Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Alexis C. Stangl
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 3656 - Omnibus Supplemental Appropriations Bill - The Second Engrossment
 
Author: Senator Julie A. Rosen
 
Prepared By: Bjorn E. Arneson, Senate Analyst (651/296-3812)
Kenneth P. Backhus, Senate Counsel (651/296-4396)
Krista Boyd, Senate Fiscal Analyst (651/296-7681)
Ann Marie Lewis, Senate Counsel (651/296-5301)
Carlon D. Fontaine, Senate Counsel (651/296-4395)
Andrew J. Erickson, Senate Fiscal Analyst (651/296-4855)
Stephanie James, Senate Counsel (651/296-0103)
Jenna Hofer, Senate Fiscal Analyst (651/296-5259)
Liam Monahan, Senate Analyst (651/296-1791)
Priyanka Premo, Senate Counsel (651/296-3914)
Alexis C. Stangl, Senate Counsel (651/296-4397)
Ben Stanley, Senate Counsel (651/296-4793)
Chris Turner, Senate Fiscal Analyst (651/296-4350)
Joan White, Senate Counsel (651/296-3814)
 
Date: May 2, 2018



 

Article 1 - State Government Omnibus Supplemental Finance

Section 1 [Definitions] defines “ratification” for purposes of the approval of negotiated collective bargaining agreements and compensation plans.  This section is from SF 3540 (Miller).

Section 2 [State Employee Negotiations] requires the commissioner of management and budget to submit changes to state employee insurance to the Legislative Coordinating Commission (“LCC”) for review 45 days before submitting a collective bargaining agreement or compensation plan to the LCC. Precludes the commissioner of management and budget from submitting a collective bargaining agreement or compensation plan that contains changes to state employee insurance that were disapproved by the commission. This section is from SF 3056 (Benson).

Section 3 [Information Required] specifies information that the commissioner of management and budget is required to submit to the Legislative Coordinating Commission with the submission of a collective bargaining agreement or compensation plan.  The required information includes the following, for each agency and for each proposed collective bargaining agreement and compensation plan:

(1) A comparison of the biennial compensation costs under the current agreement or plan to the costs under the proposed agreement or plan, paid for by money appropriated from the general fund;

(2) A comparison of the biennial compensation costs under the current agreement or plan to the costs under the proposed agreement or plan, paid for by money appropriated from each fund other than the general fund; and

(3) An identification of the amount of added biennial compensation costs attributable to salary, wages, and nonsalary and nonwage benefits.

The commissioner is also required to provide the aggregate impact of all proposed agreements and plans being submitted to the commission, for each agency, and for each of the items in clauses (1) to (3).

This section is from SF 3554 (Benson).

Section 4 [Establishment; Duties] eliminates the Legislative Coordinating Commission’s oversight role for the Legislative Budget Office. This is the first of several sections from SC4235 (Kiffmeyer) heard in the State Government Finance and Policy and Elections Committee on April 10, 2018, as follows: Sections 4-9, 11-15, 32, 34-39, and 45, paragraph (c).

Section 5 [Director; Staff] changes the entity that appoints the director of the LBO from the Legislative Coordinating Commission to the Legislative Budget Office Oversight Commission. Specifies that the director serves in the unclassified service.  Requires a public hearing before removal for cause. This section is effective July 1, 2018.

Section 6 [Uniform Procedures] requires the LBO to adopt standards, guidelines, and procedures governing the preparation of fiscal notes and to publish them in the State Register and on the LBO’s Web site. These standards, guidelines, and procedures are not effective until approved by the Oversight Commission. This section is effective January 8, 2019, but the uniform procedures may be developed and adopted by the Oversight Commission prior to the effective date.

Section 7 [Access to Data; Treatment] requires agencies and the Supreme Court to promptly supply any data relevant to legislation that is the subject of a fiscal note, on request of the director of the LBO.  Specifies permitted use of not public data and establishes consequences for violations. This section is effective January 8, 2019.

Section 8 [Fiscal Note Delivery and Posting] requires delivery of fiscal notes to chairs and bill authors and sets a deadline for posting.  This section is effective January 6, 2020.

Section 9 [Legislative Budget Office Oversight Commission] creates a Legislative Budget Office Oversight Commission, having eight legislators as members, with equal representation from the house and senate and from the majority and minority. Provides details about the operation of the commission. Sets deadlines for appointments to the Oversight Commission and the first meeting. Requires the first meeting to be convened by a member designated by the chair of the Legislative Coordinating Commission. 

Section 10 [Evaluation of Information Technology Projects] establishes permission for a role for the Office of Legislative Auditor (“OLA”) to audit information technology projects.  This section is patterned after the role for the OLA in evaluating economic incentive programs that was enacted in 2015.  More specifically, this section does the following:

Subdivision 1 [Definition] defines “information technology project” as any project performed by the (new) Division of Information Technology under a service level agreement for a state agency.

Subdivision 2 [Selection of project for review; schedule for evaluation; report] establishes a permitting process for the OLA to identify three to five information technology projects from which the Legislative Audit Commission may select at least one topic for an OLA review annually. In selecting the three to five topics, the OLA may consider both completed and ongoing projects and must give particular consideration to forensic review of high profile problematic projects from which recommendations might be developed to prevent problems on future projects.  The OLA may submit a written report to the Legislative Audit Commission on the reviewed topic.

Subdivision 3 [Evaluation plan] permits the OLA to specify an evaluation plan by November 1, 2018, that the OLA will use when reviewing information technology projects.

Section 10 is the first of several sections from SF 2966 (Rosen) as follows: Section 10, 18-25, 40, 43, and 45, paragraph (a).

Section 11 [Preparation] reverses changes made in the 2017 legislation that established the Legislative Budget Office (LBO).  This change leaves the commissioner of management and budget responsible for coordinating and delivering fiscal notes for the 2019 legislative session.

Section 12 [Preparation] makes the LBO responsible to coordinate and deliver fiscal notes beginning in January 2020.  Clarifies that fiscal notes are prepared by agencies – not by the LBO – in consultation with the LBO in a manner consistent with the standards, guidelines, and procedures adopted the by LBO. This section is effective January 6, 2020.

Section 13 [Uniform Procedure] reverses changes made in Laws 2017.  This section facilitates MMB's continuing responsibility for the coordination and delivery of fiscal notes in 2019.

Section 14 [Public Official] adds the director of the LBO to the list of people who are public officials for purposes of Minnesota Statutes, chapter 10A (gift ban, conflict of interest, statement of economic interest, and other provisions).  This section is effective July 1, 2018.

Section 15 [Fiscal Note Data Must be Shared with the Legislative Budget Office] requires agencies to provide data to the LBO regardless of classification. Agencies may not charge the LBO for providing data.  This section is effective January 8, 2019.

Section 16 [Rules Impacting Residential Construction or Remodeling; Legislative Notice and Review] delays adoption of certain rules having a financial impact on residential construction until after the next legislative session. This section is from SF 2567 (Kiffmeyer).

Section 17 [Federal Funds Report] requires the commissioner of administration to report to the legislature, with the governor’s detailed operating budget, on the total amount of federal funds received by the state during a specified period. This section identifies information to include in the report.  This section is from SF 3534 (Eichorn).

Section 18 [Creation] replaces the Office of MN.IT Services with a division within the Department of Administration called the “Division of Information Technology.”

Section 19 [Commissioner] adds a definition of “commissioner” that means the commissioner of administration.

Section 20 [Responsibility for Information Technology Services and Equipment] limits the scope of responsibility for the chief information officer.  This section removes certain items from a list of goods and services the chief information officer is responsible for providing to agencies, to a list of items the chief information officer provides to agencies at the request of an agency. 

Section 21 [Division of Information Technology; Structure and Personnel] changes the appointing authority for a chief information officer from the governor to the commissioner of administration. This section changes the entity to whom the chief information officer reports from the governor to the commissioner of administration.

Section 22 [Consultation Required] limits the requirement that agencies consult with the Division of Information Technology about project cost to those projects that an agency has selected the division to perform. This section also makes a conforming change to transfer cost of the project to the commissioner of administration rather than to the Office of MN.IT Services.

Section 23 [Electronic Government Services] changes a requirement to a permission that agencies use a single entry site created by the chief information officer for online government services.

Section 24 [Information Technology Revolving Fund] changes to the name of a revolving fund for IT projects and changes the entity responsible for the fund from the chief information officer to the commissioner of administration. Requires rates to apply for the biennium. The biennial rate requirement was not in SF 2966 (Rosen).

Section 25 [Program Participation] eliminates authority of the chief information officer to require state agencies to participate in the planning and implementation of the network to provide interconnective technologies.

Section 26 [Rates] requires MN.IT to provide invoices or statements that clearly describe their services.  Requires MN.IT to categorize or code services in a manner prescribed by the agency, or provide information in supplement to the invoice or statement that categorizes or codes services in a manner prescribed by the agency. This section was not in SF 2966 (Rosen). 

Section 27 [Schedule] and Section 28 [Hair Braiders Exempt] makes the practice of hair braiding exempt from registration requirements and fees. These sections, and section 45, paragraph (b), are from SF 2871 (Koran).

Section 29 [Fair Share Fee] repeals statutes that permit exclusive representatives to charge fair share fees to public employees who are not members, effective if the Supreme Court determines that fair-share fees are unconstitutional.  This section is from SF 3754 (Kiffmeyer).

Section 30 [Voter Records Updated Due to Voting Report] requires county auditors to use the “voter records updated due to voting report,” produced in the SVRS, to identify voters whose records indicate that it was updated because the person voted. The county auditor must investigate each identified record that is challenged for a reason related to eligibility to determine if the voter appears to have been ineligible to vote and voted. The auditor must forward any records that indicate the voter may have been ineligible to vote to law enforcement or the county attorney.

Section 31 [Inactive Voter Report] requires the secretary of state to develop a report in the SVRS that provides information on inactive voters who registered while the voter was possibly ineligible. Once the report is available, county auditors must use the report to identify voters that appear to have been ineligible to vote and registered to vote. The auditor must forward identified records to law enforcement or the county attorney.

Section 32 [Counties] changes the recipient of $207,000 annually from the commissioner of MMB to the Legislative Coordinating Commission for the LBO.

Section 33 [Total Appropriation] reduces the appropriation in fiscal year 2019 to the Office of MN.IT Services by $19,000.

Sections 34 and 35 [Effective Date] change the effective date to July 1, 2018, from January 8, 2019, for certain provisions from the 2017 laws establishing the LBO.

Section 36 [Effective Date] changes the effective date to January 6, 2020, from January 8, 2019, for a provision from the 2017 law establishing the LBO.

Section 37 [Effective Date] changes the effective date to July 1, 2018, from January 8, 2019. Requires the LBO to contract with MMB for access to the fiscal note tracking system from December 15, 2018, to January 5, 2020, and requires the transfer of operational control of the fiscal note tracking system to the LBO on January 6, 2020.

Section 38 [Legislative Oversight Commission; First Appointments; First Chair; First Meeting] sets deadlines for first appointments to and first meeting of the Legislative Budget Office Oversight Commission.  Provides for the first chair of the Legislative Budget Office Oversight Commission to be from among Senate members.

Section 39 [Legislative Budget Office Delivery of Fiscal Notes and Local Impact Notes Before January 6, 2020] specifies duties for the LBO to coordinate test fiscal notes on a sample of fiscal note requests from January 8, 2019, to January 6, 2020.

Subdivision 1 [Management and budget responsibility] specifies that MMB shall retain responsibility for generating fiscal notes until January 6, 2020. 

Subdivision 2 [Fiscal note request] requires the commissioner of management and budget to submit to the director of the LBO a daily list of fiscal notes requested during the legislative session, and a weekly list during the interim.

Subdivision 3 [Local impact note request] requires the commissioner of management and budget to submit to the director of the LBO a weekly list of local impact notes requested.

Subdivision 4 [Legislative Budget Office sampling] requires the director of the LBO to select a sampling of fiscal notes and local impact notes to coordinate and to report to the legislative nonpartisan fiscal analysts which fiscal notes the LBO will coordinate.  The subset must include a cross-section of the jurisdictions of the standing committees. During the 2019 legislative session, the LBO must complete the coordination of at least 300 fiscal notes and at least two local impact notes. 

By June 30, 2019, the director must report to the legislature on the fiscal notes and local impact notes requested, the subset selected, the date the director received the list identifying the request, and the date of delivery of the completed note.

Subdivision 5 [Agency coordination] requires state agencies to prepare a fiscal note in consultation with the LBO and consistent with the LBO’s procedures.

Subdivision 6 [Delivery of fiscal notes] requires the director of the LBO to deliver fiscal notes and local impact notes labeled as test notes to chairs who requested notes and chief authors.

Subdivision 7 [Legislative Budget Office Oversight Commission performance assessment] requires the Legislative Budget Office Oversight Commission to report on the timeliness, quality, and cost-effectiveness of the LBO’s production of fiscal notes during the transition period.

Section 40 [Office of MN.IT Services; Transfer] specifies that statutes apply that provide for the transfer of powers, duties, rights, and obligations from one agency to another.

Section 41 [Plaque Authorized] requires the commissioner of administration to place a plaque honoring World War I veterans who served both at home and abroad.  This section is from SF 106 (Clausen).

Section 42 [Appropriation and Transfers; Secretary of State] appropriates $1,534,000 in fiscal year 2019 to the secretary of state from the Help America Vote Act (HAVA) account for modernizing, securing, and updating the statewide voter registration system (SVRS) and for cyber security upgrades. $150,000 is deposited into the HAVA account by MMB to satisfy the state match requirement.

Section 43 [Appropriation; Department of Health] appropriates $33,000 in fiscal year 2019 from the state government special revenue fund to the commissioner of health to perform a cost analysis on rules impacting residential construction or remodeling.

Section 44 [Revisor’s Instruction] directs the Revisor of Statutes to make conforming changes.

Section 45 [Repealer] repeals the following:

Paragraph (a) repeals a requirement that state agencies transfer any appropriation they receive for an IT project to the Office of MN.IT Services.

Paragraph (b) repeals the following provisions:

Section 155A.28, subdivision 1: requires people engaged in hair braiding solely for compensation as a profession to register with the Board of Cosmetology.

Section 155A.28, subdivision 3: requires people engaged in hair braiding solely for compensation as a profession to complete instruction of up to 30 hours on the topics of health, safety, infection control, and state cosmetology laws.

Section 155A.28, subdivision 4: is an obsolete section. 

Paragraph (c): Repeals the enabling statute for the Legislative Budget Office Transition Planning Task Force.  This repeal is effective the day after enactment.

Article 2 – Energy

Please see the spreadsheet for this article.

Article 3 – Energy Policy

Section 1.  Renewable development account. Beginning in 2018, fixes the annual contribution to the renewable development account required for Xcel Energy’s Prairie Island and Monticello nuclear generating plants at $16,000,000 each year. Once both nuclear plants are closed, the amount collected would be fixed at $12,750,000 per year ($7,500,000 attributed to the Prairie Island plant and $5,250,000 for the Monticello plant). Clarifies that recovery of funds withheld shall be done through a rate rider. Directs Xcel to select members of the advisory group. Allows Xcel Energy to pay the third party evaluator from money withheld from the transfer to the renewable development account. This is from S.F. 3870 (Osmek).   

Section 2. Solar energy incentive program.  Amends Xcel Energy’s Solar Rewards program, by expanding eligibility for the incentive by increasing the maximum capacity of a solar energy system from 20 kW to 40 kW.  Restricts funds for the program from being used for any other purpose or program. Provides that unspent funds from 2018, are available to spend in 2019.  After 2019, unspent funds must be returned to the renewable development account. This is from S.F. 2696 (Osmek).

Section 3Biomass Business Compensation. (lines 39.14 to 41.13)

Subdivision 1.  Office of Administrative Hearings; claims process.  Requires the chief administrative law judge of the Office of Administrative Hearings to name an administrative law judge to administer a claims award process to compensate businesses negatively affected by the sale and closure of a biomass plant located in the city of Benson. Allows the administrative law judge to create a process to consider claims for affected businesses and issue awards to eligible businesses.

Subd. 2.  Eligibility.  Establishes the eligibility threshold for compensation. Requires an affected business to verify that as of May 1, 2017, it was operating under the terms of a valid contract or provide other documentation demonstrating an ongoing business relationship with the biomass plant or the fertilizer plant integrated within the biomass plant. 

Subd. 3.  Calculation of award.  Requires an eligible business to demonstrate the extent of its lost business opportunity by providing copies of any contracts and other documentation. Requires a business seeking compensation to report any payment received from business interruption insurance policies or other payments, settlements, or awards, and also provide a valuation of the sales, salvage, or scrap value of real or personal property associated with the business. Allows a business seeking compensation to provide information documenting its stranded investment.  Provides that data submitted by businesses requesting compensation is classified as business data.

Subd. 4.  Priority.  Allows the administrative law judge to give priority to claims by eligible businesses that demonstrate a significant effort to mitigate losses resulting from the closure of the biomass plant and consider whether a business is requesting compensation for a total business loss without mitigation efforts.

Subd. 5.  Amount of claim.  Specifies that claims are limited by and proportional to the amount provided for compensation in the biomass business compensation fund and the number of claimants.

Subd. 6.  Deadlines.  Establishes deadlines for filing claims and for issuing orders on award determinations.

Subd. 7.  Appeals.  Allows appeals of final orders denying compensation using the contested case review procedures.

Section 4.  Biomass business compensation account. (lines 41.14 to 42.15)

Subdivision 1.  Account established.  Establishes a biomass business compensation account in the special revenue fund in the state treasury. 

Subd. 2.  Funding for the special account.  Requires $40,000,000 to be transferred on July 1, 2019, from the renewable development account to the biomass business compensation account and appropriated for payment of eligible obligations under the biomass business compensation program.

Subd. 3. Repayment of funds transferred from the renewable development account. Requires funds transferred from the renewable development account and used to pay claims under the biomass business compensation program be repaid through a rate rider process. Beginning July 1, 2019, requires Xcel Energy to deposit the amounts recovered through the rate rider, not to exceed $20,000,000 each year, until $40,000,000 is repaid to the renewable development account.

Subd. 4.  Payment of expenses.  Provides a mechanism for the chief administrative law judge to certify costs incurred to administer the biomass business compensation claims process. Specifies that the transfer of certified costs will come from the renewable development account.

Subd. 5. Expiration. Provides that the section expires the day following the final deposit to the renewable development account.

Section 3. Pension rate base.  Allows a public utility to include excess pension contributions in the utility’s rate base.  If made part of the rate base, the excess contributions would be recovered from ratepayers. This is from S.F. 2879 (Jasinski).

Section 4. Community solar garden. (lines 42.26 to 44.17)  Permits subscribers to a community solar garden to be located in a different or non-contiguous county than the solar generation facility of a community solar garden as long as the facility has a minimum setback of 100 feet from the nearest residential property. Currently, a subscriber to a community solar garden must be located in the same county or a contiguous county to where the facility is located.

Section 4. Energy storage system pilot projects. (lines 44.18 to 45.15) Allows a public utility to petition the public utilities commission to recover costs associated with implementation of an energy storage system pilot project. Sections 4, 7, 8, and 12 are from S.F. 3266 (Osmek).

Section 5. Solar energy standard. Allows systems up to 40 kW to be counted toward Xcel’s solar energy standard, which requires that 0.15 percent of the utility’s retail electric sales be generated from solar energy systems at or below that capacity by the end of 2020. This is from S.F. 2696 (Osmek).

Section 6. Technical assistance. Sets the expiration date allowing a portion of the assessment for technical assistance to be used for a uniform electronic data reporting and tracking system at June 30, 2022, instead of June 20, 2018. Requires the commissioner to establish a utility stakeholder group to direct development and maintenance of the uniform electronic data reporting and tracking system. Allows the utility stakeholder group to direct 50 percent of the biennium expenditures. Specifies membership of the utility stakeholder group. Requires the stakeholder group to develop and submit a work plan to the commissioner. This is from S.F. 3558 (Goggin).

Section 7. Definitions. Provides definitions for “energy storage system” and “investor-owned utility” within the resource planning statute.

Section 8. Energy storage systems assessment. Requires investor-owned utilities to include an assessment of energy storage systems in any integrated resource plan or plan modification filed by an investor-owned utility. Provides considerations for the Public Utilities Commission in approving a plan with respect to an energy storage system assessment submitted by an investor-owned utility.

Section 9. Assessment for department regional and national duties. Extends the expiration date for the assessment until June 30, 2019.

Section 10. Solar energy grants for school districts. Establishes a grant program, to be administered by the Department of Commerce, to award grants to school districts to fund solar energy systems or school district buildings. Eligible school districts must be Xcel Energy customers.

Section 11. Contact information database. Requires the evacuation system’s notification center (Gopher One) to collect contact information for each owner or operator of underground facilities and create, maintain, and update annually a database that contains the contact information in case of an emergency or for purposes of damage prevention. This is from S.F. 3441 (Lang).

Section 12. Cost-benefit analysis of energy storage systems. Requires the commissioner of commerce to contract with an independent consultant selected through a request for proposal process to produce a report analyzing the potential costs and benefits of energy storage systems. Requires the study to be submitted to the Legislature by December 31, 2018.

Article 4 – Jobs and Economic Growth

Section 1.  Appropriations.

Section 2.  Department of Employment and Economic Development.

Subdivision 2.  Business and Community Development.  Appropriates $2,000,000 in fiscal year 2019 from the general fund for the redevelopment grant and demolition loan programs.

Subdivision 3.  Broadband Development.  Appropriates $15,000,000 in fiscal year 2019 from the general fund for broadband development.

Subdivision 4.  Workforce Development.  Appropriates $25,000 in fiscal year 2019 from the workforce development fund to the Cook County Higher Education Board to provide education programming and academic support.

Section 3.  Workers’ Compensation Court of Appeals.  Appropriates $33,000 in fiscal year 2019 from the workers’ compensation fund for salary adjustments for judges at the Workers’ Compensation Court of Appeals.

Article 5 – Economic Development Policy

Section 1.  Qualified job training program.  Removes program requirement relating to average length of a training course, clarifies age upon date of enrollment, and modifies income and asset guidelines for participation in the program. Sections 1 and 2 are from S.F. 2629 (Draheim).

Section 2.  Duties of program.  Removes reporting requirements specific to the job training program and clarifies that reporting shall be consistent with other workforce programs through the uniform outcome measurement and reporting system.

Section 3.  Use of money.  Restricts spending, appropriations, or transfers from the Douglas J. Johnson economic protection trust fund to only those listed in section 298.292. This is from S.F. 2915 (Eichorn).

Section 4.  Business and Community Development.  Amends appropriations in Laws 2017 for the Minnesota investment fund by reducing the appropriation in fiscal year 2019 and specifying that $1,000,000 in fiscal year 2019 is for a lactic acid production initiative.  Specifies that $1,500,000 in fiscal year 2019 is for a forgivable loan to a paper mill.   

Section 5.  Workforce Development.  Amends appropriations in Laws 2017 to extend availability of funds for an American Indian workforce development training pilot project. This is from S.F. 3769 (Bakk).

Section 6.  Public Facilities Authority.  Amends appropriations in Laws 2017 by extending availability for a grant to the Clear Lake - Clearwater Sewer Authority.

Article 6 – Labor And Industry

Section 1.  Grant awards.  Clarifies that the commissioner of labor and industry shall award the youth skills training grants to local partnerships located throughout the state, with a cap of $100,000 per grant, and that the commissioner may use part of the appropriation for administration of the grant program. Increases the appropriation to the youth skills training program to $1,000,000 (from $500,000) each year beginning in fiscal year 2020. Sections 1 and 5 are from S.F. 3157 (Anderson, P.).

Section 2.  Accessibility; public buildings.  Specifies that the state building code must require new public buildings and existing public buildings, when remodeled, to be accessible to and usable by persons with disabilities. This is from S.F. 3558 (Draheim).

Sections 3 and 4.  Manufactured home installers; fees.  Modifies the licensing fee provisions for manufactured home installers to be consistent with other fee reductions and licensing changes made in 2017. This is from S.F. 3378 (Draheim).

Section 5.  General support.  Amends appropriations in Laws 2017 for the youth skills training program to reflect that five percent of the appropriation may be used by the commissioner of labor and industry for administration and to increase the base amount for the program to $1,000,000 per year beginning in 2020.

Article 7 – Workers’ Compensation

Section 1.  Workers’ Compensation Court of Appeals and compensation judges.  Increases the salaries of the judges and the chief judge in the Workers’ Compensation Court of Appeals. This is from S.F. 3630 (Dibble).

Section 2.  Retired judges. Allows judges retired from the Workers’ Compensation Court of Appeals or the Office of Administrative Hearings to hear cases when there are not enough judges available for a quorum to hear a case before the Workers’ Compensation Court of Appeals. Sections 2 to 4 are recommendations from the Workers’ Compensation Advisory Council and contained in S.F. 3630 (Utke).  

Section 3.  Uses that may be made of reports.  Specifies who has access, with and without an authorization, to workers’ compensation reports of injury filed with the commissioner of labor and industry.

Section 4.  Coordination of the Office of Administrative Hearings’ case management system and the workers’ compensation imaging system.  Governs coordination of the case management system and the workers’ compensation imaging system pending completion of the modernization program. Provides that documents related to a workers’ compensation dispute that require action by the Office of Administrative Hearings must be filed with the office as provided by the chief administrative law judge. Specifies the documents that must be filed with the commissioner of labor and industry. Provides that documents filed with the department of labor and industry under Chapter 176 (workers’ compensation) are private data on individuals and nonpublic data except that documents are available to: the office and the department, the parties to the workers’ compensation claim, intervenors in a dispute, attorneys to a party in a dispute, a person who has written authorization from a party to the workers’ compensation claim, and as otherwise allowed by law.   

Article 8 – Unemployment Insurance Advisory Council; Policy

Section. 1.  Multi-state employment.  Clarifies when employers must pay Minnesota unemployment taxes on employees that also work in other states. Amends terms used in the section to assist with clarification. Articles 5 through 9 are from S.F. 2565 (Isaacson).

Section 2.  Coverage for J-1 Visa holders.  Adds J-1 Visa holders to the types of employment that are considered “non-covered employment.”

Section 3.  Unemployment insurance tax reduction.  Makes technical clarifications on application of a tax reduction mechanism to businesses that have experienced a change in business structure.

Article 9 – Unemployment Insurance Advisory Council; Interest

Sections 1 and 2.  Interest.  Clarify that interest on amounts past due will only be charged on unpaid principal, not on interest that has already accrued or other fees or penalties. Specify that interest is assessed at a rate of one percent per month or any part of a month.

Article 10 – Unemployment Insurance Advisory Council; Base Periods

Sections 1 and 2.  Base period.  Makes clear that the base period for the first month of each quarter does not include the most recently completed calendar quarter.

Article 11 – Unemployment Insurance Advisory Council; Housekeeping

Section. 1.  Employment.  Addresses a request from the U.S. Department of Labor regarding traveling salespeople by incorporating a reference to the Federal Insurance Contributions Act.

Section 2.  Failure to timely report; late fees.  Adds a cross-reference to the statute authorizing compromise authority. 

Section 3.  Exceptions for taxpaying employers.  Clarifies the duration of “relief of charges,” by providing that the relief ends if an employer hires back a separated employee and employment relationship starts over.

Section 4.  Garnishment.  Clarifies language concerning garnishments.

Section 5.  Payments that delay unemployment benefits.  Clarifies when vacation or sick payments, which delay unemployment benefits, are considered effective.

Section 6.  Workers’ compensation and disability insurance offset.  Makes clarifications regarding application of the offset.

Section 7.  Leave of absence.  Clarifies that leaves of absence are not considered discharges or quits.  

Section 8.  Employment misconduct.  Eliminates “substantial lack of concern” from the definition of employment misconduct.

Section 10.  Aggravated employment misconduct.  Codifies a court decision regarding how the unemployment insurance program should evaluate criminal charges and convictions in determining aggravated misconduct.

Article 12 – Unemployment Insurance Advisory Council; Technical

Sections 1 to 13 provide technical corrections regarding electronic transactions, computation of experience ratings, reimbursement elections, cancellation of amounts due, compromise authority, misrepresentation, representation and fees, notification to applicants and priority of debt, and remedies; Revisor instructions; and an effective date for Articles 5 to 9.

Article 13 – Environment and Natural Resources Appropriations

Please see the spreadsheet for this article.

Article 14 – Environment and Natural Resources Policy

Section 1 [Investment of Permit to Mine Financial Insurance Money] authorizes the State Board of Investment to invest permit to mine financial assurance money when requested to do so by the commissioner of the Department of Natural Resources (DNR).

Section 2 [Aquaculture Permits] provides that Pollution Control Agency (PCA) permits for saltwater aquatic farms must be classified as permits for agricultural operations.

Sections 3 to 5 [Aquaculture Definitions] define "saltwater aquaculture," "saltwater aquatic farm," and "saltwater aquatic life" for the purposes of regulation by DNR and the PCA.

Section 6 [Transportation and Importation of Saltwater Aquatic Life] provides for transportation and importation of saltwater aquatic life into Minnesota that is in lieu of the general transportation and importation of aquatic life under the aquaculture statutes, since saltwater aquatic life will be unable to live in waters of the state.

Section 7 [Road Vacation Proceedings] expands the type of legal actions that the department of natural resources can handle internally to include road vacations.

Section 8 [Engandered Species Exemption Clarification] clarifies that the exemption to the prohibition on taking endangered plant species on roadways extends to the full public right-of-way.

Section 9 [Snowmobile Safety Instructor Fee Recovery] authorizes snowmobile safety instructors to recover fees paid for online training courses on behalf of trainees.

Section 10 [Online ATV Training Program for Youth] requires DNR to establish a voluntary all-terrain vehicle online training program for youth aged six to ten and a parent or guardian.

Section 11 [ATV Safety Certificate Eligibility Clarification] clarifies that only youth aged ten or older may receive an ATV safety education and training certificate.

Section 12 [Harvesting of Gizzard Shad in Minnesota River] adds the Minnesota River downstream of Granite Falls to the list of waters from which gizzard shad may be harvested by cast net for noncommercial personal use as bait for angling under a permit. Repeals a related statutory sunset.

Section 13 [Use of Commercial Fishing Equipment in Infested Waters] expands the types of infested waters in which commercial fishing equipment must be tagged. Allows removal of tags by DNR only if equipment has been decontaminated in accordance with DNR protocol.

Sections 14 & 15 [Zebra Mussel Pilot Studies Changes] repeal statutory language that limits to certain access sites two pilot studies related to the reintroduction of equipment with zebra mussels attached into Gull Lake and Cross Lake.

Section 16 [Cayuna Country State Recreation Area Citizens Advisory Council Changes] amends the statute that creates the Cuyuna Country State Recreation Area Citizens Advisory Council to correct the names of member organizations and to add legislative representation.

Section 17 [Definition of Carbon Monoxide Detection System] amends the definition of carbon monoxide detection system in the water safety and watercraft statutes to provide greater flexibility.

Section 18 [Location of Carbon Monoxide Detection Systems] enacts requirements related to the placement of carbon monoxide detection systems in motorboats.

Section 19 [Wildland Firefighters] corrects the inadvertent application of certain statutory requirements related to firefighter training and education requirements to wildland firefighters.

Section 20 [Misdemeanor Wildfire Act Violations] expands the type of legal actions that the department of natural resources can handle internally to include misdemeanor violations of the wildfire act.

Section 21 [Security for Lease of State Forest Land] authorizes DNR to require a security deposit or other form of security to ensure that improvements and personal property are not left on state forest land when a lease of that expires. Current law already allows the DNR to require a performance bond for this purpose.

Section 22 [Unlawful Firewood Possession] eliminates an enforcement provision related to dealers of unapproved firewood that DNR does not use.

Section 23 [Security for Lease of Unsold Land] authorizes DNR to require a performance bond, security deposit, or other form of security to ensure that improvements and personal property are not left on unsold state lands when a lease of that land expires.

Section 24 [Online Sales of Surplus State-Owned Land] authorizes DNR to conduct sales of surplus state-owned land through online auction.

Section 25 [Production of Fish and Game Laws Summary] repeals requirement that DNR produce enough copies of its summary of the hunting and fishing laws and rules for each person that obtains a hunting, fishing, or trapping license.

Section 26 [Use of Deer License Proceeds] requires $16 of each deer license to be credited to the deer management account.

Section 27 [Voter Registration Information] requires DNR to include voter registration information on the website that allows residents to purchase hunting and fishing licenses. The website must also include a link to the secretary of state’s online voter registration website. DNR must also include voter registration information in the printed and digital versions of its annual game and fish regulations summary.

Section 28 [Sale of Certain Separate Selection Elk Licenses] authorizes recipients of an elk license under the separate selection for owners of, or tenants on, at least 160 acres of agricultural or grazing land to sell those licenses for no more than it cost the recipient.

Section 29 [Consideration of Unsuccessful Elk License Applicants] requires elk license applicants who fail to obtain an elk license through the mandatory separate selection for repeat unsuccessful applicants to be included in the selection for the remaining available licenses.

Sections 30 & 31 [Hunting by Persons with Physical Disabilities] facilitates a person with a permanent physical disability obtaining a firearms hunting license authorizing the person to hunt when assisted by a parent, guardian, or other adult person.

Section 32 [Gizzard Shad Cast Net Requirements] increases the permissible size of nets used to harvest Gizzard Shad to those having a radius of five feet from those having a diameter of seven feet. Provides that no more than two nets may be used at one time.

Section 33 [Local Water Resources Protection and Management Program – Local Government Eligibility] expands eligibility for assistance under the local water resources restoration, protection, and management program to include all local governments as opposed to just counties.

Section 34 [Local Water Resources Protection and Management Program – Eligibility Criteria] provides the Board of Water and Soil Resources (BWSR) with greater flexibility to determine eligibility criteria for the Local Water Resources Restoration, Protection, and Management Program.

Section 35 [Red River Basin Commission] establishes the Red River Basin Commission in statute.

Section 36 [One Watershed, One Plan Clarification] clarifies that plans developed as part of the one watershed, one plan program sometimes also serve purposes under the Clean Water Legacy Act (Chapter 114D).

Section 37 [Amendment of One Watershed, One Plan Transition Plan] current statutes require the Board of Soil and Water Resources to develop a plan for transitioning the state to comprehensive planning based on one watershed, one plan. This section provides that BWSR may not amend the plan more frequently than once every two years.

Sections 38 to 44 [Mississippi Headwaters Board Authority] clarifies that all zoning authorities are subject to the Mississippi Headwaters Board certification requirement with respect to certain land use actions undertaken in the area covered by the board’s comprehensive land use plan.

Section 45 [Soil Loss Statutes Applicability] makes certain soil erosion provisions inapplicable unless a county or other local government unit affirmatively adopts them via an ordinance.

Section 46 [Wetland Replacement Priority Order Exception] provides that the statutory wetland replacement priority order does not apply to project-specific replacement sites intended to bank credits for single-user banks before January 1, 2009.

Section 47 [Wetland Banking Credits as Offset of Adverse Effect on Rare Natural Communities] provides that wetland banking credits are an acceptable mitigation measure for adverse effects on rare natural communities and authorizes DNR to approve wetland replacement plans that include restoration or credits from rare natural communities of substantially comparable character and public value as mitigation for any rare natural community adversely affected by a project.

Section 48 [Wetland Banking Fees] requires wetland banking fees to be based on the actual cost to BWSR of implementing the activities for which fees are charged.

Section 49 to 55 [Clean Water Legacy Act Definitions] adds definitions related to local water planning to the Clean Water Legacy Act (chapter 114D) and makes changes to other definitions in that Act, which will facilitate the use of local plans for Clear Water Legacy Act purposes.

Section 56 [WRAPS & TMDLs Priorities] provides that the commissioner of the Pollution Control Agency (PCA), in consultation with the Clean Water Council, must coordinate with the commissioners of natural resources, health, and agriculture, and with BWSR, to establish priorities for scheduling and preparing WRAPs and TMDLs.

Section 57 [Clean Water Council Recommendations] removes the requirement that the Clean Water Council’s recommendations be designed to improve the quality of surface waters that are listed as impaired but do not have a TMDL.  

Section 58 [Use of Local Plans for Clean Water Legacy Act Purposes] authorizes the commissioner of the PCA to submit certain local plans to the EPA as part of the TMDL approval process as opposed to developing a new TMDL proposal.

Section 59 [Local Plan Activities May Contribute to MS4 Permit Requirements] authorizes water quality measures taken under a local water plan to be considered as contributing to the requirements of a storm water pollution prevention plan for municipal separate storm sewer system (MS4) permit purposes.

Section 60 to 62 [Various Clean Water Legacy Act Refinements] makes various refinements to the statute that addresses the contents of WRAPS and to other sections of the Clean Water Legacy Act.

Section 63 [NPDES Exemption; Water Transfers] establishes an exemption from the Pollution Control Agency’s (PCA) National Pollutant Discharge and Elimination System (NPDES) permit requirement for water transfers that do not introduce pollutants to the waters transferred. This exemption mirrors a similar federal exemption.

Section 64 [Remote Sugar Beet Storage Facilities] Prohibits PCA from including in NPDES/SDS permits a requirement to install sedimentation pond liners in remote sugar beet storage facilities.

Section 65 [External Peer Review of Water Quality Standards] directs the PCA to have peer review conducted on all new and revised numeric water quality standards.  This section also provides for the process of conducting the peer review and the development of technical support documents for the water quality standards.

Section 66 [Effluent Limitation Compliance] provides that to the extent allowed by federal law, a municipal or industrial NPDES or state disposal system permit holder that constructs a treatment work facility to comply with modified standards, may not be required to expend additional capital investment on the treatment works for 16 years.

Section 67 [Local Government Solid Waste Project Assistance] amends the application requirements for local government assistance with solid waste projects to require that capacity at existing facilities and the potential displacement of existing facilities be examined prior to application.

Section 68 [Conforming Change] updates statutory cross-references to reflect substantive changes made elsewhere in the bill.

Section 69 [Changes to Statutory References Related to Solid Waste] changes various statutory references from “organized collection” to “solid waste collection,” authorizing unorganized collection to be considered. The bill makes similar conforming in other sections. 

Section 70 [Solid Waste Collection Options Committee Procedure] provides that when a local government convenes a committee to examine solid waste collection options, the committee must include in its analysis an examination of the existing system of collection. This section also allows the committee’s evaluation to include an examination of potential collection methods’ impact on residential subscribers’ ability to have choices with respect to desired level of service and costs.

Section 71 [Conforming Change] makes a minor conforming change.

Section 72 [Negotiations with Licensed Solid Waste Collectors] changes the period during which local governments are required to negotiate with licensed collectors to “at least 60 days” from the current “60 days.” This section also changes the length of the resulting initial collection agreement to “seven” years from the current “three to seven years.”

Section 73 [Solid Waste Pre-Negotiation Conference] requires that prior to the negotiations a local government is required to conduct exclusively with licensed collectors, the collectors and elected officials of the local government must meet and confer on waste collection issues.

Section 74 [Joint Liability of Waste Collectors] prohibits an organized collection agreement from requiring a participating licensed collector to bear any liability for damages caused by any other participating licensed collector.

Section 75 [Conforming Change] makes a minor conforming change.

Section 76 [Establishment of Account for 3M Settlement Proceeds] establishes a water quality and sustainability account in the remediation fund for proceeds of the recent 3M settlement, appropriates those funds for settlement purposes, and imposes related reporting requirements.

Section 77 [3M Settlement Funding Recommendations] requires the commissioners of PCA and DNR to work with stakeholders to identify and recommend projects to receive funding from 3M settlement proceeds.

Section 78 [Align State Air Quality Standards with Federal Standards] aligns state air quality law with its federal counterpart.

Section 79 [Fugitive Emissions from Temporary Storage Facilities] exempts temporary storage facilities located at commodity facilities from otherwise applicable fugitive emissions standards.

Section 80 [Exemption from Open Air Swine Basin Moratorium] exempts from the otherwise applicable ban on new open-air swine basins those that are used solely for wastewater from truck-washing facilities.

Section 81 [Conforming Change] makes a minor conforming change.

Section 82 [Water Quality and Sustainability Account] amends the remediation fund statute to reflect the creation of the new water quality and sustainability account.

Section 83 [Small Business Environmental Improvement Loan Program – Eligibility] expands eligibility for loans under the PCA-administered Small Business Environmental Improvement Loan Program.

Section 84 [Small Business Environmental Improvement Loan Program – Loan Conditions] modernizes loan conditions by lowering permissible interest rates and increasing maximum loan amount.

Section 85 [Pipeline Definition] limits the definition of pipeline to those that are owned or operated by a condemning authority.

Section 86 [Conforming change] makes a minor conforming change.

Section 87 [Lottery Retailer Commission] sets new minimum rates for commissions paid to lottery retailers. For games in which the winner is determined without a drawing, the retailer commission will be increased to 6% from the current 5.5%. Additionally, the retailer commission for winning tickets will be increased to 1.5% from the current 1%.

Section 88 [Discontinuance of Ramsey Soil & Water Conservation District] discontinues the Ramsey Soil and Water Conservation District and transfers its duties to the Ramsey County Board of Commissioners.

Section 89 [Solid Waste Policy Plan Rulemaking Changes] prohibits enforcement of any goal, policy, criteria, or standard contained in the solid waste policy plan unless required by statute or adopted in accordance with the rulemaking procedures of chapter 14.

Section 90 [Metro Local Recycling Development Program Match] expands the type of entities that can provide the local match for a metro local recycling development program grant.

Section 91 [Buffer Changes] extends by one year, to July 1, 2019, the conditional compliance waiver for public water riparian protection requirements for those who filed a compliance plan by November 1, 2017. Provides that filing a compliance plan for public drainage system riparian protection by November 1, 2018, will likewise confer a conditional compliance waiver until July 1, 2019.

Section 92 [Extension of a DNR Reporting Date] extends by one year a DNR reporting date.

Section 93 [Additions to State Parks] adds additional land to the statutory boundaries of Frontenac State Park (Goodhue County), Minneopa State Park (Blue Earth County), and St. Croix State Park (Pine County).

Section 94 [Deletion from State Park] removes a portion of land from St. Croix Park (Pine County).

Section 95 [Additions to State Forests] adds additional land to Badoura State Forest (Hubbard County) and Snake River State Forest (Kanabec County).

Section 96 [Groundwater Appropriation Permit Enforcement] temporarily prohibits DNR from spending funds to enforce water appropriation permit terms that were added solely as a result of a court order issued in 2017.

Section 97 [Metro Groundwater Appropriation Activities] temporarily provides that public water suppliers in the metro area are not required to take certain measures related to groundwater appropriation.

Section 98 [Volkswagen Settlement Administration] prohibits the Pollution Control Agency from using more than 3% of Volkswagen settlement funds for administration and from hiring additional personnel to administer Volkswagen settlement funds.

Section 99 [Sewage Sludge Application Training Requirements] directs the Pollution Control Agency to amend its training requirements for those who apply sewage sludge and industrial byproducts to land so that 6 rather than 9 hours of annual training are required.

Section 100 [MS4 Stormwater Permit Modification] provides that when an MS4 stormwater permit is required for partially organized cities or townships, it is only required for the urbanized portion of the city or township.

Section 101 [Conforming Change] directs the director of the State Lottery to amend lottery rules so that they conform to changes made elsewhere in the bill.

Section 102 [Forest Inventory Recommendations] requires the Minnesota Forest Resources Council, in cooperation with the Interagency Information Cooperative and the University of Minnesota, to make recommendations for improving stand-level forest inventories.

Section 103 [Lake Winona Management] requires the PCA to take certain actions if the Alexandria Lake Area Sanitary District undertakes lake management activities designed to reduce phosphorous levels in Lake Winona and Lake Agnes.

Section 104 [Otter Tail County Muskellunge Stocking Moratorium] imposes a five-year moratorium on the stocking of muskellunge in waters wholly located in Otter Tail County. Requires DNR to convene a stakeholder group to examine the effects of muskellunge stocking in Otter Tail County.

Section 105 [Natural Resources Youth Safety Education Programs Delivery] requires DNR to review and research options for state-delivered online safety training programs for youth and adult students, including off-highway vehicles and hunter education.

Section 106 [Nonpoint Priority Funding Plan Workgroup] requires BWSR to convene a workgroup to review the biennial nonpoint priority funding plan.

Section 107 [Chronic Wasting Disease Task Force] creates a Chronic Wasting Disease (CWD) task force to examine whether and how CWD-related recommendations of the legislative auditor should be implemented, methods to improve the coordination and effectiveness of CWD prevention and response, and whether it is possible to develop new methods for CWD detection.

Section 108 [Board of Animal Health Task Force] creates a Board of Animal Health (BAH) task force to examine BAH effectiveness, whether the structure and membership of the board is optimally designed, and related issues.

Section 109 [Repealer] repeals a 2008 deletion of land from Jay Cooke State Park (Carlton County).

Article 15 – Accelerated Buffer Strip Implementation

Section 1 [Agriculture Best Management Practices Loan Program] amends the purposes of the agriculture best management practices (AgBMP) loan program to include the provision of low or no-cost financing to local units of government, including drainage authorities, watershed districts, and counties.

Section 2 [AgBMP Loan Program Definitions] modifies AgBMP loan program definitions to allow municipalities and drainage authorities to be local lenders under the program and to make other clarifying changes.

Section 3 [Incremental Establishment of Vegetated Ditch Buffer Strips and Side Inlet Controls] clarifies that drainage authorities’ findings that the establishment of vegetated ditch buffer strips and side inlet controls is necessary to control erosion and sedimentation, improve water quality, or maintain efficiency is sufficient to confer authority to order the measures to be installed.

Section 4 [Drainage Authority Attorney] clarifies that assistant county attorneys hired under existing law may assist with drainage matters.

Section 5 [Conditions for Redetermination of Benefits and Damages] allows more than 50 percent of the owners of property or owners of 50 percent of the property benefited or damaged by a drainage system to petition for a redetermination of benefits and damages.  The drainage authority will retain their discretion in conducting the redetermination of benefits and damages.  Current law only allows for a petition by over 50 percent of the landowners to petition for corrections for errors made at the time of drainage system establishment. 

Section 6 [Drainage Buffer Strip Planting after Acquisition and Compensation] allows a drainage authority to install buffer strips, with the consent of the landowner, along a drainage ditch after acquiring rights and compensating the landowner. This section sunsets on June 30, 2019. .

Article 16 – Higher Education

Section 1. Appropriations. Specifies that the appropriations under sections 2 and 3 are made from the general fund and added to appropriations provided in 2017, unless otherwise specified.

Section 2. Minnesota Office of Higher Education. Makes appropriations to the Office of Higher Education for: (1) a projected deficit in the state grant program; (2) the agricultural educators loan forgiveness program; (3) student loan debt counseling; and (4) a grant to design a preparation program for special education teachers providing instruction to the blind or visually impaired.

Section 3. Board of Trustees of the Minnesota State Colleges and Universities. Makes an appropriation to Minnesota State Colleges and Universities to be used for the Integrated Statewide Record System and for renewal of workforce development scholarships awarded during academic year 2018-2019. The workforce development scholarship program was established in 2017.

Section 4. Powers and duties; report. The Minnesota P-20 Education Partnership consists of major statewide educational groups and was created to maximize achievements of students from early childhood to postsecondary education. Under the P-20 Partnership’s direction, the OHE and the Department of Education are required to provide the public and policymakers with data and reports. Section 1 adds research related to early childhood development and investments in young children and their families to the reporting requirements (via data contained in the Statewide Longitudinal Education Data System).

Section 5. Victim’s rights. Requires postsecondary institutions to notify sexual assault victims of campus or local programs providing information on legal resources. 

Section 6. Eligibility. Clarifies how applicants to the teacher candidate grant program may demonstrate their intent to teach in a shortage area.

Section 7. Administration; repayment. Eliminates a 2017 requirement that the commissioner of the OHE develop a repayment process for teacher candidate grant recipients who do not complete student teaching or who leave Minnesota in the first year of student teaching.

Section 8. Eligible student. Moves the definition of “eligible student” from section 136A.1701 and combines it with the existing “eligible student” in section 136A.15, the general definition section for student loan programs.

Section 9. Designation. Corrects a statutory cross-reference.

Section 10. Rules, policies, and conditions. Eliminates a compatibility requirement for a federal loan program.

Section 11-13. Student loan programs. Corrects statutory cross-references.

Section 14. Classification of data. Adds a statutory cross-reference to the student loan refinancing statute.

Section 15. Repayment of loans. Strikes repayment procedures provided for supplemental loans under section 136A.1701, inserts a cross-reference to OHE’s general rules and policies for student loan programs in section 136A.16.

Section 16. Student loan debt counseling. Establishes a permanent, statutory program administered by the OHE to provide a grant to an organization offering student loan debt counseling. This program is similar to a 2015 pilot program grant provided to Lutheran Social Services.

Subdivision 1. Grant. Permits an organization receiving a grant to offer counseling to those capable of being served with available appropriations. Sets a goal that a grantee provide at least two counseling sessions to 75 percent of borrowers receiving counseling. Establishes that the purpose of the counseling is to enable borrowers to understand their loan and repayment options, manage loan repayments, and develop a workable budget.

Subd. 2. Qualified debt counseling organization. Defines a qualified debt counseling organization as one that has experience in student loan counseling, employs certified financial loan counselors, and is based in Minnesota and has offices in multiple rural and metropolitan locations.

Subd. 3. Grant application and award. Requires that applications be made in a form and manner specified by the commissioner. Describes the components that must be included on the application. Requires the commissioner to select one grant recipient every two years. The grant recipient would receive funding for both years of the biennium.

Subd. 4. Program evaluation. Requires a grant recipient to submit a report to the commissioner every two years. Specifies data elements to be included in the report.

Subd. 5. Report to legislature. Requires the commissioner to submit a report on the program to the higher education committees of the legislature every two years.

Section 17 & 34. Creation of account. Specifies that the aviation loan forgiveness program account is established in the special revenue fund and makes conforming changes to a prior appropriation.

Section 18 & 31. Account established. Specifies that the teacher shortage loan forgiveness account is established in the special revenue fund and makes conforming changes to a prior appropriation.

Section 19 & 32. Establishment; administration. Establishes the large animal veterinarian loan forgiveness program in the special revenue fund and requires OHE to use the account money to establish and administer the program. Any appropriations to OHE for this program are for transfer to the fund. Makes conforming changes to a prior appropriation.

Section 20. Schools to provide information. 2017 legislation established a student complaint process for private and out of state public postsecondary institutions. This section requires schools, during registration, to provide to the OHE the school’s disclosure to students regarding the student complaint process.

Section 21. Additional security. In the Minnesota Private and Out of State Public Postsecondary Education Act, adds a specific calculation for the surety bond amount required for new schools with conditional approval (not < $10,000 and at least 10% of the school’s net revenue from tuition and fees in the prior fiscal year). Provides, for failing registered institutions, that if the letter of credit required by the U.S. Department of Education is greater than 10% of federal financial aid funds the institution received in the most recently completed fiscal year, then OHE will reduce the surety requirement to 10% of federal financial aid funds the institution received in the most recently completed fiscal year, as long as it is at least $10,000 but not more than $250,000.

Section 22. Disclosure. Requires private and out-of-state public postsecondary schools to disclose to students the 2017 student complaint process.

Section 23. Bond. Corrects technical accounting terminology.

Section 24. Catalog, brochure, or electronic display. 2017 legislation established a student complaint process for private career schools. Section 15 requires private career schools, during their licensure, to provide to OHE the school’s disclosure to students regarding the student complaint process.

Section 25. Disclosure. Requires private career schools to disclose to students the 2017 student complaint process.

Section 26 & 29. Spinal cord injury and traumatic brain injury research grant program. Establishes an account in the special revenue fund for the spinal cord and traumatic brain injury grant program. OHE must use the account money to administer the grant program. Appropriations to OHE for the program are for transfer to the fund, do not cancel, and are available until expended. Makes changes to a prior appropriation.

Section 27. County scholarship endowment account. Authorizes counties to establish an endowment account using certain unencumbered revenues, private donations, gifts, or grants.  The county board may invest account funds and the account is subject to audit by the state auditor.  Income derived from investments must be used for scholarships for students residing in the county and attending a two-year MnSCU institution. The county scholarship program was established in 2017.

Section 28. MnSCU two-year public college program. The MnSCU College Occupational Scholarship Pilot Program was established in 2016 for the academic years 2016-2017 and 2017-2018. This section reduces the appropriation made for the program in 2017 by $1,000,000 to capture funds that are unused and unencumbered by the program. This section is effective June 30, 2018.

Section 30. Emergency assistance for postsecondary students. Makes a technical change to clarify that the program is limited to Minnesota schools.

Section 33. Agricultural educators loan forgiveness. Clarifies a transfer made to the agricultural educators loan forgiveness account in the special revenue fund in a prior appropriation.

Section 35. Transfers. Confers upon the commissioner of OHE the authority to transfer unencumbered balances from 2017 appropriations for: (1) interventions for college attendance program grants; (2) the summer academic enrichment program; and (3) student-parent information.

Section 36. Affordable textbook plan and report. Requires Minnesota State Colleges and Universities to develop a plan to increase the use of affordable textbooks and instructional materials and to explore registration software to disclose the cost of textbooks and materials prior to or during course registration. The plan must establish a goal for the percentage of all courses offering affordable materials. The plan and a report providing data on affordable course materials are due to the legislature by January 15, 2020

Section 37. Teacher preparation program design grant. Requires OHE to provide a grant to a higher education institution to explore, design, and plan a teacher preparation program for special education teachers instructing blind and visually impaired students. OHE may develop guidelines and an application process and may use up to two percent of the appropriation for administrative costs. The grant recipient must submit a report describing the plan and any potential ongoing costs to the legislature by January 15, 2020.

Section 38. Repealer. Technical change repealing certain definitions relating to student loan programs.

Article 17 - Transportation

Section 1. Certain transit financial activity reporting. Changes the frequency of the legislative auditor's review of the Metropolitan Council’s transportation financial records from quarterly to two times per year.  Strikes a reference to the Counties Transit Improvement Board (CTIB), which has dissolved.  Effective June 1, 2018.

Section 2. Metropolitan area transit account.  The Metropolitan Council may spend funds in the metropolitan area transit account only for system operating expenditures.  Effective June 1, 2018.

Section 3.  Unfair practices by manufacturers, distributors, factory branches.  It is unlawful for a motor vehicle manufacturer, distributor, or factory branch to charge back or withhold payment to a motor vehicle dealer due solely to an unreasonable delay in the transfer or registration of a new motor vehicle. This section expires June 30, 2021.

Section 4.  Program authority; funding.  Requires at least 49 percent of corridors of commerce funding to be spent on projects inside the metropolitan area and 49 percent outside of the metropolitan area.

Section 5.  Project selection process; criteria.  Adds a cross-reference to the funding allocation for the corridors of commerce funding allocation in section 4.

Section 6.  Route No. 180.   Modifies the route of Highway 54 in Grant County, which allows part of the road to be turned back to the county.

Section 7.  Officer Bill Mathews Memorial Highway.  Designates U.S. Highway 12 in Wayzata as “Officer Bill Mathews Memorial Highway.”

Section 8.  Trooper Ray Krueger Memorial Highway.  Designates Trunk Highway 210 in Cass County as “Trooper Krueger Memorial Highway.”

Section 9.  Trooper Dale G. Roehrich Memorial Highway.  Designates U.S. Highway 61 from Lake City to Wabasha as “Trooper Dale G. Roehrich Memorial Highway.”

Section 10.  Warrant Officer Dennis A. Groth Memorial Bridge. Designates a bridge on Highway 52 in Rosemount as "Warrant Officer Dennis A. Groth Memorial Bridge."

Section 11.  Specialist Noah Pierce Bridge.  Designates a bridge on Highway 53 in Eveleth as "Specialist Noah Pierce Bridge."

Section 12.  Direct negotiation.  Raises the limit on direct negotiations for trunk highway projects from $150,000 to $250,000.

Section 13.  Indian employment preference.  Authorizes the commissioner of transportation to implement an Indian employment preference for projects on or near an Indian reservation.

Section 14.  Passenger automobile; hearse.  For first registrations of a new vehicle sold by a dealer, the dealer may choose to determine the base value of the vehicle using suggested retail price information from the manufacturer. 

Section 15.  Listing by dealers.  Allows dealers to withhold tax due from the prior registration period. A lien for registration tax does not attach.

Section 16.  Failure to submit within ten days.  Allows deputy registrars to accept applications for registration or transfer.

Section 17.  Filing registration applications.  Allows all deputy registrars to accept and process fleet registrations.

Section 18.  Fee.  Deputy registrars may collect a filing fee for fleet registration transactions. The commissioner may impose an equivalent administrative fee instead of the filing fee.

Section 19.  Multiple licenses.  Allows a dealer with more than one location in the state to move vehicles between the lots without assigning vehicle ownership or title to the lot where the vehicle is located.

Section 20.  Designated dealer title and registration liaison.  The commissioner of public safety must designate one or more department employees to respond to questions from dealers and troubleshoot dealer issues related to vehicle titles and registration.

Section 21.  Late fee.  The $2 late fee for failure to deliver a title transfer within ten days does not apply to transfers from licensed vehicle dealers.

Section 22.  Expedited driver and vehicle services; fee. Allows driver’s license agents and deputy registrars to expedite processing of licenses, permits, ID cards, and vehicle title transactions. The commissioner must not decline an expedited service request solely based on the limitations of the DPS technology systems. Effective November 1, 2018.

Section 23.  Electronic transmission.  Requires the commissioner of public safety to establish standards to approve and allow software companies that provide software to dealers to electronically transmit vehicle title transfer and registration information. Approved companies must be allowed access to department facilities, staff, and technology.

Section 24.  Transactions by mail.  Allows deputy registrars to accept and process applications submitted by mail.

Section 25.  Vehicle registration data; federal compliance.  Prohibits the commissioner of public safety from restricting the uses for which a licensed dealer may obtain specific data about an individual obtained by the department in connection with a motor vehicle record.

Section 26.  Issuance of certificate by deputy registrar.  Allows deputy registrars to issue vehicle titles.  On or before August 1, 2019, the commissioner of public safety must authorize deputy registrars to issue titles subject to procedures established by the commissioner.

Section 27.  Owner’s interest terminated or vehicle sold by secured party.  Allows an assignee of a secured party to perform certain actions in place of the assignee.

Section 28.  Salvage titles.  Broadens the requirements to obtain a salvage title to apply to all vehicles, regardless of age or value.  Under current law, a salvage title is only required for late-model vehicles (five-years old or newer) or high-value vehicles (worth over $9,000 before being damaged or an older vehicle having a gross weight of over 26,000 pounds).

Section 29.  Notice of perfection by dealer.  When a security interest in a vehicle sold by a dealer is perfected, the dealer may provide a statement of perfection to the secured party. The statement is considered prima facie evidence of the facts in the statement.

Section 30.  Motor vehicle title transfer and registration advisory committee.  Establishes the Motor Vehicle Title and Registration Advisory Committee to advise the commissioner of public safety on title and registration issues. The commissioner of public safety must annually submit reports to the legislature summarizing the committee’s activities and recommendations for legislative action.

Section 31.  Amounts.  Strikes references to the expired technology surcharge.

Section 32.  Railroad train.  Amends the definition of “railroad train” to include other on-track equipment and rolling stock operated on rails that trigger grade crossing signals.

Section 33.  Zoning within local area.  Allows the commissioner of transportation, at the request of a county board, to establish a speed limit in excess of 55 m.p.h., based on an engineering study. The county engineer must erect signs.  A county may, by resolution, increase or decrease the speed limit on a county road by 5 or 10 miles per hour.  The county engineer must erect the signs.  Effective June 1, 2018.

Section 34.  Laned highway.  Allows semis and other similarly large vehicles to deviate from the driving lane when approaching and going through a roundabout.

Section 35. Slow-moving vehicle.   Requires a mandatory fine of at least $100 (in addition to the $75 criminal and traffic surcharge) for a person who operates a vehicle at less than the speed of traffic in the left driving lane. This does not apply if the vehicle is passing another vehicle, is preparing for a left turn, or is preparing to exit a controlled access highway via a left side exit, or if a specific lane is designated for a specific type of traffic.

Section 36.  Passing parked emergency vehicle; citation; probable cause.  If it is not possible to move to another lane, a driver must slow down to a reasonable and prudent speed while passing a stopped emergency vehicle with its lights on.  Effective August 1, 2018.

Section 37.  Passing certain parked vehicles.  If it is not possible to move to another lane, a driver must slow down to a reasonable and prudent speed while passing a stopped maintenance, utility, or construction vehicle.  Effective August 1, 2018.

Section 38.  Roundabouts.  If two semis or other similarly large vehicles drive through a roundabout at the same time, the driver of the vehicle on the right must yield to the vehicle on the left.

Section 39.  Requirements.  Drivers must stop at a railroad crossing when on-track equipment or rolling stock is moving on the tracks.

Section 40.  Certain vehicles to stop at railroad crossing.  Requires busses and other vehicles for hire to stop, listen, and look at railroad track for the approach of on-track equipment or rolling stock. On-track equipment or rolling stock must not proceed across an exempt crossing unless a person is present to warn traffic.

Section 41.  Crossing railroad tracks with certain equipment.  Requires drivers of tractors or other slow-moving equipment to stop, listen, and look for when on-track equipment or rolling stock at railroad crossings.

Section 42.  Glazing material; prohibitions and exceptions.  In order to use the window tinting exemption for limousines, the vehicle must meet the definition of a limousine and must be registered as a limousine.

Section 43.  Manner of loading. It is not an unsecured load for a vehicle hauling sugar beets to leak liquid.  Makes technical and format changes.

Section 44.  Automobile transporter.  Allows stinger-steered combination automobile transporters 80 feet or less in length to be operated on interstate highways and other designated highways and may carry a load that extends four feet or less in front of the vehicle and six feet or less in the rear. An automobile transporter may transport cargo or freight on a backhaul, as long as it complies with the weight limitations for a truck tractor and semitrailer combination. 

Section 45.  Conditions.  Allows a vehicle hauling raw or unfinished forest products to operate on a segment of Interstate 35 between Carlton County to St. Louis County.

Section 46.  Certain emergency vehicles.  Subjects emergency vehicles designed to transport personnel and equipment to support fire suppression or mitigate other hazardous situations to specified weight limits when operated on an interstate highway.

Section 47. Suspension of driver’s license. The commissioner of public safety is prohibited from suspending a person’s driver’s license based only on the fact that the person did not appear in court for a petty misdemeanor citation or for a driving after suspension.

Section 48.  License endorsement and permit requirements.  Allows a person with a motorcycle permit to operate a motorcycle on the interstate.

Section 49.  Restricted license for farm work.  Allows an individual to use a restricted license for farm work on any type of farm, regardless of how it is legally organized.  A person may operate within a 40-mile radius of the farmhouse; under current law the radius is 20 miles.  Effective June 1, 2018.

Section 50.  Fees.  Removes references to the expired technology surcharge.

Section 51. Commissioner shall suspend. The commissioner of public safety is prohibited from suspending a person’s driver’s license if the person was convicted only of driving after suspension or revocation.

Section 52. Failure to pay fine. The commissioner of public safety is prohibited from suspending a person’s driver’s license based only on the fact that the person was convicted of violating traffic laws, has been fined for the violation, and failed to pay that fine. Eliminates court reporting provisions.

Section 53. Offenses. The commissioner of public safety may suspend a person’s driver’s license when any court reports to the commissioner that the person has four unpaid parking tickets within a year or five unpaid parking tickets within two years. The commissioner is prohibited from suspending a person’s driver’s license who is convicted of driving after suspension or revocation.

Section 54.  Legislative report. The commissioner of transportation is not required to submit a report on the Transportation Economic Development (TED) program if no funds were granted in the previous 24 months.

Section 55.  Expiration.  Extends the sunset date of the Non-Motorized Transportation Advisory Committee to June 30, 2022.

Section 56.  Continuation of carrier rules.  Makes a conforming change.

Section 57.  Hours of service exemptions.  Federal hours of services regulations do not apply to drivers engaged in intrastate transportation within a 150-air-mile radius from the source or distribution point.  Because specific harvest periods are eliminated, these exemptions apply year-round.

Section 58.  Hours of service of driver.  Incorporates a federal exemption on agricultural operations during planting and harvesting periods. Establishes the planting and harvest period as January 1 through December 31 of each year, so that the federal exemption applies year-round.

Section 59.  Order.  Eliminates the commissioner of transportation’s authority to issue orders regarding tariffs and accounting.

Section 60.  Amount of penalty; considerations.  Eliminates the commissioner of transportation's authority to assess administrative penalties for motor carrier violations related to tariffs and accounting requirements. Makes technical changes.

Section 61.  Registration, insurance, and filing requirements.  Eliminates the requirement of the certificate or permit holder to file rates and tariffs with the commissioner.

Section 62.  Tariff maintenance and contents.  A household goods mover must maintain a tariff showing rates and charges for transporting household goods. The tariff must be prepared in accordance with federal regulations.

Section 63.  Tariff availability.  A household good mover must maintain all of its tariffs at its principal place of business and at each of its terminal locations. The tariffs must be available for public inspection.

Section 64.  Compensation fixed by schedule on file.  Makes technical and conforming changes.

Section 65.  Highway user tax distribution fund use limitation.  Prohibits the commissioner of public safety from using money from the highway user tax distribution fund to pay for employees working in the public information center.

Section 66.  Driver and vehicle services fund.  Creates the driver and vehicle services fund within the state treasury.

Section 67.  Driver and vehicle services accounts.  Moves the existing vehicle services operating account, driver services operating account, and driver and vehicle services technology account into the new driver and vehicle services fund; these accounts are currently in the special revenue fund. This section also removes references to the expired technology surcharge and makes other technical and conforming changes.  Requires annual reporting on the driver and vehicle services technology account; project costs; and an estimate of maintenance costs.

Section 68.  Comprehensive plan.  Defines “comprehensive plan” by cross-reference to county and municipal planning and zoning statutes.

Section 69. Creation; authorized disbursements.  Strikes the prohibition against giving a municipality assistance from the state airports fund if its comprehensive plan is incompatible with the state aviation plan.                                                                                

Section 70.  Authority to establish.  States that the operation and maintenance of airports is an essential public service. Allows the commissioner of transportation to fund airport safety projects that maintain an existing infrastructure, regardless of a zoning authority’s effort to complete zoning. The commissioner may withhold funding from an airport subject to a proposed zoning ordinance.

Section 71.  Airport hazard prevention; protecting existing land uses.  Broadens the application of the section to all land uses, not just built up urban areas.  States that lighting of airport hazards is an essential public service, not just a public purpose.

Section 72.  Enforcement under police power.  A municipality may regulate the following in airport hazard areas:  land use; height restrictions; location, size, and use of buildings; and population density.  Strikes the two-mile distance limitation.

Section 73.  Joint airport zoning board.  Inserts cross-reference to proposed airport zoning regulation standards in sections 76 and 77, and strikes a reference to the section repealed in the bill.

Section 74.  Comprehensive regulations.  Requires a municipality that has adopted a comprehensive plan to include in the plan any airport zoning regulations that apply to an area in the plan.  This is permissive under current law.

Section 75.  Notice of proposed zoning regulations, hearing.  Modifies the notice provisions for hearings related to adopting or amending airport zoning regulations.

Section 76.  Airport zoning regulations based on commissioner’s standards; submission process. Establishes the process to adopt airport zoning regulations using standards prescribed by the commissioner of transportation.  Requires review of the regulations by the commissioner of transportation.  Local ordinances may be more stringent than the commissioner’s standards.  Preserves substantive rights existing and exercised before August 1, 2018.  Provides for protection of existing uses.

Section 77.  Custom airport zoning standards.  Provides an alternate process for a local government to establish and adopt custom airport zoning regulations.  Specifies the factors that must be addressed in the custom regulations.  Requires review of the regulations by the commissioner of transportation.  Preserves substantive rights existing and exercised before August 1, 2018.

Section 78.  Reasonableness.  Strikes the nonexclusive list of considerations in determining reasonableness of regulations.

Section 79.  Federal no hazard determination.  Permits a custom regulation to allow a structure or tree higher than otherwise allowed if the Federal Aviation Administration has analyzed it and determined it does not pose a hazard, require a change in operations, or require mitigation that cannot be accomplished.

Section 80.  Membership.  Allows for staggered term length for initial terms of a board of adjustment.  For the Metropolitan Airport Commission, the commission chair makes the appointments.

Section 81.  Zoning required.  Allows the commissioner of transportation to fund airport safety projects to maintain existing infrastructure regardless of a zoning authority’s efforts to complete zoning, but otherwise prohibits funding unless the municipality, county, or joint airport zoning board is proceeding on with zoning.

Section 82.  Airport safety zone.  Defines “airport safety zone” in the county planning and zoning statute.

Section 83.  Comprehensive plan.  Requires county boards to consider the location and dimension of airport safety zones, as well as improvements identified in the airport’s most recent approved layout plan.

Section 84.  Comprehensive plans in greater Minnesota; open space.  In adopting a comprehensive plan, counties must consider encouraging land uses in airport safety zones that are compatible with safe operation of the airport and the safety of people in the area.

Section 85.  In district zoning, maps.  Requires county zoning maps to include airport safety zones.

Section 86.  Airport safety zone.  Adds a cross-reference to the definition of “airport safety zone” to municipal planning and zoning statutes.

Section 87.  Preparation and review.  When preparing or amending a comprehensive plan, a municipality must consider the location and dimensions of airport safety zones in the municipality and any improvements identified in the airport’s most recent airport layout plan.

Section 88.  Airport safety zoning on zoning maps.  Requires municipal zoning maps to include airport safety zones.

Section 89.  Development goals and objectives.  When adopting municipal plans, a municipality must consider encouraging land use in airport safety zones that are compatible with safe operation of the airport and the safety of people in the area.

Section 90.  Budget changes or variances; reports.  Requires the Metropolitan Council to submit quarterly reports to the Legislative Commissions on Metropolitan Governance and the legislature on any changes or variances it has made from its adopted budget. Effective June 1, 2018.

Section 91.  Budget assumptions.  Requires the Metropolitan Council to do three things as part of its budget submission to the legislature:  (1) identify the budget assumptions used to prepare the submission; (2) provide copies of any reports or applications that were submitted to the Federal Transit Administration and identify the assumptions made in those reports and applications; and (3) explain the impact of the identified assumptions on the Council’s forecast.

Section 92.  Rail colocation prohibition.  The Metropolitan Council and the state of Minnesota are prohibited from constructing a light rail transit line in a shared use rail corridor that would be shared by both freight rail and light rail transit. Effective June 1, 2018.

Section 93.  Operating costs.  Provides a definition of “operating costs” for purposes of light rail transit funding.

Section 94.  Legislative report.  Requires the Metropolitan Council, as part of its legislative report, to identify and explain assumptions and methodologies used to prepare the report.  (The legislative report is submitted each even-numbered year and is a report on transit finance in the metropolitan area.)

Section 95.  Employees, others, affirmative action; prevailing wages.  Exempts the Metropolitan Airports Commission (MAC) employees from the political subdivision salary cap.

Section 96.  Exemptions; certain manufacturers; commissioner of transportation; road maintenance.  Allows the commissioner of transportation to waive payment and performance bonds on direct negotiation contracts.

Section 97.  Total appropriation.  Makes a conforming change relating to moving the vehicle services operating account, driver services operating account, and driver and vehicle services technology account into the new driver and vehicle services fund.

Section 98.  Administration and related services.  Amends a  2017 appropriation so that the commissioner of public safety must not spend the appropriation from the highway user tax distribution fund for public information center employees.

Section 99.  Driver and vehicle services.  Makes a conforming change relating to moving the vehicle services operating account, driver services operating account, and driver and vehicle services technology account into the new driver and vehicle services fund.

Section 100.  Cancellation and transfer; public safety. Requires the commissioner of management and budget, in consultation with the commissioner of public safety, to cancel $1.9 million of fiscal year 2018 appropriations to the commissioner of public safety. The cancellations must not come from state patrol or areas in the jurisdiction of the Judiciary committee. The funds must be transferred into the driver and vehicle services technology account to be used for MNLARS.

Section 101.  Editing MNLARS transactions.  Requires the commissioner of public safety to ensure that deputy registrars are able to edit specified transactions in MNLARS. The ability to edit a transaction ends at the end of the business day after the transaction was completed. Any edits made are tracked in MNLARS.

Section 102. Engine brakes; regulation by Burnsville. Allows Burnsville to adopt an ordinance to restrict or prohibit the use of an engine brake (or “Jake brake”) on a portion of Highway 13. Effective June 1, 2018.

Section 103.  Engine brakes; regulation by Minneapolis.  Allows Minneapolis to adopt an ordinance to restrict or prohibit the use of an engine brake (or “Jake brake”) on westbound Interstate 94 between LaSalle and the Lowry Tunnel. Effective June 1, 2018.

Section 104.  Interstate Highway 35 at County Road 9 in Rice County interchange feasibility study; appropriation. Appropriates $600,000 in fiscal year 2019 from the trunk highway fund and general fund to the commissioner of transportation to conduct a feasibility study on an interchange at Interstate Highway 35 and County Road 9 in Rice County.

Section 105.  Legislative Route No. 180 turnback; speed limit.  If the commissioner of transportation turns back any portion of Highway 54 in Grant County, the speed limit on the highway must remain at 60 miles per hour.  Effective June 1, 2018.

Section 106.  Legislative Route No. 222 removed.  Turns back Highway 222 to Red Lake County.

Section 107.  Legislative Route No. 253 removed.  Turns back Highway 253 to Faribault County.

Section 108.  Legislative Route No. 254 removed.  Turns back Highway 254 to Faribault County.

Section 109.  Legislative Route No. 277 removed.  Turns back Highway 277 to Chippewa County.

Section 110.  Legislative Route No. 298 removed.  Turns back Highway 298 to the City of Faribault.

Section 111.  Legislative Route No. 299 removed.  Turns back Highway 299 to the City of Faribault.

Section 112.  Legislative Route No. 323 removed.  Turns back Highway 323 to the City of Faribault.

Section 113.  Marked Interstate Highway 35 signs.  Requires the commissioner of transportation to erect signs on Interstate Highway 35 that direct motorists to the campuses of the Minnesota State Academy for the Deaf and Minnesota State Academy for the Blind. The commissioner is prohibited from removing signs for the campuses that are posted on Highway 60.  Effective the day following final enactment.

Section 114.  Marked Interstate Highway 94 study; appropriation.   Appropriates $1.45 million in fiscal year 2019 from the trunk highway fund and the general fund to the commissioner of transportation to conduct a feasibility study on expanding Interstate Highway 94 from St. Michael to St. Cloud.

Section 115.  MNLARS reimbursement from the Joint House and Senate Subcommittee on Claims.  A person may seek reimbursement from the Joint House and Senate Subcommittee on Claims for costs incurred due to MNLARS.  Effective June 1, 2018.

Section 116.  Motor Vehicle Title Transfer and Registration Advisory Committee; First Appointments; First Meeting.  Requires appointments to the Motor Vehicle Title Transfer and Registration Advisory Committee to be made by September 15, 2018, and the first meeting must be by November 1, 2018.

Section 117.  Public awareness campaign.  Requires the commissioner of public safety to conduct a public awareness campaign to increase knowledge about slow-moving traffic in left-hand lanes.

Section 118. Retroactive driver’s license reinstatement. The commissioner of public safety must make a person’s driver’s license eligible for reinstatement if the license was suspended only for driving after suspension or revocation, for a failure to pay a fine, or both. Provides a process by which a person may have his or her license reinstated. Effective April 1, 2019.

Section 119.  Transfer; driver and vehicle services technology account.  Transfers the remaining balance in the existing driver and vehicle services technology account into the new account.

Section 120.  Transfer; driver services and operating account.  Transfers the remaining balance in the existing driver services and operating account into the new account.

Section 121.  Transfer; vehicle services and operating account.  Transfers the remaining balance in the existing vehicle services and operating account into the new account.

Section 122.  Appropriation; deputy registrar reimbursements.  Appropriates $9,000,000 in fiscal year 2018 from the special revenue fund to the commissioner of management and budget for grants to deputy registrars. Of this amount, $3,000,000 is from the vehicle services operating account and $6,000,000 is from the driver services operating account.  Funds are allocated proportionally based on the number of transactions completed by a deputy registrar.  The commissioner must make efforts to reimburse deputy registrars within 30 days of enactment.  Effective June 1, 2018.

Section 123.  Appropriation; MNLARS funding.  Appropriates $13.2 in fiscal year 2019 to the commissioner of public safety for contracted technical staff and technical costs related to MNLARS.  Of this amount, $12.6 million is from the general fund, $200,000 is from the vehicle services operating account, and $400,000 is from the driver services operating account. An additional $5.5 million is set in base funding in fiscal year 2020 for a FAST Enterprise contract payment. Of this amount, $1.4 million is from the general fund; $1.3 million is from the vehicle services operating account; and $2.8 million is from the driver services operating account.

Section 124.  Appropriation; CAT II approach system; Rochester.  $285,000 in fiscal year 2019 is appropriated from the state airport fund to the commissioner of transportation for a grant to the city of Rochester to acquire and install a CAT II approach system at the Rochester International Airport.  A local match is required.

Section 125. Appropriation; Northstar Commuter Rail study. Appropriates $850,000 in fiscal year 2019 from the general fund to the commissioner of transportation to study the extension of the Northstar Commuter Rail line from Big Lake to St. Cloud.

Section 126.  Revisor’s instruction.  Directs the revisor to change statutory references to the “special revenue fund” to the “driver and vehicle services fund” where appropriate.

Section 127.  Repealer.  Repeals Minnesota Statutes, section 168.013, subd. 21 (establishing the technology surcharge, which is now expired); section 221.161, subdivisions 2, 3, and 4 (relating to household good carrier tariffs); section 360.063, subd. 4 (airport approach recommendations and plans); section 360.065, subd. 2 (regulations submitted to commissioner); and section 360.066, subds. 1a and 1b (protection of existing neighborhood; amendment of standards).

Section 128.  Application.  Sections 68 to 89 and section 127, paragraph (b), are effective August 1, 2018, and apply to airport sponsors that make or plan to make changes to runway lengths or configurations on or after that date.  These sections do not apply to airport safety zoning ordinances approved and in effect on August 1, 2018; have not made and are not planning to make changes to runway lengths or configurations; and are not required to update airport safety zoning ordinances.

Article 18 - Agriculture Appropriations

Please see the spreadsheet for this article.

Article 19 - Agriculture Statutory Changes

Section 1 [Aquaculture permits] provides that Pollution Control Agency (PCA) permits for saltwater aquatic farms must be classified as permits for agricultural operations.

Sections 2 to 4 [Definitions] define "saltwater aquaculture," "saltwater aquatic farm," and "saltwater aquatic life" for the purposes of regulation by the Department of Natural Resources (DNR) and the PCA.

Section 5 [Transportation and importation of saltwater aquatic life] provides for transportation and importation of saltwater aquatic life into Minnesota that is in lieu of the general transportation and importation of aquatic life under the aquaculture statutes, since saltwater aquatic life will be unable to live in waters of the state.

Section 6 [Noxious weeds] eliminates the requirements for approval by the Commissioner of Agriculture before a weed inspector may bill an agency for noxious weed control on public lands.

Sections 7 to 10 [AFREC extension] extends the Agricultural Fertilizer Research and Education Council (AFREC) and the 40 cent per ton fertilizer fee to pay for the work for an additional ten years.  The fee is extended to 2029 and the council to 2030.

Section 11 [Grass and wildflower seed permits] removes commercial labelers of native grasses that produce commercial or agricultural quantities from being treated the same as seed packed for use in homes and gardens for the purposes of the seed permit fee.  They will be treated the same as labelers of agricultural seeds.

Section 12 [Advanced biofuel producer payments; minimum production level] decreases the minimum advanced biofuel production level to 1,500 million metric British thermal units (MMbtu) from 23,750 MMbtu to be eligible for producer payments.

Section 13 [Advanced biofuel producer payments; raw materials] adds oil and animal fats as raw materials that may be used to produce advanced biofuel and be eligible for producer payments.

Section 14 [Renewable chemical producer payments; minimum production level] decreases the minimum renewable chemical production level to 250,000 pounds from 750,000 pounds to be eligible for producer payments.  This section also makes technical changes.

Section 15 [Water resource protection requirements; nitrogen fertilizer] requires specific approval by law before the Commissioner of Agriculture can adopt water resource protection requirements for nitrogen fertilizer.

Article 20 -  Housing Statutory Changes

Section 1 [Definition] defines “modular home” for the purposes of the manufactured home park law as single-family dwellings that are substantially manufactured or constructed at an off-site location with final on-site assembly and attached to a permanent foundation site.

Section 2 [Placement of modular homes] provides that modular homes may be placed in manufactured home parks and classified as a manufactured home with prior approval of a manufactured home park owner and is subject to all rights, obligations, and duties of a manufactured home under state law.

Section 3 [Manufactured home park closing; neutral third party] provides that a qualified neutral third party for the purposes of manufactured home park closings must be familiar with manufactured housing and the closing provisions of Minnesota law.  The neutral third party must keep a detailed accounting of all payments from the manufactured home trust fund and provide the information to the manufactured park owner, the municipality, and the Housing Finance Agency.

Section 4 [Manufactured home park closing; right of first refusal] requires manufactured homeowners who are making an offer to meet the cash price for the manufactured home park to covenant and warrant that the land will be continued as a manufactured home park for at least six years after sale.

Section 5 [Manufactured home relocation trust fund] increases the minimum balance amount in the manufactured home relocation trust fund to trigger an assessment on manufactured homes to $3 million from $1 million.  This section also waives the annual assessment for any manufactured home park owner who has not received an assessment from the Commissioner of Management and Budget by August 30.

Section 6 [Relocation expenses; report] increases the maximum relocation payment for relocation of a single manufactured home section within a 25-mile radius to $9,000 from $7,000.  This section also:

  1. requires the neutral third party to process reimbursement payments within 14 days;
  2. increases the maximum amount that may be deducted for demolition and removal of a manufactured home to $3,000 from $1,000 when a manufactured home owner tenders title to the home in lieu of moving;
  3. moves the date required for the manufactured home relocation trust fund annual report to August 15 each year; and
  4. provides additional information on the annual manufactured home relocation trust fund annual report.

Section 7 [Reporting on manufactured home parks] requires the Department of Health and delegated local authorities to annually report to the Department of Management and Budget with the names, addresses, and other data on manufactured home parks licensed by the department or local authority.

Section 8 [MHFA energy conservation loans] adds specific items that may be purchased with MHFA energy conservation loans and allows the loans to be repaid on a utility’s on-bill repayment program.

Section 9 [Manufactured home park redevelopment program] broadens the use of the manufactured home park redevelopment program to include all ownership types.

Section 10 [Manufactured home park infrastructure grants] adds land acquisition as qualifying for manufactured home park infrastructure grants.

Sections 11 and 12 [Economic development and housing challenge grants; manufactured housing] make manufactured housing eligible for economic development and housing challenge grants.

Section 13 [Housing infrastructure bonds; definition] adds a definition of “senior” for the purposes of housing infrastructure bonds.

Section 14 [Housing infrastructure bonds; manufactured and senior housing] adds manufactured home parks and senior housing as eligible for financing from housing infrastructure bonds.  This section also provides for priorities for senior housing based on affordability, leverage, and services provided to seniors; directs the Housing Finance Agency to balance the loans between metropolitan and nonmetropolitan areas.

Sections 15 to 21 [Definitions] define “preservation project,” “30 percent AMI residential rental project,” “50 percent AMI residential rental project,” “100 percent LIHTC project,” “20 percent LIHTC project,” “AMI” (area median income), and “aggregate bond limitation” for the purpose of issuing residential rental housing bonds under the Minnesota Bond Allocation Act for the purpose of financing residential rental projects.  Note that the definition for “aggregate bond limitation” provides a 55 percent limit on use of the bonds for residential rental projects.

Section 22 [Single-family housing allocation reservation] moves up the date for the single-family housing allocation reserved of the bond allocations to the last Monday in June instead of the last Monday of July.

Section 23 [Entitlement reservations] moves up the date for return of an entitlement issuer amounts returned to be reallocated to the housing pool to July 1 from July 15.  Any amounts returned by an entitlement issuer on or after July 1 will be allocated through the unified pool.

Section 24 [15-year agreement] requires a developer to agree to maintain the type of residential rental project as part of the 15-year agreement for use of the bonds.

Section 25 [Allocation application; small issue and public facilities pools] makes the allocation application process apply only to the small issue and public facilities pools and modifies the dates to reflect the change in the single-family housing allocation reservation.  This section also eliminates any reference to the housing pool that is being created separately in the next section and the requirement to specify if it will be senior housing.

Section 26 [Allocation application; housing pool] establishes a separate process for applying for allocations from the housing pool for residential rental projects.

Section 27 [Housing pool allocation] moves up the date for housing pool allocations for residential rental housing to June 15 from July 15, and eliminates the prohibition on allocations to senior housing prior to May 15.  This section also provides for random award of allocation when there is insufficient bonding authority for two or more projects in the allocation at the same priority level, increases the time period to 180 days or 18 months from 120 days for use of the allocation, and provides a 24-month carryforward for residential rental projects.  To increase the time period to 18 months from 180 days, the issuer must submit one percent of the allocation amount within 180 days after the allocation date.

Sections 28 and 29 [Small issue and public facilities pool allocations] modify the dates for small issue and public facilities pool allocations to reflect the change in the single-family housing allocation reservation.

Section 30 [Return of allocation; small issue and public facilities pools] makes the return of allocations apply only to the small issue and public facilities pools and modifies the dates to reflect the change in the single-family housing allocation reservation.  This section also eliminates any reference to the housing pool that is covered separately in the next section.

Section 31 [Return of allocation; housing pool] provides a separate process for return of a housing pool allocation.

Section 32 [Higher education bonds] clarifies that none of the time limitations on bonds apply to higher education bonds, even when it is not a 120-day period.

Section 33 [Unified pool amount] modifies the dates to reflect the change in the single-family housing allocation reservation.

Section 34 [Application for residential rental projects; unified pool] modifies the general application process for the unified pool to apply to residential housing projects and moves the general process, other than residential rental housing, to the next section.

Section 35 [Application process for all other types of qualified bond; unified pool] moves the general application process for the unified pool to a new subdivision.

Section 36 [Allocation procedure; unified pool] moves up the unified pool allocation to the first Monday in July to reflect the change in the single-family housing allocation reservation.  This section also removes the lack of priority for nonsenior housing projects; includes 24-month carryforward  for residential rental projects; and provides a priority for housing projects based on whether it is a:  (1) preservation project; (2) 30 percent AMI residential rental project; (3) 50 percent AMI residential rental project; (4) 100 percent LIHTC project; (5) 20 percent LIHTC project; (6) other residential rental projects with up to 55 percent financing; or (7) other residential rental projects exceeding 55 percent of financing that apply after September 1.

Section 37 [Return of allocation; unified pool] updates this section to reflect that residential rental housing have longer than 120 days to be issued and provides for a portion of the application deposit for residential rental project allocation based on when the bonding authority is returned.

Section 38 [Final allocation carryforward] directs the Housing Finance Agency to allocate its bonding authority to utilize the carryforward requirements prior to current year's allocation.

Section 39 [Note of issue] makes technical changes related to the application deposit.

Section 40 [Deadline for issuance of qualified bonds] establishes a separate process for deadlines for residential rental projects requiring that the Housing Finance Agency reserve any carryforward for the residential rental project described in the original application.

Sections 41 and 42 [Technical] are technical changes related to other changes to the Minnesota Bond Allocation Act in the bill.

Section 43 [Advances to the manufactured home relocation trust fund] allows for advances from state appropriations to the manufactured home relocation trust fund, if the balance in the fund is insufficient to pay all claims.  All advances would be reimbursed.

Section 44 [Housing affordability fund set aside in 2019] establishes for 2019 a ten percent set-aside in the housing affordability fund, pool 3, for single-family housing and rental housing up to a four-plex in municipalities with a population under 10,000, and for manufactured housing.

Section 45 [Report on the costs of local requirements on affordable housing] directs the Commissioner of MHFA to report by January 15, 2019, on local regulatory, fee, and zoning decisions that raise the cost of affordable housing.

Article 21 – Judiciary and Public Safety Provisions

OVERVIEW

This article contains the Judiciary and Public Safety Provisions.  The article appropriates money for the Department of Corrections’ offender health care contract deficiency and transfers money to address a deficiency in the peace officer training account. It also appropriates money for two new Bureau of Criminal Apprehension drug scientists and for reimbursement grants to public school districts for physical security audits.  In addition, the article contains a number of criminal justice-related statutory changes that have fiscal implications.

Section 1 expands the list of prior convictions that enhance an offense to first-degree driving while impaired by including convictions for a felony in another state for criminal vehicular homicide and injury committed while under the influence of a substance when the other state’s statute is in conformity with Minnesota law.  Under current law, a person who drives while under the influence commits a first-degree offense if the person:

  1. commits the violation within ten years of the first of three or more qualified prior impaired driving incidents;
  2. has previously been convicted of a first-degree driving while impaired offense; or
  3. has previously been convicted of a felony under Minnesota Statutes addressing criminal vehicular homicide and injury committed while under the influence of a substance.

A qualified prior impaired driving incident can take place under Minnesota law or under the law of another state that is in conformity with Minnesota law. (S.F. No. 2755, Sen. Limmer)

Section 2 requires persons convicted of the new enhanced felony surreptitious intrusion crime involving a minor (see section 14) to register as a predatory offender. (S.F. No. 2862, Sen. Rosen)

Section 3 amends the community notification law to require that law enforcement agencies notify the public when offenders no longer reside, work, or are regularly found in the area. (Finance Committee amendment based on S.F. No. 3737, Sen. Champion)

Section 4 provides that family reunification efforts otherwise required under the CHIPS law are not required when a parent receives a stay of adjudication for an offense that constitutes sexual abuse. (S.F. No. 2699, Sen. Limmer)

Section 5 expands the crimes on which the Department of Public Safety must gather statistical data related to human trafficking to include the following:

  • Section 617.247 (possession of pornographic work involving minors); and
  • Section 617.293 (harmful materials; dissemination and display to minors prohibited).

This section also requires that pornography be considered as a potential social factor that contributes to and fosters trafficking.  (S.F. No. 2554, Sen. Benson)

Section 6 extends the sunset of the Court Technology Fund to June 30, 2023, and requires continuing reports to the Legislature regarding fund activity.  The 2013 Legislature established the Court Technology Fund to develop, support, maintain, and upgrade court and court-related computer systems and initiatives.  A $2 technology fee, which pays for the projects, is collected on court filings and motions and deposited in the court technology account in the special revenue fund.  Under current law, the fund sunsets June 30, 2018.  (S.F. No. 2721, Sen. Limmer)

Section 7 expands the prostitution-related crime penalty assessment to a number of new crimes.  Under current law, when a person commits certain prostitution-related crimes, the court imposes an assessment of between $500 and $1,000 in addition to any fine.  The money is divided between the local political subdivision (40% to be used for combating the sexual exploitation of youth), the prosecuting agency (20% also to be used in relation to combating the sexual exploitation of youth) and the safe harbor account (40%).  The changes to this section add several new offenses to the list of crimes for which an assessment must be imposed:

  • Section 609.27 (coercion);
  • Section 609.282 (labor trafficking);
  • Section 609.283 (unlawful conduct with respect to documents in furtherance of labor or sex trafficking);
  • Section 609.33 (disorderly house);
  • Section 609.352 (solicitation of a child);
  • Section 617.246 (use of minors in a sexual performance);
  • Section 617.247 (possession of pornographic work involving minors); and
  • Section 617.293 (harmful materials; dissemination and display to minors).

(S.F. No. 2554, Sen. Benson)

Section 8 expands the definition of “position of authority” to “current or recent” position of authority for the purposes of the criminal sexual conduct statutes.  Defines “recent” as within 120 days immediately preceding the act.  Includes persons who “assume” a duty or responsibility to a child as well as those who are charged with those duties or responsibilities. (S.F. No. 2864, Sen. Relph)

Sections 9 to 12 amend the criminal sexual conduct in the 1st- to 4th-degree statutes to include the expanded definition of “position of authority” in section 8.  (S.F. No. 2864, Sen. Relph) Also, sections 11 and 12 prohibit peace officers from engaging in any type of sexual contact or penetration with a person being restrained or who is not free to leave the officer’s presence.  (Judiciary Committee amendment based on S.F. No. 3136, Sen. Cohen)

Section 13 requires county attorneys to report specified information on stays of adjudication for 1st-5th degree criminal sexual conduct (CSC), criminal sexual predatory conduct, and failure to register as a predatory offender crimes, and also for stays of imposition or execution under 1st-4th degree CSC crimes involving presumptive commits to prison for intrafamilial sexual abuse.  (S.F. No. 2699, Sen. Limmer)

Section 14 creates a new enhanced felony penalty (statutory maximum sentence of up to four years’ imprisonment and/or $5,000 fine) for a violation of section 609.746, subdivision 1 (surreptitious intrusion), if the offense involved use of a recording device, the victim was a minor, the offender was more than 36 months older than the victim, the offender knew or had reason to know of the minor’s presence, and the offense was committed with sexual intent.  A person convicted under this provision must also register as a predatory offender under section 2.  (S.F. No. 2862, Sen. Rosen)

Sections 15 to 21 amend the various child pornography crimes. Add enhanced felony statutory maximum penalties for those crimes if the crime involved a victim under the age of 13. Also adds enhanced statutory maximums for repeat offenders and offenders who are registered predatory offenders. (Some of these enhancements (the repeat offender and the predatory offender ones) are already present for some of the offenses.  The net effect of these changes are to apply all three enhancements to each child pornography crime.) Also, extend the conditional release term for repeat child pornography offenders.  (S.F. No. 2699, Sen. Limmer)

Section 22 requires the Minnesota Sentencing Guidelines Commission to comprehensively review and consider modifying how the Guidelines and the Grid treat child pornography crimes.  (S.F. No. 2699, Sen. Limmer)

Section 23 transfers $125,000 from the general fund to the peace officer training account to address a projected deficiency in the account.  (Original concept from S.F. No. 3223, Sen. Ingebrigtsen)

Section 24 appropriates: (1) $6,600,000 for the Department of Corrections’ offender health care contract deficiency; (2) $300,000 to the Bureau of Criminal Apprehension for two new drug scientists; and (3) $1,000,000 for reimbursement grants to public school districts for physical security audits.  Sets the budget tails for these items.  (Clauses (1) and (2) are based on Governor’s recommendations, clause (3) is from S.F. No. 3068, Sen. Ruud)

Section 25 directs the revisor to make cross-referencing changes to statutes and rules relating to 2016 changes to the criminal vehicular operation crime.  (Floor amendment, Sen. Limmer)

Article 22 – Health Care

Section 1 (3.3005, subdivision 8) requires state agencies when making a request to the Legislative Advisory Commission, to spend federal funds to provide with the request a narrative description of the commitments required that includes whether continuation of any FTE positions will be a condition of receiving the federal funds.

Section 2 (62J.90) establishes the Minnesota Health Policy Commission to make recommendations to the legislature on changes in health care policy and financing.  The commission is required to: (1) compare private market health care costs and public health care program spending to that of other states; (2) compare the private health care market care costs and public health care program spending in any given year to its costs and spending in previous years; (3) identify factors that influence and contribute to Minnesota’s ranking for private market health care costs and public health care program spending; (4) monitor efforts to reform the health care delivery and payment system to understand emerging trends in the health insurance market; (5) make recommendations for health care reform; and (6) conduct any additional reviews as required by the legislature. This commission expires June 15, 2024.

Section 3 (256.01, subdivision 17a) specifies that the Commissioner of Human Services may only transfer money from the general fund to another fund for routine administrative operations and may not transfer money from the general fund to any other fund for other purposes without the approval from the Commissioner of Management and Budget.

Section 4 (256B.04, subdivision 14) prohibits the commissioner from utilizing volume purchasing through competitive bidding for incontinence products and related supplies.

Section 5 (256B.0625, subdivision 3b) adds community paramedics to the health care providers who can receive medical assistance (MA) reimbursement for telemedicine services.  This section also creates an exception to the telemedicine visit limit if the telemedicine services are for the treatment and control of tuberculosis and are consistent with the best practices specified by the CDC.

Section 6 (256B.0625, subdivision 17, paragraph (c)) requires drivers providing nonemergency medical transportation services (NEMT) who are employed by or subcontractors for seven-county metro-based nonemergency medical transportation providers or taxicabs to individually enroll with the commissioner by January 1, 2019.

Section 7 (256B.0625. subdivision 17d) requires DHS to perform ongoing program integrity audits of NEMT services to ensure that fee-for-service providers are complying with state and federal standards.

Section 8 (256B.0625, subdivision 17e) applies a five-year enrollment exclusion for terminated NEMT providers and requires a one-year probationary period upon reenrollment.

Section 9 (256B.0625, subdivision 17f) requires the commissioner to provide documentation training for providers.

Section 10 (256B.0625, subdivision 58) Paragraph (b) specifies that a provider is not required to provide as part of an EPSDT screening any of the recommendations added on or after January 1, 2017, to the child and teen checkup program schedule in order to receive the full payment reimbursement amount for a complete EPSDT screening.  This paragraph expires January 1, 2021.  Paragraph (c) requires the commissioner to inform the legislature of any new recommendations added to an EPSDT screening after January 1, 2018, that a provider is required to perform to receive full payment.

Section 11 (256B.758) increases the MA reimbursement rate for doula services to $47 per prenatal or postpartum visit up to a total of six visits; and $488 for attending and providing doula services at a birth, beginning July 1, 2018.

Section 12 (Laws 2017, First Special Session chapter 6, article 4, section 61) modifies the capitation payment delay passed last session by exempting from the delay the capitation payment due in May 2021 to managed care organizations for adults without dependent children.

Section 13 (Direction to the Commissioner) requires the commissioner to submit a report to the legislature on the impact on NEMT program integrity of individual driver enrollment in the metro area.

Section 14 (Minnesota Health Policy Commissioner; First Appointments; First Meeting) specifies that the Legislative Coordinating Commission shall make the first appointments to the Minnesota Health Policy Commission by January 15, 2019.

Section 15 (Pain Management) requires the Health Services Policy Committee, established by the Commissioner of Human Services, to evaluate the integration and make recommendations based on best practices for effective treatment for musculoskeletal pain provided by certain health practitioners and covered by medical assistance.  Requires the commissioner to consult with certain health practitioners and report to the legislature due August 1, 2019, on the commissioner's recommendations. The final report to the legislature must include a pilot program to assess integrated nonpharmacologic, multidisciplinary treatments for managing musculoskeletal pain.

Section 16 (Repealer) Paragraph (a) repeals section 256B.0625, subdivision 31c, (preferred incontinence product program passed last session). Paragraph (b) repeals the prohibition on the commissioner's use of a broker for the purposes related to NEMT services for ambulatory persons.

Article 23 - Health Department

Section 1 (62D.115, subdivision 4) Paragraph (a) requires a health maintenance organization upon written request of an enrollee or an individual who made a quality of care complaint to provide a record of the resolution of the complaint to the Commissioner of Health.  The record provided to the commissioner is limited to information on the resolution of the complaint, the conclusion of the investigation, and any corrective action plan. 

Paragraph (b) specifies that information that does not identify individuals is accessible to the enrollee or individual who made the complaint.  Also specifies that if the records are subject to peer protection confidentiality, they are not subject to discovery or subpoena, may not be included or referenced in a court file, introduced into evidence, or used to obtain an affidavit of expert review.

Sections 2 through 11 make modifications to the wells and borings regulations.

Section 2 (103I.005, subdivision 2) modifies the definition of "boring" to include temporary borings.

Section 3 (1031.005, subdivision 8a) specifies that an environmental well does not include an exploratory boring.

Section 4 (103I.005, subdivision 17a) adds a definition of a temporary boring.

Section 5 (103I.205, subdivision 1) changes environmental well to a temporary boring and states that notification is not required before construction of a temporary boring.

Section 6 (103I.205, subdivision 4) specifies who needs a well contractor’s license to drill, construct, repair, or seal a well or boring. Removes the license exemption for a licensed plumber who is repairing submersible pumps or water pipes associated with a well water system if the repair location is within an area where there is no licensed well contractor within 50 miles, and the licensed plumber complies with all relevant selections of plumbing code.

Section 7 (103I.205, subdivision 9) extends the period of time for reporting verification information to the commissioner from 30 days to 60 days following completion or sealing of a well or boring.

Section 8 (103I.208, subdivision 1) extends the well sealing fee of $75 to each boring, except that a single $75 fee for all temporary borings recorded on the sealing notification for a single property sealed within 72 hours of start of construction and exempts temporary environmental borings less than 25 feet in depth from the notification and fee requirements of this chapter.  Also specifies that there is no fee required for construction of a temporary boring.

Section 9 (103I.235, subdivision 3) states that section 103I.235 (disclosure of location of wells at property sale) does not apply to temporary borings or unsuccessful wells that have been sealed by a licensed contractor in compliance with chapter 103I.

Section 10 (103I.301, subdivision 6) states that a person may not seal a boring until a notification of the proposed sealing is filed as prescribed by the commissioner and exempts from the notification requirements of chapter 103I temporary borings that are less than 25 feet in depth.

Section 11 (103I.601, subdivision 4) requires an explorer to submit to the Commissioner of Health ten days before beginning exploratory boring notification of the proposed boring map and a fee of $275, and submit to the Commissioners of Health and Natural Resources a county road map on a single sheet of paper that is 8 ½ by 11 inches in size showing the location of each proposed exploratory boring. (Current law requires a fee of $275 for each exploratory boring).

Section 12 (144.121, subdivision 1a) includes security screening systems that are used in correctional and detention facilities for security screenings of humans who are in custody of the facility in the list of facilities that use ionizing radiation-producing equipment and are required to be regulated by the Commissioner of Health, including the payment of a base fee of $100 and an additional fee of $100 to the commissioner.

Section 13 (144.121, subdivision 9) exempts the operators of a security screening system from having to meet the examination requirement and the facility from having to meet the inspection requirement and permits a variance in accordance with rules.   This exemption expires when permanent rules are published in the State Register by the Commissioner of Health regarding the security screening systems.

Section 14 (144.397) requires the Commissioner of Health to administer statewide tobacco cessation services to assist individuals who are seeking advice or services to help them quit using tobacco products.  The commissioner is required to establish statewide public awareness activities to inform the public of the availability of the services and encourage the public to use the services.

Section 15 requires a report on the evaluation results for the opioid abuse prevention pilot projects receiving funds in FY 2019 to be submitted to the legislature by December 15, 2021.

Section 16 requires the Commissioner of Health to conduct a low-value health services study that analyzes: (1) the alignment of health care delivery with specific best practices guidelines; and (2) health care services and procedures for the purposes of identifying, measuring and potentially eliminating those services and procedures with low-value and little benefit to patients.

Section 17 requires the Commissioner of Health to provide grants to ambulance services to connect community paramedic teams with patients who have been discharged from a hospital or emergency room following an opioid overdose episode; develop personalized care plans for those patients, and provide follow up services.

Section 18 requires the Commissioner of Health, in consultation with the Commissioners of Human Services and Education, to submit a plan to the legislature to reconstitute the Autism Spectrum Disorder Task Force, including a proposed membership that takes into account all points of view.

Article 24 - Health Coverage

Section 1 (62A.30) provides health care coverage for preventive mammogram screening that includes digital breast tomosynthesis (3D) for enrollees who are at risk for breast cancer.  At risk for breast cancer includes having a family history; testing positive for BRCA1 or BRCA2; having dense breasts; or having a previous diagnosis of breast cancer.

Section 2 (62J.824)  Paragraph (a) requires a provider-based clinic that charges a facility fee to provide notice to a patient that states that the clinic is a part of a hospital and the patient might receive a separate charge or billing for the facility component which may result in a higher out-of-pocket expense.

Paragraph (b) requires a health care facility to prominently post a statement that the provider-based clinic is part of a hospital and the patient may receive a separate billing for the facility.

Paragraph (c) exempts laboratory services, imaging services, and other ancillary services that are provided by staff who are not employed by the health care facility or clinic.

Paragraph (d) defines facility fee and provider-based clinic.

Section 3 (62Q.184) establishes a step therapy override process for enrollees and prescribing health care providers to use if a health plan company restricts coverage of a prescription drug through the use of a step therapy protocol.

Subdivision 1 defines the following terms: clinical practice guideline; clinical review criteria; health plan company; step therapy protocol; and step therapy override. The definition of a health plan company specifies that this does not include a managed care plan or county-based purchasing plan or an integrated health partnership participating in medical assistance or MinnesotaCare.

Subdivision 2 requires the health plan company when establishing a step therapy protocol to consider available recognized evidence-based and peer-reviewed clinical practice guidelines.  Requires a health plan company to provide to an enrollee upon request, the clinical review criteria that is applicable to a specific prescription drug.

Subdivision 3, paragraph (a), requires that if a health plan company restricts coverage for a prescription drug for the treatment of a medical condition by requiring the use of a step therapy protocol, enrollees and prescribing providers must have access to a process to request a step therapy override.  The override process must be accessible through the health plan company’s Web site.  Specifies the conditions where a health plan company must grant an override.

Paragraph (b) states that once an override has been granted, the health plan company must authorize coverage for the prescription drug if the drug is covered under the enrollee’s health plan.

Paragraph (c) permits the enrollee or the enrollee’s prescribing health care provider if designated by the enrollee, to appeal a denial of a step therapy override using the complaint process established under sections 62Q.68 to 62Q.73.

Paragraph (d) If a health plan company denies an override request or an appeal of a denial, the health plan company’s decision must state why the override request did not meet the condition cited by the override request and must provide information on how to request an external review under section 62Q.73.

Paragraph (e) requires a health plan company to respond to an override request or an appeal within five days of receipt of a complete request, or within 72 hours if there are exigent circumstances.  If a health plan company does not respond within these time limits, the request is granted and is binding on the health plan company.

Paragraph (f) requires step therapy override requests to be accessible to health care providers and providers must be able to submit the requests electronically through secure electronic transmission.

Paragraph (g) states that nothing in this section prohibits a health plan company from requesting relevant documentation from an enrollee’s medical record in support of a step therapy override request or from requiring an enrollee to try a generic equivalent drug or a biosimilar prior to providing coverage for the equivalent branded prescription drug,

Paragraph (h) specifies that this section is not to be construed to allow the use of a drug sample for the primary purpose of meeting the requirements for a step therapy override.

Section 4 (151.214) states that no contract between a health plan company or a pharmacy benefits manager and a pharmacy may prohibit a pharmacist from informing a patient when the amount the patient may be required to pay under the patient’s health plan for a particular drug is greater than the amount the patient would be required to pay if purchased out-of-pocket at the pharmacy’s usual and customary price.

Section 5 (151.71) requires a contract between a pharmacy benefits manager and a pharmacy to permit for the synchronization of prescription drug refills for a patient on at least one occasion per year if the following conditions are met:

  1. The drugs are covered under the patient’s health plan or have been approved by a formulary exceptions process;
  2. The drugs are maintenance medications and have one or more refills available at time of synchronization;
  3. The drugs are not Schedule II, III or IV controlled substances;
  4. The patient meets all utilization management criteria ;
  5. The drugs are of a formation that can be safely split into short fill periods; and
  6. The drugs do not have special handling or sourcing needs that require a single designated pharmacy to fill or refill the prescription.

Section 6 (152.105, subdivision 2) permits the sheriff of each county to implement a medicine disposal program as an alternative to the requirement that each sheriff maintains at least one collection receptacle for the disposal of prescription drugs.  Defines a medicine disposal program as providing educational information and making materials available for safely destroying unwanted prescription drugs.

Article 25Health-Related Licensing Boards

Sections 1 through 29 convert the allied health professionals regulated by the Board of Medical Practice (physician assistants, acupuncture practitioners, respiratory care practitioners, traditional midwives, registered naturopathic doctors and genetic counselors) to a licensure renewal cycle that is based on birth month.  These sections do the following for each occupation:

Specifies that a licensee whose license has lapsed before January 1, 2019, and is seeking to regain licensed status after January 1, 2019, shall be treated as a first-time licensee for purposes of establishing a license renewal schedule and shall not be subject to the license cycle conversion provisions.

Requires a licensee to maintain a correct mailing address with the board.  Specifies that placing the license renewal application in the mail constitutes valid service and failure to receive renewal documents does not relieve a licensee of the obligation to comply with this section.

Specifies that the name of the licensee who does not return a complete renewal application with the applicable fee within the time period required shall be removed from the list of individuals authorized to practice during the current renewal period.

Converts the license renewal cycle to an annual cycle where renewal is due on the last day of a licensee’s month of birth beginning for licensees, beginning January 1, 2019, for licensees who are licensed before December 31, 2018.  Specifies the conversion of license renewal cycle for current licenses and for noncurrent licenses.  Specifies that after the conversion renewal cycle, subsequent renewal cycles are annual and begin on the last day of the month of the licensee’s birth.

Establishes and adjusts license fees for the conversion license period.

Sections 30 through 36 update changes governing background checks conducted by health-related licensing boards and procedures relating to temporary suspensions for actions that present an imminent risk of serious harm.

Section 30 (214.075, subdivision 1) specifies that the following individuals must submit to a criminal background check: (1) applicants for initial licensure or licensure by endorsement; (2) applicants seeking reinstatement or relicensure if more than one year has elapsed since the applicant’s license or registration expiration date; or (3) licensees applying for eligibility to participate in an interstate licensure compact.  Specifies that an applicant’s criminal background check results are valid for one year from the date the results were received by the board.

Section 31 (214.075, subdivision 4) removes the 90-day time period for an applicant to submit fingerprints.

Section 32 (214.075, subdivision 5) modifies the reference to the results of the criminal background checks from criminal justice information checks to criminal history records check.

Section 33 (214.075, subdivision 6) permits the licensing board to require an alternative method of criminal history checks for an applicant or licensee who has submitted at least two sets of fingerprints that are unreadable by the BCA or FBI. (Currently, three sets of unreadable prints must have been sent).

Section 34 (214.077) clarifies that in a contested care hearing regarding a temporary license suspension if an administrative law judge’s report and recommendation is for action, the board is required to issue a final order within 60 days of receipt of an administrative law judge’s report and recommendations, and if a final order is not issued within that time the temporary suspension shall be lifted.

Section 35 (214.10, subdivision 8) specifies that boards shall not exchange criminal history information with other states.

Section 36 (364.09) exempts from chapter 364 that governs the rehabilitation and employment of criminal offenders any license, registration, or permit that has been denied or revoked by a health-related licensing board.

Section 37, paragraph (a), repeals section 214.075, subdivision 8, (requiring a plan to develop criminal background checks for current licensures by January 1, 2017).  Paragraph (b) repeals obsolete rules associated with license renewal.

Article 26 -Prescription Monitoring Program

Section 1 (151.065, subdivision 7) specifies that fees collected under this section by the Board of Pharmacy shall be deposited into the special government special revenue fund.

Section 2 (152.126, subdivision 6) Paragraph (d) requires, beginning January 1, 2020, prescribers to access the data of the prescription monitoring program (PMP) to the extent the data relates to the patient before prescribing an initial prescription for a Schedule II through IV opiate controlled substance to the patient, and at least once every three months if the patient is receiving an opiate for treatment of chronic pain or participating in medically assisted treatment for opioid addiction. 

Paragraph (e) states that paragraph (d) does not apply if: (1) the patient is receiving hospice care; (2) the patient is being treated for pain due to cancer or the treatment of cancer; (3) the prescription is for a number of doses that is intended to last the patient five days or less, and is not subject to a refill; (4) the prescriber and patient have an ongoing doctor/patient relationship or a duration of longer than a year; (5) the prescription is issued within 14 days following surgery or three days following oral surgery; (6) the control substance is prescribed or administered to a patient who is admitted to an inpatient hospital; (7) the controlled substance is lawfully administered by injection, ingestion, or other means to the patient by the prescriber, pharmacist, or the patient at the direction of the prescriber and in the presence of the pharmacist or prescriber; (8) it is not possible for the prescriber to review the data due to an emergency; or (9) the prescriber is unable to access data due to operational or other technological failure of the PMP, if the failure is reported to the board.

Section 3 (152.126, subdivision 10) authorizes the Board of Pharmacy to modify its contract with its vendor for the PMP to allow the vendor to provide a service to prescribers and pharmacies that allows them to access the PMP data from within the electronic health records system or pharmacy software used by those prescribers or pharmacies.  It also authorizes the board to collect an annual fee from each prescriber or pharmacist who accesses the PMP through the service offered by the vendor, not to exceed $50 per user.  This fee is to be deposited in the special government special revenue fund and is appropriated to the board. 

Article 27 -Protection of Vulnerable Adults

Section 1 (144A.53, subdivision 2, paragraph (c)) requires the director of the Office of Health Facility Complaints (OHFC) to disclose to a vulnerable adult or an interested person whether the OHFC has received a report or complaint involving the vulnerable adult and provide a redacted version of the initial report or complaint. This section also creates a new definition of “interested person” for the purposes of these disclosures.

Section 2 (Direction to the Commissioner) requires the commissioner of health to institute a number of administrative changes at the Office of Health Facility Complaints that were recommended by the recent report issued by the Office of the Legislative Auditor.

Section 3 (Direction to the Commissioner of Health) requires the commissioner of health to submit quarterly reports to the legislature containing measures and analysis of the Office of Health Facility Complaints’ response to reports of maltreatment of vulnerable adults.

Section 4 (Direction to the Commissioners of Health and Human Services) requires the commissioner of health and of human services to collaborate on an annual report concerning each department’s response to allegations of maltreatment of vulnerable adults and other measures of the departments’ licensing functions of settings and providers serving vulnerable adults.

Article 28 – Children and Families; Licensing

Sections 1 to 3, 5, 6, and 8 to 10, are provisions necessary to comply with the federal Child Care and Development Block Grant (CCDBG) requirements.

Sections 1 and 5 (119B.011, subd. 13b, 119B.025, subd. 1) establish an expedited application process for homeless families applying for the child care assistance program (CCAP). Proof of eligibility must be submitted within three months of the application date.

Section 2 (119B.011, subd. 19) requires all providers, including out of state providers receiving CCAP, to meet federal health and safety requirements as certified by the licensing state or tribe, or as determined by receipt of CCDBG funds in the licensing state.

Section 3 (119B.011, subd. 20) modifies assistance for transition year families to ensure that families who received MFIP for at least one, instead of three, of the last six months, will quality for transition year child care.

Section 4 (119B.02, subd. 7) requires that the commissioner conduct the child care market survey every three years, instead of biennially, and conduct the next survey of prices charged by child care providers in Minnesota in fiscal year 2021.

Section 6 (119B.03, subd. 9) eliminates the six-month limit on the portability pool assistance. The portability pool is funded with up to five percent of the annual appropriation for basic sliding fee, and provides continuous child care assistance for eligible families who move to a different county in Minnesota.

Section 7 (119B.06, subd. 1) modifies the administration of the child care block grant, specifically the discretionary amounts provided for federal fiscal year 2018 and reserved for quality activities. The commissioner must ensure that funds are prioritized to increase the availability of training and business planning assistance for child care providers.

Sections 8 and 9 (119B.09, subd.1 and 119B.095, subd. 2) modify provisions to allow families to remain eligible for CCAP until the redetermination, when a child turns 13 years old or a child with a disability turns 15 years old.

Section 10 (119B.13, subd. 1) amends the child care assistance provider rates.  The maximum rate is the greater of the percentile calculated by the commissioner of the most recent rate survey or the rates in effect at the time of the update.  For the first update on February 22, 2019, the commissioner is required to determine the percentile of the most recent survey, not to exceed the 25th percentile, that can be funded using the CCDBG and any subsequent federal appropriation for FY2019, after complying with other federal CCDBG requirements enacted in 2018.  Beginning in fiscal year 2022, the commissioner, in consultation with the Commissioner of Management and Budget, shall determine the amount of federal funding for child care assistance rates, not to exceed the 25th percentile, so the rates are paid only with federal CCDBG funds.  If federal funds are not sufficient to maintain the enacted compliance requirements, the commissioner must adjust maximum rates to remain within the limits of available funds.

Section 11 (245A.06, subd. 8) amends the Department of Human Services Licensing Act, specifically Minnesota Statutes, section 245A.06, by eliminating the requirement that a child care provider or child care center post a correction order in a conspicuous place.

Section 12 (245A.175) amends the Department of Human Services Licensing Act, specifically the child foster care training requirements related to fetal alcohol spectrum disorders (FASD).  This section requires that, except for providers and services under Minnesota Statutes, chapter 245D, the annual training include at least one hour of training on FASD, which must be counted towards the 12 hours training required per year.

Section 13 (245C.14) prohibits the commissioner from disqualifying an individual from direct contact or access to a person receiving services from a license holder based on a record of conviction that was expunged or any underlying fact or element from an expunged record of arrest, criminal charge, or conviction and the order was directed specifically to the commissioner.

Section 14 (245C.15, subd. 6) adds a new subdivision in the section of law listing the disqualifying crimes in the background study chapter of law.  The new language states that the commissioner shall not disqualify an individual subject to a background study based on a record of conviction that was expunged or any underlying fact of an element of the expunged conviction.

Section 15 (245C.16, subd. 1) modifies the law in which the commissioner determines immediate risk of harm to persons served by a program.  The new language provides that this section does not apply to a background study subject who has a conviction that was expunged and the order was directed specifically to the commissioner.

Sections 16 and 17 (245C.22, subd. 8 and 245C.24, subd. 5) add a new subdivision to the section of law relating to the review and action on a reconsideration request and the section of law setting aside a disqualification or requesting a variance, respectively.  The new subdivisions state that the commissioner shall not disqualify an individual subject to a background study based on a record of conviction that was expunged and the order was directed specifically to the commissioner, or any underlying fact or element from an expunged record directed specifically to the commissioner.

Section 18 (254A.035, subd. 2) extends from June 30, 2018, to June 30, 2023, the American Indian Advisory Council.

Section 19 (256.01, subd. 14b) modifies the  subdivision related to American Indian child welfare projects, by requiring the commissioner and the Red Lake Nation, in consultation with Beltrami, Clearwater, and Lake of the Woods Counties, to develop a proposal to transfer responsibility to the tribe for child welfare and child protection services provided to tribal members.  The proposal is due by January 15, 2019.

Section 20 (256K.45, subd. 2) provides that the commissioner is exempt from preparing the required report under this section of law, and instead update the 2007 report on homeless youth under section 27.

Section 21 (256M.41, subd. 3) modifies the subdivision that distributes funds to counties for child protection services. This section eliminates the 20 percent withhold, so the counties receive 100 percent of the allocation when funds are distributed. Under current law, 20 percent of the funds are withheld, and distributed to counties after the commissioner determines the county’s compliance with performance standards.

Section 22 (256M.41, subd. 4) requires the commissioner to set child protection measures and standards.  An underperforming county must demonstrate that the county has designated sufficient funds and implemented a reasonable strategy to improve child protection performance. The commissioner may redirect up to 20 percent of a county’s funds toward the performance improvement plan for a county not demonstrating significant improvement, or impose sanctions.

Section 23 (256N.24, subd. 2a) requires the Commissioner of Human Services, in consultation with representatives from communities of color and others, to review and revise the Minnesota assessment of parenting for children and youth (MAPCY) tool that is used to assess children to determine eligibility for benefits under Northstar Care for Children, and incorporate changes that take into consideration different cultures and the diverse needs of communities of color.

Section 24 (260.835, subd. 2) extends from June 30, 2018, to June 30, 2023, the American Indian Child Welfare Advisory Council.

Section 25 (260C.008, subd. 1) lists the rights of siblings who are placed in foster care.

Subdivision 2 provides the interpretation of the rights, which are established for the benefit of siblings in foster care, and the rights do not replace or diminish other rights, liberties, and responsibilities that may exist relative to children in foster care.

Subdivision 3 requires that a copy of the rights be provided to a child who has a sibling at the time the child enters foster care, and the foster care provider.  The copy must contain the contact information for the Office of Ombudsman for Families and a statement explaining how to file a complaint with the office.

This section is effective for children entering foster care on or after August 1, 2018. Subdivision 3 is effective August 1, 2018, for all children in foster care.

Section 26 (260C.81) establishes the Child Welfare Training Academy.  The academy must be administered through five regional hubs, and each hub shall deliver training targeted to the needs to of the region.  Each child welfare worker and supervisor shall be required to complete a certification including a competency-based knowledge test and a skills demonstration after initial training, and biennially thereafter. The commissioner shall develop ongoing training requirements and a method for tracking certifications. The commissioner shall enter into a partnership with the U of M to collaborate in the administration of the workforce training, and enter into a partnership with one or more agencies to provide consultation, subject matter expertise, and capacity building in organizational resilience and child welfare workforce well-being. Subdivision 2 allows the commissioner to adopt rules necessary to establish the child welfare training academy.

Section 27 (626.556, subd. 17) requires the commissioner to partner with select Minnesota counties and tribal child welfare agencies, including Hennepin County and at least one rural county, and other counties must represent a balance around the state, to make recommendations for the creation of a safety and risk-based framework that will improve appropriate, timely, and adequate responses to a child’s safety needs using a trauma-informed lens. The commissioner, county, and tribal child welfare agencies shall review the child maltreatment statutes, administrative rules, guidelines, and practice, and make recommendations on modifications needed to implement a safety and risk-based framework and a response system that enhances the protection of children. In forming the recommendations, the commissioner shall consult with county attorneys, law enforcement and others.  Under paragraph (b), the commissioner is required to make the recommendations by January 31, 2019.

Section 28 requires the Commissioner of Human Services to update the information in the 2007 Legislative Report on homeless youth in lieu of the biennial homeless youth report under chapter 256K.  In developing the updated report, the commissioner may use existing data, studies, and analysis provided by the state, county, and other entities, including the different sources listed in the bill. The report may include three key elements, which are listed in subdivision 2. The report is due February 15, 2018.

Section 29 requires the commissioner to form an African American child welfare work group within the implementation work group for the Governor’s Child Protection Task Force to help formulate policies and procedures relating to African American child welfare services. The work group shall report its findings and recommendations by February 1, 2019.

Section 30 requires the commissioner to work with six counties, which must include Hennepin County and at least one rural county, and other counties must represent a balance around the state, to review the background study and licensing processes for relative foster care, and report recommendations by January 31, 2019.

Section 31 requires the Commissioners of Human Services and Health, and the Revisor of Statutes to draft legislation to consolidate into one new state agency the licensing, background study, and related oversight functions that are currently in DHS and MDH.  This would include the Office of Inspector General, the Minnesota Adult Abuse Reporting Center, and the Office of Health Facility Complaints.  The legislation is due to the chairs and ranking minority members of the committees having jurisdiction over human services issues by December 15, 2018, with the new agency beginning operations on July 1, 2019.

Article 29 – State-Operated Services; Chemical and Mental Health

Sections 1 and 2 (245.4889, subds. 1 and 1a) amend the children’s mental health act. Section 1 strikes the clause that allows school-linked mental health grants to be used for transportation, because it is moved to the next section, and adds a clause requiring a grantee to obtain all available third-party reimbursement sources, which is current practice.

Section 2 (245.4889, subd. 1a) lists the eligible applicants for school-linked mental health grants, and provides that allowable expenses include transportation, and equipment and set-up fees to deliver services via telemedicine.

Section 3 (246.0415) modifies the state-operated services chapter of law, by requiring that clients who exhibit assaultive or violent behavior, have severe behavior issues, or are involved with or are at risk of being involved with the criminal justice system be placed in or moved to a setting that meets the client’s needs and ensures the safety of the public. Clients must not be placed in a residential setting that jeopardizes the safety of others until the commissioner determines that the client is low risk for committing violent acts.

Sections 4 and 5 (254B.02, subd. 1 and 254B.06, subd. 1) strike language that allows the Department of Human Services to use consolidated chemical dependency treatment fund (CCDTF) revenues for administrative purposes.

Section 6 establishes the person-centered telepresence platform expansion work group.  Subdivision 1 requires the commissioner to convene the work group to explore opportunities to collaborate and expand strategies for person-centered innovation using Internet telepresence in delivering health and human services, as well as related educational and correctional services.  This subdivision lists the members that the Commissioner of Human Services, in consultation with the Commissioner of Health, shall appoint, and lists the duties of the work group in subdivision 3.  A report is due by January 15, 2019, under subdivision 4, and the work group expires on January 16, 2019, under subdivision 5.

Article 30 – Community Supports and Continuing Care

Section 1 (245A.03, subdivision 7, paragraph (a), clause (7)) extends an existing foster care licensing moratorium from June 30, 2018, to June 30, 2019, for certain previously unlicensed setting to become licensed.

Clause (8) excludes from the foster care license moratorium a vacancy created in a foster care setting that has been granted a foster care licensing moratorium exception under clause (7).

Section 2 (245A.11, subdivision 2a, paragraph (g)) amends the Department of Human Services Licensing Act, specifically the provision determining capacity for adult foster care settings. This section modifies the requirements in paragraph (f) related to the commissioner’s authority to issue an adult foster care license with a capacity of five adults, by requiring that the facility be licensed before June 20, 2021, instead of March 11, 2011. Paragraph (g) provides that the commissioner shall not issue a new foster care license under paragraph (f) after June 30, 2021, instead of June 30, 2019. The commissioner is required to allow a facility with an adult foster care license before June 30, 2021, instead of June 30, 2019, to continue with a capacity of five adults provided the license holder complies with the requirements in paragraph (f).

Section 3 (245D.03, subdivision 1) clarifies which services are governed by Minnesota Statutes, chapter 245D, licensing standards by including the medical assistance waivers under which the services are provided, and changes the name of behavioral support services to positive support services.

Section 4 (245D.071, subdivision 5) amends the home and community-based services standards related to service planning for intensive support services.

Paragraph (a) is editorial.

Paragraph (b) requires a licensed provider of intensive home and community-based services, when conducting a service plan review, to include and document a discussion of how a person receiving intensive services might use technology to help the person meet the person’s goals. (In 2017, the legislature passed identical language for the purposes of initial service planning.)

Sections 5 – 7 change the name of behavioral support services to positive support services, amend the home and community-based services standards related to the qualifications for individuals providing positive support services, and make other conforming and clarifying changes.

Section 5 (245D.091, subdivision 2, clause (12), item (vi)) allows an individual with master’s degree or higher and a demonstrated expertise in positive supports to qualify as a positive supports professional.

Section 6 (245D.091, subdivision 3)

Paragraph (a), clause (3), permits a board-certified behavior analyst or assistant behavior analyst to qualify as a positive support analyst.

Paragraph (b), clause (1), modifies additional qualifications for a positive support analyst be requiring four years of supervised experience that includes specific tasks.

Paragraph (b), clause (2), allows a person who meets the other positive support analyst qualifications to qualify as a positive support analyst if the person receives the required training within 90 days following hire and adds additional training requirements.  Under current law, such a person does not qualify as a behavior analyst until after the training is completed.

Paragraph (c) allows a person who qualifies as a positive support professional to qualify as a positive support analyst without meeting the training requirements of paragraph (b).

Section 7 (245D.091, subdivision 4)

Paragraph (b) allows a person who meets the other positive support specialist qualifications to qualify as a behavior specialist if the person receives the required training within 90 days following hire.  Under current law, such a person does not qualify as a behavior specialist until after the training is completed.  The bill does change the existing training requirements.

Paragraph (c) allows a person who qualifies as a positive support professional to qualify as a positive support specialist without meeting the training requirements of paragraph (b).

Sections 8 and 14 - 21, amend the long-term care consultation services statute, as well as the statutes governing the elderly waiver, the developmental disability waiver, and the disability waivers related to assessments.

Section 8 (256B.0659, subdivisions 3a) clarifies that lead agencies may continue to use legacy assessment tools for PCA assessments.

Section 9 (256B.0659, subdivision 11, paragraph (d)) specifies the requirements a personal care attendant must meet in order for the services the personal care attendant provides to qualify for an existing enhanced rate.

Section 10 (256B.0659, subdivision 17a) codifies an existing enhanced rate for personal care attendant services provided to individuals requiring 12 or more hours of service.

Sections 11 and 13 (256B.0659, subdivisions 21 and 28) require provider agencies to document whether a personal care attendant has received the training that would qualify the services the personal care attendant provides for an enhanced rate.

Section 12 (256B.0659, subdivision 24, clause (15)) requires a provider agency to pass through the entire value of the enhanced rate in the form of wages and benefits to the personal care attendants who provide the services that qualify for the enhanced rate.

Section 14 (256B.0911, subdivision 1a, paragraph (b)) removes from the MnCHOICES assessment process service eligibility determinations for home care nursing and reassessments for people with developmental disabilities receiving only Rule 185 case management services, and also removes long-term care consultation services (otherwise known as a MnCHOICES assessment) as the required process for determining whether the family of a minor with a disability is eligible for a support grant.

Section 15 (256B.0911, subdivision 3a, paragraph (a)) makes conforming changes by striking from the MnCHOICES statute references to home care nursing.

Paragraph (c) requires the MnCHOICES assessment process to be conversational in nature.

Paragraph (d) removes a requirement that a legal representative of a person receiving a MnCHOICES assessment be physically present during an assessor’s face-to-face assessment of the person seeking long-term care, and permits the legal representative to participate in the assessment remotely instead.

Paragraph (e) removes the existing requirement that a MnCHOICES assessor complete a community support plan within 40 calendar days of the assessment. DHS will determine a new deadline for completing the community support plan, but the total time for the assessor to complete the community support plan and the case manager to complete the coordinated service and support plan must not exceed 56 days.

Paragraph (j), clause (9), requires a certified assessor to point out in the assessment documents the location of the statement concerning the person’s right to appeal the results of an assessment.

Paragraph (k) allows the results of a MnCHOICES assessment to establish service eligibility for developmental disability waiver services for up to 60 days from the time of the assessment. Paragraph (k) interacts with existing paragraph (m) to permit a service eligibility update for developmental disability waiver services to extend the validity of a MnCHOICES assessment for an additional 30 days. These changes align the service eligibility timelines for developmental disability waiver services with the timelines for the other home and community-based waiver and alternative care services.

Section 16 (256B.0911, subdivision 3f, paragraph (a)) requires a certified assessor to review a person’s most recent assessment prior to a reassessment, and requires DHS to establish timelines for a MnCHOICES assessor, following an annual MnCHOICES reassessment, to complete an updated coordinated support plan and a case manager to complete an updated coordinated service and support plan.

Section 17 (256B.0911, subdivision 5, paragraph (c)) requires the Commissioner of Human Services, in cooperation with lead agencies, to develop and collect data on a set of measures of increasing efficiency in the MnCHOICES assessment process, and to report an analysis of that data to lead agencies and to the Legislature.  Paragraphs (a) and (b) contain existing requirements that the commissioner make the assessment process more efficient.  This paragraph requires the commissioner to demonstrate that the process is becoming more efficient.

Sections 18 – 19 and 22 (256B.0915, subdivision 6, paragraph (a), clause (1); 256B.092, subdivision 1b, paragraph (a), clause (1); and 256B.49, subdivision 13, paragraph (a), clause (1)) remove the current ten-day deadline for case managers to complete coordinated service and support plans for people receiving any home and community-based waiver services or alternative care.  DHS will determine a new deadline for completing coordinated service and support plans, but the total time for a MnCHOICES assessor to complete the community support plan and the case manager to complete the coordinated service and support plan must not exceed 56 days.

Section 20 (256B.092, subdivision 1g) amends the developmental disability waiver statute to permit individuals who are currently receiving only Rule 185 case management services to make an informed choice to decline a MnCHOICES reassessment.

Section 21 (256B.093, subdivision 1) extends the Traumatic Brain Injury Advisory Committee for an additional five years. 

Section 23 (256B.4914, subdivision 2) adds a definition of “direct care staff” for the purposes of data collection and reporting requirements in subdivisions 10 and 10a.

Section 24 (256B.4914, subdivision 3) makes conforming and editorial changes.

Section 25 (256B.4914, subdivision 4) makes conforming changes to cross-references.

Section 26 (256B.4914, subdivision 5, paragraph (k)) adds a competitive workforce factor to the framework rates calculated under the disability waiver rates system (DWRS). The competitive workforce factor decreases over time.  The scheduled implementation dates, factor percentage, and the average estimated rate increase are as follows:

  • beginning January 1, 2019 (2nd ½ of FY 19), the competitive workforce factor is 8.35, resulting in an estimated average rate increase over Feb. 2018 forecasted rates of +7%;
  • beginning July 1, 2019 (FY 20), the competitive workforce factor is 5.5, resulting in an estimated average rate increase over Feb. 2018 forecasted rates of +5.5%; and
  • beginning July 1, 2020 (FY 21) and thereafter, the competitive workforce factor is 1.8, resulting in an estimated average rate increase over Feb. 2018 forecasted rates of +1.6%.

Note: under current law, banding will begin to phase-out during FY 21; or during FY 2020 if federal approval for the seventh year of banding is not received.

Section 27 (256B.4914, subdivision 10) requires the commissioner to collect and evaluate data related to the direct care staff labor market, and expands an existing report to the legislature to include an evaluation of the effectiveness of the competitive workforce factor.

Section 28 (256B.4914, subdivision 10a, paragraph (f)) requires providers to submit to the commissioner labor market data.

Paragraph (g) requires the commissioner to publish an annual report on the labor market for direct care staff that includes an evaluation of the effectiveness of the competitive workforce factor.

Section 29 (256I.03, subdivision 8) amends the definition of “supplementary services” by adding a cross-reference to the requirements under Minnesota Statutes, section 256I.04, subdivision 2h (section 3).

Section 30 (256I.04, subdivision 2b) requires that providers of housing supports confirm in their housing support agreement that the provider will not limit or restrict the number of hours an applicant or recipient chooses to be employed, as specified in subdivision 5 (section 4).

Section 31 (256I.04, subdivision 2h) is a new subdivision that requires providers of supplementary services to ensure that recipients have, at a minimum, assistance with services identified in the individual’s professional statement of need.  This section also requires all providers to maintain case notes with the date and description of services provided to individual recipients.

Section 32 (256I.04, subdivision 5) is a new subdivision that prohibits a provider from limiting or restricting the number of hours an applicant or recipient is employed.

Section 33 (256I.05, subdivision 3) modifies the housing support chapter of law, specifically the limits on rates.  The modification in this section maintains rates for clients who meet the same eligibility criteria, but allow the provider to charge a lower rate for individuals who do not qualify for housing support.

Section 34 (Laws 2014 – Disability Waiver Reimbursement Rate Adjustments) repeals the application of the seven percent after-model rate increase to DWRS rates (i.e., framework rates) while continuing to apply the seven-percent increase to “banded” rates. The effective date of the repeal in January 1, 2019, to coincide with the expected implementation date of the competitive workforce factor.

Section 35 (Laws 2017, First Special Session Chapter 6, Article 1, Section 52) require the commissioner, within the context of an existing reporting requirement, to examine the option for a flat-rate payment methodology for MnCHOICES assessments.

Section 36 (Electronic Visit Verification)

Subdivision 2, paragraph (d), clarifies that home health services, medical supplies and equipment, and home and community-based services will be subject to electronic visit verification requirements.

Subdivision 3 requires the commissioner of human services to make a state-selected electronic visit verification system available to all providers by January 1, 2019.

Subdivision 3a, paragraphs (a) and (b), allows providers to select their own electronic visit verification system provided the system meets various requirements established by the commissioner.

Paragraph (c) clarifies the implementation dates by which providers must implement an electronic visit verification system.

Section 37 (Analysis of Licensing Adult Foster Care) requires an analysis of the licensing of adult foster care settings identified by the commissioner.  The commissioner must engage stakeholders and family members in the process of determining if revisions to the definition of residential program are needed, and in developing recommendations.  A summary of the analysis is due to the legislative committees with jurisdiction over human services issues by February 15, 2019.

Section 38 (Direction to the commissioner) requires the commissioner to continue to apply the entire seven percent after-model rate increase to DWRS rates (i.e., framework rates) between July 1, 2018, and December 31, 2018, even though federal financial participation for this rate increase has been disallowed by the Centers for Medicare and Medicaid Services. This language results in all state funding for the seven percent rate increase for an additional six months.

Section 39 (Direction to the Commissioner) permits an existing housing with services establishment providing customized living services under the BI and CADI waivers to redistribute its service capacity to other establishments.

Section 40 (Direction to the Commissioner) requires the Commissioner of Human Services to ensure that the updates to the MnCHOICES assessment tool incorporates a qualitative approach to interviewing.

Section 41 (Revisor's Instruction) directs the revisor to codify the electronic visit verification language in Minnesota Statutes, chapter 256B.

Section 42 (Repealer) repeals the existing paper-based personal care attendant visit verification requirements upon implementation of the electronic visit verification system.

Article 31 - Human Services Forecast Adjustments

Please see the spreadsheet for this article.

Article 32 - Appropriations

Please see the spreadsheet for this article.

Article 33 - School Safety

Section 1.  Purchase of certain equipment.  Clarifies that current equipment bonding authority includes authority to issue bonds for public announcement systems, emergency communication devices, and other equipment related to violence prevention and facility security.

Section 2.  Safe schools revenue.

Subd. 1.  Safe schools revenue.  Defines safe schools revenue for a school district as the sum of safe schools aid and safe schools levy.

Subd. 2.  Safe schools levy.  Preserves the existing $36/pupil levy authority for school districts and $15/pupil additional levy authority for districts that are members of an intermediate district.

Subd. 3.  Safe schools aid.  Creates a new safe schools aid for school districts equal to $3.65 per pupil unit. Ensures that districts generate at least $25,000 in total safe schools revenue. For fiscal year 2019 only, provides additional aid equal to $7.50 per pupil unit for districts that are members of a cooperative unit other than an intermediate district.

Subd. 3a.  Intermediate district and cooperative unit revenue transfer.  Requires that revenue attributable to a cooperative unit be allocated and transferred to the cooperative unit. Specifies the allowable uses.

Subd. 4.  Safe schools revenue for a charter school.  Creates a new safe schools aid for charter schools equal to $3.65 per pupil unit. Specifies the allowable uses.

Subd. 4a.  Fiscal year 2019 additional safe schools revenue.  For fiscal year 2019 only, provides one-time $16.23 per pupil unit increase to safe schools revenue for school districts and charter schools.

Subd. 5.  Uses of safe schools revenue.  In addition to uses allowable under current law, includes equipment and fees to deliver mental health services via telemedicine, cybersecurity, and debt service under section 123B.61 or 123B.62 in the allowable uses for safe schools revenue. Prohibits safe schools aid from being used to pay for costs associated with improving the school climate.

Subd. 6.  Report.  Requires the commissioner to annually report on district expenditures of safe schools revenue.

Makes this section effective for fiscal year 2019 and later.

Section 3.  Sanneh Foundation.  Appropriates additional money in fiscal year 2019 for grants to the Sanneh Foundation.

Section 4.  Transfer of unspent consolidation transition aid for incentive grants for character development education.  If no school district is eligible, allows the fiscal year 2019 appropriation for consolidation transition aid to be transferred to the department for character education incentive grants.  Makes the section effective June 30, 2018.

Section 5.  Appropriation.  Appropriates money for safe schools revenue, for incentive grants for character education, and for suicide prevention training.

Article 34 - General Education

Section 1.  Alternative pupil.  Includes certain nonpublic pupils in grade 10 in the definition of “alternative pupil” for the purposes of participation in career and technical dual enrollment courses.

Section 2.  Transportation.  Increases the maximum reimbursement rate from 15 cents per mile to the current Internal Revenue Service business standard mileage rate (54.5 cents per mile for 2018). Provides the same reimbursement changes for nonpublic or “alternative” pupils. Clarifies that “necessary transportation costs” include costs of transportation in a private vehicle, bus, taxi, or other shared vehicle.

Section 3.  Eligible pupils.  Extends, for fiscal year 2019 only, the eligibility of certain English learner students with an interrupted formal education to participate in the graduation incentives program and in concurrent enrollment courses.  Makes the section effective July 1, 2018.

Sections 4 to 12.  Simplifies the calculation of referendum and local optional revenue and makes the calculations more transparent by eliminating the annual recalculation of referendum allowances based on the amount of LOR a district receives, and moving the $300 per pupil of referendum revenue available to districts by board resolution to LOR, so that all of the $724 available to districts by board action is in LOR and all of the referendum revenue is voter approved.  To ensure that all districts receive the same amount of aid and levy as under current law, establishes a two-tiered equalization formula for LOR, reduces the number of tiers for referendum equalization from 3 to 2, and reduces the referendum cap is reduced by $300.

Section 13.  General education aid.  Amends the general education aid appropriation to conform with the February 2018 forecast and for the additional aid payable under the amended provisions in this article.

Section 14.  Enrollment options transportation.  Amends the enrollment options transportation aid appropriation to conform with the February 2018 forecast and for the additional aid payable under the amended provisions in this article.

Section 15.  Repealer.  Repeals Minnesota Statutes 2016, section 126C.17, subdivision 9a, effective fiscal year 2020, which outlined the process for board-approved referendum allowance, now “first-tier local optional revenue.” Repeals Minnesota Statutes 2016, section 126C.16, now obsolete.

Article 35 - Education Excellence

Section 1.  Academic Balance Policy.  Requires a school board to adopt and post a written academic balance policy.  The policy must prohibit discrimination against students on the basis of political, ideological, or religious beliefs. The policy must include reporting procedures and disciplinary actions for policy violations.  The policy must be posted on the district's Web site during the 2018-2019 school year, distributed to employees, and included in subsequent editions of the student handbook.  Makes the section effective for the 2018-2019 school year and later.

Sections 2 to 6.  Clarifies in the Minnesota American Indian Teacher Training Program (MNITTP).  Allows the four grantee partnerships to contract with tribal, technical, and community colleges and four-year postsecondary institutions to provide program services and recruit candidates. Eliminates the loan portion of the MNITTP program and clarifies that they are grants, which are equivalent to the current scholarship model. Clarifies student eligibility for MNITTP grants.  Includes prioritization for a student that has origins of original peoples of North American and maintains cultural identification through tribal affiliation or community recognition. Requires priority be given to a student who is tribally enrolled and then to first and second generation descendants. States that eligible programming is for those pursuing education level attainment (AA, BA, MA, Doctoral), and in education areas (educational certification, ECFE or Pre-Kindergarten license, elementary and secondary education, administration, any program that services American Indian students in grades Pre-Kindergarten through grade-12). Gives priority to students progressing towards an AA or a BA.  Requires grantees and contracted partners to hire American Indian work-study students or other staff to provide programming regarding education professions to high school students. At least 80 percent of the grants must be used as student grants and 20 percent may be used for recruitment or administration of student grants.

Section 7.  Prohibiting School Employees from Using Public Resources for Advocacy; Endorsing Timely and Current Factual Information. Requires a school district to adopt a district policy that prohibits employees from using district funds or other publicly funded district resources to advocate for electing or defeating a candidate, or passing or defeating a ballot question. The policy applies when the employee performs the duties assigned to them under the employment contract. The policy doesn’t apply when an employee disseminates factual information consistent with the employee’s contractual duties. Makes the section effective July 1, 2018.

Section 8.  Adult basic education aid for community-based providers.  Allows the International Education Center, the American Indian Opportunities Industrialization Center, and the Minnesota Office of Communication Service for the Deaf to receive additional adult basic education aid for fiscal year 2019.The additional aid equals $400,000 times the ratio of (1) the number of students served by the organization for the previous fiscal year to (2) the sum of the number of students served for the previous fiscal year by all eligible organizations. Makes the section effective for fiscal year 2019 only.

Section 9.  Certain federal, state, and local requirements.  Requires a charter school to adopt an academic balance policy. Makes the section effective for the 2018-2019 school year and later.

Section 10.  Museums and education centers.  Appropriates money in fiscal year 2019 for the Judy Garland Museum for the Children’s Discovery Museum of Grand Rapids.

Section 11.  Race 2 reduce.  Appropriates money in fiscal year 2019 for Race 2 Reduce water conservation programming.

Section 12.  Grow your own pathways to teacher licensure.  Allows $900,000 of the fiscal year 2019 appropriation to be used for grants to school districts or charter schools with at least 30 percent students of color for established nonconventional teacher residency programs. Allows $600,000 of the fiscal year 2019 appropriation to be used for grants to schools or districts with at least 30 percent students of color or are American Indian to provide financial assistance, mentoring, and experiences to enable individuals to become teachers. Allows the grant monies to be used for scholarships, stipends, and to develop innovative residency programs.

Section 13.  Appropriation.  Appropriates money in fiscal year 2019 for online access to music education and academic balance policy review.

Section 14.  Revisor's instruction.  Directs the revisor of statutes to codify the Grow your Own Pathways to teacher licensure session law.

Section 15. Repealer.  (a) Repeals the loan provisions of the MNITTP program. (b) Repeals the vision therapy pilot project grants.

Article 36 - Teachers

Section 1.  Background check.  Requires the Professional Educator Licensing and Standards Board (PELSB) to request a criminal history background check on a licensed teacher who is applying for a renewal license if a background check has not been conducted on the teacher within the last five years. Allows the board to request payment for the background check from a teacher renewing their license. Makes the section effective July 1, 2018.

Section 2.  Background check required.  Requires the school hiring authority to request a new criminal history background check on all employees every three years.  Exempts a school bus driver who has had a background check under section 171.3215 and had their existing bus driver's endorsement renewed.  Allows the school hiring authority to decide not to request a criminal background check on an employee who provides a copy of a background check conducted within the previous 36 months.  Allows a school hiring authority to pay the costs of conducting the background check.

Article 37 - Special Education

Section 1.  Education, residence, and transportation of homeless.  Provides that, for homeless pupils with an individualized education plan (IEP) enrolled in a program authorized by an intermediate district or other cooperative unit, the serving district at the time of the pupil’s enrollment in the program remains responsible for transporting the pupil for the remainder of the school year, unless the initial serving district and current serving district mutually agree that the current serving district will be responsible for providing transportation. Makes this section effective July 1, 2018.

Section 2.  Intermediate School District Mental Health Innovation Grant Program; Appropriation.  Clarifies that a mental health or substance use disorder provider agency is eligible for the mental health innovation grant program.

Section 3.  Transfer of unspent department of education litigation funds for Monticello special education aid.  Directs the commissioner to transfer any funds remaining unspent as of June 30, 2018, from the amounts appropriated for

 
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