Journal of the House - 107th Day - Monday, April 29, 2024 - Top of Page 15031

STATE OF MINNESOTA

 

Journal of the House

 

NINETY-THIRD SESSION - 2024

 

_____________________

 

ONE HUNDRED SEVENTH DAY

 

Saint Paul, Minnesota, Monday, April 29, 2024

 

 

      The House of Representatives convened at 11:00 a.m. and was called to order by Dean Urdahl, Speaker pro tempore.

 

      Prayer was offered by Imam Abdisalam Adam, Dar Al-Hijrah Mosque, Minneapolis, 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

Bennett

Berg

Bierman

Bliss

Brand

Burkel

Carroll

Cha

Clardy

Coulter

Curran

Davids

Davis

Demuth

Dotseth

Edelson

Elkins

Engen

Feist

Finke

Fischer

Fogelman

Franson

Frazier

Frederick

Freiberg

Garofalo

Gillman

Gomez

Greenman

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

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Koznick

Kraft

Kresha

Lawrence

Lee, F.

Lee, K.

Liebling

Lillie

Lislegard

Long

McDonald

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

Rehm

Reyer

Robbins

Schomacker

Schultz

Scott

Sencer-Mura

Skraba

Smith

Stephenson

Swedzinski

Tabke

Torkelson

Urdahl

Vang

Virnig

West

Wiener

Wiens

Witte

Wolgamott

Xiong

Youakim

Zeleznikar

Spk. Hortman


 

      A quorum was present.

 

      Daniels, Kiel and Kozlowski were excused.

 

      Keeler was excused until 3:05 p.m.

 

      Speaker pro tempore Urdahl called Her to the Chair.

 

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


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REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

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

 

H. F. No. 3431, 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 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.

 

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.


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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.

 

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.


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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.

 

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


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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.

 

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.


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(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.  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. 6.  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. 7.  APPROPRIATION; CAPITOL MALL DESIGN FRAMEWORK PHASE TWO.

 

$1,712,000 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 Capitol Mall Design Framework, phase two.  This is a onetime appropriation and is available until December 31, 2029.

 

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


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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.

 

(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.


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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.

 

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.


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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;

 

(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.


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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. 

 

(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.


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(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.

 

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.


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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.  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.


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Sec. 18.  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;

 

(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.


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Sec. 19.  [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.

 

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.


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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.

 

Sec. 20.  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. 21.  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. 22.  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.


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Sec. 23.  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 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. 24.  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.


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Sec. 25.  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;

 

(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.


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(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.

 

(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. 26.  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;


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(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. 27.  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.

 

Sec. 28.  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. 29.  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. 30.  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.


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Sec. 31.  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.

 

(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. 32.  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.


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Sec. 33.  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;

 

(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;


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(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.

 

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.


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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.

 

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. 34.  [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.


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(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;

 

(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.


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(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.

 

(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.


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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.

 

Sec. 35.  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.


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Sec. 36.  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.

 

(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. 37.  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. 38.  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. 39.  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:


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(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. 40.  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

 

(2) within 14 days after the hearing record closes, if an expedited probable cause hearing was not required by section 211B.33.

 

Sec. 41.  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.


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Sec. 42.  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.

 

(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. 43.  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.


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Sec. 44.  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.

 

Sec. 45.  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. 46.  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.


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(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.

 

Sec. 47.  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. 48.  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. 49.  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. 50.  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


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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. 51.  REPEALER; FALSE POLITICAL AND CAMPAIGN MATERIAL.

 

Minnesota Statutes 2022, section 211B.06, is repealed.

 

Sec. 52.  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.

 

Sec. 53.  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;


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(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 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.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and applies to all comprehensive plans and amendments authorized by the Metropolitan Council during the most recent decennial review under section 473.864, and local controls approved in accordance with those comprehensive plans and amendments.

 

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.


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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.

 

ARTICLE 4

MILITARY AND VETERANS AFFAIRS

 

Section 1.  Minnesota Statutes 2022, section 161.14, is amended by adding a subdivision to read:

 

Subd. 105.  Gopher Gunners Memorial Bridge.  (a) The bridge on marked Trunk Highway 55 and Trunk Highway 62, crossing the Minnesota River, commonly known as the Mendota Bridge, is named and designated as "Gopher Gunners Memorial Bridge."  Notwithstanding section 161.139, the commissioner must adopt a suitable marking design to mark this bridge and erect appropriate signs.

 

(b) The adjutant general of the Department of Military Affairs must reimburse the commissioner of transportation for costs incurred under this subdivision.

 

Sec. 2.  Minnesota Statutes 2022, section 193.143, is amended to read:

 

193.143 STATE ARMORY BUILDING COMMISSION, POWERS.

 

Such corporation, subject to the conditions and limitations prescribed in sections 193.141 to 193.149, shall possess all the powers of a body corporate necessary and convenient to accomplish the objectives and perform the duties prescribed by sections 193.141 to 193.149, including the following, which shall not be construed as a limitation upon the general powers hereby conferred:

 

(1) To acquire by lease, purchase, gift, or condemnation proceedings all necessary right, title, and interest in and to the lands required for a site for a new armory and all other real or personal property required for the purposes contemplated by the Military Code and to hold and dispose of the same, subject to the conditions and limitations herein prescribed; provided that any such real or personal property or interest therein may be so acquired or accepted subject to any condition which may be imposed thereon by the grantor or donor and agreed to by such corporation not inconsistent with the proper use of such property by the state for armory or military purposes as herein provided.

 

(2) To exercise the power of eminent domain in the manner provided by chapter 117, for the purpose of acquiring any property which such corporation is herein authorized to acquire by condemnation; provided, that the corporation may take possession of any such property so to be acquired at any time after the filing of the petition describing the same in condemnation proceedings; provided further, that this shall not preclude the corporation from abandoning the condemnation of any such property in any case where possession thereof has not been taken.

 

(3) To construct and equip new armories as authorized herein; to pay therefor out of the funds obtained as hereinafter provided and to hold, manage, and dispose of such armory, equipment, and site as hereinafter provided.  The total amount of bonds issued on account of such armories shall not exceed the amount of the cost thereof; provided also, that the total bonded indebtedness of the commission shall not at any time exceed the aggregate sum of $15,000,000 $45,000,000.


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(4) To provide partnerships with federal and state governments and to match federal and local funds, when available.

 

(5) To sue and be sued.

 

(6) To contract and be contracted with in any matter connected with any purpose or activity within the powers of such corporations as herein specified; provided, that no officer or member of such corporation shall be personally interested, directly or indirectly, in any contract in which such corporation is interested.

 

(7) To employ any and all professional and nonprofessional services and all agents, employees, workers, and servants necessary and proper for the purposes and activities of such corporation as authorized or contemplated herein and to pay for the same out of any portion of the income of the corporation available for such purposes or activities.  The officers and members of such corporation shall not receive any compensation therefrom, but may receive their reasonable and necessary expenses incurred in connection with the performance of their duties; provided however, that whenever the duties of any member of the commission require full time and attention the commission may compensate the member therefor at such rates as it may determine.

 

(8) To borrow money and issue bonds for the purposes and in the manner and within the limitations herein specified, and to pledge any and all property and income of such corporation acquired or received as herein provided to secure the payment of such bonds, subject to the provisions and limitations herein prescribed, and to redeem any such bonds if so provided therein or in the mortgage or trust deed accompanying the same.

 

(9) To use for the following purposes any available money received by such corporation from any source as herein provided in excess of those required for the payment of the cost of such armory and for the payment of any bonds issued by the corporation and interest thereon according to the terms of such bonds or of any mortgage or trust deed accompanying the same:

 

(a) to pay the necessary incidental expenses of carrying on the business and activities of the corporation as herein authorized;

 

(b) to pay the cost of operating, maintaining, repairing, and improving such new armories;

 

(c) if any further excess money remains, to purchase upon the open market at or above or below the face or par value thereof any bonds issued by the corporation as herein authorized, provided that any bonds so purchased shall thereupon be canceled.

 

(10) To adopt and use a corporate seal.

 

(11) To adopt all needful bylaws and rules for the conduct of business and affairs of such corporation and for the management and use of all armories while under the ownership and control of such corporation as herein provided, not inconsistent with the use of such armory for armory or military purposes.

 

(12) Such corporation shall issue no stock.

 

(13) No officer or member of such corporation shall have any personal share or interest in any funds or property of the corporation or be subject to any personal liability by reason of any liability of the corporation.

 

(14) The Minnesota State Armory Building Commission created under section 193.142 shall keep all money and credits received by it as a single fund, to be designated as the "Minnesota State Armory Building Commission fund," with separate accounts for each armory; and the commission may make transfers of money from funds appertaining to any armory under its control for use for any other such armory; provided such transfers shall be made only from


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money on hand, from time to time, in excess of the amounts required to meet payments of interest or principal on bonds or other obligations appertaining to the armory to which such funds pertain and only when necessary to pay expenses of construction, operation, maintenance, and debt service of such other armory; provided further, no such transfer of any money paid for the support of any armory by the municipality in which such armory is situated shall be made by the commission.

 

(15) The corporation created under section 193.142 may designate one or more state or national banks as depositories of its funds, and may provide, upon such conditions as the corporation may determine, that the treasurer of the corporation shall be exempt from personal liability for loss of funds deposited in any such depository due to the insolvency or other acts or omissions of such depository.

 

(16) The governor is empowered to apply for grants of money, equipment, and materials which may be made available to the states by the federal government for leasing, building, and equipping armories for the use of the military forces of the state which are reserve components of the armed forces of the United States, whenever the governor is satisfied that the conditions under which such grants are offered by the federal government, are for the best interests of the state and are not inconsistent with the laws of the state relating to armories, and to accept such grants in the name of the state.  The Minnesota State Armory Building Commission is designated as the agency of the state to receive such grants and to use them for armory purposes as prescribed in this chapter, and by federal laws, and regulations not inconsistent therewith.

 

Sec. 3.  Laws 2023, chapter 38, article 1, section 3, subdivision 3, is amended to read:

 

      Subd. 3.  Veterans Health Care

 

90,025,000

 

100,797,000

 

(a) The base for this appropriation in fiscal year 2026 is $93,387,000 and $94,435,000 in fiscal year 2027 and each fiscal year thereafter.

 

(b) $88,885,000 the first year and $99,847,000 the second year may be transferred to a veterans homes special revenue account in the special revenue fund in the same manner as other receipts are deposited according to Minnesota Statutes, section 198.34, and are appropriated to the commissioner of veterans affairs for the operation of veterans homes facilities and programs.  If the amount available in fiscal year 2024 is insufficient, the amount appropriated in fiscal year 2025 is available in fiscal year 2024.  The base for this transfer is $92,437,000 in fiscal year 2026 and $93,485,000 in fiscal year 2027.

 

(c) The department shall seek opportunities to maximize federal reimbursements of Medicare-eligible expenses and provide annual reports to the commissioner of management and budget on the federal Medicare reimbursements that are received.  Contingent upon future federal Medicare receipts, reductions to the veterans homes' general fund appropriation may be made.

 

(d) $400,000 each year is for the department to staff Veteran Community Health Navigators in community-based hospitals.

 

(e) $190,000 the first year is for the working group established under article 2, section 8.

 

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


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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; 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 a report; requiring reports of cybersecurity incidents; changing provisions for campaign practices complaints, Capitol complex security, cemeteries, certain licensed employment, Uniform Commercial Code, and notaries public; designating use of certain State Capitol space; modifying provisions for Hennepin County and Metropolitan Council; allowing Anoka County to build a jail and criminal justice center; modifying provisions for the Department of Military Affairs and the Department of Veterans Affairs; increasing the maximum bonded indebtedness allowed for the State Armory Building Commission; designating Gopher Gunners Memorial Bridge; 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; 161.14, by adding a subdivision; 193.143; 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 38, article 1, section 3, subdivision 3; 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 placed on the General Register.

 

      The report was adopted.

 

 

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

 

H. F. No. 3911, A bill for an act relating to state government; modifying disposition of certain state revenue and property; modifying remedies, penalties, and enforcement; providing for boat wrap product stewardship; providing for compliance protocols for certain air pollution facilities; providing for recovery of certain state costs; establishing certain priorities in environmental regulation; prohibiting certain mercury-containing lighting; establishing and modifying grant and rebate programs; modifying recreational vehicle regulation; modifying use of state lands; providing for tree planting; extending Mineral Coordinating Committee; modifying game and fish laws; modifying Water Law; establishing Packaging Waste and Cost Reduction Act; providing for domestic hog control; modifying fur farm provisions; modifying pesticide and fertilizer regulation; modifying agricultural development provisions; creating task force; classifying data; providing criminal penalties; requiring studies and reports; requiring rulemaking; appropriating money; amending Minnesota Statutes 2022, sections 13.7931, by adding a subdivision; 16A.125, subdivision 5; 16A.152, subdivision 1b; 18B.01, by adding a subdivision; 18C.005, by adding a subdivision; 21.81, by adding a subdivision; 84.027, subdivision 12; 84.0895, subdivision 1; 84.777, subdivisions 1, 3, by adding a subdivision; 84.871; 84.943, subdivision 5, by adding a subdivision; 88.82; 89.36, subdivision 1; 89.37, subdivision 3; 93.0015, subdivision 3; 97A.015, by adding a subdivision; 97A.105; 97A.341, subdivisions 1, 2, 3; 97A.345; 97A.425, subdivision 4, by adding a subdivision; 97A.475, subdivisions 2, 3; 97A.505, subdivision 8;


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97A.512; 97A.56, subdivisions 1, 2, by adding a subdivision; 97B.001, by adding a subdivision; 97B.022, subdivisions 2, 3; 97B.516; 97C.001, subdivision 2; 97C.005, subdivision 2; 97C.395, as amended; 97C.411; 103B.101, subdivisions 12, 12a; 103F.211, subdivision 1; 103F.48, subdivision 7; 103G.005, subdivision 15; 103G.315, subdivision 15; 115.071, subdivisions 1, 3, 4, by adding subdivisions; 115A.02; 115A.03, by adding a subdivision; 115A.5502; 115B.421; 116.07, subdivision 9, by adding subdivisions; 116.072, subdivisions 2, 5; 116.11; 116.92, by adding a subdivision; 116D.02, subdivision 2; 473.845, by adding a subdivision; Minnesota Statutes 2023 Supplement, sections 16A.152, subdivision 2; 17.457, as amended; 21.86, subdivision 2; 41A.30, subdivisions 1, 3; 97B.071; 103B.104; 103F.06, by adding a subdivision; 103G.301, subdivision 2; 115.03, subdivision 1; 116P.09, subdivision 6; 116P.18; Laws 2023, chapter 60, article 1, section 3, subdivision 10; proposing coding for new law in Minnesota Statutes, chapters 84; 97A; 97C; 103F; 115A; 116; 473; repealing Minnesota Statutes 2022, sections 17.353; 84.033, subdivision 3; 84.926, subdivision 1; 97B.802; 115A.5501; Laws 2003, chapter 128, article 1, section 167, subdivision 1, as amended; Minnesota Rules, part 6100.0500, subpart 8d.

 

Reported the same back with the following amendments:

 

Page 6, after line 13, insert:

 

"(r) $768,000 in fiscal year 2024 is appropriated from the minerals management account in the natural resources fund to the commissioner of natural resources for the Minnesota Gas and Oil Resources Technical Advisory Committee required in this act.  This is a onetime appropriation and is available until June 30, 2027.

 

(s) $2,406,000 in fiscal year 2024 is appropriated from the minerals management account in the natural resources fund to the commissioner of natural resources to adopt a regulatory framework for gas and oil production in Minnesota and for rulemaking and is available until June 30, 2027."

 

Page 6, delete lines 21 to 27 and insert:

 

"(b) The base from the general fund to the Board of Water and Soil Resources for implementation of the drain tile seller's disclosure requirements under Minnesota Statutes, section 103F.49, and for educational efforts and demonstration projects consistent with the duties to manage the public drainage manual and work group under Minnesota Statutes, section 103B.101, subdivision 13, is $230,000 in fiscal year 2026 and $325,000 in fiscal year 2027 and beyond."

 

Page 9, delete sections 1 and 2

 

Page 16, line 30, delete the new language

 

Page 17, line 2, delete "or"

 

Page 17, line 3, delete "any person injured by such violation"

 

Page 56, after line 17, insert:

 

"Sec. 18.  Minnesota Statutes 2022, section 93.25, subdivision 1, is amended to read:

 

Subdivision 1.  Leases.  The commissioner may issue leases to prospect for, mine, and remove or extract gas, oil, and minerals other than iron ore upon from any lands owned by the state, including trust fund lands, lands forfeited for nonpayment of taxes whether held in trust or otherwise, and lands otherwise acquired, and the beds of any waters belonging to the state.  For purposes of this section, iron ore means iron-bearing material where the primary product is iron metal.  For purposes of this section, "gas" includes both hydrocarbon and nonhydrocarbon gases.

 

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


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Sec. 19.  Minnesota Statutes 2022, section 93.25, subdivision 2, is amended to read:

 

Subd. 2.  Lease requirements.  All leases for nonferrous metallic minerals or petroleum, gas, or oil must be approved by the Executive Council, and any other mineral lease issued pursuant to this section that covers 160 or more acres must be approved by the Executive Council.  The rents, royalties, terms, conditions, and covenants of all such leases shall must be fixed by the commissioner according to rules adopted by the commissioner, but no lease shall be for a longer term than 50 years, and all rents, royalties, terms, conditions, and covenants shall must be fully set forth in each lease issued.  No nonferrous metallic mineral lease shall be canceled by the state for failure to meet production requirements prior to the 36th year of the lease.  The rents and royalties shall must be credited to the funds as provided in section 93.22.  For purposes of this section, "gas" includes both hydrocarbon and nonhydrocarbon gases.

 

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

 

Sec. 20.  [93.513] PROHIBITION ON PRODUCTION OF GAS OR OIL WITHOUT PERMIT.

 

Subdivision 1.  Permit required.  Except as provided in section 103I.681, a person must not engage in or carry out production of gas or oil from consolidated or unconsolidated formations in the state unless the person has first obtained a permit for the production of gas or oil from the commissioner of natural resources.  Any permit under this section must be protective of natural resources and require a demonstration of control of the extraction area through ownership, lease, or agreement.  For purposes of this section, "gas" includes both hydrocarbon and nonhydrocarbon gases.  For purposes of this section, "production" includes extraction and beneficiation of gas or oil.

 

Subd. 2.  Moratorium.  Until rules are adopted under section 93.514, a permit authority may not grant a permit necessary for the production of gas or oil unless the permit authority has been given legislative approval to issue the permit.

 

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

 

Sec. 21.  [93.514] GAS AND OIL PRODUCTION RULEMAKING.

 

(a) The following agencies may adopt rules governing gas and oil exploration or production, as applicable:

 

(1) the commissioner of the Pollution Control Agency may adopt or amend rules regulating air emissions; water discharges, including stormwater management; and storage tanks as they pertain to gas and oil production;

 

(2) the commissioner of health may adopt or amend rules on groundwater and surface water protection, exploratory boring construction, drilling registration and licensure, and inspections as they pertain to the exploration and appraisal of gas and oil resources;

 

(3) the Environmental Quality Board may adopt or amend rules to establish mandatory categories for environmental review as they pertain to gas and oil production;

 

(4) the commissioner of natural resources must adopt or amend rules pertaining to the conversion of an exploratory boring to a production well, pooling, spacing, unitization, well abandonment, siting, financial assurance, and reclamation for the production of gas and oil; and

 

(5) the commissioner of labor and industry may adopt or amend rules to protect workers from exposure and other potential hazards from gas and oil production.


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(b) An agency adopting rules under this section must publish the notice of intent to adopt rules within 24 months of the effective date of this section.  The 18-month time limit under section 14.125 does not apply to rules adopted under this section.

 

(c) For purposes of this section, "gas" includes both hydrocarbon and nonhydrocarbon gases.  "Production" includes extraction and beneficiation of gas or oil from consolidated or unconsolidated formations in the state.

 

(d) Any grant of rulemaking authority in this section is in addition to existing rulemaking authority and does not replace, impair, or interfere with any existing rulemaking authority.

 

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

 

Sec. 22.  [93.516] GAS AND OIL LEASING.

 

Subdivision 1.  Authority to lease.  (a) With the approval of the Executive Council, the commissioner of natural resources may enter into leases for gas or oil exploration and production from lands belonging to the state or in which the state has an interest. 

 

(b) For purposes of this section, "gas or oil exploration and production" includes the exploration and production of both hydrocarbon and nonhydrocarbon gases, including noble gases.  "Noble gases" means a group of gases that includes helium, neon, argon, krypton, xenon, radon, and oganesson.  "Production" includes extraction and beneficiation of gas or oil from consolidated or unconsolidated formations in the state.

 

Subd. 2.  Application.  An application for a lease under this section must be submitted to the commissioner of natural resources.  The commissioner must prescribe the information to be included in the application.  The applicant must submit with the application a certified check, cashier's check, or bank money order payable to the Department of Natural Resources in the sum of $100 as a fee for filing the application.  The application fee must not be refunded under any circumstances.  The right is reserved to the state to reject any or all applications for an oil or gas lease.

 

Subd. 3.  Lease terms.  The commissioner must negotiate the terms of each lease entered into under this section on a case-by-case basis, taking into account the unique geological and environmental aspects of each proposal, control of adjacent lands, and the best interests of the state.  A lease entered into under this section must be consistent with the following:

 

(1) the primary term of the lease may not exceed five years plus the unexpired portion of the calendar year in which the lease is issued.  The commissioner and applicant may negotiate the conditions by which the lease may be extended beyond the primary term, in whole or in part;

 

(2) a bonus consideration of not less than $15 per acre must be paid by the applicant to the Department of Natural Resources before the lease is executed;

 

(3) the commissioner of natural resources may require an applicant to provide financial assurance to ensure payment of any damages resulting from the production of gas or oil;

 

(4) the rental rates must not be less than $5 per acre per year for the unexpired portion of the calendar year in which the lease is issued and in years thereafter; and


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(5) on gas and oil produced and sold by the lessee from the lease area, the lessee must pay a production royalty to the Department of Natural Resources of not less than 18.75 percent of the gross sales price of the product sold free on board at the delivery point, and the royalty must be credited as provided in section 93.22.  For purposes of this section, "gross sales price" means the total consideration paid by the first purchaser that is not an affiliate of the lessee for gas or oil produced from the leased premises.

 

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

 

Page 73, after line 20, insert:

 

"Sec. 53.  MINNESOTA GAS AND OIL RESOURCES TECHNICAL ADVISORY COMMITTEE.

 

(a) The commissioner of natural resources must appoint a Minnesota Gas and Oil Resources Technical Advisory Committee to develop recommendations according to paragraph (d).  The commissioner may appoint representatives from the following entities to the technical advisory committee:

 

(1) the Pollution Control Agency;

 

(2) the Environmental Quality Board;

 

(3) the Department of Health;

 

(4) the Department of Revenue;

 

(5) the Office of the Attorney General;

 

(6) the University of Minnesota; and

 

(7) federal agencies.

 

(b) A majority of the committee members must be from state agencies, and all members must have expertise in at least one of the following areas:  environmental review; air quality; water quality; taxation; mine permitting; mineral, gas, or oil exploration and development; well construction; law; or other areas related to gas or oil production.

 

(c) Members of the technical advisory committee may not be registered lobbyists.

 

(d) The technical advisory committee must make recommendations to the commissioner relating to the production of gas and oil in the state to guide the creation of a temporary regulatory framework that will govern permitting before the rules authorized in Minnesota Statutes, section 93.514, are adopted.  The temporary framework must include recommendations on statutory and policy changes that govern permitting requirements and processes, financial assurance, taxation, boring monitoring and inspection protocols, environmental review, and other topics that provide for gas and oil production to be conducted in a manner that will reduce environmental impacts to the extent practicable, mitigate unavoidable impacts, and ensure that the production area is restored to a condition that protects natural resources and minimizes harm and that any ongoing maintenance required to protect natural resources is provided.  The temporary framework must consider public testimony from stakeholders and Tribes, and the committee must hold at least one public meeting on this topic.  Recommendations must include draft legislative language.


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(e) By January 15, 2025, the commissioner must submit to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over environment recommendations for statutory and policy changes to facilitate gas and oil exploration and production in this state and to support the issuance of temporary permits issued under the temporary framework in a manner that benefits the people of Minnesota while adequately protecting the state's natural resources.

 

(f) For purposes of this section, "gas" includes both hydrocarbon and nonhydrocarbon gases.  For purposes of this section, "production" includes extraction and beneficiation from consolidated or unconsolidated formations in the state.

 

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

 

Page 128, lines 10 to 12, delete the new language

 

Page 128, delete section 6

 

Renumber the sections in sequence

 

Amend the title as follows:

 

Page 1, line 2, delete "revenue and"

 

Page 1, line 9, after the first semicolon, insert "providing for gas and oil exploration and production leases and permits on state-owned land;"

 

Correct the title numbers accordingly

 

 

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

 

      The report was adopted.

 

 

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

 

H. F. No. 4975, A bill for an act relating to state government; repealing the renewable development account report; amending Minnesota Statutes 2023 Supplement, section 116C.779, subdivision 1.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

APPROPRIATIONS

 

      Section 1.  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 63, article 9, to the agencies and for the purposes specified in this article.  The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose.  The figures "2024" and "2025" used in this article mean that the addition to or


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subtraction from the appropriation listed under them is available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.  "The first year" is fiscal year 2024.  "The second year" is fiscal year 2025.  Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2024, are effective the day following final enactment.

 

 

 

 

APPROPRIATIONS

 

 

 

Available for the Year

 

 

 

Ending June 30

 

 

 

2024

2025

 

      Sec. 2.  OFFICE OF CANNABIS MANAGEMENT

 

$-0-

 

$2,727,000

 

(a) Enforcement of Temporary Regulations

 

$1,107,000 in fiscal year 2025 is for regulation of products subject to the requirements of Minnesota Statutes, section 151.72.  This is a onetime appropriation.

 

(b) Product Testing

 

$771,000 in fiscal year 2025 is for testing products regulated under Minnesota Statutes, section 151.72, and chapter 342.  The base for this appropriation is $690,000 in fiscal year 2026 and each year thereafter.

 

(c) Reference Laboratory

 

$849,000 in fiscal year 2025 is to operate a state reference laboratory.  The base for this appropriation is $632,000 in fiscal year 2026 and $696,000 in fiscal year 2027.

 

      Sec. 3.  DEPARTMENT OF HEALTH

 

$-0-

 

$5,500,000

 

$5,500,000 in fiscal year 2025 is for the purposes outlined in Minnesota Statutes, section 342.72.

 

Sec. 4.  ATTORNEY GENERAL.

 

The general fund appropriation base for the attorney general is increased by $988,000 in fiscal year 2026 and $748,000 in fiscal year 2027 for staffing and other costs related to potential violations, compliance monitoring, and enforcement of the Minnesota Consumer Data Privacy Act.

 

Sec. 5.  Laws 2023, chapter 63, article 9, section 10, is amended to read:

 

      Sec. 10.  HEALTH

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$3,300,000

 

$ 20,252,000 17,525,000

 

The base for this appropriation is $19,064,000 $17,742,000 in fiscal year 2026 and each fiscal year thereafter $17,678,000 in fiscal year 2027.


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

 

      Subd. 2.  Youth Prevention and Education Program

 

-0-

 

5,000,000 4,363,000

 

For administration and grants under Minnesota Statutes, section 144.197, subdivision 1.  Of the amount appropriated, $2,863,000 is for program operations and administration and $1,500,000 is for grants.  The base for this appropriation is $4,534,000 in fiscal year 2026 and $4,470,000 in fiscal year 2027.

 

      Subd. 3.  Prevention and Education Grants for Pregnant or Breastfeeding Individuals

-0-

 

2,000,000 1,788,000

 

For grants under a coordinated prevention and education program for pregnant and breastfeeding individuals under Minnesota Statutes, section 144.197, subdivision 2.  The base for this appropriation is $1,834,000 beginning in fiscal year 2026.

 

      Subd. 4.  Local and Tribal Health Departments

 

-0-

 

10,000,000

 

For administration and grants under Minnesota Statutes, section 144.197, subdivision 4.  Of the amount appropriated, $1,094,000 is for administration and $8,906,000 is for grants.

 

      Subd. 5.  Cannabis Data Collection and Biennial Reports

493,000

 

493,000

 

For reports under Minnesota Statutes, section 144.196.

 

      Subd. 6.  Administration for Expungement Orders

 

71,000

 

71,000

 

For administration related to orders issued by the Cannabis Expungement Board.  The base for this appropriation is $71,000 in fiscal year 2026, $71,000 in fiscal year 2027, $71,000 in fiscal year 2028, $71,000 in fiscal year 2029, and $0 in fiscal year 2030.

 

      Subd. 7.  Grants to the Minnesota Poison Control System

910,000

 

810,000

 

For administration and grants under Minnesota Statutes, section 145.93.  Of the amount appropriated in fiscal year 2025, $15,000 is for administration and $795,000 is for grants.

 

      Subd. 8.  Temporary Regulation of Edible Products Extracted from Hemp

 

1,107,000

 

 

1,107,000 -0-

 

For temporary regulation under the health enforcement consolidation act of edible products extracted from hemp.  The commissioner may transfer encumbrances and unobligated amounts to the Office of Cannabis Management for this purpose.  This is a onetime appropriation.


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         Subd. 9.  Testing. 

 

719,000

 

771,000 -0-

 

For testing of edible cannabinoid products.  The base for this appropriation is $690,000 in fiscal year 2026 and each fiscal year thereafter.  The commissioner may transfer encumbrances and unobligated amounts to the Office of Cannabis Management for this purpose.

 

Sec. 6.  Laws 2023, chapter 63, article 9, section 19, is amended to read:

 

Sec. 19.  APPROPRIATION AND BASE REDUCTIONS.

 

(a) The commissioner of management and budget must reduce general fund appropriations to the commissioner of corrections by $165,000 in fiscal year 2024 and $368,000 in fiscal year 2025.  The commissioner must reduce the base for general fund appropriations to the commissioner of corrections by $460,000 in fiscal year 2026 and $503,000 in fiscal year 2027.

 

(b) The commissioner of management and budget must reduce general fund appropriations to the commissioner of health by $260,000 in fiscal year 2025 for the administration of the medical cannabis program.  The commissioner must reduce the base for general fund appropriations to the commissioner of health by $781,000 in fiscal year 2026 and each fiscal year thereafter.

 

(c) The commissioner of management and budget must reduce state government special revenue fund appropriations to the commissioner of health by $1,141,000 in fiscal year 2025 for the administration of the medical cannabis program.  The commissioner must reduce the base for state government special revenue fund appropriations to the commissioner of health by $3,424,000 in fiscal year 2026 and each fiscal year thereafter.

 

Sec. 7.  Laws 2023, chapter 63, article 9, section 20, is amended to read:

 

Sec. 20.  TRANSFERS.

 

(a) $1,000,000 in fiscal year 2024 and $1,000,000 in fiscal year 2025 are transferred from the general fund to the dual training account in the special revenue fund under Minnesota Statutes, section 136A.246, subdivision 10, for grants to employers in the legal cannabis industry.  The base for this transfer is $1,000,000 in fiscal year 2026 and each fiscal year thereafter.  The commissioner may use up to six percent of the amount transferred for administrative costs.  The commissioner shall give priority to applications from employers who are, or who are training employees who are, eligible to be social equity applicants under Minnesota Statutes, section 342.17.  After June 30, 2025, any unencumbered balance from this transfer may be used for grants to any eligible employer under Minnesota Statutes, section 136A.246.

 

(b) $5,500,000 in fiscal year 2024 and $5,500,000 in fiscal year 2025 are transferred from the general fund to the substance use treatment, recovery, and prevention grant account established under Minnesota Statutes, section 342.72.  The base for this transfer is $5,500,000 in fiscal year 2026 and each fiscal year thereafter.

 

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


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ARTICLE 2

CANNABIS AND HEALTH-RELATED RESPONSIBILITIES

 

Section 1.  Minnesota Statutes 2023 Supplement, section 144.197, is amended to read:

 

144.197 CANNABIS AND SUBSTANCE MISUSE PREVENTION AND EDUCATION PROGRAMS.

 

Subdivision 1.  Youth prevention and education program.  The commissioner of health, in consultation with the commissioners of human services and education and in collaboration with local health departments and Tribal health departments, shall conduct a long-term, coordinated education program to raise public awareness about and address the top three substance misuse prevention, treatment options, and recovery options.  The program must address adverse health effects, as determined by the commissioner, associated with the use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products by persons under age 25.  In conducting this education program, the commissioner shall engage and consult with youth around the state on program content and on methods to effectively disseminate program information to youth around the state.

 

Subd. 2.  Prevention and education program for pregnant and breastfeeding individuals; and individuals who may become pregnant.  The commissioner of health, in consultation with the commissioners of human services and education, shall conduct a long-term, coordinated prevention program to educate focused on (1) preventing substance use by pregnant individuals, breastfeeding individuals, and individuals who may become pregnant, and (2) raising public awareness of the risks of substance use while pregnant or breastfeeding.  The program must include education on the adverse health effects of prenatal exposure to cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products and on the adverse health effects experienced by infants and children who are exposed to cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in breast milk, from secondhand smoke, or by ingesting cannabinoid products.  This The prevention and education program must also educate individuals on what constitutes a substance use disorder, signs of a substance use disorder, and treatment options for persons with a substance use disorder.  The prevention and education program must also provide resources, including training resources, technical assistance, or educational materials, to local public health home visiting programs, Tribal home visiting programs, and child welfare workers.

 

Subd. 3.  Home visiting programs.  The commissioner of health shall provide training, technical assistance, and education materials to local public health home visiting programs and Tribal home visiting programs and child welfare workers regarding the safe and unsafe use of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in homes with infants and young children.  Training, technical assistance, and education materials shall address substance use, the signs of a substance use disorder, treatment options for persons with a substance use disorder, the dangers of driving under the influence of cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products, how to safely consume cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products in homes with infants and young children, and how to prevent infants and young children from being exposed to cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products by ingesting cannabinoid products or through secondhand smoke.

 

Subd. 4.  Local and Tribal health departments.  The commissioner of health shall distribute grants to local health departments and Tribal health departments for these the departments to create and disseminate educational materials on cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products and to provide safe use and prevention training, education, technical assistance, and community engagement regarding cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products.  prevention, education, and recovery programs focusing on substance misuse prevention and treatment options.  The programs may include specific cannabis-related initiatives.


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Sec. 2.  Minnesota Statutes 2023 Supplement, section 342.15, is amended by adding a subdivision to read:

 

Subd. 1a.  Transmission of fees.  A cannabis business background check account is established as a separate account in the special revenue fund.  All fees received by the office under subdivision 1 must be deposited in the account and are appropriated to the office to pay for the criminal records checks conducted by the Bureau of Criminal Apprehension and Federal Bureau of Investigation.

 

Sec. 3.  Minnesota Statutes 2023 Supplement, section 342.72, is amended to read:

 

342.72 SUBSTANCE USE TREATMENT, RECOVERY, AND PREVENTION GRANTS.

 

Subdivision 1.  Account Grant program established; appropriation.  A substance use treatment, recovery, and prevention grant account program is created in the special revenue fund established and must be administered by the commissioner of health.  Money in the account, including interest earned, is appropriated to the office for the purposes specified in this section.  Of the amount transferred from the general fund to the account, the office may use up to five percent for administrative expenses.

 

Subd. 2.  Acceptance of gifts and grants.  Notwithstanding sections 16A.013 to 16A.016, the office may accept money contributed by individuals and may apply for grants from charitable foundations to be used for the purposes identified in this section.  The money accepted under this section must be deposited in the substance use treatment, recovery, and prevention grant account created under subdivision 1.

 

Subd. 3.  Disposition of money; grants.  (a) Money in the Substance use treatment, recovery, and prevention grant account grants must be distributed as follows:

 

(1) at least 75 percent of the money is for grants for substance use disorder and mental health recovery and prevention programs.  Funds must be used for recovery and prevention activities, including substance use prevention for youth, and supplies that assist individuals and families to initiate, stabilize, and maintain long-term recovery from substance use disorders and co-occurring mental health conditions.  Recovery and prevention activities may include prevention education, school-linked behavioral health, school-based peer programs, peer supports, self-care and wellness, culturally specific healing, community public awareness, mutual aid networks, telephone recovery checkups, mental health warmlines, harm reduction, recovery community organization development, first episode psychosis programs, and recovery housing; and

 

(2) up to 25 percent of the money is for substance use disorder treatment programs as defined in chapter 245G and may be used to implement, strengthen, or expand supportive services and activities that are not covered by medical assistance under chapter 256B, MinnesotaCare under chapter 256L, or the behavioral health fund under chapter 254B.  Services and activities may include adoption or expansion of evidence-based practices; competency‑based training; continuing education; culturally specific and culturally responsive services; sober recreational activities; developing referral relationships; family preservation and healing; and start-up or capacity funding for programs that specialize in adolescent, culturally specific, culturally responsive, disability-specific, co‑occurring disorder, or family treatment services.

 

(b) The office commissioner of health shall consult with the Governor's Advisory Council on Opioids, Substance Use, and Addiction; the commissioner of human services; and the commissioner of health the Office of Cannabis Management to develop an appropriate application process, establish grant requirements, determine what organizations are eligible to receive grants, and establish reporting requirements for grant recipients.

 

Subd. 4.  Reports to the legislature.  By January 15, 2024, and each January 15 thereafter year, the office commissioner of health must submit a report to the chairs and ranking minority members of the committees of the house of representatives and the senate having jurisdiction over health and human services policy and finance that


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details grants awarded from the substance use treatment, recovery, and prevention grant account grants awarded, including the total amount awarded, total number of recipients, and geographic distribution of those recipients.  Notwithstanding section 144.05, subdivision 7, the reporting requirement under this subdivision does not expire.

 

Sec. 4.  REPORT BY THE COMMISSIONER OF COMMERCE.

 

By January 30, 2025, the commissioner of commerce must report to the chairs and ranking minority members of the legislative committees with jurisdiction over commerce, health, and human services, regarding the balance of the premium security plan account under Minnesota Statutes, section 62E.25, subdivision 1, the estimated cost to continue the premium security plan, and the plan's future interactions with public health programs.  The report must include an assessment of potential alternatives that would be available upon expiration of the current waiver.

 

ARTICLE 3

INSURANCE ASSESSMENTS AND FEES

 

Section 1.  Minnesota Statutes 2022, section 45.0135, subdivision 7, is amended to read:

 

Subd. 7.  Assessment.  Each insurer authorized to sell insurance in the state of Minnesota, including surplus lines carriers, and having Minnesota earned premium the previous calendar year shall remit an assessment to the commissioner for deposit in the insurance fraud prevention account on or before June 1 of each year.  The amount of the assessment shall be based on the insurer's total assets and on the insurer's total written Minnesota premium, for the preceding fiscal year, as reported pursuant to section 60A.13.  The assessment is calculated to be an amount up to the following Beginning with the payment due on or before June 1, 2024, the assessment amount is:

 

 

Total Assets

 

Assessment

 

Less than $100,000,000

 

 

$ 200 400

 

$100,000,000 to $1,000,000,000

 

 

$ 750 1,500

 

Over $1,000,000,000

 

 

 

$ 2,000 4,000

 

Minnesota Written Premium

 

Assessment

 

Less than $10,000,000

 

 

$ 200 400

 

$10,000,000 to $100,000,000

 

 

$ 750 1,500

 

Over $100,000,000

 

 

$ 2,000 4,000

 

For purposes of this subdivision, the following entities are not considered to be insurers authorized to sell insurance in the state of Minnesota:  risk retention groups; or township mutuals organized under chapter 67A.

 

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

 

Sec. 2.  Minnesota Statutes 2022, section 62Q.73, subdivision 3, is amended to read:

 

Subd. 3.  Right to external review.  (a) Any enrollee or anyone acting on behalf of an enrollee who has received an adverse determination may submit a written request for an external review of the adverse determination, if applicable under section 62Q.68, subdivision 1, or 62M.06, to the commissioner of health if the request involves a health plan company regulated by that commissioner or to the commissioner of commerce if the request involves a health plan company regulated by that commissioner.  Notification of the enrollee's right to external review must accompany the denial issued by the insurer.  The written request must be accompanied by a filing fee of $25.  The fee may be waived by the commissioner of health or commerce in cases of financial hardship and must be refunded if the adverse determination is completely reversed.  No enrollee may be subject to filing fees totaling more than $75 during a plan year for group coverage or policy year for individual coverage.


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(b) Nothing in this section requires the commissioner of health or commerce to independently investigate an adverse determination referred for independent external review.

 

(c) If an enrollee requests an external review, the health plan company must participate in the external review.  The cost of the external review in excess of the filing fee described in paragraph (a) shall must be borne by the health plan company.

 

(d) The enrollee must request external review within six months from the date of the adverse determination.

 

ARTICLE 4

CONSUMER DATA PRIVACY

 

Section 1.  [13.6505] ATTORNEY GENERAL DATA CODED ELSEWHERE.

 

Subdivision 1.  Scope.  The section referred to in this section is codified outside this chapter.  Those sections classify attorney general data as other than public, place restrictions on access to government data, or involve data sharing.

 

Subd. 2.  Data privacy and protection assessments.  A data privacy and protection assessment collected or maintained by the attorney general is classified under section 325O.08.

 

Sec. 2.  [325O.01] CITATION.

 

This chapter may be cited as the "Minnesota Consumer Data Privacy Act."

 

Sec. 3.  [325O.02] DEFINITIONS.

 

(a) For purposes of this chapter, the following terms have the meanings given.

 

(b) "Affiliate" means a legal entity that controls, is controlled by, or is under common control with another legal entity.  For purposes of this paragraph, "control" or "controlled" means:  ownership of or the power to vote more than 50 percent of the outstanding shares of any class of voting security of a company; control in any manner over the election of a majority of the directors or of individuals exercising similar functions; or the power to exercise a controlling influence over the management of a company.

 

(c) "Authenticate" means to use reasonable means to determine that a request to exercise any of the rights under section 325O.05, subdivision 1, paragraphs (b) to (h), is being made by or rightfully on behalf of the consumer who is entitled to exercise the rights with respect to the personal data at issue.

 

(d) "Biometric data" means data generated by automatic measurements of an individual's biological characteristics, including a fingerprint, a voiceprint, eye retinas, irises, or other unique biological patterns or characteristics that are used to identify a specific individual.  Biometric data does not include:

 

(1) a digital or physical photograph;

 

(2) an audio or video recording; or

 

(3) any data generated from a digital or physical photograph, or an audio or video recording, unless the data is generated to identify a specific individual.

 

(e) "Child" has the meaning given in United States Code, title 15, section 6501.


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(f) "Consent" means any freely given, specific, informed, and unambiguous indication of the consumer's wishes by which the consumer signifies agreement to the processing of personal data relating to the consumer.  Acceptance of a general or broad terms of use or similar document that contains descriptions of personal data processing along with other, unrelated information does not constitute consent.  Hovering over, muting, pausing, or closing a given piece of content does not constitute consent.  A consent is not valid when the consumer's indication has been obtained by a dark pattern.  A consumer may revoke consent previously given, consistent with this chapter.

 

(g) "Consumer" means a natural person who is a Minnesota resident acting only in an individual or household context.  Consumer does not include a natural person acting in a commercial or employment context.

 

(h) "Controller" means the natural or legal person who, alone or jointly with others, determines the purposes and means of the processing of personal data.

 

(i) "Decisions that produce legal or similarly significant effects concerning the consumer" means decisions made by the controller that result in the provision or denial by the controller of financial or lending services, housing, insurance, education enrollment or opportunity, criminal justice, employment opportunities, health care services, or access to essential goods or services.

 

(j) "Dark pattern" means a user interface designed or manipulated with the substantial effect of subverting or impairing user autonomy, decision making, or choice.

 

(k) "Deidentified data" means data that cannot reasonably be used to infer information about or otherwise be linked to an identified or identifiable natural person or a device linked to an identified or identifiable natural person, provided that the controller that possesses the data:

 

(1) takes reasonable measures to ensure that the data cannot be associated with a natural person;

 

(2) publicly commits to process the data only in a deidentified fashion and not attempt to reidentify the data; and

 

(3) contractually obligates any recipients of the information to comply with all provisions of this paragraph.

 

(l) "Delete" means to remove or destroy information so that it is not maintained in human- or machine-readable form and cannot be retrieved or utilized in the ordinary course of business.

 

(m) "Genetic information" has the meaning given in section 13.386, subdivision 1.

 

(n) "Identified or identifiable natural person" means a person who can be readily identified, directly or indirectly.

 

(o) "Known child" means a person under circumstances where a controller has actual knowledge of, or willfully disregards, that the person is under 13 years of age.

 

(p) "Personal data" means any information that is linked or reasonably linkable to an identified or identifiable natural person.  Personal data does not include deidentified data or publicly available information.  For purposes of this paragraph, "publicly available information" means information that (1) is lawfully made available from federal, state, or local government records or widely distributed media, or (2) a controller has a reasonable basis to believe has lawfully been made available to the general public.

 

(q) "Process" or "processing" means any operation or set of operations that are performed on personal data or on sets of personal data, whether or not by automated means, including but not limited to the collection, use, storage, disclosure, analysis, deletion, or modification of personal data.


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(r) "Processor" means a natural or legal person who processes personal data on behalf of a controller.

 

(s) "Profiling" means any form of automated processing of personal data to evaluate, analyze, or predict personal aspects related to an identified or identifiable natural person's economic situation, health, personal preferences, interests, reliability, behavior, location, or movements.

 

(t) "Pseudonymous data" means personal data that cannot be attributed to a specific natural person without the use of additional information, provided that the additional information is kept separately and is subject to appropriate technical and organizational measures to ensure that the personal data are not attributed to an identified or identifiable natural person.

 

(u) "Sale," "sell," or "sold" means the exchange of personal data for monetary or other valuable consideration by the controller to a third party.  Sale does not include the following:

 

(1) the disclosure of personal data to a processor who processes the personal data on behalf of the controller;

 

(2) the disclosure of personal data to a third party for purposes of providing a product or service requested by the consumer;

 

(3) the disclosure or transfer of personal data to an affiliate of the controller;

 

(4) the disclosure of information that the consumer intentionally made available to the general public via a channel of mass media and did not restrict to a specific audience;

 

(5) the disclosure or transfer of personal data to a third party as an asset that is part of a completed or proposed merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the controller's assets; or

 

(6) the exchange of personal data between the producer of a good or service and authorized agents of the producer who sell and service the goods and services, to enable the cooperative provisioning of goods and services by both the producer and the producer's agents.

 

(v) Sensitive data is a form of personal data.  "Sensitive data" means:

 

(1) personal data revealing racial or ethnic origin, religious beliefs, mental or physical health condition or diagnosis, sexual orientation, or citizenship or immigration status;

 

(2) the processing of biometric data or genetic information for the purpose of uniquely identifying an individual;

 

(3) the personal data of a known child; or

 

(4) specific geolocation data.

 

(w) "Specific geolocation data" means information derived from technology, including but not limited to global positioning system level latitude and longitude coordinates or other mechanisms, that directly identifies the geographic coordinates of a consumer or a device linked to a consumer with an accuracy of more than three decimal degrees of latitude and longitude or the equivalent in an alternative geographic coordinate system, or a street address derived from the coordinates.  Specific geolocation data does not include the content of communications, the contents of databases containing street address information which are accessible to the public as authorized by law, or any data generated by or connected to advanced utility metering infrastructure systems or other equipment for use by a public utility.


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(x) "Targeted advertising" means displaying advertisements to a consumer where the advertisement is selected based on personal data obtained or inferred from the consumer's activities over time and across nonaffiliated websites or online applications to predict the consumer's preferences or interests.  Targeted advertising does not include:

 

(1) advertising based on activities within a controller's own websites or online applications;

 

(2) advertising based on the context of a consumer's current search query or visit to a website or online application;

 

(3) advertising to a consumer in response to the consumer's request for information or feedback; or

 

(4) processing personal data solely for measuring or reporting advertising performance, reach, or frequency.

 

(y) "Third party" means a natural or legal person, public authority, agency, or body other than the consumer, controller, processor, or an affiliate of the processor or the controller.

 

(z) "Trade secret" has the meaning given in section 325C.01, subdivision 5.

 

Sec. 4.  [325O.03] SCOPE; EXCLUSIONS.

 

Subdivision 1.  Scope.  (a) This chapter applies to legal entities that conduct business in Minnesota or produce products or services that are targeted to residents of Minnesota, and that satisfy one or more of the following thresholds:

 

(1) during a calendar year, controls or processes personal data of 100,000 consumers or more, excluding personal data controlled or processed solely for the purpose of completing a payment transaction; or

 

(2) derives over 25 percent of gross revenue from the sale of personal data and processes or controls personal data of 25,000 consumers or more.

 

(b) A controller or processor acting as a technology provider under section 13.32 shall comply with this chapter and section 13.32, except that when the provisions of section 13.32 conflict with this chapter, section 13.32 prevails.

 

Subd. 2.  Exclusions.  (a) This chapter does not apply to the following entities, activities, or types of information:

 

(1) a government entity, as defined by section 13.02, subdivision 7a;

 

(2) a federally recognized Indian tribe;

 

(3) information that meets the definition of:

 

(i) protected health information, as defined by and for purposes of the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, and related regulations;

 

(ii) health records, as defined in section 144.291, subdivision 2;

 

(iii) patient identifying information for purposes of Code of Federal Regulations, title 42, part 2, established pursuant to United States Code, title 42, section 290dd-2;


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(iv) identifiable private information for purposes of the federal policy for the protection of human subjects, Code of Federal Regulations, title 45, part 46; identifiable private information that is otherwise information collected as part of human subjects research pursuant to the good clinical practice guidelines issued by the International Council for Harmonisation; the protection of human subjects under Code of Federal Regulations, title 21, parts 50 and 56; or personal data used or shared in research conducted in accordance with one or more of the requirements set forth in this paragraph;

 

(v) information and documents created for purposes of the federal Health Care Quality Improvement Act of 1986, Public Law 99-660, and related regulations; or

 

(vi) patient safety work product for purposes of Code of Federal Regulations, title 42, part 3, established pursuant to United States Code, title 42, sections 299b-21 to 299b-26;

 

(4) information that is derived from any of the health care-related information listed in clause (3), but that has been deidentified in accordance with the requirements for deidentification set forth in Code of Federal Regulations, title 45, part 164;

 

(5) information originating from, and intermingled to be indistinguishable with, any of the health care-related information listed in clause (3) that is maintained by:

 

(i) a covered entity or business associate, as defined by the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, and related regulations;

 

(ii) a health care provider, as defined in section 144.291, subdivision 2; or

 

(iii) a program or a qualified service organization, as defined by Code of Federal Regulations, title 42, part 2, established pursuant to United States Code, title 42, section 290dd-2;

 

(6) information that is:

 

(i) maintained by an entity that meets the definition of health care provider under Code of Federal Regulations, title 45, section 160.103, to the extent that the entity maintains the information in the manner required of covered entities with respect to protected health information for purposes of the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191, and related regulations;

 

(ii) included in a limited data set, as described under Code of Federal Regulations, title 45, part 164.514(e), to the extent that the information is used, disclosed, and maintained in the manner specified by that part;

 

(iii) maintained by, or maintained to comply with the rules or orders of, a self-regulatory organization as defined by United States Code, title 15, section 78c(a)(26); or

 

(iv) originated from, or intermingled with, information described in clause (9) and that a licensed residential mortgage originator, as defined under section 58.02, subdivision 19, or residential mortgage servicer, as defined under section 58.02, subdivision 20, collects, processes, uses, or maintains in the same manner as required under the laws and regulations specified in clause (9);

 

(7) information used only for public health activities and purposes, as described under Code of Federal Regulations, title 45, part 164.512;


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(8) an activity involving the collection, maintenance, disclosure, sale, communication, or use of any personal data bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living by a consumer reporting agency, as defined in United States Code, title 15, section 1681a(f), by a furnisher of information, as set forth in United States Code, title 15, section 1681s-2, who provides information for use in a consumer report, as defined in United States Code, title 15, section 1681a(d), and by a user of a consumer report, as set forth in United States Code, title 15, section 1681b, except that information is only excluded under this paragraph to the extent that the activity involving the collection, maintenance, disclosure, sale, communication, or use of the information by the agency, furnisher, or user is subject to regulation under the federal Fair Credit Reporting Act, United States Code, title 15, sections 1681 to 1681x, and the information is not collected, maintained, used, communicated, disclosed, or sold except as authorized by the Fair Credit Reporting Act;

 

(9) personal data collected, processed, sold, or disclosed pursuant to the federal Gramm-Leach-Bliley Act, Public Law 106-102, and implementing regulations, if the collection, processing, sale, or disclosure is in compliance with that law;

 

(10) personal data collected, processed, sold, or disclosed pursuant to the federal Driver's Privacy Protection Act of 1994, United States Code, title 18, sections 2721 to 2725, if the collection, processing, sale, or disclosure is in compliance with that law;

 

(11) personal data regulated by the federal Family Educational Rights and Privacy Act, United States Code, title 20, section 1232g, and implementing regulations;

 

(12) personal data collected, processed, sold, or disclosed pursuant to the federal Farm Credit Act of 1971, as amended, United States Code, title 12, sections 2001 to 2279cc, and implementing regulations, Code of Federal Regulations, title 12, part 600, if the collection, processing, sale, or disclosure is in compliance with that law;

 

(13) data collected or maintained:

 

(i) in the course of an individual acting as a job applicant to or an employee, owner, director, officer, medical staff member, or contractor of a business if the data is collected and used solely within the context of the role;

 

(ii) as the emergency contact information of an individual under item (i) if used solely for emergency contact purposes; or

 

(iii) that is necessary for the business to retain to administer benefits for another individual relating to the individual under item (i) if used solely for the purposes of administering those benefits;

 

(14) personal data collected, processed, sold, or disclosed pursuant to the Minnesota Insurance Fair Information Reporting Act in sections 72A.49 to 72A.505;

 

(15) data collected, processed, sold, or disclosed as part of a payment-only credit, check, or cash transaction where no data about consumers, as defined in section 325O.02, are retained;

 

(16) a state or federally chartered bank or credit union, or an affiliate or subsidiary that is principally engaged in financial activities, as described in United States Code, title 12, section 1843(k);

 

(17) information that originates from, or is intermingled so as to be indistinguishable from, information described in clause (8) and that a person licensed under chapter 56 collects, processes, uses, or maintains in the same manner as is required under the laws and regulations specified in clause (8);


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(18) an insurance company, as defined in section 60A.02, subdivision 4, an insurance producer, as defined in section 60K.31, subdivision 6, a third-party administrator of self-insurance, or an affiliate or subsidiary of any entity identified in this clause that is principally engaged in financial activities, as described in United States Code, title 12, section 1843(k), except that this clause does not apply to a person that, alone or in combination with another person, establishes and maintains a self-insurance program that does not otherwise engage in the business of entering into policies of insurance;

 

(19) a small business, as defined by the United States Small Business Administration under Code of Federal Regulations, title 13, part 121, except that a small business identified in this clause is subject to section 325O.075;

 

(20) a nonprofit organization that is established to detect and prevent fraudulent acts in connection with insurance; and

 

(21) an air carrier subject to the federal Airline Deregulation Act, Public Law 95-504, only to the extent that an air carrier collects personal data related to prices, routes, or services and only to the extent that the provisions of the Airline Deregulation Act preempt the requirements of this chapter.

 

(b) Controllers that are in compliance with the Children's Online Privacy Protection Act, United States Code, title 15, sections 6501 to 6506, and implementing regulations, shall be deemed compliant with any obligation to obtain parental consent under this chapter.

 

Sec. 5.  [325O.04] RESPONSIBILITY ACCORDING TO ROLE.

 

(a) Controllers and processors are responsible for meeting the respective obligations established under this chapter.

 

(b) Processors are responsible under this chapter for adhering to the instructions of the controller and assisting the controller to meet the controller's obligations under this chapter.  Assistance under this paragraph shall include the following:

 

(1) taking into account the nature of the processing, the processor shall assist the controller by appropriate technical and organizational measures, insofar as this is possible, for the fulfillment of the controller's obligation to respond to consumer requests to exercise their rights pursuant to section 325O.05; and

 

(2) taking into account the nature of processing and the information available to the processor, the processor shall assist the controller in meeting the controller's obligations in relation to the security of processing the personal data and in relation to the notification of a breach of the security of the system pursuant to section 325E.61, and shall provide information to the controller necessary to enable the controller to conduct and document any data privacy and protection assessments required by section 325O.08.

 

(c) A contract between a controller and a processor shall govern the processor's data processing procedures with respect to processing performed on behalf of the controller.  The contract shall be binding and clearly set forth instructions for processing data, the nature and purpose of processing, the type of data subject to processing, the duration of processing, and the rights and obligations of both parties.  The contract shall also require that the processor:

 

(1) ensure that each person processing the personal data is subject to a duty of confidentiality with respect to the data; and


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(2) engage a subcontractor only (i) after providing the controller with an opportunity to object, and (ii) pursuant to a written contract in accordance with paragraph (e) that requires the subcontractor to meet the obligations of the processor with respect to the personal data.

 

(d) Taking into account the context of processing, the controller and the processor shall implement appropriate technical and organizational measures to ensure a level of security appropriate to the risk and establish a clear allocation of the responsibilities between the controller and the processor to implement the technical and organizational measures.

 

(e) Processing by a processor shall be governed by a contract between the controller and the processor that is binding on both parties and that sets out the processing instructions to which the processor is bound, including the nature and purpose of the processing, the type of personal data subject to the processing, the duration of the processing, and the obligations and rights of both parties.  The contract shall include the requirements imposed by this paragraph, paragraphs (c) and (d), as well as the following requirements:

 

(1) at the choice of the controller, the processor shall delete or return all personal data to the controller as requested at the end of the provision of services, unless retention of the personal data is required by law;

 

(2) upon a reasonable request from the controller, the processor shall make available to the controller all information necessary to demonstrate compliance with the obligations in this chapter; and

 

(3) the processor shall allow for, and contribute to, reasonable assessments and inspections by the controller or the controller's designated assessor.  Alternatively, the processor may arrange for a qualified and independent assessor to conduct, at least annually and at the processor's expense, an assessment of the processor's policies and technical and organizational measures in support of the obligations under this chapter.  The assessor must use an appropriate and accepted control standard or framework and assessment procedure for assessments as applicable, and shall provide a report of an assessment to the controller upon request.

 

(f) In no event shall any contract relieve a controller or a processor from the liabilities imposed on a controller or processor by virtue of the controller's or processor's roles in the processing relationship under this chapter.

 

(g) Determining whether a person is acting as a controller or processor with respect to a specific processing of data is a fact-based determination that depends upon the context in which personal data are to be processed.  A person that is not limited in the person's processing of personal data pursuant to a controller's instructions, or that fails to adhere to a controller's instructions, is a controller and not a processor with respect to a specific processing of data.  A processor that continues to adhere to a controller's instructions with respect to a specific processing of personal data remains a processor.  If a processor begins, alone or jointly with others, determining the purposes and means of the processing of personal data, the processor is a controller with respect to the processing.

 

Sec. 6.  [325O.05] CONSUMER PERSONAL DATA RIGHTS.

 

Subdivision 1.  Consumer rights provided.  (a) Except as provided in this chapter, a controller must comply with a request to exercise the consumer rights provided in this subdivision.

 

(b) A consumer has the right to confirm whether or not a controller is processing personal data concerning the consumer and access the categories of personal data the controller is processing.

 

(c) A consumer has the right to correct inaccurate personal data concerning the consumer, taking into account the nature of the personal data and the purposes of the processing of the personal data.

 

(d) A consumer has the right to delete personal data concerning the consumer.


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(e) A consumer has the right to obtain personal data concerning the consumer, which the consumer previously provided to the controller, in a portable and, to the extent technically feasible, readily usable format that allows the consumer to transmit the data to another controller without hindrance, where the processing is carried out by automated means.

 

(f) A consumer has the right to opt out of the processing of personal data concerning the consumer for purposes of targeted advertising, the sale of personal data, or profiling in furtherance of automated decisions that produce legal effects concerning a consumer or similarly significant effects concerning a consumer.

 

(g) If a consumer's personal data is profiled in furtherance of decisions that produce legal effects concerning a consumer or similarly significant effects concerning a consumer, the consumer has the right to question the result of the profiling, to be informed of the reason that the profiling resulted in the decision, and, if feasible, to be informed of what actions the consumer might have taken to secure a different decision and the actions that the consumer might take to secure a different decision in the future.  The consumer has the right to review the consumer's personal data used in the profiling.  If the decision is determined to have been based upon inaccurate personal data, taking into account the nature of the personal data and the purposes of the processing of the personal data, the consumer has the right to have the data corrected and the profiling decision reevaluated based upon the corrected data.

 

(h) A consumer has a right to obtain a list of the specific third parties to which the controller has disclosed the consumer's personal data.  If the controller does not maintain the information in a format specific to the consumer, a list of specific third parties to whom the controller has disclosed any consumers' personal data may be provided instead.

 

Subd. 2.  Exercising consumer rights.  (a) A consumer may exercise the rights set forth in this section by submitting a request, at any time, to a controller specifying which rights the consumer wishes to exercise.

 

(b) In the case of processing personal data concerning a known child, the parent or legal guardian of the known child may exercise the rights of this chapter on the child's behalf.

 

(c) In the case of processing personal data concerning a consumer legally subject to guardianship or conservatorship under sections 524.5-101 to 524.5-502, the guardian or the conservator of the consumer may exercise the rights of this chapter on the consumer's behalf.

 

(d) A consumer may designate another person as the consumer's authorized agent to exercise the consumer's right to opt out of the processing of the consumer's personal data for purposes of targeted advertising and sale under subdivision 1, paragraph (f), on the consumer's behalf.  A consumer may designate an authorized agent by way of, among other things, a technology, including but not limited to an Internet link or a browser setting, browser extension, or global device setting, indicating the consumer's intent to opt out of the processing.  A controller shall comply with an opt-out request received from an authorized agent if the controller is able to verify, with commercially reasonable effort, the identity of the consumer and the authorized agent's authority to act on the consumer's behalf.

 

Subd. 3.  Universal opt-out mechanisms.  (a) A controller must allow a consumer to opt out of any processing of the consumer's personal data for the purposes of targeted advertising, or any sale of the consumer's personal data through an opt-out preference signal sent, with the consumer's consent, by a platform, technology, or mechanism to the controller indicating the consumer's intent to opt out of the processing or sale.  The platform, technology, or mechanism must:

 

(1) not unfairly disadvantage another controller;


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(2) not make use of a default setting, but require the consumer to make an affirmative, freely given, and unambiguous choice to opt out of the processing of the consumer's personal data;

 

(3) be consumer-friendly and easy to use by the average consumer;

 

(4) be as consistent as possible with any other similar platform, technology, or mechanism required by any federal or state law or regulation; and

 

(5) enable the controller to accurately determine whether the consumer is a Minnesota resident and whether the consumer has made a legitimate request to opt out of any sale of the consumer's personal data or targeted advertising.  For purposes of this paragraph, the use of an Internet protocol address to estimate the consumer's location is sufficient to determine the consumer's residence.

 

(b) If a consumer's opt-out request is exercised through the platform, technology, or mechanism required under paragraph (a), and the request conflicts with the consumer's existing controller-specific privacy setting or voluntary participation in a controller's bona fide loyalty, rewards, premium features, discounts, or club card program, the controller must comply with the consumer's opt-out preference signal but may also notify the consumer of the conflict and provide the consumer a choice to confirm the controller-specific privacy setting or participation in the controller's program.

 

(c) The platform, technology, or mechanism required under paragraph (a) is subject to the requirements of subdivision 4.

 

(d) A controller that recognizes opt-out preference signals that have been approved by other state laws or regulations is in compliance with this subdivision.

 

Subd. 4.  Controller response to consumer requests.  (a) Except as provided in this chapter, a controller must comply with a request to exercise the rights pursuant to subdivision 1.

 

(b) A controller must provide one or more secure and reliable means for consumers to submit a request to exercise the consumer's rights under this section.  The means made available must take into account the ways in which consumers interact with the controller and the need for secure and reliable communication of the requests.

 

(c) A controller may not require a consumer to create a new account in order to exercise a right, but a controller may require a consumer to use an existing account to exercise the consumer's rights under this section.

 

(d) A controller must comply with a request to exercise the right in subdivision 1, paragraph (f), as soon as feasibly possible, but no later than 45 days of receipt of the request.

 

(e) A controller must inform a consumer of any action taken on a request under subdivision 1 without undue delay and in any event within 45 days of receipt of the request.  That period may be extended once by 45 additional days where reasonably necessary, taking into account the complexity and number of the requests.  The controller must inform the consumer of any extension within 45 days of receipt of the request, together with the reasons for the delay.

 

(f) If a controller does not take action on a consumer's request, the controller must inform the consumer without undue delay and at the latest within 45 days of receipt of the request of the reasons for not taking action and instructions for how to appeal the decision with the controller as described in subdivision 5.


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(g) Information provided under this section must be provided by the controller free of charge up to twice annually to the consumer.  Where requests from a consumer are manifestly unfounded or excessive, in particular because of the repetitive character of the requests, the controller may either charge a reasonable fee to cover the administrative costs of complying with the request, or refuse to act on the request.  The controller bears the burden of demonstrating the manifestly unfounded or excessive character of the request.

 

(h) A controller is not required to comply with a request to exercise any of the rights under subdivision 1, paragraphs (b) to (h), if the controller is unable to authenticate the request using commercially reasonable efforts.  In such cases, the controller may request the provision of additional information reasonably necessary to authenticate the request.  A controller is not required to authenticate an opt-out request, but a controller may deny an opt-out request if the controller has a good faith, reasonable, and documented belief that the request is fraudulent.  If a controller denies an opt-out request because the controller believes a request is fraudulent, the controller must notify the person who made the request that the request was denied due to the controller's belief that the request was fraudulent and state the controller's basis for that belief.

 

(i) In response to a consumer request under subdivision 1, a controller must not disclose the following information about a consumer, but must instead inform the consumer with sufficient particularity that the controller has collected that type of information:

 

(1) Social Security number;

 

(2) driver's license number or other government-issued identification number;

 

(3) financial account number;

 

(4) health insurance account number or medical identification number;

 

(5) account password, security questions, or answers; or

 

(6) biometric data.

 

(j) In response to a consumer request under subdivision 1, a controller is not required to reveal any trade secret.

 

(k) A controller that has obtained personal data about a consumer from a source other than the consumer may comply with a consumer's request to delete the consumer's personal data pursuant to subdivision 1, paragraph (d), by either: 

 

(1) retaining a record of the deletion request, retaining the minimum data necessary for the purpose of ensuring the consumer's personal data remains deleted from the business's records, and not using the retained data for any other purpose pursuant to the provisions of this chapter; or

 

(2) opting the consumer out of the processing of personal data for any purpose except for the purposes exempted pursuant to the provisions of this chapter.

 

Subd. 5.  Appeal process required.  (a) A controller must establish an internal process whereby a consumer may appeal a refusal to take action on a request to exercise any of the rights under subdivision 1 within a reasonable period of time after the consumer's receipt of the notice sent by the controller under subdivision 4, paragraph (f).

 

(b) The appeal process must be conspicuously available.  The process must include the ease of use provisions in subdivision 3 applicable to submitting requests.


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(c) Within 45 days of receipt of an appeal, a controller must inform the consumer of any action taken or not taken in response to the appeal, along with a written explanation of the reasons in support thereof.  That period may be extended by 60 additional days where reasonably necessary, taking into account the complexity and number of the requests serving as the basis for the appeal.  The controller must inform the consumer of any extension within 45 days of receipt of the appeal, together with the reasons for the delay.

 

(d) When informing a consumer of any action taken or not taken in response to an appeal pursuant to paragraph (c), the controller must provide a written explanation of the reasons for the controller's decision and clearly and prominently provide the consumer with information about how to file a complaint with the Office of the Attorney General.  The controller must maintain records of all appeals and the controller's responses for at least 24 months and shall, upon written request by the attorney general as part of an investigation, compile and provide a copy of the records to the attorney general.

 

Sec. 7.  [325O.06] PROCESSING DEIDENTIFIED DATA OR PSEUDONYMOUS DATA.

 

(a) This chapter does not require a controller or processor to do any of the following solely for purposes of complying with this chapter:

 

(1) reidentify deidentified data;

 

(2) maintain data in identifiable form, or collect, obtain, retain, or access any data or technology, in order to be capable of associating an authenticated consumer request with personal data; or

 

(3) comply with an authenticated consumer request to access, correct, delete, or port personal data pursuant to section 325O.05, subdivision 1, if all of the following are true:

 

(i) the controller is not reasonably capable of associating the request with the personal data, or it would be unreasonably burdensome for the controller to associate the request with the personal data;

 

(ii) the controller does not use the personal data to recognize or respond to the specific consumer who is the subject of the personal data, or associate the personal data with other personal data about the same specific consumer; and

 

(iii) the controller does not sell the personal data to any third party or otherwise voluntarily disclose the personal data to any third party other than a processor, except as otherwise permitted in this section.

 

(b) The rights contained in section 325O.05, subdivision 1, paragraphs (b) to (h), do not apply to pseudonymous data in cases where the controller is able to demonstrate any information necessary to identify the consumer is kept separately and is subject to effective technical and organizational controls that prevent the controller from accessing the information.

 

(c) A controller that uses pseudonymous data or deidentified data must exercise reasonable oversight to monitor compliance with any contractual commitments to which the pseudonymous data or deidentified data are subject, and must take appropriate steps to address any breaches of contractual commitments.

 

(d) A processor or third party must not attempt to identify the subjects of deidentified or pseudonymous data without the express authority of the controller that caused the data to be deidentified or pseudonymized.

 

(e) A controller, processor, or third party must not attempt to identify the subjects of data that has been collected with only pseudonymous identifiers.


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Sec. 8.  [325O.07] RESPONSIBILITIES OF CONTROLLERS.

 

Subdivision 1.  Transparency obligations.  (a) Controllers must provide consumers with a reasonably accessible, clear, and meaningful privacy notice that includes:

 

(1) the categories of personal data processed by the controller;

 

(2) the purposes for which the categories of personal data are processed;

 

(3) an explanation of the rights contained in section 325O.05 and how and where consumers may exercise those rights, including how a consumer may appeal a controller's action with regard to the consumer's request;

 

(4) the categories of personal data that the controller sells to or shares with third parties, if any;

 

(5) the categories of third parties, if any, with whom the controller sells or shares personal data;

 

(6) the controller's contact information, including an active email address or other online mechanism that the consumer may use to contact the controller;

 

(7) a description of the controller's retention policies for personal data; and

 

(8) the date the privacy notice was last updated.

 

(b) If a controller sells personal data to third parties, processes personal data for targeted advertising, or engages in profiling in furtherance of decisions that produce legal effects concerning a consumer or similarly significant effects concerning a consumer, the controller must disclose the processing in the privacy notice and provide access to a clear and conspicuous method outside the privacy notice for a consumer to opt out of the sale, processing, or profiling in furtherance of decisions that produce legal effects concerning a consumer or similarly significant effects concerning a consumer.  This method may include but is not limited to an Internet hyperlink clearly labeled "Your Opt-Out Rights" or "Your Privacy Rights" that directly effectuates the opt-out request or takes consumers to a web page where the consumer can make the opt-out request.

 

(c) The privacy notice must be made available to the public in each language in which the controller provides a product or service that is subject to the privacy notice or carries out activities related to the product or service.

 

(d) The controller must provide the privacy notice in a manner that is reasonably accessible to and usable by individuals with disabilities.

 

(e) Whenever a controller makes a material change to the controller's privacy notice or practices, the controller must notify consumers affected by the material change with respect to any prospectively collected personal data and provide a reasonable opportunity for consumers to withdraw consent to any further materially different collection, processing, or transfer of previously collected personal data under the changed policy.  The controller shall take all reasonable electronic measures to provide notification regarding material changes to affected consumers, taking into account available technology and the nature of the relationship.

 

(f) A controller is not required to provide a separate Minnesota-specific privacy notice or section of a privacy notice if the controller's general privacy notice contains all the information required by this section.

 

(g) The privacy notice must be posted online through a conspicuous hyperlink using the word "privacy" on the controller's website home page or on a mobile application's app store page or download page.  A controller that maintains an application on a mobile or other device shall also include a hyperlink to the privacy notice in the


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application's settings menu or in a similarly conspicuous and accessible location.  A controller that does not operate a website shall make the privacy notice conspicuously available to consumers through a medium regularly used by the controller to interact with consumers, including but not limited to mail.

 

Subd. 2.  Use of data.  (a) A controller must limit the collection of personal data to what is adequate, relevant, and reasonably necessary in relation to the purposes for which the data are processed, which must be disclosed to the consumer.

 

(b) Except as provided in this chapter, a controller may not process personal data for purposes that are not reasonably necessary to, or compatible with, the purposes for which the personal data are processed, as disclosed to the consumer, unless the controller obtains the consumer's consent.

 

(c) A controller shall establish, implement, and maintain reasonable administrative, technical, and physical data security practices to protect the confidentiality, integrity, and accessibility of personal data, including the maintenance of an inventory of the data that must be managed to exercise these responsibilities.  The data security practices shall be appropriate to the volume and nature of the personal data at issue.

 

(d) Except as otherwise provided in this act, a controller may not process sensitive data concerning a consumer without obtaining the consumer's consent, or, in the case of the processing of personal data concerning a known child, without obtaining consent from the child's parent or lawful guardian, in accordance with the requirement of the Children's Online Privacy Protection Act, United States Code, title 15, sections 6501 to 6506, and its implementing regulations, rules, and exemptions.

 

(e) A controller shall provide an effective mechanism for a consumer, or, in the case of the processing of personal data concerning a known child, the child's parent or lawful guardian, to revoke previously given consent under this subdivision.  The mechanism provided shall be at least as easy as the mechanism by which the consent was previously given.  Upon revocation of consent, a controller shall cease to process the applicable data as soon as practicable, but not later than 15 days after the receipt of such request.

 

(f) A controller may not process the personal data of a consumer for purposes of targeted advertising, or sell the consumer's personal data, without the consumer's consent, under circumstances where the controller knows that the consumer is between the ages of 13 and 16.

 

(g) A controller may not retain personal data that is no longer relevant and reasonably necessary in relation to the purposes for which the data were collected and processed, unless retention of the data is otherwise required by law or permitted under section 325O.09.

 

Subd. 3.  Nondiscrimination.  (a) A controller shall not process personal data on the basis of a consumer's or a class of consumers' actual or perceived race, color, ethnicity, religion, national origin, sex, gender, gender identity, sexual orientation, familial status, lawful source of income, or disability in a manner that unlawfully discriminates against the consumer or class of consumers with respect to the offering or provision of:  housing, employment, credit, or education; or the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation.

 

(b) A controller may not discriminate against a consumer for exercising any of the rights contained in this chapter, including denying goods or services to the consumer, charging different prices or rates for goods or services, and providing a different level of quality of goods and services to the consumer.  This subdivision does not:  (1) require a controller to provide a good or service that requires the consumer's personal data that the controller does not collect or maintain; or (2) prohibit a controller from offering a different price, rate, level, quality, or selection of goods or services to a consumer, including offering goods or services for no fee, if the offering is in connection with a consumer's voluntary participation in a bona fide loyalty, rewards, premium features, discounts, or club card program.


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(c) A controller may not sell personal data to a third-party controller as part of a bona fide loyalty, rewards, premium features, discounts, or club card program under paragraph (b) unless:

 

(1) the sale is reasonably necessary to enable the third party to provide a benefit to which the consumer is entitled;

 

(2) the sale of personal data to third parties is clearly disclosed in the terms of the program; and

 

(3) the third party uses the personal data only for purposes of facilitating a benefit to which the consumer is entitled and does not retain or otherwise use or disclose the personal data for any other purpose.

 

Subd. 4.  Waiver of rights unenforceable.  Any provision of a contract or agreement of any kind that purports to waive or limit in any way a consumer's rights under this chapter is contrary to public policy and is void and unenforceable.

 

Sec. 9.  [325O.075] REQUIREMENTS FOR SMALL BUSINESSES.

 

(a) A small business, as defined by the United States Small Business Administration under Code of Federal Regulations, title 13, part 121, that conducts business in Minnesota or produces products or services that are targeted to residents of Minnesota, must not sell a consumer's sensitive data without the consumer's prior consent.

 

(b) Penalties and attorney general enforcement procedures under section 325O.10 apply to a small business that violates this section.

 

Sec. 10.  [325O.08] DATA PRIVACY POLICIES AND DATA PRIVACY AND PROTECTION ASSESSMENTS.

 

(a) A controller must document and maintain a description of the policies and procedures the controller has adopted to comply with this chapter.  The description must include, where applicable:

 

(1) the name and contact information for the controller's chief privacy officer or other individual with primary responsibility for directing the policies and procedures implemented to comply with the provisions of this chapter; and

 

(2) a description of the controller's data privacy policies and procedures which reflect the requirements in section 325O.07, and any policies and procedures designed to:

 

(i) reflect the requirements of this chapter in the design of the controller's systems;

 

(ii) identify and provide personal data to a consumer as required by this chapter;

 

(iii) establish, implement, and maintain reasonable administrative, technical, and physical data security practices to protect the confidentiality, integrity, and accessibility of personal data, including the maintenance of an inventory of the data that must be managed to exercise the responsibilities under this item;

 

(iv) limit the collection of personal data to what is adequate, relevant, and reasonably necessary in relation to the purposes for which the data are processed;

 

(v) prevent the retention of personal data that is no longer relevant and reasonably necessary in relation to the purposes for which the data were collected and processed, unless retention of the data is otherwise required by law or permitted under section 325O.09; and


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(vi) identify and remediate violations of this chapter.

 

(b) A controller must conduct and document a data privacy and protection assessment for each of the following processing activities involving personal data:

 

(1) the processing of personal data for purposes of targeted advertising;

 

(2) the sale of personal data;

 

(3) the processing of sensitive data;

 

(4) any processing activities involving personal data that present a heightened risk of harm to consumers; and

 

(5) the processing of personal data for purposes of profiling, where the profiling presents a reasonably foreseeable risk of:

 

(i) unfair or deceptive treatment of, or disparate impact on, consumers;

 

(ii) financial, physical, or reputational injury to consumers;

 

(iii) a physical or other intrusion upon the solitude or seclusion, or the private affairs or concerns, of consumers, where the intrusion would be offensive to a reasonable person; or

 

(iv) other substantial injury to consumers.

 

(c) A data privacy and protection assessment must take into account the type of personal data to be processed by the controller, including the extent to which the personal data are sensitive data, and the context in which the personal data are to be processed.

 

(d) A data privacy and protection assessment must identify and weigh the benefits that may flow directly and indirectly from the processing to the controller, consumer, other stakeholders, and the public against the potential risks to the rights of the consumer associated with the processing, as mitigated by safeguards that can be employed by the controller to reduce the potential risks.  The use of deidentified data and the reasonable expectations of consumers, as well as the context of the processing and the relationship between the controller and the consumer whose personal data will be processed, must be factored into this assessment by the controller.

 

(e) A data privacy and protection assessment must include the description of policies and procedures required by paragraph (a).

 

(f) As part of a civil investigative demand, the attorney general may request, in writing, that a controller disclose any data privacy and protection assessment that is relevant to an investigation conducted by the attorney general.  The controller must make a data privacy and protection assessment available to the attorney general upon a request made under this paragraph.  The attorney general may evaluate the data privacy and protection assessments for compliance with this chapter.  Data privacy and protection assessments are classified as nonpublic data, as defined by section 13.02, subdivision 9.  The disclosure of a data privacy and protection assessment pursuant to a request from the attorney general under this paragraph does not constitute a waiver of the attorney-client privilege or work product protection with respect to the assessment and any information contained in the assessment.

 

(g) Data privacy and protection assessments or risk assessments conducted by a controller for the purpose of compliance with other laws or regulations may qualify under this section if the assessments have a similar scope and effect.

 

(h) A single data protection assessment may address multiple sets of comparable processing operations that include similar activities.


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Sec. 11.  [325O.09] LIMITATIONS AND APPLICABILITY.

 

(a) The obligations imposed on controllers or processors under this chapter do not restrict a controller's or a processor's ability to:

 

(1) comply with federal, state, or local laws, rules, or regulations, including but not limited to data retention requirements in state or federal law notwithstanding a consumer's request to delete personal data;

 

(2) comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by federal, state, local, or other governmental authorities;

 

(3) cooperate with law enforcement agencies concerning conduct or activity that the controller or processor reasonably and in good faith believes may violate federal, state, or local laws, rules, or regulations;

 

(4) investigate, establish, exercise, prepare for, or defend legal claims;

 

(5) provide a product or service specifically requested by a consumer; perform a contract to which the consumer is a party, including fulfilling the terms of a written warranty; or take steps at the request of the consumer prior to entering into a contract;

 

(6) take immediate steps to protect an interest that is essential for the life or physical safety of the consumer or of another natural person, and where the processing cannot be manifestly based on another legal basis;

 

(7) prevent, detect, protect against, or respond to security incidents, identity theft, fraud, harassment, malicious or deceptive activities, or any illegal activity; preserve the integrity or security of systems; or investigate, report, or prosecute those responsible for any such action;

 

(8) assist another controller, processor, or third party with any of the obligations under this paragraph;

 

(9) engage in public or peer-reviewed scientific, historical, or statistical research in the public interest that adheres to all other applicable ethics and privacy laws and is approved, monitored, and governed by an institutional review board, human subjects research ethics review board, or a similar independent oversight entity that has determined:

 

(i) the research is likely to provide substantial benefits that do not exclusively accrue to the controller;

 

(ii) the expected benefits of the research outweigh the privacy risks; and

 

(iii) the controller has implemented reasonable safeguards to mitigate privacy risks associated with research, including any risks associated with reidentification; or

 

(10) process personal data for the benefit of the public in the areas of public health, community health, or population health, but only to the extent that the processing is:

 

(i) subject to suitable and specific measures to safeguard the rights of the consumer whose personal data is being processed; and

 

(ii) under the responsibility of a professional individual who is subject to confidentiality obligations under federal, state, or local law.


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(b) The obligations imposed on controllers or processors under this chapter do not restrict a controller's or processor's ability to collect, use, or retain data to:

 

(1) effectuate a product recall or identify and repair technical errors that impair existing or intended functionality;

 

(2) perform internal operations that are reasonably aligned with the expectations of the consumer based on the consumer's existing relationship with the controller, or are otherwise compatible with processing in furtherance of the provision of a product or service specifically requested by a consumer or the performance of a contract to which the consumer is a party; or

 

(3) conduct internal research to develop, improve, or repair products, services, or technology.

 

(c) The obligations imposed on controllers or processors under this chapter do not apply where compliance by the controller or processor with this chapter would violate an evidentiary privilege under Minnesota law and do not prevent a controller or processor from providing personal data concerning a consumer to a person covered by an evidentiary privilege under Minnesota law as part of a privileged communication.

 

(d) A controller or processor that discloses personal data to a third-party controller or processor in compliance with the requirements of this chapter is not in violation of this chapter if the recipient processes the personal data in violation of this chapter, provided that at the time of disclosing the personal data, the disclosing controller or processor did not have actual knowledge that the recipient intended to commit a violation.  A third-party controller or processor receiving personal data from a controller or processor in compliance with the requirements of this chapter is not in violation of this chapter for the obligations of the controller or processor from which the third-party controller or processor receives the personal data.

 

(e) Obligations imposed on controllers and processors under this chapter shall not:

 

(1) adversely affect the rights or freedoms of any persons, including exercising the right of free speech pursuant to the First Amendment of the United States Constitution; or

 

(2) apply to the processing of personal data by a natural person in the course of a purely personal or household activity.

 

(f) Personal data that are processed by a controller pursuant to this section may be processed solely to the extent that the processing is:

 

(1) necessary, reasonable, and proportionate to the purposes listed in this section;

 

(2) adequate, relevant, and limited to what is necessary in relation to the specific purpose or purposes listed in this section; and

 

(3) insofar as possible, taking into account the nature and purpose of processing the personal data, subjected to reasonable administrative, technical, and physical measures to protect the confidentiality, integrity, and accessibility of the personal data, and to reduce reasonably foreseeable risks of harm to consumers.

 

(g) If a controller processes personal data pursuant to an exemption in this section, the controller bears the burden of demonstrating that the processing qualifies for the exemption and complies with the requirements in paragraph (f).

 

(h) Processing personal data solely for the purposes expressly identified in paragraph (a), clauses (1) to (7), does not, by itself, make an entity a controller with respect to the processing.


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Sec. 12.  [325O.10] ATTORNEY GENERAL ENFORCEMENT.

 

(a) In the event that a controller or processor violates this chapter, the attorney general, prior to filing an enforcement action under paragraph (b), must provide the controller or processor with a warning letter identifying the specific provisions of this chapter the attorney general alleges have been or are being violated.  If, after 30 days of issuance of the warning letter, the attorney general believes the controller or processor has failed to cure any alleged violation, the attorney general may bring an enforcement action under paragraph (b).  This paragraph expires January 31, 2026.

 

(b) The attorney general may bring a civil action against a controller or processor to enforce a provision of this chapter in accordance with section 8.31.  If the state prevails in an action to enforce this chapter, the state may, in addition to penalties provided by paragraph (c) or other remedies provided by law, be allowed an amount determined by the court to be the reasonable value of all or part of the state's litigation expenses incurred.

 

(c) Any controller or processor that violates this chapter is subject to an injunction and liable for a civil penalty of not more than $7,500 for each violation.

 

(d) Nothing in this chapter establishes a private right of action, including under section 8.31, subdivision 3a, for a violation of this chapter or any other law.

 

Sec. 13.  [325O.11] PREEMPTION OF LOCAL LAW; SEVERABILITY.

 

(a) This chapter supersedes and preempts laws, ordinances, regulations, or the equivalent adopted by any local government regarding the processing of personal data by controllers or processors.

 

(b) If any provision of this chapter or the chapter's application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances is not affected.

 

Sec. 14.  EFFECTIVE DATE.

 

This article is effective July 31, 2025, except that postsecondary institutions regulated by the Office of Higher Education are not required to comply with this article until July 31, 2029.

 

ARTICLE 5

AGRICULTURE APPROPRIATIONS

 

Section 1.  Laws 2023, chapter 43, article 1, section 2, is amended to read:

 

      Sec. 2.  DEPARTMENT OF AGRICULTURE

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$ 92,025,000 88,025,000

 

$ 72,223,000 80,518,000

 

 

Appropriations by Fund

 

 

2024

 

2025

General

91,626,000 87,626,000

71,824,000 80,119,000

Remediation

399,000

399,000

 

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


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         Subd. 2.  Protection Services

 

 

 

 

 

Appropriations by Fund

 

 

2024

 

2025

General

32,034,000 32,034,000

18,743,000 22,438,000

Remediation

399,000

399,000

 

(a) $399,000 the first year and $399,000 the second year are from the remediation fund for administrative funding for the voluntary cleanup program.

 

(b) $625,000 the first year and $625,000 $925,000 the second year are for the soil health financial assistance program under Minnesota Statutes, section 17.134.  The commissioner may award no more than $50,000 of the appropriation each year to a single recipient.  The commissioner may use up to 6.5 percent of this appropriation for costs incurred to administer the program.  Any unencumbered balance does not cancel at the end of the first year and is available in the second year.  Appropriations encumbered under contract on or before June 30, 2025, for soil health financial assistance grants are available until June 30, 2027.  The base for this appropriation is $639,000 in fiscal year 2026 and each year thereafter.

 

(c) $800,000 the first year is and $100,000 the second year are for transfer to the pollinator research account established under Minnesota Statutes, section 18B.051.  The base for this transfer is $100,000 in fiscal year 2026 and each year thereafter.

 

(d) $150,000 the first year and $150,000 the second year are for transfer to the noxious weed and invasive plant species assistance account established under Minnesota Statutes, section 18.89, to award grants under Minnesota Statutes, section 18.90, to counties, municipalities, and other weed management entities, including Minnesota Tribal governments as defined in Minnesota Statutes, section 10.65.  This is a onetime appropriation.

 

(e) $175,000 the first year and $175,000 the second year are for compensation for destroyed or crippled livestock under Minnesota Statutes, section 3.737.  The first year appropriation may be spent to compensate for livestock that were destroyed or crippled during fiscal year 2023.  If the amount in the first year is insufficient, the amount in the second year is available in the first year.  The commissioner may use up to $5,000 each year to reimburse expenses incurred by university extension educators to provide fair market values of destroyed or crippled livestock.  If the commissioner receives federal dollars to pay claims for destroyed or crippled livestock, an equivalent amount of this appropriation may be used to reimburse nonlethal prevention methods performed by federal wildlife services staff.


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(f) $155,000 the first year and $155,000 the second year are for compensation for crop damage under Minnesota Statutes, section 3.7371.  If the amount in the first year is insufficient, the amount in the second year is available in the first year.  The commissioner may use up to $10,000 of the appropriation each year to reimburse expenses incurred by the commissioner or the commissioner's approved agent to investigate and resolve claims, as well as for costs associated with training for approved agents.  The commissioner may use up to $40,000 of the appropriation each year to make grants to producers for measures to protect stored crops from elk damage.  If the commissioner determines that claims made under Minnesota Statutes, section 3.737 or 3.7371, are unusually high, amounts appropriated for either program may be transferred to the appropriation for the other program.

 

(g) $825,000 the first year and $825,000 the second year are to replace capital equipment in the Department of Agriculture's analytical laboratory.

 

(h) $75,000 the first year and $75,000 the second year are to support a meat processing liaison position to assist new or existing meat and poultry processing operations in getting started, expanding, growing, or transitioning into new business models.

 

(i) $2,200,000 the first year and $1,650,000 the second year are additional funding to maintain the current level of service delivery for programs under this subdivision.  The base for this appropriation is $1,925,000 for fiscal year 2026 and each year thereafter.

 

(j) $250,000 the first year and $250,000 the second year are for grants to organizations in Minnesota to develop enterprises, supply chains, and markets for continuous-living cover crops and cropping systems in the early stages of commercial development.  For the purposes of this paragraph, "continuous-living cover crops and cropping systems" refers to agroforestry, perennial biomass, perennial forage, perennial grains, and winter-annual cereal grains and oilseeds that have market value as harvested or grazed commodities.  By February 1 each year, the commissioner must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over agriculture finance and policy detailing uses of the funds in this paragraph, including administrative costs, and the achievements these funds contributed to.  The commissioner may use up to 6.5 percent of this appropriation for administrative costs.  This is a onetime appropriation.

 

(k) $45,000 the first year and $45,000 the second year are appropriated for wolf-livestock conflict-prevention grants.  The commissioner may use some of this appropriation to support nonlethal prevention work performed by federal wildlife services.  This is a onetime appropriation.


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(l) $10,000,000 the first year is for transfer to the grain indemnity account established in Minnesota Statutes, section 223.24.  This is a onetime transfer.

 

(m) $125,000 the first year and $125,000 the second year are for the PFAS in pesticides review.  This is a onetime appropriation.

 

(n) $1,941,000 the first year is for transfer to the food handler license account.  This is a onetime transfer.

 

(o) $3,072,000 the second year is for nitrate home water treatment, including reverse osmosis, for private drinking-water wells with nitrate in excess of the maximum contaminant level of ten milligrams per liter and located in Dodge, Fillmore, Goodhue, Houston, Mower, Olmsted, Wabasha, or Winona County.  The commissioner must prioritize households at or below 300 percent of the federal poverty guideline and households with infants or pregnant individuals.  The commissioner may also use this appropriation for education, outreach, and technical assistance to homeowners.  Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner may use up to 6.5 percent of this appropriation for administrative costs.  This is a onetime appropriation and is available until June 30, 2027.

 

(p) $223,000 the second year is for transfer to the commissioner of health for the private well drinking-water assistance program.  This is a onetime transfer and is available until June 30, 2027.

 

      Subd. 3.  Agricultural Marketing and Development

 

5,165,000

 

4,985,000

 

(a) $150,000 the first year and $150,000 the second year are to expand international trade opportunities and markets for Minnesota agricultural products.

 

(b) $186,000 the first year and $186,000 the second year are for transfer to the Minnesota grown account and may be used as grants for Minnesota grown promotion under Minnesota Statutes, section 17.102.  Notwithstanding Minnesota Statutes, section 16A.28, the appropriations encumbered under contract on or before June 30, 2025, for Minnesota grown grants in this paragraph are available until June 30, 2027.

 

(c) $634,000 the first year and $634,000 the second year are for the continuation of the dairy development and profitability enhancement programs, including dairy profitability teams and dairy business planning grants under Minnesota Statutes, section 32D.30.

 

(d) The commissioner may use funds appropriated in this subdivision for annual cost-share payments to resident farmers or entities that sell, process, or package agricultural products in this


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state for the costs of organic certification.  The commissioner may allocate these funds for assistance to persons transitioning from conventional to organic agriculture.

 

(e) $600,000 the first year and $420,000 the second year are to maintain the current level of service delivery.  The base for this appropriation is $490,000 $510,000 for fiscal year 2026 and each year thereafter.

 

(f) $100,000 the first year and $100,000 the second year are for mental health outreach and support to farmers, ranchers, and others in the agricultural community and for farm safety grant and outreach programs under Minnesota Statutes, section 17.1195.  Mental health outreach and support may include a 24-hour hotline, stigma reduction, and education.  Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at the end of the first year and is available in the second year.  This is a onetime appropriation.

 

(g) $100,000 the first year and $100,000 the second year are to award and administer grants for infrastructure and other forms of financial assistance to support EBT, SNAP, SFMNP, and related programs at farmers markets.  Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at the end of the first year and is available in the second year.  This is a onetime appropriation.

 

(h) $200,000 the first year and $200,000 the second year are to award cooperative grants under Minnesota Statutes, section 17.1016.  The commissioner may use up to 6.5 percent of the appropriation each year to administer the grant program.  Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at the end of the first year and is available in the second year.  This is a onetime appropriation.

 

      Subd. 4.  Agriculture, Bioenergy, and Bioproduct Advancement

37,809,000 33,809,000

 

33,809,000 38,109,000

 

(a) $10,702,000 the first year and $10,702,000 the second year are for the agriculture research, education, extension, and technology transfer program under Minnesota Statutes, section 41A.14.  Except as provided below, the appropriation each year is for transfer to the agriculture research, education, extension, and technology transfer account under Minnesota Statutes, section 41A.14, subdivision 3, and the commissioner shall transfer funds each year to the Board of Regents of the University of Minnesota for purposes of Minnesota Statutes, section 41A.14.  To the extent practicable, money expended under Minnesota Statutes, section 41A.14, subdivision 1, clauses (1) and (2), must supplement and not supplant existing sources and levels of funding.  The commissioner may use up to one percent of this appropriation for costs incurred to administer the program.


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Of the amount appropriated for the agriculture research, education, extension, and technology transfer grant program under Minnesota Statutes, section 41A.14:

 

(1) $600,000 the first year and $600,000 the second year are for the Minnesota Agricultural Experiment Station's agriculture rapid response fund under Minnesota Statutes, section 41A.14, subdivision 1, clause (2);

 

(2) up to $1,000,000 the first year and up to $1,000,000 the second year are for research on avian influenza, salmonella, and other turkey-related diseases and disease prevention measures;

 

(3) $2,250,000 the first year and $2,250,000 the second year are for grants to the Minnesota Agricultural Education Leadership Council to enhance agricultural education with priority given to Farm Business Management challenge grants;

 

(4) $450,000 the first year is for the cultivated wild rice breeding project at the North Central Research and Outreach Center to include a tenure track/research associate plant breeder;

 

(5) $350,000 the first year and $350,000 the second year are for potato breeding;

 

(6) $802,000 the first year and $802,000 the second year are to fund the Forever Green Initiative and protect the state's natural resources while increasing the efficiency, profitability, and productivity of Minnesota farmers by incorporating perennial and winter-annual crops into existing agricultural practices.  The base for the allocation under this clause is $802,000 in fiscal year 2026 and each year thereafter.  By February 1 each year, the dean of the College of Food, Agricultural and Natural Resource Sciences must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over agriculture finance and policy and higher education detailing uses of the funds in this paragraph, including administrative costs, and the achievements these funds contributed to; and

 

(7) $350,000 each year is for farm-scale winter greenhouse research and development coordinated by University of Minnesota Extension Regional Sustainable Development Partnerships.  The allocation in this clause is onetime.

 

(b) The base for the agriculture research, education, extension, and technology transfer program is $10,352,000 in fiscal year 2026 and $10,352,000 in fiscal year 2027.

 

(c) $27,107,000 $23,107,000 the first year and $23,107,000 the second year are is for the agricultural growth, research, and innovation program under Minnesota Statutes, section 41A.12. 


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Except as provided below, the commissioner may allocate this appropriation each year among the following areas:  facilitating the start-up, modernization, improvement, or expansion of livestock operations, including beginning and transitioning livestock operations with preference given to robotic dairy-milking equipment; assisting value-added agricultural businesses to begin or expand, to access new markets, or to diversify, including aquaponics systems, with preference given to hemp fiber processing equipment; facilitating the start-up, modernization, or expansion of other beginning and transitioning farms, including by providing loans under Minnesota Statutes, section 41B.056; sustainable agriculture on-farm research and demonstration; the development or expansion of food hubs and other alternative community-based food distribution systems; enhancing renewable energy infrastructure and use; crop research, including basic and applied turf seed research; Farm Business Management tuition assistance; and good agricultural practices and good handling practices certification assistance.  The commissioner may use up to 6.5 percent of this appropriation for costs incurred to administer the program.

 

Of the amount appropriated for the agricultural growth, research, and innovation program under Minnesota Statutes, section 41A.12:

 

(1) $1,000,000 the first year and $1,000,000 the second year are is for distribution in equal amounts to each of the state's county fairs to preserve and promote Minnesota agriculture;

 

(2) $5,750,000 the first year and $5,750,000 the second year are is for incentive payments under Minnesota Statutes, sections 41A.16, 41A.17, 41A.18, and 41A.20.  Notwithstanding Minnesota Statutes, section 16A.28, the first year appropriation is available until June 30, 2025, and the second year appropriation is available until June 30, 2026.  If this appropriation exceeds the total amount for which all producers are eligible in a fiscal year, the balance of the appropriation is available for other purposes under this paragraph.  The base under this clause is $3,000,000 in fiscal year 2026 and each year thereafter;

 

(3) $3,375,000 the first year and $3,375,000 the second year are is for grants that enable retail petroleum dispensers, fuel storage tanks, and other equipment to dispense biofuels to the public in accordance with the biofuel replacement goals established under Minnesota Statutes, section 239.7911.  A retail petroleum dispenser selling petroleum for use in spark ignition engines for vehicle model years after 2000 is eligible for grant money under this clause if the retail petroleum dispenser has no more than 10 retail petroleum dispensing sites and each site is located in Minnesota.  The grant money must be used to replace or upgrade equipment that does not have the ability to be certified for E25.  A grant award must not exceed 65 percent of the cost of the


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appropriate technology.  A grant award must not exceed $200,000 per station.  The commissioner must cooperate with biofuel stakeholders in the implementation of the grant program.  The commissioner, in cooperation with any economic or community development financial institution and any other entity with which the commissioner contracts, must submit a report on the biofuels infrastructure financial assistance program by January 15 of each year to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over agriculture policy and finance.  The annual report must include but not be limited to a summary of the following metrics:  (i) the number and types of projects financed; (ii) the amount of dollars leveraged or matched per project; (iii) the geographic distribution of financed projects; (iv) any market expansion associated with upgraded infrastructure; (v) the demographics of the areas served; (vi) the costs of the program; and (vii) the number of grants to minority-owned or female-owned businesses.  The base under this clause is $3,000,000 for fiscal year 2026 and each year thereafter;

 

(4) $1,250,000 the first year and $1,250,000 the second year are is for grants to facilitate the start-up, modernization, or expansion of meat, poultry, egg, and milk processing facilities.  A grant award under this clause must not exceed $200,000.  Any unencumbered balance at the end of the second year does not cancel until June 30, 2026, and may be used for other purposes under this paragraph.  The base under this clause is $250,000 in fiscal year 2026 and each year thereafter;

 

(5) $1,150,000 the first year and $1,150,000 the second year are is for providing more fruits, vegetables, meat, poultry, grain, and dairy for children in school and early childhood education centers settings, including, at the commissioner's discretion, providing grants to reimburse schools and early childhood education centers and child care providers for purchasing equipment and agricultural products.  Organizations must participate in the National School Lunch Program or the Child and Adult Care Food Program to be eligible.  Of the amount appropriated, $150,000 each year is for a statewide coordinator of farm-to-institution strategy and programming.  The coordinator must consult with relevant stakeholders and provide technical assistance and training for participating farmers and eligible grant recipients.  The base under this clause is $1,294,000 in fiscal year 2026 and each year thereafter;

 

(6) $4,000,000 the first year is for Dairy Assistance, Investment, Relief Initiative (DAIRI) grants and other forms of financial assistance to Minnesota dairy farms that enroll in coverage under a federal dairy risk protection program and produced no more than 16,000,000 pounds of milk in 2022.  The commissioner must make DAIRI payments based on the amount of milk produced in 2022, up to 5,000,000 pounds per participating farm, at a rate determined


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by the commissioner within the limits of available funding.  Any unencumbered balance does not cancel at the end of the first year and is available in the second year.  Any unencumbered balance at the end of the second year does not cancel until June 30, 2026, and may be used for other purposes under this paragraph.  The allocation in this clause is onetime;

 

(7) (6) $2,000,000 the first year and $2,000,000 the second year are is for urban youth agricultural education or urban agriculture community development; and

 

(8) (7) $1,000,000 the first year and $1,000,000 the second year are is for the good food access program under Minnesota Statutes, section 17.1017.

 

Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at the end of the first year and is available for the second year, and appropriations encumbered under contract on or before June 30, 2025, for agricultural growth, research, and innovation grants are available until June 30, 2028.

 

(d) $27,407,000 the second year is for the agricultural growth, research, and innovation program under Minnesota Statutes, section 41A.12.  Except as provided below, the commissioner may allocate this appropriation among the following areas:  facilitating the start-up, modernization, improvement, or expansion of livestock operations, including beginning and transitioning livestock operations with preference given to robotic dairy-milking equipment; assisting value-added agricultural businesses to begin or expand, to access new markets, or to diversify, including aquaponics systems, with preference given to hemp fiber processing equipment; facilitating the start-up, modernization, or expansion of other beginning and transitioning farms, including by providing loans under Minnesota Statutes, section 41B.056; sustainable agriculture on-farm research and demonstration; the development or expansion of food hubs and other alternative community-based food distribution systems; enhancing renewable energy infrastructure and use; crop research, including basic and applied turf seed research; Farm Business Management tuition assistance; and good agricultural practices and good handling practices certification assistance.  The commissioner may use up to 6.5 percent of this appropriation for costs incurred to administer the program.

 

Of the amount appropriated for the agricultural growth, research, and innovation program under Minnesota Statutes, section 41A.12:

 

(1) $1,000,000 the second year is for distribution in equal amounts to each of the state's county fairs to preserve and promote Minnesota agriculture;


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(2) $5,750,000 the second year is for incentive payments under Minnesota Statutes, sections 41A.16, 41A.17, 41A.18, and 41A.20.  Notwithstanding Minnesota Statutes, section 16A.28, this appropriation is available until June 30, 2027.  If this appropriation exceeds the total amount for which all producers are eligible in a fiscal year, the balance of the appropriation is available for other purposes under this paragraph.  The base under this clause is $3,000,000 in fiscal year 2026 and each year thereafter;

 

(3) $3,475,000 the second year is for grants that enable retail petroleum dispensers, fuel storage tanks, and other equipment to dispense biofuels to the public in accordance with the biofuel replacement goals established under Minnesota Statutes, section 239.7911.  A retail petroleum dispenser selling petroleum for use in spark ignition engines for vehicle model years after 2000 is eligible for grant money under this clause if the retail petroleum dispenser has no more than ten retail petroleum dispensing sites and each site is located in Minnesota.  The grant money must be used to replace or upgrade equipment that does not have the ability to be certified for E25.  A grant award must not exceed 65 percent of the cost of the appropriate technology.  A grant award must not exceed $200,000 per station.  The commissioner must cooperate with biofuel stakeholders in the implementation of the grant program.  The commissioner, in cooperation with any economic or community development financial institution and any other entity with which the commissioner contracts, must submit a report on the biofuels infrastructure financial assistance program by January 15 of each year to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over agriculture policy and finance.  The annual report must include but not be limited to a summary of the following metrics:  (i) the number and types of projects financed; (ii) the amount of money leveraged or matched per project; (iii) the geographic distribution of financed projects; (iv) any market expansion associated with upgraded infrastructure; (v) the demographics of the areas served; (vi) the costs of the program; and (vii) the number of grants to minority-owned or female-owned businesses.  The base under this clause is $3,000,000 for fiscal year 2026 and each year thereafter;

 

(4) $1,250,000 the second year is for grants to facilitate the start-up, modernization, or expansion of meat, poultry, egg, and milk processing facilities.  A grant award under this clause must not exceed $200,000.  Any unencumbered balance at the end of the second year does not cancel until June 30, 2027, and may be used for other purposes under this paragraph.  The base under this clause is $250,000 in fiscal year 2026 and each year thereafter;

 

(5) $1,350,000 the second year is for providing more fruits, vegetables, meat, poultry, grain, and dairy for children in school and early childhood education settings, including, at the commissioner's discretion, providing grants to reimburse schools


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and early childhood education and child care providers for purchasing equipment and agricultural products.  Organizations must participate in the National School Lunch Program or the Child and Adult Care Food Program to be eligible.  Of the amount appropriated, $150,000 is for a statewide coordinator of farm‑to‑institution strategy and programming.  The coordinator must consult with relevant stakeholders and provide technical assistance and training for participating farmers and eligible grant recipients.  The base under this clause is $1,294,000 in fiscal year 2026 and each year thereafter;

 

(6) $4,000,000 the second year is for Dairy Assistance, Investment, Relief Initiative (DAIRI) grants and other forms of financial assistance to Minnesota dairy farms that enroll in coverage under a federal dairy risk protection program and produced no more than 16,000,000 pounds of milk in 2022.  The commissioner must make DAIRI payments based on the amount of milk produced in 2022, up to 5,000,000 pounds per participating farm, at a rate determined by the commissioner within the limits of available funding.  Any unencumbered balance on June 30, 2026, may be used for other purposes under this paragraph.  The allocation in this clause is onetime;

 

(7) $2,000,000 the second year is for urban youth agricultural education or urban agriculture community development; and

 

(8) $1,000,000 the second year is for the good food access program under Minnesota Statutes, section 17.1017.

 

Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at the end of the second year and is available until June 30, 2027.  Appropriations encumbered under contract on or before June 30, 2027, for agricultural growth, research, and innovation grants are available until June 30, 2030.

 

(d) (e) The base for the agricultural growth, research, and innovation program is $16,294,000 $17,582,000 in fiscal year 2026 and each year thereafter and includes $200,000 each year for cooperative development grants.

 

      Subd. 5.  Administration and Financial Assistance

 

16,618,000

 

14,287,000 14,587,000

 

(a) $474,000 the first year and $474,000 the second year are for payments to county and district agricultural societies and associations under Minnesota Statutes, section 38.02, subdivision 1.  Aid payments to county and district agricultural societies and associations must be disbursed no later than July 15 of each year.  These payments are the amount of aid from the state for an annual fair held in the previous calendar year.


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(b) $350,000 the first year and $350,000 the second year are for grants to the Minnesota Agricultural Education and Leadership Council for programs of the council under Minnesota Statutes, chapter 41D.  The base for this appropriation is $250,000 in fiscal year 2026 and each year thereafter.

 

(c) $2,000 the first year is for a grant to the Minnesota State Poultry Association.  This is a onetime appropriation.  Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at the end of the first year and is available for the second year.

 

(d) $18,000 the first year and $18,000 the second year are for grants to the Minnesota Livestock Breeders Association.  This is a onetime appropriation.

 

(e) $60,000 the first year and $60,000 the second year are for grants to the Northern Crops Institute that may be used to purchase equipment.  This is a onetime appropriation.

 

(f) $34,000 the first year and $34,000 the second year are for grants to the Minnesota State Horticultural Society.  This is a onetime appropriation.

 

(g) $25,000 the first year and $25,000 the second year are for grants to the Center for Rural Policy and Development.  This is a onetime appropriation.

 

(h) $75,000 the first year and $75,000 the second year are appropriated from the general fund to the commissioner of agriculture for grants to the Minnesota Turf Seed Council for basic and applied research on:  (1) the improved production of forage and turf seed related to new and improved varieties; and (2) native plants, including plant breeding, nutrient management, pest management, disease management, yield, and viability.  The Minnesota Turf Seed Council may subcontract with a qualified third party for some or all of the basic or applied research.  Any unencumbered balance does not cancel at the end of the first year and is available in the second year.  The Minnesota Turf Seed Council must prepare a report outlining the use of the grant money and related accomplishments.  No later than January 15, 2025, the council must submit the report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over agriculture finance and policy.  This is a onetime appropriation.

 

(i) $100,000 the first year and $100,000 the second year are for grants to GreenSeam for assistance to agriculture-related businesses to support business retention and development, business attraction and creation, talent development and attraction, and regional branding and promotion.  These are onetime


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appropriations.  No later than December 1, 2024, and December 1, 2025, GreenSeam must report to the chairs and ranking minority members of the legislative committees with jurisdiction over agriculture and rural development with information on new and existing businesses supported, number of new jobs created in the region, new educational partnerships and programs supported, and regional branding and promotional efforts.

 

(j) $1,950,000 the first year and $1,950,000 the second year are for grants to Second Harvest Heartland on behalf of Minnesota's six Feeding America food banks for the following purposes:

 

(1) at least $850,000 each year must be allocated to purchase milk for distribution to Minnesota's food shelves and other charitable organizations that are eligible to receive food from the food banks.  Milk purchased under the grants must be acquired from Minnesota milk processors and based on low-cost bids.  The milk must be allocated to each Feeding America food bank serving Minnesota according to the formula used in the distribution of United States Department of Agriculture commodities under The Emergency Food Assistance Program.  Second Harvest Heartland may enter into contracts or agreements with food banks for shared funding or reimbursement of the direct purchase of milk.  Each food bank that receives funding under this clause may use up to two percent for administrative expenses.  Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance the first year does not cancel and is available the second year;

 

(2) to compensate agricultural producers and processors for costs incurred to harvest and package for transfer surplus fruits, vegetables, and other agricultural commodities that would otherwise go unharvested, be discarded, or be sold in a secondary market.  Surplus commodities must be distributed statewide to food shelves and other charitable organizations that are eligible to receive food from the food banks.  Surplus food acquired under this clause must be from Minnesota producers and processors.  Second Harvest Heartland may use up to 15 percent of each grant awarded under this clause for administrative and transportation expenses; and

 

(3) to purchase and distribute protein products, including but not limited to pork, poultry, beef, dry legumes, cheese, and eggs to Minnesota's food shelves and other charitable organizations that are eligible to receive food from the food banks.  Second Harvest Heartland may use up to two percent of each grant awarded under this clause for administrative expenses.  Protein products purchased under the grants must be acquired from Minnesota processors and producers.


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Second Harvest Heartland must submit quarterly reports to the commissioner and the chairs and ranking minority members of the legislative committees with jurisdiction over agriculture finance in the form prescribed by the commissioner.  The reports must include but are not limited to information on the expenditure of funds, the amount of milk or other commodities purchased, and the organizations to which this food was distributed.  The base for this appropriation is $1,700,000 for fiscal year 2026 and each year thereafter.

 

(k) $25,000 the first year and $25,000 the second year are for grants to the Southern Minnesota Initiative Foundation to promote local foods through an annual event that raises public awareness of local foods and connects local food producers and processors with potential buyers.

 

(l) $300,000 the first year and $300,000 the second year are for grants to The Good Acre for the Local Emergency Assistance Farmer Fund (LEAFF) program to compensate emerging farmers experiencing limited land access or limited market access for crops donated to hunger relief organizations in Minnesota.  For purposes of this paragraph, "limited land access" and "limited market access" have the meanings given in Minnesota Statutes, section 17.133, subdivision 1.  This is a onetime appropriation. 

 

(m) $750,000 the first year and $750,000 the second year are to expand the Emerging Farmers Office and provide services to beginning and emerging farmers to increase connections between farmers and market opportunities throughout the state.  This appropriation may be used for grants, translation services, training programs, or other purposes in line with the recommendations of the Emerging Farmer Working Group established under Minnesota Statutes, section 17.055, subdivision 1.  The base for this appropriation is $1,000,000 in fiscal year 2026 and each year thereafter.

 

(n) $50,000 the first year is to provide technical assistance and leadership in the development of a comprehensive and well‑documented state aquaculture plan.  The commissioner must provide the state aquaculture plan to the legislative committees with jurisdiction over agriculture finance and policy by February 15, 2025.

 

(o) $337,000 the first year and $337,000 the second year are for farm advocate services.  Of these amounts, $50,000 the first year and $50,000 the second year are for the continuation of the farmland transition programs and may be used for grants to farmland access teams to provide technical assistance to potential beginning farmers.  Farmland access teams must assist existing farmers and beginning farmers with transitioning farm ownership and farm operation.  Services provided by teams may include but


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are not limited to mediation assistance, designing contracts, financial planning, tax preparation, estate planning, and housing assistance.

 

(p) $260,000 the first year and $260,000 the second year are for a pass-through grant to Region Five Development Commission to provide, in collaboration with Farm Business Management, statewide mental health counseling support to Minnesota farm operators, families, and employees, and individuals who work with Minnesota farmers in a professional capacity.  Region Five Development Commission may use up to 6.5 percent of the grant awarded under this paragraph for administration.

 

(q) $1,000,000 the first year is for transfer to the agricultural emergency account established under Minnesota Statutes, section 17.041.

 

(r) $1,084,000 the first year and $500,000 the second year are to support IT modernization efforts, including laying the technology foundations needed for improving customer interactions with the department for licensing and payments.  This is a onetime appropriation.

 

(s) $275,000 the first year is for technical assistance grants to certified community development financial institutions that participate in United States Department of Agriculture loan or grant programs for small farmers or emerging farmers experiencing limited land access or limited market access, including but not limited to the Increasing Land, Capital, and Market Access Program.  For purposes of this paragraph, "emerging farmer" has "limited land access" and "limited market access" have the meaning meanings given in Minnesota Statutes, section 17.055, subdivision 1 section 17.133, subdivision 1.  The commissioner may use up to 6.5 percent of this appropriation for costs incurred to administer the program.  Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at the end of the first year and is available in the second year.  This is a onetime appropriation.

 

(t) $1,425,000 the first year and $1,425,000 the second year are for transfer to the agricultural and environmental revolving loan account established under Minnesota Statutes, section 17.117, subdivision 5a, for low-interest loans under Minnesota Statutes, section 17.117.

 

(u) $150,000 the first year and $150,000 the second year are for administrative support for the Rural Finance Authority.

 

(v) The base in fiscal years 2026 and 2027 is $150,000 each year to coordinate climate-related activities and services within the Department of Agriculture and counterparts in local, state, and


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federal agencies and to hire a full-time climate implementation coordinator.  The climate implementation coordinator must coordinate efforts seeking federal funding for Minnesota's agricultural climate adaptation and mitigation efforts and develop strategic partnerships with the private sector and nongovernment organizations.

 

(w) $1,200,000 the first year and $930,000 the second year are to maintain the current level of service delivery.  The base for this appropriation is $1,085,000 $1,065,000 in fiscal year 2026 and $1,085,000 $1,065,000 in fiscal year 2027 and each year thereafter.

 

(x) $250,000 the first year is for a grant to the Board of Regents of the University of Minnesota to purchase equipment for the Veterinary Diagnostic Laboratory to test for chronic wasting disease, African swine fever, avian influenza, and other animal diseases.  The Veterinary Diagnostic Laboratory must report expenditures under this paragraph to the legislative committees with jurisdiction over agriculture finance and higher education with a report submitted by January 3, 2024, and a final report submitted by December 31, 2024.  The reports must include a list of equipment purchased, including the cost of each item.

 

(y) $1,000,000 the first year and $1,000,000 the second year are to award and administer down payment assistance grants under Minnesota Statutes, section 17.133, with priority given to emerging farmers as defined in Minnesota Statutes, section 17.055, subdivision 1 eligible applicants with no more than $100,000 in annual gross farm product sales and eligible applicants who are producers of industrial hemp, cannabis, or one or more of the following specialty crops as defined by the United States Department of Agriculture for purposes of the specialty crop block grant program:  fruits and vegetables, tree nuts, dried fruits, medicinal plants, culinary herbs and spices, horticulture crops, floriculture crops, and nursery crops.  Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance at the end of the first year does not cancel and is available in the second year and appropriations encumbered under contract by June 30, 2025, are available until June 30, 2027.

 

(z) $222,000 the first year and $322,000 the second year are for meat processing training and retention incentive grants under section 5.  The commissioner may use up to 6.5 percent of this appropriation for costs incurred to administer the program.  Notwithstanding Minnesota Statutes, section 16A.28, any unencumbered balance does not cancel at the end of the first year and is available in the second year.  This is a onetime appropriation.


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(aa) $300,000 the first year and $300,000 the second year are for transfer to the Board of Regents of the University of Minnesota to evaluate, propagate, and maintain the genetic diversity of oilseeds, grains, grasses, legumes, and other plants including flax, timothy, barley, rye, triticale, alfalfa, orchard grass, clover, and other species and varieties that were in commercial distribution and use in Minnesota before 1970, excluding wild rice.  This effort must also protect traditional seeds brought to Minnesota by immigrant communities.  This appropriation includes funding for associated extension and outreach to small and Black, Indigenous, and People of Color (BIPOC) farmers.  This is a onetime appropriation.

 

(bb) $300,000 the second year is to award and administer beginning farmer equipment and infrastructure grants under Minnesota Statutes, section 17.055.  This is a onetime appropriation.

 

(bb) (cc) The commissioner shall continue to increase connections with ethnic minority and immigrant farmers to farming opportunities and farming programs throughout the state.

 

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

 

Sec. 2.  Laws 2023, chapter 43, article 1, section 4, is amended to read:

 

      Sec. 4.  AGRICULTURAL UTILIZATION RESEARCH INSTITUTE

$ 6,143,000 6,393,000

 

$4,343,000

 

(a) $300,000 the first year is for equipment upgrades, equipment replacement, installation expenses, and laboratory infrastructure at the Agricultural Utilization Research Institute's laboratories in the cities of Crookston, Marshall, and Waseca.

 

(b) $1,500,000 the first year is to replace analytical and processing equipment and make corresponding facility upgrades at Agricultural Utilization Research Institute facilities in the cities of Marshall, Crookston, and Waseca.  Of this amount, up to $500,000 may be used for renewable natural gas and anaerobic digestion projects.  This is a onetime appropriation and is available until June 30, 2026.

 

(c) $300,000 the first year and $300,000 the second year are to maintain the current level of service delivery.

 

(d) $250,000 the first year is to support food businesses.  This is a onetime appropriation and is available until June 30, 2026.

 

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


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ARTICLE 6

PESTICIDE CONTROL

 

Section 1.  Minnesota Statutes 2022, section 18B.01, is amended by adding a subdivision to read:

 

Subd. 1d.  Application or use of a pesticide.  "Application or use of a pesticide" includes:

 

(1) the dispersal of a pesticide on, in, at, or directed toward a target site;

 

(2) preapplication activities that involve the mixing and loading of a restricted use pesticide; and

 

(3) other restricted use pesticide-related activities, including but not limited to transporting or storing pesticide containers that have been opened; cleaning equipment; and disposing of excess pesticides, spray mix, equipment wash waters, pesticide containers, and other materials that contain pesticide.

 

Sec. 2.  Minnesota Statutes 2022, section 18B.26, subdivision 6, is amended to read:

 

Subd. 6.  Discontinuance or cancellation of registration.  (a) To ensure the complete withdrawal from distribution or further use of a pesticide, a person who intends to discontinue a pesticide registration must:

 

(1) terminate a further distribution within the state and continue to register the pesticide annually for two successive years; and

 

(2) initiate and complete a total recall of the pesticide from all distribution in the state within 60 days from the date of notification to the commissioner of intent to discontinue registration; or.

 

(3) submit to the commissioner evidence adequate to document that no distribution of the registered pesticide has occurred in the state.

 

(b) Upon the request of a registrant, the commissioner may immediately cancel registration of a pesticide product.  The commissioner may immediately cancel registration of a pesticide product at the commissioner's discretion.  When requesting that the commissioner immediately cancel registration of a pesticide product, a registrant must provide the commissioner with:

 

(1) a statement that the pesticide product is no longer in distribution; and

 

(2) documentation of pesticide gross sales from the previous year supporting the statement under clause (1).

 

Sec. 3.  Minnesota Statutes 2022, section 18B.28, is amended by adding a subdivision to read:

 

Subd. 5.  Advisory panel.  Before approving the issuance of an experimental use pesticide product registration under this section, the commissioner must convene and consider the advice of a panel of outside scientific and health experts.  The panel must include but is not limited to representatives of the Department of Health, the Department of Natural Resources, the Pollution Control Agency, and the University of Minnesota.

 

Sec. 4.  [18B.283] EXPERT ADVICE REQUIRED FOR EMERGENCY EXEMPTIONS.

 

Within 30 days of submitting an emergency registration exemption application under section 18 of FIFRA, the commissioner must convene and consider the advice of a panel of outside scientific and health experts.  The panel must include but is not limited to representatives of the Department of Health, the Department of Natural Resources, the Pollution Control Agency, and the University of Minnesota.


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Sec. 5.  Minnesota Statutes 2022, section 18B.305, subdivision 2, is amended to read:

 

Subd. 2.  Training manual and examination development.  The commissioner, in consultation with University of Minnesota Extension and other higher education institutions, shall continually revise and update pesticide applicator training manuals and examinations.  The manuals and examinations must be written to meet or exceed the minimum competency standards required by the United States Environmental Protection Agency and pertinent state specific information.  Pesticide applicator training manuals and examinations must meet or exceed the competency standards in Code of Federal Regulations, title 40, part 171.  Competency standards for training manuals and examinations must be published on the Department of Agriculture website.  Questions in the examinations must be determined by the commissioner in consultation with other responsible agencies.  Manuals and examinations must include pesticide management practices that discuss prevention of pesticide occurrence in groundwater and surface water of the state, and economic thresholds and guidance for insecticide use.

 

Sec. 6.  Minnesota Statutes 2022, section 18B.32, subdivision 1, is amended to read:

 

Subdivision 1.  Requirement.  (a) A person may not engage in structural pest control applications:

 

(1) for hire without a structural pest control license; and

 

(2) as a sole proprietorship, company, partnership, or corporation unless the person is or employs a licensed master in structural pest control operations.; and

 

(3) unless the person is 18 years of age or older.

 

(b) A structural pest control licensee must have a valid license identification card to purchase a restricted use pesticide or apply pesticides for hire and must display it upon demand by an authorized representative of the commissioner or a law enforcement officer.  The license identification card must contain information required by the commissioner.

 

Sec. 7.  Minnesota Statutes 2022, section 18B.32, subdivision 3, is amended to read:

 

Subd. 3.  Application.  (a) A person must apply to the commissioner for a structural pest control license on forms and in the manner required by the commissioner.  The commissioner shall require the applicant to pass a written, closed-book, monitored examination or oral examination, or both, and may also require a practical demonstration regarding structural pest control.  The commissioner shall establish the examination procedure, including the phases and contents of the examination.

 

(b) The commissioner may license a person as a master under a structural pest control license if the person has the necessary qualifications through knowledge and experience to properly plan, determine, and supervise the selection and application of pesticides in structural pest control.  To demonstrate the qualifications and become licensed as a master under a structural pest control license, a person must:

 

(1) pass a closed-book test administered by the commissioner;

 

(2) have direct experience as a licensed journeyman under a structural pest control license for at least two years by this state or a state with equivalent certification requirements or as a full-time licensed master in another state with equivalent certification requirements; and

 

(3) show practical knowledge and field experience under clause (2) in the actual selection and application of pesticides under varying conditions.


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(c) The commissioner may license a person as a journeyman under a structural pest control license if the person:

 

(1) has the necessary qualifications in the practical selection and application of pesticides;

 

(2) has passed a closed-book examination given by the commissioner; and

 

(3) is engaged as an employee of or is working under the direction of a person licensed as a master under a structural pest control license.

 

(d) The commissioner may license a person as a fumigator under a structural pest control license if the person: