2013 Law Summaries - League of Minnesota Cities

LEAGUE OF MINNESOTA CITIES

2013

Law Summaries Final Legislative Action MINNESOTA SESSION LAWS 2013

Copyright © 2013 League of Minnesota Cities. All rights reserved.

Contents Session 2013.....................................................................................1 LMC 2013 Law Summaries..............................................................3 BONDING......................................................................................4 Omnibus bonding bill...................................................................4 CIVIL AND CRIMINAL LAW.....................................................4 Redefining “service animal” under the Minnesota Human Rights Act.....................................................................4 Modifications to the False Claims Act............................................4 Criminal conduct related to emergency calls modified...................4 Contribution actions related to construction lawsuits limited.........5 Crime victim provisions modified.................................................5 Domestic abuse provisions modified..............................................6 Service of process in contested case review....................................7 Money used to facilitate prostitution or sex trafficking forfeiture provided.....................................................................7 Restrictions on indemnification agreements in construction contracts................................................................7 Expanding the limitations period for civil actions involving sexual abuse................................................................7 Prohibiting exclusion from jury service.........................................7 Restrictions on enforceability of liability waivers...........................8 Underage possession or consumption immunity provided for a person seeking assistance for another..................................8 Transit operator assault criminal penalties prescribed......................8 Increased penalties for wildfire arson provided...............................8 COMMERCE.................................................................................8 Department of Commerce technical bill........................................8 Bullion coin dealers regulated........................................................8 Scrap metal processing regulations modifications and criminal penalties establishment...........................................9 DATA PRACTICES.....................................................................13 Safe At Home Program...............................................................13 Omnibus data practices bill..........................................................13 ECONOMIC DEVELOPMENT................................................14 Additional security for development authority loans authorized....14 Jobs, economic development, housing, commerce and energy omnibus budget bill...............................................14 ELECTIONS.................................................................................16 Omnibus elections policy bill......................................................16 EMERGENCY MEDICAL SERVICES.....................................19 Emergency medical responders requirements modified................19 Continuing education requirements for community paramedics modified................................................................19 EMPLOYMENT...........................................................................19 Workers’ Compensation Reinsurance Association requirements modified.............................................................19 Prompt payment of wages modified.............................................19 Limits on reliance on criminal history for employment purposes expanded...................................................................20 Workers’ compensation modifications provided...........................20 Gender-neutral marriage authorized............................................22 State labor contracts ratified.........................................................22 Employee sick leave benefit use expanded...................................23 UNEMPLOYMENT INSURANCE...........................................23

2013 Law Summaries

Unemployment insurance provisions in the omnibus jobs and economic development bill.........................................23 ENVIRONMENT........................................................................23 Technical and consensus drainage law changes made....................23 Metro water group sunset extended.............................................24 180-day process for adopting organized collection replaced with 60-day negotiation period .................................24 Environment trust fund projects..................................................24 Omnibus lands bill......................................................................24 Wastewater and stormwater funding program restrictions reduced .................................................................25 Omnibus environmental budget bill............................................25 Legacy spending bill gets controversial, earns first veto of session.... 27 GENERAL GOVERNMENT.....................................................29 Alternative publication of bids for projects funded by special assessment................................................................29 Met council cost allocation deferred payments permitted ............29 Omnibus state government finance and veterans affairs bill..........29 HEALTH.......................................................................................30 Updating terminology related to persons with disabilities............30 Minnesota Insurance Marketplace Act (MNsure).........................30 HOUSING....................................................................................31 Concentration limits of community-based homes (group homes)... 31 Contract for deed provision in the omnibus economic development budget bill...........................................................31 Dual tracking in foreclosure prohibited........................................31 Housing funding and policy provisions in the omnibus economic development budget bill...........................................31 Housing Improvement Areas extension........................................32 Housing infrastructure bonds provisions in the omnibus economic development budget bill...........................................32 Mortgage foreclosure consultant and originator clarifications .....32 Partial release of mortgage lien....................................................32 Rental eviction appeal timeline and rent escrow changes.............32 LAND USE AND GROWTH MANAGEMENT....................33 Land use provisions in the omnibus jobs bill................................33 LIQUOR.......................................................................................33 Omnibus liquor bill.....................................................................33 LOCAL LAWS..............................................................................34 Officer Tom Decker Memorial Highway Designated...................34 Authority to negotiate certain agreements expanded to Hennepin County...............................................................34 Local power line planning requirements .....................................34 Local law provisions in the omnibus economic development budget bill.....................................................................................34 Local provisions in omnibus transportation policy act..................35 Special freight distribution authorized for west central Minnesota.............................................................35 Disaster aid provided to southwest Minnesota..............................36 MISCELLANEOUS...................................................................36 Campaign finance modifications..................................................36 Determining legislator salary.......................................................36 Geospatial data sharing with government entities.........................36 Hospital reports required.............................................................36

Contents Lawful gambling modifications....................................................37 Metropolitan Council redistricting..............................................37 MN.IT Services..........................................................................37 Motor vehicle fuel payment........................................................38 PENSIONS AND RETIREMENT.........................................38 Pension plan officers required to report certain unlawful acts.......38 Omnibus pensions act.................................................................38 Fire and police department aid threshold for financial reports and audits modified......................................................40 PUBLIC SAFETY.....................................................................41 Omnibus public safety finance act...............................................41 Hazardous substance release report required to local 911 emergency dispatch center.................................................44 Public safety provisions in the omnibus transportation finance act...............................................................................45 ATV use statutes related to ditches and rights-of-way revised.......46 Statewide Radio Board...............................................................46

Felon voting .............................................................................77 June primary...............................................................................77 DNBL-EMPLOYMENT LAW....................................................78 Statewide teacher health insurance pool.......................................78 Minimum wage...........................................................................78 Pregnancy leave...........................................................................78 Prompt payment of wages...........................................................78 Overtime hour threshold.............................................................78 DNBL-ENVIRONMENT............................................................78 Water appropriation fee increase..................................................78 Silica sand mining.......................................................................79 Silica sand mining.......................................................................79 State shoreland rules....................................................................79 Legislative water commission.......................................................79 DNBL-LAND USE AND GROWTH MANAGEMENT.........79 Annexation.................................................................................79 Partial discharge of easements......................................................79

TAXES.......................................................................................47 Omnibus tax bill ........................................................................47

DNBL-PENSIONS AND RETIREMENT................................80 Increase in police and fire pension aid.........................................80

TELECOMMUNICATIONS....................................................67 Broadband provisions included in omnibus jobs, economic development, housing, commerce, and energy law....................67

DNBL-PUBLIC FINANCE........................................................80 Municipal bond interest exemption repeal...................................80

TRANSPORTATION...............................................................68 I-35W bridge remnant steel disposition provided for...................68 Omnibus transportation finance act.............................................68 Special freight distribution authorized for west central Minnesota.............................................................72 Omnibus transportation policy act...............................................72 UTILTIES..................................................................................74 Energy provisions in omnibus jobs act.........................................74

BILLS VETOED BY THE GOVERNOR...............................................76 VETOED: ENVIRONMENT.....................................................76 Legacy spending bill....................................................................76

BILLS THAT DID NOT BECOME LAW (DNBL)................................76 DNBL-AID TO CITIES..............................................................76 Governor’s proposed changes to local government aid program.....76 DNBL-BONDING.......................................................................76 House bonding bill.....................................................................76 “Buy American” steel..................................................................76 DNBL-BUILDLING CODES.....................................................76 Residential sprinklers..................................................................76 DNBL-DATA PRACTICES........................................................76 Classification of license plate reader data......................................76 Unauthorized data access security policies and penalties...............77 Creating an exception to the Open Meeting Law for social media........................................................................77

DNBL-PUBLIC SAFETY...........................................................80 Photo-cop...................................................................................80 DNBL-TAXES.............................................................................80 Nonprofits exempted from city fees and service charges...............80 Levy authority to Southeast Minnesota Multicounty Housing and Redevelopment Authority ..................................80 Labor peace agreement................................................................80 Sales tax base broadening to clothing...........................................81 Homeowner property tax refund.................................................81 Gov. Dayton’s tax recommendations............................................81 Tax hearing and notification law changes....................................81 Tax hearing and notification law changes....................................81 Local Sales Tax Bills.....................................................................81 DNBL-TELECOMMUNICATIONS..........................................81 Telecommunications regulation changes......................................81 DNBL-TRANSPORTATION.....................................................82 Municipal street improvement district authority..........................82 Gas tax increase...........................................................................82 Sales tax on gasoline....................................................................82 Mini-trucks.................................................................................82

Appendix A: How to Estimate Your City’s 2014 Levy Limit.......83 Appendix B: City 2014 LGA Estimates.........................................85 League of Minnesota Cities Intergovernmental Relations Department..................................................................................95

DNBL-ECONOMIC DEVELOPMENT...................................77 Jobs bill extension.......................................................................77 DNBL-ELECTIONS....................................................................77 Early voting................................................................................77 Ranked-choice voting.................................................................77

League of Minnesota Cities

Session 2013

Fiscal Outlook Improves for State, Cities The 88th session of the Minnesota Legislature began on Tuesday, Jan. 8 with new House and Senate majorities, 20 first-term senators, 36 first-term representatives, and the task of crafting a biennial state budget and addressing a projected $1.1 billion deficit for the FY 2014-15 biennium based on the November 2012 state budget forecast. With the House, Senate, and governor’s office controlled by the Democrats, some speculated that the budgetsetting task would be simplified and streamlined. The task was made a bit easier when Minnesota Management and Budget released the semi-annual state budget forecast in late February, which reported a smaller state budget deficit of $627 million. In early May as the Legislature approached the final weeks, the budget remained far from complete as leaders in the House and Senate tussled with Gov. Dayton on the final details of the state budget. In the last days of the session, the House, Senate, and governor reached agreement on the details of the budget and the last bill was passed at midnight on May 20, the day prescribed in the state Constitution for adjournment.

Legislative agenda One indication of the priorities of the Legislature is the content of the first bill introductions. This year, the first introductions included bills to restore the school district aid payment shift, modify and increase the property tax refund system, appropriate funds for the Minnesota investment fund, modify the Minnesota Trade Office, establish the Minnesota Insurance Marketplace, fund all-day kindergarten, and increase the minimum wage. In addition, the League was working with legislators to introduce legislation reflecting city policies. Among the League initiatives was a bill that would allow cities to implement street improvement districts. Another would authorize cities to impose organized solid waste collection policies. A third would designate as nonpublic citizen email addresses collected for the purpose of providing alerts and other information to residents. These are just a few examples of bills proposed by the League on behalf of cities. Governor’s budget On Jan. 22, Gov. Dayton released his budget recommendations, which, as expected, included a fourth-tier income tax. But perhaps the biggest surprise was the governor’s proposed expansion of the sales tax to a broad array of services. The sales tax expansion took many city officials by surprise. Due to the fact that cities are significant consum-

2013 Law Summaries

ers of many professional services, such as legal, accounting, and engineering services, and due to the fact that cities are required under law to pay the state sales tax on purchases of those services, the governor’s sales tax base expansion would have had a large impact on city budgets. In addition to the sales tax base expansion, Gov. Dayton proposed a new local government aid (LGA) formula and a restoration of $80 million of the funding reductions that have occurred over the past decade. The governor’s proposal was guided by a group of 15 mayors from across the state, including co-chairs R.T. Rybak, City of Minneapolis, and Dave Kleis, City of St. Cloud. The governor’s LGA reform panel also included mayors Bruce Ahlgren, Cloquet; Dave Bartholomay, Circle Pines; Beth Baumann, South St. Paul; ReNae Bowman, Crystal; Ardell Brede, Rochester; Chris Coleman, St. Paul; Debbie Goettel, Richfield; Don Ness, Duluth; Joyce Nyhus, Buffalo Lake; Alan Oberloh, Worthington; Marlene Pospeck, Hoyt Lakes; Mary Rossing, Northfield; and Dave Smiglewski, Granite Falls. Although many legislators supported the governor’s recommended LGA appropriation increase and acknowledged the need to update and reform the one-year-old LGA formula, his LGA proposal did not immediately catch fire. Rep. Jim Davnie (DFL-Minneapolis), who was the new chair of the House Property and Local Tax Division, realized that the governor’s proposal was an important first step but the plan needed refinements to gain broader support. Davnie convened a group of tax committee legislators and city representatives to discuss whether common ground on LGA reform could be found. After roughly six weeks of regular early morning meetings, the Davnie group, which included representatives of Metro Cities, the Coalition of Greater Minnesota Cities, and the League of Minnesota Cities focused in on an LGA system proposal that used updated data and recomputed statistics to allocate LGA funds. The proposal was drafted into legislation and introduced by Rep. Ben Lien (DFL-Moorhead) and Sen. Roger Reinert (DFL-Duluth). That bill was largely included in the final omnibus tax bill which is now Chapter 143. As legislative hearings on the governor’s budget plan began to occur, the League approached several legislators who were former local government officials and asked if they would introduce legislation to exempt cities from the sales tax. During the first month of the session, Reps. Peter Fischer (DFL-Maplewood), Nick Zerwas (R-Elk River), and Paul Anderson (R-Starbuck) along with Sens. Chuck

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Wiger (DFL-Maplewood), Dave Senjem (R-Rochester), and Ann Rest (DFL-New Hope) all introduced bills. Although the House did not include the exemption in its version of the omnibus tax bill, the Senate Tax Reform Division, chaired by Sen. Ann Rest, chose to include the provision in its division report, which was subsequently included in the Senate version of the omnibus tax bill. During the conference committee negotiations, Sens. Rest and Skoe pushed to include the exemption in the final conference committee report. On May 23, the exemption was signed into law by the governor as a part of the omnibus tax bill, Chapter 143. Many of the Legislature’s priorities would eventually find their way to the governor’s desk. In all, the Legislature would send the governor 144 chapters of new law, including nine omnibus bills that would form the backbone of the state’s biennial budget. Neither a comprehensive transportation funding package, nor a substantial capital investment bill is among the 144 chapters. Despite efforts on the part of transportation committee chairs and advocates that stretched into the final days of session, the Legislature and governor failed to agree on a comprehensive transportation funding increase; and, although the counties secured passage of expanded wheelage tax authority and local option sales tax for transportation authority, the Legislature did not pass the League’s street improvement district initiative. The Legislature and governor also ended the session without passing a substantial bonding bill, which may result in demands for a larger than normal bonding bill in 2014. The slim capital investment bill that passed authorizes approximately $176 million in capital projects, $109 million of which will be used to help restore the state Capitol building. (Note: Additional initiatives that did not become law are summarized in the Did Not Become Law section of the 2013 Law Summaries.)

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Other outcomes In addition to the budget bills, dozens of smaller but significant bills also made it to the finish line. The following is a sampling of bills the governor has signed into law: • Authority for cities to impose organized solid waste policies. • A pension bill that will attempt to stabilize the Public Employees Retirement Association Police and Fire Plan. • Classification of citizen emails collected by cities as “non-public.” • Expansion of sick leave and workers’ compensation benefits for employees. The future With the conclusion of the 2013 session, the biennial budget for the state is set until the next odd-year session. The 2014 session will convene Tuesday, Feb. 25, 2014. Bills introduced in 2013 that have not been acted upon remain alive for consideration. The even year session typically yields a small supplemental budget to compensate for discrepancies between the budget forecast and actual revenues, and for unexpected expenses. It also is likely to produce a bonding bill which, in 2014, may be larger than in recent even year sessions due to the fact the 2013 bonding bill did not contain a number of popular projects. Gov. Dayton and all members of the House of Representatives will conclude their current terms in 2014, so those seeking re-election will be eager to finish the session on time and with victories in hand.


LMC 2013 Law Summaries The League of Minnesota Cities (LMC) annually prepares this summary of new laws that impact city operations. This document is intended to highlight relevant new laws, but is not intended to be comprehensive legal advice. Each law summary includes a reference to the session chapter and bill numbers. The number of the bill that was approved by the Legislature and sent to the governor is denoted with an asterisk. The chapter number can be used to locate the actual text of new laws on the state Revisor of Statutes website: www.revisor.leg.state.mn.us/laws. We have also attempted to provide effective dates for each new law; however, occasionally the legislation may not specify an effective date. If no effective date is provided, Minn. Stat. § 645.02 specifies that each act (except one making appropriations) enacted finally at any session of the Legislature takes effect on Aug. 1, unless a different date is specified in the act. An act making appropriations enacted finally at any session of the Legislature takes effect on July 1, unless a different date is specified in the act. Each act takes effect at 12:01 a.m. on the day it becomes effective, unless a different time is specified in the act. Special laws affecting individual cities must generally be approved by the city. The law then becomes effective the day after the certificate of approval is filed with the secretary of state (as specified by Minn. Stat. § 645.021), unless a different date is specified in the act. When approval of such a special law is required by two or more local government units, the law becomes effective the day after the last of the required certificates is filed, unless a different date is specified in the act. If you have questions about a new law, an effective date, or the legislative process, contact a member of the LMC Intergovernmental Relations Department. Contact information for each staff member is provided here.

The initials of League staff who work on legislative issues are printed following each summary. For more information, please refer to the list on the right for contact information.

GC=Gary Carlson, Intergovernmental Relations Director (651) 281-1255 or [email protected]

An asterisk (*) next to a bill number denotes the version of the bill that was approved by the Legislature and sent to the governor.

PH=Patrick Hynes, Intergovernmental Relations Representative (651) 281-1260 or [email protected]

HC=Heather Cederholm, Intergovernmental Relations Liaison (651) 281-1256 or [email protected] AF=Anne Finn, Assistant Intergovernmental Relations Director (651) 281-1263 or [email protected]

CJ=Craig Johnson, Intergovernmental Relations Representative (651) 281-1259 or [email protected] AL=Ann Lindstrom, Intergovernmental Relations Representative (651) 281-1261 or [email protected] LZ=Laura Ziegler, Intergovernmental Relations Liaison (651) 281-1267 or [email protected]

2013 Law Summaries

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BONDING Omnibus bonding bill Chapter 136 (HF 1070*/SF 960) is the omnibus bonding bill, which authorizes approximately $176 million in capital improvement projects. The scope of the bonding bill was agreed upon in the waning hours of the legislative session and there are only five projects and programs funded—the most notable being the Capitol renovation and restoration. Below is a list of the projects funded: • $109 million for the Capitol renovation and restoration project. • $22.6 million for the construction of a Capitol complex parking facility. • $20 million to the Department of Natural Resources for the state share of flood hazard mitigation grants to identified cities, counties, and townships for approved projects. • $18.9 million for the Minneapolis Veterans Home restoration and repair. • $8 million to the Public Facilities Authority to match $40 million in federal clean water and drinking water revolving loan fund. The bonding bill also reauthorized previously authorized bonds and expanded the allowable use of previously authorized bonds. Below is a list of notable projects: • Fergus Falls Regional Treatment Center. Section 11 expands the use of a previously authorized bond for the treatment center to include hazardous materials abatement and improvements to basic infrastructure, and extends the availability of the bonds through 2016. • Old Cedar Avenue Bridge, Bloomington. Section 12 expands the use of a $300,000 grant to the City of Bloomington to include the renovation, restoration, or replacement of the Old Cedar Avenue Bridge for bicycle and recreational users. The section also extends the availability of the previously issued bonds through 2017. Effective May 25, 2013. (PH)

CIVIL AND CRIMINAL LAW Redefining “service animal” under the Minnesota Human Rights Act Chapter 14 (HF 1181/SF 1086*) amends Minn. Stat. § 363A.19 by redefining “service animal” in the Minnesota Human Rights Act. The definition will now be the same as the term defined by the federal Americans with Disabilities Act, as amended. Effective Aug. 1, 2013. (PH) Modifications to the False Claims Act Chapter 16 (HF290*/SF 281) makes changes to the Minnesota False Claims Act (Minn. Stat. Ch. 15C), as directed

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by the federal government, to make the Minnesota law conform to the federal False Claims Act. Currently, Minnesota and the federal government evenly split the proceeds of recoveries under federal or state false claim actions. Conformity with the federal act entitles Minnesota to recover an additional 10 percent of any future recovery. • Definitions modified. Section 1 expands the definition of “claim,” and adds the defined terms of “material” and “obligation” to the Minn. Stat. § 15C.01. Section 1 also redefines the term “original source” to match federal law. • Liability for certain actions. Section 2 removes the current requirement that the alleged false claim be presented to the state or subdivision; expands the definition of intent to match federal law; and deletes a limitation on employer’s liability for certain acts of non-managerial employees. • Private remedies. Section 3 amends Minn. Stat. § 15C.05 to: remove the provision stating that private remedies must be limited to money, property, or services; state that actions cannot be maintained if based upon information known to the government when the action was brought; and require dismissal of an action (with an opportunity for objection by the prosecuting attorney) if based on allegations that were publicly disclosed, unless brought by the original source of information or the prosecuting attorney. • Intervention by prosecuting attorney. Section 4 amends Minn. Stat. § 15C.08 to allow an intervening prosecuting attorney to amend or replace a complaint brought by a private party and to add additional claims. Any such pleading relates back to the filing of the private-party complaint for purposes of the statute of limitations. • Attorney fees and expenses. Sections 5 and 6 make the award of attorney fees and expenses mandatory if the person bringing the claim prevails, and clarifies how awards are distributed to whistleblowers if a prosecuting attorney intervenes in a claim. • Whistleblower protection. Section 7 and 8 repeals the whistleblower provision in Minn. Stat. § 15C.14 and replaces it with Minn. Stat. § 15C.145, providing protection from retaliatory action, including reinstatement at same seniority, double back pay, interest, and special damages, including attorney fees and court costs. Section 7 establishes a three-year statute of limitations for such claims. Effective Aug. 1, 2013. (PH) Criminal conduct related to emergency calls modified Chapter 20 (HF 1043/*SF 1168) amends Minn. Stat. § 609.78 by expanding the list of acts that constitute criminal conduct related to emergency telephone calls. It also


creates new misdemeanor, gross misdemeanor, and felony level offenses under the statute and redefines a term. • Misdemeanor offense provided. Minn. Stat. § 609.78, subd. 1 is amended to make it a misdemeanor to make or initiate an emergency call, knowing that no emergency exists, and with the intent to disrupt, interfere with, or reduce the provision of emergency services or the emergency call center’s resources, remain silent, or make abusive or harassing statements to the call recipient. • Gross misdemeanor offense provided. Minn. Stat. § 609.78, subd. 2 is amended to make it a gross misdemeanor offense to: unlawfully place an emergency call and report a fictitious emergency with the intent of prompting an emergency response; and to violate the new offense established in subdivision 1 for a second time. • Felony offense provided. Minn. Stat. § 609.78, subd. 2a is amended to make it a felony offense to report a fictitious emergency that results in serious injury. A person who violates the prohibition on fictitious calls established in subdivision 2 and the call triggers an emergency response that results in someone suffering great bodily harm or death is guilty of a 10-year felony. • Other felony offense provided. Minn. Stat. § 609.78, subd. 2b is amended to make it a five-year offense to violate subdivision 1 for a third or subsequent time, and to block, interfere with, overload, or otherwise prevent the emergency call center’s system from functioning properly, and these actions make the system unavailable to someone needing assistance. • “Emergency call” definition expanded. Minn. Stat. § 609.78, subd. 3 defines “emergency call.” It is expanded to include the use of any method of communication including, but not limited to: telephones, facsimiles, voice-over-Internet protocols, email messages, text messages, and electronic transmissions of an image or video. Effective Aug. 1, 2013. (AF) Contribution actions related to construction lawsuits limited Chapter 21 (HF 450*/SF 392) amends the statute of limitations for lawsuits based on improvements to real property (Minn. Stat. § 541.051). The new law imposes a 14-year statute of repose on contribution and indemnity claims, which currently must be brought no later than two years after the contribution or indemnity action accrued. In some circumstances, under the current statute of limitations and repose, a construction defect claim can be brought nearly 12 years after substantial completion of a project, and a contribution and indemnity claim can potentially accrue after trial or appeal, leaving open questions of liability for many years. The change was made at the request of engineers and architects, who are often

2013 Law Summaries

subject to contribution and indemnity claims on construction projects. Effective Aug. 1, 2013, and applies to actions commenced on or after that date. (PH) Crime victim provisions modified Chapter 34 (HF 1501/SF 769*) amends various crime victim provisions. It classifies as private data identifying information of a victim or other person requesting notification regarding a defendant’s release from custody. It expands protections for crime victims against employer retaliation. Finally, it updates terminology and creates a working group to study restitution. • Release of arrested, detained or confined person notice modified. Section 1 creates Minn. Stat. § 13.854. It provides that for requests for notification of change in custody status of an arrested, detained, or confined person from the Department of Corrections or other custodial authority made through an automated electronic notification system, all identifying information regarding the person requesting notification, and that the notice was requested and provided to that person by the automated system is classified as private data on individuals as defined in section 13.02, subd. 12, and is accessible only to that person. • Victim data classified. Section 2 adds a provision to Minn. Stat. § 13.871, subd. 5. It provides that data on victims requesting a notice of release of an arrested or detained person are classified under Minn. Stat. § 629.72 (pertaining to bail, domestic abuse, harassment, violation of order for protection or no contact order) and Minn. Stat. § 629.73 (pertaining to notice to crime victims, release of arrested or detained person). • “Violent crime” definition modified to include stalking. Section 3 amends Minn. Stat. § 611A.0315 by replacing the word “harassment” with the word “stalking” in the definition of “violent crime.” • Stalking victims attendance at criminal proceedings protected. Section 4 amends Minn. Stat. § 611A.036, subd. 7, by adding the crime of stalking to the definition of “violent crime” for purposes of prohibiting employer retaliation when an employee takes time off work to attend criminal proceedings. • “Stalking” replaces “harassment.” Sections 5, 6, 7 and 9 amend various provisions in Minn. Stat. § 629.72 by replacing the word “harassment” with the word “stalking.” This section pertains to bail, domestic abuse, harassment, violation of order for protection, and no contact orders. • Victim data private. Section 8 adds a provision to Minn. Stat. § 629.72, subd. 6. It provides that data on the victim and the notice provided by the custodial authority are private data on individuals as defined in Minn. Stat. § 13.02, subd. 12, and are accessible only to the victim.

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• Technical changes and victim data classification provided. Section 10 amends Minn. Stat. § 629.73 updates obsolete references to the Department of Corrections and replaces them with the Office of Justice programs in the Department of Public Safety. It also classifies as private data on individuals all identifying information regarding a victim, including, but not limited to, the notice provided custodial authority regarding an arrested person’s release. • Working group established. Section 11 is a 2013 Session Law that requires the Department of Public Safety to convene a working group by Aug. 1, 2013, to study how restitution is currently being requested, ordered, and collected in Minnesota, to include the Department of Corrections, city and county prosecuting agencies, statewide crime victim coalitions, the Minnesota Judicial Branch, county probation departments, the Minnesota Association of Community Corrections Act counties, and the Minnesota Board of Public Defenders. It requires the commissioner of the Department of Public Safety to file the report with the Legislature by an unspecified date in January 2015. Effective Aug. 1, 2013. (AF) Domestic abuse provisions modified Chapter 47 amends (HF 1400*/SF 1423) makes several changes to violations related to orders for protection, qualified domestic violence-related offenses, harassment restraining orders, and domestic abuse no contact orders. • “Knowingly” stricken from enhanced orders for protection (OFPs) violation penalty. Section 1 amends Minn. Stat. § 518B.01, subd. 14, by striking the term “knowingly” from the provisions regarding enhanced penalties for violations of OFPs. Current law provides that a violation by a person who knows of the order is guilty of a misdemeanor. A misdemeanor violation is enhanced to a gross misdemeanor or felony if it’s a repeat violation or other circumstances apply. The enhanced penalties require that the person know of the OFP and commit the violation “knowingly.” These sections strike the latter, additional requirement for enhanced penalties; accordingly, all the penalty levels would have the same knowledge requirement. • Venues for OFP violations expanded. Section 2 adds a section to Minn. Stat. § 518B.01. It provides that a person may be prosecuted under the jurisdiction of the place where any call is made or received or, in the case of wireless or electronic communication or any communication made through any available technologies, where the actor or victim resides, or in the jurisdiction of the victim’s designated address if the victim participates in the address confidentiality program established under Chapter 5B.

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• “Family or household member” requirement eliminated. Section 3 amends Minn. Stat. § 609.2242, subd. 2. It eliminates the requirement that a misdemeanor domestic assault may only be enhanced to a gross misdemeanor if a previous qualified domestic violence-related offense (QDVRO) was “against a family or household member.” The definition of QDVRO is in Minn. Stat. S 609.02, subd. 16, and contains crimes that are not required to be committed against a family or household member (e.g., murder, assault, criminal sexual conduct crimes). • “Knowingly” stricken from enhanced harassment restraining orders (HROs) violation penalty. Section 4 amends Minn. Stat. § 609.748, subd. 6, by striking the term “knowingly” from the provisions regarding enhanced penalties for violations of HROs. Current law provides that a violation by a person who knows of the order is guilty of a misdemeanor. A misdemeanor violation is enhanced to a gross misdemeanor or felony if it’s a repeat violation or other circumstances apply. The enhanced penalties require that the person know of the order and commit the violation “knowingly.” These sections strike the latter, additional requirement for enhanced penalties; accordingly, all the penalty levels would have the same knowledge requirement. • “Knowingly” stricken from enhanced domestic abuse no contact orders (DANCOs) violation penalty. Section 5 amends Minn. Stat. § 629.75, subd, 2, by striking the term “knowingly” from the provisions regarding enhanced penalties for violations of DANCOs. Current law provides that a violation by a person who knows of the order is guilty of a misdemeanor. A misdemeanor violation is enhanced to a gross misdemeanor or felony if it’s a repeat violation or other circumstances apply. The enhanced penalties require that the person know of the order and commit the violation “knowingly.” These sections strike the latter, additional requirement for enhanced penalties; accordingly, all the penalty levels would have the same knowledge requirement. • Venues for DANCO violations expanded. Section 6 adds a subdivision to Minn. Stat. § 629.75. It provides that a person may be prosecuted at the place where any call is made or received, or, in the case of wireless or electronic communication or any communication made through any available technologies, where the actor or victim resides, or in the jurisdiction of the victim’s designated address if the victim participates in the address confidentiality program established under chapter 5B. • Evidence of conduct modified. Section 7 amends Minn. Stat. § 634.20. It strikes the term “similar” and replaces it with “domestic.” Currently, this section provides that evidence of “similar conduct” by the accused against a victim of domestic abuse is admissible. Changing the terminology would provide that conduct does not have to be “similar” to domestic abuse—which


involves a physical assault or threat. Instead, the term is changed to “domestic conduct,” which is defined as evidence of domestic abuse, violation of an OFP or HRO, stalking, or harassing phone calls. Effective Aug. 1, 2013. (AF) Service of process in contested case review Chapter 56 (HF 1120*/SF 516) amends the Administrative Procedures Act, Minn. Stat. § 14.63. The act will now require a party petitioning for judicial review of a contested case to serve the petition on the Court, the state agency, and all parties to the contested case. Effective Aug. 1, 2013, and applies to an appeal of a final decision in a contested case rendered on or after that date. (PH) Money used to facilitate prostitution or sex trafficking forfeiture provided Chapter 80 (HF 411/SF 346*) amends Minn. Stat. § 609.5312 pertaining to forfeiture of property associated with designated offenses. In particular, it authorizes forfeiture of money used or intended to be used to facilitate the commission of a prostitution or sex trafficking offense. • Money subject to forfeiture. Section 1 amends Minn. Stat. 609.5312, subd. 1, pertaining to property forfeiture. It adds a provision that says money used or intended to be used to facilitate the commission of a violation of Minn. Stat. § 609.322 or Minn. Stat. § 609.324 or a violation of a local ordinance substantially similar, is subject to forfeiture. • Disposition of money provided. Sections 2, 3 and 4 amend Minn. Stat. § 609.5315 by adding a new subdivision. It provides that money forfeited as part of a prostitution or sex trafficking offense must be distributed as follows: • 40 percent must be forwarded to the appropriate agency for deposit as a supplement to the agency’s operating fund or similar fund for use in law enforcement; • 20 percent must be forwarded to the prosecuting authority that handled the forfeiture for deposit as a supplement to its operating fund or similar fund for prosecutorial purposes; and, • The remaining 40 percent must be forwarded to the commissioner of public safety to be deposited in the safe harbor for youth account in the special revenue fund, and are appropriated to the commissioner for distribution to crime victims services organizations that provide services to sexually exploited youth, as defined in section 260C.007, subdivision 31. Effective Aug. 1, 2013. (AF) Restrictions on indemnification agreements in construction contracts Chapter 88 (HF 644/SF 561*) amends Minn. Stat. § 337.05 to prohibit provisions in construction contracts

2013 Law Summaries

that require a party to provide insurance coverage to one or more parties for the negligence or intentional acts or omissions of the other parties, including third parties. This changes the long-standing practice in construction contracts whereby a subcontractor indemnifies a general contractor for the negligence of the general contractor, and general contractors indemnify owners for the negligence of the owner. These provisions were allowed under law only to the extent the contract required the indemnitor to obtain insurance. The new law contains exceptions to allow project-specific insurance policies like Builder’s Risk to remain enforceable. The law also allows an indemnitor to obtain insurance coverage for the indemnitee’s vicarious or warranty liability. Effective Aug. 1, 2013, and applies to agreements signed or accepted on or after that date. (PH) Expanding the limitations period for civil actions involving sexual abuse Chapter 89 (HF 681*/SF 534), the “Child Victims Act,” amends Minn. Stat. § 541.073 to eliminate the statute of limitations for certain sexual abuse claims. For claims against the perpetrator, the following limitations periods apply: • If the victim was 18 years or older: six years. • If the victim was younger than 18 years old, there is no statute of limitations. • If the victim was a minor and the accused perpetrator was younger than 14 years old, then the claim must be brought before the plaintiff is 24 years old. Claims for vicarious liability or respondeat superior must be commenced within six years of the alleged abuse, or if the plaintiff was a minor, than before the plaintiff is 24 years old. In the case of alleged sexual abuse of a minor, an otherwise time-barred claim may be commenced against a person, corporation, or other entity no later than three years following the enactment date and applies to claims pending or commenced on or after that date. The lookback provision does not apply to claims for vicarious liability or respondeat superior. Effective May 25, 2013, and applies to claims that were not time-barred before the effective date, except for claims brought under the look-back provision. (PH) Prohibiting exclusion from jury service Chapter 90 (HF 335*/SF 41) amends Minn. Stat. § 593.32, subd. 1 and prohibits a citizen from being excluding from jury service on the basis of marital status and sexual orientation. The current statute prohibits exclusion from jury service on account of race, color, religion, sex, national origin, economic status, or a physical or sensory disability. Rule 809 of the Minnesota General Rules of Practice for the District Courts already prohibits exclusion from jury service based on marital status. Effective Aug. 1, 2013. (PH)

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Restrictions on enforceability of liability waivers Chapter 118 (HF 792*/SF 768) makes unenforceable an agreement that purports to release, limit, or waive liability for damage, injuries, or death resulting from conduct that constitutes greater than ordinary negligence. An unenforceable portion of an agreement is severable from an agreement that waives liability for damages resulting from conduct constituting ordinary negligence or inherent risks. The new law, Minn. Stat. § 604.055, does not apply to claims against the municipalities or the state. The original bill made unenforceable any liability waiver for damage arising out of the negligent operation, maintenance, or design of a party’s premises, and included municipal waivers. The new law is a compromise that attempts to codify Minnesota case law on the enforceability of indemnity agreements. Effective Aug. 1, 2013, and applies to agreements signed or accepted on or after that date. (PH) Underage possession or consumption immunity provided for a person seeking assistance for another Chapter 112 (HF 946*/SF 744) adds a subdivision to Minn. Stat. § 340A.503, the law pertaining to underage possession and consumption of alcohol. It provides that if a person contacts a 911 operator to report that the person or another person is in need of medical assistance for an immediate health or safety concern, the person is not subject to prosecution under this law. The immunity applies if the person is the first person who initiates contact. The person must also provide a name and contact information, remain on the scene until assistance arrives, and cooperate with the authorities at the scene. The person who receives medical assistance is also immune from prosecution. The law also applies to one or two persons acting in concert with the person initiating contact provided that all the same requirements are met. Effective Aug. 1, 2013. (AF) Transit operator assault criminal penalties prescribed Chapter 133 (HF 590*/SF 1068) adds a subdivision to Minn. Stat § 609.2231. It provides that a person is guilty of a gross misdemeanor if the person assaults a transit operator, or intentionally throws or otherwise transfers bodily fluids onto a transit operator; and the transit operator is acting in the course of the operator’s duties and is operating a transit vehicle, aboard a transit vehicle. A person convicted of this offense may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both. Effective Aug. 1, 2013. (AF) Increased penalties for wildfire arson provided Chapter 139 (HF 228*/SF 614) creates increased penalties for wildfire arson that damages multiple buildings or dwellings, acreage, or crops, or causes someone to suffer demonstrable harm. In addition, it adds restitution provisions.

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• Maximum sentences provided. Section 2 adds a subdivision to Minn. Stat. § 609.5641. It creates increased felony penalties for wildfire arson based on certain damages. Imposes a maximum sentence as follows: • Where fire causes another person to suffer demonstrable bodily harm, ten years imprisonment and/or $15,000 fine; • Where the fire threatens to damage or damages in excess of five buildings or dwellings, burns 500 or more acres, or results in over $100,000 in crop damage, ten years imprisonment and/or $15,000 fine; and, • Where the fire threatens to damage or damages in excess of 100 buildings or dwellings, burns 1,500 or more acres, or results in over $250,000 in crop damage, 20 years imprisonment and/or $25,000. • It provides that a building or dwelling “is threatened” when there is a probability of damage to the dwelling requiring evacuation for safety of life. • Restitution provided. Section 3 amends Minn. Stat. § 609.5641, subd. 3 by providing that, in addition to the sentence otherwise authorized, the court may order a person who is convicted of violating this section to pay fire suppression costs and damages to the owner of the damaged land, costs associated with injuries sustained by a member of a municipal or volunteer fire department in the performance of the member’s duties, and any other restitution costs allowed under Minn. Stat. § 611A.04. Effective Aug. 1, 2013. (AF)

COMMERCE Department of Commerce technical bill Chapter 135 (HF 1221*/SF 626) is the Department of Commerce technical and housekeeping bill. While the majority of provisions do not impact cities, the following items may be of interest. • Electronic service of Public Utilities Commission (PUC) documents. Article 3, sections 18-20 amend Minn. Stat. §§ 216.17-.18 and require that regulated utilities provide the PUC with an electronic address for electronic service purposes, and agree to accept electronic service as official service. This applies to all notices, orders, and documents sent by the PUC, as well as documents required to be served by parties, participants, or other interested persons. Effective Aug. 1, 2013. (PH) Bullion coin dealers regulated Chapter 120 (HF 157*/SF 382) provides for regulation of “bullion coin dealers” and “coin dealer representatives” by the Department of Commerce. “Bullion coins” are coins that contain more than 1 percent by weight of a precious metal such as gold; they are sold as an investment.


• Bullion terms defined. Section 1 creates. Minn. Stat. § 80G.01. It defines the terms “bullion coin,” “bullion coin dealer,” “coin dealer representative,” “commissioner,” “owner,” “person,” and “precious metal content.” A “coin dealer representative” is an individual who represents a bullion coin dealer in transactions with consumers. • Registration required. Section 2 creates Minn. Stat. § 80G.02. It requires that bullion coin dealers and coin dealer representatives be registered annually with the Department of Commerce before doing business in this state. It provides that registration starts July 1, 2014, if a dealer has engaged annually in transactions that exceed $5,000 in the aggregate, or once the dealer’s transactions reach $5,000, and requires continued registration regardless of future transaction amounts. • Registration denial provided. Section 3 creates Minn. Stat. § 80G.03. It provides that the Department of Commerce may by order, suspend, revoke, or refuse to issue or renew a registration for misrepresentation, fraud, and other violations of the law specified in the chapter. It permits the commissioner to take action against a bullion coin dealer for a violation by its coin dealer representative or directly against the representative, provided that the coin dealer representative was acting on behalf of the bullion coin dealer. It allows the institution of a revocation proceeding and imposition of civil penalties within two years after registration was last effective, and prohibits new applications for two years after the effective date of the revocation. • Denial required for criminal convictions. Section 4 creates Minn. Stat. § 80G.04. It requires denial of an application for registration if the applicant has within the last 10 years, been convicted of a financial crime or of any crime involving fraud or theft. • Screening process required. Section 5 creates Minn. Stat. § 80G.05. It requires the following: • A bullion coin dealer must screen each of its owners, officers, and coin dealer representatives before submitting an initial application and at each renewal. • The results of the screenings must be provided to the Department of Commerce at initial registration and each renewal, if requested by the department. • A national criminal history record search, court judgment search, and county criminal history search for all counties in which the applicant has lived within the preceding 10 years must be included. • The bullion coin dealer must use a reputable vendor that is authorized to do business in Minnesota and that specializes in conducting background screenings. • Surety bond requirement provided. Section 6 creates Minn. Stat. § 80G.06. It requires that a bullion coin dealer maintain a surety bond in an amount equal at least to the total purchase and sale transactions with consumers at retail in the preceding 12 months, but the bond

2013 Law Summaries

amount need not exceed $200,000. It provides that aggrieved consumers and the Department of Commerce or attorney general may file a claim with the surety on the bond and may sue the surety if the claim is denied. • Certain conduct prohibited. Section 7 creates Minn. Stat. § 80G.07, which lists 15 things that bullion coin dealers and coin dealer representatives are prohibited from doing. From Aug. 1, 2013, to June 30, 2014, it only applies to dealers with annual transactions exceeding $5,000. On or after July 1, 2014 it applies to any dealer required to be registered under the chapter. • Misdemeanor crime provided. Section 8 creates Minn. Stat. § 80G.08. It provides that it is a misdemeanor for a bullion coin dealer or coin dealer representative to: • Fail to register and maintain registration with the commissioner under this act; • Fail to deliver purchased bullion coins to a consumer within 30 days or at the agreed-upon time; or • Fail to pay a consumer for bullion coins sold and delivered to a dealer or representative within 30 days or at the agreed-upon time. • Local authority provided. Section 9 creates Minn. Stat. § 80G.09. It provides that nothing in this ch. 80G prevents a lawsuit for securities fraud under ch. 80A or preempts local authority under Minn. Stat. § 325F.742 (regulation of precious metal dealers). • Investigations and civil enforcement provided. Section 10 creates Minn. Stat. § 80G.10. It provides the Department of Commerce with enforcement authority provided in this section and Minn. Stat. § 45.027, including imposition of civil penalties. Effective Aug. 1, 2013. (AF) Scrap metal processing regulations modifications and criminal penalties establishment Chapter 126 (HF 1214*/SF 934) amends and expands licensing and regulatory provisions in chapters 168, 168A, and 325E relating to scrap metal and vehicle purchases. • “Hulk” exception eliminated. Section 1 amends Minn. Stat. § 168.27, subd. 1a. It eliminates the “hulk” exception for scrap metal processor licensing. This has the effect of requiring a license for businesses engaged in buying hulks for scrap. (A “hulk” is a vehicle that is incapable of moving under its own power and has had valuable used parts removed. Its sole value is its metallic content.) Effective Aug. 1, 2013. • Injunctive relief and civil penalties provided. Section 2 amends Minn. Stat. § 168.27, subd. 19a. It authorizes injunctive relief and civil penalties for violations of licensing and regulatory provisions relating to scrap metal dealers, scrap metal processors, and salvage pools. Effective Aug. 1, 2013. • County and city attorney prosecuting authority provided. Section 3 amends Minn. Stat. § 168.27, subd.

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23. It provides that the city or county attorney is the agency responsible for prosecuting violations relating to licensing and regulation of vehicle dealers or scrap metal dealers. Previous law made the Department of Motor Vehicles responsible for filing charges. Effective Aug. 13, 2013. • Certificate of title maintenance required. Section 4 amends Minn. Stat. § 168A.15, subd. 3 to require a dealer who purchases a vehicle for scrap to maintain the certificate of title for three years before destroying it. Effective Aug. 13, 2013. • Scrap metal processing regulated. Section 5 creates Minn. Stat. § 168A.1501, which provides scrap metal processing regulations. • Definitions provided. Section 5, subd 1. provides that “law enforcement agency” or “agency” means a duly authorized municipal, county, state, or federal law enforcement agency. “Scrap vehicle” means a motor vehicle purchased primarily as scrap, for its reuse or recycling value as raw metal, or for dismantling for parts. “Scrap vehicle operator” or “operator” means the following persons who engage in a transaction involving the purchase or acquisition of a scrap vehicle: scrap metal processors licensed under Minn. Stat. § 168.27, subd. 1a(c); used vehicle parts dealers licensed under Minn. Stat. § 168.27, subd. 1a(d); scrap metal dealers under Minn. Stat. § 325E.21; and junk yards under Minn. Stat. § 471.925. “Interchange file specification format” means the most recent version of the Minneapolis automated property system interchange file specification format. Effective Aug. 1, 2013. • Purchase or acquisition record required. Section 5, subd. 2 provides that every scrap vehicle operator must create a permanent record written in English, at the time of each purchase or acquisition of a scrap vehicle. The section outlines the information required to be kept as part of the record, which must at all reasonable times be open to the inspection of any properly identified law enforcement officer. ·· Exceptions. No record is required for property purchased from manufacturers, salvage pools, merchants operating under a contract with a scrap vehicle operator, insurance companies, rental car companies, financial institutions, charities, dealers licensed under Minn. Stat. § 168.27, or wholesale dealers. Law enforcement agencies may conduct regular and routine inspections to ensure compliance, refer violations to the city or county attorney for criminal prosecution, and notify the registrar of motor vehicles. ·· Personal information protected. An operator may not disclose personal information concerning a customer without the customer’s consent unless the disclosure is required by law or made in response to

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a request from a law enforcement agency. An operator must implement reasonable safeguards to protect the security of the personal information, defined as any individually identifiable information gathered in connection with a record. Effective Aug. 1, 2013. • Retention required. Section 5, subd. 3 requires records to be retained by the scrap vehicle operator for a period of three years. Effective Aug. 1, 2013. • Payment by check or electronic transfer required. Section 5, subd. 4. requires a scrap vehicle operator or the operator’s agent, employee, or representative to pay for all scrap vehicle purchases only by check or electronic transfer. Effective Aug. 1, 2013. • Automated property system reporting required. Section 5, subd. 5 provides that a scrap vehicle operator must completely and accurately provide all the record information required by transferring it from the operator’s computer to the automated property system, by the close of business each day, using the interchange file specification format. An operator who does not have an electronic point-of-sale program may request to be provided software by the automated property system to record the required information. If the operator uses a commercially available electronic pointof-sale program to record the information required in this section, it must submit the information using the interchange file specification format. Any record submitted by an operator that does not conform to the interchange file specification format must be corrected and resubmitted the next business day. An operator must display a sign of sufficient size, in a conspicuous place in the premises, which informs all patrons that transactions are reported to law enforcement daily. Every local law enforcement agency must participate in the automated property system as an individual agency or in conjunction with another agency or agencies to provide the service. Effective Jan. 1, 2015. • Additional reporting required. Section 5, subd. 6 provides that, in addition to the requirements under subd. 5, an operator who is not licensed under Minn. Stat. § 168.27 and an operator who purchases a scrap vehicle under subd. 9 must submit information on the purchase or acquisition of a scrap vehicle to the National Motor Vehicle Title Information System by the close of business the following day. Effective Aug. 1, 2013. • Vehicle with proof of ownership; title or bill of sale required. Section 5, subd. 7 provides that no person shall purchase a scrap vehicle unless the seller: (1) provides the vehicle title and lien releases, if the vehicle is subject to any liens, or an official bill of sale issued by a public impound lot, each listing the vehicle identification number; (2) provides proof of identification; and (3) signs a statement, under penalty of perjury attesting that the motor vehicle is not stolen and


is free of any liens or encumbrances and that the seller has the right to sell the motor vehicle. Effective Aug. 1, 2013. • Vehicle without proof of ownership; certain older vehicles. Section 5, subd. 8. Provides a process to allow the purchase of a scrap vehicle without proof of ownership under certain circumstances. Effective Aug. 1, 2013. • Vehicle without proof of ownership; vehicles for dismantling. Section 5, subd. 9 provides a process to allow the dismantling of vehicle without proof of ownership under certain circumstances. Effective Aug. 1, 2013. • Exempt purchases. Section 5, subd. 10 provides that subd. 7, 8, and 9 do not apply when a scrap vehicle is: (1) purchased from a manufacturer, salvage pool, merchant operating under a contract with a scrap vehicle operator, insurance company, rental car company, financial institution, charity, dealer licensed under Minn. Stat. § 168.27, or wholesale dealers, having an established place of business, or of any goods purchased at open sale from any bankrupt stock; or (2) an inoperable motor vehicle with a manufacturer’s designated model year equal to or less than the 20th year immediately preceding the current calendar year. Effective Aug. 1, 2013. • Criminal penalty provided. Section 5, subd. 11 provides that a scrap vehicle operator, or the agent, employee, or representative of the operator, who intentionally violates a provision of this section, is guilty of a misdemeanor. Effective Aug. 1, 2013. • Investigative holds; scrap vehicle or parts. Section 5, subd. 12 provides that whenever a law enforcement official from any agency has probable cause to believe that a scrap vehicle or motor vehicle parts in the possession of a scrap vehicle operator are stolen or evidence of a crime and notifies the operator not to sell the item, the scrap vehicle operator must not: (1) process or sell the item; or (2) remove or allow its removal from the premises. This investigative hold must be confirmed in writing by the originating agency within 72 hours and will remain in effect for 30 days from the date of initial notification, or until the investigative hold is canceled or renewed, or until a law enforcement notification to confiscate or directive to release is issued, whichever comes first. If a scrap vehicle or motor vehicle parts are identified as stolen or evidence in a criminal case, a law enforcement official may: (1) physically confiscate and remove the item from the scrap vehicle operator, pursuant to a written notification; (2) place the item on hold or extend the hold and leave it on the premises; or (3) direct its release to a registered owner or owner’s agent. The section also provides for a release of the hold, a process for the operator to request the seized property be

2013 Law Summaries

returned, and a process for the operator to seek restitution against the person who delivered the item. Effective Aug. 1, 2013. • Video security cameras required. Section 5, subd. 13 extends existing provisions in Minn. Stat. § 325E.21, subd. 9 requiring that scrap metal dealers must install and maintain security cameras to scrap vehicle operators. Each operator must install and maintain at each location video surveillance cameras, still digital cameras, or similar devices positioned to record or photograph a frontal view showing a clear and readily identifiable image of the face of each seller of a scrap vehicle who enters the location. The scrap vehicle operator must also photograph the seller’s vehicle, including license plate, either by video camera or still digital camera, so that an accurate and complete description of it may be obtained from the recordings made by the cameras. Photographs and recordings must be clearly and accurately associated with their respective records. The camera must be kept in operating condition, be turned on when the location is open or when a vehicle is being purchased, and must record and display the accurate date and time. Recordings and images must be retained by the scrap vehicle operator for a minimum period of 60 days and must at all reasonable times be open to the inspection of any properly identified law enforcement officer. If the scrap vehicle operator does not purchase some or any scrap vehicles at a specific business location, the operator need not comply with this subdivision with respect to those purchases. This subdivision does not apply to the purchase of a scrap vehicle by a used vehicle parts dealer licensed under Minn. Stat. § 168.27, for dismantling the vehicle for its parts. Effective Jan. 1, 2014. • Preemption of local ordinances provided. Section 5, subd. 14 provides that the provisions in this section preempt and supersede any local ordinance or rule concerning the same subject matter. Effective Aug. 1, 2013. • Reporting period shortened. Section 6 amends Minn. Stat. § 168A.153, subd. 1 by shortening from 30 days to 10 days the time by which a dealer who buys a vehicle to be dismantled or destroyed must report the vehicle’s license plate number and identification number, and the seller’s name and driver’s license number. Effective Aug. 1, 2013. • Notification requirement provided. Section 7 amends Minn. Stat. § 168A.153, subd. 3 by providing that the notification required under subd. 1 must be made electronically as prescribed by the registrar. Effective Aug. 1, 2013. • Definitions added to scrap metal dealer regulations. Section 8 amends Minn. Stat. § 325E.21, subd. 1 by adding definitions. “Interchange file

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specification format” means the most recent version of the Minneapolis automated property system interchange file specification format. “Seller” means any seller, prospective seller, or agent of the seller. “Proof of identification” means a driver’s license, Minnesota identification card number, or other identification document issued for identification purposes by any state, federal, or foreign government if the document includes the person’s photograph, full name, birth date, and signature. Effective Aug. 1, 2013. • Scrap metal dealer required to obtain signed statement. Section 9 amends Minn. Stat. § 325E.21, subd. 1a by requiring a statement signed by the seller, under penalty of perjury attesting that the scrap metal is not stolen and is free of any liens or encumbrances and the seller has the right to sell it. Effective Aug. 1, 2013 and expires Jan. 1, 2015. • Purchase or acquisition record required. Section 10 adds a section to Minn. Stat. § 325E.21. It provides that every scrap metal dealer, including an agent, employee, or representative of the dealer, shall create a permanent record written in English, using an electronic record program at the time of each purchase or acquisition of scrap metal. The section outlines the information required to be kept as part of the record, which must at all reasonable times be open to the inspection of any properly identified law enforcement officer. • Exceptions. No record is required for property purchased from merchants, manufacturers, salvage pools, insurance companies, rental car companies, financial institutions, charities, dealers licensed under Minn. Stat. § 168.27, or wholesale dealers, having an established place of business, or of any goods purchased at open sale from any bankrupt stock, but a receipt must be obtained and kept by the person, which must be shown upon demand to any properly identified law enforcement officer. • Personal information protected. A dealer may not disclose personal information concerning a customer without the customer’s consent unless the disclosure is required by law or made in response to a request from a law enforcement agency. A dealer must implement reasonable safeguards to protect the security of the personal information, defined as any individually identifiable information gathered in connection with a record. Effective Jan. 1, 2015. • Automated property system requirements provided. Section 11 adds a section to Minn. Stat. § 325E.21. It requires dealers to completely and accurately provide all the required information by transferring it from their computer to the automated property system, by the close of business each day, using the interchange file specification format. A dealer who does not have an electronic point-of-sale program may request to

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be provided software by the automated property system to record the required information. If the dealer uses a commercially available electronic point-of-sale program to record the information required in this section, it must submit the information using the interchange file specification format. Any record submitted by a dealer that does not conform to the interchange file specification format must be corrected and resubmitted the next business day. No fees may be charged to a dealer for use of the automated property system until such time as the Legislature enacts a fee schedule. A dealer must display a sign of sufficient size, in a conspicuous place in the premises, which informs all patrons that transactions are reported to law enforcement daily. Every local law enforcement agency must participate in the automated property system as an individual agency or in conjunction with another agency or agencies to provide the service. Effective Jan. 1, 2015. • Registration requirement sunset provided. Section 12 amends Minn. Stat. § 325E.21, subd. 4, which requires every scrap metal dealer to register with and participate in the criminal alert network described in Minn. Stat. § 299A.61. It provides that the requirement sunsets on Jan. 1, 2015, when new requirements go into effect. Effective Jan. 1, 2015. • Investigative holds for scrap metal purchases modified. Section 13 amends Minn. Stat. § 325E.21, subd. 8. It authorizes an initial 72-hour hold upon notification from law enforcement that the scrap metal dealer shall not sell or remove an item. It requires the agency to confirm the hold in writing, and it then remains in effect for 30 days from date of initial notification. It provides that the agency may confiscate the stolen item or evidence and remove it, place the item on hold and leave it in the premises, or direct its release to an owner. Finally, it provides that if law enforcement does not timely issue a notification to confiscate or issues the notification but fails to remove the item within 15 days, the dealer may process the item. Effective Aug. 1, 2013. • Video security cameras required. Section 14 amends Minn. Stat. § 325E.21, subd. 9, so that it matches the video camera requirements in for scrap vehicle operators under 168A.1501 (See, Section 5, subd. 13 above). Effective Jan. 1, 2014. • Preemption of local ordinances provided. Section 15 adds a subdivision to Minn. Stat. § 325E.21. It provides that the provisions in this section preempt and supersede any local ordinance or rule concerning the same subject matter. Effective Aug. 1, 2013. • Automated Property System standards required. Section 16 is a 2013 Session Law. It requires the Minneapolis Police Department, in consultation with law enforcement, prosecutors, the commissioner of the


Department of Public Safety, legislators, and representatives from each regulated industry, to develop standards for the Automated Property System as it pertains to scrap metal. Proposed standards are to be submitted to the Legislature by Jan. 15, 2014. Final standards are to be completed by July 1, 2014, and provided to scrap metal dealers by July 15, 2014. Effective May 25, 2013. (AF)

DATA PRACTICES Safe At Home Program Chapter 76 (HF 580*/SF 509) clarifies the duties and responsibilities related to the Safe At Home Program administered by the Secretary of State. The program, created in 2006, provides an alternative mailing address to individuals, such as victims of domestic violence, who need to keep their location private for their personal safety. The bill creates a new section of the Minnesota Government Data Practices Act (MGDPA), Minn. Stat. § 13.045, that classifies identity and location data of participants as private data. The data may not be shared with other government entities or disseminated to any person unless the participant expressly consents in writing, the sharing is mandated by court order, or is required for certain law enforcement purposes. The bill requires that a participant must inform a governmental entity in writing that he or she is a certified participant. A government entity must accept the alternative address maintained by the Secretary of State. Finally, the bill states that the program does not create any affirmative duty on a governmental entity to independently determine whether it maintains data on a program participant. Effective July 1, 2013. (PH) Omnibus data practices bill Chapter 82 (HF 695/SF 745*) is the omnibus data practices bill. The following provisions are relevant to cities: • Citizen contact information classified as private data. Section 1 is an initiative sponsored by the League of Minnesota Cities that classifies as private data the email addresses and phone numbers of citizens who submit their contact information to cities for “notification purposes or as part of a subscription list for an entity’s electronic periodic publications.” Notifications and electronic periodic publications include items such as snow emergency notices, newsletters, monthly crime reports, and other general information sent by cities to residents. The names of people on the lists and the content of any communications remain public data. Effective May 24, 2013, and applies to data collected, maintained, or received before, on, or after that date. • Security information definition expanded. Section 2 amends Minn. Stat. § 13.37, subd. 1, to expand the

2013 Law Summaries

definition of security information. Current law makes certain contact information of volunteers participating in community crime prevention programs private data. The bill expands the definition to include email addresses, internet account information, and GPS locations. Effective Aug. 1, 2013. • Settlement agreements and investigative data. Section 4 amends Minn. Stat. § 13.43, subd. 2 in order to clarify two provisions of law adopted in 2012. The 2012 law (Chapter 280) made additional data related to settlement agreements involving certain public officials public data. Since passage in 2012, two settlement agreements involving public officials were classified as private data, and a number of legislators felt they should have been classified as public under the new law. • The 2012 law expanded the definition of public official to include (1) the chief administrative officer of all political subdivisions, (2) the three highest-paid employees in a city with a population of over 15,000, and (3) in a city with a population over 7,500, “individuals in a management capacity reporting directly to the chief administrative officer.” The third classification is changed, and now applies to: “managers; chiefs; heads or directors of departments, divisions, bureaus, or boards; and any equivalent position.” • The 2012 law also made public data related to a complaint or charge against a covered public official if potential legal claims were released as part of a settlement agreement with another person. Section 4 deletes “with another person,” and makes public a complaint involving a covered public official if potential legal claims arising out of the conduct that is the subject of the complaint or charge are released as part of a settlement agreement. This change was made so that the data are public when a settlement agreement involves the subject of the complaint. Effective May 24, 2013. • Criminal justice data communications network. Section 29 amends Minn. Stat. § 299C.46, subd. 3. It modifies the list of permitted uses of the criminal justice data communications network and allows access by political subdivisions where authorized by state or federal law. It establishes standards that agencies must meet in order to establish secure network connections to the database, including the performance of background checks on employees who may access the database. Effective Aug. 1, 2013. • Criminal history checks authorized. Sections 30-31 authorizes the performance of criminal history checks, as defined in Minn. Stat. § 299C.72, on applicants for city or county employment, persons applying to volunteer in the city or county, or an individual seeking a city or county license not otherwise subject to a state or federal background check. The criminal history check under this

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section cannot be used in place of a statutorily-mandated or authorized background check. Effective Aug. 1, 2013. • Background check required for fire department applicants. Section 32 amends Minn. Stat. § 299F.035 to require background checks on applicants to fire departments in Minnesota, and to allow background checks on current employees. The section also requires that the fire chief perform criminal history record checks. Effective Aug. 1, 2013. • Miscellaneous background check requirements. Sections 33-35 establish background check requirements on individuals applying for an explosives license (Minn. Stat. § 299F.73), wholesale liquor license (Minn. Stat. § 340A.301), or retail liquor license (Minn. Stat. § 340A.402). Effective Aug. 1, 2013. (PH)

ECONOMIC DEVELOPMENT Additional security for development authority loans authorized Chapter 64 (HF 368/SF 340*) amends Minn. Stat. § 116J.5764, subd. 1, the statute authorizing the Department of Employment and Economic Development (DEED) to administer demolition redevelopment loans to development authorities. The law expands the acceptable means by which an authority may secure a loan to pay for demolition costs from solely a general obligation of the authority payable primarily from a dedicated revenue source to include other security subject to review and approval by DEED, such as TIF or land sale proceeds. Effective Aug. 1, 2013. (PH) Jobs, economic development, housing, commerce and energy omnibus budget bill Chapter 85 (HF 729*/SF 1057) is the omnibus jobs, economic development, housing, commerce, and energy bill. It appropriates biennial funding for the Department of Employment and Economic Development (DEED), Housing Finance Agency (HFA), Department of Labor & Industry (DLI), Department of Commerce, Public Utilities Commission (PUC), and various boards. The provisions relating to the jobs and economic development portion of the bills of interest to cities are summarized below. (Note: See corresponding issue areas for summaries of other projects.) Article 1: Appropriations Employment and economic development • Minnesota Investment Fund (MIF). Section 3, subd. 2(a) appropriates $15 million in FY 2014 and 2015 for the MIF program. MIF funds are available to local units of government to provide loans to assist expanding businesses.

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·· Baxter Pharmaceuticals plant in Brooklyn Park. $3 million of the MIF funding is available in FY 2014 for a forgivable loan to facilitate the purchase and operation of a biopharmaceutical manufacturing facility in Brooklyn Park (Baxter Pharmaceuticals). If the project meets performance goals the initial loan will be forgiven, and an additional $2 million made available for subsequent investment. The facility is also eligible for funding through the newly-created Minnesota Job Creation Fund (see Article 3, sec. 8 below). • Minnesota Job Creation Fund. Section 3, subd. 2(b) appropriates $12 million in FY 2014 and 2015 for the newly created Minnesota Job Creation Fund in Minn. Stat. § 116J.8748 (see Article 3, sec. 8 below). • Contaminated site cleanup. Section 3, subds. 2(c) and (d) appropriate approximately $2 million in FY 2014 and 2015 for the contaminated site clean-up and development grant program. • Business development grants. Section 3, subd. 2(e) appropriates $1.425 million in FY 2014 and 2015 for business development competitive grants. • Jobs Skills Partnership. Section 3, subd. 2(f) appropriates $4.195 million in FY 2014 and 2015 for the Jobs Skills Partnership in Minn. Stat. § 116L.01. • Redevelopment program. Section 3, subd. 2(g) appropriates $6 million in FY 2014 and 2015 for the Redevelopment program under Minn. Stat. § 116J. 571. The program provides communities with grants to pay up to 50 percent of the costs or redeveloping blighted industrial, residential, or commercial sites. • Host Community Economic Development program. Section 3, subd. 2(r) appropriates $875,000 in FY 2014 and 2015 for the Host Community Economic Development program created in Minn. Stat. § 116J.548 (see Article 3, sec. 3 below). • Workforce development • Section 3, subd. 3 appropriates $16.3 million in FY 2014 and $14.8 million in FY 2015 for workforce development programs. • Minnesota Trade Office • Section 3, subd. 5 appropriates $2.3 million in FY 2014 and $2.3 million in FY 2015 for the Minnesota Trade Office operations. ·· STEP Grants. Of the Trade Office appropriation, $330,000 in FY 2014 and $300,000 in FY 2015 are for the newly created STEP grant program (see Article 3, sec. 11 below). ·· Minnesota Marketing. Of the Trade Office appropriation, $180,000 in FY 2014 and 2015 are for the newly created Minnesota Marketing Initiative (see Article 3, sec. 12 below). ·· Trade Policy Advisory Group. Of the Trade Office appropriation, $50,000 in FY 2014 and 2015


are for the newly created Trade Policy Advisory Group (see Article 3, sec. 9 below). • Competitive grant limitation • Section 8 (technical corrections bill, Laws 2013, Ch. 144, Sec. 3) states that no entity receiving a direct appropriation under Article 3, may apply for a competitive grant under this section during the fiscal years in which the direct appropriations are received. Appropriations are effective July 1, 2013. Article 2: Department of Labor & Industry (DLI) policy provisions • Misrepresentation subject to compliance order. Section 2 amends Minn. Stat. § 177.27, subd. 4 by adding the statute prohibiting the misrepresentation of employment relationship (i.e., independent contractor vs. employee) to the list of laws for which DLI may issue a compliance order. Effective July 1, 2013. • Violation of consent orders. Section 5 amends Minn. Stat. § 326B.081, subd. 3 to allow the commissioner to deny, suspend, limit, or place conditions on a permit or license if the licensee has violated a consent order or final order of the commissioner. Effective July 1, 2013. • Payment of examination fees. Section 6 amends Minn. Stat. § 326B.093, subd. 4 and extends the time that an applicant for a license has to pay the license fee from 90 to 180 days after notification of passing the examination. Effective July 1, 2013. • Scope of State Building Code. Sections 7 & 9 amend Minn. Stat. §§ 326B.101 and 326B.121 to clarify that the State Building Code governs the use of buildings, in addition to their construction, reconstruction, alteration, and repair. Effective July 1, 2013. • Definition of “public building.” Section 8 amends Minn. Stat. § 326B.103, subd. 1 to include a charter school building project in excess of $100,000 in the definition of a public building. Effective July 1, 2013. • Elevator constructor license created. Sections 10-30 establish the requirements for the licensing and registration of elevator constructors and contractors. Effective July 1, 2013. • Specification review agreements with municipalities. Section 32 amends Minn. Stat. § 326B.43, subd. 2 to update statutory cross references defining which public buildings require state review of plumbing plans and specifications. Effective July 1, 2013. • Accelerated plan review eliminated. Section 33 deletes a clause from Minn. Stat. § 326B.49, subd. 2 that provides for an accelerated plumbing plan review at twice the regular fee. Effective Jan. 1, 2014. • Plumbing fees restructured. Section 34 restructures the plumbing review fees in Minn. Stat. § 326B.49, subd. 3. Effective Jan. 1, 2014.

2013 Law Summaries

• Contractor Recovery Fund. Section 35 amends Minn. Stat. § 326B.89, subd. 1, and restricts the definition of owner for purposes of the Contractor Recovery Fund to exclude an owner who intends to use the property for a business purpose and not as owneroccupied real estate. An excluded owner would not be eligible to receive compensation from the fund. Effective July 1, 2013. • Manufactured home dealer license changes. Section 36 amends Minn. Stat. § 327B.04, subd. 4 and exempts certain owners of manufactured home parks from meeting the two-year prior experience requirement necessary for obtaining a dealer license. Effective July 1, 2013. Article 3: Department of Employment and Economic Development (DEED) policy provisions • Cost of living study. Section 1 adds a new statute, Minn. Stat. § 116J.013, which requires DEED to conduct an annual cost of living study in Minnesota. The study must include an analysis of statewide and county cost-of-living data, employment data, and job vacancy data. Effective July 1, 2013. • Labor market data. Section 2 adds a new statute, Minn. Stat. § 116J.4011, which requires DEED, in consultation with the Office of Higher Education and local workforce councils, to produce and publish a labor market analysis describing the alignment between employer requirements and workforce qualifications. The information must be easily accessible and readable, and prominently presented on the websites of DEED and workforce centers. Effective July 1, 2013. • Host community economic development grants. Section 3 creates a new program in Minn. Stat. § 116J.548 that will provide grants for the acquisition and betterment of public owned capital improvements to communities in the seven-county metro area that host waste disposal facilities. There is no local match required. Effective July 1, 2013. • Small cities development block grant changes. Section 4 modifies Minn. Stat. § 116J.8731, subd. 2 to allow DEED to provide a forgivable loan from the Small Cities Development Block Grant Program directly to a private enterprise without requiring an application from the local community, other than a resolution of support. Eligible applicants include development authorities, provided they have municipal approval. Effective July 1, 2013. • Minnesota Investment Fund loans authorized. Section 5 amends Minn. Stat. § 116J.8731, subd. 3 and authorizes the Minnesota Investment Fund (MIF) to fund loans (in addition to grants) for infrastructure. Effective July 1, 2013. • Minnesota Job Creation Fund. Section 8 creates the Minnesota Job Creation Fund, an initiative of Gov.

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Dayton designed to replace the expiring JOB-Z program. Unlike JOB-Z, the Job Creation Fund is available statewide. The fund will provide up to $1 million to businesses that meet job creation and private investment requirements. To qualify, a business must create at least 10 jobs and make $500,000 in private investment. A qualifying business must be engaged in manufacturing, warehousing, distribution, information technology, finance, insurance, or professional/technical services. “Professional services” does not include work performed primarily by attorneys, accountants, business consultants, physicians, or health care consultants. Local government approval required. In order to qualify, a business must submit an application to the local government where the facility will be located, and the local government must submit the application and other required materials to DEED. Effective July 1, 2013. • Trade Policy Advisory Council established. Section 9 creates a new 15-member trade policy advisory council to advise the governor and Legislature regarding U.S. trade agreements. The council will consist of two senators; two representatives; the commissioners of DEED, Agriculture, and Administration; and eight persons appointed by the governor. Effective July 1, 2013. • Minnesota trade offices established. Section 10 creates a new statute, Minn. Stat. § 116J.978, directing DEED to establish three trade offices in foreign markets selected for their potential to increase Minnesota exports and attract foreign investment. Effective July 1, 2013. • STEP Grants created. Section 11 creates a new statute, Minn. Stat. § 116J.979, directing DEED to establish a new STEP (State Trade and Export Promotion) grant program to provide assistance to Minnesota companies with an interest in exporting products or services to foreign markets. The maximum grant is $7,500. Effective July 1, 2013. • Invest Minnesota marketing initiative. Section 12 creates a new statute, Minn. Stat. § 116J.9801, directing DEED to establish an initiative to brand the state’s economic development initiatives and promote Minnesota business opportunities. Effective July 1, 2013. • Dakota County CDA granted MIF authority. Section 22 creates a new statute, Minn. Stat. § 383D.412, granting the Dakota County Community Development Agency the authority to apply for and receive state money from the Minnesota Investment Fund. Currently, only general purpose local governments are eligible recipients. The Dakota County Board must pass a resolution approving such treatment, and the members of the County Board must be the same as the members of the CDA. Effective July 1, 2013. Article 5: Miscellaneous provisions • Use of paper made in Minnesota. Section 1 amends Minn. Stat. § 16B.122 to require public entities, includ-

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ing cities, to purchase paper which has been made on a paper machine located in Minnesota, whenever practicable. This is in addition to existing requirements related to the purchase and use of paper by public entities. Effective July 1, 2013. • Municipal regulation of barber shops. Section 17 clarifies Minn. Stat. § 154.26. Current law states that a municipality may regulate the operating hours of a barber shop within its municipal limits, and the new language clarifies that this power is in addition to all other applicable local regulations. Effective July 1, 2013. • Office of Collaboration and Dispute Resolution created. Sections 31 & 32 create an Office of Collaboration and Dispute Resolution within the Bureau of Mediation Services to promote the use of community mediation and to assist state agencies and local governments to improve collaboration and dispute resolution. The Bureau is authorized to issue grants to nonprofit community mediation entities that assist in resolution of disputes. Effective July 1, 2013. (PH)



ELECTIONS

Omnibus elections policy bill Chapter 131 (HF 894*/SF 677) is the omnibus elections bill. Some of the most notable changes to elections administration include: permitting no excuse absentee voting; reducing the number of voters who can be vouched for from 15 to eight; reducing the number of elections judges from four to three except in statewide elections; establishing pilot sites for the use of electronic rosters and a task force; and specifying the conditions under which a vacancy in nomination exists for a partisan and non-partisan office. Article 1: Absentee voting modifications • No excuse absentee voting. Section 2 amends Minn. Stat. § 203B.02, subd. 1 establishing no excuse absentee voting. Sections 3 and 4 amend Minn. Stat. § 203B.04 to make conforming changes. • Processing absentee ballots seven days before Election Day. Section 8 amends Minn. Stat. § 203B.121, to increase the time to process absentee ballots from four days prior to Election Day to seven. Sections 6 and 7 amend Minn. Stat. § 203B.121 making conforming changes. Effective Jan. 1, 2014, and applies to voting at elections conducted on the date of the state primary in 2014 and thereafter. Article 2: Elections administration including redistricting, vouching and public funded recounts Several sections eliminate obsolete reference in law that assign and title ballots in a particular color, based on the


offices or questions to be presented on the ballot. Modifications for ballot questions are made in several sections. • Sections 1 and 2 modify the boundaries of senate districts 39 (Stillwater City/Stillwater Township) and 49 (Edina) and their house districts (39A and B/49A and B, respectively) to correct redistricting errors as ordered by a Special Redistricting Panel on Feb. 21, 2012. Effective for the state primary and state general elections conducted in 2014 for terms of office beginning on the first Monday in January 2015, and for all elections held thereafter. • Section 7 amends Minn. Stat. § 201.061, subd. 3 to reduce the number of persons a voter may vouch of in the polling place on election day from 15 to eight. An existing exemption from this limitation for employees of defined residential facilities is unchanged. • Section 9 amends Minn. Stat. § 201.091, subd. 8 to eliminate the requirement of at least one telecommunications device for the deaf for voter registration information in every city of the first, second and third class. • Section 14 amends Minn. Stat. § 203B.05, subd. 1 to require that the municipal clerk who has been designated to administer absentee ballots must also be responsible for the administration of a ballot board as provided in section 203B.121. A clerk of a city that is located in more than one county may only administer absentee ballots and the absentee ballot board if the clerk has been designated by each of the county auditors or provided notice to them that the city will administer absentee voting. • Section 15 amends Minn. Stat. § 203B.08, subd. 3 instructing that absentee ballots received on Election Day either after 3 p.m. or after the last mail delivery be marked as received late and not delivered to the ballot board. • Section 17 amends Minn. Stat. § 203B.121, subd. 1 to allow ballot boards to include deputy city clerks who have received training in the processing and counting of absentee ballots. • Section 21 amends Minn. Stat. § 203B.04 by creating a fourth subdivision prohibiting a candidate who files an affidavit of candidacy for one office to subsequently file another affidavit of candidacy for a different office to be elected at the same general election, unless the candidate withdraws the first affidavit of candidacy. • Section 23 amends Minn. Stat. § 204B.22, subd. 1 reducing the required number of elections judges from four to three in a precinct for elections other than the state a general election except for precincts with fewer than 500 registered voters. Those precincts may use the minimum number of three elections judges for the state general election. • Section 33 amends Minn. Stat. § 204C.15, subd. 1 eliminates an allowance for election judges to select two individuals of different major political parties to assist a voter in marking the voter’s ballot. A voter may select a person to assist.

2013 Law Summaries

• Section 39 amends Minn. Stat. § 204C.36, subd. 1 modifies the vote different thresholds for publicly funded recounts at the expense of the city. If there are 50,000 or more votes cast, a recount may be requests if the difference between the apparent winner and loser is 0.25 percent. If the number of votes cast is more than 400, but less than 50,000, the difference must be less than 0.5 percent. • Section 52 amends Minn. Stat. § 204D.19, subd. 2 prohibiting a special election when the Legislature is in session , when the Legislature will be in session for the elected person to be seated, from occurring during the four days before or after a state holiday as defined in Minn. Stat. § 645.44, subd. 5. • Section 54 amends Minn. Stat. § 205.10, subd. 3 amends the time period in which cities may conduct a special election prohibiting cities from holding a special election as defined in subd. 1 from 40 to 56 days after the state general election. • Section 55 amends Minn. Stat. § 205.13, subd. 1a adding the requirement that municipal clerks’ offices accept candidate filings from 1 p.m. to 5 p.m. on the last day of the filing period for municipal offices. • Section 56 amends Minn. Stat. § 205.16, subd. 4 increasing the number of days before a municipal election that the municipal clerk must provide notice of the election to the county auditor from 67 to 74 days. Section 57 amends Minn. Stat. § 205.16, subd. 5 for notice to the Secretary of State. • Sections 58 and 59 amend Minn. Stat. § 205.13 to standardize ballot formatting requirements across all cities and towns for municipal primary elections. • Section 67 amends Minn. Stat. § 206.57, adding subdivision 8 exempting precincts using a precinct count voting system from a requirement that ballot boxes contain two separate compartments. The requirement is currently contained in administrative rule 8230.4355. Effective May 24, 2013. • Section 69 Minn. Stat. § 206.89, subd. 2 requiring that the postelection review must not begin before the 11th day after the state general election and must be completed no later than the 18th day after the state general election. This section also allows for the counting of absentee ballots with all other ballots from the individual precinct if the precinct is selected for review. • Section 70 amends Minn. Stat. § 206.89 adding a new subdivision providing that a postelection review is not required for an office that may be subject to a publicly funded recount. • Section 71 amends Minn. Stat. § 206.90, subd. 6 modifying standards for titling ballots in precincts using an optical scan voting system. In state elections, a single ballot title must be used, as provided in sections 204D.08, subdivision 6, and 204D.11, subdivision 1. In odd-numbered

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years when both municipal and school district offices or questions appear on the ballot, the single ballot title “City (or Town) and School District Ballot” must be used. • Section 78 amends Minn. Stat. § 340A.62 to standardize the form of a referendum ballot question related to the operation of a municipal liquor store to “Shall the city of (name) discontinue operating the municipal liquor store on (Month xx, 2xxx)?” • Section 84 appropriates $60,000 to the Office of the Secretary of State to develop functionality within the statewide voter registration system to facilitate the processing and tracking of mail ballots. Effective July 1, 2013 unless otherwise noted. Article 3: Loss and restoration of voting rights This article streamlines data sharing of those convicted of a felony whose voting rights have not been restored between the Department of Corrections and the Office of the Secretary of State. Of most relevance to cities is section 4, subd. 3, which amends Minn. Stat. § 203B.06, subd. 3. If a municipal clerk receives application for an absentee ballot with an address of an adult correctional facility, they must promptly transmit a copy of the application to the county attorney for investigation. Effective June 15, 2013. Article 4: Electronic rosters This language is 2013 session law and establishes electronic roster pilot sites and a task force. • Electronic roster pilot project. The jurisdictions that may participate as pilot sites for the 2013 municipal elections are Dilworth, Minnetonka, Moorhead, Saint Anthony, and Saint Paul. Each city that chooses to participate will identify certain precincts that will use the rosters for election day registration, and then upload the data to the statewide voter registration system (SVRS). • Electronic roster task force. The task force will consist of 15 members and research various issues related to the use of the rosters, including the ability to use photographs within the rosters. The League of Minnesota Cities will appoint one member to the task force and the first meeting will be convened by July 1, 2013 by the Office of the Secretary of State. A report summarizing the group’s findings on the data security, reliability, and transferability to the SVRS must be completed and submitted to the appropriate legislative committees by Jan. 31, 2014. Effective May 24, 2013. Article 5:Vacancies in nomination This article modifies existing language regarding death or withdrawal for partisan offices and establishes a new section of law for vacancies in nomination for non-partisan office.

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• Vacancy in nomination for partisan office. Sections 1-7 amend Minn. Stat. § 204B.13 establishing the conditions under which a vacancy in nomination exists for a partisan office. A vacancy exists when a candidate: dies; withdraws during the withdrawal period of two days after the filing period for the office closes; or withdraws by filing an affidavit of withdrawal, at least one day prior to the general election, due to a catastrophic illness that will permanently and continuously incapacitate and prevent the candidate from performing the duties of the office sought. An affidavit under this clause must be accompanied by a certificate verifying the illness, signed by at least two licensed physicians. If the vacancy in nomination occurs 79 or more days before the general election (the 79th day prior to a general election falls in mid-late August), the candidate’s political party may file a certificate nominating a new candidate, no later than 71 days before the general election, and that newly-named candidate must appear on the general election ballot. The party is permitted to provide its own internal rules for selecting a new nominee. If the vacancy in nomination occurs within 79 days of the general election, the general election ballot would remain unchanged (the name of the candidate that died or withdrew would remain on the ballot), but the results of that election would not be counted. Instead, the office would move to a special election. If a special election is required, all other candidates appearing on the ballot for that office automatically are forwarded to the special election ballot; no new candidate filings are permitted. The major political party of the candidate that died or withdrew would be permitted to nominate a new candidate, no later than seven days after the general election.Voters voting in a polling place on the date of the general election must be notified of the procedure for conducting the special election for the affected office. • Vacancy in nomination for non-partisan office. Sections 8-11 recodify existing law into Minn. Stat. § 204B.13 related to vacancies in nomination when a candidate formally withdraws and adds a new provision providing that a vacancy in nomination also exists if a candidate for a non-partisan office—except a judicial office—for which only one or two candidates filed or who was nominated at a primary dies more than 79 days prior to the date of the general election. If a vacancy in nomination occurs under one of the situations specified in this section, the candidate filing period for the office would be re-opened, allowing new candidates to file for the office. In the event of a death of a non-partisan candidate 79 or fewer days prior to the date of the election, or the death of a judicial candidate regardless of the date of death, the deceased candidate’s name would continue to appear on the ballot. If the deceased candidate is elected, the office would be declared vacant at the start


of the new term and filled following procedures contained in existing law. Effective May 24, 2013, and applies to vacancies in nomination on or after that date. (AL)

EMERGENCY MEDICAL SERVICES Emergency medical responders requirements modified Chapter 13 (HF 201/SF 166*) modifies provisions to include advanced emergency medical technicians (AEMT) in the staffing requirements for advanced life support responses. It also updates inspections provisions and provides requirements for emergency medical responder registration. • Advanced life support staffing requirements modified. Section 1 amends Minn. Stat. § 144E.101, subd. 7, to include “advanced emergency medical technician” (AEMT) in the requirements for minimum staffing for an advanced life-support ambulance. • Inspections of electronic files authorized. Section 2 amends Minn. Stat. § 144E.18 to specify that the Emergency Medical Services Regulatory Board (EMSRB) may review electronic files when inspecting ambulance services. • Education programs conforming changes provided. Section 3 amends Minn. Stat. § 144E.27, subd. 1, to make conforming changes with section 4 below. • Education programs approval required. Section 4 amends Minn. Stat. § 144E.27, by adding a subdivision. It requires that all education programs for emergency medical responders must be approved by the EMSRB. The section also sets out criteria for board approval. • AEMT and paramedic requirements specified. Section 5 amends Minn. Stat. § 144E.285, subd. 2. It adds AEMT to provisions related to education requirements for paramedics. • Reapproval programs requirements modified. Section 6 amends Minn. Stat. § 144E.285, subd. 4. It modifies reapproval requirements for education programs for EMTs, AEMTs and paramedics by adding that for reapproval, programs must maintain the minimum average yearly pass rate set by the EMSRB. Effective Aug. 1, 2013. (AF) Continuing education requirements for community paramedics modified Chapter 18 (HF 75*/SF 39) amends Minn. Stat. § 144E.28, subd. 9. It requires that, in addition to existing paramedic continuing education requirements, an individual certified as a community paramedic must complete 12 hours of continuing education in clinical topics approved by the ambulance service medical director. Effective Aug. 1, 2013. (AF)

2013 Law Summaries



EMPLOYMENT

Workers’ Compensation Reinsurance Association requirements modified Chapter 15 (HF 504*/SF 372) amends Minn. Stat. § 79.35, which relates to the Workers’ Compensation Reinsurance Association (WCRA), a nonprofit reinsurance pool to which state law requires workers’ compensation insurance companies, and employers that self-insure for workers’ compensation, to be members. The chapter eliminates one component of the premium required for the reinsurance coverage, namely the cost of the claims that exceed the prefunded limit. It also eliminates from the law any references to the prefunded limit. Effective Jan. 1, 2015. (AF) Prompt payment of wages modified Chapter 27 (HF 748*/SF 602) amends two sections of law relating to payment of wages upon discharge and payment of wages upon quitting or resignation. Similar changes are made to each section of law. • Penalty for failure to make payment of wages promptly modified. Section 1 amends Minn. Stat. § 181.13, a law regulating an employer’s payment of wages upon the discharge of an employee. It requires the payment of wages at a rate in excess of the regular rate if the higher rate is set by law, regulation, rule, ordinance, government resolution or policy, contract, or other legal authority. An employee may recover an additional amount equal to the unpaid wages as compensatory damages. An employee’s demand for payment under this section must be in writing, but need not state the precise amount of unpaid wages or commissions. An employee may directly seek and recover payment from an employer under this section even if the employee is not a party to a contract that requires the employer to pay the employee at the rate of pay demanded by the employee, so long as the contract or any applicable statute, regulation, rule, ordinance, government resolution, or policy, or other legal authority requires payment to the employee at the particular rate of pay. The employee shall be able to directly seek payment at the highest rate of pay provided in the contract or applicable law, and any other related remedies as provided in the section. • Prompt payment to employees who quit or resign modified. Section 2 amends Minn. Stat. § 181.14, a law relating to payment to employees who quit or resign. It provides that wages are earned and unpaid if the employee was not paid for all time worked at the regular rate of pay or the rate required by law, regulation, rule, ordinance, resolution, policy, contract, or other legal authority, whichever is greater. An employee’s demand for payment under this section must be in writing but need not state the precise amount of unpaid

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wages or commissions. An employee may directly seek and recover payment from an employer under this section even if the employee is not a party to a contract that requires the employer to pay the employee at the rate of pay demanded by the employee, so long as the contract or any applicable statute, regulation, rule, ordinance, government resolution or policy, or other legal authority requires payment to the employee at the particular rate of pay. The employee shall be able to directly seek payment at the highest rate of pay provided in the contract or applicable law, and any other remedies related thereto as provided in this section. • Prompt payment requirement waived under certain circumstances. Section 2 also removes language eliminating coverage of the law to any employee after a quit or discharge, who, upon audit, is found to have not properly accounted for or paid to the employer funds or property for which they were responsible. It prohibits any deductions from wages due or earned unless specifically authorized. Effective April 30, 2013. (AF)

• Private employers added to “Ban the Box” law. Section 3 amends Minn. Stat. § 364.021 by adding private employers to those who cannot inquire into or consider the criminal history of a job applicant until the applicant has been selected for an interview. Existing law currently applies only to public employers. • Private employers investigation and remedies provided. Section 4 adds a subdivision to Minn. Stat. § 364.06. It provides for investigation and the imposition of fines by the commissioner of the Department of Human Rights for private sector violations of the “Ban the Box” law. • Exception provided. Section 5 amends Minn. Stat. § 364.09. It states that the law does not supersede other statutorily-required criminal history background checks or records required for particular employment. • Violation of civil rights clarified to include public employer violations. Section 6 amends Minn. Stat. § 364.10 by clarifying that a violation of the rights established in Minn. Stat. § 364.01 to 364.10 by a public employer constitutes a violation of a person’s civil rights. Effective Jan, 1, 2014. (AF)

Limits on reliance on criminal history for employment purposes expanded Chapter 61 (HF 690/SF 523*) amends the “Ban the Box” law. It clarifies the existing law that applies to public employers, and expands the limits on reliance on criminal history to include private employers. It also applies criminal offender rehabilitation requirements to private employers. • Conditions precident to employment not required. Section 1 amends Minn. Stat. § 181.53 by clarifying that nothing in this section precludes an employer from requesting or considering an applicant’s criminal history pursuant to Minn. Stat. § 364.021, which exempts the Department of Corrections and other public employers that have a statutory duty to conduct a criminal history background check or otherwise take into consideration a potential employee’s criminal history during the hiring process or other applicable law. • Limitation on admissibility of criminal history provided. Section 2 amends Minn. Stat. § 181.981, subd. 1, by providing that information regarding a criminal history record of an employee or former employee may not be introduced as evidence in a civil action against a private employer or its employees or agents that is based on the conduct of the employee or former employee, if the action is based solely upon the employer’s compliance with section 364.021, which exempts the Department of Corrections and other public employers who have a statutory duty to conduct a criminal history background check or otherwise take into consideration a potential employee’s criminal history during the hiring process or other applicable law.

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Workers’ compensation modifications provided Chapter 70 (HF 1359/SF 1234*) makes policy and housekeeping changes made to worker’s compensation, adopts recommendations of the Workers’ Compensation Advisory Council and requires a report. Article 1: Dept. of Labor and Industry (DLI) provisions modified Article 1 contains provisions pertaining to DLI. • Complaint investigation requirement modified. Section 1 amends Minn. Stat. § 176.102, subd. 3a, by giving the commissioner of DLI the discretion over whether to investigate a complaint filed against a qualified rehabilitation consultant (QRC) or rehabilitation vendor. Existing law provides that the commissioner must investigate. Effective May 17, 2013. • $7,500 cap pertaining to administrative conferences modified. Section 2 amends Minn. Stat § 176.106, subd. 1. Currently, DLI may hold administrative conferences and issue decisions involving medical disputes where the amount involved is $7,500 or less. This section removes the $7,500 cap when the issue being disputed is whether the provider’s charge for a service or product is excessive. Effective May 17, 2013, and applies to medical disputes filed on or after that date. • Special compensation fund reports modified. Section 3 amends Minn. Stat. § 176.129, subd. 13. It clarifies that an insolvent insurer is not entitled to reimbursement of supplementary or second injury benefits from the special compensation fund, except for those who filed for reimbursement prior to June 1, 2013. Effective May


17, 2013, and applies to claims for reimbursement filed with the special compensation fund on or after that date. • Workers’ compensation medical data use for genetic information prohibited. Section 4 amends Minn. Stat. § 176.138. It provides that medical data collected, stored, used, or disseminated by or filed with the DLI in connection with a claim for workers’ compensation benefits does not constitute genetic information for the purposes of Minn. Stat. § 13.386. Effective May 17, 2013. • Notice by DLI, rights of parties modified. Section 5 amends Minn. Stat. § 176.183, subd. 4. It requires the special compensation fund to provide notice to employers of a proposed settlement together with a copy of the settlement agreement. The notice must state that if the employer does not object to the settlement within 15 days, it will be deemed to have waived any defenses it may have to a subsequent claim for reimbursement by the fund. Effective May 17, 2013. • Receipts for payment of compensation and filing modified. Section 6 amends Minn. Stat. § 176.245. It allows DLI to use any type of sampling methodology to perform the evaluation of whether insurers and employers are providing the department evidence of payment of compensation. Current law requires the department to use Six Sigma methodology. Effective May 17, 2013. • Settlement of claims provision modified. Section 7 amends Minn. Stat. § 176.521. It provides that if a workers’ compensation case is settled at the time it is pending before the Workers’ Compensation Court of Appeals, the proposed settlement must be approved by an administrative law judge (rather than the Workers’ Compensation Court of Appeals). Effective for settlement agreements submitted for approval on or after July 1, 2013. Article 2:Workers’ Compensation Advisory Council (WCAC) recommendations adopted Article 2 contains provisions recommended by the WCAC. • Definition of “occupational disease” expanded to include mental impairments. Section 1 amends Minn. Stat. § 176.011, subd. 15. It modifies the definition of “occupational disease” to mean mental impairments or physical diseases arising out of and in the course of employment to provide coverage for post-traumatic stress disorder (PTSD). Mental impairment means a diagnosis of PTSD by a licensed psychiatrist or psychologist. Mental impairment is not considered a disease if it results from a disciplinary action, work evaluation, job transfer, layoff, demotion, promotion, termination, retirement, or similar action taken in good faith by the employer. Effective Oct. 1, 2013, and applies to injuries occurring after that date. • Definition of “personal injury” expanded to include mental impairments. Section 2 amends Minn. Stat. § 176.011, subd. 16. It modifies the defini-

2013 Law Summaries

tion of “personal injury” to mean mental impairments or physical diseases arising out of and in the course of employment to provide coverage for PTSD. Effective Oct. 1, 2013, and applies to injuries occurring after that date. • Limitation of fees modified. Section 3 amends Minn. Stat. § 176.081, subd. 1. It increases the cap on legal services fees to $26,000. The current cap is $13,000. Effective Oct. 1, 2013, and applies to injuries occurring after that date. • Additional award authorization clarified. Section 4 amends Minn. Stat. § 176.081, subd. 7. It clarifies that the subdivision applies only to contingent fees payable from the employee’s compensation benefits, and not to other fees paid by the employer and insurer, including but not limited to those fees payable for resolution of a medical dispute or rehabilitation dispute, or pursuant to Minn. Stat. § 176.191. Effective Oct. 1, 2013, and applies to injuries occurring after that date. • Temporary total disability benefit level increased. Section 5 amends Minn. Stat. § 176.101, subd. 1. It increases the maximum weekly benefit amount from the current law level of $850 per week to 102 percent of the statewide average weekly wage for the period ending Dec. 31 of the preceding year. Effective Oct. 1, 2013, and applies to injuries occurring after that date. • Job development services limitations provided. Section 6 adds a provision to Minn. Stat. § 176.102, subd. 5. It provides that “job development” means systematic contact with prospective employers resulting in opportunities for interviews and employment that might not otherwise have existed, and includes identification of job leads and arranging for job interviews. Job development facilitates a prospective employer’s consideration of a qualified employee for employment. Job development services provided by a qualified rehabilitation consultant firm or a registered rehabilitation vendor must not exceed 20 hours per month or 26 consecutive or intermittent weeks. When 13 consecutive or intermittent weeks of job development services have been provided, the qualified rehabilitation consultant must consult with the parties and either file a plan amendment reflecting an agreement by the parties to extend job development services for up to an additional 13 consecutive or intermittent weeks, or file a request for a rehabilitation conference under Minn. Stat. § 176.106. The commissioner of DLI or a compensation judge may issue an order modifying the rehabilitation plan or make other determinations about the employee’s rehabilitation, but must not order more than 26 total consecutive or intermittent weeks of job development services. Effective Oct. 1, 2013, and applies to injuries occurring after that date. • Rehabilitation consultants and vendors limits provided. Section 7 amends Minn. Stat. § 176.102, subd. 10. It provides that an individual qualified rehabilitation consultant registered by DLI must not provide any medical, rehabilitation, or disability case management services related to an injury that is compensable under

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this chapter when these services are part of the same claim, unless the case management services are part of an approved rehabilitation plan. Effective Oct. 1, 2013. • Administrative conference 60 day requirement modified. Section 8 amends Minn. Stat. § 176.106, subd. 3. It directs that administrative conferences on rehabilitation issues must be held within 21 days after a conference is requested, unless the issue involves only fees for rehab services that were already provided, or there is good cause for holding the hearing later than 21 days. Effective Oct. 1, 2013. • Liability limit technical change provided. Section 9 amends Minn. Stat. § 176.136, subd. 1b. It specifies that a prevailing charge for treatment, services, and supplies, and the liability of the employer, is limited. It must be based on no more than two years of billing data immediately preceding the service. Effective on Oct. 1, 2013, and must be used to establish prevailing charges on or after that date. • Adjustment of benefits modified. Section 10 amends Minn. Stat. § 176.645. It provides that, for injuries occurring on and after Oct. 1, 2013, no adjustment increase shall exceed 3 percent a year. If the adjustment under the formula of this section would exceed 3 percent, the increase shall be 3 percent. No adjustment under this section shall be less than 0 percent. Effective Oct. 1, 2013, and applies to injuries occurring on and after that date. • Treatment standards for medical services clarified. Section 11 amends Minn. Stat. § 176.83, subd. 5. It clarifies the DLI commissioner’s current rulemaking authority to specifically address criteria for use of opioids or other narcotic medications. Effective Oct. 1, 2013, and applies to employees with all dates of injury who receive treatment after the rules are adopted. • Patient advocate pilot program established. Section 12 is a 2013 Session Law directing the commissioner of DLI to implement a two-year patient advocate program for employees with back injuries who are considering back fusion surgery. The purpose of the program is to ensure that injured workers understand their treatment options and receive treatment for their work injuries according to accepted medical standards. The services provided by the patient advocate will be paid for from the special compensation fund. Effective Oct. 1, 2013. • Reimbursement cost study required. Section 12 is a 2013 Session Law directing the commissioner of DLI to study the effectiveness and costs of potential reforms and barriers within the workers’ compensation carrier and health care provider reimbursement system, including, but not limited to, carrier administrative costs, prompt payment, uniform claim components, and the effect on provider reimbursements and injured worker co-payments of implementing the subjects studied. The commissioner must consult with interested stakeholders including health care providers, workers’ compensation

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insurance carriers, and representatives of business and labor to provide relevant data promptly to the department to complete the study. The commissioner must report findings and recommendations to the Workers’ Compensation Advisory Council by Dec. 31, 2013. Effective May 17, 2013. (AF) Gender-neutral marriage authorized Chapter 74 (HF 1054*/SF 925) amends Minn. Stat. Ch. 517. It changes the legal definition of marriage from “between a man and a woman” to “between two persons,” and removes a conforming requirement that a legal marriage may only be between persons of the opposite sex. It authorizes the marriage and divorce of two persons, regardless of gender, and recognizes for purposes of Minnesota law marriages performed in other jurisdictions, regardless of the gender of the persons in the marriage. It also contains provisions which permit churches and religious associations to choose who can be married in their faith and to whom they will provide services, without the risk of liability. Finally, it provides that, wherever the term “marriage,” “marital,” “marry,” or “married” is used in Minnesota Statute in reference to the rights, obligations, or privileges of a couple under law, the term includes civil marriage, or individuals subject to civil marriage, as established by this chapter. A term subject to this definition must also be interpreted in reference to the context in which it appears, but may not be interpreted to limit or exclude any individual who has entered into a valid civil marriage contract under this chapter. (Note:This section is summarized in the 2013 Law Summaries to alert cities that the new law requires employers to treat married couples the same, regardless of the gender of the persons in the marriage, for purposes of providing employee benefits.) Effective Aug. 1, 2013. (AF) State labor contracts ratified Chapter 77 (HF 1069*/SF 1185) is a 2013 Session Law ratifying collective bargaining agreements between the State of Minnesota and employees belonging to collective bargaining units. The agreements were approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on March 11, 2013. • Collective bargaining agreements ratified. Section 1 provides that the agreements reached between the following labor groups and the State of Minnesota are ratified: • American Federation of State, County and Municipal Employees • Inter Faculty Organization • Minnesota Nurses Association • Office of Higher Education (unrepresented employees of the Office of Higher Education) • Minnesota Government Engineering Council


• Minnesota State University Association of Administrative and Service Faculty • Minnesota State College Faculty • Minnesota State Colleges and Universities (MnSCU) Administrators • Minnesota Insurance Marketplace • Minnesota Law Enforcement Association retroactive contract funding provided. Section 2 provides that if a collective bargaining agreement between the commissioner of the Department of Management and Budget (MMB) and the Minnesota Law Enforcement Association for the period from July 1, 2011, to June 30, 2013, is not implemented before June 30, 2013, the commissioner of MMB may allow the employing agencies to carry forward unexpended and unencumbered non-grant operating balances from fiscal year 2013 to provide funding for any retroactive salary increase included in the final collective bargaining agreement for the period from July 1, 2011 to June 30, 2013. Effective May 21, 2013. (AF) Employee sick leave benefit use expanded Chapter 87 (HF 568/SF 840*) amends Minn. Stat. § 181.9413, which requires employers that have 21 or more employees at a work location to allow employees to use accrued personal sick leave to care for a sick child. This chapter expands existing requirement so that an employee can use up to 160 hours of accrued personal sick leave per year to care for an adult child, spouse, sibling, parent, grandparent, or stepparent. The chapter also provides that by Aug. 1, 2014, the commissioner of Minnesota Management and Budget must analyze and report to the standing committees of the House of Representatives and Senate with jurisdiction over labor and workplace issues on the impact on the usage of sick leave by employees of the executive branch of the state as a result of the expansion. The law does not prevent an employer from providing greater sick leave benefits than are provided for under the law. It also does not require employers to increase the amount of sick leave provided to employees, nor does it interfere with existing employer policies related to maximum sick leave accruals. Effective Aug. 1, 2013, and applies to sick leave used on or after that date. (AF)

UNEMPLOYMENT INSURANCE Unemployment insurance provisions in the omnibus jobs and economic development bill Chapter 85 (HF 729*/SF 1057) is the omnibus jobs, economic development, housing, commerce, and energy bill. Article 4 of the bill contains unemployment insurance provisions, many of which are technical changes. The following is a summary of items that may be of interest to cities.

2013 Law Summaries

• Converting layoffs into Minnesota business program. Section 2 amends Minn. Stat. § 116L.17 to create the Minnesota CLIMB program, which is designed to assist dislocated workers in starting or growing a business. Section 9 amends Minn. Stat. § 268.133 to make CLIMB participants eligible for benefits. Participants will be considered to be in reemployment assistance training, but certain earning and working hour limitations under Minn. Stat. § 268.085 may be waived for up to 500 program applicants. Effective July 1, 2013. • Shared work agreement modifications. Sections 10-15 amend the shared work agreement statute, Minn. Stat. § 268.136. The agreements will now be referred to as shared work plans. The amendments add a notice requirement to employees, clarify the commissioner approval process, and allow for the modification of existing shared work plans subject to approval by the commissioner. Effective July 1, 2013. • Additional benefits for locked-out employees. Sections 5-8 amend Minn. Stat. § 268.125 to create additional benefits for employees who stop work as a result of a lock-out. The additional benefits are not available for professional athletes locked out by a professional sports team. Effective May 25, 2013. • Employer tax reduction. Section 18 establishes a temporary reduction in the unemployment insurance employer tax, based upon the balance of the Minnesota Unemployment Trust Fund. (Only cities that have elected to be taxpaying employers pay the unemployment insurance employer tax.) If on Sept. 30, 2013, the fund balance is $800 million, the base tax rate for calendar year 2014 is 0.1 percent and there will be no additional assessment assigned. If on Sept. 30, 2014, the fund balance is more than $900 million, the base tax rate for calendar year 2015 will be 0.1 percent and there will be no additional assessment assigned. This section expires on Dec. 31, 2015. Effective July 1, 2013. (PH)

ENVIRONMENT Technical and consensus drainage law changes made Chapter 4 (*HF66/SF113) includes changes recommended by the Drainage Work Group to the state’s drainage law. The Drainage Work Group is a group of drainage stakeholders facilitated by the Board of Water and Soil Resources (BWSR). The changes primarily update definitions, terminology, and procedures to current drainage management practices, including watershed districts as being eligible drainage authorities, and streamlining record-keeping and record replacement procedures for county and joint-powers drainage authorities. Effective Aug. 1, 2013. (CJ)

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Metro water group sunset extended Chapter 19 (*HF834/SF515) allows the Metropolitan Council to continue to operate the Metropolitan Area Water Supply Advisory Committee through 2016, as described in MN Stat § 473.1565, subdivision 2. This applies only to the seven-county metro area. Effective retroactively from Dec. 31, 2012. (CJ) 180-day process for adopting organized collection replaced with 60-day negotiation period Chapter 45 (*SF510/HF128) eliminates the cumbersome 180-day process for adopting organized collection, and replaces it with a 60-day negotiation period between a city and its licensed collectors. The new process is designed to give the current collectors the first chance to develop a proposal for organized collection. If the 60-day negotiation period ends without an agreement, a city can continue the process by adopting a resolution to form a committee to study organized collection and make recommendations. Cities that have already organized collection are exempt from the new law. Their current organized collection methods continue to govern. The steps for adopting organized solid waste collection under the new law are as follows: • Notice to public and licensed collectors. Before forming a committee to study organized collection, a city with more than one licensed collector must notify the public and its licensed collectors that it is considering organizing collection. The new law does not specify how notice should be provided. The League recommends providing both published notice and individual mailed notice to each licensed collector. • Sixty-day negotiation period. After a city provides notice of its intent to consider organizing collection, it must provide a 60-day negotiation period that is exclusive between the city and its licensed collectors. A city is not required to reach an agreement during this period. • The purpose of the negotiation period is to allow licensed collectors to develop a proposal in which they, as members of an organization of collectors, collect solid waste from designated sections of the city. The proposal must addresses specific issues set out in the new law. • If an agreement is reached with a city’s licensed collectors, it must be effective for three to seven years. The city must provide public notice and hold at least one public hearing before implementing the agreement. Organized collection cannot begin until at least six months after the effective date of the city’s decision to implement organized collection. • Committee formation. If a city does not reach an agreement with its licensed collectors during the negotiation period, it can form—by resolution—an “organized collection options committee” to study

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various methods of organizing collection and issue a report. The city council appoints the committee members, and the committee is subject to the Open Meeting Law. The committee must examine different methods of organizing collection (two of which are specified in the law); establish a list of criteria for evaluating the different methods of collection; collect information from other cities and towns with organized collection; and seek input at a minimum from the city council, the local official responsible for solid waste issues, licensed solid waste and recycling collectors, and city residents. • Public notice, public hearing, and implementation. A city must provide public notice and hold at least one public hearing before deciding to implement organized collection. Organized collection cannot begin until at least six months after the effective date of the city’s decision to implement organized collection. Effective May 8, 2013. (CJ) Environment trust fund projects Chapter 52 (*HF1113/SF987) is the annual package of projects funded from the environment and natural resources trust fund, which is funded through lottery proceeds. The Legislative Citizens Commission on Minnesota Resources (LCCMR) develops the recommendation for a wide range of research and projects related to the environment. Several of this year’s approved projects are of interest to cities. • County geologic atlases. Subd. 3(b) provides $1.2 million to the University of Minnesota to continue to accelerate completion of county geologic atlases. • Specified county geologic atlases. Subd. 3(c) provides $1.2 million to the University of Minnesota for additional work on the county geologic atlases of Houston and Winona Counties. • Wetland inventory. Subd. 3(d) provides $1 million to the Department of Natural Resources for continued work on a statewide wetland inventory. • Hydrogen generation from wastewater. Subd. 5(g) provides $240,000 to the University of Minnesota to research uses of selected bacteria and polymer membranes being used to generate hydrogen from wastewater. • Emerald ash borer. Subd. 6(c) provides $600,000 to the University of Minnesota and the Department of Agriculture to evaluate and implement detection options for emerald ash borer. Effective July 1, 2013. (CJ) Omnibus lands bill Chapter 73 (*HF740/SF886) is the omnibus lands bill. Legislative approval is needed to authorize the sale of taxforfeited parcels bordering public waters. The bill also contains some policy changes related to the acquisition and


transfer of lands for the purposes of serving as school forests in sections 1-5. Sections 1-5 are effective May 21, 2013. The remainder of the sections are effective Aug. 1, 2013. (CJ) Wastewater and stormwater funding program restrictions reduced Chapter 105 (*HF819/SF613) changes language related to wastewater and stormwater grant and loan programs administered through the Public facilities Authority (PFA). • Section 1 expands eligibility of the Total Maximum Daily Load grant program to include phosphorus and nitrogen reduction projects meeting certain criteria. • Sections 2 and 3 fix other criteria in the TMDL grant program to allow that broadened eligibility. • Section 4 increases maximum grant amount for technical assistance grants under the small community wastewater treatment program from $10,000 to $20,000 plus $1,000 (up from $500) for each household up to a maximum of $60,000 (up from $40,000). • Section 5 allows land-based disposal systems to be funded through the small community wastewater treatment program and matches grant eligibility criteria with the need criteria of the Wastewater Infrastructure Fund grant program. • Section 6 sets a new maximum on project funding at $2 million (up from $500,000) under the small community wastewater treatment program. • Section 7 allows loans under the small community wastewater treatment program to be amortized over 20 years. • Section 8 allows loans or portions of loans under the wastewater infrastructure funding program to be changed to grants if the community is deemed to have been eligible for a grant under normal eligibility criteria at the time the loan was made. • Section 9 and 10 clean up existing statute by changing the name of the TMDL grants program to the point source implementation grants program, removing references to deleted programs, and repealing the phosphorus reduction grants program and previous language limiting grant amounts. Effective Aug. 1, 2013. (CJ) Omnibus environmental budget bill Chapter 114 (*HF 976/ SF 1170) is the budget bill for state environment, natural resources, and agriculture. It allocates approximately $312 million of general fund revenue, plus funds from dedicated fees and special revenue accounts. Article 2: Agricultural policy changes Article 2 contains policy provisions related to agriculture. • Ag water quality certification. Sections 1, 2, and 5-16 are all related to the new agricultural water cer-

2013 Law Summaries

tification program, a joint state and federal effort to improve agricultural land owner participation in existing voluntary conservation programs. • Noxious weeds. Sections 17-27 are all related to noxious weed statutes. The changes made are mostly minor or technical, except that section 21 contains a number of definitions of new classes of noxious weeds. • Pesticides. Section 30 prohibits filling pesticide application equipment with water directly from public waters. It is already prohibited from public water supplies. Language is also added to prohibit cross connections to supplies used for filling pesticide application equipment. None of this applies to aquatic pesticide application. Effective July 1, 2013. Article 3: Environmental agency budgets Article 3 includes funding for the Pollution Control Agency (MPCA), Department of Natural Resources (DNR), and Board of Water and Soil Resources (BWSR), with funds also going to the Met Council, the Zoo, and the Minnesota Conservation Corps. • Pollution Control Agency. Section 3 appropriates funds to the PCA. It includes specific money related to SSTS (septic system) programs, air quality monitoring and emission reduction efforts to help the state avoid non-attainment with federal limits for ozone and fine particulate matter, SCORE recycling funds, funding for the Environmental Quality Board (EQB), and funding for the technical team formed as part of the solution to new regulation of silica sand mining. • Department of Natural Resources. Section 4 appropriates funds to the DNR. It includes $7.6 million to the ecological and water resources division for increased work on groundwater quality, quantity, and sustainability. This work was initially funded by increases to water appropriation fees, significantly weighted on city utility customers. It was instead funded out of the general fund. There is also significant funding for continues work to deal with aquatic invasive species. • Board of Water and Soil resources. Section 5 appropriates funds to BWSR. The funds are mostly passed through as cost-share grants to local units of government for work related to water quality and erosion control. • Met Council. Section 6 appropriates $17 million to the Metropolitan Council for metro parks. Effective July 1, 2013. Article 4: Environment policy changes Article 4 contains numerous changes to state laws related to the environment and natural resources. Effective July 1, 2013, unless otherwise noted. • Motorized mobility devices. Section 2 addresses ADA requirements by allowing the DNR commissioner to establish by written order state policies for the use and

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operation of motorized mobility devices on state administered lands and facilities. • Utility crossing fee waiver. Section 3 waives permit fees for utility crossing over state land or water if the crossing is within an existing road right-of-way. • ATV operation. Sections 10 and 11 deal with operation of ATVs in ditches and rights-of-way. The same changes were made in the game and fish omnibus policy bill (Chapter 121). Those changes are summarized in the Public Safety section. • Silica sand mining and processing. Numerous sections of this article pertain to regulations of silica sand operations in southeast Minnesota. • Section 66. Within the boundaries of the DNR Paleozoic Plateau Ecological Section, no excavation or mining of silica sand, including but not limited to digging, excavating, mining, drilling, blasting, tunneling, dredging, stripping, or shafting, may occur within one mile of a designated trout stream unless a silica sand mining trout stream setback permit has been issue by DNR. Effective May 24, 2013, applies to new silica sand mining projects and projects for which environmental review documents have been noticed for public comments after April 30, 2013. • Section 91, subd. 1-2. The EQB, in consultation with LGUs, is instructed to develop model standards and criteria for mining, processing, and transporting silica sand. The standards may be used by LGUs as they develop their local ordinances. Effective May 24, 2013. • Section 91, subd. 3-4. The EQB is instructed to assemble a silica sand technical assistance team to provide LGUs, at their request, with assistance with ordinance development, zoning, environmental review and permitting, monitoring, or other issues relating to silica sand. When an LGU requests recommendations from the technical assistance team the LGU must consider the findings or recommendations of the team in its approval or denial of a silica sand project. If the LGU does not agree with the team’s findings and recommendations, the detailed reasons for the disagreement must be part of the LGU record of decision. Effective May 24, 2013. • Section 92. Until two years after July 1, 2013, an Environmental Assessment Worksheet (EAW) must be prepared for any silica sand project that meets or exceeds any of a very specific list of thresholds, which are laid out, below. Effective July 1, 2013, and no permit for a silica sand project subject to this section may be approved after that date unless the required environmental review has been completed. ·· Excavates 20 or more acres of land to a mean depth of 10 feet or more during its existence. The local government is the responsible governmental unit; or ·· Is designed to store or is capable of storing more

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than 7,500 tons of silica sand or has an annual throughput of more than 200,000 tons of silica sand and is not required to receive a permit from the Pollution Control Agency. The Pollution Control Agency is the responsible governmental unit. ·· In addition to the contents required under statute and rule, an environmental assessment worksheet completed according to this section must include several specific items: ›› A hydrogeologic investigation assessing potential groundwater and surface water effects and geologic conditions that could create an increased risk of potentially significant effects on groundwater and surface water; ›› For a project with the potential to require a groundwater appropriation permit from the commissioner of natural resources, an assessment of the water resources available for appropriation; ›› An air quality impact assessment that includes an assessment of the potential effects from airborne particulates and dust; ›› A traffic impact analysis, including documentation of existing transportation systems, analysis of the potential effects of the project on transportation, and mitigation measures to eliminate or minimize adverse impacts; ›› An assessment of compatibility of the project with other existing uses; and ›› Mitigation measures that could eliminate or minimize any adverse environmental effects for the project. • Section 93. The EQB is instructed to create and maintain a library of LGU ordinances and LGU permits that have been approved for regulation of silica sand projects. • Section 105. Authorizes the expedited adoption of rules by a number of state agencies related to aspects of silica sand mining, storage, and processing. Effective May 24, 2013. • Section 106. An LGU may extend an interim ordinance or renew an expired ordinance prohibiting new or expanded silica sand projects for one year. Effective retroactively from March 1, 2013. • Groundwater policies. Numerous sections of this article amend existing statutes related to groundwater use and regulations. • Legislative approval. Sections 67 and 68 repeal existing legislative approval requirements for large water diversions or appropriations. • Preliminary well approval. Section 71 instructs the DNR to evaluate the likelihood that a water appropriation permit applicant will meet sustainability requirements prior to construction and to give written preliminary approval if the project is likely to meet


those requirements. It is linked closely to section 74, which adds new requirements to the information that must be provided to the DNR before a well can be constructed under MN Stat § 103I.205, subdivision 1, paragraph (f), including location, aquifer serving as the water source, maximum daily/annual/seasonal pumping rates and volumes, and any other information needed by the agency to make its preliminary determination of sustainability. • Permits in groundwater management areas. Section 72 allows the DNR to require wells drawing less than 10,000 gallons per day or 1 million gallons per year to need a water appropriation permit if an area is designated as a groundwater management area. The DNR can choose to waive flow metering and reporting requirements under MN Stat §103G.281 and cannot collect a permit application fee for these smaller permits. • DNR Report. Section 102 requires the DNR to report to the Legislature by Jan. 15, 2014, with any recommendations or draft legislation they identify as needed to carry out department responsibilities related to groundwater sustainability. • Wastewater lab certification. Section 76 includes new language related to the criteria for certifying labs that provide data to the state regarding whether NPDES and SDS permit holder are meeting permit requirements. It exempts for-profit, drinking water, and remediation analysis labs. • Architectural paint. Sections 78-79 direct producers of architectural paint, individually or through a stewardship organization, to implement and finance a statewide product stewardship program that manages the architectural paint by reducing the paint’s waste generation, promoting its reuse and recycling, and providing for negotiation and execution of agreements to collect, transport, and process the architectural paint for end-oflife recycling and reuse. LGUs are not mandated to participate in this program, but can choose to enter into a contract with a producer or stewardship organization. • Corrective actions under petrofund. Sections 83-85 and 87 are language that was worked out between cities, state agencies, and petroleum marketers on how to tighten up state ability to assure that environmental covenants travel with real property titles after corrective actions under the state petrofund program. • Hennepin County SWCD discontinued. Section 96 ends a longstanding battle by discontinuing the Hennepin County Soil and Water District and transferring its responsibilities to the county. The county has been functioning in that capacity for a number of years already and had ceased funding the SWCD. • Priority funding for wastewater re-use. Section 100 requires the MPCA to award bonus priority points to a project will result in an agency-approved beneficial use

2013 Law Summaries

of treated wastewater that results in reducing or replacing the use of groundwater, surface water, or potable water, provided that the project component resulting in the beneficial use of wastewater accounts for at least 20 percent of the total eligible cost of the project. Projects receiving points for land discharge beneficial use will not receive the additional 30 points. Effective Aug. 1, 2013. Article 5: Sanitary district formation This article transfers the process for establishing a sanitary district to address water quality and public health concerns from the MPCA to the Office of Administrative Hearings (OAH). The process often involves annexation law disputes, with which the MPCA has no comfort or experience. The article also updates existing law to use current procedures, statutory references, and legal definitions. Effective Aug. 1, 2013, except for sections 5 and 12, which transfer authority to OAH and require petitioners to pay the costs for the preparation and submission of petitions, that are effective May 24, 2013. (CJ) Legacy spending bill gets controversial, earns first veto of session Chapter 137 (*HF 1183/ SF 1051) allocates the money from constitutionally dedicated sales tax funds targeted to environmental and cultural programs. Gov. Dayton eventually line-item vetoed two appropriations from the outdoor heritage fund that went against the recommendations of the Lessard-Sams Outdoor Heritage Council. The two vetoed line items were $6.3 million to metropolitan parks in Subd. 5(i) and $3 million for aquatic invasive species control in Subd. 5(j). Article 1: Outdoor Heritage Fund Article 1 appropriates $100 million in the next fiscal year from the Outdoor Heritage Fund. The funds in this account go to improve fish and wildlife habitat and to improve access to hunting and fishing. Most of the funds are spent in rural areas, but several allocations could allow land within cities to be eligible for either purchase in title or for purchase of permanent conservation easements. Those provisions include funding for aquatic management land purchases (Subd. 5(a)), for conservation projects, easements, and land purchases in Dakota County (Subd. 5(b)), for conservation projects, easements, and land purchases related to the Minnesota, Mississippi, and St. Croix Rivers in the metropolitan area (Subd. 5(d)), and for matching grants to local partner conservation organizations for projects, easements, and land purchases that will be open to public hunting and fishing (Subd. 5(j)). Article 2: Clean Water Fund Article 2 appropriates approximately $97.5 million for each fiscal year of the biennium. The clean water fund provides resources for the state to make progress on meeting federal

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Clean Water Act requirements for identifying and cleaning up impaired lakes, rivers, and streams. It also funds other work to restore, enhance, and protect surface water quality and drinking water sources. It also contains environmental policy provisions. • Section 3 is funding for the Department of Agriculture and includes $2.5 million per year for research into nitrate contamination of groundwater and $1.5 million per year to fund the agricultural water quality certification program, a state/federal partnership to improve landowner participation in existing voluntary conservation programs. • Section 4 is funding to the Public Facilities Authority for wastewater and stormwater infrastructure projects that address water quality impairments and under-sewered communities. $9 million each year goes to the Point Source Implementation grants program and $2 million each year goes to the small community wastewater treatment program. • Section 5 funds impaired water programs at the MPCA. It includes funds to continue to assess water quality on a watershed basis, develop TMDL reports on water impairments identified, complete implementation plans to address those impairments, and to monitor progress. It also includes $275,000 each year for research into stormwater best management practices, $900,000 each year for wastewater and stormwater NPDES permit TMDL implementation efforts, and $375,000 per year to support research into wastewater treatment technology and for an ongoing University of Minnesota-led technical group to provide technical support to wastewater system design teams and to promote new technologies to address existing and emerging wastewater treatment challenges. • Section 6 goes to the Department of Natural Resources. It includes $2 million per year for enhanced monitoring to determine the relationship between groundwater levels and stream flow, $615,000 per year to enhance work on county geologic atlases to provide data on groundwater supply and recharge, $3 million in the first year of the biennium to develop and designate groundwater management areas, and $500,000 per year in grants funds available to local governments that adopt shoreland land use protection standards that meet a list of criteria well beyond state shoreland rule requirements. • Section 7 provides funds to the Board of Water and Soil Resources. Most of their programs provide cost-share grants to local government partners. • Local government units organized for the management of water get access to $5 million in the first year and $7 million in the second year in grants for significantly reducing water pollution in targeted watersheds. • $9.7 million in the first year and $10.7 million in the second goes to a broad list of efforts that protect and restore lakes, rivers, streams, and drinking water in

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ways consistent with approved TMDL reports, including by keeping water on the land and through septic system programs. • $3.5 million in the first year and $4.5 million in the second go for targeted local resource protection and enhancement grants for projects and practices that supplement or exceed current state standards for protection, enhancement, and restoration of water quality in lakes, rivers, and streams or that protect groundwater from degradation, including compliance. • $1.3 million each year is available for permanent conservation easement purchase in wellhead protection areas. • $1.5 million each year goes for grants to local government related to reducing stormwater pollution impacts and on proven methods of retaining water for infiltration. • Section 8 funds programs at the Department of Health related to drinking water and groundwater protection. It includes funds to look at contaminants being found in drinking water that have no current health risk values determined, looking at the frequency of private well contamination, and developing a virus monitoring plan for groundwater supplies. • Section 9 provides funds to the Metropolitan Council. $500,000 each year goes to support inflow and infiltration mitigation in the metro area, $537,000 is provided to research groundwater and surface water connections in White Bear Lake, and $1 million each year goes for continues groundwater planning efforts. • Section 10 provides an additional $615,000 each year to the University of Minnesota to speed the completion of county geologic atlases. • Section 17 bans the sale and use of coal-tar based asphalt sealants statewide as of Jan. 1, 2014. • Sections 18-22 relate to Mississippi River Critical Corridor land use rule development. The provisions included reauthorization for the DNR to develop rules, but change the statutes that define what those rules must include to better protect existing uses and to remove specific requirements of definitions related to bluffs, slopes, and mapping. Article 3: Parks and Trails Fund Article 3 allocates $42.5 million each year to park and trail projects in the state. Despite early contention over the split of metropolitan and rural funding, the split will keep the balance of 40 percent for metropolitan area parks and trails, 40 percent for state parks and trails, and 20 percent for non-metro areas. Projects are specified for the metro and non-metro park and trail funds. A Greater Minnesota Regional Parks and Trails Commission is established to determine which parks should be classified as being of state or regional significance outside the metropolitan area and to make recommendations to the Legislature on future


expenditures of funds to non-metro regional park projects, which was authorized to be formed as of May 24, 2013. Article 4: Arts and Cultural Heritage Fund Article 4 allocates approximately $58 million each year to enhance access to the arts and cultural heritage. The funds are divided between a wide range of interests including public radio and television, zoos, cultural groups, the state historical society, and the state arts board. It includes $3 million each year in support of regional library systems. It also included a policy provision that allows Minnesota-produced beer and wine to be served in the Rathkeller Cafe in the State Capitol, pending approval of the City of St. Paul. Article 5: General provisions Article 5 contains a policy requirement that no solar photovoltaic module may be funded in whole or in part by legacy funds unless they are made in Minnesota. All sections mentioned are effective July 1, 2013, unless otherwise noted. (CJ)

GENERAL GOVERNMENT Alternative publication of bids for projects funded by special assessment Chapter 46 (HF 1196/SF 843*) adds a definition of “recognized industry trade journal” to Minn. Stat. § 331A.01, so that websites and other digital publications qualify for alternative publication purposes for certain projects. The bill amends Minn. Stat. § 429.041, subd. 1 to allow cities to publish advertisements for bids for projects funded by special assessment in recognized industry trade journals. Because of the shift from printed to electronic media, there are no longer publications that met the old definition of trade journal, which forced cities to publish advertisements in a paper published in a city of the first class in addition to the web-based publication. The new definition will eliminate the duplicative publication requirement. Effective Aug. 1, 2013. (PH) Met council cost allocation deferred payments permitted Chapter 101 (*HF 738/SF 551) makes minor and technical changes to the statutes related to the Met Council. Section 3 allows a city to request that a cost allocated to them by the Met Council be deferred, in part or in total, to be paid on a schedule and with interest added as agreed to by the council. Effective May 25, 2013. (CJ) Omnibus state government finance and veterans affairs bill Chapter 142 (HF 1184/SF 1589*) is the omnibus state government finance and veterans affairs bill. Article 1

2013 Law Summaries

appropriates funding to state agencies, departments, councils and commissions. Articles 2-5 make several policy changes, some of which may be of interest to cities. Article 2: Minnesota sunset act • Sections 2-10 repeal the Minnesota Sunset Act and make conforming changes. Section 1 amends Minn. Stat. § 3.885 permitting the Legislative Commission on Planning and Fiscal Policy to review executive branch advisory groups on criteria similar to those applied by the Sunset Commission. Effective May 24, 2013. Article 3: State government operations • Office of the Secretary of State to accept funds. Section 8 is new language, Minn. Stat. § 5.38, authorizing the Secretary of State (SOS) to solicit and accept funds from local governments to be used for technology projects and to enhance the state’s election system. The SOS and the local governmental unit shall agree to the amount of consideration to be paid under the agreement. This section also allows the SOS to accept federal funds for election purposes and specifies that a certain state statute that governs the disbursement of federal funds will or will not apply, depending on whether the terms of the grant require the state to maintain its efforts. Funds accepted under this section are deposited into a special revenue fund and are appropriated to the SOS. The SOS is required to report by Jan. 15 each year to the chair and ranking minority members of the finance committees of the house and senate. The report must include the total amounts received in the preceding year, the source of those funds, and the uses of the funds. Section 9 is new language, Minn. Stat. § 5B.1, authorizing the SOS to solicit and accept funds from individuals and apply for grants from charitable organizations to be used for the confidentiality program, Safe at Home, that provides data protection for victims of violence. • City and Town Accounting System (CTAS) software. Section 10 adds new language, Minn. Stat. § 6.475, permitting the state auditor to charge a onetime user fee to cities, towns and other government entities for the development, maintenance, and distribution of the small city and town accounting system software. The State Auditor shall consult with the Minnesota Association of Townships, the League of Minnesota Cities, and the Minnesota Association of Small Cities to set the amount of the fee. If the CTAS software ceases to be offered by the State Auditor, any amount remaining in the CTAS account shall be equitably refunded to users and the account shall be closed. • State auditor enterprise fund. Section 13 creates Minn. Stat. § 6.581, the state auditor enterprise fund in the state treasury. The law requires that amounts received for the costs of the auditor’s examinations to be deposited into the fund.

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• Business as vendor. Section 14 amends Minn. Stat. § 13.591, subd. 3 changing when data submitted by a business to a government entity in response to a request for bids and proposals cease to be private or nonpublic. Under current law, the data is private or nonpublic until the bids or responses are opened; this section makes the data public at the time and date specified in the solicitation that bids or proposals are due. The law also changes what data remain private or nonpublic when all responses for bids or proposals are rejected prior to completion of the selection process. Under current law, all data except that made public at the bid or response opening remain private or nonpublic; as changed by this section, all data, other than the name of the bidder and the dollar amount specified in the bid or response, remain private and nonpublic. • E-Government Advisory Council. Section 25 establishes the E-Government Advisory Council to improve online government information services to citizens and businesses. The membership will include appointees knowledgeable in public access to government data. The council will convene its first meeting by Nov. 1, 2013, and sunset on the first Monday in January 2016, after making recommendations to the Office of Enterprise Technology. Effective May 24, 2013 Article 4: Military and veterans provisions • State and municipal officers and employees authorized leave. Section 1 amends Minn. Stat. § 192.26, subd. 1 permitting employees to choose when during a calendar year to take their paid 15-day military leave and allows employees to take it all at one time or to divide it at their discretion. Authorized leave may be taken without loss of pay, seniority status, efficiency rating, vacation, sick leave, or other benefits when engaged in training or active service. • Section 9 amends Minn. Stat. § 364.03, subd. 3 by broadening the means for showing competent evidence of rehabilitation to include the person’s having earned an honorable discharge from the military subsequent to the person’s adjudication for the crime. • Section 10 creates new language, amends Minn. Stat. § 471.3457 authorizing cities and towns to give contract preferences to veteran-owned small business. The language is permissive. Effective May 24, 2013. Article 5: Revenue department • Automobile theft prevention surcharge. Section 10 recodifies existing language into Minn. Stat. § 12971.1] to move the automobile theft prevention surcharge account, collection and administration to the Department of Revenue from the Department of Public Safety. Effective for premiums collected after June 30, 2013. (AL)

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HEALTH Updating terminology related to persons with disabilities Chapter 62 (HF 760*/SF 655) replaces outdated terminology related to persons with disabilities in various Minnesota Statutes and Rules, including some that regulate municipalities. However, the bill makes no policy or substantive changes to statutes or rules. Effective Aug. 1, 2013. (PH) Minnesota Insurance Marketplace Act (MNsure) Chapter 9 (HF 5*/SF 1) is the Minnesota Insurance Marketplace legislation which was enacted in response to the federal Affordable Care Act (ACA), Public Law 111-148. Under federal health care reform, states have the option of creating their own health insurance exchange as long as it meets certain federal requirements or optionally, a state can use a health insurance exchange supported in whole or in part by the federal Department of Health and Human Services. With the passage of this bill, Minnesota will now have a state system called MNsure, for individuals to shop for and purchase health insurance coverage to comply with the federal health insurance mandate. The new law is codified in a new statute, Minn. Stat. § 62V. Chapter 9 primarily establishes the infrastructure for the Minnesota Insurance Marketplace. The legislation creates a board of directors serving four-year staggered terms consisting of seven members in the executive branch of state government, one of whom is the state Commissioner of Human Services, to oversee the health insurance exchange. The new law also establishes term limits for the board members and clarifies that the board will be subject to the Open Meeting Law and other state laws dealing with review and audit by the legislative auditor, conflicts of interest and receipt of gifts. The legislation does not prohibit “qualified individuals” or “qualified employers” from selecting a health plan offered outside of the Marketplace. The ACA defines a “qualified individual” as an individual who seeks to enroll in a qualified health plan through an exchange, resides in the State and is not incarcerated. A “qualified employer” is defined under Section 1312 of the ACA as generally meaning a “small employer” who elects to make all full time employees eligible for one or more qualified health plans available in the small group marketplace offered through the health insurance exchange. The Affordable Care Act defines a “small employer,” for the purposes of health coverage, as an employer with at least one but not more than 100 employees but each State has the option to limit small employers to having no more than 50 employees until 2016. The Minnesota system will initially apply to employers with no more than 50 employees. The Minnesota health insurance exchange


could be expanded to large employers in the future by legislative action. All employers will be required to provide a written notice to each employee informing them of the existence of the State’s exchange and how to get in contact with the exchange, among other items. The notice was originally scheduled to be distributed by March 1, 2013, but the requirement has been delayed until Oct. 1, 2013, which will coordinate with the first open enrollment period for the Exchange. Effective March 21, 2013. Any actions taken by any state agencies in furtherance of the design, development, and implementation of the Minnesota Insurance Marketplace prior to the effective date shall be considered actions taken by the Minnesota Insurance Marketplace and shall be governed by the provisions of this chapter and state law. Health plan and dental plan coverage through the Minnesota Insurance Marketplace is effective Jan. 1, 2014. (Note: The MNsure exchange can be accessed at: http:// mn.gov/hix/. Further guidance on health care reform is available on the League’s website at: www.lmc.org/ page/1/health-care-reform.jsp.) (AF)

HOUSING Concentration limits of community-based homes (group homes) Chapter 108 (HF 1233*/SF 1034), Article 7, section 53 of the omnibus Health and Human Services Act establishes a study by the commissioner of human services to develop recommendations on concentration limits on home and community-based settings, as consistent with Minnesota Olmstead Plan. The report must be submitted to legislators by Feb. 1, 2014. Effective July 1, 2013 (HC) Contract for deed provision in the omnibus economic development budget bill Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic development, housing, commerce, and energy bill, contains new requirements for certain sales of residential homes by contract for deed. • Multiple seller definition. Section 7 contains definitions for the new notice requirements regarding sale of properties through contract for deed by a multiple seller. Minn. Stat. § 559.201 defines a multiple seller as a person that has acted as a seller in four or more contracts for deed during the 12 months preceding the purchase agreement was executed or the date on which the purchaser executes a contract for deed. Effective July 1, 2013. (HC) • Notice disclosure requirement. Section 8, subd. 1 adds a new notice disclosure requirement for multiple sellers called “Important Information About Contracts for Deed.”

2013 Law Summaries

• Subd. 2 exempts the notice requirement if the purchaser is represented by a licensed attorney or real estate broker, provided that the representation does not create a dual agency. • Subd. 3 specifies the verbatim language that must be included in the notice. The notice includes information on who is responsible for paying property taxes, homeowner’s insurance, and repairs and maintenance. The notice must also include recommendations to the purchaser to get advice from an attorney or the Home Ownership Center, get an appraisal and home inspection, buy title insurance, check with the city for inspection records or unpaid utility bills, check with the county or title company to see if another mortgage or lien is on the property, and to check with the Department of Commerce to see if interest rate not higher than the maximum rate allowed by law. • Subd. 4 allows the prospective purchaser five business days after actually receiving the notice to cancel a purchase agreement without penalty. The seller must refund all payments made by the prospective purchaser prior to cancellation. • Subd 5 provides for a private right of action to be filed by the purchaser against the multiple seller if the seller fails to deliver the timely notice. The seller is liable to the purchaser for damages, reasonable attorney fees and court costs. • Subd. 6 states that a violation of the notice provision does not invalidate the contract for deed. Section 8 is effective Aug. 1, 2013, and applies to transactions in which the contract for deed and the purchase agreement for the contract for deed, if any, were both executed on or after that date. (HC) Dual tracking in foreclosure prohibited Chapter 115 (HF 1377/SF 1276*) makes changes to mortgage foreclosure laws. The following provisions may be of interest to cities: • Notice delivery. Section 2 requires that the foreclosure notice be delivered up to the day of the foreclosure sale, rather than the day of redemption; sending a notice at least once every 60 days up to the date of the foreclosure sale meets this requirement. Effective Aug. 1, 2013 • Dual tracking prohibition. Section 3, subd. 6 prohibits “dual tracking” in mortgage foreclosure proceedings. Dual tracking involves continuing the foreclosure process while a lender is considering a request from the borrower for a mortgage loan modification. Effective Oct. 31, 2013. (HC) Housing funding and policy provisions in the omnibus economic development budget bill Section 4 of Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic development, housing, commerce, and

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energy bill, contains $101.4 million in appropriations to the Minnesota Housing Finance Agency for FY 20142015. This funding includes: • $28.4 million for the Economic Development and Housing Challenge Program. • $23.5 million for the Housing Trust Fund. • $5.6 million for the rental assistance program for mentally ill individuals. • $15.7 for family homeless prevention and assistant programs. • $1.6 million for the home ownership assistance program. • $8.4 for the affordable rental investment fund. • $5.5 million for the rehabilitation of single-family homes. • $1.5 million for the home homeownership, education, and training program. • $750,000 for nonprofit capacity building grants. • $890,000 in grants to three housing service programs. • $6.3 million for rental rehabilitation. Within these appropriations, the following provisions impact cities: • Housing and Job Growth Initiative. Subd. 2(b) amends Minn. Stat. § 462A.33, the economic development and housing challenge program, to include a one-time appropriation of $10 million targeted toward communities and regions that have: • Low housing vacancy rates; and • cooperatively developed plan that identifies current and future housing needs; and one or more of the following: ·· experienced job growth since 2005 and have at least 2,000 jobs within the commuter shed; ·· evidence of anticipated job expansion; or ·· significant portion of area employees who commute more than 30 miles between their residence and their employment. • Flood damage. Subd. 13 transfers excess money from the Challenge program’s appropriation in 2012 (estimated to be around $3 million) to the Housing Development Fund for the rehabilitation loan program. Until Aug. 1, 2014, priority for the use of these funds shall be given to assist eligible homeowners in the Duluth area (DR-4069) that were damaged as a result of the flooding that occurred June 14 to June 21, 2012. • Federally assisted housing. Subd. 7(b) amends Minn. Stat. § 462A.21, subd. 8b to require owners of federally assisted rental property to enter into an agreement that gives local units of government, housing and redevelopment authorizes, and nonprofit housing organizations the right of first refusal if the rental property is offered for sale. Effective May 24, 2013 (HC)

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Housing Improvement Areas extension Chapter 143 (HF 677*/SF 552) is the omnibus tax law. It amends Minn. Stat. § 428A.21 to extend the authority for cities to create new Housing Improvement Areas for 15 more years to June 30, 2028. Effective May 24, 2013 (HC) Housing infrastructure bonds provisions in the omnibus economic development budget bill Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic development, housing, commerce, and energy bill, contains a provision related to housing infrastructure bonds. Article 5, section 42 contains a technical fix to the definition of “housing infrastructure bonds” in Minn. Stat. § 462A.37, subd. 1 is a change recommended by bond council for existing housing infrastructure bond allocations. Effective May 24, 2013 (HC) Mortgage foreclosure consultant and originator clarifications Chapter 17 (HF 129*/ SF 294) amends Minn. Stat. § 325N.01 to clarify the definition of a foreclosure consultant and apply the regulations to mortgage originators who are negotiating the terms of an existing residential mortgage. This law applies provisions to mortgage originators that were originally only applied to foreclosure consultants. The provisions relate to definitions, rescission of foreclosure consultant contracts, contracts, violations, waivers, and remedies. Effective May 23, 2013. (HC) Partial release of mortgage lien Chapter 10 (HF 87*/SF 249) amends Minn. Stat. § 507.092 to allow for the recording of an affidavit of survivorship to change the address where property tax statements are sent, and amends Minn. Stat. § 507.403 to allow for the filing of a partial release of a mortgage lien. The law also updates filing requirements for common interest community certificates of title. Effective Aug. 1, 2013. (PH) Rental eviction appeal timeline and rent escrow changes Chapter 100 (HF 829*/SF 967) makes changes related to landlord tenant law, specifically on the timelines for eviction appeals and hearings when rent is held in escrow. • Penalty to landlord. Section 1 amends Minn. Stat. § 504B.151, subd. 1 to provide a penalty of $500 if a landlord subject to a foreclosure creates a lease longer than allowed by statute. • Sunset provisions. Section 2 and 3 remove sunset provisions for foreclosure proceedings. Section 6 repeals a section of law that would have gone into effect Jan. 1, 2015. Therefore, there will be no change in the current foreclosure proceeding process. • Judgment Appeal. Section 4 amends Minn. Stat. § 504B.371, subd. 2 to change the time for appealing a judgment in an eviction action from 10 to 15 days.


• Rent Escrow. Section 5 amends Minn. Stat. § 504B.385, subd. 5 allows a hearing to be scheduled in a rent escrow case for violations in a residential building even when the tenant files the required notice and no rent is currently due to the landlord. This requirement does not relieve the tenant of the obligation to deposit rent that is due to the landlord after the filing of a hearing notice but before the hearing with a court administrator. Effective Aug. 1, 2013. (HC)

LAND USE AND GROWTH MANAGEMENT Land use provisions in the omnibus jobs bill Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic development, housing, commerce, and energy bill, contains the following provisions related to land use: • Calculation of park dedication fees modified. Article 5, section 41 amends Minn. Stat. § 462.358, subd. 2b, to clarify how a municipality must calculate a park dedication fee charged to developers in lieu of dedicating land for parks. Under current law, the fee must be based on the fair market value of land, although fair market value is not defined. The new law defines fair market value as the value of the land as determined by the municipality annually based on tax valuation or other relevant data. The new law also creates a means for resolving a dispute over the valuation. If a developer objects, then the value shall be as negotiated by the parties or based on the market value as determined by the municipality based on an independent appraisal of land in a same or similar land use category. The existing dispute resolution provision in Minn. Stat. § 462.358, subd. 2c remains unchanged. Effective July 1, 2013. • Minneapolis City & Park Board joint dedication fee. Article 5, section 43 amends Laws 2008 chapter 366, the session law relating to powers of the Minneapolis Park and Recreation Board, to allow the Board and the City of Minneapolis to jointly require land be dedicated to the public, or to impose a park dedication fee, in conjunction with a construction permit for new housing. The law allows the cash fee to be set at a flat rate. Effective the day after compliance by the governing body of both entities with Minnesota Statutes, section 645.021, subdivisions 2 and 3, and applies to joint dedication fee ordinances adopted before, on, or after that date, except that no dedication or fee can be effective until after Dec. 31, 2013. • St. Paul dedication fee. Article 5, section 44 authorizes the City of St. Paul to require dedication of park land or to impose a park dedication fee in conjunction with a construction permit for new housing and commercial and industrial development. The dedication or fee must be imposed by ordinance and the ordinance

2013 Law Summaries

may exclude senior or affordable housing from the fee or dedication. The cash fee may be set at a flat rate. The law states that Minn. Stat. § 462.358, subd. 2b(b) and 2c apply to the application and use of the dedication or fee. Effective Jan. 1, 2014, and applies to ordinances adopted or amended by the city before, on, or after that date. (PH)

LIQUOR Omnibus liquor bill Chapter 42 (HF 746/SF 541*) is the omnibus liquor bill. Following are provisions most relevant to cities: • Brewer taproom license. Section 1 amends Minn. Stat. § 340A.301, subd. 6b to allow cities with municipal liquor stores to issue brewer taproom licenses. This allows the sale of malt liquor produced by the brewer for consumption on the premises or adjacent to the brewery. Effective May 8, 2013. • Distillery samples. Section 2 amends Minn. Stat. § 340A.301, subd. 6c which deals with microdistilleries. A microdistillery may now provide samples of distilled spirits on its premises. The samples may not be more than 15 milliliters per variety per person and no person can sample more than 45 milliliters in one day. Effective May 8, 2013. • Small brewer; license to distribute. Section 3 adds subdivision 6d to Minn. Stat. § 304A.301 regarding small brewer licensing and distribution of malt liquor. A brewer licensed under subd. 6, clauses (c), (i), or (j) may be issued a licensed by a municipality for off-sale of malt liquor packaged by the brewer. Previously, a brewer could produce no more than 3,500 barrels to make offsale 64 ounce containers commonly known as “growlers”. This change increases that to 20,000 barrels. Section 4 makes conforming changes based on section 3. Effective May 8, 2013. • Interest in other business. Section 5 amends Minn. Stat. § 340A.301, subd. 7 to decrease the amount of product a brewer may make and self-distribute. Prior to this change, the amount was set at 25,000 barrels and now the cut-off is 20,000. Effective May 8, 2013. • Malt liquor on-sale educator license and tastings. Section 6 amends Minn. Stat. § 340A.4042 by adding a subdivision to include malt liquor educator on-sale licenses to wine educator licenses. The annual cost is $250 per license and will be issued by the commissioner of the Department of Public Safety. This will allow malt liquor tastings and education to be conducted the same as wine tastings. Section 7 amends Minn. Stat. § 340A.418 to add malt liquor to the statute regarding wine tastings conducted by charitable, religious or other nonprofit organizations. Effective July 1, 2013.

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• Twin Cities in Motion temporary on-sale liquor license. Section 8 amends session law 1999, chapter 202, section 13 to update the liquor license for the Twin Cities Marathon to reflect the change in name to “Twin Cities in Motion.” Effective May 8, 2013. • City of Winnebago craft beer festival sunset extension. Section 9 amends a 2012 session law, chapter 235, section 8 to extend the sunset date of the city council’s approval of the craft beer festival hosted by the City of Winnebago to Dec. 31, 2013. Effective with local council approval and compliance with Minn. Stat. § 645.021. • Lowertown regional ballpark on-sale license. Section 10 amends Minn. Stat. § 340A.404 to allow for intoxicating liquor to be sold at the St. Paul Saints ballpark. Effective with local council approval and compliance with Minn. Stat. § 645.021. • Sake off-sale. Section 11 amends Minn. Stat. § 340A.301 allowing the City of Minneapolis to issue an off-sale license for the sale of sake produced packaged on the licensed premises. Effective with local council approval and compliance with Minn. Stat. § 645.021. • Valley Fair on-sale license. Section 12 amends Minn. Stat. § 340A.404 to allow the City of Shakopee to issue an on-sale intoxicating liquor license to Valley Fair. Effective with local council approval and compliance with Minn. Stat. § 645.021. • Sixty percent requirement removed for Minneapolis and St. Paul. Sections 13 and 14 amend Minn. Stat. § 340A.404 to remove the 60 percent requirement for Minneapolis and St. Paul as found in Minn. Stat. § 340A.404, subd. 5b. Effective with local council approval and compliance with Minn. Stat. § 645.021. • Wheeler Field on-sale license. Section 15 amends Minn. Stat. § 340A.404 to allow the City of Duluth to issue an on-sale intoxicating liquor license to Wheeler Field for sale of 3.2 malt liquor at the concession stand and approved dining area of the premises. Effective with local council approval and compliance with Minn. Stat. § 645.021. (AL)

LOCAL LAWS (Note: Local tax provisions contained in Chapter 143, the omnibus tax bill, are summarized in the Taxes section.) Officer Tom Decker Memorial Highway Designated Chapter 12 (HF 146/SF 76*) adds a subdivision to Minn. Stat. § 161.14. The new subdivision provides that Trunk Highway 23 from the east border of the township of Wakefield to the west border of the City of Richmond is designated as “Officer Tom Decker Memorial Highway.” It requires the commissioner of the Minnesota Department

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of Transportation to adopt a suitable design to mark this highway and erect appropriate signs. Effective Aug. 1, 2013. (AF) Authority to negotiate certain agreements expanded to Hennepin County Chapter 41 (HF 1195*/SF 1111) amends a special law (Laws 1988, chapter 471, section 1, subd. 1, as amended by Laws 1994, chapter 450, section 1, and Laws 1996, chapter 276, section 1) that currently applies to Minneapolis and the Minneapolis Public School District. Chapter 41 expands this law to include Hennepin County. It would allow the county to negotiate agreements concerning hiring and terms and conditions of employment for skilled trade and craft workers and apprentices with local labor organizations representing the trades. Persons hired under the agreements would then be exempt from the classified service of Hennepin County. Effective Aug. 1, 2013. (AF) Local power line planning requirements Chapter 57 (*SF521/HF623) Section 2 of this act addresses a local high-voltage power line siting controversy in Plymouth. It requires a certificate of need determination and adds some specific criteria that must be determined before the siting process can continue. Effective the day following final enactment, and applies to route permits and certificate of need applications pending on or after that date. (CJ) Local law provisions in the omnibus economic development budget bill Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic development, housing, commerce, and energy bill, contains the following local law provisions: • Agricultural processing facility, City of Morris. Article 1, section 2, subd. 2(r) makes a one-time grant of $750,000 to the City of Morris for loans or grants to an agricultural processing facility to make energy efficient improvements. The grant requires a match of $1.25 million from nonpublic sources. Effective July 1, 2013. • Hockey Hall of Fame, City of Eveleth. Article 5, section 24, makes permanent a temporary distribution of the taconite tax to the City of Eveleth to support the Hockey Hall of Fame, provided that it continues to operate in the city. Eveleth must also secure donations from other donors to receive the distribution. Effective July 1, 2013. • RiverCentre Arena, City of St. Paul. Article 5, section 47 reduces the amount of the RiverCentre loan repayment by $500,000 for fiscal years 2014 and 2015. The scheduled repayments for fiscal years 20162021 will not be paid to the state, but, rather, must be used to make arena improvement mutually agreed upon by the lessee and St. Paul’s lease representative. Effective July 1, 2013.


• Whiskey Road improvements, City of Biwabik. Article 5, section 48 states that money held by St. Louis County for the Biwabik Whiskey Road improvement must accrue interest at market rate and be used for improvements to the road near Biwabik. Effective July 1, 2013. (PH) Local provisions in omnibus transportation policy act Chapter 127 (HF 1416/SF 1270*) is the omnibus transportation policy act. Summarized below are provisions pertaining to specific cities or regions. (Note: Other provisions in Chapter 127 are summarized in the Transportation section of the 2013 Law Summaries.) • Pedestrian skyway connection required for Central Station. Section 61 is a 2013 Session Law. It requires the City of St. Paul to include construction or establishment of access to a pedestrian skyway system as part of the initial transit line construction of the Central Station on the Central Corridor light rail transit line. The council and city must ensure that public access to the pedestrian skyway system is provided by an elevator located at the site of the station. Effective May 25, 2013. • U.S. Highway 53 relocation project authorized. Section 65 is a 2013 Session Law requiring that in selecting the preferred alternative for the project involving the relocation of marked U.S. Highway 53 between Eveleth and Virginia, the commissioner of the Minnesota Department of Transportation (MnDOT) must: (1) prioritize as a District 1 project, the acceleration of the scoping, relocation, design, and construction of this highway; (2) consider the economic and social impacts on the cities of Virginia, Eveleth, Gilbert, and Mountain Iron, and not select an alternative that will impose undue negative impact on the economies of these cities; and (3) refrain from closing the existing U.S. Highway 53 corridor until construction of the rerouted highway is complete and the highway is open to vehicle traffic. Effective May 25, 2013. • Legislative Route 235 in Otter Tail County removed. Section 66 amends Minn. Stat. repeals Minn. Stat. § 161.115, subd. 166 one day after the commissioner of MnDOT receives a copy of the agreement between the commissioner and the governing body of Otter Tail County to transfer jurisdiction of Legislative Route No. 235 and notifies the revisor of statutes. Effective one day after the commissioner of MnDOT receives a copy of the agreement between the commissioner and the governing body of Otter Tail County. • Legislative Route 256 in Blue Earth County removed. Section 67 repeals Minn. Stat. § 161.115, subdivision 187, is repealed effective the day after the commissioner of MnDOT receives a copy of the agreement between the commissioner and the governing body of Blue Earth County to transfer jurisdiction of Legislative

2013 Law Summaries

Route No. 256 and notifies the revisor of statutes. Effective one day after the commissioner of MnDOT receives a copy of the agreement between the commissioner and the governing body of Blue Earth County. • Red Wing Shoes sign required. Section 68 is a 2013 Session Law. It provides that the commissioner of MnDOT, after being assured of adequate funding from nonstate sources, must erect a specific service sign (for Red Wing Shoes) on the east side of marked Trunk Highway 52, near its intersection with 37th Street NW in Olmsted County. The sign must display the name or business panel, or both, of a retail establishment on the east side of marked Trunk Highway 52 that began operation before construction of the noise wall on the east side of marked Trunk Highway 52, and the premises of which is blocked from view by the noise wall. Effective when nonstate funds are available. • Signage on Trunk Highway 47 in Anoka required. Section 69 is a 2013 Session Law. It requires that by Aug. 1, 2013, the commissioner of MnDOT must erect additional signage on marked Trunk Highway 47 at the intersection with McKinley Street in Anoka indicating the turning and through lane requirements for the intersection. The City of Anoka must reimburse the commissioner for the signage. Effective May 25, 2013. (AF) Special freight distribution authorized for west central Minnesota Chapter 140 (HF 316*/SF 300) creates Minn. Stat. § 169.868. It allows annual permits for truck weights above the restricted amount in MnDOT District 4 to haul freight to or from a distribution facility that is constructed on or after July 1, 2013. MnDOT District 4 serves Becker, Big Stone, Clay, Douglas, Grant, Mahnomen, Otter Tail, Pope, Stevens, Swift, Traverse, and Wilkin counties. • Six-axle vehicles weight limit increase allowed by permit. Subdivision 1 allows a road authority to issue an annual permit for a vehicle or combination of vehicles with a combination of six or more axles to haul freight and to be operated with a gross vehicle weight up to: (1) 90,000 pounds; and (2) 99,000 pounds during the period set by the commissioner of MnDOT under Minn. Stat. § 169.826, subd. 1. The fee for a permit issued under this subdivision is $300. • Seven-axle vehicles weight limit increased by permit. Subdivision 2 allows a road authority to issue an annual permit for a vehicle or combination of vehicles with a combination of seven or more axles to haul freight and to be operated with a gross vehicle weight up to: (1) 97,000 pounds; and (2) 99,000 pounds during the period set by the commissioner of MnDOT under Minn. Stat. § 169.826, subd 1. The fee for a permit issued under this subdivision is $500.

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• Restrictions provided. Subdivision 3 provides that vehicles issued permits under this section must comply with all requirements and restrictions in Minn. Stat. § 169.865, subd. 3. A vehicle may be operated under a permit issued under this section only to haul freight to or from a distribution facility that is: (1) constructed on or after July 1, 2013; and (2) located within MnDOT District 4. • Deposit of revenues provided. Subdivision 4 provides that revenue from the permits issued by MnDOT under this section must be deposited in the bridge inspection and signing account as provided under Minn. Stat. § 169.86, subd 5b.

the amendment would ask voters if the constitution should be amended to remove legislators’ ability to set their own salaries. Alternatively, a council would be established comprised of: one person who is not a judge from each congressional district, appointed by the chief justice of the Supreme Court; and one member from each congressional district, appointed by the governor. No member of the council can be a former or current legislator or lobbyist. The council must prescribe salaries by March 31 of each odd-numbered year with any changes in salary to take effect on July 1 of that year. The amendment will be presented to voters in the 2016 general election. (AL)

Effective May 25, 2013. (AF)

Geospatial data sharing with government entities Chapter 96 (HF 1390*/SF 1298) amends Minn. Stat. § 16E.30 updating provisions in the Geospatial Information Office. Of note for cities is section 4 requiring that electronic geospatial government data must be shared at no cost with government entities. A release of data must include metadata or other documentation that identifies the original authoritative data source. Government entities providing data under this subdivision are not required to provide data in an alternate format nor are they required to provide the same data to the same requestor more than four times per year. Government entities and agencies sharing and receiving electronic geospatial data under this subdivision are immune from civil liability arising out of the use of the shared electronic geospatial data and this does not authorize the release of data that are not public data. Effective May 25, 2013. (AL)

Disaster aid provided to southwest Minnesota Chapter 141 (HF 1832/SF 1656*) is a 2013 Session Law. It provides $1.5 million from the general fund in fiscal year 2014 to the commissioner of the Department of Public Safety for the purposes specified in Minn. Stat. § 12A.15, subdivision 1, to match federal disaster assistance for the severe winter storm that occurred April 9, 2013, through April 11, 2013, in the area designated under Presidential Declaration of a Major Disaster FEMA-4113-DR. It also provides $250,000 from the general fund in fiscal year 2014 to the commissioner of the Department of Public Safety for the purposes specified in Minn. Stat. § 12A.15, subds. 2 and 2a, to remove debris and provide long-term recovery assistance for the same area. Effective May 25, 2013. (AF)

MISCELLANEOUS Campaign finance modifications Chapter 131 (SF 661*/HF 863) makes a number of changes to the procedures and standards for campaign finance regulation and reporting, including increasing campaign spending and contribution limits for certain candidates and increasing thresholds for registration and reporting by certain types of entities. The law also expands the Campaign Finance and Public Disclosure Board’s enforcement authority to include certain provisions of the Fair Campaign Practices Act. Article 2 amends Minn. Stat. § 10A.01, subd. 35 expanding the definition of “public official” to include: district court judge, appeals court judge, or Supreme Court justice; and county commissioner. City officials and employees are not included in the definition. Effective May 25, 2013. (AL) Determining legislator salary Chapter 124 (HF 1823*/SF 533) proposes an amendment to article IV, section 9 of the Minnesota constitution. Currently, legislator salary is determined by law and

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Hospital reports required Chapter 51 (HF 588*/SF 471) is a 2013 Session Law that requires a hospital staffing report and a study on nurse staffing levels and patient outcomes. • Hospital staffing report required. Section 1 provides that the chief nursing executive or designee of every hospital licensed under section 144.50 will develop a core staffing plan for each care unit. Prior to submitting the core staffing plan, hospitals must consult with representatives of the hospital medical staff, managerial and non-managerial care staff, and other relevant hospital personnel about the core staffing plan and the expected average number of patients upon which the staffing plan is based. Any substantial changes to the core staffing plan must be updated within 30 days. It requires hospitals to submit a core staffing plan to the Minnesota Hospital Association (MHA) by Jan. 1, 2014, and requires MHA to post each hospital’s core staffing plan on its Minnesota Hospital Quality Report website by April 1, 2014. It also requires that on a quarterly basis, the MHA include each hospital’s actual direct patient care hours per patient per unit. Beginning on July 1, 2014, and quarterly thereafter, hospitals must submit direct patient care reports to MHA.


• Nursing study required. Section 2 requires the Department of Health to convene a work group to consult with the department as they study the correlation between nurse staffing levels and patient outcomes. This report must be presented to the chairs and ranking minority members of the health and human services committees in the House of Representatives and the Senate by Jan. 15, 2015. • Appropriation provided. Section 3 provides $187,000 in fiscal year 2014 and $65,000 in fiscal year 2015 from the general fund to the commissioner of the Department of Health for the completion of the study in section 2. This is a one-time appropriation. Effective July 1, 2013. (AF) Lawful gambling modifications Chapter 79 (SF 1006*/HF 1060) makes changes related to lawful gambling, record keeping and other regulatory provisions. • Increased threshold for annual financial audits. Section 1 amends Minn. Stat. § 297E.06, subd. 4. Under current law, licensed organizations with gross receipts of more than $500,000 must have an annual financial audit of lawful gambling activities and funds. This section changes the threshold for required annual audits to $750,000. Organizations with less than $750,000 in gross receipts are only required to conduct a financial audit when the Commissioner of Revenue requires it. • Linked bingo game provider license application attachment. Section 2 amends Minn. Stat. § 349.1632, subd. 3 to change an amount certain to a minimum amount for a bond required for a linked bingo game provider to obtain a license. The bond secures payment of all linked bingo prizes. Under current law, an applicant for a linked bingo game provider license must provide evidence of a bond of $100,000. As modified in this section, the bond must be for “not less than” $100,000. • Off-site permits increase. Section 3 amends Minn. Stat. § 349.165, subd. 5 to increase from four to 12 the number of events in a calendar year that a licensed organization may conduct on a premise that is not its permitted premise in conjunction with a county fair, the State Fair, a church festival, or a civic celebration. The organization must first obtain authorization as required in Minn. Stat. § 349.213. • Increase in time limit for deposit of gambling receipts. Section 4 amends Minn. Stat. § 349.19, subd. 2 to increase from two to four the number of business days in which gambling receipts from all electronic pulltab games and all linked electronic bingo games must be deposited into the gambling bank account. • Pull-tab records. Section 5 amends Minn. Stat. § 349.19, subd. 10 to increase the dollar amount of a paper pull-tab prize that requires the winner to present iden-

2013 Law Summaries

tification in the form of a driver’s license, Minnesota identification card or other identification the Gambling Control Board deems sufficient to allow the identification and tracking of the winner. • Pull tab reporting requirements. Section 6 is a new section permitting the commissioner of revenue to require a onetime closing of all currently active electronic pull-tab games on May 31, 2013, for the purpose of moving to a uniform system of reporting for electronic pull-tab game activities on a monthly basis. Effective May 21, 2013. (AL) Metropolitan Council redistricting Chapter 66 (SF 1564*/HF1684) amends Minn. Stat. §, 473.123 by repealing subd. 3d, and adding a new subdivision to adopt the MC2013-4, the metropolitan redistricting plan. The council consists of 17 members all appointed by the governor, subject to the advice and consent of the Senate. Sixteen members are from districts, and the chair is appointed from the region at large. The members all serve at the pleasure of the governor. The Legislature must redraw the boundaries of the council districts after each decennial federal census so that each district has substantially equal population. Redistricting is effective in the year ending in the number “3.” Within 60 days after a redistricting plan takes effect, the governor must appoint members from the newly drawn districts. Maps illustrating the proposed new boundaries for each council district are available at http://bit.ly/17zEgBi. Effective May 16, 2013. (AL) MN.IT Services Chapter 134 (HF1389*/SF1245) makes various changes in the laws governing the Office of Enterprise Technology. This agency is also known as MN.IT Services. The bill changes all references to the “Office of Enterprise Technology” to “Office of MN.IT Services.” The bill also makes changes governing state finance and budget provisions

and the role of Minnesota Management and Budget (MMB). The following provisions are relevant to cities: • Statewide Radio Board membership. Section 27 amends Minn. Stat. § 403.36, subd. 1 by removing the commissioner of Management and Budget as a member on the Statewide Radio Board. (Note: See Public Safety section for further details on changes to the Statewide Radio Board.) • Compilation of local impact notes. Section 6, subd 2 amends Minn. Stat. § 3.989, subd. 2 permits the commissioner of management and budget to post a copy of all local impact notes to the agency website. Effective May 24, 2013. (LZ)

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Motor vehicle fuel payment Chapter 67 (HF 1284*/SF 1131) adds a new section of law to Minn. Stat. § 325E.08 regarding trade practices. Minn. Stat. § 325E.085 prohibits restriction on sale of motor fuel in that no local unit of government can require any particular form of payment for motor fuel sales. Effective May 17, 2013. (AL)

PENSIONS AND RETIREMENT Pension plan officers required to report certain unlawful acts Chapter 35 (HF 441/SF 324*) amends Minn. Stat. § 609.456, subd.1, the law requiring public employees and officers to report suspected theft, embezzlement, or unlawful use of public property to law enforcement and the state auditor. The chapter expands the provision to include officers of local pension plans. Effective Aug. 1, 2013. (AF) Omnibus pensions act Chapter 111 (HF 629/SF 489*) is the omnibus pensions act. It enacts the recommendations of the Legislative Commission on Pensions and Retirement (LCPR). The chapter contains 16 articles and over 20 stand-alone bills. Notably, Article 11 contains the Public Employees Police and Fire Retirement Plan (PERA-P&F) financial solvency plan, which include an employer contribution increase of 1.8 percent of salary, phased in over two years. The PERA P&F solvency plan and other provisions of interest to cities are summarized below. Article 3: PERA administrative provisions • Student employee exclusion. Section 1 amends Minn. Stat. § 353.01, subd. 2b and excludes from PERA coverage student employees in a work-study program if the position is for five years or less. Current law excludes student employees if the position is for three years or less. Effective May 24, 2013. • Overtime credit during military service allowed. Section 2 amends Minn. Stat. § 353.01, subd. 16 to remove the prohibition against use of overtime salary from the USERRA-compliant military service credit purchase provision. Effective May 24, 2013. • Average salary for survivor benefits defined. Section 3 amends Minn. Stat. § 353.01, subd. 7 to redefine “average salary” for determining surviving spouse and dependent child benefits. Average salary is defined as the average of the full-time monthly base salary rate for the last six months of allowable service. Part-time service must be prorated based on actual hours worked. Effective May 24, 2013. • Designated beneficiary definition expanded. Section 4 changes the definition of “designated beneficiary”

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to include trusts, estates, or persons legally authorized to act on behalf of the member, and amends Minn. Stat. § 353.01, subd. 29 to require beneficiary designations to be made on or before the date of death of the member and in the form prescribed by the executive director. Effective May 24, 2013. • Social Security leveling option. Section 28 amends Minn. Stat. § 356.415, subd. 1 and eliminates a Social Security leveling option from the post-retirement adjustment provisions. Effective Jan. 1, 2014. Article 6:Volunteer firefighter retirement changes • Deadline for cost analysis review. Section 3 amends Minn. Stat. § 353G.05, subd. 2 by increasing the deadline for a municipality to act upon a volunteer fire department election to join the statewide volunteer firefighter plan from 90 to 120 days from receipt of the PERA cost analysis document. Effective July 1, 2013. • Fiscal year defined. Section 4 defines the fiscal year as the calendar year for volunteer firefighter relief associations, amending Minn. Stat. § 424A.001. Effective May 24, 2013. • Service breaks. Section 5 amends Minn. Stat. § 424A.01, subd. 6 and clarifies specific federal and state laws that under which breaks in service are exempted from the general law regarding service breaks. Effective May 24, 2013. • Service separation definition. Section 6 clarifies an existing exception to the service separation requirement for volunteer firefighter associations under Minn. Stat. § 424A.015, subd. 1. Effective May 24, 2013. • Deferred service interest rate approval. Section 9 amends the deferred service pension provisions of the volunteer firefighter relief association under Minn. Stat. § 424A.02, subd. 7. Any change in the interest rate paid during a period of deferral of a lump-sum service pension must be approved by the governing body of the municipality or the independent nonprofit firefighting corporation. Effective Jan. 1, 2014. • Supplemental survivor benefit payment. Section 11 amends Minn. Stat. § 424A.10, subd. 2 to require that an association pay a supplemental survivor benefit whenever it pays lump-sum survivor benefit, regardless of whether such payment is authorized by the bylaws. Effective May 24, 2013. • White Bear Lake payment option. Section 12 permits the White Bear Lake Volunteer Firefighter Relief Association to provide a $2,000 lump-sum death benefit to the estates of firefighters with at least 20 years of service who retired before 2009. Effective with compliance by the City of White Bear Lake with Minn. Stat § 645.021. Article 8: Miscellaneous provisions • State Board of Investment information provided.


Section 1 creates a new statute, Minn. Stat. § 6.496, that requires that the State Board of Investment to annually provide all volunteer firefighter relief associations with: (1) basic information on enrollment options and participation in the statewide volunteer firefighter retirement plan: and (2) recent and historic investment performance results of the Minnesota supplemental investment fund and options for participation in the fund. Effective July 1, 2013. • Development of early retirement factors. Section 3 requires the PERA Board to approve early retirement and optional annuity factors, subject to approval by the LCPR, and to establish an implementation schedule, under Minn. Stat. § 353.03, subd. 3. Effective Aug. 1, 2013. Article 10: PERA salary definitions • Section 1 amends Minn. Stat. § 353.01, subd. 10 by revising the definition of salary as follows: • Expands periodic compensation to include of employee retirement contributions designated as “picked up” contributions under Minn. Stat. § 356.62. • Expands periodic compensation to include employee contributions to a supplemental plan or governmental trust to save for postretirement health care expenses under Minn. Stat. § 356.24, subd. 1(7). • Expands periodic compensation to include nonwrongful-discharge salary reductions remedied through a grievance, settlement, or court order, including any applicable pay increases that would have otherwise been earned. • Expands periodic compensation to include amounts paid during a personal, parental, or military leave of absence. • Expands periodic compensation to include amounts paid during an authorized medical leave of absence if specified in advance to be at least one-half but no more than equal to the earnings received during the six months immediately preceding the leave. • Expands periodic compensation to include the compensation paid an employee for attaining or exceeding performance goals, duties, or measures during a specified period of employment. • Excludes from periodic compensation any unused annual leave in the form of lump-sum or periodic payments from periodic compensation. • Excludes from periodic compensation the payment to another person of the value of hours donated under a benevolent vacation, personal, or sick leave donation program. • Excludes from periodic compensation retirement incentive payments. • Excludes from periodic compensation per diem payments. • Excludes from periodic compensation disability insur-

2013 Law Summaries

ance payments, including payments from an employer self-insurance arrangement. • Specifies the particular forms of fringe benefits that are excluded from periodic compensation. Excluded fringe benefits include, but are not limited to: employer-paid premiums or supplemental contributions for all types of insurance; membership dues for fitness or recreational facilities; payments or cash awards for a wellness program; the value of any nonmonetary benefits; any form of payment made in lieu of an employer-paid fringe benefit; an employerpaid amount to a deferred compensation or tax-sheltered annuity program; and any amount paid by the employer as a supplement to salary that is not available to the employee as cash. Effective May 24, 2013. Article 11: PERA P&F financial solvency measures • Average salary definition. Section 1 amends Minn. Stat. § 353.01, subd. 17a to include as part of “average salary” the salary of an employee earned after the employee reaches the new allowable service limit in Minn. Stat. § 356.651, subd. 3 (See, Section 8 below). Effective May 24, 2013. • Duty disability definition. Section 2 amends Minn. Stat. § 353.01, subd. 41 and redefines “duty disability.” A duty disability must now be the direct result of an injury arising out of inherently dangerous duties. Previous law stated that the injury must arise out of duties specific to protecting the property and personal safety of others and that present inherent dangers. Effective May 24, 2013. • 20-year vesting period for new hires. Section 3 amends Minn. Stat. § 353.01, subd. 47 by establishing a 20-year proportional vesting periods for new hires beginning in 2014. A person who joins the plan after July 1, 2014, becomes vested at 50 percent after 10 years, and an additional 10 percent per year until reaching 100 percent after 20 years. Effective Aug. 1, 2013, and applies to persons who become members of the association on or after July 1, 2014. • Disability benefit application requirements. Section 4 amends § Minn. Stat. § 353.31, subd. 4 by requiring that an application for disability benefits contains (1) a “clear explanation” of any duties the individual cannot perform, and (2) an explanation of why the employer may or may not authorize continued employment to the applicant in the current or other position. Effective May 24, 2013. • Clarification of refund rights. Section 5 makes conforming changes to Minn. Stat. § 353.35 to clarify that the new allowable service limit in Minn. Stat. § 356.651, subd. 3 (See, Section 8 below), does not result in forfeiture of salary credit. Effective May 24, 2013. • Employee contribution increase. Section 6 amends Minn. Stat. § 353.65, subd. 2 to increase the employee

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contribution rate from 9.6 percent of salary to 10.2 percent of salary in calendar year 2014, and to 10.8 percent of salary in calendar year 2015 and thereafter. Effective May 24, 2013, and will apply to all wages paid in the first paycheck issued after Jan. 1, 2014 ,regardless of whether the pay period covers dates prior to 1/1/2014. • Employer contribution increase. Section 7 amends Minn. Stat. § 353.65, subd. 3 to increase the employer contribution rate from 14.4 percent of salary to 15.3 percent of salary in calendar year 2014, and to 16.2 percent of salary in calendar year 2015 and thereafter. Effective May 24, 2013, and will apply to all wages paid in the first paycheck issued after Jan. 1, 2014, regardless of whether the pay period covers dates prior to 1/1/2014. • Retirement annuity formula changes. Section 8 makes changes to the retirement annuity formula in Minn. Stat. § 353.651, subd. 3: • To reflect the new 20-year vesting period, the annuity formula will be multiplied by the appropriate vesting percentage, as opposed to per year of service. • For members first enrolled after June 30, 2014, the allowable service included in the annuity calculation is capped at 33 years and the retirement annuity must not exceed 99 percent of the average salary. • For new members who exceed 33 years of allowable service, a prorated share of the excess service must be refunded to the member. Effective May 24, 2013. • Retirement penalty increased. Section 9 makes changes to the early retirement provisions in Minn. Stat. § 353.651, subd. 4. The early retirement reduction factor is changed from 1.2 percent per year (2.4 percent for post-June 2007 retirements) to 5 percent per year, and is phased in over a period of 5 years, beginning on July 1, 2014. Effective May 24, 2013. • Maximum family benefit. Section 11 amends Minn. Stat. § 353.657, subd.3a to specify that in the event that family benefit cap is reached, the benefit reduction must be made proportionately on the annuitant, surviving spouse, and dependent children. Effective May 24, 2013. • Postretirement adjustments for PERA General. Section 13 makes changes to the annual postretirement adjustments in Minn. Stat. § 356.415, subd. 1b. The annual adjustment remains at 1 percent until the plan reaches funding stability, which occurs when the market value of the retirement plan meets or exceeds 90 percent of the actuarial accrued liabilities in the two most recent consecutive actuarial valuations. When funding stability is reached, the annual postretirement adjustment increases to 2.5 percent. After funding stability is reached, the postretirement adjustment will decrease to 1 percent in subsequent years if the funding level of the plan drops to 85 percent for two consecutive actuarial valuations, or drops to 80 percent for the most recent actuarial valuation.

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• Postretirement adjustments for PERA P&F. Section 14 makes changes to the annual postretirement adjustments in Minn. Stat. § 356.415, subd. 1c. The current 1 percent annual postretirement adjustment remains in place for current and near-term retirees, and delays the first retirement increase paid to new retirees for three years beginning on July 1, 2014. • When funding stability is reached, the annual postretirement adjustment increases to 2.5 percent. After funding stability is reached, the postretirement adjustment will decrease to 1 percent in subsequent years if the funding level of the plan drops to 85 percent for two consecutive actuarial valuations, or drops to 80 percent for the most recent actuarial valuation. Article 15:Voluntary membership dues reduction. • Section 1 amends Minn. Stat. § 356.91 to require that the director of the Minnesota State Retirement System (MSRS) or PERA, upon request of the annuitant, must deduct from the retirement annuity an amount to be paid as membership dues or other payments to the labor union representing retired employees of which the annuitant is a member. Such payments shall be made on a monthly basis. • Section 1 authorizes the labor union that is the exclusive bargaining unit representing public employees or retired public employees to conduct blind mailings containing voluntary membership information or dues deduction cards to annuitants of MSRS or PERA. The organization must pay all costs associated with the mailing. Alternatively, PERA or MSRS may transmit contact information to a mailing center to perform a blind mailing, pursuant an agreement stating that neither the labor organization nor any other group may have access to the data. • Section 1 limits the number of mailings to two per year and states that the mailings may not be used for the purpose of supporting or opposing any candidate, political party, or ballot measure. Various effective dates. (PH)/(GC)/(AF) Fire and police department aid threshold for financial reports and audits modified Chapter 123 (HF 853*/SF 746) amends Minn. Stat. § 69.051, subd. 1 by increasing the threshold at which the board of a salaried firefighters relief association, police relief association, and volunteer firefighters relief association must prepare a financial report from assets of at least $200,000 to assets of at least $500,000. Effective Aug. 1, 2013. (AF)


PUBLIC SAFETY Omnibus public safety finance act Chapter 86 (HF 724/SF 671*) is the omnibus public safety act. The chapter contains appropriations related to public safety, courts, corrections, and transportation. The chapter spends just under $1.96 billion for the FY 2014-2015 biennium. Summarized below are provisions that may be of interest to cities. Article 1: Appropriations for FY 2014 and 2015 Article 1 contains appropriations for the following state government entities: Supreme Court, Court of Appeals, Trial Courts, Guardian ad Litem Board, Tax Court, Uniform Laws Commission, Board on Judicial Standards, Board of Public Defense, Department of Public Safety, Peace Officers Standards and Training Board, Private Detective Board, Department of Human Rights, Department of Corrections, and Sentencing Guidelines Commission. • Supreme Court appropriation provided. Section 3 appropriates $44.548 million for FY 2014 and $45.191 million for FY 2015 to the Supreme Court. Effective July 1, 2013. • Supreme Court operations funded. $32.282 million in FY 2014 and $32.925 million in 2015 is for Supreme Court operations. This represents an approximately $3 million funding increase over the previous biennium. Effective July 1, 2013. • Civil legal services funded. $12.266 in 2014 and $12.266 million in 2015 is for civil legal services. This represents a funding increase of over $1 million over the previous biennium. Effective July 1, 2013. • Court of Appeals appropriation provided. Section 4 provides $10.641 in 2014 and $11.035 million in 2015 to the Court of Appeals. This amount represents an approximately $5,000 increase over the previous biennium. Effective July 1, 2013. • District Courts appropriation provided. Section 5 provides $247.459 million in 2014 and $256.622 in 2015 to fund district courts. This amount represents an approximately $9 million increase over the previous biennium. Effective July 1, 2013. • Tax Court appropriation provided. Section 7 appropriates $1.023 million in 2014 and $1.035 million in 2015 for Tax Court. This represents an approximately $400,000 increase over the previous biennium. It specifies that $161,000 each year is for two law clerks, continuing legal education costs, and Westlaw costs; and that $25,000 each year is for the implementation and maintenance of a modern case management system. Effective July 1, 2013. • Uniform Laws Commission funded. Section 8 appropriates $147,000 in 2014 and $84,000 in 2015 to

2013 Law Summaries

the Uniform Laws Commission. This amount represents an increase of approximately $140,000 over the previous biennium. $63,000 the first year is to pay back dues owing to the National Conference of Commissioners on Uniform State Laws. Effective July 1, 2013. • Board on Judicial Standards funded. Section 9 appropriates $756,000 in 2014 and $456,000 in 2015 to the Board on Judicial Standards. This amount represents a $10,000 increase over the previous biennium. Of this amount, $300,000 the first year is for deficiencies occurring in fiscal year 2013. $125,000 each year is for special investigative and hearing costs for major disciplinary actions undertaken by the board. Effective July 1, 2013. • Board of Public Defense funded. Section 10 appropriates $70.698 million in 2014 and $73.612 million in 2015 to the Board of Public Defense. This amount represents an approximately $12 million over the previous biennium. From this appropriation, the board must pay all outstanding billings as of June 30, 2013, for transcripts. By Jan. 15, 2014, and by Jan. 15, 2015, the board must report to the chairs and ranking minority members of the House of Representatives and Senate committees with jurisdiction over criminal justice and judiciary finance on how this appropriation was spent, including information on new attorney and staff hires, salary and benefit increases, caseload reductions, technology improvements, and transcript costs and billings. Effective July 1, 2013. • Sentencing Guidelines Commission funded. Section 11 appropriates $886,000 in 2014 and $586,000 in 2015 to the Sentencing Guidelines Commission. $300,000 the first year is for a transfer to the Office of Enterprise Technology for an electronic sentencing worksheet system. Any ongoing information technology support or costs for this application shall be incorporated into the service-level agreement and shall be paid to the Office of Enterprise Technology. Effective July 1, 2013. • Department of Public Safety funded. Section 12 appropriates $157.851 million in 2014 and $161.191 million in 2015 to the Department of Public Safety (DPS). This amount is approximately the same as the appropriation made in the previous biennium. • Hazmat and chemical assessment teams funded. $604,000 each year is from the fire safety account in the special revenue fund. These amounts must be used to fund the hazardous materials and chemical assessment teams. Effective July 1, 2013. • School Safety Center reinstated. $455,000 the first year and $405,000 the second year from the general fund are to reinstate the School Safety Center and to provide for school safety. The commissioner of the DPS is directed to work collaboratively with the School Climate Council and the School Climate Center established under Minn. Stat. § 121A.07 and 127A.052. By Jan. 15, 2014, and by Jan. 15, 2015, the commissioner of the DPS

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must report to the chairs and ranking minority members of the Senate and House of Representatives committees with jurisdiction over criminal justice and judiciary funding on how this appropriation was spent. The report must specify the results achieved by the school safety center and the level of cooperation achieved between the commissioner and the School Climate Council and school climate center. Effective July 1, 2013. • Bureau of Criminal Apprehension funded. $47.588 million in 2014 and $47.197 million in 2015 are appropriated to the Bureau of Criminal Apprehension (BCA). This amount represents an approximate $10 million increase over the previous biennium. $1.941 million each year is from the trunk highway fund for laboratory analysis related to driving-while-impaired cases. $50,000 the first year and $580,000 the second year from the general fund and $3 million the first year and $2 million the second year from the vehicle services account in the special revenue fund are to replace the state’s criminal history system. $1.36 million the first year and $1.36 million the second year from the general fund are to replace the state’s crime reporting system. $125,000 the first year and $125,000 the second year from the general fund and $125,000 the first year and $125,000 the second year from the trunk highway fund are to replace forensic laboratory equipment at the BCA. $200,000 the first year and $200,000 the second year from the general fund and $200,000 the first year and $200,000 the second year from the trunk highway fund are to improve forensic laboratory staffing at the BCA. $310,000 the first year and $389,000 the second year from the general fund are to maintain Livescan fingerprinting machines. The BCA’s general fund base is reduced by $1,720,000 in fiscal year 2014 and $2,329,000 in fiscal year 2015 to reflect one-time appropriations. Effective July 1, 2013. • State Fire Marshal funded. $9.555 million in 2014 and $9.555 million in 2015 is appropriated to the State Fire Marshal. This appropriation is from the Fire Safety Account in the special revenue fund. $2.368 million the first year and $2.368 million the second year are for transfers to the general fund under Minn. Stat. § 297I.06, subd. 3. (which provides that these funds are transferred from the Fire Safety Account in the special revenue fund to the general fund to offset the loss of revenue caused by the repeal of the one-half of 1 percent tax on fire insurance premiums). Effective July 1, 2013. • Alcohol and Gambling Enforcement. $2.485 million in 2014 and $2.485 million in 2015 are appropriated to Alcohol and Gambling Enforcement. This amount represents an approximately $400,000 increase over the previous biennium. $653,000 each year is from the alcohol enforcement account in the special revenue fund. Of this appropriation, $500,000 each year must be transferred to the general fund. $250,000 each year is appropriated from the Lawful Gambling Regulation

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Account in the special revenue fund. Effective July 1, 2013. • Office of Justice Programs funded. $36.106 million in 2014 and $36.106 million in 2015 are appropriated to the Office of Justice Programs. This amount represents an approximately $6 million increase over the previous biennium. $1.5 million each year must be distributed through an open and competitive grant process for existing crime victim programs; the funds must be used to meet the needs of underserved and unserved areas and populations. $100,000 each year is for a grant to the Community Offender Reentry Program for assisting individuals to transition from incarceration to the communities in and around Duluth, including assistance in finding housing, employment, educational opportunities, counseling, and other resources. $1 million each year is for youth intervention programs; the appropriations must be used to create new programs statewide in underserved areas and to help existing programs serve unmet needs in program communities. $350,000 each year is for a grant to Ramsey County to be used by the Ramsey County Attorney’s Office to: (1) develop a statewide model protocol for law enforcement, prosecutors, and others, who in their professional capacity encounter sexually exploited and trafficked youth, on identifying and intervening with sexually exploited and trafficked youth; (2) conduct statewide training for law enforcement and prosecutors on the model protocol and the Safe Harbor Law described in Laws 2011, First Special Session chapter 1, article 4, as modified by Senate File No. 384, article 2, if enacted; and (3) develop and disseminate to law enforcement, prosecutors, and others, who in their professional capacity encounter sexually exploited and trafficked youth, on investigative best practices to identify sex trafficked victims and traffickers. By Jan. 15, 2015, the Ramsey County Attorney’s Office shall report to the chairs and ranking minority members of the Senate and House of Representatives committees and divisions having jurisdiction over criminal justice policy and funding on how this appropriation was spent. $50,000 each year is for a grant to the Upper Midwest Community Policing Institute for use in training community safety personnel about the use of de-escalation strategies for handling returning veterans in crisis. $50,000 each year is for a grant to the Juvenile Detention Alternative Initiative. Effective July 1, 2013. • Emergency communication networks funded. $59.138 million in 2014 and $63.639 million in 2015 are appropriated for the state’s emergency communication networks from the state government special revenue fund for 911 emergency telecommunications services. Effective July 1, 2013. • Public safety answering points funded. $13.664 million each year is to be distributed to public safety


answering points as provided in Minn. Stat. § 403.113, subd. 2. Effective July 1, 2013. • Medical Resource Communication Centers funded. $683,000 each year is for grants to the Minnesota Emergency Medical Services Regulatory Board for the Metro East and Metro West Medical Resource Communication Centers that were in operation before Jan. 1, 2000. Effective July 1, 2013. • Allied Radio Matrix for Emergency Management debt payment provided. $23.261 million each year is to the commissioner of Minnesota Management and Budget (MMB) to pay debt service on revenue bonds issued under Minn. Stat. § 403.275 for the Allied Radio Matrix for Emergency Management (ARMER). Any portion of this appropriation not needed to pay debt service in a fiscal year may be used by the commissioner of the DPS to pay cash for any of the capital improvements for which bond proceeds were appropriated by Laws 2005, chapter 136, Section 9, subd. 8; or Laws 2007, chapter 54, Section 10, subdivision 8. Effective July 1, 2013. • ARMER State Backbone Operating Costs funded. $9.25 million in 2014 and $9.65 million in 2015 are to the commissioner of the Minnesota Department of Transportation (MnDOT) for costs of maintaining and operating the first and third phases of the ARMER backbone. Effective July 1, 2013. • ARMER improvements funded. $1 million each year is to the Statewide Radio Board for costs of design, construction, and maintenance of, and improvements to, those elements of the statewide public safety radio and communication system that support mutual aid communications and emergency medical services or provide interim enhancement of public safety communication interoperability in those areas of the state where the statewide public safety radio and communication system is not yet implemented. Effective July 1, 2013. • Peace Officer Standards and Training Board funded. Section 13 appropriates $3.87 million in 2014 and $3.87 million in 2015 to the Peace Officer Standards and Training (POST) Board. This appropriation is from the Peace Officer Training Account in the special revenue fund. Any new receipts credited to that account in the first year in excess of $3.87 million must be transferred and credited to the general fund. Any new receipts credited to that account in the second year in excess of 3.87 million must be transferred and credited to the general fund. $2.734 million each year is for reimbursements to local governments for peace officer training costs. This amount represents an approximately $200,000 increase over the previous biennium. Of the reimbursement amount $100,000 the first year is for reimbursements to local governments for peace officer training costs on sexually exploited and trafficked youth, including effectively

2013 Law Summaries

identifying sex trafficked victims and traffickers, investigation techniques, and assisting sexually-exploited youth. Reimbursement will be provided on a flat fee basis of $100 per diem per officer. Effective July 1, 2013. • Private Detective Board funded. Section 14 provides $120,000 in each year of the biennium for the Private Detective Board. This is the same appropriation provided in the previous biennium. Effective July 1, 2013. • Department of Human Rights funded. Section 15 provides $3.297 million in each year of the biennium to the Dept. of Human Rights. This amount represents an approximately $200,000 increase over the previous biennium. $129,000 each year is for two additional contract compliance officers. Effective July 1, 2013. • Department of Corrections funded. Section 16 provides $481.47 million in 2014 and $487.304 million in 2015 to the Dept. of Corrections. This amount represents an approximately $55 million increase over the previous biennium. Effective July 1, 2013. Article 2: Guardians and conservators Article 2 contains provisions related to guardians and conservators. This article is not directly relevant to city operations. Article 3: Criminal justice Article 3 makes policy reforms related to corrections, public safety, the human rights department, and the courts. • Conditional release of nonviolent drug offenders provided. Section 3 creates Minn. Stat. § 244.0551. It authorizes the commissioner of the Dept. of Corrections to grant conditional release to nonviolent controlled substance offenders if the offenders serve a minimum portion of their sentences and complete substance abuse treatment while incarcerated. Effective July 1, 2013. • Grant allocation formula modified. Section 5 amends Minn. Stat. § 299A.73, subd. 3, by increasing from 1 percent to 5 percent, the percentage of the appropriation that may be used by the Minnesota Youth Intervention Programs Association for providing training and technical assistance to grantees. It also expands the allowable expenditures to include program and professional development and tracking, analyzing, and reporting outcome data and exempts the association from the match obligation. Effective July 1, 2013. • Court technology fee imposed. Section 6 adds a subdivision to Minn. Stat. § 357.021. It imposes a court technology fee of $2 on court filings made under section 357.021, subdivision 2, clauses (1) to (13). (Examples of these filings include the initial civil filing fees, motion fees, issuance of a subpoena, docketing fees, and others.) The court technology fee is deposited in a special revenue fund to be appropriated to the Supreme Court for distribution to the state courts and their justice partners for technology purposes. The section also authorizes

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the Judicial Council to establish a board consisting of members from the judicial branch, prosecutors, public defenders, and civil legal services to distribute the funds. It provides that applications may be accepted from the judicial branch, county and city attorneys’ offices, the Board of Public Defense, civil legal services organizations, corrections agencies, and part-time public defender offices. It directs the Judicial Council to submit two reports to the Legislature that provides an accounting and explanation of the distribution of funds. The subdivision sunsets on June 30, 2018. Effective July 1, 2013. Article 4. Data integration project Article 4 requires improved collection and reporting of information relevant to eligibility to possess and purchase firearms. • Dept. of Corrections fingerprints requirement modified. Section 1 amends Minn. Stat. § 241.301. It directs the commissioner of corrections to transfer fingerprint records of offenders transferred to the custody of the commissioner from another state to the BCA or National Instant Criminal Background Check System (NICS) by electronic entry within 24 hours of receiving the fingerprints. If the BCA receives data under this section in nonelectronic format, the commissioner must convert that record into electronic format for entry into the searchable database within three business days of receiving the record. Effective July 1, 2013. • Transmittal of data to National Instant Criminal Background Check System required. Section 2 amends Minn. Stat. § 253B.24. It directs a court to submit a mental health adjudication to NICS within three business days of issuing the ruling if it affects a mentally ill person’s right to possess firearms. Effective July 1, 2013. • Local agencies fingerprints requirements modified. Section 3 amends Minn. Stat. § 299C.10, subd. 1. It requires local law enforcement agencies to submit electronic fingerprint records to state searchable databases within 24 hours of taking the fingerprints. Effective July 1, 2013. • BCA fingerprints requirements modified. Section 4 amends Minn. Stat. § 299C.10, subd. 3. It directs the BCA to convert paper records of fingerprints, thumbprints, and other identification data into electronic format within three business days of receiving the data. Effective July 1, 2013. • Identification data other than DNA requirements modified. Section 5 amends Minn. Stat. § 299C.11, subd. 1. It directs the BCA to enter alias data for persons listed in the BCA’s offender database within three business days of the BCA becoming aware of the new identifying data. Effective July 1, 2013. • Information on released prisoner required. Section 6 amends Minn. Stat. § 299C.14. It directs sheriffs and the commissioner of corrections to enter specified data

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about soon-to-be-released offenders into a bureau-managed offender database. This transfer must occur within 24 hours of the offender’s release. Effective July 1, 2013. • Report by court administrator requirement authorized. Section 7 amends Minn. Stat. §299C.17. It authorizes the superintendent of the BCA to require the court administrator to provide the BCA with the sentence for each felony, gross misdemeanor, and targeted misdemeanor case within 24 hours of disposition of the case. Effective July 1, 2013. • Notice of firearms disqualification required. Section 8 amends Minn. Stat. § 624.713, subd. 3. It requires courts to provide notice to a person of their mental health civil commitment firearms disqualification. Effective Aug. 1, 2013. • Provision of firearms background check information. Section 9 adds a new subdivision to Minn. Stat. § 624.713. It directs the courts to notify NICS whenever the court places a person (adult or juvenile), who is charged with committing a crime of violence, into a pretrial diversion program before disposition. The court must notify NICS of both the person’s placement and the ordered expiration date of the program, and when the person completes the program the prosecuting attorney must notify NICS of that fact in a timely manner. Minn. Stat. § 624.713 prohibits such a person from possessing firearms until successfully completing the pretrial diversion program. Effective Aug. 13, 2013. • Prior civil commitments and felony convictions. Section 10 is a 2013 Session Law that establishes a July 1, 2014 deadline for courts and criminal justice agencies to enter data on civil commitments from Jan. 1, 1994, to Sept. 28, 2010, and felony convictions from 2008 to 2012, if those records have not already been submitted to the appropriate searchable databases. Effective July 1, 2013. • Criminal and juvenile justice information policy group report required. Section 11 is a 2013 Session Law that directs the Criminal and Juvenile Justice Information Policy Group to submit a report to the Legislature recommending how to improve the search capabilities of BCA-managed databases. The group must report on the progress of reducing the number of files in suspense. The group must also consult with the revisor on other statutory changes needed to implement this bill and the group’s legislative recommendations. Effective July 1, 2013. (AF) Hazardous substance release report required to local 911 emergency dispatch center Chapter 92 (HF 814*/SF 1033) adds a provision to Minn. Stat. § 609.671, subd. 10. It requires the state emergency response center to direct a caller to notify a local 911


emergency dispatch center of the release of a hazardous substance if the situation requires an immediate response or the area is unknown to the center. In all other cases, the state emergency response center must notify a local firefighting or law enforcement organization of the situation within 24 hours of receiving the notification. Effective Jan. 1, 2014. (AF) Public safety provisions in the omnibus transportation finance act Chapter 117 (HF 1444*/SF 1173) is the 2013 omnibus transportation finance act. The chapter spends $2.394 billion in FY 2014 and $2.346 in FY 2015. It sets the budget for the Minnesota Department of Transportation (MnDOT) and part of the Minnesota Department of Public Safety (DPS), as well as funding for the Metropolitan Council, for the upcoming biennium. It makes various changes in base appropriation levels largely reflecting the governor’s budget proposal, including increased appropriations for state roads, Driver and Vehicle Services, and capitol security. It authorizes $300 million in trunk highway bonds, available in fiscal year 2015, for the Corridors of Commerce program being established. Summarized are transportation provisions that may be of interest to cities. (Note: Transportation provisions in Chapter 117 are summarized in the Transportation section of the 2013 Law Summaries.) Article 1: Appropriations for FY 2014 and 2015 Article 1 provides a summary of all appropriations by fund. • Department of Public Safety funding provided. Section 5 provides $156.441 million in 2014 and $157.375 in million in 2015 to the DPS. Effective July 1, 2013. • Public safety officer survivor benefit funded. $380,000 in each year is from the general fund for payment of public safety officer survivor benefits under Minn. Stat. § 299A.44. Effective July 1, 2013. • Continued health insurance benefit reimbursement funded. $1.367 million in each year is from the general fund to be deposited in the Public Safety Officer’s Benefit Account. This money is available for reimbursements under Minn. Stat. § 299A.465. Effective July 1, 2013. • Soft body armor reimbursement funded. $600,000 in each year is from the general fund and $100,000 in each year is from the Trunk Highway Fund for soft body armor reimbursements under Minn. Stat. § 299A.38. Effective July 1, 2013. • Capitol Security recommendations funded. $1,250,000 in each year is to implement the recommendations of the advisory committee on Capitol Area Security under Minn. Stat. § 299E.04, including the creation of an emergency manager position under Minn. Stat. § 299E.01, subdivision 2, and an increase in the

2013 Law Summaries

number of State Patrol troopers and other security officers assigned to the Capitol complex. The commissioner may not: (1) spend any money from the Trunk Highway fund for capitol security; or (2) permanently transfer any state trooper from the patrolling highways activity to capitol security. The commissioner may not transfer any money appropriated to the commissioner under this section: (1) to capitol security; or (2) from capitol security. Effective July 1, 2013. Article 3: Funding policy provisions Article 3 contains policy provisions related to transportation and public safety funding. (Note: The transportation provisions can be found in the Transportation section of the 2013 Law Summaries.) Following are transportation provisions that may be of interest to cities: • Ignition interlock exception provided. Section 7 amends Minn. Stat. § 169A.37, subd. 1. It Narrows the prohibition on driving a vehicle during plate impoundment, to allow a person to drive an employer-owned vehicle that is not required to be equipped with an ignition interlock. Effective May 24, 2013. • Implied consent advisory requirement exception provided. Section 8 amends Minn. Stat. § 169A.51, subd. 2. It creates an exception to the implied consent advisory requirement. It provides that a peace officer who is not pursuing an implied consent license revocation is not required to give an advisory to a person who is believed to have committed an alcohol or drug-related criminal vehicular operation (CVO) offense. Effective July 1, 2014. • License reinstatement eligibility modified. Section 9 adds a subdivision to Minn. Stat. § 169A.55. It provides that a person who has committed an alcohol-related CVO offense that resulted in injury but not death is eligible for license reinstatement once the person has submitted verification of the use of ignition interlock for the applicable time period. Effective July 1, 2014. • Driving permit allowed after 15 hours of instruction. Section 10 amends Minn. Stat. 171.05, subd. 2. It allows a person to get a driving instruction permit when taking classroom and behind-the-wheel concurrently, following at least 15 hours of classroom instruction (and when other requirements are met). It directs the department to adopt administrative rules and permits use of the exempted rulemaking process. Under current law, a person must first complete the classroom portion and be enrolled in behind-the-wheel in order to obtain a permit. Effective Jan. 1, 2014. • Driver’s license renewal fee increased. Section 11 amends Minn. Stat. §171.061, subd. 4. It increases, from $5 to $8, the filing fee charged for a new or renewal driver’s licenses and Minnesota identification cards. The same fee amount is imposed by agents authorized by Driver and Vehicle Services (DVS) to administer driver

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licensing offices, and by DVS at its locations. (Filing fees collected by agents are retained by them, and fees collected by DVS are deposited in an operating account in the special revenue fund for DVS program administration.) Effective Jan. 1, 2014. • Criminal vehicular operation; revocation periods. Section 12 adds a subdivision to Minn. Stat. § 171.17. It places DWI-related criminal vehicular operation revocation periods in statute (see section 41, paragraph (b) of this article—repealing related rules). Specifies the revocation period (ranging from two to 10 years) based on the resulting harm and/or number of qualified prior impaired driving incidents. Effective July 1, 2014. • Suspension; criminal vehicular operation and manslaughter. Section 13 creates Minn. Stat. § 171.187. It requires the Department of Public Safety to suspend a person’s driver’s license if: (1) the peace officer certifies that there is probable cause to believe the person committed a DWI-related CVO offense; or (2) the person has been formally charged with manslaughter or CVO, resulting from operation of a vehicle. It continues a suspension until the completion of the criminal case or by order of the commissioner. It provides that, if a person is convicted, the commissioner must credit the time accrued under the suspension towards the revocation period. It authorizes the aggrieved person to request an administrative review of the suspension. Effective July 1, 2014. • Conditions of issuance provided. Section 14 amends Minn. Stat. § 171.30, subd. 1 It allows issuance of a limited license to a person whose license was suspended under the new suspension provision created in section 13. Effective July 1, 2014. • Non-alcohol related criminal vehicular operation license issuance. Section 15 amends Minn. Stat. § 171.30, subd. 2a. It prevents issuance of a limited license for one year to a person convicted of a non-alcohol related criminal vehicular operation offense, or an alcohol-related criminal vehicular homicide offense. Effective July 1, 2014. • Alcohol related criminal vehicular operation offender limited license prohibited. Section 16 adds a provision to Minn. Stat. § 171.30. It prohibits issuance of a limited license to a person convicted of an alcoholrelated criminal vehicular operation offense involving injury but not death. Effective July 1, 2014. • Ignition interlock “program participant” definition modified. Section 17 amends Minn. Stat. § 171.306, subd. 1. It amends the definition of an ignition interlock “program participant” to include a person whose license was suspended or revoked for an alcoholrelated criminal vehicular operation offense involving injury but not death. Effective July 1, 2014. • Ignition interlock program participation authorized. Section 18 amends Minn. Stat. § 171.306, subd. 4.

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It allows participation in the ignition interlock program by someone whose license was suspended or revoked for an alcohol-related criminal vehicular operation offense involving injury but not death. Effective July 1, 2014. • Capitol emergency manager position created. Section 30 amends Minn. Stat. § 299E.01, subd. 2. It creates the position of emergency manager in the Capitol Complex Security Division permanent staff and assigns duties to the position. Effective July 1, 2013. • Public Safety commissioner authority provided. Section 31 amends Minn. Stat. § 299E.01, subd. 3. Assigns the commissioner of the Department of Public Safety as the final authority over public safety and security in the Capitol complex. The commissioner of the Department of Administration is responsible for the Capitol complex as provided under Minn. Stat., chapter 16B, which assigns general management responsibilities. Effective July 1, 2013. • Probable cause certification required. Section 35 creates Minn. Stat. § 629.344. It provides that an officer must certify to the Department of Public Safety a determination that probable cause exists to believe a person committed a DWI-related criminal vehicular operation offenses. Effective July 1, 2014. (AF) ATV use statutes related to ditches and rights-ofway revised Chapter 121 (*SF 796/HF 742) is the omnibus game and fish policy bill and contains two sections related to the operation of all-terrain vehicles (ATV): • Section 4 relates to youthful operators and states that a person 12 years of age but less than 16 years of age may operate an ATV on the bank, slope, or ditch of a public road right-of-way as permitted under MN Stat § 84.928 if they both possess a valid all-terrain vehicle safety certificate issued by the commissioner and are accompanied by a parent or legal guardian on a separate ATV. • Section 6 amends MN Stat § 84.928, subd. 1 to allow the operation of a class 2 ATV on the bank, slope, or ditch of a public road right-of-way of a trunk, county state-aid, or county highway, but only to access businesses or make trail connections. Left turns may be made from any part of the road if it is safe to do so under the prevailing conditions, unless prohibited under paragraph (d) or (f) of that section of law. Effective Aug. 1, 2013. (CJ) Statewide Radio Board Chapter 32 (HF 669*/SF 803) makes changes to allow the Statewide Radio Board to restructure as the Statewide Emergency Communications Board to integrate interoperable emergency communication technologies—the Allied Radio Matrix for Emergency Response (ARMER) sys-


tem, 911 service, wireless broadband—and allow a federally recognized tribal government to be integrated into a Regional Radio Board structure. • General. Section 4 amends Minn. Stat. § 403.37 subd 1. It gives the Statewide Radio Board the powers need to oversee planning, implementation, and maintenance of the ARMER system. • Statewide emergency communication board. Section 6 creates a new statute, Minn. Stat. § 403.382. It permits the Statewide Radio Board to elect to become the Statewide Emergency Communication Board, which would be responsible for statewide coordination of 911 service as well as the ARMER system. The new provision requires the board to plan and coordinate a statewide public safety broadband network and other wireless communication technologies for public safety emergency communication networks. • Regional radio boards. Section 7 amends Minn. Stat. § 403.39. It authorizes a regional radio board to include a federally recognized Indian tribe. It also permits a regional radio board to administer grants on behalf of one or more public safety entities operating in the jurisdiction. Furthermore, it permits a regional radio board to expand the scope of its joint powers agreement to other public safety purposes. • Regional emergency communication boards. Section 8 creates a new statute, Minn. Stat. § 403.392. It authorizes a regional radio board to elect to become a regional emergency communication board and include 911 services. • Topical advisory committee. Section 9, amends Minn. Stat. § 403.40, subd. 2. It permits the statewide radio board to establish advisory groups to assist with the interoperable public safety communication system. • Repealer. Section 12 repeals Minn. Stat. § 403.33, which contained language for local planning. The statute was repealed to integrate statewide coordination and give comprehensive authority to the board to address all emergency communications. Effective Aug. 1, 2013. (LZ)

TAXES Omnibus tax bill Chapter 143 (*HF 677/SF 552) is the 2013 omnibus tax bill. The bill raises roughly $2.1 billion in additional revenues to balance the state’s estimated $627 million deficit and to fund new spending priorities of the 2013 Legislature for the FY2014-2015 biennium. Chapter 143 includes $411 million in spending for programs such as an expanded homestead credit refund, Local Government Aid, and County Program Aid. The bill also includes a general sales tax exemption for purchases by cities and counties.

2013 Law Summaries

Article 1: Homestead credit refund and renter property tax refund Article 1 amends various sections of Minn. Stat. § 290A to modify and expand the homeowner and renter property tax refund programs. • Homeowner credit refund. The homeowner program is renamed the “homestead credit refund,” and the program is expanded by decreasing the income threshold percentages used to determine eligibility and increasing the maximum refund across all qualifying income ranges. The renters refund program is also modified with corresponding decreases in the income threshold percentages and increases in the maximum refund for renters across all income ranges. The changes in the homeowner and renters programs also provide that most voluntary contributions to retirement plans are not included in household income, and all distributions from retirement plans are included in household income. • Notice. To increase awareness of the homestead credit refund program, the law requires the commissioner to match property tax data submitted by the counties with income tax and other data collected by the Department of Revenue, and notify those homeowners whom the commissioner estimates may be eligible for a homestead credit refund of at least $1,000. Effective for homestead credit refunds based on taxes payable in 2014 and rent paid in 2013 and thereafter, and effective for renter property tax refunds beginning with refunds based on rent paid in 2013. Article 2: Property tax aids and credits • Disparity reduction credit. Section 1 amends Minn. Stat. § 273.1398, subd. 4 to increase the disparity reduction credit by providing that the credit will be the amount necessary to reduce the effective tax rate on commercial-industrial and apartment properties in the four border cities to 1.9 percent, compared to the current 2.3 percent. Effective beginning with taxes payable in 2014. • Sustainable Forest Incentive Program. Sections 2 through 5 and sections 34 and 35 make changes to the Minnesota Sustainable Forest Incentive Program. • Section 2 amends Minn. Stat. § 290C.02, subd. 6 to exclude land exceeding 60,000 acres that is subject to a single conservation easement and any land that becomes subject to a conservation easement after May 30, 2013, from participation in the Sustainable Forest Incentive Act (SFIA) program. Effective for certifications and applications due in 2013 and thereafter. • Section 3 amends Minn. Stat. § 290C.03 to require that claimants enrolling more than 1,920 acres in the program must also allow motorized access on established and maintained roads and trails, unless the road or trail is temporarily closed for safety, natural resource,

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or road damage reasons. Effective for calculations made in 2013 and thereafter. • Section 4 amends Minn. Stat. § 290C.055 to allow a participant to terminate its covenant in the program if future changes are made to the payment formula. Effective for calculations made in 2013 and thereafter. • Section 5 amends Minn. Stat. § 290C.07 to remove the $100,000 per recipient cap on SFIA payments. Effective for calculations made in 2013 and thereafter. • Section 34 is an uncodified session law that releases lands from their SFIA covenants if they are disqualified from participating in the program as a result of conservation easements. Effective the day following final enactment. • Section 35 is an uncodified session law that allow lands that dropped out the SFIA program in response to the 2011 changes in the law to reenroll and qualify for 2013 SFIA payments, if they do so within 60 days after enactment of the bill. Effective the day following final enactment. • Police and firefighter retirement supplemental state aid. Section 6 creates a new section, Minn. Stat. § 423A.022, to provide for annual state payments of $15.5 million per year to support police and firefighter pension funds. Each year, $9 million will be paid to the Public Employees Retirement Association (PERA) as an amortization aid for the Police and Fire Fund, $5.5 million per year will be paid by formula to municipalities with voluntary firefighters, and $1 million will be paid to the Minnesota State Retirement System for deposit in the state patrol fund. The $5.5 million appropriation for voluntary firefighter pensions will be allocated to each municipality, except for municipalities with firefighter retirement coverage provided solely through the PERA Police and Fire Fund, in proportion to the most recent amount of fire state aid paid to the municipality relative to the most recent statewide total fire state aid for all non-PERA P&F municipalities. There will be no additional filing requirement beyond the March 15 fire state aid application in order to receive the additional aid amount. Although the total amount of available fire state aid is not known at this time, the $5.5 million appropriation would have resulted in a roughly 30 percent increase in the fire aid amount if it had been in place for the 2012 distribution. The final 2013 increase percentage will be based on the actual available fire state aid. The allocated amount for fire departments participating in the PERA voluntary statewide lump-sum volunteer firefighter retirement plan will be paid directly to PERA, credited to the respective account, and deposited in the fund. For other local plans, the amount will be paid to each municipality, and transmitted within 30 days of receipt to the applicable volunteer firefighter relief association for deposit in its special fund.

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The aid program under this section ends on the Dec. 1 following the actuarial valuation date on which the assets of the retirement plan on a market value basis equals or exceeds 90 percent of the total actuarial accrued liabilities of the retirement plan. Effective beginning in the fiscal year beginning July 1, 2013. • Local Government Aid (LGA) reform. Sections 7 through 18 (except section 13) and Section 36 amend Minn. Stat. § 477A and include the LGA reform proposal based on legislation introduced by Rep. Ben Lien (DFLMoorhead) and Sen. Roger Reinert (DFL-Duluth). A detailed description of the new formula and a printout with the estimated 2014 LGA amounts for each city can be found in Appendix B at the back of this booklet. • New LGA formula. The LGA formula will now include a three-tier LGA need factor calculation depending on the population of the city, with separate “need” calculations for cities under 2,500 in population, cities between 2,500 and 10,000 in population, and cities over 10,000 in population. All three need formulas were derived using revenue base (levy plus aid) as a proxy for city need. The small city need calculation is based on a statistical analysis of the spending patterns of cities under 2,500 population, while the medium and large city need calculations are based on regression analysis of current fiscal and demographic data similar to the techniques used in previous LGA formulas. The new formula will reduce the annual volatility in the LGA distribution to individual cities by modifying the method used to allocate the annual appropriation increase. Under the new formula, no city will experience a reduction in LGA in 2014. Beginning with the 2015 distribution, roughly 90 cities would experience some reduction in their LGA distribution. However, the new formula will limit annual reductions to the lesser of $10 per capita or 5 percent of the city’s previous year net levy. For cities that will gain under the new formula, those whose current LGA distribution is furthest from their unmet need will receive proportionally larger increases. The new formula also significantly simplifies the LGA system by eliminating several of the formula side pots. • City-specific adjustments. Section 16 provides for three city-specific aid adjustments from the formula. • Warroad. The City of Warroad will receive an extra $150,000 per year for the next five years to compensate for a major commercial property devaluation. The Warroad provision had been a permanent adjustment under the former LGA system but the adjustment will now sunset in five years. • Mahnomen. The City of Mahnomen will receive an extra annual LGA payment of $160,000 to compensate for tax base loss due to a casino being exempted under federal law.


• Red Wing. The City of Red Wing will receive a one-time additional payment of $1 million for 2014 only. The total LGA appropriation for 2014 was increased to cover these additional distributions. • Disaster areas. Section 17 allows a city that is located in a disaster area for an event that occurred in April 2013 to get its entire 2013 LGA payment on July 20, 2013. This provision covers cities in the counties of Rock, Nobles, Jackson, Murray, and Cottonwood. • Total appropriation. Section 18 sets the total city aid appropriation at $507.6 million for aids payable in 2014, $509.1 million for aids payable in 2015, and $511.6 million for aids payable in 2016 and thereafter. • Repealer. Section 36 repeals a number of current law provisions related to the existing LGA formula that are no longer used in the new distribution formula as well several obsolete provisions related to aid reductions over the last several years. Section 17 is effective for aids payable in calendar year 2013. All other LGA sections are effective for aids payable in calendar year 2014 and thereafter. • County program aid. Section 19 amends Minn. Stat. § 477A.03 subd. 2b by increasing county program aid by $40 million per year for aids payable in 2014 and thereafter by increasing the appropriation for “need aid” and “tax base equalization aid” each by $20 million. This section also makes technical language changes related to payments for local impact notes. Effective for aids payable in calendar year 2014 and thereafter. • New township LGA. Sections 13 and 20 create new sections, Minn. Stat. § 477A.013, subd. 1 and 477A.03, subd. 2c, that establish a new township LGA system, and sets the town aid appropriation for aids payable in 2014 and thereafter at $10 million. The township formula provides aid payments to townships equal to the product of: (1) its agricultural property factor; (2) its town area factor; (3) its population factor; and (4) 0.0045. If the sum of all aids payable under this subdivision exceeds the limit, the distribution to each township is reduced proportionately. Effective for aids payable in calendar year 2014 and thereafter. • Minneapolis debt service aid. Section 21 creates a new section, Minn. Stat. § 477A.085, that requires the state to make annual payments to the City of Minneapolis equal to 40 percent of the annual levy for payments for the city’s library referendum bonds, beginning in 2016. Effective July 1, 2013. • Payment in lieu of taxes (PILT) program. Sections 22 to 32 and section 36 amend various sections of Minn. Stat. ch. 477A related to the PILT program, including: the addition of a purpose statement for PILT; a variety of modifications to existing statutes to define “acquired natural resources land” to specifically exclude “wildlife management land;” a new definition of “military game

2013 Law Summaries

refuge” as land owned in fee by another state agency for military purposes and designated as a state game refuge (this land is the Camp Ripley game refuge that currently receives a payment under Chapter 97A); a new definition of “transportation wetland” as land administered by the Department of Transportation in which the state acquired, by purchase from a private owner, a fee title interest in over 500 acres of land within a county to replace wetland losses from transportation projects; and “wildlife management land” as land administered by the commissioner in which the state acquired, from a private owner by purchase, condemnation, or gift, a fee interest under the authority granted in Minn. Stat. ch. 94 (lands, state forests) or Minn. Stat. ch. 97A (game and fish) for wildlife management purposes and actually used as a wildlife management area. Section 28 amends Minn. Stat. § 477A.12, subdivision 1 to modify PILT payments as follows: • Acquired natural resources land: $5.133, multiplied by the total number of acres or, at the county’s option, three-fourths of 1 percent of the appraised value of land in the county, whichever is greater (no change); • Transportation wetland: $5.133, multiplied by the total number of acres of transportation wetland, or, at the county’s option, three-fourths of 1 percent of the appraised value of all acquired natural resources land in the county, whichever is greater (similar to current law); • Wildlife management land: Three-fourths of 1 percent of the appraised value of all wildlife management land in the county (new provision); • Military refuge land: 50 percent of the dollar amount as determined under clause (1), multiplied by the number of areas of military refuge land in the county (same as current payment in Chapter 97A); • County-administered: $1.50 multiplied by the number of acres of county-administered other natural resource land in the county (increased from $1.283/ acre payment in current law); • Land utilization projects: $5.133 multiplied by the total number of acres of land utilization project land in the county (increased from $1.23/ acre under current law); • Commissioner-administered: $1.50 multiplied by the total number of acres of commissioner-administered other natural resources land in the county (increased from $0.642/acre under current law). • Local drainage assessments: Without regard to acreage, $300,000 for local assessments under section 84A.55, subdivision 9 (new provision). Sections 22 through 32 are effective for aids payable in calendar year 2013 and thereafter. • Section 36 repeals the additional or alternative PILT payments in Chapter 97A for goose crop lands, public

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hunting lands, and Camp Ripley game refuge, as well as a payment to Chisago County for land in St. Croix Wild River State Park under special law. Effective July 1, 2013. • Mahnomen County local government appropriations. Section 33 increases the annual aid appropriations to taxing jurisdictions in Mahnomen County from $600,000 to $1.2 million. The payments are as follows: $900,000 to Mahnomen County; $160,000 to the City of Mahnomen; and $140,000 to Independent School District No. 432, Mahnomen. Effective for aids payable in calendar year 2013 and thereafter. Article 3: Education provisions Article 3 includes several modifications to Minnesota’s education finance system that provide higher levels of school district referendum equalization, allow $300 of referendum levy to be approved by the school board rather than the voters, and create a location equity revenue program for school districts in the seven-county metro area and outstate regional center districts. Various effective dates. Article 4: Property taxes • Board of Water and Soil Resources (BWSR) evaluation and report. Section 1 amends Minn. Stat. § 103B.102, subd. 3 to extend the maximum amount of time BWSR has to evaluate a local water management entity’s progress in accomplishing its plan from five years to 10 years, and allows the board to determine the frequency based on the budget and operations of the entity. Effective July 1, 2013. • Comprehensive watershed management plan tax levy authority. Section 2 amends Minn. Stat. § 103B.335 to broaden tax levy authority by allowing a county, municipality, or township to levy for implementation funds for a comprehensive watershed management plan. This section also clarifies that counties may levy for the reasonable costs to soil and water conservation districts for administering and implementing programs identified in the plans. Effective July 1, 2013. • Local water resources restoration, protection and management program financial assistance. Section 3 amends Minn. Stat. § 103B.3369, subd. 5 to require a county that implements a water implementation tax to raise matching funds for base grants awarded by BWSR to levy at a rate that is sufficient to generate a minimum amount (to be determined by BWSR). This section also authorizes the use of funds raised by metropolitan county conservation fees (a $5 fee on mortgage and deed recordings/registrations) to be used as matching funds for the base grants and to address high-priority needs in local water management plans or comprehensive watershed management plans. Effective July 1, 2013. • Cost-sharing conservation contracts for erosion control and water management. Section 4 amends

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Minn. Stat. § 103C.501, subd. 4 to eliminate cost-share fund allocation requirements that required 70 percent of cost-share funds to be allocated to certain areas and no more than 20 percent to be allocated for technical and administrative assistances. This section also requires that funds for technical assistance be used to leverage federal or other non-state funds or address high-priority needs in local water management plans or comprehensive watershed management plans. Effective July 1, 2013. • Soil loss ordinance authority. Section 5 amends Minn. Stat. § 103F.405, subd. 1 to allow soil loss ordinances adopted by counties, cities, and towns to use the soil loss tolerance for each soil type developed by BWSR, in addition to those in the United States National Resources Conservation Service Field Office Technical Guide, which is currently the only approved source. Soil loss tolerance is the maximum annual rate of soil loss by erosion that will permit crop productivity to be sustained. The soil loss ordinances must be consistent with a comprehensive plan, local water management plan, or watershed management plan. Effective July 1, 2013. • Manufactured homes and park trailers. Section 6 amends Minn. Stat. § 168.012, subd. 9 to exempt manufactured homes and park trailers from the motor vehicle registration tax and the personal property tax if the unit is held as inventory by a limited dealer. Under current law, the inventory exemption applies only to “licensed dealers.” Effective for taxes payable in 2014 and thereafter. • Manufactured home as dealer inventory. Section 7 creates a new subdivision, Minn. Stat. § 168.012, that defines a manufactured home as dealer inventory if it is listed as inventory by a licensed or limited dealer, and is unoccupied and not available for rent. Under these conditions, it is considered part of dealer’s inventory even if it is permanently connected to utilities when located in a manufactured home park or temporarily connected to utilities when located at a dealer’s sales center. This section also puts a five-year limit on the time that an unoccupied home held in inventory is exempt. Effective for taxes payable in 2014 and thereafter. • State Board of Assessors; assessor sanctions. Section 8 amends Minn. Stat. § 270.41, subd. 3 to provide that the state board of assessors may censure, warn, or fine an assessor in addition to their currently available possible sanctions of suspending, revoking, or refusing to grant a license. The new sanctions can also be applied against unlicensed assessors. Effective July 1, 2013. • Report on disciplinary actions against assessors. Section 9 adds a new subdivision, Minn. Stat. § 270.41, that requires the state board of assessors to make a biannual report on the sanctions recommended by the commissioner of revenue under section 14, and the disposition of those recommendations by the board. Effective July 1, 2013.


• Disposition of assessor fines. Section 10 amends Minn. Stat. § 270.45 to provide that fines imposed under section 8 above must be deposited in the state’s general fund. Effective July 1, 2013. • Assessor accreditation. Section 11 adds a new section, Minn. Stat. § 270C.9901, that requires that every individual who appraises or physically inspects property for property tax valuation or classification purposes must become licensed as an accredited assessor by July 1, 2019, or by four years after becoming a licensed assessor, whichever is later. Effective Jan. 1, 2014. • Economic development holding period. Section 12 amends Minn. Stat. § 272.02, subdivision 39 to increase the allowable tax exempt holding period for city-owned property awaiting development from nine years to 15 years under two conditions: (1) the property was acquired on or after Jan. 1, 2000, and on or before Dec. 31, 2010, regardless of geographic location, or (2) property is located in a city with a population under 20,000 located outside the metro area. Under current law, the allowable holding period is 15 years for cities under 5,000 population located outside the metro area, and nine years for all other cities. Effective for assessment year 2013 and thereafter and for taxes payable in 2014 and thereafter. • Exemption for eligible property owned by Indian tribe. Section 13 adds a new subdivision, Minn. Stat. § 272.02, subd. 98, that creates a property tax exemption for certain property located in Minneapolis owned by a federally recognized tribal government used for tribal government activities or services to members of the tribe. The exemption applies only to property used for noncommercial and nonresidential purposes and to no more than two contiguous parcels. The tax exemption expires with taxes payable in 2024. Effective beginning with taxes payable in 2014. • Electric generation facility property tax exemption. Section 14 amends Minn. Stat. § 272.02 to provide a property tax exemption for the personal property of a new electric generation facility on which construction begins between June 1, 2013, and June 1, 2017, that exceeds five megawatts of installed capacity, utilizes natural gas as a primary fuel, is owned and operated by a municipal power agency, is located within the service territory of a municipal power agency’s utility that serves a metropolitan county, and connects directly with a municipality’s substation. These facilities are planned for the cities of Anoka, Chaska, North St. Paul, and Shakopee. Effective for assessment year 2013, taxes payable in 2014, and thereafter. • Commissioner review of assessment practices. Sections 15 and 16 amend Minn. Stat. § 273.061, subd. 2 and Minn. Stat. § 273.0645 to provide that the commissioner of revenue may conduct investigations of assessor malfeasance, and make recommendations to the state

2013 Law Summaries

board of assessors for appropriate sanctions. Effective July 1, 2013. • Conservation property tax valuation. Section 17 amends Minn. Stat. § 273.117 to provide that the value of real property subject to a conservation restriction or easement shall not be reduced by the assessor if the restriction is for a conservation purpose and the property is being used in accordance with the restriction. This section also clarifies that this section does not apply to restrictions or easements covering riparian buffers along lakes, rivers, and streams that are used for water quantity or quality control, or to easements granted by a county that has adopted a program by referendum to protect farmland and natural areas since 1999. Effective for assessment year 2013 and thereafter, and for taxes payable in 2014 and thereafter. • Class 4d (low-income rental housing) property. Section 18 amends Minn. Stat. § 273.13, subd. 25 to provide for a reduced class rate of 0.25 percent for class 4d property over $100,000 in value per housing unit. Currently the entire 4d class is subject to a class rate of 0.75 percent. This section also provides for indexing of the tier bracket based on the statewide average growth rate for apartment property values and makes several technical modifications. Effective beginning with assessment year 2014 for taxes payable in 2015. • Federal active service late property tax payment exception. Sections 19 and 20 amend Minn. Stat. § 279.01, subd. 1 and add a subdivision, Minn. Stat. § 279.01, subd. 5, that grant a four-month grace period for complying with the property tax due dates for homestead property owned by an individual who is on federal active service. Section 20 also specifies that no late fees or penalties may be assessed during this period and the taxpayer must also provide proof of the dates of active federal service at the time of payment. Effective July 1, 2013. • Active federal service; delinquent homestead property taxes. Section 21 amends Minn. Stat. § 279.02 to provides that property owned by an individual who is on active federal service on the property tax due date shall not be deemed delinquent. Effective July 1, 2013. • Confessions of judgment for commercial, industrial, and utility real and personal property. Section 22 amends Minn. Stat. § 279.37, subd.1a to remove the value cap of $500,000 for class 3a property (commercial, industrial, and utility real and personal property ) eligible for a confession of judgment, and adds an approval requirement by the county auditor. This section also allows assessment authorities or municipalities to waive or abate repayment of a portion of special assessments. The county auditor may require conditions including, but not limited to, environmental remediation when considering eligibility. Effective July 1, 2013.

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• Confessions of judgment installment payments. Section 23 amends Minn. Stat. § 279.37, subd. 2 to adjust amount and number of payments under confessions of judgment by allowing an initial payment of one-fifth the amount and four equal, annual installments. Effective July 1, 2013. • Expiration of time for redemption. Section 24 amends Minn. Stat. § 281.14 to conform a cross-reference for redemption periods. Effective July 1, 2013. • Redemption period for homestead and seasonal, residential, recreation land. Section 25 amends Minn. Stat. § 281.17 to remove the five-year period for redemption for homestead or seasonal residential recreational land. This has the effect of instituting a three-year redemption period for most properties. Effective July 1, 2013. • Hennepin and Ramsey counties mortgage registry tax authorization. Section 26 amends Minn. Stat. § 287.05 to codify the authority for Hennepin and Ramsey counties to levy an additional mortgage registry tax in the statute governing mortgage registry taxes. Effective for deeds and mortgages acknowledged on or after July 1, 2013. • Hennepin and Ramsey counties deed tax authorization. Section 27 adds a new section, Minn. Stat. 287.40, that codifies the authority for Hennepin and Ramsey counties to levy an additional deed tax. Effective for deeds and mortgages acknowledged on or after July 1, 2013. • Ramsey County mortgage registry and deed tax expiration. Section 28 amends Minn. Stat.§ 383A.80, subdivision 4 to extend the Ramsey County authority to levy additional mortgage registry and deed taxes by 15 years to Jan. 1, 2028. Effective for all deeds and mortgages acknowledged on or after July 1, 2013. • Hennepin County mortgage registry and deed tax expiration. Section 29 amends Minn. Stat. § 383B.80, subdivision 4 to extend the Hennepin County authority to levy additional mortgage registry and deed taxes by 15 years to Jan. 1, 2028. Effective for all deeds and mortgages acknowledged on or after July 1, 2013. • Special service district authorization extended. Section 30 amends Minn. Stat. § 428A.101 to extend city authority to establish new special service districts without special authorization by 15 years to June 30, 2028. Effective May 24, 2013. • Housing improvement district authorization extended. Section 31 amends Minn. Stat § 428A.21 to extend city authority to establish new housing improvement districts without special authorization by 15 years to June 30, 2028. Effective May 24, 2013. • Bloomington fiscal disparities repayment computation. Section 32 amends Minn. Stat § 473F.08, subdivision 3a to relieve Bloomington of its obligation to repay a loan it received from the metropolitan fiscal disparities pool for infrastructure improvements related

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to the Mall of America in the late 1980s and 1990s. This provision relieves the City of the last four years of repayment, 2015-2018. The state will make the extra payments to the pool for those four years. Effective beginning with taxes payable in 2015. • Cook-Orr Hospital District. Section 33 amends Laws 1988, chapter 645, section 3, as amended most recently by Laws 2008, chapter 154, article 2, section 30, to allow the Cook-Orr Hospital District levy to be used to purchase equipment, parts, and replacement parts for ambulances, in addition to the existing authority to purchase ambulances. The proceeds of the levy must be divided equally between the Cook and Orr ambulance services. Effective July 1, 2013. • Northwest Minnesota Housing and Redevelopment Authority levy authority. Section 35 amends Laws 2008, chapter 366, article 5, section 33, (the effective date) to extend the authority of the Northwest Minnesota Multicounty Housing and Redevelopment Authority to levy up to 25 percent of its total levy authority on its own by five years, through taxes payable in 2018. Effective beginning with taxes payable in 2014. • Cloquet area fire and ambulance taxing district agreement. Section 36 amends Laws 2009, chapter 88, article 2, section 46, subdivision 1 to allow municipalities that are non-contiguous to current member-municipalities to join the district. Effective July 1, 2013. • Cloquet area fire and ambulance taxing district tax. Section 37 amends Laws 2009, chapter 88, article 2, section 46, subdivision 3 to require the district board to determine the amount of the levy attributable to fire and ambulance services. Costs of ambulance services shall be levied at a rate not to exceed 0.019 percent of estimated market value and for municipalities that receive both fire and ambulance services the levy shall be at a rate not to exceed 0.2835 percent. Effective July 1, 2013. • Marshall County farm homesteads. Section 38 amends Laws 2010, chapter 389, article 1, section 12, (the effective date) to allow farmers in Marshall County who were forced to move away from their farms due to flooding in 2009 to continue to receive agricultural homestead classification on the farmland indefinitely, provided they continue to reside in Minnesota within 50 miles of the land. This provision was originally adopted in 2010 on a temporary (two-year) basis. Effective for assessment year 2012 and thereafter. • Entertainment facilities coordination study. Section 39 is an uncodified session law that requires the cities of Minneapolis and St. Paul to report to the Legislature by Feb. 1, 2014, their study of providing a joint governing structure for the arenas in the two cities. This section also requires the commissioner of administration to contract with a consultant to conduct all or a portion of the study, requires the two cities to each pay onehalf of the cost of the study, and provides a general fund


appropriation of $50,000 to the commissioner of administration to pay up to one-half of the cost of the consultant contract. Effective May 24, 2013. • Reimbursement for tax abatements. Section 40 amends Laws 2011, First Special Session chapter 7, article 5, section 13 to require the commissioner of revenue to reimburse taxing jurisdictions for property tax abatements granted because of a tornado that damaged parts of Minneapolis and other parts of the northern metro area in 2011. The state authorized these abatements including state reimbursements in the 2011 tax bill, but Hennepin County’s request for reimbursements was submitted after the deadline in the legislation. Effective May 24, 2013. • St. Paul Saints stadium property tax exemption. Section 41 is an uncodified session law that grants a property tax exemption for a city-owned baseball stadium primarily used by a minor league team. The stadium remains subject to special assessments. Effective the day after compliance by the governing body of the City of St. Paul with Minnesota Statutes, section 645.021, subdivisions 2 and 3. • Target Center property tax exemption. Section 42 is an uncodified session law that provides a property tax exemption for the Target Center. The exemption does not apply to any portion of the facility leased for business purposes unrelated to the operation of the arena, including a restaurant open more than 200 days a year. Effective the day after compliance by the governing body of the City of Minneapolis with Minnesota Statutes, section 645.021, subds 2 and 3. • Public entertainment facility; construction manager at risk. Section 43 is an uncodified session law that allows the City of Minneapolis to contract with persons, firms, or corporations to perform projects to renovate, refurbish and remodel the Target Center under either the traditional design-bid-build or construction manager at risk, or a combination thereof. Effective the day after compliance by the governing body of the City of Minneapolis with Minnesota Statutes, section 645.021, subds 2 and 3. • Extension of property tax due date for resorts. Section 44 is an uncodified session law that extends the time resort owners and other seasonal business owners have to pay their first half property taxes by two weeks, from May 31 to June 14, for taxes payable in 2013 only. Effective May 24, 2013. • Report on tier structure for 4d class (low-income rental housing). Section 45 is an uncodified session law that requires the commissioners of revenue and the housing finance agency to report to the Legislature by Jan. 31, 2015, on the effect of the changes to the class 4d (low-income rental housing) tier structure found in section 18 above. Effective July 1, 2013.

2013 Law Summaries

• Study and report on production property; moratorium on assessment changes. Section 46 is an uncodified session law that requires the commissioner of revenue to study the assessment of property used in the production of biofuels and other industries that use similar types of equipment, and report the findings of the study to the Legislature by Feb. 1, 2014. This section also prohibits assessors from changing current assessment practices with regard to the taxable status of property used in the production of biofuels and other industries that use similar types of equipment, for taxes payable in 2014 and 2015 only. Effective July 1, 2013. • Property tax savings report. Section 47 is an uncodified session law that requires all counties and each city with a population over 500 to include along with its certification of its proposed levy, the amount of sales and use tax paid or estimated to have been paid in 2012. This section also requires the proposed tax notice to include a separate statement providing a list of sales and use taxes certified by the county and cities. At the fall public tax hearing, the county or the city must discuss the savings as a result of the sales tax exemption for cities and counties provided in Article 8 of Chapter 143. Effective for notices for taxes payable in 2014 only. Effective May 24, 2013, for taxes levied in 2013 and payable in 2014. • Levy limits for taxes levied in 2013. Section 48 is an uncodified session law that establishes a levy limit for taxes payable in 2014 only for all counties over 5,000 population and all cities over 2,500 population. The levy limit base is the certified levy minus allowable special levies (generally for debt service, natural disasters and abatements) plus the certified LGA for taxes payable in 2012 or 2013, whichever is greater, increased by 3 percent. The levy limit is the levy limit base minus the certified LGA for 2014. In no case may the levy limit be less than the certified levy for taxes payable in 2012 or 2013, whichever is greater. In addition to the allowable levy limit, cities can additionally levy for allowable special levies (generally for debt service, natural disasters and abatements and levies approved by voters that are applied to referendum market value). For more information on the levy limit, please see Appendix A. (Note: The allowable special levies were amended in the corrections bill, Chapter 144, section 18.) Effective for taxes levied in 2013, payable in 2014, only. • City of Moose Lake state facility grant. Section 49 is an uncodified session law that appropriates $2 million in FY 2014 for a grant to the City of Moose Lake for reimbursement for payments related to connection of state facilities to a sewer line. Effective July 1, 2013. Article 5: Special taxes This article makes changes in various special taxes including. Article 5 modifies and increases to tobacco taxes; repeals the health impact fee and fund and replaces it with

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an increase in the regular tobacco excise tax; makes changes to the taxes imposed on jet fuels as well as aircraft in lieu taxes; and directs that some of the revenues raised under the jet fuel provisions are deposited into the state airports fund. • Revenues from aircraft sales deposited in state airports fund. Section 5 amends Minn. Stat. § 297A.82 to require that any tax collected from the sale or purchase of an aircraft taxable under chapter 297A is to be deposited in the state airports fund established in Minn. Stat. § 360.017. These funds, estimated to be $2.9 million per year, were previously deposited in the state general fund. Effective on July 1, 2014 and applied to sales and purchases made on or after that date. • Lawful gambling-raffle drawings without registering. Section 21 amends Minn. Stat. § 349.166, subd. 1 to expand the ability for organizations to conduct raffle drawings without registering with the Minnesota Gambling Control Board. Under current law, an organization does not need to register if the organization does not annually award more than $1,500 in prizes. Under this section, the registration exclusion is expanded to allow a 501(c)(3) organization to conduct a raffle without registering if the organization does not award more than $5,000 at an event in the calendar year. Effective July 1, 2013. Article 6: Individual income and corporate franchise taxes • Greater Minnesota internship program. Sections 4 adds a new section, Minn. Stat. § 136A.129, and Section 12 amends Minn. Stat. § 290.06, to establish an internship program for students at Minnesota public, post-secondary institutions, or a baccalaureate degree granting nonprofit Minnesota institution, to be administered by the Office of Higher Education. The goal of the program is to connect students with non-metro area Minnesota employers for permanent employment in Greater Minnesota. The internship must be at a place of employment in Greater Minnesota (outside of the counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright). Employers are eligible for an income tax credit. Effective for taxable years beginning after Dec. 31, 2013. • Historic structure rehabilitation credit. Sections 17 through 20 and Section 32 extend the historic structure rehabilitation credit sunset and makes various changes to the program: • Section 16 amends Minn. Stat § 290.0681, subd.1, defining “federal credit” as the federal historic structure rehabilitation credit, and the terms “placed in service” and “qualified rehabilitation expenditures,” to have the meanings given in the Internal Revenue Code for the federal credit. Effective the day following final enactment. • Section 17 amends Minn. Stat. § 290.0681, subd. 3 to authorize the State Historic Preservation Office

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(SHPO) of the Minnesota Historical Society to collect up to 0.5 percent of estimated qualified rehabilitation expenditures, up to a maximum of $40,000, as an application fee for a project. Prior to this change, the law limited the application fee, which is used to offset the costs of administering the credit and preparing reports, to $5,000. This section also requires the SHPO to notify the developer in writing if a project is eligible for a credit. This section allows determinations of the SHPO regarding project eligibility for the historic credit to be appealed through a contested case procedure under Minn. Stat. ch. 14, within 45 days of the written notification. Effective the day following final enactment, except the fee increase applies to applications first received on or after the day following final enactment. • Section 18 amends Minn. Stat. § 290.0681, subd. 4 to allow grant agreements to provide for grants to be issued to an individual or entity other than the developer. This section also requires entities that are assigned a credit certificate to notify the commissioner within 30 days of being assigned a credit, in a form and manner prescribed by the commissioner, and clarifies that the pass-through of credits to owners of a pass-through entity are not considered credit assignments. Effective May 24, 2013. • Section 19 amends Minn. Stat. § 290.0681, subd. 5 to allow entities with multiple owners to allocate the credit among owners based on an “executed agreement.” Current law allows allocation of the credit either based on the ownership of the entity’s assets, or as specified in the entity’s organizational documents. Effective May 24, 2013. • Section 20 amends Minn. Stat. § 290.0681, subd. 10 to extend the availability of the historic structure rehabilitation credit from June 30, 2015 to June 30, 2021. Effective May 24, 2013. • Section 32 amends Laws 2010, chapter 216, section 11 (the effective date), to make the credit effective for rehabilitation expenditures first paid by the developer or taxpayer after May 1, 2010, and for rehabilitation that occurs after May 1, 2010, provided that the application submitted for credit eligibility is submitted before the project is placed in service. Effective May 24, 2013, and applies retroactively for certified historic structures placed in service after May 1, 2010, but no credit certificates allowed under the change to this effective date clarification may be issued until July 1, 2013. Article 8: Sales and use tax; local sales taxes • Sales tax exemption for qualified Greater Minnesota business expansions. Section 1 adds a new section, Minn. Stat. § 116J.3738, and Section 28 adds a new subdivision, Minn. Stat. § 297A.68, Subd. 49, that together provide for a sales tax exemption for qualify-


ing Greater Minnesota businesses. A qualified business is defines as a business that: • Has operated in Greater Minnesota for at least one year before applying for certification; • Pays or agrees to pay its employees compensation of at least 120 percent of the federal poverty line for a family four not including benefits mandated by law; • Plans and agrees to expand its employment in Greater Minnesota by a minimum number of employees; and • Receives qualification from the commissioner of Department of Employment and Economic Development (DEED) as a qualified business. Public utilities and retail employers that are primarily engaged in selling to purchasers physically present at the business’s location are ineligible. The business must apply to the commissioner of DEED for certification as a qualified business. A copy of the application must also be filed with the chief clerical officer of the city, or the county auditor if located outside a city. DEED must determine that the business would not expand its operations in Greater Minnesota without the sales tax exemption and the business must enter into a business subsidy agreement with DEED that will satisfy minimum expansion requirements within three years of execution of the agreement. The city or county in which a business or agricultural processing facility proposes to expand may file support or opposition to the certification with DEED. Certification is valid for 12 years beginning the first day of the calendar month following execution of the business subsidy agreement. The minimum expansion requirements, based on the number of employees in Greater Minnesota at the time of execution of the agreement, are: • 50 or fewer FTEs: must increase by five or more FTEs. • 51-199 FTEs: must increase FTEs by at least 10 percent. • 200 or more FTEs: must increase by at least 21 FTEs. The certified businesses must meet the minimum expansion requirements within three years of entering the business subsidy agreement and continue to satisfy the requirements for the duration of the certification period. A business would cease to be a qualified business at the end of its certification period or the date the commissioner finds that the business failed to meet its minimum expansion requirements. The commissioner may waive a breach of the certification agreement after consulting with the commissioner of revenue if the breach is the result of natural disaster, unforeseen industry trends, an overall decline in the statewide or Greater Minnesota economy, or the loss of a major supplier or customer. Section 28 provides an upfront sales tax exemption for purchases of tangible personal property and taxable services purchased by a qualified business if the exemption is provided for in the business subsidy agreement under Section 1 above. The property or services must be primarily used or consumed in Greater Minnesota

2013 Law Summaries

and the purchase must have been made, and delivery received, during the certification period. Purchase and use of construction materials used or consumed in, and equipment incorporated into, the construction of improvements to real property in Greater Minnesota are exempt if the improvements are used in the conduct of the trade or business of the qualified business. The exemption applies for state and local sales and use taxes. The allocations to all qualifying businesses may not exceed $7 million in a fiscal year, but any qualifying claims not paid in one year are available in subsequent years. Unused amounts may be carried forward and used for refunds in future years. Section 1 is effective May 24, 2013, and Section 28 is effective for sales and purchases made after June 30, 2014. • Definition of retail sale. Section 3 amends Minn. Stat § 297A.61, subd. 4 to clarify that payments made to electric utilities and cooperatives as a contribution in aid of construction is a contract for improvement to real property and not a taxable sale. Effective for sales, purchases, and leases entered after June 30, 2013. • Sales tax collection responsibility for retailer not maintaining place of business in Minnesota. Section 18 amends Minn. Stat. § 297A.66, subd. 3 to clarify that a remote seller must collect and remit the state sales tax in accordance with any federal remote seller law. If the Main Street Fairness Act now before Congress is enacted into law, this change will allow Minnesota to impose the duty to collect the sales tax on remote sellers. Effective May 24, 2013. • Solicitor nexus. Section 19 adds a subdivision to Minn. Stat. § 297A.66, subd. 4a, that provides a definition of “solicitor,” which includes residents in the state who directly or indirectly refer potential customers to a seller through website or similar link for a commission or other consideration. The presumption is that a retailer without a physical presence in Minnesota has nexus if the total receipts of sales to Minnesota customers generated by Internet referrals made through websites operated by Minnesota residents exceed $10,000 in the last 12-month period. A rebuttal process to this presumption is provided. Effective for sales and purchases made after June 30, 2013. • Capital equipment up-front exemption. Section 26 amends Minn. Stat. § 297A.68, subd. 5 to eliminate the requirement that the sales tax on capital equipment purchases be paid at the time of purchase and refunded as provided in statute. Effective for sales and purchases made after Aug. 31, 2014. • Qualified data centers. Section 27 amends Minn. Stat. § 297A.68, subd. 42 to modify the sales tax exemption for data centers by adding “refurbished data centers” and modifying the qualifications as follows: • Reduces the investment requirement from $50 million in 24-month period to $30 million in a 48-month period.

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• Reduces the minimum square footage requirement of the building housing the data center from 30,000 to 25,000 square feet. • Reduces the amount of space that must be “substantially refurbished” for building the data center from 30,000 square feet to 25,000 square feet. • Defines “substantially refurbished” to retain the requirement of $50 million in investment within 24 months. • Specifies that “computer software” included in calculating investment includes the maintenance, licensing, and customization of the software. Effective for sales and purchases made after June 30, 2013. • City and county exemption from the state sales tax. Section 29 amends Minn. Stat. § 297A.70, subd. 2 to add cities and counties to the list of purchasers eligible for a sales tax exemption on qualifying purchases. Purchases by cities, counties, and townships were subjected to the state sales tax beginning in 1992. Townships were exempted under a change enacted in 2011. This provision does not exempt purchases of goods or services used as inputs to goods and services generally provided by a private business, such as those provided by liquor stores, utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, and laundromats. Goods and services generally provided by a private business do not include housing services, sewer and water services, wastewater treatment, ambulance and other public safety services, correctional services, core or homemaking services provided to elderly or disabled individuals, or road and street maintenance or lighting. Effective for sales and purchases made after Dec. 31, 2013. • Nursing homes and boarding care homes. Section 36 amends Minn. Stat. § 297A.70 to provide a sales tax exemption for most purchases by a nursing home or a boarding care facility. To qualify: • The nursing home must be licensed by the state, and the boarding care home must be certified as a nursing facility under federal law. • Be an exempt 501(c)(3) entity. • Either be certified to participate in the medical assistance program, or certify to the commissioner of revenue that it does not discharge residents due to inability to pay. The exemption does not apply to certain construction materials, lodging, prepared food and drink, and leased vehicles not used to transport residents and property to the facility. Effective for sales made after June 30, 2013. • Biopharmaceutical manufacturing facility sales tax exemption. Section 37 adds a subdivision to Minn. Stat. § 297A.71, subd. 45 to provide a sales tax exemption for materials, supplies, and capital equipment incorporated into construction, improvement, or expansion of

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a biopharmaceutical manufacturing facility if the facility meets the following conditions: • It manufactures biologics. • It makes a total capital investment of at least $50 million. • The facility creates and maintains 190 new FTE employees in the state. • The Department of Employment and Economic Development determines that the project meets these requirement in each year in which a refund is requested. The known qualifying project is related to a business location in the City of Brooklyn Park. The exemption also applies to materials used in privately owned infrastructure needed to support the facility. The tax is owed at the time of purchase, and the owner of the facility may apply for a refund. The refund is metered out so that 25 percent of the total allowable refund to date is paid annually. Effective retroactively to investments entered into and jobs created after Dec. 31, 2012, and before July 1, 2019. • Research and development facility sales tax exemption. Section 38 adds a subdivision to Minn. Stat. § 297A.71, subd 46 to exempt materials and supplies used or consumed in, and equipment incorporated into, the construction or improvement of a qualifying research and development facility. The facility must have laboratory space of at least 400,000 square feet, utilize high and low-intensity laboratories, and have a total construction cost of at least $140 million in a 24-month period. The known qualifying project is related to a business in Maplewood. Effective for sales and purchases made after June 30, 2013 and before Sept. 1, 2015. • Industrial measurement manufacturing and controls facility. Section 39 adds a subdivision to Minn. Stat. § 297A.71, subd 47 to provide a sales tax exemption for materials, supplies, capital equipment, and fixtures in construction, improvement, or expansion of an industrial measurement manufacturing and controls facility if the facility meets the following conditions: • Total capital investment of at least $60 million. • Employs 250 new FTE employees in the state. • The Department of Employment and Economic Development determines that the project has a significant impact on the state economy. The exemption also applies to materials used in privately owned infrastructure needed to support the facility. The tax is owed at the time of purchase and the owner of the facility may apply for a refund. The known qualifying project is related to a business in Shakopee. Effective for sales and purchases after June 30, 2013. • Tax collected and refunds for specific projects. Sections 40 and 41 amend Minn. Stat. § 297A.75, subd. 1 and Minn. Stat.§ 297A.75, subdivision 2 to provide that the purchasers of construction materials and equipment granted an exemption under sections 37 to 39 above may pay the tax and apply for a refund of sales taxes paid.


Section 40 is effective for sales and purchases made after June 30, 2013. Section 41 is effective May 24, 2013. • Application for refund for specific projects. Section 42 amends Minn. Stat. § 297A.75, subd. 3 to provide that subcontractors and contractors must provide information to the facility owner on taxes paid on construction materials exempt under Sections 37 to 39 above to allow the owners to apply for a refund. The owner of the biopharmaceutical manufacturing facility under section 37 may not apply for a refund until after June 30, 2016, and may only file one refund application per year. Also updates a cross reference related to the repeal of the capital equipment sales tax collection requirement. Effective May 24, 2013. • Local sales tax referenda; authorized expenditures. Section 43 amends Minn. Stat. § 297A.99, subd. 1 to authorize political subdivisions to expend funds to disseminate information included in a city council resolution adopting the imposition of a local sales tax; provide notice of and conduct forums for expression of public opinion on the referendum; and provide facts and data on the impact of a proposed sales tax and on the programs and projects that are proposed to be funded with the local sales tax. Effective May 24, 2013. • St. Paul use of sales tax revenues. Section 44 amends Laws 1993, ch. 375, art. 9, sec. 46, subd. 2, (as amended most recently by Laws 2009, ch. 88, art. 4, sec. 15) to allow the City of St. Paul to deposit into an economic development fund any portion of the 40 percent of its sales tax revenue dedicated to the St. Paul Civic Center Complex not needed for meeting civic center obligations. Effective the day after compliance by the governing body of the City of St. Paul with Minn. Stat.§ 645.021, subds 2 and 3. • St. Paul extension of expiration of tax authority. Section 45 amends Laws 1993, ch. 375, art. 9, sec. 46, subd. 5, as amended by Laws 1998, ch. 389, art. 8, sec. 32 to extend the authority for the St. Paul local sales tax to Dec. 31, 2042. The tax is currently set to expire on Dec. 31, 2030. Effective the day after compliance by the governing body of the City of St. Paul with Minn. Stat.§ 645.021, subds 2 and 3. • Rochester lodging tax. Section 46 Laws 2002, ch. 377, art. 3, sec. 25, as amended by Laws 2009, ch. 88, art. 4, sec. 19, and Laws 2010, ch. 389, art. 5, sec. 3 modifies the Rochester lodging tax as follows: • Increases the allowed rate of the lodging tax imposed to fund construction, renovation, improvement, and expansion of the Mayo Civic Center Complex from 1 percent to 3 percent. • Adds design costs to the allowed uses for the lodging tax proceeds. • Increases the authority to issue bonds for this project from $43.5 million to $50 million.

2013 Law Summaries

• Removes the requirement that the tax in subdivision 1a expires when the proceeds are sufficient to pay the bonds in subdivision 2a; however, it allows the city to choose to repeal the tax any time after that time. Effective the day after the governing body of the City of Rochester and its chief fiscal officer comply with Minn. Stat.§ 645.021, subdivisions 2 and 3. • Central Minnesota cities; use of sales tax revenues and termination of tax. Section 47 amends Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 2 to modify one of the existing allowed uses of the sales tax in the City of St. Cloud to limit funding to regional community and aquatic centers. Section 48 amends Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 4 to allow each city (St. Joseph, Sartell, Waite Park, Sauk Rapids, and St. Augusta) to extend the tax in its community from 2018 to 2038, provided the extension is approved by the voters no later than Nov. 7, 2017, at either a general election or a special election held on the first Tuesday after the First Monday of a November. The vote must still list the projects to be funded from the tax extension but the tax does not have to expire for one year before being re-imposed. Both sections are effective for the city that approves them the day after compliance by the governing body of each city with Minn. Stat.§ 645.021, subdivisions 2 and 3. • Clearwater; use of sales tax revenues. Section 49 amends Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by Laws 2011, First Special Session chapter 7, article 4, section 8 to provide a specific list of park and trail improvements that the City of Clearwater may fund with its local sales tax. The $12 million total amount of revenue that the city was permitted to raise from the sales tax remains the same as it was in the original 2008 authorizing legislation. Effective the day after compliance by the governing body of the City of Clearwater with Minn. Stat.§ 645.021, subdivisions 2 and 3. • Marshall; use of food and beverage tax and validation of prior act. Section 50 amends Laws 2010, chapter 389, article 5, section 6, subdivision 6 to allow the City of Marshall to use proceeds of this tax for construction of the Minnesota Emergency Response and Training Center and the Southwest Amateur Sports Center, as well as for their ongoing maintenance costs. Section 51 gives the City of Marshall until July 1, 2013, to file its approval of the special laws authorizing the food and beverage and lodging taxes originally enacted in 2010. Both sections are effective May 24, 2013. • City of Proctor; validation of prior act. Section 52 allows the City of Proctor to approve the extended uses and additional bond authority authorized under 2008 and 2010 special law by passing a resolution and filing the approval with the secretary of state by Jan. 1, 2014. The additional bonding authority in the 2010 law was already approved by the city voters. Effective May 24, 2013.

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Article 9: Economic development • Bloomington Port Authority public bidding requirement. Section 1 amends Minn. Stat. § 469.071, subd. 5 to modify the Bloomington Port Authority’s special law exception to the general competitive bidding requirements. Under present law, this exception is limited to structured parking constructed above, below, or adjacent to the development. The section expands the exemption to apply regardless of the source of port authority funds used (present law is limited to TIF and revenue bonds) and to extend it to other public improvements in addition to structured parking. Effective upon compliance of the governing body of the City of Bloomington with the requirements of Minn. Stat.§ 645.021, subdivisions 2 and 3. • Border city funding. Section 2 amends Minn. Stat. § 469.169 to allocate $1.5 million for border city enterprise zone and border city development zone tax reductions. This allocation is divided equally between the two programs, but the city can reallocate the amounts between the two programs. The allocation is divided among the qualifying border cities on a per capita basis. The five cities that qualify are Moorhead, Dilworth, East Grand Forks, Breckenridge, and Ortonville. Effective July 1, 2013. • TIF economic development districts. Section 3 amends Minn. Stat. § 469.176, subd. 4c to eliminate obsolete language related to qualified border retail facilities as well as the temporary 2010 jobs bill exemptions. (Note: Although the Senate tax bill extended the 2010 jobs flexibilities for two additional years, the final bill did not include the extension.) Effective for districts for which the request for certification was made after June 30, 2012. • TIF general government use. Section 4 amends Minn. Stat. § 469.176, subdivision 4g to eliminate the prohibition on using tax increments for improvements and equipment that either primarily serve a decorative or aesthetic purpose or have costs twice as high because of the selection of the types of materials or designs compared with more commonly used improvements or equipment. Effective May 24, 2013, for all tax increment financing districts, regardless of when the request for certification was made, but applies only to amounts spent after final enactment. • TIF four-year rule. Section 5 amends Minn. Stat. § 469.176, subd. 6 to extend through Dec. 31, 2016, the temporary two-year extension of the four-year rule that applies to TIF districts certified between Jan. 1, 2005, and April 20, 2009. Effective May 24, 2013, and applies to districts certified on or after Jan. 1, 2005, and before April 20, 2009. • TIF original local tax rate; general education levy. Section 6 amends Minn. Stat. § 469.177, subd. 1a to exclude the tax rate attributable to the reinstated general education levy from the certified original TIF tax

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rate. This change will prevent the general education tax, authorized under Session Laws 2013, Chapter 116, from applying to the captured tax capacity and from generating tax increment. Effective for districts for which the request for certification is made after April 15, 2013. • TIF Adjustment to original net tax capacity. Sections 7 adds a subdivision to Minn. Stat. § 469.177, subd. 1d, to authorize development authorities to elect to reduce the original net tax capacity of a qualifying TIF district to adjust for the effects the homestead market value exclusion (HMVE). The HMVE had the effect of reducing the amount of increment in districts with qualifying homestead property. Under this new law, the development authority can elect to reduce a qualifying district’s original tax capacity which will have the effect of increasing captured tax capacity and the amount of tax increment for the district. The election must be approved by the municipality, which is typically the city in which the TIF district is located. The election is limited to districts that have a large loss in captured tax capacity as a result of enactment of the HMVE. To qualify for the election, a district must satisfy three criteria: (1) The district received a homestead market value credit of $10,000 or more for taxes payable in 2011 (the last year before the credit was replaced by the HMVE). (2) The captured net tax capacity of the district must have dropped by at least 1.75 percent as a result of the HMVE for taxes payable in 2013 (the most recently available year). (3) Either the district’s five-year rule must still be open (i.e., the increments are still permitted to be spent) or the district must not have enough increment to pay its outstanding bonds. For a qualifying district, the subtraction will equal the reduction in net tax capacity of the TIF district that results from the HMVE for taxes payable in 2013. The subtraction cannot reduce original net tax capacity below zero. An election must be made before July 1, 2014. For an election to apply for taxes payable in 2014, it must be made by July 1, 2013. Effective May 24, 2013, and applies to all tax increment financing districts regardless of when the request for certification was made. • Adjustment to original TIF net tax capacity; qualifying 4d class (low-income rental housing) districts. Section 8 adds a subdivision to Minn. Stat. § 469.177, Subd. 1e, to provide for a reduction in original net tax capacity for qualifying TIF districts of up to $20,000. Reductions in original tax capacity under this provision have the effect of increasing captured tax capacity and the amount of tax increment for the district. To qualify for the reduction, the district must have been certified in calendar year 2011 and have 75 percent of its value in class 4d apartment property apartment


property and have a per unit market value of at least $115,000. The adjustment expires for property taxes payable in 2021. Effective beginning for taxes payable in 2014. • Distributions of general education levy taxes. Section 9 amends Minn. Stat. § 469.177, subdivision 9 to provide that the taxes paid by captured tax capacity of TIF districts that are attributable to the new general education levy authorized under Laws 2013, Chapter 143, Article 3, will be paid to the school district that imposed the levy. Effective for districts for which the request for certification is made after April 15, 2013. • Mall of America (MOA) fiscal disparities calculations. Section 10 adds a new subdivision to Minn. Stat. § 473F.08, Subd 3c, to provide that commercial-industrial tax capacity in the MOA TIF districts is exempt from contributing to the area-wide pool and that tax increments in the MOA TIF districts include the tax that would normally be paid to the area-wide pool. Effective for taxes payable in 2014, after Bloomington certifies to the Hennepin County auditor that the city has entered a binding, written agreement to rehabilitate or replace the Old Cedar Avenue bridge, and approves the provisions of section 23 requiring the city to transfer increments from these districts to pay for the Old Cedar Avenue bridge. • Bloomington Central Station (BCS) TIF. Section 11 amends Laws 2008, chapter 366, article 5, section 26 to make three changes in Bloomington’s BCS TIF district: (a) E xtends the five-year rule (previously extended to ten years under 2008 special legislation) to 15 years. (b) Allows the city to extend the duration of the district through 2039 (an eight-year extension). (c) U nfreezes the original tax capacity rate, allowing the district’s increment to be calculated using the current tax rate, not the rate that was in effect when the district was certified. Bullet points (a) and (c) are effective upon compliance by Bloomington with the requirements of Minn. Stat. § 645.021, subdivision 3. Bullet point (b) is effective upon compliance by the governing bodies of the City of Bloomington, Hennepin County, and Independent School District No. 271 with the requirements of Minn. Stat. §§ 469.1782, subd. 2, and 645.021, subd. 3. • Oakdale TIF. Section 12 amends Laws 2008, chapter 366, article 5, section 34 to modify the special TIF law for the City of Oakdale, passed in 2008 and modified in 2009, granting the city authority to deviate from general law with regard to TIF districts created in a defined area of the city. This provision makes two changes in the special law authority: • The period of time that the city has to establish TIF districts under the special law is extended by four years from 2013 to 2017. • An exemption is provided to the general “blight test” rules. The blight test (essentially a requirement that an area contain “blighting” conditions that legally justify

2013 Law Summaries

creating a redevelopment TIF district) requires that 70 percent of the parcels in an area be occupied by buildings or other qualifying structures and that 50 percent of the buildings be substandard. A parcel can be treated as being occupied by a substandard building if the parcel was occupied by a substandard building that was demolished within three years of certification of the district and if a four-part test is satisfied. The bill provides special rules for meeting this four-part test: ·· The three-year time limit between demolition of the building and the certification of the district does not apply. ·· The requirement that private demolition (if done by the property owner rather than the development authority) be done under a development agreement does not apply. The adjustment to original net tax capacity (increasing it for any reduction in tax capacity resulting from demolition of the building) does not apply. This is consistent with the original special law, which allowed the city to set the original tax capacity at the land value. Effective upon compliance by the governing body of the City of Oakdale with the requirements of Minn. Stat. § 645.021, subd. 3, except that the provisions of paragraph (c) are effective only upon compliance with Minn. Stat. § 469.1782, subd. 2, by the county and school district. • Oakdale TIF; extension and expanded spending authority. Section 13 amends Laws 2010, chapter 216, sec. 55 to extend the duration of the Bergen Plaza TIF district in Oakdale by 16 years. In 2010, the Legislature granted this district a 10-year extension, so the combined extensions would equal 26 years. This section also repeals the restrictions the 2010 special legislation placed on the extension. The 2010 legislation prohibited pooling of increments from the district during the extension, except to the extent that they were used for improvements on two listed parcels. (Pooling refers to the spending of increments from the district on activities outside of the geographic area of the district. This district is a pre-1990 district that would otherwise not have been subject to pooling restrictions.) Under the changes made by this section, this restriction would not apply, allowing the city to use the district’s increments on activities anywhere in the project area. Effective upon compliance by the governing body of the City of Oakdale with the requirements of Minn. Stat. § 645.021, subd. 3, except that the provisions of paragraph (c) are effective only upon compliance with Minn. Stat. § 469.1782, subd. 2, by the county and school district. • St. Cloud TIF. Section 14 is an uncodified session law that deems TIF District No. 2, referred to as the Norwest District, in the City of St. Cloud, a “gap district”—a district for which the request for certification was made on or after Aug. 1, 1979, and before July 1, 1982. This will clarify when the district was certified and what TIF rules apply to it. “Gap districts” were created before the

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1982 Legislature allowed pooling of increments for new TIF districts. Effective upon approval by the governing body of the City of St. Cloud and compliance with Minn. Stat. § 645.021, subd. 3. • Glencoe TIF extension. Section 15 is an uncodified session law that authorizes the City of Glencoe to extend the duration of its TIF district No. 4 through Dec. 31, 2023. This district is a redevelopment district that is required by general law to be decertified in 2013. The additional increment collected during the extension would be limited to paying debt service on bonds that were outstanding on Jan. 1, 2013, for public improvements serving: • The city’s TIF district No. 14 (a redevelopment district certified in 2004); • The city’s TIF district No. 15 (an economic development district certified in 2007); and • Benefited properties related to a series of special assessment bonds issued in 2007 (or refunding bonds). Effective upon compliance by the governing bodies of the cities of Glencoe, McLeod County, and Independent School District No. 2859 with the requirements of Minn. Stat. §§ 469.1782, subd. 2, and 645.021, subd. 3. • Ely TIF extension. Section 16 is an uncodified session law that allows the City of Ely to extend the duration of its TIF district No. 1 from 2017 to 2021. The city is also permitted to transfer increments from TIF District No. 3 to pay binding obligations of the TIF District No. 1, which has a deficit. This transfer is limited to $168,000 or the amount of the shortfall in District No. 1, whichever is less. Effective upon approval by the governing bodies of the cities of Ely, St. Louis County, and Independent School District No. 696 with the requirements of Minn. Stat. §§ 469.1782, subd. 2, and 645.021, subd. 3. • Dakota County Community Development Agency (CDA) TIF district in West St. Paul. Section 17 is an uncodified session law that allows the Dakota County Community Development Agency (CDA) to establish a redevelopment TIF district in the City of West St. Paul, consisting of the parcels of a redevelopment district decertified in 2012. The district is treated as a redevelopment district, but it must be decertified in 2023. Under general law, a redevelopment district is allowed 26 years of increment, as contrasted with the five years allowed to this district. This district would be exempt from the blight test (i.e., the rules that restrict areas that qualify as redevelopment districts) and is provided exemptions for the following limits on the spending of redevelopment district increments: • The requirement that increments be used for blight correction does not apply. • The pooling rules (percentage limits on how much increment may be spent on activities outside of the TIF district) do not apply.

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The district’s captured tax capacity is included for computing state aid formulas (e.g., local government aid, county program aid, education aid, and so forth). Effective upon compliance by the governing body of the Dakota County Community Development Agency with the requirements of Minn. Stat. § 645.021, subd. 3. • City of Apple Valley TIF authority. Section 18 is an uncodified session law that grants special law authority to the City of Apple Valley to create TIF districts (until Dec. 31, 2022) under special rules in a defined area of the city. The city must find that 70 percent of the defined area has one or more of the following conditions: • Peat or other geotechnical difficulties with the soil that “impair” the ability to develop the parcel. • Substantial fill required for commercial development. • Landfills, dumps, or similar conditions. • Quarries (e.g., gravel pits) or similar resource extraction sites. • Floodway. • Substandard building(s), as defined under the TIF blight test under general law, on the parcel. A parcel is treated as wholly meeting a requirement if 70 percent of its area meets the requirement, except that a 30-percent test applies for the substandard building requirement. The following exceptions to general TIF rules would apply to new districts created in the defined area. Any type of TIF district, except an economic development district or housing district, could be created in the area and qualify for these special rules. • A new type of TIF district—a soils deficiency district—with special qualifying rules would be allowed. This authority roughly mirrors a similar type of district that existed under an old TIF law, which was repealed by the Legislature in the 1990s. To qualify, 60 percent of the area would need to have soils or terrain difficulties with estimated correction costs such as grading or filling that exceed the fair market value of the property, not counting the cost of roads and other public improvements for which landowners could be specially assessed. These soils deficiency districts could collect 21 years of increments and would be limited to spending increments on land acquisition, soils correction, public improvements, and administrative expenses. • The five-year rule is extended to 10 years. Under general law, the five-year rule limits the period of time that in-district expenditures (under the percentagepooling rules) may be spent. • The pooling percentage is increased from 20 percent to 80 percent, but to qualify for the higher percentage, the increment must be spent in the area defined by the bill (i.e., the project area could not extend beyond these boundaries).


Effective upon approval by the governing body of the City of Apple Valley and timely compliance with Minn. Stat. § 645.021, subd. 3. • City of Apple Valley; TIF Authority. Section 19 is an uncodified session law that authorizes the City of Apple Valley to use TIF to provide improvements, loans, and subsidies to buildings and facilities, if: • The projects will create or retain jobs, including construction jobs, in Minnesota. • Construction of the project will not begin prior to July 1, 2014 without the use of tax increment financing. • Request for certification of the district is made no later than June 30, 2014. • Construction of the project begins no later than July 1, 2014. Effective upon approval by the governing body of the City of Apple Valley and timely compliance with Minn. Stat. § 645.021, subd. 3. • Minneapolis value capture district for transit. Section 20 is an uncodified session law that authorizes the City of Minneapolis to create a value capture district to finance construction of a streetcar line and related improvements. The city could include parcels in the district that are located in five defined areas of the city along the proposed line. Revenues from the district would be calculated using the same method that applies under the TIF law, except current tax rates would be used, rather than a certified original tax rate. Revenues from the district may be spent for items within an area located within one block on either side of the streetcar line. Permitted uses of district revenues are limited to: • Planning and design for the streetcar line. • Acquiring, constructing, and equipping the line. • Acquiring, constructing, and equipping transit stations. • Related public infrastructure improvements (sidewalks, street improvements, etc.). District revenues may not be used to pay for operation of the streetcar line. The city is authorized to issue bonds without an election under the authority. The duration of the district is limited to 25 years or the time needed to pay for the capital improvements, including bonds, if that is shorter. Effective May 24, 2013. • Maplewood TIF. Section 21 is an uncodified session law that authorizes the City of Maplewood to establish TIF districts within an area of the city, consisting of all or part of the corporate campus of the 3M Company. If the city so elects, these TIF districts will be subject to special law rules that differ from those under general TIF law. The city could approve TIF plans and establish districts under this authority through Dec. 31, 2018. The following special rules or exemptions from general law would apply to districts certified in the defined project area:

2013 Law Summaries

• Blight test exemption. Redevelopment districts could be established without meeting the blight test. Ninety percent of increments from the district, unlike a general law redevelopment district, would not be required to be spent on correction of blight. • Pooling exemption. So long as increments are spent within the defined project area, restrictions on pooling increments do not apply. • Five-year rule exemption. The five-year rule, which requires spending to be completed within five years of certification of the district, is extended to ten years. • One-year knockdown rule. Parcels in a district would be subject to a one-year knockdown rule—if construction does not start on a parcel within one year after its certification for inclusion in the TIF district, the parcel would be dropped from the district and could only be reinstated when construction actually begins. Under general law, a four-year period applies. Effective upon approval by the governing body of the City of Maplewood and upon compliance with Minn. Stat. § 645.021, subd. 3. • Mall of America (MOA) TIF district; property transfer and extension. Section 22 is an uncodified session law that allows the port authority and City of Bloomington to elect to transfer several parcels between the MOA TIF districts. This will allow these undeveloped parcels on the northern edge of the district containing the mall to be shifted to the district containing the site of the former Met Center. This would have the effect of extending by three years the ability to collect increments from these parcels. In addition, this section allows Bloomington to extend the two MOA TIF districts through 2034 (an 18-year extension for the district containing the mall and 15-year extension for the district containing the Met Center site). During the extension, however, increment would be limited to the special fiscal disparities computation provided by section 10 and local tax rates for the city, county, school, and special districts would be computed including the captured tax capacity of the TIF districts. The extensions would terminate for taxes payable in 2024 if new improvements, worth at least $100 million, have not been constructed in the Met Center District by Jan. 1, 2021. Effective upon compliance of the governing body of the City of Bloomington with the requirements of Minn. Stat. § 645.021, subd. 3, but only if the city enters into a binding written agreement with the Metropolitan Council to repair and restore, or to replace, the old Cedar Avenue bridge for use by bicycle commuters and recreational users.This section is effective without approval of the county and school district under Minn. Stat. § 469.1782, subd. 2. • City of Bloomington; Old Cedar Avenue bridge. Section 23 is an uncodified session law that requires the

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City of Bloomington to transfer increment from its two MOA TIF districts equal to the amount of increment for taxes payable in 2014 as a result of section 10 to be used to renovate or replace the Old Cedar Avenue bridge. The section also prohibits putting signage on or around the bridge acknowledging contributions, sponsorships, or sale of naming rights to the bridge. Effective upon compliance by the City of Bloomington with the requirements of Minn. Stat. § 645.021, subd. 3. Article 10: Destination medical center This article provides local bonding, taxing, and other development financing powers to the City of Rochester to fund public infrastructure for the Mayo Destination Medical Center project. The city must create a nonprofit corporation to develop the plan and help finance development. The article provides state aid—based on the level of new nonpublic capital investment in Mayo Clinic and other private building projects in the city—to assist in building public infrastructure for the development. The maximum amount of general state aid is $327 million, with no more than $30 million per year (the city and county are expected to pay for $128 million to qualify for this aid). In addition, $116 million in funding for public transit is provided with a portion of this to be funded with local taxes. A sales tax exemption for construction materials and supplies is provided for public projects. • Rochester sales and use taxes authorized. Section 11 amends Laws 1998, chapter 389, article 8, section 43, subd. 1 to authorize the City of Rochester to impose an additional general sales tax of up to one-quarter of 1 percent without voter approval. This tax would be in addition to the current one-half percent tax in Rochester. • Rochester sales tax; use of revenues. Section 12 amends Laws 1998, chapter 389, article 8, section 43, subdivision 3, (as amended by Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First Special Session chapter 7, article 4, section 5) to require that any additional revenue resulting from either (1) an extension of the duration of the existing local sales tax or (2) an increase in the local sales tax rate under section 11 above, be used to fund the city share of public infrastructure costs related to the DMC development plan. This section repeals the requirement for the city to share $5 million of its existing sales tax revenues with surrounding cities. This authority is reinstated subject to city council approval in section 14 below. • Rochester termination of taxes. Section 13 amends Laws 1998, chapter 389, article 8, section 43, subdivision 5, (as amended by Laws 2005, First Special Session chapter 3, article 5, section 30, and Laws 2011, First Special Session chapter 7, article 4, section 7) to authorize the city to extend the duration of the existing one-half of 1 percent local sales tax as late as Dec. 31, 2049, without voter approval. This section also provides that if the sales

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tax rate is increased under section 11, the additional tax expires at the earlier of Dec. 31, 2049, or when the city determines that the total revenues raised by the city for the DMC project under this and other optional taxes is sufficient to meet the city’s obligation. • Rochester sales tax sharing. Section 14 is a session law that effectively reinstates the Rochester sales tax sharing authority stricken in section 12. This section allows the City of Rochester to share $5 million of its local sales tax revenue collection with the surrounding cities of Byron, Chatfield, Dodge Center, Dover, Elgin, Eyota, Hayfield, Kasson, Mantorville, Oronoco, Pine Island, Plainview, Spring Valley, St. Charles, Stewartville, West Concord, and Zumbrota. The section requires the city council to hold a hearing and approve the revenue sharing by resolution by Sept. 1, 2013, in order to share the money. If the city does not pass the resolution, the $5 million is directed to paying the city share of costs related to the DMC development plan. Article 10 is generally effective the day after the governing body of the City of Rochester timely complies with Minn. Stat.§ 645.021, subds 2 and 3. Article 11: Minerals taxes The article increases the taconite production tax by five cents per ton and makes the following changes in the distribution of the taconite production tax revenues: • Provides for increased payments to all school districts in the taconite tax relief area. • Increases the match requirement for companies receiving distributions from the taconite economic development fund from 50 percent to an equal match. • Reduces the distribution to the property tax relief fund by nine cents per ton. (This fund pays the taconite homestead credit.) • Modifies the one-time distributions made in 2013 Laws Ch. 85 (the omnibus jobs bill) by decreasing a distribution to the City of Tower and providing an additional distribution to the City of Grand Rapids. • Authorizes the Iron Range Resources and Rehabilitation commissioner to issue bonds to finance school capital projects for schools in the two taconite areas. Article 12: Public finance • Authority to invest in state and local securities. Section 1 amends Minn. Stat. § 118A.04, subd. 3 to modify the law regulating the authority to invest local government funds in municipal securities to include: • Revenue obligations of local governments without taxing authority, if the obligations are rated AA or better. Under current law, the issuing governmental unit must have taxing power. • Any short-term school district obligation (13 months or less) if it is either: (1) rated in the highest


rating category; or (2) covered by the state credit enhancement program. Effective July 1, 2013. • Guaranteed investment contracts (GICs). Section 2 amends Minn. Stat. § 118A.05, subd. 5 to authorize local governments to invest in short-term GICs (18 months or less), if the issuer’s or guarantor’s short-term debt is rated in the highest rating category, even if the longterm debt of those companies is rated below the top two rating categories. Effective July 1, 2013. • Special assessments for energy improvements. Section 3 amends Minn. Stat. § 216C.436, subd. 7 to eliminate a reference under the energy improvement financing program (EIFP) enacted in 2010 that the properties must be “benefited,” and allows EIFP special assessments to be repaid in 20 equal annual installments. Effective May 24, 2013. • Dakota County Community Development Agency (DCCDA) authority to establish housing improvement areas. Section 7 adds a new subdivision to Minn. Stat. § 383D.4, subd. 10, to authorize the DCCDA to exercise housing improvement district powers. The agency would be allowed to do this by resolution, rather than ordinance, as is required for cities exercising those powers. The community development agency is required to send a copy of each petition for the establishment of a housing improvement area to the city in which the proposed housing improvement area is located and the DCCDA may not establish a housing improvement area if the applicable city council opposes the establishment by resolution adopted within 30 days after the petition is sent. Housing improvement districts assist townhome and condominium developments to finance rehabilitation costs. Effective July 1, 2013. • Home rule charter city and statutory city capital notes. Sections 8 and 9 amend Minn. Stat. §§ 410.32 and 412.301 to expand the capital note authority for home rule charter cities and statutory cities to allow the purchase of application development services and training related to the use of the computer hardware and software. Both sections are effective July 1, 2013. • City capital improvement program (CIP) bonds. Section 15 amends Minn. Stat. § 475.521, subd. 1 to authorize use of CIP bonds for expenditures incurred before adoption of the CIP, if the expenditures are included in the plan. Effective July 1, 2013. • City CIP bonds; election requirement. Section 16 amends Minn. Stat. § 475.521, subd. 2 to make changes to the city CIP reverse referendum provisions. If the municipality elects not to submit the question to the voters, the municipality shall not propose the issuance of bonds under this section for the same purpose and in the same amount for a period of 365 days from the date of

2013 Law Summaries

receipt of the petition. If the issue is submitted and the voters do not approve, the issue can be resubmitted to the voters after 180 days. Effective July 1, 2013. • Street reconstruction bonds. Section 17 amends Minn. Stat. § 475.58, subd. 3b to allow street reconstruction bonds to be used for bituminous overlay projects, which currently are not considered reconstruction. The section makes changes in the reverse referendum provisions that parallel the similar provisions for city CIP bonds in section 16 above, and also provides that expenditures incurred before adoption of the capital improvement plan can be financed with the bonds, if the expenditures are included in the plan. Effective July 1, 2013. • St. Paul capital improvement plan (CIP) bonding. Section 18 amends Laws 1971, chapter 773, section 1, subdivision 2, (as amended most recently by Laws 2002, chapter 390, section 23) to extend through 2014 the St. Paul CIP bonding authority, which is set to expire at the end of 2013. These general obligation bonds may be issued upon a vote of five of the seven members of the city council without voter approval—this is an exception to the city’s home rule charter, which otherwise would require simple majority approval by the council and voter approval. Effective the day after compliance by the governing body of the City of St. Paul with Minn. Stat.§ 645.021, subdivisions 2 and 3. Article 13: Miscellaneous provisions • Purpose statements for tax expenditures. Section 22 is an uncodified session law that establishes purpose statements for various tax expenditures added by the omnibus tax bill, as required by Minn. Stat. § 3.192, requires bills that create new tax expenditures or renew existing tax expenditures to provide a purpose for the tax expenditure and a standard or goal for use in measuring its effectiveness. The purpose statements include: • Federal conformity: to simplify compliance and administration of the individual income tax. • Income tax subtraction for federal railroad track maintenance credit: to increase maintenance and upgrading of railroad track in Minnesota. • Historic structure rehabilitation credit: to create and retain jobs related to historic rehabilitation. • Greater Minnesota internship credit: to encourage Minnesota businesses to provide more internships in Greater Minnesota. • Sales tax exemption for Greater Minnesota businesses: to induce increased investment and expand employment in Greater Minnesota. • Expansion of sales tax exemption of durable medical products to Medicare and Medicaid purchases: to simplify sales tax administration and provide relief for sellers unable to collect tax under Medicare and Medicaid.

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• Sales tax exemption for public safety radio communications systems: to provide equal treatment to local governments on public safety radio purchases. • Sales tax exemption for established religious orders: to maintain an existing exemption that is jeopardized due to a St. John’s University governance change. • Sales tax exemption for certain dental providers: to defray the costs of these providers to encourage provision of service to underserved communities. • Sales tax exemption for nursing homes and boarding care homes: to maintain an existing exemption potentially eliminated due to a property tax court case. • Various sales tax exemptions for construction materials: to increase jobs and reduce tax pyramiding. • Sales tax exemption for aircraft parts and labor: to encourage growth of the aviation service sector in the state. • Sales tax exemption for public infrastructure related to destination medical center: to reduce city costs for projects. Effective May 24, 2013. Article 14: Market value definitions Article 14 converts the computation of levy, tax, spending, debt, and similar limits that are based on “market value” or “taxable market value” to estimated market value. This is done in response to the 2011 law that repealed the market value homestead credit and established the new homestead market value exclusion. Subsequent statutory interpretations by the Department of Revenue had the effect of reducing these limits by the amount of the new homestead market value exclusion. Converting these definitions to” estimated market value” will base these limits on the assessor’s estimate of the properties’ fair market value, including any board or court orders adjusting that value, but before any exclusions, adjustments, or other changes are made to the value for tax or legislative policy purposes. Below are summaries of several of the more substantial sections of the article that impact cities. • Eminent domain blight test. Section 14 amends Minn. Stat. § 117.025, subd. 7 to modify the definition of “structurally substandard” under the blight test in the eminent domain statute to refer to estimated market value, rather than taxable market value. Effective May 24, 2013. • Computation of adjusted net tax capacity (ANTC) for aid distribution purposes. Section 15 amends Minn. Stat. § 127A.48, subd. 1 to require the department of revenue to compute ANTC values for cities, counties, and townships. ANTC is used in various state aid formulas that are based on “equalized” tax base amounts, including LGA, which is equalized

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or adjusted for the variations in local assessment practices using assessment sales ratios. The existing statute, which is codified in the school aid statutes, only refers to the computation of ANTC for school districts but this statute is cross-referenced by city, county and township aid programs. This section also clarifies that the ANTC computations use values that reflect fiscal disparities, tax increment financing, and the power line credit. Article 14, Section 110 further directs the Revisor of Statutes to recodify this and adjacent statutes (Minn. Stat. § 127A.48, Subds. 1 to 6) as Minn. Stat. § 273.1325, subdivisions 1 to 6. Effective May 24, 2013. • Definition of estimated market value. Section 23 adds a new subdivision, Minn. Stat. § 272.03, Subd. 14. to define “estimated market value” for purposes of the property tax statutes as the assessor’s determination of market value, including any board orders, for the parcel of property. The definition of estimated market for a taxing district in section 25 governs the computation of tax levy limits, debt limits, and state aid computations. This section contains the general definition of a parcel’s estimated market value. Effective May 24, 2013. • Definition of taxable market value. Section 24 adds a new subdivision, Minnesota Statutes 2012, section 272.03, subd 15, that defines “taxable market value” for purposes of the property tax statutes as the estimated market value of the parcel reduced by market value exclusions, deferments of value (e.g., green acres, rural preserves, open space, metropolitan agricultural preserves) and other adjustments that reduce market value before class rates are applied. Effective May 24, 2013. • Market value definition; computation of levy limits, debt limits, and state aid. Section 25 amends Minn. Stat. § 273.032 to convert the statute that provides the general rules for computing tax levy limits, debt limits, and state aid computations based on market value from “taxable market value” to “estimated market value.” Under current law, taxable market value is computed after (1) limited market value (which has expired and is obsolete) and (2) the “This Old House” valuation exclusion, but includes tax-exempt wind energy values. In addition, it provides that market value does not reflect adjustments for TIF, fiscal disparities, and the power line credit. In the past, the department of revenue has applied the statute to exclude a variety of minor valuation exclusions not explicitly referenced in the statute. The amendments now specifically reference these minor exclusions, while providing that estimated market value is the value before these adjustments. By converting the limits to estimated market value, the definition will not reflect the reductions or shifts in value caused by the following: • The various deferrals, such as green acres, open space, and rural preserves. This change from current practice will increase limits in areas with these properties.


• Exclusions, including the homestead market value exclusion enacted by the 2011 Legislature, as well as the more minor exclusions in prior law. • Adjustments to tax capacity, such as fiscal disparities and TIF (current practice). Present law requires that tax-exempt wind energy property be added to taxable market value. The section reverses that, confirming apparent local administrative practices in the counties with the largest amounts of this property. The measure of estimated market value for tax limits is the amount for the previous assessment year, while for debt limits it is the most recently available amount. Limits under special law and city charters that are based on market value are also converted to estimated market value. Effective May 24, 2013. • Levy limits based on mill rates; growth factor. Section 32 amends Minn. Stat. § 275.011, subd 1 to provide that the law converting old special law and city charter provisions containing levy or mill rate limits will provide increases based on the rate of growth in estimated market value, rather than taxable market value. Effective May 24, 2013. • Continuance of nonconforming land uses. Section 61 amends Minn. Stat. § 394.36, subd. 1 to modify the exception to the authority to continue nonconforming land uses if more than 50 percent of the market value of the building or structure is destroyed by fire or natural disaster so that the test is based on estimated, rather than taxable, market value. Effective May 24, 2013. • Capital notes; home rule charter cities. Section 64 amends Minn. Stat. § 410.32 to convert the debt limit that applies to capital notes issued without an election by a home rule charter city from 0.03 percent of taxable market value to estimated market value. Effective May 24, 2013. • Certain contracts; statutory cities. Section 65 amends Minn. Stat. § 412.221, subd. 2 to convert the threshold that subjects conditional sale contracts and contracts for deed purchases by statutory cities to reverse referendum authority from 0.24177 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Certificates of indebtedness; statutory cities. Section 66 amends Minn. Stat. § 412.301 to convert the threshold that subjects statutory cities’ issuance of certificates of indebtedness to reverse referendum authority from 0.25 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Special service districts; property subject to charges. Section 67 amends Minn. Stat. § 428A.02, subd. 1 to modify the test to determine whether a splituse property in a special service district is subject in full or proportionately to the charges or levies from 50 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013.

2013 Law Summaries

• Campground levy. Section 70 amends Minn. Stat. § 450.19 to convert the authorized levy for operation and maintenance of a city or town tourist camping grounds from 0.0806 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • St. Cloud Transit Commission levy. Section 72 amends Minn. Stat. § 458A.10 to convert the limits on the St. Cloud Transit Commission property tax levy from 0.12089 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Duluth Transit Commission levy. Section 73 amends Minn. Stat. § 458A.31, subd. 1 to convert the limits on the Duluth Transit Commission property tax levy from 0.07253 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Cities; acceptance of conditional gifts. Section 74 amends Minn. Stat. § 465.04, the qualifying rule allowing cities of the second, third, and fourth class cities to accept gifts with conditions (such as life annuity gifts with interest not to exceed 5 percent). The $41 million cap is now measured by estimated, not taxable, market value. Effective May 24, 2013. • Housing and Redevelopment Authority (HRA) levy limit. Section 75 amends Minn. Stat. § 469.033, subd. 6 to convert the levy limit for housing and redevelopment authorities from 0.0185 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Housing and Redevelopment Authority (HRA) debt limit. Section 76 amends Minn. Stat. § 469.034, subd. 2 to convert limit on the issuance of general obligation HRA bonds from 0.5 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Port authority; mandatory city levy limit. Section 77 amends Minn. Stat. § 469.053, subd. 4 to convert the levy limit for the mandatory port authority levy (i.e., the levy the city must levy on behalf of the port authority) from 0.01813 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Seaway Port Authority levy limit. Section 78 amends Minn. Stat. § 469.053, subd. 4a to convert the maximum basic levy of the Seaway Port Authority from 0.01813 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Port authority; discretionary city levy limit. Section 79 amends Minn. Stat. § 469.053, subd. 6 to convert the limit for the discretionary port authority levy (i.e., the levy the city may levy on behalf of the port authority) from 0.00282 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013.

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• Economic Development Authority (EDA) levy limit. Section 80 amends Minn. Stat. § 469.107, subd. 1 to convert the EDA city levy from 0.01813 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • First-class city publicity levy limit. Section 82 amends Minn. Stat § 469.187 to convert the authorized first-class city publicity levy from 0.0008 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Hazardous property penalty. Section 83 amends Minn. Stat. § 469.206 to convert the limit on the penalty a city may assess on hazardous properties from 1 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Joint maintenance of cemeteries. Section 84 amends Minn. Stat. § 471.24 to modify the law allowing contiguous towns and statutory cities to jointly maintain public cemeteries, if each has a minimum market value of $2 million. The minimum market value requirement is now based on estimated market value. Effective May 24, 2013. • Taconite cities improvement fund. Section 85 amends Minn. Stat. § 471.571, subd 1 to modify the $2.5 million valuation threshold basis that permits a city with real and personal property consisting in part of iron ore or lands containing taconite or semi-taconite to establish a permanent improvement fund to being based on estimated, rather than taxable, market value. Effective May 24, 2013. • Taconite cities improvement fund levy limit. Section 86 amends Minn. Stat. § 471.571, subd. 2 to convert calculation of the levy limits for the permanent improvement fund for taconite cities from 0.08059 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013. • Metro area fiscal disparities; adjusted market value. Section 94 amends Minn. Stat. § 473F.02, subd. 12 to define “adjusted market value” for the purposes of the metropolitan area fiscal disparities law to be taxable market value, adjusted by the assessment sales ratio. This change confirms existing practice, which is contrary to the statute’s use of estimated market value. Effective May 24, 2013. • Metro area fiscal disparities; fiscal capacity. Section 95 amends Minn. Stat. § 473F.02, subd. 14 to clarify that fiscal capacity under the metropolitan area fiscal disparities law is based on adjusted market value. Effective May 24, 2013. • Metro area fiscal disparities; average fiscal capacity. Section 96 amends Minn. Stat. § 473F.02, subdivision 15 to clarify that average fiscal capacity under the metropolitan area fiscal disparities law is based on adjusted market value. Effective May 24, 2013. • Metro area fiscal disparities; net tax capacity. Section 97 amends Minn. Stat. § 473F.02, subdivision 23 to clarify that net tax capacity under the metropolitan area

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fiscal disparities law is based on taxable market value. Effective May 24, 2013. • Metro area fiscal disparities; adjustment of values. Section 98 amends Minn. Stat. § 473F.08, subdivision 10 to eliminate the mandate that limits on levies, aid, taxes, debt, or salary based on values be adjusted to reflect the effect of the fiscal disparities law. Most of these limits will be based on estimated market value, which does not reflect the effects of fiscal disparities. The section also clarifies computation of fiscal capacity that are used to compute distributions to be consistent with administrative practices. Effective May 24, 2013. • City CIP bonds. Section 99 amends Minn. Stat. § 475.521, subd. 4 to convert the limit that applies under the city capital improvement program (CIP) bond law from 0.16 percent of taxable to estimated market value. Effective May 24, 2013. • General net debt limit. Section 100 amends Minn. Stat. § 475.53, subd. 1 to convert the general net debt limit that applies to municipalities, other than school districts and first-class cities, from 3 percent of taxable to estimated market value. Effective May 24, 2013. • Net debt limit; first-class cities. Section 101 amends Minn. Stat. § 475.53, subd. 3 to convert the net debt limit that applies to first-class cities from 2 percent of taxable market value to the same percentage of estimated market value. If the city charter permits a debt limit in excess of 2 percent, this section converts the maximum limit of 3-2/3 percent of taxable to estimated market value. Effective May 24, 2013. • Referendum exemption for refunding bonds. Section 103 amends Minn. Stat. § 475.58, subd. 2 to convert the debt threshold that allows a city, county, town, or school to issue refunding bonds without holding an election from 1.62 percent of taxable to estimated market value. Effective May 24, 2013. • Bonds qualifying for State Board of Investment (SBI) purchase. Section 104 amends Minn. Stat.§ 475.73, subd. 1 to convert the maximum limit on Minnesota municipal bond purchases by SBI from 3.63 percent of the taxable market value of the issuer to the same percentage of estimated market value. Effective May 24, 2013. • Definition of estimated market value. Section 109 adds a subdivision to Minn. Stat. § 645.44. subd. 20, that adds a definition of “estimated market value” to the general definition section of the statutes. This definition cross references the amended definitions in Section 25 and applies for purposes of levy, tax, spending, and debt limits and calculation of aid payments. Effective May 24, 2013. Unless otherwise provided, the sections of this article are effective May 24, 2014, for purposes of limits on net debt, the issuance of bonds, certificates of indebtedness, and capital notes and is effective beginning for taxes payable in 2014 for all other purposes.


Article 16: Sales and use and special taxes • Sales and use tax accelerated remittance repeal. Section 2 amends Minn. Stat. § 289A.20, subd. 4 to eliminate the accelerated remittance schedules for vendors with annual sales tax collections of at least $120,000 for all months except for June collections. These early remittance requirements for larger vendors became inactive after the full statutory amounts for the budget reserve and cash flow accounts were restored in the February 2012 economic forecast. Effective May 24, 2013. Article 17: Property and minerals provisions • Prohibited activity: assessor’s duties. Section 3 amends Minn. Stat. § 270.41, subd. 5 to modify the list of nontax property appraisals that assessors may perform within their jurisdictions, so that county assessors are allowed to do appraisals related to land exchanges. Effective May 24, 2013. • Exempt property used by private entity. Section 5 amends Minn. Stat. § 272.01, subd. 2 to clarify that taxes on the use of federal real property are assessed as a personal property tax against the user and applies to real property leased, loaned or otherwise made available to a user. This change is consistent with the treatment of state and political subdivision-owned property. Effective May 24, 2013. • Definition of person for property taxes. Section 7 amends Minn. Stat. § 272.03, subd. 9 to clarify that for property tax purposes, the term “person” includes an individual, association, estate, trust, partnership, firm, company, or corporation. Effective May 24, 2013. • Tax status of leased, tax-exempt property owned by political subdivisions. Section 10 amends Minn. Stat. § 273.19, subd. 1 to clarify that tax-exempt property owned by a political subdivision and held under a lease for a term of at least one year, and not taxable under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be considered for all purposes of taxation as the property of the person holding it. This change makes the treatment of leased property owned by local units of government consistent with the treatment of leased property owned by the federal government, the state of Minnesota and school districts. Effective May 24, 2013. • Definition of rural area; electrical cooperatives per capita tax. Section 12 amends Minn. Stat.§ 273.39 to change the definition of rural area to refer to “statutory cities” and “home rule charter cities.” This technical change is necessary because the current statute refers only to “incorporated city,” a designation that no longer exists. Effective May 24, 2013. • Repealer. Section 18 repeals obsolete statutory provisions including Minn. Stat. § 273.11, subd 1a, the expired limited market value statute, and Minn. Stat. § 273.11,

2013 Law Summaries

subd 22, the expired market value exclusion for property treated for lead paint removal. Effective May 24, 2013. (GC)

TELECOMMUNICATIONS Broadband provisions included in omnibus jobs, economic development, housing, commerce, and energy law Chapter 85 (HF 729*/SF 1057) is the omnibus jobs, economic development, housing, commerce, and energy bill. The bill includes a provision establishing the Office of Broadband Development under the jurisdiction of the Department of Employment and Economic Development (DEED). The bill also creates a fiber collaboration database to coordinate state broadband infrastructure and requires the broadband development office to produce a statewide broadband strategy report. The provisions related to broadband in the omnibus bill are summarized below: • Appropriation. Article 1, Section 3, subd. 2(o) appropriates $250,000 each year in FY2014-15 from the general fund for the Broadband Development Office. Effective July 1, 2013. • Office of Broadband Development established. Article 3, Section 13 adds a new statute, Minn. Stat. § 116J.998, which creates an office of broadband development within DEED to encourage, foster, develop, and improve broadband within the state in order to meet statewide broadband goals established in Minn. Stat. § 237.012. The director of the office will be a gubernatorial appointee. Section 13 also spells out the duties of the office, Duties of interest to cities include: • Coordinate with state, regional, local, and private entities to develop, to the maximum extent practicable, a uniform statewide broadband access and usage policy; • Provide consultation services to local units of government or other project sponsors in connection with the planning, acquisition, improvement, construction, or development of any broadband deployment project; • Encourage public-private partnerships to increase deployment and adoption of broadband services and applications, including recommending funding options and possible incentives to encourage investment in broadband expansion; • Serve as an information clearinghouse for federal programs providing financial assistance to institutions located in rural areas seeking to obtain access to highspeed broadband service, and use this information as an outreach tool to make institutions located in rural areas that are unserved or underserved with respect to broadband service aware of the existence of federal assistance; • Provide logistical and administrative support for the Governor’s Broadband Task Force; and,

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• Coordinate an ongoing collaborative effort of stakeholders to evaluate and address security, vulnerability, and redundancy issues in order to ensure the reliability of broadband networks. • Coordination of broadband infrastructure development. Article 3, Section 14 adds a new statute, Minn. Stat. § 116J.999, directing the Office of Broadband Development to coordinate, with the Department of Transportation, “dig once” efforts to facilitate the costeffective deployment of broadband infrastructure. To the extent practicable, the office shall encourage and assist local units of government to adopt and implement “dig once” for construction or other improvements to county state-aid highways, municipal state-aid roads, and any other rights-of-way under the local unit of government’s jurisdiction, and to other lands or buildings owned by the local unit of government. • Fiber collaboration database. Article 3, Section 18 adds a new statute, Minn. Stat. § 161.462, requiring MnDOT to post upcoming construction projects on the department’s Web site so broadband providers can coordinate the installation of infrastructure with highway projects. • State broadband strategy; report. Article 3, Section 26, (see also, Article 3, section 13, subd. 5 and section 14, subd. 3 of the omnibus bill) requires the broadband development office to produce a state broadband strategy report. The report shall include research and recommendations to improve and promote expansion and efficient use of broadband throughout the state. The report is due to the Legislature by Jan. 15, 2014. Effective May 24, 2013, unless otherwise noted. (LZ)

TRANSPORTATION I-35W bridge remnant steel disposition provided for Chapter 93 (HF 1451*/SF 1305) creates Minn. Stat. § 3.7396. It allows the commissioner of the Minnesota Department of Transportation to distribute the remnant steel from the I-35W bridge collapse once the special claims process and any litigation is completed to the Minnesota Historical Society, survivors of the collapse, federal and state agencies responsible for transportation, colleges and universities in the field of engineering, or other persons or institutions directly impacted by the bridge collapse. The commissioner must complete the process of distributing pieces of remnant steel within a period of six months from the effective date. After that time, the commissioner must dispose of the remaining steel as surplus property to be melted down and recycled. The first $22,000 of the proceeds from the disposal of the remaining steel will be deposited in the trunk highway fund, and any additional proceeds will be deposited in the general fund. Effective May 25, 2013. (AF)

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Omnibus transportation finance act Chapter 117 (HF 1444*/SF 1173) is the 2013 omnibus transportation and public safety finance act. The chapter spends $2.394 billion in FY 2014 and $2.346 in FY 2015. It sets the budget for the Minnesota Department of Transportation (MnDOT) and part of the Minnesota Department of Public Safety (DPS), as well as funding for the Metropolitan Council, for the upcoming biennium. It makes various changes in base appropriation levels largely reflecting the governor’s budget proposal, including increased appropriations for state roads, Driver and Vehicle Services, and capitol security. It authorizes $300 million in trunk highway bonds, available in fiscal year 2015, for the Corridors of Commerce program being established. Summarized below are transportation provisions that may be of interest to cities. (Note: Public safety provisions in Chapter 117 are summarized in the Public Safety section of the 2013 Law Summaries.) Article 1. Appropriations for FY 2014 and 2015 Article 1 provides a summary of all appropriations by fund. • Airport development and assistance funded. $13.648 million in 2014 and $13.648 million in 2015 is for airport development and assistance. This appropriation is from the State Airports Fund and must be spent according to Minn. Stat. § 360.305, subd. 4. This amount represent an approximately $1 million reduction from the previous biennium. The base appropriation for fiscal years 2016 and 2017 is $14.298 million for each year. Effective July 1, 2013. • Aviation support and services funded. $6.386 million in 2014 and $6.386 million in 2015 is for aviation support and services. This amount represents an approximately $200,000 increase over the previous biennium. Effective July 1, 2013. • Greater Minnesota Transit appropriation provided. $17.226 million in 2014 and $17.245 in 2015 is for Greater Minnesota Transit. This amount represents an approximately $3 million increase over the previous biennium. $100,000 in each year is from the general fund for the administrative expenses of the Minnesota Council on Transportation Access under Minn. Stat. § 174.285. $78,000 in each year is from the general fund for grants to Greater Minnesota transit providers as reimbursement for the costs of providing fixed route public transit rides free of charge under Minn. Stat. § 174.24, subd. 7, for veterans certified as disabled. Effective July 1, 2013. • Passenger rail funded. $500,000 in each year of the biennium is provided from the general fund for passenger rail system planning, alternatives analysis, environmental analysis, design, and preliminary engineering under Minn. Stat. § 174.632 to 174.636. This is the same amount appropriated for this purpose in the previous biennium. Effective July 1, 2013.


• Freight appropriation provided. $5.653 in 2014 and $5.153 in 2015 is provided for freight purposes. This amount is approximately $500,000 more than was appropriated in the previous biennium. Effective July 1, 2013. • Safe routes to school activities funded. $250,000 in each year of the biennium is from the general fund for non-infrastructure activities in the safe routes to school program under Minn. Stat. § 174.40, subd. 7a. Effective July 1, 2013. • State roads operations and maintenance funded. $262.395 in each year of the biennium is for operations and maintenance of state roads. This amount is almost $300 million less than was provided in the previous biennium. Effective July 1, 2013. • State roads program planning and delivery funded. $206.795 million in 2014 and $206.720 million in 2015 is for program planning and delivery. This amount is approximately the same as what was appropriated in the previous biennium. Effective July 1, 2013. • Joint Program Office for Economic Development and Alternative Finance created. $250,000 in each year of the biennium is appropriated for MnDOT’s administrative costs for creation and operation of the Joint Program Office for Economic Development and Alternative Finance, including costs of hiring a consultant and preparing required reports. Effective July 1, 2013. • Targeted group business program funded. $130,000 in each year is available for administrative costs of the targeted group business program. Effective July 1, 2013. • Planning grants provided. $266,000 in each year is available for grants to metropolitan planning organizations outside the seven-county metropolitan area. Effective July 1, 2013. • Research contingent account funds provided. $75,000 in each year is available for a transportation research contingent account to finance research projects that are reimbursable from the federal government or from other sources. for the other year is available for it. Effective July 1, 2013. • Transportation study grant funds provided. $900,000 in each year is available for grants for transportation studies outside the metropolitan area to identify critical concerns, problems, and issues. These grants are available: (1) to regional development commissions; (2) in regions where no regional development commission is functioning, to joint powers boards established under agreement of two or more political subdivisions in the region to exercise the planning functions of a regional development commission; and (3) in regions where no regional development commission or joint powers board is functioning, to the department’s district office for that region. Effective July 1, 2013. • WorkPlace Telework program funded. $75,000 in the first year is from the Highway User Tax Distribution Fund for a grant to the Humphrey School of Public

2013 Law Summaries

Affairs at the University of Minnesota for WorkPlace Telework program congestion relief efforts consisting of maintenance of website tools and content. Effective July 1, 2013. • Economic recovery completion funds provided. $1 million in each year of the biennium is to complete projects using funds made available to the MnDOT under title XII of the American Recovery and Reinvestment Act of 2009, Public Law 111-5, and implemented under Minn. Stat. § 161.36, subd. 7. The base appropriation is $1 million in fiscal year 2016 and $0 in fiscal year 2017. Effective July 1, 2013. • State road construction funded. $909.4 million in 2014 and $815.6 million in 2015 are for state road construction. This amount is approximately $300 more than was appropriated in the previous biennium. $489.2 million in 2014 and $482.2 million in 2015 are from the Federal Highway Administration. $420.2 million in 2014 and $333.4 million in 2015 are from highway user taxes. Effective July 1, 2013. • Transportation Economic Development program funded. $10 million in each year is for the Transportation Economic Development (TED) program under Minn. Stat. § 174.12. The commissioner of MnDOT may expend up to one-half of 1 percent of the federal appropriations under this clause as grants to opportunity industrialization centers and other nonprofit job training centers for job training programs related to highway construction. Effective July 1, 2013. • Transportation Revolving Loan Fund transfers authorized. The commissioner of MnDOT may transfer up to $15 million each year to the Transportation Revolving Loan Fund. The commissioner may receive money covering other shares of the cost of partnership projects. Effective July 1, 2013. • Highway debt service provided. $158.417 million in 2014 and $189.821 million in 2015 is for debt service on trunk highway bonds. Effective July 1, 2013. • Electronic communications funded. $5.171 million in each year of the biennium is for electronic communications. Of this amount, $3,000 in each year is from the general fund appropriation to equip and operate the Roosevelt signal tower for Lake of the Woods weather broadcasting. The remainder is from the Trunk Highway Fund. Effective July 1, 2013. • County state-aid roads funded. $594.883 million in 2014 and $607.505 million in 2015 is from the County State-Aid Highway fund under Minn. Stat. § 161.082 to 161.085, and Chapter 162. Effective July 1, 2013. • Municipal state-aid roads funded. $152.219 million in 2014 and $155.060 million in 2015 is from the Municipal State-Aid Street Fund for the purposes under Minn. Stat. Chapter 162. Effective July 1, 2013. • Flexible Highway Account transfers required. The commissioner of MnDOT must transfer from the Flexi-

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ble Highway Account in the County State-Aid Highway Fund: (1) $5.7 million in the first year to the trunk highway fund; (2) $13 million in the first year to the Municipal Turnback Account in the Municipal State-Aid Street Fund; (3) $10 million in the second year to the Municipal Turnback Account in the Municipal State-Aid Street Fund; and (4) the remainder in each year to the County Turnback Account in the County State-Aid Highway Fund. The funds transferred are for highway turnback purposes as provided under Minn. Stat. § 161.081, subd. 3. Effective July 1, 2013. • Metropolitan Council transit operations funded. $107.889 million in 2014 and $76.97 million in 2015 is appropriated from the general fund for transit system operations under Minn. Stat. § 473.371 to 473.449. The base appropriation for fiscal years 2016 and 2017 is $76,686 million in each year. $37,000,000 in the first year is for the Southwest Corridor light rail transit line from the Hiawatha light rail transit line in downtown Minneapolis to Eden Prairie, to be used for environmental studies, preliminary engineering, acquisition of real property or interests in real property, and design. Effective July 1, 2013. • Trunk highway bond reauthorization provided. $1.4146 million of the amount appropriated in Laws 2008, chapter 152, article 2, section 6, for trunk highway bond sale expenses, which was reported to the Legislature according to Minn. Stat. § 16A.642, subd. 1, is reauthorized and does not cancel under the terms of that subdivision. This appropriation for the bond sale expenses and the bond sale authorization in Laws 2008, chapter 152, article 2, section 7, subd. 1, as amended, are available until Dec. 31, 2019. Effective May 24, 2013. Article 2. Corridors of Commerce bonding provided Article 2 contains authorization and appropriation of $300 million in trunk highway bonds for the Corridors of Commerce program (being established in article 3, section 1). The appropriation in this section is for the construction, reconstruction, and improvement of trunk highways, including design-build contracts and consultant usage to support these activities. This includes the cost of payments to landowners for lands acquired for highway rights-ofway, payments to lessees, interest subsidies, and relocation expenses. The commissioner may use up to 17 percent for program delivery. Effective July 1, 2014. Article 3. Funding policy provisions Article 3 contains policy provisions related to transportation and public safety funding. (Note: The public safety provisions can be found in the Public Safety section of the 2013 Law Summaries.) Following are transportation provisions that may be of interest to cities. • Corridors of Commerce Program created. Section 1 establishes Minn. Stat. § 161.088, the Corridors of

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Commerce Program. It creates classifications for candidate trunk highway projects, consisting of capacity development projects that add additional capacity to the trunk highway system and freight improvements. It establishes basic requirements for whether a project is eligible to be included in the program, including consistency with transportation plans, location on an interregional corridor (for projects outside the Twin Cities metropolitan area), fit in one of the project classifications, a time limit for when the project would be ready to start, and a maximum project cost. It requires MnDOT to establish a selection process and criteria for evaluation of projects as well as a cost participation policy for local units of government. It provides for stakeholder recommendations on candidate projects. It specifies some criteria that must be included in determining which projects to fund through the program, including return on investment, measures of commerce impacts, efficiency of freight movement, safety improvements, and project support. It provides for accounting for future operating costs resulting from a project funded under the program. It requires an annual report to the Legislature starting in November 2014 on the program, as well as an independent program evaluation every other year starting in 2016. Effective May 24, 2013; however, per Article 2, funds will not be available until July 1, 2014. • Center for Transportation Policy funding increased. Section 3 amends Minn. Stat. § 161.53 by increasing the cap from $1.2 million to $2 million on how much funding MnDOT can provide to the Center for Transportation Studies at the University of Minnesota for transportation research. Requires research to be undertaken on transportation policy and economic competitiveness, which is due by June 30, 2018. Effective July 1, 2013. • County wheelage tax expansion provided. Section 4 amends Minn. Stat. § 163.051. It broadens the authority for counties to impose an annual wheelage tax, to: 1) provide the authority to all counties, expanded from the current restriction to the seven-county Twin Cities metropolitan area; and 2) set the tax rate at $10 (increased from $5) to be imposed until Jan. 1, 2018, after which a tax of up $20 can be imposed. Effective May 24, 2013 and applies to a registration period under Minn. Stat. Chapter 168, starting on or after Jan. 1, 2014. • “High-value vehicle” definition amended. Section 5 amends Minn. Stat. § 168A.01, subd. 6a. It amends the definition of “high-value vehicle” in the chapter on motor vehicle titles, to raise the minimum value of a vehicle prior to being damaged in a crash, from $5,000 to $9,000, in order to be considered high-value. This has the effect of reducing the collection of vehicles considered high-value. High-value vehicles are subject to provisions under section 168A.151 that (1) require an insurance company to obtain a salvage title on the vehi-


cle if it was acquired as a result of paying an insurance claim, and (2) require a salvage title on some damaged vehicle scenarios involving an out-of-state title. Effective July 1, 2013. • Vehicle title fees increased. Section 6 amends Minn. Stat. § 168A.29, subd. 1. Modifies fees for motor vehicle titling transactions starting in January 2017, to: 1) raise the fee for new vehicle titles by $2 (going from $6.25 to $8.25, with no changes made to a $1 technology surcharge and an additional $3.50 that goes into a public safety vehicle account), with $0.90 of the increase going to an account that funds Driver and Vehicle Services (DVS) operations, and the other $1.10 going to the general fund; and 2) eliminate a $5.50 title transfer fee, which is currently distributed $2.50 to a DVS operating account and $3 to the general fund. Effective July 1, 2013. • Driver’s license renewal fee increased. Section 11 amends Minn. Stat. §171.061, subd. 4. It increases, from $5 to $8, the filing fee charged for a new or renewal driver’s licenses and Minnesota identification cards. The same fee amount is imposed by agents authorized by Driver and Vehicle Services (DVS) to administer driver licensing offices, and by DVS at its locations. (Filing fees collected by agents are retained by them, and fees collected by DVS are deposited in an operating account in the special revenue fund for DVS program administration.) Effective Jan. 1, 2014. • Transportation Economic Development Program codified. Section 19 creates Minn. Stat. § 174.12. It codifies authorization and requirements governing the Transportation Economic Development (TED) Program, a joint MnDOT/Department of Employment and Economic Development (DEED) program for road construction related to economic development. It directs MnDOT and DEED to jointly establish a program for funding transportation projects that have economic development impacts. It establishes accounts for the program in the Special Revenue Fund and the Trunk Highway Fund. It directs MnDOT and DEED to make public solicitations for projects and provide information and technical resources to potential applicants. It requires DEED to develop performance measures on economic impacts to use in evaluating projects for inclusion in the program. It specifies core criteria that must be included in evaluating projects for inclusion in the program. It specifies that project selection must be based on the criteria established, and directs certifications by both MnDOT and DEED regarding project eligibility. It limits funds from the program to 70 percent of project costs. It requires geographic balance throughout the state with respect to both numbers of projects and funding levels. Finally, it mandates a legislative report, due Feb. 1 of every other year starting in 2015. Effective July 1, 2013. • Solar installations made in Minnesota requirement provided. Section 20 creates Minn. Stat. § 174.187.

2013 Law Summaries

It requires MnDOT to use solar photovoltaic modules that are manufactured in Minnesota if such modules are included in a MnDOT construction project. It prevents the provision from applying if receipt of federal funds requires a conflicting procurement method, or if no modules are available that fulfill the required function. • Safe Routes to School expenditure authorized. Section 21 adds a subdivision to Minn. Stat. § 174.40. It establishes allowable uses of non-bond proceeds funds in the Safe Routes to School program, to include planning, education, traffic enforcement, and financial assistance activities. Effective July 1, 2013. • Bicycle and pedestrian trail categories required. Section 22 creates Minn. Stat. § 174.42. It requires MnDOT to obtain the same or a greater level of funding for certain bicycle and pedestrian trail project categories in each year compared to the average funding over the previous four years. Effective July 1, 2013. • Grade Crossing Safety Account discretion provided. Section 23 amends Minn. Stat. § 219.1651. It gives MnDOT discretion in whether to cancel remaining funds in the grade crossing safety account at the end of each biennium. Effective July 1, 2013. • Motor vehicle lease tax revenue dedication provided. Section 24 amends Minn. Stat. § 297A.815, subd. 3. It amends the allocation of revenue from the sales tax on leased motor vehicles, so that for 2014 and 2015 only, $9 million is allocated to Twin Cities metropolitan-area counties (except for Hennepin and Ramsey) for county roads and the remainder is provided to Greater Minnesota transit. Starting in 2016, the allocation reverts to the previous formula of 50 percent to certain county roads and 50 percent to Greater Minnesota transit. Effective Jan. 1, 2014. • County sales tax for transportation authority provided. Section 25 amends Minn. Stat. § 297A.993, subd. 1. It eliminates a referendum requirement for a county to impose a local option transportation sales tax in Greater Minnesota, which may instead be imposed by resolution following a hearing. Effective May 24, 2013. • Use of sales tax proceeds clarified. Section 26 amends Minn. Stat. § 297A.993, subd. 2. It clarifies eligible uses of proceeds from a local option transportation sales tax in Greater Minnesota, to specifically include funding transit capital and ongoing operations as well as projects in the safe routes to school program. Effective May 24, 2013. • Collector vehicle fee increased. Section 29 amends Minn. Stat. § 297B.02, subd. 3. It raises the flat fee from $90 to $150 imposed on sales of collector vehicles— including collector fire trucks—which applies instead of the motor vehicle sales tax. Effective July 1, 2013. • Metropolitan Council bonding authority increased. Section 34 adds a subdivision to Minn. Stat. § 473.39. It increases by $35.8 million the Metropolitan Coun-

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cil’s authority to issue debt obligations to fund its capital improvement plan for transit and paratransit. Proceeds may also be used to pay issuance costs (subject to the limit). Effective May 24 and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. • Appropriation authority extended. Section 36 amends Laws 2009, chapter 9, section 1 by extending from 2013 to 2016 appropriations authority for MnDOT from federal aid received under the American Economic Recovery and Reinvestment Act of 2009 (ARRA). Effective May 24, 2013. • Novice driver education improvement task force created. Section 37 is a 2013 Session Law. It creates a task force to compare Minnesota novice driver education with national group standards and submit a report to the Legislature, which is due by Aug. 31, 2015. The task force expires on Sept. 1, 2015, or the day after the report is submitted. Effective May 24, 2013. • Transitway community engagement contract authorized. Section 38 is a 2013 Session Law. It allows the Metropolitan Council, when it is the lead authority in a transitway project, to contract with communitybased organizations to promote community engagement activities along the corridor. It requires the Metropolitan Council to report activities related to this provision to the chairs of the House and Senate transportation committees. Effective July 1, 2013. • Transportation infrastructure hiring and recruitment practices encouraged. Section 38 is a 2013 Session Law. It encourages the lead transportation authority in a transportation project to make efforts to employ women and minorities and contract with targeted group businesses owned by women and minorities. It also encourages MnDOT to increase participation in highway projects of small businesses located in economically disadvantaged areas of the state. Effective July 1, 2013. • Financial assistance for Northstar Commuter Rail provided. Section 40 is a 2013 Session Law. It exempts the Greater Minnesota transit component of the costs of Northstar Commuter Rail from a requirement that financial assistance be provided only to recipients outside the Twin Cities metropolitan area. Effective July 1, 2013. (AF) Special freight distribution authorized for west central Minnesota Chapter 140 (HF 316*/SF 300) creates Minn. Stat. § 169.868. It allows annual permits for truck weights above the restricted amount in Minnesota Department of Transportation (MnDOT) District 4 to haul freight to or from a distribution facility that is constructed on or after July 1, 2013. MnDOT District 4 serves Becker, Big Stone, Clay, Douglas, Grant, Mahnomen, Otter Tail, Pope, Stevens, Swift, Traverse, and Wilkin counties.

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• Six-axle vehicles weight limit increase allowed by permit. Subdivision 1 allows a road authority to issue an annual permit for a vehicle or combination of vehicles with a combination of six or more axles to haul freight and to be operated with a gross vehicle weight up to: (1) 90,000 pounds; and (2) 99,000 pounds during the period set by the commissioner of MnDOT under Minn. Stat. § 169.826, subd. 1. The fee for a permit issued under this subdivision is $300. • Seven-axle vehicles weight limit increased by permit. Subdivision 2 allows a road authority to issue an annual permit for a vehicle or combination of vehicles with a combination of seven or more axles to haul freight and to be operated with a gross vehicle weight up to: (1) 97,000 pounds; and (2) 99,000 pounds during the period set by the commissioner of MnDOT under Minn. Stat. § 169.826, subd 1. The fee for a permit issued under this subdivision is $500. • Restrictions provided. Subdivision 3 provides that vehicles issued permits under this section must comply with all requirements and restrictions in Minn. Stat. § 169.865, subd. 3. A vehicle may be operated under a permit issued under this section only to haul freight to or from a distribution facility that is: (1) constructed on or after July 1, 2013; and (2) located within the Department of Transportation District 4. • Deposit of revenues provided. Subdivision 4 provides that revenue from the permits issued by MnDOT under this section must be deposited in the bridge inspection and signing account as provided under Minn. Stat. § 169.86, subd 5b. Effective May 25, 2013. (AF) Omnibus transportation policy act Chapter 127 (HF 1416/SF 1270*) is the omnibus transportation policy act. Summarized below are provisions that may be of interest to cities. • Snow removal authority in uncompleted subdivisions sunset extended. Section 1 amends Minn. Stat. § 160.21, subd. 6. It extends, by one year (until May 2, 2014), authority for MnDOT and local units of government to perform snow removal on roads in certain uncompleted subdivisions that are not being maintained by the developer. Effective Aug. 1, 2013. • Signage authorization expanded. Section 2 amends Minn. Stat. § 160.80, subd. 1 by expanding eligible types of businesses to include “attractions” under MnDOT’s logo sign program for advertising along interstates and controlled access trunk highways. Effective Aug. 1, 2013. • Requirements for businesses in logo sign program modified. Section 3 amends Minn. Stat. § 160.80, subd. 1a. It makes various changes in the requirements for businesses that advertise in the logo sign program. It sets requirements for attractions that are authorized to advertise under section 2 of the bill. Effective Aug. 1, 2013.


• Trunk highway emergency relief account. Section 5 amends Minn. Stat. § 161.04, subd. 5. It allows funds in the trunk highway emergency relief account to be expended for operations and maintenance related to a disaster. It removes a requirement that account interest be credited to the account. Effective Aug. 1, 2013. • Special account funds usage expanded. Section 9 amends Minn. Stat. § 161.1231, subd. 8. It expands the permissible uses of funds from an account for parking ramps owned by MnDOT at the terminus of I-394 in Minneapolis. Uses would expand to include work on MnPASS lanes and associated technology improvements for users of the ramps. Effective Aug. 1, 2013. • MnDOT encouraged to examine property. Section 9 adds a subdivision to Minn. Stat. § 161.44. It encourages the commissioner of MnDOT to examine all real property owned by the state and under the custodial control of the department to decide whether any real property may be suitable for sale or some other means of disposal. The commissioner may not sell or otherwise dispose of property under this subdivision unless: (1) an analysis has been performed of suitability of the property for bicycle or pedestrian facilities, which must take into account any relevant non-motorized transportation plans or in the absence of such plans, demographic and development factors affecting the region; and (2) the analysis demonstrates that (i) the property is not reasonably suitable for bicycle or pedestrian facilities, and (ii) there is not a likelihood of facility development involving the property. The commissioner must report the findings under paragraph (a) to the House of Representatives and Senate committees with jurisdiction over transportation policy and finance by March 1 of each odd-numbered year. Effective Aug. 1, 2013. • County State Aid Highway variance request process modified. Section 10 amends Minn. Stat. § 162.02, subd. 3a. It modifies the process for requesting variances from engineering standards for the county state-aid highway system, to eliminate publication of the request in the State Register and to only require hearings only after request denial. Effective Aug. 1, 2013. • Municipal State Aid Street variance request process modified. Section 11 amends Minn. Stat. § 162.09, subd. 3a. It modifies the process for requesting variances from engineering standards for the municipal state-aid street system, to eliminate publication of the request in the State Register and to only require hearings only after request denial. Effective Aug. 1, 2013. • Municipal State Aid money needs formula modified. Section 12 amends Minn. Stat. § 162.13, subd. 2. It updates the statute by amending the calculation of money needs to eliminate exclusion of certain county roads with a combination designation across road jurisdictions, which is no longer used. Money needs are used

2013 Law Summaries

in a formula-based allocation of municipal state-aid street funds among cities. Effective Aug. 1, 2013. • Driving on bicycle lane to pass prohibited. Section 28 amends Minn. Stat. § 169.18, subd. 4. It prohibits a motor vehicle from passing on the right by driving in a bicycle lane. (Under the traffic regulations in state statutes, a “bicycle lane” is a portion of the roadway or shoulder that is marked for use by bicyclists. Minn. Stat. § 169.011, subd. 5.) Effective Aug. 1, 2013. • Driving on bicycle lane to park authorized. Section 29 amends Minn. Stat. § 169.18, subd. 7. It clarifies that a motor vehicle may drive in a bicycle lane when performing parking maneuvers. Effective Aug. 1, 2013. • Crossing into bicycle lane authorization clarified. Section 30 amends Minn. Stat. § 169.19, subd. 1. It modifies driving rules for making turns that cross into an adjacent bicycle lane, so that a driver must (1) signal prior to making the movement, (2) yield to bicycles, (3) obey traffic control signs and markings. Effective Aug. 1, 2013. • Bicycle passenger limits provided. Section 31 amends Minn. Stat. § 169.222, subd. 2. It modifies requirements on bicycle passengers, including extending limitations on number of passenger to apply to various types of bicycles as well as trailers. Effective Aug. 1, 2013. • Riding bicycle at right-hand curb exception provided. Section 32 amends Minn. Stat. § 169.222, subd. 4. It eliminates a requirement of riding a bicycle at the right-hand curb or edge of the road, if riding in a shoulder or a bicycle lane. Effective Aug. 1, 2013. • Bicycle equipment requirements modified. Section 33 amends Minn. Stat. § 169.222, subd. 6. It modifies bicycle equipment regulations, including expanding lighting equipment that can be used to meet nighttime bicycle lighting requirements, permitting coaster brakes, and allowing a horn or bell on a bike. Effective Aug. 1, 2013. • Stopping in bicycle lane prohibited. Section 35 amends Minn. Stat. § 169.34, subd 1. It prohibits stopping, standing, or parking in a bicycle lane, unless parking is authorized by posted signs. Effective Aug. 1, 2013. • Disability parking alternative authorized. Section 36 adds a subdivision to Minn. Stat. § 169.346. It provides that, in the event the designated disability parking spaces are either occupied or unavailable, a vehicle bearing a valid disability parking certificate issued under Minn. Stat. § 169.345 or license plates for physically disabled persons under Minn. Stat. § 168.021 may park at an angle and occupy two standard parking spaces. Effective Aug. 1, 2013. • Disability parking signage requirement provided. Section 37 amends Minn. Stat. § 169.346, subd. 2. It requires, in the regulations on signage for disability parking, that the parking signs be non-moveable, which would no longer allow a sign that is moveable by authorized personnel. Effective Aug. 1, 2013.

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• School bus drivers prohibited from cell phone usage while in traffic. Section 38 amends Minn. Stat. § 169.443, subd. 9. It amends a prohibition on using a cell phone for personal reasons when operating a school bus to include times when the vehicle is part of the flow of traffic (such as at a stop light). Effective Aug. 1, 2013. • Transportation ombudsperson required. Section 47 adds a subdivision to Minn. Stat. § 174.02. It creates a position of ombudsperson in MnDOT, codified in statute. It outlines basic powers and duties of the position, sets reporting and appointment requirements, and restricts the person from holding other positions within the department as well as from charging a fee for services. Effective Aug. 1, 2013. • Public-private partnership program authorized. Section 50 creates Minn. Stat. § 174.45. It authorizes the commissioner of MnDOT to establish a joint program office to oversee and coordinate activities to develop, evaluate, and implement public-private partnerships involving public infrastructure investments. At the request of the commissioner of MnDOT, the commissioner of Minnesota Management and Budget, the commissioner of the Department of Employment and Economic Development, the executive director of the Public Facilities Authority, and other state agencies shall cooperate with and provide assistance to the commissioner of MnDOT for activities related to public-private partnerships involving public infrastructure investments. Effective Aug. 1, 2013. • Railroad crossing warning sign requirements modified. Section 53 amends Minn. Stat. § 219.17. It amends the types of uniform signs that can be placed at railroad crossings, including allowing a yield sign and modifying terminology for sign types. Effective Aug. 1, 2013. • Railroad sign placement modified. Section 54 amends Minn. Stat. § 219.18. It decreases the maximum distance from a railroad crossing that crossback signs must be placed and maintained by railroads, from 75 to 50 feet. It provides that MnDOT can authorize a greater distance. Effective Aug. 1, 2013. • Yield signs at railroad crossings authorized. Section 55 amends Minn. Stat. § 219.20. It clarifies when requirements apply for placing stop signs or yield signs at railroad crossings, to exclude crossings that are equipped with flashing lights or with lights and gates. Effective Aug. 1, 2013. • Bus rapid transit system development authorized. Section 59 adds a subdivision to Minn. Stat. § 398A.04 It provides that a regional rail authority may exercise the powers conferred under this section to: plan, establish, acquire, develop, purchase, enlarge, extend, improve, maintain, equip, regulate, and protect; and pay costs of construction and operation of a bus rapid transit system located within its county on transit ways included in and

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approved by the Metropolitan Council’s 2030 Transportation Policy Plan. This subdivision applies only to the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Effective May 25, 2013. • Diversion pilot program sunset extended. Section 60 amends Laws 2009, chapter 59, article 3, section 4, subd. 9, as amended by Laws 2010, chapter 197, section 1, and Laws 2011, chapter 87, section 1, subd. 9. It provides that a city or county participating in a diversion pilot program may accept an individual for diversion into the pilot program until June 30, 2017. The authority had been set to expire on June 30, 2013. The section also provides that the third party administering the diversion program may collect and disburse fees collected pursuant to subd. 6, paragraph (a), clause (2), through Dec. 31, 2018, at which time the pilot program under this section expires. This authority had been set to expire in 2014. Effective May 25, 2013. • Pedestrian skyway connection required for Central Station. Section 61 is a 2013 Session Law. It requires the City of St. Paul to include construction or establishment of access to a pedestrian skyway system as part of the initial transit line construction of the Central Station on the Central Corridor light rail transit line. The council and city must ensure that public access to the pedestrian skyway system is provided by an elevator located at the site of the station. Effective May 25, 2013. (AF)

UTILTIES Energy provisions in omnibus jobs act Chapter 85 (*HF 729/SF 1057) is the omnibus jobs, economic development, housing, commerce, and energy bill. It contains a number of sections changing electric utility requirements and regulations, but they apply to investorowned utilities and not to municipal utilities. Some sections of interest to cities include: • Article 8 makes fixes to the Property Assessed Clean Energy (PACE) program that allow repayment to extend for up to 20 years (previously limited at 10 years) and clarifies that qualified projects must have been identified in an energy audit as being cost-effective. Effective May 24, 2013. • Article 10 includes new policy and requirements related to solar energy. The new state solar power generation goal of 10 percent by 2030 is found in section 3 and is a statewide goal, so will include municipal electric utilities to some extent. Effective July 1, 2013. • Article 11 prioritizes and incentivizes solar panels made in Minnesota in terms of meeting renewable energy and CIP requirements for investor-owned utilities. Effective May 24, 2013.


• Article 12 includes municipal power agencies as participants in planning groups required under sections 1 and 4. Effective July 1, 2013. • Article 13, Section 1 increases the allowable duration for guaranteed savings contracts done under MN State §16C.144, subd. 2 on state buildings to 25 years (previously 15 years) to allow for deeper retrofits and more renewable energy options. Effective July 1, 2013. (CJ)

2013 Law Summaries

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BILLS VETOED BY THE GOVERNOR VETOED: ENVIRONMENT Legacy spending bill Chapter 137 (*HF 1183/ SF 1051) allocates the money from constitutionally-dedicated sales tax funds targeted to environmental and cultural programs. Gov. Dayton eventu-

ally line-item vetoed two appropriations from the outdoor heritage fund that went against the recommendations of the Lessard-Sams Outdoor Heritage Council. The two vetoed line items were $6.3 million to metropolitan parks in Subd. 5(i) and $3 million for aquatic invasive species control in Subd. 5(j). (CJ)

BILLS THAT DID NOT BECOME LAW (DNBL) DNBL-AID TO CITIES Governor’s proposed changes to local government aid program In his budget recommendations released on Jan. 22, Gov. Dayton proposed an appropriation increase and significant reforms to the local government aid (LGA) program for the 2014-2015 biennium. Under the governor’s proposal, most of the current LGA formula would have been discarded. Each city’s need would have been computed using an entirely new formula that includes three need factors: 1) public safety/streets need based on population; 2) percentage of housing built before 1970; and 3) percentage of parcels that are tax-exempt. The per capita dollars of need for each of the three factors would have been added together to arrive at the city’s total per capita need. The formula then compares total per capita need multiplied by the city’s population to the city’s capacity. If there is a gap between need and capacity, the city would have received LGA. If capacity exceeds need, the city would not have received LGA. The formula included an initial $40 per capita increase for each city currently receiving LGA. For many cities, that initial increase would have been phased-down over the next four years as the formula was implemented. (GC)

DNBL-BONDING House bonding bill HF 270 (Rep. Alice Hausman, DFL-St. Paul) is the omnibus bonding bill, which contained approximately $850 million in bonding projects. The bill failed by a vote of 76-56, failing to obtain the constitutionally required threefifths majority for passage. The proposal contained nearly $119 million in local government projects throughout the state including: three regional civic centers in Mankato ($14.5 million), Rochester ($30 million), and St. Cloud ($10.8 million); the Children’s Museum in St. Paul ($14 million); $2.5 million for the Park Rapids Upper Mississippi Center; $1.5 million for a water main improvement in Eveleth; and $250,000 for the Grand Rapids Regional Arts Center.

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The proposal also included $30 million for supportive housing, $10 million for public housing rehabilitation; $4 million for wastewater inflow & infiltration abatement grants; $1 million to Pollution Control Agency for stormwater ponds (coal tar abatement); $8 million for clean and drinking water match for USEPA capitalization grants; $20 million for Wastewater Infrastructure Fund (Public Facilities Authority); and $46.6 million for transportation projects, including the Local Bridge Replacement Program, Local Road Improvements (includes TCAAP and Rochester), and Greater Minnesota Transit Assistance (St. Cloud). (GC) “Buy American” steel HF 548/SF 318 (Rep. Carly Melin, DFL-Hibbing and Sen. David Tomassoni, DFL-Chisholm) would have required American steel products to be used for any project that received public funds, including local or state tax revenue. (PH)

DNBL-BUILDLING CODES Residential sprinklers A floor amendment to the Senate omnibus environment, agriculture, commerce, energy, jobs and economic development bill (SF 1607) bill would have prohibited the State Building Code, Fire Code, or local governments from requiring the installation of fire sprinklers in new or existing single family homes. The prohibition was not adopted by the conference committee and did not become law. Gov. Dayton vetoed the same provision in 2011 and 2012. (PH)

DNBL-DATA PRACTICES Classification of license plate reader data SF 385/HF 474 (Sen. Scott Dibble, DFL-Minneapolis and Rep. Mary Liz Holberg, R-Lakeville) would have classified license plate reader (LPR) data as private data under the Minnesota Government Data Practices Act. Minnesota law enforcement agencies use automated cameras to photograph license plates and compare the plate numbers to law enforcement databases. In addition to classifying the data


BILLS THAT DID NOT BECOME LAW (DNBL) as private, the bills set limits on how long law enforcement agencies could retain data that did not result in a “hit” in one of the databases. The House passed a bill requiring the immediate destruction of non-hit data. The Senate bill, passed by the Judiciary Committee, allowed non-hit data to be retained for 90 days. The full Senate did not take up the bill. (Note: LPR data is currently classified as private data pursuant to a temporary classification issued by the Information Policy Analysis Division of the Department of Administration). Absent legislative action, the temporary classification expires on Aug. 1, 2015. Law enforcement agencies currently can retain non-hit data indefinitely. (PH)

tricts to be used for any type of project if the municipality finds the project will create new jobs in the state, including construction jobs, and the project otherwise would not have begun before Jan. 1, 2014, without the assistance. The additional authority expired on Dec. 31, 2012. The bill would have reinstituted for 18 months the 2010 jobs bill provision that allows the use of surplus tax increment financing (TIF) increments to stimulate projects where construction commences by Jan. 1, 2014 (Minn. Stat. § 469.176, subd. 4m). The authority to spend increments would have expired on Dec. 31, 2012. (PH)

Unauthorized data access security policies and penalties HF 183/SF 211 (Sen. Scott Dibble, DFL-Minneapolis and Rep. Mary Liz Holberg, R-Lakeville) would have required municipalities to adopt additional security policies to prevent the unauthorized access of private data by employees, and would subject municipalities to statutory requirements regarding the disclosure of data breaches that currently apply to state agencies. As introduced, it also would have instituted a new gross misdemeanor penalty for certain data practices violations, and would have required public entities to post the results of investigations of unauthorized access to data on the entity’s website. The legislation was introduced in response to reports and lawsuits regarding unauthorized access of private data in the driver’s license database maintained by the Department of Public Safety. (PH)

Early voting HF 334/SF 535 (Rep. Connie Bernardy, DFL-Fridley and Sen. Katie Sieben, DFL-Newport), would have established an early voting system statewide. The bill would have defined early voting as “voting in person before election day at the office of the county auditor or designated municipal clerk.” The early voting option would have been made available to any eligible voter for primary, general and special elections for federal, state, or county offices. (AL)

Creating an exception to the Open Meeting Law for social media HF 653/SF 527 (Rep. Duane Quam, R-Byron and Sen. Kevin Dahle, DFL-Northfield) would have created an exception to the Open Meeting Law for certain communications made by elected officials on social media, such as Facebook or Twitter. The social media forums would have to be open to the public, and the forums used by a government entity would have to be previously identified by the council at a public meeting and publicly posted. Participation could not replace any required public hearing or meeting, and could not be the sole means of deliberation by the public body. (PH)

DNBL-ECONOMIC DEVELOPMENT Jobs bill extension SF 669/ HF 706 (Sen. Ann Rest, DFL-New Hope and Rep. Mike Nelson, DFL-Brooklyn Center) would have reinstituted a provision in the 2010 jobs bill (Minn. Stat. § 469.176, subd. 4c) that allows economic development dis-

2013 Law Summaries

DNBL-ELECTIONS

Ranked-choice voting HF 367/SF 335 (Rep. Steve Simon, DFL-Hopkins and Sen. Ann Rest, DFL-New Hope) would have allowed statutory cities to adopt and implement ranked-choice voting (RCV) if approval by the city council. Currently, charter cities are able to adopt RCV, and Minneapolis and St. Paul have done so by referendum. RCV allows voters to rank their candidate choices instead of choosing a single candidate for local, non-partisan races. (AL) Felon voting SF 164/HF 637 (Sen. Bobby Jo Champion, DFL-Minneapolis and Rep. Laurie Halverson, DFL-Eagan) is the bill containing the recommendations from the Governor’s Task Force on Election Integrity regarding felon voting rights and notification. Several provisions were adopted into the omnibus elections bills and are now law (see Chapter 131). A key provision that did not become law was the requirement to notify the adult felon on probation of loss of voting rights in writing and signed by the individual. (AL) June primary HF 687/SF 898 (Rep. Steve Simon, DFL-Hopkins and Sen. Jim Carlson, DFL-Eagan) would have changed the state primary date from the second Tuesday in August to the first Tuesday after the third Monday in June. (AL)

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BILLS THAT DID NOT BECOME LAW (DNBL) DNBL-EMPLOYMENT LAW Statewide teacher health insurance pool HF 573/SF 446 (Rep. John Ward, DFL-Baxter and Sen. Scott Dibble, DFL, Minneapolis) would have pooled school employees into a statewide health plan. The proposal has been a high priority for Education Minnesota, the association that represents public school teachers. Proponents for the legislation argued that a statewide pool would lower health insurance premiums for all school employees. Opponents argued that the measure, if enacted, would raise costs for many school districts, which currently have the option of negotiating with other districts as cooperatives. (AF) Minimum wage HF 92/SF 3 (Rep. Ryan Winkler, DFL-Golden Valley and Sen. Chris Eaton, DFL-Brooklyn Center) would have increased the Minnesota minimum wage for large employers (with business volume in excess of $625,000 per year) from the current $6.15 per hour to $8.35 per hour on Aug. 1, 2013; $9.45 per hour on Aug. 1, 2014; and $10.55 per hour on Aug. 1, 2015. Small employers (with business volume under $625,000 per year) would see an increase in the minimum wage from the current $5.25 per hour to $6.50 per hour on Aug. 1, 2013; $7.75 per hour on Aug. 1, 2014; and $9 per hour on Aug. 1, 2015. Beginning on Jan. 1, 2016, the minimum wage amounts for both large and small employers would be increased by the rate of inflation as measured by the consumer price index for all urban consumers. (GC) Pregnancy leave HF 463 (Rep. Phyllis Kahn, DFL-Minneapolis) would have required an employer to grant an unpaid leave not to exceed 12 weeks to a female employee disabled by pregnancy, childbirth, or a related medical condition. The bill would also have allowed an employee to utilize all available accrued vacation or sick leave during the leave. The employer may require the employee to give reasonable notice of the leave. The bill would have also required an employer to provide reasonable accommodations related to pregnancy, including but not limited to seating, frequent restroom breaks, and limits on heavy lifting. The bill requires the employer to make accommodations upon request of the employee and with the advice of a health care provider. The bill also would have required an employer to transfer a pregnant female employee to a less strenuous or hazardous position, with the advice of a physician and upon her request, where the transfer can be reasonably accommodated. (GC)

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Prompt payment of wages HF 748 (Rep. Steve Simon, DFL-St. Louis Park) would have modified the prompt payment of wages requirements in Minnesota Statutes, sections 181.13 and 181.14. Under the bill, an employee who is being discharged or resigns from employment must be paid all wages at the “regular rate of pay or at the rate required by law, whichever rate is greater.” This would likely come into play for cities if there is a dispute about the “regular rate of pay” under the terms of a union agreement or a personnel policy. “Regular rate of pay” is not defined under the new law, but there is a definition of “regular rate of pay” in the federal Fair Labor Standards Act that includes nearly all forms of compensation except benefits and expense reimbursements. The bill would have allowed “compensatory damages” equal to the amount of wages that were earned and unpaid. The employee’s demand for payment would not have needed to be in writing or state the precise amount of unpaid wages. The bill also would have clarified that employers cannot make deductions from wages due at time of discharge for lost, stolen, or damaged property of the employer, unless the deduction is voluntarily authorized by the employee in writing after the loss has occurred. (AF) Overtime hour threshold HF 763 (Rep. Jason Metsa, DFL-Virginia) that would have reduced the overtime threshold to 40 hours from the current 48 hours. In most instances, this bill would not have impacted cities because the federal threshold of 40 hours is already required for most positions. However, because of federal exemptions for seasonal/recreational establishments, there may have been some sectors of city employment impacted by the lower limit of 40 hours. Cities that currently take advantage of this 48-hour limit for lifeguards at beaches and outdoor swimming pools or for golf course employees would have been subject to the same 40-hour limit as other city employees. (GC)

DNBL-ENVIRONMENT Water appropriation fee increase HF 976 (Rep. Jean Wagenius, DFL-Minneapolis) included an increase to water appropriation fees by $6.1 million per year. Based on 2010 water use data, the fee would have generated an additional $2.15 million from water appropriation fees on municipal systems and an additional $1.45 million from summer water use surcharges. Agricultural irrigation and golf courses would have seen their rates increase by $725,000 and $425,000 respectively. The remaining $1.4 million would have come from increases to various industrial permits. The bill would have also set residential water use fees at $15 per million gallons. The size of the system would


BILLS THAT DID NOT BECOME LAW (DNBL) have no longer resulted in a change to the base fee. Nonagricultural irrigation would have been charged $70 per million gallons. Agricultural irrigation would have been billed at $22 per million gallons, and other water uses would have been charged $30 per million gallons. The summer surcharge rate paid on the difference between summer water use and January water use would have been set at $75 per million gallons. The proposal would have expanded the summer surcharge window to include May and September in addition to the current June, July, and August time period. These fees were not increased in the final budget agreement, but the groundwater research they were intended to finance was all funded through the general fund. (CJ) Silica sand mining SF 786/no House companion (Sen. Matt Schmit, DFLRed Wing) would have created an organization similar to the Iron Range Rehabilitation and Recovery Board, but focused on silica mining. The legislation would have also required the completion of a statewide Generic Environmental Impact Statement (GEIS), would have allowed the extension of local moratoria beyond the normal statutory limits, and would have allowed the Environmental Quality Board (EQB) to veto government decisions on the need for the completion of environmental impact statements for any project. Other provisions related to silica sand that were agreed to by local government organizations were adopted at part of Chapter 114, the omnibus environment and natural resources budget bill. (CJ) Silica sand mining HF 1336/SF 1487 (Rep. Rick Hansen, DFL-South St. Paul/Sen. Matt Schmit, DFL-Red Wing) would have imposed a tax of $1 per ton is imposed on the extraction of silica sand as well as a separate tax on the processing of silica sand, and this amount is equal to 3 percent of the market value of the sand. Proceeds from the extraction tax would have been appropriated to the Environmental Quality Board. Proceeds from the production tax would have been divided in equal parts and appropriated to the commission of transportation for road maintenance, the commissioner of natural resources for acquisition of certain lands, and to the Board of Water and Soil Resources to acquire easements preventing mining in wellhead protection areas. (GC) State shoreland rules SF 1089/no House companion (Sen. Tom Saxhaug, DFLGrand Rapids) would grant legislative authority to the Department of Natural Resources to restart its efforts to revise statewide restrictions related to shoreland develop-

2013 Law Summaries

ment. Those rules had previously been completed in draft form and sent to Gov. Pawlenty, who refused to allow them to be adopted. The authority has since expired. The language allowing that process to continue briefly appeared as an amendment to a different Senate bill, but was dropped due to a lack of support from the governor. It is likely to be an issue discussed in upcoming legislative sessions, as the rules have not been updated since the late 1980s. (CJ) Legislative water commission HF 1769/SF 1601 (Rep. Peter Fischer, DFL-Maplewood/ Sen. Bev Scalze, DFL-Little Canada) would recreate the Legislative Water Commission, a joint legislative body that was phased out in 1994. The group would meet during legislative interim periods to discuss water policy and funding issues. The goal is to have a group of legislators from both bodies thoroughly knowledgeable about complex water issues, and able to provide legislative leadership on discussions related to those issues during legislative session debates and discussions. The bill is likely to be discussed next year as a potential supplemental budget item. (CJ)

DNBL-LAND USE AND GROWTH MANAGEMENT Annexation HF 1425 (Rep. Andrew Falk, DFL-Murdock) would have created a prohibition on annexation of any type occurring of a property that is subject to an orderly annexation agreement with any other city. The bill would have also prohibited the use of annexation by ordinance if a parcel has been subdivided from a parcel larger than 120 acres within the previous five years. The bill was first heard many weeks after the policy committee deadline and was laid aside by the chair without a vote being taken. It followed numerous unsuccessful attempts by the same legislative author to include specific provisions affecting or canceling annexations occurring next to Ortonville in other pieces of legislation. (CJ) Partial discharge of easements HF 752/SF 480 (Rep. Debra Hilstrom, DFL-Brooklyn Center and Sen. Lyle Koenen, DFL-Clara City) amends Minn. Stat. § 177.225 and would allow a property owner to petition to have a portion of an easement taken through condemnation discharged if a court finds that any portion is not being used for the purpose for which it was taken. The League, counties, and the Department of Transportation worked to prevent passage of this bill, which could have resulted in numerous lawsuits over easements that have been in place for decades. (PH/CJ)

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BILLS THAT DID NOT BECOME LAW (DNBL) DNBL-PENSIONS AND RETIREMENT Increase in police and fire pension aid HF 857/SF 935 (Rep. Joe Atkins, DFL-Inver Grove Heights and Sen. Sandy Pappas, DFL-St. Paul) would have imposed a surcharge on various insurance premiums to provide additional funding for the existing police and fire pension state aid programs. Since reaching its peak of $31.7 million in 2006, the revenues collected to fund the fire state aid program have declined by nearly 31 percent, or $10 million. Police state aid, which is funded by a tax on automobile insurance premiums, reached its peak in 2009 at $63.3 million and has since declined to $59.9 million in 2012, or a drop of 5.4 percent. Under the bill, a $5 annual surcharge would have been applied to each new or renewed homeowner insurance policy and a $5 surcharge would have been applied to each automobile insurance policy. The final omnibus tax bill included a $15.5 million annual state general fund appropriation that will fund portions of the initiatives in this bill without using the surcharge mechanisms. (GC/PH/AF)

DNBL-PUBLIC FINANCE Municipal bond interest exemption repeal HF 1493/no Senate companion (Rep. Ann Lenczewski, DFL-Bloomington) included a provision that would have removed the tax exempt status of municipal bonds. Without the tax benefits, interest rates would have increased in order to be competitive with other bonds and to attract investors. The increase in bond payments would have increased the cost of construction projects funded by the bonds, and that cost would flow to local taxpayers. (GC)

DNBL-PUBLIC SAFETY Photo-cop HF 487/SF 377 (Rep. Alice Hausman, DFL-St. Paul and Sen. John Pederson, R-St. Cloud) would have given local units of government the authority to use traffic cameras to enforce red light violations. The bill would have also authorized a vendor to contract with a local unit of government to capture images of red light runners, review them, and forward them to the local law enforcement agency. (AF)

DNBL-TAXES Nonprofits exempted from city fees and service charges SF 1050/HF 781 (Sen. Chris Eaton, DFL-Brooklyn Center and Rep. Mike Nelson, DFL-Brooklyn Center) would have exempted institutions of public charity, such

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as defined in Minn. Stat., section 272.02, subdivision 7, (churches, universities and colleges were not covered by the bill) from paying fees or charges imposed by a city if that fee or charge was for a service provided by the city, and within the most recent five years, the service had been paid for in whole or in part from revenue raised from the city’s property tax levy. The definition would have likely impacted storm sewer charges and street lighting charges but it could have also impacted special assessments, water and sewer charges, waste hauling charges, and other current service charges. In addition, even if a service provided by a city had been largely paid by fees or charges, any use of property taxes within the past five years to fund that service would have triggered the exemption for nonprofit organizations. (GC) Levy authority to Southeast Minnesota Multicounty Housing and Redevelopment Authority SF 896/HF 1027(Sen. LeRoy Stumpf, DFL-Plummer and Debra Kiel, R-Crookston) would have given the Southeast Minnesota Multicounty Housing and Redevelopment Authority levy authority similar to the authority previously granted to the Northwest Minnesota Multicounty Housing and Redevelopment Authority. Effective beginning with taxes payable in 2014 and through taxes payable in 2019, the Southeast Minnesota Multicounty Housing and Redevelopment Authority (HRA) would have been allowed to levy up to 25 percent of its total levy authority on its own and without the approval of the city or county in which the authority operates. The remaining 75 percent of the HRA’s permitted levy would have still required the approval of two-thirds majority of all its members in order to levy property taxes as permitted under Minn. Stat. § 469.033. (HC/GC) Labor peace agreement HF 1765/SF 1614 (Rep. Mike Nelson, DFL-Brooklyn Park and Sen. Kari Dziedzic, DFL-Minneapolis) would have required any public-funded project in Hennepin, Ramsey, St. Louis, and Olmsted counties that employs hospitality workers to enter into a “labor peace agreement” as a condition of accepting any public funds. The bill would have applied to construction and development of a hotel, sports facility, convention center, or cultural facility with catering or cafeteria facilities. The provision was also carried in the House omnibus tax bill but was not included in the final tax conference committee report. A labor peace agreement is an agreement between a developer and a labor organization seeking to represent hospitality workers on qualifying projects. The labor organization agrees not to picket or otherwise disrupt work on the project, in exchange for establishing a process for determining employee preference regarding union representation. Labor peace agreements have been used on individual projects,


BILLS THAT DID NOT BECOME LAW (DNBL) such as the Vikings Stadium, and have been adopted as municipal ordinances. Minneapolis has a labor peace ordinance, although the provisions differ from those in the proposed legislation. (GC) Sales tax base broadening to clothing SF 9/no House companion (Sen. Ann Rest, DFL-New Hope) would have limited the clothing sales tax exemption to the first $200 of any article of clothing. SF 11 (Sen. Ann Rest, DFL-New Hope) would have eliminated the clothing sales tax exemption entirely and replaced it with an income tax refund system. (GC) Homeowner property tax refund SF 552/HF 677 (Rod Skoe, DFL-Clearbrook and Ann Lenczewski, DFL-Bloomington) as introduced included Gov. Dayton’s proposed new property tax rebate for all Minnesota homesteads. The homeowner property tax rebate would have been equal to the lesser of $500 or 100 percent of the homestead’s previous-year property tax bill. According to the budget document, there are approximately 1.5 million homesteads in Minnesota, and an estimated 95 percent of those homesteads would receive the maximum $500 rebate. The other 5 percent of eligible homeowners would have 100 percent of their previous year’s property tax bill paid via the state rebate. (GC) Gov. Dayton’s tax recommendations SF 552/HF 677 (Rod Skoe, DFL-Clearbrook and Ann Lenczewski, DFL-Bloomington) as introduced were the governor’s budget tax recommendations that included a new fourth tier income tax bracket; modifications to the corporate franchise tax; a sales tax rate reduction and base expansion to services, higher-value clothing, digital goods, and Internet commerce; and a new LGA formula with an increased appropriation. Note that these bills were amended to become the House and Senate omnibus tax bills. (GC) Tax hearing and notification law changes HF 1570/no Senate companion (Rep. Paul Marquart, DFL-Dilworth) would have repealed the current parcelspecific preliminary tax notice and in its place would have required local governments with a population over 2,500 to hold an additional public hearing prior to adopting its proposed levy. Affected cities would have been required to publish a “preliminary proposed budget” prior to Sept. 1, and then required to hold a public hearing after Sept. 1, but before the proposed levy is adopted, which under current law must occur by Sept. 15. The bill would have required that the preliminary proposed budget be published on the city website, and the public hearing may not start before 6 p.m., must allow for the public to testify, must be distributed electronically via television or over the

2013 Law Summaries

Internet, and must allow for public input electronically via e-mail or social media. (GC) Tax hearing and notification law changes HF 1724/SF 1563 (Rep. Jim Davnie, DFL-Minneapolis and Sen. Rod Skoe, DFL-Clearbrook) would have required that each taxing district provide the following information at an publicly-noticed hearing prior to Sept. 1, including the estimated proposed levy, prior final levy, and percent change; the tax rate for the estimated proposed levy, current tax rate, and percent change; a statement of reason for the increase or decrease, “including the four most significant factors resulting in the change, and an accounting of the distribution of levy proceeds from the prior year. Unlike the Marquart proposal above, HF 1724 would not have repealed the parcel-specific notice required by current law. (GC) Local Sales Tax Bills • Walker sales tax. SF 15/HF 39 (Senator Tom Saxhaug, DFL-Grand Rapids and Rep. John Persell, DFL-Bemidji) would have authorized the City of Walker to impose up to a 1.5 percent general sales tax to fund underground utility, street, curb, gutter and sidewalk improvements. The bill would have also authorize the city to issue bonds of up to $20 million to pay capital and administrative costs related to the improvements. (GC) • Windom sales tax. HF 1417/SF 1207 (Rep. Rod Hamilton, R-Mountain Lake and Sen. Bill Weber, R-Luverne) would have authorized the City of Windom to impose up to a 0.5 percent local sales tax to fund the costs of public facilities and the option for capitalization of a revolving loan fund for the Windom Economic Development Authority. (GC) • Bemidji lodging. SF 701/HF 1037 (Sen. Tom Saxhaug, DFL-Grand Rapids and John Persell, DFL-Bemidji) would have authorized the City of Bemidji to impose a local lodging tax to fund the costs of operation, maintenance, and capital replacement costs for the Sanford Center. (GC)

DNBL-TELECOMMUNICATIONS Telecommunications regulation changes SF 584/HF 985 is a modernization and update to various sections in Minn. Stat. § 237, Minnesota’s telecommunications statute. The bill defines “advanced services,” “basic services,” “competitive local exchange carrier,” and “wholesale telecommunications service.” The bill also transfers the regulatory duties from the Department of Commerce to the Public Utilities Commission. Furthermore, the bill outlines the regulation of local exchange carriers and advanced service providers to combine local access surcharge requirements.

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BILLS THAT DID NOT BECOME LAW (DNBL) The bill received an informational hearing in the House after committee deadlines and is expected to be heard in the 2014 legislative session. (LZ)

DNBL-TRANSPORTATION Municipal street improvement district authority HF 745/SF 607 (Rep. Ron Erhardt, DFL-Edina and Sen. Jim Carlson, DFL-Eagan) would have allowed cities to collect fees from property owners within a district to fund municipal street maintenance, construction, reconstruction, and facility upgrades. The street improvement district authority legislation was modeled after Minnesota Statutes, § 435.44, which allows cities to establish sidewalk improvement districts. The authority would have provide a funding mechanism that establishes a clear relationship between who pays fees and where projects occur, but stops short of the benefit test that sometimes makes special assessments vulnerable to legal challenges. As introduced, it also did not prohibit cities from collecting fees from tax-exempt properties within a district, and the tool could have been used to mitigate or eliminate the need for special assessments. A modified version of the authority was included in the initial version of the House omnibus tax bill, but the provision was not included in the final tax conference committee report. (AF)

Sales tax on gasoline SF 1173 (Sen. Scott Dibble, DFL-Minneapolis) included a new sales tax at the fuel distributor level—which was suggested by transportation advocates, including the Minnesota Transportation Alliance. Proponents of the distributor tax argue that gas tax revenues are declining and any increase in the per-gallon tax would not only fail to keep up with inflation, but would decline as fuel consumption is projected to decrease. The proposal would have decreased the current 25-cent-per-gallon fuel tax by 6 cents per gallon, and replace that tax with a 5.5 percent gross receipts tax on distributors. Due to the fact that the sales tax is a percentage of the price of gasoline, the revenue will increase automatically as the price increases. (AF) Mini-trucks HF138/SF 67 (Rep. Bud Nornes, R-Fergus Falls and Sen. Bill Ingebrigtsen, R-Alexandria) would have allowed operation of mini-trucks on local roads as passenger automobiles. Although the bill would have provided that a local road authority may by ordinance prohibit the operation of a mini-truck on streets and highways under the local road authority’s jurisdiction, local jurisdictions would no longer have had the authority to issue permits for mini-truck use. (AF)

Gas tax increase Transportation advocates hoped the Senate’s more substantive funding package would prevail, but that hope faded over the final weekend of the session. Transportation advocates had held out hope that a transportation funding package passed by the Senate on May 10 would prevail in conference committee. It included an increase in both the metro area sales tax for transit purposes and the state gas tax. Instead, the conference committee report contained a hefty bonding provision, new taxing authority for counties, and a change in distribution of motor vehicle leased sales tax revenue. (AF)

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Appendix A: Estimate Your 2014 Levy Limit

How to Estimate Your City’s 2014 Levy Limit

Preliminary and subject to final review by the MN Department of Revenue (revised 6/12/2013)

The 2013 legislature enacted a one-year levy limit for cities over 2,500 population that will cover levies established by cities this fall for collection in 2014. The language on levy limits is contained in the final tax bill of the 2013 session, Chapter 143 (HF 677) and amended in Chapter 144 (SF 1664). This fact sheet is intended to provide an initial description of the levy limit for planning purposes. Timeline: Cities will be required to provide the Department of Revenue (MDoR) with the information needed to calculate levy limits. The first data request will be due July 20th, and there will be other exchanges of information needed throughout the year. The Minnesota Department of Revenue (MDoR) will be certifying levy limits by September 1, 2013. Cities, in turn, will be required to report by Sept. 30 to MDoR the maximum amount it plans to levy for special levies. DOR will certify the allowed special levies by December 10. Please note that the levy limit exemption that is provided by participation in local performance measurement and reporting under Minn. Stat. § 6.91 does not apply under this one-year levy limit. Calculation: Step 1: Calculate your allowable special levies for taxes payable in 2012 and 2013. The list of special levies available under this one-year levy limit are a subset of the special levies available under previous levy limits. These special levies are not covered by the levy limit and include levies: (1) to pay the costs of the principal and interest on bonded indebtedness or to reimburse for the amount of liquor store revenues used to pay the principal and interest due on municipal liquor store bonds in the year preceding the year for which the levy limit is calculated; (2) to pay the costs of principal and interest on certificates of indebtedness issued for any corporate purpose except for the following: (i) tax anticipation or aid anticipation certificates of indebtedness; (ii) certificates of indebtedness issued for shortages in the taconite tax distribution under Minn. Stat. § 298.28 and Minn. Stat. § 298.282; (iii) certificates of indebtedness used to fund current expenses or to pay the costs of extraordinary expenditures that result from a public emergency; or (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an insufficiency in other revenue sources, provided that nothing in this subdivision limits the special levy authorized under Minn. Stat. § 475.755; (3) to provide for the bonded indebtedness portion of payments made to another political subdivision of the state of Minnesota; (4) to fund payments made to the Minnesota State Armory Building Commission under Minn. Stat. §193.145, subd. 2, to retire the principal and interest on armory construction bonds;

2013 Law Summaries

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Page 2

Appendix A: Estimate Your 2014 Levy Limit

(5) to pay the expenses reasonably and necessarily incurred in preparing for or repairing the effects of natural disaster including the occurrence or threat of widespread or severe damage, injury, or loss of life or property resulting from natural causes, in accordance with standards formulated by the Emergency Services Division of the state Department of Public Safety, as allowed by the commissioner of revenue under Minn. Stat. § 275.74, subdivision 2; (6) to pay an economic development abatement under Minn. Stat. § 469.1815; (7) for purposes of a storm sewer improvement district under Minn. Stat. § 444.20; Step 2: Calculate your initial levy limit base. Take the greater of: payable 2012 certified net tax capacity levy plus certified 2012 LGA minus any payable 2012 amounts that would qualify as special levies OR payable 2013 certified net tax capacity levy plus 2013 certified LGA minus any 2013 amounts that would qualify as special levies. (Note that for metro cities and cities on the Iron Range, the certified levy is the amount of levy before accounting for any fiscal disparities). Step 3: Calculate your final levy limit base. Increase your initial levy limit base from Step 2 by 3 percent (multiply by 1.03). Step 4: Calculate your levy limit. The levy limit equals your city’s final levy limit base plus any voterapproved levies to exceed the levy limit under Minn. Stat. § 275.73 minus the total LGA you are certified to receive in 2014. (Note that no city’s final levy limit can be lower than the greater of 2012 or 2013 certified net tax capacity levies). Step 5: In addition to the amount of the levy limit, a city can levy amounts needed in 2014 for the special levies identified in Step 1. These are above and beyond the limited portion of the city’s levy. • • • • • • • • • • • •

A simple example of estimating a levy limit: 2012 certified levy ..................................................................................................................$350,000 Plus 2012 LGA ........................................................................................................................ +$50,000 Minus 2012 levy that would have been special levies................................................................ -$25,000 2012 Total ..............................................................................................................................$375,000 2013 certified levy ..................................................................................................................$375,000 Plus 2013 LGA ........................................................................................................................+ $55,000 Minus 2013 levy that would have been special levies................................................................- $30,000 2013 Total ..............................................................................................................................$400,000 Initial levy limit base (greater of 2012 or 2013).........................................................................$400,000 Final Levy limit base (initial levy limit base X 1.03) ....................................................................$412,000 2014 LGA ............................................................................................................................... $75,000 Levy limit (final levy limit base minus 2014 LGA but not less than the greater of 2012 or 2013 certified levy) ..$375,000 2014 tax year special levies which can be levied above the limit................................................ $35,000 2014 total levy (limited portion plus special levies)……………………………………………………………………$410,000

Note: voter approved levies assessed against referendum market value can also be added as special levies. Questions on levy limits? Contact : Gary Carlson at (651) 281-1255 or [email protected] or Rachel Walker at (651) 281-1236 or [email protected]

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Appendix B: City LGA Amounts 2013 and 2014

2014 LGA Estimates

(Based on estimates prepared by the House Research Department) Governor Dayton signed the 2013 omnibus tax bill into law as Chapter 143 on May 23, 2013. This chapter contains the first significant reform to the LGA program since 2003 as well as an increase to the appropriation for city aid payments. For 2014, the LGA distribution will be at $507.6 million, an $80.1 million increase over the 2013 certified level. In both 2015 and 2016, the appropriation grows by an additional $1.5 million (to $509.1 million and to $511.6 million respectively). Beyond 2016, the distribution is currently set to remain at $511.6 million. For comparison, in 2002 when LGA received the highest level of state funding, the formula distributed $565 million to cities across the state. The LGA calculation will continue to utilize a comparison of each city’s “need” as measured by a variety of demographic factors with its “capacity” as measured by the city’s adjusted net tax capacity multiplied by the statewide average city tax rate. If a city is unable to fund its defined “need” based on its defined “capacity,” the city will receive LGA. The amount of that need-capacity gap that is filled depends on the overall size of the pool of money to be distributed. The share of the gap filled by LGA is the same for all cities that receive LGA. If a city has no gap or if capacity exceeds its need, the city will not receive LGA. The changes to the formula made in the 2013 tax bill focus largely on defining city need. The LGA formula will now include three calculations of need based on city size. • For cities under 2,500 population: each city’s need is simply a per capita amount starting at $410 per capita and increasing to $630 per capita as city population size increases. • For cities between 2,500 and 10,000 population: three factors will be used in the calculation of city need; 1) the percent of the city’s housing stock built before 1940, 2) the average household size, and 3) the population decline (percentage) from the city’s peak population of the last forty years.

2013 Law Summaries

• For cities over 10,000 population: four factors will be used in the calculation of city need; 1) the number of jobs per capita, 2) the age of housing stock (defined as the percent of housing built before 1940, 3) the percent of housing built between 1940 and 1970, and 4) a sparsity adjustment for cities with less than 150 residents per square mile. For 2014 only, no city can receive less LGA than it is set to receive in 2013. Beginning with aid payments in 2015, city aid amounts can decrease if a city’s current year LGA exceeds its calculated need. Similar to recent formulas, there are limits to how much a city’s aid can decrease: the lesser of 5 percent of the previous year’s levy or $10 per capita. Columns in the spreadsheet Column 1: City 2011 population from the state demographer Column 2: Certified 2013 LGA amount Column 3: Estimate of 2014 LGA without the changes made by the 2013 tax bill Column 4: Estimate of 2014 LGA under Chapter 143 (the omnibus tax bill) Column 5: Change from 2013 certified to 2014 estimate under Chapter 143

Prepared by LMC with data from House Research

Page 85

2011 Population

Page 86 League of Minnesota Cities

1,710 792 1,208 2,887 2,160 430 2,590 17,994 100 7,114 662 48 12,920 116 492 366 533 30,847 3,280 17,331 49,801 1,403 74 9,381 643 2,231 448 363 1,131 522 1,679 24,803 143 1,403 1,465 246 369 1,404 645 2,588 614 414 16 877 1,111 7,620 3,525 230 181 298 4,581 91 748 6,621

571,600 208,384 362,303 0 732,618 48,881 627,315 4,724,618 28,357 0 145,081 6,423 1,204,947 35,367 43,918 55,149 125,545 0 260,224 901,095 0 876,061 24,655 0 197,165 636,892 102,139 64,584 237,341 98,560 605,415 7,122,450 26,223 209,935 299,542 28,410 100,302 384,402 198,557 655,766 128,897 57,809 2,476 42,044 289,939 0 335,228 74,065 12,520 40,424 0 19,645 180,345 54,473

2014 LGA –old law 554,500 200,464 350,223 0 711,018 45,050 601,415 4,544,678 27,521 0 138,461 6,245 1,075,747 34,207 41,855 54,003 120,215 47,632 227,424 1,486,706 0 862,031 23,915 0 190,735 614,582 97,659 61,688 254,002 95,402 588,625 6,874,420 24,793 233,012 286,671 26,619 96,612 382,233 192,107 629,886 123,497 59,776 2,351 53,195 278,829 0 299,978 71,765 10,710 39,937 0 18,735 172,865 21,799

2014 LGA –Ch 143 608,356 242,067 402,591 0 751,451 64,597 688,864 5,158,700 28,357 79,647 176,337 7,012 1,463,774 35,810 65,612 72,853 140,679 74,651 392,480 1,547,441 0 876,061 24,655 0 217,106 714,403 114,761 76,684 289,779 116,671 634,982 7,878,815 26,223 261,866 347,806 28,661 108,959 435,634 218,927 754,097 152,226 73,696 2,476 74,206 297,714 0 483,255 74,065 12,520 48,215 0 19,921 211,021 267,356

Change +36,756 +33,683 +40,288 +0 +18,833 +15,716 +61,549 +434,082 +0 +79,647 +31,256 +589 +258,827 +443 +21,694 +17,704 +15,134 +74,651 +132,256 +646,346 +0 +0 +0 +0 +19,941 +77,511 +12,622 +12,100 +52,438 +18,111 +29,567 +756,365 +0 +51,931 +48,264 +251 +8,657 +51,232 +20,370 +98,331 +23,329 +15,887 +0 +32,162 +7,775 +0 +148,027 +0 +0 +7,791 +0 +276 +30,676 +212,883

2011 Population BELLECHESTER BELLINGHAM BELTRAMI BELVIEW BEMIDJI BENA BENSON BERTHA BETHEL BIG FALLS BIG LAKE BIGELOW BIGFORK BINGHAM LAKE BIRCHWOOD BIRD ISLAND BISCAY BIWABIK BLACKDUCK BLAINE BLOMKEST BLOOMING PRAIRIE BLOOMINGTON BLUE EARTH BLUFFTON BOCK BORUP BOVEY BOWLUS BOY RIVER BOYD BRAHAM BRAINERD BRANDON BRECKENRIDGE BREEZY POINT BREWSTER BRICELYN BROOK PARK BROOKLYN CENTER BROOKLYN PARK BROOKS BROOKSTON BROOTEN BROWERVILLE BROWNS VALLEY BROWNSDALE BROWNSVILLE BROWNTON BRUNO BUCKMAN BUFFALO BUFFALO LAKE BUHL

176 167 107 383 13,528 118 3,223 498 466 235 10,164 236 443 125 870 1,032 113 987 797 58,331 158 1,993 83,671 3,348 206 106 113 801 292 47 174 1,812 13,606 491 3,377 2,388 470 368 139 30,204 76,238 142 141 745 791 583 677 462 759 102 277 15,580 723 998

2013 LGA

2014 LGA –old law

2014 LGA –Ch 143

Change

17,774 61,143 25,817 103,367 2,906,194 27,257 776,650 132,871 35,117 67,827 156,014 49,185 80,363 26,063 0 370,344 12,234 263,385 205,021 0 16,533 647,677 0 1,535,819 32,101 15,437 17,772 251,002 36,888 4,648 65,766 465,196 3,637,320 86,841 1,168,004 0 180,836 122,801 17,784 411,378 0 28,524 6,665 138,694 206,697 357,430 168,304 58,162 230,476 17,945 18,509 145,886 203,623 326,569

16,989 59,473 24,747 99,537 2,770,914 26,141 744,420 127,891 34,819 65,477 491,839 47,268 75,933 24,813 0 360,024 12,555 253,515 197,051 0 15,307 627,747 0 1,502,339 31,431 15,010 17,777 242,992 37,622 4,549 64,026 475,202 3,501,260 82,202 1,134,234 0 176,478 119,121 16,525 1,317,891 1,441,081 27,610 6,626 136,839 198,787 351,600 162,065 55,206 222,886 16,925 21,212 711,067 196,393 316,589

21,312 61,143 25,817 114,645 3,211,265 29,545 947,350 149,117 46,105 70,673 481,526 55,154 94,302 26,063 0 388,605 16,048 263,385 238,784 0 19,001 695,248 403,931 1,772,985 36,201 16,169 20,957 274,750 48,049 6,722 65,766 549,404 4,019,514 99,765 1,442,079 0 180,836 127,624 20,633 1,352,393 1,022,502 30,220 11,105 170,024 237,343 357,430 199,427 65,697 264,769 18,404 28,598 636,249 225,545 354,761

+3,538 +0 +0 +11,278 +305,071 +2,288 +170,700 +16,246 +10,988 +2,846 +325,512 +5,969 +13,939 +0 +0 +18,261 +3,814 +0 +33,763 +0 +2,468 +47,571 +403,931 +237,166 +4,100 +732 +3,185 +23,748 +11,161 +2,074 +0 +84,208 +382,194 +12,924 +274,075 +0 +0 +4,823 +2,849 +941,015 +1,022,502 +1,696 +4,440 +31,330 +30,646 +0 +31,123 +7,535 +34,293 +459 +10,089 +490,363 +21,922 +28,192

Appendix B: 2014 LGA Estimates


ADA ADAMS ADRIAN AFTON AITKIN AKELEY ALBANY ALBERT LEA ALBERTA ALBERTVILLE ALDEN ALDRICH ALEXANDRIA ALPHA ALTURA ALVARADO AMBOY ANDOVER ANNANDALE ANOKA APPLE VALLEY APPLETON ARCO ARDEN HILLS ARGYLE ARLINGTON ASHBY ASKOV ATWATER AUDUBON AURORA AUSTIN AVOCA AVON BABBITT BACKUS BADGER BAGLEY BALATON BARNESVILLE BARNUM BARRETT BARRY BATTLE LAKE BAUDETTE BAXTER BAYPORT BEARDSLEY BEAVER BAY BEAVER CREEK BECKER BEJOU BELGRADE BELLE PLAINE

2013 LGA

2011 Population

2013 Law Summaries Page 87

60,664 144 586 4,952 2,851 236 366 8,194 159 1,781 4,082 346 499 861 3,831 764 45 629 3,804 362 23,223 267 23,247 24,002 2,784 110 4,974 4,997 392 4,922 1,349 550 682 857 701 550 521 1,749 152 717 267 445 111 159 12,144 160 36 2,706 2,721 4,040 1,977 1,531 19,619 3,919

0 27,162 160,498 136,035 832,011 34,220 118,691 426,004 58,644 664,915 469,740 78,420 47,513 226,274 40,299 411,951 5,968 26,951 0 127,725 0 68,662 0 37,441 666,960 0 0 2,711,002 119,050 152,142 358,536 153,171 157,119 344,785 165,361 23,234 146,914 209,623 33,903 124,558 43,962 137,750 16,870 22,120 1,968,020 0 3,505 0 435,043 456,875 351,624 149,495 895,180 0

2014 LGA –old law 0 26,124 154,638 95,100 803,501 32,208 115,031 538,638 57,054 647,105 428,920 74,960 55,451 217,664 1,989 404,311 5,847 23,724 0 124,105 392,715 65,992 0 310,374 639,120 0 0 2,661,032 115,130 168,545 345,046 147,671 150,299 336,215 159,628 28,465 141,704 262,846 32,494 119,058 41,292 133,300 17,721 21,618 1,846,580 0 3,381 0 407,833 416,475 397,364 169,273 819,007 0

2014 LGA –Ch 143 85,825 31,076 187,035 257,063 936,661 41,902 120,051 689,424 58,644 702,405 616,263 86,599 71,454 251,382 68,063 411,951 6,378 37,282 53,441 133,908 237,521 68,662 0 462,648 751,019 0 122,925 3,063,733 125,027 314,421 396,078 158,316 192,829 356,735 194,227 43,154 161,596 272,862 35,504 153,988 53,856 149,108 20,075 23,664 2,299,108 0 3,505 0 556,239 590,142 390,663 193,122 1,404,151 0

Change +85,825 +3,914 +26,537 +121,028 +104,650 +7,682 +1,360 +263,420 +0 +37,490 +146,523 +8,179 +23,941 +25,108 +27,764 +0 +410 +10,331 +53,441 +6,183 +237,521 +0 +0 +425,207 +84,059 +0 +122,925 +352,731 +5,977 +162,279 +37,542 +5,145 +35,710 +11,950 +28,866 +19,920 +14,682 +63,239 +1,601 +29,430 +9,894 +11,358 +3,205 +1,544 +331,088 +0 +0 +0 +121,196 +133,267 +39,039 +43,627 +508,971 +0

COMFREY COMSTOCK CONGER COOK COON RAPIDS CORCORAN CORRELL COSMOS COTTAGE GROVE COTTONWOOD COURTLAND CROMWELL CROOKSTON CROSBY CROSSLAKE CRYSTAL CURRIE CUYUNA CYRUS DAKOTA DALTON DANUBE DANVERS DARFUR DARWIN DASSEL DAWSON DAYTON DEEPHAVEN DEER CREEK DEER RIVER DEERWOOD DEGRAFF DELANO DELAVAN DELHI DELLWOOD DENHAM DENNISON DENT DETROIT LAKES DEXTER DILWORTH DODGE CENTER DONALDSON DONNELLY DORAN DOVER DOVRAY DULUTH DUMONT DUNDAS DUNDEE DUNNELL

2011 Population

2013 LGA

2014 LGA –old law

2014 LGA –Ch 143

Change

382 94 147 574 61,766 5,390 34 467 34,828 1,212 606 238 7,878 2,389 2,158 22,168 231 334 287 320 253 496 96 109 351 1,473 1,533 4,743 3,643 323 929 534 112 5,510 177 69 1,064 37 212 192 8,716 340 4,075 2,688 42 240 55 741 57 86,256 97 1,402 68 165

99,593 16,780 19,961 156,578 0 0 8,253 128,232 0 259,768 61,726 24,038 3,056,748 756,240 0 1,455,066 68,556 2,164 75,669 34,858 47,177 133,480 9,517 38,379 37,512 301,387 540,099 0 0 57,092 281,538 2,495 24,544 0 48,781 15,650 0 234 8,798 41,956 690,536 70,342 493,847 624,915 4,638 50,497 12,030 93,649 13,705 27,437,478 19,699 87,420 21,200 61,112

95,773 16,119 18,491 150,838 497,492 0 7,913 123,562 0 247,648 59,320 22,976 2,977,968 732,350 0 1,233,386 66,246 1,171 72,799 34,153 44,978 128,520 8,987 37,292 36,836 319,469 524,769 0 0 54,497 272,248 3,091 23,862 68,751 47,011 14,960 0 234 10,630 40,791 603,376 66,942 453,097 598,035 4,444 48,477 11,505 90,079 13,192 27,137,478 18,729 144,119 20,520 59,462

105,802 16,780 24,200 160,936 934,494 10,454 8,280 141,232 59,623 293,138 75,819 26,305 3,512,390 814,739 0 1,643,820 69,999 7,755 81,155 41,819 55,156 147,646 9,517 38,379 46,516 359,721 575,227 30,581 0 66,317 308,879 10,833 24,544 177,696 48,781 15,650 0 234 10,617 44,787 782,184 72,139 603,803 682,356 4,844 54,194 13,133 129,012 13,705 29,030,564 19,699 149,681 21,200 61,112

+6,209 +0 +4,239 +4,358 +934,494 +10,454 +27 +13,000 +59,623 +33,370 +14,093 +2,267 +455,642 +58,499 +0 +188,754 +1,443 +5,591 +5,486 +6,961 +7,979 +14,166 +0 +0 +9,004 +58,334 +35,128 +30,581 +0 +9,225 +27,341 +8,338 +0 +177,696 +0 +0 +0 +0 +1,819 +2,831 +91,648 +1,797 +109,956 +57,441 +206 +3,697 +1,103 +35,363 +0 +1,593,086 +0 +62,261 +0 +0



BURNSVILLE BURTRUM BUTTERFIELD BYRON CALEDONIA CALLAWAY CALUMET CAMBRIDGE CAMPBELL CANBY CANNON FALLS CANTON CARLOS CARLTON CARVER CASS LAKE CEDAR MILLS CENTER CITY CENTERVILLE CEYLON CHAMPLIN CHANDLER CHANHASSEN CHASKA CHATFIELD CHICKAMAW BEACH CHISAGO CITY CHISHOLM CHOKIO CIRCLE PINES CLARA CITY CLAREMONT CLARISSA CLARKFIELD CLARKS GROVE CLEAR LAKE CLEARBROOK CLEARWATER CLEMENTS CLEVELAND CLIMAX CLINTON CLITHERALL CLONTARF CLOQUET COATES COBDEN COHASSET COKATO COLD SPRING COLERAINE COLOGNE COLUMBIA HEIGHTS COLUMBUS

2013 LGA

2011 Population

Page 88 League of Minnesota Cities

64,456 532 2,482 11,783 8,590 992 199 272 61,151 1,046 1,184 48,262 123 242 155 1,167 1,095 173 23,101 4,240 141 691 456 116 665 212 3,473 657 816 388 148 504 84 609 3,711 2,203 1,995 1,225 10,631 5,385 23,409 21,369 52 107 177 13,103 840 390 316 433 227 531 39 2,612

0 156,373 510,589 0 2,471,550 0 31,062 70,726 0 228,099 293,365 0 9,800 32,958 29,764 349,082 281,551 29,650 0 164,986 11,799 124,811 161,977 5,281 216,939 24,938 1,713,366 20,524 0 80,748 25,909 95,104 14,726 119,255 2,186,891 0 422,699 398,946 3,722,165 310,126 4,772,748 0 14,192 0 25,659 3,563,824 259,982 0 34,625 70,862 20,587 133,152 9,193 634,131

2014 LGA –old law 0 151,053 495,634 0 2,385,650 0 29,072 68,006 0 217,639 281,525 0 10,917 31,707 29,231 337,412 274,433 28,169 686,820 122,586 10,945 119,038 157,417 4,994 210,289 24,142 1,678,636 15,377 0 76,868 24,946 99,068 14,318 113,165 2,149,781 0 409,444 386,696 3,615,855 337,752 4,538,658 258,767 13,672 0 23,889 3,432,794 251,582 0 33,107 68,293 20,627 127,842 9,976 608,011

2014 LGA –Ch 143 0 172,137 599,948 23,469 2,510,643 0 33,834 73,911 0 276,644 333,396 0 13,283 37,749 29,764 388,697 320,523 34,936 225,882 206,679 13,618 160,349 168,787 7,947 240,515 29,762 2,053,883 20,524 0 93,587 28,668 119,203 15,198 146,956 2,524,120 0 494,543 439,940 3,740,908 523,012 5,290,238 245,317 14,192 0 29,195 3,622,946 288,564 0 42,008 89,868 27,322 151,208 9,602 725,335

Change +0 +15,764 +89,359 +23,469 +39,093 +0 +2,772 +3,185 +0 +48,545 +40,031 +0 +3,483 +4,791 +0 +39,615 +38,972 +5,286 +225,882 +41,693 +1,819 +35,538 +6,810 +2,666 +23,576 +4,824 +340,517 +0 +0 +12,839 +2,759 +24,099 +472 +27,701 +337,229 +0 +71,844 +40,994 +18,743 +212,886 +517,490 +245,317 +0 +0 +3,536 +59,122 +28,582 +0 +7,383 +19,006 +6,735 +18,056 +409 +91,204

FORADA FOREST LAKE FORESTON FORT RIPLEY FOSSTON FOUNTAIN FOXHOME FRANKLIN FRAZEE FREEBORN FREEPORT FRIDLEY FROST FULDA FUNKLEY GARFIELD GARRISON GARVIN GARY GAYLORD GEM LAKE GENEVA GENOLA GEORGETOWN GHENT GIBBON GILBERT GILMAN GLENCOE GLENVILLE GLENWOOD GLYNDON GOLDEN VALLEY GONVICK GOOD THUNDER GOODHUE GOODRIDGE GOODVIEW GRACEVILLE GRANADA GRAND MARAIS GRAND MEADOW GRAND RAPIDS GRANITE FALLS GRANT GRASSTON GREEN ISLE GREENBUSH GREENFIELD GREENWALD GREENWOOD GREY EAGLE GROVE CITY GRYGLA

2011 Population

2013 LGA

2014 LGA –old law

2014 LGA –Ch 143

Change

185 18,591 529 69 1,521 407 117 503 1,363 301 643 27,515 196 1,308 5 351 212 134 212 2,313 393 552 74 131 367 773 1,795 227 5,621 638 2,553 1,410 20,427 285 580 1,184 134 4,057 583 301 1,356 1,147 10,879 2,879 4,134 158 560 713 2,786 222 688 346 635 222

0 0 68,533 0 531,772 61,595 24,020 132,445 429,375 58,270 84,947 759,414 49,882 402,389 141 35,975 0 35,795 49,407 768,161 0 64,937 547 12,022 78,035 216,241 685,125 9,574 1,063,153 181,068 634,282 272,438 0 60,511 146,720 203,727 22,707 138,108 186,713 91,663 96,422 266,391 963,410 717,911 0 15,678 53,119 220,770 0 27,389 0 59,124 156,743 42,945

0 0 69,120 0 516,562 59,121 22,947 127,415 415,745 57,791 80,164 484,264 47,922 389,309 139 46,330 0 34,455 47,287 745,031 0 62,013 536 11,567 74,980 208,511 667,175 11,833 1,006,943 174,688 608,752 286,877 0 57,661 140,920 233,965 21,367 141,057 180,883 88,653 82,862 254,921 905,765 689,121 0 17,028 60,731 213,640 0 26,762 0 55,664 150,393 40,725

0 56,002 92,985 0 571,827 68,555 26,225 152,057 476,533 69,220 108,214 1,211,004 52,585 446,007 141 45,796 0 37,522 51,976 838,309 0 93,001 547 15,936 91,294 252,828 706,174 17,177 1,290,925 191,967 665,498 346,889 219,070 69,371 163,762 261,658 27,950 250,835 202,156 95,830 96,422 316,762 1,270,377 904,460 0 20,552 79,967 249,729 0 33,043 0 68,980 185,271 48,633

+0 +56,002 +24,452 +0 +40,055 +6,960 +2,205 +19,612 +47,158 +10,950 +23,267 +451,590 +2,703 +43,618 +0 +9,821 +0 +1,727 +2,569 +70,148 +0 +28,064 +0 +3,914 +13,259 +36,587 +21,049 +7,603 +227,772 +10,899 +31,216 +74,451 +219,070 +8,860 +17,042 +57,931 +5,243 +112,727 +15,443 +4,167 +0 +50,371 +306,967 +186,549 +0 +4,874 +26,848 +28,959 +0 +5,654 +0 +9,856 +28,528 +5,688



EAGAN EAGLE BEND EAGLE LAKE EAST BETHEL EAST GRAND FORKS EAST GULL LAKE EASTON ECHO EDEN PRAIRIE EDEN VALLEY EDGERTON EDINA EFFIE EITZEN ELBA ELBOW LAKE ELGIN ELIZABETH ELK RIVER ELKO NEW MARKET ELKTON ELLENDALE ELLSWORTH ELMDALE ELMORE ELROSA ELY ELYSIAN EMILY EMMONS ERHARD ERSKINE EVAN EVANSVILLE EVELETH EXCELSIOR EYOTA FAIRFAX FAIRMONT FALCON HEIGHTS FARIBAULT FARMINGTON FARWELL FEDERAL DAM FELTON FERGUS FALLS FERTILE FIFTY LAKES FINLAYSON FISHER FLENSBURG FLOODWOOD FLORENCE FOLEY

2013 LGA

2011 Population

2013 Law Summaries Page 89

63 314 62 971 58 598 15,374 514 118 689 762 301 2,947 397 126 194 1,017 1,132 315 22,217 54 2,087 1,342 249 62 1,140 122 887 708 306 804 69 433 9,545 691 265 16,313 643 38 688 781 1,805 207 684 576 710 185 303 90 88 17,701 988 1,978 2,017

17,335 0 15,455 375,642 10,985 164,085 0 58,777 42,992 88,374 231,189 72,453 63,203 111,632 2,049 45,323 320,299 141,539 48,121 0 3,830 538,040 352,569 28,981 13,871 294,846 0 265,687 214,826 57,667 251,273 10,694 107,927 331,873 287,970 59,776 7,994,316 54,550 2,746 140,126 116,309 267,164 38,852 139,624 154,315 165,544 46,655 38,035 9,065 15,629 0 331,011 476,814 360,759

2014 LGA –old law 16,733 0 15,058 365,932 10,500 158,105 0 56,324 41,890 87,399 223,569 69,443 33,733 107,662 3,249 43,383 310,129 136,935 48,000 63,673 3,691 520,101 339,149 26,971 13,251 283,446 0 256,817 207,746 54,607 243,233 10,682 103,597 236,423 281,060 57,134 7,831,186 64,343 2,599 133,733 111,693 316,933 36,782 132,784 148,555 158,444 44,805 43,239 8,165 15,060 50,000 321,131 457,576 340,589

2014 LGA –Ch 143 17,335 0 15,455 390,592 12,433 182,078 0 72,948 42,992 107,524 263,794 82,014 100,492 120,338 6,408 45,899 339,818 171,046 59,162 510,111 3,830 600,784 390,126 34,773 13,871 338,883 833 287,000 241,773 66,943 278,375 11,960 116,634 355,570 295,049 65,974 8,082,401 90,999 4,115 176,522 138,621 329,583 43,029 176,342 167,109 195,215 47,704 50,316 9,065 17,890 289,907 353,617 543,979 391,193

Change +0 +0 +0 +14,950 +1,448 +17,993 +0 +14,171 +0 +19,150 +32,605 +9,561 +37,289 +8,706 +4,359 +576 +19,519 +29,507 +11,041 +510,111 +0 +62,744 +37,557 +5,792 +0 +44,037 +833 +21,313 +26,947 +9,276 +27,102 +1,266 +8,707 +23,697 +7,079 +6,198 +88,085 +36,449 +1,369 +36,396 +22,312 +62,419 +4,177 +36,718 +12,794 +29,671 +1,049 +12,281 +0 +2,261 +289,907 +22,606 +67,165 +30,434

2011 Population HUGO HUMBOLDT HUTCHINSON IHLEN INDEPENDENCE INTERNATIONAL FALLS INVER GROVE HEIGHTS IONA IRON JUNCTION IRONTON ISANTI ISLE IVANHOE JACKSON JANESVILLE JASPER JEFFERS JENKINS JOHNSON JORDAN KANDIYOHI KARLSTAD KASOTA KASSON KEEWATIN KELLIHER KELLOGG KENNEDY KENNETH KENSINGTON KENT KENYON KERKHOVEN KERRICK KETTLE RIVER KIESTER KILKENNY KIMBALL KINBRAE KINGSTON KINNEY LACRESCENT LAFAYETTE LAKE BENTON LAKE BRONSON LAKE CITY LAKE CRYSTAL LAKE ELMO LAKE HENRY LAKE LILLIAN LAKE PARK LAKE SHORE LAKE ST CROIX BEACH LAKE WILSON

13,536 45 14,148 61 3,553 6,394 33,774 136 85 574 5,286 765 551 3,294 2,268 631 368 434 29 5,694 485 756 670 6,010 1,067 264 450 193 68 288 80 1,818 752 64 180 499 134 769 12 161 169 4,883 500 677 225 5,053 2,540 8,063 105 239 783 1,005 1,052 248

2013 LGA

2014 LGA –old law

2014 LGA –Ch 143

Change

0 12,042 1,784,272 16,654 0 3,710,994 0 37,043 12,230 114,741 313,359 25,272 203,179 1,086,755 724,872 182,806 112,493 0 7,000 0 97,952 232,848 143,296 780,209 343,738 107,307 83,859 66,764 10,330 54,270 20,567 466,643 185,283 3,489 22,510 151,029 35,924 117,942 201 12,833 59,925 422,847 120,676 198,628 71,423 610,347 621,727 0 6,578 33,155 231,084 0 25,673 76,722

0 11,592 1,806,921 16,044 0 3,647,054 0 35,683 11,847 109,001 416,394 21,383 197,669 1,053,815 702,192 176,496 108,813 0 6,771 65,493 93,907 225,288 138,273 720,109 333,068 104,667 80,575 64,834 9,650 51,519 19,767 453,930 177,763 3,207 20,710 146,039 34,584 112,551 157 12,442 58,235 374,017 115,676 191,858 69,173 559,817 596,327 0 7,813 30,765 223,254 0 42,315 74,242

0 12,302 2,213,177 16,654 0 3,968,511 0 37,234 12,315 137,845 545,474 36,767 213,187 1,290,625 775,072 206,477 116,128 5,387 7,000 237,080 114,796 260,381 168,055 982,338 378,008 107,307 93,910 66,764 10,536 60,470 21,171 516,684 217,166 5,352 27,092 165,486 35,924 146,838 201 17,977 59,925 531,684 129,923 223,629 74,541 748,389 705,898 0 10,510 39,931 253,109 0 66,312 78,109

+0 +260 +428,905 +0 +0 +257,517 +0 +191 +85 +23,104 +232,115 +11,495 +10,008 +203,870 +50,200 +23,671 +3,635 +5,387 +0 +237,080 +16,844 +27,533 +24,759 +202,129 +34,270 +0 +10,051 +0 +206 +6,200 +604 +50,041 +31,883 +1,863 +4,582 +14,457 +0 +28,896 +0 +5,144 +0 +108,837 +9,247 +25,001 +3,118 +138,042 +84,171 +0 +3,932 +6,776 +22,025 +0 +40,639 +1,387



GULLY HACKENSACK HADLEY HALLOCK HALMA HALSTAD HAM LAKE HAMBURG HAMMOND HAMPTON HANCOCK HANLEY FALLS HANOVER HANSKA HARDING HARDWICK HARMONY HARRIS HARTLAND HASTINGS HATFIELD HAWLEY HAYFIELD HAYWARD HAZEL RUN HECTOR HEIDELBERG HENDERSON HENDRICKS HENDRUM HENNING HENRIETTE HERMAN HERMANTOWN HERON LAKE HEWITT HIBBING HILL CITY HILLMAN HILLS HILLTOP HINCKLEY HITTERDAL HOFFMAN HOKAH HOLDINGFORD HOLLAND HOLLANDALE HOLLOWAY HOLT HOPKINS HOUSTON HOWARD LAKE HOYT LAKES

2013 LGA

Page 90

2011 Population


1,690 1,796 311 56,534 826 338 767 754 108 662 87 104 2,398 2,506 84 41 52 932 1,720 4,045 1,613 250 2,078 631 4,464 20,505 227 6,721 9,839 8,331 646 337 1,775 3,445 154 3,721 652 47 296 189 4,745 550 449 781 2,307 1,542 1,033 217 1,215 7,645 54 57 39,628 1,205

614,261 33,574 0 0 287,784 75,242 79,977 204,520 10,915 66,553 16,635 3,428 516,153 719,916 21,916 4,390 34,670 296,859 425,969 767,922 383,755 67,068 335,280 0 134,663 0 65,548 1,588,853 195,843 2,089,080 214,814 0 26,410 735,532 0 245,346 0 7,954 49,088 49,989 1,194,175 163,174 55,313 223,127 860,375 729,097 119,406 43,194 446,371 0 14,717 0 6,228,727 209,003

2014 LGA –old law 597,361 29,407 0 0 279,524 71,862 81,863 196,980 10,438 63,611 15,966 3,470 499,914 694,856 21,076 4,715 34,150 287,539 411,871 727,472 369,354 64,568 322,136 0 140,667 0 63,278 1,521,643 97,453 2,005,770 208,354 0 18,834 701,082 0 208,136 5,743 7,676 46,128 48,099 1,146,725 157,674 52,136 215,317 837,305 713,677 112,808 41,968 434,221 0 14,287 0 5,928,727 198,515

2014 LGA –Ch 143 650,486 47,157 0 0 304,385 86,599 96,184 210,284 10,915 79,908 17,821 5,849 535,092 785,602 21,916 5,661 34,670 322,498 491,615 910,371 436,421 71,850 385,298 0 281,197 0 66,891 1,832,138 344,818 2,435,226 233,888 0 26,410 914,704 0 384,655 23,051 8,231 56,203 52,427 1,349,783 179,497 70,073 255,952 916,863 742,726 152,986 46,801 631,385 0 14,717 0 6,818,135 257,866

Change +36,225 +13,583 +0 +0 +16,601 +11,357 +16,207 +5,764 +0 +13,355 +1,186 +2,421 +18,939 +65,686 +0 +1,271 +0 +25,639 +65,646 +142,449 +52,666 +4,782 +50,018 +0 +146,534 +0 +1,343 +243,285 +148,975 +346,146 +19,074 +0 +0 +179,172 +0 +139,309 +23,051 +277 +7,115 +2,438 +155,608 +16,323 +14,760 +32,825 +56,488 +13,629 +33,580 +3,607 +185,014 +0 +0 +0 +589,408 +48,863

2011 Population MAPLE GROVE MAPLE LAKE MAPLE PLAIN MAPLETON MAPLEVIEW MAPLEWOOD MARBLE MARIETTA MARINE ON ST CROIX MARSHALL MAYER MAYNARD MAZEPPA MCGRATH MCGREGOR MCINTOSH MCKINLEY MEADOWLANDS MEDFORD MEDICINE LAKE MEDINA MEIRE GROVE MELROSE MENAHGA MENDOTA MENDOTA HEIGHTS MENTOR MIDDLE RIVER MIESVILLE MILACA MILAN MILLERVILLE MILLVILLE MILROY MILTONA MINNEAPOLIS MINNEISKA MINNEOTA MINNESOTA CITY MINNESOTA LAKE MINNETONKA MINNETONKA BEACH MINNETRISTA MIZPAH MONTEVIDEO MONTGOMERY MONTICELLO MONTROSE MOORHEAD MOOSE LAKE MORA MORGAN MORRIS MORRISTOWN

62,436 2,081 1,786 1,761 177 38,374 700 162 688 13,767 1,756 363 844 79 390 621 128 133 1,243 371 4,916 180 3,622 1,300 204 11,098 153 304 125 2,944 365 105 184 251 419 387,873 109 1,392 201 688 50,046 544 6,450 56 5,360 2,952 12,840 2,923 38,516 2,791 3,557 896 5,343 986

2013 LGA

2014 LGA –old law

2014 LGA –Ch 143

Change

0 431,190 240,047 486,318 50,167 0 221,504 50,577 0 2,110,608 266,365 121,181 158,301 7,837 89,434 199,366 51,142 21,477 161,120 0 0 12,123 614,850 281,960 25,000 0 32,824 78,955 0 602,629 87,281 7,791 18,803 57,009 34,112 64,142,268 5,781 412,603 39,186 128,750 0 0 0 6,496 1,674,841 628,916 0 489,481 6,790,628 588,789 710,562 292,157 2,110,244 230,442

0 425,648 228,007 484,727 48,397 0 214,504 48,957 0 1,972,938 264,551 117,551 151,366 9,062 85,534 193,156 49,862 20,625 154,711 0 0 14,457 578,630 270,881 24,694 0 31,923 76,370 0 573,189 83,631 7,729 17,950 54,499 34,513 63,842,268 5,292 398,683 37,889 121,870 0 0 0 6,278 1,621,241 599,396 0 460,251 6,490,628 634,905 674,992 283,197 2,056,814 221,601

0 479,338 248,536 548,857 51,679 530,683 241,626 52,083 0 2,451,287 290,420 121,270 193,235 11,189 90,174 220,246 51,142 23,936 201,254 0 0 19,881 766,363 345,641 25,000 0 35,008 85,669 0 755,664 98,866 9,595 23,292 61,096 51,586 76,065,485 5,781 459,016 39,596 159,449 0 0 0 7,984 1,971,378 728,565 0 568,481 7,078,353 767,071 857,795 322,374 2,280,914 276,352

+0 +48,148 +8,489 +62,539 +1,512 +530,683 +20,122 +1,506 +0 +340,679 +24,055 +89 +34,934 +3,352 +740 +20,880 +0 +2,459 +40,134 +0 +0 +7,758 +151,513 +63,681 +0 +0 +2,184 +6,714 +0 +153,035 +11,585 +1,804 +4,489 +4,087 +17,474 +11,923,217 +0 +46,413 +410 +30,699 +0 +0 +0 +1,488 +296,537 +99,649 +0 +79,000 +287,725 +178,282 +147,233 +30,217 +170,670 +45,910



LAKEFIELD LAKELAND LAKELAND SHORES LAKEVILLE LAMBERTON LANCASTER LANDFALL LANESBORO LAPORTE LAPRAIRIE LASALLE LASTRUP LAUDERDALE LECENTER LENGBY LEONARD LEONIDAS LEROY LESTER PRAIRIE LESUEUR LEWISTON LEWISVILLE LEXINGTON LILYDALE LINDSTROM LINO LAKES LISMORE LITCHFIELD LITTLE CANADA LITTLE FALLS LITTLEFORK LONG BEACH LONG LAKE LONG PRAIRIE LONGVILLE LONSDALE LORETTO LOUISBURG LOWRY LUCAN LUVERNE LYLE LYND MABEL MADELIA MADISON MADISON LAKE MAGNOLIA MAHNOMEN MAHTOMEDI MANCHESTER MANHATTAN BEACH MANKATO MANTORVILLE

2013 LGA

2013 Law Summaries

2011 Population

Page 91

406 673 9,084 12,136 2,859 2,111 273 47 68 982 72 183 294 393 451 21,496 374 20,486 1,260 322 7,351 1,214 112 13,467 1,195 374 3,449 1,091 89 71 1,979 70 10,122 13,426 4,539 11,485 20,454 202 223 3,558 4,469 8,045 4,593 27,538 136 106 192 362 189 441 2,479 875 131 7,438

131,431 131,075 0 232,078 1,156,268 807,450 69,561 11,424 0 403,480 17,638 23,990 24,733 41,623 106,481 0 11,743 41,843 274,860 69,686 515,478 325,599 779 4,111,762 342,150 75,781 588,876 179,752 21,942 2,542 0 16,497 146,132 1,358,107 0 1,863,726 2,243,397 65,984 45,444 203,574 0 0 0 0 37,973 24,822 26,614 123,218 49,544 107,276 706,366 239,116 24,183 0

2014 LGA –old law 127,371 125,820 0 650,216 1,127,678 786,340 66,831 10,962 0 393,660 17,070 23,198 31,489 38,039 102,869 729,166 10,792 158,844 262,991 67,219 451,572 313,459 695 3,977,092 330,200 72,041 554,386 172,480 21,052 2,457 0 15,797 516,419 1,223,847 0 1,748,876 2,143,003 63,964 43,809 167,994 0 200,000 0 0 36,613 23,835 24,827 119,598 47,654 102,866 702,369 230,650 23,113 0

2014 LGA –Ch 143 137,148 155,950 301,146 597,006 1,280,033 863,255 69,561 11,424 0 403,480 17,638 27,215 30,488 53,935 121,770 493,111 15,815 532,795 308,291 72,942 770,851 377,596 2,483 4,222,706 376,742 88,943 631,462 225,087 23,544 4,936 0 16,497 537,119 1,558,998 0 1,863,726 2,802,295 65,984 51,981 345,508 11,565 81,551 0 106,030 39,155 25,565 33,585 123,218 52,256 122,694 772,694 260,942 26,389 0

Change +5,717 +24,875 +301,146 +364,928 +123,765 +55,805 +0 +0 +0 +0 +0 +3,225 +5,755 +12,312 +15,289 +493,111 +4,072 +490,952 +33,431 +3,256 +255,373 +51,997 +1,704 +110,944 +34,592 +13,162 +42,586 +45,335 +1,602 +2,394 +0 +0 +390,987 +200,891 +0 +0 +558,898 +0 +6,537 +141,934 +11,565 +81,551 +0 +106,030 +1,182 +743 +6,971 +0 +2,712 +15,418 +66,328 +21,826 +2,206 +0

ORONOCO ORR ORTONVILLE OSAKIS OSLO OSSEO OSTRANDER OTSEGO OTTERTAIL OWATONNA PALISADE PARK RAPIDS PARKERS PRAIRIE PAYNESVILLE PEASE PELICAN RAPIDS PEMBERTON PENNOCK PEQUOT LAKES PERHAM PERLEY PETERSON PIERZ PILLAGER PINE CITY PINE ISLAND PINE RIVER PINE SPRINGS PIPESTONE PLAINVIEW PLATO PLUMMER PLYMOUTH PORTER PRESTON PRINCETON PRINSBURG PRIOR LAKE PROCTOR QUAMBA RACINE RAMSEY RANDALL RANDOLPH RANIER RAYMOND RED LAKE FALLS RED WING REDWOOD FALLS REGAL REMER RENVILLE REVERE RICE

2011 Population

2013 LGA

2014 LGA –old law

2014 LGA –Ch 143

Change

1,303 268 1,896 1,742 330 2,430 254 13,816 576 25,572 163 3,708 1,011 2,434 241 2,476 248 509 2,176 2,995 92 197 1,401 466 3,119 3,260 940 408 4,308 3,348 319 296 71,263 180 1,322 4,698 496 23,010 3,058 123 454 23,865 651 440 609 761 1,429 16,432 5,248 33 367 1,272 95 1,279

28,182 41,927 703,420 380,867 74,947 634,438 52,825 0 0 3,153,124 14,295 314,126 225,671 679,593 19,424 908,614 25,203 109,031 59,996 459,137 22,100 45,675 362,938 124,543 426,553 498,960 247,854 0 1,535,857 544,648 22,094 49,211 0 35,295 484,980 612,831 75,659 0 955,226 15,487 61,097 0 125,534 11,015 21,685 203,926 546,204 619,586 1,075,270 2,115 56,366 408,605 20,990 146,674

39,412 39,247 684,460 363,447 71,647 611,217 50,886 278,035 0 3,143,795 13,561 316,584 215,561 655,253 23,427 883,854 24,295 104,455 93,220 429,187 21,212 43,995 351,943 120,086 395,363 466,360 238,454 0 1,492,777 511,168 25,071 46,251 0 33,495 471,760 575,900 70,699 0 924,646 15,206 59,604 281,656 128,847 13,810 20,439 196,316 531,914 666,960 1,256,032 2,095 53,084 395,885 20,040 144,703

66,651 47,502 734,798 434,105 82,194 634,438 55,718 112,705 0 3,935,875 18,675 459,585 255,925 716,093 28,856 953,189 33,030 129,109 72,385 583,097 22,100 45,675 409,776 124,651 550,707 578,190 273,999 0 1,905,268 696,828 31,643 56,166 0 35,295 493,986 813,065 89,666 0 1,019,424 19,322 72,805 91,376 162,361 22,803 45,478 234,241 582,707 1,619,586 1,398,367 2,115 64,811 444,169 21,441 167,930

+38,469 +5,575 +31,378 +53,238 +7,247 +0 +2,893 +112,705 +0 +782,751 +4,380 +145,459 +30,254 +36,500 +9,432 +44,575 +7,827 +20,078 +12,389 +123,960 +0 +0 +46,838 +108 +124,154 +79,230 +26,145 +0 +369,411 +152,180 +9,549 +6,955 +0 +0 +9,006 +200,234 +14,007 +0 +64,198 +3,835 +11,708 +91,376 +36,827 +11,788 +23,793 +30,315 +36,503 +1,000,000 +323,097 +0 +8,445 +35,564 +451 +21,256



MORTON MOTLEY MOUND MOUNDS VIEW MOUNTAIN IRON MOUNTAIN LAKE MURDOCK MYRTLE NASHUA NASHWAUK NASSAU NELSON NERSTRAND NEVIS NEW AUBURN NEW BRIGHTON NEW GERMANY NEW HOPE NEW LONDON NEW MUNICH NEW PRAGUE NEW RICHLAND NEW TRIER NEW ULM NEW YORK MILLS NEWFOLDEN NEWPORT NICOLLET NIELSVILLE NIMROD NISSWA NORCROSS NORTH BRANCH NORTH MANKATO NORTH OAKS NORTH ST PAUL NORTHFIELD NORTHOME NORTHROP NORWOOD YOUNG AMERICA NOWTHEN OAK GROVE OAK PARK HEIGHTS OAKDALE ODESSA ODIN OGEMA OGILVIE OKABENA OKLEE OLIVIA ONAMIA ORMSBY ORONO

2013 LGA

Page 92

2011 Population


35,376 1,430 95 117 14,014 107,630 1,624 4,321 2,466 11,314 657 150 103 395 2,622 22,139 33,807 490 374 1,241 3,091 1,749 808 340 336 239 227 537 541 8,333 2,287 45,505 337 2,848 61 15,963 4,325 12,796 27,147 3,967 991 86 708 43 1,047 37,652 190 1,131 178 25,118 7,312 1,869 835 285

1,218,346 237,322 14,049 5,562 1,170,849 5,101,571 133,506 309,689 105,568 0 135,555 18,964 21,702 71,101 569,076 0 0 116,916 119,605 209,265 620,496 559,018 43,944 101,319 81,277 80,121 3,257 73,496 192,791 0 294,333 0 121,650 869,374 12,070 3,554 966,004 1,579,706 0 0 175,093 16,402 169,550 7,025 150,254 0 65,258 291,361 24,244 0 0 450,020 168,619 4,344

2014 LGA –old law 918,346 236,620 13,742 5,060 1,150,446 4,801,571 153,806 284,990 211,959 0 131,078 18,561 20,918 67,293 542,856 0 0 112,016 115,865 231,349 589,586 541,528 40,797 97,919 77,917 77,731 3,225 70,334 187,381 0 287,150 0 118,280 840,894 11,774 85,723 922,754 1,585,934 0 0 165,183 15,542 162,470 6,807 167,781 0 63,358 288,633 24,461 0 0 431,330 160,269 4,155

2014 LGA –Ch 143 1,937,871 289,004 15,480 6,428 1,619,070 6,930,284 208,584 453,283 168,090 97,132 155,259 23,806 21,702 84,231 649,522 0 224,929 129,550 121,131 277,371 781,842 584,269 43,944 106,296 87,987 80,121 10,565 95,686 204,939 473,110 339,934 458,807 121,650 1,038,025 12,070 110,662 1,099,844 1,912,481 0 0 203,426 17,391 209,429 7,025 209,979 0 65,258 346,993 30,318 0 0 498,608 208,207 10,982

Change +719,525 +51,682 +1,431 +866 +448,221 +1,828,713 +75,078 +143,594 +62,522 +97,132 +19,704 +4,842 +0 +13,130 +80,446 +0 +224,929 +12,634 +1,526 +68,106 +161,346 +25,251 +0 +4,977 +6,710 +0 +7,308 +22,190 +12,148 +473,110 +45,601 +458,807 +0 +168,651 +0 +107,108 +133,840 +332,775 +0 +0 +28,333 +989 +39,879 +0 +59,725 +0 +0 +55,632 +6,074 +0 +0 +48,588 +39,588 +6,638

SLAYTON SLEEPY EYE SOBIESKI SOLWAY SOUTH HAVEN SOUTH ST PAUL SPICER SPRING GROVE SPRING HILL SPRING LAKE PARK SPRING PARK SPRING VALLEY SPRINGFIELD SQUAW LAKE ST ANTHONY ST AUGUSTA ST CHARLES ST CLAIR ST CLOUD ST FRANCIS ST HILAIRE ST JAMES ST JOSEPH ST LEO ST MARTIN ST MARY’S POINT ST MICHAEL ST PAUL ST PAUL PARK ST PETER ST ROSA ST STEPHEN ST VINCENT STACY STAPLES STARBUCK STEEN STEPHEN STEWART STEWARTVILLE STILLWATER STOCKTON STORDEN STRANDQUIST STRATHCONA STURGEON LAKE SUNBURG SUNFISH LAKE SWANVILLE TACONITE TAMARACK TAOPI TAUNTON TAYLORS FALLS

2011 Population

2013 LGA

2014 LGA –old law

2014 LGA –Ch 143

Change

2,147 3,598 197 98 189 20,275 1,164 1,324 85 6,432 1,686 2,474 2,144 109 86 3,358 3,737 871 65,633 7,255 283 4,597 6,579 99 307 370 16,536 286,367 5,304 11,459 68 853 61 1,456 2,976 1,297 179 658 567 5,972 18,299 690 216 69 44 437 100 521 349 359 98 58 136 974

762,656 1,274,191 11,997 4,975 32,626 1,663,720 45,440 367,822 2,131 0 0 797,702 875,030 9,160 7,166 10,963 757,339 182,675 10,081,386 80,929 68,008 1,336,057 645,151 16,916 42,909 0 0 50,320,488 143,307 2,616,126 0 105,818 21,076 235,912 957,573 316,109 33,495 193,225 131,959 599,307 174,580 154,893 68,812 17,869 3,915 28,838 25,134 0 85,817 92,714 15,076 9,097 43,070 156,385

741,186 1,238,211 11,838 6,375 30,908 1,599,824 38,454 354,582 3,446 258,896 0 774,585 853,590 8,688 6,919 0 719,969 176,124 9,781,386 352,507 65,766 1,290,087 579,361 16,272 41,820 0 415,766 50,020,488 205,883 2,501,536 0 101,999 20,466 228,975 927,813 303,139 32,594 186,645 126,289 541,555 290,641 151,729 66,652 17,179 4,215 36,654 24,134 0 82,327 89,124 14,828 8,866 42,076 149,408

799,335 1,411,867 18,511 9,073 34,495 2,290,358 57,262 411,369 5,191 291,257 0 860,778 911,482 10,726 9,655 55,216 860,980 231,868 11,728,245 313,455 69,996 1,565,697 873,161 19,623 46,121 0 239,129 60,423,748 459,542 2,908,494 0 146,645 21,076 281,738 1,120,083 350,548 37,680 219,586 153,700 852,606 568,571 175,912 68,812 18,785 5,896 47,793 25,365 0 90,257 92,714 16,030 9,682 43,070 170,970

+36,679 +137,676 +6,514 +4,098 +1,869 +626,638 +11,822 +43,547 +3,060 +291,257 +0 +63,076 +36,452 +1,566 +2,489 +44,253 +103,641 +49,193 +1,646,859 +232,526 +1,988 +229,640 +228,010 +2,707 +3,212 +0 +239,129 +10,103,260 +316,235 +292,368 +0 +40,827 +0 +45,826 +162,510 +34,439 +4,185 +26,361 +21,741 +253,299 +393,991 +21,019 +0 +916 +1,981 +18,955 +231 +0 +4,440 +0 +954 +585 +0 +14,585



RICHFIELD RICHMOND RICHVILLE RIVERTON ROBBINSDALE ROCHESTER ROCK CREEK ROCKFORD ROCKVILLE ROGERS ROLLINGSTONE ROOSEVELT ROSCOE ROSE CREEK ROSEAU ROSEMOUNT ROSEVILLE ROTHSAY ROUND LAKE ROYALTON RUSH CITY RUSHFORD RUSHFORD VILLAGE RUSHMORE RUSSELL RUTHTON RUTLEDGE SABIN SACRED HEART SAINT ANTHONY SAINT BONIFACIUS SAINT LOUIS PARK SANBORN SANDSTONE SARGEANT SARTELL SAUK CENTRE SAUK RAPIDS SAVAGE SCANDIA SCANLON SEAFORTH SEBEKA SEDAN SHAFER SHAKOPEE SHELLY SHERBURN SHEVLIN SHOREVIEW SHOREWOOD SILVER BAY SILVER LAKE SKYLINE

2013 LGA

2013 Law Summaries

2011 Population

Page 93

205 8,587 157 63 1,477 497 2,178 46 742 98 85 1,107 80 152 823 3,728 1,130 553 339 428 54 290 12,393 332 420 601 331 319 7,554 108 250 78 8,685 2,516 693 10,833 4,014 207 6,714 230 925 871 72 151 1,084 83 178 1,563 1,768 9,368 4,215 1,869 957 203

2,960 2,418,906 9,022 11,846 0 80,156 859,170 2,350 218,148 6,968 18,940 392,748 0 26,141 269,231 1,107,828 387,654 138,006 70,902 64,069 6,744 30,803 0 30,206 5,649 130,357 66,020 82,326 0 18,592 36,658 9,042 4,062,905 584,751 183,887 0 1,191,075 0 0 41,621 79,001 225,413 18,983 33,076 182,565 22,194 12,403 561,156 732,836 2,273,651 173,368 438,284 251,433 59,458

2014 LGA –old law 2,893 2,333,036 8,204 11,264 0 75,186 837,390 2,169 210,728 6,425 18,563 381,678 0 24,621 261,001 1,070,548 376,354 132,476 67,512 60,434 6,514 29,888 266,028 28,986 5,346 124,575 63,351 79,136 0 17,512 34,476 8,442 3,976,055 559,591 176,957 0 1,150,935 0 0 39,321 69,751 236,404 18,263 31,566 183,147 21,433 11,849 545,526 715,156 2,179,971 131,218 419,594 243,184 57,428

2014 LGA –Ch 143 6,041 2,896,081 9,022 12,469 0 87,685 908,237 2,350 247,829 6,968 18,940 415,713 0 29,319 299,306 1,457,801 421,568 144,691 75,203 77,515 7,298 37,985 24,635 33,071 15,185 161,102 67,233 89,280 0 21,717 41,425 9,987 4,930,304 594,369 210,318 76,518 1,486,209 0 0 46,872 79,001 264,715 20,063 33,295 227,211 22,781 13,524 603,251 882,836 2,617,884 299,613 472,253 285,955 62,711

Change +3,081 +477,175 +0 +623 +0 +7,529 +49,067 +0 +29,681 +0 +0 +22,965 +0 +3,178 +30,075 +349,973 +33,914 +6,685 +4,301 +13,446 +554 +7,182 +24,635 +2,865 +9,536 +30,745 +1,213 +6,954 +0 +3,125 +4,767 +945 +867,399 +9,618 +26,431 +76,518 +295,134 +0 +0 +5,251 +0 +39,302 +1,080 +219 +44,646 +587 +1,121 +42,095 +150,000 +344,233 +126,245 +33,969 +34,522 +3,253

WAUBUN WAVERLY WAYZATA WELCOME WELLS WENDELL WEST CONCORD WEST ST PAUL WEST UNION WESTBROOK WESTPORT WHALAN WHEATON WHITE BEAR LAKE WILDER WILLERNIE WILLIAMS WILLMAR WILLOW RIVER WILMONT WILTON WINDOM WINGER WINNEBAGO WINONA WINSTED WINTHROP WINTON WOLF LAKE WOLVERTON WOOD LAKE WOODBURY WOODLAND WOODSTOCK WORTHINGTON WRENSHALL WRIGHT WYKOFF WYOMING ZEMPLE ZIMMERMAN ZUMBRO FALLS ZUMBROTA TOTALS

2011 Population

2013 LGA

2014 LGA –old law

2014 LGA –Ch 143

Change

403 1,371 3,720 683 2,338 166 785 19,605 110 739 56 63 1,425 23,820 60 508 190 19,600 414 337 218 4,649 220 1,435 27,603 2,348 1,400 170 59 142 434 63,143 437 125 12,829 403 130 444 7,796 93 5,235 180 3,267

93,242 82,979 0 216,934 893,883 34,022 261,011 773,763 6,713 230,048 5,951 8,001 562,909 1,532,448 16,106 75,922 41,672 4,052,790 45,572 86,327 7,670 1,202,917 33,075 503,310 9,162,003 547,848 393,587 24,869 8,042 24,318 108,208 0 0 32,442 2,705,107 42,399 7,938 118,215 0 742 235,842 34,610 426,975

90,187 144,470 0 210,104 870,503 32,362 253,161 577,713 7,713 222,658 5,857 7,371 548,659 1,294,248 15,506 73,860 39,772 3,856,790 43,725 82,957 7,646 1,156,427 31,530 488,960 8,885,973 559,915 379,587 29,743 8,006 22,898 103,868 0 0 31,192 2,576,817 39,200 7,494 113,775 0 682 360,516 33,077 394,305

107,486 143,685 0 217,709 927,216 35,761 283,647 1,153,324 11,833 259,730 7,368 8,001 581,818 1,532,448 16,106 78,239 43,738 4,439,703 58,702 92,678 14,127 1,419,013 40,385 524,076 9,699,955 628,517 413,497 27,875 9,654 27,029 119,766 0 0 32,906 3,109,564 49,695 11,153 126,862 170,783 3,552 445,571 35,688 552,668

+14,244 +60,706 +0 +775 +33,333 +1,739 +22,636 +379,561 +5,120 +29,682 +1,417 +0 +18,909 +0 +0 +2,317 +2,066 +386,913 +13,130 +6,351 +6,457 +216,096 +7,310 +20,766 +537,952 +80,669 +19,910 +3,006 +1,612 +2,711 +11,558 +0 +0 +464 +404,457 +7,296 +3,215 +8,647 +170,783 +2,810 +209,729 +1,078 +125,693

4,371,612

427,494,640

426,438,011

507,598,012

+80,103,372



TENSTRIKE THIEF RIVER FALLS THOMSON TINTAH TONKA BAY TOWER TRACY TRAIL TRIMONT TROMMALD TROSKY TRUMAN TURTLE RIVER TWIN LAKES TWIN VALLEY TWO HARBORS TYLER ULEN UNDERWOOD UPSALA URBANK UTICA VADNAIS HEIGHTS VERGAS VERMILLION VERNDALE VERNON CENTER VESTA VICTORIA VIKING VILLARD VINING VIRGINIA WABASHA WABASSO WACONIA WADENA WAHKON WAITE PARK WALDORF WALKER WALNUT GROVE WALTERS WALTHAM WANAMINGO WANDA WARBA WARREN WARROAD WASECA WATERTOWN WATERVILLE WATKINS WATSON

2013 LGA

League of Minnesota Cities Intergovernmental Relations Department The League’s Intergovernmental Relations (IGR) staff work on legislative issues that matter to cities. Feel free to contact our IGR staff members with any questions, concerns, or suggestions regarding legislative issues.

IGR staff members and legislative issues: Gary Carlson Intergovernmental Relations Director (651) 281-1255 [email protected] www.twitter.com/garyncarlson

Patrick Hynes Intergovernmental Relations Representative (651) 281-1260 [email protected] www.twitter.com/PJHynes2

Laura Ziegler Intergovernmental Relations Liaison (651) 281-1267 [email protected] www.twitter.com/laurahziegler

Legislative issues: • Aid to cities • Civil liability • Pensions and retirement • Property tax system • Public finance

Legislative issues: • Building codes • Civil liability • Data practices • Economic development • Land use, zoning, and annexation • Pensions and retirement • Property tax system • Public finance • Tax-increment financing (TIF)

Legislative issues: • Broadband • Elections • Grassroots member advocacy • Legislative appointments • Legislative listservs • Policy committees • Policy development process • Transportation • Underground locating

Heather Cederholm Intergovernmental Relations Liaison (651) 281-1256 [email protected] www.twitter.com/hrceder Legislative issues: • Housing • Grassroots member advocacy • Legislative appointments • Legislative listservs • Libraries • Policy committees • Policy development process • Sustainable development • Tax increment financing (TIF) Anne Finn Assistant Intergovernmental Relations Director (651) 281-1263 [email protected] www.twitter.com/annemfinn Legislative issues: • Emergency management • Insurance • Pensions and retirement • Personnel • Public safety • State bonding • Transportation

2013 Law Summaries

Craig Johnson Intergovernmental Relations Representative (651) 281-1259 [email protected] www.twitter.com/cajohnson_1 Legislative issues: • Energy • Environment • Land use and annexation • Local/tribal relations • State bonding • Sustainable development • Utilities billing • Wastewater, drinking water, and stormwater Ann Lindstrom Intergovernmental Relations Representative (651) 281-1261 [email protected] www.twitter.com/AnnRL Legislative issues: • Economic development and redevelopment • Elections • Government redesign • Public safety • Regulated services and industries

Page 95

League of Minnesota Cities 145 University Avenue West St. Paul, MN 55103-2044 TEL: (651) 281-1200 (800) 925-1122 TDD: (651) 281-1290 FAX: (651) 281-1299 WEB: www.lmc.org