Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
Director
   Senate   
State of Minnesota
 
 
 
 
 
H.F. No. 2749 - Omnibus Supplemental Appropriations Bill, Chapter 189 (Minnesota Laws 2016, Chapter 189)
 
Author: Senator Richard Cohen
 
Prepared By: Bjorn E. Arneson, Senate Analyst (651/296-3812)
Thomas S. Bottern, Senate Counsel (651/296-3810)
Krista Boyd, Senate Fiscal Analyst (651/296-7681)
Ann Marie Lewis, Senate Counsel (651/296-5301)
Katie Cavanor, Senate Counsel (651/296-3801)
Carlon D. Fontaine, Senate Counsel (651/296-4395)
Stephanie James, Senate Counsel (651/296-0103)
Greg Knopff, Senate Analyst (651/296-9399)
Liam Monahan, Senate Analyst (651/296-1791)
Dan Mueller, Senate Fiscal Analyst (651/296-7680)
Alexis C. Stangl, Senate Counsel (651/296-4397)
Chris Turner, Senate Fiscal Analyst (651/296-4350)
Joan White, Senate Counsel (651/296-3814)
Jay M. Willms, Senate Fiscal Analyst (651/296-2090)
Kenneth P. Backhus, Senate Counsel (651/296-4396)
 
Date: June 1, 2016



 

Article 1 – Higher Education

Section 1 provides definitions for the appropriations made in the article.

Section 2 provides appropriations to the Office of Higher Education including funding for postsecondary equity grants, the state grant program, an addiction graduate fellowship program at HCMC, and for a Web-based employer and student job and intern connection program.

Section 3 makes appropriations to the Minnesota State Colleges and University including funding for operations, open textbook program, open textbook library, and the Cook County Higher Education Board.

Section 4 makes appropriations to the University of Minnesota including funding for health training, and Rochester campus collegiate recovery program.

Section 5 makes an appropriation to the Office of Ombudsman for mental health and developmental disabilities for oversight work at the University of Minnesota, Department of Psychiatry.

Section 6 is technical and makes certain administrative cost funding available to the Office of Higher Education in fiscal year 2016 moving it up from fiscal year 2017.

Section 7 authorizes the Office of Higher Education to accept and use private monies given to it.

Section 8 lowers the assigned family responsibility for dependent students from 96 to 94 percent for purposes of calculating a state grant award thereby increasing state awards.

Section 9 creates a special standard for satisfactory academic progress under the state grant program for persons with intellectual disabilities.

Section 10 prohibits the Office of Higher Education from using surplus state grant appropriations to raise the tuition caps used in computing state grant awards.

Sections 11 and 12 make graduate and professional students eligible for state child care grants and set rules for their eligibility.

Sections 13 to 15 make technical changes in the teacher loan forgiveness program created in 2015.

Section 16 provides for the promotion of federal public service loan forgiveness programs.

Section 17 provides for promotion of teacher loan forgiveness programs.

Section 18 creates a special dedicated account for the dual training program.

Section 19 allows up to three percent of dual training appropriations for administration.

Section 20 requires the Office of Higher Education to provide information to parents and secondary students regarding Minnesota private and public college acceptance of credits from concurrent enrollment courses, postsecondary enrollment options course, advanced placement courses, and international baccalaureate courses.

Section 21 prohibits a Minnesota state college or university from requiring a student receiving a college ready ACT or SAT score in a subject area to take a remedial course in the area.

Sections 22 to 25 authorize the Office of Ombudsman for Mental Health and Developmental Disabilities to have oversight responsibility for clinical drug trials at the Department of Psychiatry at the University of Minnesota.

Section 26 makes technical changes to the administrative reporting requirements under the pilot MnSCU two-year occupational scholarship program.

Section 27 amends a pilot student debt counseling program created in 2015 to expand the class of borrowers who may be counseled.

Section 28 sets tuitions caps for fiscal year 2017 for the state grant program.

Section 29 requires MnSCU to plan for a program for students with intellectual and developmental disabilities.

Section 30 requires reports from the University of Minnesota and MnSCU on their campus budget allocations.

Section 31 creates a temporary equity in education and job connection competitive grant programs.

Article 2 – Agriculture

Section 1 [Appropriations] provides the technical language on how the appropriations in this article are treated.

Section 2 [Department of Agriculture] appropriates approximately $4.4 million from the general fund in fiscal year 2017 to the Department of Agriculture for:

  • Tractor rollover grants, $250,000;
  • The industrial hemp pilot project, $250,000;
  • Grants to the U of M for Forever Green, $1 million;
  • Grant to the U of M for veterinary diagnostic tool, $600,000;
  • Grant to the U of M for wild rice research, $450,000;
  • Grant to the U of M for potato research, $350,000;
  • Grant to the U of M for animal disease testing, $283,000;
  • Good food access account, $250,000; and
  • Transfer to the agriculture emergency account, $1 million.

Section 3 [Agricultural emergency account; appropriation] establishes a dedicated account in the agricultural fund. Money in the account is appropriated to MDA for emergency response and preparedness pertaining to agricultural emergencies. Authorizes MDA to transfer account dollars to other agencies and the University of Minnesota. Requires an annual report.

Sections 4 and 5 [Good food access program] establish the good food access program and the corresponding advisory committee. The good food access program will provide financial and technical assistance for grocery stores and other food retailers to improve the availability of and access to affordable and nutritious food.

Sections 6 and 7 [Eligible projects; Ag BMP loan program] provide that drinking water projects that implement best management practices (BMPs) to achieve drinking water standards are eligible for the agriculture best management practices (Ag BMP) loan program.

Section 8 [Tractor rollover protection pilot grant program] establishes a tractor rollover protection pilot grant program in the Department of Agriculture to pay farmers or schools for 70 percent or the amount to reduce the farmer’s or school’s cost to $500, whichever is greater, to retrofit eligible tractors. Tractors built before 1987 are eligible tractors for the program.  This section also provides for promotion and administration of the pilot program and the acceptance of contributions from nonstate sources.  The pilot program expires on June 30, 2019

Section 9 [Registration application and gross sales fee] requires persons and companies that register nonagricultural pesticides with MDA to pay the gross sales fee only on that portion of their sales that exceeds $70,000

Section 10 [Activities authorized; AGRI program] eliminates the NextGen Energy Board as specifically named under the agricultural, growth, research, and innovation (AGRI) program.  The NextGen Energy Board expired on June 30, 2015.

Section 11 [AGREETT program] makes clarifying changes related to extension and technology transfer under the agriculture research, education, extension, and technology transfer (AGREETT) grant program, including the elimination of funding for the Minnesota Agriculture Fertilizer Research and Education Council removing the representative from College of Food, Agriculture, and Natural Resources Sciences (CFANS) from the advisory panel for AGREETT and requires that the representative from CFANS consult with the advisory panel.  This section also clarifies the appointment of certain members of the advisory panel.

Sections 12 to 15 [Biobased products definitions] reenact biobased product definition that are used for the biobased products producer payment programs – advanced biofuels, renewable chemicals, and biomass thermal.  These definitions were part of the NextGen Energy Board statute that expired on June 30, 2015.

Section 16 [Biobased products; quarterly definition] defines “quarterly” for the purposes of the biobased products producer payment programs.

Section 17 [Technical] removes an obsolete reference.

Sections 19 to 21 [Quarterly limits] convert annual limits to quarterly limits for the purpose of the biobased products producer payment programs.  Section 16 also clarifies that biobutanol is eligible for the advance biofuel producer payment program.

Section 22 [Siding production incentive] establishes a siding production incentive program to begin in fiscal year 2018.  The Commissioner of Agriculture will make payments of $7.50 per 1,000 square feet of siding produced for ten years of production.  To be eligible, a siding producer must produce at least 200 million square feet of siding and the payment is limited to 400 million square feet of siding.  An open appropriation that is capped at $3 million per fiscal year is provided. 

Section 23 [Technical] changes references to the reenacted definition of biobutanol in this article.

Section 24 [Farmer-Lender Mediation Program extended] extends the expiration of the Farmer-Lender Mediation Program to June 30, 2018.

Section 25 [2015 appropriation; training pilot program] modifies a 2015 appropriation to allow money the be used to assist any entity that has explored the feasibility of establishing a state or federally inspected food processing facility within 30 miles of a correctional institution in northeastern Minnesota

Section 26 [2015 appropriation; AGREETT and AGRI] modifies the 2015 appropriation language for AGREETT to clarify that the rapid response appropriation is to the Minnesota Agricultural Experiment Station Rapid Response Fund, specify that after the carve outs, the remaining money is transferred to the U of M for agricultural research, extension, and technology transfer, and specify that the first year grants may be carried over to the second year of the biennium.

Section 27 [2015 appropriation; avian influenza] reduces a 2015 appropriation for avian influenza by $3.1 million. This section also expands the purposes for use of 2015 emergency animal disease appropriations to the Board of Animal Health

Section 28 [Good Food Access Advisory Committee] provides organizational details for the Good Food Access Advisory Committee created in section 5.

Section 29 [Farmer-Lender mediation task force] directs the Commissioner of Agriculture to convene a task force of stakeholders and make recommendations on potential changes to the Farmer-Lender Mediation Program.  The recommendations must be reported to the legislative committees with jurisdiction over agriculture policy and finance by February 1, 2017.

Section 30 [Transfer] Transfers approximately $7.7 million from a 2015 appropriation for Rural Finance Authority disaster recovery loans back to the general fund.

Section 31 [Repealer] repeals the 2015 law that extended the Farmer-Lender Mediation Program to July 1, 2017.  The 2015 law was effective if the legislature did not meet in regular session in 2016.

Article 3 – Environment and Natural Resources

Section 1 [Appropriations] provides the technical language on how the appropriations in this article are treated.

Section 2 [Pollution Control Agency] appropriates approximately $2.6 million in fiscal year 2017 to the Pollution Control Agency. Of this amount, approximately $1.9 million is from the general fund and $702,000 is from the environmental fund. Specific appropriations are for:

  • Review of municipal water infrastructure projects, $923,000;
  • Working lands program feasibility study, $115,000;
  • Management of contaminated sediment projects for the St. Louis River, $436,000;
  • SCORE recycling grants, $500,000; and
  • Remedial action plan for a landfill in Andover, $650,000.

Section 3 [Natural Resources] appropriates approximately $2.3 million in fiscal year 2016 and approximately $14.4 million in fiscal year 2017 to the Department of Natural Resources (DNR). Of this amount, approximately $11.2 million is from the general fund, approximately $4.8 million is from the natural resources fund, and $780,000 is from the game and fish fund.  Specific appropriations are for:

  • A valuation process for school trust lands, $200,000;
  • Middle-Snake-Tamarac Rivers Watershed District hydraulic modeling, $187,000;
  • Koronis Lake Association grant for aquatic invasive species, $200,000;
  • Cold Spring Creek water appropriation monitoring, modeling, and reporting, $225,000;
  • Private forest management assistance, $2.5 million;
  • Reforestation of state lands, $1 million;
  • Parks and trails management, $5.1 million;
  • David Dill trail signage, $20,000;
  • Wooden Frog Campground sanitary sewer, $100,000;
  • Transfer-on-death watercraft title change, $29,000;
  • Sophia’s Law carbon monoxide boat warning labels, $220,000;
  • Prospectors ATV Trail System, $1 million;
  • Fish virus surveillance, $50,000;
  • Enforcement aviation services, $670,000;
  •  Legal costs related to permitting the NorthMet mining project, including money for the PCA, $4.4      million;
  • Wolf Ridge ELC grant, $750,000 and
  • SE Asian community outreach, $60,000.

Section 4 [Board of Water and Soil Resources] appropriates $479,000 in fiscal year 2017 from the general fund for a detailed plan to implement a working lands watershed restoration program.

Section 5 [Legislature] appropriate $25,000 from the Minnesota future resources fund for the Aggregate Resources Task Force created in this article.

Section 6 [Administration] appropriates $250,000 in fiscal year 2017 from the school trust fund for the School Trust Lands Director for costs related to trust land sales in the Boundary Waters Canoe Area Wilderness.

Sections 7 to 9 [Invasive species technical] are technical amendment related to invasive species laws.

Section 10 [Wild rice license exemption] provides that Minnesota tribal band members possessing a valid tribal identification card are deemed to have a permit from the DNR to harvest wild rice.

Sections 11 and 12 [OHV trail pass; residents] allows residents to purchase a $20 off-road vehicle (OHV) trail pass and use OHV trails for 30 days without OHV registration. 

Section 13 [Aquatic macrophyte] clarifies the definition of “aquatic macrophyte” to include macro algae (for example, starry stonewort recently discovered in Minnesota).

Section 14 [Invasive species prohibited activities] removes an exception from the ban on possessing prohibited invasive species for those who had lawfully acquired them dead.

Section 15 [Invasive species life stage] clarifies that laws relating to nonnative species, aquatic plants, and aquatic macrophytes apply to all parts of the organism whether dead or alive.

Section 16 [Invasive species exceptions] allows a person driving a commercial garbage vehicle to transport aquatic macrophytes (aquatic plants) from riparian property to a legal disposal site provided the site is at least 100 feet from any surface water, ditch, or land that seasonally floods.

Section 17 [Invasive species transportation] clarifies that requirements to drain water from boats and related equipment prior to transporting do not apply to transporting the boat within the immediate area required for loading and preparing the boat for transport.

Section 18 [Lake Minnetonka pilot study.] allows the DNR to issue a permit to certain service providers (dock installers, boat rental providers, etc.) to allow the return of water-related equipment with zebra mussels attached back to Lake Minnetonka after being stored for the season. Requires the service providers to have a corporate surety bond in favor of the state for $50,000 payable upon violation of chapter 84D (the state’s invasive species laws). The provision expires December 1, 2018.

Section 19 [Prohibited invasive species] is a corresponding change related to the previous section.

Section 20 [Invasive species civil citations] Allows civil citations to be issued to a person who fails to comply with an aquatic invasive species (AIS) decontamination order (when a unit is onsite or when required to do so by a certain date) or failing to complete the AIS offender training course.

Section 21 [Invasive species civil penalties] establishes civil penalties for failing to comply with a decontamination order when the decontamination unit is onsite ($250); for failing to complete decontamination or remove invasive species by the date required ($250); and for failing to complete AIS offender training ($25).

Section 22 [David Dill Trail] establishes the David Dill Trail. 

Section 23 [Enclosed accommodation compartment definition] defines “enclosed accommodation compartment” for the purpose of the requirement for marine carbon monoxide detection systems.

Section 24 [Enclosed occupancy compartment] defines “enclosed occupancy compartment” for the purpose of the requirement to have carbon monoxide warning labels.

Section 25 [Marine carbon monoxide detection system definition] defines ”marine carbon monoxide detection system” based on the requirements for them of the American Boat and Yacht Council.

Section 26 [Carbon monoxide detection device requirements; Sophia’s Law]

 Subd. 1 [Requirements] provides that, beginning May 1, 2017, a motorboat with an enclosed accommodation compartment must have functioning marine carbon monoxide detection system to be operated on waters of Minnesota or be sold in the state.

Subd. 2 [Boating safety courses] provides that all state-sponsored boating safety courses must incorporate information on the dangers of carbon monoxide poisoning and how to prevent it.

Subd. 3 [Carbon monoxide poisoning warning labels] requires, beginning May 1, 2017, all gasoline-powered boats with an enclosed occupancy compartment have carbon monoxide warning labels in the aft reboarding/stern area, the steering station, and the entrance to an enclosed occupancy compartment.  Dealers must ensure that the warning labels are in place before the motorboat is sold.

Subd. 4 [License agents; distribution] directs the Commissioner of Natural Resources to mail the carbon monoxide warning labels to all motorboat owners of watercraft 19 feet or greater in length in the first year.  This subdivision also requires the commissioner and license agents to distribute information and the labels.

Subd. 5 [Safety warning; penalty] provides that a first violation of this section is a safety warning and the second or subsequent violation is a petty misdemeanor.

Section 27 [Transfer-on-death title to watercraft] provides for a watercraft owner to have the watercraft titled in transfer-on-death. 

Section 28 [Prescribed burns definition] defines “prescribed burn” for the purpose of provisions dealing with fire permits.

Section 29 [Imposition of  burning restrictions] clarifies that prescribed burns are also subject to suspension of permits when the DNR determines, by written order, that certain fire restrictions are necessary.

Section 30 [FMIA; certified costs deposit] provides for certified costs incurred on nonstate lands to be deposited in the forest management investment account (FMIA). 

Section 31 [Minerals Management Coordinating Committee; extension] extends the Minerals Management Coordinating Committee another ten years to 2026.

Section 32 [Minerals Management Account] provides for quarterly transfers from the minerals management account to the trust funds rather than annual transfers. 

Section 33 [Expedited land exchanges; school and university lands] makes school trust and university lands eligible for expedited exchanges. 

Section 34 [Expedited land exchanges; valuation of land] clarifies land valuation for expedited land exchanges. 

Section 35 [Expedited land exchanges; reversionary interest] eliminates the retention of a reversionary interest for expedited land exchanges. 

Section 36 [Wolf management account] prohibits money in the wolf management account from being spent on indirect costs or agency shared services.

Sections 37 and 39 [Lifetime game and fish license designation on driver’s license] allows a person to have their lifetime license designation on their driver’s license and to use their driver’s license as proof of having the game and fish license.  These sections are effective the earlier of January 1, 2018, or the implementation of a new computer program by the Department of Public Safety. 

Section 38 [Nonresident active members of the National Guard] allows nonresident active members of the Minnesota National Guard to obtain a resident license to take game and fish, other than for elk or moose. 

Section 40 [2014 appropriation; Asian youth fishing recruitment] expands the use of a 2014 appropriation for Asian youth fishing recruitment and extends the appropriation to June 30, 2017.

Section 41 [2015 appropriation; minerals research] eliminates the match requirement for 2015 appropriations for minerals research.

Section 42 [2015 appropriation; local park and trail grants] allows the DNR to use 2.5 percent of the fiscal years 2016 and 2017 appropriations for local park and trail grants for administration of the grants.

Section 43 [2015 surplus land sales requirement; exchanges] amends the 2015 law requiring certain surplus land sales to allow exchanges instead of sales and allows ten percent of the proceeds from the sale of lands to be used for work associated with the Boundary Waters Canoe Area Wilderness land exchange and sale projects..

Section 44 [Cold Spring water appropriation permits; report] directs the Commissioner of Natural Resources to amend a certain water appropriation permit for the city of Cold Spring and report on monitoring.

Section 45 [Marine CO detector report] directs the Commissioner of Natural Resources to report to the Legislature, by November 1, 2017, on the implementation of Sophia’s Law, any changes in industry standards relating to carbon monoxide, and best practices in preventing carbon monoxide poisoning, including the feasibility of requiring more sensitive carbon monoxide detectors.

Section 46 [Prescribed burn report] directs the DNR, in cooperation with prescribed burning professionals and others, to develop criteria for certifying entities to conduct a prescribed burn under a general permit. Requires the DNR to submit a report back to the legislature with recommendations on any legislative changes necessary by January 15, 2017.

Section 47 [Sand Dunes State Forest report] prohibits the DNR from logging or otherwise removing trees for the purposes of creating oak savanna in the Sand Dunes State Forest until July 1, 2017 and requires the commissioner to submit a report to the legislature on the progress made on collaborating with local citizens and other stakeholders over the past year when making certain decisions.

Section 48 [Lake service provider feasibility report] directs the DNR to submit a report to the legislature on the feasibility of expanding the pilot program for service providers on Lake Minnetonka to other lakes by January 15, 2019.

Section 49 [Workers’ compensation for volunteers report] directs the DNR to work with the Workers’ Compensation Advisory Council and submit a report on workers’ compensation for volunteers.

Section 50 [Aggregate Resources Task Force] establishes an Aggregate Resources Task Force consisting of eight legislative members. Specifies the appointment process, structure, and duties of the task force. Requires the task force to submit a report to the legislature by January 15, 2018 and sunsets the task force 45 days after the report is submitted or June 30, 2018, whichever is earlier.

Section 51 [Minneapolis Park and Recreation Board reallocation] allows for a reallocation of expenditures from 2013 and 2014 parks and trails fund appropriations that are based on the most recent priority rankings.

Section 52 [Citation] cites sections 23 to 26 and 45 as “Sophia’s Law.”

Section 53 [Repealer] repeals the defunct Minnesota future resources fund.

Article 4 – Public Safety and Corrections

Overview

This article appropriates money to the Supreme Court, District courts, Guardian Ad Litem Board, Human Rights Department, Department of Corrections, and Department of Public Safety. In addition, it extends and expands the authorization to use disaster contingency account for avian flu response and other agricultural emergencies. Finally, it makes various policy changes related to: driver’s license designations, special liquor licenses, sensory testing research, fine allocation, and crimes relating to hiring minors in prostitution and felony assault involving bias.

Sections 1-7 (Appropriations)

These sections contain the article’s supplemental appropriations, including:

Supreme Court

  • $1,000,000 in FY17 for safe and secure courthouse grants (onetime).

District Courts

  • $1,547,000 in FY17 to increase the juror per diem from $10 to $20 and juror   mileage reimbursement from 27 cents to 54 cents per mile.

Guardian Ad Litem Board

  • $878,000 in FY17 to hire additional guardians ad litem to represent children in juvenile and family court cases.

Human Rights

  • $180,000 in FY17 for a St. Cloud office.

Corrections

  • Institutions:  $4,037,000 in FY16 and $10,671,000 in FY17 for employee compensation, the challenge incarceration program, and 24-hour nursing (MCF-Shakopee).
  • Community Services: $241,000 in FY16 and $2,566,000 in FY17 for employee compensation, the challenge incarceration program, reentry and halfway house services grants, and a high-risk revocation reduction program in the metro.
  • Operations Support: $63,000 in FY16 and $2,189,000 in FY17 for employee compensation and IT critical updates (onetime).

Public Safety

  • $1,600,000 in FY17 for six forensic scientists (increases to eight in tails), grants for legal representation in child protection cases, and grants to combat sex trafficking.
  • $4,500,000 in FY17 from the trunk highway fund for a State Patrol Academy.

Section 8 (Medical alert identifier) allows a medical alert identifier on a driver’s license or Minnesota identification card to be either graphic or written.

Section 9 (Living Will/Health Care Directive designation) allows a living will/health care directive designation on a driver’s license or Minnesota identification card to be either graphic or written.

Section 10 (Veteran designation) allows a veteran or veteran 100% T&P designation on a driver’s license or Minnesota identification card to be either graphic or written.

Section 11 (Registration required) amends the predatory offender registration statute by striking language. This change expands registration in prostitution offenses to include not only cases where a minor victim is under 13, but also undercover operations where the victim is reasonably believed to be under 13. See section 15.

Section 12 (Sensory testing) allows sensory testing research services to possess and serve alcohol as part of their business operations.

Section 13 (Allocation) provides that for purposes of fine allocation, the county attorney shall be considered an attorney for the town(ship), and the fine allocation will be based on the prosecutorial authority under which the county attorney is acting. In cases where the county attorney is prosecuting a case under the authority of the township attorney, the allocation is as follows: two-thirds to the city or town in which the offense was committed and one-third to the general fund.

Section 14 (Felony assault motivated by bias) increases the statutory maximum by 25 percent for felony assault motivated by bias. Applies to first- through third-degree assault.

Section 15 (Hiring a minor to engage in prostitution) amends the crime of hiring or offering to hire an individual to engage in prostitution when the actor reasonably believes the individual is a minor. This law was created last year to provide penalties in undercover operations, but was limited to a five-year felony. This section would create tiered penalties based on the age of the minor:

  • 5-year felony if the minor is reasonably believed to be 16 or 17
  • 10-year felony if the minor is reasonably believed to be 13, 14, or 15
  • 20-year felony if the minor is reasonably believed to be under 13.

Section 16 (Avian influenza emergency response) extends the authorization to use disaster contingency account monies to pay for costs of eligible avian influenza emergency response activities. The revised language would permit monies in the account to be used for “any agricultural emergency” and makes the monies in the account available for these purposes through fiscal year 2019. Requires reports from the commissioner of management and budget to the Legislature by both January 15, 2018, and January 15, 2020, on monies used from the account to fund these activities.

Sections 17-21 (Special liquor licenses) authorize liquor licenses for St. Cloud State University, the Indiafest festival on the Capitol grounds, a major league soccer stadium in St. Paul, the Prairie Ridge golf club in Janesville, and a restaurant in Minneapolis.

Section 22 (Repealer) repeals an 1891 law that prohibited liquor licenses from being issued in the Lakeside neighborhood of Duluth.

Article 5 – Broadband Development

Section 1 appropriates $35,000,000 for the border-to-border broadband account.  $5,000,000 of the appropriations may be used for grants for projects in underserved areas, up to $1,000,000 for administration and mapping, and the remainder for grants to projects in unserved areas.  $500,000 is set aside for grants to projects in low-income areas.

Section 2 redefines an “underserved area” as lacking access to broadband service at speeds of at least 100 megabits per second download and at least 20 megabits per second upload.

Section 3 requires 30 days’ notice to the public of grant award and scoring criteria.

Section 4 requires a grant applicant to notify incumbent broadband providers in the area of the application.

Section 5 establishes a process that allows an incumbent provider to demonstrate that it has plans to provide appropriate broadband service in the area where a grant application has been filed. The commissioner may not award a grant to an applicant if the commissioner, using criteria specified in section 5, finds the claim of the incumbent credible.

Section 6 requires annual reports to the legislature by the commissioner of the Department of Employment and Economic Development on the results of the grant applicant process for each applicant, including the criteria used to evaluate grants and the results of that criteria.

Section 7 requires the commissioner to annually contract with private entities to obtain broadband deployment data and to create maps depicting that deployment.

Section 8 exempts from the prevailing wage law under Minnesota Statutes, section 116J.871, certain last mile project work funded with border-to-border broadband grants.

Section 9 sets new state broadband goals.

Article 6 – Energy

Section 1 [Reimbursable costs] allows the cost of tank removal to be reimbursable if it is part of a corrective action and is approved by the commissioner.

Section 2 [Reimbursement amount] increases the maximum amount that may be reimbursed to an eligible applicant for a single release from $1,000,000 to $2,000,000.

Section 3 [Extension of Petrofund] extends the repeal date for the Petroleum Tank Release Cleanup Act (Petrofund) for an additional five years to June 30, 2022.

Section 4 [Exemption] increases from 2,000 to 5,000 the number of customers a natural gas utility may serve without its rates being regulated by the Public Utilities Commission.

Section 5 [Property tax adjustment; cooperative association] allows a cooperative association that has elected to be price-regulated by the commission to file for the commission’s approval for an adjustment for real personal property taxes, fees, and permits.

Sections 6 and 13 [Conforming change] removes references to the C-BED program due to repeal of that program.

Section 7 [Energy-saving goals] allows energy savings from electric utility infrastructure projects to be included in the energy conservation play of a municipal utility or cooperative.

Section 8 [Exemptions] exempts a large wind energy conversion system or a solar energy generating large energy facility engaging in certain repowering projects from obtaining a certificate of need. Provides a definition of a “repowering project.”

Section 9 [Parking ramp] allows the commissioner of commerce to grant an exemption from the prohibition of heating a parking ramp if the commercial parking is integrated within a facility that has both public and private uses, the benefits of the exemption to taxpayers exceed the costs, and all appropriate energy efficiency measures have been considered.

Section 10 [Environmental review] requires a finding in an environmental impact statement done for a cogeneration facility regarding the net impact of carbon dioxide emissions, taking into account both the cogeneration facility and the utility serving it.

Section 11 [Cogeneration facility or combined heat and power facility] provides a definition for a “cogeneration facility” or “combined heat and power facility.”

Section 12 [Definition; new large energy facility] amends the definition of “new large energy facility” to exclude a cogeneration facility served by a public utility.

Section 14 [Assessment] allows the state propane education and research council (PERC) to assess propane producers and marketers up to the maximum assessment allowed under federal law. 

Section 15 [Effective date] amends the effective date of changes made to the Petrofund program regarding reimbursement in 2014 from July 1, 2015 to July 1, 2016. Makes the amended effective date effective retroactively from May 5, 2014.

Section 16 [Repealer] repeals the Community Based Energy Development (C-BED) statute and the Rural Wind Energy Development Revolving Loan Fund.

Article 7 – Economic Development

Section 1 [Appropriations] specifies definitions of fiscal years.

Section 2 [Department of Employment and Economic Development] provides appropriations for the Department of Employment and Economic Development. See spreadsheet for details.

Section 3 [Department of Labor and Industry] provides appropriations for the Department of Labor and Industry. See spreadsheet for details.

Section 4 [Explore Minnesota Tourism] provides appropriations for Explore Minnesota Tourism. See spreadsheet for details.

Section 5 [Housing Finance Agency] provides appropriations for the Housing Finance Agency. See spreadsheet for details.

Section 6 [Department of Commerce] provides appropriations for the Department of Commerce. See spreadsheet for details.

Section 7 [Public Utilities Commission] provides appropriations for the Public Utilities Commission. See spreadsheet for details.

Section 8 [Assigned risk transfer] transfers any unencumbered or unexpended balance in the assigned risk plan remaining on June 30, 2016, to the general fund.

Section 9 [Workers’ compensation system reform; use of funds] provides an expiration date for the section of June 30, 2016.

Section 10 [St. Cloud Somali Youth Organization] amends 2015 session law to reallocate the appropriation to the St. Cloud Somali Youth Organization.

Section 11 [Bureau of Mediation Services] amends 2015 appropriations for the Bureau of Mediation Services. See spreadsheet for details.

Sections 12 and 13 [Mortality table; exception] allow a life insurance company to use the Commissioners 2017 Standard Ordinary Mortality Table in determining the minimum valuation standard for policies  issued on or after January 1, 2017.

Section 14 [Minnesota 21st century fund] renames the “Minnesota minerals 21st century fund” to the “Minnesota 21st century fund” to reflect expanded uses of the fund to other sectors and industries, including manufacturing and technology projects.

Section 15 [Iron Range Resources and Rehabilitation Board Contribution] makes corresponding changes due to changes in section 12 relating to the Minnesota 21st century fund.

Section 16 [Grant program established; purpose] requires that in awarding grants under the Greater Minnesota Business Development Public Infrastructure Grant (BDPI) program, that the commissioner adheres to program criteria. Specifies that if the commissioner awards a grant for less than 50 percent of the project, the commissioner shall provide the applicant and the legislature a written explanation of why less than 50 percent of the capital costs were awarded in the grant.

Section 17 [Eligible projects] expands development projects eligible for a BDPI grant to include industrial park development prior to any commitment by businesses to locate within the proposed park.

Section 18 [Application] modifies the criteria to be evaluated by the commissioner in reviewing grant applications to include projects that are expected to result in or will attract substantial public and private capital investment and are expected to or will create or retain full-time jobs. Current law requires that projects will result in investment and will create or maintain full-time jobs.

Section 19 [Maximum grant amount] increases the maximum grant award that a city or county may receive from $1,000,000 to $2,000,000 every two years.

Section 20 [Bureau of small business], subdivision 1 [Generally] adds technical assistance center and other technical assistance to scope of activities of the Bureau of Small Business.

Subdivision 2 [Duties] specifies the provision of business finance assistance and information as a duty of the bureau; updates mediums for contacting the bureau; and provides specificity regarding the development of the bureau’s public awareness program regarding state assistance programs for small businesses.

Section 21 [Certification of qualified investors] modifies Minnesota angel investment tax credit by expanding the securities for which non-accredited investor can claim an angel investment tax credit to include securities registered under the MNVEST registration exemption that was enacted by the 2015 Legislature.

Section 22 [Grant allowed] increases, from $9,000 to $11,000, the maximum amount of pay-for-performance grants for certain job training programs. 

Section 23 [Qualified job training program] changes requirements for a job training program to be eligible for pay-for-performance grants under section 116J.8747.

Sections 24 to 32 [Definitions] add and amend definitions relating to changing the name of the Urban Initiative Board in Chapter 116M to the Minnesota Emerging Entrepreneur Program and expansion of the program statewide. 

Section 33 [Membership] amends the membership composition to reflect changes to the Minnesota Emerging Entrepreneur Board. Increases governor appointees to the board from eight to 12 members, increases representatives from minority business enterprises from six to nine members, and prohibits more than six public members from being of one gender. Requires geographic balance in appointed membership. Requires at least half of the public members to have experience in working to address racial income disparities.

Section 34 [Board responsibilities] requires the MEEP board to submit an annual report, act as a liaison, and assist DEED with outreach about the program.

Section 35 [Technical assistance] requires the department of employment and economic development (DEED) to provide technical assistance and informational outreach about the program to lenders, nonprofit corporations, and low-income and minority communities throughout the state that support the development of business enterprises and entrepreneurs.

Section 36 [Reports] requires the board to include information on the number of jobs created by the Minnesota Initiative program in their annual report to the legislature.

Section 37 [Minnesota Initiative program] establishes a statewide grant program to award grants to nonprofit corporations to fund loans to businesses owned by minority or low-income persons or women. Requires DEED to review existing agreements with nonprofit corporations every five years and allows DEED to renew or terminate agreements based on their review. Requires nonprofit corporations that receive grants to establish a commissioner-certified revolving loan fund for the purpose of making eligible loans. Allows grants for microenterprise loans to be made for a minimum of $5,000 (increased from $1,000) and a maximum of $35,000 ($50,000 in low-income areas). Allows DEED to make capacity building grants to nonprofit corporations. 

Section 38 [Exceptions to boiler requirements] extends the exception for high pressure boiler attendance requirements at a sawmill facility until August 1, 2018, or upon the effective date of a rule regulating high pressure boiler attendance requirements for the facility.

Section 39 [Family homeless prevention and assistance program] amends the definition of “families” for purposes of the program to include persons 24 years of age or younger from the previous age limit of under age 22.

Section 40 [Set aside] allows a tribe or a group of tribes to apply for and receive family homeless prevention and assistance grants for areas located outside the metropolitan area.

Section 41 [Workforce and affordable homeownership development program] establishes a grant program to be administered by the Minnesota Housing Finance Agency (MHFA) to award homeownership development grants to nonprofits, cooperatives, and community land trusts in order to increase the supply of workforce and affordable, owner-occupied housing in Minnesota.  Requires a report from MHFA to the legislature specifying the projects that received grant funds.

Section 42 [Effective date] extends the effective date for the Public Employment Relations Board out one year to July 1, 2017.

Section 43 [Explore Minnesota Tourism] makes a technical correction to the 2015 appropriation rider language for Explore Minnesota Tourism.

Section 44 [Day training and habilitation grant program] establishes a grant program to be administered by DEED for a day training and habilitation competitive grant program in relation to the Olmstead Plan requirements. Requires DEED to submit an annual report to the legislature on the amount of funds awarded and the outcomes reported by grantees.

Section 45 [Exploited families rental assistance program] requires the commissioner of housing finance to establish a rental assistance program to serve families from emerging communities at risk of being homeless and who have been victims of gender-based violence, including, but not limited to domestic violence, sexual assault, trafficking, international abusive marriage, or forced marriage. Provides the eligibility for grant recipients, including the requirement that recipients of the rental subsidy must pay rent at 30 percent of their income. Requires the organizations receiving grants to provide aggregate data on participants to evaluate the program.

Section 46 [Lake Mille Lacs economic relief program] requires Mille Lacs County to create an economic relief program for businesses affected by declines in walleye fishing on Lake Mille Lacs. The program may include provision of grants, loans, and forgivable loans. The program is restricted to areas around Lake Mille Lacs and to businesses in certain industries. Mille Lacs County must create performance measures, which will be monitored by the commissioner of employment and economic development.

Section 47 [Revisor’s instruction] directs the Revisor of Statutes to change the term “Urban Initiative Board” to “Minnesota Emerging Entrepreneur Program” consistent with the changes made to the program in sections 24 to 37

Article 8 – Labor and Industry

Section 1 [Effective date of rules] restores language erroneously deleted in 2015 to reflect that a board may also provide an earlier effective date for a rule if needed to protect public health and safety.

Section 2 [Ban on lead in plumbing] conforms the statute to be consistent with changes in the federal “Reduction of Lead in Drinking Water Act.” Deletes “lead pipe” as outdated terminology.

Section 3 [Application, examination, and license fees] provides clarification that journey worker plumber’s licenses expire on December 31 of each odd-numbered year after issuance or renewal of a license.

Article 9 – UI Advisory Council Housekeeping

Section 1 [Covered employment] modifies what constitutes “covered employment” when applying section 268.095. Under current law, because of the definition, any federal or railroad employment cannot be “better work.” If an applicant quits employment to work for the federal government or a railroad, and the job does not work out, the applicant is denied benefits. This proposal would correct that.

Section 2 [Wages] conforms to MN Supreme Court decision that held one aspect of current definition of “wages” preempted by the federal ERISA law. Uses the analogous Wisconsin statute as a model.

Section 3 [Not eligible] makes technical change related to timing of ineligibility for fraud.

Section 4 [Continued request for unemployment benefits by electronic transmission] changes deadline for sending electronic request for continued benefits from three weeks to four. Makes technical and stylistic changes.

Section 5 [Continued request for unemployment benefits by mail] changes deadline for sending mail request for continued benefits from three weeks to four. Makes technical and stylistic changes.

Section 6 [Quit] clarifies that the concept of “constructive voluntary quit” does not apply in the context of unemployment insurance.

Section 7 [Discharge] clarifies that the concept of “constructive discharge” does not apply in the context of unemployment insurance.

Section 8 [Unemployment benefit overpayments] rewrites the section regarding repayment of benefit overpayments. Does not change substantive law or department practice.

Section 9 [Effective date] extends the expiration date for special unemployment benefit assistance provision from Laws 2015, First Special Session chapter 1, article 6, section 16, to December 1, 2016.

Section 10 [Effective date] provides an effective date for the article of July 31, 2016, unless specified otherwise.

Article 10 – UI Advisory Council Technical

Section 1 [Earnings] defines “earnings.”

Section 2 [Noncovered employment] makes stylistic changes, and deletes unnecessary clauses.

Section 3 [Nonprofit Organization] defines “nonprofit organization.”

Section 4 [Suitable employment] makes stylistic changes, and deletes redundant clause.

Section 5 [Social Security old age insurance benefits] makes stylistic changes.

Section 6 [Deductible earnings] deletes unnecessary language.

Section 7 [Revisor’s instruction] provides Revisor’s instruction.

Section 8 [Effective date] provides an effective date for the article of July 31, 2016.

Article 11 – UI Advisory Council Policy

Section 1 [Tax rate for new employers] modifies the mechanism for determining experience tax rates for new employers. New employers are assigned the average rate for the industry into which they are assigned. Under the bill, industries are broken down into very specific categories using the North American Industry Classification System. The change should provide a more accurate estimate of what a new employer’s experience rating is likely to be. The provision is effective January 1, 2018.

Section 2 [Limitation on applications and benefit accounts] allows an applicant seven days after applying for benefits to request backdating of benefits. Current law allows backdating to the Sunday of the week before the application for benefits is filed but only if the applicant requests so on the application.

Section 3 [Quit] makes several changes to the subdivision allowing exceptions to denial of benefits for applicants who quit previous employment.

Section 4 [Determination] changes the period in which a determination of ineligibility for benefits due to fraud may be made from four years to 48 months. The change brings consistency of time periods used; all other periods for determining eligibility are in months not years.

Section 5 [Administrative penalties] conforms to change made in section four.

Article 12 – Equity

Section 1 [Appropriations] provides the technical language on how the appropriations in this article are treated.

Section 2 [Equity Appropriations] provides the appropriations for this article.       

Subdivision 1 [Total Appropriations] appropriates a total of $35,000,000 to various departments.

Subdivision 2 [Department of Employment and Economic Development] appropriates $34,250,000 to the Department of Employment and Economic Development for:

  • Grants to the Neighborhood Development Center for small business programs, $1,500,000;
  • A competitive grant program for organizations that provide support for individuals, such as job training, employment preparation, internships, job assistance to fathers, financial literacy, academic and behavioral interventions for low-performing students, and youth intervention, $2,000,000;
  • Grants to YWCA organizations to provide job training services and workforce development programs and services, $1,000,000 to YWCA of St. Paul and $750,000 to YWCA of Minneapolis;
  •  A grant to EMERGE Community Development for services targeting communities with highest concentrations of African and African-American joblessness, $4,250,000;
  • A grant to the Metropolitan Economic Development Association (MEDA) for statewide business development and assistance services, $2,500,000;
  • A grant to the Minneapolis Foundation for a strategic intervention program designed to target and connect program participants to employment, $1,000,000;
  • A grant of $1,200,000 to Twin Cities R!se to provide training to hard-to-train individuals, and of that amount, $407,000 is for the  Metro Transit technician training program;
  • A grant to Hennepin County for the creation of additional multiemployer, sector- based career connections pathways, $2,500,000;
  • The high-wage, high-demand, nontraditional jobs grant program, $1,500,000;
  • The youth-at-work competitive grant program, $1,000,000;
  • A competitive grant program to organizations providing services to relieve economic disparities in the Southeast Asian community through workforce recruitment, development, job creation, assistance of smaller organizations to increase capacity, and outreach, $2,000,000;
  • A grant to Latino Communities United in Service (CLUES) to expand culturally tailored programs that address employment and education skills gaps, $1,500,000;
  • A grant to the American Indian Opportunities and Industrialization Center to reduce academic disparities for American Indian students and adults, $880,000;
  • A grant to the White Earth Nation for the White Earth Nation Integrated Business Development System, $500,000;
  • The Minnesota Emerging Entrepreneur Program, $500,000;
  • The Pathways to Prosperity adult workforce development competitive grant program, $1,000,000;
  • The capacity grant building program to assist nonprofit organizations offering workforce development and economic development programming, $320,000;
  • $2,000,000 for grants for positive youth development, community engagement, legal services, and capacity building for community-based organizations serving Somali youth.  Of this amount, $1,000,000 is for a grant to Youthprise;
  • A grant to Ujamaa Place for job training, employment preparation, internships, education, training in the construction trades, housing, and organizational capacity building, $600,000;
  • A grant to Enterprise Minnesota, Inc., $1,750,000. Of this amount, $875,000 is for the small business growth acceleration program and $875,000 is for operations;   
  • Grants to centers for independent living, $1,000,000; and     
  • A grant to State Services for the Blind to be used to provide services for senior citizens who are becoming blind, $1,000,000.

Subdivision 3 [Minnesota Housing Finance Agency] appropriates $750,000 to the Minnesota Housing Finance Agency for:

  •  a grant to Build Wealth MN to provide for family stabilization plan program, $500,000; and
  • 250,000 for grants for creation of expansion of risk mitigation programs to reduce landlord financial risks.

Sections 3 to 8 permit the Commissioner of Administration to award a contract under $25,000 to a small business, small targeted group business, veteran-owned small business, or a small business in an economically disadvantaged area for goods, services, or construction, without competitive bidding. Permits the commissioner to set goals for contractors to subcontract with businesses from any combination of the disadvantaged categories.

Section 9 [Youth-At-Work Grant Program] establishes a grant program to organizations that provide workforce development and training opportunities to economically disadvantaged or at-risk youth ages 14-24.

Section 10 [Women and High-Wage, High-Demand, Nontraditional Jobs Grant Program] requires the Commissioner of Employment and Economic Development to give priority to  grant program applicants that encourage and assist women of color to enter high-wage, high­ demand, nontraditional occupations and STEM occupations. The potential uses of the grant funds are expanded.

Section 11 [Requirements for Grants to Individually Specified Recipients] provides requirements that named recipients must follow, including prerequisites that must be met before funding is provided, a financial review, and reporting requirements.

Section 12 [Ethnic Council Review] allows the commissioners of an agency receiving a grant in this article to consult with the four state ethnic councils regarding implementation of the programs funded in the article.


Article 13 – State Departments and Veterans

Section 1 [Appropriations] specifies that amounts appropriated in this act are in addition to amounts appropriated in the 2015 State Departments budget bill.  Appropriations are from the general fund, unless otherwise specified, and are available in the fiscal year indicated. Appropriations for fiscal year 2016 are effective the day after enactment.

Section 2 [Administration] appropriates money to the Department of Administration.

Subdivision 1 [Total Appropriations] sums the total appropriated to the Department of Administration.

Subdivision 2 [Government and Citizen Services – Olmstead Plan Increased Capacity] appropriates money for administrative costs to expand services provided under the Olmstead Plan for people with disabilities.

Subdivision 3  [Fiscal Agent – Veterans’ Voices] appropriates money for a grant to the Association of Minnesota Public Educational Radio Stations for statewide programming to promote the Veterans’ Voices program. This is a onetime appropriation.

Subdivision 4 [Account and Procurement Software] appropriates money for accounting and procurement software to facilitate targeted group business use and reporting.  This is a onetime appropriation.

Section 3 [Minnesota Management and Budget] appropriates money to Minnesota Management and Budget for statewide information technology systems. This is a onetime appropriation.

Section 4 [Revenue] appropriates money to the Department of Revenue for tax refund fraud protection; for communication and outreach; and for technology, audit, and fraud staff.  A portion of this appropriation is onetime.

Section 5 [Amateur Sports Commission] appropriates money for the so-called Mighty Ducks program, to replace R-22 in the cooling systems of ice arenas around the state. This is a onetime appropriation.

Section 6 [Humanities Center] appropriates money to the Minnesota Humanities Center for the Veterans Voices’ program and for education efforts around the Veterans’ Voices program. This is a onetime appropriation.

Section 7 [Minnesota State Retirement System] appropriates money for transfer to the judges’ retirement fund and adds this amount to the base. The transfer continues until the judges’ retirement plan reaches 100 percent funding.

Section 8 [Military Affairs] appropriates money to the Department of Military Affairs for payroll, training, and testing to improve security at state-owned National Guard facilities.

Section 9 [Veterans Affairs] appropriates money to the Department of Veterans Affairs.

Subdivision 1 [Total Appropriation] sums the appropriations to the Department of Veterans Affairs.

Subdivision 2 [Cottages of Anoka] appropriates money to support nonprofit organizations in providing rent subsidies for housing for veterans and their families at the Cottages of Anoka.

Subdivision 3 [State Soldiers Assistance Grant] appropriates money for housing and health assistance to veterans through the state soldiers assistance fund.

Subdivision 4 [Mental Health Study] appropriates money for a study, described later in the article, to determine unmet needs for veterans behavior and mental health.

Subdivision 5 [Disabled Veterans Interim Housing Study] appropriates money for a study, described later in the article, on interim housing for disabled veterans who are waiting for residency in a veterans home.

Section 10 [Public Safety] appropriates money for a grant to the Arrowhead Regional Development Commission to assess law enforcement needs in Northeast Minnesota.  This appropriation is onetime.

Section 11 [State match] provides that requirements for review of federal funds involving an increased state match apply to federal money that has been awarded (rather than received).

Section 12 [Increase in amount] provides that requirements for review of increased amount of federal funds applies to federal money awarded and available to be expended.

Section 13 [Interim procedures; urgencies] amends the applicability of procedures governing federal money awarded to the state during the interim (or after deadline for review during session) when an urgency requires the money to be encumbered or expended before the next legislative session. 

Section 14 [Legislative Advisory Commission review] amends the applicability of the process for LAC review of federal money awarded to the state when there is an increased state match, a change in purpose, or an increase in amount of federal money.  Provides that the commissioner of MMB may not approve the expenditure if a member of the LAC makes a negative recommendation or requests further review within 20 days.  The commissioner may approve the allotment of federal money for expenditure if the LAC makes a positive recommendation or no recommendation.

Section 15 [Interim procedures; nonurgencies].  Under current law, requests to spend federal money when there is no urgency for the money to be encumbered or expended before the next legislative session must be submitted to the LAC by October 1.  This section changes the deadline to the later of October 1 or 100 days before the start of the next legislative session and makes a conforming change to the time for LAC members to make a negative recommendations or to recommend further review. This section permits the commissioner to submit a request to the LAC again if it receives a negative recommendation or a recommendation of further review.

Section 16 [Withdrawal of commission recommendation] permits a member of a Legislative Advisory Commission to withdraw a negative recommendation or a recommendation for further review within 20 days.  The Commissioner of Management and Budget may approve expenditures of federal money if all negative recommendations and all recommendations for further review are withdrawn.

Section 17 [Withdrawal of request] authorizes the Commissioner of Management and Budget to withdraw a request to spend federal money.  

Section 18 [Revenue uncertainty information] requires the Commissioner of Management and Budget to report to the legislature within 14 days of a budget forecast on uncertainty in Minnesota’s general fund revenue projections.

Section 19 [Additional revenues; priority] increases the amount allocated to the budget reserve account when there will be a positive unrestricted budgetary general fund balance at the close of a biennium.  This section eliminates allocations to the closed landfill investment fund and the metropolitan landfill contingency action trust account.

Section 20 [Purchases] requires that whenever practicable public entities purchase printer or duplication cartridges that have 10 percent postconsumer material, are remanufactured, or are backed by a vendor offered program that will take back used cartridges and ensure they are recycled.

Sections 21 to 25 create a process for agency funding of technology projects through MN.IT.

Section 21 [State Agency Technology Projects] permits a state agency to transfer an unexpended operating balance to a specified account (“the information and telecommunications technology systems and services account”) for the information technology cost of a specific project, subject to the review of the Legislative Advisory Commission.

Section 22 [Charges] permits MN.IT Services to receive a fund transfer from a state agency for purchases of information and telecommunications technology systems and services.

Section 23 [Legislative Advisory Commission Review] precludes the transfer of money into the information and telecommunications technology systems and services account until the Commissioner of Management and Budget submits the proposed transfer to the Legislative Advisory Commission for review and recommendation.  Establishes steps and timeline for review of a proposal by the Legislative Advisory Commission.

Section 24 [Lapse] provides that money transferred into the information and telecommunications technology systems and services account that is not spent lapses at the close of the fiscal year four years after the funds were received in the account.  The lapsed funds are returned to the fund from which they had been transferred into the information and telecommunications technology systems and services account.

Section 25 [Report] requires the chief information officer to report to the legislature in odd-numbered years on the projects funded through the information and telecommunications technology systems and services account.

Section 26 [Certification of qualified small-businesses] modifies the criteria for certification as a qualified small business for purposes of the small business investment tax credit.  Permits an exemption from certain certification requirements under specified conditions.  This section is effective for taxable years beginning after December 31, 2015.

Section 27 [Credit allowed] and Section 28 [Sunset] extend a small business investment tax credit through calendar year 2017, and make related changes.

Sections 29 to 52, and 68 to 70, amend laws regarding the Board of Barber Examiners and practices governed by the board.

Section 29 [Board of Barber Examiners] increases the number of barber members from three to four on the Board of Barber Examiners.

Section 30 [Officers; Compensation; Fees; Expenses] makes explicit that compensation for the barber board is as prescribed in a statute that applies to all licensing boards. The compensation is $55 per day, and certain expenses are reimbursed.

Section 31 [Fees] eliminates and makes changes to categories in the board’s fee schedule.

Section 32 [Registration Mandatory] requires that barbers provide services only in a registered barber shop or school, unless authorized by the board.  Provides that barber shop registration cards must be issued to the establishment address.  Requires that barber instruction be provided only in registered barber schools.

Section 33 [Definitions] expands practices that are defined as barbering, to include cleaning, conditioning, coloring, shaping, and straightening hair. Defines “barber school,” “barber shop,” “certification of registration,” “designated registered barber,” and “registered barber.”

Section 34 [Persons Exempt from Registration] makes changes to the list of people and practices exempted from registrations required by the Board of Barber Examiners.  Adds licensed physician to the list of people exempt from requirements for registration for practicing barbering. Specifies that the existing exemption for cosmetologists is only for services defined as cosmetology elsewhere in statute. Eliminates a permission for nail technicians to operate in a barber shop. Adds individual homes to the places a barber may perform barber services if the services are for charitable purposes without compensation.

Section 35 [Who May Receive Certificates of Registration As a Registered Barber] makes changes to the requirements for barber registration.

Section 36 [Qualifications] permits certain experience qualifications from another state or jurisdiction to be considered as part of the qualifications to be an instructor of barbering.

Section 37 [Examinations] eliminates a time limit on the validity of a temporary certificate as an instructor of barbering.

Section 38 [Barber Schools; Requirements] makes changes to requirements for barber schools.  This section adds ways to meet educational requirements for admission to a barber school; increases the number of hours of instruction permitted in a working day; adds topics required topics of instruction; and increases the permitted student-to-teacher ratio. 

Section 39 [Application; Fee] changes requirements for identification when applying for a barber examination. 

Section 40 [Examinations, Conduct and Scope] makes changes to the requirements for taking the barber examination to reflect the elimination of the apprentice program. Eliminates oral test requirement for barber registration.

Section 41 [Certificate or registration; fees] strikes references to apprentices.

Section 42 [Examination of nonresidents] amends provisions governing licensure by presenting credentials for another state or country, and provisions governing educational requirements for individuals without credentials from another state or country.

Section 43 [Temporary military permits] strikes references to apprentice barbers.

Section 44 [Certificates of registration and temporary permits to be displayed] provides that an instructor’s and a school’s certificates of registration must be displayed in a part of the barber school that is accessible to the public.

Section 45 [Certificates of registration must be renewed annually] strikes references to registered apprentices.

Section 46 [Registration actions] strikes references to apprentices and updates statutory range references.

Section 47 Reinstatement] updates statutory range references.

Section 48 [Administrative penalties] provides that penalty for missing or lapsed shop registration is up to $500 (instead of $500), and penalties for unregistered barbers are up to $500 (first occurrence) and $1,000 (second occurrence).

Section 49 [Violations] strikes references to apprentices.  Changes “beauty parlor” reference to refer instead to “cosmetology salon.”  Refers to “sanitation and disinfection” provisions, replacing “sanitary” provisions, and makes this reference apply to any barber workstation in a shop or school.

Section 50 [Perjury] changes statutory range references.

Section 51 [Rules] changes statutory range references.  Refers to “sanitation and disinfection” provisions, replacing “sanitary” provisions.  Strikes reference to apprentices.

Section 52 [Not to serve certain persons] strikes references to specific diseases and conditions, leaving in place a reference to a person, in a dangerous or infectious state of disease, with contagious or infectious disease.  Changes statutory range references.

Section 53 [Highway contracts with Tribal authorities] permits the Commissioner of Transportation to grant a preference for, or negotiate with, Indian-owned contractors for construction of highways on certain tribal lands in a reservation.

Section 54 [Application] amends the Veterans Preference Act to provide that a political subdivision may require a veteran to complete an initial hiring probationary period before the veteran has a writ of mandamus for removal from a position of employment.  Provides that veterans employed by political subdivisions have the same rights and legal protections that state employees have under paragraph (b) of this section.

Section 55 [Veterans Preference Act] amends the process for removing a veteran from government employment under the Veterans Preference Act in the following ways:

  • provides that a veteran’s right to a writ of mandamus for removal from a position of employment applies after an initial hiring probationary period expires;
  • shortens the time, from 60 days to 30 days, that a veteran who has been notified of intent has to discharge to request a hearing under this section;
  • grants a veteran the right to have a challenge to a removal or discharge heard by an arbitrator, even if the veteran’s employer has a civil service board or commission or merit system authority; and
  • requires the employer to pay all costs associated with the hearing except that the employer is not required to pay the veteran’s attorney fees unless the hearing reverses the level of the alleged incompetency or misconduct requiring discharge.

Section 56 [James P. Metzen Mighty Ducks Ice Center Development Act] names an existing statutory ice center funding program for Senator James Metzen.

Section 57 [Subtractions from federal taxable income] permits subtraction of military pensions from taxable income.  Removes a subtraction for qualified fringe benefits. Effective beginning in tax year 2016. 

Section 58 [Payment to the manufactured home relocation trust fund] increases from $12 to $15 (or from $1 to $1.25 per month) the annual payment an owner of a manufactured home park may collect from a resident for the manufactured home relocation trust fund.

Section 59 [Payment to the Minnesota manufactured home relocation trust fund] changes a reference to the annual payment to the relocation trust fund from $12 to $15, in connection with the change in the prior section.

Section 60 [Change in use, Relocation Expenses; Payments by Park Owner] increases the limit on required payment to the owner of a manufactured home when a home owner is required to relocate a home due to a manufactured home park being put to another use, closed, or ceasing to be used as a manufactured home park. The payment is for actual relocation costs and is paid from the Minnesota manufactured home relocation trust.  The limits are increased under this section from $4,000 to $7,000 for a single-section and from $8,000 to $12,500 for a multisection manufactured home.

Under current law, if the owner of a manufactured home is not able to relocate a manufactured home and if the home owner and the park owner agree, the home owner can transfer title to the park owner and the home owner can collect an amount determined by an independent appraisal to be paid from the Minnesota manufactured home relocation fund.  This section provides that when appraised market value cannot be determined, the tax market value, averaged over a period of five years, can be used instead.  This section changes the maximum that can be paid to the home owner from $5,000 to $8,000 for a single-section home and from $9,000 to $14,500 for a multisection home.  This section sets a minimum amount at $4,000 for a single section and $8,000 for a multisection manufactured home.

Section 61 [Plaque or Marker Authorized to Honor Capitol Construction Workers] requires that a plaque be placed in the Capitol building to honor workers who constructed the State Capitol Building and those who worked subsequently on projects to preserve the building.  The plaque shall specifically honor the six workers who died during construction. The Capital Area Architectural and Planning (CAAP) Board and the Minnesota Historical Society are required to set parameters and select a location for the plaque.  The CAAP Board must conduct a contest for sixth graders to submit designs for the plaque that will be used as a basis for the final production of the plaque.  The plaque must be installed during the remodel of the Capitol. 

Section 62 [Study on Veterans unmet needs for behavior and mental health services] requires the Commissioner of Veterans Affairs to perform a study and report to the legislature by February 15, 2017, on the unmet needs among Minnesota veterans for behavioral and mental health services.

Section 63 [Feasibility Study on Partnerships to Provide Interim Housing for Disabled Veterans] requires the Commissioner of Veterans Affairs to study the feasibility of partnering with a nonprofit organization to provide interim housing for disabled veterans in conjunction with fully integrated and customizable support services.  This section requires the commissioner to report the results of the study to the legislature by February 15, 2017.

Section 64 [Memorial commemorating recipients of the Medal of Honor] requires a memorial on the State Capitol grounds to honor Minnesotans awarded the Medal of Honor.  Permits the commissioner to solicit gifts and grants, and appropriates the money to the Commissioner of Administration under certain conditions.

Section 65 [Legislative Advisory Commission; Federal Funds] requires the Commissioner of Management and Budget, in consultation with legislative nonpartisan fiscal staff, to review and recommend federal funds that should not be subject to review by the Legislative Advisory Commission.

Section 66 [Legislative Surrogacy Commission] creates a Legislative Commission on Surrogacy.  Requires the commission to report by December 15, 2016, on specified issues relating to surrogacy.  

Section 67 [LCPFP Study of Joint Budget Target Process] requires the Legislative Commission on Planning and Fiscal Policy to study and make recommendations to the legislature by January 15, 2017, on the process and timing for the legislature to establish joint budget targets.

Section 68 [Rulemaking] authorizes the Board of Barber Examiners to use expedited rulemaking procedures to amend Minnesota Rules, chapter 2100, to conform with this act. (Chapter 2100 contains all of the board’s rules).

Section 69 [Transitioning apprentice barbers to registered barbers] provides that an apprentice barber practicing on August 1, 2016, is eligible to apply for registered barber status.  An apprentice barber must take the registered barber exam.  Provides that all apprentice barber registrations will be discontinued on December 31, 2017.

Section 70 [Repealer].  Repeals certain provisions relating to regulation of barbering, as follows:  

•     Section 154.03: Apprentices may be employed

•     Section 154.06: Certificates of a registered apprentice

•     Section 154.11, subd. 2: Temporary apprentice permits for nonresidents

•     Section 154.12: Examination of nonresident apprentices

Article 14 – Miscellaneous

Section 1 [Credit for parents of stillborn children] authorizes a $2,000 refundable credit for taxpayers who have been issued a certificate of birth resulting in stillbirth from the state registrar. The credit is allowed in the taxable year in which the stillbirth occurred and if the child would have been a dependent of the taxpayer under the Internal Revenue Code. Effective beginning in tax year 2016.

Section 2 [Manufactured housing and park trailers; modular housing] imposes the sales tax on modular housing used for residential purposes on 65% of the invoice price, similar to the tax treatment of manufactured housing and park trailers. Effective for sales and purchases made after June 30, 2016. 

Section 3 [Killed in the line of duty] expands the definition of “killed in the line of duty” to cover public safety officers and to cover deaths from certain causes, for purposes of awarding death benefits and education benefits to spouse and children.

Section 4 [Public safety officer] expands the definition of “line of duty death” to include public safety officers, for purposes of awarding public employee retirement benefits.

Section 5 [Appropriation; public safety] appropriates money from the general fund to the commissioner of public safety to provide certain public safety officer survivor benefits.

Article 15 – Children and Families

Section 1 (145.4716, subd. 2) makes a technical modification to the safe harbor statute by adding a cross-reference to Minnesota Statutes, section 609.3241.

Section 2 (145.4716, subd. 3) expands eligibility for the safe harbor services and housing to youth 24 years of age or younger, consistent with the Homeless Youth Act under chapter 256K and related federal law.

Section 3 (256D.051, subd. 6b) modifies the Food Stamp Employment and Training Program statute, specifying how the federal appropriation for the program must be used.  This section requires the commissioner to report, by February 15, 2017, to the legislative committees with jurisdiction over the food stamp program on the progress of securing additional federal reimbursement funds, and allows service providers to be paid with federal funds for Food Stamp employment and training costs the providers incur.

Section 4 (256N.26, subd. 3) increases the basic monthly rate for Northstar Care for Children by 15 percent beginning July 1, 2017.

Section 5 (256P.06, subd. 3) clarifies that income includes all child support that the assistance unit receives, not just current support.

Section 6 (260C.125) creates a new section of law establishing the procedure for transferring the responsibility for the placement and care of an Indian child in out-of-home placement from the social services agency to a tribal agency.

Section 7 (260C.203) strikes language that is consolidated in a new section of law, section 260C.452.

Section 8 (260C.212, subd. 1) allows a child 14 years or older to select one member of the case planning team to be designated as the child’s adviser and to advocate for reasonable and prudent parenting standards.  For a child 18 years or older, this section requires, when appropriate, that the social services agency involve the child’s parents in the child’s case planning. This section also provides more detail related to educational stability requirements for foster children, clarifies the child’s role in the development of the independent living plan, and requires that the child receives notice of rights.

Section 9 (260C.212, subd. 14) defines the term “developmentally appropriate,” and modifies the definition of “reasonable and prudent parenting.”  This section also requires the commissioner to provide guidance as to what activities a foster parent must consider when applying reasonable and prudent standards.

Section 10 (260C.215, subd. 4) requires the curriculum for foster parents to include, as necessary, knowledge and skills related to reasonable and prudent parenting standards.

Section 11 (260C.451, subd. 6) clarifies that a child may reenter foster care prior to 21 years of age.

Section 12 (260C.451, subd. 9) adds a new subdivision clarifying requirements of administrative or court reviews to ensure the social services agency is making reasonable efforts to finalize the permanency plan for the child.

Section 13 (260C.452) creates a new section of law consolidating provisions related to the successful transition to adulthood for children under the guardianship of the commissioner, which includes independent living plan, notification of right to continued access to services, administrative or court review of placements, and notification of termination of foster care.

Section 14 (260C.521, subd. 1) modifies the purpose of the court review hearing of an order for permanent custody by specifying requirements of the responsible social services agency.

Section 15 (260D.14) amends the chapter of law related to a child in voluntary foster care for treatment chapter of law, by creating a new section related to the successful transition to adulthood, which includes case planning, notification of continued right to access services, and administrate or court reviews.

Section 16 (518.175, subd. 5) amends the statute governing modification of parenting time to provide that if a parenting plan or parenting time order cannot be used to determine the number of overnights a child has with each parent, the court must modify the plan or order so that the amount may be determined for purposes of the statute governing the parenting expense adjustment.

Section 17 (518A.26, subd. 14) amends the definition of “obligor” to provide that if a parent has more than 55 percent court-ordered parenting time, there is a rebuttable presumption that the parent has a zero dollar basic support obligation.  Factors to be considered overcoming this presumption are specified.  It does not eliminate an obligation to pay child support arrears or apply in cases where the public authority is bringing an action for contribution by a parent.

Section 18 (518A.34) modifies the parenting expense adjustment to the basic support obligation, consistent with other amendments in the bill.  New provisions are included governing calculations in cases where parents have split custody of joint children.  Parallel provisions are included for purposes of the basic support obligation, child care support obligation, and medical support.

Section 19 (518A.35, subd. 1) provides that unless a parent has court-ordered parenting time, the parenting expense adjustment formula must not be applied.  Special provisions are included in cases where a support order is sought by the public authority.

Section 20 (518A.36) contains the operative language governing changes in the parenting expense adjustment.

Subdivision 1 requires the percentage of time in a calendar year that a child is scheduled to spend with the parent to be calculated based on a two-year average.  Language governing the use of overnight equivalents for purposes of calculating the percentage of parenting time is included.

Subdivision 2 contains the new formula for the calculation of the parenting expense adjustment.

Subdivision 3 strikes language applicable in cases where parenting time is equal, which is replaced by new provisions in subdivision 2.

Section 21 (518A.39, subd. 2) amends the law governing modification of maintenance or support orders.  Special provisions are included for cases where child support was established by applying a parenting expense adjustment under prior law where there is no parenting plan or order from which overnights may be determined.  A formula is included for determining an obligation under previously existing child support guidelines.  Changes are made in the modification language applicable when child support guidelines are amended and application of the change would result in a hardship.

Section 22 (518A.79) creates the Child Support Task force to advise the Commissioner of Human Services on matters related to the child support guidelines.  Instructs the commissioner to prepare a legislative report on task force activities, issues identified by the task force and recommendations for legislative actions.  Requires the first report to be submitted February 15, 2018.  Provides that the task force expires June 30, 2019, unless extended by the Legislature.  Provides an immediate effective date.

Section 23 (609.3241) amends chapter 609, which is the criminal code, related to the assessment imposed due to a conviction under 609.322 (Solicitation, Inducement, and Promotion of Prostitution; Sex Trafficking) and 609.324 (Patrons; Prostitutes; Housing Individuals Engaged in Prostitution; Penalties), by changing the assessment formula; the assessment that is currently forwarded to the Commissioner of Public Safety, and deposited in the safe harbor for youth account in the special revenue fund, will instead be forwarded to the Commissioner of Health.

Section 24 (626.556, subd. 2) amends the definition of sexual abuse in the Maltreatment of Minors Act.  Effective May 29, 2017, the term sexual abuse includes a child who is a victim of sex trafficking.

Section 25 (626.556, subd. 3e) provides that the local welfare agency is responsible for investigating when a child is identified as a victim of sex trafficking, effective May 29, 2017.

Sections 26 to 28 amend the multidisciplinary child protection team.

Section 26 (626.558, subd. 1) adds children’s advocacy centers to the list of community-based agencies that may be included on the multidisciplinary child protection team.

Section 27 (626.558, subd. 2) adds a representative of a children’s advocacy center to the list of agencies that may assist with case consultation.

Section 28 (626.558, subd. 4) defines the term “children’s advocacy center.”

Section 29 prohibits the Commissioner of Human Services from counting payments made to families by a demonstration project as income or assets for purposes of determining eligibility for various human services programs including child care assistance, MFIP, MA, and MinnesotaCare.  Defines “income and child development in the first three years of life demonstration project.”  Provides that this section will only be implemented if Minnesota is chosen as a site for the federal demonstration project, and provides a January 1, 2022, expiration date. Requires the commissioner to report to the Legislature on the outcomes of the demonstration project by January 1, 2023. 

Article 16 – Chemical and Mental Health

Section 1 (245.735, subd. 3) modifies the Excellence in Mental Health Act demonstration project, which establishes certified community behavioral health clinics (CCBHC), by adding components that are necessary to implement the demonstration project, including providers standards, certification process, and prospective payment methodology.  This section is effective the day following final enactment.

Section 2 (245.735, subd. 4) requires the commissioner to collaborate and partner with stakeholders listed in this section in developing and implementing the CCBHCs.  This section is effective the day following final enactment.

Section 3 (245.99, subd. 2) amends the adult mental illness crisis housing assistance program by changing the eligibility; under current law, persons with serious and persistent mental illness are eligible and the modification allows for persons with serious mental illness to be eligible. This section is effective the day following final enactment.

Sections 4 and 7 (254B.01, subd. 4a, 254B.05, subd. 5) modify culturally specific programs to include subprograms for purposes of receiving enhanced chemical dependency rates. These sections are effective the day following final enactment.

Section 5 (254B.03, subd. 4) changes the county share, for fiscal year 2017 only, with regard to chemical dependency services for publically funded clients from 22.95 percent to 20.2 percent, and changes the county share of the state collection from a private or third-party payment from 22.9 percent to 20.2 percent.

Section 6 (254B.04, subd. 2a) adds language stating that it should not be a factor in making placements for chemical dependency treatment whether the treatment facility has been designated an institution for mental disease (IMD).

Section 8 (254B.06, subd. 2) requires the commissioner, for fiscal year 2017 only, to allocate 79.8 percent, instead of 77.05 percent, of the patient and third-party payments to the special revenue account, and allocate 20.2 percent, instead of 22.95 percent, to the county of financially responsible for the patient.

Section 9 (254B.06, subd. 4) adds a new subdivision prohibiting the commissioner from denying reimbursement to a program designated as an IMD due to a reduction in federal financial participation and the addition of new residential beds.

Section 10 (254B.15) directs the Commissioner of Human Services to establish pilot projects, within the limits of federal funds available specifically for treatment for pregnant and postpartum women with a substance use disorder, to provide substance use disorder treatment and services to pregnant and postpartum women.  Requires the commissioner to apply for any available federal grant funds for the pilot projects.

Section 11 (256B.0622, subd. 12) allows the commissioner to use grant funds, within available appropriations, for assertive community treatment teams, intensive residential treatment services, or crisis residential services.  This section is effective the day following final enactment.

Article 17 – Direct Care and Treatment

Sections 1 and 3 (246.50, subd. 7, 246B.01, subd. 1b) clarify the definition related to the county of financial responsibility for state-operated services and the Minnesota Sex Offender program, respectively.

Section 2 (246.54) increases the county liability for the cost of care for direct care and treatment services. Under new subdivision 1b for care at state-operated community-based behavioral health hospitals (CBHH), the county payment for the cost of care is 100 percent when the facility determines that it is clinically appropriate to discharge the client.  Under new subdivision 1c, language is moved from existing law related to the county liability for the Minnesota Security Hospital, (MSH) forensic nursing home, and forensic transition programs.  The new county liability for the cost of care at the residential competency restoration program is 20 percent for each day the client spends in the program while the client is in need of services; 50 percent for each day the client spends in the program, but the client no longer needs restoration services; and 100 percent for each day the client spends in the program once the charges against the client have been resolved or dropped.

Section 4 (246B.035) requires the annual MSOP performance report by February 15 beginning in 2017.

Section 5 requires a quarterly report on the Anoka Metro Regional Treatment Center, Minnesota Security Hospital, and community-based behavioral health hospitals, which contains information on the number of licensed beds, budgeted capacity, occupancy rate, number of OSHA recordable injuries and the number of those injuries that are due to patient aggression or restraint, clinical and direct care positions funded, and the percentage of those positions that are filled.

Article 18 - Continuing Care

Section 1 (144A.073, subd. 13) retroactively clarifies that in fiscal year 2013, the commissioner of health may approve nursing home moratorium exceptions for which the full annualized state share of Medical Assistance costs does not exceed $1,000,000 plus any carryover of previous appropriations for this purpose.

Section 2 (144A.073, subd. 14) retroactively clarifies that in fiscal year 2015, the commissioner of health may approve nursing home moratorium exceptions for which the full annualized state share of Medical Assistance costs does not exceed $1,000,000 plus any carryover of previous appropriations for this purpose.

Section 3 (144A.083, subd. 15) permits the commissioner of health to approve in fiscal year 2017 nursing home moratorium exceptions for which the full annualized state share of Medical Assistance costs does not exceed $1,000,000 plus any carryover of previous appropriations for this purpose.

Section 4 (144A.611, subd. 1) expands reimbursable expenses payable to a nursing home by (1) including the actual cost incurred by a nursing home when it reimburses nursing assistants for textbooks, and (2) allowing a nursing home to be reimbursed for its actual costs when it reimburses an adult training program for the program’s reimbursable expenses.

Section 5 (144A.611, subd. 2) requires nursing homes to reimburse nursing assistants for the actual costs of textbooks required for an approved training program.

Section 6 (144A.611, subd. 4) requires a nursing home or boarding care home to reimburse a nursing assistant or adult training program for no more than 30 percent of certain costs associated with the additional basic adult education components of an approved nursing assistant training program.

Section 7 (245A.11, subd. 2a) modifies the sunset date permitting corporate foster care moratorium exceptions for a fifth bed.  As passed in S.F. No. 2414 (Chapter 163), the sunset date was June 30, 2019; this section changes that sunset date to June 30, 2017.

Section 8 (256B.431, subd. 36) updates a cross-reference to conform to the changes made to section 144A.611.

Section 9 (Revisor’s Instruction). Paragraph (a) instructs the Revisor of Statutes to codify the home and community-based incentive pool, which provides incentive payments to providers for innovations that achieve integrated competitive employment and living in integrated settings.

Paragraph (b) requires the Revisor of Statutes to make technical and grammatical changes to Minnesota Rules to conform with the repealer adopted in the new positive support strategies rules.

 Article 19 - Health Care

Section 1 (16A.724, subd. 2) increases the amount transferred each biennium from the health care access fund to the general fund to reflect the current value of the medical assistance and MinnesotaCare revenue that is included in the HMO premiums and provider gross revenue taxes to cover the increase in the provider’s rates.

Section 2 (62V.05, subd. 12) requires the MNsure Board to provide quarterly reports to the legislature on interagency agreements or service-level agreements and any renewals or extensions of existing interagency or service-level agreements with a state agency or MN.IT with a value of more than $100,000 and transfers of appropriations of more than $100,000 between accounts within and between agencies.

Section 3 (256.01, subd. 41) requires the Commissioner of Human Services to provide quarterly reports to the legislature on interagency agreements or service-level agreements and any renewals or extensions of existing interagency or service-level agreements with a state agency or MN.IT with a value of more than $100,000 and transfers of appropriations of more than $100,000 between accounts within and between agencies.

Section 4 (256B.059, subd. 1) strikes the definition of “spousal share” thereby removing the requirement that a community spouse be allowed to retain only half of the marital assets up to a limit.  Under the new language, a community spouse will be able to retain 100 percent of marital assets up to a limit. This section is effective June 1, 2016.

Section 5 (256B.059, subd. 2) modifies when a couple’s assets are assessed and the moment in time that is used in that assessment by eliminating the references to the first day of a continuous period of institutionalization.  Under the new language, marital assets are assessed upon application for MA long-term services. This section is effective June 1, 2016.

Section 6 (256B.059, subd. 3) sets the maximum value of assets a community spouse may retain at $119,220.  This asset limit is subject to annual inflation adjustments. This section is effective June 1, 2016.

Section 7 (256B.059, subd. 5) eliminates unnecessary language, and specifies that the assets available to a spouse receiving long-term care to pay for those services are all assets in which either spouse has an ownership interest after deducting the community spouse’s asset allowance. This section also allows an institutionalized spouse to maintain medical assistance eligibility when (1) excess assets owned by the community spouse are retirement funds or funds protected for postsecondary education of a child under age 25, (2) the retirement accounts are protected until the community spouse is eligible to withdraw funds without penalty, and (3) denial of eligibility will cause an undue hardship to the family.  This section also provides that there shall not be an assignment of spousal support or a cause of action against the spouse for funds protected in retirement and college savings accounts.  This section is effective June 1, 2016.

Section 8 (256B.059, subd. 6) expands the definition of “institutionalized spouse” to include (1) effective June 1, 2016, a spouse applying after June 1, 2016, for HCBS waiver services (2) effective March 1, 2017, a spouse enrolled prior to June 1, 2016, to receive HCBS waiver services and (3) effective June 1, 2016, a spouse applying for community first services and supports.

Section 9 (256B.06, subd. 4) requires emergency medical assistance to cover kidney transplants for persons with end-stage renal disease, who are currently receiving dialysis services, and who are a potential candidate for a kidney transplant.

Section 10 (256B.0625, subd. 17a) increases the medical assistance payment rates by five percent for ambulance services provided by an ambulance service provider whose base of operations is located outside the metropolitan counties and outside the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester, or within a municipality with a population of less than 1,000.

Section 11 (256B.0625, subd. 30) requires the commissioner to seek a section 1115 federal waiver in order to obtain enhanced federal financial participation at 100 percent federal match available to Indian health services facilities or tribal organization facilities for expenditures made for organizations that are dually certified under the Indian Health Care Improvement Act and as a federally qualified health center that provide services to eligible American Indians and Alaskan Natives.

Section 12 (256B.0625, subd. 34) specifies that the medical assistance payments to a dually certified facility under section 256B.0625, subd. 30, paragraph (j), shall be the encounter rate or a rate equivalent for services provided to American Indians and Alaska Native populations.

Section 13 (256B.0625, subd. 60a) adds community emergency medical technician (CEMT) services to the set of covered benefits under medical assistance by:

  • establishing CEMT services as a covered benefit;
  • establishing and describing a CEMT posthospital discharge visit as a CEMT service;
  • establishing and describing a CEMT safety evaluation visit as a CEMT service; and
  • establishing the provider rate for CEMT services.

This section is effective January 1, 2017.

Sections 14 to 16, and 31, paragraph (a), retroactively limit medical assistance estate recoveries for those individuals 55 years of age or older who receive medical assistance while not institutionalized.

Section 14 (256B.15, subd. 1) makes a conforming change to the estate recovery language by striking a reference to the “total” cost of medical assistance an individual receives.

Section 15 (256B.15, subd. 1a, paragraph e) retroactively modifies the circumstances under which the Commissioner of Human Services is permitted to file a claim against the estate of an individual who received medical assistance while not residing in an institution.  

  • For services rendered prior to January 1, 2014, a claim against an estate must be filed if:  (1) a person received any medical assistance and the person was 55 years old or older at the time the service was rendered; or (2) the person at any age resided in an institution for six months or longer.
  • For services rendered after January 1, 2014, a claim against an estate must be filed, but only if:  (1) the person was 55 years old or older at the time the service was rendered and the services provided were nursing home services, home and community-based services, or related hospital and prescription drug benefits; or (2) the person at any age resided in an institution for six months or longer.

Section 16 (256B.15, subd. 2 – Limitations on claims) specifies what costs may be included in a claim against an estate.

  • For services rendered prior to January 1, 2014, a claim must include only (1) the total cost of medical assistance rendered after age 55, and (2) the total cost of medical assistance rendered at any age during a period of institutionalization.
  • For services rendered after January 1, 2014, a claim must include only (1) the total cost of nursing home services, home and community-based services, and related hospital and prescription drug benefits rendered after age 55, and (2) the total cost of medical assistance rendered at any age during a period of institutionalization.

Section 17 (256B.76, subd. 2) Paragraph (l) specifies that effective January 1, 2017, payment rates for dental services provided outside the seven-county metropolitan area are increased by 9.65 percent.  This replaces the payment rate increase for dental services that was passed last session that applied to dental services furnished by dental providers located outside of the seven-county metropolitan area.

Section 18 (256B.76, subd. 4) Paragraph (a) modifies the medical assistance critical access dental payments from 35 percent to 37.5 percent, except as specified in paragraph (b).

Paragraph (b) specifies that the critical access dental payment for dental clinics and dental groups that meet the critical access dental provider designation under paragraph (d), clause (4), and is owned and operated by a health maintenance organization shall remain at 35 percent rate increase over what would otherwise be paid to the critical access provider.

Paragraph (c) modifies the calculation used to determine the critical access dental payments to critical access providers providing dental services to enrollees of a managed care plan or county-based purchasing plan.

Paragraph (d) modifies the critical access dental provider designation so that the following dentists or dental clinics are included as critical access dental providers:  nonprofit community clinics; hospital-based dental clinics owned and operated by a city, county, or former state hospital; dental clinics or dental groups owned and operated by a nonprofit corporation with more than 10,000 patient encounters per year with patients who are uninsured or covered by medical assistance or MinnesotaCare; and private practicing dentists if the dentist’s office is located within the seven-county metropolitan area and more than 50 percent of the dentist’s patient encounters per year are with patients who are uninsured or covered by medical assistance or MinnesotaCare or is located outside the seven-county metropolitan and more than 25 percent of the dentist’s patient encounters per year are with patients who are uninsured or covered by medical assistance or MinnesotaCare.

Section 19 (256B.766) clarifies the medical assistance rate increase that was passed last year for durable medical equipment and supplies.

Sections 20 to 29 and 31, paragraph (b), make changes to the MinnesotaCare program to comply with federal regulations.

Section 20 (256L.01, subd. 1a) modifies the definition of child to an individual under the age of 21.

Section 21 (256L.01, subd. 5) modifies the definition of “income” to mean a household’s current income, or if income fluctuates month to month, the income for the 12-month eligibility period.

Section 22 (256L.04, subd. 1a) requires individual and families applying to MinnesotaCare to provide a Social Security number if required under the federal regulations.

Section 23 (256L.04, subd. 2) makes it permissive for an individual or family to cooperate with the state to identify potentially liable third-party payers and assist the state in obtaining third-party payments or in establishing paternity and obtaining medical care support and payments for the child.

Section 24 (256L.04, subd. 7b) requires the commissioner to adjust the income limits annually each July 1 instead of January 1.

Section 25 (256L.05, subd. 3a) modifies the redetermination time period for MinnesotaCare so that the 12 month period begins the month of application and authorizes the commissioner to adjust the eligibility period for enrollees to implement renewals throughout the year.

Section 26 (256L.06, subd. 3) requires the commissioner to forgive the past due premium for individuals who are disenrolled for nonpayment of premiums before issuing a premium invoice for the fourth month following disenrollment.

Section 27 (256L.07 subd. 1) modifies the period in which disenrollment begins for individuals whose income increases above the income eligibility limit to the last day of the calendar month in which the commissioner sends advance notice in accordance with federal regulations.

Section 28 (26L.11, subd. 7) increases the critical access dental payments for MinnesotaCare from 30 percent to 32.5 percent above the payment the provider would otherwise be paid, except for the critical access dental providers described in section 256B.76, subdivision 4, paragraph (b), in which the payment shall remain at 30 percent above the payment the provider would otherwise be paid.

Section 29 (256L.15, subd. 1) requires the commissioner to accept an individual’s attestation of the individual’s status as an American Indian as verification until the federal government approves an electronic data source that purpose.

Section 30 (Direction to the Commissioner; Notice) requires the Department of Human Services within 90 days of enactment to notify anyone who received medical assistance nonlong-term care services of the amendments to the estate recovery language in this bill.

Section 31 (Repealer.)

Paragraph (a) repeals obsolete language concerning the implementation of the rules governing the treatment of marital assets when a spouse is institutionalized effective June 1, 2016.

Paragraph (b) repeals sections 256L.04, subd. 2a (application for other benefits); 256L.04, subd. 8 (applicants potentially eligible for medical assistance); 256L.22, 256L.24; 256L.26; 256L.28 (Children’s Health program) effective the day following final enactment, effective the day following final enactment.

 Article 20 – Health Department

Section 1 (13.3805, subd. 5) classifies radon testing and mitigation data maintained by the Department of Health as private data on individuals or nonpublic data.

Section 2 (62D.04, subd. 1) specifies that a health maintenance organization (HMO) in their application for a certificate of authority must include arrangements for an ongoing evaluation of the quality of health care that includes a peer review process.

Section 3 (62D.08, subd. 3) requires HMOs to report to the Commissioner of Health data on the number of complaints received and the category of each complaint as defined by the commissioner.  Requires the commissioner to define the complaint categories to be used by each HMO by July 1, 2017, and requires the HMO to use the categories beginning in calendar year 2018.

Section 4 (62D.115) establishes an investigation process for quality of care complaints for HMOs.

Subdivision 1 defines what is included in quality of care complaints.

Subdivision 2 requires each HMO to develop and implement policies and procedures for the receipt, investigation, and resolution of quality of care complaints.

Subdivision 3 requires HMOs to submit to the commissioner the number of complaints and the category of complaint as defined by the commissioner as part of their annual report required under section 62D.08.

Subdivision 4 requires each HMO to maintain records of all quality of care complaints and their resolution and to retain those records for five years.  Specifies that the records provided to the commissioner are confidential data on individuals or protected nonpublic data as defined in section 13.02

Subdivision 5 specifies that this section does not apply to quality of care complaints received by a HMO from an enrollee covered under a public health care program.

Section 5 (62J.495, subd. 4) adds to the commissioner’s coordination efforts regarding health information technology: (1) providing financial and technical support to Minnesota health care providers to encourage implementation of admission, discharge and transfer alerts, care summary document exchange transactions and to evaluate the impact of health information technology on cost and quality of care; (2) providing educational resources and technical assistance to health care providers and patients related to privacy, security, and consent laws governing clinical health information; (3) assessing Minnesota’s legal, financial, and regulatory framework for health information exchange and making recommendations to strengthen the ability of health care providers to securely exchange data in compliance with patient preferences and in a way that is efficient and financially sustainable; and (4) seeking public input on patient impact and costs associated with requirements related to patient consent requirements for the release of health records as required under the Minnesota Health Records Act.

Section 6 (62J.496, subd. 1) permits funds in the electronic health record system revolving account to be used for activities describes in section 62J.495, subdivision 4.  Specifies that the commissioner shall not award new loans or loan guarantees from the account after July 1, 2016.

Section 7 (144.05, subd. 6) requires the Commissioner of Health to provide quarterly reports to the legislature on interagency agreements or service-level agreements and any renewals or extensions of existing interagency or service-level agreements with a state agency or MN.IT with a value of more than $100,000 and transfers of appropriations of more than $100,000 between accounts within and between agencies.

Section 8 (144.1912) requires the commissioner to award family medicine residency grants to existing, not-for-profit family medicine residency programs located outside the seven-county metropolitan area to support current and new residency positions.  The commissioner may fund a new residency position for up to three years.  Describes what the grant funds may be used for and requires the commissioner to collect the necessary information from the residency programs to implement and evaluate the program.

Section 9 (144.4961, subd. 3) clarifies the rulemaking authority of the commissioner for establishing licensure requirements and work standards relating to indoor radon in dwellings and other buildings.

Section 10 (144.4961, subd. 4) modifies the date in which radon mitigation systems installed must have a radon mitigation system tag provided by the commissioner from October 1, 2017, to January 1, 2018.

Section 11 (144.4961, subd. 5) modifies the effective date requiring licensure for persons performing laboratory analysis, or performs a service to mitigate radon in the indoor atmosphere, from October 1, 2017, to January 1, 2018.  Removes the licensure requirement for persons that sell devices that detect the presence of radon in the indoor atmosphere.

Section 12 (144.4961, subd. 6) specifies that licensure does not apply to employees of a firm or corporation that installs radon control systems in newly constructed Minnesota homes; a person authorized as a building official; or any person that distributes radon testing devices or information for general education purposes.

Section 13 (144.4961, subd. 8) modifies the fees for radon licenses.

Section 14 (144.4961, subd. 10) specifies that the Radon Licensing Act does not preclude local units of government from requiring additional permits or inspections for radon control systems and does not supersede local inspection or permit requirements.

Section 15 (144.4961, subd. 11) specifies that the radon licensure requirements do not apply to newly constructed Minnesota homes prior to issuance of a certificate of occupancy.

Section 16 (144A.75, subd. 5) removes from the definition of “hospice provider” the condition that a hospice patient must be terminally ill.

Section 17 (144A.75, subd. 6) expands the definition of “hospice patient” to include a person, 21 years of age or younger, who has been diagnosed with a chronic, complex, and life-threatening illness that contributes to a shortened life expectancy.

Section 18 (144A.75, subd. 8) modifies the definition of “hospice services” to allow currently existing hospice services to be provided to patients who fall under the newly expanded definition of “hospice patient.”

Section 19 (144A.75, subd. 13) modifies the definition of “residential hospice facility” by clarifying that a residential hospice facility must meet existing setting requirements concerning life safety, accessibility, and the care needs of hospice patients.

Section 20 (144A.75, subd. 13a) adds a definition for “respite care” to clarify that residential hospice facilities may provide respite services on an occasional basis to hospice patients and their caregivers, including to patients included under the newly expanded definition of “hospice patient.”

Section 21 (145.908) requires the commissioner to establish a grant program within the limits of federal funds available to provide culturally competent screening and treatment for pre- and postpartum mood and anxiety disorders in pregnant women and women who have given birth in the last 12 months.

Section 22 (149A.50, subd. 2) makes a change to requirements for funeral establishments to conform with changes made to section 149A.92, which governs preparation and embalming rooms.

Section 23 (149A.92, subd. 1) removes a requirement that all funeral establishments must, by July 1, 2017, contain a preparation and embalming room that complies with the standards in this section.  Instead, requires a room used by a funeral establishment for preparation and embalming to comply with the standards in this section, and allows a funeral establishment with branch locations to have one prep and embalming room that complies with the standards in this section for all locations.  Specifies a funeral establishment where no preparation and embalming is performed does not need to have an onsite prep and embalming room.

Section 24 (327.14, subd. 8) excludes from the definition of “recreational camping area” a privately owned area used for camping no more than once a year for no longer than seven consecutive days by members of a private club.  This would exclude this camping area from the regulations of chapter 327.

Section 25 makes a conforming change to the current effective date for licensure of radon firms and professionals and provisions requiring radon mitigation system tags. The new effective date is January 1, 2018.

Section 26 [Repealer] repeals section 149A.92, subdivision 11, effective the day following final enactment.

 Article 21 – Health-Related Occupational Licensing

Sections 1 to 9 and 28 create a licensure system for genetic counselors.

Section 1 (147F.01) defines the following terms:  ABGC, ABMG, ACGC, board, eligible status, genetic counseling, genetic counselor, licensed physician, NSGC, qualified supervisor, supervisee, and supervision.

Section 2 (147F.03) describes the scope of practice for the practice of genetic counseling by a licensed genetic counselor.

Section 3 (147F.05) prohibits unlicensed practice and establishes title protection.

Subdivision 1 prohibits an individual from using the title of genetic counselor, licensed genetic counselor, gene counselor, genetic consultant, genetic assistant, genetic associate or any words, letters, abbreviations, or insignia that indicates or implies that the individual is eligible for licensure as a genetic counselor unless the individual has been licensed under the chapter.

Subdivision 2 prohibits an individual from practicing genetic counseling unless the individual is licensed as a genetic counselor under this chapter, effective January 1, 2018.

Subdivision 3, paragraph (a) specifies that nothing in this chapter prohibits an individual who is duly licensed in this state to practice any profession or occupation or to perform any act that falls within the scope of practice of that occupation or profession.

Paragraph (b) specifies that a license is not required for individuals who are employed by the federal government or federal agency; students or interns currently enrolled in an accredited genetic counseling program or who have graduated within the past six months; a visiting certified genetic counselor working as a consultant, or are licensed to practice medicine under chapter 147.

Subdivision 4 states that any individual who violates this section is guilty of a misdemeanor and is subject to sanctions under section 214.11.

Section 4 (147F.07) requirements for licensure.

Subdivision 1 establishes the general requirements for licensure.

Subdivision 2 establishes the requirements for licensure by reciprocity.

Subdivision 3 authorizes the board to grant a license to an individual who does not meet the certification requirements in subdivision 1 but who has been employed as a genetic counselor for a minimum of ten years and provides to the board no later than February 1, 2017, the following documentation:  proof of a master’s degree of higher degree in genetics or related field from an accredited institution; proof that the individual has never failed a certification exam; three letters of recommendation; and documentation of the completion of 100 hours of approved continuing education within the past five years.  This subdivision expires February 1, 2017.

Subdivision 4 states that a license is valid for one year from the date of issuance.

Subdivision 5 establishes the requirements for license renewal.

Section 5 (147F.09) requires the board to take action on each application submitted and to provide written notice to the applicant of the action taken, the grounds for denying the license if the license was denied, and the applicant’s right to review  the board’s decision to deny the license.  Permits the board to investigate information provided by the applicant.  Permits an applicant whose license application was denied to make a written request to the board within 30 days of the notice, appear before the advisory council, and for the advisory council to review the board’s decision and make a recommendation to the board as to whether the denial should be affirmed.  Permits one request for review per licensure period.

Section 6 (147F.11) requires a licensed genetic counselor to complete a minimum of 25 hours of approved continuing educations units during a two-year period.  Permits the board to grant a variance to these continuing education requirements if the licensee can demonstrate to the satisfaction of the board that the licensee was unable to complete the required number of units during the period.  The board may extend the time period for completing the required number of units but may not allow the licensee to complete less than the required number.

Section 7 (147F.13) specifies that licensed genetic counselors and applicants are subject to the disciplinary actions and reporting requirements of sections 147.091 to 147.162.  (Board of Medical Practice)

Section 8 (147F.15) establishes the Licensed Genetic Counselor Advisory Council.

Section 9 (147F.17) establishes fees for the license application, initial licensure and annual renewal, and late fee.  Permits the board to prorate the initial license fee.  Specifies that the fees are nonrefundable and that all fees collected are to be deposited to the state government special revenue fund.

Sections 10 to 25 and 27 create a licensure system for orthotics, pedorthics, and prosthetics.

Section 10 (153B.10) permits chapter 153B to be cited as the Orthotics, Prosthetics, and Pedorthics Practice Act.

Section 11 (153B.15) defines the following terms:  advisory council; board; custom-fabricated device; licensed assistant; licensed orthotic fitter; licensed orthotist;  licensed pedorthists; licensed prosthetist; licensed prosthetist orthotist; NCOPE; orthosis; orthotics; over the counter; off the shelf; pedorthic device; pedorthics; prescription; prosthesis; prosthetics; resident; residency; supervisor.

Section 12 (153B.20) specifies the exceptions to this chapter.

Section 13 (153B.25) establishes an advisory council.

Section 14 (153B.30) establishes licensure requirements.

Subdivision 1 requires the licensure application to be submitted to the Board of Podiatric Medicine.

Subdivision 2 establishes licensure requirements for each of the following: orthotist, prosthetist, prosthetist orthotist, a pedorthist, an orthotic or prosthetic assistant, and an orthotic fitter.

Subdivision 3 states that the term of a license is for two years beginning on January 1 or beginning after initially fulfilling the license requirements and ending on December 31 of the following year.

Section 15 (153B.35) permits a licensed orthotist, pedorthist, assistant, or orthotic fitter to provide limited supervised patient care services beyond their scope of practice if (1) the licensee is employed by a patient care facility that is accredited by a national accrediting organization; (2) written objective criteria are documented by the facility that describes the knowledge and skill required by the licensee to demonstrate competency; and (3) the licensee provides patient care only at the direction of a supervisor who is licensed and employed by the facility; and (4) the supervised patient care occurs in compliance with facility accreditation standards.

Section 16 (153B.40) establishes the continuing education requirements.

Section 17 (153B.45) establishes licensure renewal requirements.

Section 18 (153B.50) requires a licensee to inform the board of a name or address change.

Section 19 (153B.55) permits a licensee to put the license on inactive status.

Section 20 (153B.60) permits a licensee whose license has expired while on active military duty or while in training or education preliminary to induction in the military to have the license renewed or restored without paying a late fee or license restoration fee.

Section 21 (153B.65) authorizes the board to license without examination and on payment of the required fee an applicant  who is certified  from an organization with educational, experiential, and testing standards that are equal to or higher than the licensing requirements in Minnesota.

Section 22 (153B.70) establishes grounds for disciplinary action.

Section 23 (153B.75) authorizes the board to investigate alleged violations, conduct hearings, and impose corrective or disciplinary action.

Section 24 (153B.80) Effective January 1, 2018a person is prohibited from practicing or representing oneself as an orthotist, prosthetist, prosthetist orthotist, pedorthist, assistant, or fitter without a license and is guilty of a misdemeanor.  Gives the board authority to seek a cease and desist order against any person engaged in unlicensed practice.

Section 25 (153B.85) establishes fees.

Section 26 (214.075, subd. 3) specifies that the fees received by the health-related licensing boards for the criminal background checks are to be deposited in dedicated accounts in the special revenue fund and are appropriated to the health-related licensing boards.

Section 27 requires the Board of Pediatric Medicine to make its first appointments to the Orthotics, Prosthetics, and Pedorthics Advisory Council by September 1, 2016, and shall convene the first meeting by November 1, 2016.

Section 28 requires the Board of Medical Practice to make its first appointments to the Licensed Genetic Counselor Advisory Council by December 1, 2016, and to hold the first meeting of the council by March 1, 2017.  Requires the council to elect a chair at the first meeting.

Article 22 – Human Services Forecast Adjustments

Article 23 – Health and Human Services Appropriations

Article 24 – Teachers

Section 1 [Duties of the Board of Teaching] makes technical and clarifying changes to standardize the statutory names of teacher licenses. Makes other grammatical corrections. Strikes duplicative language. Paragraph (n) requires the Board of Teaching to adopt rules to require at least one hour of suicide prevention best practices for renewal of an existing license.

Paragraph (d) permits the Board of Teaching to grant a one-year professional license, which the board may renew two times, to a qualified person to teach in a Montessori program operated by a district or charter school.

Paragraph (e) permits the Board of Teaching to grant a one-year waiver, renewable two times, to qualified individuals enrolled in an alternative preparation program leading to certification or licensure as a career and technical education instructor or teacher. Directs the board to strongly encourage Minnesota teacher preparation programs and institutions to develop alternative pathways for this purpose.

Makes paragraph (n) effective immediately and applicable for teachers renewing their licenses beginning August 1, 2017.

Makes paragraphs (d) and (e) effective for the 2016-2017 through the 2018-2019 school years.

Makes subdivision 4, paragraph (m), effective immediately and applies to teachers renewing their teaching licenses beginning August 1, 2017. Makes subdivision 10, paragraph (d), effective for the 2016-2017 through 2017-2018 school years.  Otherwise effective August 1, 2016.

Section 2 [Qualified teacher defined] strikes obsolete language defining highly qualified teacher under the federal No Child Left Behind Act.

Section 3 [Board to Issue Licenses] makes technical and clarifying changes to standardize the statutory names of teacher licenses. Makes other grammatical corrections. Strikes duplicative language.

Section 4 [Applicants Trained in Other States] makes technical and clarifying changes to standardize the statutory names of teacher licenses and the process for licensing applicants trained in other states. Makes other grammatical corrections.

Section 5 [Alternative Teacher Preparation Program and Preliminary Teacher License] makes technical and clarifying changes to standardize the statutory names of teacher licenses.

Section 6 [Development, evaluation, and peer coaching for continuing contract teachers].

Paragraph (b). For teachers generally, makes providing all enrolled students with improved and equitable access to effective and more diverse teachers a goal of the teacher development and evaluation process. Allows the annual teacher evaluation process to include mentoring and induction programs for teachers who are members of populations underrepresented among the licensed teachers in the school or district and who reflect the diversity of the enrolled students.

Makes this section effective for the 2016-2017 school year and later.

Section 7 [Development, evaluation, and peer coaching for continuing contract teachers].

Paragraph (b). For teachers in first class city school districts, makes providing all enrolled students with improved and equitable access to effective and more diverse teachers a goal of the teacher development and evaluation process. Allows the annual teacher evaluation process to include mentoring and induction programs for teachers who are members of populations underrepresented among the licensed teachers in the school or district and who reflect the diversity of the enrolled students.

Makes this section effective for the 2016-2017 school year and later.

Section 8 [Restructured pay system] strikes obsolete language.

Section 9 [Alternative teacher professional pay system].  As a condition of eligibility for Q-Comp funding, requires interested districts and schools to have a world’s best work force plan instead of an educational improvement plan.

Section 10 [Approval process] strikes a statutory cross reference to conform this Q-Comp section with the change in required plans under the preceding section in this article.

Section 11 [Report; Alternative Teacher Professional Pay System] conforms these sections to the repeal of section 122A.413, Educational Improvement Plan, and replaces this requirement with the WBWF reporting.

Section 12 [Supplemental agreements; alternative teacher pay] strikes a statutory cross reference to conform this Q-Comp section with the change in required plans under the two preceding sections in this article.

Section 13 [Basic alternative teacher compensation aid] increases the aid entitlement for fiscal year 2016 to allow additional schools to participate.

Makes this section effective immediately.

Section 14 [Alternative teacher compensation revenue for Perpich Center for Arts Education and multidistrict integration collaboratives] strikes a statutory cross reference to conform this Q-Comp section with the change in required plans under the three preceding sections in this article.

Section 15 [General control of schools]. Paragraph (a) grants the teacher of record the general control and government of the school and classroom.

Paragraph (b) allows a teacher to remove students from class for violent or disruptive conduct, consistent with a school board’s district-wide school discipline policy.

Makes this section effective for the 2016-2017 school year and later.

Section 16 [Staff development report] strikes language requiring school districts and school sites to write and submit a staff development activity and expenditure report to the education commissioner.  Instead requires school districts and school sites to include the staff development report in the district’s world’s best work force report. Strikes language requiring the commissioner to submit annual staff development data to the legislature.

Section 17 [Establishment] allows the commissioner to award additional joint grants to postsecondary institutions and school districts to prepare American Indian teachers if additional funds are available.

Section 18 [Center functions] strikes an obsolete reference to highly qualified teacher under the federal No Child Left Behind Act.

Section 19 [Achievement and integration for Minnesota].

Subd. 1. Program to close the academic achievement and opportunity gap; revenue uses. Paragraph (c) directs districts receiving achievement and integration revenue to use the revenue for: integrated learning environments that give students improved and equitable access to effective and more diverse teachers, among other outcomes; for improved and equitable access to effective and diverse teachers, among other outcomes; and rigorous career and college readiness programs and effective and more diverse instructors for underserved student populations, among other purposes.

Paragraph (d) allows eligible districts to adopt policies to increase the diversity of district teachers and administrators using achievement and integration revenue.

Subd. 2. Plan implementation; components. Includes among the components of a long-term achievement and integration plan: professional development opportunities for teachers and administrators who are members of populations underrepresented among licensed teachers or administrators in the district or school and who reflect the diversity of the enrolled students; and increased programmatic opportunities and effective and more diverse instructors focused on rigor and career and college readiness for underserved students.  Requires the long-term plan to contain goals for reducing the disparities in equitable access to effective and more diverse teachers and increasing racial and economic diversity and integration in schools and districts, among other goals.

Subd. 3. Public engagement; progress report and budget process. Requires participating school boards to hold at least one annual hearing to publicly report on progress in improving students’ equitable access to effective and more diverse teachers and in realizing racial and economic diversity and integration in schools and districts, among other measures.

Subd. 5. Evaluation. Directs the education commissioner to evaluate the efficacy of district plans in reducing disparities in academic performance among specified categories of students, in improving students’ equitable access to effective and diverse teachers and in realizing racial and economic diversity and integration.

Makes this section effective for the 2016-2017 school year and later.

Section 20 [Survey of districts] directs the education commissioner, when surveying the state’s school districts and teacher preparation programs, to submit a biennial report to the legislature on students’ access to effective and more diverse teachers who reflect the diversity of district students.

Section 21 [Career and technical education certification and licensure].  Paragraph (a) directs the MnSCU Board of Trustees to provide an alternative preparation program allowing individuals to be certified as a career and technical education instructor. Allows the board of trustees to locate the first such program in the seven-county metropolitan area.

Paragraph (b) directs the MnSCU Board of Trustees, in consultation with the board of Teaching, to develop an alternative preparation program to certify and license career and technical education instructors and teachers.

Makes this section effective for the 2016-2017 academic year.

Section 22 [Staff development grants for intermediate school districts and other cooperative units].  For fiscal years 2017, 2018, and 2019 only, provides staff development grants to intermediate school districts and other cooperatives equal to $1,000 times the full-time equivalent number of licensed instructional staff and nonlicensed classroom aides employed by the intermediate or other cooperative in the previous year.  Requires the staff development grants to be used for at least: (1) proactive behavior management; (2) personal safety training; (3) de-escalation techniques; and (4) adapting curriculum and pedagogy for students with complex learning and behavioral needs.  Requires the commissioner to pro-rate the grants if available funding is insufficient.

Makes this section effective for fiscal year 2017 and later.

Section 23 [Career and Technical Educator Licensing Advisory Task Force] provides for the creation, membership, duties, reporting requirements, and other administrative provisions of a career and technical educator licensing advisory task force.

Makes this section effective immediately.

Section 24 [Legislative study group on educator licensure]. Paragraph  (a) establishes a 12-member legislative study group to review the 2016 OLA report on teacher licensing and to report to the legislature by February 1, 2017, on recommendations for restructuring Minnesota’ teacher licensure.

Paragraph (b) includes six currently serving house members, including the chair of the house Education Innovation Policy Committee, three appointed by the house speaker and three appointed by the house minority leader, and six currently serving senate members, including the chair of the senate education committee, three appointed by the senate majority leader and three appointed by the senate minority leader, as study group members.

Paragraph (c) requires appointments to be made by June 1, 2016, and causes the appointments to expire on February 2, 2017.  Requires the leader of the caucus in the affected body to which a vacating study group member belonged to fill any vacancy that occurs. Directs the chair of the House education innovation policy committee to convene the first meeting. Requires the study group to meet periodically. Directs the Legislative Coordinating Commission to provide technical and administrative assistance upon request.

Paragraph (d) directs the study group to consult with the Board of Teaching, the education department, the Board of School Administrators, and other interested and affected stakeholders.

Paragraph (e) causes the study group to expire on February 2, 2017, unless extended by law. Makes this section immediately effective.

Article 25 – Education Excellence

Section 1 [School crisis response teams] requires the commissioner of education to collect, maintain and make available to school districts contact information for school crisis response teams. Requires the commissioner of education to work cooperatively with the Minnesota School Safety Center to help develop school crisis response teams in regions of the state where an existing crisis response team has not yet been formed.

Section 2 [Conduct of school on certain holidays]. Paragraph (b) allows districts to honor Constitution Day and Citizenship Day by providing opportunities for students to learn about American government, law, history, and geography by, among other activities, taking the same test that applicants for naturalization do.

Section 3 [Required knowledge and understanding of civics]. Paragraph (a) defines “civics test” to mean 50 of the 100 questions U.S. Citizenship and Immigration Services officers use to select the questions they pose to applicants for naturalization. Directs the Learning Law and Democracy Foundation, in consultation with civics teachers, to select by July 1 of each year the 50 civics test questions and to transmit the questions to the department and the Legislative Coordinating Commission, which must post the questions by August 1.

Paragraph (b) requires public school students to correctly answer at least 30 of the 50 civics test questions. Allows school districts and schools to record on the student’s transcript whether the student correctly answered at least 30 civics test questions. Allows school districts and schools to exempt students with disabilities from this requirement if the student’s individualized education program team determines the requirement is inappropriate and establishes an alternative requirement. Allows a school district or school to administer the civics test in a language other than English.

Paragraph (c) allows school districts to administer the civics test as part of the social studies curriculum.  Prohibits a district from preventing a student from graduating or denying a student a high school diploma for failing to correctly answer at least 30 of 50 civics test questions.

Paragraph (d) prohibits the commissioner, school districts, and schools from charging students any fees related to this test.

Makes this section effective for students enrolling in grade 9 in the 2017-2018 school year and later.

Section 4 [Required academic standards].  Paragraph (a) includes the content of the civics test in the statewide social studies standards.

Paragraph (c) directs the education department to adopt, review, and revise nationally recognized prekindergarten through grade 12 physical education standards and benchmarks as Minnesota’s required physical education academic standards. Allows the department to modify and adapt the standards and benchmarks to accommodate state interests.  Directs the department to post samples of existing assessments for school districts to use as an alternative to local assessments to assess students’ mastery of the physical education standards.

Makes paragraph (c) effective beginning in the 2020-2021 school year.

Section 5 [Rulemaking] directs the education commissioner to adopt statewide rules for implementing physical education standards.

Section 6 [Revisions and reviews required]. Paragraph (g) directs the education commissioner to implement a review of physical education standards and related benchmarks beginning in the 2022-2023 school year and every ten years thereafter.

Section 7 [Physical Education; exclusion from class; recess] allows a student to be excused from a physical education class: (1) if the student submits information signed by a physician that physical activity will jeopardize the student’s health; (2) if being excused meets the child’s unique and individualized needs according to their individualized education program, 504 plan, or individualized health plan; or (3) if the parent or guardian requests an exemption on religious grounds.  Strongly encourages school not to exclude students from recess due to punishment or disciplinary action.

Section 8 [Performance measures] strikes student performance on the National Assessment of Educational Progress (NAEP) as a world’s best work force measure of district and school progress.

Section 9 [Adopting plans and budgets] requires a world’s best work force plan to include a process to: assess and identify students to participate in gifted and talented programs and accelerate their instruction, and to adopt early admission procedures under Minnesota’s gifted and talented program; and examine the equitable distribution of teachers and strategies to ensure low-income and minority children are not taught by inexperienced, ineffective, or out-of- field teachers.

Section 10 [District advisory committee]. Consistent with school performance reports and the world’s best work force, directs local school boards to examine the equitable distribution of effective, experienced, and in-field teachers.

Makes this section effective for the 2016-2017 school year and later.

Section 11 [Site team] requires a school’s site team under the world’s best workforce law to include an equal number of teachers and administrators and at least one parent.  Makes the site team responsible for creating an instruction and curriculum improvement plan.

Section 12 [Report] requires a school board to report on its efforts to equitably distribute diverse, effective, experienced, and infield teachers.

Section 13 [Identification; Report]. Paragraph (a) directs school districts to summarize their efforts to screen and identify students with dyslexia or convergence insufficiency disorder.

Paragraph (b) requires districts to provide alternative instruction to students identified under paragraph (a).

Section 14 [Gifted and talented students program] requires school districts to adopt guidelines and procedures for students, including early learners, to participate in Minnesota’s gifted and talented program, consistent with the district’s world’s best work force plan for assessing and evaluating student progress.

Section 15 [Character development education].

Subd. 1. Character development education. Paragraph (b) allows character development education to include a voluntary elementary, middle, and high school program that incorporates the history and values of Congressional Medal of Honor recipients.

Subd. 1a. Staff development; continuing education. Allows staff development opportunities under section 122A.60 to include training in character development education that incorporates the history and values of Congressional Medal of Honor recipients.  Encourages local continuing education and relicensure committees to approve up to six clock hours of continuing education for licensed teacher who complete the character development education training.

Subd. 2. Funding sources. Allows districts to accept programs funded through the Congressional Medal of Honor foundation.

Makes the section effective immediately.

Section 16 [Statewide testing]. Paragraph (e) directs districts to pay one time for a student in grade 11 or 12 to take the ACT or SAT to the extent state funding is available.

Paragraph (m) directs the commissioner, in consultation with the Minnesota State Colleges and Universities (MnSCU) chancellor, to establish empirically derived benchmarks on the high school tests that reveal a trajectory toward career and college readiness.

Makes this section effective for the 2016-2017 school year.

Section 17 [Department of Education assistance] requires a proposal for the statewide testing system to include disclosures containing comprehensive information regarding test administration monitoring practices and data privacy safeguards for student information to be transmitted to or used by the bidder.

Section 18 [Database] requires the commissioner to establish a reporting system for teachers, administrators, and students to report service disruptions and technical interruptions.

Section 19 [Limits on local testing]. Paragraph (c) requires districts and charter schools each year before the start of school to post on the official Web site a testing calendar for the year, and indicate the reason for each test and whether it is a local option or required by state or federal law.

Makes this section effective for the 2016-2017 school year and later.

Section 20 [School district assessment committee].  Paragraph (a) requires a school district without a collectively bargained agreement about selecting assessments to establish a committee to advise the school board on administering tests in addition to those required under state and federal law unless the district has a world’s best workforce advisory committee to serve this purpose.

Requires a district’s assessment committee to include an equal number of teachers and administrators and at least one parent.

Makes this section effective for the 2016-2017 school year and later.

Section 21 [Student performance data] directs the education commissioner to use student categories under the federal Elementary and Secondary Education Act and other student categories when organizing and reporting demographic data on students to policy makers.

Makes this section effective for the 2017-2018 school year and later.

Section 22 [Student participation] directs the commissioner to make a prescribed form available for parents to complete if they refuse to have their children participate in testing.

Makes this section effective for the 2016-2017 school year and later.

Section 23 [Access to Information] directs a school district to provide teachers with the same information parents are provided about their student’s current and longitudinal performance and progress on the state academic standards as measured by state assessments.

Section 24 [Retaliation prohibited] protects from retaliation an employee who discloses information about difficulties in administering tests.

Makes this section effective for the 2016-2017 school year and later.

Section 25 [Student academic achievement and growth].

Subd. 1.  Student indicators of growth.  Strikes obsolete references to the No Child Left Behind Act and substitutes a reference to federal expectations.

Subd. 2.  Federal expectations for student academic achievement.  Paragraph (a) strikes an obsolete reference to adequate yearly progress under the No Child Left Behind Act.

Paragraph (d) directs the education commissioner to post aggregated and disaggregated student growth, learning, and outcome data.

Subd. 3.  State growth target; other state measures.  Strikes obsolete references to student categories identified under the No Child Left Behind Act and substitutes references to student categories identified under the federal Elementary and Secondary Education Act.  Adds student categories based on race, ethnicity, refugee status, language proficiency, disabilities, poverty, immigrant, and homeless status, and enrollment in foster care for purposes of state accountability reports on course completion, rigorous course taking, and student engagement and connection. 

Requires the commissioner to include data on all enrolled pupils who are or were counted as English learners.

Subd. 4. Improving schools. Strikes an obsolete reference to student growth measures and substitutes a reference to high performing schools identified under federal education law.

Makes the section effective for the 2017-2018 school year and later.

Section 26 [School accountability] strikes adequate yearly progress and student performance references made obsolete by the reauthorized federal Elementary and Secondary Education Act and substitutes references to federal expectations.  Defines department data on the world’s best workforce and state learning and outcome data as nonpublic data until the department publicly releases the data.  Requires the education commissioner to report: the academic progress of all enrolled public school pupils who are or were counted as English learners; the foster care status of all enrolled public school students who are or were in foster care; and the total number of students by grade who correctly answered at least 30 of 50 civics test questions, among other reporting requirements.

Makes this section effective for the 2016-2017 school year except the requirement to report civics test data is effective for the 2018-2019 school year and later.

Section 27 [District surveys to collect student information; parent notice and opportunity for opting out] requires districts and charter schools to notify students and parents about student surveys, to inform parents when surveys are administered, and to allow parents to review the survey and opt their student out of participating. Prohibits districts and schools from imposing a penalty on a student who opts out of participating in a survey.

Makes this section effective for the 2016-2017 school year.

Section 28 [Report to commissioner of education].

Subd. 1. Exclusions and expulsions; physical assaults.  Directs school boards to submit an electronic report to the education commissioner on incidents involving a student’s physical assault of a teacher and to include information on the district’s response to the assault.

Subd. 2. Report. Paragraph (a) requires school boards to include state student identification numbers on affected students when submitting disciplinary reports on students’ physical assault of a teacher, among other information.

Paragraph (b) directs the education commissioner to aggregate data reported under paragraph (a) and to include the aggregated data in the annual school performance reports.

Makes this section effective for the 2016-2017 school year and later.

Section 29 [Policy Components] requires a school district’s removal from class policy to state that students must be immediately removed from class if they engage in assault or violent behavior. Directs the principal to determine the appropriate removal period in consultation with the classroom teacher.

Section 30 [Notification; teachers’ legitimate educational interest]. Paragraph (a) establishes a teacher’s legitimate educational interest in knowing which students placed in the teacher’s classroom have a history of violent behavior, including any documented physical assault of a district employee by the student.

Paragraph (b) directs representatives of a school board and the exclusive representative of the teachers to discuss policies for notifying teachers and other district employees about students with a history of violent behavior, including any documented physical assault of a district employee by the student.

Makes this section effective for the 2016-2017 school year and later.

Section 31 [Teacher-governed schools; grants] establishes a grant program to encourage licensed teachers at a school site to explore and develop teacher-governed schools.  Allows the commissioner to award planning and start-up grants on a first-come first-served basis.  Requires grant recipients to submit to the commissioner recommended best practices based on their experience.

Section 32 [Lotteries] allows children of district staff to receive priority in the open enrollment lottery.

Makes this section effective immediately and applicable to nonresident students whose applications have not yet been accepted or rejected.

Section 33 [Application and reporting requirements] integrates the school readiness biennial plan into the World’s Best Work Force plan.

Makes this section effective July 1, 2016.

Section 34 [Full-service community school program] increases the annual award amount a school site may receive from $100,000 to $150,000. Requires a site deciding not to use planning funds to submit their plan with the application.

Section 35 [English learner data] requires English learner data to include all pupils who are currently or were previously counted as an English learner and the data to be disaggregated by currently counted and previously counted English learners.

Makes the section effective for the 2017-2018 school year and later.

Section 36 [Participating school; American Indian school] corrects a title reference under federal law.

Section 37 Prekindergarten through grade 12 parental rights coded elsewhere].

Subd. 1. Scope.  Indicates the sections referred to in subdivisions 2 to 30 of this section are codified elsewhere in Minnesota’s education code and govern parent rights on topics related to prekindergarten through grade 12 education.

Subds. 2 to 30.  List statutory provisions contained in Minnesota’s education code establishing parent rights related to their students’ kindergarten through grade 12 education.

Section 38 [Requirement]. Paragraph (c) requires a student identified as being unable to read at grade level to receive alternative instruction.

Section 39 [Implementation of Elementary and Secondary Education Act] strikes obsolete language related to the federal No Child Left Behind Act.  Substitutes a reference to the federal Elementary and Secondary Education Act.

Section 40 [Governance]. Paragraph (b) requires Perpich Center for Arts Education board members to complete board training.

Makes this section effective immediately.

Section 41 [ACT college ready score; MCA career and college-ready benchmarks] prohibits a state college or university from requiring an individual to take remedial noncredit courses if the individual received a college ready ACT score or met a career and college-ready MCA benchmark within the last five years.  Recognizes only qualifying ACT and SAT scores and MCA benchmarks met within the previous five years for purposes of this section. Requires MnSCU institutions to post notice of the exemption from remedial course taking on its Web page explaining student course placement requirements.

Makes this section effective for the 2016-2017 school year and later.

Section 42 [Minnesota Comprehensive Assessments; career and college-ready benchmarks; remedial education]. Paragraph (a) precludes a state college or university from requiring an individual to take a remedial, noncredit course if the individual met a career and college-ready MCA benchmark in that subject area.

Paragraph (b) directs the commissioner to notify students and families that students who meet a career and college-ready MCA benchmark are not required to take a remedial course at a MnSCU institution.

Makes this section effective in the 2016-2017 or the 2017-2018 school year and later, depending on when the MnSCU chancellor approves the MCA benchmarks.

Section 43 [Teacher shortage loan forgiveness] increases the teacher loan forgiveness program appropriation in fiscal year 2017 to 2,200,000. Makes $200,000 the base appropriation for the program in fiscal year 2018 and later.

Causes unexpended fiscal year 2017 funds to remain available until June 30, 2019.

Section 44 [Alternative compensation] updates alternative teacher compensation aid amounts.

Section 45 [Achievement and integration aid] updates achievement and integration aid.

Section 46 [Reading Corps; appropriation] increases the appropriation for the Minnesota Reading Corps to $7,125,000 in fiscal year 2017 and makes the appropriation available through June 30, 2019.  Makes the base appropriation for fiscal year 2018 and later $5,625,000.

Section 47 [Collaborative Urban Educator; appropriations]. See fiscal tracking sheets.

Section 48 [Museums and Education Centers; appropriations].  See fiscal tracking sheets.

Section 49 [Full-service community schools; appropriations].  See fiscal tracking sheets.

Section 50 [American Indian teacher preparation grants; appropriations].  See fiscal tracking sheets.

Section 51 [Race 2 Reduce; appropriations].  See fiscal tracking sheets.

Section 52 [Education partnership pilots; appropriations]. See fiscal tracking sheets.

Section 53 [Northside Achievement Zone; appropriations].  See fiscal tracking sheets.

Section 54 [St. Paul Promise Neighborhood; appropriations].  See fiscal tracking sheets.

Section 55 [Agricultural educator grants] establishes a grant program to pay agricultural education teachers for work over the summer with high school students on extended projects.

Section 56 [Support our students grant program].

Subd. 1. Definitions. Defines “student support services personnel” and “new position.”

Subd. 2. Purpose. Declares that the purpose of the grant program is to address shortages of student support services personnel; decrease caseloads for existing student support services personnel; ensure that students receive effective academic guidance; ensure that student support services personnel serve within the scope and practice of their training and licensure; fully integrate learning supports, instruction, and school management; and improve school safety and school climate.

Subd. 3. Grant eligibility and application. Allows a school district, charter school, intermediate school district, or other cooperative unit to apply for a six-year matching grant.

Subd. 4. Allowed uses; match requirements. Requires the grant to be used to hire a new position.  Requires a local match for each year of the grant.

Subd. 5. Report required. Requires a grant recipient to submit a report indicating how the new positions affected two or more of the following measures: school climate; attendance rates; academic achievement; career and college readiness; and postsecondary completion rates.

Section 57 [Student Discipline Working Group] establishes a student discipline working group to review the Pupil Fair Dismissal Act and related student discipline provisions.  Requires the working group to submit a report to the legislature with recommendations on improving disciplinary policies, practices, and procedures.

Makes this section effective immediately.

Section 58 [Northwest regional partnership concurrent enrollment education program] creates a continuing education program for concurrent enrollment teachers in Northwestern Minnesota.  Requires the Lakes Country Service Cooperative, the Northwest Service Cooperative, and Minnesota State University-Moorhead to provide the program jointly.

Requires MSU-Moorhead to develop an online curriculum to allow teachers to attain graduate credits at reduced credit rates. Grants priority in the program to teachers employed by a district that is a member of either of the two Service Cooperatives.  Requires the partnership to submit an annual progress report to the legislature, commissioner of education, and the MnSCU Board of Trustees.

Makes this section effective July 1, 2016.

Section 59 [Appropriation; student teachers in shortage areas; grants] appropriates $1,000,000 in fiscal year 2017 from the general fund to the commissioner of the Office of Higher Education for grants to student teachers in shortage areas. Makes this appropriation available until June 30, 2019.

Section 60 [MCA College-Ready Benchmarks’ MNSCU participation] requires the MNSCU chancellor to approve or reject high school MCA benchmarks.

Section 61 [Certification incentive revenue] requires the education commissioner to consult with the governor’s workforce development council and the P-20 education partnership to compile a list of qualifying career and technical certificates.  Provides funding to school districts equal to $500 times the number of students in the district who earn one or more career and technical certificates.

Caps the statewide revenue amount at $1,000,000 and authorizes the education commissioner to spread the funding out over the next three fiscal years.

Requires the commissioner to report to the legislature on the program by February 1, 2017, and again on February 1, 2018.

Makes this section effective immediately.

Section 62 [Appropriations].  See fiscal tracking sheets.

Section 63 [Repealer]. Paragraph (a) repeals sections 122A.413, subdivision 3 (Educational Improvement Plan); and 122A.43, subdivision 6 (Short-Limited Contracts Optional Report).

Paragraph (b) repeals section 122A.413, subdivisions 1 and 2 (Educational Improvement Plan).

Article 26 – Charter School Technical and Grammatical Changes

This article makes technical and grammatical corrections to the charter schools statutes.

Article 27 – General Education

Section 1 [Length of school year; hours of instruction] requires that the school calendar for prekindergarten, if offered by the district, must include at least 350 hours of instruction for the school year.

Effective date: makes this section effective for the 2016-2017 school year and later.

Section 2 [Cooperative unit defined] explicitly adds special education cooperatives to the types of joint governance units that are considered “cooperative units” for purposes of the school code.

Section 3 [Federal child and adult care food program] authorizes a multisite sponsoring organization to demonstrate its financial viability to the Minnesota Department of Education (MDE) through a letter from a CPA.  Requires MDE to post child and adult care food program information on its Web site.  Requires the commissioner of education to perform an expedited review of any multisite sponsoring organization’s application if that application was submitted after July 1, 2015, and the application’s denial was based in part on the multisite sponsoring organization’s financial viability.

Section 4 [Program reimbursement] provides that the state reimburses a district $1.30 for each school breakfast served to a prekindergarten pupil.

Effective date: makes this section effective for revenue in fiscal year 2017 and later.

Section 5 [No fees] prohibits a district from charging a fee for a school breakfast served to a prekindergarten pupil.

Makes this section effective for revenue in fiscal year 2017 and later.

Section 6 [Voluntary prekindergarten program].

Subd. 1. Establishment; purpose. Authorizes a school district, charter school, or combination thereof to operate a voluntary prekindergarten program for four-year-old pupils. Clarifies that the purpose of a prekindergarten program is to prepare students for kindergarten entry.

Subd. 2. Program requirements. Requires that a program under this section meet certain program characteristics related to instruction, assessment, class size, teacher compensation, teacher qualifications, community involvement and coordination, parent engagement, and professional development, among other requirements. Requires districts and charter schools to include prekindergarten elements in the world’s best workforce report.

Subd. 3. Mixed delivery of services. Authorizes a district or charter school to contract with a charter school, Head Start or child care center, licensed family child care programs, or community-based organization to provide the prekindergarten program.

Subd. 4. Eligibility. Provides that a child is eligible to participate if they are at least four years-old on September 1 and complete all required screenings within 90 days of enrollment.

Subd. 5. Application process; priority for high poverty schools. Provides for application and notification deadlines. Requires certain information related to the proposed program and estimated participation in the application materials. Requires the commissioner to proportionally allocate the funds available among four groups of applicants: (1) Minneapolis and Saint Paul, (2) metro-region school districts, (3) rural region school districts, and (4) charter schools. Requires that, within each of the four applicant groups, priority be given to applicants based on (1) the concentration of kindergarten students who qualify for free or reduced price lunch, and (2) the availability of three- or four-star Parent Aware rated programs within or near the district. Provides that an approved applicant shall remain approved, regardless of later changes in the concentration of students eligible for free- or reduced-price lunch.

Subd. 6. Program and revenue limits. Limits the number of prekindergarten pupil units for a district to no more than 60 percent of that district’s kindergarten pupil units. Limit the statewide aid entitlement for the prekindergarten program to

$27,092,000 for fiscal year 2017, $27,239,000 in fiscal year 2018, and $26,399,000 for fiscal year 2019 and later.

Makes this section effective for revenue in fiscal year 2017 and later.

Section 7 [English learner] provides that a prekindergarten pupil may meet the definition of “English learner” for the purposes of English learner programming and aid.

Effective date: makes this section effective for revenue in fiscal year 2017 and later.

Section 8 [Eligible pupils]. For the 2016-2017 school year only, allows an English learner with an interrupted formal education, who is 21, but not yet 22, to participate in the graduation incentives program and in concurrent enrollment course.

Section 9 [Pupil unit] provides that the pupil units for a prekindergarten pupil, except a pupil with a disability or assessed for a disability, equals the greater of 0.6 or the ratio of the number of hours of instruction to 850.

Effective date: makes this section effective for revenue in fiscal year 2017 and later.

Section 10 [Compensation revenue pupil units] clarifies the calculation of compensation revenue pupil units for prekindergarten programs in the first year of operation.

Effective date: makes this section effective for revenue in fiscal year 2017 and later.

Section 11 [Declining enrollment revenue] excludes prekindergarten pupil units from the calculation of declining enrollment revenue for fiscal years 2017 to 2019.

Section 12 [Operating capital levy] changes the operating capital equalizing factor for fiscal year 2017 and later to offset increased levies associated with other provisions in this bill. Strikes other obsolete language.

Makes this section effective for revenue in fiscal year 2017 and later.

Section 13 [Equity revenue] extends equity revenue bump to all school districts in the state (this increase is currently available only to school districts with their administrative offices located in the metro area). Sets the bump at 16 percent for fiscal years 2017, 2018, and 2019 and 25 percent for fiscal years 2020 and later.

Section 14 [Duties; powers; school trust lands director] authorizes the school trust lands director to enter into joint powers agreements, evaluate and initiate real estate development projects on school trust lands, and serve as temporary trustee in cases of eminent domain.

Section 15 [Statewide average revenue] grants MDE another two months to prepare the annual report that measures the disparity in adjusted general revenue among school districts by changing the date the report must be prepared from October 1 to December 1 (this delay allows the MDE to use more current data).  Delays the date for the commissioner of education to make recommendations based on the results of the report from January 15 to February 1. Clarifies that the definition of adjusted general revenue includes local optional revenue.

Section 16 [Compensatory revenue; intermediate district] clarifies the calculation of compensatory revenue for the newly formed intermediate district.

Section 17 [Appropriation; general education aid] adjusts general education aid for forecast changes, increases the appropriation for the added equity aid, and adds funding for the Glenville- Emmons referendum adjustment.

Section 18 [Appropriations; school lunch] increases school lunch aid for voluntary prekindergarten pupils.

Section 19 [Appropriations; school breakfast] increases school breakfast aid for voluntary prekindergarten pupils.

Section 20 [Voluntary boundary alignment; Moorhead and Dilworth-Glyndon-Felton school districts].

Subd. 1. Boundary realignment allowed. Specifically authorizes the school boards of Independent School District Nos. 152, Moorhead, and 2164, Dilworth- Glyndon-Felton (DGF) to align their shared district border.

Subd. 2.  Plan to establish new boundaries.  Allows the Moorhead and DGF school boards to jointly adopt a written plan to realign their school district boundaries. Requires the plan to identify each group of parcels that will be transferred between the districts and specifies the method for transferring the blocks of parcels between the districts.  Requires the plan to be filed with both the county auditor and the commissioner of education.  Requires the districts to publish the plan in enough detail to describe each of the blocks of parcels to be transferred. Requires the same notice to be mailed to each property owner affected by the border realignment.

Subd. 3.  Bonded debt.  Requires each parcel to pay the property taxes, including the facilities levies, of the district to which the parcel is attached for that year.

Subd. 4.  County auditor notified.  Requires the districts to annually notify the county auditor of any movement of parcels during that year in the form and manner specified by the county auditor. Requires the county auditor to notify affected parcel owners of the boundary change in the year that the change occurs.

Subd. 5. Report to Department of Education.  Requires the school boards to file a copy of the plan with MDE. Requires the districts to report any other information necessary for MDE to calculate school aids and levies for the two school districts.

Makes this section effective upon the parties meeting the requirements of a local approval clause, meaning the school boards will need to approve the law and file the appropriate certified documents with the secretary of state before the act is effective.

Section 21 [Glenville-Emmons school district] corrects a mistaken date on the ballot authorizing the Glenville-Emmons school district operating referendum (the ballot stated the referendum was first effective for taxes payable in 2017 instead of fiscal year 2017).

Section 22 [Equity revenue in fiscal year 2017] makes the equity revenue increase authorized in section 13 payable entirely in state aid for fiscal year 2017 only

Article 28 – Charter Schools

Section 1 [Eligible authorizers] removes the requirement that charitable organizations serving as a charter school authorizer must be members of the Minnesota Council of Nonprofits or the Minnesota Council on Foundations.

Section 2 [Application content] requires a prospective charter school authorizer to include in its application certain information about the capacity of the organization to serve as an authorizer.

Effective date: makes this section effective January 1, 2017.

Section 3 [Review by commissioner].  Paragraph (a) directs the education commissioner to review an authorizer’s performance every five years, subject to paragraphs (b) and (c).

Paragraphs (b) and (c) require the commissioner to use appropriate criteria, developed in consultation with stakeholders, to review the authorizer’s performance. Require the education commissioner to minimize duplicative reporting to the extent practicable.  Direct the commissioner, when reviewing an authorizer’s performance, not to (1) fail to credit, (2) withhold points, or (3) otherwise penalize an authorizer for failing to charter additional schools or for the absence of complaints against the authorizer’s chartered schools.

Makes this section effective immediately.

Section 4 [Withdrawal] clarifies that, if the governing board of an approved authorizer votes to withdraw for a reason unrelated to any cause under section 124E.10, subdivision 4, the same process applies to the change of authorizer as in the case where an authorizer and the charter school board of directors mutually agree not to renew the contract.

Section 5 [Contents]. Paragraph (a) provides for a pre-operational planning period instead of a pre-operational planning year.

Paragraph (b) directs charter schools to design their programs to meet the world’s best work force goals.

Section 6 [Mutual nonrenewal] allows a change in charter school authorizers if the governing board of an approved authorizer votes to withdraw as an authorizer for a reason unrelated to the statutory causes for not renewing or terminating a charter school contract.  When pursuing a change in authorizers under this subdivision, requires the authorizer that is the party to the charter contract to inform the proposed authorizer about unmet contract outcomes, among other required information.

Section 7 [Annual public reports].  Paragraph (b) requires an authorizer to submit an annual public report to the education commissioner by January 15 for the previous school year ending June 30 that includes at least key indicators of school academic, operational, and financial performance.

Section 8 [Cash flow adjustment; charter schools] removes the 200 maximum pupil limitation on an eligible special education charter school that requests an accelerated cash flow schedule.

Section 9 [Effective date] allows prekindergarten deaf and hard-of-hearing pupils to enroll in a charter school beginning in the 2016-2017 school year and deletes a previously enacted condition allowing such enrollment only if the commissioner determined no added cost would be attributable to the pupil.

Makes this section effective immediately.

Section 10 [Charter school building lease aid] updates charter school building lease aid amounts for additional prekindergarten pupils.

Article 29 – Special Education

Section 1 [Planning for students’ successful transition to postsecondary education and employment; personal learning plans]. Paragraph (e) indicates that if the individualized education program or standardized written plan of a student with disabilities meets the components of a plan required in this section, no additional transition plan is needed.

Section 2 [Qualified interpreters] strikes a reference to the resource center and substitutes and makes a technical correction to a reference to the state specialist for deaf and hard-of-hearing.

Section 3 [Eligibility] changes a reference from an individual interagency intervention plan to a standardized written plan.

Section 4 [Individualized education programs]. Paragraph (b) clarifies requirements when a district makes a determination of other health disability.  Indicates that if the individualized education program of a student with disabilities meets the components of a personal learning plan, no additional transition plan is needed.

Section 5 [Student information systems; transferring records]. Paragraph (a) directs districts, beginning July 1, 2018, to contract for a student information system that is Schools Interoperability Framework compliant.

Paragraph (b) requires the commissioner of education to certify that MDE’s online case management system is compatible with vendor information systems before requiring a district to use an online case management reporting system.

Paragraph (c) requires the commissioner to specify whether a compatible compliant system exists and to list vendor systems that meet compatibility criteria.

Makes this section effective immediately.

Section 6 [Facilitated team meeting] makes a technical change to refer to a multiagency team.

Section 7 [Physical holding or seclusion]. Paragraph (a) requires a school, before secluding a student, to review and document in the student’s individualized education program whether the student has any known medical or psychological conditions that might recommend against seclusion.  Strikes obsolete language.

Paragraph (b) directs school districts to provide the education department with data on incidents of seclusion and the students who are secluded.  Requires the department to collect and publish the data.  Directs the department to contact and provide technical assistance to a school district after reviewing the district’s seclusion data. Substitutes references to prone restraints with references to seclusion.

Makes this section effective for the 2016-2017 school year and later.

Section 8 [Prohibitions] adds prone restraint to the list of prohibited restrictive procedures.

Makes this section effective immediately.

Section 9 [Nonresident tuition rate; other costs] clarifies that an intermediate school district or special education cooperative may recover its unreimbursed costs of service to special education pupils, including costs for building leases, debt service levies, and indirect costs in membership fees and nonmember access fees from each student’s resident district. Clarifies the definition of general education revenue used to compute the nonresident tuition rate.

Section 10 [Use of reimbursements] requires school districts to reserve third-party revenue and spend the revenue only for the purposes enumerated in this section.

Section 11 [Advisory committees]. Paragraph (b) requires the advisory committees for the deaf and hard-of- hearing and for the blind and visually impaired to each review, approve, and submit a biennial report on eligible children’s education outcomes to the education commissioner, the legislature, and the Commission of Deaf, DeafBlind, and Hard-of-Hearing Minnesotans.

Section 12 [Special education aid] requires the Department of Education to include procedures in the Uniform Financial and Reporting Standards (UFARS) system to track third-party billing proceeds at the school building level.  Requires third-party billing revenue to be included in the cross-subsidy report and excluded from the calculation of special education excess cost aid.

Section 13 [Definitions; special education excess cost] clarifies the definition of general education revenue used to calculate unreimbursed nonfederal special education expenditures.

Section 14 [Alternative attendance programs] clarifies the definition of general education revenue in order to calculate the unreimbursed cost of providing special education and services.

Section 15 [Appropriation] increases the special education aid appropriation by $69,000 per year starting in fiscal year 2017 for additional special education aid to allow the Metro Deaf charter school to directly enroll prekindergarten pupils. Adjusts the appropriation for forecast changes.

Section 16 [Reducing state-generated special education paperwork] requires the education commissioner in fiscal year 2017 and in fiscal year 2018 to use existing budgetary resources to remove 25 percent of the state-generated special education paperwork burden on special education teachers.

Makes this section effective immediately.

Section 17 [Appropriation canceled] cancels the remaining portion of the fiscal year 2014 appropriation ($1,686,000) transferred to MN.IT and returns the unspent balance to the state general fund.

Makes this section effective immediately.

Article 30 – Facilities and Technology

Section 1 [Contracts] excludes school district contracts for information systems software from the uniform municipal contracting law and bidding process otherwise applicable to contracts exceeding $100,000.

Section 2 [Definitions; eligible debt service] removes energy loans from the definition of eligible debt service.

Section 3 [Equalized debt service levy] modifies the calculation of equalized debt service levies. Provides that, beginning in fiscal year 2018, the equalizing factors for first and second tier equalized debt services levies annually adjust for changes in the total statewide adjusted net tax capacity per pupil unit.

Makes this section effective for taxes payable in 2017 and later.

Section 4 [Radon testing] clarifies that a school district’s costs associated with radon testing should be included in the district’s ten-year facility plan and are eligible expenses under the long-term facilities maintenance revenue program (radon testing was previously covered under a district’s health and safety program).

Section 5 [Solar panel fire safety] clarifies that a solar photovoltaic system installed at a school must comply with the most recently-adopted version of the Minnesota electric code.

Section 6 [Long-term facilities maintenance revenue] modifies the calculation of long-term facilities maintenance revenue to include costs approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction.

Makes this section effective for revenue in fiscal year 2017 and later.

Section 7 [Facilities plan; long-term facilities maintenance revenue program] clarifies that a school district’s ten-year facilities plan must be updated annually and submitted to the commissioner of education by July 31 of each year.

Section 8 [Long-term facilities maintenance equalization revenue] clarifies the calculation of the portion of a school district’s long-term facilities maintenance revenue that is subject to equalization.

Section 9 [Long-term facilities maintenance equalized levy] clarifies that “average tax base per pupil unit” should be calculated using only school district pupil units (and not charter school pupil units) as the denominator.

Section 10 [Long-term facilities maintenance unequalized levy] defines a district’s long-term facilities maintenance unequalized levy as the difference between the district’s total long- term facilities maintenance revenue and the district’s long-term facilities maintenance equalized revenue.

Section 11 [Long-term facilities maintenance equalized aid] defines a school district’s long-term facilities maintenance equalized aid as the difference between the district’s long-term facilities maintenance equalized revenue and the district’s long-term facilities maintenance equalized levy.

Section 12 [Allowed uses for long-term facilities maintenance revenue] allows a school district to transfer any long-term facilities maintenance revenue from the general fund (where the program’s revenue is currently held) to the district’s debt redemption fund to make the principal and interest payments on any bonds issued for long-term facilities maintenance projects.

Section 13 [Restrictions on long-term facilities maintenance revenue] corrects an erroneous cross reference.

Section 14 [Bonds for building calamities] transfers the authority for a school district to issue general obligation bonds to fund a rebuilding project resulting from a building calamity (fire, flood, etc.) from the health and safety revenue program to the long-term facilities maintenance program.

Section 15 [Review and comment] specifically exempts long-term facilities maintenance projects that are already included in a district’s ten-year plan from the facilities review and comment process.

Section 16 [Deficits; exemption] updates an obsolete reference from the capital expenditure fund (a fund that was eliminated about 20 years ago) to the reserve for operating capital account in the general fund.

Section 17 [Account transfer for reorganizing districts] clarifies that a school district that has reorganized (consolidating or dissolving) is prohibited from transferring funds out of its long-term facilities maintenance account in the general fund.

Section 18 [Elimination of reserve accounts] closes each district’s health and safety accounts (as the program is replaced by the long-term facilities maintenance revenue program) as of June 30, 2019, and transfers any balances into the unassigned general fund.  Transfers any balance remaining in the alternative facilities account to the long-term facilities maintenance account in the building construction fund as of June 30, 2016.

Section 19 [Energy conservation] eliminates obsolete references to energy conservation loans received prior to March 1, 1998.

Section 20 [Taconite payment and other reductions] replaces obsolete references to health and safety revenue with references to long-term facilities maintenance revenue.

Section 21 [Required debt service levy] requires one-day bond sales if approved, to be funded through a local tax increase.  Clarifies that the required debt service levy does not include amounts necessary for repayment of three types of bonds that have separate revenue authority:

(1)        long-term facilities maintenance revenue bonds (§ 123B.595);

(2)        bonds for certain capital equipment (§ 123B.61); and

(3)        bonds for certain capital facilities (§ 123B.62).

Section 22 [Early repayment] authorizes a school district with an outstanding balance on its maximum effort capital loan to refinance its local bonds and repay to the state an amount equal to the remaining original principal amount that is still outstanding and forgives any accumulated interest on the state maximum effort capital loan.

Section 23 [Appropriation; long term maintenance equalization aid] increases this appropriation for prekindergarten programs.

Section 24 [Internet broadband expansion; innovative grants] creates a matching grant program for school districts seeking to expand student connectivity.  Authorizes grants of up to $50,000. Encourages cooperative applications. Requires grant applications to demonstrate that appropriate filtering technology will apply to Wi-Fi hot spots.

Section 25 [Appropriation] appropriates $500,000 for grants for broadband Wi-Fi hot spots and $2,200,000 for districts that repay a maximum effort capital loan.

Section 26 [Repealer]. Repeals the following:

  •  § 123B.60, subd. 2. – health and safety revenue pledged for calamity bonds; and
  •  § 123B.79, subds. 2 and 6. – obsolete school fund and account references for technical colleges and certain separation and retirement benefits.

Article 31 – Early Childhood Education

Section 1 [Home visiting revenue] modifies the home visiting levy program into a home visiting revenue program. Makes districts that are eligible to levy for early childhood family education eligible to receive home visiting revenue. Increases the amount for home visiting from $1.60 per person under five residing in the district to $3.00 per person under five residing in the district.

Effective date: makes this section effective for revenue in fiscal year 2018 and later.

Section 2 [Home visiting levy] modifies the home visiting levy program by establishing an equalized levy based on adjusted net tax capacity per adjusted pupil unit.

Effective date: makes this section effective for revenue in fiscal year 2018 and later.

Section 3 [Home visiting aid] provides home visiting aid according to the share of revenue provided by the home visiting levy.

Effective date: makes this section effective for revenue in fiscal year 2018 and later.

Section 4 [Parent-child home program; appropriation] increases the appropriation for the parent- child home program by $2,000,000 for fiscal year 2017 only.  Directs the increase to be used over the next three fiscal years.

Section 5 [Quality rating system; appropriation] increases the appropriation for the Quality Rating and Improvement System by $2,000,000 for fiscal year 2017 only.

Section 6 [Appropriation; St. Could Area School District] appropriates $430,000 in fiscal year 2017 from the general fund to the commissioner of education for a grant to the St. Cloud Area School District to establish a preschool pilot program directed toward serving low income and English language learners.  Allows funds to be used for staff costs, curriculum, equipment, and student transportation.  Authorizes the funds to carry forward until expended.

Article 32 – Self-Sufficiency and Lifelong Learning

Section 1 [Program requirements] clarifies the eligible age of participation in adult basic education programs.

Section 2 [Program approval] clarifies that a consortium applying for adult basic education aid may consist of districts, nonprofit organizations or both.

Section 3 [GED test fees] authorizes the commissioner to pay 100 percent of the fee charged to an eligible individual for the costs of one full battery of GED tests for fiscal year 2017 only.

Section 4 [GED tests; appropriation] increases the appropriation for the costs of GED tests by $120,000 for fiscal year 2017 only. Makes $125,000 the base appropriation for fiscal year 2018 and later.

Section 5 [Appropriation; adult basic education aid].

Subd. 1. Adult basic education.  Appropriates $400,000 for fiscal year 2017 only for three adult basic education programs for innovative programming. Allocates the money among the three programs based on the number of students served by each program.

Subd. 2.  Adult basic education grants.  Appropriates 400,000 for adult basic education grants for a college readiness academy, a contextualized GED or Adult Diploma Program, and navigating and advising support services.

Article 33 – State Agencies

Section 1 [Teachers’ and administrators’ licenses; fees] clarifies language.

Section 2 [Appropriations; Department of Education]. Beginning in fiscal year 2017, removes riders on the MDE agency budget for transfer to the Board of Teaching and the Board of School Administrators as this organization will now receive direct appropriations.

Section 3 [Appropriation; Board of Teaching] appropriates $1,018,000 in fiscal year 2017 to the Board of Teaching for board operations.  Includes $80,000 for an electronic job board.  Adds $30,000 in fiscal year 2016 to fund a Board of Teaching deficiency.  Adds $2,750,000 for PBIS. Adds $1,000,000 for technology and security enhancements. Appropriates licensure via portfolio money.

Article 34 – Forecast Adjustments

This article makes adjustments to education appropriations to align with the February 2016 forecast.

 
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