appropriation to help the organization and its member stations to better serve Minnesota's communities.

 

(b) $142,000 each year is for equipment grants to public educational radio stations.  This appropriation may be used for the repair, rental, and purchase of equipment including equipment under $500.

 

(c) $850,000 the first year is for grants to the Association of Minnesota Public Educational Radio Stations for the purchase of emergency equipment and increased cybersecurity and broadcast technology.  The Association of Minnesota Public Educational Radio Stations may use up to four percent of this appropriation for costs that are directly related to and necessary for the administration of these grants to help the organization and its member stations to enhance cybersecurity, broadcast technology, and emergency services.

 

(d) $1,288,000 the first year is for a grant to the Association of Minnesota Public Educational Radio Stations to provide a diverse community radio news service.  Of this amount, up to $38,000 is for the commissioner of administration to administer this grant.  This is a onetime appropriation and is available until June 30, 2027.

 

(e) $1,020,000 each year is for equipment grants to Minnesota Public Radio, Inc., including upgrades to Minnesota's Emergency Alert and AMBER Alert Systems.

 

(f) The appropriations in paragraphs (a) to (e) may not be used for indirect costs claimed by an institution or governing body.

 

(g) The commissioner of administration must consider the recommendations of the Association of Minnesota Public Educational Radio Stations before awarding grants under Minnesota Statutes, section 129D.14, using the appropriations in paragraphs (a) to (c).  No grantee is eligible for a grant unless they are a member of the Association of Minnesota Public Educational Radio Stations on or before July 1, 2023.

 

(h) Any unencumbered balance remaining the first year for grants to public television or public radio stations does not cancel and is available for the second year.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13825

Real Estate and Construction Services.  $12,000,000 the first year and $8,000,000 the second year are to facilitate space consolidation and the transition to a hybrid work environment, including but not limited to the design, remodel, equipping, and furnishing of the space.  This appropriation may also be used for relocation and rent loss.  This is a onetime appropriation and is available until June 30, 2027. 

 

EFFECTIVE DATE.  This section is effective retroactively from July 1, 2023.

 

Sec. 3.  CAPITOL AREA COMMUNITY VITALITY ACCOUNT.

 

(a) Consistent with the program and oversight plan approved by the Capitol Area Architectural and Planning Board, the commissioner of administration must expend money from the Capitol Area community vitality account as follows:

 

(1) $4,800,000 must be for a grant to the city of St. Paul, Department of Planning and Economic Development.  The city must use this amount to make subgrants through the community vitality grant program, and to support the Community Voices Initiative.  The city may retain amounts for grants administration and oversight, up to the maximum permitted to be retained by a state agency under Minnesota Statutes, section 16B.98, subdivision 14; and

 

(2) $200,000 must be transferred to the Capitol Area Architectural and Planning Board for Community Navigators, and for startup and other costs to facilitate implementation of the community vitality grant program and the Community Voices Initiative.

 

(b) Minnesota Statutes, sections 16B.97 to 16B.991, do not apply to a grant required by this section.

 

(c) This section constitutes approval by law for the expenditure of funds from the Capitol Area community vitality account, as required by Laws 2023, chapter 53, article 17, section 2.

 

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

 

Sec. 4.  APPROPRIATION; COMMISSIONER OF ADMINISTRATION; IN LIEU OF RENT.

 

$43,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of administration for space costs incurred in fiscal years 2025, 2026, and 2027 by tenants that provide public-facing professional services on the Capitol complex.  The commissioner of administration must designate one publicly accessible space on the complex for which this appropriation may be used.  This is a onetime appropriation and is available until June 30, 2027.

 

Sec. 5.  HEALTHY AND SUSTAINABLE FOOD OPTIONS ACCOUNT; TRANSFER.

 

(a) A healthy and sustainable food options account is established as an account in the special revenue fund.  Money in the account is appropriated to the commissioner of administration for the purpose of enhancing and sustaining access to healthy food alternatives on the State Capitol complex, in locations designated by the commissioner.

 

(b) $500,000 in fiscal year 2025 is transferred from the general fund to the healthy and sustainable food options account.  This is a onetime transfer.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13826

Sec. 6.  GREEN SPACE; CAPITOL PARKING LOT C.

 

$445,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of administration to design, construct, and equip additional green space, along with work needed to facilitate circulation and to add accessible parking stalls, on the site of Parking Lot C on the State Capitol complex.  In addition to this amount, the commissioner may utilize for this purpose any funds remaining from the appropriation made by Laws 2023, chapter 71, section 6, subdivision 3, after the project authorized by that subdivision is complete.

 

Sec. 7.  APPROPRIATION; HUBERT H.  HUMPHREY STATUE.

 

$300,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of administration to replace the statue of Henry Mower Rice in the Statuary Hall in the United States Capitol with a statue of Hubert H.  Humphrey.  This appropriation includes money for the removal and transportation of the Henry Mower Rice statue to the Minnesota State Historical Society, to contract with the Koh-Varilla Guild, Inc., to replicate, with any modifications needed to meet requirements for placement, the Hubert H.  Humphrey statue that currently stands on the mall of the Minnesota State Capitol, and the erection of the new Hubert H.  Humphrey statue in the Statuary Hall in the United States Capitol, including the necessary base.  This is a onetime appropriation and is available until December 31, 2026.

 

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

 

Sec. 8.  CANCELLATION; APPROPRIATION; CAPITOL MALL DESIGN FRAMEWORK.

 

Subdivision 1.  Cancellation.  $4,950,000 of the general fund appropriation in Laws 2023, chapter 62, article 1, section 11, subdivision 2, for implementation of the Capitol Mall Design Framework is canceled to the general fund by June 30, 2024.

 

Subd. 2.  Appropriation.  (a) $6,162,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of administration to design, construct, install, and equip the elements outlined in the authorizing legislation for the Capitol Mall Design Framework, as follows:

 

(1) landscaping, trees, benches, lighting, security, and irrigation on the upper mall, the northern border of the lower mall with Martin Luther King, Jr.  Boulevard, and in the medians of John Ireland Boulevard between the intersection of Rice Street and Martin Luther King, Jr.  Boulevard, and Cedar Street between the intersection of 12th Street and Martin Luther King Jr., Boulevard; and

 

(2) visual markers and welcome information for the Capitol campus, appropriately spaced for wayfinding of the major streets on the Capitol campus, anchoring a pathway to the State Capitol Building and Capitol Mall that features interpretive markers honoring the importance and stature of the Capitol campus as both a historic site and as a modern, active public gathering place for all visitors.

 

(b) Upon completion of the work identified in paragraph (a), clauses (1) and (2), any remaining balance of funds may be utilized to paint the Administration Building parking ramp and install new grates.

 

(c) This is a onetime appropriation and is available until December 31, 2029.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13827

ARTICLE 2

STATE GOVERNMENT POLICY

 

Section 1.  Minnesota Statutes 2023 Supplement, section 10.65, subdivision 2, is amended to read:

 

Subd. 2.  Definitions.  As used in this section, the following terms have the meanings given:

 

(1) "agency" means the Department of Administration; Department of Agriculture; Department of Children, Youth, and Families; Department of Commerce; Department of Corrections; Department of Education; Department of Employment and Economic Development; Department of Health; Office of Higher Education; Housing Finance Agency; Department of Human Rights; Department of Human Services; Department of Information Technology Services; Department of Iron Range Resources and Rehabilitation; Department of Labor and Industry; Minnesota Management and Budget; Bureau of Mediation Services; Department of Military Affairs; Metropolitan Council; Department of Natural Resources; Pollution Control Agency; Department of Public Safety; Department of Revenue; Department of Transportation; Department of Veterans Affairs; Gambling Control Board; Racing Commission; the Minnesota Lottery; the Animal Health Board; the Minnesota Board on Aging; the Public Utilities Commission; and the Board of Water and Soil Resources;

 

(2) "consultation" means the direct and interactive involvement of the Minnesota Tribal governments in the development of policy on matters that have Tribal implications.  Consultation is the proactive, affirmative process of identifying and seeking input from appropriate Tribal governments and considering their interest as a necessary and integral part of the decision-making process.  This definition adds to statutorily mandated notification procedures.  During a consultation, the burden is on the agency to show that it has made a good faith effort to elicit feedback.  Consultation is a formal engagement between agency officials and the governing body or bodies of an individual Minnesota Tribal government that the agency or an individual Tribal government may initiate.  Formal meetings or communication between top agency officials and the governing body of a Minnesota Tribal government is a necessary element of consultation;

 

(3) "matters that have Tribal implications" means rules, legislative proposals, policy statements, or other actions that have substantial direct effects on one or more Minnesota Tribal governments, or on the distribution of power and responsibilities between the state and Minnesota Tribal governments;

 

(4) "Minnesota Tribal governments" means the federally recognized Indian Tribes located in Minnesota including:  Bois Forte Band; Fond Du Lac Band; Grand Portage Band; Leech Lake Band; Mille Lacs Band; White Earth Band; Red Lake Nation; Lower Sioux Indian Community; Prairie Island Indian Community; Shakopee Mdewakanton Sioux Community; and Upper Sioux Community; and

 

(5) "timely and meaningful" means done or occurring at a favorable or useful time that allows the result of consultation to be included in the agency's decision-making process for a matter that has Tribal implications.

 

EFFECTIVE DATE.  This section is effective August 1, 2024.

 

Sec. 2.  [13.95] ADMINISTRATIVE COURTS.

 

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

 

(b) "Administrative courts" means the Office of Administrative Hearings, Tax Court, and Workers' Compensation Court of Appeals.

 

(c) "Court services" include hearings, settlement conferences, mediation, and the writing of decisions and orders.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13828

(d) "Health-related documents and data" means records, reports, or affidavits created by medical, health care, or scientific professionals that relate to the past, present, or future physical or mental health or condition of an individual, including but not limited to medical history, examinations, diagnoses and treatment, prepetition screening reports, or court-appointed examiner reports.

 

Subd. 2.  Judicial work product.  All notes and memoranda or drafts thereof prepared by a judge or employee of an administrative court and used in providing a court service are confidential or protected nonpublic data.

 

Subd. 3.  Health-related documents and data.  Health-related documents and data included in a court file are private data on individuals.

 

Sec. 3.  Minnesota Statutes 2022, section 14.05, subdivision 7, is amended to read:

 

Subd. 7.  Electronic documents permitted.  An agency may must file rule-related documents with the Office of Administrative Hearings by electronic transmission in the manner approved by that office and.  An agency may file rule-related documents with the Office of the Revisor of Statutes by electronic transmission in the manner approved by that office.

 

Sec. 4.  Minnesota Statutes 2022, section 14.08, is amended to read:

 

14.08 APPROVAL OF RULE AND RULE FORM; COSTS.

 

(a) One copy of a rule adopted under section 14.26 must be submitted by the agency to the chief administrative law judge.  The chief administrative law judge shall request from the revisor certified copies of the rule when it is submitted by the agency under section 14.26.  Within five working days after the request for certification of the rule is received by the revisor, excluding weekends and holidays, the revisor shall either return the rule with a certificate of approval of the form of the rule to the chief administrative law judge or notify the chief administrative law judge and the agency that the form of the rule will not be approved.

 

If the chief administrative law judge disapproves a rule, the agency may modify it and the agency shall submit one copy of the modified rule, approved as to form by the revisor, to the chief administrative law judge.

 

(b) One copy of a rule adopted after a public hearing must be submitted by the agency to the chief administrative law judge.  The chief administrative law judge shall request from the revisor certified copies of the rule when it is submitted by the agency.  Within five working days after receipt of the request, the revisor shall either return the rule with a certificate of approval to the chief administrative law judge or notify the chief administrative law judge and the agency that the form of the rule will not be approved.

 

(c) If the revisor refuses to approve the form of the rule, the revisor's notice must revise the rule so it is in the correct form.

 

(d) After the agency has notified the chief administrative law judge that it has adopted the rule, the chief administrative law judge shall promptly file four paper copies or an electronic copy of the adopted rule in the Office of the Secretary of State.  The secretary of state shall forward one copy of each rule filed to the agency, to the revisor of statutes, and to the governor.

 

(e) The chief administrative law judge shall assess an agency for the actual cost of processing rules under this section.  Each agency shall include in its budget money to pay the assessments.  Receipts from the assessment must be deposited in the administrative hearings account established in section 14.54.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13829

Sec. 5.  Minnesota Statutes 2022, section 14.16, subdivision 3, is amended to read:

 

Subd. 3.  Filing.  After the agency has provided the chief administrative law judge with a signed order adopting the rule, the chief administrative law judge shall promptly file four paper copies or an electronic copy of the adopted rule in the Office of the Secretary of State.  The secretary of state shall forward one copy of each rule filed to the agency, to the revisor of statutes, and to the governor.

 

Sec. 6.  Minnesota Statutes 2022, section 14.26, subdivision 3a, is amended to read:

 

Subd. 3a.  Filing.  If the rule is approved, the administrative law judge shall promptly file four paper copies or an electronic copy of the adopted rule in the Office of the Secretary of State.  The secretary of state shall forward one copy of each rule to the revisor of statutes, to the agency, and to the governor.

 

Sec. 7.  Minnesota Statutes 2022, section 14.386, is amended to read:

 

14.386 PROCEDURE FOR ADOPTING EXEMPT RULES; DURATION.

 

(a) A rule adopted, amended, or repealed by an agency, under a statute enacted after January 1, 1997, authorizing or requiring rules to be adopted but excluded from the rulemaking provisions of chapter 14 or from the definition of a rule, has the force and effect of law only if:

 

(1) the revisor of statutes approves the form of the rule by certificate;

 

(2) the person authorized to adopt the rule on behalf of the agency signs an order adopting the rule;

 

(3) the Office of Administrative Hearings approves the rule as to its legality within 14 days after the agency submits it for approval and files four paper copies or an electronic copy of the adopted rule with the revisor's certificate in the Office of the Secretary of State; and

 

(4) a copy is published by the agency in the State Register.

 

The secretary of state shall forward one copy of the rule to the governor.

 

A statute enacted after January 1, 1997, authorizing or requiring rules to be adopted but excluded from the rulemaking provisions of chapter 14 or from the definition of a rule does not excuse compliance with this section unless it makes specific reference to this section.

 

(b) A rule adopted under this section is effective for a period of two years from the date of publication of the rule in the State Register.  The authority for the rule expires at the end of this two-year period.

 

(c) The chief administrative law judge shall adopt rules relating to the rule approval duties imposed by this section and section 14.388, including rules establishing standards for review.

 

(d) This section does not apply to:

 

(1) any group or rule listed in section 14.03, subdivisions 1 and 3, except as otherwise provided by law;

 

(2) game and fish rules of the commissioner of natural resources adopted under section 84.027, subdivision 13, or sections 97A.0451 to 97A.0459;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13830

(3) experimental and special management waters designated by the commissioner of natural resources under sections 97C.001 and 97C.005;

 

(4) game refuges designated by the commissioner of natural resources under section 97A.085; or

 

(5) transaction fees established by the commissioner of natural resources for electronic or telephone sales of licenses, stamps, permits, registrations, or transfers under section 84.027, subdivision 15, paragraph (a), clause (3).

 

(e) If a statute provides that a rule is exempt from chapter 14, and section 14.386 does not apply to the rule, the rule has the force of law unless the context of the statute delegating the rulemaking authority makes clear that the rule does not have force of law.

 

Sec. 8.  Minnesota Statutes 2022, section 14.388, subdivision 2, is amended to read:

 

Subd. 2.  Notice.  An agency proposing to adopt, amend, or repeal a rule under this section must give electronic notice of its intent in accordance with section 16E.07, subdivision 3, and notice by United States mail or electronic mail to persons who have registered their names with the agency under section 14.14, subdivision 1a.  The notice must be given no later than the date the agency submits the proposed rule to the Office of Administrative Hearings for review of its legality and must include:

 

(1) the proposed rule, amendment, or repeal;

 

(2) an explanation of why the rule meets the requirements of the good cause exemption under subdivision 1; and

 

(3) a statement that interested parties have five business working days after the date of the notice to submit comments to the Office of Administrative Hearings.

 

Sec. 9.  Minnesota Statutes 2022, section 14.3895, subdivision 2, is amended to read:

 

Subd. 2.  Notice plan; prior approval.  The agency shall draft a notice plan under which the agency will make reasonable efforts to notify persons or classes of persons who may be significantly affected by the rule repeal by giving notice of its intention in newsletters, newspapers, or other publications, or through other means of communication.  Before publishing the notice in the State Register and implementing the notice plan, the agency shall obtain prior approval of the notice plan by the chief administrative law judge an administrative law judge in the Office of Administrative Hearings.

 

Sec. 10.  Minnesota Statutes 2022, section 14.3895, subdivision 6, is amended to read:

 

Subd. 6.  Legal review.  Before publication of the final rule in the State Register, the agency shall submit the rule to the chief administrative law judge in the Office of Administrative Hearings.  The chief administrative law judge shall within 14 days approve or disapprove the rule as to its legality and its form to the extent the form relates to legality.

 

Sec. 11.  Minnesota Statutes 2022, section 14.48, subdivision 2, is amended to read:

 

Subd. 2.  Chief administrative law judge.  (a) The office shall be under the direction of a chief administrative law judge who shall be learned in the law and appointed by the governor, with the advice and consent of the senate, for a term ending on June 30 of the sixth calendar year after appointment.  Senate confirmation of the chief administrative law judge shall be as provided by section 15.066. 


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13831

(b) The chief administrative law judge may hear cases and, in accordance with chapter 43A, shall appoint a deputy chief judge and additional administrative law judges and compensation judges to serve in the office as necessary to fulfill the duties of the Office of Administrative Hearings. 

 

(c) The chief administrative law judge may delegate to a subordinate employee the exercise of a specified statutory power or duty as deemed advisable, subject to the control of the chief administrative law judge.  Every delegation must be by written order filed with the secretary of state.  The chief administrative law judge is subject to the provisions of the Minnesota Constitution, article VI, section 6, the jurisdiction of the Board on Judicial Standards, and the provisions of the Code of Judicial Conduct.

 

(d) If a vacancy in the position of chief administrative law judge occurs, an acting or temporary chief administrative law judge must be named as follows:

 

(1) at the end of the term of a chief administrative law judge, the incumbent chief administrative law judge may, at the discretion of the appointing authority, serve as acting chief administrative law judge until a successor is appointed; and

 

(2) if at the end of a term of a chief administrative law judge the incumbent chief administrative law judge is not designated as acting chief administrative law judge, or if a vacancy occurs in the position of chief administrative law judge, the deputy chief judge shall immediately become temporary chief administrative law judge without further official action.

 

(e) The appointing authority of the chief administrative law judge may appoint a person other than the deputy chief judge to serve as temporary chief administrative law judge and may replace any other acting or temporary chief administrative law judge designated pursuant to paragraph (d), clause (1) or (2).

 

Sec. 12.  [14.525] INTERPRETERS.

 

The chief administrative law judge may enter contracts with interpreters identified by the Supreme Court through the Court Interpreter Program.  Interpreters may be utilized as the chief administrative law judge directs.  These contracts are not subject to the requirements of chapters 16B and 16C.

 

Sec. 13.  Minnesota Statutes 2022, section 14.62, subdivision 2a, is amended to read:

 

Subd. 2a.  Administrative law judge decision final; exception.  Unless otherwise provided by law, the report or order of the administrative law judge constitutes the final decision in the case unless the agency modifies or rejects it under subdivision 1 within 90 days after the record of the proceeding closes under section 14.61.  When the agency fails to act within 90 days on a licensing case, the agency must return the record of the proceeding to the administrative law judge for consideration of disciplinary action.  In all contested cases where the report or order of the administrative law judge constitutes the final decision in the case, the administrative law judge shall issue findings of fact, conclusions, and an order within 90 days after the hearing record closes under section 14.61.  Upon a showing of good cause by a party or the agency, the chief administrative law judge may order a reasonable extension of either of the two 90-day deadlines specified in this subdivision.  The 90-day deadline will be tolled while the chief administrative law judge considers a request for reasonable extension so long as the request was filed and served within the applicable 90-day period.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13832

Sec. 14.  Minnesota Statutes 2022, section 15.994, is amended to read:

 

15.994 INTERNET GRANT INFORMATION.

 

A state agency with an Internet site must provide information on grants available through the agency and must provide a link to any grant application under section 16E.20.

 

Sec. 15.  Minnesota Statutes 2022, section 15A.083, subdivision 6a, is amended to read:

 

Subd. 6a.  Administrative law judge; salaries.  The salary of the chief administrative law judge is 98.52 percent of the salary of a chief district court judge.  The salaries of the assistant chief administrative law judge and administrative law judge supervisors deputy chief judge and judge supervisors employed by the Office of Administrative Hearings are 100 percent of the salary of a district court judge.  The salary of an administrative law judge employed by the Office of Administrative Hearings is 98.52 percent of the salary of a district court judge as set under section 15A.082, subdivision 3.

 

Sec. 16.  Minnesota Statutes 2022, section 16B.055, subdivision 1, is amended to read:

 

Subdivision 1.  Federal Assistive Technology Act.  (a) The Department of Administration is designated as the lead agency to carry out all the responsibilities under the 21st Century Assistive Technology Act of 1998, as provided by Public Law 108-364, as amended 117-81.  The Minnesota Assistive Technology Advisory Council is established to fulfill the responsibilities required by the Assistive Technology Act, as provided by Public Law 108‑364, as amended 117-81.  Because the existence of this council is required by federal law, this council does not expire.

 

(b) Except as provided in paragraph (c), the governor shall appoint the membership of the council as required by the 21st Century Assistive Technology Act of 1998, as provided by Public Law 108-364, as amended 117-81.  After the governor has completed the appointments required by this subdivision, the commissioner of administration, or the commissioner's designee, shall convene the first meeting of the council following the appointments.  Members shall serve two-year terms commencing July 1 of each odd-numbered year, and receive the compensation specified by the 21st Century Assistive Technology Act of 1998, as provided by Public Law 108-364, as amended 117-81.  The members of the council shall select their chair at the first meeting following their appointment.

 

(c) After consulting with the appropriate commissioner, the commissioner of administration shall appoint a representative from:

 

(1) State Services for the Blind who has assistive technology expertise;

 

(2) vocational rehabilitation services who has assistive technology expertise;

 

(3) the Workforce Development Board; and

 

(4) the Department of Education who has assistive technology expertise.; and

 

(5) the Board on Aging.

 

Sec. 17.  [16B.336] CAPITAL PROJECT REPLACEMENT ACCOUNTS.

 

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

 

(b) "Commissioner" means the commissioner of administration.

 

(c) "Preservation" means improvements and betterments of a capital nature consistent with those described in section 16B.307, subdivision 1, paragraph (d).


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13833

Subd. 2.  Replacement account establishment.  (a) A grantee that receives a direct appropriation or grant from an appropriation of state money for a capital project subject to section 16A.642, 16A.695, or 16A.86 must establish a capital project replacement fund for major rehabilitation, expansion, replacement, or preservation of the capital project once the project has reached its useful life, or another use as permitted under this section.  Money must remain in the account for the useful life of the capital project, as determined by the grant agreement with the granting state agency, unless use of the fund is approved in writing by the granting state agency for major rehabilitation, expansion, replacement, or preservation of the capital project funded with state money, or to address a capital project for a different capital asset owned by the grantee.

 

(b) A grantee must adopt a capital project replacement policy that specifies the following for the capital project replacement fund:

 

(1) the risks to be mitigated or managed by the fund;

 

(2) the intended use of the replacement fund, including but not limited to how the fund will be used for major rehabilitation, expansion, replacement, or preservation of the capital project; and

 

(3) criteria for the use of the fund to address other capital improvement needs of the grantee, including safety and security, maintenance and utility costs, availability of repair parts and materials, sustainability, and any other criteria the grantee deems relevant.

 

(c) For the purposes of this section, "grantee" does not include a state agency, state official, the Board of Regents of the University of Minnesota, or the Board of Trustees of the Minnesota State Colleges and Universities.

 

Subd. 3.  Minimum deposits; fund balance.  (a) The commissioner must determine the annual minimum deposit amounts into capital project replacement funds by capital project type.  The commissioner must take into account depreciation, construction cost inflation, and other relevant factors when determining the minimum deposit amounts.

 

(b) A grantee must not be required to maintain a capital project replacement fund balance greater than the amount of the direct appropriation or grant from an appropriation of state money for the capital project.

 

Subd. 4.  Account auditing.  The state auditor may audit capital project replacement accounts as part of the regular audits of local governments.

 

Subd. 5.  Exceptions.  Capital projects that already require a replacement fund under section 446A.072, subdivision 12, or any other law, rule, or ordinance, are exempt from the requirements under this section, so long as the deposits into the replacement fund are at least as large as the minimum deposits established by the commissioner under subdivision 3.

 

Subd. 6.  Penalty.  Failure of a grantee to comply with the requirements of this section shall result in the granting state agency assessing a penalty fee to the grantee equal to one percent of the appropriation of state money for the capital project for each year of noncompliance.  Penalty fees shall be remitted by the granting state agency to the commissioner of management and budget for deposit into the general fund.

 

EFFECTIVE DATE.  This section is effective for capital projects funded through state capital project grant agreements entered into on or after July 1, 2024.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13834

Sec. 18.  Minnesota Statutes 2022, section 16B.48, subdivision 4, is amended to read:

 

Subd. 4.  Reimbursements.  (a) Except as specifically provided otherwise by law, each agency shall reimburse the general services revolving funds for the cost of all services, supplies, materials, labor, and depreciation of equipment, including reasonable overhead costs, which the commissioner is authorized and directed to furnish an agency.  The cost of all publications or other materials produced by the commissioner and financed from the general services revolving fund must include reasonable overhead costs. 

 

(b) The commissioner of administration shall report the rates to be charged for the general services revolving funds no later than July 1 September 15 each year to the chair of the committee or division in the senate and house of representatives with primary jurisdiction over the budget of the Department of Administration. 

 

(c) The commissioner of management and budget shall make appropriate transfers to the revolving funds described in this section when requested by the commissioner of administration.  The commissioner of administration may make allotments, encumbrances, and, with the approval of the commissioner of management and budget, disbursements in anticipation of such transfers.  In addition, the commissioner of administration, with the approval of the commissioner of management and budget, may require an agency to make advance payments to the revolving funds in this section sufficient to cover the agency's estimated obligation for a period of at least 60 days. 

 

(d) All reimbursements and other money received by the commissioner of administration under this section must be deposited in the appropriate revolving fund.  Any earnings remaining in the fund established to account for the documents service prescribed by section 16B.51 at the end of each fiscal year not otherwise needed for present or future operations, as determined by the commissioners of administration and management and budget, must be transferred to the general fund.

 

Sec. 19.  Minnesota Statutes 2022, section 16B.54, subdivision 2, is amended to read:

 

Subd. 2.  Vehicles.  (a) The commissioner may direct an agency to make a transfer of a passenger motor vehicle or truck currently assigned to it.  The transfer must be made to the commissioner for use in the enterprise fleet.  The commissioner shall reimburse an agency whose motor vehicles have been paid for with funds dedicated by the constitution for a special purpose and which are assigned to the enterprise fleet.  The amount of reimbursement for a motor vehicle is its average wholesale price as determined from the midwest edition of the National Automobile Dealers Association official used car guide.

 

(b) To the extent that funds are available for the purpose, the commissioner may purchase or otherwise acquire additional passenger motor vehicles and trucks necessary for the enterprise fleet.  The title to all motor vehicles assigned to or purchased or acquired for the enterprise fleet is in the name of the Department of Administration.

 

(c) On the request of an agency, the commissioner may transfer to the enterprise fleet any passenger motor vehicle or truck for the purpose of disposing of it.  The department or agency transferring the vehicle or truck must be paid for it from the motor pool revolving account established by this section in an amount equal to two-thirds of the average wholesale price of the vehicle or truck as determined from the midwest edition of the National Automobile Dealers Association official used car guide.

 

(d) The commissioner shall provide for the uniform marking of all motor vehicles.  Motor vehicle colors must be selected from the regular color chart provided by the manufacturer each year.  The commissioner may further provide for the use of motor vehicles without marking by:

 

(1) the governor;

 

(2) the lieutenant governor;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13835

(3) the Division of Criminal Apprehension, the Division of Alcohol and Gambling Enforcement, and arson investigators of the Division of Fire Marshal in the Department of Public Safety;

 

(4) the Financial Institutions Division and investigative staff of the Department of Commerce;

 

(5) the Division of Disease Prevention and Control of the Department of Health;

 

(6) the State Lottery;

 

(7) criminal investigators of the Department of Revenue;

 

(8) state-owned community service facilities in the Department of Human Services;

 

(9) the Office of the Attorney General;

 

(10) the investigative staff of the Gambling Control Board; and

 

(11) the Department of Corrections inmate community work crew program under section 352.91, subdivision 3g; and

 

(12) the Office of Ombudsman for Long-Term Care staff.

 

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

 

Sec. 20.  [16B.851] STATE BUILDING RENEWABLE ENERGY; STORAGE; ELECTRIC VEHICLE ACCOUNT.

 

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

 

(b) "Energy storage" means the predesign, design, acquisition, construction, or installation of technology which stores and delivers electric or thermal energy.

 

(c) "EVSE" means electric vehicle service equipment, including charging equipment and associated infrastructure and site upgrades. 

 

(d) "Renewable energy" has the meaning given in section 216B.2422, subdivision 1, paragraph (c), and the same sources in thermal energy.

 

(e) "Renewable energy improvement" means the predesign, design, acquisition, construction, or installation of a renewable energy production system or energy storage equipment or system, and associated infrastructure and facilities that are designed to result in a demand-side net reduction in energy use by the state building's electrical, heating, ventilating, air-conditioning, and hot water systems.

 

(f) "State agency" has the definition given in section 13.02, subdivision 17, or designated definition given in section 15.01 and includes the Office of Higher Education, Housing Finance Agency, Pollution Control Agency, Metropolitan Council, and Bureau of Mediation Services.  State agency includes the agencies, boards, commissions, committees, councils, and authorities designated in section 15.012.

 

(g) "State building" means a building or facility owned by the state of Minnesota.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13836

Subd. 2.  Account established.  A state building renewable energy, storage, and electric vehicle account is established in the special revenue fund to provide funds to state agencies to:

 

(1) design, construct, and equip renewable energy improvement and renewable energy storage projects at state buildings;

 

(2) purchase state fleet electric vehicles in accordance with section 16C.135;

 

(3) purchase and install EVSE and related infrastructure; and

 

(4) carry out management projects by the commissioner.

 

Subd. 3.  Account management.  The commissioner shall manage and administer the state building renewable energy, storage, and electric vehicle account.

 

Subd. 4.  Accepting funds.  (a) The commissioner shall make an application to the federal government on behalf of the state of Minnesota for all state projects eligible for elective payments under sections 6417 and 6418 of the Internal Revenue Code, as added by Public Law 117-169, 136 Statute 1818, the Inflation Reduction Act of 2022.

 

(b) The commissioner may apply for, receive, and expend money made available from federal, state, or other sources for the purposes of carrying out the duties in this section.

 

(c) Notwithstanding section 16A.72, all funds received under this subdivision are deposited into the state building renewable energy, storage, and electric vehicle account and appropriated to the commissioner for the purposes of subdivision 2 and as permitted under this section.

 

(d) Money in the state building renewable energy, storage, and electric vehicle account does not cancel and is available until expended.

 

Subd. 5.  Applications.  A state agency applying for state building renewable energy, storage, EVSE, and electric fleet vehicle funds must submit an application to the commissioner on a form, in the manner, and at the time prescribed by the commissioner.

 

Subd. 6.  Treatment of certain payments received from federal government.  (a) Federal payments received for eligible renewable energy improvement and storage projects and EVSE projects made with appropriations from general obligation bonds may be transferred to the state bond fund if consistent with federal treasury regulations.

 

(b) Federal payments received for eligible electric fleet vehicle purchases by the Department of Administration's fleet division must be transferred to the motor pool revolving account established in section 16B.54, subdivision 8.

 

(c) Federal payments received for eligible electric fleet vehicle purchases made directly by a state agency shall be transferred to the fund from which the purchase was made.

 

(d) When obligated to fulfill financing agreements, federal payments received for eligible renewable energy improvements shall be transferred to the appropriate agency.

 

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


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13837

Sec. 21.  Minnesota Statutes 2022, section 16B.97, subdivision 1, is amended to read:

 

Subdivision 1.  Grant agreement.  (a) A grant agreement is a written instrument or electronic document defining a legal relationship between a granting agency and a grantee when the principal purpose of the relationship is to transfer cash or something of value to the recipient to support a public purpose authorized by law instead of acquiring by professional or technical contract, purchase, lease, or barter property or services for the direct benefit or use of the granting agency.

 

(b) This section does not apply to general obligation grants as defined by section 16A.695 and, capital project grants to political subdivisions as defined by section 16A.86, or capital project grants otherwise subject to section 16A.642.

 

Sec. 22.  Minnesota Statutes 2022, section 16B.98, subdivision 1, is amended to read:

 

Subdivision 1.  Limitation.  (a) As a condition of receiving a grant from an appropriation of state funds, the recipient of the grant must agree to minimize administrative costs.  The granting agency is responsible for negotiating appropriate limits to these costs so that the state derives the optimum benefit for grant funding.

 

(b) This section does not apply to general obligation grants as defined by section 16A.695 and also, capital project grants to political subdivisions as defined by section 16A.86, or capital project grants otherwise subject to section 16A.642.

 

Sec. 23.  Minnesota Statutes 2022, section 16C.137, subdivision 2, is amended to read:

 

Subd. 2.  Report.  (a) The commissioner of administration, in collaboration with the commissioners of the Pollution Control Agency, the Departments of Agriculture, Commerce, Natural Resources, and Transportation, and other state departments, must evaluate the goals and directives established in this section and report include their findings to the governor and the appropriate committees of the legislature by February 1 of each odd-numbered year in the public dashboard under section 16B.372.  In the report public dashboard, the commissioner must make recommendations for new or adjusted goals, directives, or legislative initiatives, in light of the progress the state has made implementing this section and the availability of new or improved technologies.

 

(b) The Department of Administration shall implement a fleet reporting and information management system.  Each department will use this management system to demonstrate its progress in complying with this section.

 

Sec. 24.  Minnesota Statutes 2022, section 16D.09, subdivision 1, is amended to read:

 

Subdivision 1.  Generally.  (a) When a debt is determined by a state agency to be uncollectible, the debt may be written off by the state agency from the state agency's financial accounting records and no longer recognized as an account receivable for financial reporting purposes.  A debt is considered to be uncollectible when (1) all reasonable collection efforts have been exhausted, (2) the cost of further collection action will exceed the amount recoverable, (3) the debt is legally without merit or cannot be substantiated by evidence, (4) the debtor cannot be located, (5) the available assets or income, current or anticipated, that may be available for payment of the debt are insufficient, (6) the debt has been discharged in bankruptcy, (7) the applicable statute of limitations for collection of the debt has expired, or (8) it is not in the public interest to pursue collection of the debt.

 

(b) Uncollectible debt must be reported by the state agency as part of its quarterly reports to the commissioner of management and budget.  The basis for the determination of the uncollectibility of the debt must be maintained by the state agency.  If an uncollectible debt equals or exceeds $100,000, the agency shall notify the chairs and ranking minority members of the legislative committees with jurisdiction over the state agency's budget at the time the debt is determined to be uncollectible.  The information reported shall contain the entity associated with the uncollected


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13838

debt, the amount of the debt, the revenue type, the reason the debt is considered uncollectible, and the duration the debt has been outstanding.  The commissioner of management and budget shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over Minnesota Management and Budget an annual summary of the number and dollar amount of debts determined to be uncollectible during the previous fiscal year by October 31 November 30 of each year.  Determining that the debt is uncollectible does not cancel the legal obligation of the debtor to pay the debt.

 

Sec. 25.  Minnesota Statutes 2022, section 16E.01, subdivision 2, is amended to read:

 

Subd. 2.  Discretionary powers.  The department may:

 

(1) enter into contracts for goods or services with public or private organizations and charge fees for services it provides;

 

(2) apply for, receive, and expend money from public agencies;

 

(3) apply for, accept, and disburse grants and other aids from the federal government and other public or private sources;

 

(4) enter into contracts with agencies of the federal government, local governmental units, the University of Minnesota and other educational institutions, and private persons and other nongovernmental organizations as necessary to perform its statutory duties;

 

(5) sponsor and conduct conferences and studies, collect and disseminate information, and issue reports relating to information and communications technology issues;

 

(6) review the technology infrastructure of regions of the state and cooperate with and make recommendations to the governor, legislature, state agencies, local governments, local technology development agencies, the federal government, private businesses, and individuals for the realization of information and communications technology infrastructure development potential;

 

(7) sponsor, support, and facilitate innovative and collaborative economic and community development and government services projects or initiatives, including technology initiatives related to culture and the arts, with public and private organizations; and

 

(8) review and recommend alternative sourcing strategies for state information and communications systems.

 

Sec. 26.  Minnesota Statutes 2023 Supplement, section 16E.01, subdivision 3, is amended to read:

 

Subd. 3.  Duties.  (a) The department shall:

 

(1) manage the efficient and effective use of available federal, state, local, and public-private resources to develop statewide information and telecommunications technology systems and services and its infrastructure;

 

(2) approve state agency and intergovernmental information and telecommunications technology systems and services development efforts involving state or intergovernmental funding, including federal funding, provide information to the legislature regarding projects and initiatives reviewed, and recommend projects and initiatives for inclusion in the governor's budget under section 16A.11;

 

(3) promote cooperation and collaboration among state and local governments in developing intergovernmental information and telecommunications technology systems and services;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13839

(4) cooperate and collaborate with the legislative and judicial branches in the development of information and communications systems in those branches, as requested;

 

(5) promote and coordinate public information access and network initiatives, consistent with chapter 13, to connect Minnesota's citizens and communities to each other, to their governments, and to the world continue to collaborate on the development of MN.gov, the state's official comprehensive online service and information initiative;

 

(6) manage and promote the regular and periodic reinvestment in the information and telecommunications technology systems and services infrastructure so that state and local government agencies can effectively and efficiently serve their customers;

 

(7) facilitate the cooperative development of and ensure compliance with standards and policies for information and telecommunications technology systems and services and electronic data practices and privacy security within the executive branch;

 

(8) eliminate unnecessary duplication of existing information and telecommunications technology systems and services provided by state agencies;

 

(9) identify, sponsor, develop, and execute shared information and telecommunications technology projects and initiatives, and ongoing operations;

 

(10) ensure overall security of the state's information and technology systems and services; and

 

(11) manage and direct compliance with accessibility standards for informational technology, including hardware, software, websites, online forms, and online surveys.

 

(b) The chief information officer, in consultation with the commissioner of management and budget, must determine when it is cost-effective for agencies to develop and use shared information technology systems, platforms, and services for the delivery of digital government services.  The chief information officer may require agencies to use shared information and telecommunications technology systems and services.  The chief information officer shall establish reimbursement rates in cooperation with the commissioner of management and budget to be billed to agencies and other governmental entities sufficient to cover the actual development, operating, maintenance, and administrative costs of the shared systems.  The methodology for billing may include the use of interagency agreements, or other means as allowed by law.

 

(c) A state agency that has an information and telecommunications technology project or initiative, whether funded as part of the biennial budget or by any other means, shall register with the department by submitting basic project or initiative startup documentation as specified by the chief information officer in both format and content.  State agency business and technology project leaders, in accordance with policies and standards set forth by the chief information officer, must demonstrate that the project or initiative will be properly managed, ensure alignment with enterprise technology strategic direction, provide updates to the project or initiative documentation as changes are proposed, and regularly report on the current status of the project or initiative on a schedule agreed to with the chief information officer.  The chief information officer has the authority to define a project or initiative for the purposes of this chapter.

 

(d) The chief information officer shall monitor progress on any active information and telecommunications technology project with a total expected project cost of more than $5,000,000 projects and initiatives and report on the performance of the project projects or initiatives in comparison with the plans for the project in terms of time, scope, and budget.  The chief information officer may conduct an independent project audit of the project or initiative.  If an independent audit is conducted, the audit analysis and evaluation of the projects subject to paragraph (c) project or initiative must be presented to agency executive sponsors, the project governance bodies, and the chief information officer.  All reports and responses must become part of the project or initiative record.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13840

(e) For any active information and telecommunications technology project or initiative, with a total expected project cost of more than $10,000,000, the state agency must perform an annual independent audit that conforms to published project audit principles adopted by the department must be conducted.

 

(f) The chief information officer shall report by January 15 of each year to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over the department regarding projects the department has reviewed under paragraph (a), clause (10) on the status of the state's comprehensive project and initiatives portfolio.  The report must include:  descriptions of each project and its current status, information technology costs associated with the project, and estimated date on when the information technology project is expected to be completed.

 

(1) each project in the IT portfolio whose status is either active or on hold;

 

(2) each project presented to the office for consultation in the time since the last report;

 

(3) the information technology cost associated with the project;

 

(4) the current status of the information technology project;

 

(5) the date the information technology project is expected to be completed; and

 

(6) the projected costs for ongoing support and maintenance after the project is complete.

 

Sec. 27.  Minnesota Statutes 2023 Supplement, section 16E.03, subdivision 2, is amended to read:

 

Subd. 2.  Chief information officer's responsibility.  The chief information officer shall:

 

(1) design a strategic plan for information and telecommunications technology systems and services in the state and shall report on the plan to the governor and legislature at the beginning of each regular session;

 

(2) coordinate, review, and approve all information and telecommunications technology projects develop and implement processes for review, approval, and monitoring and oversee the state's information and telecommunications technology systems and services;

 

(3) establish and enforce compliance with standards for information and telecommunications technology systems and services that are cost-effective and support open systems environments and that are compatible with state, national, and international standards, including accessibility standards;

 

(4) maintain a library of systems and programs developed by the state for use by agencies of government;

 

(5) direct and manage the shared operations of the state's information and telecommunications technology systems and services; and

 

(6) establish and enforce standards and ensure acquisition of hardware, software, and services necessary to protect data and systems in state agency networks connected to the Internet.

 

Sec. 28.  Minnesota Statutes 2022, section 16E.03, subdivision 3, is amended to read:

 

Subd. 3.  Evaluation and approval.  A state agency may not undertake an information and telecommunications technology project or initiative until it has been evaluated according to the procedures developed under subdivision 4.  The chief information officer or delegate shall give written approval of the proposed project record project approval as a part of the project.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13841

Sec. 29.  Minnesota Statutes 2022, section 16E.03, subdivision 4, is amended to read:

 

Subd. 4.  Evaluation procedure.  The chief information officer shall establish and, as necessary, update and modify procedures to evaluate information and communications projects or initiatives proposed by state agencies.  The evaluation procedure must assess the necessity, design and plan for development, ability to meet user requirements, accessibility, feasibility, and flexibility of the proposed data processing device or system, its relationship to other state data processing devices or systems, and its costs and benefits when considered by itself and when compared with other options cost, and benefits of the project or initiative.

 

Sec. 30.  Minnesota Statutes 2022, section 16E.03, subdivision 5, is amended to read:

 

Subd. 5.  Report to legislature.  The chief information officer shall submit to the legislature, at the same time as the governor's budget required by section 16A.11, a concise narrative explanation of any information and communication technology project or initiative being proposed as part of the governor's budget that involves collaboration between state agencies and an explanation of how the budget requests of the several agencies collaborating on the project or initiative relate to each other.

 

Sec. 31.  Minnesota Statutes 2022, section 16E.03, subdivision 7, is amended to read:

 

Subd. 7.  Cyber security systems.  (a) In consultation with the attorney general and appropriate agency heads, the chief information officer shall develop cyber security policies, guidelines, and standards, and shall install advise, implement, and administer state data security systems solutions and practices on the state's computer facilities information technology services, systems, and applications consistent with these policies, guidelines, standards, and state law to ensure the integrity, confidentiality, and availability of computer-based and other information technology systems and services, and data and to ensure applicable limitations on access to data, consistent with the public's right to know as defined in chapter 13.  The chief information officer is responsible for overall security of state agency networks connected to the Internet.  Each department or agency head is responsible for the security of the department's or agency's data within the guidelines of established enterprise policy.

 

(b) The state chief information officer, or state chief information security officer, may advise and consult on security strategy and programs for state entities and political subdivisions not subject to section 16E.016.

 

Sec. 32.  Minnesota Statutes 2022, section 16E.04, subdivision 2, is amended to read:

 

Subd. 2.  Responsibilities.  (a) The office shall may develop and establish a state information architecture to ensure:

 

(1) that state agency information and communications systems, equipment, and services do not needlessly duplicate or conflict with the systems of other agencies; and

 

(2) enhanced public access to data can be provided consistent with standards developed under section 16E.05, subdivision 4.

 

When state agencies have need for the same or similar public data, the chief information officer, in coordination with the affected agencies, shall manage the most efficient and cost-effective method of producing and storing data for or sharing data between those agencies.  The development of this information architecture must include the establishment of standards and guidelines to be followed by state agencies.  The office shall ensure compliance with the architecture.

 

(b) The office shall review and approve agency requests for funding for the development or purchase of information systems equipment or software before the requests may be included in the governor's budget.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13842

(c) The office shall may review and approve agency requests for grant funding that have an information and technology component.

 

(d) The office shall review major purchases of information systems equipment to:

 

(1) ensure that the equipment follows the standards and guidelines of the state information architecture;

 

(2) ensure the agency's proposed purchase reflects a cost-effective policy regarding volume purchasing; and

 

(3) ensure that the equipment is consistent with other systems in other state agencies so that data can be shared among agencies, unless the office determines that the agency purchasing the equipment has special needs justifying the inconsistency.

 

(e) The office shall review the operation of information systems by state agencies and ensure that these systems are operated efficiently and securely and continually meet the standards and guidelines established by the office.  The standards and guidelines must emphasize uniformity that is cost-effective for the enterprise, that encourages information interchange, open systems environments, and portability of information whenever practicable and consistent with an agency's authority and chapter 13.

 

Sec. 33.  Minnesota Statutes 2022, section 16E.04, subdivision 3, is amended to read:

 

Subd. 3.  Risk assessment and mitigation.  (a) A risk assessment and risk mitigation plan are required for all information systems development projects or initiatives undertaken by a state agency in the executive or judicial branch or by a constitutional officer.  The chief information officer must contract with an entity outside of state government to conduct the initial assessment and prepare the mitigation plan for a project or initiative estimated to cost more than $5,000,000 $10,000,000.  The outside entity conducting the risk assessment and preparing the mitigation plan must not have any other direct or indirect financial interest in the project or initiative.  The risk assessment and risk mitigation plan must provide for periodic monitoring by the commissioner until the project or initiative is completed.

 

(b) The risk assessment and risk mitigation plan must be paid for with money appropriated for the information and telecommunications technology project or initiative.

 

Sec. 34.  Minnesota Statutes 2022, section 16E.07, is amended to read:

 

16E.07 NORTH STAR ONLINE GOVERNMENT INFORMATION SERVICES.

 

Subdivision 1.  Definitions Definition.  (a) The definitions definition in this subdivision apply applies to this section.

 

(b) "Core services" means accessible information system applications required to provide secure information services and online applications and content to the public from government units.  Online applications may include, but are not limited to:

 

(1) standardized public directory services and standardized content services;

 

(2) online search systems;

 

(3) general technical services to support government unit online services;

 

(4) electronic conferencing and communication services;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13843

(5) secure electronic transaction services;

 

(6) digital audio, video, and multimedia services; and

 

(7) government intranet content and service development.

 

(c) (b) "Government unit" means a state department, agency, commission, council, board, task force, or committee; a constitutional office; a court entity; the Minnesota State Colleges and Universities; a county, statutory or home rule charter city, or town; a school district; a special district; or any other board, commission, district, or authority created under law, local ordinance, or charter provision.

 

Subd. 2.  Established.  The office department shall establish "North Star" as the state's comprehensive government online information service.  North Star is the state's governmental framework for coordinating and collaborating in providing online government information and services.  Government agencies that provide electronic access to government information are requested to make available to North Star their most frequently requested public data collaborate with state agencies to maintain MN.gov and associated websites that provide online government information services.

 

Subd. 3.  Access to data.  The legislature determines that the greatest possible access to certain government information and data is essential to allow citizens to participate fully in a democratic system of government.  Certain information and data, including, but not limited to the following, must be provided free of charge or for a nominal cost associated with reproducing the information or data:

 

(1) directories of government services and institutions, including an electronic version of the guidebook to state agency services published by the commissioner of administration;

 

(2) legislative and rulemaking information, including an electronic version of the State Register, public information newsletters, bill text and summaries, bill status information, rule status information, meeting schedules, and the text of statutes and rules;

 

(3) supreme court and court of appeals opinions and general judicial information;

 

(4) opinions of the attorney general;

 

(5) Campaign Finance and Public Disclosure Board and election information;

 

(6) public budget information;

 

(7) local government documents, such as codes, ordinances, minutes, meeting schedules, and other notices in the public interest;

 

(8) official documents, releases, speeches, and other public information issued by government agencies; and

 

(9) the text of other government documents and publications that government agencies determine are important to public understanding of government activities.

 

Subd. 4.  Staff.  The chief information officer shall appoint the manager of the North Star online information service and hire staff to carry out the responsibilities of the service.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13844

Subd. 5.  Participation; consultation; guidelines.  The North Star staff shall consult with governmental and nongovernmental organizations to establish rules for participation in the North Star service.  Government units planning, developing, or providing publicly accessible online services shall provide access through and collaborate with North Star and formally register with the office.  The University of Minnesota is requested to establish online connections and collaborate with North Star.  Units of the legislature shall make their services available through North Star.  Government units may be required to submit standardized directory and general content for core services but are not required to purchase core services from North Star.  North Star shall promote broad public access to the sources of online information or services through multiple technologies.

 

Subd. 6.  Fees.  The office shall may establish fees for technical and transaction services for government units through North Star.  Fees must be credited to the North Star account.  The office may not charge a fee for viewing or inspecting data made available through North Star MN.gov or linked facilities, unless specifically authorized by law.

 

Subd. 7.  North Star Online government information service account.  The North Star online government information service account is created in the special revenue fund.  The account consists of:

 

(1) grants received from nonstate entities;

 

(2) fees and charges collected by the office;

 

(3) gifts, donations, and bequests made to the office; and

 

(4) other money credited to the account by law.

 

Money in the account is appropriated to the office to be used to continue the development of the North Star project online government information services.

 

Subd. 8.  Secure transaction system.  The office shall plan and develop a secure transaction system systems to support delivery of government services electronically.  A state agency that implements electronic government services for fees, licenses, sales, or other purposes must use the may be required to use secure transaction system systems developed in accordance with this section.

 

Subd. 9.  Aggregation of service demand.  The office shall may identify opportunities to aggregate demand for technical services required by government units for online activities and may contract with governmental or nongovernmental entities to provide services.  These contracts are not subject to the requirements of chapters 16B and 16C, except sections 16C.04, 16C.08, and 16C.09.

 

Subd. 10.  Outreach.  The office may promote the availability of government online information and services through public outreach and education.  Public network expansion in communities through libraries, schools, colleges, local government, and other community access points must include access to North Star.  North Star may make materials available to those public sites to promote awareness of the service.

 

Subd. 11.  Advanced development collaboration.  The office shall identify information technology services with broad public impact and advanced development requirements.  Those services shall assist in the development of and utilization of core services to the greatest extent possible where appropriate, cost-effective, and technically feasible.  This includes, but is not limited to, higher education, statewide online library, economic and community development, and K-12 educational technology services.  North Star shall participate in electronic commerce research and development initiatives with the University of Minnesota and other partners.  The statewide online library service shall consult, collaborate, and work with North Star to ensure development of proposals for advanced government information locator and electronic depository and archive systems.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13845

Subd. 12.  Private entity services; fee authority.  (a) The department may enter into a contract with a private entity to manage, maintain, support, and expand North Star and online government information services to citizens and businesses.

 

(b) A contract established under paragraph (a) may provide for compensation of the private entity through a fee established under paragraph (c).

 

(c) The department, subject to the approval of the agency or department responsible for the data or services involved in the transaction, may charge and may authorize a private entity that enters into a contract under paragraph (a) to charge a convenience fee for users of North Star and online government information services up to a total of $2 per transaction, provided that no fee shall be charged for viewing or inspecting data.  A fee established under this paragraph is in addition to any fees or surcharges authorized under other law.

 

(d) Receipts from the convenience fee shall be deposited in the North Star online government information service account established in subdivision 7.  Notwithstanding section 16A.1285, subdivision 2, receipts credited to the account are appropriated to the department for payment to the contracted private entity under paragraph (a).  In lieu of depositing the receipts in the North Star online government information service account, the department can directly transfer the receipts to the private entity or allow the private entity to retain the receipts pursuant to a contract established under this subdivision.

 

(e) The department shall report Information regarding any convenience fee receipts collected under paragraph (d) must be reported to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over state government finance by January 15 of each odd-numbered year regarding the convenience fee receipts and the status of North Star projects and online government information services developed and supported by convenience fee receipts.

 

Sec. 35.  [16E.36] CYBERSECURITY INCIDENTS.

 

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

 

(b) "Bureau" means the Bureau of Criminal Apprehension.

 

(c) "Cybersecurity incident" means an action taken through the use of an information system or network that results in an actual or potentially adverse effect on an information system, network, or the information residing therein.

 

(d) "Cyber threat indicator" means information that is necessary to describe or identify:

 

(1) malicious reconnaissance, including but not limited to anomalous patterns of communication that appear to be transmitted for the purpose of gathering technical information related to a cybersecurity threat or vulnerability;

 

(2) a method of defeating a security control or exploitation of a security vulnerability;

 

(3) a security vulnerability, including but not limited to anomalous activity that appears to indicate the existence of a security vulnerability;

 

(4) a method of causing a user with legitimate access to an information system or information that is stored on, processed by, or transiting an information system to unwittingly enable the defeat of a security control or exploitation of a security vulnerability;

 

(5) malicious cyber command and control;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13846

(6) the actual or potential harm caused by an incident, including but not limited to a description of the data exfiltrated as a result of a particular cyber threat; and

 

(7) any other attribute of a cyber threat, if disclosure of such attribute is not otherwise prohibited by law.

 

(e) "Defensive measure" means an action, device, procedure, signature, technique, or other measure applied to an information system or information that is stored on, processed by, or transiting an information system that detects, prevents, or mitigates a known or suspected cyber threat or security vulnerability, but does not include a measure that destroys, renders unusable, provides unauthorized access to, or substantially harms an information system or information stored on, processed by, or transiting an information system not owned by the entity operating the measure, or another entity that is authorized to provide consent and has provided consent to that private entity for operation of the measure.

 

(f) "Government contractor" means an individual or entity that performs work for or on behalf of a public agency on a contract basis with access to or hosting of the public agency's network, systems, applications, or information.

 

(g) "Information resource" means information and related resources, such as personnel, equipment, funds, and information technology.

 

(h) "Information system" means a discrete set of information resources organized for collecting, processing, maintaining, using, sharing, disseminating, or disposing of information. 

 

(i) "Information technology" means any equipment or interconnected system or subsystem of equipment that is used in automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information used by a public agency or a government contractor under contract with a public agency which requires the use of the equipment or requires the use, to a significant extent, of the equipment in the performance of a service or the furnishing of a product.  The term information technology also has the meaning given to information and telecommunications technology systems and services in section 16E.03, subdivision 1, paragraph (b).

 

(j) "Private entity" means any individual, corporation, company, partnership, firm, association, or other entity, but does not include a public agency, or a foreign government, or any component thereof.

 

(k) "Public agency" means any public agency of the state or any political subdivision; school districts; charter schools; intermediate districts; cooperative units under section 123A.24, subdivision 2; and public postsecondary education institutions.

 

(l) "Superintendent" means the superintendent of the Bureau of Criminal Apprehension.

 

Subd. 2.  Report on cybersecurity incidents.  (a) Beginning December 1, 2024, the head of or the decision‑making body for a public agency must report a cybersecurity incident that impacts the public agency to the commissioner.  A government contractor or vendor that provides goods or services to a public agency must report a cybersecurity incident to the public agency if the incident impacts the public agency.

 

(b) The report must be made within 72 hours of when the public agency or government contractor reasonably identifies or believes that a cybersecurity incident has occurred.

 

(c) The commissioner must coordinate with the superintendent to promptly share reported cybersecurity incidents.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13847

(d) By September 30, 2024, the commissioner, in coordination with the superintendent, must establish a cyber incident reporting system having capabilities to facilitate submission of timely, secure, and confidential cybersecurity incident notifications from public agencies, government contractors, and private entities to the office.

 

(e) By September 30, 2024, the commissioner must develop, in coordination with the superintendent, and prominently post instructions for submitting cybersecurity incident reports on the department and bureau websites.  The instructions must include, at a minimum, the types of cybersecurity incidents to be reported and a list of other information to be included in a report made through the cyber incident reporting system.

 

(f) The cyber incident reporting system must permit the commissioner, in coordination with the superintendent, to:

 

(1) securely accept a cybersecurity incident notification from any individual or private entity, regardless of whether the entity is a public agency or government contractor;

 

(2) track and identify trends in cybersecurity incidents reported through the cyber incident reporting system; and

 

(3) produce reports on the types of incidents, cyber threat, indicators, defensive measures, and entities reported through the cyber incident reporting system.

 

(g) Any cybersecurity incident report submitted to the commissioner is security information pursuant to section 13.37, is not discoverable in a civil or criminal action absent a court order or a search warrant, and is not subject to subpoena.

 

(h) Notwithstanding the provisions of paragraph (g), the commissioner may anonymize and share cyber threat indicators and relevant defensive measures to help prevent attacks and share cybersecurity incident notifications with potentially impacted parties through cybersecurity threat bulletins or relevant law enforcement authorities.

 

(i) Information submitted to the commissioner through the cyber incident reporting system is subject to privacy and protection procedures developed and implemented by the office, which shall be based on the comparable privacy protection procedures developed for information received and shared pursuant to the federal Cybersecurity Information Sharing Act of 2015, United States Code, title 6, section 1501, et seq.

 

Subd. 3.  Annual report to the governor and legislature.  Beginning January 31, 2026, and annually thereafter, the commissioner, in coordination with the superintendent, must submit a report on its cyber security incident report collection and resolution activities to the governor and to the legislative commission on cybersecurity.  The report must include, at a minimum:

 

(1) information on the number of notifications received and a description of the cybersecurity incident types during the one-year period preceding the publication of the report;

 

(2) the categories of reporting entities that submitted cybersecurity reports; and

 

(3) any other information required in the submission of a cybersecurity incident report, noting any changes from the report published in the previous year.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13848

Sec. 36.  Minnesota Statutes 2022, section 43A.316, subdivision 5, is amended to read:

 

Subd. 5.  Public employee participation.  (a) Participation in the program is subject to the conditions in this subdivision.

 

(b) Each exclusive representative for an eligible employer determines whether the employees it represents will participate in the program.  The exclusive representative shall give the employer notice of intent to participate at least 30 days before the expiration date of the collective bargaining agreement preceding the collective bargaining agreement that covers the date of entry into the program.  The exclusive representative and the eligible employer shall give notice to the commissioner of the determination to participate in the program at least 30 days before entry into the program.  Entry into the program is governed by a schedule established by the commissioner.

 

(c) Employees not represented by exclusive representatives may become members of the program upon a determination of an eligible employer to include these employees in the program.  Either all or none of the employer's unrepresented employees must participate.  The eligible employer shall give at least 30 days' notice to the commissioner before entering the program.  Entry into the program is governed by a schedule established by the commissioner.

 

(d) Participation in the program is for a two-year four-year term.  Participation is automatically renewed for an additional two-year four-year term unless the exclusive representative, or the employer for unrepresented employees, gives the commissioner notice of withdrawal at least 30 days before expiration of the participation period.  A group that withdraws must wait two years before rejoining.  An exclusive representative, or employer for unrepresented employees, may also withdraw if premiums increase 50 20 percent or more from one insurance year to the next.

 

(e) The exclusive representative shall give the employer notice of intent to withdraw to the commissioner at least 30 days before the expiration date of a collective bargaining agreement that includes the date on which the term of participation expires.

 

(f) Each participating eligible employer shall notify the commissioner of names of individuals who will be participating within two weeks of the commissioner receiving notice of the parties' intent to participate.  The employer shall also submit other information as required by the commissioner for administration of the program.

 

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

 

Sec. 37.  Minnesota Statutes 2022, section 211B.33, subdivision 2, is amended to read:

 

Subd. 2.  Recommendation.  (a) If the administrative law judge determines that the complaint does not set forth a prima facie violation of chapter 211A or 211B, the administrative law judge must dismiss the complaint.

 

(b) If the administrative law judge determines that the complaint sets forth a prima facie violation of section 211B.06 and was filed within 60 days before the primary or special election or within 90 days before the general election to which the complaint relates, the administrative law judge must conduct an expedited probable cause hearing under section 211B.34.

 

(c) (b) If the administrative law judge determines that the complaint sets forth a prima facie violation of a provision of chapter 211A or 211B, other than section 211B.06, and that the complaint was filed within 60 days before the primary or special election or within 90 days before the general election to which the complaint relates, the administrative law judge, on request of any party, must conduct an expedited probable cause hearing under section 211B.34.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13849

(d) (c) If the administrative law judge determines that the complaint sets forth a prima facie violation of chapter 211A or 211B, and was filed more than not filed within 60 days before the primary or special election or more than 90 days before the general election to which the complaint relates, the administrative law judge must schedule an evidentiary hearing under section 211B.35.

 

Sec. 38.  Minnesota Statutes 2022, section 211B.34, subdivision 1, is amended to read:

 

Subdivision 1.  Time for review.  The assigned administrative law judge must hold a probable cause hearing on the complaint no later than three business days after receiving the assignment if determining the complaint sets forth a prima facie violation of chapter 211A or 211B, an expedited hearing is required by section 211B.33, except that for good cause the administrative law judge may hold the hearing no later than seven days after receiving the assignment the prima facie determination.  If an expedited hearing is not required by section 211B.33, because no party requested one under section 211B.33, subdivision 2, paragraph (b), the administrative law judge must hold the hearing not later than 30 days after receiving the assignment determining the complaint sets forth a prima facie violation of chapter 211A or 211B.

 

Sec. 39.  Minnesota Statutes 2022, section 211B.34, subdivision 2, is amended to read:

 

Subd. 2.  Disposition.  At After the probable cause hearing, the administrative law judge must make one of the following determinations within three business days after the hearing record closes:

 

(a) The complaint is frivolous, or there is no probable cause to believe that the violation of law alleged in the complaint has occurred.  If the administrative law judge makes either determination, the administrative law judge must dismiss the complaint.

 

(b) There is probable cause to believe that the violation of law alleged in the complaint has occurred.  If the administrative law judge so determines, the chief administrative law judge must schedule the complaint for an evidentiary hearing under section 211B.35.

 

Sec. 40.  Minnesota Statutes 2022, section 211B.35, subdivision 1, is amended to read:

 

Subdivision 1.  Deadline for hearing.  When required by section 211B.33, subdivision 2, paragraph (c), or by section 211B.34, subdivision 2 or 3, the chief administrative law judge must assign the complaint to a panel of three administrative law judges for an evidentiary hearing.  The hearing must be held within the following times:

 

(1) ten days after the complaint was assigned to the panel, if an expedited probable cause hearing was requested or required under section 211B.33;

 

(2) 30 days after the complaint was filed, if it was filed within 60 days before the primary or special election or within 90 days before the general election to which the complaint relates; or

 

(3) 90 days after the complaint was filed, if it was filed at any other time.

 

For good cause shown, the panel may extend the deadline set forth in clause (2) or (3) by 60 days.

 

Sec. 41.  Minnesota Statutes 2022, section 211B.35, subdivision 3, is amended to read:

 

Subd. 3.  Time for disposition.  The panel must dispose of the complaint:

 

(1) within three business days after the hearing record closes, if an expedited probable cause hearing was required by section 211B.33; and


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13850

(2) within 14 days after the hearing record closes, if an expedited probable cause hearing was not required by section 211B.33.

 

Sec. 42.  Minnesota Statutes 2022, section 299E.01, subdivision 2, is amended to read:

 

Subd. 2.  Responsibilities.  (a) The division shall be responsible and shall utilize state employees for security and public information services in state-owned buildings and state leased-to-own buildings in the Capitol Area, as described in section 15B.02.  It shall provide personnel as are required by the circumstances to insure the orderly conduct of state business and the convenience of the public.  It shall provide emergency assistance and security escorts at any location within the Capitol Area, as described in section 15B.02, when requested by a state constitutional officer.

 

(b) As part of the division permanent staff, the director must establish the position of emergency manager that includes, at a minimum, the following duties:

 

(1) oversight of the consolidation, development, and maintenance of plans and procedures that provide continuity of security operations;

 

(2) the development and implementation of tenant training that addresses threats and emergency procedures; and

 

(3) the development and implementation of threat and emergency exercises.

 

(c) The director must provide a minimum of one state trooper assigned to the Capitol complex at all times.

 

(d) The director, in consultation with the advisory committee under section 299E.04, shall, at least annually, hold a meeting or meetings to discuss, among other issues, Capitol complex security, emergency planning, public safety, and public access to the Capitol complex.  The meetings must include, at a minimum:

 

(1) Capitol complex tenants and state employees;

 

(2) nongovernmental entities, such as lobbyists, vendors, and the media; and

 

(3) the public and public advocacy groups.

 

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

 

Sec. 43.  Minnesota Statutes 2023 Supplement, section 307.08, subdivision 3a, is amended to read:

 

Subd. 3a.  Cemeteries; records and condition assessments.  (a) Cemeteries shall be assessed according to this subdivision.

 

(b) The state archaeologist shall implement and maintain a system of records identifying the location of known, recorded, or suspected cemeteries.  The state archaeologist shall provide access to the records as provided in subdivision 11.

 

(c) The cemetery condition assessment of non-American Indian cemeteries is at the discretion of the state archaeologist based on the needs identified in this section or upon request by an agency, a landowner, or other appropriate authority.

 

(d) The cemetery condition assessment of American Indian cemeteries is at the discretion of the Indian Affairs Council based on the needs identified in this section or upon request by an agency, a landowner, or other appropriate authority.  If the Indian Affairs Council has possession or takes custody of remains they may follow United States Code, title 25, sections 3001 to 3013.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13851

(e) The cemetery condition assessment of cemeteries that include American Indian and non-American Indian remains or include remains whose ancestry cannot be determined shall be assessed at the discretion of the state archaeologist in collaboration with the Indian Affairs Council based on the needs identified in this section or upon request by an agency, a landowner, or other appropriate authority.

 

(f) The state archaeologist and the Indian Affairs Council shall have 90 days from the date a request is received to begin a cemetery condition assessment or provide notice to the requester whether or not a condition assessment of a cemetery is needed.

 

(g) The state archaeologist and the Indian Affairs Council may retain the services of a qualified professional archaeologist, a qualified forensic anthropologist, or other appropriate experts for the purpose of gathering information that the state archaeologist or the Indian Affairs Council can use to assess or identify cemeteries.  If probable American Indian cemeteries are to be disturbed or probable American Indian remains analyzed, the Indian Affairs Council must approve the professional archaeologist, qualified anthropologist, or other appropriate expert.

 

Sec. 44.  Minnesota Statutes 2022, section 326.10, subdivision 8, is amended to read:

 

Subd. 8.  Expiration and renewal.  (a) All licenses and certificates, other than in-training certificates, issued by the board expire at midnight on June 30 of each even-numbered calendar year if not renewed.  A holder of a license or certificate issued by the board may renew it by completing and filing with the board an application for renewal consisting of a fully completed form provided by the board and the fee specified in section 326.105.  Both the fee and the application must be submitted at the same time and by June 30 of each even-numbered calendar year.  The form must be signed by the applicant, contain all of the information requested, and clearly show that the licensee or certificate holder has completed the minimum number of required professional development hours or has been granted an exemption under section 326.107, subdivision 4.  An application for renewal that does not comply with the requirements of this subdivision is an incomplete application and must not be accepted by the board.

 

(b) No later than 30 days before the expiration of a license or certificate, the board must send the holder of the license or certificate a notice by email that the license or certificate is about to expire.  The notice must include information on the process and requirements for renewal.  The application form for a new or renewed license or certificate issued by the board must request that the applicant provide an email address for the purpose of providing this notice.  If the board does not have a record of a license or certificate holder's email address, the board must send the notice to the holder by standard mail.

 

EFFECTIVE DATE.  This section is effective August 1, 2024, and applies to licenses and renewals scheduled to expire on or after that date.

 

Sec. 45.  Minnesota Statutes 2022, section 326A.04, subdivision 4, is amended to read:

 

Subd. 4.  Program of learning.  Each licensee shall participate in a program of learning designed to maintain professional competency.  The program of learning must comply with rules adopted by the board.  The board may by rule create an exception to this requirement for licensees who do not perform or offer to perform for the public one or more kinds of services involving the use of auditing skills, including issuance of reports on:  attest or compilation engagements, management advisory services, financial advisory services, or consulting services.  A licensee granted such an exception by the board must place the word "inactive" or "retired," if applicable, adjacent to the CPA title on any business card, letterhead, or any other document or device, with the exception of the licensee's certificate on which the CPA title appears.  The board must not conduct an audit of a licensee's compliance with these requirements during the 60 days prior to the deadline for filing an individual income tax return under section 289A.18, subdivision 1.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13852

Sec. 46.  Minnesota Statutes 2022, section 336.1-110, is amended to read:

 

336.1-110 UNIFORM COMMERCIAL CODE ACCOUNT.

 

The Uniform Commercial Code account is established as an account in the state treasury.  Fees that are not expressly set by statute but are charged by the secretary of state to offset the costs of providing a service under this chapter must be deposited in the state treasury and credited to the Uniform Commercial Code account.

 

Fees that are not expressly set by statute but are charged by the secretary of state to offset the costs of providing information contained in the computerized records maintained by the secretary of state must be deposited in the state treasury and credited to the Uniform Commercial Code account.

 

Money in the Uniform Commercial Code account is continuously appropriated to the secretary of state to implement and maintain the central filing system under this chapter, to provide, improve, and expand other online or remote lien and business entity filing, retrieval, and payment method services provided by the secretary of state, and to provide electronic access and to support, maintain, and expand all other computerized records and systems maintained by the secretary of state.

 

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

 

Sec. 47.  Minnesota Statutes 2022, section 358.645, subdivision 2, is amended to read:

 

Subd. 2.  Qualifications; registration required.  (a) A remote online notary public:

 

(1) is a notary public for purposes of chapter 359 and is subject to and must be appointed and commissioned under that chapter;

 

(2) may perform notarial acts as provided by this chapter and chapter 359 in addition to performing remote online notarizations; and

 

(3) may perform remote online notarizations authorized under this section.

 

(b) A notary public commissioned in this state may apply for remote online notarization registration according to this section.  Before a notary performs a remote online notarization, the notary must register the capability to perform notarial acts pursuant to section 358.645 with the secretary of state according to section 359.01, subdivision 5, and must certify that the notary intends to use communication technology that conforms to this section.

 

(c) Unless terminated under this section, the term of registration to perform remote online notarial acts begins on the registration starting date set by the secretary of state and continues as long as the notary public's current commission to perform notarial acts remains valid.

 

(d) Upon the applicant's fulfillment of the requirements for remote online notarization registration under this section, the secretary of state shall record the registration under the applicant's notary public commission number.

 

(e) The secretary of state may reject a registration application if the applicant fails to comply with paragraphs (a) to (d).  The commissioner of commerce may revoke a registration if the applicant fails to comply with subdivisions 2 to 6.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13853

Sec. 48.  Minnesota Statutes 2022, section 358.71, is amended to read:

 

358.71 DATABASE OF NOTARIES PUBLIC.

 

The secretary of state shall maintain an electronic database of notaries public:

 

(1) through which a person may verify the authority of a notary public to perform notarial acts, including notarial acts pursuant to section 358.645;, and to perform notarial acts on electronic records.

 

(2) which indicates whether a notary public has applied to the commissioning officer or agency to perform notarial acts on electronic records or to perform notarial acts pursuant to section 358.645.

 

Sec. 49.  Minnesota Statutes 2022, section 359.01, subdivision 5, is amended to read:

 

Subd. 5.  Registration to perform electronic notarizations.  Before performing electronic notarial acts, a notary public shall register the capability to notarize electronically with the secretary of state.  Before performing electronic notarial acts after recommissioning, a notary public shall reregister with the secretary of state.  Unless terminated for any reason, the term of registration to perform electronic notarial acts begins on the registration starting date set by the secretary of state and continues as long as the notary public has a valid commission to perform notarial acts.  The requirements of this chapter relating to electronic notarial acts do not apply to notarial acts performed under sections 358.15, paragraph (a), clause (4), and 358.60, subdivision 1, clause (2).

 

Sec. 50.  Minnesota Statutes 2022, section 359.03, subdivision 3, is amended to read:

 

Subd. 3.  Specifications.  (a) The official notarial stamp consists of the seal of the state of Minnesota, the name of the notary as it appears on the commission or the name of the ex officio notary, the words "Notary Public," or "Notarial Officer" in the case of an ex officio notary, and the words "My commission expires ...............  (or where applicable) My term is indeterminate," with the expiration date shown on it and must be able to be reproduced in any legibly reproducible manner.  The official notarial stamp shall be a rectangular form of not more than three‑fourths of an inch vertically by 2-1/2 inches horizontally, with a serrated or milled edge border, and shall contain the information required by this subdivision.

 

(b) A notarial stamp that complied with these requirements at the time of issuance may continue to be used during the remainder of the current term of the notary even if changes to any of these requirements subsequently become effective.

 

Sec. 51.  STATE CAPITOL; MANAGEMENT OF SPACE.

 

Notwithstanding any law or space use agreements to the contrary, the commissioner of administration must allocate the first floor, North corridor adjoining rooms 107 and 112 of the State Capitol building to the use and management of the house of representatives during any period in which the legislature is convened in regular or special session.  During these periods, public use of the space must not interfere with the conduct of legislative business or the security of legislators or legislative staff, and events and other programs scheduled within the space must only be permitted if approved by the speaker of the house.

 

Sec. 52.  REPEALER; FALSE POLITICAL AND CAMPAIGN MATERIAL.

 

Minnesota Statutes 2022, section 211B.06, is repealed.

 

Sec. 53.  REPEALER; FEDERAL EDUCATION LAW IMPLEMENTATION REPORT.

 

Minnesota Statutes 2022, section 127A.095, subdivision 3, is repealed.

 

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


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13854

Sec. 54.  REPEALER; DEPARTMENT OF INFORMATION TECHNOLOGY SERVICES PROVISIONS.

 

Minnesota Statutes 2022, sections 16E.035; 16E.0465, subdivisions 1 and 2; 16E.055; and 16E.20, are repealed.

 

ARTICLE 3

LOCAL GOVERNMENT POLICY

 

Section 1.  Minnesota Statutes 2022, section 383B.145, subdivision 5, is amended to read:

 

Subd. 5.  Set-aside contracts.  (a) Notwithstanding any other law to the contrary, the board may set aside an amount, for each fiscal year, for awarding contracts to businesses and social services organizations which have a majority of employees that employ persons who would be eligible for public assistance or who would require rehabilitative services in the absence of their employment.  The set-aside amount may not exceed two percent of the amount appropriated by the board in the budget for the preceding fiscal year.  Failure by the board to designate particular procurements for the set-aside program shall not prevent vendors from seeking the procurement award through the normal solicitation and bidding processes pursuant to the provisions of the Uniform Municipal Contracting Act, section 471.345.

 

(b) The board may elect to use a negotiated price or bid contract procedure in the awarding of a procurement contract under the set-aside program.  The amount of the award shall not exceed by more than five percent the estimated price for the goods or services, if they were to be purchased on the open market and not under the set‑aside program.

 

(c) Before contracting with a business or social service organization under the set-aside program, the board or authorized person shall conduct an investigation of the business or social service organization with whom it seeks to contract and shall make findings, to be contained in the provisions of the contract, that:

 

(1) the vendor either:

 

(i) has in its employ at least 50 percent of its employees who would be eligible to receive some form of public assistance or other rehabilitative services in the absence of the award of a contract to the vendor; or

 

(ii) if the vendor is a business providing construction services, has in its employ to deliver the set-aside contract as many employees who would be eligible to receive some form of public assistance or other rehabilitative services in the absence of the award of a contract to the vendor as is practicable in consideration of industry safety standards, established supervisory ratios for apprentices, and requirements for licensed persons to perform certain work;

 

(2) the vendor has elected to apply to the board for a contract under the set-aside provisions; and

 

(3) the vendor is able to perform the set-aside contract.

 

(d) The board shall publicize the provisions of the set-aside program, attempt to locate vendors able to perform set-aside procurement contracts and otherwise encourage participation therein.

 

Sec. 2.  Minnesota Statutes 2023 Supplement, section 473.145, is amended to read:

 

473.145 DEVELOPMENT GUIDE.

 

(a) The Metropolitan Council must prepare and adopt, after appropriate study and such public hearings as may be necessary, a comprehensive development guide for the metropolitan area.  It must consist of a compilation of policy statements, goals, standards, programs, and maps prescribing guides for the orderly and economical


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13855

development, public and private, of the metropolitan area.  The comprehensive development guide must recognize and encompass physical, social, or economic needs of the metropolitan area and those future developments which will have an impact on the entire area including but not limited to such matters as land use, climate mitigation and adaptation, parks and open space land needs, the necessity for and location of airports, highways, transit facilities, public hospitals, libraries, schools, and other public buildings.

 

(b) For the purposes of this section, "climate mitigation and adaptation" includes mitigation goals and strategies that meet or exceed the greenhouse gas emissions-reduction goals established by the state under section 216H.02, subdivision 1, and transportation targets established by the commissioner of transportation, including vehicle miles traveled reduction targets established in the statewide multimodal transportation plan under section 174.03, subdivision 1a, as well as plans and policies to address climate adaptation in the region.  The commissioner of transportation must consult with the Metropolitan Council on transportation targets prior to establishing the targets.

 

(c) The adoption or amendment of a comprehensive plan, fiscal device, or official control that is consistent with or approved in connection with sections 473.858 to 473.865 shall not constitute conduct that causes or is likely to cause pollution, impairment, or destruction, as defined under section 116B.02, subdivision 5.  Nothing in this paragraph prevents a challenge under chapter 116B to an individual project, as defined under Minnesota Rules, part 4410.0200, subpart 65.

 

Sec. 3.  ANOKA COUNTY; JAIL AND CRIMINAL JUSTICE CENTER.

 

Subdivision 1.  Jail and criminal justice center.  Notwithstanding Minnesota Statutes, section 373.05, Anoka County may build a jail and criminal justice center in any city located within the county to replace the current jail located in the city of Anoka.

 

Subd. 2.  Sheriff's office.  Notwithstanding Minnesota Statutes, section 382.04, the sheriff of Anoka County may keep the sheriff's office in the jail and criminal justice center authorized under subdivision 1 instead of in the county seat.

 

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

 

Sec. 4.  REPEALER.

 

(a) Minnesota Statutes 2022, section 471.9998, is repealed.

 

(b) Laws 1979, chapter 189, sections 1; 2, as amended by Laws 1984, chapter 548, section 8; and 3, are repealed.

 

EFFECTIVE DATE.  Paragraph (a) is effective the day following final enactment.  Paragraph (b) is effective the day after the governing body of the city of St. Paul and its chief clerical officer timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3."

 

Delete the title and insert:

 

"A bill for an act relating to state government; specifying administrative courts and work product data; modifying the Administrative Procedure Act; modifying certain salaries of employees of the Office of Administrative Hearings; requiring certain grantees to establish a capital project replacement fund; making technical changes to Department of Administration, Department of Information Technology Services, and state personnel management provisions; establishing a state building renewable energy, storage, and electric vehicle account; changing a reporting date for report of uncollectible debts; requiring reports of cybersecurity incidents; changing provisions for campaign practices complaints, cemeteries, certain licensed employment, Uniform Commercial Code, and notaries public; designating use of certain State Capitol space; modifying provisions for Hennepin County and


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13856

Metropolitan Council; allowing Anoka County to build a jail and criminal justice center; assessing penalties; requiring reports; transferring money from the general fund to the healthy and sustainable food options account; canceling certain funds; appropriating money; amending Minnesota Statutes 2022, sections 14.05, subdivision 7; 14.08; 14.16, subdivision 3; 14.26, subdivision 3a; 14.386; 14.388, subdivision 2; 14.3895, subdivisions 2, 6; 14.48, subdivision 2; 14.62, subdivision 2a; 15.994; 15A.083, subdivision 6a; 16B.055, subdivision 1; 16B.48, subdivision 4; 16B.54, subdivision 2; 16B.97, subdivision 1; 16B.98, subdivision 1; 16C.137, subdivision 2; 16D.09, subdivision 1; 16E.01, subdivision 2; 16E.03, subdivisions 3, 4, 5, 7; 16E.04, subdivisions 2, 3; 16E.07; 43A.316, subdivision 5; 211B.33, subdivision 2; 211B.34, subdivisions 1, 2; 211B.35, subdivisions 1, 3; 299E.01, subdivision 2; 326.10, subdivision 8; 326A.04, subdivision 4; 336.1-110; 358.645, subdivision 2; 358.71; 359.01, subdivision 5; 359.03, subdivision 3; 383B.145, subdivision 5; Minnesota Statutes 2023 Supplement, sections 10.65, subdivision 2; 16E.01, subdivision 3; 16E.03, subdivision 2; 307.08, subdivision 3a; 473.145; Laws 2023, chapter 62, article 1, section 11, subdivisions 2, 4; proposing coding for new law in Minnesota Statutes, chapters 13; 14; 16B; 16E; repealing Minnesota Statutes 2022, sections 16E.035; 16E.0465, subdivisions 1, 2; 16E.055; 16E.20; 127A.095, subdivision 3; 211B.06; 471.9998; Laws 1979, chapter 189, sections 1; 2, as amended; 3."

 

 

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

 

      The report was adopted.

 

 

Hassan from the Committee on Economic Development Finance and Policy to which was referred:

 

H. F. No. 3449, A bill for an act relating to economic development; making technical changes to certain appropriations; amending Laws 2023, chapter 53, article 15, section 32, subdivision 6.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

APPROPRIATIONS

 

Section 1.  Laws 2023, chapter 53, article 20, section 2, subdivision 1, is amended to read:

 

      Subdivision 1.  Total Appropriation

 

$382,802,000

 

$ 310,131,000 306,306,000

 

Appropriations by Fund

 

 

2024

 

2025

General

352,525,000

279,854,000 276,029,000

Remediation

700,000

700,000

Workforce  

 Development

 

30,277,000

 

30,277,000

 

The amounts that may be spent for each purpose are specified in the following subdivisions.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13857

Sec. 2.  Laws 2023, chapter 53, article 20, section 2, subdivision 2, is amended to read:

 

      Subd. 2.  Business and Community Development

 

195,061,000

 

139,929,000 136,104,000

 

Appropriations by Fund

 

General

193,011,000

137,879,000 134,054,000

Remediation

700,000

700,000

Workforce

 Development

 

1,350,000

 

1,350,000

 

(a) $2,287,000 each year is for the greater Minnesota business development public infrastructure grant program under Minnesota Statutes, section 116J.431.  This appropriation is available until June 30, 2027.

 

(b) $500,000 each year is for grants to small business development centers under Minnesota Statutes, section 116J.68.  Money made available under this paragraph may be used to match funds under the federal Small Business Development Center (SBDC) program under United States Code, title 15, section 648, to provide consulting and technical services or to build additional SBDC network capacity to serve entrepreneurs and small businesses.

 

(c) $2,500,000 each the first year is for Launch Minnesota.  These are This is a onetime appropriations appropriation.  Of this amount:

 

(1) $1,500,000 each year is for innovation grants to eligible Minnesota entrepreneurs or start-up businesses to assist with their operating needs;

 

(2) $500,000 each year is for administration of Launch Minnesota; and

 

(3) $500,000 each year is for grantee activities at Launch Minnesota.

 

(d)(1) $500,000 each year is for grants to MNSBIR, Inc., to support moving scientific excellence and technological innovation from the lab to the market for start-ups and small businesses by securing federal research and development funding.  The purpose of the grant is to build a strong Minnesota economy and stimulate the creation of novel products, services, and solutions in the private sector; strengthen the role of small business in meeting federal research and development needs; increase the commercial application of federally supported research results; and develop and increase the Minnesota workforce, especially by fostering and encouraging participation by small businesses owned by women and people who are Black, Indigenous, or people of color.  This is a onetime appropriation.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13858

(2) MNSBIR, Inc., shall use the grant money to be the dedicated resource for federal research and development for small businesses of up to 500 employees statewide to support research and commercialization of novel ideas, concepts, and projects into cutting-edge products and services for worldwide economic impact.  MNSBIR, Inc., shall use grant money to:

 

(i) assist small businesses in securing federal research and development funding, including the Small Business Innovation Research and Small Business Technology Transfer programs and other federal research and development funding opportunities;

 

(ii) support technology transfer and commercialization from the University of Minnesota, Mayo Clinic, and federal laboratories;

 

(iii) partner with large businesses;

 

(iv) conduct statewide outreach, education, and training on federal rules, regulations, and requirements;

 

(v) assist with scientific and technical writing;

 

(vi) help manage federal grants and contracts; and

 

(vii) support cost accounting and sole-source procurement opportunities.

 

(e) $10,000,000 the first year is for the Minnesota Expanding Opportunity Fund Program under Minnesota Statutes, section 116J.8733.  This is a onetime appropriation and is available until June 30, 2025.

 

(f) $6,425,000 each year is for the small business assistance partnerships program under Minnesota Statutes, section 116J.682.  All grant awards shall be for two consecutive years.  Grants shall be awarded in the first year.  The department may use up to five percent of the appropriation for administrative purposes.  The base for this appropriation is $2,725,000 in fiscal year 2026 and each year thereafter.

 

(g) $350,000 each year is for administration of the community energy transition office.

 

(h) $5,000,000 each year is transferred from the general fund to the community energy transition account for grants under Minnesota Statutes, section 116J.55.  This is a onetime transfer.

 

(i) $1,772,000 each year is for contaminated site cleanup and development grants under Minnesota Statutes, sections 116J.551 to 116J.558.  This appropriation is available until expended.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13859

(j) $700,000 each year is from the remediation fund for contaminated site cleanup and development grants under Minnesota Statutes, sections 116J.551 to 116J.558.  This appropriation is available until expended.

 

(k) $389,000 each year is for the Center for Rural Policy and Development.  The base for this appropriation is $139,000 in fiscal year 2026 and each year thereafter.

 

(l) $25,000 each year is for the administration of state aid for the Destination Medical Center under Minnesota Statutes, sections 469.40 to 469.47.

 

(m) $875,000 each year is for the host community economic development program established in Minnesota Statutes, section 116J.548.

 

(n) $6,500,000 each year is for grants to local communities to increase the number of quality child care providers to support economic development.  Fifty percent of grant money must go to communities located outside the seven-county metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2.  The base for this appropriation is $1,500,000 in fiscal year 2026 and each year thereafter.

 

Grant recipients must obtain a 50 percent nonstate match to grant money in either cash or in-kind contribution, unless the commissioner waives the requirement.  Grant money available under this subdivision must be used to implement projects to reduce the child care shortage in the state, including but not limited to funding for child care business start-ups or expansion, training, facility modifications, direct subsidies or incentives to retain employees, or improvements required for licensing, and assistance with licensing and other regulatory requirements.  In awarding grants, the commissioner must give priority to communities that have demonstrated a shortage of child care providers.

 

Within one year of receiving grant money, grant recipients must report to the commissioner on the outcomes of the grant program, including but not limited to the number of new providers, the number of additional child care provider jobs created, the number of additional child care openings, and the amount of cash and in-kind local money invested.  Within one month of all grant recipients reporting on program outcomes, the commissioner must report the grant recipients' outcomes to the chairs and ranking members of the legislative committees with jurisdiction over early learning and child care and economic development.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13860

(o) $500,000 each year is for the Office of Child Care Community Partnerships.  Of this amount:

 

(1) $450,000 each year is for administration of the Office of Child Care Community Partnerships; and

 

(2) $50,000 each year is for the Labor Market Information Office to conduct research and analysis related to the child care industry.

 

(p) $3,500,000 each year is for grants in equal amounts to each of the Minnesota Initiative Foundations.  This appropriation is available until June 30, 2027.  The base for this appropriation is $1,000,000 in fiscal year 2026 and each year thereafter.  The Minnesota Initiative Foundations must use grant money under this section to:

 

(1) facilitate planning processes for rural communities resulting in a community solution action plan that guides decision making to sustain and increase the supply of quality child care in the region to support economic development;

 

(2) engage the private sector to invest local resources to support the community solution action plan and ensure quality child care is a vital component of additional regional economic development planning processes;

 

(3) provide locally based training and technical assistance to rural business owners individually or through a learning cohort.  Access to financial and business development assistance must prepare child care businesses for quality engagement and improvement by stabilizing operations, leveraging funding from other sources, and fostering business acumen that allows child care businesses to plan for and afford the cost of providing quality child care; and

 

(4) recruit child care programs to participate in quality rating and improvement measurement programs.  The Minnesota Initiative Foundations must work with local partners to provide low-cost training, professional development opportunities, and continuing education curricula.  The Minnesota Initiative Foundations must fund, through local partners, an enhanced level of coaching to rural child care providers to obtain a quality rating through measurement programs.

 

(q) $8,000,000 each year is for the Minnesota job creation fund under Minnesota Statutes, section 116J.8748.  Of this amount, the commissioner of employment and economic development may use up to three percent for administrative expenses.  This appropriation is available until expended.  Notwithstanding Minnesota Statutes, section 116J.8748, money appropriated for the job creation fund may be used for redevelopment under Minnesota Statutes, sections 116J.575 and 116J.5761, at the discretion of the commissioner.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13861

(r) $12,370,000 each year is for the Minnesota investment fund under Minnesota Statutes, section 116J.8731.  Of this amount, the commissioner of employment and economic development may use up to three percent for administration and monitoring of the program.  This appropriation is available until expended.  Notwithstanding Minnesota Statutes, section 116J.8731, money appropriated to the commissioner for the Minnesota investment fund may be used for the redevelopment program under Minnesota Statutes, sections 116J.575 and 116J.5761, at the discretion of the commissioner.  Grants under this paragraph are not subject to the grant amount limitation under Minnesota Statutes, section 116J.8731.

 

(s) $4,246,000 each year is for the redevelopment program under Minnesota Statutes, sections 116J.575 and 116J.5761.  The base for this appropriation is $2,246,000 in fiscal year 2026 and each year thereafter.  This appropriation is available until expended.

 

(t) $1,000,000 each year is for the Minnesota emerging entrepreneur loan program under Minnesota Statutes, section 116M.18.  Money available under this paragraph is for transfer into the emerging entrepreneur program special revenue fund account created under Minnesota Statutes, chapter 116M, and are available until expended.  Of this amount, up to four percent is for administration and monitoring of the program.

 

(u) $325,000 each the first year is for the Minnesota Film and TV Board.  The appropriation each year is available only upon receipt by the board of $1 in matching contributions of money or in-kind contributions from nonstate sources for every $3 provided by this appropriation, except that each year up to $50,000 is available on July 1 even if the required matching contribution has not been received by that date.  This is a onetime appropriation.

 

(v) $12,000 each year is for a grant to the Upper Minnesota Film Office.

 

(w) $500,000 each the first year is for a grant to the Minnesota Film and TV Board for the film production jobs program under Minnesota Statutes, section 116U.26.  This appropriation is available until June 30, 2027.  This is a onetime appropriation.

 

(x) $4,195,000 each year is for the Minnesota job skills partnership program under Minnesota Statutes, sections 116L.01 to 116L.17.  If the appropriation for either year is insufficient, the appropriation for the other year is available.  This appropriation is available until expended.

 

(y) $1,350,000 each year from the workforce development fund is for jobs training grants under Minnesota Statutes, section 116L.41.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13862

(z) $47,475,000 each year is for the PROMISE grant program.  This is a onetime appropriation and is available until June 30, 2027.  Of this amount:

 

(1) $475,000 each year is for administration of the PROMISE grant program;

 

(2) $7,500,000 each year is for grants in equal amounts to each of the Minnesota Initiative Foundations to serve businesses in greater Minnesota.  Of this amount, $600,000 each year is for grants to businesses with less than $100,000 in revenue in the prior year; and

 

(3) $39,500,000 each year is for grants to the Neighborhood Development Center.  Of this amount, the following amounts are designated for the following areas:

 

(i) $16,000,000 each year is for North Minneapolis' West Broadway, Camden, or other Northside neighborhoods.  Of this amount, $1,000,000 each year is for grants to businesses with less than $100,000 in revenue in the prior year;

 

(ii) $13,500,000 each year is for South Minneapolis' Lake Street, 38th and Chicago, Franklin, Nicollet, and Riverside corridors.  Of this amount, $750,000 each year is for grants to businesses with less than $100,000 in revenue in the prior year; and

 

(iii) $10,000,000 each year is for St. Paul's University Avenue, Midway, Eastside, or other St. Paul neighborhoods.  Of this amount, $750,000 each year is for grants to businesses with less than $100,000 in revenue in the prior year.

 

(aa) $15,150,000 each year is for the PROMISE loan program.  This is a onetime appropriation and is available until June 30, 2027.  Of this amount:

 

(1) $150,000 each year is for administration of the PROMISE loan program;

 

(2) $3,000,000 each year is for grants in equal amounts to each of the Minnesota Initiative Foundations to serve businesses in greater Minnesota; and

 

(3) $12,000,000 each year is for grants to the Metropolitan Economic Development Association (MEDA).  Of this amount, the following amounts are designated for the following areas:

 

(i) $4,500,000 each year is for North Minneapolis' West Broadway, Camden, or other Northside neighborhoods;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13863

(ii) $4,500,000 each year is for South Minneapolis' Lake Street, 38th and Chicago, Franklin, Nicollet, and Riverside corridors; and

 

(iii) $3,000,000 each year is for St. Paul's University Avenue, Midway, Eastside, or other St. Paul neighborhoods.

 

(bb) $1,500,000 each year is for a grant to the Metropolitan Consortium of Community Developers for the community wealth‑building grant program pilot project.  Of this amount, up to two percent is for administration and monitoring of the community wealth-building grant program pilot project.  This is a onetime appropriation.

 

(cc) $250,000 each year is for the publication, dissemination, and use of labor market information under Minnesota Statutes, section 116J.401.

 

(dd) $5,000,000 the first year is for a grant to the Bloomington Port Authority to provide funding for the Expo 2027 host organization.  The Bloomington Port Authority must enter into an agreement with the host organization over the use of money, which may be used for activities, including but not limited to finalizing the community dossier and staffing the host organization and for infrastructure design and planning, financial modeling, development planning and coordination of both real estate and public private partnerships, and reimbursement of costs the Bloomington Port Authority incurred.  In selecting vendors and exhibitors for Expo 2027, the host organization shall prioritize outreach to, collaboration with, and inclusion of businesses that are majority owned by people of color, women, and people with disabilities.  The host organization and Bloomington Port Authority may be reimbursed for expenses 90 days prior to encumbrance.  This appropriation is contingent on approval of the project by the Bureau International des Expositions.  If the project is not approved by the Bureau International des Expositions, the money shall transfer to the Minnesota investment fund under Minnesota Statutes, section 116J.8731.  Any unencumbered balance remaining at the end of the first year does not cancel but is available for the second year.

 

(ee) $5,000,000 the first year is for a grant to the Neighborhood Development Center for small business programs, including training, lending, business services, and real estate programming; small business incubator development in the Twin Cities and outside the seven-county metropolitan area; and technical assistance activities for partners outside the seven-county metropolitan area; and for high-risk, character-based loan capital for nonrecourse loans.  This is a onetime appropriation.  Any unencumbered balance remaining at the end of the first year does not cancel but is available for the second year.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13864

(ff) $5,000,000 the first year is for transfer to the emerging developer fund account in the special revenue fund.  Of this amount, up to five percent is for administration and monitoring of the emerging developer fund program under Minnesota Statutes, section 116J.9926, and the remainder is for a grant to the Local Initiatives Support Corporation - Twin Cities to serve as a partner organization under the program.  This is a onetime appropriation.

 

(gg) $5,000,000 the first year is for the Canadian border counties economic relief program under article 5.  Of this amount, up to $1,000,000 is for Tribal economic development and $2,100,000 is for a grant to Lake of the Woods County for the forgivable loan program for remote recreational businesses.  This is a onetime appropriation and is available until June 30, 2026.

 

(hh) $1,000,000 each year is for a grant to African Economic Development Solutions.  This is a onetime appropriation and is available until June 30, 2026.  Of this amount:

 

(1) $500,000 each year is for a loan fund that must address pervasive economic inequities by supporting business ventures of entrepreneurs in the African immigrant community; and

 

(2) $250,000 each year is for workforce development and technical assistance, including but not limited to business development, entrepreneur training, business technical assistance, loan packing, and community development services.

 

(ii) $1,500,000 each year is for a grant to the Latino Economic Development Center.  This is a onetime appropriation and is available until June 30, 2025.  Of this amount:

 

(1) $750,000 each year is to assist, support, finance, and launch microentrepreneurs by delivering training, workshops, and one‑on‑one consultations to businesses; and

 

(2) $750,000 each year is to guide prospective entrepreneurs in their start-up process by introducing them to key business concepts, including business start-up readiness.  Grant proceeds must be used to offer workshops on a variety of topics throughout the year, including finance, customer service, food-handler training, and food-safety certification.  Grant proceeds may also be used to provide lending to business startups. 

 

(jj) $627,000 the first year is for a grant to Community and Economic Development Associates (CEDA) to provide funding for economic development technical assistance and economic development project grants to small communities across rural Minnesota and for CEDA to design, implement, market, and administer specific types of basic community and economic development programs tailored to individual community needs. 


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13865

Technical assistance grants shall be based on need and given to communities that are otherwise unable to afford these services.  Of the amount appropriated, up to $270,000 may be used for economic development project implementation in conjunction with the technical assistance received.  This is a onetime appropriation.  Any unencumbered balance remaining at the end of the first year does not cancel but is available the second year. 

 

(kk) $2,000,000 the first year is for a grant to WomenVenture to:

 

(1) 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; and

 

(2) support business expansion for women food entrepreneurs throughout Minnesota's food supply chain to help stabilize and strengthen their business operations, create distribution networks, offer technical assistance and support to beginning women food entrepreneurs, develop business plans, develop a workforce, research expansion strategies, and for other related activities. 

 

Eligible uses of the money include but are not limited to:

 

(i) leasehold improvements;

 

(ii) additions, alterations, remodeling, or renovations to rented space;

 

(iii) inventory or supplies;

 

(iv) machinery or equipment purchases;

 

(v) working capital; and

 

(vi) debt refinancing.

 

Money distributed to entrepreneurs may be loans, forgivable loans, and grants.  Of this amount, up to five percent may be used for the WomenVenture's technical assistance and administrative costs.  This is a onetime appropriation and is available until June 30, 2026.

 

By December 15, 2026, WomenVenture must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over agriculture and employment and economic development.  The report must include a summary of the uses of the appropriation, including the amount of the appropriation used for administration.  The report must also provide a breakdown of the amount of funding used for loans,


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13866

forgivable loans, and grants; information about the terms of the loans issued; a discussion of how money from repaid loans will be used; the number of entrepreneurs assisted; and a breakdown of how many entrepreneurs received assistance in each county.

 

(ll) $2,000,000 the first year is for a grant to African Career, Education, and Resource, Inc., for operational infrastructure and technical assistance to small businesses.  This appropriation is available until June 30, 2025.

 

(mm) $5,000,000 the first year is for a grant to the African Development Center to provide loans to purchase commercial real estate and to expand organizational infrastructure.  This appropriation is available until June 30, 2025.  Of this amount:

 

(1) $2,800,000 is for loans to purchase commercial real estate targeted at African immigrant small business owners;

 

(2) $364,000 is for loan loss reserves to support loan volume growth and attract additional capital;

 

(3) $836,000 is for increasing organizational capacity;

 

(4) $300,000 is for the safe 2 eat project of inclusive assistance with required restaurant licensing examinations; and

 

(5) $700,000 is for a center for community resources for language and technology assistance for small businesses.

 

(nn) $7,000,000 the first year is for grants to the Minnesota Initiative Foundations to capitalize their revolving loan funds, which address unmet financing needs of for-profit business start‑ups, expansions, and ownership transitions; nonprofit organizations; and developers of housing to support the construction, rehabilitation, and conversion of housing units.  Of the amount appropriated:

 

(1) $1,000,000 is for a grant to the Southwest Initiative Foundation;

 

(2) $1,000,000 is for a grant to the West Central Initiative Foundation;

 

(3) $1,000,000 is for a grant to the Southern Minnesota Initiative Foundation;

 

(4) $1,000,000 is for a grant to the Northwest Minnesota Foundation;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13867

(5) $2,000,000 is for a grant to the Initiative Foundation of which $1,000,000 is for redevelopment of the St. Cloud Youth and Family Center; and

 

(6) $1,000,000 is for a grant to the Northland Foundation.

 

(oo) $500,000 each year is for a grant to Enterprise Minnesota, Inc., to reach and deliver talent, leadership, employee retention, continuous improvement, strategy, quality management systems, revenue growth, and manufacturing peer-to-peer advisory services to small manufacturing companies employing 35 or fewer full-time equivalent employees.  This is a onetime appropriation.  No later than February 1, 2025, and February 1, 2026, Enterprise Minnesota, Inc., must provide a report to the chairs and ranking minority members of the legislative committees with jurisdiction over economic development that includes:

 

(1) the grants awarded during the past 12 months;

 

(2) the estimated financial impact of the grants awarded to each company receiving services under the program;

 

(3) the actual financial impact of grants awarded during the past 24 months; and

 

(4) the total amount of federal funds leveraged from the Manufacturing Extension Partnership at the United States Department of Commerce.

 

(pp) $375,000 each year is for a grant to PFund Foundation to provide grants to LGBTQ+-owned small businesses and entrepreneurs.  Of this amount, up to five percent may be used for PFund Foundation's technical assistance and administrative costs.  This is a onetime appropriation and is available until June 30, 2026.  To the extent practicable, money must be distributed by PFund Foundation as follows:

 

(1) at least 33.3 percent to businesses owned by members of racial minority communities; and

 

(2) at least 33.3 percent to businesses outside of the seven‑county metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2.

 

(qq) $125,000 each year is for a grant to Quorum to provide business support, training, development, technical assistance, and related activities for LGBTQ+-owned small businesses that are recipients of a PFund Foundation grant.  Of this amount, up to five percent may be used for Quorum's technical assistance and administrative costs.  This is a onetime appropriation and is available until June 30, 2026.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13868

(rr) $5,000,000 the first year is for a grant to the Metropolitan Economic Development Association (MEDA) for statewide business development and assistance services to minority-owned businesses.  This is a onetime appropriation.  Any unencumbered balance remaining at the end of the first year does not cancel but is available the second year.  Of this amount:

 

(1) $3,000,000 is for a revolving loan fund to provide additional minority-owned businesses with access to capital; and

 

(2) $2,000,000 is for operating support activities related to business development and assistance services for minority business enterprises.

 

By February 1, 2025, MEDA shall report to the commissioner and the chairs and ranking minority members of the legislative committees with jurisdiction over economic development policy and finance on the loans and operating support activities, including outcomes and expenditures, supported by the appropriation under this paragraph.

 

(ss) $2,500,000 each year is for a grant to a Minnesota-based automotive component manufacturer and distributor specializing in electric vehicles and sensor technology that manufactures all of their parts onshore to expand their manufacturing.  The grant recipient under this paragraph shall submit reports on the uses of the money appropriated, the number of jobs created due to the appropriation, wage information, and the city and state in which the additional manufacturing activity was located to the chairs and ranking minority members of the legislative committees with jurisdiction over economic development.  An initial report shall be submitted by December 15, 2023, and a final report is due by December 15, 2025.  This is a onetime appropriation. 

 

(tt)(1) $125,000 each year is for grants to the Latino Chamber of Commerce Minnesota to support the growth and expansion of small businesses statewide.  Funds may be used for the cost of programming, outreach, staffing, and supplies.  This is a onetime appropriation.

 

(2) By January 15, 2026, the Latino Chamber of Commerce Minnesota must submit a report to the legislative committees with jurisdiction over economic development that details the use of grant funds and the grant's economic impact.

 

(uu) $175,000 the first year is for a grant to the city of South St. Paul to study options for repurposing the 1927 American Legion Memorial Library after the property is no longer used as a library.  This appropriation is available until the project is completed or abandoned, subject to Minnesota Statutes, section 16A.642.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13869

(vv) $250,000 the first year is for a grant to LatinoLEAD for organizational capacity-building.

 

(ww) $80,000 the first year is for a grant to the Neighborhood Development Center for small business competitive grants to software companies working to improve employee engagement and workplace culture and to reduce turnover.

 

(xx)(1) $3,000,000 in the first year is for a grant to the Center for Economic Inclusion for strategic, data-informed investments in job creation strategies that respond to the needs of underserved populations statewide.  This may include forgivable loans, revenue-based financing, and equity investments for entrepreneurs with barriers to growth.  Of this amount, up to five percent may be used for the center's technical assistance and administrative costs.  This appropriation is available until June 30, 2025.

 

(2) By January 15, 2026, the Center for Economic Inclusion shall submit a report on the use of grant funds, including any loans made, to the legislative committees with jurisdiction over economic development.

 

(yy) $500,000 each the first year is for a grant to the Asian Economic Development Association for asset building and financial empowerment for entrepreneurs and small business owners, small business development and technical assistance, and cultural placemaking.  This is a onetime appropriation.

 

(zz) $500,000 each year is for a grant to Isuroon to support primarily African immigrant women with entrepreneurial training to start, manage, and grow self-sustaining microbusinesses, develop incubator space for these businesses, and provide support with financial and language literacy, systems navigation to eliminate capital access disparities, marketing, and other technical assistance.  This is a onetime appropriation.

 

Sec. 3.  Laws 2023, chapter 53, article 20, section 3, is amended to read:

 

      Sec. 3.  EXPLORE MINNESOTA TOURISM

 

$ 40,954,000 40,554,000

 

$21,369,000

 

(a) $500,000 each year must be matched from nonstate sources to develop maximum private sector involvement in tourism.  Each $1 of state incentive must be matched with $6 of private sector money.  "Matched" means revenue to the state or documented in‑kind, soft match, or cash expenditures directly expended to support Explore Minnesota Tourism under Minnesota Statutes, section 116U.05.  The incentive in fiscal year 2024 is based on fiscal year 2023 private sector contributions.  The incentive in fiscal year 2025 is based on fiscal year 2024 private sector contributions.  This incentive is ongoing.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13870

(b) $11,000,000 the first year is for the development of Explore Minnesota for Business under Minnesota Statutes, section 116U.07, to market the overall livability and economic opportunities of Minnesota.  This is a onetime appropriation.

 

(c) $5,500,000 each year is for the development of new initiatives for Explore Minnesota Tourism.  If the amount in the first year is insufficient, the amount in the second year is available in the first year.  This is a onetime appropriation.

 

(d) $6,047,000 $5,647,000 the first year and $600,000 the second year is for grants for infrastructure and associated costs for cultural festivals and events, including but not limited to buildout, permits, sanitation and maintenance services, transportation, staffing, event programming, public safety, facilities and equipment rentals, signage, and insurance.  This is a onetime appropriation.  Of this amount:

 

(1) $1,847,000 the first year is for a grant to the Minneapolis Downtown Council for the Taste of Minnesota event;

 

(2) $1,200,000 the first year is for a grant to the Stairstep Foundation for African American cultural festivals and events;

 

(3) $1,200,000 $800,000 the first year is for grants for Somali community and cultural festivals and events, including festivals and events in greater Minnesota, as follows:

 

(i) $400,000 is for a grant to Ka Joog; and

 

(ii) $400,000 is for a grant to the Somali Museum of Minnesota; and

 

(iii) $400,000 is for a grant to ESHARA;

 

(4) $1,200,000 the first year is for a grant to West Side Boosters for Latino cultural festivals and events; and

 

(5) $600,000 the first year and $600,000 the second year are for grants to the United Hmong Family, Inc. for the Hmong International Freedom Festival event.

 

(e) Money for marketing grants is available either year of the biennium.  Unexpended grant money from the first year is available in the second year.

 

(f) The base for Explore Minnesota is $17,023,000 from the general fund in fiscal year 2026 and each year thereafter.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13871

Sec. 4.  APPROPRIATIONS.

 

Subdivision 1.  Department of Employment and Economic Development.  $6,797,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of employment and economic development.  This appropriation is onetime and in addition to the amounts appropriated in Laws 2023, chapter 53.  Of this amount:

 

(1) $500,000 is for a grant to the Asian Economic Development Association for asset building and financial empowerment for entrepreneurs and small business owners, small business development and technical assistance, and cultural placemaking.  This amount is available until June 30, 2027;

 

(2) $497,000 is for a grant to Propel Nonprofits for a microloan capital program to provide assistance to organizations that primarily serve historically underserved communities, including loans, forgivable loans, grants for working capital or regranting, and real estate and technical assistance.  Up to five percent of this amount may be used by the grantee for administrative costs;

 

(3) $1,000,000 is for a grant to the New American Development Center to provide small businesses and entrepreneurs with technical assistance, financial education, training, and lending and to build the grantee's capacity;

 

(4) $1,000,000 is for a grant to the Entrepreneur Fund to capitalize their revolving loan funds to address unmet financing needs in northeast Minnesota of for-profit business startups, expansions, and ownership transitions;

 

(5) $500,000 is for a grant to the Coalition of Asian American Leaders to support outreach, training, technical assistance, peer network development, and direct financial assistance for Asian Minnesotan women entrepreneurs.  This amount is available until June 30, 2026;

 

(6) $300,000 is for a grant to Fortis Capital for a revolving loan fund to provide risk-mitigating capital for commercial development activities in underserved communities and to entrepreneurs from disadvantaged groups statewide.  This amount is available until expended and up to ten percent of the amount may be used for administrative costs;

 

(7) $500,000 is for a grant to Arrowhead Economic Opportunity Agency to develop a new service center; and

 

(8) $2,500,000 is for Launch Minnesota and is available until June 30, 2027.  Of this amount:

 

(i) $1,500,000 is for innovation grants to eligible Minnesota entrepreneurs or start-up businesses to assist with their operating needs;

 

(ii) $500,000 is for administration of Launch Minnesota; and

 

(iii) $500,000 is for grantee activities at Launch Minnesota.

 

Subd. 2.  Explore Minnesota.  $3,425,000 in fiscal year 2025 is appropriated from the general fund to Explore Minnesota.  This appropriation is in addition to the amounts appropriated in Laws 2023, chapter 53, and, except as otherwise specified, is onetime.  Of this amount:

 

(1) $725,000 is for Explore Minnesota Film.  The base for this appropriation is $525,000 in fiscal year 2026 and $525,000 in fiscal year 2027;

 

(2) $300,000 is for Explore Minnesota Film for the film production jobs program under Minnesota Statutes, section 116U.26.  The base for this appropriation is $300,000 in fiscal year 2026 and $300,000 in fiscal year 2027;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13872

(3) $400,000 is for a grant to Ka Joog for Somali community and cultural festivals and events, including festivals and events in greater Minnesota;

 

(4) $1,000,000 is for a grant to Minnesota Sports and Events for the World Junior Hockey Championships; and

 

(5) $1,000,000 is for a grant to 2026 Special Olympics USA Games.  This amount is available until June 30, 2027.

 

Sec. 5.  CANCELLATIONS OF PRIOR APPROPRIATIONS.

 

The $5,000,000 fiscal year 2024 appropriation from the general fund in Laws 2023, chapter 53, article 20, section 2, subdivision 2, paragraph (dd), is canceled.

 

ARTICLE 2

ECONOMIC DEVELOPMENT POLICY

 

Section 1.  Minnesota Statutes 2022, section 116J.435, subdivision 3, is amended to read:

 

Subd. 3.  Grant program established.  (a) The commissioner shall make competitive grants to local governmental units to acquire and prepare land on which public infrastructure required to support an eligible project will be located, including demolition of structures and remediation of any hazardous conditions on the land, or to predesign, design, acquire, and to construct, furnish, and equip public infrastructure required to support an eligible project.  The local governmental unit receiving a grant must provide for the remainder of the public infrastructure costs from other sources.  The commissioner may waive the requirements related to an eligible project under subdivision 2 if a project would be eligible under this section but for the fact that its location requires infrastructure improvements to residential development.

 

(b) The amount of a grant may not exceed the lesser of the cost of the public infrastructure or 50 percent of the sum of the cost of the public infrastructure plus the cost of the completed eligible project.

 

(c) The purpose of the program is to keep or enhance jobs in the area, increase the tax base, or to expand or create new economic development through the growth of new innovative businesses and organizations.

 

Sec. 2.  Minnesota Statutes 2022, section 116J.435, subdivision 4, is amended to read:

 

Subd. 4.  Application.  (a) The commissioner must develop forms and procedures for soliciting and reviewing applications for grants under this section.  At a minimum, a local governmental unit must include the following information in its application a resolution certifying that the money required to be supplied by the local governmental unit to complete the public infrastructure project is available and committed.  The commissioner must evaluate complete applications for eligible projects using the following criteria:

 

(1) a resolution of its governing body certifying that the money required to be supplied by the local governmental unit to complete the public infrastructure is available and committed the project is an eligible project as defined under subdivision 2;

 

(2) a detailed estimate, along with necessary supporting evidence, of the total development costs for the public infrastructure and eligible project the project is expected to result in or will attract substantial public and private capital investment and provide substantial economic benefit to the county or city in which the project would be located;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13873

(3) an assessment of the potential or likely use of the site for innovative business activities after completion of the public infrastructure and eligible project the project is not relocating substantially the same operation from another location in the state, unless the commissioner determines the project cannot be reasonably accommodated within the county or city in which the business is currently located, or the business would otherwise relocate to another state; and

 

(4) a timeline indicating the major milestones of the public infrastructure and eligible project and their anticipated completion dates; the project is expected to create or retain full-time jobs.

 

(5) a commitment from the governing body to repay the grant if the milestones are not realized by the completion date identified in clause (4); and

 

(6) any additional information or material the commissioner prescribes.

 

(b) The determination of whether to make a grant under subdivision 3 for a site is within the discretion of the commissioner, subject to this section.  The commissioner's decisions and application of the priorities criteria are not subject to judicial review, except for abuse of discretion.

 

Sec. 3.  Minnesota Statutes 2022, section 116J.5492, subdivision 2, is amended to read:

 

Subd. 2.  Membership.  (a) The advisory committee consists of 18 voting members and eight ex officio nonvoting members.

 

(b) The voting members of the advisory committee are appointed by the commissioner of employment and economic development, except as specified below:

 

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

 

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

 

(3) one representative of the Prairie Island Indian community;

 

(4) four representatives of impacted communities, of which two must represent counties and two must represent municipalities, and, to the extent possible, of the impacted facilities in those communities, at least one must be a coal plant, at least one must be a nuclear plant, and at least one must be a natural gas plant;

 

(5) three representatives of impacted workers at impacted facilities;

 

(6) one representative of impacted workers employed by companies that, under contract, regularly perform construction, maintenance, or repair work at an impacted facility;

 

(7) one representative with professional economic development or workforce retraining experience;

 

(8) two representatives of utilities that operate an impacted facility;

 

(9) one representative from a nonprofit organization with expertise and experience delivering energy efficiency and conservation programs; and

 

(10) one representative of a school district facing revenue loss due to energy transition; and


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13874

(10) (11) one representative from the Coalition of Utility Cities.

 

(c) The ex officio nonvoting members of the advisory committee consist of:

 

(1) the governor or the governor's designee;

 

(2) the commissioner of employment and economic development or the commissioner's designee;

 

(3) the commissioner of commerce or the commissioner's designee;

 

(4) the commissioner of labor and industry or the commissioner's designee;

 

(5) the commissioner of revenue or the commissioner's designee;

 

(6) the executive secretary of the Public Utilities Commission or the secretary's designee;

 

(7) the commissioner of the Pollution Control Agency or the commissioner's designee; and

 

(8) the chancellor of the Minnesota State Colleges and Universities or the chancellor's designee.

 

Sec. 4.  Minnesota Statutes 2023 Supplement, section 116J.682, subdivision 1, is amended to read:

 

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

 

(b) "Commissioner" means the commissioner of employment and economic development.

 

(c) "Partner organizations" or "partners" means:

 

(1) nonprofit organizations or public entities, including higher education institutions, engaged in business development or economic development;

 

(2) community development financial institutions; or

 

(3) community development corporations; and

 

(4) Tribal economic development entities.

 

(d) "Small business" has the meaning given in section 3 of the Small Business Act, United States Code, title 15, section 632.

 

(e) "Underserved populations and geographies" means individuals who are Black, Indigenous, people of color, veterans, people with disabilities, people who are LGBTQ+, and low-income individuals and includes people from rural Minnesota.

 

Sec. 5.  Minnesota Statutes 2023 Supplement, section 116J.682, subdivision 3, is amended to read:

 

Subd. 3.  Small business assistance partnerships grants.  (a) The commissioner shall make small business assistance partnerships grants to local and regional community-based organizations to provide small business development and technical assistance services to entrepreneurs and small business owners.  The commissioner must prioritize applications that provide services to underserved populations and geographies.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13875

(b) Grantees shall use the grant funds to provide high-quality, free or low-cost professional business development and technical assistance services that support the start-up, growth, and success of Minnesota's entrepreneurs and small business owners.

 

(c) Grantees may use up to 15 percent of grant funds for expenses incurred while administering the grant, including but not limited to expenses related to technology, utilities, legal services, training, accounting, insurance, financial management, benefits, reporting, servicing of loans, and audits.

 

Sec. 6.  Minnesota Statutes 2023 Supplement, section 116J.8733, is amended to read:

 

116J.8733 MINNESOTA EXPANDING OPPORTUNITY FUND PROGRAM.

 

Subdivision 1.  Establishment.  The Minnesota Expanding Opportunity Fund Program is established to capitalize Minnesota nonprofit corporations, Tribal economic development entities, and community development financial institutions to increase lending activities with Minnesota small businesses.

 

Subd. 2.  Long-term loans.  The department may make long-term loans of ten to 12 years at 0.5 percent or lower interest rates to nonprofit corporations, Tribal economic development entities, and community development financial institutions to enable nonprofit corporations, Tribal economic development entities, and community development financial institutions to make more loans to Minnesota small businesses.  The department may use the interest received to offset the cost of administering small business lending programs.

 

Subd. 3.  Loan eligibility; nonprofit corporation.  (a) The eligible nonprofit corporation, Tribal economic development entity, or community development financial institution must not meet the definition of recipient under section 116J.993, subdivision 6.

 

(b) The commissioner may enter into loan agreements with Minnesota nonprofit corporations, Tribal economic development entities, and community development financial institutions that apply to participate in the Minnesota Expanding Opportunity Fund Program.  The commissioner shall evaluate applications from applicant nonprofit corporations, Tribal economic development entities, and community development financial institutions.  In evaluating applications, the department must consider, among other things, whether the nonprofit corporation, Tribal economic development entity, or community development financial institution:

 

(1) meets the statutory definition of a community development financial institution as defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994, United States Code, title 12, section 4702;

 

(2) has a board of directors or loan or credit committee that includes citizens experienced in small business services and community development;

 

(3) has the technical skills to analyze small business loan requests;

 

(4) is familiar with other available public and private funding sources and economic development programs;

 

(5) is enrolled in one or more eligible federally funded state programs; and

 

(6) has the administrative capacity to manage a loan portfolio.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13876

Subd. 4.  Revolving loan fund.  (a) The commissioner shall establish a revolving loan fund to make loans to nonprofit corporations, Tribal economic development entities, and community development financial institutions for the purpose of increasing nonprofit corporation, Tribal economic development entity, and community development financial institution capital and lending activities with Minnesota small businesses.

 

(b) Nonprofit corporations, Tribal economic development entities, and community development financial institutions that receive loans from the commissioner under the program must establish appropriate accounting practices for the purpose of tracking eligible loans.

 

Subd. 5.  Loan portfolio administration.  (a) The fee or interest rate charged by a nonprofit corporation, Tribal economic development entity, or community development financial institution for a loan under this subdivision must not exceed the Wall Street Journal prime rate plus two ten percent.  A nonprofit corporation, Tribal economic development entity, or community development financial institution participating in the Minnesota Expanding Opportunity Fund Program may charge a loan closing fee equal to or less than two one percent of the loan value.

 

(b) The nonprofit corporation, Tribal economic development entity, or community development financial institution may retain all earnings from fees and interest from loans to small businesses.

 

(c) The department must provide the nonprofit corporation, Tribal economic development entity, or community development financial institution making the loan with a fee equal to one percent of the loan value for every loan closed to offset related expenses for loan processing, loan servicing, legal filings, and reporting.

 

Subd. 6.  Cooperation.  A nonprofit corporation, Tribal economic development entity, or community development financial institution that receives a program loan shall cooperate with other organizations, including but not limited to community development corporations, community action agencies, and the Minnesota small business development centers.

 

Subd. 7.  Reporting requirements.  (a) A nonprofit corporation, Tribal economic development entity, or community development financial institution that receives a program loan must submit an annual report to the commissioner by February 15 of each year that includes:

 

(1) the number of businesses to which a loan was made;

 

(2) a description of businesses supported by the program;

 

(3) demographic information, as specified by the commissioner, regarding each borrower;

 

(4) an account of loans made during the calendar year;

 

(5) the program's impact on job creation and retention;

 

(6) the source and amount of money collected and distributed by the program;

 

(7) the program's assets and liabilities; and

 

(8) an explanation of administrative expenses.

 

(b) A nonprofit corporation, Tribal economic development entity, or community development financial institution that receives a program loan must provide for an independent annual audit to be performed in accordance with generally accepted accounting practices and auditing standards and submit a copy of each annual audit report to the commissioner.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13877

Sec. 7.  Minnesota Statutes 2023 Supplement, section 116J.8751, is amended by adding a subdivision to read:

 

Subd. 10.  Expiration.  This section expires June 30, 2027.

 

Sec. 8.  Minnesota Statutes 2022, section 116M.18, is amended to read:

 

116M.18 MINNESOTA EMERGING ENTREPRENEUR PROGRAM.

 

Subdivision 1.  Establishment.  The Minnesota emerging entrepreneur program is established to award grants to nonprofit corporations, Tribal economic development entities, and community development financial institutions to fund loans to businesses owned by minority or low-income persons, women, veterans, or people with disabilities.

 

Subd. 1a.  Statewide loans.  To the extent there is sufficient eligible demand, loans shall be made so that an approximately equal dollar amount of loans are made to businesses in the metropolitan area as in the nonmetropolitan area.  After March 31 of each fiscal year, the department may allow loans to be made anywhere in the state without regard to geographic area.

 

Subd. 1b.  Grants.  The department shall make grants to nonprofit corporations, Tribal economic development entities, and community development financial institutions to fund loans to businesses owned by minority or low‑income persons, women, veterans, or people with disabilities to encourage private investment, to provide jobs for minority and low-income persons, to create and strengthen minority business enterprises, and to promote economic development in a low-income area.

 

Subd. 2.  Grant eligibility; nonprofit corporation.  (a) The department may enter into agreements with nonprofit corporations, Tribal economic development entities, and community development financial institutions to fund loans the nonprofit corporation, Tribal economic development entity, or community development financial institution makes to businesses owned by minority or low-income persons, women, veterans, or people with disabilities.  The department shall evaluate applications from nonprofit corporations, Tribal economic development entities, and community development financial institutions.  In evaluating applications, the department must consider, among other things, whether the nonprofit corporation, Tribal economic development entity, or community development financial institution:

 

(1) has a board of directors that includes citizens experienced in business and community development, minority business enterprises, addressing racial income disparities, and creating jobs for low-income and minority persons;

 

(2) has the technical skills to analyze projects;

 

(3) is familiar with other available public and private funding sources and economic development programs;

 

(4) can initiate and implement economic development projects;

 

(5) can establish and administer a revolving loan account or has operated a revolving loan account;

 

(6) can work with job referral networks which assist minority and low-income persons; and

 

(7) has established relationships with minority communities.

 

(b) The department shall review existing agreements with nonprofit corporations, Tribal economic development entities, and community development financial institutions every five years and may renew or terminate the agreement based on the review.  In making its review, the department shall consider, among other criteria, the criteria in paragraph (a).  The department shall open the program to new applicants every two years.


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13878

Subd. 3.  Revolving loan fund.  (a) The department shall establish a revolving loan fund to make grants to nonprofit corporations, Tribal economic development entities, and community development financial institutions for the purpose of making loans to businesses owned by minority or low-income persons, women, veterans, or people with disabilities, and to support minority business enterprises and job creation for minority and low-income persons.

 

(b) Nonprofit corporations, Tribal economic development entities, and community development financial institutions that receive grants from the department under the program must establish a commissioner-certified revolving loan fund for the purpose of making eligible loans.

 

(c) Eligible business enterprises include, but are not limited to, technologically innovative industries, value‑added manufacturing, and information industries.

 

(d) Loan applications given preliminary approval by the nonprofit corporation, Tribal economic development entity, or community development financial institution must be forwarded to the department for approval.  The commissioner must give final approval for each loan made by the nonprofit corporation.  Nonprofit corporations, Tribal economic development entities, and community development financial institutions designated as preferred partners do not need final approval by the commissioner.  All other loans must be approved by the commissioner and the commissioner must make approval decisions within 20 days of receiving a loan application unless the application contains insufficient information to make an approval decision.  The amount of the state funds contributed to any loan may not exceed 50 percent of each loan.  The commissioner must develop the criteria necessary to receive loan forgiveness.

 

Subd. 4.  Business loan criteria.  (a) The criteria in this subdivision apply to loans made by nonprofit corporations, Tribal economic development entities, and community development financial institutions under the program.

 

(b) Loans must be made to businesses that are not likely to undertake a project for which loans are sought without assistance from the program.

 

(c) A loan must be used to support a business owned by a minority or a low-income person, woman, veteran, or a person with disabilities.  Priority must be given for loans to the lowest income areas.

 

(d) The minimum state contribution to a loan is $5,000 and the maximum is $150,000.

 

(e) The state contribution must be matched by at least an equal amount of new private investment.

 

(f) A loan may not be used for a retail development project.

 

(g) The business must agree to work with job referral networks that focus on minority and low-income applicants.

 

(h) Up to ten percent of a loan's principal amount may be forgiven if the department approves and the borrower has met lender and agency criteria, including being current with all payments, for at least two years.  The commissioner must develop the criteria for receiving loan forgiveness.

 

Subd. 4a.  Microenterprise loan.  (a) Program grants may be used to make microenterprise loans to small, beginning businesses, including a sole proprietorship.  Microenterprise loans are subject to this section except that:

 

(1) they may also be made to qualified retail businesses;

 

(2) they may be made for a minimum of $5,000 and a maximum of $35,000 $40,000;


Journal of the House - 104th Day - Wednesday, April 24, 2024 - Top of Page 13879

(3) in a low-income area, they may be made for a minimum of $5,000 and a maximum of $50,000 $55,000; and

 

(4) they do not require a match.

 

(b) Up to ten percent of a loan's principal amount may be forgiven if the department approves and the borrower has met lender criteria, including being current with all payments, for at least two years.

 

Subd. 5.  Revolving fund administration.  (a) The department shall establish a minimum interest rate or fee for loans or guarantees to ensure that necessary loan administration costs are covered.  The interest rate charged by a nonprofit corporation, Tribal e