1.1 	A bill for an act
1.2 	relating to transportation; appropriating money for a supplemental budget for the 
1.3 	Department of Transportation, Department of Public Safety, and the Metropolitan 
1.4 	Council; modifying prior appropriations; modifying various provisions related to 
1.5 	transportation and public safety, including but not limited to an intensive driver 
1.6 	testing program, greenhouse gas emissions, electric-assisted bicycles, high voltage 
1.7 	transmission, railroad safety, and transit; establishing civil penalties; establishing 
1.8 	an advisory committee; labor and industry; making supplemental appropriation 
1.9 	changes to labor provisions; modifying combative sports regulations, construction 
1.10 	codes and licensing, Bureau of Mediation provisions, public employee labor 
1.11 	relations provisions, University of Minnesota collective bargaining units, 
1.12 	miscellaneous labor provisions, broadband and pipeline safety, employee 
1.13 	misclassification, and minors appearing in internet content; housing; modifying 
1.14 	prior appropriations; establishing new programs and modifying existing programs; 
1.15 	expanding eligible uses of housing infrastructure bonds; authorizing the issuance 
1.16 	of housing infrastructure bonds; establishing a working group and a task force; 
1.17 	authorizing rulemaking; requiring reports; appropriating money;amending 
1.18 	Minnesota Statutes 2022, sections 13.6905, by adding a subdivision; 15.082; 
1.19 	116J.395, subdivision 6; 161.14, by adding subdivisions; 161.45, by adding 
1.20 	subdivisions; 161.46, subdivision 1; 168.09, subdivision 7; 168.092; 168.301, 
1.21 	subdivision 3; 168A.10, subdivision 2; 168A.11, subdivision 1; 169.011, by adding 
1.22 	subdivisions; 169.21, subdivision 6; 169.222, subdivisions 6a, 6b; 169A.55, 
1.23 	subdivision 4; 171.306, subdivisions 1, 8; 174.02, by adding a subdivision; 174.75, 
1.24 	subdivisions 1, 2, by adding a subdivision; 177.27, subdivision 3; 179A.11, 
1.25 	subdivisions 1, 2, by adding a subdivision; 179A.12, subdivision 5; 181.171, 
1.26 	subdivision 1; 181.722; 181.723; 181.960, subdivision 3; 181A.03, by adding 
1.27 	subdivisions; 216B.17, by adding a subdivision; 216E.02, subdivision 1; 221.0255, 
1.28 	subdivisions 4, 9, by adding a subdivision; 270B.14, subdivision 17, by adding a 
1.29 	subdivision; 299J.01; 299J.02, by adding a subdivision; 299J.04, subdivision 2; 
1.30 	299J.11; 326B.081, subdivisions 3, 6, 8; 326B.082, subdivisions 1, 2, 4, 6, 7, 10, 
1.31 	11, 13, by adding a subdivision; 326B.701; 326B.802, subdivision 13; 326B.89, 
1.32 	subdivisions 1, 5; 341.28, by adding a subdivision; 341.29; 462A.02, subdivision 
1.33 	10; 462A.03, by adding subdivisions; 462A.05, subdivisions 3b, 14a, 14b, 15, 15b, 
1.34 	21, 23; 462A.07, by adding subdivisions; 462A.202, subdivision 3a; 462A.21, 
1.35 	subdivisions 7, 8b; 462A.222, by adding a subdivision; 462A.35, subdivision 2; 
1.36 	462A.37, by adding a subdivision; 462A.40, subdivisions 2, 3; 462C.02, subdivision 
1.37 	6; 469.012, subdivision 2j; 473.13, by adding a subdivision; 473.388, by adding 
1.38 	a subdivision; 473.3927; 626.892, subdivision 10; Minnesota Statutes 2023 
2.1 	Supplement, sections 116J.871, subdivision 1, as amended; 161.178; 161.46, 
2.2 	subdivision 2; 168.1259; 169.011, subdivision 27; 169A.44, subdivision 1; 
2.3 	171.0705, subdivision 2; 171.13, subdivision 1; 174.38, subdivisions 3, 6; 174.634, 
2.4 	subdivision 2, by adding a subdivision; 177.27, subdivisions 1, 2, 4, 7; 177.42, 
2.5 	subdivision 2; 179A.03, subdivision 14; 179A.041, subdivision 10; 179A.06, 
2.6 	subdivision 6; 179A.07, subdivisions 8, 9; 179A.10, subdivision 2; 179A.12, 
2.7 	subdivisions 2a, 6, 11; 219.015, subdivision 2; 326B.106, subdivision 1; 326B.802, 
2.8 	subdivision 15; 341.25; 341.28, subdivision 5; 341.30, subdivision 4; 341.321; 
2.9 	341.33, by adding a subdivision; 341.355; 462A.05, subdivisions 14, 45; 462A.22, 
2.10 	subdivision 1; 462A.37, subdivisions 2, 5; 462A.39, subdivision 2; 473.4051, by 
2.11 	adding a subdivision; 477A.35, subdivisions 1, 2, 4, 5, 6, by adding a subdivision; 
2.12 	Laws 2021, First Special Session chapter 5, article 1, section 2, subdivision 2; 
2.13 	Laws 2023, chapter 37, article 1, section 2, subdivisions 1, 2, 17, 29, 32; article 
2.14 	2, section 12, subdivision 2; Laws 2023, chapter 52, article 19, section 120; Laws 
2.15 	2023, chapter 53, article 19, sections 2, subdivisions 1, 3, 5; 4; proposing coding 
2.16 	for new law in Minnesota Statutes, chapters 116J; 161; 168; 169; 171; 174; 181; 
2.17 	181A; 219; 325F; 462A; 469; 504B; repealing Minnesota Statutes 2022, sections 
2.18 	116J.398; 168.1297; 179.81; 179.82; 179.83, subdivision 1; 179.84, subdivision 
2.19 	1; 179.85; Minnesota Rules, parts 5520.0100; 5520.0110; 5520.0120; 5520.0200; 
2.20 	5520.0250; 5520.0300; 5520.0500; 5520.0520; 5520.0540; 5520.0560; 5520.0600; 
2.21 	5520.0620; 5520.0700; 5520.0710; 5520.0800; 7410.6180.
2.22 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.23 	ARTICLE 1
2.24 	TRANSPORTATION APPROPRIATIONS

2.25	Section 1. TRANSPORTATION APPROPRIATIONS.
 	
2.26 	The sums shown in the columns marked "Appropriations" are added to the appropriations 
2.27 	in Laws 2023, chapter 68, article 1, to the agencies and for the purposes specified in this 
2.28 	article. The appropriations are from the trunk highway fund, or another named fund, and 
2.29 	are available for the fiscal years indicated for each purpose. Amounts for "Total 
2.30 	Appropriation" and sums shown in the corresponding columns marked "Appropriations by 
2.31 	Fund" are summary only and do not have legal effect. Unless specified otherwise, the 
2.32 	amounts in fiscal year 2025 under "Appropriations by Fund" are added to the base within 
2.33 	the meaning of Minnesota Statutes, section 16A.11, subdivision 3, by fund. The figures 
2.34 	"2024" and "2025" used in this article mean that the appropriations listed under them are 
2.35 	available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. "Each 
2.36 	year" is each of fiscal years 2024 and 2025.

2.37				APPROPRIATIONS
	
2.38				Available for the Year
	
2.39				Ending June 30
	
2.40					2024
		2025

2.41
2.42	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

2.43	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	91,500,000

3.1	Appropriations by Fund
	
3.2		2024
	2025
	
3.3	General
	-0-
	9,000,000
	
3.4	Trunk Highway
	-0-
	78,750,000
	
3.5	Special Revenue
	-0-
	3,750,000
	
3.6 	The appropriations in this section are to the 
3.7 	commissioner of transportation.
3.8 	The amounts that may be spent for each 
3.9 	purpose are specified in the following 
3.10 	subdivisions.

3.11	Subd. 2.State Roads
 					
3.12	(a) Operations and Maintenance
		-0-
		1,300,000
	
3.13 	$300,000 in fiscal year 2025 is for rumble 
3.14 	strips under Minnesota Statutes, section 
3.15 	161.1258.
3.16 	$1,000,000 in fiscal year 2025 is for 
3.17 	landscaping improvements under the 
3.18 	Department of Transportation's community 
3.19 	roadside landscape partnership program, with 
3.20 	prioritization of tree planting as feasible.

3.21	(b) Program Planning and Research
		-0-
		3,800,000
	
3.22 	$3,000,000 in fiscal year 2025 is for 
3.23 	implementation and development of statewide 
3.24 	and regional travel demand modeling related 
3.25 	to the requirements under Minnesota Statutes, 
3.26 	section 161.178. This is a onetime 
3.27 	appropriation and is available until June 30, 
3.28 	2026.
3.29 	$800,000 in fiscal year 2025 is for one or more 
3.30 	grants to metropolitan planning organizations 
3.31 	outside the metropolitan area, as defined in 
3.32 	Minnesota Statutes, section 473.121, 
3.33 	subdivision 2, for modeling activities related 
3.34 	to the requirements under Minnesota Statutes, 
4.1 	section 161.178. This is a onetime 
4.2 	appropriation.

4.3	Subd. 3.Small Cities
 		-0-
		9,000,000
	
4.4 	$9,000,000 in fiscal year 2025 is from the 
4.5 	general fund for the small cities assistance 
4.6 	program under Minnesota Statutes, section 
4.7 	162.145. This appropriation must be allocated 
4.8 	and distributed in the July 2024 payment. This 
4.9 	is a onetime appropriation.

4.10	Subd. 4.Trunk Highway 65
 		-0-
		1,000,000
	
4.11 	$1,000,000 in fiscal year 2025 is from the 
4.12 	trunk highway fund for one or more grants to 
4.13 	the city of Blaine, Anoka County, or both, for 
4.14 	predesign and design of intersection safety 
4.15 	improvements along marked Trunk Highway 
4.16 	65 from the interchange with marked U.S. 
4.17 	Highway 10 to 99th Avenue Northeast in the 
4.18 	city of Blaine. This is a onetime appropriation.

4.19	Subd. 5.Mississippi Skyway Trail Bridge
 		-0-
		3,750,000
	
4.20 	Notwithstanding the requirements under 
4.21 	Minnesota Statutes, section 174.38, 
4.22 	subdivision 3, paragraph (a), this appropriation 
4.23 	is from the active transportation account in 
4.24 	the special revenue fund for a grant to the city 
4.25 	of Ramsey for design, environmental analysis, 
4.26 	site preparation, and construction of the 
4.27 	Mississippi Skyway Trail Bridge over marked 
4.28 	U.S. Highways 10 and 169 in Ramsey to 
4.29 	provide for a grade-separated crossing by 
4.30 	pedestrians and nonmotorized vehicles. This 
4.31 	is a onetime appropriation.

4.32	Subd. 6.High-Priority Bridge
 		-0-
		40,000,000
	
4.33 	This appropriation is for the acquisition, 
4.34 	environmental analysis, predesign, design, 
5.1 	engineering, construction, reconstruction, and 
5.2 	improvement of trunk highway bridges, 
5.3 	including design-build contracts, program 
5.4 	delivery, consultant usage to support these 
5.5 	activities, and the cost of payments to 
5.6 	landowners for lands acquired for highway 
5.7 	rights-of-way. Projects under this 
5.8 	appropriation must follow eligible investment 
5.9 	priorities identified in the Minnesota state 
5.10 	highway investment plan under Minnesota 
5.11 	Statutes, section 174.03, subdivision 1c. The 
5.12 	commissioner may use up to 17 percent of this 
5.13 	appropriation for program delivery. This is a 
5.14 	onetime appropriation.

5.15	Subd. 7.Drainage Asset Management Program
 		-0-
		4,800,000
	
5.16 	This appropriation is for predesign, design, 
5.17 	construction, and equipping of one or more 
5.18 	drainage asset management projects. Drainage 
5.19 	asset management projects may include but 
5.20 	are not limited to repairing and replacing 
5.21 	highway culverts, storm sewer system 
5.22 	rehabilitations, and flood resiliency 
5.23 	improvements. The commissioner may use up 
5.24 	to 17 percent of this appropriation for program 
5.25 	delivery. This is a onetime appropriation.

5.26	Subd. 8.Truck Parking Safety Improvements
 		-0-
		7,750,000
	
5.27 	This appropriation is for land acquisition, 
5.28 	predesign, design, and construction of 
5.29 	expanded truck parking at Big Spunk in Avon 
5.30 	and Enfield Rest Areas and for the 
5.31 	rehabilitation or replacement of truck parking 
5.32 	information management system equipment 
5.33 	at Department of Transportation-owned 
5.34 	parking rest area locations. This is a onetime 
5.35 	appropriation.

6.1	Subd. 9.Facilities Capital Program
 		-0-
		20,100,000
	
6.2 	This appropriation is for the transportation 
6.3 	facilities capital program under Minnesota 
6.4 	Statutes, section 174.595. This is a onetime 
6.5 	appropriation.

6.6	Sec. 3. METROPOLITAN COUNCIL
 	$
	-0-
	$
	1,000,000
	
6.7 	The appropriation in this section is from the 
6.8 	general fund to the Metropolitan Council.
6.9 	$1,000,000 in fiscal year 2025 is for a grant 
6.10 	to the Ramsey County Regional Railroad 
6.11 	Authority for a portion of the costs of 
6.12 	insurance coverage related to rail-related 
6.13 	incidents occurring at Union Depot in the city 
6.14 	of St. Paul. This is a onetime appropriation.

6.15	Sec. 4. DEPARTMENT OF PUBLIC SAFETY

6.16	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	5,380,000
	
6.17 	The appropriations in this section are from the 
6.18 	driver and vehicle services operating account 
6.19 	in the special revenue fund to the 
6.20 	commissioner of public safety.
6.21 	The amounts that may be spent for each 
6.22 	purpose are specified in the following 
6.23 	subdivisions.

6.24	Subd. 2.Driver Services
 		-0-
		4,180,000
	
6.25 	$1,211,000 in fiscal year 2025 is for staff and 
6.26 	related operating costs for the intensive testing 
6.27 	program under Minnesota Statutes, section 
6.28 	171.307.
6.29 	$2,969,000 in fiscal year 2025 is for staff and 
6.30 	related operating costs to support testing at 
6.31 	driver's license examination stations.
7.1 	The base from the driver and vehicle services 
7.2 	operating account in the special revenue fund 
7.3 	is increased by $3,903,000 in fiscal year 2026 
7.4 	and $3,763,000 in fiscal year 2027.

7.5	Subd. 3.Traffic Safety
 		-0-
		1,200,000
	
7.6 	$1,200,000 in fiscal year 2025 is for the Lights 
7.7 	On grant program under Minnesota Statutes, 
7.8 	section 169.515. The commissioner, through 
7.9 	the Office of Traffic Safety, must contract with 
7.10 	the Lights On! microgrant program to 
7.11 	administer and operate the grant program. This 
7.12 	is a onetime appropriation and is available 
7.13 	until June 30, 2026.

7.14 	Sec. 5. Laws 2021, First Special Session chapter 5, article 1, section 2, subdivision 2, is 
7.15 	amended to read:

7.16	Subd. 2.Multimodal Systems
 					
7.17 	(a) Aeronautics

7.18	(1) Airport Development and Assistance
		24,198,000
		18,598,000

7.19	Appropriations by Fund
	
7.20		2022
	2023
	
7.21	General
	5,600,000
	-0-
	
7.22	Airports
	18,598,000
	18,598,000
	
7.23 	This appropriation is from the state airports 
7.24 	fund and must be spent according to 
7.25 	Minnesota Statutes, section 360.305, 
7.26 	subdivision 4.
7.27 	$5,600,000 in fiscal year 2022 is from the 
7.28 	general fund for a grant to the city of Karlstad 
7.29 	for the acquisition of land, predesign, design, 
7.30 	engineering, and construction of a primary 
7.31 	airport runway. This appropriation is for Phase 
7.32 	1 of the project.
8.1 	Notwithstanding Minnesota Statutes, section 
8.2 	16A.28, subdivision 6, this appropriation is 
8.3 	available for five years after the year of the 
8.4 	appropriation. If the appropriation for either 
8.5 	year is insufficient, the appropriation for the 
8.6 	other year is available for it.
8.7 	If the commissioner of transportation 
8.8 	determines that a balance remains in the state 
8.9 	airports fund following the appropriations 
8.10 	made in this article and that the appropriations 
8.11 	made are insufficient for advancing airport 
8.12 	development and assistance projects, an 
8.13 	amount necessary to advance the projects, not 
8.14 	to exceed the balance in the state airports fund, 
8.15 	is appropriated in each year to the 
8.16 	commissioner and must be spent according to 
8.17 	Minnesota Statutes, section 360.305, 
8.18 	subdivision 4. Within two weeks of a 
8.19 	determination under this contingent 
8.20 	appropriation, the commissioner of 
8.21 	transportation must notify the commissioner 
8.22 	of management and budget and the chairs, 
8.23 	ranking minority members, and staff of the 
8.24 	legislative committees with jurisdiction over 
8.25 	transportation finance concerning the funds 
8.26 	appropriated. Funds appropriated under this 
8.27 	contingent appropriation do not adjust the base 
8.28 	for fiscal years 2024 and 2025.

8.29	(2) Aviation Support Services
		8,332,000
		8,340,000

8.30	Appropriations by Fund
	
8.31		2022
	2023
	
8.32	General
	1,650,000
	1,650,000
	
8.33	Airports
	6,682,000
	6,690,000
	
8.34 	$28,000 in fiscal year 2022 and $36,000 in 
8.35 	fiscal year 2023 are from the state airports 
9.1 	fund for costs related to regulating unmanned 
9.2 	aircraft systems.

9.3	(3) Civil Air Patrol
		80,000
		80,000
	
9.4 	This appropriation is from the state airports 
9.5 	fund for the Civil Air Patrol.

9.6	(b) Transit and Active Transportation
		23,501,000
		18,201,000
	
9.7 	This appropriation is from the general fund.
9.8 	$5,000,000 in fiscal year 2022 is for the active 
9.9 	transportation program under Minnesota 
9.10 	Statutes, section 174.38. This is a onetime 
9.11 	appropriation and is available until June 30, 
9.12 	2025.
9.13 	$300,000 in fiscal year 2022 is for a grant to 
9.14 	the 494 Corridor Commission. The 
9.15 	commissioner must not retain any portion of 
9.16 	the funds appropriated under this section. The 
9.17 	commissioner must make grant payments in 
9.18 	full by December 31, 2021. Funds under this 
9.19 	grant are for programming and service 
9.20 	expansion to assist companies and commuters 
9.21 	in telecommuting efforts and promotion of 
9.22 	best practices. A grant recipient must provide 
9.23 	telework resources, assistance, information, 
9.24 	and related activities on a statewide basis. This 
9.25 	is a onetime appropriation.

9.26	(c) Safe Routes to School
		5,500,000
		500,000
	
9.27 	This appropriation is from the general fund 
9.28 	for the safe routes to school program under 
9.29 	Minnesota Statutes, section 174.40.
9.30 	If the appropriation for either year is 
9.31 	insufficient, the appropriation for the other 
9.32 	year is available for it.

9.33	(d) Passenger Rail
		10,500,000
		500,000
	
10.1 	This appropriation is from the general fund 
10.2 	for passenger rail activities under Minnesota 
10.3 	Statutes, sections 174.632 to 174.636.
10.4 	$10,000,000 in fiscal year 2022 is for final 
10.5 	design and construction to provide for a 
10.6 	second daily Amtrak train service between 
10.7 	Minneapolis and St. Paul and Chicago. The 
10.8 	commissioner may expend funds for program 
10.9 	delivery and administration from this amount. 
10.10 	This is a onetime appropriation and is 
10.11 	available until June 30, 2025.

10.12	(e) Freight
		8,342,000
		7,323,000

10.13	Appropriations by Fund
	
10.14		2022
	2023
	
10.15	General
	2,464,000
	1,445,000
	
10.16	Trunk Highway
	5,878,000
	5,878,000
	
10.17 	$1,000,000 in fiscal year 2022 is from the 
10.18 	general fund for procurement costs of a 
10.19 	statewide freight network optimization tool. 
10.20 	This is a onetime appropriation and is 
10.21 	available until June 30, 2023.
10.22 	$350,000 in fiscal year 2022 and $287,000 in 
10.23 	fiscal year 2023 are from the general fund for 
10.24 	two additional rail safety inspectors in the state 
10.25 	rail safety inspection program under 
10.26 	Minnesota Statutes, section 219.015. In each 
10.27 	year, the commissioner must not increase the 
10.28 	total assessment amount under Minnesota 
10.29 	Statutes, section 219.015, subdivision 2, from 
10.30 	the most recent assessment amount.

10.31 	Sec. 6. APPROPRIATION CANCELLATION.
 10.32 	$8,000,000 of the appropriation in fiscal year 2024 from the general fund for 
10.33 	Infrastructure Investment and Jobs Act (IIJA) discretionary matches under Laws 2023, 
11.1 	chapter 68, article 1, section 2, subdivision 5, paragraph (a), is canceled to the general fund 
11.2 	on June 29, 2024.

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

11.4 	ARTICLE 2
11.5 	TRANSPORTATION FINANCE

11.6 	Section 1. Minnesota Statutes 2022, section 13.6905, is amended by adding a subdivision 
11.7 	to read:
11.8 		Subd. 38.Intensive testing program data. Data on participants in the intensive testing 
11.9 	program are governed by section 171.307, subdivision 7.

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

11.11 	Sec. 2. [161.1258] RUMBLE STRIPS.
11.12 	(a) The commissioner must maintain transverse rumble strips in association with each 
11.13 	stop sign that is located (1) on a trunk highway segment with a speed limit of at least 55 
11.14 	miles per hour, and (2) outside the limits of a statutory or home rule charter city.
11.15 	(b) The commissioner must meet the requirements under paragraph (a) at each applicable 
11.16 	location by the earlier of August 1, 2034, or the date of substantial completion of any 
11.17 	construction, resurfacing, or reconditioning at the location.

11.18 	Sec. 3. Minnesota Statutes 2022, section 161.14, is amended by adding a subdivision to 
11.19 	read:
11.20 		Subd. 105.Mayor Dave Smiglewski Memorial Bridge. The bridge on marked U.S. 
11.21 	Highway 212 over the Minnesota River in the city of Granite Falls is designated as "Mayor 
11.22 	Dave Smiglewski Memorial Bridge." Subject to section 161.139, the commissioner must 
11.23 	adopt a suitable design to mark the bridge and erect appropriate signs.

11.24 	Sec. 4. Minnesota Statutes 2022, section 161.14, is amended by adding a subdivision to 
11.25 	read:
11.26 		Subd. 106.Gopher Gunners Memorial Bridge. (a) The bridge on marked Trunk 
11.27 	Highway 55 and marked Trunk Highway 62 over the Minnesota River, commonly known 
11.28 	as the Mendota Bridge, is designated as "Gopher Gunners Memorial Bridge." 
11.29 	Notwithstanding section 161.139, the commissioner must adopt a suitable design to mark 
11.30 	this bridge and erect appropriate signs.
12.1 	(b) The adjutant general of the Department of Military Affairs must reimburse the 
12.2 	commissioner of transportation for costs incurred under this subdivision.

12.3 	Sec. 5. Minnesota Statutes 2023 Supplement, section 161.178, is amended to read:
12.4 	161.178 TRANSPORTATION GREENHOUSE GAS EMISSIONS IMPACT 
12.5 	ASSESSMENT.
12.6 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
12.7 	the meanings given.
12.8 	(b) "Applicable entity" means the commissioner with respect to a capacity expansion
12.9 	project or portfolio for inclusion in the state transportation improvement program or a 
12.10 	metropolitan planning organization with respect to a capacity expansion project or portfolio
12.11 	for inclusion in the appropriate metropolitan transportation improvement program.
12.12 	(c) "Assessment" means the capacity expansion impact assessment under this section.
12.13 	(d) "Capacity expansion project" means a project for trunk highway construction or 
12.14 	reconstruction that:
12.15 	(1) is a major highway project, as defined in section 174.56, subdivision 1, paragraph 
12.16 	(b); and
12.17 	(2) adds highway traffic capacity or provides for grade separation of motor vehicle traffic 
12.18 	at an intersection, excluding auxiliary lanes with a length of less than 2,500 feet.
12.19 	(e) "Greenhouse gas emissions" includes those emissions described in section 216H.01, 
12.20 	subdivision 2.
12.21 		Subd. 2.Project or portfolio assessment. (a) Prior to inclusion of a capacity expansion
12.22 	project or portfolio in the state transportation improvement program or in a metropolitan 
12.23 	transportation improvement program, the applicable entity must perform a capacity expansion
12.24 	an impact assessment of the project or portfolio. Following the assessment, the applicable 
12.25 	entity must determine if the project conformsor portfolio is proportionally in conformance
12.26 	with:
12.27 	(1) the greenhouse gas emissions reduction targets under section 174.01, subdivision 3; 
12.28 	and
12.29 	(2) the vehicle miles traveled reduction targets established in the statewide multimodal 
12.30 	transportation plan under section 174.03, subdivision 1a.
13.1 	(b) If the applicable entity determines that the capacity expansion project or portfolio is 
13.2 	not in conformance with paragraph (a), the applicable entity must:
13.3 	(1) alter the scope or design of the project or any number of projects, remove one or 
13.4 	more projects from the portfolio, or undertake a combination, and subsequently perform a 
13.5 	revised assessment that meets the requirements under this section;
13.6 	(2) interlink sufficient impact mitigation as provided in subdivision 4; or
13.7 	(3) halt project development and disallow inclusion of the project or portfolio in the 
13.8 	appropriate transportation improvement program.
13.9 		Subd. 2a.Applicable projects. (a) For purposes of this section:
13.10 	(1) prior to the date established under paragraph (b), a project or portfolio is a capacity 
13.11 	expansion project; and
13.12 	(2) on and after the date established under paragraph (b), a project or portfolio is a 
13.13 	capacity expansion project or a collection of trunk highway and multimodal projects for a 
13.14 	fiscal year and specific region.
13.15 	(b) The commissioner must establish a date to implement impact assessments on the 
13.16 	basis of assessing a portfolio or program of projects instead of on a project-by-project basis. 
13.17 	The date must be:
13.18 	(1) August 1, 2027, which applies to projects that first enter the appropriate transportation 
13.19 	improvement program for fiscal year 2031 or a subsequent year; or
13.20 	(2) as established by the commissioner, if the commissioner:
13.21 	(i) consults with metropolitan planning organizations;
13.22 	(ii) prioritizes and makes reasonable efforts to meet the date under clause (1) or an earlier 
13.23 	date;
13.24 	(iii) determines that the date established under this clause is the earliest practicable in 
13.25 	which the necessary models and tools are sufficient for analysis under this section; and
13.26 	(iv) submits a notice to the chairs and ranking minority members of the legislative 
13.27 	committees and divisions with jurisdiction over transportation finance and policy, which 
13.28 	must identify the date established and summarize the efforts under item (ii) and the 
13.29 	determination under item (iii).
13.30 		Subd. 3.Assessment requirements. (a) The commissioner must establish a process to 
13.31 	perform capacity expansion impact assessments. An assessment must provide for the 
14.1 	determination under subdivision 2. implement the requirements under this section, which 
14.2 	includes:
14.3 	(1) any necessary policies, procedures, manuals, and technical specifications;
14.4 	(2) procedures to perform an impact assessment that provide for the determination under 
14.5 	subdivision 2;
14.6 	(3) in consultation with the technical advisory committee under section 161.1782, criteria 
14.7 	for identification of a capacity expansion project; and
14.8 	(4) related data reporting from local units of government on local multimodal 
14.9 	transportation systems and local project impacts on greenhouse gas emissions and vehicle 
14.10 	miles traveled.
14.11 	(b) Analysis under an assessment must include but is not limited to estimates resulting 
14.12 	from the a project or portfolio for the following:
14.13 	(1) greenhouse gas emissions over a period of 20 years; and
14.14 	(2) a net change in vehicle miles traveled for the affected network.; and
14.15 	(3) impacts to trunk highways and related impacts to local road systems, on a local, 
14.16 	regional, or statewide basis, as appropriate.
14.17 		Subd. 4.Impact mitigation; interlinking. (a) To provide for impact mitigation, the 
14.18 	applicable entity must interlink the capacity expansion project or portfolio as provided in 
14.19 	this subdivision.
14.20 	(b) Impact mitigation is sufficient under subdivision 2, paragraph (b), if the capacity 
14.21 	expansion project or portfolio is interlinked to mitigation offset actions such that the total 
14.22 	greenhouse gas emissions reduction from the mitigation offset actions, after accounting for 
14.23 	the greenhouse gas emissions otherwise resulting from the capacity expansion project or 
14.24 	portfolio, is consistent with meeting the targets specified under subdivision 2, paragraph 
14.25 	(a). Each comparison under this paragraph must be performed over equal comparison periods.
14.26 	(c) A mitigation An offset action consists of a project, program, or operations 
14.27 	modification, or mitigation plan in one or more of the following areas:
14.28 	(1) transit expansion, including but not limited to regular route bus, arterial bus rapid 
14.29 	transit, highway bus rapid transit, rail transit, and intercity passenger rail;
14.30 	(2) transit service improvements, including but not limited to increased service level, 
14.31 	transit fare reduction, and transit priority treatments;
15.1 	(3) active transportation infrastructure;
15.2 	(4) micromobility infrastructure and service, including but not limited to shared vehicle 
15.3 	services;
15.4 	(5) transportation demand management, including but not limited to vanpool and shared 
15.5 	vehicle programs, remote work, and broadband access expansion;
15.6 	(6) parking management, including but not limited to parking requirements reduction 
15.7 	or elimination and parking cost adjustments;
15.8 	(7) land use, including but not limited to residential and other density increases, mixed-use 
15.9 	development, and transit-oriented development;
15.10 	(8) infrastructure improvements related to traffic operations, including but not limited 
15.11 	to roundabouts and reduced conflict intersections; and
15.12 	(9) natural systems, including but not limited to prairie restoration, reforestation, and 
15.13 	urban green space; and
15.14 	(10) as specified by the commissioner in the manner provided under paragraph (e).
15.15 	(d) A mitigation An offset action may be identified as interlinked to the capacity 
15.16 	expansion project or portfolio if:
15.17 	(1) there is a specified project, program, or modification, or mitigation plan;
15.18 	(2) the necessary funding sources are identified and sufficient amounts are committed;
15.19 	(3) the mitigation is localized as provided in subdivision 5; and
15.20 	(4) procedures are established to ensure that the mitigation action remains in substantially 
15.21 	the same form or a revised form that continues to meet the calculation under paragraph (b).
15.22 	(e) The commissioner may authorize additional offset actions under paragraph (c) if:
15.23 	(1) the offset action is reviewed and recommended by the technical advisory committee 
15.24 	under section 161.1782; and
15.25 	(2) the commissioner determines that the offset action is directly related to reduction in 
15.26 	the transportation sector of greenhouse gas emissions or vehicle miles traveled.
15.27 		Subd. 5.Impact mitigation; localization. (a) A mitigation An offset action under 
15.28 	subdivision 4 must be localized in the following priority order:
15.29 	(1) if the offset action is for one project, within or associated with at least one of the 
15.30 	communities impacted by the capacity expansion project;
16.1 	(2) if clause (1) does not apply or there is not a reasonably feasible location under clause 
16.2 	(1), in areas of persistent poverty or historically disadvantaged communities, as measured 
16.3 	and defined in federal law, guidance, and notices of funding opportunity;
16.4 	(3) if there is not a reasonably feasible location under clauses (1) and (2), in the region 
16.5 	of the capacity expansion project or portfolio; or
16.6 	(4) if there is not a reasonably feasible location under clauses (1) to (3), on a statewide 
16.7 	basis.
16.8 	(b) The applicable entity must include an explanation regarding the feasibility and 
16.9 	rationale for each mitigation action located under paragraph (a), clauses (2) to (4).
16.10 		Subd. 6.Public information. The commissioner must publish information regarding 
16.11 	capacity expansion impact assessments on the department's website. The information must 
16.12 	include:
16.13 	(1) for each project evaluated separately under this section, identification of capacity 
16.14 	expansion projects the project; and
16.15 	(2) for each project evaluated separately, a summary that includes an overview of the 
16.16 	expansion impact assessment, the impact determination by the commissioner, and project 
16.17 	disposition, including a review of any mitigation offset actions.;
16.18 	(3) for each portfolio of projects, an overview of the projects, the impact determination 
16.19 	by the commissioner, and a summary of any offset actions;
16.20 	(4) a review of any interpretation of or additions to offset actions under subdivision 4;
16.21 	(5) identification of the date established by the commissioner under subdivision 2a, 
16.22 	paragraph (b); and
16.23 	(6) a summary of the activities of the technical advisory committee under section 
16.24 	161.1782, including but not limited to any findings or recommendations made by the advisory 
16.25 	committee.
16.26 		Subd. 7.Safety and well-being. The requirements of this section are in addition to and 
16.27 	must not supplant the safety and well-being goals established under section 174.01, 
16.28 	subdivision 2, clauses (1) and (2).

16.29 	EFFECTIVE DATE. This section is effective February 1, 2025. This section does not 
16.30 	apply to a capacity expansion project that was either included in the state transportation 
16.31 	improvement program or has been submitted for approval of the geometric layout before 
16.32 	February 1, 2025.

17.1 	Sec. 6. [161.1782] TRANSPORTATION IMPACT ASSESSMENT; TECHNICAL 
17.2 	ADVISORY COMMITTEE.
17.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
17.4 	the meanings given.
17.5 	(b) "Advisory committee" means the technical advisory committee established in this 
17.6 	section.
17.7 	(c) "Project or portfolio" is as provided in section 161.178.
17.8 		Subd. 2.Establishment. The commissioner must establish a technical advisory committee 
17.9 	to assist in implementation review related to the requirements under section 161.178.
17.10 		Subd. 3.Membership; appointments. The advisory committee is composed of the 
17.11 	following members:
17.12 	(1) one member from the Department of Transportation, appointed by the commissioner 
17.13 	of transportation;
17.14 	(2) one member from the Pollution Control Agency, appointed by the commissioner of 
17.15 	the Pollution Control Agency;
17.16 	(3) one member from the Metropolitan Council, appointed by the chair of the 
17.17 	Metropolitan Council;
17.18 	(4) one member from the Center for Transportation Studies, appointed by the president 
17.19 	of the University of Minnesota;
17.20 	(5) one member representing metropolitan planning organizations outside the metropolitan 
17.21 	area, as defined in section 473.121, subdivision 2, appointed by the Association of 
17.22 	Metropolitan Planning Organizations; and
17.23 	(6) up to four members who are not employees of the state, with no more than two who 
17.24 	are employees of a political subdivision, appointed by the commissioner of transportation.
17.25 		Subd. 4.Membership; requirements. (a) To be eligible for appointment to the advisory 
17.26 	committee, an individual must have experience or expertise sufficient to provide assistance 
17.27 	in implementation or technical review related to the requirements under section 161.178. 
17.28 	Each appointing authority must consider appointment of individuals with expertise in travel 
17.29 	demand modeling, emissions modeling, traffic forecasting, land use planning, or 
17.30 	transportation-related greenhouse gas emissions assessment and analysis. In appointing the 
17.31 	members under subdivision 3, clause (6), the commissioner must also consider technical 
18.1 	expertise in other relevant areas, which may include but is not limited to public health or 
18.2 	natural systems management.
18.3 	(b) Members of the advisory committee serve at the pleasure of the appointing authority. 
18.4 	Vacancies must be filled by the appointing authority.
18.5 		Subd. 5.Duties. The advisory committee must assist the commissioner in implementation 
18.6 	of the requirements under section 161.178 by:
18.7 	(1) performing technical review and validation of processes and methodologies used for 
18.8 	impact assessment and impact mitigation;
18.9 	(2) reviewing and making recommendations on:
18.10 	(i) impact assessment requirements;
18.11 	(ii) models and tools for impact assessment;
18.12 	(iii) methods to determine sufficiency of impact mitigation;
18.13 	(iv) procedures for interlinking a project or portfolio to impact mitigation; and
18.14 	(v) reporting and data collection;
18.15 	(3) advising on the approach used to determine the area of influence for a project or 
18.16 	portfolio for a geographic or transportation network area;
18.17 	(4) developing recommendations on any clarifications, modifications, or additions to 
18.18 	the offset actions authorized under section 161.178, subdivision 4; and
18.19 	(5) performing other analyses or activities as requested by the commissioner.
18.20 		Subd. 6.Administration. (a) The commissioner must provide administrative support 
18.21 	to the advisory committee. Upon request, the commissioner must provide information and 
18.22 	technical support to the advisory committee.
18.23 	(b) Members of the advisory committee are not eligible for compensation under this 
18.24 	section.
18.25 	(c) The advisory committee is subject to the Minnesota Data Practices Act under chapter 
18.26 	13 and to the Minnesota Open Meeting Law under chapter 13D.

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

19.1 	Sec. 7. Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to 
19.2 	read:
19.3 		Subd. 4.High voltage transmission; placement in right-of-way. (a) For purposes of 
19.4 	this subdivision and subdivisions 5 to 7, "high voltage transmission line" has the meaning 
19.5 	given in section 216E.01, subdivision 4.
19.6 	(b) Notwithstanding subdivision 1, paragraph (a), high voltage transmission lines under 
19.7 	the laws of this state or the ordinance of any city or county may be constructed, placed, or 
19.8 	maintained across or along any trunk highway, including an interstate highway and a trunk 
19.9 	highway that is an expressway or a freeway, except as deemed necessary by the commissioner 
19.10 	of transportation to protect public safety or ensure the proper function of the trunk highway 
19.11 	system.
19.12 	(c) If the commissioner denies a high voltage electric line colocation request, the reasons 
19.13 	for the denial must be submitted for review within 90 days of the commissioner's denial to 
19.14 	the chairs and ranking minority members of the legislative committees with jurisdiction 
19.15 	over energy and transportation, the Public Utilities Commission executive secretary, and 
19.16 	the commissioner of commerce.

19.17 	EFFECTIVE DATE. This section is effective the day following final enactment and 
19.18 	applies to colocation requests for a high voltage transmission line on or after that date.

19.19 	Sec. 8. Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to 
19.20 	read:
19.21 		Subd. 5.High voltage transmission; coordination required. Upon written request, 
19.22 	the commissioner must engage in coordination activities with a utility or transmission line 
19.23 	developer to review requested highway corridors for potential permitted locations for 
19.24 	transmission lines. The commissioner must assign a project coordinator within 30 days of 
19.25 	receiving the written request. The commissioner must share all known plans with affected 
19.26 	utilities or transmission line developers on potential future projects in the highway corridor 
19.27 	if the potential highway project impacts the placement or siting of high voltage transmission 
19.28 	lines.

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

20.1 	Sec. 9. Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to 
20.2 	read:
20.3 		Subd. 6.High voltage transmission; constructability report; advance notice.  (a) If 
20.4 	the commissioner and a utility or transmission line developer identify a permittable route 
20.5 	along a trunk highway corridor for possible colocation of transmission lines, a constructability 
20.6 	report must be prepared by the utility or transmission line developer in consultation with 
20.7 	the commissioner. A constructability report developed under this subdivision must be utilized 
20.8 	by both parties to plan and approve colocation projects.
20.9 	(b) A constructability report developed under this section between the commissioner 
20.10 	and the parties seeking colocation must include terms and conditions for building the 
20.11 	colocation project. Notwithstanding the requirements in subdivision 1, the report must be 
20.12 	approved by the commissioner and the party or parties seeking colocation prior to the 
20.13 	commissioner approving and issuing a permit for use of the trunk highway right-of-way.
20.14 	(c) A constructability report must include an agreed upon time frame for which there 
20.15 	will not be a request from the commissioner for relocation of the transmission line. If the 
20.16 	commissioner determines that relocation of a transmission line in the trunk highway 
20.17 	right-of-way is necessary, the commissioner, as much as practicable, must give a seven-year 
20.18 	advance notice.
20.19 	(d) Notwithstanding the requirements of subdivision 7 and section 161.46, subdivision 
20.20 	2, if the commissioner requires the relocation of a transmission line in the interstate highway 
20.21 	right-of-way earlier than what was agreed upon in paragraph (c) in the constructability 
20.22 	report or provides less than a seven-year notice of relocation in the agreed upon 
20.23 	constructability report, the commissioner is responsible for 75 percent of the relocation 
20.24 	costs.

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

20.26 	Sec. 10. Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to 
20.27 	read:
20.28 		Subd. 7.High voltage transmission; relocation reimbursement prohibited. (a) A 
20.29 	high voltage transmission line that receives a route permit under chapter 216E on or after 
20.30 	July 1, 2024, is not eligible for relocation reimbursement under section 161.46, subdivision 
20.31 	2.
20.32 	(b) If the commissioner orders relocation of a high voltage transmission line that is 
20.33 	subject to paragraph (a):
21.1 	(1) a public utility, as defined in section 216B.02, subdivision 4, may recover its portion 
21.2 	of costs of relocating the line that the Public Utilities Commission deems prudently incurred 
21.3 	as a transmission cost adjustment pursuant to section 216B.16, subdivision 7b; and
21.4 	(2) a consumer-owned utility, as defined in section 216B.2402, subdivision 2, may 
21.5 	recover its portion of costs of relocating the line in any manner approved by its governing 
21.6 	board.

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

21.8 	Sec. 11. Minnesota Statutes 2022, section 161.46, subdivision 1, is amended to read:
21.9 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms shall
21.10 	have the meanings ascribed to them: given.
21.11 	(1) (b) "Utility" means all publicly, privately, and cooperatively owned systems for 
21.12 	supplying power, light, gas, telegraph, telephone, water, pipeline, or sewer service if such 
21.13 	systems be authorized by law to use public highways for the location of its facilities.
21.14 	(2) (c) "Cost of relocation" means the entire amount paid by such utility properly 
21.15 	attributable to such relocation after deducting therefrom any increase in the value of the 
21.16 	new facility and any salvage value derived from the old facility.
21.17 	(d) "High voltage transmission line" has the meaning given in section 216E.01, 
21.18 	subdivision 4.

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

21.20 	Sec. 12. Minnesota Statutes 2023 Supplement, section 161.46, subdivision 2, is amended 
21.21 	to read:
21.22 		Subd. 2.Relocation of facilities; reimbursement. (a) Whenever the commissioner shall 
21.23 	determine determines that the relocation of any utility facility is necessitated by the 
21.24 	construction of a project on the routes of federally aided state trunk highways, including 
21.25 	urban extensions thereof, which routes that are included within the National System of 
21.26 	Interstate Highways, the owner or operator of such the utility facility shall must relocate 
21.27 	the same utility facility in accordance with the order of the commissioner. After the 
21.28 	completion of such relocation the cost thereof shall be ascertained and paid by the state out 
21.29 	of trunk highway funds; provided, however, the amount to be paid by the state for such 
21.30 	reimbursement shall not exceed the amount on which the federal government bases its 
21.31 	reimbursement for said interstate system. Except as provided in section 161.45, subdivision 
21.32 	6, paragraph (d), or 7, upon the completion of relocation of a utility facility, the cost of 
22.1 	relocation must be ascertained and paid out of the trunk highway fund by the commissioner, 
22.2 	provided the amount paid by the commissioner for reimbursement to a utility does not 
22.3 	exceed the amount on which the federal government bases its reimbursement for the interstate 
22.4 	highway system.
22.5 	(b) Notwithstanding paragraph (a), on or after January 1, 2024, any entity that receives 
22.6 	a route permit under chapter 216E for a high-voltage transmission line necessary to 
22.7 	interconnect an electric power generating facility is not eligible for relocation reimbursement 
22.8 	unless the entity directly, or through its members or agents, provides retail electric service 
22.9 	in this state.

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

22.11 	Sec. 13. Minnesota Statutes 2022, section 168.09, subdivision 7, is amended to read:
22.12 		Subd. 7.Display of temporary permit. (a) A vehicle that displays a Minnesota plate 
22.13 	issued under this chapter may display a temporary permit The commissioner may issue a 
22.14 	temporary permit under this subdivision in conjunction with the conclusion of a registration 
22.15 	period or a recently expired registration, if:
22.16 	(1) the current registration tax and all other fees and taxes have been paid in full; and
22.17 	(2) the plate has special plates have been applied for.
22.18 	(b) A vehicle may display a temporary permit in conjunction with expired registration, 
22.19 	with or without a registration plate, if:
22.20 	(1) the plates have been applied for;
22.21 	(2) the registration tax and other fees and taxes have been paid in full; and
22.22 	(3) either the vehicle is used solely as a collector vehicle while displaying the temporary 
22.23 	permit and not used for general transportation purposes or the vehicle was issued a 21-day 
22.24 	permit under section 168.092, subdivision 1.
22.25 	(c) (b) The permit is valid for a period of 60 days. The permit must be in a format 
22.26 	prescribed by the commissioner, affixed to the rear of the vehicle where a license plate 
22.27 	would normally be affixed, and plainly visible. The permit is valid only for the vehicle for 
22.28 	which it was issued to allow a reasonable time for the new plates to be manufactured and 
22.29 	delivered to the applicant. The permit may be issued only by the commissioner or by a 
22.30 	deputy registrar under section 168.33.

22.31 	EFFECTIVE DATE. This section is effective October 1, 2024.

23.1 	Sec. 14. Minnesota Statutes 2022, section 168.092, is amended to read:
23.2 	168.092 21-DAY 60-DAY TEMPORARY VEHICLE PERMIT.
23.3 		Subdivision 1.Resident buyer. The motor vehicle registrar commissioner may issue a 
23.4 	permit to a person purchasing a new or used motor vehicle in this state for the purpose of 
23.5 	allowing the purchaser a reasonable time to register the vehicle and pay fees and taxes due 
23.6 	on the transfer. The permit is valid for a period of 21 60 days. The permit must be in a form 
23.7 	as the registrar may determine format prescribed by the commissioner, affixed to the rear 
23.8 	of the vehicle where a license plate would normally be affixed, and plainly visible. Each 
23.9 	permit is valid only for the vehicle for which issued.
23.10 		Subd. 2.Dealer. The registrar commissioner may issue permits to licensed dealers. 
23.11 	When issuing a permit, the dealer shall must complete the permit in the manner prescribed 
23.12 	by the department.

23.13 	EFFECTIVE DATE. This section is effective October 1, 2024.

23.14 	Sec. 15. Minnesota Statutes 2023 Supplement, section 168.1259, is amended to read:
23.15 	168.1259 MINNESOTA PROFESSIONAL SPORTS TEAM FOUNDATION
23.16 	PHILANTHROPY PLATES.
23.17 		Subdivision 1.Definition. For purposes of this section, "Minnesota professional sports 
23.18 	team" means one of the following teams while its home stadium is located in Minnesota: 
23.19 	Minnesota Vikings, Minnesota Timberwolves, Minnesota Lynx, Minnesota Wild, Minnesota 
23.20 	Twins, or Minnesota United.
23.21 		Subd. 2.General requirements and procedures. (a) The commissioner must issue 
23.22 	Minnesota professional sports team foundation philanthropy plates to an applicant who:
23.23 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
23.24 	truck, motorcycle, or recreational vehicle;
23.25 	(2) pays an additional fee in the amount specified for special plates under section 168.12, 
23.26 	subdivision 5;
23.27 	(3) pays the registration tax required under section 168.013;
23.28 	(4) pays the fees required under this chapter;
23.29 	(5) contributes a minimum of $30 annually to the professional sports team foundations
23.30 	philanthropy account; and
24.1 	(6) complies with this chapter and rules governing registration of motor vehicles and 
24.2 	licensing of drivers.
24.3 	(b) Minnesota professional sports team foundation philanthropy plates may be 
24.4 	personalized according to section 168.12, subdivision 2a.
24.5 		Subd. 3.Design. At the request of a Minnesota professional sports team or the team's 
24.6 	foundation, the commissioner must, in consultation with the team or foundation, adopt a 
24.7 	suitable plate design incorporating. Each design must incorporate the requesting foundation's 
24.8 	marks and colors or directly relate to a charitable purpose as provided in subdivision 5. The 
24.9 	commissioner may design a single plate that incorporates the marks and colors of all 
24.10 	foundations organizations that have requested a plate.
24.11 		Subd. 4.Plate transfers. On application to the commissioner and payment of a transfer 
24.12 	fee of $5, special plates issued under this section may be transferred to another motor vehicle 
24.13 	if the subsequent vehicle is:
24.14 	(1) qualified under subdivision 2, paragraph (a), clause (1), to bear the special plates; 
24.15 	and
24.16 	(2) registered to the same individual to whom the special plates were originally issued.
24.17 		Subd. 5.Contributions; account; appropriation. (a) Contributions collected under 
24.18 	subdivision 2, paragraph (a), clause (5), must be deposited in the Minnesota professional 
24.19 	sports team foundations philanthropy account, which is established in the special revenue 
24.20 	fund. Money in the account is annually appropriated to the commissioner of public safety. 
24.21 	This appropriation is first for the annual cost of administering the account funds, and the 
24.22 	remaining funds are for distribution to the foundations or as provided in this subdivision in
24.23 	the proportion that each plate design bears to the total number of Minnesota professional 
24.24 	sports team foundation philanthropy plates issued for that year. Proceeds from a plate that 
24.25 	includes the marks and colors of all foundations participating organizations must be divided 
24.26 	evenly between all foundations and charitable purposes.
24.27 	(b) The foundations must only use the proceeds must only be used by:
24.28 	(1) a Minnesota professional sports team foundation for philanthropic or charitable 
24.29 	purposes; or
24.30 	(2) the Minnesota United professional sports team through a designation that the funds 
24.31 	are for the Minnesota Loon Restoration Project.
24.32 	(c) The commissioner must annually transfer funds designated under paragraph (b), 
24.33 	clause (2), from the Minnesota professional sports team philanthropy account to the 
25.1 	Minnesota critical habitat private sector matching account under section 84.943 for purposes 
25.2 	of the Minnesota Loon Restoration Project.

25.3 	EFFECTIVE DATE. This section is effective October 1, 2024, for Minnesota 
25.4 	professional sports team philanthropy plates issued on or after that date.

25.5 	Sec. 16. [168.1283] ROTARY INTERNATIONAL PLATES.
25.6 		Subdivision 1.Issuance of plates. The commissioner must issue Rotary International 
25.7 	special license plates or a single motorcycle plate to an applicant who:
25.8 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
25.9 	truck, motorcycle, or self-propelled recreational motor vehicle;
25.10 	(2) pays the registration tax as required under section 168.013;
25.11 	(3) pays a fee in the amount specified under section 168.12, subdivision 5, for each set 
25.12 	of plates, along with any other fees required by this chapter;
25.13 	(4) contributes $25 upon initial application and a minimum of $5 annually to the Rotary 
25.14 	District 5950 Foundation account; and
25.15 	(5) complies with this chapter and rules governing registration of motor vehicles and 
25.16 	licensing of drivers.
25.17 		Subd. 2.Design. The commissioner must adopt a suitable design for the plate that must 
25.18 	include the Rotary International symbol and the phrase "Service Above Self."
25.19 		Subd. 3.Plates transfer. On application to the commissioner and payment of a transfer 
25.20 	fee of $5, special plates may be transferred to another qualified motor vehicle that is 
25.21 	registered to the same individual to whom the special plates were originally issued.
25.22 		Subd. 4.Exemption. Special plates issued under this section are not subject to section 
25.23 	168.1293, subdivision 2.
25.24 		Subd. 5.Contributions; account; appropriation. Contributions collected under 
25.25 	subdivision 1, clause (4), must be deposited in the Rotary District 5950 Foundation account, 
25.26 	which is established in the special revenue fund. Money in the account is annually 
25.27 	appropriated to the commissioner of public safety. This appropriation is first for the annual 
25.28 	cost of administering the account funds, and the remaining funds must be distributed to 
25.29 	Rotary District 5950 Foundation to further the rotary's mission of service, fellowship, 
25.30 	diversity, integrity, and leadership. Funds distributed under this subdivision must be used 
25.31 	on projects within this state.

26.1 	EFFECTIVE DATE. This section is effective January 1, 2025, for Rotary International 
26.2 	special plates issued on or after that date.

26.3 	Sec. 17. Minnesota Statutes 2022, section 168.301, subdivision 3, is amended to read:
26.4 		Subd. 3.Late fee. In addition to any fee or tax otherwise authorized or imposed upon 
26.5 	the transfer of title for a motor vehicle, the commissioner of public safety shall must impose 
26.6 	a $2 additional fee for failure to deliver a title transfer within ten business days the period 
26.7 	specified under section 168A.10, subdivision 2.

26.8 	EFFECTIVE DATE. This section is effective October 1, 2024.

26.9 	Sec. 18. Minnesota Statutes 2022, section 168A.10, subdivision 2, is amended to read:
26.10 		Subd. 2.Application for new certificate. Except as provided in section 168A.11, the 
26.11 	transferee shall must, within ten 20 calendar days after assignment to the transferee of the 
26.12 	vehicle title certificate, execute the application for a new certificate of title in the space 
26.13 	provided on the certificate, and cause the certificate of title to be mailed or delivered to the 
26.14 	department. Failure of the transferee to comply with this subdivision shall result results in 
26.15 	the suspension of the vehicle's registration under section 168.17.

26.16 	EFFECTIVE DATE. This section is effective October 1, 2024, and applies to title 
26.17 	transfers on or after that date.

26.18 	Sec. 19. Minnesota Statutes 2022, section 168A.11, subdivision 1, is amended to read:
26.19 		Subdivision 1.Requirements upon subsequent transfer; service fee. (a) A dealer who 
26.20 	buys a vehicle and holds it for resale need not apply for a certificate of title. Upon transferring 
26.21 	the vehicle to another person, other than by the creation of a security interest, the dealer 
26.22 	shall must promptly execute the assignment and warranty of title by a dealer, showing the 
26.23 	names and addresses of the transferee and of any secured party holding a security interest 
26.24 	created or reserved at the time of the resale, and the date of the security agreement in the 
26.25 	spaces provided therefor on the certificate of title or secure reassignment.
26.26 	(b) If a dealer elects to apply for a certificate of title on a vehicle held for resale, the 
26.27 	dealer need not register the vehicle but shall must pay one month's registration tax. If a 
26.28 	dealer elects to apply for a certificate of title on a vehicle held for resale, the department 
26.29 	shall commissioner must not place any legend on the title that no motor vehicle sales tax 
26.30 	was paid by the dealer, but may indicate on the title whether the vehicle is a new or used 
26.31 	vehicle.
27.1 	(c) With respect to motor vehicles subject to the provisions of section 325E.15, the dealer 
27.2 	shall must also, in the space provided therefor on the certificate of title or secure 
27.3 	reassignment, state the true cumulative mileage registered on the odometer or that the exact 
27.4 	mileage is unknown if the odometer reading is known by the transferor to be different from 
27.5 	the true mileage.
27.6 	(d) The transferee shall must complete the application for title section on the certificate 
27.7 	of title or separate title application form prescribed by the department commissioner. The 
27.8 	dealer shall must mail or deliver the certificate to the registrar commissioner or deputy 
27.9 	registrar with the transferee's application for a new certificate and appropriate taxes and 
27.10 	fees, within ten business days the period specified under section 168A.10, subdivision 2.
27.11 	(e) With respect to vehicles sold to buyers who will remove the vehicle from this state, 
27.12 	the dealer shall must remove any license plates from the vehicle, issue a 31-day temporary 
27.13 	permit pursuant to section 168.091, and notify the registrar commissioner within 48 hours 
27.14 	of the sale that the vehicle has been removed from this state. The notification must be made 
27.15 	in an electronic format prescribed by the registrar commissioner. The dealer may contract 
27.16 	with a deputy registrar for the notification of sale to an out-of-state buyer. The deputy 
27.17 	registrar may charge a fee of $7 per transaction to provide this service.

27.18 	EFFECTIVE DATE. This section is effective October 1, 2024, and applies to title 
27.19 	transfers on or after that date.

27.20 	Sec. 20. Minnesota Statutes 2023 Supplement, section 169.011, subdivision 27, is amended 
27.21 	to read:
27.22 		Subd. 27.Electric-assisted bicycle. (a) "Electric-assisted bicycle" means a bicycle with 
27.23 	two or three wheels that:
27.24 	(1) has a saddle and fully operable pedals for human propulsion;
27.25 	(2) meets the requirements for bicycles under Code of Federal Regulations, title 16, part 
27.26 	1512, or successor requirements;
27.27 	(3) is equipped with an electric motor that has a power output of not more than 750 
27.28 	watts;
27.29 	(4) meets the requirements of a class 1, class 2, or class 3, or multiple mode
27.30 	electric-assisted bicycle; and
27.31 	(5) has a battery or electric drive system that has been tested to an applicable safety 
27.32 	standard by a third-party testing laboratory.
28.1 	(b) A vehicle that is modified so that it no longer meets the requirements for any 
28.2 	electric-assisted bicycle class is not an electric-assisted bicycle.

28.3 	Sec. 21. Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision 
28.4 	to read:
28.5 		Subd. 45a.Multiple mode electric-assisted bicycle. "Multiple mode electric-assisted 
28.6 	bicycle" means an electric-assisted bicycle equipped with switchable or programmable 
28.7 	modes that provide for operation as two or more of a class 1, class 2, or class 3 
28.8 	electric-assisted bicycle in conformance with the definition and requirements under this 
28.9 	chapter for each respective class.

28.10 	Sec. 22. Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision 
28.11 	to read:
28.12 		Subd. 92b.Vulnerable road user. "Vulnerable road user" means a person in the 
28.13 	right-of-way of a highway, including but not limited to a bikeway and an adjacent sidewalk 
28.14 	or trail, who is:
28.15 	(1) a pedestrian;
28.16 	(2) on a bicycle or other nonmotorized vehicle or device;
28.17 	(3) on an electric personal assistive mobility device;
28.18 	(4) on an implement of husbandry; or
28.19 	(5) riding an animal.
28.20 	Vulnerable road user includes the operator and any passengers for a vehicle, device, or 
28.21 	personal conveyance identified in this subdivision.

28.22 	Sec. 23. Minnesota Statutes 2022, section 169.21, subdivision 6, is amended to read:
28.23 		Subd. 6.Driver education curriculum; vulnerable road users. The class D curriculum, 
28.24 	in addition to driver education classroom curriculum prescribed in rules of statutes for class 
28.25 	D motor vehicles, must include instruction on commissioner must adopt rules for persons 
28.26 	enrolled in driver education programs offered at public schools, private schools, and 
28.27 	commercial driver training schools, requiring inclusion in the course of instruction a section 
28.28 	on vulnerable road users. The instruction must include information on:
28.29 	(1) the rights and responsibilities of vulnerable road users, as defined in section 169.011, 
28.30 	subdivision 92b;
29.1 	(2) the specific duties of a driver when encountering a bicycle, other nonmotorized 
29.2 	vehicles, or a pedestrian.;
29.3 	(3) safety risks for vulnerable road users and motorcyclists or other operators of two- 
29.4 	or three-wheeled vehicles; and
29.5 	(4) best practices to minimize dangers and avoid collisions with vulnerable road users 
29.6 	and motorcyclists or other operators of two- or three-wheeled vehicles.

29.7 	Sec. 24. Minnesota Statutes 2022, section 169.222, subdivision 6a, is amended to read:
29.8 		Subd. 6a.Electric-assisted bicycle; riding rules. (a) A person may operate an 
29.9 	electric-assisted bicycle in the same manner as provided for operation of other bicycles, 
29.10 	including but not limited to operation on the shoulder of a roadway, a bicycle lane, and a 
29.11 	bicycle route, and operation without the motor engaged on a bikeway or bicycle trail.
29.12 	(b) A person may operate a class 1 or class 2 electric-assisted bicycle with the motor 
29.13 	engaged on a bicycle path, bicycle trail, or shared use path unless prohibited under section 
29.14 	85.015, subdivision 1d; 85.018, subdivision 2, paragraph (d); or 160.263, subdivision 2, 
29.15 	paragraph (b), as applicable.
29.16 	(c) A person may operate a class 3 electric-assisted bicycle or multiple mode 
29.17 	electric-assisted bicycle with the motor engaged on a bicycle path, bicycle trail, or shared 
29.18 	use path unless the local authority or state agency having jurisdiction over the bicycle path 
29.19 	or trail prohibits the operation.
29.20 	(d) The local authority or state agency having jurisdiction over a trail or over a bike park 
29.21 	that is designated as nonmotorized and that has a natural surface tread made by clearing 
29.22 	and grading the native soil with no added surfacing materials may regulate the operation of 
29.23 	an electric-assisted bicycle.
29.24 	(e) No A person under the age of 15 shall must not operate an electric-assisted bicycle.

29.25 	Sec. 25. Minnesota Statutes 2022, section 169.222, subdivision 6b, is amended to read:
29.26 		Subd. 6b.Electric-assisted bicycle; equipment. (a) The manufacturer or distributor of 
29.27 	an electric-assisted bicycle must apply a label to the bicycle that is permanently affixed in 
29.28 	a prominent location. The label must contain the classification class number, top assisted 
29.29 	speed, and motor wattage of the electric-assisted bicycle, and must be printed in a legible 
29.30 	font with at least 9-point type. A multiple mode electric-assisted bicycle must have labeling 
29.31 	that identifies the highest electric-assisted bicycle class in which it is capable of operation.
30.1 	(b) A person must not modify an electric-assisted bicycle to change the motor-powered 
30.2 	speed capability or motor engagement so that the bicycle no longer meets the requirements 
30.3 	for the applicable class, unless:
30.4 	(1) the person replaces the label required in paragraph (a) with revised information.; or
30.5 	(2) for a vehicle that no longer meets the requirements for any electric-assisted bicycle 
30.6 	class, the person removes the labeling as an electric-assisted bicycle.
30.7 	(c) An electric-assisted bicycle must operate in a manner so that the electric motor is 
30.8 	disengaged or ceases to function when the rider stops pedaling or: (1) when the brakes are 
30.9 	applied; or (2) except for a class 2 electric-assisted bicycle or a multiple mode 
30.10 	electric-assisted bicycle operating in class 2 mode, when the rider stops pedaling.
30.11 	(d) A class 3 electric-assisted bicycle or multiple mode electric-assisted bicycle must 
30.12 	be equipped with a speedometer that displays the speed at which the bicycle is traveling in 
30.13 	miles per hour.
30.14 	(e) A multiple mode electric-assisted bicycle equipped with a throttle must not be capable 
30.15 	of exceeding 20 miles per hour on motorized propulsion alone in any mode when the throttle 
30.16 	is engaged.

30.17 	Sec. 26. [169.515] LIGHTS ON GRANT PROGRAM.
30.18 		Subdivision 1.Grant program established; purpose. The Lights On grant program is 
30.19 	established under this section to provide drivers on Minnesota roads with vouchers of up 
30.20 	to $250 to use at participating auto repair shops to repair or replace broken or malfunctioning 
30.21 	lighting equipment required under sections 169.49 to 169.51. Grant funds awarded under 
30.22 	this program are intended to increase safety on Minnesota roads by ensuring vehicle lights 
30.23 	are properly illuminated, offering drivers restorative solutions rather than punishment for 
30.24 	malfunctioning equipment, lessening the financial burden of traffic tickets on low-income 
30.25 	drivers, and improving police-community relations.
30.26 		Subd. 2.Eligibility. Counties, cities, towns, the State Patrol, and local law enforcement 
30.27 	agencies, including law enforcement agencies of a federally recognized Tribe, as defined 
30.28 	in United States Code, title 25, section 5304(e), are eligible to apply for grants under this 
30.29 	section.
30.30 		Subd. 3.Application. (a) The commissioner of public safety must develop application 
30.31 	materials and procedures for the Lights On grant program.
31.1 	(b) The application must describe the type or types of intended vouchers, the amount of 
31.2 	money requested, and any other information deemed necessary by the commissioner.
31.3 	(c) Applicants must submit an application under this section in the form and manner 
31.4 	prescribed by the commissioner.
31.5 	(d) Applicants must describe how grant money will be used to provide and distribute 
31.6 	vouchers to drivers.
31.7 	(e) Applicants must keep records of vouchers distributed and records of all expenses 
31.8 	associated with awarded grant money.
31.9 		Subd. 4.Grant criteria. Preference for grant awards must be given to applicants whose 
31.10 	proposals provide resources and vouchers to individuals residing in geographic areas that 
31.11 	have historically received underinvestment and have high poverty rates.
31.12 		Subd. 5.Reporting. By February 1 each year, grant recipients must submit a report to 
31.13 	the commissioner itemizing all expenditures made using grant money, the purpose of each 
31.14 	expenditure, and the disposition of each contact made with drivers with malfunctioning or 
31.15 	broken lighting equipment. The report must be in the form and manner prescribed by the 
31.16 	commissioner.

31.17 	Sec. 27. Minnesota Statutes 2023 Supplement, section 169A.44, subdivision 1, is amended 
31.18 	to read:
31.19 		Subdivision 1.Nonfelony violations. (a) This subdivision applies to a person charged 
31.20 	with a nonfelony violation of section 169A.20 (driving while impaired) under circumstances 
31.21 	described in section 169A.40, subdivision 3 (certain DWI offenders; custodial arrest).
31.22 	(b) Except as provided in subdivision 3, unless maximum bail is imposed under section 
31.23 	629.471, a person described in paragraph (a) may be released from detention only if the 
31.24 	person agrees to the following conditions pending resolution of the charge:
31.25 	(1) abstain from alcohol and nonprescribed controlled or intoxicating substances; and
31.26 	(2) submit to a program of electronic alcohol monitoring, involving at least daily 
31.27 	measurements of the person's alcohol concentration, pending resolution of the charge to 
31.28 	monitor that abstinence.
31.29 	(c) A defendant charged with a violation of section 169A.20, subdivision 1, clause (1), 
31.30 	(5), or (6); subdivision 1, clause (4), where one of the elements involves a violation of clause 
31.31 	(1); subdivision 2, clause (1); or subdivision 2, clause (2), if the court issued the warrant 
32.1 	based on probable cause to believe that the person was under the influence of alcohol, must 
32.2 	be monitored through the use of:
32.3 	(1) electronic alcohol monitoring, involving at least daily measurements of the person's 
32.4 	alcohol concentration if electronic alcohol-monitoring equipment is available to the court; 
32.5 	or
32.6 	(2) random alcohol tests conducted at least weekly if electronic alcohol-monitoring 
32.7 	equipment is not available to the court.
32.8 	(d) A defendant charged with a violation of section 169A.20, subdivision 1, clause (2), 
32.9 	(3), (4), (7), or (8); or subdivision 2, clause (2), if the court issued the warrant based on 
32.10 	probable cause to believe that the person was under the influence of a controlled substance 
32.11 	or an intoxicating substance, must be monitored through the use of random urine analyses 
32.12 	conducted at least weekly.
32.13 	Clause (2) applies only when electronic alcohol-monitoring equipment is available to 
32.14 	the court. (e) The court shall require partial or total reimbursement from the person for the 
32.15 	cost of the electronic alcohol monitoring, random alcohol tests, and random urine analyses, 
32.16 	to the extent the person is able to pay.

32.17 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to defendants 
32.18 	charged on or after that date.

32.19 	Sec. 28. Minnesota Statutes 2022, section 169A.55, subdivision 4, is amended to read:
32.20 		Subd. 4.Reinstatement of driving privileges; multiple incidents. (a) A person whose 
32.21 	driver's license has been revoked as a result of an alcohol-related offense listed under clause 
32.22 	(2) shall not be eligible for reinstatement of driving privileges without an ignition interlock 
32.23 	restriction until the commissioner certifies that either:
32.24 	(1) the person did not own or lease a vehicle at the time of the offense or at any time 
32.25 	between the time of the offense and the driver's request for reinstatement, or commit a 
32.26 	violation of chapter 169, 169A, or 171 between the time of the offense and the driver's 
32.27 	request for reinstatement or at the time of the arrest for the offense listed under clause (2), 
32.28 	item (i), subitem (A) or (B), or (ii), subitem (A) or (B), as based on:
32.29 	(i) a request by the person for reinstatement, on a form to be provided by the Department 
32.30 	of Public Safety;
32.31 	(ii) the person's attestation under penalty of perjury; and
33.1 	(iii) the submission by the driver of certified copies of vehicle registration records and 
33.2 	driving records for the period from the arrest until the driver seeks reinstatement of driving 
33.3 	privileges; or
33.4 	(2) the person used the ignition interlock device and complied with section 171.306 for 
33.5 	a period of not less than:
33.6 	(i) one year, for a person whose driver's license was revoked for:
33.7 	(A) an offense occurring within ten years of a qualified prior impaired driving incident; 
33.8 	or
33.9 	(B) an offense occurring after two qualified prior impaired driving incidents; or
33.10 	(ii) two years, for a person whose driver's license was revoked for:
33.11 	(A) an offense occurring under item (i), subitem (A) or (B), and the test results indicated 
33.12 	an alcohol concentration of twice the legal limit or more; or
33.13 	(B) an offense occurring under item (i), subitem (A) or (B), and the current offense is 
33.14 	for a violation of section 169A.20, subdivision 2.
33.15 	(b) A person whose driver's license has been canceled or denied as a result of three or 
33.16 	more qualified impaired driving incidents involving at least one alcohol-related offense
33.17 	shall not be eligible for reinstatement of driving privileges without an ignition interlock 
33.18 	restriction until the person:
33.19 	(1) has completed rehabilitation according to rules adopted by the commissioner or been 
33.20 	granted a variance from the rules by the commissioner; and
33.21 	(2) has submitted verification of abstinence from alcohol and controlled substances 
33.22 	under paragraph (c), as evidenced by the person's use of an ignition interlock device or other 
33.23 	chemical monitoring device approved by the commissioner.
33.24 	(c) The verification of abstinence must show that the person has abstained from the use 
33.25 	of alcohol and controlled substances for a period of not less than:
33.26 	(1) three years, for a person whose driver's license was canceled or denied for an offense 
33.27 	occurring within ten years of the first of two qualified prior impaired driving incidents, or 
33.28 	occurring after three qualified prior impaired driving incidents;
33.29 	(2) four years, for a person whose driver's license was canceled or denied for an offense 
33.30 	occurring within ten years of the first of three qualified prior impaired driving incidents; or
34.1 	(3) six years, for a person whose driver's license was canceled or denied for an offense 
34.2 	occurring after four or more qualified prior impaired driving incidents.
34.3 	(d) A person whose driver's license has been revoked as a result of a controlled or 
34.4 	intoxicating substance offense listed under clause (2) shall not be eligible for reinstatement 
34.5 	of driving privileges without participating in the intensive testing program established under 
34.6 	section 171.307 until the commissioner certifies that either:
34.7 	(1) the person did not own or lease a vehicle at the time of the offense or at any time 
34.8 	between the time of the offense and the driver's request for reinstatement, or commit a 
34.9 	violation of chapter 169, 169A, or 171 between the time of the offense and the driver's 
34.10 	request for reinstatement or at the time of the arrest for the offense listed under clause (2), 
34.11 	item (i), subitem (A) or (B), or (ii), subitem (A) or (B), as based on:
34.12 	(i) a request by the person for reinstatement, on a form to be provided by the Department 
34.13 	of Public Safety;
34.14 	(ii) the person's attestation under penalty of perjury; and
34.15 	(iii) the submission by the driver of certified copies of vehicle registration records and 
34.16 	driving records for the period from the arrest until the driver seeks reinstatement of driving 
34.17 	privileges; or
34.18 	(2) the person participated in the intensive testing program and complied with section 
34.19 	171.307 for a period of not less than:
34.20 	(i) one year, for a person whose driver's license was revoked for:
34.21 	(A) an offense occurring within ten years of a qualified prior impaired driving incident; 
34.22 	or
34.23 	(B) an offense occurring after two qualified prior impaired driving incidents; or
34.24 	(ii) two years, for a person whose driver's license was revoked for:
34.25 	(A) an offense occurring under item (i), subitem (A) or (B), and the test results indicated 
34.26 	an alcohol concentration of twice the legal limit or more; or
34.27 	(B) an offense occurring under item (i), subitem (A) or (B), and the current offense is 
34.28 	for a violation of section 169A.20, subdivision 2.
34.29 	(e) A person whose driver's license has been canceled or denied as a result of three or 
34.30 	more qualified impaired driving incidents involving at least one controlled or intoxicating 
34.31 	substance offense shall not be eligible for reinstatement of driving privileges without 
34.32 	participating in the intensive testing program until the person:
35.1 	(1) has completed rehabilitation according to rules adopted by the commissioner or been 
35.2 	granted a variance from the rules by the commissioner; and
35.3 	(2) has submitted verification of abstinence from alcohol and controlled substances 
35.4 	under paragraph (f), as evidenced by the person's participation in the intensive testing 
35.5 	program or other monitoring approved by the commissioner.
35.6 	(f) The verification of abstinence must show that the person has abstained from the use 
35.7 	of alcohol and controlled substances for a period of not less than:
35.8 	(1) three years, for a person whose driver's license was canceled or denied for an offense 
35.9 	occurring within ten years of the first of two qualified prior impaired driving incidents, or 
35.10 	occurring after three qualified prior impaired driving incidents;
35.11 	(2) four years, for a person whose driver's license was canceled or denied for an offense 
35.12 	occurring within ten years of the first of three qualified prior impaired driving incidents; or
35.13 	(3) six years, for a person whose driver's license was canceled or denied for an offense 
35.14 	occurring after four or more qualified prior impaired driving incidents.
35.15 	(g) As used in this subdivision:
35.16 	(1) "alcohol-related offense" means a violation of section 169A.20, subdivision 1, clause 
35.17 	(1), (5), or (6); subdivision 1, clause (4), where one of the elements involves a violation of 
35.18 	clause (1); subdivision 2, clause (1); or subdivision 2, clause (2), if the court issued the 
35.19 	warrant based on probable cause to believe that the person was under the influence of 
35.20 	alcohol; and
35.21 	(2) "controlled or intoxicating substance offense" means a violation of section 169A.20, 
35.22 	subdivision 1, clause (2), (3), (4), (7), or (8); or subdivision 2, clause (2), if the court issued 
35.23 	the warrant based on probable cause to believe that the person was under the influence of 
35.24 	a controlled substance or an intoxicating substance.

35.25 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to revocations 
35.26 	and cancellations or denials that occur on or after that date.

35.27 	Sec. 29. Minnesota Statutes 2023 Supplement, section 171.0705, subdivision 2, is amended 
35.28 	to read:
35.29 		Subd. 2.Driver's manual; bicycle traffic vulnerable road users. The commissioner 
35.30 	shall must include in each edition of the driver's manual published by the department a 
35.31 	section relating to vulnerable road users and motorcyclists or operators of two- or 
35.32 	three-wheeled vehicles that, at a minimum, includes:
36.1 	(1) bicycle traffic laws, including any changes in the law which affect bicycle traffic.;
36.2 	(2) traffic laws related to pedestrians and pedestrian safety; and
36.3 	(3) traffic laws related to motorcycles, autocycles, motorized bicycles, motorized foot 
36.4 	scooters, and electric personal assistive mobility devices.

36.5 	EFFECTIVE DATE. This section is effective the day following final enactment and 
36.6 	applies to each edition of the manual published on or after that date.

36.7 	Sec. 30. Minnesota Statutes 2023 Supplement, section 171.13, subdivision 1, is amended 
36.8 	to read:
36.9 		Subdivision 1.Examination subjects and locations; provisions for color blindness, 
36.10 	disabled veterans. (a) Except as otherwise provided in this section, the commissioner must 
36.11 	examine each applicant for a driver's license by such agency as the commissioner directs. 
36.12 	This examination must include:
36.13 	(1) a test of the applicant's eyesight, provided that this requirement is met by submission 
36.14 	of a vision examination certificate under section 171.06, subdivision 7;
36.15 	(2) a test of the applicant's ability to read and understand highway signs regulating, 
36.16 	warning, and directing traffic;
36.17 	(3) a test of the applicant's knowledge of (i) traffic laws; (ii) the effects of alcohol and 
36.18 	drugs on a driver's ability to operate a motor vehicle safely and legally, and of the legal 
36.19 	penalties and financial consequences resulting from violations of laws prohibiting the 
36.20 	operation of a motor vehicle while under the influence of alcohol or drugs; (iii) railroad 
36.21 	grade crossing safety; (iv) slow-moving vehicle safety; (v) laws relating to pupil 
36.22 	transportation safety, including the significance of school bus lights, signals, stop arm, and 
36.23 	passing a school bus; (vi) traffic laws related to vulnerable road users and motorcyclists, 
36.24 	including but not limited to operators of bicycles and pedestrians; and (vii) the circumstances 
36.25 	and dangers of carbon monoxide poisoning;
36.26 	(4) an actual demonstration of ability to exercise ordinary and reasonable control in the 
36.27 	operation of a motor vehicle; and
36.28 	(5) other physical and mental examinations as the commissioner finds necessary to 
36.29 	determine the applicant's fitness to operate a motor vehicle safely upon the highways.
36.30 	(b) Notwithstanding paragraph (a), the commissioner must not deny an application for 
36.31 	a driver's license based on the exclusive grounds that the applicant's eyesight is deficient in 
36.32 	color perception or that the applicant has been diagnosed with diabetes mellitus. War veterans 
37.1 	operating motor vehicles especially equipped for disabled persons, if otherwise entitled to 
37.2 	a license, must be granted such license.
37.3 	(c) The commissioner must ensure that an applicant may take an exam either in the 
37.4 	county where the applicant resides or in an adjacent county at a reasonably convenient 
37.5 	location. The schedule for each exam station must be posted on the department's website.
37.6 	(d) The commissioner shall ensure that an applicant is able to obtain an appointment for 
37.7 	an examination to demonstrate ability under paragraph (a), clause (4), within 14 days of the 
37.8 	applicant's request if, under the applicable statutes and rules of the commissioner, the 
37.9 	applicant is eligible to take the examination.
37.10 	(e) The commissioner must provide real-time information on the department's website 
37.11 	about the availability and location of exam appointments. The website must show the next 
37.12 	available exam dates and times for each exam station. The website must also provide an 
37.13 	option for a person to enter an address to see the date and time of the next available exam 
37.14 	at each exam station sorted by distance from the address provided.

37.15 	Sec. 31. Minnesota Statutes 2022, section 171.306, subdivision 1, is amended to read:
37.16 		Subdivision 1.Definitions. (a) As used in this section, the terms in this subdivision have 
37.17 	the meanings given them.
37.18 	(b) "Ignition interlock device" or "device" means equipment that is designed to measure 
37.19 	breath alcohol concentration and to prevent a motor vehicle's ignition from being started 
37.20 	by a person whose breath alcohol concentration measures 0.02 or higher on the equipment.
37.21 	(c) "Incident involving alcohol" means:
37.22 	(1) a test failure as described in section 169A.52, subdivision 2, paragraph (a), clause 
37.23 	(1) or (2); or section 171.177, subdivision 3, clause (2), item (i) or (ii);
37.24 	(2) a test refusal as described in section 169A.52, subdivision 3, or section 171.177, 
37.25 	subdivision 3, clause (1), when there was probable cause to believe the person had been 
37.26 	driving, operating, or in physical control of a motor vehicle in violation of section 169A.20, 
37.27 	subdivision 1, clause (1), (5), or (6); or subdivision 1, clause (4), where one of the elements 
37.28 	involves a violation of clause (1);
37.29 	(3) a conviction for a violation of section 169A.20, subdivision 1, clause (1), (5), or (6); 
37.30 	or subdivision 1, clause (4), where one of the elements involves a violation of clause (1); 
37.31 	or
38.1 	(4) a determination by the commissioner pursuant to section 171.04, subdivision 1, 
38.2 	clause (10), that the person is inimical to public safety based on one or more violations of 
38.3 	section 169A.20, subdivision 1, clause (1), (5), or (6); or subdivision 1, clause (4), where 
38.4 	one of the elements involves a violation of clause (1).
38.5 	(c) (d) "Location tracking capabilities" means the ability of an electronic or wireless 
38.6 	device to identify and transmit its geographic location through the operation of the device.
38.7 	(d) (e) "Program participant" means a person who has qualified to take part in the ignition 
38.8 	interlock program under this section, and whose driver's license, as a result of an incident 
38.9 	involving alcohol, has been:
38.10 	(1) revoked, canceled, or denied under section 169A.52; 169A.54; 171.04, subdivision 
38.11 	1, clause (10); or 171.177; or
38.12 	(2) revoked under section 171.17, subdivision 1, paragraph (a), clause (1), or suspended 
38.13 	under section 171.187, for a violation of section 609.2113, subdivision 1, clause (2), item 
38.14 	(i) or (iii), (3), or (4); subdivision 2, clause (2), item (i) or (iii), (3), or (4); or subdivision 
38.15 	3, clause (2), item (i) or (iii), (3), or (4); or 609.2114, subdivision 2, clause (2), item (i) or 
38.16 	(iii), (3), or (4), resulting in bodily harm, substantial bodily harm, or great bodily harm.
38.17 	(e) (f) "Qualified prior impaired driving incident" has the meaning given in section 
38.18 	169A.03, subdivision 22.

38.19 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to revocations 
38.20 	and cancellations or denials that occur on or after that date.

38.21 	Sec. 32. Minnesota Statutes 2022, section 171.306, subdivision 8, is amended to read:
38.22 		Subd. 8.Rulemaking. In establishing The commissioner may adopt rules to implement 
38.23 	this section, including but not limited to rules regarding the performance standards and 
38.24 	certification process of subdivision 2, and the program guidelines of subdivision 3, and any 
38.25 	other rules necessary to implement this section, the commissioner is subject to chapter 14.

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

38.27 	Sec. 33. [171.307] INTENSIVE TESTING PROGRAM.
38.28 		Subdivision 1.Definitions. (a) As used in this section, the following terms have the 
38.29 	meanings given.
38.30 	(b) "Incident involving a controlled substance or intoxicating substance" means:
39.1 	(1) a test failure as described in section 169A.52, subdivision 2, paragraph (a), clause 
39.2 	(3); or 171.177, subdivision 3, clause (2), item (iii);
39.3 	(2) a test refusal as described in section 169A.52, subdivision 3, or 171.177, subdivision 
39.4 	3, clause (1), when there was probable cause to believe the person had been driving, 
39.5 	operating, or in physical control of a motor vehicle in violation of section 169A.20, 
39.6 	subdivision 1, clause (2), (3), (4), (7), or (8); or subdivision 2, clause (2), if the court issued 
39.7 	the warrant based on probable cause to believe that the person was under the influence of 
39.8 	a controlled substance or an intoxicating substance;
39.9 	(3) a conviction for a violation of section 169A.20, subdivision 1, clause (2), (3), (4), 
39.10 	(7), or (8); or
39.11 	(4) a determination by the commissioner pursuant to section 171.04, subdivision 1, 
39.12 	clause (10), that the person is inimical to public safety based on one or more violations of 
39.13 	section 169A.20, subdivision 1, clause (2), (3), (4), (7), or (8).
39.14 	(c) "Program participant" means a person who has qualified to take part in the intensive 
39.15 	testing program under this section, and whose driver's license, as the result of an incident 
39.16 	involving a controlled substance or intoxicating substance, has been:
39.17 	(1) revoked, canceled, or denied under section 169A.52; 169A.54; 171.04, subdivision 
39.18 	1, clause (10); or 171.177; or
39.19 	(2) revoked under section 171.17, subdivision 1, paragraph (a), clause (1), or suspended 
39.20 	under section 171.187, for a violation of section 609.2113, subdivision 1, clause (2), item 
39.21 	(ii), (iii), or (iv), (5), or (6); subdivision 2, clause (2), item (ii), (iii), or (iv), (5), or (6); or 
39.22 	subdivision 3, clause (2), item (ii), (iii), or (iv), (5), or (6); or 609.2114, subdivision 2, clause 
39.23 	(2), item (ii), (iii), or (iv), (5), or (6), resulting in bodily harm, substantial bodily harm, or 
39.24 	great bodily harm.
39.25 	(d) "Qualified prior impaired driving incident" has the meaning given in section 169A.03, 
39.26 	subdivision 22.
39.27 		Subd. 2.Program requirements. (a) The commissioner must establish guidelines for 
39.28 	participation in the intensive testing program. A person who seeks to participate in the 
39.29 	program must sign a written acknowledgment that the person has received, reviewed, and 
39.30 	agreed to abide by the program guidelines.
39.31 	(b) The program guidelines must include provisions clearly identifying and prohibiting 
39.32 	the use of masking agents.
40.1 	(c) The program guidelines must include provisions requiring disclosure of any 
40.2 	prescription medications and protocols to assure that testing accounts for prescribed 
40.3 	medications that are taken within the therapeutic range.
40.4 	(d) The commissioner must enter a notation on a person's driving record to indicate that 
40.5 	the person is a program participant.
40.6 	(e) A person under the age of 18 years is not eligible to be a program participant.
40.7 	(f) A program participant must pay costs associated with any required urine analyses.
40.8 	(g) A program participant must participate in any treatment recommended in a chemical 
40.9 	use assessment report.
40.10 	(h) A program participant must submit to regular and random urine analyses and other 
40.11 	testing that take place at least weekly. The results of a random urine analysis or other test 
40.12 	that is ordered by a court or required by probation satisfy the requirement in this paragraph 
40.13 	for the week in which the urine analysis or other test was administered if the results clearly 
40.14 	indicate that the program participant submitted to the urine analysis or test, identify the date 
40.15 	of the test, and are submitted to the commissioner in a form and manner approved by the 
40.16 	commissioner. If a program participant chooses to submit the results of urine analyses or 
40.17 	other tests ordered by a court or required by probation, the commissioner may require that 
40.18 	the program participant sign a written authorization for the release of the results and any 
40.19 	related information including but not limited to information that is a health record as defined 
40.20 	in section 144.291, subdivision 2, paragraph (c).
40.21 		Subd. 3.Issuance of restricted license. (a) Beginning January 1, 2026, the commissioner 
40.22 	must issue a class D driver's license, subject to the applicable limitations and restrictions 
40.23 	of this section, to a program participant who meets the requirements of this section and the 
40.24 	program guidelines. The commissioner must not issue a license unless the program participant 
40.25 	has provided satisfactory proof that:
40.26 	(1) the participant has submitted to a minimum number of preliminary urine analyses 
40.27 	as required by the commissioner that tested negative for the presence of a controlled substance 
40.28 	or its metabolite and for the presence of specified intoxicating substances; and
40.29 	(2) the participant has insurance coverage on any vehicle the participant owns or operates 
40.30 	regularly. If the participant has previously been convicted of violating section 169.791, 
40.31 	169.793, or 169.797 or the participant's license has previously been suspended or canceled 
40.32 	under section 169.792 or 169.797, the commissioner must require the participant to present 
41.1 	an insurance identification card that is certified by the insurance company to be noncancelable 
41.2 	for a period not to exceed 12 months.
41.3 	(b) A program participant whose driver's license has been: (1) revoked under section 
41.4 	169A.52, subdivision 3, paragraph (a), clause (1), (2), or (3), or subdivision 4, paragraph 
41.5 	(a), clause (1), (2), or (3); 169A.54, subdivision 1, clause (1), (2), (3), or (4); or 171.177, 
41.6 	subdivision 4, paragraph (a), clause (1), (2), or (3), or subdivision 5, paragraph (a), clause 
41.7 	(1), (2), or (3); or (2) revoked under section 171.17, subdivision 1, paragraph (a), clause 
41.8 	(1), or suspended under section 171.187, for a violation of section 609.2113, subdivision 
41.9 	1, clause (2), item (ii), (iii), or (iv), (5), or (6); subdivision 2, clause (2), item (ii), (iii), or 
41.10 	(iv), (5), or (6); or subdivision 3, clause (2), item (ii), (iii), or (iv), (5), or (6); or 609.2114, 
41.11 	subdivision 2, clause (2), item (ii), (iii), or (iv), (5), or (6), resulting in bodily harm, 
41.12 	substantial bodily harm, or great bodily harm, where the participant has fewer than two 
41.13 	qualified prior impaired driving incidents within the past ten years or fewer than three 
41.14 	qualified prior impaired driving incidents ever; may apply for conditional reinstatement of 
41.15 	the driver's license, subject to the intensive testing program.
41.16 	(c) A program participant whose driver's license has been: (1) revoked, canceled, or 
41.17 	denied under section 169A.52, subdivision 3, paragraph (a), clause (4), (5), or (6), or 
41.18 	subdivision 4, paragraph (a), clause (4), (5), or (6); 169A.54, subdivision 1, clause (5), (6), 
41.19 	or (7); or 171.177, subdivision 4, paragraph (a), clause (4), (5), or (6), or subdivision 5, 
41.20 	paragraph (a), clause (4), (5), or (6); or (2) revoked under section 171.17, subdivision 1, 
41.21 	paragraph (a), clause (1), or suspended under section 171.187, for a violation of section 
41.22 	609.2113, subdivision 1, clause (2), item (ii), (iii), or (iv), (5), or (6); subdivision 2, clause 
41.23 	(2), item (ii), (iii), or (iv), (5), or (6); or subdivision 3, clause (2), item (ii), (iii), or (iv), (5), 
41.24 	or (6); or 609.2114, subdivision 2, clause (2), item (ii), (iii), or (iv), (5), or (6), resulting in 
41.25 	bodily harm, substantial bodily harm, or great bodily harm, where the participant has two 
41.26 	or more qualified prior impaired driving incidents within the past ten years or three or more 
41.27 	qualified prior impaired driving incidents ever; may apply for conditional reinstatement of 
41.28 	the driver's license, subject to the intensive testing program, if the program participant is 
41.29 	enrolled in a licensed substance use disorder treatment or rehabilitation program as 
41.30 	recommended in a chemical use assessment. As a prerequisite to eligibility for eventual 
41.31 	reinstatement of full driving privileges, a participant whose chemical use assessment 
41.32 	recommended treatment or rehabilitation must complete a licensed substance use disorder 
41.33 	treatment or rehabilitation program. If the program participant submits a urine analysis that 
41.34 	tests positive for the presence of a controlled substance or its metabolite or for the presence 
41.35 	of any specified intoxicating substances, the commissioner must extend the time period that 
42.1 	the participant must participate in the program until the participant has reached the required 
42.2 	abstinence period described in section 169A.55, subdivision 4.
42.3 	(d) Notwithstanding any statute or rule to the contrary, the commissioner has authority 
42.4 	to determine when a program participant is eligible for restoration of full driving privileges, 
42.5 	except that the commissioner must not reinstate full driving privileges until the program 
42.6 	participant has met all applicable prerequisites for reinstatement under section 169A.55 and 
42.7 	until the program participant has not tested positive for the presence of a controlled substance 
42.8 	or its metabolite or for the presence of any specified intoxicating substances during the 
42.9 	preceding 90 days.
42.10 		Subd. 4.Penalties; program violations. (a) If a program participant violates a condition 
42.11 	of a license conditionally reinstated under subdivision 3 and section 171.30, or violates the 
42.12 	program guidelines under subdivision 2, the commissioner must extend the person's 
42.13 	revocation period under section 169A.52, 169A.54, or 171.177 by:
42.14 	(1) 180 days for a first violation;
42.15 	(2) one year for a second violation; or
42.16 	(3) 545 days for a third and each subsequent violation.
42.17 	(b) Notwithstanding paragraph (a), the commissioner may terminate participation in the 
42.18 	program by any person when, in the commissioner's judgment, termination is necessary to 
42.19 	protect the interests of public safety and welfare. In the event of termination, the 
42.20 	commissioner must not reduce the applicable revocation period under section 169A.52, 
42.21 	169A.54, or 171.177 by the amount of time during which the person possessed a limited or 
42.22 	restricted driver's license issued under subdivision 3.
42.23 		Subd. 5.Tampering; penalties. A program participant who tampers with a test required 
42.24 	under this section, including but not limited to submitting a false or adulterated sample, or 
42.25 	a person who advises or otherwise assists a program participant in tampering with a test 
42.26 	required under this section is guilty of a misdemeanor.
42.27 		Subd. 6.Venue. In addition to the provisions of Rule 24 of the Rules of Criminal 
42.28 	Procedure and section 627.01, a violation of subdivision 5 may be prosecuted in:
42.29 	(1) the county in which the tampering is alleged to have taken place;
42.30 	(2) the county in which the accused resides; or
42.31 	(3) the county in which the impaired driving incident occurred, which resulted in the 
42.32 	accused being issued a driver's license with an intensive testing program restriction.
43.1 		Subd. 7.Data. Data on program participants collected under this section are private data 
43.2 	on individuals as defined in section 13.02, subdivision 12. Data must be maintained in the 
43.3 	same manner as all other driver's license records. Access to the data is subject to the 
43.4 	provisions of section 171.12, subdivision 1a.
43.5 		Subd. 8.Rulemaking. The commissioner may adopt rules to implement this section, 
43.6 	including but not limited to rules establishing or amending the program guidelines under 
43.7 	subdivision 2.

43.8 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to revocations 
43.9 	and cancellations or denials that occur on or after that date.

43.10 	Sec. 34. Minnesota Statutes 2022, section 174.02, is amended by adding a subdivision to 
43.11 	read:
43.12 		Subd. 11.Tribal worksite training program. The commissioner must establish a Tribal 
43.13 	worksite training program for state-funded construction projects. The commissioner may 
43.14 	enter into an agreement with any private, public, or Tribal entity for the planning, designing, 
43.15 	developing, and hosting of the program.

43.16 	Sec. 35. [174.249] ZERO-EMISSION TRANSIT BUSES.
43.17 		Subdivision 1.Definition. For purposes of this section, "zero-emission transit bus" has 
43.18 	the meaning given in section 473.3927, subdivision 1a.
43.19 		Subd. 2.Bus procurement exemptions. (a) The commissioner must establish a process 
43.20 	to issue a procurement exemption from the requirements under sections 473.388, subdivision 
43.21 	9, and 473.3927, subdivision 4. An exemption may (1) extend the commencement date for 
43.22 	the respective zero-emission transit bus procurement requirements, or (2) provide for a 
43.23 	modified zero-emission transit bus procurement percentage or phase-in schedule.
43.24 	(b) An entity that seeks an exemption must submit an application, in the form and manner 
43.25 	specified by the commissioner, that includes:
43.26 	(1) a justification for the exemption;
43.27 	(2) a review of activities related to zero-emission transit bus transition planning;
43.28 	(3) demonstration of efforts to procure zero-emission transit buses and associated 
43.29 	infrastructure;
43.30 	(4) a proposed timeline for full compliance, which must include annual procurement 
43.31 	targets and associated milestones; and
44.1 	(5) information required by the commissioner.
44.2 	(c) The commissioner may only issue a procurement exemption following a determination 
44.3 	that:
44.4 	(1) the applicant has made good faith effort to follow the guidance and recommendations 
44.5 	of the transition plan under section 473.3927; and
44.6 	(2) full compliance with procurement requirements is not feasible within the specified 
44.7 	time period due to:
44.8 	(i) technology, infrastructure, utility interconnection, funding, or bus availability 
44.9 	constraints;
44.10 	(ii) a resulting material impact on service reliability or on other means of reducing 
44.11 	greenhouse gas emissions under the transit provider's purview, including transit service 
44.12 	expansion; or
44.13 	(iii) other specified and documented constraints.
44.14 	(d) The commissioner must deny an application for a procurement exemption following 
44.15 	a determination that the applicant made inadequate efforts to meet the relevant procurement 
44.16 	requirements.

44.17 	Sec. 36. Minnesota Statutes 2023 Supplement, section 174.38, subdivision 3, is amended 
44.18 	to read:
44.19 		Subd. 3.Active transportation accounts. (a) An active transportation account is 
44.20 	established in the special revenue fund. The account consists of funds provided by law and 
44.21 	any other money donated, allotted, transferred, or otherwise provided to the account. Money 
44.22 	in the account is annually appropriated to the commissioner and must be expended only on 
44.23 	projects that receive financial assistance as provided under this section.
44.24 	(b) An active transportation account is established in the bond proceeds fund. The account 
44.25 	consists of state bond proceeds appropriated to the commissioner. Money in the account 
44.26 	may only be expended on bond-eligible costs of a project receiving financial assistance as 
44.27 	provided under this section. Money in the account may only be expended on a project that 
44.28 	is publicly owned.
44.29 	(c) An active transportation account is established in the general fund. The account 
44.30 	consists of money as provided by law and any other money donated, allotted, transferred, 
44.31 	or otherwise provided to the account. Money in the account may only be expended on a 
44.32 	project receiving financial assistance as provided under this section.

45.1 	Sec. 37. Minnesota Statutes 2023 Supplement, section 174.38, subdivision 6, is amended 
45.2 	to read:
45.3 		Subd. 6.Use of funds. (a) The commissioner must determine permissible uses of financial 
45.4 	assistance funds available under this section, which are limited to:
45.5 	(1) construction and maintenance of bicycle, trail, and pedestrian infrastructure, including 
45.6 	but not limited to safe routes to school infrastructure and bicycle facilities and centers; and
45.7 	(2) noninfrastructure programming, including activities as specified in section 174.40, 
45.8 	subdivision 7a, paragraph (b); and
45.9 	(3) as provided in this subdivision.
45.10 	(b) Of the amount made available in each fiscal year, the first $500,000 is for grants to 
45.11 	develop, maintain, and implement active transportation safety curriculum for youth ages 
45.12 	five to 14 years old, and if remaining funds are available, for (1) youth ages 15 to 17 years 
45.13 	old, (2) adult active transportation safety programs, and (3) adult learn-to-ride programs. 
45.14 	The curriculum must include resources for teachers and must meet the model training 
45.15 	materials requirements under section 123B.935, subdivision 4.
45.16 	(c) Of the amount made available, $245,000 in each of fiscal years 2025 to 2028 is for 
45.17 	costs related to complete streets implementation training under section 174.75, subdivision 
45.18 	2a.

45.19 	Sec. 38. [174.595] TRANSPORTATION FACILITIES CAPITAL PROGRAM.
45.20 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
45.21 	the meanings given.
45.22 	(b) "Capital building asset" includes but is not limited to district headquarters buildings, 
45.23 	truck stations, salt storage or other unheated storage buildings, deicing and anti-icing 
45.24 	facilities, fuel dispensing facilities, highway rest areas, and vehicle weigh and inspection 
45.25 	stations.
45.26 	(c) "Commissioner" means the commissioner of transportation.
45.27 	(d) "Department" means the Department of Transportation.
45.28 	(e) "Program" means the transportation facilities capital program established in this 
45.29 	section.
46.1 		Subd. 2.Program established. The commissioner must establish a transportation 
46.2 	facilities capital program in conformance with this section to provide for capital building 
46.3 	asset projects related to buildings and other capital facilities of the department.
46.4 		Subd. 3.Transportation facilities capital accounts. (a) A transportation facilities 
46.5 	capital account is established in the trunk highway fund. The account consists of money 
46.6 	appropriated from the trunk highway fund for the purposes of the program and any other 
46.7 	money donated, allotted, transferred, or otherwise provided to the account by law.
46.8 	(b) A transportation facilities capital subaccount is established in the bond proceeds 
46.9 	account in the trunk highway fund. The subaccount consists of trunk highway bond proceeds 
46.10 	appropriated to the commissioner for the purposes of the program. Money in the subaccount 
46.11 	may only be expended on trunk highway purposes, including the purposes specified in this 
46.12 	section.
46.13 		Subd. 4.Implementation standards. The commissioner must establish a process to 
46.14 	implement the program that includes allocation of funding based on review of eligible 
46.15 	projects as provided under subdivision 5 and prioritization as provided under subdivision 
46.16 	6. The process must be in conformance with trunk highway fund uses for the purposes of 
46.17 	constructing, improving, and maintaining the trunk highway system in the state pursuant 
46.18 	to the Minnesota Constitution, article XIV.
46.19 		Subd. 5.Eligible expenditures. A project is eligible under this section only if the project:
46.20 	(1) involves the construction, improvement, or maintenance of a capital building asset 
46.21 	that is part of the trunk highway system; and
46.22 	(2) accomplishes at least one of the following:
46.23 	(i) supports the programmatic mission of the department;
46.24 	(ii) extends the useful life of existing buildings; or
46.25 	(iii) renovates or constructs facilities to meet the department's current and future 
46.26 	operational needs.
46.27 		Subd. 6.Prioritization. In prioritizing funding allocation among projects under the 
46.28 	program, the commissioner must consider:
46.29 	(1) whether a project ensures the effective and efficient condition and operation of the 
46.30 	facility;
46.31 	(2) the urgency in ensuring the safe use of existing buildings;
46.32 	(3) the project's total life-cycle cost;
47.1 	(4) additional criteria for priorities otherwise specified in law that apply to a category 
47.2 	listed in the act making an appropriation for the program; and
47.3 	(5) any other criteria the commissioner deems necessary.

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

47.5 	Sec. 39. Minnesota Statutes 2023 Supplement, section 174.634, subdivision 2, is amended 
47.6 	to read:
47.7 		Subd. 2.Passenger rail account; transfers; appropriation. (a) A passenger rail account 
47.8 	is established in the special revenue fund. The account consists of funds as provided in this 
47.9 	subdivision and any other money donated, allotted, transferred, collected, or otherwise 
47.10 	provided to the account.
47.11 	(b) By July 15 annually beginning in calendar year 2027, the commissioner of revenue 
47.12 	must transfer an amount from the general fund to the passenger rail account that equals 50 
47.13 	percent of the portion of the state general tax under section 275.025 levied on railroad 
47.14 	operating property, as defined under section 273.13, subdivision 24, in the prior calendar 
47.15 	year.
47.16 	(c) Money in the account is annually appropriated to the commissioner of transportation 
47.17 	for the net operating and capital maintenance costs of intercity passenger rail, which may 
47.18 	include but are not limited to planning, designing, developing, constructing, equipping, 
47.19 	administering, operating, promoting, maintaining, and improving passenger rail service 
47.20 	within the state, after accounting for operating revenue, federal funds, and other sources.

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

47.22 	Sec. 40. Minnesota Statutes 2023 Supplement, section 174.634, is amended by adding a 
47.23 	subdivision to read:
47.24 		Subd. 3.Fee and revenue collection authorized. In order to maintain a balanced 
47.25 	transportation system in the state required by the public convenience and necessity, the 
47.26 	commissioner may, directly or through a contractor, vendor, operator, or partnership with 
47.27 	a federal or state government entity, including Amtrak, collect a fee or other revenue related 
47.28 	to passenger rail services within the state. Fees and revenue to be collected include but are 
47.29 	not limited to fees and revenue generated through ticket sales and sales of on-board and 
47.30 	promotional goods. Revenue may be collected as determined by the commissioner. Fees 
47.31 	and revenue collected under this subdivision must be deposited in the passenger rail account 
48.1 	in the special revenue fund. Fees and revenue under this section are not subject to section 
48.2 	16A.1283.

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

48.4 	Sec. 41. Minnesota Statutes 2022, section 174.75, subdivision 1, is amended to read:
48.5 		Subdivision 1.Definition Definitions. (a) For purposes of this section, the following 
48.6 	terms have the meanings given.
48.7 	(b) "Complete streets" is the planning, scoping, design, implementation, operation, and 
48.8 	maintenance of roads in order to reasonably address the safety and accessibility needs of 
48.9 	users of all ages and abilities. Complete streets considers the needs of motorists, pedestrians, 
48.10 	transit users and vehicles, bicyclists, and commercial and emergency vehicles moving along 
48.11 	and across roads, intersections, and crossings in a manner that is sensitive to the local context 
48.12 	and recognizes that the needs vary in urban, suburban, and rural settings.
48.13 	(c) "Vulnerable road user" has the meaning given in section 169.011, subdivision 92b.

48.14 	Sec. 42. Minnesota Statutes 2022, section 174.75, subdivision 2, is amended to read:
48.15 		Subd. 2.Implementation. (a) The commissioner shall must implement a complete 
48.16 	streets policy after consultation with stakeholders, state and regional agencies, local 
48.17 	governments, and road authorities. The commissioner, after such consultation, shall must
48.18 	address relevant protocols, guidance, standards, requirements, and training, and shall 
48.19 	integrate.
48.20 	(b) The complete streets policy must include but is not limited to:
48.21 	(1) integration of related principles of context-sensitive solutions.;
48.22 	(2) integration throughout the project development process;
48.23 	(3) methods to evaluate inclusion of active transportation facilities in a project, which 
48.24 	may include but are not limited to sidewalks, crosswalk markings, pedestrian accessibility, 
48.25 	and bikeways; and
48.26 	(4) consideration of consultation with other road authorities regarding existing and 
48.27 	planned active transportation network connections.

49.1 	Sec. 43. Minnesota Statutes 2022, section 174.75, is amended by adding a subdivision to 
49.2 	read:
49.3 		Subd. 2a.Implementation guidance. The commissioner must maintain guidance that 
49.4 	accompanies the complete streets policy under this section. The guidance must include 
49.5 	sections on:
49.6 	(1) an analysis framework that provides for:
49.7 	(i) identification of characteristics of a project;
49.8 	(ii) highway system categorization based on context, including population density, land 
49.9 	use, density and scale of surrounding development, volume of highway use, and the nature 
49.10 	and extent of active transportation; and
49.11 	(iii) relative emphasis for different road system users in each of the categories under 
49.12 	item (ii) in a manner that supports safety and mobility of vulnerable road users, motorcyclists 
49.13 	or other operators of two- or three-wheeled vehicles, and public transit users; and
49.14 	(2) an analysis of speed limit reductions and associated roadway design modifications 
49.15 	to support safety and mobility in active transportation.

49.16 	Sec. 44. Minnesota Statutes 2022, section 216E.02, subdivision 1, is amended to read:
49.17 		Subdivision 1.Policy. The legislature hereby declares it to be the policy of the state to 
49.18 	locate large electric power facilities and high voltage transmission lines in an orderly manner 
49.19 	compatible with environmental preservation and the efficient use of resources. In accordance 
49.20 	with this policy the commission shall choose locations that minimize adverse human and 
49.21 	environmental impact while insuring continuing electric power system reliability and integrity 
49.22 	and insuring that electric energy needs are met and fulfilled in an orderly and timely fashion.

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

49.24 	Sec. 45. Minnesota Statutes 2023 Supplement, section 219.015, subdivision 2, is amended 
49.25 	to read:
49.26 		Subd. 2.Railroad company assessment; account; appropriation. (a) As provided in 
49.27 	this subdivision, the commissioner must annually assess railroad companies that are (1) 
49.28 	defined as common carriers under section 218.011; (2) classified by federal law or regulation 
49.29 	as Class I Railroads, Class I Rail Carriers, Class II Railroads, or Class II Rail Carriers; and 
49.30 	(3) operating in this state.
50.1 	(b) The assessment must be calculated to allocate state rail safety inspection program 
50.2 	costs proportionally among carriers based on route miles operated in Minnesota at the time 
50.3 	of assessment. The commissioner must include in the assessment calculation all state rail 
50.4 	safety inspection program costs to support up to six rail safety inspector positions, including 
50.5 	but not limited to salary, administration, supervision, travel, equipment, training, and ongoing 
50.6 	state rail inspector duties.
50.7 	(c) The assessments collected under this subdivision must be deposited in a state rail 
50.8 	safety inspection account, which is established in the special revenue fund. The account 
50.9 	consists of funds provided by this subdivision and section 221.0255 and any other money 
50.10 	donated, allotted, transferred, or otherwise provided to the account. Money in the account 
50.11 	is annually appropriated to the commissioner to administer the state rail safety inspection 
50.12 	program and for costs under section 221.0255.

50.13 	Sec. 46. [219.382] WAYSIDE DETECTOR SYSTEMS.
50.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
50.15 	the meanings given.
50.16 	(b) "Hazardous substance" has the meaning given in section 219.055, subdivision 1, 
50.17 	paragraph (e).
50.18 	(c) "Wayside detector system" means one or more electronic devices that: (1) perform 
50.19 	automated scanning of passing trains, rolling stock, and on-track equipment to detect defects 
50.20 	or precursors to defects in equipment or component parts; and (2) provide notification to 
50.21 	individuals of a defect or precursor to a defect.
50.22 		Subd. 2.Application. The requirements in this section apply to:
50.23 	(1) a Class I railroad; and
50.24 	(2) a Class II railroad or Class III railroad when transporting a hazardous substance at 
50.25 	a speed that exceeds ten miles per hour.
50.26 		Subd. 3.Wayside detector system requirements. (a) A railroad must maintain 
50.27 	operational wayside detector systems located at intervals of:
50.28 	(1) at least every ten miles of mainline track in the state; or
50.29 	(2) at least every 15 miles of mainline track in the state if necessary due to the natural 
50.30 	terrain.
50.31 	(b) A wayside detector system under this section must include a hot bearings detector 
50.32 	and a dragging equipment detector.
51.1 		Subd. 4.Defect notifications. Promptly after a wayside detector system provides a 
51.2 	notification regarding a defect, the railroad must:
51.3 	(1) stop the train in accordance with the railroad's applicable safety procedures;
51.4 	(2) inspect the location of the defect from a position on the ground;
51.5 	(3) if the inspection indicates that the train is not safe for movement, make necessary 
51.6 	repairs prior to movement;
51.7 	(4) if the inspection indicates that the train is safe for movement or if repairs are 
51.8 	performed under clause (3):
51.9 	(i) proceed at a speed that does not exceed (A) 30 miles per hour if the train is not 
51.10 	transporting a hazardous substance, or (B) ten miles per hour if the train is transporting a 
51.11 	hazardous substance; and
51.12 	(ii) remove and set out any defective car at the earliest opportunity; and
51.13 	(5) provide for the train crew to prepare a written inspection report and submit it to the 
51.14 	appropriate personnel within the railroad.
51.15 		Subd. 5.Report to commissioner. By January 15 annually, a railroad that is subject to 
51.16 	this section must submit a report to the commissioner on wayside detector systems installed 
51.17 	in this state. At a minimum, the report must include:
51.18 	(1) an overview of each wayside detector system, which must include:
51.19 	(i) its type and primary characteristics;
51.20 	(ii) the nearest milepost number, latitude and longitude coordinates, or other information 
51.21 	that specifically identifies its location; and
51.22 	(iii) a review of the operational status of the hot bearings detector and the dragging 
51.23 	equipment detector throughout the prior 12 months; and
51.24 	(2) other information on wayside detector systems as required by the commissioner.

51.25 	EFFECTIVE DATE. This section is effective January 1, 2025.

51.26 	Sec. 47. [219.5505] TRAIN LENGTH.
51.27 		Subdivision 1.Definition. For purposes of this section, "railroad" means a common 
51.28 	carrier that is classified by federal law or regulation as a Class I railroad, Class II railroad, 
51.29 	or Class III railroad.
52.1 		Subd. 2.Maximum length. A railroad must not operate a train in this state that has a 
52.2 	total length in excess of 8,500 feet.
52.3 		Subd. 3.Penalty. (a) A railroad that violates this section is subject to a penalty of:
52.4 	(1) not less than $1,000 or more than $5,000 for a first offense;
52.5 	(2) not less than $5,000 or more than $10,000 for a second offense committed within 
52.6 	three years of the first offense; and
52.7 	(3) not less than $25,000 for a third or subsequent offense committed within three years 
52.8 	of the first offense.
52.9 	(b) The commissioner of transportation may enforce this section in a civil action before 
52.10 	a judge of a county in which the violation occurs.
52.11 	(c) Fines collected under this section must be deposited in the state rail safety inspection 
52.12 	account in the special revenue fund.

52.13 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to violations 
52.14 	committed on or after that date.

52.15 	Sec. 48. [219.756] YARDMASTER HOURS OF SERVICE.
52.16 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
52.17 	the meanings given.
52.18 	(b) "Railroad" means a common carrier that is classified by federal law or regulation as 
52.19 	Class I railroad, Class II railroad, or Class III railroad.
52.20 	(c) "Yardmaster" means an employee of a common carrier who is responsible for 
52.21 	supervising and coordinating the control of trains and engines operating within a railyard, 
52.22 	not including a dispatching service employee, signal employee, or train employee as those 
52.23 	terms are defined in United States Code, title 49, section 21101.
52.24 		Subd. 2.Hours of service. (a) A railroad operating in this state must not require or allow 
52.25 	a yardmaster to remain or go on duty:
52.26 	(1) in any month when the employee has spent a total of 276 hours on duty or in any 
52.27 	other mandatory service for the carrier;
52.28 	(2) for a period exceeding 12 consecutive hours; and
52.29 	(3) unless the employee has had at least ten consecutive hours off duty during the prior 
52.30 	24 hours.
53.1 	(b) A railroad operating in this state must not require or allow a yardmaster to remain 
53.2 	or go on duty after the employee has initiated an on-duty period each day for six consecutive 
53.3 	days unless the employee has had 48 consecutive hours off at the employee's home terminal, 
53.4 	during which time the employee is unavailable for any service.

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

53.6 	Sec. 49. Minnesota Statutes 2022, section 221.0255, subdivision 4, is amended to read:
53.7 		Subd. 4.Motor carrier of railroad employees; requirements. (a) The motor carrier 
53.8 	of railroad employees must implement a policy that provides for annual training and 
53.9 	certification of the operator in:
53.10 	(1) safe operation of the vehicle transporting railroad employees;
53.11 	(2) knowing and understanding relevant laws, rules of the road, and safety policies;
53.12 	(3) handling emergency situations;
53.13 	(4) proper use of seat belts;
53.14 	(5) performance of pretrip and posttrip vehicle inspections, and inspection record keeping; 
53.15 	and
53.16 	(6) proper maintenance of required records.
53.17 	(b) The motor carrier of railroad employees must:
53.18 	(1) confirm that the person is not disqualified under subdivision 6, by performing a 
53.19 	criminal background check of the operator, which must include:
53.20 	(i) a criminal history check of the state criminal records repository; and
53.21 	(ii) if the operator has resided in Minnesota less than five years, a criminal history check 
53.22 	from each state of residence for the previous five years;
53.23 	(2) annually verify the operator's driver's license;
53.24 	(3) document meeting the requirements in this subdivision, which must include 
53.25 	maintaining at the carrier's business location:
53.26 	(i) a driver qualification file on each operator who transports passengers under this 
53.27 	section; and
53.28 	(ii) records of pretrip and posttrip vehicle inspections as required under subdivision 3, 
53.29 	paragraph (a), clause (3);
54.1 	(4) maintain liability insurance in a minimum amount of $5,000,000 regardless of the 
54.2 	seating capacity of the vehicle;
54.3 	(5) maintain uninsured and underinsured coverage in a minimum amount of $1,000,000
54.4 	$5,000,000; and
54.5 	(6) ensure inspection of each vehicle operated under this section as provided under 
54.6 	section 169.781.
54.7 	(c) A driver qualification file under paragraph (b), clause (3), must include:
54.8 	(1) a copy of the operator's most recent medical examiner's certificate;
54.9 	(2) a copy of the operator's current driver's license;
54.10 	(3) documentation of annual license verification;
54.11 	(4) documentation of annual training;
54.12 	(5) documentation of any known violations of motor vehicle or traffic laws; and
54.13 	(6) responses from previous employers, if required by the current employer.
54.14 	(d) The driver qualification file must be retained for one year following the date of 
54.15 	separation of employment of the driver from the carrier. A record of inspection under 
54.16 	paragraph (b), clause (3), item (ii), must be retained for one year following the date of 
54.17 	inspection.
54.18 	(e) If a party contracts with the motor carrier on behalf of the railroad to transport the 
54.19 	railroad employees, then the insurance requirements may be satisfied by either that party 
54.20 	or the motor carrier, so long as the motor carrier is a named insured or additional insured 
54.21 	under any policy.

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

54.23 	Sec. 50. Minnesota Statutes 2022, section 221.0255, subdivision 9, is amended to read:
54.24 		Subd. 9.Inspection and investigation authority. (a) Upon receipt of a complaint form 
54.25 	or other information alleging a violation of this section, the commissioner must investigate 
54.26 	the relevant matter. Representatives of the Department of Transportation and the State Patrol 
54.27 	have the authority to enter, at a reasonable time and place, any vehicle or facility of the 
54.28 	carrier for purposes of complaint investigations, random inspections, safety reviews, audits, 
54.29 	or accident investigations.
55.1 	(b) Failure of a railroad or motor carrier of railroad employees to permit a complaint 
55.2 	investigation under this subdivision is grounds for issuance of a civil penalty under 
55.3 	subdivision 10.

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

55.5 	Sec. 51. Minnesota Statutes 2022, section 221.0255, is amended by adding a subdivision 
55.6 	to read:
55.7 		Subd. 10.Civil penalty. (a) After completion of an investigation or as provided in 
55.8 	subdivision 9, paragraph (b), the commissioner may issue a civil penalty to a railroad or 
55.9 	motor carrier of railroad employees that violates this section. A civil penalty issued under 
55.10 	this paragraph is in the amount of:
55.11 	(1) not less than $200 but not more than $500 for a first offense;
55.12 	(2) not less than $500 but not more than $1,000 for a second offense; and
55.13 	(3) not less than $1,000 but not more than $5,000 for a third or subsequent offense 
55.14 	committed within three years of the first offense.
55.15 	(b) The civil penalty amounts identified under paragraph (a) are for all violations 
55.16 	identified in a single investigation and are not per violation.
55.17 	(c) The recipient of a civil penalty under this subdivision has 30 days to notify the 
55.18 	commissioner in writing of intent to contest the civil penalty. If within 30 days after receiving 
55.19 	the civil penalty the recipient fails to notify the commissioner of intent to contest the penalty, 
55.20 	the civil penalty is not subject to further review.
55.21 	(d) Civil penalties assessed under this subdivision are subject to chapter 14 and may be 
55.22 	recovered in a civil action.
55.23 	(e) Civil penalties collected under this section must be deposited in the state rail safety 
55.24 	inspection account in the special revenue fund.

55.25 	EFFECTIVE DATE. This section is effective August 1, 2024, and applies to violations 
55.26 	committed on or after that date.

55.27 	Sec. 52. [325F.661] SALE OF ELECTRIC-ASSISTED BICYCLES AND POWERED 
55.28 	CYCLES.
55.29 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
55.30 	the meanings given.
56.1 	(b) "Class 1 electric-assisted bicycle," "class 2 electric-assisted bicycle," and "class 3 
56.2 	electric-assisted bicycle" have the meanings given in section 169.011, subdivisions 15a, 
56.3 	15b, and 15c.
56.4 	(c) "Electric-assisted bicycle" has the meaning given in section 169.011, subdivision 
56.5 	27.
56.6 	(d) "Multiple mode electric-assisted bicycle" has the meaning given in section 169.011, 
56.7 	subdivision 45a.
56.8 	(e) "Powered cycle" means a vehicle that has an electric motor, has fewer than four 
56.9 	wheels, and:
56.10 	(1) does not meet all of the requirements of an electric-assisted bicycle as sold or due 
56.11 	to modification by any person; or
56.12 	(2) is designed, manufactured, or intended by the manufacturer or seller to be easily 
56.13 	configured so as not to meet all of the requirements of an electric-assisted bicycle, whether 
56.14 	by a mechanical switch or button, by changing a setting in software controlling the drive 
56.15 	system, by use of an app, or through any other means intended by the manufacturer or seller.
56.16 	A vehicle that meets the requirements of a powered cycle is not an electric-assisted bicycle.
56.17 		Subd. 2.Electric-assisted bicycle. Before a purchase is completed, a seller of an 
56.18 	electric-assisted bicycle must disclose to a consumer in written form:
56.19 	(1) the maximum motor power of the electric-assisted bicycle;
56.20 	(2) the maximum speed of the electric-assisted bicycle, as evaluated using a test method 
56.21 	matching the criteria specified in Code of Federal Regulations, title 16, section 1512.2(a)(2), 
56.22 	or successor requirements; and
56.23 	(3) whether the electric-assisted bicycle is a class 1, class 2, class 3, or multiple mode 
56.24 	electric-assisted bicycle.
56.25 		Subd. 3.Powered cycle. (a) A seller of a new powered cycle may not sell the vehicle 
56.26 	or offer the vehicle for sale if it is labeled as a class 1, class 2, class 3, or multiple mode 
56.27 	electric-assisted bicycle.
56.28 	(b) Before a purchase is completed and in any advertising materials, a seller of a new 
56.29 	powered cycle who describes the vehicle as an "electric bicycle," "electric bike," "e-bike," 
56.30 	or other similar term must disclose to a consumer:
56.31 	(1) the name or classification of the vehicle under state law or the most likely 
56.32 	classification following an intended or anticipated vehicle modification; and
57.1 	(2) the following statement:
57.2 	"This vehicle is not an "electric-assisted bicycle" as defined in Minnesota law. It is 
57.3 	instead a type of motor vehicle and subject to applicable motor vehicle laws if used on 
57.4 	public roads or public lands. Your insurance policies might not provide coverage for crashes 
57.5 	involving the use of this vehicle. To determine coverage, you should contact your insurance 
57.6 	company or agent."
57.7 	(c) Advertising materials under paragraph (b) include but are not limited to a website 
57.8 	or social media post that identifies or promotes the vehicle.
57.9 	(d) The disclosure under paragraph (b) must be (1) written, and (2) provided clearly and 
57.10 	conspicuously and in a manner designed to attract the attention of a consumer.
57.11 		Subd. 4.Unlawful practices. It is an unlawful practice under section 325F.69 to advertise, 
57.12 	offer for sale, or sell a powered cycle:
57.13 	(1) as an electric-assisted bicycle; or
57.14 	(2) using the words "electric bicycle," "electric bike," "e-bike," or other similar term 
57.15 	without providing the disclosure required under subdivision 3.

57.16 	Sec. 53. Minnesota Statutes 2022, section 473.13, is amended by adding a subdivision to 
57.17 	read:
57.18 		Subd. 6.Transportation financial review. (a) By April 1 annually, the council must 
57.19 	prepare and submit a financial review in consultation with the commissioner of management 
57.20 	and budget that details revenue and expenditures for the transportation components under 
57.21 	the council's budget. The council must submit the financial review to the chairs and ranking 
57.22 	minority members of the legislative committees and divisions with jurisdiction over 
57.23 	transportation policy and finance.
57.24 	(b) At a minimum, the financial review must identify:
57.25 	(1) the actual revenues, expenditures, transfers, reserves, and balances in each of the 
57.26 	previous four budget years;
57.27 	(2) budgeted and forecasted revenues, expenditures, transfers, reserves, and balances in 
57.28 	the current year and each budget year within the state forecast period;
57.29 	(3) for the most recent completed budget year, a comparison between the budgeted and 
57.30 	actual amounts under clause (1); and
58.1 	(4) for the most recent completed budget year, fund balances for each replacement service 
58.2 	provider under section 473.388.
58.3 	(c) The information under paragraph (b), clauses (1) to (3), must include:
58.4 	(1) a breakout for each transportation funding source identified by the council;
58.5 	(2) a breakout for each transportation operating budget category established by the 
58.6 	council, including but not limited to bus, light rail transit, commuter rail, planning, special 
58.7 	transportation service under section 473.386, and assistance to replacement service providers 
58.8 	under section 473.388; and
58.9 	(3) data for operations, capital maintenance, and transit capital.
58.10 	(d) The financial review must summarize reserve policies, identify the methodology for 
58.11 	cost allocation, and describe revenue assumptions and variables affecting the assumptions.

58.12 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
58.13 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
58.14 	Scott, and Washington.

58.15 	Sec. 54. Minnesota Statutes 2022, section 473.388, is amended by adding a subdivision 
58.16 	to read:
58.17 		Subd. 9.Bus procurement. (a) For purposes of this subdivision:
58.18 	(1) "qualified transit bus" has the meaning given in section 473.3927, subdivision 1a;
58.19 	(2) "special transportation service" has the meaning given in section 174.29, subdivision 
58.20 	1; and
58.21 	(3) "zero-emission transit bus" has the meaning given in section 473.3927, subdivision 
58.22 	1a.
58.23 	(b) Beginning on January 1, 2030, at least 50 percent of the qualified transit buses 
58.24 	annually purchased for regular route transit service or special transportation service by a 
58.25 	recipient of financial assistance under this section must be a zero-emission transit bus.
58.26 	(c) Beginning on January 1, 2035, any qualified transit bus purchased for regular route 
58.27 	transit service or special transportation service by a recipient of financial assistance under 
58.28 	this section must be a zero-emission transit bus.

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

59.1 	Sec. 55. Minnesota Statutes 2022, section 473.3927, is amended to read:
59.2 	473.3927 ZERO-EMISSION AND ELECTRIC TRANSIT VEHICLES.
59.3 		Subdivision 1.Transition plan required. (a) The council must develop and maintain 
59.4 	a zero-emission and electric transit vehicle transition plan.
59.5 	(b) The council must complete the initial revise the plan by February 15, 2022 2025, 
59.6 	and revise the plan at least once every five three years following each prior revision.
59.7 		Subd. 1a.Definitions. (a) For purposes of this section, the following terms have the 
59.8 	meanings given.
59.9 	(b) "Greenhouse gas emissions" includes those emissions described in section 216H.01, 
59.10 	subdivision 2.
59.11 	(c) "Qualified transit bus" means a motor vehicle that meets the requirements under 
59.12 	paragraph (d), clauses (1) and (2).
59.13 	(d) "Zero-emission transit bus" means a motor vehicle that:
59.14 	(1) is designed for public transit service;
59.15 	(2) has a capacity of more than 15 passengers, including the driver; and
59.16 	(3) produces no exhaust-based greenhouse gas emissions from the onboard source of 
59.17 	motive power of the vehicle under all operating conditions.
59.18 		Subd. 2.Plan development. At a minimum, the plan must:
59.19 	(1) establish implementation policies and, guidance, and recommendations to implement 
59.20 	the transition to a transit service fleet of exclusively zero-emission and electric transit 
59.21 	vehicles, including for recipients of financial assistance under section 473.388;
59.22 	(2) align with the requirements under subdivision 4 and section 473.388, subdivision 9;
59.23 	(3) consider methods for transit providers to maximize greenhouse gas reduction in 
59.24 	addition to zero-emission transit bus procurement, including but not limited to service 
59.25 	expansion, reliability improvements, and other transit service improvements;
59.26 	(4) analyze greenhouse gas emission reduction from transit improvements identified 
59.27 	under clause (3) in comparison to zero-emission transit bus procurement;
59.28 	(5) set transition milestones or performance measures, or both, which may include vehicle 
59.29 	procurement goals over the transition period;
60.1 	(3) (6) identify barriers, constraints, and risks, and determine objectives and strategies 
60.2 	to address the issues identified;
60.3 	(4) (7) consider findings and best practices from other transit agencies;
60.4 	(5) (8) analyze zero-emission and electric transit vehicle technology impacts, including 
60.5 	cold weather operation and emerging technologies;
60.6 	(9) prioritize deployment of zero-emission transit buses based on the extent to which 
60.7 	service is provided to environmental justice areas, as defined in section 116.065, subdivision 
60.8 	1;
60.9 	(6) (10) consider opportunities to prioritize the deployment of zero-emissions vehicles 
60.10 	in areas with poor air quality;
60.11 	(11) consider opportunities to prioritize deployment of zero-emission transit buses along 
60.12 	arterial and highway bus rapid transit routes, including methods to maximize cost 
60.13 	effectiveness with bus rapid transit construction projects;
60.14 	(7) (12) provide detailed estimates of implementation costs to implement the plan and 
60.15 	meet the requirements under subdivision 4 and section 473.388, subdivision 9, which, to 
60.16 	the extent feasible, must include a forecast of annual expenditures, identification of potential 
60.17 	sources of funding, and a summary of any anticipated or planned activity to seek additional 
60.18 	funds; and
60.19 	(8) (13) examine capacity, constraints, and potential investments in the electric 
60.20 	transmission and distribution grid, in consultation with appropriate public utilities;
60.21 	(14) identify methods to coordinate necessary facility upgrades in a manner that 
60.22 	maximizes cost effectiveness and overall system reliability;
60.23 	(15) examine workforce impacts under the transition plan, including but not limited to 
60.24 	changes in staffing complement; personnel skill gaps and needs; and employee training, 
60.25 	retraining, or role transitions; and
60.26 	(16) summarize updates to the plan from the most recent version.
60.27 		Subd. 3.Copy to legislature. Upon completion or revision of the plan, the council must 
60.28 	provide a copy to the chairs, ranking minority members, and staff of the legislative 
60.29 	committees with jurisdiction over transportation policy and finance.
60.30 		Subd. 4.Bus procurement. (a) Beginning on January 1, 2030, at least 50 percent of the 
60.31 	qualified transit buses annually purchased for regular route transit service or special 
61.1 	transportation service under section 473.386 by the council must be a zero-emission transit 
61.2 	bus.
61.3 	(b) Beginning on January 1, 2035, any qualified transit bus purchased for regular route 
61.4 	transit service or special transportation service under section 473.386 by the council must 
61.5 	be a zero-emission transit bus.

61.6 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
61.7 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
61.8 	Scott, and Washington.

61.9 	Sec. 56. Minnesota Statutes 2023 Supplement, section 473.4051, is amended by adding 
61.10 	a subdivision to read:
61.11 		Subd. 4.Bus rapid transit project infrastructure. (a) The council must design, 
61.12 	construct, and fully fund the following elements of all bus rapid transit projects, regardless 
61.13 	of the project's scope: (1) sidewalk curb ramps and signals meeting the most current 
61.14 	Americans with Disabilities Act standards at all intersection quadrants in intersections 
61.15 	affected by construction of a bus rapid transit station; and (2) transit priority infrastructure, 
61.16 	including but not limited to red transit pavement marking and traffic signal modifications.
61.17 	(b) Intersections impacted by the requirements under paragraph (a) must include 
61.18 	infrastructure serving the bus rapid transit station from the opposite side of a street or from 
61.19 	a nonadjacent mid-block location. This paragraph must be construed to require full and 
61.20 	complete intersection upgrades to the most current Americans with Disabilities Act design 
61.21 	standards, notwithstanding any conflicting or lesser minimum requirements or suggestions 
61.22 	set forth in separate laws, regulations, advisories, or other published Americans with 
61.23 	Disabilities Act materials.

61.24 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
61.25 	final enactment for projects that first commence construction on or after that date. This 
61.26 	section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
61.27 	Washington.

61.28 	Sec. 57. COMMUNITY ROADSIDE LANDSCAPE PARTNERSHIPS.
 61.29 	Subject to available funds, the commissioner of transportation must assess and undertake 
61.30 	methods to improve and expand the Department of Transportation's community roadside 
61.31 	landscape partnership program, including:
62.1 	(1) identifying and evaluating locations for partnership opportunities throughout the 
62.2 	state where there is high traffic volume and minimal existing vegetation coverage in the 
62.3 	form of trees or large shrubs;
62.4 	(2) performing outreach and engagement about the program with eligible community 
62.5 	partners;
62.6 	(3) prioritizing roadsides where vegetation could reduce neighborhood noise impacts or 
62.7 	improve aesthetics for neighborhoods that border interstate highways without regard to 
62.8 	whether there are existing noise walls; and
62.9 	(4) analyzing methods to include cost sharing between the department and participating 
62.10 	community partners for ongoing landscape maintenance.

62.11 	Sec. 58. REVISOR INSTRUCTION.
 62.12 	The revisor of statutes must recodify Minnesota Statutes, section 169.21, subdivision 
62.13 	6, as Minnesota Statutes, section 171.0701, subdivision 1b. The revisor must correct any 
62.14 	cross-references made necessary by this recodification.

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

62.16 	Sec. 59. REVISOR INSTRUCTION.
 62.17 	The revisor of statutes must recodify Minnesota Statutes, section 473.3927, subdivision 
62.18 	1, as Minnesota Statutes, section 473.3927, subdivision 1b. The revisor must correct any 
62.19 	cross-references made necessary by this recodification.

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

62.21 	Sec. 60. REPEALER.
 62.22 	(a) Minnesota Statutes 2022, section 168.1297, is repealed.
62.23 	(b) Minnesota Rules, part 7410.6180, is repealed.

62.24 	EFFECTIVE DATE. Paragraph (b) is effective the day following final enactment.

62.25 	ARTICLE 3
62.26 	LABOR APPROPRIATIONS

62.27	Section 1. APPROPRIATIONS.
 	
62.28 	(a) The sums shown in the columns under "Appropriations" are added to the 
62.29 	appropriations in Laws 2023, chapter 53, or other law to the specified agency. The 
63.1 	appropriations are from the general fund, or another named fund, and are available for the 
63.2 	fiscal years indicated for each purpose. The figures "2024" and "2025" used in this article 
63.3 	mean that the appropriations listed under them are available for the fiscal year ending June 
63.4 	30, 2024, or June 30, 2025, respectively. "The first year" is fiscal year 2024. "The second 
63.5 	year" is fiscal year 2025. "The biennium" is fiscal years 2024 and 2025.
63.6 	(b) If an appropriation in this article is enacted more than once in the 2024 regular or 
63.7 	special legislative session, the appropriation must be given effect only once.

63.8				APPROPRIATIONS
	
63.9				Available for the Year
	
63.10				Ending June 30
	
63.11					2024
		2025

63.12	Sec. 2. DEPARTMENT OF HEALTH
 	$
	-0-
	$
	174,000
	
63.13 	$174,000 the second year is for technical 
63.14 	assistance for rulemaking for acceptable blood 
63.15 	lead levels for workers. This is a onetime 
63.16 	appropriation and is available until June 30, 
63.17 	2026.

63.18
63.19	Sec. 3. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT
 	$
	-0-
	$
	10,736,000
	
63.20 	$9,000,000 the second year is for a grant to 
63.21 	Tending the Soil, to design, redesign, renovate, 
63.22 	construct, furnish, and equip the Rise Up 
63.23 	Center, a building located in Minneapolis, that 
63.24 	will house a workforce development and job 
63.25 	training center, administrative offices, and a 
63.26 	public gathering space.
63.27 	$1,736,000 the second year is for 
63.28 	implementation of the broadband provisions 
63.29 	in article 10.

63.30 	Sec. 4. Laws 2023, chapter 53, article 19, section 2, subdivision 1, is amended to read:

63.3263.31
	Subdivision 1.Total Appropriation
 	$
	47,710,000
	$
	44,044,000
44,720,000

64.1	Appropriations by Fund
	
64.2		2024
	2025
	
64.464.3
	General
	7,200,000
	4,889,000
5,286,000
	
64.5
64.6	Workers' 
Compensation
	30,599,000
	32,390,000
32,669,000
	
64.7
64.8	Workforce 
Development
	9,911,000
	6,765,000
	
64.9 	The amounts that may be spent for each 
64.10 	purpose are specified in the following 
64.11 	subdivisions. The general fund base for this 
64.12 	appropriation is $4,936,000 $5,006,000 in 
64.13 	fiscal year 2026 and $4,958,000 $5,028,000
64.14 	in fiscal year 2027 and each year thereafter. 
64.15 	The workers compensation fund base is 
64.16 	$32,749,000 $32,892,000 in fiscal year 2026 
64.17 	and $32,458,000 in fiscal year 2027 and each 
64.18 	year thereafter. The workforce development 
64.19 	fund base is $6,765,000 in fiscal year 2026 
64.20 	and each year thereafter.

64.21 	Sec. 5. Laws 2023, chapter 53, article 19, section 2, subdivision 3, is amended to read:

64.2364.22
	Subd. 3.Labor Standards
 		6,520,000
		6,270,000
6,667,000

64.24	Appropriations by Fund
	
64.2664.25
	General
	4,957,000
	4,635,000
5,032,000
	
64.27
64.28	Workforce 
Development
	1,563,000
	1,635,000
	
64.29 	The general fund base for this appropriation 
64.30 	is $4,682,000 $4,752,000 in fiscal year 2026 
64.31 	and $4,704,000 $4,774,000 in fiscal year 2027 
64.32 	and each year thereafter.
64.33 	(a) $2,046,000 each year is for wage theft 
64.34 	prevention.
64.35 	(b) $1,563,000 the first year and $1,635,000 
64.36 	the second year are from the workforce 
65.1 	development fund for prevailing wage 
65.2 	enforcement.
65.3 	(c) $134,000 the first year and $134,000 the 
65.4 	second year are for outreach and enforcement 
65.5 	efforts related to changes to the nursing 
65.6 	mothers, lactating employees, and pregnancy 
65.7 	accommodations law.
65.8 	(d) $661,000 the first year and $357,000 the 
65.9 	second year are to perform work for the 
65.10 	Nursing Home Workforce Standards Board. 
65.11 	The base for this appropriation is $404,000 in 
65.12 	fiscal year 2026 and $357,000 in fiscal year 
65.13 	2027.
65.14 	(e) $225,000 the first year and $169,000 the 
65.15 	second year are for the purposes of the Safe 
65.16 	Workplaces for Meat and Poultry Processing 
65.17 	Workers Act.
65.18 	(f) $27,000 the first year is for the creation 
65.19 	and distribution of a veterans' benefits and 
65.20 	services poster under Minnesota Statutes, 
65.21 	section 181.536.
65.22 	(g) $141,000 the second year is to inform and 
65.23 	educate employers relating to Minnesota 
65.24 	Statutes, section 181.960. This is a onetime 
65.25 	appropriation.
65.26 	(h) $200,000 the second year is for education 
65.27 	and training related to employee 
65.28 	misclassification. This is a onetime 
65.29 	appropriation and is available until June 30, 
65.30 	2026.

65.31 	Sec. 6. Laws 2023, chapter 53, article 19, section 2, subdivision 5, is amended to read:

65.3365.32
	Subd. 5.Workplace Safety
 		8,644,000
		7,559,000
7,838,000

66.1	Appropriations by Fund
	
66.2	General
	2,000,000
	-0-
	
66.3
66.4	Workers' 
Compensation
	6,644,000
	7,559,000
7,838,000
	
66.5 	The workers compensation fund base for this 
66.6 	appropriation is $7,918,000 $8,061,000 in 
66.7 	fiscal year 2026 and $7,627,000 in fiscal year 
66.8 	2027 and each year thereafter.
66.9 	$2,000,000 the first year is for the ergonomics 
66.10 	safety grant program. This appropriation is 
66.11 	available until June 30, 2026. This is a onetime 
66.12 	appropriation.

66.13 	Sec. 7. Laws 2023, chapter 53, article 19, section 4, is amended to read:

66.14	Sec. 4. BUREAU OF MEDIATION SERVICES
 	$
	3,707,000
	$
	3,789,000
	
66.15 	(a) $750,000 each year is for purposes of the 
66.16 	Public Employment Relations Board under 
66.17 	Minnesota Statutes, section 179A.041.
66.18 	(b) $68,000 each year is for grants to area 
66.19 	labor management committees. Grants may 
66.20 	be awarded for a 12-month period beginning 
66.21 	July 1 each year. Any unencumbered balance 
66.22 	remaining at the end of the first year does not 
66.23 	cancel but is available for the second year.
66.24 	(c) $47,000 each year is for rulemaking, 
66.25 	staffing, and other costs associated with peace 
66.26 	officer grievance procedures.

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

66.28 	ARTICLE 4
66.29 	COMBATIVE SPORTS

66.30 	Section 1. Minnesota Statutes 2022, section 326B.89, subdivision 5, is amended to read:
66.31 		Subd. 5.Payment limitations.  The commissioner shall not pay compensation from the 
66.32 	fund to an owner or a lessee in an amount greater than $75,000 $100,000 per licensee. The 
67.1 	commissioner shall not pay compensation from the fund to owners and lessees in an amount 
67.2 	that totals more than $550,000 per licensee. The commissioner shall only pay compensation 
67.3 	from the fund for a final judgment that is based on a contract directly between the licensee 
67.4 	and the homeowner or lessee that was entered into prior to the cause of action and that 
67.5 	requires licensure as a residential building contractor or residential remodeler.

67.6 	EFFECTIVE DATE. This section is effective July 1, 2024.

67.7 	Sec. 2. Minnesota Statutes 2023 Supplement, section 341.25, is amended to read:
67.8 	341.25 RULES.
67.9 	(a) The commissioner may adopt rules that include standards for the physical examination 
67.10 	and condition of combatants and referees.
67.11 	(b) The commissioner may adopt other rules necessary to carry out the purposes of this 
67.12 	chapter, including, but not limited to, the conduct of all combative sport contests and their 
67.13 	manner, supervision, time, and place.
67.14 	(c) The most recent version of the Unified Rules of Mixed Martial Arts, as promulgated 
67.15 	by the Association of Boxing Commissions, is incorporated by reference and made a part 
67.16 	of this chapter except as qualified by this chapter and Minnesota Rules, chapter 2202. In 
67.17 	the event of a conflict between this chapter and the Unified Rules, this chapter must govern.
67.18 	(d) The most recent version of the Unified Rules of Boxing, as promulgated by the 
67.19 	Association of Boxing Commissions, is incorporated by reference and made a part of this 
67.20 	chapter except as qualified by this chapter and Minnesota Rules, chapter 2201. In the event 
67.21 	of a conflict between this chapter and the Unified Rules, this chapter must govern.
67.22 	(e) The most recent version of the Unified Rules of Kickboxing and Unified Rules of 
67.23 	Muay Thai, as promulgated by the Association of Boxing Commissions, is are incorporated 
67.24 	by reference and made a part of this chapter except as qualified by this chapter and any 
67.25 	applicable Minnesota Rules. In the event of a conflict between this chapter and the Unified 
67.26 	Rules those rules, this chapter must govern. If a promoter seeks to hold a kickboxing event 
67.27 	governed by a different set of kickboxing rules, the promoter must send the commissioner 
67.28 	a copy of the rules under which the proposed bouts will be conducted at least 45 days before 
67.29 	the event. The commissioner may approve or deny the use of the alternative rules at the 
67.30 	commissioner's discretion. If the alternative rules are approved for an event, this chapter 
67.31 	and any applicable Minnesota Rules, except of those incorporating the Unified Rules of 
67.32 	Kickboxing and Unified Rules of Muay Thai, must govern if there is a conflict between the 
67.33 	rules and Minnesota law.

68.1 	Sec. 3. Minnesota Statutes 2023 Supplement, section 341.28, subdivision 5, is amended 
68.2 	to read:
68.3 		Subd. 5.Regulatory authority; martial arts and amateur boxing.  (a) Unless this 
68.4 	chapter specifically states otherwise, contests or exhibitions for martial arts and amateur 
68.5 	boxing are exempt from the requirements of this chapter and officials at these events are 
68.6 	not required to be licensed under this chapter.
68.7 	(b) Martial arts and amateur boxing contests, unless subject to the exceptions set forth 
68.8 	in subdivision 6 or 7, must be regulated by a nationally recognized organization approved 
68.9 	by the commissioner. The organization must have a set of written standards, procedures, or 
68.10 	rules used to sanction the combative sports it oversees.
68.11 	(c) Any regulatory body overseeing a martial arts or amateur boxing event must submit 
68.12 	bout results to the commissioner within 72 hours after the event. If the regulatory body 
68.13 	issues suspensions, the regulatory body must submit to the commissioner a list of any 
68.14 	suspensions resulting from the event within 72 hours after the event. Regulatory bodies that 
68.15 	oversee combative sports or martial arts contests under subdivision 6 or 7 are not subject 
68.16 	to this paragraph.

68.17 	Sec. 4. Minnesota Statutes 2022, section 341.28, is amended by adding a subdivision to 
68.18 	read:
68.19 		Subd. 7.Regulatory authority; youth competition. Combative sports or martial arts 
68.20 	contests between individuals under the age of 18 years are exempt from the requirements 
68.21 	of this chapter and officials at these events are not required to be licensed under this chapter. 
68.22 	A contest under this subdivision must be regulated by (1) a widely recognized organization 
68.23 	that regularly oversees youth competition, or (2) a local government.

68.24 	Sec. 5. Minnesota Statutes 2022, section 341.29, is amended to read:
68.25 	341.29 JURISDICTION OF COMMISSIONER.
68.26 	The commissioner shall:
68.27 	(1) have sole direction, supervision, regulation, control, and jurisdiction over all 
68.28 	combative sport contests that are held within this state unless a contest is exempt from the 
68.29 	application of this chapter under federal law;
68.30 	(2) have sole control, authority, and jurisdiction over all licenses required by this chapter;
69.1 	(3) grant a license to an applicant if, in the judgment of the commissioner, the financial 
69.2 	responsibility, experience, character, and general fitness of the applicant are consistent with 
69.3 	the public interest, convenience, or necessity and in the best interests of combative sports 
69.4 	and conforms with this chapter and the commissioner's rules;
69.5 	(4) deny, suspend, or revoke a license using the enforcement provisions of section 
69.6 	326B.082, except that the licensing reapplication time frames remain within the sole 
69.7 	discretion of the commissioner; and
69.8 	(5) serve final nonlicensing orders in performing the duties of this chapter which are 
69.9 	subject to the contested case procedures provided in sections 14.57 to 14.69.

69.10 	Sec. 6. Minnesota Statutes 2023 Supplement, section 341.30, subdivision 4, is amended 
69.11 	to read:
69.12 		Subd. 4.Prelicensure requirements. (a) Before the commissioner issues a promoter's 
69.13 	license to an individual, corporation, or other business entity, the applicant shall complete 
69.14 	a licensing application on the Office of Combative Sports website or on forms prescribed 
69.15 	by the commissioner and shall:
69.16 	(1) show on the licensing application the owner or owners of the applicant entity and 
69.17 	the percentage of interest held by each owner holding a 25 percent or more interest in the 
69.18 	applicant;
69.19 	(2) provide the commissioner with a copy of the latest financial statement of the applicant;
69.20 	(3) provide proof, where applicable, of authorization to do business in the state of 
69.21 	Minnesota; and
69.22 	(4) deposit with the commissioner a surety bond in an amount set by the commissioner, 
69.23 	which must not be less than $10,000. The bond shall be executed in favor of this state and 
69.24 	shall be conditioned on the faithful performance by the promoter of the promoter's obligations 
69.25 	under this chapter and the rules adopted under it.
69.26 	(b) Before the commissioner issues a license to a combatant, the applicant shall:
69.27 	(1) submit to the commissioner the results of current medical examinations on forms 
69.28 	prescribed by the commissioner that state that the combatant is cleared to participate in a 
69.29 	combative sport contest. The applicant must undergo and submit the results of the following 
69.30 	medical examinations, which do not exempt a combatant from the requirements in section 
69.31 	341.33:
70.1 	(i) a physical examination performed by a licensed medical doctor, doctor of osteopathic 
70.2 	medicine, advance practice nurse practitioner, or a physician assistant. Physical examinations 
70.3 	are valid for one year from the date of the exam;
70.4 	(ii) an ophthalmological examination performed by an ophthalmologist or optometrist 
70.5 	that includes dilation designed to detect any retinal defects or other damage or a condition 
70.6 	of the eye that could be aggravated by combative sports. Ophthalmological examinations 
70.7 	are valid for one year from the date of the exam;
70.8 	(iii) blood work results for HBsAg (Hepatitis B surface antigen), HCV (Hepatitis C 
70.9 	antibody), and HIV. Blood work results are good for one year from the date blood was 
70.10 	drawn. The commissioner shall not issue a license to an applicant submitting positive test 
70.11 	results for HBsAg, HCV, or HIV; and
70.12 	(iv) other appropriate neurological or physical examinations before any contest, if the 
70.13 	commissioner determines that the examination is desirable to protect the health of the 
70.14 	combatant;
70.15 	(2) complete a licensing application on the Office of Combative Sports website or on 
70.16 	forms prescribed by the commissioner; and
70.17 	(3) provide proof that the applicant is 18 years of age. Acceptable proof is a photo driver's 
70.18 	license, state photo identification card, passport, or birth certificate combined with additional 
70.19 	photo identification.
70.20 	(c) Before the commissioner issues an amateur combatant license to an individual, the 
70.21 	applicant must submit proof of qualifications that includes at a minimum: (1) an applicant's 
70.22 	prior bout history and evidence showing that the applicant has completed at least six months 
70.23 	of training in a combative sport; or (2) a letter of recommendation from a coach or trainer.
70.24 	(d) Before the commissioner issues a professional combatant license to an individual, 
70.25 	the applicant must submit proof of qualifications that includes an applicant's prior bout 
70.26 	history showing the applicant has competed in at least four sanctioned combative sports 
70.27 	contests. If the applicant has not competed in at least four sanctioned combative sports 
70.28 	contests, the commissioner may still grant the applicant a license if the applicant provides 
70.29 	evidence demonstrating that the applicant has sufficient skills and experience in combative 
70.30 	sports or martial arts to compete as a professional combatant.
70.31 	(c) (e) Before the commissioner issues a license to a referee, judge, or timekeeper, the 
70.32 	applicant must submit proof of qualifications that may include certified training from the 
71.1 	Association of Boxing Commissions, licensure with other regulatory bodies, professional 
71.2 	references, or a log of bouts worked.
71.3 	(d) (f) Before the commissioner issues a license to a ringside physician, the applicant 
71.4 	must submit proof that they are licensed to practice medicine in the state of Minnesota and 
71.5 	in good standing.

71.6 	Sec. 7. Minnesota Statutes 2023 Supplement, section 341.321, is amended to read:
71.7 	341.321 FEE SCHEDULE.
71.8 	(a) The fee schedule for professional and amateur licenses issued by the commissioner 
71.9 	is as follows:
71.10 	(1) referees, $25;
71.11 	(2) promoters, $700;
71.12 	(3) judges and knockdown judges, $25;
71.13 	(4) trainers and seconds, $40;
71.14 	(5) timekeepers, $25;
71.15 	(6) professional combatants, $70;
71.16 	(7) amateur combatants, $35; and
71.17 	(8) ringside physicians, $25.
71.18 	All license fees shall be paid no later than the weigh-in prior to the contest. No license may 
71.19 	be issued until all prelicensure requirements in section 341.30 are satisfied and fees are 
71.20 	paid.
71.21 	(b) A promoter or event organizer of an event regulated by the Department of Labor and 
71.22 	Industry must pay, per event, a combative sport contest fee of.
71.23 	(c) If the promoter sells tickets for the event, the event fee is $1,500 per event or four 
71.24 	percent of the gross ticket sales, whichever is greater. The fee must be paid as follows:
71.25 	(1) $500 at the time the combative sport contest is scheduled, which is nonrefundable;
71.26 	(2) $1,000 at the weigh-in prior to the contest;
71.27 	(3) if four percent of the gross ticket sales is greater than $1,500, the balance is due to 
71.28 	the commissioner within 14 days of the completed contest; and
72.1 	(4) the value of all complimentary tickets distributed for an event, to the extent they 
72.2 	exceed five percent of total event attendance, counts toward gross tickets sales for the 
72.3 	purposes of determining a combative sports contest fee. For purposes of this clause, the 
72.4 	lowest advertised ticket price shall be used to calculate the value of complimentary tickets.
72.5 	(d) If the promoter does not sell tickets and receives only a flat payment from a venue 
72.6 	to administer the event, the event fee is $1,500 per event or four percent of the flat payment, 
72.7 	whichever is greater. The fee must be paid as follows:
72.8 	(1) $500 at the time the combative sport contest is scheduled, which is nonrefundable;
72.9 	(2) $1,000 at the weigh-in prior to the contest; and
72.10 	(3) if four percent of the flat payment is greater than $1,500, the balance is due to the 
72.11 	commissioner within 14 days of the completed contest.
72.12 	(c) (e) All fees and penalties collected by the commissioner must be deposited in the 
72.13 	commissioner account in the special revenue fund.

72.14 	Sec. 8. Minnesota Statutes 2023 Supplement, section 341.33, is amended by adding a 
72.15 	subdivision to read:
72.16 		Subd. 3.Medical records. The commissioner may, if the commissioner determines that 
72.17 	doing so would be desirable to protect the health of a combatant, provide the combatant's 
72.18 	medical information collected under this chapter to the physician conducting a prebout exam 
72.19 	under this section or to the ringside physician or physicians assigned to the combatant's 
72.20 	combative sports contest.

72.21 	Sec. 9. Minnesota Statutes 2023 Supplement, section 341.355, is amended to read:
72.22 	341.355 CIVIL PENALTIES.
72.23 	When the commissioner finds that a person has violated one or more provisions of any 
72.24 	statute, rule, or order that the commissioner is empowered to regulate, enforce, or issue, the 
72.25 	commissioner may impose, for each violation, a civil penalty of up to $10,000 for each 
72.26 	violation, or a civil penalty that deprives the person of any economic advantage gained by 
72.27 	the violation, or both. The commissioner may also impose these penalties against a person 
72.28 	who has violated section 341.28, subdivision 5, paragraph (b) or (c), or subdivision 7.

73.1 	ARTICLE 5
73.2 	CONSTRUCTION CODES AND LICENSING

73.3 	Section 1. Minnesota Statutes 2023 Supplement, section 326B.106, subdivision 1, is 
73.4 	amended to read:
73.5 		Subdivision 1.Adoption of code. (a) Subject to paragraphs (c) and (d) and sections 
73.6 	326B.101 to 326B.194, the commissioner shall by rule and in consultation with the 
73.7 	Construction Codes Advisory Council establish a code of standards for the construction, 
73.8 	reconstruction, alteration, and repair of buildings, governing matters of structural materials, 
73.9 	design and construction, fire protection, health, sanitation, and safety, including design and 
73.10 	construction standards regarding heat loss control, illumination, and climate control. The 
73.11 	code must also include duties and responsibilities for code administration, including 
73.12 	procedures for administrative action, penalties, and suspension and revocation of certification. 
73.13 	The code must conform insofar as practicable to model building codes generally accepted 
73.14 	and in use throughout the United States, including a code for building conservation. In the 
73.15 	preparation of the code, consideration must be given to the existing statewide specialty 
73.16 	codes presently in use in the state. Model codes with necessary modifications and statewide 
73.17 	specialty codes may be adopted by reference. The code must be based on the application 
73.18 	of scientific principles, approved tests, and professional judgment. To the extent possible, 
73.19 	the code must be adopted in terms of desired results instead of the means of achieving those 
73.20 	results, avoiding wherever possible the incorporation of specifications of particular methods 
73.21 	or materials. To that end the code must encourage the use of new methods and new materials. 
73.22 	Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall 
73.23 	administer and enforce the provisions of those sections.
73.24 	(b) The commissioner shall develop rules addressing the plan review fee assessed to 
73.25 	similar buildings without significant modifications including provisions for use of building 
73.26 	systems as specified in the industrial/modular program specified in section 326B.194. 
73.27 	Additional plan review fees associated with similar plans must be based on costs 
73.28 	commensurate with the direct and indirect costs of the service.
73.29 	(c) Beginning with the 2018 edition of the model building codes and every six years 
73.30 	thereafter, the commissioner shall review the new model building codes and adopt the model 
73.31 	codes as amended for use in Minnesota, within two years of the published edition date. The 
73.32 	commissioner may adopt amendments to the building codes prior to the adoption of the 
73.33 	new building codes to advance construction methods, technology, or materials, or, where 
73.34 	necessary to protect the health, safety, and welfare of the public, or to improve the efficiency 
73.35 	or the use of a building.
74.1 	(d) Notwithstanding paragraph (c), the commissioner shall act on each new model 
74.2 	residential energy code and the new model commercial energy code in accordance with 
74.3 	federal law for which the United States Department of Energy has issued an affirmative 
74.4 	determination in compliance with United States Code, title 42, section 6833. The 
74.5 	commissioner may adopt amendments prior to adoption of the new energy codes, as amended 
74.6 	for use in Minnesota, to advance construction methods, technology, or materials, or, where 
74.7 	necessary to protect the health, safety, and welfare of the public, or to improve the efficiency 
74.8 	or use of a building.
74.9 	(e) Beginning in 2024, the commissioner shall act on the new model commercial energy 
74.10 	code by adopting each new published edition of ASHRAE 90.1 or a more efficient standard. 
74.11 	The commercial energy code in effect in 2036 and thereafter must achieve an 80 percent 
74.12 	reduction in annual net energy consumption or greater, using the ASHRAE 90.1-2004 as a 
74.13 	baseline. The commissioner shall adopt commercial energy codes from 2024 to 2036 that 
74.14 	incrementally move toward achieving the 80 percent reduction in annual net energy 
74.15 	consumption. By January 15 of the year following each new code adoption, the commissioner 
74.16 	shall make a report on progress under this section to the legislative committees with 
74.17 	jurisdiction over the energy code.
74.18 	(f) Nothing in this section shall be interpreted to limit the ability of a public utility to 
74.19 	offer code support programs, or to claim energy savings resulting from such programs, 
74.20 	through its energy conservation and optimization plans approved by the commissioner of 
74.21 	commerce under section 216B.241 or an energy conservation and optimization plan filed 
74.22 	by a consumer-owned utility under section 216B.2403.
74.23 	(g) Beginning in 2026, the commissioner shall act on the new model residential energy 
74.24 	code by adopting each new published edition of the International Energy Conservation Code 
74.25 	or a more efficient standard. The residential energy code in effect in 2038 and thereafter 
74.26 	must achieve a 70 percent reduction in annual net energy consumption or greater, using the 
74.27 	2006 International Energy Conservation Code State Level Residential Codes Energy Use 
74.28 	Index for Minnesota, as published by the United States Department of Energy's Building 
74.29 	Energy Codes Program, as a baseline. The commissioner shall adopt residential energy 
74.30 	codes from 2026 to 2038 that incrementally move toward achieving the 70 percent reduction 
74.31 	in annual net energy consumption. By January 15 of the year following each new code 
74.32 	adoption, the commissioner shall submit a report on progress under this section to the 
74.33 	legislative committees with jurisdiction over the energy code.

75.1 	Sec. 2. Minnesota Statutes 2022, section 326B.802, subdivision 13, is amended to read:
75.2 		Subd. 13.Residential real estate. "Residential real estate" means a new or existing 
75.3 	building constructed for habitation by one to four families, and includes detached garages
75.4 	and swimming pools.

75.5 	Sec. 3. Minnesota Statutes 2023 Supplement, section 326B.802, subdivision 15, is amended 
75.6 	to read:
75.7 		Subd. 15.Special skill. "Special skill" means one of the following eight categories:
75.8 	(a) Excavation. Excavation includes work in any of the following areas:
75.9 	(1) excavation;
75.10 	(2) trenching;
75.11 	(3) grading; and
75.12 	(4) site grading.
75.13 	(b) Masonry and concrete. Masonry and concrete includes work in any of the following 
75.14 	areas:
75.15 	(1) drain systems;
75.16 	(2) poured walls;
75.17 	(3) slabs and poured-in-place footings;
75.18 	(4) masonry walls;
75.19 	(5) masonry fireplaces;
75.20 	(6) masonry veneer; and
75.21 	(7) water resistance and waterproofing.
75.22 	(c) Carpentry. Carpentry includes work in any of the following areas:
75.23 	(1) rough framing;
75.24 	(2) finish carpentry;
75.25 	(3) doors, windows, and skylights;
75.26 	(4) porches and decks, excluding footings;
75.27 	(5) wood foundations; and
75.28 	(6) drywall installation, excluding taping and finishing.
76.1 	(d) Interior finishing. Interior finishing includes work in any of the following areas:
76.2 	(1) floor covering;
76.3 	(2) wood floors;
76.4 	(3) cabinet and counter top installation;
76.5 	(4) insulation and vapor barriers;
76.6 	(5) interior or exterior painting;
76.7 	(6) ceramic, marble, and quarry tile;
76.8 	(7) ornamental guardrail and installation of prefabricated stairs; and
76.9 	(8) wallpapering.
76.10 	(e) Exterior finishing. Exterior finishing includes work in any of the following areas:
76.11 	(1) siding;
76.12 	(2) soffit, fascia, and trim;
76.13 	(3) exterior plaster and stucco;
76.14 	(4) painting; and
76.15 	(5) rain carrying systems, including gutters and down spouts.
76.16 	(f) Drywall and plaster. Drywall and plaster includes work in any of the following 
76.17 	areas:
76.18 	(1) installation;
76.19 	(2) taping;
76.20 	(3) finishing;
76.21 	(4) interior plaster;
76.22 	(5) painting; and
76.23 	(6) wallpapering.
76.24 	(g) Residential roofing. Residential roofing includes work in any of the following areas:
76.25 	(1) roof coverings;
76.26 	(2) roof sheathing;
76.27 	(3) roof weatherproofing and insulation;
77.1 	(4) repair of roof support system, but not construction of new roof support system; and
77.2 	(5) penetration of roof coverings for purposes of attaching a solar photovoltaic system.
77.3 	(h) General installation specialties. Installation includes work in any of the following 
77.4 	areas:
77.5 	(1) garage doors and openers;
77.6 	(2) pools, spas, and hot tubs;
77.7 	(3) fireplaces and wood stoves;
77.8 	(4) asphalt paving and seal coating;
77.9 	(5) ornamental guardrail and prefabricated stairs; and
77.10 	(6) assembly of the support system for a solar photovoltaic system.

77.11 	Sec. 4. Minnesota Statutes 2022, section 326B.89, subdivision 1, is amended to read:
77.12 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
77.13 	the meanings given them.
77.14 	(b) "Gross annual receipts" means the total amount derived from residential contracting 
77.15 	or residential remodeling activities, regardless of where the activities are performed, and 
77.16 	must not be reduced by costs of goods sold, expenses, losses, or any other amount.
77.17 	(c) "Licensee" means a person licensed as a residential contractor or residential remodeler.
77.18 	(d) "Residential real estate" means a new or existing building constructed for habitation 
77.19 	by one to four families, and includes detached garages intended for storage of vehicles 
77.20 	associated with the residential real estate, and private swimming pools connected with the 
77.21 	residential real estate, which are controlled and used by the owner or the owner's family or 
77.22 	invited guests and are not used as part of a business.
77.23 	(e) "Fund" means the contractor recovery fund.
77.24 	(f) "Owner" when used in connection with real property, means a person who has any 
77.25 	legal or equitable interest in real property and includes a condominium or townhome 
77.26 	association that owns common property located in a condominium building or townhome 
77.27 	building or an associated detached garage. Owner does not include any real estate developer 
77.28 	or any owner using, or intending to use, the property for a business purpose and not as 
77.29 	owner-occupied residential real estate.
77.30 	(g) "Cycle One" means the time period between July 1 and December 31.
78.1 	(h) "Cycle Two" means the time period between January 1 and June 30.

78.2 	ARTICLE 6
78.3 	BUREAU OF MEDIATION SERVICES

78.4 	Section 1. Minnesota Statutes 2022, section 626.892, subdivision 10, is amended to read:
78.5 		Subd. 10.Training. (a) A person appointed to the arbitrator roster under this section 
78.6 	must complete training as required by the commissioner during the person's appointment. 
78.7 	At a minimum, an initial training must include:
78.8 	(1) at least six hours on the topics of cultural competency, racism, implicit bias, and 
78.9 	recognizing and valuing community diversity and cultural differences; and
78.10 	(2) at least six hours on topics related to the daily experience of peace officers, which 
78.11 	may include ride-alongs with on-duty officers or other activities that provide exposure to 
78.12 	the environments, choices, and judgments required of officers in the field.
78.13 	(b) The commissioner may adopt rules establishing training requirements consistent 
78.14 	with this subdivision.
78.15 	(b) An arbitrator appointed to the roster of arbitrators in 2020 must complete the required 
78.16 	initial training by July 1, 2021. (c) An arbitrator appointed to the roster of arbitrators after 
78.17 	2020 must complete the required initial training within six months of the arbitrator's 
78.18 	appointment.
78.19 	(c) (d) The Bureau of Mediation Services must pay for all costs associated with the 
78.20 	required training must be borne by the arbitrator.

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

78.22 	Sec. 2. REPEALER.
 78.23 	(a) Minnesota Statutes 2022, sections 179.81; 179.82; 179.83, subdivision 1; 179.84, 
78.24 	subdivision 1; and 179.85, are repealed.
78.25 	(b) Minnesota Rules, parts 5520.0100; 5520.0110; 5520.0120; 5520.0200; 5520.0250; 
78.26 	5520.0300; 5520.0500; 5520.0520; 5520.0540; 5520.0560; 5520.0600; 5520.0620; 
78.27 	5520.0700; 5520.0710; and 5520.0800, are repealed.

79.1 	ARTICLE 7
79.2 	PUBLIC EMPLOYMENT LABOR RELATIONS

79.3 	Section 1. Minnesota Statutes 2023 Supplement, section 179A.041, subdivision 10, is 
79.4 	amended to read:
79.5 		Subd. 10.Open Meeting Law; exceptions. Chapter 13D does not apply to meetings of 
79.6 	the a board meeting when itthe board is:
79.7 	(1) deliberating on the merits of an unfair labor practice charges charge under sections 
79.8 	179.11, 179.12, and 179A.13;
79.9 	(2) reviewing a hearing officer's recommended decision and order of a hearing officer
79.10 	under section 179A.13; or
79.11 	(3) reviewing decisions of the commissioner of the Bureau of Mediation Services relating 
79.12 	toa commissioner's decision on an unfair labor practices practice under section 179A.12, 
79.13 	subdivision 11.

79.14 	Sec. 2. Minnesota Statutes 2023 Supplement, section 179A.06, subdivision 6, is amended 
79.15 	to read:
79.16 		Subd. 6.Payroll deduction, authorization, and remittance. (a) Public employees have 
79.17 	the right to may request and be allowed payroll deduction for the exclusive representative 
79.18 	and the its associated political fund associated with the exclusive representative and registered 
79.19 	pursuant to under section 10A.12. If there is no exclusive representative, public employees 
79.20 	may request payroll deduction for the employee organization of their choice. A public 
79.21 	employer must provide payroll deduction according to any public employee's request under 
79.22 	this paragraph.
79.23 	(b) A public employer must rely on a certification from any an exclusive representative 
79.24 	requesting remittance of a deduction that the employee organization has and will maintain 
79.25 	an authorization, signed, either by hand or electronically according to section 325L.02, 
79.26 	paragraph (h), by the public employee from whose salary or wages the deduction is to be 
79.27 	made, which may include an electronic signature by the public employee as defined in 
79.28 	section 325L.02, paragraph (h). An exclusive representative making such a certification 
79.29 	must not be is not required to provide the public employer a copy of the authorization unless 
79.30 	a dispute arises about the authorization's existence or terms of the authorization. The exclusive 
79.31 	representative must indemnify the public employer for any successful claims made by the 
79.32 	employee for unauthorized deductions in reliance on the certification.
80.1 	(b) (c) A duespayroll deduction authorization remains in effect is effective until the
80.2 	exclusive representative notifies the employer receives notice from the exclusive 
80.3 	representative that a public employee has changed or canceled their the employee's
80.4 	authorization in writing in accordance with the terms of the original authorizing document, 
80.5 	and authorization. When determining whether deductions have been properly changed or 
80.6 	canceled, a public employer must rely on information from the exclusive representative 
80.7 	receiving remittance of the deduction regarding whether the deductions have been properly 
80.8 	changed or canceled. The exclusive representative must indemnify the public employer, 
80.9 	including any reasonable attorney fees and litigation costs, for any successful claims made 
80.10 	by the employee for unauthorized deductions made in reliance on such information.
80.11 	(c) (d) Deduction authorization under this section is:
80.12 	(1) independent from the public employee's membership status in the employee 
80.13 	organization to which payment is remitted; and is
80.14 	(2) effective regardless of whether a collective bargaining agreement authorizes the 
80.15 	deduction.
80.16 	(d) Employers (e) An employer must commence:
80.17 	(1) begin deductions within 30 days of notice of authorization from the after an exclusive 
80.18 	representative submits a certification under paragraph (b); and must
80.19 	(2) remit the deductions to the exclusive representative within 30 days of the deduction. 
80.20 	The failure of an employer to comply with the provisions of this paragraph shall be an unfair 
80.21 	labor practice under section 179A.13, the relief for which shall be reimbursement by the 
80.22 	employer of deductions that should have been made or remitted based on a valid authorization 
80.23 	given by the employee or employees.
80.24 	(e) In the absence of an exclusive representative, public employees have the right to 
80.25 	request and be allowed payroll deduction for the organization of their choice.
80.26 	(f) An exclusive representative must indemnify a public employer:
80.27 	(1) for any successful employee claim for unauthorized employer deductions made by 
80.28 	relying on an exclusive representative's certification under paragraph (b); and
80.29 	(2) for any successful employee claim for unauthorized employer deductions made by 
80.30 	relying on information for changing or canceling deductions under paragraph (c), with 
80.31 	indemnification including any reasonable attorney fees and litigation costs.
81.1 	(f) (g) Any dispute under this subdivision must be resolved through an unfair labor 
81.2 	practice proceeding under section 179A.13. It is an unfair labor practice if an employer fails 
81.3 	to comply with paragraph (e), and the employer must reimburse deductions that should have 
81.4 	been made or remitted based on a valid authorization given by the employee or employees.

81.5 	Sec. 3. Minnesota Statutes 2023 Supplement, section 179A.07, subdivision 8, is amended 
81.6 	to read:
81.7 		Subd. 8.Bargaining unit information. (a) Within 20 calendar days from the date of 
81.8 	hire of after a bargaining unit employee is hired, a public employer must provide the 
81.9 	following contact information on the employee to an the unit's exclusive representative in 
81.10 	an Excel file format or other format agreed to by the exclusive representative:
81.11 	(1) name;
81.12 	(2) job title;
81.13 	(3) worksite location, including location within in a facility when appropriate;
81.14 	(4) home address;
81.15 	(5) work telephone number;
81.16 	(6) home and personal cell phone numbers on file with the public employer;
81.17 	(7) date of hire; and
81.18 	(8) work email address and personal email address on file with the public employer.
81.19 	(b) Every 120 calendar days beginning on January 1, 2024, a public employer must 
81.20 	provide to an a bargaining unit's exclusive representative in an Excel file or similar format 
81.21 	agreed to by the exclusive representative the following information under paragraph (a) for 
81.22 	all bargaining unit employees: name; job title; worksite location, including location within 
81.23 	a facility when appropriate; home address; work telephone number; home and personal cell 
81.24 	phone numbers on file with the public employer; date of hire; and work email address and 
81.25 	personal email address on file with the public employer.
81.26 	(c) A public employer must notify an exclusive representative within 20 calendar days 
81.27 	of the separation of If a bargaining unit employee separates from employment or transfer
81.28 	transfers out of the a bargaining unit of a bargaining unit employee, the employee's public 
81.29 	employer must notify the employee's exclusive representative within 20 calendar days after 
81.30 	the separation or transfer.

82.1 	Sec. 4. Minnesota Statutes 2023 Supplement, section 179A.07, subdivision 9, is amended 
82.2 	to read:
82.3 		Subd. 9.Access. (a) A public employer must allow an exclusive representative to meet 
82.4 	in person with a newly hired employees, without charge to the pay or leave time of the 
82.5 	employees, for 30 minutes, employee within 30 calendar days from the date of hire, during 
82.6 	new employee orientations or, if the employer does not conduct new employee orientations, 
82.7 	at individual or group meetings. For an orientation or meeting under this paragraph, an 
82.8 	employer must allow the employee and exclusive representative up to 30 minutes to meet 
82.9 	and must not charge the employee's pay or leave time during the orientation or meeting. An 
82.10 	orientation or meeting may be held virtually or for longer than 30 minutes only by mutual 
82.11 	agreement of the employer and exclusive representative.
82.12 	(b) An exclusive representative shall must receive no less than at least ten days' notice 
82.13 	in advance of an orientation, except that but a shorter notice may be provided where if there 
82.14 	is an urgent need critical to the employer's operations of the public employer that was not 
82.15 	reasonably foreseeable. Notice of and attendance at new employee orientations and other 
82.16 	meetings under this paragraph must be and paragraph (a) are limited to:
82.17 	(1) the public employer,;
82.18 	(2) the employees,;
82.19 	(3) the exclusive representative,; and
82.20 	(4) any vendor contracted to provide a service for purposes of the meeting. Meetings 
82.21 	may be held virtually or for longer than 30 minutes only by mutual agreement of the public 
82.22 	employer and exclusive representative.
82.23 	(b) (c) A public employer must allow an exclusive representative to communicate with 
82.24 	bargaining unit members using their employer-issued email addresses regarding by email 
82.25 	on:
82.26 	(1) collective bargaining,;
82.27 	(2) the administration of collective bargaining agreements,;
82.28 	(3) the investigation of grievances, and other workplace-related complaints and issues,;
82.29 	and
82.30 	(4) internal matters involving the governance or business of the exclusive representative, 
82.31 	consistent with the employer's generally applicable technology use policies.
83.1 	(d) An exclusive representative may communicate with bargaining unit members under 
83.2 	paragraph (c) via the members' employer-issued email addresses, but the communication 
83.3 	must be consistent with the employer's generally applicable technology use policies.
83.4 	(c) (e) A public employer must allow an exclusive representative to meet with bargaining 
83.5 	unit members in facilities owned or leased by the public employer regarding to communicate 
83.6 	on:
83.7 	(1) collective bargaining,;
83.8 	(2) the administration of collective bargaining agreements,;
83.9 	(3) the investigation of grievances and other workplace-related complaints and issues,;
83.10 	and
83.11 	(4) internal matters involving the governance or business of the exclusive representative, 
83.12 	provided the use does not interfere with governmental operations and the exclusive 
83.13 	representative complies with worksite security protocols established by the public employer.
83.14 	(f) The following applies for a meeting under paragraph (e):
83.15 	(1) a meeting cannot interfere with government operations;
83.16 	(2) the exclusive representative must comply with employer-established worksite security 
83.17 	protocols;
83.18 	Meetings conducted (3) a meeting in a government buildings pursuant to this paragraph 
83.19 	must not building cannot be for the purpose of supporting or opposing any candidate for 
83.20 	partisan political office or for the purpose of distributing literature or information regarding
83.21 	on partisan elections.; and
83.22 	(4) an exclusive representative conducting a meeting in a government building or other 
83.23 	government facility pursuant to this subdivision may be charged for maintenance, security, 
83.24 	and other costs related to the use of using the government building or facility that would 
83.25 	not otherwise be incurred by the government entity.

83.26 	Sec. 5. Minnesota Statutes 2023 Supplement, section 179A.10, subdivision 2, is amended 
83.27 	to read:
83.28 		Subd. 2.State employees. (a) Unclassified employees, unless otherwise excluded, are 
83.29 	included within the units which that include the classifications to which they are assigned 
83.30 	for purposes of compensation. Supervisory employees shall only can be assigned only to 
83.31 	units unit 12 and or 16. The following units are the appropriate units of executive branch 
83.32 	state employees:
84.1 	(1) law enforcement unit;
84.2 	(2) craft, maintenance, and labor unit;
84.3 	(3) service unit;
84.4 	(4) health care nonprofessional unit;
84.5 	(5) health care professional unit;
84.6 	(6) clerical and office unit;
84.7 	(7) technical unit;
84.8 	(8) correctional guards unit;
84.9 	(9) state university instructional unit;
84.10 	(10) state college instructional unit;
84.11 	(11) state university administrative unit;
84.12 	(12) professional engineering unit;
84.13 	(13) health treatment unit;
84.14 	(14) general professional unit;
84.15 	(15) professional state residential instructional unit;
84.16 	(16) supervisory employees unit;
84.17 	(17) public safety radio communications operator unit;
84.18 	(18) licensed peace officer special unit; and
84.19 	(19) licensed peace officer leader unit.
84.20 	Each unit consists of the classifications or positions assigned to it in the schedule of 
84.21 	state employee job classification and positions maintained by the commissioner. The 
84.22 	commissioner may only make changes in the schedule in existence on the day prior to 
84.23 	August 1, 1984, as required by law or as provided in subdivision 4.
84.24 	(b) The following positions are included in the licensed peace officer special unit:
84.25 	(1) State Patrol lieutenant;
84.26 	(2) NR district supervisor - enforcement;
84.27 	(3) assistant special agent in charge;
84.28 	(4) corrections investigation assistant director 2;
85.1 	(5) corrections investigation supervisor; and
85.2 	(6) commerce supervisor special agent.
85.3 	(c) The following positions are included in the licensed peace officer leader unit:
85.4 	(1) State Patrol captain;
85.5 	(2) NR program manager 2 enforcement; and
85.6 	(3) special agent in charge.
85.7 	(d) Each unit consists of the classifications or positions assigned to it in the schedule of 
85.8 	state employee job classification and positions maintained by the commissioner. The 
85.9 	commissioner may make changes in the schedule in existence on the day before August 1, 
85.10 	1984, only:
85.11 	(1) as required by law; or
85.12 	(2) as provided in subdivision 4.

85.13 	Sec. 6. Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 2a, is amended 
85.14 	to read:
85.15 		Subd. 2a.Majority verification procedure. (a) Notwithstanding any other provision 
85.16 	of this section, An employee organization may file a petition with the commissioner 
85.17 	requesting certification as the exclusive representative of an a proposed appropriate unit 
85.18 	based on a verification that for which there is no currently certified exclusive representative. 
85.19 	The petition must verify that over 50 percent of the employees in the proposed appropriate 
85.20 	unit wish to be represented by the petitioner organization. The commissioner shall require 
85.21 	dated representation authorization signatures of affected employees as verification of the 
85.22 	employee organization's claim of majority status.
85.23 	(b) Upon receipt of an employee organization's petition, accompanied by employee 
85.24 	authorization signatures under this subdivision, the commissioner shall investigate the 
85.25 	petition. If the commissioner determines that over 50 percent of the employees in an the
85.26 	appropriate unit have provided authorization signatures designating the petitioning employee 
85.27 	organization specified in the petition as their exclusive representative, the commissioner 
85.28 	shall not order an election but shall must certify the employee organization as the employees' 
85.29 	exclusive representative without ordering an election under this section.

86.1 	Sec. 7. Minnesota Statutes 2022, section 179A.12, subdivision 5, is amended to read:
86.2 		Subd. 5.Commissioner to investigate. The commissioner shall, Upon receipt of an 
86.3 	employee organization's receiving a petition to the commissioner under subdivision 3 1a 
86.4 	or 2a, the commissioner must:
86.5 	(1) investigate to determine if sufficient evidence of a question of representation exists;
86.6 	and
86.7 	(2) hold hearings necessary to determine the appropriate unit and other matters necessary 
86.8 	to determine the representation rights of the affected employees and employer.

86.9 	Sec. 8. Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 6, is amended 
86.10 	to read:
86.11 		Subd. 6.Authorization signatures. In (a) When determining the numerical status of 
86.12 	an employee organization for purposes of this section, the commissioner shall must require 
86.13 	a dated representation authorization signatures of affected employees signature of each 
86.14 	affected employee as verification of the statements contained in the joint request or petitions
86.15 	petition. These
86.16 	(b) An authorization signatures shall be signature is privileged and confidential 
86.17 	information available to the commissioner only. An electronic signatures signature, as 
86.18 	defined in section 325L.02, paragraph (h), shall be is valid as an authorization signatures
86.19 	signature.
86.20 	(c) An authorization signatures shall be signature is valid for a period of one year 
86.21 	following the signature date of signature.

86.22 	Sec. 9. Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 11, is amended 
86.23 	to read:
86.24 		Subd. 11.Unfair labor practices. The commissioner may void the result of an election 
86.25 	or majority verification procedure and order a new election or procedure if the commissioner 
86.26 	finds that one of the following:
86.27 	(1) there was an unfair labor practice that:
86.28 	(i) was committed by an employer or, a representative candidate or, an employee, or a 
86.29 	group of employees,; and that the unfair labor practice
86.30 	(ii) affected the result of an the election or the majority verification procedure pursuant 
86.31 	to subdivision 2a,; or that
87.1 	(2) procedural or other irregularities in the conduct of the election or majority verification 
87.2 	procedure may have substantially affected its the results, the commissioner may void the 
87.3 	result and order a new election or majority verification procedure.

87.4 	Sec. 10. RULEMAKING.
 87.5 	The commissioner must adopt rules on petitions for majority verification, including 
87.6 	technical changes needed for consistency with Minnesota Statutes, section 179A.12, and 
87.7 	the commissioner may use the expedited rulemaking process under Minnesota Statutes, 
87.8 	section 14.389.

87.9 	Sec. 11. REVISOR INSTRUCTION.
 87.10 	The revisor of statutes must renumber Minnesota Statutes, section 179A.12, subdivision 
87.11 	3, as Minnesota Statutes, section 179A.12, subdivision 1a.

87.12 	ARTICLE 8
87.13 	UNIVERSITY OF MINNESOTA COLLECTIVE BARGAINING UNITS

87.14 	Section 1. Minnesota Statutes 2023 Supplement, section 179A.03, subdivision 14, is 
87.15 	amended to read:
87.16 		Subd. 14.Public employee or employee. (a) "Public employee" or "employee" means 
87.17 	any person appointed or employed by a public employer except:
87.18 	(1) elected public officials;
87.19 	(2) election officers;
87.20 	(3) commissioned or enlisted personnel of the Minnesota National Guard;
87.21 	(4) emergency employees who are employed for emergency work caused by natural 
87.22 	disaster;
87.23 	(5) part-time employees whose service does not exceed the lesser of 14 hours per week 
87.24 	or 35 percent of the normal work week in the employee's appropriate unit;
87.25 	(6) employees whose positions are basically temporary or seasonal in character and: (i) 
87.26 	are not for more than 67 working days in any calendar year; or (ii) are not working for a 
87.27 	Minnesota school district or charter school; or (iii) are not for more than 100 working days 
87.28 	in any calendar year and the employees are under the age of 22, are full-time students 
87.29 	enrolled in a nonprofit or public educational institution prior to being hired by the employer, 
87.30 	and have indicated, either in an application for employment or by being enrolled at an 
88.1 	educational institution for the next academic year or term, an intention to continue as students 
88.2 	during or after their temporary employment;
88.3 	(7) employees providing services for not more than two consecutive quarters to the 
88.4 	Board of Trustees of the Minnesota State Colleges and Universities under the terms of a 
88.5 	professional or technical services contract as defined in section 16C.08, subdivision 1;
88.6 	(8) employees of charitable hospitals as defined by section 179.35, subdivision 3, except 
88.7 	that employees of charitable hospitals as defined by section 179.35, subdivision 3, are public 
88.8 	employees for purposes of sections 179A.051, 179A.052, and 179A.13;
88.9 	(9) full-time undergraduate students employed by the school which they attend under a 
88.10 	work-study program or in connection with the receipt of financial aid, irrespective of number 
88.11 	of hours of service per week;
88.12 	(10) (9) an individual who is employed for less than 300 hours in a fiscal year as an 
88.13 	instructor in an adult vocational education program;
88.14 	(11) (10) with respect to court employees:
88.15 	(i) personal secretaries to judges;
88.16 	(ii) law clerks;
88.17 	(iii) managerial employees;
88.18 	(iv) confidential employees; and
88.19 	(v) supervisory employees; or
88.20 	(12) (11) with respect to employees of Hennepin Healthcare System, Inc., managerial, 
88.21 	supervisory, and confidential employees.
88.22 	(b) The following individuals are public employees regardless of the exclusions of 
88.23 	paragraph (a), clauses (5) to (7):
88.24 	(1) an employee hired by a school district or the Board of Trustees of the Minnesota 
88.25 	State Colleges and Universities except at the university established in the Twin Cities 
88.26 	metropolitan area under section 136F.10 or for community services or community education 
88.27 	instruction offered on a noncredit basis: (i) to replace an absent teacher or faculty member 
88.28 	who is a public employee, where the replacement employee is employed more than 30 
88.29 	working days as a replacement for that teacher or faculty member; or (ii) to take a teaching 
88.30 	position created due to increased enrollment, curriculum expansion, courses which are a 
88.31 	part of the curriculum whether offered annually or not, or other appropriate reasons;
89.1 	(2) an employee hired for a position under paragraph (a), clause (6), item (i), if that same 
89.2 	position has already been filled under paragraph (a), clause (6), item (i), in the same calendar 
89.3 	year and the cumulative number of days worked in that same position by all employees 
89.4 	exceeds 67 calendar days in that year. For the purpose of this paragraph, "same position" 
89.5 	includes a substantially equivalent position if it is not the same position solely due to a 
89.6 	change in the classification or title of the position;
89.7 	(3) an early childhood family education teacher employed by a school district; and
89.8 	(4) an individual hired by the Board of Trustees of the Minnesota State Colleges and 
89.9 	Universities or the University of Minnesota as the instructor of record to teach (i) one class 
89.10 	for more than three credits in a fiscal year, or (ii) two or more credit-bearing classes in a 
89.11 	fiscal year.; and
89.12 	(5) an individual who: (i) is paid by the Board of Regents of the University of Minnesota 
89.13 	for work performed at the direction of the university or any of its employees or contractors; 
89.14 	and (ii) is enrolled in three or more university credit-bearing classes or one semester as a 
89.15 	full-time student or post-doctoral fellow during the fiscal year in which the work is 
89.16 	performed. For purposes of this section, work paid by the university includes but is not 
89.17 	limited to work that is required as a condition of receiving a stipend or tuition benefit, 
89.18 	whether or not the individual also receives educational benefit from performing that work. 
89.19 	Individuals who perform supervisory functions in regard to any of the aforementioned 
89.20 	workers are not considered supervisory employees for the purpose of section 179A.06, 
89.21 	subdivision 2.

89.22 	Sec. 2. Minnesota Statutes 2022, section 179A.11, subdivision 1, is amended to read:
89.23 		Subdivision 1.Units. (a) The following are the appropriate units of University of 
89.24 	Minnesota employees. All units shall exclude managerial and confidential employees. 
89.25 	Supervisory employees shall only be assigned to unit 13. No additional units of University 
89.26 	of Minnesota employees shall be recognized for the purpose of meeting and negotiating.
89.27 	(1) The Law Enforcement Unit consists of includes the positions of all employees with 
89.28 	the power of arrest.
89.29 	(2) The Craft and Trades Unit consists of includes the positions of all employees whose 
89.30 	work requires specialized manual skills and knowledge acquired through formal training 
89.31 	or apprenticeship or equivalent on-the-job training or experience.
90.1 	(3) The Service, Maintenance, and Labor Unit consists of includes the positions of all 
90.2 	employees whose work is typically that of maintenance, service, or labor and which does 
90.3 	not require extensive previous training or experience, except as provided in unit 4.
90.4 	(4) The Health Care Nonprofessional and Service Unit consists of includes the positions 
90.5 	of all nonprofessional employees of the University of Minnesota hospitals, dental school, 
90.6 	and health service whose work is unique to those settings, excluding labor and maintenance 
90.7 	employees as defined in unit 3.
90.8 	(5) The Nursing Professional Unit consists of includes all positions which are required 
90.9 	to be filled by registered nurses.
90.10 	(6) The Clerical and Office Unit consists of includes the positions of all employees 
90.11 	whose work is typically clerical or secretarial, including nontechnical data recording and 
90.12 	retrieval and general office work, except as provided in unit 4.
90.13 	(7) The Technical Unit consists of includes the positions of all employees whose work 
90.14 	is not typically manual and which requires specialized knowledge or skills acquired through 
90.15 	two-year academic programs or equivalent experience or on-the-job training, except as 
90.16 	provided in unit 4.
90.17 	(8) The Twin Cities Instructional Unit consists of the positions of all instructional 
90.18 	employees with the rank of professor, associate professor, assistant professor, including 
90.19 	research associate or instructor, including research fellow, located on the Twin Cities 
90.20 	campuses.
90.21 	(9) (8) The Outstate Instructional Unit consists of includes the positions of all instructional 
90.22 	employees with the rank of professor, associate professor, assistant professor, including 
90.23 	research associate or instructor, including research fellow, located at the Duluth campus, 
90.24 	provided that the positions of instructional employees of the same ranks at the Morris, 
90.25 	Crookston, or Waseca Rochester campuses shall be included within this unit if a majority 
90.26 	of the eligible employees voting at a campus so vote during an election conducted by the 
90.27 	commissioner, provided that the election or majority verification procedure shall not be 
90.28 	held until the Duluth campus has voted in favor of representation. The election shall be held 
90.29 	or majority verification procedure shall take place when an employee organization or group 
90.30 	of employees petitions the commissioner stating that a majority of the eligible employees 
90.31 	at one of these campuses wishes to join the unit and this petition is supported by a showing 
90.32 	of at least 30 percent support from eligible employees at that campus and is filed between 
90.33 	September 1 and November 1.
91.1 	Should both units 8 and 9 elect exclusive bargaining representatives, those representatives 
91.2 	may by mutual agreement jointly negotiate a contract with the regents, or may negotiate 
91.3 	separate contracts with the regents. If the exclusive bargaining representatives jointly 
91.4 	negotiate a contract with the regents, the contract shall be ratified by each unit. For the 
91.5 	purposes of this section, "instructional employees" shall include all individuals who spend 
91.6 	35 percent or more of their work time creating, delivering, and assessing the mastery of 
91.7 	credit-bearing coursework.
91.8 	(10) The Graduate Assistant Unit consists of includes the positions of all graduate 
91.9 	assistants who are enrolled in the graduate school and who hold the rank of research assistant, 
91.10 	teaching assistant, teaching associate I or II, project assistant, graduate school fellow, 
91.11 	graduate school trainee, professional school fellow, professional school trainee, or 
91.12 	administrative fellow I or II. None of the listed ranks refer to ranks under the job category 
91.13 	of professionals-in-training.
91.14 	(11) The Academic Professional and Administrative Staff Unit consists of all academic 
91.15 	professional and administrative staff positions that are not defined as included in an 
91.16 	instructional unit, the supervisory unit, the clerical unit, or the technical unit.
91.17 	(12) The Noninstructional Professional Unit consists of the positions of all employees 
91.18 	meeting the requirements of section 179A.03, subdivision 13, clause (1) or (2), which are 
91.19 	not defined as included within an instructional unit, the Academic Professional and 
91.20 	Administrative Staff Unit, or the supervisory unit.
91.21 	(13) The Supervisory Employees Unit consists of the positions of all supervisory 
91.22 	employees.
91.23 	(b) All University of Minnesota employees whose positions are not within an enumerated 
91.24 	bargaining unit in this subdivision may organize in the manner set forth in section 179A.09, 
91.25 	and the commissioner must place special weight on the desires of the petitioning employee 
91.26 	representatives.

91.27 	Sec. 3. Minnesota Statutes 2022, section 179A.11, subdivision 2, is amended to read:
91.28 		Subd. 2.University of Minnesota employee severance. (a) Each of the following 
91.29 	groups of University of Minnesota employees has the right, as specified in this subdivision, 
91.30 	to separate from the instructional and supervisory units: (1) health sciences instructional 
91.31 	employees at all campuses with the rank of professor, associate professor, assistant professor, 
91.32 	including research associate, or instructor, including research fellow, (2) instructional 
91.33 	employees of the law school with the rank of professor, associate professor, assistant 
92.1 	professor, including research associate, or instructor, including research fellow, (3) 
92.2 	instructional supervisors, (4) noninstructional professional supervisors, and (5) academic 
92.3 	professional and administrative staff supervisors.
92.4 	This (b) The right to separate may be exercised:
92.5 	(1) by petition between September 1 and November 1. If a group separates from its unit, 
92.6 	it has no right to meet and negotiate, but retains the right to meet and confer with the 
92.7 	appropriate officials on any matter of concern to the group. The right to separate must be 
92.8 	exercised as follows: An employee organization or group of employees claiming that a 
92.9 	majority of any one of these groups of employees on a statewide basis wish to separate from 
92.10 	their unit may petition the commissioner for an election during the petitioning period. If the 
92.11 	petition is supported by a showing of at least 30 percent support from the employees, the 
92.12 	commissioner shall may hold an election on the separation issue or the petitioning group 
92.13 	may proceed under the process set forth in section 179A.12. This election must be conducted 
92.14 	within 30 days of the close of the petition period. If a majority of votes cast endorse severance 
92.15 	from their unit, the commissioner shall certify that result.; or
92.16 	(2) by the group's exclusion from a proposed unit in a representation petition.
92.17 	(c) Where not inconsistent with other provisions of this section, the election is governed 
92.18 	by section 179A.12. If a group of employees severs, it may rejoin that unit by following the 
92.19 	procedures for severance during the periods for severance.

92.20 	Sec. 4. Minnesota Statutes 2022, section 179A.11, is amended by adding a subdivision to 
92.21 	read:
92.22 		Subd. 3.Joint bargaining. Units organized under this section that have elected exclusive 
92.23 	bargaining representatives may by mutual agreement jointly negotiate a contract with the 
92.24 	regents, or may negotiate separate contracts with the regents. If the exclusive bargaining 
92.25 	representatives jointly negotiate a contract with the regents, the contract must be ratified 
92.26 	by each unit.

92.27 	ARTICLE 9
92.28 	MISCELLANEOUS LABOR PROVISIONS

92.29 	Section 1. Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 1, as 
92.30 	amended by Laws 2024, chapter 85, section 15, is amended to read:
92.31 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
92.32 	the meanings given them.
93.1 	(b) "Economic development" means financial assistance provided to a person directly 
93.2 	or to a local unit of government or nonprofit organization on behalf of a person who is 
93.3 	engaged in the manufacture or sale of goods and services. Economic development does not 
93.4 	include (1) financial assistance for rehabilitation of existing housing; (2) financial assistance 
93.5 	for new housing construction in which total financial assistance at a single project site is 
93.6 	less than $100,000; or (3) financial assistance for the new construction of fully detached 
93.7 	single-family affordable homeownership units for which the financial assistance covers no 
93.8 	more than ten fully detached single-family affordable homeownership units. For purposes 
93.9 	of this paragraph, "affordable homeownership" means housing targeted at households with 
93.10 	incomes, at initial occupancy, at or below 115 percent of the state or area median income, 
93.11 	whichever is greater, as determined by the United States Department of Housing and Urban 
93.12 	Development.
93.13 	(c) "Financial assistance" means (1) a grant awarded by a state agency for economic 
93.14 	development related purposes if a single business receives $200,000 or more of the grant 
93.15 	proceeds; (2) a loan or the guaranty or purchase of a loan made by a state agency for 
93.16 	economic development related purposes if a single business receives $500,000 or more of 
93.17 	the loan proceeds; or (3) a reduction, credit, or abatement of a tax assessed under chapter 
93.18 	297A where the tax reduction, credit, or abatement applies to a geographic area smaller 
93.19 	than the entire state and was granted for economic development related purposes; (4) tax 
93.20 	increment financing pursuant to section 469.174, provided that such tax increment financing 
93.21 	(i) provides financial assistance to a development that consists, in part or in whole, of 25 
93.22 	units or more of multifamily housing, or (ii) provides $100,000 or more of financial assistance 
93.23 	to a development; or (5) allocations of low-income housing credits by all suballocators as 
93.24 	defined under section 462A.222, for which tax credits are used for multifamily housing 
93.25 	projects consisting of more than ten units. Financial assistance does not include payments 
93.26 	by the state of aids and credits under chapter 273 or 477A to a political subdivision.
93.27 	(d) "Project site" means the location where improvements are made that are financed in 
93.28 	whole or in part by the financial assistance; or the location of employees that receive financial 
93.29 	assistance in the form of employment and training services as defined in section 116L.19, 
93.30 	subdivision 4, or customized training from a technical college.
93.31 	(e) "State agency" means any agency defined under section 16B.01, subdivision 2, 
93.32 	Enterprise Minnesota, Inc., and the Department of Iron Range Resources and Rehabilitation.

93.33 	EFFECTIVE DATE. This section is effective for financial assistance provided after 
93.34 	August 1, 2024, and applies only to tax increment financing districts for which the request 
93.35 	for certification was made on or after August 1, 2024.

94.1 	Sec. 2. Minnesota Statutes 2023 Supplement, section 177.42, subdivision 2, is amended 
94.2 	to read:
94.3 		Subd. 2.Project. "Project" means demolition, erection, construction, alteration, 
94.4 	improvement, restoration, remodeling, or repairing of a public building, structure, facility, 
94.5 	land, or other public work, which includes any work suitable for and intended for use by 
94.6 	the public, or for the public benefit, financed in whole or part by state funds. Project also 
94.7 	includes demolition, erection, construction, alteration, improvement, restoration, remodeling, 
94.8 	or repairing of a building, structure, facility, land, or public work when:
94.9 	(1) the acquisition of property, predesign, design, or demolition is financed in whole or 
94.10 	part by state funds.; or
94.11 	(2) the project is owned by a city, county, or school district and the materials and supplies 
94.12 	used or consumed in and equipment incorporated into the construction, reconstruction, 
94.13 	upgrade, expansion, renovation, or remodeling of the project qualify for an exemption from 
94.14 	sales and use tax under chapter 297A or special law.

94.15 	Sec. 3. Minnesota Statutes 2022, section 181.960, subdivision 3, is amended to read:
94.16 		Subd. 3.Employer. "Employer" means a person who has 20 one or more employees. 
94.17 	Employer does not include a state agency, statewide system, political subdivision, or advisory 
94.18 	board or commission that is subject to chapter 13.

94.19 	Sec. 4. RULEMAKING; ACCEPTABLE BLOOD LEAD LEVELS FOR WORKERS.
 94.20 	The commissioner of labor and industry, in consultation with the commissioner of health, 
94.21 	shall adopt rules to:
94.22 	(1) lower the acceptable blood lead levels above which require mandatory removal of 
94.23 	workers from the lead exposure; and
94.24 	(2) lower the blood lead levels required before a worker is allowed to return to work. 
94.25 	The thresholds established must be based on the most recent public health information on 
94.26 	the safety of lead exposure.

95.1 	ARTICLE 10
95.2 	BROADBAND AND PIPELINE SAFETY

95.3 	Section 1. Minnesota Statutes 2022, section 116J.395, subdivision 6, is amended to read:
95.4 		Subd. 6.Awarding grants. (a) In evaluating applications and awarding grants, the 
95.5 	commissioner shall give priority to applications that are constructed in areas identified by 
95.6 	the director of the Office of Broadband Development as unserved.
95.7 	(b) In evaluating applications and awarding grants, the commissioner may give priority 
95.8 	to applications that:
95.9 	(1) are constructed in areas identified by the director of the Office of Broadband 
95.10 	Development as underserved;
95.11 	(2) offer new or substantially upgraded broadband service to important community 
95.12 	institutions including, but not limited to, libraries, educational institutions, public safety 
95.13 	facilities, and healthcare facilities;
95.14 	(3) facilitate the use of telehealth and electronic health records;
95.15 	(4) serve economically distressed areas of the state, as measured by indices of 
95.16 	unemployment, poverty, or population loss that are significantly greater than the statewide 
95.17 	average;
95.18 	(5) provide technical support and train residents, businesses, and institutions in the 
95.19 	community served by the project to utilize broadband service;
95.20 	(6) include a component to actively promote the adoption of the newly available 
95.21 	broadband services in the community;
95.22 	(7) provide evidence of strong support for the project from citizens, government, 
95.23 	businesses, and institutions in the community;
95.24 	(8) provide access to broadband service to a greater number of unserved or underserved 
95.25 	households and businesses; or
95.26 	(9) leverage greater amounts of funding for the project from other private and public 
95.27 	sources.
95.28 	(c) The commissioner shall endeavor to award grants under this section to qualified 
95.29 	applicants in all regions of the state.
96.1 	(d) No less than the following percentages of the total border-to-border broadband grant 
96.2 	funds awarded in the year indicated shall be reserved for applicants that agree to implement 
96.3 	the workforce best practices as defined in paragraph (e):
96.4 	(1) 50 percent in 2024;
96.5 	(2) 60 percent in 2025; and
96.6 	(3) 70 percent in 2026 and thereafter.
96.7 	The applicant's agreement to implement the workforce best practices as defined in paragraph 
96.8 	(e) must be an express condition of providing the grant in the grant agreement.
96.9 	(e) An applicant for a grant under this section is considered to implement workforce 
96.10 	best practices only if the applicant can demonstrate that:
96.11 	(1) there is credible evidence of support for the application and the applicant's workforce 
96.12 	needs on the project for which the grant is provided from one or more labor, 
96.13 	labor-management, or other workforce organizations that have a track record of representing 
96.14 	and advocating for workers or recruiting, training, and securing employment for people of 
96.15 	color, Indigenous people, women, or people with disabilities in the construction industry; 
96.16 	and
96.17 	(2) all laborers and mechanics performing construction, installation, remodeling, or 
96.18 	repairs on the project sites for which the grant is provided:
96.19 	(i) are paid the prevailing wage rate as defined in section 177.42, subdivision 6, and the 
96.20 	applicant and all of its construction contractors and subcontractors agree that the payment 
96.21 	of prevailing wage to such laborers and mechanics is subject to the requirements and 
96.22 	enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 
96.23 	177.45, which the commissioner of labor and industry shall have the authority to enforce; 
96.24 	or
96.25 	(ii) receive from their employer:
96.26 	(A) at least 80 hours of skills training annually, of which at least 40 hours must consist 
96.27 	of hands-on instruction;
96.28 	(B) employer-paid family health insurance coverage; and
96.29 	(C) employer-paid retirement benefit payments equal to no less than 15 percent of the 
96.30 	employee's total taxable wages.
96.31 	(f) In the event that the commissioner does not receive enough qualified applications to 
96.32 	achieve the standards under paragraph (d), the commissioner shall consult with prospective 
97.1 	applicants and labor and workforce organizations under paragraph (e), clause (1), to solicit 
97.2 	additional qualified applications.

97.3 	Sec. 2. [116J.3991] BROADBAND, EQUITY, ACCESS, AND DEPLOYMENT 
97.4 	(BEAD).
97.5 		Subdivision 1.Implementation. The commissioner shall implement a Broadband, 
97.6 	Equity, Access, and Deployment (BEAD) Program that prioritizes applicants for state 
97.7 	funding that demonstrate the following:
97.8 	(1) commitment by the applicant to robust training programs with established 
97.9 	requirements that are tied to uniform wage scales, job titles, and relevant certifications or 
97.10 	skill codes;
97.11 	(2) use of a directly employed workforce, as opposed to a subcontracted workforce, to 
97.12 	perform broadband placing, splicing, and maintenance work. Public entity applicants may 
97.13 	meet this requirement by use of a directly employed workforce or committing to contract 
97.14 	with an Internet service provider that will use a directly employed workforce;
97.15 	(3) commitment to implement workforce best practices under section 116J.395, 
97.16 	subdivision 6, paragraph (e), on the project or projects for which the applicant seeks public 
97.17 	funding; and
97.18 	(4) commitment to retaining a locally based workforce and establishing programs to 
97.19 	promote training and hiring pipelines for underrepresented communities.
97.20 		Subd. 2.Project evaluation. In projects funded by the BEAD Program, the criteria 
97.21 	under subdivision 1 and section 116J.395, subdivision 6, paragraph (e), shall receive a 
97.22 	priority point allocation in the point scheme for project applications, such that these criteria 
97.23 	shall, together with points awarded for labor law compliance, constitute no fewer than 25 
97.24 	points of the evaluation scheme, out of 100. No fewer than 20 points must be based on an 
97.25 	applicant's forward-looking commitments regarding implementation of workforce best 
97.26 	practices and other commitments listed in this section.
97.27 		Subd. 3.Disclosures. Applicants' disclosures responding to the criteria in subdivision 
97.28 	1 and section 116J.395, subdivision 6, paragraph (e), must be publicly available on the 
97.29 	department website, and all workforce commitments made under this section and section 
97.30 	116J.395 shall become enforceable, certified commitments and conditions of the grant.
97.31 		Subd. 4.Workforce plan data. (a) Grantees in projects funded by the program under 
97.32 	this section and section 116J.395 are required to provide in biannual reports information 
97.33 	on their workforce, including:
98.1 	(1) whether the workforce will be directly employed by the grantee or the Internet service 
98.2 	provider or whether work will be performed by a subcontracted workforce;
98.3 	(2) the entities that the contractor plans to subcontract with in carrying out the proposed 
98.4 	work, if any, and the entity employing the workforce in each job title;
98.5 	(3) the job titles and size of the workforce, including the number of full-time equivalent 
98.6 	positions that are required to carry out the proposed work over the course of the project;
98.7 	(4) for each job title required to carry out the proposed work, a description of wages, 
98.8 	benefits, applicable wage scales including overtime rates, and a description of how wages 
98.9 	are calculated; and
98.10 	(5) any other workforce plan information as determined by the commissioner.
98.11 	(b) Following an award, the workforce plan and the requirement to submit ongoing 
98.12 	workforce reports shall be incorporated as material conditions of the contract with the 
98.13 	department and become enforceable, certified commitments. The commissioner must conduct 
98.14 	regular reviews to assure compliance and take appropriate measures for enforcement.
98.15 		Subd. 5.Failure to meet requirements or falsification of data. If successful applicants 
98.16 	fail to meet the program requirements under this section, or otherwise falsify information 
98.17 	regarding such requirements, the commissioner shall investigate the failure and issue an 
98.18 	appropriate action, up to and including a determination that the applicant is ineligible for 
98.19 	future participation in broadband grant programs funded by the department.
98.20 		Subd. 6.Federal grant requirements. The commissioner shall have authority not to 
98.21 	enforce or apply any requirement of this section to the extent that the requirement would 
98.22 	prevent the state from receiving federal broadband grant funding.

98.23 	Sec. 3. [181.912] UNDERGROUND TELECOMMUNICATIONS 
98.24 	INFRASTRUCTURE.
98.25 		Subdivision 1.Definitions. For the purposes of this section:
98.26 	(1) "directional drilling" means a drilling method that utilizes a steerable drill bit to cut 
98.27 	a bore hole for installing underground utilities;
98.28 	(2) "safety-qualified underground telecommunications installer" means a person who 
98.29 	has completed underground utilities installation certification under subdivision 3;
98.30 	(3) "underground telecommunications utilities" means buried broadband, telephone and 
98.31 	other telecommunications transmission, distribution and service lines, and associated 
98.32 	facilities; and
99.1 	(4) "underground utilities" means buried electric transmission and distribution lines, gas 
99.2 	and hazardous liquids pipelines and distribution lines, sewer and water pipelines, telephone 
99.3 	or telecommunications lines, and associated facilities.
99.4 		Subd. 2.Installation requirements. The installation of underground telecommunications 
99.5 	infrastructure that is located within ten feet of existing underground utilities or that crosses 
99.6 	said utilities must be performed by safety-qualified underground telecommunications 
99.7 	installers as follows:
99.8 	(1) the location of existing utilities by hand or hydro excavation or other accepted methods 
99.9 	must be performed by a safety-qualified underground telecommunications installer;
99.10 	(2) where telecommunications infrastructure is installed by means of directional drilling, 
99.11 	the monitoring of the location and depth of the drill head must be performed by a 
99.12 	safety-qualified underground telecommunications installer; and
99.13 	(3) no less than two safety-qualified underground telecommunications installers must 
99.14 	be present at all times at any location where telecommunications infrastructure is being 
99.15 	installed by means of directional drilling.
99.16 		Subd. 3.Certification Standards. (a) The commissioner of labor and industry shall 
99.17 	approve standards for a safety-qualified underground telecommunications installer 
99.18 	certification program that requires a person to:
99.19 	(1) complete a 40-hour initial course that includes classroom and hands-on instruction 
99.20 	covering proper work procedures for safe installation of underground utilities, including:
99.21 	(i) regulations applicable to excavation near existing utilities;
99.22 	(ii) identification, location, and verification of utility lines using hand or hydro excavation 
99.23 	or other accepted methods;
99.24 	(iii) response to line strike incidents;
99.25 	(iv) traffic control procedures;
99.26 	(v) use of a tracking device to safely guide directional drill equipment along a drill path; 
99.27 	and
99.28 	(vi) avoidance and mitigation of safety hazards posed by underground utility installation 
99.29 	projects;
99.30 	(2) demonstrate knowledge of the course material by successfully completing an 
99.31 	examination approved by the commissioner; and
100.1 	(3) complete a four-hour refresher course within three years of completing the original 
100.2 	course and every three years thereafter in order to maintain certification.
100.3 	(b) The commissioner must develop an approval process for training providers under 
100.4 	this subdivision, and may suspend or revoke the approval of any training provider that fails 
100.5 	to demonstrate consistent delivery of approved curriculum or success in preparing participants 
100.6 	to complete the examination.

100.7 	Sec. 4. Minnesota Statutes 2022, section 216B.17, is amended by adding a subdivision to 
100.8 	read:
100.9 		Subd. 9.Telecommunications and cable communications systems. (a) The commission 
100.10 	has authority under this section to investigate, upon complaint or on its own motion, conduct 
100.11 	by or on behalf of a telecommunications carrier, telephone company, or cable 
100.12 	communications system provider that impacts public utility or cooperative electric association 
100.13 	infrastructure. If the commission finds that the conduct damaged or unreasonably interfered 
100.14 	with the function of the infrastructure, the commission may take any action authorized under 
100.15 	sections 216B.52 to 216B.61 with respect to the provider.
100.16 	(b) For purposes of this subdivision:
100.17 	(1) "telecommunications carrier" has the meaning given in section 237.01, subdivision 
100.18 	6;
100.19 	(2) "telephone company" has the meaning given in section 237.01, subdivision 7; and
100.20 	(3) "cable communications system provider" means an owner or operator of a cable 
100.21 	communications system as defined in section 238.02, subdivision 3.

100.22 	Sec. 5. Minnesota Statutes 2022, section 299J.01, is amended to read:
100.23 	299J.01 AUTHORITY OF OFFICE OF PIPELINE SAFETY.
100.24 	The commissioner of public safety shall, to the extent authorized by agreement with the 
100.25 	United States Secretary of Transportation, act as agent for the United States Secretary of 
100.26 	Transportation to implement the federal Hazardous Liquid Pipeline Safety Act, United 
100.27 	States Code, title 49, sections 2001 to 2014, the federal and Natural Gas Pipeline Safety 
100.28 	Act acts, United States Code, title 49, sections 1671 to 1686 60101 to 60141, and federal 
100.29 	pipeline safety regulations with respect to interstate pipelines located within this state. The 
100.30 	commissioner shall, to the extent authorized by federal law, regulate pipelines in the state 
100.31 	as authorized by sections 299J.01 to 299J.17 and 299F.56 to 299F.641.

101.1 	Sec. 6. Minnesota Statutes 2022, section 299J.02, is amended by adding a subdivision to 
101.2 	read:
101.3 		Subd. 14.Utility corridor. "Utility corridor" means land that contains access to 
101.4 	above-ground utility infrastructure or an underground facility as defined in section 216D.01, 
101.5 	subdivision 11.

101.6 	Sec. 7. Minnesota Statutes 2022, section 299J.04, subdivision 2, is amended to read:
101.7 		Subd. 2.Delegated duties. (a) The commissioner shall seek and accept federal 
101.8 	designation of the office's pipeline inspectors as federal agents for the purposes of 
101.9 	enforcement of the federal Hazardous Liquid Pipeline Safety Act, United States Code, title 
101.10 	49, sections 2001 to 2014, the federal and Natural Gas Pipeline Safety Act acts, United 
101.11 	States Code, title 49, sections 1671 to 1686 60101 to 60141, and federal rules adopted to 
101.12 	implement those acts. The commissioner shall establish and submit to the United States 
101.13 	Secretary of Transportation an inspection program that complies with requirements for 
101.14 	delegated interstate agent inspection authority.
101.15 	(b) To the extent that federal delegation of interstate agent inspection authority permits, 
101.16 	the inspection program for interstate pipelines and LNG facilities must be the same as the 
101.17 	inspection program for intrastate pipelines and LNG facilities. If the United States Secretary 
101.18 	of Transportation delegates inspection authority to the state as provided in this subdivision, 
101.19 	the commissioner, at a minimum, shall do the following to carry out the delegated federal 
101.20 	authority:
101.21 	(1) inspect pipelines and LNG facilities periodically as specified in the inspection 
101.22 	program;
101.23 	(2) collect inspection fees;
101.24 	(3) order and oversee the testing of pipelines and LNG facilities as authorized by federal 
101.25 	law and regulations; and
101.26 	(4) file reports with the United States Secretary of Transportation as required to maintain 
101.27 	the delegated inspection authority.

101.28 	Sec. 8. Minnesota Statutes 2022, section 299J.11, is amended to read:
101.29 	299J.11 ADOPTION OF FEDERAL PIPELINE INSPECTION RULES.
101.30 	(a) To enable the state to act as an agent of the United States Secretary of Transportation 
101.31 	and to qualify for annual federal certification to enforce the federal pipeline inspection 
102.1 	program authorized by the Hazardous Liquid Pipeline Safety Act, United States Code, title
102.2 	49, sections 2001 to 2014, the federal and Natural Gas Pipeline Safety Act acts, United 
102.3 	States Code, title 49, sections 1671 to 1686 60101 to 60141, and the rules implementing 
102.4 	those acts, the federal pipeline inspection rules and safety standards, and regulations and 
102.5 	standards that may be adopted that amend them, are adopted.
102.6 	(b) An individual or contractor performing construction or maintenance work within 20 
102.7 	feet of a utility corridor must comply with the operator qualification rules set forth in Code 
102.8 	of Federal Regulations, title 49, parts 192, subpart N, and 195, subpart G.
102.9 	(c) An individual or contractor performing construction or maintenance work within 20 
102.10 	feet of a utility corridor must comply with the workplace drug and alcohol testing rules set 
102.11 	forth in Code of Federal Regulations, title 49, part 40.

102.12 	Sec. 9. REPEALER.
 102.13 	Minnesota Statutes 2022, section 116J.398, is repealed.

102.14 	ARTICLE 11
102.15 	EMPLOYEE MISCLASSIFICATION PROHIBITED

102.16 	Section 1. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 1, is amended 
102.17 	to read:
102.18 		Subdivision 1.Examination of records. The commissioner may enter during reasonable 
102.19 	office hours or upon request and inspect the place of business or employment of any employer 
102.20 	of employees working in the state, to examine and inspect books, registers, payrolls, and 
102.21 	other records of any employer that in any way relate to wages, hours, and other conditions 
102.22 	of employment of any employees. The commissioner may transcribe any or all of the books, 
102.23 	registers, payrolls, and other records as the commissioner deems necessary or appropriate 
102.24 	and may question the employer, employees, and other persons to ascertain compliance with 
102.25 	any of the sections 177.21 to 177.435 and 181.165 listed in subdivision 4. The commissioner 
102.26 	may investigate wage claims or complaints by an employee against an employer if the failure 
102.27 	to pay a wage may violate Minnesota law or an order or rule of the department.

102.28 	Sec. 2. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 2, is amended 
102.29 	to read:
102.30 		Subd. 2.Submission of records; penalty. The commissioner may require the employer 
102.31 	of employees working in the state to submit to the commissioner photocopies, certified 
103.1 	copies, or, if necessary, the originals of employment records that relate to employment or 
103.2 	employment status which the commissioner deems necessary or appropriate. The records 
103.3 	which may be required include full and correct statements in writing, including sworn 
103.4 	statements by the employer, containing information relating to wages, hours, names, 
103.5 	addresses, and any other information pertaining to the employer's employees and the 
103.6 	conditions of their employment as the commissioner deems necessary or appropriate.
103.7 	The commissioner may require the records to be submitted by certified mail delivery 
103.8 	or, if necessary, by personal delivery by the employer or a representative of the employer, 
103.9 	as authorized by the employer in writing.
103.10 	The commissioner may fine the employer up to $10,000 for each failure to submit or 
103.11 	deliver records as required by this section. This penalty is in addition to any penalties 
103.12 	provided under section 177.32, subdivision 1. In determining the amount of a civil penalty 
103.13 	under this subdivision, the appropriateness of such penalty to the size of the employer's 
103.14 	business and the gravity of the violation shall be considered.

103.15 	Sec. 3. Minnesota Statutes 2022, section 177.27, subdivision 3, is amended to read:
103.16 		Subd. 3.Adequacy of records. If the records maintained by the employer do not provide 
103.17 	sufficient information to determine the exact amount of back wages due an employee, the 
103.18 	commissioner may make a determination of wages due based on available evidence and 
103.19 	mediate a settlement with the employer.

103.20 	Sec. 4. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 4, is amended 
103.21 	to read:
103.22 		Subd. 4.Compliance orders. The commissioner may issue an order requiring an 
103.23 	employer to comply with sections 177.21 to 177.435, 179.86, 181.02, 181.03, 181.031, 
103.24 	181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 181.172, paragraph 
103.25 	(a) or (d), 181.214 to 181.217, 181.275, subdivision 2a, 181.635, 181.722, 181.723, 181.79, 
103.26 	181.85 to 181.89, 181.939 to 181.943, 181.9445 to 181.9448, 181.987, 181.991, 268B.09, 
103.27 	subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under section 
103.28 	177.28, 181.213, or 181.215. The commissioner shall issue an order requiring an employer 
103.29 	to comply with sections 177.41 to 177.435, 181.165, or 181.987 if the violation is repeated. 
103.30 	For purposes of this subdivision only, a violation is repeated if at any time during the two 
103.31 	years that preceded the date of violation, the commissioner issued an order to the employer 
103.32 	for violation of sections 177.41 to 177.435, 181.165, or 181.987 and the order is final or 
103.33 	the commissioner and the employer have entered into a settlement agreement that required 
104.1 	the employer to pay back wages that were required by sections 177.41 to 177.435. The 
104.2 	department shall serve the order upon the employer or the employer's authorized 
104.3 	representative in person or by certified mail at the employer's place of business. An employer 
104.4 	who wishes to contest the order must file written notice of objection to the order with the 
104.5 	commissioner within 15 calendar days after being served with the order. A contested case 
104.6 	proceeding must then be held in accordance with sections 14.57 to 14.69 or 181.165. If, 
104.7 	within 15 calendar days after being served with the order, the employer fails to file a written 
104.8 	notice of objection with the commissioner, the order becomes a final order of the 
104.9 	commissioner. For the purposes of this subdivision, an employer includes a contractor that 
104.10 	has assumed a subcontractor's liability within the meaning of section 181.165.

104.11 	Sec. 5. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 7, is amended 
104.12 	to read:
104.13 		Subd. 7.Employer liability. If an employer is found by the commissioner to have 
104.14 	violated a section identified in subdivision 4, or any rule adopted under section 177.28, 
104.15 	181.213, or 181.215, and the commissioner issues an order to comply, the commissioner 
104.16 	shall order the employer to cease and desist from engaging in the violative practice and to 
104.17 	take such affirmative steps that in the judgment of the commissioner will effectuate the 
104.18 	purposes of the section or rule violated. In addition to remedies, damages, and penalties 
104.19 	provided for in the violated section, the commissioner shall order the employer to pay to 
104.20 	the aggrieved parties back pay, gratuities, and compensatory damages, less any amount 
104.21 	actually paid to the employee aggrieved parties by the employer, and for an additional equal 
104.22 	amount as liquidated damages. Any employer who is found by the commissioner to have 
104.23 	repeatedly or willfully violated a section or sections identified in subdivision 4 shall be 
104.24 	subject to a an additional civil penalty of up to $10,000 for each violation for each employee. 
104.25 	In determining the amount of a civil penalty under this subdivision, the appropriateness of 
104.26 	such penalty to the size of the employer's business and the gravity of the violation shall be 
104.27 	considered. In addition, the commissioner may order the employer to reimburse the 
104.28 	department and the attorney general for all appropriate litigation and hearing costs expended 
104.29 	in preparation for and in conducting the contested case proceeding, unless payment of costs 
104.30 	would impose extreme financial hardship on the employer. If the employer is able to establish 
104.31 	extreme financial hardship, then the commissioner may order the employer to pay a 
104.32 	percentage of the total costs that will not cause extreme financial hardship. Costs include 
104.33 	but are not limited to the costs of services rendered by the attorney general, private attorneys 
104.34 	if engaged by the department, administrative law judges, court reporters, and expert witnesses 
104.35 	as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance 
105.1 	of a commissioner's order from the date the order is signed by the commissioner until it is 
105.2 	paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). The 
105.3 	commissioner may establish escrow accounts for purposes of distributing remedies and
105.4 	damages.

105.5 	Sec. 6. Minnesota Statutes 2022, section 181.171, subdivision 1, is amended to read:
105.6 		Subdivision 1.Civil action; damages. A person may bring a civil action seeking redress 
105.7 	for violations of sections 181.02, 181.03, 181.031, 181.032, 181.08, 181.09, 181.10, 181.101, 
105.8 	181.11, 181.13, 181.14, 181.145, and181.15, 181.722, and 181.723 directly to district court. 
105.9 	An employer who is found to have violated the above sections is liable to the aggrieved 
105.10 	party for the civil penalties or damages provided for in the section violated. An employer 
105.11 	who is found to have violated the above sections shall also be liable for compensatory 
105.12 	damages and other appropriate relief including but not limited to injunctive relief.

105.13 	Sec. 7. Minnesota Statutes 2022, section 181.722, is amended to read:
105.14 	181.722 MISREPRESENTATION MISCLASSIFICATION OF EMPLOYMENT 
105.15 	RELATIONSHIP PROHIBITED EMPLOYEES.
105.16 		Subdivision 1.Prohibition Prohibited activities related to employment status. No 
105.17 	employer shall misrepresent the nature of its employment relationship with its employees 
105.18 	to any federal, state, or local government unit; to other employers; or to its employees. An 
105.19 	employer misrepresents the nature of its employment relationship with its employees if it 
105.20 	makes any statement regarding the nature of the relationship that the employer knows or 
105.21 	has reason to know is untrue and if it fails to report individuals as employees when legally 
105.22 	required to do so.
105.23 	(a) A person shall not:
105.24 	(1) fail to classify, represent, or treat an individual who is the person's employee pursuant 
105.25 	to subdivision 3 as an employee in accordance with the requirements of any applicable local, 
105.26 	state, or federal law. A violation under this clause is in addition to any violation of local, 
105.27 	state, or federal law;
105.28 	(2) fail to report or disclose to any person or to any local, state, or federal government 
105.29 	agency an individual who is the person's employee pursuant to subdivision 3 as an employee 
105.30 	when required to do so under any applicable local, state, or federal law. Each failure to 
105.31 	report or disclose an individual as an employee shall constitute a separate violation of this 
105.32 	clause; or
106.1 	(3) require or request an individual who is the person's employee pursuant to subdivision 
106.2 	3 to enter into any agreement or complete any document that misclassifies, misrepresents, 
106.3 	or treats the individual as an independent contractor or otherwise does not reflect that the 
106.4 	individual is the person's employee pursuant to subdivision 3. Each agreement or completed 
106.5 	document constitutes a separate violation of this provision.
106.6 	(b) An owner, partner, principal, member, officer, or agent, on behalf of the person, who 
106.7 	engaged in any of the prohibited activities in this subdivision may be held individually 
106.8 	liable.
106.9 	(c) An order issued by the commissioner to a person for engaging in any of the prohibited 
106.10 	activities in this subdivision is in effect against any successor person. A person is a successor 
106.11 	person if the person shares three or more of the following with the person to whom the order 
106.12 	was issued:
106.13 	(1) has one or more of the same owners, members, principals, officers, or managers;
106.14 	(2) performs similar work within the state of Minnesota;
106.15 	(3) has one or more of the same telephone or fax numbers;
106.16 	(4) has one or more of the same email addresses or websites;
106.17 	(5) employs or engages substantially the same individuals to provide or perform services;
106.18 	(6) utilizes substantially the same vehicles, facilities, or equipment; or
106.19 	(7) lists or advertises substantially the same project experience and portfolio of work.
106.20 		Subd. 1a.Definitions. (a) "Person" means any individual, sole proprietor, limited liability 
106.21 	company, limited liability partnership, corporation, partnership, incorporated or 
106.22 	unincorporated association, joint stock company, or any other legal or commercial entity.
106.23 	(b) "Department" means the Department of Labor and Industry.
106.24 	(c) "Commissioner" means the commissioner of labor and industry or a duly designated 
106.25 	representative of the commissioner who is either an employee of the Department of Labor 
106.26 	and Industry or a person working under contract with the Department of Labor and Industry.
106.27 	(d) "Individual" means a human being.
106.28 		Subd. 2.Agreements to misclassify prohibited. No employer shall require or request 
106.29 	any employee to enter into any agreement, or sign any document, that results in 
106.30 	misclassification of the employee as an independent contractor or otherwise does not 
106.31 	accurately reflect the employment relationship with the employer.
107.1 		Subd. 3.Determination of employment relationship. For purposes of this section, the 
107.2 	nature of an employment relationship is determined using the same tests and in the same 
107.3 	manner as employee status is determined under the applicable workers' compensation and
107.4 	or unemployment insurance program laws and rules.
107.5 		Subd. 4.Civil remedy Damages and penalties. A construction worker, as defined in 
107.6 	section 179.254, who is not an independent contractor and has been injured by a violation 
107.7 	of this section, may bring a civil action for damages against the violator. If the construction 
107.8 	worker injured is an employee of the violator of this section, the employee's representative, 
107.9 	as defined in section 179.01, subdivision 5, may bring a civil action for damages against 
107.10 	the violator on behalf of the employee. The court may award attorney fees, costs, and 
107.11 	disbursements to a construction worker recovering under this section.
107.12 	(a) The following damages and penalties may be imposed for a violation of this section:
107.13 	(1) compensatory damages to the individual the person has failed to classify, represent, 
107.14 	or treat as an employee pursuant to subdivision 3. Compensatory damages includes but is 
107.15 	not limited to the value of supplemental pay including minimum wage; overtime; shift 
107.16 	differentials; vacation pay, sick pay, and other forms of paid time off; health insurance; life 
107.17 	and disability insurance; retirement plans; savings plans and any other form of benefit; 
107.18 	employer contributions to unemployment insurance; Social Security and Medicare; and any 
107.19 	costs and expenses incurred by the individual resulting from the person's failure to classify, 
107.20 	represent, or treat the individual as an employee;
107.21 	(2) a penalty of up to $10,000 for each individual the person failed to classify, represent, 
107.22 	or treat as an employee pursuant to subdivision 3;
107.23 	(3) a penalty of up to $10,000 for each violation of subdivision 1; and
107.24 	(4) a penalty of $1,000 for each person who delays, obstructs, or otherwise fails to 
107.25 	cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure 
107.26 	to cooperate constitutes a separate violation.
107.27 	(b) This section may be investigated and enforced under the commissioner's authority 
107.28 	under state law.
107.29 		Subd. 5.Reporting of violations. Any court finding that a violation of this section has 
107.30 	occurred shall transmit a copy of its findings of fact and conclusions of law to the 
107.31 	commissioner of labor and industry. The commissioner of labor and industry shall report 
107.32 	the finding to relevant local, state, and federal agencies, including the commissioner of 
108.1 	commerce, the commissioner of employment and economic development, the commissioner 
108.2 	of revenue, the federal Internal Revenue Service, and the United States Department of Labor.

108.3 	Sec. 8. Minnesota Statutes 2022, section 181.723, is amended to read:
108.4 	181.723 MISCLASSIFICATION OF CONSTRUCTION CONTRACTORS
108.5 	EMPLOYEES.
108.6 		Subdivision 1.Definitions. The definitions in this subdivision apply to this section.
108.7 	(a) "Person" means any individual, sole proprietor, limited liability company, limited 
108.8 	liability partnership, corporation, partnership, incorporated or unincorporated association, 
108.9 	sole proprietorship, joint stock company, or any other legal or commercial entity.
108.10 	(b) "Department" means the Department of Labor and Industry.
108.11 	(c) "Commissioner" means the commissioner of labor and industry or a duly designated 
108.12 	representative of the commissioner who is either an employee of the Department of Labor 
108.13 	and Industry or person working under contract with the Department of Labor and Industry.
108.14 	(d) "Individual" means a human being.
108.15 	(e) "Day" means calendar day unless otherwise provided.
108.16 	(f) "Knowingly" means knew or could have known with the exercise of reasonable 
108.17 	diligence.
108.18 	(g) "Business entity" means a person other than an individual or a sole proprietor as that 
108.19 	term is defined in paragraph (a), except the term does not include an individual.
108.20 	(h) "Independent contractor" means a business entity that meets all the requirements 
108.21 	under subdivision 4, paragraph (a).
108.22 		Subd. 2.Limited application. This section only applies to individuals persons providing 
108.23 	or performing public or private sector commercial or residential building construction or 
108.24 	improvement services. Building construction andor improvement services do not include
108.25 	all public or private sector commercial or residential building construction or improvement 
108.26 	services except for: (1) the manufacture, supply, or sale of products, materials, or 
108.27 	merchandise; (2) landscaping services for the maintenance or removal of existing plants, 
108.28 	shrubs, trees, and other vegetation, whether or not the services are provided as part of a 
108.29 	contract for the building construction or improvement services; and (3) all other landscaping 
108.30 	services, unless the other landscaping services are provided as part of a contract for the 
108.31 	building construction or improvement services.
109.1 		Subd. 3.Employee-employer relationship. Except as provided in subdivision 4, for 
109.2 	purposes of chapters 176, 177, 181, 181A, 182, and 268, as of January 1, 2009 and 326B, 
109.3 	an individual who provides or performs building construction or improvement services for 
109.4 	a person that are in the course of the person's trade, business, profession, or occupation is 
109.5 	an employee of that person and that person is an employer of the individual.
109.6 		Subd. 4.Independent contractor. (a) An individual is an independent contractor and 
109.7 	not an employee of the person for whom the individual is providing or performing services 
109.8 	in the course of the person's trade, business, profession, or occupation only if the individual
109.9 	is operating as a business entity that meets all of the following requirements at the time the 
109.10 	services were provided or performed:
109.11 	(1) maintains a separate business with the individual's own office, equipment, materials, 
109.12 	and other facilities;
109.13 	(2)(i) holds or has applied for a federal employer identification number or (ii) has filed 
109.14 	business or self-employment income tax returns with the federal Internal Revenue Service 
109.15 	if the individual has performed services in the previous year;
109.16 	(3) is operating under contract to perform the specific services for the person for specific 
109.17 	amounts of money and under which the individual controls the means of performing the 
109.18 	services;
109.19 	(4) is incurring the main expenses related to the services that the individual is performing 
109.20 	for the person under the contract;
109.21 	(5) is responsible for the satisfactory completion of the services that the individual has 
109.22 	contracted to perform for the person and is liable for a failure to complete the services;
109.23 	(6) receives compensation from the person for the services performed under the contract 
109.24 	on a commission or per-job or competitive bid basis and not on any other basis;
109.25 	(7) may realize a profit or suffer a loss under the contract to perform services for the 
109.26 	person;
109.27 	(8) has continuing or recurring business liabilities or obligations; and
109.28 	(9) the success or failure of the individual's business depends on the relationship of 
109.29 	business receipts to expenditures.
109.30 	An individual who is not registered, if required by section 326B.701, is presumed to be 
109.31 	an employee of a person for whom the individual performs services in the course of the 
109.32 	person's trade, business, profession, or occupation. The person for whom the services were 
110.1 	performed may rebut this presumption by showing that the unregistered individual met all 
110.2 	nine factors in this paragraph at the time the services were performed.
110.3 	(b) If an individual is an owner or partial owner of a business entity, the individual is 
110.4 	an employee of the person for whom the individual is performing services in the course of 
110.5 	the person's trade, business, profession, or occupation, and is not an employee of the business 
110.6 	entity in which the individual has an ownership interest, unless:
110.7 	(1) the business entity meets the nine factors in paragraph (a);
110.8 	(2) invoices and payments are in the name of the business entity; and
110.9 	(3) the business entity is registered with the secretary of state, if required.
110.10 	If the business entity in which the individual has an ownership interest is not registered, 
110.11 	if required by section 326B.701, the individual is presumed to be an employee of a person 
110.12 	for whom the individual performs services and not an employee of the business entity in 
110.13 	which the individual has an ownership interest. The person for whom the services were 
110.14 	performed may rebut the presumption by showing that the business entity met the 
110.15 	requirements of clauses (1) to (3) at the time the services were performed.
110.16 	(1) was established and maintained separately from and independently of the person for 
110.17 	whom the services were provided or performed;
110.18 	(2) owns, rents, or leases equipment, tools, vehicles, materials, supplies, office space, 
110.19 	or other facilities that are used by the business entity to provide or perform building 
110.20 	construction or improvement services;
110.21 	(3) provides or performs, or offers to provide or perform, the same or similar building 
110.22 	construction or improvement services for multiple persons or the general public;
110.23 	(4) is in compliance with all of the following:
110.24 	(i) holds a federal employer identification number if required by federal law;
110.25 	(ii) holds a Minnesota tax identification number if required by Minnesota law;
110.26 	(iii) has received and retained 1099 forms for income received for building construction 
110.27 	or improvement services provided or performed, if required by Minnesota or federal law;
110.28 	(iv) has filed business or self-employment income tax returns, including estimated tax 
110.29 	filings, with the federal Internal Revenue Service and the Department of Revenue, as the 
110.30 	business entity or as a self-employed individual reporting income earned, for providing or 
110.31 	performing building construction or improvement services, if any, in the previous 12 months; 
110.32 	and
111.1 	(v) has completed and provided a W-9 federal income tax form to the person for whom 
111.2 	the services were provided or performed if required by federal law;
111.3 	(5) is in good standing as defined by section 5.26 and, if applicable, has a current 
111.4 	certificate of good standing issued by the secretary of state pursuant to section 5.12;
111.5 	(6) has a Minnesota unemployment insurance account if required by chapter 268;
111.6 	(7) has obtained required workers' compensation insurance coverage if required by 
111.7 	chapter 176;
111.8 	(8) holds current business licenses, registrations, and certifications if required by chapter 
111.9 	326B and sections 327.31 to 327.36;
111.10 	(9) is operating under a written contract to provide or perform the specific services for 
111.11 	the person that:
111.12 	(i) is signed and dated by both an authorized representative of the business entity and 
111.13 	of the person for whom the services are being provided or performed;
111.14 	(ii) is fully executed no later than 30 days after the date work commences;
111.15 	(iii) identifies the specific services to be provided or performed under the contract;
111.16 	(iv) provides for compensation from the person for the services provided or performed 
111.17 	under the contract on a commission or per-job or competitive bid basis and not on any other 
111.18 	basis; and
111.19 	(v) the requirements of item (ii) shall not apply to change orders;
111.20 	(10) submits invoices and receives payments for completion of the specific services 
111.21 	provided or performed under the written proposal, contract, or change order in the name of 
111.22 	the business entity. Payments made in cash do not meet this requirement;
111.23 	(11) the terms of the written proposal, contract, or change order provide the business 
111.24 	entity control over the means of providing or performing the specific services, and the 
111.25 	business entity in fact controls the provision or performance of the specific services;
111.26 	(12) incurs the main expenses and costs related to providing or performing the specific 
111.27 	services under the written proposal, contract, or change order;
111.28 	(13) is responsible for the completion of the specific services to be provided or performed 
111.29 	under the written proposal, contract, or change order and is responsible, as provided under 
111.30 	the written proposal, contract, or change order, for failure to complete the specific services; 
111.31 	and
112.1 	(14) may realize additional profit or suffer a loss, if costs and expenses to provide or 
112.2 	perform the specific services under the written proposal, contract, or change order are less 
112.3 	than or greater than the compensation provided under the written proposal, contract, or 
112.4 	change order.
112.5 	(b)(1) Any individual providing or performing the services as or for a business entity is 
112.6 	an employee of the person who engaged the business entity and is not an employee of the 
112.7 	business entity, unless the business entity meets all of the requirements under subdivision 
112.8 	4, paragraph (a).
112.9 	(2) Any individual who is determined to be the person's employee is acting as an agent 
112.10 	of and in the interest of the person when engaging any other individual or business entity 
112.11 	to provide or perform any portion of the services that the business entity was engaged by 
112.12 	the person to provide or perform.
112.13 	(3) Any individual engaged by an employee of the person, at any tier under the person, 
112.14 	is also the person's employee, unless the individual is providing or performing the services 
112.15 	as or for a business entity that meets the requirements of subdivision 4, paragraph (a).
112.16 	(4) Clauses (1) to (3) do not create an employee-employer relationship between a person 
112.17 	and an employee at any tier under the person if there is an intervening business entity in the 
112.18 	contractual chain that meets the requirements of subdivision 4, paragraph (a).
112.19 		Subd. 7.Prohibited activities related to independent contractor status. (a) The 
112.20 	prohibited activities in this subdivision paragraphs (b) and (c) are in addition to those the 
112.21 	activities prohibited in sections 326B.081 to 326B.085.
112.22 	(b) An individual providing or performing building construction or improvement services 
112.23 	shall not hold himself or herself out represent themselves as an independent contractor 
112.24 	unless the individual is operating as a business entity that meets all the requirements of 
112.25 	subdivision 4, paragraph (a).
112.26 	(c) A person who provides or performs building construction or improvement services 
112.27 	in the course of the person's trade, business, occupation, or profession shall not:
112.28 	(1) as a condition of payment for services provided or performed, require an individual 
112.29 	through coercion, misrepresentation, or fraudulent means, who is an employee pursuant to 
112.30 	this section, to register as a construction contractor under section 326B.701, or to adopt or 
112.31 	agree to being classified, represented, or treated as an independent contractor status or form 
112.32 	a business entity. Each instance of conditioning payment to an individual who is an employee 
112.33 	on one of these conditions shall constitute a separate violation of this provision;
113.1 	(2) knowingly misrepresent or misclassify an individual as an independent contractor.
113.2 	fail to classify, represent, or treat an individual who is an employee pursuant to this section 
113.3 	as an employee in accordance with the requirements of any of the chapters listed in 
113.4 	subdivision 3. Failure to classify, represent, or treat an individual who is an employee 
113.5 	pursuant to this section as an employee in accordance with each requirement of a chapter 
113.6 	listed in subdivision 3 shall constitute a separate violation of this provision;
113.7 	(3) fail to report or disclose to any person or to any local, state, or federal government 
113.8 	agency an individual who is an employee pursuant to subdivision 3, as an employee when 
113.9 	required to do so under any applicable local, state, or federal law. Each failure to report or 
113.10 	disclose an individual as an employee shall constitute a separate violation of this provision;
113.11 	(4) require or request an individual who is an employee pursuant to this section to enter 
113.12 	into any agreement or complete any document that misclassifies, misrepresents, or treats 
113.13 	the individual as an independent contractor or otherwise does not reflect that the individual 
113.14 	is an employee pursuant to this section. Each agreement or completed document shall 
113.15 	constitute a separate violation of this provision; or
113.16 	(5) require an individual who is an employee under this section to register under section 
113.17 	326B.701.
113.18 	(d) In addition to the person providing or performing building construction or 
113.19 	improvement services in the course of the person's trade, business, occupation, or profession, 
113.20 	any owner, partner, principal, member, officer, or agent who engaged in any of the prohibited 
113.21 	activities in this subdivision may be held individually liable.
113.22 	(e) An order issued by the commissioner to a person for engaging in any of the prohibited 
113.23 	activities in this subdivision is in effect against any successor person. A person is a successor 
113.24 	person if the person shares three or more of the following with the person to whom the order 
113.25 	was issued:
113.26 	(1) has one or more of the same owners, members, principals, officers, or managers;
113.27 	(2) performs similar work within the state of Minnesota;
113.28 	(3) has one or more of the same telephone or fax numbers;
113.29 	(4) has one or more of the same email addresses or websites;
113.30 	(5) employs or engages substantially the same individuals to provide or perform building 
113.31 	construction or improvement services;
113.32 	(6) utilizes substantially the same vehicles, facilities, or equipment; or
114.1 	(7) lists or advertises substantially the same project experience and portfolio of work.
114.2 	(f) If a person who has engaged an individual to provide or perform building construction 
114.3 	or improvement services that are in the course of the person's trade, business, profession, 
114.4 	or occupation, classifies, represents, treats, reports, or discloses the individual as an 
114.5 	independent contractor, the person shall maintain, for at least three years, and in a manner 
114.6 	that may be readily produced to the commissioner upon demand, all the information and 
114.7 	documentation upon which the person based the determination that the individual met all 
114.8 	the requirements under subdivision 4, paragraph (a), at the time the individual was engaged 
114.9 	and at the time the services were provided or performed.
114.10 	(g) The following damages and penalties may be imposed for a violation of this section:
114.11 	(1) compensatory damages to the individual the person failed to classify, represent, or 
114.12 	treat as an employee pursuant to this section. Compensatory damages include but are not 
114.13 	limited to the value of supplemental pay including minimum wage; overtime; shift 
114.14 	differentials; vacation pay; sick pay; and other forms of paid time off; health insurance; life 
114.15 	and disability insurance; retirement plans; saving plans and any other form of benefit; 
114.16 	employer contributions to unemployment insurance; Social Security and Medicare and any 
114.17 	costs and expenses incurred by the individual resulting from the person's failure to classify, 
114.18 	represent, or treat the individual as an employee;
114.19 	(2) a penalty of up to $10,000 for each individual the person failed to classify, represent, 
114.20 	or treat as an employee pursuant to this section;
114.21 	(3) a penalty of up to $10,000 for each violation of this subdivision; and
114.22 	(4) a penalty of $1,000 for any person who delays, obstructs, or otherwise fails to 
114.23 	cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure 
114.24 	to cooperate constitutes a separate violation.
114.25 	(h) This section may be investigated and enforced under the commissioner's authority 
114.26 	under state law.
114.27 		Subd. 13.Rulemaking. The commissioner may, in consultation with the commissioner 
114.28 	of revenue and the commissioner of employment and economic development, adopt, amend, 
114.29 	suspend, and repeal rules under the rulemaking provisions of chapter 14 that relate to the 
114.30 	commissioner's responsibilities under this section. This subdivision is effective May 26, 
114.31 	2007.
114.32 		Subd. 15.Notice and review by commissioners of revenue and employment and 
114.33 	economic development. When the commissioner has reason to believe that a person has 
115.1 	violated subdivision 7, paragraph (b); or (c), clause (1) or (2), the commissioner must notify 
115.2 	the commissioner of revenue and the commissioner of employment and economic 
115.3 	development. Upon receipt of notification from the commissioner, the commissioner of 
115.4 	revenue must review the information returns required under section 6041A of the Internal 
115.5 	Revenue Code. The commissioner of revenue shall also review the submitted certification 
115.6 	that is applicable to returns audited or investigated under section 289A.35.

115.7 	EFFECTIVE DATE. This section is effective August 1, 2024, except that the 
115.8 	amendments to subdivision 4 are effective for contracts entered into on or after that date 
115.9 	and for all building construction or improvement services provided or performed on or after 
115.10 	January 1, 2025.

115.11 	Sec. 9. [181.724] INTERGOVERNMENTAL MISCLASSIFICATION 
115.12 	ENFORCEMENT AND EDUCATION PARTNERSHIP ACT.
115.13 		Subdivision 1.Citation. This section and section 181.725 may be cited as the 
115.14 	"Intergovernmental Misclassification Enforcement and Education Partnership Act."
115.15 		Subd. 2.Policy and statement of purpose. It is the policy of the state of Minnesota to 
115.16 	prevent employers from misclassifying workers, because employee misclassification allows 
115.17 	an employer to illegally evade obligations under state labor, employment, and tax laws, 
115.18 	including but not limited to the laws governing minimum wage, overtime, unemployment 
115.19 	insurance, paid family medical leave, earned sick and safe time, workers' compensation 
115.20 	insurance, temporary disability insurance, the payment of wages, and payroll taxes.
115.21 		Subd. 3.Definitions. (a) For the purposes of this section and section 181.725, the 
115.22 	following terms have the meanings given, unless the language or context clearly indicates 
115.23 	that a different meaning is intended.
115.24 	(b) "Partnership entity" means one of the following governmental entities with jurisdiction 
115.25 	over employee misclassification in Minnesota:
115.26 	(1) the Department of Labor and Industry;
115.27 	(2) the Department of Revenue;
115.28 	(3) the Department of Employment and Economic Development;
115.29 	(4) the Department of Commerce; and
115.30 	(5) the attorney general in the attorney general's enforcement capacity under sections 
115.31 	177.45 and 181.1721.
116.1 	(c) "Employee misclassification" means the practice by an employer of not properly 
116.2 	classifying workers as employees.
116.3 		Subd. 4.Coordination, collaboration, and information sharing. For purposes of this 
116.4 	section, a partnership entity:
116.5 	(1) shall communicate with other entities to help detect and investigate instances of 
116.6 	employee misclassification;
116.7 	(2) may request from, provide to, or receive from the other partnership entities data 
116.8 	necessary for the purpose of detecting and investigating employee misclassification, unless 
116.9 	prohibited by federal law; and
116.10 	(3) may collaborate with one another when investigating employee misclassification, 
116.11 	unless prohibited by federal law. Collaboration includes but is not limited to referrals, 
116.12 	strategic enforcement, and joint investigations by two or more partnership entities.

116.13 	Sec. 10. [181.725] INTERGOVERNMENTAL MISCLASSIFICATION 
116.14 	ENFORCEMENT AND EDUCATION PARTNERSHIP.
116.15 		Subdivision 1.Composition. The Intergovernmental Misclassification Enforcement and 
116.16 	Education Partnership is composed of the following members or their designees, who shall 
116.17 	serve on behalf of their respective partnership entities:
116.18 	(1) the commissioner of labor and industry;
116.19 	(2) the commissioner of revenue;
116.20 	(3) the commissioner of employment and economic development;
116.21 	(4) the commissioner of commerce; and
116.22 	(5) the attorney general.
116.23 		Subd. 2.Meetings. The commissioner of labor and industry, in consultation with other 
116.24 	members of the partnership, shall convene and lead meetings of the partnership to discuss 
116.25 	issues related to the investigation of employee misclassification and public outreach. 
116.26 	Members of the partnership may select a designee to attend any such meeting. Meetings 
116.27 	must occur at least quarterly.
116.28 		Subd. 2a.Additional meetings. (a) In addition to regular quarterly meetings under 
116.29 	subdivision 2, the commissioner of labor and industry, in consultation with members of the 
116.30 	partnership, may convene and lead additional meetings for the purpose of discussing and 
116.31 	making recommendations under subdivision 4a.
117.1 	(b) This subdivision expires July 31, 2025, unless a different expiration date is specified 
117.2 	in law.
117.3 		Subd. 3.Roles. Each partnership entity may use the information received through its 
117.4 	participation in the partnership to investigate employee misclassification within their relevant 
117.5 	jurisdictions as follows:
117.6 	(1) the Department of Labor and Industry in its enforcement authority under chapters 
117.7 	176, 177, and 181;
117.8 	(2) the Department of Revenue in its enforcement authority under chapters 289A and 
117.9 	290;
117.10 	(3) the Department of Employment and Economic Development in its enforcement 
117.11 	authority under chapters 268 and 268B;
117.12 	(4) the Department of Commerce in its enforcement authority under chapters 45, 60A, 
117.13 	60K, 79, and 79A; and
117.14 	(5) the attorney general in the attorney general's enforcement authority under sections 
117.15 	177.45 and 181.1721.
117.16 		Subd. 4.Annual presentation to the legislature. At the request of the chairs, the 
117.17 	Intergovernmental Misclassification Enforcement and Education Partnership shall present 
117.18 	annually to members of the house of representatives and senate committees with jurisdiction 
117.19 	over labor. The presentation shall include information about how the partnership carried 
117.20 	out its duties during the preceding calendar year.
117.21 		Subd. 4a.First presentation. (a) By March 1, 2025, the Intergovernmental 
117.22 	Misclassification Enforcement and Education Partnership shall make its first presentation 
117.23 	to members of the house of representatives and senate committees with jurisdiction over 
117.24 	labor. The first presentation may be made in a form and manner determined by the 
117.25 	partnership. In addition to providing information about how the partnership carried out its 
117.26 	duties in its first year, the presentation shall include the following information and 
117.27 	recommendations, including any budget requests to carry out the recommendations:
117.28 	(1) consider any staffing recommendations for the partnership and each partnership 
117.29 	entity to carry out the duties and responsibilities under this section;
117.30 	(2) provide a summary of the industries, areas, and employers with high numbers of 
117.31 	misclassification violations and recommendations for proactive review and enforcement 
117.32 	efforts;
118.1 	(3) propose a system for making cross referrals between partnership entities;
118.2 	(4) identify cross-training needs and a proposed cross-training plan; and
118.3 	(5) propose a metric or plan for monitoring and assessing:
118.4 	(i) the number and severity of employee misclassification violations; and
118.5 	(ii) the adequacy and effectiveness of the partnership's duties related to employee 
118.6 	misclassification, including but not limited to the partnership's efforts on education, outreach, 
118.7 	detection, investigation, deterrence, and enforcement of employee misclassification.
118.8 	(b) This subdivision expires July 31, 2025, unless a different expiration date is specified 
118.9 	in law.
118.10 		Subd. 5.Separation. The Intergovernmental Misclassification Enforcement and 
118.11 	Education Partnership is not a separate agency or board and is not subject to chapter 13D. 
118.12 	Data shared or created by the partnership entities under this section or section 181.724 are 
118.13 	subject to chapter 13 and hold the data classification prescribed by law.
118.14 		Subd. 6.Duties. The Intergovernmental Misclassification Enforcement and Education 
118.15 	Partnership shall:
118.16 	(1) set goals to maximize Minnesota's efforts to detect, investigate, and deter employee 
118.17 	misclassification;
118.18 	(2) share information to facilitate the detection and investigation of employee 
118.19 	misclassification;
118.20 	(3) develop a process or procedure that provides a person with relevant information and 
118.21 	connects them with relevant partnership entities, regardless of which partnership entity that 
118.22 	person contacts for assistance;
118.23 	(4) identify best practices in investigating employee misclassification;
118.24 	(5) identify resources needed for better enforcement of employee misclassification;
118.25 	(6) inform and educate stakeholders on rights and responsibilities related to employee 
118.26 	misclassification;
118.27 	(7) serve as a unified point of contact for workers, businesses, and the public impacted 
118.28 	by misclassification;
118.29 	(8) inform the public on enforcement actions taken by the partnership entities; and
118.30 	(9) perform other duties as necessary to:
119.1 	(i) increase the effectiveness of detection, investigation, enforcement, and deterrence of 
119.2 	employee misclassification; and
119.3 	(ii) carry out the purposes of the partnership.
119.4 		Subd. 7.Public outreach. (a) The commissioner of labor and industry shall maintain 
119.5 	on the department's website information about the Intergovernmental Misclassification 
119.6 	Enforcement and Education Partnership, including information about how to file a complaint 
119.7 	related to employee misclassification.
119.8 	(b) Each partnership entity shall maintain on its website information about worker 
119.9 	classification laws, including requirements for employers and employees, consequences for 
119.10 	misclassifying workers, and contact information for other partnership entities.
119.11 		Subd. 8.No limitation of other duties. This section does not limit the duties or 
119.12 	authorities of a partnership entity, or any other government entity, under state law.

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

119.14 	Sec. 11. Minnesota Statutes 2022, section 270B.14, subdivision 17, is amended to read:
119.15 		Subd. 17.Disclosure to Department of Commerce. (a) The commissioner may disclose 
119.16 	to the commissioner of commerce information required to administer the Uniform Disposition 
119.17 	of Unclaimed Property Act in sections 345.31 to 345.60, including the Social Security 
119.18 	numbers of the taxpayers whose refunds are on the report of abandoned property submitted 
119.19 	by the commissioner to the commissioner of commerce under section 345.41. Except for 
119.20 	data published under section 345.42, the information received that is private or nonpublic 
119.21 	data retains its classification, and can be used by the commissioner of commerce only for 
119.22 	the purpose of verifying that the persons claiming the refunds are the owners.
119.23 	(b) The commissioner may disclose a return or return information to the commissioner 
119.24 	of commerce under section 45.0135 to the extent necessary to investigate employer 
119.25 	compliance with section 176.181.

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

119.27 	Sec. 12. Minnesota Statutes 2022, section 270B.14, is amended by adding a subdivision 
119.28 	to read:
119.29 		Subd. 23.Disclosure to the attorney general. The commissioner may disclose a return 
119.30 	or return information to the attorney general for the purpose of determining whether a 
119.31 	business is an employer and to the extent necessary to enforce section 177.45 or 181.1721.

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

120.2 	Sec. 13. Minnesota Statutes 2022, section 326B.081, subdivision 3, is amended to read:
120.3 		Subd. 3.Applicable law. "Applicable law" means the provisions of sections 181.165, 
120.4 	181.722, 181.723, 325E.66, 327.31 to 327.36, this chapter, and chapter 341, and all rules, 
120.5 	orders, stipulation agreements, settlements, compliance agreements, licenses, registrations, 
120.6 	certificates, and permits adopted, issued, or enforced by the department under sections 
120.7 	181.165, 181.722, 181.723, 325E.66, 327.31 to 327.36, this chapter, or chapter 341.

120.8 	Sec. 14. Minnesota Statutes 2022, section 326B.081, subdivision 6, is amended to read:
120.9 		Subd. 6.Licensing order. "Licensing order" means an order issued under section 
120.10 	326B.082, subdivision 12, paragraph (a).

120.11 	Sec. 15. Minnesota Statutes 2022, section 326B.081, subdivision 8, is amended to read:
120.12 		Subd. 8.Stop work order. "Stop work order" means an order issued under section 
120.13 	326B.082, subdivision 10.

120.14 	Sec. 16. Minnesota Statutes 2022, section 326B.082, subdivision 1, is amended to read:
120.15 		Subdivision 1.Remedies available. The commissioner may enforce all applicable law 
120.16 	under this section. The commissioner may use any enforcement provision in this section, 
120.17 	including the assessment of monetary penalties, against a person required to have a license, 
120.18 	registration, certificate, or permit under the applicable law based on conduct that would 
120.19 	provide grounds for action against a licensee, registrant, certificate holder, or permit holder 
120.20 	under the applicable law. The use of an enforcement provision in this section shall not 
120.21 	preclude the use of any other enforcement provision in this section or otherwise provided 
120.22 	by law. The commissioner's investigation and enforcement authority under this section may 
120.23 	be used by the commissioner in addition to or as an alternative to any other investigation 
120.24 	and enforcement authority provided by law.

120.25 	Sec. 17. Minnesota Statutes 2022, section 326B.082, subdivision 2, is amended to read:
120.26 		Subd. 2.Access to information and property; subpoenas. (a) In order to carry out the 
120.27 	purposes of the applicable law, the commissioner may:
120.28 	(1) administer oaths and affirmations, certify official acts, interview, question, take oral 
120.29 	or written statements, demand data and information, and take depositions;
121.1 	(2) request, examine, take possession of, test, sample, measure, photograph, record, and 
121.2 	copy any documents, apparatus, devices, equipment, or materials;
121.3 	(3) at a time and place indicated by the commissioner, request persons to appear before 
121.4 	the commissioner to give testimony, provide data and information, and produce documents, 
121.5 	apparatus, devices, equipment, or materials;
121.6 	(4) issue subpoenas to compel persons to appear before the commissioner to give 
121.7 	testimony, provide data and information, and to produce documents, apparatus, devices, 
121.8 	equipment, or materials; and
121.9 	(5) with or without notice, enter without delay upon and access all areas of any property, 
121.10 	public or private, for the purpose of taking any action authorized under this subdivision or 
121.11 	the applicable law, including obtaining to request, examine, take possession of, test, sample, 
121.12 	measure, photograph, record, and copy any data, information, remedying documents, 
121.13 	apparatus, devices, equipment, or materials; to interview, question, or take oral or written 
121.14 	statements; to remedy violations,; or conducting to conduct surveys, inspections, or 
121.15 	investigations.
121.16 	(b) Persons requested by the commissioner to give testimony, provide data and 
121.17 	information, or produce documents, apparatus, devices, equipment, or materials shall respond 
121.18 	within the time and in the manner specified by the commissioner. If no time to respond is 
121.19 	specified in the request, then a response shall be submitted within 30 days of the 
121.20 	commissioner's service of the request.
121.21 	(c) Upon the refusal or anticipated refusal of a property owner, lessee, property owner's 
121.22 	representative, or lessee's representative to permit the commissioner's entry onto and access 
121.23 	to all areas of any property as provided in paragraph (a), the commissioner may apply for 
121.24 	an administrative inspection order in the Ramsey County District Court or, at the 
121.25 	commissioner's discretion, in the district court in the county in which the property is located. 
121.26 	The commissioner may anticipate that a property owner or lessee will refuse entry and 
121.27 	access to all areas of a property if the property owner, lessee, property owner's representative, 
121.28 	or lessee's representative has refused to permit entry or access to all areas of a property on 
121.29 	a prior occasion or has informed the commissioner that entry or access to areas of a property 
121.30 	will be refused. Upon showing of administrative probable cause by the commissioner, the 
121.31 	district court shall issue an administrative inspection order that compels the property owner 
121.32 	or lessee to permit the commissioner to enter and be allowed access to all areas of the 
121.33 	property for the purposes specified in paragraph (a).
122.1 	(d) Upon the application of the commissioner, a district court shall treat the failure of 
122.2 	any person to obey a subpoena lawfully issued by the commissioner under this subdivision 
122.3 	as a contempt of court.

122.4 	Sec. 18. Minnesota Statutes 2022, section 326B.082, subdivision 4, is amended to read:
122.5 		Subd. 4.Fax or email transmission. When this section or section 326B.083 permits a 
122.6 	request for reconsideration or request for hearing to be served by fax on the commissioner, 
122.7 	or when the commissioner instructs that a request for reconsideration or request for hearing 
122.8 	be served by email on the commissioner, the fax or email shall not exceed 15 printed pages 
122.9 	in length. The request shall be considered timely served if the fax or email is received by 
122.10 	the commissioner, at the fax number or email address identified by the commissioner in the 
122.11 	order or notice of violation, no later than 4:30 p.m. central time on the last day permitted 
122.12 	for faxing or emailing the request. Where the quality or authenticity of the faxed or emailed
122.13 	request is at issue, the commissioner may require the original request to be filed. Where the 
122.14 	commissioner has not identified quality or authenticity of the faxed or emailed request as 
122.15 	an issue and the request has been faxed or emailed in accordance with this subdivision, the 
122.16 	person faxing or emailing the request does not need to file the original request with the 
122.17 	commissioner.

122.18 	Sec. 19. Minnesota Statutes 2022, section 326B.082, subdivision 6, is amended to read:
122.19 		Subd. 6.Notices of violation. (a) The commissioner may issue a notice of violation to 
122.20 	any person who the commissioner determines has committed a violation of the applicable 
122.21 	law. The notice of violation must state a summary of the facts that constitute the violation 
122.22 	and the applicable law violated. The notice of violation may require the person to correct 
122.23 	the violation. If correction is required, the notice of violation must state the deadline by 
122.24 	which the violation must be corrected.
122.25 	(b) In addition to any person, a notice of violation may be issued to any individual 
122.26 	identified in section 181.723, subdivision 7, paragraph (d). A notice of violation is effective 
122.27 	against any successor person as defined in section 181.723, subdivision 7, paragraph (e).
122.28 	(b) (c) The commissioner shall issue the notice of violation by:
122.29 	(1) serving the notice of violation on the property owner or on the person who committed 
122.30 	the violation; or
122.31 	(2) posting the notice of violation at the location where the violation occurred.
123.1 	(c) (d) If the person to whom the commissioner has issued the notice of violation believes 
123.2 	the notice was issued in error, then the person may request reconsideration of the parts of 
123.3 	the notice that the person believes are in error. The request for reconsideration must be in 
123.4 	writing and must be served on, faxed, or emailed to the commissioner at the address, fax 
123.5 	number, or email address specified in the notice of violation by the tenth day after the 
123.6 	commissioner issued the notice of violation. The date on which a request for reconsideration 
123.7 	is served by mail shall be the postmark date on the envelope in which the request for 
123.8 	reconsideration is mailed. If the person does not serve, fax, or email a written request for 
123.9 	reconsideration or if the person's written request for reconsideration is not served on or 
123.10 	faxed to the commissioner by the tenth day after the commissioner issued the notice of 
123.11 	violation, the notice of violation shall become a final order of the commissioner and will 
123.12 	not be subject to review by any court or agency. The request for reconsideration must:
123.13 	(1) specify which parts of the notice of violation the person believes are in error;
123.14 	(2) explain why the person believes the parts are in error; and
123.15 	(3) provide documentation to support the request for reconsideration.
123.16 	The commissioner shall respond in writing to requests for reconsideration made under 
123.17 	this paragraph within 15 days after receiving the request. A request for reconsideration does 
123.18 	not stay a requirement to correct a violation as set forth in the notice of violation. After 
123.19 	reviewing the request for reconsideration, the commissioner may affirm, modify, or rescind 
123.20 	the notice of violation. The commissioner's response to a request for reconsideration is final 
123.21 	and shall not be reviewed by any court or agency.

123.22 	Sec. 20. Minnesota Statutes 2022, section 326B.082, subdivision 7, is amended to read:
123.23 		Subd. 7.Administrative orders; correction; assessment of monetary penalties. (a) 
123.24 	The commissioner may issue an administrative order to any person who the commissioner 
123.25 	determines has committed a violation of the applicable law. The commissioner shall issue 
123.26 	the administrative order by serving the administrative order on the person. The administrative 
123.27 	order may require the person to correct the violation, may require the person to cease and 
123.28 	desist from committing the violation, and may assess monetary damages and penalties. The 
123.29 	commissioner shall follow the procedures in section 326B.083 when issuing administrative 
123.30 	orders. Except as provided in paragraph (b), the commissioner may issue to each person a 
123.31 	monetary penalty of up to $10,000 for each violation of applicable law committed by the 
123.32 	person. The commissioner may order that part or all of the monetary penalty will be forgiven 
123.33 	if the person to whom the order is issued demonstrates to the commissioner by the 31st day 
124.1 	after the order is issued that the person has corrected the violation or has developed a 
124.2 	correction plan acceptable to the commissioner.
124.3 	(b) The commissioner may issue an administrative order for failure to correct a violation 
124.4 	by the deadline stated in a final notice of violation issued under subdivision 6 or a final 
124.5 	administrative order issued under paragraph (a). Each day after the deadline during which 
124.6 	the violation remains uncorrected is a separate violation for purposes of calculating the 
124.7 	maximum monetary penalty amount.
124.8 	(c) Upon the application of the commissioner, a district court shall find the failure of 
124.9 	any person to correct a violation as required by a final notice of violation issued under 
124.10 	subdivision 6 or a final administrative order issued by the commissioner under this 
124.11 	subdivision as a contempt of court.
124.12 	(d) In addition to any person, an administrative order may be issued to any individual 
124.13 	identified in section 181.723, subdivision 7, paragraph (d). An administrative order shall 
124.14 	be effective against any successor person as defined in section 181.723, subdivision 7, 
124.15 	paragraph (e).

124.16 	Sec. 21. Minnesota Statutes 2022, section 326B.082, subdivision 10, is amended to read:
124.17 		Subd. 10.Stop work orders. (a) If the commissioner determines based on an inspection 
124.18 	or investigation that a person has violated or is about to violate the applicable law, The 
124.19 	commissioner may issue to the person a stop work order requiring the person to cease and 
124.20 	desist from committing the violation cessation of all business operations of a person at one 
124.21 	or more of the person's workplaces and places of business or across all of the person's 
124.22 	workplaces and places of business. A stop work order may be issued to any person who the 
124.23 	commissioner has determined, based on an inspection or investigation, has violated the 
124.24 	applicable law, has engaged in any of the activities under subdivision 11, paragraph (b), or 
124.25 	section 326B.701, subdivision 5, or has failed to comply with a final notice, final 
124.26 	administrative order, or final licensing order issued by the commissioner under this section 
124.27 	or a final order to comply issued by the commissioner under section 177.27.
124.28 	(b) The stop work order is effective upon its issuance under paragraph (e). The order 
124.29 	remains in effect until the commissioner issues an order lifting the stop work order upon 
124.30 	finding that the person has come into compliance with the applicable law, has come into 
124.31 	compliance with a final order or notice of violation issued by the commissioner, has ceased 
124.32 	and desisted from engaging in any of the activities under subdivision 11, paragraph (b), or 
124.33 	section 326B.701, subdivision 5, and has paid in any remedies, damages, penalties, and 
124.34 	other monetary sanctions, including wages owed to employees under paragraph (j), to the 
125.1 	satisfaction of the commissioner, or if the commissioner or appellate court modifies or 
125.2 	vacates the order.
125.3 	(c) In addition to any person, a stop work order may be issued to any individual identified 
125.4 	in section 181.723, subdivision 7, paragraph (d). The stop work order is effective against 
125.5 	any successor person as defined in section 181.723, subdivision 7, paragraph (e).
125.6 	(b) (d) If the commissioner determines that a condition exists on real property that 
125.7 	violates the applicable law is the basis for issuing a stop work order, the commissioner may 
125.8 	also issue a stop work order to the owner or lessee of the real property to cease and desist 
125.9 	from committing the violation and to correct the condition that is in violation.
125.10 	(c) (e) The commissioner shall issue the stop work order by:
125.11 	(1) serving the order on the person who has committed or is about to commit the violation;
125.12 	(2) posting the order at the location where the violation was committed or is about to be 
125.13 	committed or at the location where the violating condition exists that is the basis for issuing 
125.14 	the stop work order; or
125.15 	(3) serving the order on any owner or lessee of the real property where the violating 
125.16 	condition exists violations or conditions exist.
125.17 	(d) (f) A stop work order shall:
125.18 	(1) describe the act, conduct, or practice committed or about to be committed, or the 
125.19 	condition, and include a reference to the applicable law that the act, conduct, practice, or 
125.20 	condition violates or would violate, the final order or final notice of violation, the provisions 
125.21 	in subdivision 11, paragraph (b); the provisions in section 326B.701, subdivision 5; or 
125.22 	liability under section 181.165, as applicable; and
125.23 	(2) provide notice that any person aggrieved by the stop work order may request a hearing 
125.24 	as provided in paragraph (e) (g).
125.25 	(e) (g) Within 30 days after the commissioner issues a stop work order, any person 
125.26 	aggrieved by the order may request an expedited hearing to review the commissioner's 
125.27 	action. The request for hearing must be made in writing and must be served on, emailed,
125.28 	or faxed to the commissioner at the address, email address, or fax number specified in the 
125.29 	order. If the person does not request a hearing or if the person's written request for hearing 
125.30 	is not served on, emailed, or faxed to the commissioner on or before the 30th day after the 
125.31 	commissioner issued the stop work order, the order will become a final order of the 
125.32 	commissioner and will not be subject to review by any court or agency. The date on which 
125.33 	a request for hearing is served by mail is the postmark date on the envelope in which the 
126.1 	request for hearing is mailed. The hearing request must specifically state the reasons for 
126.2 	seeking review of the order. The person who requested the hearing and the commissioner 
126.3 	are the parties to the expedited hearing. The hearing shall be commenced within ten days 
126.4 	after the commissioner receives the request for hearing. The hearing shall be conducted 
126.5 	under Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by this subdivision. 
126.6 	The administrative law judge shall issue a report containing findings of fact, conclusions 
126.7 	of law, and a recommended order within ten days after the completion of the hearing, the 
126.8 	receipt of late-filed exhibits, or the submission of written arguments, whichever is later. 
126.9 	Any party aggrieved by the administrative law judge's report shall have five days after the 
126.10 	date of the administrative law judge's report to submit written exceptions and argument to 
126.11 	the commissioner that the commissioner shall consider and enter in the record. Within 15 
126.12 	days after receiving the administrative law judge's report, the commissioner shall issue an 
126.13 	order vacating, modifying, or making permanent the stop work order. The commissioner 
126.14 	and the person requesting the hearing may by agreement lengthen any time periods described 
126.15 	in this paragraph. The Office of Administrative Hearings may, in consultation with the 
126.16 	agency, adopt rules specifically applicable to cases under this subdivision.
126.17 	(f) (h) A stop work order issued under this subdivision shall be is in effect until it is 
126.18 	lifted by the commissioner under paragraph (b) or is modified or vacated by the commissioner 
126.19 	or an appellate court under paragraph (b). The administrative hearing provided by this 
126.20 	subdivision and any appellate judicial review as provided in chapter 14 shall constitute the 
126.21 	exclusive remedy for any person aggrieved by a stop order.
126.22 	(i) The commissioner may assess a civil penalty of $5,000 per day against a person for 
126.23 	each day the person conducts business operations that are in violation of a stop work order 
126.24 	issued under this section.
126.25 	(j) Once a stop work order becomes final, any of the person's employees affected by a 
126.26 	stop work order issued pursuant to this subdivision shall be entitled to average daily earnings 
126.27 	from the person for up to the first ten days of work lost by the employee because of the 
126.28 	issuance of a stop work order. Lifting of a stop work order may be conditioned on payment 
126.29 	of wages to employees. The commissioner may issue an order to comply under section 
126.30 	177.27 to obtain payment from persons liable for the payment of wages owed to the 
126.31 	employees under this section.
126.32 	(g) (k) Upon the application of the commissioner, a district court shall find the failure 
126.33 	of any person to comply with a final stop work order lawfully issued by the commissioner 
126.34 	under this subdivision as a contempt of court.
127.1 	(l) Notwithstanding section 13.39, the data in a stop work order issued under this 
127.2 	subdivision are classified as public data after the commissioner has issued the order.

127.3 	EFFECTIVE DATE. This section is effective August 1, 2024, for contracts entered 
127.4 	into on or after that date and for all building and construction or improvement services 
127.5 	provided or performed on or after January 1, 2025.

127.6 	Sec. 22. Minnesota Statutes 2022, section 326B.082, subdivision 11, is amended to read:
127.7 		Subd. 11.Licensing orders; grounds; reapplication. (a) The commissioner may deny 
127.8 	an application for a permit, license, registration, or certificate if the applicant does not meet 
127.9 	or fails to maintain the minimum qualifications for holding the permit, license, registration, 
127.10 	or certificate, or has any unresolved violations or, unpaid fees, or monetary damages or 
127.11 	penalties related to the activity for which the permit, license, registration, or certificate has 
127.12 	been applied for or was issued.
127.13 	(b) The commissioner may deny, suspend, limit, place conditions on, or revoke a person's 
127.14 	permit, license, registration, or certificate, or censure the person holding or acting as 
127.15 	qualifying person for the permit, license, registration, or certificate, if the commissioner 
127.16 	finds that the person:
127.17 	(1) committed one or more violations of the applicable law;
127.18 	(2) committed one or more violations of chapter 176, 177, 181, 181A, 182, 268, 270C, 
127.19 	or 363A;
127.20 	(2) (3) submitted false or misleading information to the any state agency in connection 
127.21 	with activities for which the permit, license, registration, or certificate was issued, or in 
127.22 	connection with the application for the permit, license, registration, or certificate;
127.23 	(3) (4) allowed the alteration or use of the person's own permit, license, registration, or 
127.24 	certificate by another person;
127.25 	(4) (5) within the previous five years, was convicted of a crime in connection with 
127.26 	activities for which the permit, license, registration, or certificate was issued;
127.27 	(5) (6) violated: (i) a final administrative order issued under subdivision 7, (ii) a final 
127.28 	stop work order issued under subdivision 10, (iii) injunctive relief issued under subdivision 
127.29 	9, or (iv) a consent order, order to comply, or other final order of issued by the commissioner
127.30 	or the commissioner of human rights, employment and economic development, or revenue;
127.31 	(6) (7) delayed, obstructed, or otherwise failed to cooperate with a commissioner's 
127.32 	investigation, including a request to give testimony, to provide data and information, to 
128.1 	produce documents, things, apparatus, devices, equipment, or materials, or to enter and 
128.2 	access all areas of any property under subdivision 2;
128.3 	(7) (8) retaliated in any manner against any employee or person who makes a complaint, 
128.4 	is questioned by, cooperates with, or provides information to the commissioner or an 
128.5 	employee or agent authorized by the commissioner who seeks access to property or things 
128.6 	under subdivision 2;
128.7 	(8) (9) engaged in any fraudulent, deceptive, or dishonest act or practice; or
128.8 	(9) (10) performed work in connection with the permit, license, registration, or certificate 
128.9 	or conducted the person's affairs in a manner that demonstrates incompetence, 
128.10 	untrustworthiness, or financial irresponsibility.
128.11 	(c) In addition to any person, a licensing order may be issued to any individual identified 
128.12 	in section 181.723, subdivision 7, paragraph (d). A licensing order is effective against any 
128.13 	successor person as defined in section 181.723, subdivision 7, paragraph (e).
128.14 	(c) (d) If the commissioner revokes or denies a person's permit, license, registration, or 
128.15 	certificate under paragraph (b), the person is prohibited from reapplying for the same type 
128.16 	of permit, license, registration, or certificate for at least two years after the effective date 
128.17 	of the revocation or denial. The commissioner may, as a condition of reapplication, require 
128.18 	the person to obtain a bond or comply with additional reasonable conditions the commissioner 
128.19 	considers necessary to protect the public, including but not limited to demonstration of 
128.20 	current and ongoing compliance with the laws the violation of which were the basis for 
128.21 	revoking or denying the person's permit, license, registration, or certificate under paragraph 
128.22 	(b) or that the person has ceased and desisted in engaging in activities under paragraph (b) 
128.23 	that were the basis for revoking or denying the person's permit, license, registration, or 
128.24 	certificate under paragraph (b).
128.25 	(d) (e) If a permit, license, registration, or certificate expires, or is surrendered, withdrawn, 
128.26 	or terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding 
128.27 	under this subdivision within two years after the permit, license, registration, or certificate 
128.28 	was last effective and enter a revocation or suspension order as of the last date on which 
128.29 	the permit, license, registration, or certificate was in effect.

128.30 	Sec. 23. Minnesota Statutes 2022, section 326B.082, subdivision 13, is amended to read:
128.31 		Subd. 13.Summary suspension. In any case where the commissioner has issued an 
128.32 	order to revoke, suspend, or deny a license, registration, certificate, or permit under 
128.33 	subdivisions 11, paragraph (b), and 12, the commissioner may summarily suspend the 
129.1 	person's permit, license, registration, or certificate before the order becomes final. The 
129.2 	commissioner shall issue a summary suspension order when the safety of life or property 
129.3 	is threatened or to prevent the commission of fraudulent, deceptive, untrustworthy, or 
129.4 	dishonest acts against the public, including but not limited to violations of section 181.723, 
129.5 	subdivision 7. The summary suspension shall not affect the deadline for submitting a request 
129.6 	for hearing under subdivision 12. If the commissioner summarily suspends a person's permit, 
129.7 	license, registration, or certificate, a timely request for hearing submitted under subdivision 
129.8 	12 shall also be considered a timely request for hearing on continuation of the summary 
129.9 	suspension. If the commissioner summarily suspends a person's permit, license, registration, 
129.10 	or certificate under this subdivision and the person submits a timely request for a hearing, 
129.11 	then a hearing on continuation of the summary suspension must be held within ten days 
129.12 	after the commissioner receives the request for hearing unless the parties agree to a later 
129.13 	date.

129.14 	Sec. 24. Minnesota Statutes 2022, section 326B.082, is amended by adding a subdivision 
129.15 	to read:
129.16 		Subd. 16a.Additional penalties and damages. Any person who delays, obstructs, or 
129.17 	otherwise fails to cooperate with the commissioner's investigation may be issued a penalty 
129.18 	of $1,000. Each day of delay, obstruction, or failure to cooperate shall constitute a separate 
129.19 	violation.

129.20 	Sec. 25. Minnesota Statutes 2022, section 326B.701, is amended to read:
129.21 	326B.701 CONSTRUCTION CONTRACTOR REGISTRATION.
129.22 		Subdivision 1.Definitions. The following definitions apply to this section:
129.23 	(a) "Building construction or improvement services" means public or private sector 
129.24 	commercial or residential building construction or improvement services.
129.25 	(a) (b) "Business entity" means a person other than an individual or a sole proprietor as 
129.26 	that term is defined in paragraph (h), except the term does not include an individual.
129.27 	(c) "Commissioner" means the commissioner of labor and industry or a duly designated 
129.28 	representative of the commissioner who is either an employee of the Department of Labor 
129.29 	and Industry or person working under contract with the Department of Labor and Industry.
129.30 	(d) "Day" means calendar day unless otherwise provided.
129.31 	(e) "Department" means the Department of Labor and Industry.
130.1 	(b) (f) "Document" or "documents" includes papers; books; records; memoranda; data; 
130.2 	contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; 
130.3 	records; accounts; files; statements; letters; emails; invoices; bills; notes; and calendars 
130.4 	maintained in any form or manner.
130.5 	(g) "Individual" means a human being.
130.6 	(h) "Person" means any individual, sole proprietor, limited liability company, limited 
130.7 	liability partnership, corporation, partnership, incorporated or unincorporated association, 
130.8 	joint stock company, or any other legal or commercial entity.
130.9 		Subd. 2.Applicability; registration requirement. (a) Persons who perform public or 
130.10 	private sector commercial or residential building construction or improvement services as 
130.11 	described in subdivision 2 must register with the commissioner as provided in this section. 
130.12 	The purpose of registration is to assist the Department of Labor and Industry, the Department 
130.13 	of Employment and Economic Development, and the Department of Revenue to enforce 
130.14 	laws related to misclassification of employees.
130.15 	(b) (a) Except as provided in paragraph (c) (b), any person who provides or performs 
130.16 	building construction or improvement services in the state on or after September 15, 2012,
130.17 	of Minnesota must register with the commissioner as provided in this section before providing 
130.18 	or performing building construction or improvement services for another person. The 
130.19 	requirements for registration under this section are not a substitute for, and do not relieve 
130.20 	a person from complying with, any other law requiring that the person be licensed, registered, 
130.21 	or certified.
130.22 	(c) (b) The registration requirements in this section do not apply to:
130.23 	(1) a person who, at the time the person is providing or performing the building
130.24 	construction or improvement services, holds a current license, certificate, or registration 
130.25 	under chapter 299M or 326B;
130.26 	(2) a person who holds a current independent contractor exemption certificate issued 
130.27 	under this section that is in effect on September 15, 2012, except that the person must register 
130.28 	under this section no later than the date the exemption certificate expires, is revoked, or is 
130.29 	canceled;
130.30 	(3) (2) a person who has given a bond to the state under section 326B.197 or 326B.46;
130.31 	(4) (3) an employee of the person providing or performing the building construction or 
130.32 	improvement services, if the person was in compliance with laws related to employment of 
130.33 	the individual at the time the construction services were performed;
131.1 	(5) (4) an architect or professional engineer engaging in professional practice as defined 
131.2 	in section 326.02, subdivisions 2 and 3;
131.3 	(6) (5) a school district or technical college governed under chapter 136F;
131.4 	(7) (6) a person providing or performing building construction or improvement services 
131.5 	on a volunteer basis, including but not limited to Habitat for Humanity and Builders Outreach 
131.6 	Foundation, and their individual volunteers when engaged in activities on their behalf; or
131.7 	(8) (7) a person exempt from licensing under section 326B.805, subdivision 6, clause 
131.8 	(5) (4).
131.9 		Subd. 3.Registration application. (a) Persons required to register under this section 
131.10 	must submit electronically, in the manner prescribed by the commissioner, a complete 
131.11 	application according to paragraphs (b) to (d) this subdivision.
131.12 	(b) A complete application must include all of the following information and 
131.13 	documentation about any individual who is registering as an individual or a sole proprietor, 
131.14 	or who owns 25 percent or more of a business entity being registered the person who is 
131.15 	applying for a registration:
131.16 	(1) the individual's full person's legal name and title at the applicant's business;
131.17 	(2) the person's assumed names filed with the secretary of state, if applicable;
131.18 	(2) (3) the individual's business address and person's telephone number;
131.19 	(3) the percentage of the applicant's business owned by the individual; and
131.20 	(4) the individual's Social Security number.
131.21 	(c) A complete application must also include the following information:
131.22 	(1) the applicant's legal name; assumed name filed with the secretary of state, if any; 
131.23 	designated business address; physical address; telephone number; and email address;
131.24 	(2) the applicant's Minnesota tax identification number, if one is required or has been 
131.25 	issued;
131.26 	(3) the applicant's federal employer identification number, if one is required or has been 
131.27 	issued;
131.28 	(4) evidence of the active status of the applicant's business filings with the secretary of 
131.29 	state, if one is required or has been issued;
131.30 	(5) whether the applicant has any employees at the time the application is filed;
132.1 	(6) the names of all other persons with an ownership interest in the business entity who 
132.2 	are not identified in paragraph (b), and the percentage of the interest owned by each person, 
132.3 	except that the names of shareholders with less than ten percent ownership in a publicly 
132.4 	traded corporation need not be provided;
132.5 	(7) information documenting compliance with workers' compensation and unemployment 
132.6 	insurance laws;
132.7 	(4) the person's email address;
132.8 	(5) the person's business address;
132.9 	(6) the person's physical address, if different from the business address;
132.10 	(7) the legal name, telephone number, and email address of the person's registered agent, 
132.11 	if applicable, and the registered agent's business address and physical address, if different 
132.12 	from the business address;
132.13 	(8) the jurisdiction in which the person is organized, if that jurisdiction is not in 
132.14 	Minnesota, as applicable;
132.15 	(9) the legal name of the person in the jurisdiction in which it is organized, if the legal 
132.16 	name is different than the legal name provided in clause (1), as applicable;
132.17 	(10) all of the following identification numbers, if all of these identification numbers 
132.18 	have been issued to the person. A complete application must include at least one of the 
132.19 	following identification numbers:
132.20 	(i) the person's Social Security number;
132.21 	(ii) the person's Minnesota tax identification number; or
132.22 	(iii) the person's federal employer identification number;
132.23 	(11) evidence of the active status of the person's business filings with the secretary of 
132.24 	state, if applicable;
132.25 	(12) whether the person has any employees at the time the application is filed, and if so, 
132.26 	how many employees the person employs;
132.27 	(13) the legal names of all persons with an ownership interest in the business entity, if 
132.28 	applicable, and the percentage of the interest owned by each person, except that the names 
132.29 	of shareholders with less than ten percent ownership in a publicly traded corporation need 
132.30 	not be provided;
133.1 	(14) information documenting the person's compliance with workers' compensation and 
133.2 	unemployment insurance laws for the person's employees, if applicable;
133.3 	(15) whether the person or any persons with an ownership interest in the business entity 
133.4 	as disclosed under clause (13) have been issued a notice of violation, administrative order, 
133.5 	licensing order, or order to comply by the Department of Labor and Industry in the last ten 
133.6 	years;
133.7 	(8) (16) a certification that the person individual signing the application has: reviewed 
133.8 	it; determined asserts that the information and documentation provided is true and accurate; 
133.9 	and determined that the person signing individual is authorized to sign and file the application 
133.10 	as an agent or authorized representative of the applicant person. The name of the person
133.11 	individual signing, entered on an electronic application, shall constitute a valid signature 
133.12 	of the agent or authorized representative on behalf of the applicant person; and
133.13 	(9) (17) a signed authorization for the Department of Labor and Industry to verify the 
133.14 	information and documentation provided on or with the application.
133.15 	(d) (c) A registered person must notify the commissioner within 15 days after there is a 
133.16 	change in any of the information on the application as approved. This notification must be 
133.17 	provided electronically in the manner prescribed by the commissioner. However, if the 
133.18 	business entity structure or legal form of the business entity has changed, the person must 
133.19 	submit a new registration application and registration fee, if any, for the new business entity.
133.20 	(e) The registered (d) A person must remain registered maintain a current and up-to-date 
133.21 	registration while providing or performing building construction or improvement services 
133.22 	for another person. The provisions of sections 326B.091, 326B.094, 326B.095, and 326B.097
133.23 	apply to this section. A person with an expired registration shall not provide construction 
133.24 	services for another person if registration is required under this section. Registration 
133.25 	application and expiration time frames are as follows:
133.26 	(1) all registrations issued on or before December 31, 2015, expire on December 31, 
133.27 	2015;
133.28 	(2) (1) all registrations issued after December 31, 2015, expire on the following December 
133.29 	31 of each odd-numbered year; and
133.30 	(3) (2) a person may submit a registration or renewal application starting October 1 of 
133.31 	the year the registration expires. If a renewal application is submitted later than December 
133.32 	1 of the expiration year, the registration may expire before the department has issued or 
133.33 	denied the registration renewal.
134.1 		Subd. 4.Website. (a) The commissioner shall develop and maintain a website on which 
134.2 	applicants for registration persons can submit a registration or renewal application. The 
134.3 	website shall be designed to receive and process registration applications and promptly 
134.4 	issue registration certificates electronically to successful applicants.
134.5 	(b) The commissioner shall maintain the certificates of registration on the department's 
134.6 	official public website, which shall include the following information on the department's 
134.7 	official public website:
134.8 	(1) the registered person's legal business name, including any assumed name, as filed 
134.9 	with the secretary of state;
134.10 	(2) the legal names of the persons with an ownership interest in the business entity;
134.11 	(2) (3) the registered person's business address designated and physical address, if 
134.12 	different from the business address, provided on the application; and
134.13 	(3) (4) the effective date of the registration and the expiration date.
134.14 		Subd. 5.Prohibited activities related to registration. (a) The prohibited activities in 
134.15 	this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085 section 
134.16 	326B.082, subdivision 11.
134.17 	(b) A person who provides or performs building construction or improvement services 
134.18 	in the course of the person's trade, business, occupation, or profession shall not:
134.19 	(1) contract with provide or perform building construction or improvement services for 
134.20 	another person without first being registered, if required by to be registered under this 
134.21 	section;
134.22 	(2) require an individual who is the person's employee to register; or
134.23 	(2) contract with or pay (3) engage another person to provide or perform building 
134.24 	construction or improvement services if the other person is required to be registered under 
134.25 	this section and is not registered if required by subdivision 2. All payments to an unregistered 
134.26 	person for construction services on a single project site shall be considered a single violation. 
134.27 	It is not a violation of this clause:
134.28 	(i) for a person to contract with or pay have engaged an unregistered person if the 
134.29 	unregistered person was registered at the time the contract for construction services was 
134.30 	entered into held a current registration on the date they began providing or performing the 
134.31 	building construction or improvement services; or
135.1 	(ii) for a homeowner or business to contract with or pay engage an unregistered person 
135.2 	if the homeowner or business is not in the trade, business, profession, or occupation of 
135.3 	performing building construction or improvement services; or.
135.4 	(3) be penalized for violations of this subdivision that are committed by another person. 
135.5 	This clause applies only to violations of this paragraph.
135.6 	(c) Each day a person who is required to be registered provides or performs building 
135.7 	construction or improvement services while unregistered shall be considered a separate 
135.8 	violation.
135.9 		Subd. 6.Investigation and enforcement; remedies; and penalties. (a) Notwithstanding 
135.10 	the maximum penalty amount in section 326B.082, subdivisions 7 and 12, the maximum 
135.11 	penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if 
135.12 	the person registers within 30 days of the date of the penalty order.
135.13 	(b) The penalty for contracting with or paying an unregistered person to perform 
135.14 	construction services in violation of subdivision 5, paragraph (b), clause (2), shall be as 
135.15 	provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive 
135.16 	the penalty for the first violation.
135.17 	The commissioner may investigate and enforce this section under the authority in chapters 
135.18 	177 and 326B.
135.19 		Subd. 7.Notice requirement. Notice of a penalty order for failure to register must 
135.20 	include a statement that the penalty shall be forgiven if the person registers within 30 days 
135.21 	of the date of the penalty order.
135.22 		Subd. 8.Data classified. Data in applications and any required documentation submitted 
135.23 	to the commissioner under this section are private data on individuals or nonpublic data as 
135.24 	defined in section 13.02. Data in registration certificates issued by the commissioner are 
135.25 	public data; except that for the registration information published on the department's website 
135.26 	may be accessed for registration verification purposes only. Data that document a suspension, 
135.27 	revocation, or cancellation of a certificate registration are public data. Upon request of
135.28 	Notwithstanding its classification as private data on individuals or nonpublic data, data in 
135.29 	applications and any required documentation submitted to the commissioner under this 
135.30 	section may be used by the commissioner to investigate and take enforcement action related 
135.31 	to laws for which the commissioner has enforcement responsibility and the commissioner 
135.32 	may share data and documentation with the Department of Revenue, the Department of 
135.33 	Commerce, the Department of Human Rights, or the Department of Employment and 
135.34 	Economic Development,. The commissioner may release to the requesting department
136.1 	departments data classified as private or nonpublic under this subdivision or investigative 
136.2 	data that are not public under section 13.39 that relate to the issuance or denial of applications 
136.3 	or revocations of certificates prohibited activities under this section and section 181.723.

136.4 	ARTICLE 12
136.5 	MINORS APPEARING IN INTERNET CONTENT

136.6 	Section 1. Minnesota Statutes 2022, section 181A.03, is amended by adding a subdivision 
136.7 	to read:
136.8 		Subd. 5a.Online platform. "Online platform" means any public-facing website, web 
136.9 	application, or digital application, including a mobile application. Online platform includes 
136.10 	a social network, advertising network, mobile operating system, search engine, email service, 
136.11 	monetization platform to sell digital services, streaming service, paid subscription, or Internet 
136.12 	access service.

136.13 	Sec. 2. Minnesota Statutes 2022, section 181A.03, is amended by adding a subdivision to 
136.14 	read:
136.15 		Subd. 7a.Content creation. "Content creation" means content shared on an online 
136.16 	platform in exchange for compensation.

136.17 	Sec. 3. Minnesota Statutes 2022, section 181A.03, is amended by adding a subdivision to 
136.18 	read:
136.19 		Subd. 7b.Content creator. "Content creator" means an individual or individuals 18 
136.20 	years of age or older, including family members, who create video content performed in 
136.21 	Minnesota in exchange for compensation, and includes any proprietorship, partnership, 
136.22 	company, or other corporate entity assuming the name or identity of a particular individual 
136.23 	or individuals, or family members, for the purposes of that content creator. Content creator 
136.24 	does not include a person under the age of 18 who produces their own video content.

136.25 	Sec. 4. [181A.13] COMPENSATION FOR INTERNET CONTENT CREATION.
136.26 		Subdivision 1.Minors featured in content creation. (a) Except as otherwise provided 
136.27 	in this section, a minor is considered engaged in the work of content creation when the 
136.28 	following criteria are met at any time during the previous 12-month period:
136.29 	(1) at least 30 percent of the content creator's compensated video content produced within 
136.30 	a 30-day period included the likeness, name, or photograph of any minor. Content percentage 
136.31 	is measured by the percentage of time the likeness, name, or photograph of a minor or if 
137.1 	more than one minor regularly appears in the creator's content, any of the minors, visually 
137.2 	appears or is the subject of an oral narrative in a video segment as compared to the total 
137.3 	length of the segment; and
137.4 	(2) the number of views received per video segment on any online platform met the 
137.5 	online platform's threshold for generating compensation or the content creator received 
137.6 	actual compensation for video content equal to or greater than $0.01 per view.
137.7 	(b) A minor under the age of 14 is prohibited from engaging in the work of content 
137.8 	creation as provided in paragraph (a). If a minor under the age of 14 is featured by a content 
137.9 	creator, the minor shall receive 100 percent of the proceeds of the creator's compensation 
137.10 	for the content they have appeared in, less any amount owed to another minor.
137.11 	(c) A minor who is at least age 14 but under the age of 18 may produce, create, and 
137.12 	publish their own content and is entitled to all compensation for their own content creation. 
137.13 	A minor engaged in the work of content creation as the producer, creator, and publisher of 
137.14 	content must also follow the requirements in paragraph (b).
137.15 	(d) A minor who appears incidentally in a video that depicts a public event that a 
137.16 	reasonable person would know to be broadcast, including a concert, competition, or sporting 
137.17 	event, and is published by a content creator is not considered a violation of this section.
137.18 		Subd. 2.Records required. (a) All video content creators whose content features a 
137.19 	minor engaged in the work of content creation shall maintain the following records and 
137.20 	retain the records until the minor reaches the age of 21:
137.21 	(1) the name and documentary proof of the age of the minor engaged in the work of 
137.22 	content creation;
137.23 	(2) the amount of content creation that generated compensation as described in subdivision 
137.24 	1 during the reporting period;
137.25 	(3) the total number of minutes of content creation for which the content creator received 
137.26 	compensation during the reporting period;
137.27 	(4) the total number of minutes a minor was featured in content creation during the 
137.28 	reporting period;
137.29 	(5) the total compensation generated from content creation featuring a minor during the 
137.30 	reporting period; and
137.31 	(6) the amount deposited into the trust account for the benefit of the minor engaged in 
137.32 	the work of content creation as required by subdivision 3.
138.1 	(b) The records required by this subdivision must be readily accessible to the minor for 
138.2 	review. The content creator shall provide notice to the minor of the existence of the records.
138.3 		Subd. 3.Trust required. (a) A minor who is engaged in the work of content creation 
138.4 	consistent with this section must be compensated by the content creator. The content creator 
138.5 	must set aside gross earnings on the video content that includes the likeness, name, or 
138.6 	photograph of the minor in a trust account to be preserved for the benefit of the minor until 
138.7 	the minor reaches the age of majority, according to the following distribution:
138.8 	(1) if only one minor meets the content threshold described in subdivision 1, the 
138.9 	percentage of total gross earnings on any video segment, including the likeness, name, or 
138.10 	photograph of the minor that is equal to or greater than half of the content percentage that 
138.11 	includes the minor as described in subdivision 1; or
138.12 	(2) if more than one minor meets the content threshold described in subdivision 1 and 
138.13 	a video segment includes more than one of those minors, the percentage described in clause 
138.14 	(1) for all minors in any segment must be equally divided between the minors regardless 
138.15 	of differences in percentage of content provided by the individual minors.
138.16 	(b) A trust account required under this section must, at a minimum, provide that:
138.17 	(1) the money in the account is available only to the minor engaged in the work of content 
138.18 	creation;
138.19 	(2) the account is held by a bank, corporate fiduciary, or trust company, as those terms 
138.20 	are defined in chapter 48A;
138.21 	(3) the money in the account becomes available to the minor engaged in the work of 
138.22 	content creation upon the minor attaining the age of 18 years or upon a declaration that the 
138.23 	minor is emancipated; and
138.24 	(4) that the account meets the requirements of chapter 527, the Uniform Transfers to 
138.25 	Minors Act.
138.26 	(c) If a content creator knowingly or recklessly violates this section, a minor satisfying 
138.27 	the criteria described in subdivision 1 may commence a civil action to enforce the provisions 
138.28 	of this section regarding the trust account. In any action brought in accordance with this 
138.29 	section, the court may award the following damages:
138.30 	(1) actual damages including any compensation owed under this section;
138.31 	(2) punitive damages; and
138.32 	(3) the costs of the action, including attorney fees and litigation costs.
139.1 	(d) This section does not affect a right or remedy available under any other law of the 
139.2 	state.
139.3 	(e) Nothing in this section shall be interpreted to have any effect on a party that is neither 
139.4 	the content creator nor the minor who engaged in the work of content creation.
139.5 		Subd. 4.Civil cause of action; violations.  (a) Along with the civil action provided in 
139.6 	subdivision 3, paragraph (c), the minor may commence a civil action against the content 
139.7 	creator for damages, injunctive relief, and any other relief the court finds just and equitable 
139.8 	to enforce this section.
139.9 	(b) The attorney general may enforce subdivision 1, pursuant to section 8.31, and may 
139.10 	recover costs and fees.
139.11 		Subd. 5.Content removal. Content containing the likeness of a child must be deleted 
139.12 	and removed from any online platform by the individual who posted the content, the account 
139.13 	owner, or another person who has control over the account when the request is made by a 
139.14 	minor age 13 or older whose likeness appears in the content, or by an adult who was under 
139.15 	the age of 18 when their likeness was used in the content.

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

139.17 	ARTICLE 13
139.18 	HOUSING APPROPRIATIONS

139.19 	Section 1. Laws 2023, chapter 37, article 1, section 2, subdivision 1, is amended to read:

139.21139.20
	Subdivision 1.Total Appropriation
 	$
	792,098,000
	$
	273,298,000
223,298,000
	
139.22 	(a) The amounts that may be spent for each 
139.23 	purpose are specified in the following 
139.24 	subdivisions.
139.25 	(b) Unless otherwise specified, this 
139.26 	appropriation is for transfer to the housing 
139.27 	development fund for the programs specified 
139.28 	in this section. Except as otherwise indicated, 
139.29 	this transfer is part of the agency's permanent 
139.30 	budget base.

140.1 	Sec. 2. Laws 2023, chapter 37, article 1, section 2, subdivision 17, is amended to read:

140.3140.2
	Subd. 17.Housing Infrastructure
 		100,000,000
		100,000,000
60,000,000
	
140.4 	This appropriation is for the housing 
140.5 	infrastructure program for the eligible 
140.6 	purposes under Minnesota Statutes, section 
140.7 	462A.37, subdivision 2. This is a onetime 
140.8 	appropriation.

140.9 	Sec. 3. Laws 2023, chapter 37, article 1, section 2, subdivision 29, is amended to read:

140.11140.10
	Subd. 29.Community Stabilization
 		45,000,000
		45,000,000
35,000,000
	
140.12 	This appropriation is for the community 
140.13 	stabilization program. This a onetime 
140.14 	appropriation. Of this amount, $10,000,000 is 
140.15 	for a grant to AEON for Huntington Place.

140.16 	Sec. 4. APPROPRIATION; MINNESOTA HOUSING FINANCE AGENCY.
 140.17 	$59,255,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
140.18 	of the Minnesota Housing Finance Agency. This appropriation is onetime and in addition 
140.19 	to amounts appropriated in 2023. This appropriation is for transfer to the housing 
140.20 	development fund. Of this amount:
140.21 	(1) $50,000,000 is for the housing affordability preservation investment program;
140.22 	(2) $8,885,000 is for the family homelessness prevention and assistance program under 
140.23 	Minnesota Statutes, section 462A.204. Notwithstanding Minnesota Statutes, section 16C.06, 
140.24 	$943,000 of this appropriation is allocated to federally recognized American Indian Tribes 
140.25 	located in Minnesota. Notwithstanding procurement provisions outlined in Minnesota 
140.26 	Statutes, section 16C.06, subdivisions 1, 2, and 6, the agency may award grants to existing 
140.27 	program grantees;
140.28 	(3) $270,000 is for administering the requirements of article 14, sections 18 and 43 to 
140.29 	46; and
140.30 	(4) $100,000 is for a grant to the Amherst H. Wilder Foundation for the Minnesota 
140.31 	homeless study.

141.1 	Sec. 5. APPROPRIATION; MINNESOTA MANAGEMENT AND BUDGET.
 141.2 	$200,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
141.3 	of Minnesota Management and Budget for management analysis and development to facilitate 
141.4 	the working group on common interest communities and homeowners associations established 
141.5 	in article 15. This is a onetime appropriation.

141.6 	Sec. 6. APPROPRIATION; SUPREME COURT.
 141.7 	$545,000 in fiscal year 2025 is appropriated from the general fund to the supreme court 
141.8 	for the implementation of Laws 2023, chapter 52, article 19, section 120, as amended in 
141.9 	article 15, section 2. This is a onetime appropriation and is available until June 30, 2026.

141.10 	ARTICLE 14
141.11 	HOUSING POLICY

141.12 	Section 1. Minnesota Statutes 2022, section 15.082, is amended to read:
141.13 	15.082 OBLIGATIONS OF PUBLIC CORPORATIONS.
141.14 	Notwithstanding any other law, the state is not liable for obligations of a public 
141.15 	corporation created by statute. Upon dissolution of the public corporation, its wholly owned 
141.16 	assets become state property. Partially owned assets become state property to the extent 
141.17 	that state money was used to acquire them.
141.18 	This section does not apply to a public corporation governed by chapter 119 or section 
141.19 	469.0121.

141.20 	EFFECTIVE DATE. This section is effective July 1, 2024.

141.21 	Sec. 2. Minnesota Statutes 2022, section 462A.02, subdivision 10, is amended to read:
141.22 		Subd. 10.Energy conservation decarbonization and climate resilience. It is further 
141.23 	declared that supplies of conventional energy resources are rapidly depleting in quantity 
141.24 	and rising in price and that the burden of these occurrences falls heavily upon the citizens 
141.25 	of Minnesota generally and persons of low and moderate income in particular. These 
141.26 	conditions are adverse to the health, welfare, and safety of all of the citizens of this state. 
141.27 	It is further declared that it is a public purpose to ensure the availability of financing to be 
141.28 	used by all citizens of the state, while giving preference to low and moderate income people, 
141.29 	to assist in the installation in their dwellings of reasonably priced energy conserving systems 
141.30 	including the use of alternative energy resources and equipment so that by the improvement 
141.31 	of the energy efficiency of, clean energy, greenhouse gas emissions reduction, climate 
142.1 	resiliency, and other qualified projects for all housing, the adequacy of the total energy 
142.2 	supply may be preserved for the benefit of all citizens.

142.3 	Sec. 3. Minnesota Statutes 2022, section 462A.03, is amended by adding a subdivision to 
142.4 	read:
142.5 		Subd. 2a.Distressed building. "Distressed building" means an existing rental housing 
142.6 	building:
142.7 	(1) in which the units are restricted to households at or below 60 percent of the area 
142.8 	median income; and
142.9 	(2) that:
142.10 	(i) is in foreclosure proceedings;
142.11 	(ii) has two or more years of negative net operating income;
142.12 	(iii) has two or more years with a debt service coverage ratio less than one; or
142.13 	(iv) has necessary costs of repair, replacement, or maintenance that exceed the project 
142.14 	reserves available for those purposes.

142.15 	Sec. 4. Minnesota Statutes 2022, section 462A.03, is amended by adding a subdivision to 
142.16 	read:
142.17 		Subd. 6a.Recapitalization. "Recapitalization" means financing for the physical and 
142.18 	financial needs of a distressed building, including restructuring and forgiveness of amortizing 
142.19 	and deferred debt, principal and interest paydown, interest rate write-down, deferral of debt 
142.20 	payments, mortgage payment forbearance, deferred maintenance, security services, property 
142.21 	insurance, reasonably necessary capital improvements, funding of reserves for supportive 
142.22 	services, and property operations. Recapitalization may include reimbursement to a nonprofit 
142.23 	sponsor or owner for expenditures that would have otherwise qualified for recapitalization.

142.24 	Sec. 5. Minnesota Statutes 2022, section 462A.05, subdivision 3b, is amended to read:
142.25 		Subd. 3b.Refinancing mortgages. The agency may make loans for recapitalization or 
142.26 	to refinance the existing indebtedness, of owners of rental property, secured by federally 
142.27 	assisted housing for the purpose of obtaining agreement of the owner to participate in the 
142.28 	federally assisted rental housing program and to extend any existing low-income affordability 
142.29 	restrictions on the housing for the maximum term permitted. For purposes of this subdivision, 
142.30 	"federally assisted rental housing" includes housing that is:
143.1 	(1) subject to a project-based housing or rental assistance payment contract funded by 
143.2 	the federal government;
143.3 	(2) financed by the Rural Housing Service of the United States Department of Agriculture 
143.4 	under section 515 of the Housing Act of 1949, as amended; or
143.5 	(3) financed under section 236; section 221(d)(3) below market interest rate program; 
143.6 	section 202; or section 811 of the Housing and Urban Development Act of 1968, as amended.

143.7 	Sec. 6. Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 14, is amended 
143.8 	to read:
143.9 		Subd. 14.Rehabilitation loans. It may agree to purchase, make, or otherwise participate 
143.10 	in the making, and may enter into commitments for the purchase, making, or participation 
143.11 	in the making, of eligible loans for rehabilitation, with terms and conditions as the agency 
143.12 	deems advisable, to persons and families of low and moderate income, and to owners of 
143.13 	existing residential housing for occupancy by such persons and families, for the rehabilitation 
143.14 	of existing residential housing owned by them. Rehabilitation may include the addition or 
143.15 	rehabilitation of a detached accessory dwelling unit. The loans may be insured or uninsured 
143.16 	and may be made with security, or may be unsecured, as the agency deems advisable. The 
143.17 	loans may be in addition to or in combination with long-term eligible mortgage loans under 
143.18 	subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness 
143.19 	secured by the property, if refinancing is determined by the agency to be necessary to permit 
143.20 	the owner to meet the owner's housing cost without expending an unreasonable portion of 
143.21 	the owner's income thereon. No loan for rehabilitation shall be made unless the agency 
143.22 	determines that the loan will be used primarily to make the housing more desirable to live 
143.23 	in, to increase the market value of the housing, for compliance with state, county or municipal 
143.24 	building, housing maintenance, fire, health or similar codes and standards applicable to 
143.25 	housing, or to accomplish energy conservation related improvements decarbonization, 
143.26 	climate resiliency, and other qualified projects. In unincorporated areas and municipalities 
143.27 	not having codes and standards, the agency may, solely for the purpose of administering 
143.28 	the provisions of this chapter, establish codes and standards. No loan under this subdivision 
143.29 	for the rehabilitation of owner-occupied housing shall be denied solely because the loan 
143.30 	will not be used for placing the owner-occupied residential housing in full compliance with 
143.31 	all state, county, or municipal building, housing maintenance, fire, health, or similar codes 
143.32 	and standards applicable to housing. Rehabilitation loans shall be made only when the 
143.33 	agency determines that financing is not otherwise available, in whole or in part, from private 
143.34 	lenders upon equivalent terms and conditions. Accessibility rehabilitation loans authorized 
144.1 	under this subdivision may be made to eligible persons and families without limitations 
144.2 	relating to the maximum incomes of the borrowers if:
144.3 	(1) the borrower or a member of the borrower's family requires a level of care provided 
144.4 	in a hospital, skilled nursing facility, or intermediate care facility for persons with 
144.5 	developmental disabilities;
144.6 	(2) home care is appropriate; and
144.7 	(3) the improvement will enable the borrower or a member of the borrower's family to 
144.8 	reside in the housing.
144.9 	The agency may waive any requirement that the housing units in a residential housing 
144.10 	development be rented to persons of low and moderate income if the development consists 
144.11 	of four or fewer dwelling units, one of which is occupied by the owner.

144.12 	Sec. 7. Minnesota Statutes 2022, section 462A.05, subdivision 14a, is amended to read:
144.13 		Subd. 14a.Rehabilitation loans; existing owner-occupied residential housing. It may 
144.14 	make loans to persons and families of low and moderate income to rehabilitate or to assist 
144.15 	in rehabilitating existing residential housing owned and occupied by those persons or 
144.16 	families. Rehabilitation may include replacement of manufactured homes. No loan shall be 
144.17 	made unless the agency determines that the loan will be used primarily for rehabilitation 
144.18 	work necessary for health or safety, essential accessibility improvements, or to improve the 
144.19 	energy efficiency of, clean energy, greenhouse gas emissions reductions, climate resiliency, 
144.20 	and other qualified projects in the dwelling. No loan for rehabilitation of owner-occupied 
144.21 	residential housing shall be denied solely because the loan will not be used for placing the 
144.22 	residential housing in full compliance with all state, county or municipal building, housing 
144.23 	maintenance, fire, health or similar codes and standards applicable to housing. The amount 
144.24 	of any loan shall not exceed the lesser of (a) a maximum loan amount determined under 
144.25 	rules adopted by the agency not to exceed $37,500, or (b) the actual cost of the work 
144.26 	performed, or (c) that portion of the cost of rehabilitation which the agency determines 
144.27 	cannot otherwise be paid by the person or family without the expenditure of an unreasonable 
144.28 	portion of the income of the person or family. Loans made in whole or in part with federal 
144.29 	funds may exceed the maximum loan amount to the extent necessary to comply with federal 
144.30 	lead abatement requirements prescribed by the funding source. In making loans, the agency 
144.31 	shall determine the circumstances under which and the terms and conditions under which 
144.32 	all or any portion of the loan will be repaid and shall determine the appropriate security for 
144.33 	the repayment of the loan. Loans pursuant to this subdivision may be made with or without 
144.34 	interest or periodic payments.

145.1 	Sec. 8. Minnesota Statutes 2022, section 462A.05, subdivision 14b, is amended to read:
145.2 		Subd. 14b.Energy conservation decarbonization and climate resiliency loans. It 
145.3 	may agree to purchase, make, or otherwise participate in the making, and may enter into 
145.4 	commitments for the purchase, making, or participating in the making, of loans to persons 
145.5 	and families, without limitations relating to the maximum incomes of the borrowers, to 
145.6 	assist in energy conservation rehabilitation measures decarbonization, climate resiliency, 
145.7 	and other qualified projects for existing housing owned by those persons or families 
145.8 	including, but not limited to: weatherstripping and caulking; chimney construction or 
145.9 	improvement; furnace or space heater repair, cleaning or replacement; central air conditioner 
145.10 	installation, repair, maintenance, or replacement; air source or geothermal heat pump 
145.11 	installation, repair, maintenance, or replacement; insulation; windows and doors; and 
145.12 	structural or other directly related repairs or installations essential for energy conservation
145.13 	decarbonization, climate resiliency, and other qualified projects. Loans shall be made only 
145.14 	when the agency determines that financing is not otherwise available, in whole or in part, 
145.15 	from private lenders upon equivalent terms and conditions. Loans under this subdivision 
145.16 	or subdivision 14 may:
145.17 	(1) be integrated with a utility's on-bill repayment program approved under section 
145.18 	216B.241, subdivision 5d; and
145.19 	(2) also be made for the installation of on-site solar energy or energy storage systems.

145.20 	Sec. 9. Minnesota Statutes 2022, section 462A.05, subdivision 15, is amended to read:
145.21 		Subd. 15.Rehabilitation grants. (a) It may make grants to persons and families of low 
145.22 	and moderate income to pay or to assist in paying a loan made pursuant to subdivision 14, 
145.23 	or to rehabilitate or to assist in rehabilitating existing residential housing owned or occupied 
145.24 	by such persons or families. For the purposes of this section, persons of low and moderate 
145.25 	income include administrators appointed pursuant to section 504B.425, paragraph (d). No 
145.26 	grant shall be made unless the agency determines that the grant will be used primarily to 
145.27 	make the housing more desirable to live in, to increase the market value of the housing or 
145.28 	for compliance with state, county or municipal building, housing maintenance, fire, health 
145.29 	or similar codes and standards applicable to housing, or to accomplish energy conservation 
145.30 	related improvements decarbonization, climate resiliency, or other qualified projects. In 
145.31 	unincorporated areas and municipalities not having codes and standards, the agency may, 
145.32 	solely for the purpose of administering this provision, establish codes and standards. No 
145.33 	grant for rehabilitation of owner occupied residential housing shall be denied solely because 
145.34 	the grant will not be used for placing the residential housing in full compliance with all 
146.1 	state, county or municipal building, housing maintenance, fire, health or similar codes and 
146.2 	standards applicable to housing. The amount of any grant shall not exceed the lesser of (a) 
146.3 	$6,000, or (b) the actual cost of the work performed, or (c) that portion of the cost of 
146.4 	rehabilitation which the agency determines cannot otherwise be paid by the person or family 
146.5 	without spending an unreasonable portion of the income of the person or family thereon. 
146.6 	In making grants, the agency shall determine the circumstances under which and the terms 
146.7 	and conditions under which all or any portion thereof will be repaid and shall determine the 
146.8 	appropriate security should repayment be required.
146.9 	(b) The agency may also make grants to rehabilitate or to assist in rehabilitating housing 
146.10 	under this subdivision to persons of low and moderate income for the purpose of qualifying 
146.11 	as foster parents.

146.12 	Sec. 10. Minnesota Statutes 2022, section 462A.05, subdivision 15b, is amended to read:
146.13 		Subd. 15b.Energy conservation decarbonization and climate resiliency grants. (a) 
146.14 	It may make grants to assist in energy conservation rehabilitation measures decarbonization, 
146.15 	climate resiliency, and other qualified projects for existing owner occupied housing including, 
146.16 	but not limited to: insulation, storm windows and doors, furnace or space heater repair, 
146.17 	cleaning or replacement, chimney construction or improvement, weatherstripping and 
146.18 	caulking, and structural or other directly related repairs, or installations essential for energy 
146.19 	conservation decarbonization, climate resiliency, and other qualified projects. The grant to 
146.20 	any household shall not exceed $2,000.
146.21 	(b) To be eligible for an emergency energy conservation decarbonization and climate 
146.22 	resiliency grant, a household must be certified as eligible to receive emergency residential 
146.23 	heating assistance under either the federal or the state program, and either (1) have had a 
146.24 	heating cost for the preceding heating season that exceeded 120 percent of the regional 
146.25 	average for the preceding heating season for that energy source as determined by the 
146.26 	commissioner of employment and economic development, or (2) be eligible to receive a 
146.27 	federal energy conservation grant, but be precluded from receiving the grant because of a 
146.28 	need for directly related repairs that cannot be paid for under the federal program. The 
146.29 	Housing Finance Agency shall make a reasonable effort to determine whether other state 
146.30 	or federal loan and grant programs are available and adequate to finance the intended 
146.31 	improvements. An emergency energy conservation grant may be made in conjunction with 
146.32 	grants or loans from other state or federal programs that finance other needed rehabilitation 
146.33 	work. The receipt of a grant pursuant to this section shall not affect the applicant's eligibility 
146.34 	for other Housing Finance Agency loan or grant programs.

147.1 	Sec. 11. Minnesota Statutes 2022, section 462A.05, subdivision 21, is amended to read:
147.2 		Subd. 21.Rental property loans. The agency may make or purchase loans to owners 
147.3 	of rental property that is occupied or intended for occupancy primarily by low- and 
147.4 	moderate-income tenants and which does not comply with the standards established in 
147.5 	section 326B.106, subdivision 1, for the purpose of energy improvements decarbonization, 
147.6 	climate resiliency, and other qualified projects necessary to bring the property into full or 
147.7 	partial compliance with these standards. For property which meets the other requirements 
147.8 	of this subdivision, a loan may also be used for moderate rehabilitation of the property. The 
147.9 	authority granted in this subdivision is in addition to and not in limitation of any other 
147.10 	authority granted to the agency in this chapter. The limitations on eligible mortgagors 
147.11 	contained in section 462A.03, subdivision 13, do not apply to loans under this subdivision. 
147.12 	Loans for the improvement of rental property pursuant to this subdivision may contain 
147.13 	provisions that repayment is not required in whole or in part subject to terms and conditions 
147.14 	determined by the agency to be necessary and desirable to encourage owners to maximize 
147.15 	rehabilitation of properties.

147.16 	Sec. 12. Minnesota Statutes 2022, section 462A.05, subdivision 23, is amended to read:
147.17 		Subd. 23.Insuring financial institution loans. The agency may participate in loans or 
147.18 	establish a fund to insure loans, or portions of loans, that are made by any banking institution, 
147.19 	savings association, or other lender approved by the agency, organized under the laws of 
147.20 	this or any other state or of the United States having an office in this state, to owners of 
147.21 	renter-occupied homes or apartments that do not comply with standards set forth in section 
147.22 	326B.106, subdivision 1, without limitations relating to the maximum incomes of the owners 
147.23 	or tenants. The proceeds of the insured portion of the loan must be used to pay the costs of 
147.24 	improvements, including all related structural and other improvements, that will reduce 
147.25 	energy consumption, that will decarbonize, and that will ensure the climate resiliency of 
147.26 	housing.

147.27 	Sec. 13. Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 45, is amended 
147.28 	to read:
147.29 		Subd. 45.Indian Tribes. Notwithstanding any other provision in this chapter, at its 
147.30 	discretion the agency may make any federally recognized Indian Tribe in Minnesota, or 
147.31 	their associated Tribally Designated Housing Entity (TDHE) as defined by United States 
147.32 	Code, title 25, section 4103(22), eligible for agency funding authorized under this chapter.

148.1 	Sec. 14. [462A.051] WAGE THEFT PREVENTION AND USE OF RESPONSIBLE 
148.2 	CONTRACTORS.
148.3 		Subdivision 1.Application. This section applies to all forms of financial assistance 
148.4 	provided by the Minnesota Housing Finance Agency, as well as the allocation of federal 
148.5 	low-income housing credits, for the development, construction, rehabilitation, renovation, 
148.6 	or retrofitting of multiunit residential housing, including loans, grants, tax credits, loan 
148.7 	guarantees, loan insurance, and other financial assistance.
148.8 		Subd. 2.Disclosures. An applicant for financial assistance under this chapter shall 
148.9 	disclose in the application any conviction, court judgment, agency determination, legal 
148.10 	settlement, ongoing criminal or civil investigation, or lawsuit involving alleged violations 
148.11 	of sections 177.24, 177.25, 177.32, 177.41 to 177.44, 181.03, 181.101, 181.13, 181.14, 
148.12 	181.722, 181.723, 181A.01 to 181A.12, or 609.52, subdivision 2, paragraph (a), clause (19), 
148.13 	or United States Code, title 29, sections 201 to 219, or title 40, sections 3141 to 3148, arising 
148.14 	or occurring within the preceding five years on a construction project owned or managed 
148.15 	by the developer or owner of the proposed project, the intended general contractor for the 
148.16 	proposed project, or any of their respective parent companies, subsidiaries, or other affiliated 
148.17 	companies. An applicant for financial assistance shall make the disclosures required by this 
148.18 	subdivision available within 14 calendar days to any member of the public who submits a 
148.19 	request by mail or electronic correspondence. The applicant shall designate a public 
148.20 	information officer who will serve as a point of contact for public inquiries.
148.21 		Subd. 3.Responsible contractors required. As a condition of receiving financial 
148.22 	assistance, the applicant shall verify that every contractor or subcontractor of any tier 
148.23 	performing work on the proposed project meets the minimum criteria to be a responsible 
148.24 	contractor under section 16C.285, subdivision 3. This verification must meet the criteria 
148.25 	defined in section 16C.285, subdivision 4.
148.26 		Subd. 4.Certified contractor lists. As a condition of receiving financial assistance, the 
148.27 	applicant shall have available at the development site main office a list of every contractor 
148.28 	and subcontractor of any tier that performs work or is expected to perform work on the 
148.29 	proposed project, as described in section 16C.285, subdivision 5, including the following 
148.30 	information for each contractor and subcontractor: business name, scope of work, Department 
148.31 	of Labor and Industry registration number, business name of the entity contracting its 
148.32 	services, business telephone number and email address, and actual or anticipated number 
148.33 	of workers on the project. The applicant shall establish the initial contractor list 30 days 
148.34 	before the start of construction and shall update the list each month thereafter until 
148.35 	construction is complete. The applicant shall post the contractor list in a conspicuous location 
149.1 	at the project site and make the contractor list available to members of the public upon 
149.2 	request.
149.3 		Subd. 5.Wage theft remedy. If any contractor or subcontractor of any tier is found to 
149.4 	have failed to pay statutorily required wages under section 609.52, subdivision 1, clause 
149.5 	(13), on a project receiving financial assistance or an allocation of federal low-income 
149.6 	housing tax credits from or through the agency, the recipient is responsible for correcting 
149.7 	the violation.
149.8 		Subd. 6.Wage theft prevention plans; disqualification. (a) If any contractor or 
149.9 	subcontractor of any tier fails to pay statutorily required wages on a project receiving 
149.10 	financial assistance from or through the agency as determined by an enforcement entity, 
149.11 	the recipient must have a wage theft prevention plan to be eligible for further financial 
149.12 	assistance from the agency. The project developer's wage theft prevention plan must describe 
149.13 	detailed measures that the project developer and its general contractor have taken and are 
149.14 	committed to take to prevent wage theft on the project, including provisions in any 
149.15 	construction contracts and subcontracts on the project. The plan must be submitted to the 
149.16 	Department of Labor and Industry who will review the plan. The Department of Labor and 
149.17 	Industry may require the project developer to amend the plan or adopt policies or protocols 
149.18 	in the plan. Once approved by the Department of Labor and Industry, the wage theft 
149.19 	prevention plan must be submitted by the project developer to the agency with any subsequent 
149.20 	application for financial assistance from the agency. Such wage theft prevention plans shall 
149.21 	be made available to members of the public by the agency upon request.
149.22 	(b) A developer is disqualified from receiving financial assistance from or through the 
149.23 	agency for three years if any of the developer's contractors or subcontractors of any tier are 
149.24 	found by an enforcement agency to have, within three years after entering into a wage theft 
149.25 	prevention plan under paragraph (a), failed to pay statutorily required wages on a project 
149.26 	receiving financial assistance from or through the agency for a total underpayment of $25,000 
149.27 	or more.
149.28 		Subd. 7.Enforcement. The agency may deny an application for financial assistance 
149.29 	that does not comply with this section or if the applicant refuses to enter into the agreements 
149.30 	required by this section. The agency may withhold financial assistance that has been 
149.31 	previously approved if the agency determines that the applicant has engaged in unacceptable 
149.32 	practices by failing to comply with this section until the violation is cured.

150.1 	EFFECTIVE DATE. This section is effective for financial assistance provided after 
150.2 	August 1, 2024, except Minnesota Statutes, section 462A.051, subdivision 2, does not apply 
150.3 	to requests for proposals that were initiated prior to August 1, 2024.

150.4 	Sec. 15. Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision 
150.5 	to read:
150.6 		Subd. 18.Rent and income limits. Notwithstanding any law to the contrary, to promote 
150.7 	efficiency in program administration, underwriting, and compliance, the commissioner may 
150.8 	adjust income or rent limits for any multifamily capital funding program authorized under 
150.9 	state law to align with federal rent or income limits in sections 42 and 142 of the Internal 
150.10 	Revenue Code of 1986, as amended. Adjustments made under this subdivision are exempt 
150.11 	from the rulemaking requirements of chapter 14.

150.12 	Sec. 16. Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision 
150.13 	to read:
150.14 		Subd. 19.Eligibility for agency programs.  The agency may determine that a household 
150.15 	or project unit meets the rent or income requirements for a program if the household or unit 
150.16 	receives or participates in income-based state or federal public assistance benefits, including 
150.17 	but not limited to:
150.18 	(1) child care assistance programs under chapter 119B;
150.19 	(2) general assistance, Minnesota supplemental aid, or food support under chapter 256D;
150.20 	(3) housing support under chapter 256I;
150.21 	(4) Minnesota family investment program and diversionary work program under chapter 
150.22 	256J; and
150.23 	(5) economic assistance programs under chapter 256P.

150.24 	Sec. 17. Minnesota Statutes 2022, section 462A.202, subdivision 3a, is amended to read:
150.25 		Subd. 3a.Permanent rental housing. The agency may make loans, with or without 
150.26 	interest, to cities and counties to finance the construction, acquisition, or rehabilitation of 
150.27 	affordable, permanent, publicly owned rental housing, including housing owned by a public 
150.28 	corporation created pursuant to section 469.0121. Loans made under this subdivision are 
150.29 	subject to the restrictions of subdivision 7. In making loans under this subdivision, the 
150.30 	agency shall give priority to projects that increase the supply of affordable family housing.

151.1 	Sec. 18. [462A.2096] ANNUAL PROJECTION OF EMERGENCY RENTAL 
151.2 	ASSISTANCE NEEDS.
151.3 	The agency must develop a projection of emergency rental assistance needs in 
151.4 	consultation with the commissioner of human services and representatives from county and 
151.5 	Tribal housing administrators and housing nonprofit agencies. The projection must identify 
151.6 	the amount of funding required to meet all emergency rental assistance needs, including 
151.7 	the family homelessness prevention and assistance program, the emergency assistance 
151.8 	program, and emergency general assistance. By January 15 each year, the commissioner 
151.9 	must submit a report on the projected need for emergency rental assistance to the chairs and 
151.10 	ranking minority members of the legislative committees having jurisdiction over housing 
151.11 	and human services finance and policy.

151.12 	Sec. 19. Minnesota Statutes 2022, section 462A.21, subdivision 7, is amended to read:
151.13 		Subd. 7.Energy efficiency loans. The agency may make loans to low and moderate 
151.14 	income persons who own existing residential housing for the purpose of improving the 
151.15 	efficient energy utilization decarbonization and climate resiliency of the housing. Permitted 
151.16 	improvements shall include installation or upgrading of ceiling, wall, floor and duct 
151.17 	insulation, storm windows and doors, and caulking and weatherstripping. The improvements 
151.18 	shall not be inconsistent with the energy standards as promulgated as part of the State 
151.19 	Building Code; provided that the improvements need not bring the housing into full 
151.20 	compliance with the energy standards. Any loan for such purpose shall be made only upon 
151.21 	determination by the agency that such loan is not otherwise available, wholly or in part, 
151.22 	from private lenders upon equivalent terms and conditions. The agency may promulgate 
151.23 	rules as necessary to implement and make specific the provisions of this subdivision. The 
151.24 	rules shall be designed to permit the state, to the extent not inconsistent with this chapter, 
151.25 	to seek federal grants or loans for energy purposes decarbonization, climate resiliency, and 
151.26 	other qualified projects.

151.27 	Sec. 20. Minnesota Statutes 2022, section 462A.21, subdivision 8b, is amended to read:
151.28 		Subd. 8b.Family rental housing. It may establish a family rental housing assistance 
151.29 	program to provide loans or direct rental subsidies for housing for families with incomes 
151.30 	of up to 80 percent of state median income, or to provide grants for the operating cost of 
151.31 	public housing. Priority must be given to those developments with resident families with 
151.32 	the lowest income. The development may be financed by the agency or other public or 
151.33 	private lenders. Direct rental subsidies must be administered by the agency for the benefit 
152.1 	of eligible families. Financial assistance provided under this subdivision to recipients of aid 
152.2 	to families with dependent children must be in the form of vendor payments whenever 
152.3 	possible. Loans, grants, and direct rental subsidies under this subdivision may be made only 
152.4 	with specific appropriations by the legislature. The limitations on eligible mortgagors 
152.5 	contained in section 462A.03, subdivision 13, do not apply to loans for the recapitalization 
152.6 	or rehabilitation of existing housing under this subdivision.

152.7 	Sec. 21. Minnesota Statutes 2023 Supplement, section 462A.22, subdivision 1, is amended 
152.8 	to read:
152.9 		Subdivision 1.Debt ceiling. The aggregate principal amount of general obligation bonds 
152.10 	and notes which are outstanding at any time, excluding the principal amount of any bonds 
152.11 	and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of 
152.12 	$5,000,000,000 $7,000,000,000.

152.13 	Sec. 22. Minnesota Statutes 2022, section 462A.222, is amended by adding a subdivision 
152.14 	to read:
152.15 		Subd. 5.Limitation on rental increases. (a) This subdivision applies to any project 
152.16 	that is restricted to seniors, as defined by section 462A.37, subdivision 1, paragraph (h), 
152.17 	and that receives low-income housing tax credits provided under section 42 of the Internal 
152.18 	Revenue Code of 1986, as amended. The rent in a project may not increase in any 12-month 
152.19 	period by a percentage more than the greater of:
152.20 	(1) the percentage that benefit amounts for Social Security or Supplemental Security 
152.21 	Income recipients were increased pursuant to United States Code, title 42, sections 415(i) 
152.22 	and 1382f, in the preceding 12-month period; or
152.23 	(2) zero percent.
152.24 	(b) This subdivision does not apply to projects owned by a nonprofit entity or to a unit 
152.25 	occupied by an individual receiving ongoing government-subsidized rental assistance.

152.26 	Sec. 23. Minnesota Statutes 2022, section 462A.35, subdivision 2, is amended to read:
152.27 		Subd. 2.Expending funds. The agency may expend the money in the Minnesota 
152.28 	manufactured home relocation trust fund to the extent necessary to carry out the objectives 
152.29 	of section 327C.095, subdivision 13, by making payments to manufactured home owners, 
152.30 	or other parties approved by the third-party neutral, under subdivision 13, paragraphs (a) 
152.31 	and (e), and to pay the costs of administering the fund. Money in the fund is appropriated 
153.1 	to the agency for these purposes and to the commissioner of management and budget to pay 
153.2 	costs incurred by the commissioner of management and budget to administer the fund.

153.3 	Sec. 24. Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 2, is amended 
153.4 	to read:
153.5 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
153.6 	principal amount of housing infrastructure bonds in one or more series to which the payment 
153.7 	made under this section may be pledged. The housing infrastructure bonds authorized in 
153.8 	this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and 
153.9 	(7), on terms and conditions the agency deems appropriate, made for one or more of the 
153.10 	following purposes:
153.11 	(1) to finance the costs of the construction, acquisition, recapitalization, and rehabilitation 
153.12 	of supportive housing where at least 50 percent of units are set aside for individuals and 
153.13 	families who are without a permanent residence;
153.14 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
153.15 	housing to be used for affordable rental housing or for affordable home ownership and the 
153.16 	costs of new construction of rental housing on abandoned or foreclosed property where the 
153.17 	existing structures will be demolished or removed;
153.18 	(3) to finance that portion of the costs of acquisition of property that is attributable to 
153.19 	the land to be leased by community land trusts to low- and moderate-income home buyers;
153.20 	(4) to finance the acquisition, improvement, and infrastructure of manufactured home 
153.21 	parks under section 462A.2035, subdivision 1b;
153.22 	(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, recapitalization, or 
153.23 	new construction of senior housing;
153.24 	(6) to finance the costs of acquisition, rehabilitation, recapitalization, and replacement 
153.25 	of federally assisted rental housing and for the refinancing of costs of the construction, 
153.26 	acquisition, and rehabilitation of federally assisted rental housing, including providing funds 
153.27 	to refund, in whole or in part, outstanding bonds previously issued by the agency or another 
153.28 	government unit to finance or refinance such costs;
153.29 	(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
153.30 	of single-family housing; and
153.31 	(8) to finance the costs of construction, acquisition, recapitalization, and rehabilitation 
153.32 	of permanent housing that is affordable to households with incomes at or below 50 percent 
154.1 	of the area median income for the applicable county or metropolitan area as published by 
154.2 	the Department of Housing and Urban Development, as adjusted for household size;
154.3 	(9) to finance the recapitalization of a distressed building; and
154.4 	(10) to finance the costs of construction, acquisition, recapitalization, rehabilitation, 
154.5 	conversion, and development of cooperatively owned housing created under chapter 308A 
154.6 	or 308B that is affordable to low- and moderate-income households.
154.7 	(b) Among comparable proposals for permanent supportive housing, preference shall 
154.8 	be given to permanent supportive housing for veterans and other individuals or families 
154.9 	who:
154.10 	(1) either have been without a permanent residence for at least 12 months or at least four 
154.11 	times in the last three years; or
154.12 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
154.13 	times in the last three years.
154.14 	(c) Among comparable proposals for senior housing, the agency must give priority to 
154.15 	requests for projects that:
154.16 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
154.17 	senior households;
154.18 	(2) leverage other sources of funding to finance the project, including the use of 
154.19 	low-income housing tax credits;
154.20 	(3) provide access to services to residents and demonstrate the ability to increase physical 
154.21 	supports and support services as residents age and experience increasing levels of disability; 
154.22 	and
154.23 	(4) include households with incomes that do not exceed 30 percent of the median 
154.24 	household income for the metropolitan area.
154.25 	(d) To the extent practicable, the agency shall balance the loans made between projects 
154.26 	in the metropolitan area and projects outside the metropolitan area. Of the loans made to 
154.27 	projects outside the metropolitan area, the agency shall, to the extent practicable, balance 
154.28 	the loans made between projects in counties or cities with a population of 20,000 or less, 
154.29 	as established by the most recent decennial census, and projects in counties or cities with 
154.30 	populations in excess of 20,000.
155.1 	(e) Among comparable proposals for permanent housing, the agency must give preference 
155.2 	to projects that will provide housing that is affordable to households at or below 30 percent 
155.3 	of the area median income.
155.4 	(f) If a loan recipient uses the loan for new construction or substantial rehabilitation as 
155.5 	defined by the agency on a building containing more than four units, the loan recipient must 
155.6 	construct, convert, or otherwise adapt the building to include:
155.7 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
155.8 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
155.9 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower in at 
155.10 	least one accessible unit as defined by section 1002 of the current State Building Code 
155.11 	Accessibility Provisions for Dwelling Units in Minnesota; and
155.12 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
155.13 	sensory-accessible units that include:
155.14 	(A) soundproofing between shared walls for first and second floor units;
155.15 	(B) no florescent lighting in units and common areas;
155.16 	(C) low-fume paint;
155.17 	(D) low-chemical carpet; and
155.18 	(E) low-chemical carpet glue in units and common areas.
155.19 	Nothing in this paragraph relieves a project funded by the agency from meeting other 
155.20 	applicable accessibility requirements.

155.21 	Sec. 25. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision 
155.22 	to read:
155.23 		Subd. 2j.Additional authorization. In addition to the amount authorized in subdivisions 
155.24 	2 to 2i, the agency may issue up to $50,000,000.

155.25 	Sec. 26. Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 5, is amended 
155.26 	to read:
155.27 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
155.28 	commissioner of management and budget the actual amount of annual debt service on each 
155.29 	series of bonds issued under this section.
156.1 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
156.2 	bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those 
156.3 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
156.4 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
156.5 	the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
156.6 	necessary to make the transfers are appropriated from the general fund to the commissioner 
156.7 	of management and budget.
156.8 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
156.9 	bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those 
156.10 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
156.11 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
156.12 	the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts 
156.13 	necessary to make the transfers are appropriated from the general fund to the commissioner 
156.14 	of management and budget.
156.15 	(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure 
156.16 	bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those 
156.17 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
156.18 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
156.19 	the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts 
156.20 	necessary to make the transfers are appropriated from the general fund to the commissioner 
156.21 	of management and budget.
156.22 	(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
156.23 	bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those 
156.24 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
156.25 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
156.26 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
156.27 	appropriated from the general fund to the commissioner of management and budget.
156.28 	(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
156.29 	bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those 
156.30 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
156.31 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
156.32 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
156.33 	appropriated from the general fund to the commissioner of management and budget.
157.1 	(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
157.2 	bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those 
157.3 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
157.4 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
157.5 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
157.6 	appropriated from the general fund to the commissioner of management and budget.
157.7 	(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
157.8 	bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those 
157.9 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
157.10 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
157.11 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
157.12 	appropriated from the general fund to the commissioner of management and budget.
157.13 	(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure 
157.14 	bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those 
157.15 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
157.16 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
157.17 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
157.18 	appropriated from the general fund to the commissioner of management and budget.
157.19 	(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure 
157.20 	bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those 
157.21 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
157.22 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
157.23 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
157.24 	appropriated from the general fund to the commissioner of management and budget.
157.25 	(j)(k) The agency may pledge to the payment of the housing infrastructure bonds the 
157.26 	payments to be made by the state under this section.

157.27 	Sec. 27. Minnesota Statutes 2023 Supplement, section 462A.39, subdivision 2, is amended 
157.28 	to read:
157.29 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
157.30 	meanings given.
157.31 	(b) "Eligible project area" means a home rule charter or statutory city located outside 
157.32 	of a metropolitan county as defined in section 473.121, subdivision 4, with a population 
157.33 	exceeding 500; a community that has a combined population of 1,500 residents located 
158.1 	within 15 miles of a home rule charter or statutory city located outside a metropolitan county 
158.2 	as defined in section 473.121, subdivision 4; federally recognized Tribal reservations; or 
158.3 	an area served by a joint county-city economic development authority.
158.4 	(c) "Joint county-city economic development authority" means an economic development 
158.5 	authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between 
158.6 	a city and county and excluding those established by the county only.
158.7 	(d) "Market rate residential rental properties" means properties that are rented at market 
158.8 	value, including new modular homes, new manufactured homes, and new manufactured 
158.9 	homes on leased land or in a manufactured home park, and may include rental developments 
158.10 	that have a portion of income-restricted units.
158.11 	(e) "Qualified expenditure" means expenditures for market rate residential rental 
158.12 	properties including acquisition of property; construction of improvements; and provisions 
158.13 	of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing 
158.14 	costs.

158.15 	Sec. 28. Minnesota Statutes 2022, section 462A.40, subdivision 2, is amended to read:
158.16 		Subd. 2.Use of funds; grant and loan program. (a) The agency may award grants and 
158.17 	loans to be used for multifamily and single family developments for persons and families 
158.18 	of low and moderate income. Allowable use of the funds include: gap financing, as defined 
158.19 	in section 462A.33, subdivision 1; new construction; acquisition; rehabilitation; demolition 
158.20 	or removal of existing structures; construction financing; permanent financing; interest rate 
158.21 	reduction; and refinancing.
158.22 	(b) The agency may give preference for grants and loans to comparable proposals that 
158.23 	include regulatory changes or waivers that result in identifiable cost avoidance or cost 
158.24 	reductions, including but not limited to increased density, flexibility in site development 
158.25 	standards, or zoning code requirements.
158.26 	(c) The agency shall separately set aside:
158.27 	(1) at least ten percent of the financing under this section for housing units located in a 
158.28 	township or city with a population of 2,500 or less that is located outside the metropolitan 
158.29 	area, as defined in section 473.121, subdivision 2;
158.30 	(2) at least 35 percent of the financing under this section for housing for persons and 
158.31 	families whose income is 50 percent or less of the area median income for the applicable 
158.32 	county or metropolitan area as published by the Department of Housing and Urban 
158.33 	Development, as adjusted for household size; and
159.1 	(3) at least 25 percent of the financing under this section for single-family housing.
159.2 	(d) If by September 1 of each year the agency does not receive requests to use all of the 
159.3 	amounts set aside under paragraph (c), the agency may use any remaining financing for 
159.4 	other projects eligible under this section.

159.5 	Sec. 29. Minnesota Statutes 2022, section 462A.40, subdivision 3, is amended to read:
159.6 		Subd. 3.Eligible recipients; definitions; restrictions; use of funds. (a) The agency 
159.7 	may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency 
159.8 	must not award a grant or a loan to a disqualified individual or disqualified business.
159.9 	(b) For the purposes of this subdivision disqualified individual means an individual who:
159.10 	(1) an individual who or an individual whose immediate family member made a 
159.11 	contribution to the account in the current or prior taxable year and received a credit certificate;
159.12 	(2) an individual who or an individual whose immediate family member owns the housing 
159.13 	for which the grant or loan will be used and is using that housing as their domicile;
159.14 	(3) an individual who meets the following criteria:
159.15 	(i) the individual is an officer or principal of a business entity; and
159.16 	(ii) that business entity made a contribution to the account in the current or previous 
159.17 	taxable year and received a credit certificate; or
159.18 	(4) an individual who meets the following criteria:
159.19 	(i) the individual directly owns, controls, or holds the power to vote 20 percent or more 
159.20 	of the outstanding securities of a business entity; and
159.21 	(ii) that business entity made a contribution to the account in the current or previous 
159.22 	taxable year and received a credit certificate.
159.23 	(c) For the purposes of this subdivision disqualified business means a business entity 
159.24 	that:
159.25 	(1) made a contribution to the account in the current or prior taxable year and received 
159.26 	a credit certificate;
159.27 	(2) has an officer or principal who is an individual who made a contribution to the 
159.28 	account in the current or previous taxable year and received a credit certificate; or
159.29 	(3) meets the following criteria:
160.1 	(i) the business entity is directly owned, controlled, or is subject to the power to vote 20 
160.2 	percent or more of the outstanding securities by an individual or business entity; and
160.3 	(ii) that controlling individual or business entity made a contribution to the account in 
160.4 	the current or previous taxable year and received a credit certificate.
160.5 	(d) The disqualifications in paragraphs (b) and (c) apply if the taxpayer would be 
160.6 	disqualified either individually or in combination with one or more members of the taxpayer's 
160.7 	family, as defined in the Internal Revenue Code, section 267(c)(4). For purposes of this 
160.8 	subdivision, "immediate family" means the taxpayer's spouse, parent or parent's spouse, 
160.9 	sibling or sibling's spouse, or child or child's spouse. For a married couple filing a joint 
160.10 	return, the limitations in this paragraph subdivision apply collectively to the taxpayer and 
160.11 	spouse. For purposes of determining the ownership interest of a taxpayer under paragraph 
160.12 	(a), clause (4), the rules under sections 267(c) and 267(e) of the Internal Revenue Code 
160.13 	apply.
160.14 	(e) Before applying for a grant or loan, all recipients must sign a disclosure that the 
160.15 	disqualifications under this subdivision do not apply. The Minnesota Housing Finance 
160.16 	Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency 
160.17 	may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
160.18 	(f) The agency may award grants or loans to a city as defined in section 462A.03, 
160.19 	subdivision 21; a federally recognized American Indian tribe or subdivision located in 
160.20 	Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a 
160.21 	housing and redevelopment authority under sections 469.001 to 469.047; a public housing 
160.22 	authority or agency authorized by law to exercise any of the powers granted by sections 
160.23 	469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and 
160.24 	paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible 
160.25 	recipients apply to grants and loans awarded under this paragraph.
160.26 	(g) Except for the set-aside provided in subdivision 2, paragraph (d), Eligible recipients 
160.27 	must use the funds to serve households that meet the income limits as provided in section 
160.28 	462A.33, subdivision 5.

160.29 	Sec. 30. Minnesota Statutes 2022, section 462C.02, subdivision 6, is amended to read:
160.30 		Subd. 6.City. "City" means any statutory or home rule charter city, a county housing 
160.31 	and redevelopment authority created by special law or authorized by its county to exercise 
160.32 	its powers pursuant to section 469.004, or any public body which (a) is the housing and 
160.33 	redevelopment authority in and for a statutory or home rule charter city, the port authority 
161.1 	of a statutory or home rule charter city, or an economic development authority of a city 
161.2 	established under sections 469.090 to 469.108, or a public corporation created pursuant to 
161.3 	section 469.0121, and (b) is authorized by ordinance to exercise, on behalf of a statutory or 
161.4 	home rule charter city, the powers conferred by sections 462C.01 to 462C.10.

161.5 	Sec. 31. Minnesota Statutes 2022, section 469.012, subdivision 2j, is amended to read:
161.6 		Subd. 2j.May be in LLP, LLC, or corporation; bound as if HRA. (a) An authority 
161.7 	may become a member or shareholder in and enter into or form limited partnerships, limited 
161.8 	liability companies, or corporations for the purpose of developing, constructing, rehabilitating, 
161.9 	managing, supporting, or preserving housing projects and housing development projects, 
161.10 	including low-income housing tax credit projects. These limited partnerships, limited liability 
161.11 	companies, or corporations are subject to all of the provisions of sections 469.001 to 469.047
161.12 	and other laws that apply to housing and redevelopment authorities, as if the limited 
161.13 	partnership, limited liability company, or corporation were a housing and redevelopment 
161.14 	authority.
161.15 	(b) An authority may create a public corporation in accordance with section 469.0121 
161.16 	for the purpose of purchasing, owning, and operating real property converted through the 
161.17 	federal Rental Assistance Demonstration program under Public Law 112-55, as amended.

161.18 	EFFECTIVE DATE. This section is effective July 1, 2024.

161.19 	Sec. 32. [469.0121] PUBLIC CORPORATION; RENTAL ASSISTANCE 
161.20 	DEMONSTRATION PROGRAM.
161.21 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
161.22 	the meanings given.
161.23 	(b) "Authority" has the meaning given under section 469.002, subdivision 2.
161.24 	(c) "Board" means the board of directors of a corporation created under this section.
161.25 	(d) "Corporation" means a public corporation created under this section.
161.26 	(e) "RAD" means the federal Rental Assistance Demonstration program under Public 
161.27 	Law 112-55, as amended.
161.28 		Subd. 2.Public corporation created. An authority may create a public corporation to 
161.29 	purchase, own, and operate real property that has been converted through RAD to preserve 
161.30 	and improve public housing properties. A public corporation created under this section is 
161.31 	also a political subdivision of the state and is limited to the powers in this section.
162.1 		Subd. 3.Corporation powers. (a) The corporation has the following general powers:
162.2 	(1) to have succession until dissolved by law;
162.3 	(2) to sue and be sued in its corporate name;
162.4 	(3) to adopt, alter, and use a corporate seal which shall be judicially noticed;
162.5 	(4) to accept, hold, and administer gifts and bequests of money, securities, or other 
162.6 	personal property of whatsoever character, absolutely or in trust, for the purposes for which 
162.7 	the corporation is created. Unless otherwise restricted by the terms of the gift or bequest, 
162.8 	the corporation is authorized to sell, exchange, or otherwise dispose of and to invest or 
162.9 	reinvest in such investments as it may determine from time to time the money, securities, 
162.10 	or other property given or bequeathed to it. The principal of such corporate funds and the 
162.11 	income therefrom, and all other revenues received by it from any source whatsoever shall 
162.12 	be placed in such depositories as the board of directors shall determine and shall be subject 
162.13 	to expenditure for corporate purposes;
162.14 	(5) to enter into contracts generally and to execute all instruments necessary or appropriate 
162.15 	to carry out its corporate purposes;
162.16 	(6) to appoint and prescribe the duties of officers, agents, and employees as may be 
162.17 	necessary to carry out its work and to compensate them;
162.18 	(7) to purchase all supplies and materials necessary for carrying out its purposes;
162.19 	(8) to accept from the United States or the state of Minnesota, or any of their agencies, 
162.20 	money or other assistance whether by gift, loan, or otherwise to carry out its corporate 
162.21 	purposes, and enter into such contracts with the United States or the state of Minnesota, or 
162.22 	any of the agencies of either, or with any of the political subdivisions of the state, as it may 
162.23 	deem proper and consistent with the purposes of this section;
162.24 	(9) to contract and make cooperative agreements with federal, state, and municipal 
162.25 	departments and agencies and private corporations, associations, and individuals for the use 
162.26 	of the corporation property, including but not limited to rental agreements; and
162.27 	(10) to acquire real or personal property or any interest therein in any manner authorized 
162.28 	under section 469.012, subdivision 1g, including by the exercise of eminent domain.
162.29 	(b) A corporation may acquire properties converted under RAD, subject to restrictions 
162.30 	and conditions compatible with funding acquisitions of and improvements to real property 
162.31 	with state general obligation bond proceeds. The commissioner of management and budget 
162.32 	must determine the necessary restrictions and conditions under this paragraph.
163.1 		Subd. 4.Board of directors. (a) A corporation is governed by a board of directors as 
163.2 	follows:
163.3 	(1) a member of the city council from the city in which the corporation is incorporated; 
163.4 	and
163.5 	(2) a commissioner of the authority that created the corporation.
163.6 	(b) The term of a director is six years. Two members of the initial board of directors 
163.7 	must be appointed for terms of four years, and one for a term of two years.
163.8 	(c) Vacancies on the board must be filled by the authority.
163.9 	(d) Board members must not be compensated for their service as board members other 
163.10 	than to be reimbursed for reasonable expenses incurred in connection with their duties as 
163.11 	board members. Reimbursement shall be reviewed each year by the state auditor.
163.12 	(e) The board must annually elect from among its members a chair and other officers 
163.13 	necessary for the performance of its duties.
163.14 		Subd. 5.Bylaws. The board of directors must adopt bylaws and rules as it deems 
163.15 	necessary for the administration of its functions and the accomplishment of its purpose, 
163.16 	including among other matters the establishment of a business office and the rules, the use 
163.17 	of the project-based rental assistance properties, and the administration of corporation funds.
163.18 		Subd. 6.Place of business. The board must locate and maintain the corporation's place 
163.19 	of business in the city in which the authority that created the corporation is located.
163.20 		Subd. 7.Open meetings; data practices. Meetings of the board are subject to chapter 
163.21 	13D and meetings of the board conducted by interactive technology are subject to section 
163.22 	13D.02. The board is subject to chapter 13, the Minnesota Government Data Practices Act, 
163.23 	and shall protect from unlawful disclosure data classified as not public.
163.24 		Subd. 8.Compliance. The corporation must comply with all federal, state, and local 
163.25 	laws, rules, ordinances, and other regulations required to own and operate properties as 
163.26 	project-based rental assistance properties.
163.27 		Subd. 9.Dissolution. Upon dissolution of the corporation for any reason, its wholly 
163.28 	owned assets become property of the authority that created the corporation.

163.29 	EFFECTIVE DATE. This section is effective July 1, 2024.

164.1 	Sec. 33. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 1, is amended 
164.2 	to read:
164.3 		Subdivision 1.Purpose. The purpose of this section is to help metropolitan local 
164.4 	governments to develop and preserve affordable housing and supportive services for residents
164.5 	within their jurisdictions in order to keep families from losing housing and to help those 
164.6 	experiencing homelessness find housing.

164.7 	Sec. 34. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 2, is amended 
164.8 	to read:
164.9 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
164.10 	meanings given:.
164.11 	(1) (b) "City distribution factor" means the number of households in a tier I city that are 
164.12 	cost-burdened divided by the total number of households that are cost-burdened in tier I 
164.13 	cities. The number of cost-burdened households shall be determined using the most recent 
164.14 	estimates or experimental estimates provided by the American Community Survey of the 
164.15 	United States Census Bureau as of May 1 of the aid calculation year;.
164.16 	(2) (c) "Cost-burdened household" means a household in which gross rent is 30 percent 
164.17 	or more of household income or in which homeownership costs are 30 percent or more of 
164.18 	household income;.
164.19 	(3) (d) "County distribution factor" means the number of households in a county that 
164.20 	are cost-burdened divided by the total number of households in metropolitan counties that 
164.21 	are cost-burdened. The number of cost-burdened households shall be determined using the 
164.22 	most recent estimates or experimental estimates provided by the American Community 
164.23 	Survey of the United States Census Bureau as of May 1 of the aid calculation year;.
164.24 	(e) "Locally funded housing expenditures" means expenditures of the aid recipient, 
164.25 	including expenditures by a public corporation or legal entity created by the aid recipient, 
164.26 	that are:
164.27 	(1) funded from the recipient's general fund, a property tax levy of the recipient or its 
164.28 	housing and redevelopment authority, or unrestricted money available to the recipient, but 
164.29 	not including tax increments; and
164.30 	(2) expended on one of the following qualifying activities:
164.31 	(i) financial assistance to residents in arrears on rent, mortgage, utilities, or property tax 
164.32 	payments;
165.1 	(ii) support services, case management services, and legal services for residents in arrears 
165.2 	on rent, mortgage, utilities, or property tax payments;
165.3 	(iii) down payment assistance or homeownership education, counseling, and training;
165.4 	(iv) acquisition, construction, rehabilitation, adaptive reuse, improvement, financing, 
165.5 	and infrastructure of residential dwellings;
165.6 	(v) costs of operating emergency shelter, transitional housing, supportive housing, or 
165.7 	publicly owned housing, including costs of providing case management services and support 
165.8 	services; and
165.9 	(vi) rental assistance.
165.10 	(4) (f) "Metropolitan area" has the meaning given in section 473.121, subdivision 2;
165.11 	(5) (g) "Metropolitan county" has the meaning given in section 473.121, subdivision 4;
165.12 	(6) (h) "Population" has the meaning given in section 477A.011, subdivision 3; and
165.13 	(7) (i) "Tier I city" means a statutory or home rule charter city that is a city of the first, 
165.14 	second, or third class and is located in a metropolitan county.

165.15 	Sec. 35. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 4, is amended 
165.16 	to read:
165.17 		Subd. 4.Qualifying projects. (a) Qualifying projects shall include:
165.18 	(1) emergency rental assistance for households earning less than 80 percent of area 
165.19 	median income as determined by the United States Department of Housing and Urban 
165.20 	Development;
165.21 	(2) financial support to nonprofit affordable housing providers in their mission to provide 
165.22 	safe, dignified, affordable and supportive housing; and
165.23 	(3) projects designed for the purpose of construction, acquisition, rehabilitation, 
165.24 	demolition or removal of existing structures, construction financing, permanent financing, 
165.25 	interest rate reduction, refinancing, and gap financing of housing to provide affordable 
165.26 	housing to households that have incomes which do not exceed, for homeownership projects, 
165.27 	115 percent of the greater of state or area median income as determined by the United States 
165.28 	Department of Housing and Urban Development, and for rental housing projects, 80 percent 
165.29 	of the greater of state or area median income as determined by the United States Department 
165.30 	of Housing and Urban Development, except that the housing developed or rehabilitated 
165.31 	with funds under this section must be affordable to the local work force;
166.1 	(4) financing the operations and management of financially distressed residential 
166.2 	properties;
166.3 	(5) funding of supportive services or staff of supportive services providers for supportive 
166.4 	housing as defined by section 462A.37, subdivision 1. Financial support to nonprofit housing 
166.5 	providers to finance supportive housing operations may be awarded as a capitalized reserve 
166.6 	or as an award of ongoing funding; and
166.7 	(6) costs of operating emergency shelter facilities, including the costs of providing 
166.8 	services.
166.9 	Projects shall be prioritized (b) Recipients must prioritize projects that provide affordable 
166.10 	housing to households that have incomes which do not exceed, for homeownership projects, 
166.11 	80 percent of the greater of state or area median income as determined by the United States 
166.12 	Department of Housing and Urban Development, and for rental housing projects, 50 percent 
166.13 	of the greater of state or area median income as determined by the United States Department 
166.14 	of Housing and Urban Development. Priority may be given to projects that: reduce disparities 
166.15 	in home ownership; reduce housing cost burden, housing instability, or homelessness; 
166.16 	improve the habitability of homes; create accessible housing; or create more energy- or 
166.17 	water-efficient homes.
166.18 	(b) (c) Gap financing is either:
166.19 	(1) the difference between the costs of the property, including acquisition, demolition, 
166.20 	rehabilitation, and construction, and the market value of the property upon sale; or
166.21 	(2) the difference between the cost of the property and the amount the targeted household 
166.22 	can afford for housing, based on industry standards and practices.
166.23 	(c) (d) If aid under this section is used for demolition or removal of existing structures, 
166.24 	the cleared land must be used for the construction of housing to be owned or rented by 
166.25 	persons who meet the income limits of paragraph (a).
166.26 	(d) (e) If an aid recipient uses the aid on new construction or substantial rehabilitation 
166.27 	of a building containing more than four units, the loan recipient must construct, convert, or 
166.28 	otherwise adapt the building to include:
166.29 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
166.30 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
166.31 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and
166.32 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
166.33 	sensory-accessible units that include:
167.1 	(A) soundproofing between shared walls for first and second floor units;
167.2 	(B) no florescent lighting in units and common areas;
167.3 	(C) low-fume paint;
167.4 	(D) low-chemical carpet; and
167.5 	(E) low-chemical carpet glue in units and common areas.
167.6 	Nothing in this paragraph relieves a project funded by this section from meeting other 
167.7 	applicable accessibility requirements.

167.8 	Sec. 36. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 5, is amended 
167.9 	to read:
167.10 		Subd. 5.Use of proceeds. (a) Any funds distributed under this section must be spent on 
167.11 	a qualifying project. Funds are considered spent on a qualifying project if:
167.12 	(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that 
167.13 	the city or county cannot expend funds on a qualifying project by the deadline imposed by 
167.14 	paragraph (b) due to factors outside the control of the city or county; and
167.15 	(2) the funds are transferred to a local housing trust fund.
167.16 	Funds transferred to a local housing trust fund under this paragraph must be spent on a 
167.17 	project or household that meets the affordability requirements of subdivision 4, paragraph 
167.18 	(a).
167.19 	(b) Funds must be spent by December 31 in the third year following the year after the 
167.20 	aid was received. The requirements of this paragraph are satisfied if funds are:
167.21 	(1) committed to a qualifying project by December 31 in the third year following the 
167.22 	year after the aid was received; and
167.23 	(2) expended by December 31 in the fourth year following the year after the aid was 
167.24 	received.
167.25 	(c) An aid recipient may not use aid money to reimburse itself for prior expenditures.

167.26 	Sec. 37. Minnesota Statutes 2023 Supplement, section 477A.35, is amended by adding a 
167.27 	subdivision to read:
167.28 		Subd. 5a.Conditions for receipt. (a) As a condition of receiving aid under this section, 
167.29 	a recipient must commit to using money to supplement, not supplant, existing locally funded 
168.1 	housing expenditures, so that they are using the money to create new, or to expand existing, 
168.2 	housing programs.
168.3 	(b) In the annual report required under subdivision 6, a recipient must certify its 
168.4 	compliance with this subdivision, including an accounting of locally funded housing 
168.5 	expenditures in the prior fiscal year. In a tier I city's or county's first report to the Minnesota 
168.6 	Housing Finance Agency, it must document its locally funded housing expenditures in the 
168.7 	two prior fiscal years. If a recipient reduces one of its locally funded housing expenditures, 
168.8 	the recipient must detail the expenditure, the amount of the reduction, and the reason for 
168.9 	the reduction. The certification required under this paragraph must be made available publicly 
168.10 	on the website of the recipient.

168.11 	Sec. 38. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended 
168.12 	to read:
168.13 		Subd. 6.Administration. (a) The commissioner of revenue must compute the amount 
168.14 	of aid payable to each tier I city and county under this section. By August 1 of each year, 
168.15 	the commissioner must certify the distribution factors of each tier I city and county to be 
168.16 	used in the following year. The commissioner must pay local affordable housing aid annually 
168.17 	at the times provided in section 477A.015, distributing the amounts available on the 
168.18 	immediately preceding June 1 under the accounts established in section 477A.37, subdivisions 
168.19 	2 and 3.
168.20 	(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later 
168.21 	than December 1 of each year, to the Minnesota Housing Finance Agency. The report must 
168.22 	include documentation of the location of any unspent funds distributed under this section 
168.23 	and of qualifying projects completed or planned with funds under this section. If a tier I 
168.24 	city or county fails to submit a report, if a tier I city or county fails to spend funds within 
168.25 	the timeline imposed under subdivision 5, paragraph (b), or if a tier I city or county uses 
168.26 	funds for a project that does not qualify under this section, or if a tier I city or county fails 
168.27 	to meet its requirements of subdivision 5a, the Minnesota Housing Finance Agency shall 
168.28 	notify the Department of Revenue and the cities and counties that must repay funds under 
168.29 	paragraph (c) by February 15 of the following year.
168.30 	(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a 
168.31 	tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or 
168.32 	county received under this section if the city or county:
168.33 	(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
169.1 	(2) spends the funds on anything other than a qualifying project; or
169.2 	(3) fails to submit a report documenting use of the funds.; or
169.3 	(4) fails to meet the requirements of subdivision 5a.
169.4 	(d) The commissioner of revenue must stop distributing funds to a tier I city or county 
169.5 	that requests in writing that the commissioner stop payment or that, in three consecutive 
169.6 	years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to 
169.7 	have failed to use funds, misused funds, or failed to report on its use of funds.
169.8 	(e) The commissioner may resume distributing funds to a tier I city or county to which 
169.9 	the commissioner has stopped payments in the year following the August 1 after the 
169.10 	Minnesota Housing Finance Agency certifies that the city or county has submitted 
169.11 	documentation of plans for a qualifying project. The commissioner may resume distributing 
169.12 	funds to a tier I city or county to which the commissioner has stopped payments at the 
169.13 	request of the city or county in the year following the August 1 after the Minnesota Housing 
169.14 	Finance Agency certifies that the city or county has submitted documentation of plans for 
169.15 	a qualifying project.
169.16 	(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph 
169.17 	(c) must be deposited in the housing development fund. Funds deposited under this paragraph 
169.18 	are appropriated to the commissioner of the Minnesota Housing Finance Agency for use 
169.19 	on the family homeless prevention and assistance program under section 462A.204, the 
169.20 	economic development and housing challenge program under section 462A.33, and the 
169.21 	workforce and affordable homeownership development program under section 462A.38.

169.22 	Sec. 39. Laws 2023, chapter 37, article 1, section 2, subdivision 2, is amended to read:

169.23	Subd. 2.Challenge Program
 		60,425,000
		60,425,000
	
169.24 	(a) This appropriation is for the economic 
169.25 	development and housing challenge program 
169.26 	under Minnesota Statutes, sections 462A.33
169.27 	and 462A.07, subdivision 14.
169.28 	(b) Of this amount, $6,425,000 each year shall 
169.29 	be made available during the first 11 months 
169.30 	of the fiscal year exclusively for housing 
169.31 	projects for American Indians. Any funds not 
169.32 	committed to housing projects for American 
169.33 	Indians within the annual consolidated request 
170.1 	for funding processes may be available for 
170.2 	any eligible activity under Minnesota Statutes, 
170.3 	sections 462A.33 and 462A.07, subdivision 
170.4 	14.
170.5 	(c) Of the amount in the first year, $5,000,000 
170.6 	is for a grant to Urban Homeworks to expand 
170.7 	initiatives pertaining to deeply affordable 
170.8 	homeownership in Minneapolis neighborhoods 
170.9 	with over 40 percent of residents identifying 
170.10 	as Black, Indigenous, or People of Color and 
170.11 	at least 40 percent of residents making less 
170.12 	than 50 percent of the area median income. 
170.13 	The grant is to be used for acquisition, 
170.14 	rehabilitation, gap financing as defined in 
170.15 	section 462A.33, subdivision 1, and 
170.16 	construction of homes to be sold to households 
170.17 	with incomes of 50 to at or below 60 percent 
170.18 	of the area median income. This is a onetime 
170.19 	appropriation, and is available until June 30, 
170.20 	2027. By December 15 each year until 2027, 
170.21 	Urban Homeworks must submit a report to 
170.22 	the chairs and ranking minority members of 
170.23 	the legislative committees having jurisdiction 
170.24 	over housing finance and policy. The report 
170.25 	must include the amount used for (1) 
170.26 	acquisition, (2) rehabilitation, and (3) 
170.27 	construction of housing units, along with the 
170.28 	number of housing units acquired, 
170.29 	rehabilitated, or constructed, and the amount 
170.30 	of the appropriation that has been spent. If any 
170.31 	home was sold or transferred within the year 
170.32 	covered by the report, Urban Homeworks must 
170.33 	include the price at which the home was sold, 
170.34 	as well as how much was spent to complete 
170.35 	the project before sale.
171.1 	(d) Of the amount in the first year, $2,000,000 
171.2 	is for a grant to Rondo Community Land 
171.3 	Trust. This is a onetime appropriation.
171.4 	(e) The base for this program in fiscal year 
171.5 	2026 and beyond is $12,925,000.

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

171.7 	Sec. 40. Laws 2023, chapter 37, article 1, section 2, subdivision 32, is amended to read:

171.8	Subd. 32.Northland Foundation
 		1,000,000
		-0-
	
171.9 	This appropriation is for a grant to Northland 
171.10 	Foundation for use on expenditures authorized 
171.11 	under Minnesota Statutes, section 462C.16, 
171.12 	subdivision 3, to assist and support 
171.13 	communities in providing housing locally, and 
171.14 	on for assisting local governments to establish 
171.15 	local or regional housing trust funds. 
171.16 	Northland Foundation may award grants and 
171.17 	loans to other entities to expend on authorized 
171.18 	expenditures under this section. This 
171.19 	appropriation is onetime and available until 
171.20 	June 30, 2025.

171.21 	Sec. 41. Laws 2023, chapter 37, article 2, section 12, subdivision 2, is amended to read:
171.22 		Subd. 2.Eligible homebuyer. For the purposes of this section, an "eligible homebuyer" 
171.23 	means an individual:
171.24 	(1) whose income is at or below 130 percent of area median income;
171.25 	(2) who resides in a census tract where at least 60 percent of occupied housing units are 
171.26 	renter-occupied, based on the most recent estimates or experimental estimates provided by 
171.27 	the American Community Survey of the United States Census Bureau;
171.28 	(3) (2) who is financing the purchase of an eligible property with an interest-free, 
171.29 	fee-based mortgage; and
171.30 	(4) (3) who is a first-time homebuyer as defined by Code of Federal Regulations, title 
171.31 	24, section 92.2.

172.1 	Sec. 42. TASK FORCE ON LONG-TERM SUSTAINABILITY OF AFFORDABLE 
172.2 	HOUSING.
 172.3 		Subdivision 1.Establishment. A task force is established to study the financial health 
172.4 	and stability of affordable housing providers and to provide recommendations to the 
172.5 	Minnesota legislature to promote long-term sustainability of affordable housing providers, 
172.6 	prevent loss of affordable units, and promote housing security for renters.
172.7 		Subd. 2.Duties. (a) The task force must assess underlying financial challenges for 
172.8 	affordable housing providers in their pursuit of developing and preserving safe, affordable, 
172.9 	and dignified housing, including examining:
172.10 	(1) factors that are leading to increasing costs, including but not limited to insurance 
172.11 	rates, security costs, and rehabilitation needs;
172.12 	(2) factors that are leading to declining revenues for affordable housing providers, 
172.13 	including but not limited to loss of rent and vacancy issues;
172.14 	(3) the significant financial needs across the entire sector of affordable housing providers; 
172.15 	and
172.16 	(4) the potential impact of loss of housing units under current conditions.
172.17 	(b) The task force must evaluate the current financing and administrative tools that are 
172.18 	being deployed to support housing providers and their effectiveness, including examining:
172.19 	(1) current funding needs, financing programs, and the availability of funding to assess 
172.20 	the level of funding as it relates to overall needs;
172.21 	(2) administrative tools utilized by the Minnesota Housing Finance Agency to support 
172.22 	affordable housing providers; and
172.23 	(3) the effectiveness of current funding programs and tools.
172.24 	(c) The task force must evaluate potential solutions to address identified financial 
172.25 	challenges for affordable housing providers, including:
172.26 	(1) additional funding for existing programs and tools;
172.27 	(2) new financial tools, including new uses of housing infrastructure bonds;
172.28 	(3) mechanisms to fund supportive services in the development process for new affordable 
172.29 	housing projects;
172.30 	(4) underwriting practices at the Minnesota Housing Finance Agency; and
173.1 	(5) recommendations for changes to financial or management practices for affordable 
173.2 	housing providers.
173.3 		Subd. 3.Meetings and report. The Minnesota Housing Finance Agency shall convene 
173.4 	the first meeting of the task force no later than August 31, 2024, and shall provide accessible 
173.5 	physical or virtual meeting space as necessary for the task force to conduct its work. The 
173.6 	task force must submit final recommendations to the house of representatives and senate 
173.7 	housing committees and for the commissioner of the Minnesota Housing Finance Agency 
173.8 	no later than February 1, 2025.
173.9 		Subd. 4.Membership. The task force shall consist of 13 members representing a cross 
173.10 	section of the affordable housing industry and relevant agency staff. The chair of the house 
173.11 	of representatives committee with jurisdiction over housing finance shall appoint four 
173.12 	members. The chair of the senate committee with jurisdiction over housing finance shall 
173.13 	appoint four members. The commissioner of the Minnesota Housing Finance Agency shall 
173.14 	appoint five members. Members must be appointed no later than July 1, 2024.
173.15 		Subd. 5.Expiration. The task force expires upon submission of the final 
173.16 	recommendations required under subdivision 4.

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

173.18 	Sec. 43. DIRECTION TO COMMISSIONERS OF HUMAN SERVICES AND THE 
173.19 	MINNESOTA HOUSING FINANCE AGENCY; EMERGENCY ASSISTANCE 
173.20 	PROGRAM MODIFICATIONS.
 173.21 	(a) The commissioner of the Minnesota Housing Finance Agency, in consultation with 
173.22 	the commissioner of human services, shall develop program recommendations for emergency 
173.23 	rental assistance that have the flexibility to provide relief for crises within a time frame that 
173.24 	corresponds to the emergency and that are simple enough for applicants to understand across 
173.25 	all emergency rental assistance programs. In the development of these recommendations, 
173.26 	the commissioners must:
173.27 	(1) recognize differences between administrative and legislative authority and propose 
173.28 	legislative changes to the definition of emergency general assistance;
173.29 	(2) adopt policies and practices that prioritize easy-to-understand eligibility criteria and 
173.30 	definitions that prioritize accessible, culturally responsive, and trauma-informed approaches 
173.31 	when assisting persons through a crisis; and
173.32 	(3) develop guidance to emergency rental assistance program administrators that 
173.33 	encourage the program administrators to be flexible with the required forms of documentation 
174.1 	for the program and to avoid establishing documentation requirements that are likely to be 
174.2 	barriers to participation in emergency rental assistance for eligible households.
174.3 	(b) For the purposes of this section, the following terms have the meanings given:
174.4 	(1) "culturally responsive" means agencies, programs, and providers of services respond 
174.5 	respectfully and effectively to people of all cultures, languages, classes, races, ethnic 
174.6 	backgrounds, disabilities, religions, genders, sexual orientations, and other identities in a 
174.7 	manner that recognizes, values, and affirms differences and eliminates barriers to access; 
174.8 	and
174.9 	(2) "trauma-informed" means to recognize that many people have experienced trauma 
174.10 	in their lifetime and that programs must be designed to respond to people with respect and 
174.11 	accommodate the needs of people who have or are currently experiencing trauma.

174.12 	Sec. 44. E-SIGNATURE OPTIONS FOR RENTAL ASSISTANCE.
 174.13 	The commissioner of the Minnesota Housing Finance Agency and the commissioner of 
174.14 	human services are encouraged to develop uniform e-signature options to be used in 
174.15 	applications for emergency general assistance, emergency assistance, and family homeless 
174.16 	prevention and assistance program assistance.

174.17 	Sec. 45. LANGUAGE ACCESS IN APPLICATIONS FOR RENTAL ASSISTANCE.
 174.18 	The commissioner of the Minnesota Housing Finance Agency and the commissioner of 
174.19 	human services shall research state and federal laws and regulations to determine language 
174.20 	access standards applying to the organizations' emergency general assistance, emergency 
174.21 	assistance, and family homelessness prevention and assistance programs and shall ensure 
174.22 	compliance with all applicable language access requirements. The commissioners are 
174.23 	encouraged to identify specific languages into which program materials could be translated 
174.24 	to improve access to emergency general assistance, emergency assistance, and family 
174.25 	homeless prevention and assistance program assistance and shall translate the materials into 
174.26 	the identified languages. The commissioners are encouraged to develop and implement a 
174.27 	plan to translate any website applications for emergency general assistance, emergency 
174.28 	assistance, and family homeless prevention and assistance program assistance into 
174.29 	multilingual website applications.

174.30 	Sec. 46. VERIFICATION PROCEDURES FOR RENTAL ASSISTANCE.
 174.31 	(a) The commissioner of the Minnesota Housing Finance Agency, in consultation with 
174.32 	the commissioner of human services, is encouraged to consult with local officials to develop 
175.1 	recommendations aimed at simplifying the process of verifying the information in 
175.2 	applications for emergency general assistance, emergency assistance, and family homeless 
175.3 	prevention and assistance program assistance. In developing recommendations, the 
175.4 	commissioners must consider:
175.5 	(1) allowing self-attestation of emergencies, assets, and income;
175.6 	(2) allowing verbal authorization by applicants to allow emergency rental assistance 
175.7 	administrators to communicate with landlords and utility providers regarding applications 
175.8 	for assistance; and
175.9 	(3) allowing landlords to apply for emergency rental assistance on tenants' behalf.
175.10 	(b) The commissioners are encouraged to:
175.11 	(1) prepare recommendations by January 1, 2025; and
175.12 	(2) report those recommendations to the chairs and ranking minority members of the 
175.13 	legislative committees having jurisdiction over housing.

175.14 	Sec. 47. HOUSING AFFORDABILITY PRESERVATION INVESTMENT.
 175.15 		Subdivision 1.Establishment. The commissioner of the Minnesota Housing Finance 
175.16 	Agency must establish and administer a grant program to support recapitalization of distressed 
175.17 	buildings.
175.18 		Subd. 2.Definitions. For purposes of this section:
175.19 	(1) "distressed building" means an existing rental housing building in which the units 
175.20 	are restricted to households at or below 60 percent of the area median income, and that:
175.21 	(i) is in foreclosure proceedings;
175.22 	(ii) has two or more years of negative net operating income;
175.23 	(iii) has two or more years with a debt service coverage ratio of less than one; or
175.24 	(iv) has necessary costs of repair, replacement, or maintenance that exceed the project 
175.25 	reserves available for those purposes; and
175.26 	(2) "recapitalization" means financing for the physical and financial needs of a distressed 
175.27 	building, including restructuring and forgiveness of amortizing and deferred debt, principal 
175.28 	and interest paydown, interest rate write-down, deferral of debt payments, mortgage payment 
175.29 	forbearance, deferred maintenance, security services, property insurance, capital 
175.30 	improvements, funding of reserves for supportive services, and property operations.
176.1 		Subd. 3.Grant program. The commissioner must use a request for proposal process 
176.2 	to consider funding requests and award grants to finance recapitalization of distressed 
176.3 	buildings. In awarding grants, the commissioner must give priority to distressed buildings 
176.4 	most at risk of losing affordable housing.
176.5 		Subd. 4.Report. By February 1, 2025, and November 30, 2025, the commissioner shall 
176.6 	submit a report to the chairs and ranking minority members of the legislative committees 
176.7 	having jurisdiction over housing and homelessness. The report must detail the number of 
176.8 	applications received, the amount of funding requested, the grants awarded, and the number 
176.9 	of affordable housing units preserved through awards under this section.

176.10 	Sec. 48. REVISOR INSTRUCTION.
 176.11 	(a) If H.F. 3800 or another substantively similar bill that establishes a new cooperative 
176.12 	chapter coded as Minnesota Statutes, chapter 308C, is enacted during the 2024 legislative 
176.13 	session, the revisor of statutes must add "308C" to the list of chapters referenced in Minnesota 
176.14 	Statutes, section 462A.37, subdivision 2, paragraph (a), clause (10), as amended in this act.
176.15 	(b) The revisor of statutes shall renumber Minnesota Statutes, section 462A.37, 
176.16 	subdivision 2i, as Minnesota Statutes, section 462A.37, subdivision 3a. The revisor shall 
176.17 	also make necessary cross-reference changes in Minnesota Statutes.

176.18 	ARTICLE 15
176.19 	DISCRIMINATION; CIC; WORKING GROUP

176.20 	Section 1. [504B.505] DISCRIMINATION; HOUSING ASSISTANCE.
176.21 	(a) A landlord must not discriminate against a tenant based on the tenant's use of federal, 
176.22 	state, or local government rental assistance; a housing choice voucher program; or another 
176.23 	form of public assistance that helps a tenant pay rent; or refuse to rent to a tenant because 
176.24 	the landlord may be responsible for meeting the terms and conditions of a public assistance 
176.25 	program. A landlord must not deny a tenant or prospective tenant a viewing or application 
176.26 	for a rental unit, deny them the opportunity to rent a unit, or discriminate against a tenant 
176.27 	or prospective tenant who uses rental assistance or a housing choice voucher. A landlord 
176.28 	cannot advertise that they will not rent to a tenant who uses rental assistance or a housing 
176.29 	choice voucher program.
176.30 	(b) A violation of this section is an unfair discriminatory practice under section 363A.09, 
176.31 	and an individual has all the rights and remedies available under chapter 363A.

177.1 	Sec. 2. Laws 2023, chapter 52, article 19, section 120, is amended to read:
177.2 	Sec. 120. EFFECTIVE DATE.
 177.3 	Sections 117 to and 119 are effective January 1, 2024. Section 118 is effective January 
177.4 	1, 2024, and applies to cases filed before, on, or after that date.

177.5 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2024.

177.6 	Sec. 3. WORKING GROUP ON COMMON INTEREST COMMUNITIES AND 
177.7 	HOMEOWNERS ASSOCIATIONS.
 177.8 		Subdivision 1.Creation; duties. (a) A working group is created to study the prevalence 
177.9 	and impact of common interest communities (CICs) and homeowners associations (HOAs) 
177.10 	in Minnesota and how the existing laws regulating CICs and HOAs help homeowners and 
177.11 	tenants access safe and affordable housing. The working group shall study:
177.12 	(1) how many CICs and HOAs exist, how many people may reside in those housing 
177.13 	units, and where they are located in the state;
177.14 	(2) the governing documents commonly used by CICs and HOAs and whether the 
177.15 	governing documents or common practices create barriers for participation by homeowners 
177.16 	in the board of directors for CICs or HOAs;
177.17 	(3) the fees and costs commonly associated with CICs and HOAs and how those fees 
177.18 	have increased, including the cost of outside management, accounting, and attorney fees 
177.19 	that are assessed to owners and residents;
177.20 	(4) whether there should be uniform, statutory standards regarding fees, fines, and costs 
177.21 	assessed to residents;
177.22 	(5) how the organization and management of CICs and HOAs, including boards and 
177.23 	management companies, impact the affordability of CICs and HOAs;
177.24 	(6) the impact of CICs and HOAs on the housing market and housing costs;
177.25 	(7) the racial disparity in homeownership as it relates to CICs and HOAs;
177.26 	(8) the accessibility and affordability of CICs and HOAs for Minnesotans with disabilities;
177.27 	(9) how other states regulate CICs and HOAs and best practices related to board 
177.28 	transparency, dispute resolution, and foreclosures; and
177.29 	(10) how the current laws governing CICs and HOAs may be consolidated and reformed 
177.30 	for clarity and to improve the experience of homeowners and residents in CICs and HOAs.
178.1 	(b) The focus and duties of the working group shall be to recommend legislative reforms 
178.2 	or other methods to regulate CICs and HOAs, including the consolidation or recodification 
178.3 	of existing chapters regulating CICs and HOAs.
178.4 		Subd. 2.Membership. The working group shall consist of the following:
178.5 	(1) two members of the house of representatives, one appointed by the speaker of the 
178.6 	house and one appointed by the minority leader;
178.7 	(2) two members of the senate, one appointed by the senate majority leader and one 
178.8 	appointed by the senate minority leader;
178.9 	(3) one member from the Minnesota Homeownership Center;
178.10 	(4) one member from the Community Associations Institute;
178.11 	(5) one member from a business association that supports, educates, or provides services 
178.12 	to CICs and HOAs in Minnesota designated by the commissioner of commerce;
178.13 	(6) one member from a legal aid association familiar with housing laws and representing 
178.14 	low-income clients;
178.15 	(7) one member from the Minnesota Association of Realtors;
178.16 	(8) one member who is an attorney who regularly works advising homeowners or 
178.17 	residents in CICs and HOAs and is familiar with the state foreclosure laws designed by the 
178.18 	State Bar Association;
178.19 	(9) one member who is an attorney who regularly works advising CIC and HOA boards 
178.20 	designated by the State Bar Association;
178.21 	(10) one member from a metropolitan area government who is familiar with issues 
178.22 	homeowners and tenants face while living in CICs and HOAs in the metropolitan area;
178.23 	(11) the commissioner of the Minnesota Housing Finance Agency or the commissioner's 
178.24 	designee;
178.25 	(12) one member from the attorney general's office designated by the attorney general;
178.26 	(13) two members who are currently, or have within the last five years, served on a CIC 
178.27 	or HOA board and have knowledge about the management of CIC and HOA boards; and
178.28 	(14) four members who are current or recent owners of a residence that is part of a CIC 
178.29 	or HOA.
178.30 		Subd. 3.Facilitation; organization; meetings. (a) The Management Analysis Division 
178.31 	of Minnesota Management and Budget shall facilitate the working group, provide 
179.1 	administrative assistance, and convene the first meeting by July 15, 2024. Members of the 
179.2 	working group may receive compensation and reimbursement for expenses as authorized 
179.3 	by Minnesota Statutes, section 15.059, subdivision 3.
179.4 	(b) The working group must meet at regular intervals as often as necessary to accomplish 
179.5 	the goals enumerated under subdivision 1. Meetings of the working group are subject to the 
179.6 	Minnesota Open Meeting Law under Minnesota Statutes, chapter 13D.
179.7 		Subd. 4.External consultation. The working group shall consult with other individuals 
179.8 	and organizations that have expertise and experience that may assist the working group in 
179.9 	fulfilling its responsibilities, including entities engaging in additional external stakeholder 
179.10 	input from those with experience living in CICs and HOAs as well as working with the 
179.11 	board of directors for CICs and HOAs.
179.12 		Subd. 5.Report required. The working group shall submit a final report by February 
179.13 	1, 2025, to the chairs and ranking minority members of the legislative committees with 
179.14 	jurisdiction over housing finance and policy, commerce, and real property. The report shall 
179.15 	include recommendations and draft legislation based on the duties and focus for the working 
179.16 	group provided in subdivision 1.
179.17 		Subd. 6.Expiration. The working group expires upon submission of the final report in 
179.18 	subdivision 5, or February 28, 2025, whichever is later.

179.19 	EFFECTIVE DATE. This section is effective the day following final enactment and 
179.20 	expires March 1, 2025.

APPENDIX 

Repealed Minnesota Statutes: H5242-2 

116J.398 BROADBAND PREVAILING WAGE EXEMPTION.
Notwithstanding any other law to the contrary, section 116J.871 does not apply to a project receiving a grant under section 116J.395 for the construction, installation, remodeling, and repair of last-mile infrastructure, as defined under section 116J.394, paragraph (e). 

168.1297 SPECIAL "ROTARY MEMBER" PLATES.Subdivision 1.General requirements and procedures. 
The commissioner shall issue special "Rotary member" plates to an applicant who: 

(1) is a registered owner of a passenger automobile; 

(2) pays a fee in the amount specified for special plates under section 168.12, subdivision 5; 

(3) pays the registration tax required under section 168.013; 

(4) pays the fees required under this chapter; 

(5) submits proof to the commissioner that the applicant is a member of Rotary International; and 

(6) complies with this chapter and rules governing registration of motor vehicles and licensing of drivers. 

Subd. 2.Design. 
A special plate under this section consists of a plate as described in section 168.1291 with a unique emblem that is the recognized emblem of Rotary International. 

Subd. 3.Compliance with other law. 
The commissioner shall take no action under this section unless the commissioner determines that Rotary International, or one or more districts of Rotary International, has complied with section 168.1293, subdivision 2, paragraph (a). Issuance and renewal of plates under this section are subject to section 168.1293, subdivisions 3 to 6. 

179.81 DEFINITIONS.Subdivision 1.Scope. 
For the purposes of sections 179.81 to 179.85, the terms defined in this section have the meanings given them. 

Subd. 2.Area labor-management committee or committee. 
"Area labor-management committee" or "committee" means a committee formed by and composed of multiple employers and multiple labor organizations within a geographic area or statewide employment sector, for the purpose of improving labor-management relations and enhancing economic development within a given geographic jurisdiction or sector through labor-management cooperation. 

Subd. 3.Bureau. 
"Bureau" means the Bureau of Mediation Services. 

Subd. 4.Commissioner. 
"Commissioner" means the commissioner of the Bureau of Mediation Services. 

179.82 GRANT PROGRAM CREATED; APPLICATIONS.Subdivision 1.Creation. 
An area labor-management committee grant program is created within the bureau to be administered by the commissioner. 

Subd. 2.Rules. 
Applications for area/statewide industry labor-management committee grants must be submitted to the bureau under rules adopted by the commissioner. 

179.83 ACTION ON APPLICATION.Subdivision 1.Standard for approval. 
Following an established calendar, the commissioner shall review the applications. Grants must be awarded on a competitive basis based on the appropriateness of the proposal, the attainability of the goals, the evidence of interest in the proposal among representatives of labor and management in the area within the committee's jurisdiction, and the thoroughness of the financial plan presented. Successful applicants shall be notified of the award no later than December 1 of each year. 

179.84 GENERAL CONDITIONS AND TERMS OF GRANTS.Subdivision 1.Requirements. 
For each grant awarded the commissioner shall: 

(1) require an approved work plan that establishes measurable goals and objectives for the committee within the committee's area of responsibility and that prohibits the committee from becoming involved in contract disputes, labor negotiations, or grievance procedures; and 

(2) annually review the operating performance of each area labor-management committee receiving state money under this program. 

179.85 FUNDING LIMITATIONS.
A new or existing area labor-management committee may apply for a maximum grant of $75,000 per year. A new or existing area labor-management committee may be awarded state grant money, and must provide money from other nonstate sources, in the following ratio of state and nonstate money: in the first year, 90 percent state and ten percent nonstate; in the second year, 80 percent state and 20 percent nonstate; in the third year and beyond, 50 percent state and 50 percent nonstate. 

5520.0100APPLICATION. 
Parts 5520.0100 to 5520.0800 apply to the preparation, submission, and approval of applications for grants under the Minnesota Area Labor-Management Committee Grant Program. 

5520.0110POLICY. 
Parts 5520.0100 to 5520.0800 shall be liberally construed to accomplish the provisions and purposes of the Minnesota Area Labor-Management Committee Grant Program. 

5520.0120DEFINITIONS. Subpart 1.Scope.  
For the purpose of parts 5520.0100 to 5520.0800, the terms defined in this part have the meanings given them. 

Subp. 2.Application.  
"Application" means a written request for grant funds completed on a form developed by and available from the bureau. 

Subp. 3.Bureau.  
"Bureau" means the Minnesota Bureau of Mediation Services. 

Subp. 4.Commissioner.  
"Commissioner" means the commissioner of the bureau or an authorized agent. 

Subp. 5.Area Labor-Management Committee or committee.  
"Area Labor-Management Committee" or "committee" means an organization of representatives from multiple labor organizations and multiple employer enterprises within a geographic area or statewide employment sector which has as its principle purpose the strengthening of union-management relations within the area or sector. 

Subp. 6.Grant program.  
"Grant program" means the Minnesota Area Labor-Management Committee Grant Program, as created in Minnesota Statutes, sections 179.81 to 179.85. 

Subp. 7.Office of Cooperative Labor-Management Programs.  
"Office of Cooperative Labor-Management Programs" means the office within the bureau created to administer the grant program. 

Subp. 8.
[Repealed, 15 SR 2267] 

5520.0200GRANT APPLICATIONS. Subpart 1.Scope.  
The procedures in this part will be used by the commissioner in receiving and considering grant program applications. 

Subp. 2.Notice and deadline.  
On or before September 1 of each calendar year, the commissioner shall publish a notice of the availability of funds under the grant program in the State Register. An application for a grant must be submitted to the bureau by October 15 of the previous year. 

Subp. 3.Application form and purpose.  
Each application must be on forms available from the bureau and must include a statement of purpose and a description of the Area Labor-Management Committee requesting grant funds. All current committee members and officers must be identified in the application and a brief description of the committee's existing or proposed operating procedures must be included. A copy of the committee bylaws, if adopted, must also accompany the application. 

Subp. 4.Statement of goals.  
The application must include a descriptive statement of the labor-management climate and major issues or problems existing in the committee's area of jurisdiction, as well as the major purpose or goal of the committee in the context of the problems. The goal statement must describe specific changes or outcomes the committee seeks to accomplish through use of grant program funds. Quantifiable, specific goal and problem statements are encouraged. Applicants should avoid broad, generic, overly-generalized statements. 

Subp. 5.Methodology.  
The application must include a description of the approach and methodology to be used by the committee in solving the problems and achieving the goals identified in subpart 4. The application must include an implementation plan setting forth specific and measurable goals and objectives to be accomplished during the grant period, the major action steps to be taken, a timetable indicating when those action steps will be taken, and when goals and objectives will be accomplished. 

Subp. 6.Financial plan.  
The application must include a four-year financial plan detailing the revenues and expenditures anticipated over a four-year period, commencing with the year for which the grant is being requested. The plan must identify the total amount of state funding necessary to carry out the committee's goals and objectives and the money to be raised from other sources to meet the guidelines of the grant program. The plan must be accompanied by a proposed committee budget over the four-year period detailing how all money, including state grant money, is to be expended. Existing committees must also submit copies of actual financial statements for the four-year period preceding the proposed grant period. 

5520.0250GRANT RESTRICTIONS. Subpart 1.Labor negotiations, grievances, or disputes.  
No committee funded, in whole or in part, through the grant program may engage in activities directly or indirectly related to labor negotiations, contract disputes, or grievance procedures. Violation of this subpart is grounds for termination of the grant. 

Subp. 2.Prior obligations.  
No grant money may be used directly or indirectly to cover costs incurred before the effective date of the grant nor to cover costs that are not specifically related to the goals in the application. No finder's fee or other form of payment for successful application shall be permitted in conjunction with the grant program. 

Subp. 3.
[Repealed, 15 SR 2267] 

Subp. 4.Delegation or transfer.  
A successful applicant may not, in whole or in part, delegate or transfer responsibility for the management of the grant or control and use of its funds to any other organization or entity. 

5520.0300GRANT PERIOD AND AMOUNT. Subpart 1.Grant period.  
All grants are awarded for a 12-month period commencing January 1. 

Subp. 2.Amount.  
The amount of each grant will be determined by the commissioner after considering the merits and reasonableness of each application, the total funds available in relationship to the total amounts requested, prior awards and experiences with individual applicants, the usual and customary costs of operating a committee, and the overall purposes and goals of the program. 

Subp. 3.Ratio of state and nonstate funds.  
Regardless of the funds available, no grant will be awarded that would be inconsistent with the following ratio of state and nonstate revenues for the committee: (Year 1 is the first year state funds are received under this program, Year 2 is the second, etc.). 

		Percent Nonstate Revenues	Percent State Revenues	
	Year 1	10	90	
	Year 2	20	80	
	Year 3 & Beyond	50	50	
5520.0500APPLICATION REVIEW PROCEDURES. Subpart 1.Competitive basis.  
All timely and complete applications will be reviewed on a competitive basis. Grants will be awarded by the commissioner in amounts and to parties as deemed consistent with the overall purposes of the grant program. In evaluating applications and awarding grants, the factors described in this part will be considered. 

Subp. 2.Appropriateness.  
The appropriateness of the proposal must be evaluated. Appropriateness includes: 

A.
 consistency of the proposal's purpose with the public policy objectives of the grant program; 

B.
 the extent and history of labor-management activity within the area to be served by the proposed grant; 

C.
 other past or present cooperative labor-management activities within the designated area; 

D.
 the need for public funding of the endeavor; and 

E.
 the reasonableness of proposed expenditures in relationship to benefits to be derived. 

Subp. 3.Attainability of goals.  
The attainability of the goals in the proposal must be evaluated. Attainability includes: 

A.
 ability of the applicant to articulate quantifiable and meaningful goals and activities; 

B.
 evaluation of the applicant's ability and capacity to implement program activities necessary to achieve stated goals; 

C.
 prior success of the applicant in achieving previous program goals; 

D.
 other labor-management activities in the area; and 

E.
 the relationship of the proposed goals with the overall objectives of the grant program. 

Subp. 4.Support for the proposal.  
Evidence of support for the proposal from multiple labor-management representatives within the area will be reviewed. The evidence may be submitted in the form of letters of endorsement, resolutions of support adopted by ad hoc groups, or other form that permits consultation and verification with individual representatives by the bureau. Established committees must attach a copy of the minutes of the meeting at which the proposal was approved and the minutes should reflect the names and organizations of all persons present for the meeting. 

Subp. 5.Financial plans.  
The thoroughness of the four-year financial plan submitted as a part of the proposal, including an analysis of the overall reasonableness of revenue and expense projections; the detail and reasonableness of projected funding sources and amounts; and the detail and reasonableness of projected expenditures will be considered. Established committees must attach copies of actual financial operating statements that reflect annual revenue sources and amounts and expense categories and amounts for each year of the three-year period preceding the current year, as well as for the current year-to-date. 

Subp. 6.Work plans.  
The thoroughness of detailed plans for achieving the major goals and objectives of the committee will be evaluated to determine the ability of the committee to identify key tasks and action steps necessary to the attainment of goals; the designation of appropriate time frames; relevance of work plans to objectives of the grant program; and the extent of planning undertaken by the applicant with regard to its goals. 

Subp. 7.
[Repealed, 15 SR 2267] 

5520.0520WORK PLAN. 
Each grant application must include a work plan that describes the major work steps to be undertaken by the committee during the grant period in achieving its individual goals and objectives. Work plans should describe each area of substantial program activity contemplated by the committee, the key steps necessary to achieving each program activity, and a time frame for determining progress in each activity area. Grantees are responsible for compliance with their work plans and for advising the Office of Cooperative Labor-Management Programs of any significant alterations in the goals, objectives, or work plans of the committee. Written quarterly reports, describing the progress and problems in adhering to the work plan, must accompany financial reports in conformance to the provisions of part 5520.0560. 

5520.0540BUDGET ADJUSTMENTS. 
Grant recipients must consult, in writing, with the Office of Cooperative Labor-Management Programs before making budget adjustments that: 

A.
 result in changes in the scope or objectives of the program in the approved application; 

B.
 result in more grant money available than is necessary to meet the needs of the program; 

C.
 result in a change in the percent of state funds available to the grantee that would be inconsistent with part 5520.0300, subpart 3, or Minnesota Statutes, section 179.85; or 

D.
 amount to ten percent or more of the total grant awarded. 

5520.0560QUARTERLY REPORTS. 
Each grant recipient must file detailed financial and activity reports on a quarterly basis in accordance with the following schedule: 

A.
 Period covered: January 1 to March 31, date due: April 20; 

B.
 Period covered: April 1 to June 30, date due: July 20; 

C.
 Period covered: July 1 to September 30, date due: October 20; and 

D.
 Period covered: October 1 to December 31, date due: January 20. 

5520.0600ACCOUNTING SYSTEM. 
Each grant recipient must establish and maintain a system of financial management of the grant that complies with accepted accounting practices. The system must provide accurate, current, and complete information on the financial status of each grant-supported activity and must include the generation of periodic reports indicating the allocation of funds by activity, the amount expended, and the amount obligated. Each dollar of Area Labor-Management Committee Grant Program money must be traceable through the accounting system. 

All accounting documents must be supported by source documentation such as payroll records, invoices, and purchase vouchers. All employees paid in whole or in part from grant funds must prepare time sheets reflecting the number of hours worked on grant activities during the pay period and the payroll must be based on these time sheets. Any purchase of services agreement entered into by the committee must specify the amount and nature of services to be provided in a manner that facilitates determination of an hourly or per-unit rate for those services. 

5520.0620AUDITS. Subpart 1.Financial and compliance audits.  
All grant recipients must arrange for and undergo a financial and compliance audit at least once every two years. The audits must be performed by qualified individuals who are independent of those persons who authorize, manage, and carry out the expenditure of funds to ensure unbiased opinions, conclusions, or judgments. Grant recipients are responsible for arranging and paying for these audits. The purpose of the audit is to report on whether: 

A.
 the financial operations have been conducted properly; 

B.
 financial and other reports submitted as a part of the program have been presented fairly and accurately; 

C.
 the grantee has complied with applicable laws, regulations, and policies; 

D.
 resources are used and managed in an economic and efficient manner; and 

E.
 program objectives and results are being effectively and economically achieved. 

Normal accepted auditing methods and standards must be applied in the performance of this audit. Should an auditor become aware of irregularities in financial or programmatic performance, the auditor must promptly notify the commissioner of those irregularities and, if appropriate, higher grantee management officials than the level at which irregularities appear to lie. 

Subp. 2.Audit reports.  
A written audit report shall be prepared and include: 

A.
 a statement of the standards used in the performance of the audit; 

B.
 financial statements and audit comments on the statements for the period; 

C.
 audit comments regarding compliance and internal control; and 

D.
 comments regarding the accuracy and completeness of financial and program reports filed by the grantee. 

Three copies of the written audit report must be provided to the commissioner and a copy shall be made available to each member of the committee. 

5520.0700INITIAL PAYMENTS. 
No grant payments will be issued until the grant application and required work plans have received final approval by the commissioner and a written grant contract has been executed and approved. 

5520.0710SUBSEQUENT PAYMENTS. 
Subsequent grant payments will be made on a quarterly basis based on submission of a payment request form and other required reports. When computing requests for payment, the recipient should first apply any unused portions of a previous grant payment toward the next month's anticipated expenditures. 

5520.0800TERMINATION OF GRANTS. Subpart 1.General.  
Grants shall be suspended, terminated, or withdrawn, in whole or in part, by the commissioner if funds provided are used in a manner inconsistent with the policies of parts 5520.0100 to 5520.0800, or if it appears that funds are being used in a manner inconsistent with the stated goals and purpose of the grant application or approved amendments. Grants shall also be suspended, terminated, or withdrawn if it appears that the applicant is unable or unwilling to fulfill responsibilities set forth in the application. 

Subp. 2.Notice.  
In the event the commissioner believes that there is reason to suspend, terminate, or withdraw a grant, the commissioner shall provide written notice to the grant recipient stating the nature of the contemplated action, the anticipated effective date, and the reasons for the action. The grant recipient may submit a written response to the notice within five working days of receipt of the notice from the commissioner. After investigating the situation, including any information provided by the committee in response to the commissioner's notice, the commissioner shall determine final action with regard to suspension, termination, or withdrawal of the grant. The commissioner shall provide written notice of the final determination to all interested parties. 

7410.6180COMMERCIAL MOTOR VEHICLE TESTING PROGRAM. 
A public, postsecondary educational institution or school as described in part 7410.6100 applying to be a third-party testing program for commercial motor vehicles shall offer a training course for commercial motor vehicle operation that consists of at least 180 hours of training.