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

2.21 	ARTICLE 1
2.22 	TRANSPORTATION APPROPRIATIONS

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

2.35				APPROPRIATIONS
	
2.36				Available for the Year
	
2.37				Ending June 30
	
2.38					2024
		2025

2.39
2.40	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

2.41	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. Minnesota Statutes 2023 Supplement, section 174.38, subdivision 3, is amended 
43.17 	to read:
43.18 		Subd. 3.Active transportation accounts. (a) An active transportation account is 
43.19 	established in the special revenue fund. The account consists of funds provided by law and 
43.20 	any other money donated, allotted, transferred, or otherwise provided to the account. Money 
43.21 	in the account is annually appropriated to the commissioner and must be expended only on 
43.22 	projects that receive financial assistance as provided under this section.
43.23 	(b) An active transportation account is established in the bond proceeds fund. The account 
43.24 	consists of state bond proceeds appropriated to the commissioner. Money in the account 
43.25 	may only be expended on bond-eligible costs of a project receiving financial assistance as 
43.26 	provided under this section. Money in the account may only be expended on a project that 
43.27 	is publicly owned.
43.28 	(c) An active transportation account is established in the general fund. The account 
43.29 	consists of money as provided by law and any other money donated, allotted, transferred, 
43.30 	or otherwise provided to the account. Money in the account may only be expended on a 
43.31 	project receiving financial assistance as provided under this section.

44.1 	Sec. 36. Minnesota Statutes 2023 Supplement, section 174.38, subdivision 6, is amended 
44.2 	to read:
44.3 		Subd. 6.Use of funds. (a) The commissioner must determine permissible uses of financial 
44.4 	assistance funds available under this section, which are limited to:
44.5 	(1) construction and maintenance of bicycle, trail, and pedestrian infrastructure, including 
44.6 	but not limited to safe routes to school infrastructure and bicycle facilities and centers; and
44.7 	(2) noninfrastructure programming, including activities as specified in section 174.40, 
44.8 	subdivision 7a, paragraph (b); and
44.9 	(3) as provided in this subdivision.
44.10 	(b) Of the amount made available in each fiscal year, the first $500,000 is for grants to 
44.11 	develop, maintain, and implement active transportation safety curriculum for youth ages 
44.12 	five to 14 years old, and if remaining funds are available, for (1) youth ages 15 to 17 years 
44.13 	old, (2) adult active transportation safety programs, and (3) adult learn-to-ride programs. 
44.14 	The curriculum must include resources for teachers and must meet the model training 
44.15 	materials requirements under section 123B.935, subdivision 4.
44.16 	(c) Of the amount made available, $245,000 in each of fiscal years 2025 to 2028 is for 
44.17 	costs related to complete streets implementation training under section 174.75, subdivision 
44.18 	2a.

44.19 	Sec. 37. [174.595] TRANSPORTATION FACILITIES CAPITAL PROGRAM.
44.20 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
44.21 	the meanings given.
44.22 	(b) "Capital building asset" includes but is not limited to district headquarters buildings, 
44.23 	truck stations, salt storage or other unheated storage buildings, deicing and anti-icing 
44.24 	facilities, fuel dispensing facilities, highway rest areas, and vehicle weigh and inspection 
44.25 	stations.
44.26 	(c) "Commissioner" means the commissioner of transportation.
44.27 	(d) "Department" means the Department of Transportation.
44.28 	(e) "Program" means the transportation facilities capital program established in this 
44.29 	section.
45.1 		Subd. 2.Program established. The commissioner must establish a transportation 
45.2 	facilities capital program in conformance with this section to provide for capital building 
45.3 	asset projects related to buildings and other capital facilities of the department.
45.4 		Subd. 3.Transportation facilities capital accounts. (a) A transportation facilities 
45.5 	capital account is established in the trunk highway fund. The account consists of money 
45.6 	appropriated from the trunk highway fund for the purposes of the program and any other 
45.7 	money donated, allotted, transferred, or otherwise provided to the account by law.
45.8 	(b) A transportation facilities capital subaccount is established in the bond proceeds 
45.9 	account in the trunk highway fund. The subaccount consists of trunk highway bond proceeds 
45.10 	appropriated to the commissioner for the purposes of the program. Money in the subaccount 
45.11 	may only be expended on trunk highway purposes, including the purposes specified in this 
45.12 	section.
45.13 		Subd. 4.Implementation standards. The commissioner must establish a process to 
45.14 	implement the program that includes allocation of funding based on review of eligible 
45.15 	projects as provided under subdivision 5 and prioritization as provided under subdivision 
45.16 	6. The process must be in conformance with trunk highway fund uses for the purposes of 
45.17 	constructing, improving, and maintaining the trunk highway system in the state pursuant 
45.18 	to the Minnesota Constitution, article XIV.
45.19 		Subd. 5.Eligible expenditures. A project is eligible under this section only if the project:
45.20 	(1) involves the construction, improvement, or maintenance of a capital building asset 
45.21 	that is part of the trunk highway system; and
45.22 	(2) accomplishes at least one of the following:
45.23 	(i) supports the programmatic mission of the department;
45.24 	(ii) extends the useful life of existing buildings; or
45.25 	(iii) renovates or constructs facilities to meet the department's current and future 
45.26 	operational needs.
45.27 		Subd. 6.Prioritization. In prioritizing funding allocation among projects under the 
45.28 	program, the commissioner must consider:
45.29 	(1) whether a project ensures the effective and efficient condition and operation of the 
45.30 	facility;
45.31 	(2) the urgency in ensuring the safe use of existing buildings;
45.32 	(3) the project's total life-cycle cost;
46.1 	(4) additional criteria for priorities otherwise specified in law that apply to a category 
46.2 	listed in the act making an appropriation for the program; and
46.3 	(5) any other criteria the commissioner deems necessary.

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

46.5 	Sec. 38. Minnesota Statutes 2023 Supplement, section 174.634, subdivision 2, is amended 
46.6 	to read:
46.7 		Subd. 2.Passenger rail account; transfers; appropriation. (a) A passenger rail account 
46.8 	is established in the special revenue fund. The account consists of funds as provided in this 
46.9 	subdivision and any other money donated, allotted, transferred, collected, or otherwise 
46.10 	provided to the account.
46.11 	(b) By July 15 annually beginning in calendar year 2027, the commissioner of revenue 
46.12 	must transfer an amount from the general fund to the passenger rail account that equals 50 
46.13 	percent of the portion of the state general tax under section 275.025 levied on railroad 
46.14 	operating property, as defined under section 273.13, subdivision 24, in the prior calendar 
46.15 	year.
46.16 	(c) Money in the account is annually appropriated to the commissioner of transportation 
46.17 	for the net operating and capital maintenance costs of intercity passenger rail, which may 
46.18 	include but are not limited to planning, designing, developing, constructing, equipping, 
46.19 	administering, operating, promoting, maintaining, and improving passenger rail service 
46.20 	within the state, after accounting for operating revenue, federal funds, and other sources.

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

46.22 	Sec. 39. Minnesota Statutes 2023 Supplement, section 174.634, is amended by adding a 
46.23 	subdivision to read:
46.24 		Subd. 3.Fee and revenue collection authorized. In order to maintain a balanced 
46.25 	transportation system in the state required by the public convenience and necessity, the 
46.26 	commissioner may, directly or through a contractor, vendor, operator, or partnership with 
46.27 	a federal or state government entity, including Amtrak, collect a fee or other revenue related 
46.28 	to passenger rail services within the state. Fees and revenue to be collected include but are 
46.29 	not limited to fees and revenue generated through ticket sales and sales of on-board and 
46.30 	promotional goods. Revenue may be collected as determined by the commissioner. Fees 
46.31 	and revenue collected under this subdivision must be deposited in the passenger rail account 
47.1 	in the special revenue fund. Fees and revenue under this section are not subject to section 
47.2 	16A.1283.

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

47.4 	Sec. 40. Minnesota Statutes 2022, section 174.75, subdivision 1, is amended to read:
47.5 		Subdivision 1.Definition Definitions. (a) For purposes of this section, the following 
47.6 	terms have the meanings given.
47.7 	(b) "Complete streets" is the planning, scoping, design, implementation, operation, and 
47.8 	maintenance of roads in order to reasonably address the safety and accessibility needs of 
47.9 	users of all ages and abilities. Complete streets considers the needs of motorists, pedestrians, 
47.10 	transit users and vehicles, bicyclists, and commercial and emergency vehicles moving along 
47.11 	and across roads, intersections, and crossings in a manner that is sensitive to the local context 
47.12 	and recognizes that the needs vary in urban, suburban, and rural settings.
47.13 	(c) "Vulnerable road user" has the meaning given in section 169.011, subdivision 92b.

47.14 	Sec. 41. Minnesota Statutes 2022, section 174.75, subdivision 2, is amended to read:
47.15 		Subd. 2.Implementation. (a) The commissioner shall must implement a complete 
47.16 	streets policy after consultation with stakeholders, state and regional agencies, local 
47.17 	governments, and road authorities. The commissioner, after such consultation, shall must
47.18 	address relevant protocols, guidance, standards, requirements, and training, and shall 
47.19 	integrate.
47.20 	(b) The complete streets policy must include but is not limited to:
47.21 	(1) integration of related principles of context-sensitive solutions.;
47.22 	(2) integration throughout the project development process;
47.23 	(3) methods to evaluate inclusion of active transportation facilities in a project, which 
47.24 	may include but are not limited to sidewalks, crosswalk markings, pedestrian accessibility, 
47.25 	and bikeways; and
47.26 	(4) consideration of consultation with other road authorities regarding existing and 
47.27 	planned active transportation network connections.

48.1 	Sec. 42. Minnesota Statutes 2022, section 174.75, is amended by adding a subdivision to 
48.2 	read:
48.3 		Subd. 2a.Implementation guidance. The commissioner must maintain guidance that 
48.4 	accompanies the complete streets policy under this section. The guidance must include 
48.5 	sections on:
48.6 	(1) an analysis framework that provides for:
48.7 	(i) identification of characteristics of a project;
48.8 	(ii) highway system categorization based on context, including population density, land 
48.9 	use, density and scale of surrounding development, volume of highway use, and the nature 
48.10 	and extent of active transportation; and
48.11 	(iii) relative emphasis for different road system users in each of the categories under 
48.12 	item (ii) in a manner that supports safety and mobility of vulnerable road users, motorcyclists 
48.13 	or other operators of two- or three-wheeled vehicles, and public transit users; and
48.14 	(2) an analysis of speed limit reductions and associated roadway design modifications 
48.15 	to support safety and mobility in active transportation.

48.16 	Sec. 43. Minnesota Statutes 2022, section 216E.02, subdivision 1, is amended to read:
48.17 		Subdivision 1.Policy. The legislature hereby declares it to be the policy of the state to 
48.18 	locate large electric power facilities and high voltage transmission lines in an orderly manner 
48.19 	compatible with environmental preservation and the efficient use of resources. In accordance 
48.20 	with this policy the commission shall choose locations that minimize adverse human and 
48.21 	environmental impact while insuring continuing electric power system reliability and integrity 
48.22 	and insuring that electric energy needs are met and fulfilled in an orderly and timely fashion.

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

48.24 	Sec. 44. Minnesota Statutes 2023 Supplement, section 219.015, subdivision 2, is amended 
48.25 	to read:
48.26 		Subd. 2.Railroad company assessment; account; appropriation. (a) As provided in 
48.27 	this subdivision, the commissioner must annually assess railroad companies that are (1) 
48.28 	defined as common carriers under section 218.011; (2) classified by federal law or regulation 
48.29 	as Class I Railroads, Class I Rail Carriers, Class II Railroads, or Class II Rail Carriers; and 
48.30 	(3) operating in this state.
49.1 	(b) The assessment must be calculated to allocate state rail safety inspection program 
49.2 	costs proportionally among carriers based on route miles operated in Minnesota at the time 
49.3 	of assessment. The commissioner must include in the assessment calculation all state rail 
49.4 	safety inspection program costs to support up to six rail safety inspector positions, including 
49.5 	but not limited to salary, administration, supervision, travel, equipment, training, and ongoing 
49.6 	state rail inspector duties.
49.7 	(c) The assessments collected under this subdivision must be deposited in a state rail 
49.8 	safety inspection account, which is established in the special revenue fund. The account 
49.9 	consists of funds provided by this subdivision and section 221.0255 and any other money 
49.10 	donated, allotted, transferred, or otherwise provided to the account. Money in the account 
49.11 	is annually appropriated to the commissioner to administer the state rail safety inspection 
49.12 	program and for costs under section 221.0255.

49.13 	Sec. 45. [219.382] WAYSIDE DETECTOR SYSTEMS.
49.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
49.15 	the meanings given.
49.16 	(b) "Hazardous substance" has the meaning given in section 219.055, subdivision 1, 
49.17 	paragraph (e).
49.18 	(c) "Wayside detector system" means one or more electronic devices that: (1) perform 
49.19 	automated scanning of passing trains, rolling stock, and on-track equipment to detect defects 
49.20 	or precursors to defects in equipment or component parts; and (2) provide notification to 
49.21 	individuals of a defect or precursor to a defect.
49.22 		Subd. 2.Application. The requirements in this section apply to:
49.23 	(1) a Class I railroad; and
49.24 	(2) a Class II railroad or Class III railroad when transporting a hazardous substance at 
49.25 	a speed that exceeds ten miles per hour.
49.26 		Subd. 3.Wayside detector system requirements. (a) A railroad must maintain 
49.27 	operational wayside detector systems located at intervals of:
49.28 	(1) at least every ten miles of mainline track in the state; or
49.29 	(2) at least every 15 miles of mainline track in the state if necessary due to the natural 
49.30 	terrain.
49.31 	(b) A wayside detector system under this section must include a hot bearings detector 
49.32 	and a dragging equipment detector.
50.1 		Subd. 4.Defect notifications. Promptly after a wayside detector system provides a 
50.2 	notification regarding a defect, the railroad must:
50.3 	(1) stop the train in accordance with the railroad's applicable safety procedures;
50.4 	(2) inspect the location of the defect from a position on the ground;
50.5 	(3) if the inspection indicates that the train is not safe for movement, make necessary 
50.6 	repairs prior to movement;
50.7 	(4) if the inspection indicates that the train is safe for movement or if repairs are 
50.8 	performed under clause (3):
50.9 	(i) proceed at a speed that does not exceed (A) 30 miles per hour if the train is not 
50.10 	transporting a hazardous substance, or (B) ten miles per hour if the train is transporting a 
50.11 	hazardous substance; and
50.12 	(ii) remove and set out any defective car at the earliest opportunity; and
50.13 	(5) provide for the train crew to prepare a written inspection report and submit it to the 
50.14 	appropriate personnel within the railroad.
50.15 		Subd. 5.Report to commissioner. By January 15 annually, a railroad that is subject to 
50.16 	this section must submit a report to the commissioner on wayside detector systems installed 
50.17 	in this state. At a minimum, the report must include:
50.18 	(1) an overview of each wayside detector system, which must include:
50.19 	(i) its type and primary characteristics;
50.20 	(ii) the nearest milepost number, latitude and longitude coordinates, or other information 
50.21 	that specifically identifies its location; and
50.22 	(iii) a review of the operational status of the hot bearings detector and the dragging 
50.23 	equipment detector throughout the prior 12 months; and
50.24 	(2) other information on wayside detector systems as required by the commissioner.
50.25 		Subd. 6.Notification of validity. Using existing resources, the commissioner must 
50.26 	perform a federal preemption analysis of the requirements under this section that includes 
50.27 	examination of federal law, case law, and federal guidance. The commissioner must make 
50.28 	a preemption determination based on the analysis. If the commissioner determines that the 
50.29 	requirements under this section are not reasonably expected to be preempted by federal law, 
50.30 	the commissioner must submit a notification of validity to the revisor of statutes and to the 
51.1 	chairs and ranking minority members of the legislative committees with jurisdiction over 
51.2 	transportation policy and finance.
51.3 		Subd. 7.Notification of impacts. Using existing resources, the commissioner of 
51.4 	agriculture must perform an analysis of impacts on agricultural sector costs or other adverse 
51.5 	impacts on transportation of agricultural goods as a result of the requirements under this 
51.6 	section, and must make a determination based on the analysis. If the commissioner of 
51.7 	agriculture determines that the requirements under this section are anticipated to result in 
51.8 	minimal agricultural sector impacts, the commissioner must submit a notification of minimal 
51.9 	impacts to the revisor of statutes and to the chairs and ranking minority members of the 
51.10 	legislative committees with jurisdiction over transportation policy and finance.

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

51.12 	Sec. 46. [219.5505] TRAIN LENGTH.
51.13 		Subdivision 1.Definition. For purposes of this section, "railroad" means a common 
51.14 	carrier that is classified by federal law or regulation as a Class I railroad, Class II railroad, 
51.15 	or Class III railroad.
51.16 		Subd. 2.Application. This section does not apply to a train transporting taconite that 
51.17 	originates within this state.
51.18 		Subd. 3.Maximum length. A railroad must not operate a train in this state that has a 
51.19 	total length in excess of 8,500 feet.
51.20 		Subd. 4.Penalty. (a) A railroad that violates this section is subject to a penalty of:
51.21 	(1) not less than $1,000 or more than $5,000 for a first offense;
51.22 	(2) not less than $5,000 or more than $10,000 for a second offense committed within 
51.23 	three years of the first offense; and
51.24 	(3) not less than $25,000 for a third or subsequent offense committed within three years 
51.25 	of the first offense.
51.26 	(b) The commissioner of transportation may enforce this section in a civil action before 
51.27 	a judge of a county in which the violation occurs.
51.28 	(c) Fines collected under this section must be deposited in the state rail safety inspection 
51.29 	account in the special revenue fund.
51.30 		Subd. 5.Notification of validity.  Using existing resources, the commissioner must 
51.31 	perform a federal preemption analysis of the requirements under this section that includes 
52.1 	examination of federal law, case law, and federal guidance. The commissioner must make 
52.2 	a preemption determination based on the analysis. If the commissioner determines that the 
52.3 	requirements under this section are not reasonably expected to be preempted by federal law, 
52.4 	the commissioner must submit a notification of validity to the revisor of statutes and to the 
52.5 	chairs and ranking minority members of the legislative committees with jurisdiction over 
52.6 	transportation policy and finance.
52.7 		Subd. 6.Notification of impacts.  Using existing resources, the commissioner of 
52.8 	agriculture must perform an analysis of impacts on agricultural sector costs or other adverse 
52.9 	impacts on transportation of agricultural goods as a result of the requirements under this 
52.10 	section, and must make a determination based on the analysis. If the commissioner of 
52.11 	agriculture determines that the requirements under this section are anticipated to result in 
52.12 	minimal agricultural sector impacts, the commissioner must submit a notification of minimal 
52.13 	impacts to the revisor of statutes and to the chairs and ranking minority members of the 
52.14 	legislative committees with jurisdiction over transportation policy and finance.

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

52.17 	Sec. 47. [219.756] YARDMASTER HOURS OF SERVICE.
52.18 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
52.19 	the meanings given.
52.20 	(b) "Railroad" means a common carrier that is classified by federal law or regulation as 
52.21 	Class I railroad, Class II railroad, or Class III railroad.
52.22 	(c) "Yardmaster" means an employee of a common carrier who is responsible for 
52.23 	supervising and coordinating the control of trains and engines operating within a railyard, 
52.24 	not including a dispatching service employee, signal employee, or train employee as those 
52.25 	terms are defined in United States Code, title 49, section 21101.
52.26 		Subd. 2.Hours of service. (a) A railroad operating in this state must not require or allow 
52.27 	a yardmaster to remain or go on duty:
52.28 	(1) in any month when the employee has spent a total of 276 hours on duty or in any 
52.29 	other mandatory service for the carrier;
52.30 	(2) for a period exceeding 12 consecutive hours; and
52.31 	(3) unless the employee has had at least ten consecutive hours off duty during the prior 
52.32 	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 		Subd. 3.Notification of validity. Using existing resources, the commissioner must 
53.6 	perform a federal preemption analysis of the requirements under this section that includes 
53.7 	examination of federal law, case law, and federal guidance. The commissioner must make 
53.8 	a preemption determination based on the analysis. If the commissioner determines that the 
53.9 	requirements under this section are not reasonably expected to be preempted by federal law, 
53.10 	the commissioner must submit a notification of validity to the revisor of statutes and to the 
53.11 	chairs and ranking minority members of the legislative committees with jurisdiction over 
53.12 	transportation policy and finance.
53.13 		Subd. 4.Notification of impacts.  Using existing resources, the commissioner of 
53.14 	agriculture must perform an analysis of impacts on agricultural sector costs or other adverse 
53.15 	impacts on transportation of agricultural goods as a result of the requirements under this 
53.16 	section, and must make a determination based on the analysis. If the commissioner of 
53.17 	agriculture determines that the requirements under this section are anticipated to result in 
53.18 	minimal agricultural sector impacts, the commissioner must submit a notification of minimal 
53.19 	impacts to the revisor of statutes and to the chairs and ranking minority members of the 
53.20 	legislative committees with jurisdiction over transportation policy and finance.

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

53.22 	Sec. 48. Minnesota Statutes 2022, section 221.0255, subdivision 4, is amended to read:
53.23 		Subd. 4.Motor carrier of railroad employees; requirements. (a) The motor carrier 
53.24 	of railroad employees must implement a policy that provides for annual training and 
53.25 	certification of the operator in:
53.26 	(1) safe operation of the vehicle transporting railroad employees;
53.27 	(2) knowing and understanding relevant laws, rules of the road, and safety policies;
53.28 	(3) handling emergency situations;
53.29 	(4) proper use of seat belts;
53.30 	(5) performance of pretrip and posttrip vehicle inspections, and inspection record keeping; 
53.31 	and
53.32 	(6) proper maintenance of required records.
54.1 	(b) The motor carrier of railroad employees must:
54.2 	(1) confirm that the person is not disqualified under subdivision 6, by performing a 
54.3 	criminal background check of the operator, which must include:
54.4 	(i) a criminal history check of the state criminal records repository; and
54.5 	(ii) if the operator has resided in Minnesota less than five years, a criminal history check 
54.6 	from each state of residence for the previous five years;
54.7 	(2) annually verify the operator's driver's license;
54.8 	(3) document meeting the requirements in this subdivision, which must include 
54.9 	maintaining at the carrier's business location:
54.10 	(i) a driver qualification file on each operator who transports passengers under this 
54.11 	section; and
54.12 	(ii) records of pretrip and posttrip vehicle inspections as required under subdivision 3, 
54.13 	paragraph (a), clause (3);
54.14 	(4) maintain liability insurance in a minimum amount of $5,000,000 regardless of the 
54.15 	seating capacity of the vehicle;
54.16 	(5) maintain uninsured and underinsured coverage in a minimum amount of $1,000,000
54.17 	$5,000,000; and
54.18 	(6) ensure inspection of each vehicle operated under this section as provided under 
54.19 	section 169.781.
54.20 	(c) A driver qualification file under paragraph (b), clause (3), must include:
54.21 	(1) a copy of the operator's most recent medical examiner's certificate;
54.22 	(2) a copy of the operator's current driver's license;
54.23 	(3) documentation of annual license verification;
54.24 	(4) documentation of annual training;
54.25 	(5) documentation of any known violations of motor vehicle or traffic laws; and
54.26 	(6) responses from previous employers, if required by the current employer.
54.27 	(d) The driver qualification file must be retained for one year following the date of 
54.28 	separation of employment of the driver from the carrier. A record of inspection under 
54.29 	paragraph (b), clause (3), item (ii), must be retained for one year following the date of 
54.30 	inspection.
55.1 	(e) If a party contracts with the motor carrier on behalf of the railroad to transport the 
55.2 	railroad employees, then the insurance requirements may be satisfied by either that party 
55.3 	or the motor carrier, so long as the motor carrier is a named insured or additional insured 
55.4 	under any policy.

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

55.6 	Sec. 49. Minnesota Statutes 2022, section 221.0255, subdivision 9, is amended to read:
55.7 		Subd. 9.Inspection and investigation authority. (a) Upon receipt of a complaint form 
55.8 	or other information alleging a violation of this section, the commissioner must investigate 
55.9 	the relevant matter. Representatives of the Department of Transportation and the State Patrol 
55.10 	have the authority to enter, at a reasonable time and place, any vehicle or facility of the 
55.11 	carrier for purposes of complaint investigations, random inspections, safety reviews, audits, 
55.12 	or accident investigations.
55.13 	(b) Failure of a railroad or motor carrier of railroad employees to permit a complaint 
55.14 	investigation under this subdivision is grounds for issuance of a civil penalty under 
55.15 	subdivision 10.

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

55.17 	Sec. 50. Minnesota Statutes 2022, section 221.0255, is amended by adding a subdivision 
55.18 	to read:
55.19 		Subd. 10.Civil penalty. (a) After completion of an investigation or as provided in 
55.20 	subdivision 9, paragraph (b), the commissioner may issue a civil penalty to a railroad or 
55.21 	motor carrier of railroad employees that violates this section. A civil penalty issued under 
55.22 	this paragraph is in the amount of:
55.23 	(1) not less than $200 but not more than $500 for a first offense;
55.24 	(2) not less than $500 but not more than $1,000 for a second offense; and
55.25 	(3) not less than $1,000 but not more than $5,000 for a third or subsequent offense 
55.26 	committed within three years of the first offense.
55.27 	(b) The civil penalty amounts identified under paragraph (a) are for all violations 
55.28 	identified in a single investigation and are not per violation.
55.29 	(c) The recipient of a civil penalty under this subdivision has 30 days to notify the 
55.30 	commissioner in writing of intent to contest the civil penalty. If within 30 days after receiving 
56.1 	the civil penalty the recipient fails to notify the commissioner of intent to contest the penalty, 
56.2 	the civil penalty is not subject to further review.
56.3 	(d) Civil penalties assessed under this subdivision are subject to chapter 14 and may be 
56.4 	recovered in a civil action.
56.5 	(e) Civil penalties collected under this section must be deposited in the state rail safety 
56.6 	inspection account in the special revenue fund.

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

56.9 	Sec. 51. Minnesota Statutes 2022, section 221.0255, is amended by adding a subdivision 
56.10 	to read:
56.11 		Subd. 11.Notification of validity. Using existing resources, the commissioner must 
56.12 	perform a federal preemption analysis of the requirements under subdivisions 9, paragraph 
56.13 	(b), and 10 that includes examination of federal law, case law, and federal guidance. The 
56.14 	commissioner must make a preemption determination based on the analysis. If the 
56.15 	commissioner determines that the requirements under this section are not reasonably expected 
56.16 	to be preempted by federal law, the commissioner must submit a notification of validity to 
56.17 	the revisor of statutes and to the chairs and ranking minority members of the legislative 
56.18 	committees with jurisdiction over transportation policy and finance.

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

56.20 	Sec. 52. Minnesota Statutes 2022, section 221.0255, is amended by adding a subdivision 
56.21 	to read:
56.22 		Subd. 12.Notification of impacts.  Using existing resources, the commissioner of 
56.23 	agriculture must perform an analysis of impacts on agricultural sector costs or other adverse 
56.24 	impacts on transportation of agricultural goods as a result of the requirements under 
56.25 	subdivisions 9, paragraph (b), and 10, and must make a determination based on the analysis. 
56.26 	If the commissioner of agriculture determines that the requirements under this section are 
56.27 	anticipated to result in minimal agricultural sector impacts, the commissioner must submit 
56.28 	a notification of minimal impacts to the revisor of statutes and to the chairs and ranking 
56.29 	minority members of the legislative committees with jurisdiction over transportation policy 
56.30 	and finance.

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

57.1 	Sec. 53. [325F.661] SALE OF ELECTRIC-ASSISTED BICYCLES AND POWERED 
57.2 	CYCLES.
57.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
57.4 	the meanings given.
57.5 	(b) "Class 1 electric-assisted bicycle," "class 2 electric-assisted bicycle," and "class 3 
57.6 	electric-assisted bicycle" have the meanings given in section 169.011, subdivisions 15a, 
57.7 	15b, and 15c.
57.8 	(c) "Electric-assisted bicycle" has the meaning given in section 169.011, subdivision 
57.9 	27.
57.10 	(d) "Multiple mode electric-assisted bicycle" has the meaning given in section 169.011, 
57.11 	subdivision 45a.
57.12 	(e) "Powered cycle" means a vehicle that has an electric motor, has fewer than four 
57.13 	wheels, and:
57.14 	(1) does not meet all of the requirements of an electric-assisted bicycle as sold or due 
57.15 	to modification by any person; or
57.16 	(2) is designed, manufactured, or intended by the manufacturer or seller to be easily 
57.17 	configured so as not to meet all of the requirements of an electric-assisted bicycle, whether 
57.18 	by a mechanical switch or button, by changing a setting in software controlling the drive 
57.19 	system, by use of an app, or through any other means intended by the manufacturer or seller.
57.20 	A vehicle that meets the requirements of a powered cycle is not an electric-assisted bicycle.
57.21 		Subd. 2.Electric-assisted bicycle. Before a purchase is completed, a seller of an 
57.22 	electric-assisted bicycle must disclose to a consumer in written form:
57.23 	(1) the maximum motor power of the electric-assisted bicycle;
57.24 	(2) the maximum speed of the electric-assisted bicycle, as evaluated using a test method 
57.25 	matching the criteria specified in Code of Federal Regulations, title 16, section 1512.2(a)(2), 
57.26 	or successor requirements; and
57.27 	(3) whether the electric-assisted bicycle is a class 1, class 2, class 3, or multiple mode 
57.28 	electric-assisted bicycle.
57.29 		Subd. 3.Powered cycle. (a) A seller of a new powered cycle may not sell the vehicle 
57.30 	or offer the vehicle for sale if it is labeled as a class 1, class 2, class 3, or multiple mode 
57.31 	electric-assisted bicycle.
58.1 	(b) Before a purchase is completed and in any advertising materials, a seller of a new 
58.2 	powered cycle who describes the vehicle as an "electric bicycle," "electric bike," "e-bike," 
58.3 	or other similar term must disclose to a consumer:
58.4 	(1) the name or classification of the vehicle under state law or the most likely 
58.5 	classification following an intended or anticipated vehicle modification; and
58.6 	(2) the following statement:
58.7 	"This vehicle is not an "electric-assisted bicycle" as defined in Minnesota law. It is 
58.8 	instead a type of motor vehicle and subject to applicable motor vehicle laws if used on 
58.9 	public roads or public lands. Your insurance policies might not provide coverage for crashes 
58.10 	involving the use of this vehicle. To determine coverage, you should contact your insurance 
58.11 	company or agent."
58.12 	(c) Advertising materials under paragraph (b) include but are not limited to a website 
58.13 	or social media post that identifies or promotes the vehicle.
58.14 	(d) The disclosure under paragraph (b) must be (1) written, and (2) provided clearly and 
58.15 	conspicuously and in a manner designed to attract the attention of a consumer.
58.16 		Subd. 4.Unlawful practices. It is an unlawful practice under section 325F.69 to advertise, 
58.17 	offer for sale, or sell a powered cycle:
58.18 	(1) as an electric-assisted bicycle; or
58.19 	(2) using the words "electric bicycle," "electric bike," "e-bike," or other similar term 
58.20 	without providing the disclosure required under subdivision 3.

58.21 	Sec. 54. Minnesota Statutes 2022, section 473.13, is amended by adding a subdivision to 
58.22 	read:
58.23 		Subd. 6.Transportation financial review. (a) By April 1 annually, the council must 
58.24 	prepare and submit a financial review in consultation with the commissioner of management 
58.25 	and budget that details revenue and expenditures for the transportation components under 
58.26 	the council's budget. The council must submit the financial review to the chairs and ranking 
58.27 	minority members of the legislative committees and divisions with jurisdiction over 
58.28 	transportation policy and finance.
58.29 	(b) At a minimum, the financial review must identify:
58.30 	(1) the actual revenues, expenditures, transfers, reserves, and balances in each of the 
58.31 	previous four budget years;
59.1 	(2) budgeted and forecasted revenues, expenditures, transfers, reserves, and balances in 
59.2 	the current year and each budget year within the state forecast period;
59.3 	(3) for the most recent completed budget year, a comparison between the budgeted and 
59.4 	actual amounts under clause (1); and
59.5 	(4) for the most recent completed budget year, fund balances for each replacement service 
59.6 	provider under section 473.388.
59.7 	(c) The information under paragraph (b), clauses (1) to (3), must include:
59.8 	(1) a breakout for each transportation funding source identified by the council;
59.9 	(2) a breakout for each transportation operating budget category established by the 
59.10 	council, including but not limited to bus, light rail transit, commuter rail, planning, special 
59.11 	transportation service under section 473.386, and assistance to replacement service providers 
59.12 	under section 473.388; and
59.13 	(3) data for operations, capital maintenance, and transit capital.
59.14 	(d) The financial review must summarize reserve policies, identify the methodology for 
59.15 	cost allocation, and describe revenue assumptions and variables affecting the assumptions.

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

59.19 	Sec. 55. Minnesota Statutes 2022, section 473.3927, is amended to read:
59.20 	473.3927 ZERO-EMISSION AND ELECTRIC TRANSIT VEHICLES.
59.21 		Subdivision 1.Transition plan required. (a) The council must develop and maintain 
59.22 	a zero-emission and electric transit vehicle transition plan.
59.23 	(b) The council must complete the initial revise the plan by February 15, 2022 2025, 
59.24 	and revise the plan at least once every five three years following each prior revision.
59.25 		Subd. 1a.Definitions. (a) For purposes of this section, the following terms have the 
59.26 	meanings given.
59.27 	(b) "Greenhouse gas emissions" includes those emissions described in section 216H.01, 
59.28 	subdivision 2.
59.29 	(c) "Qualified transit bus" means a motor vehicle that meets the requirements under 
59.30 	paragraph (d), clauses (1) and (2).
60.1 	(d) "Zero-emission transit bus" means a motor vehicle that:
60.2 	(1) is designed for public transit service;
60.3 	(2) has a capacity of more than 15 passengers, including the driver; and
60.4 	(3) produces no exhaust-based greenhouse gas emissions from the onboard source of 
60.5 	motive power of the vehicle under all operating conditions.
60.6 		Subd. 2.Plan development. At a minimum, the plan must:
60.7 	(1) establish implementation policies and, guidance, and recommendations to implement 
60.8 	the transition to a transit service fleet of exclusively zero-emission and electric transit 
60.9 	vehicles, including for recipients of financial assistance under section 473.388;
60.10 	(2) establish a bus procurement transition strategy so that beginning on January 1, 2035, 
60.11 	any qualified transit bus purchased for regular route transit service or special transportation 
60.12 	service under section 473.386 by the council is a zero-emission transit bus;
60.13 	(3) consider methods for transit providers to maximize greenhouse gas reduction in 
60.14 	addition to zero-emission transit bus procurement, including but not limited to service 
60.15 	expansion, reliability improvements, and other transit service improvements;
60.16 	(4) analyze greenhouse gas emission reduction from transit improvements identified 
60.17 	under clause (3) in comparison to the zero-emission transit bus procurement strategy under 
60.18 	clause (2);
60.19 	(5) set transition milestones or performance measures, or both, which may include vehicle 
60.20 	procurement goals over the transition period in conjunction with the strategy under clause 
60.21 	(2);
60.22 	(3) (6) identify barriers, constraints, and risks, and determine objectives and strategies 
60.23 	to address the issues identified;
60.24 	(4) (7) consider findings and best practices from other transit agencies;
60.25 	(5) (8) analyze zero-emission and electric transit vehicle technology impacts, including 
60.26 	cold weather operation and emerging technologies;
60.27 	(9) prioritize deployment of zero-emission transit buses based on the extent to which 
60.28 	service is provided to environmental justice areas, as defined in section 116.065, subdivision 
60.29 	1;
60.30 	(6) (10) consider opportunities to prioritize the deployment of zero-emissions vehicles 
60.31 	in areas with poor air quality;
61.1 	(11) consider opportunities to prioritize deployment of zero-emission transit buses along 
61.2 	arterial and highway bus rapid transit routes, including methods to maximize cost 
61.3 	effectiveness with bus rapid transit construction projects;
61.4 	(7) (12) provide detailed estimates of implementation costs to implement the plan and 
61.5 	achieve the transition under clause (2), which, to the extent feasible, must include a forecast 
61.6 	of annual expenditures, identification of potential sources of funding, and a summary of 
61.7 	any anticipated or planned activity to seek additional funds; and
61.8 	(8) (13) examine capacity, constraints, and potential investments in the electric 
61.9 	transmission and distribution grid, in consultation with appropriate public utilities;
61.10 	(14) identify methods to coordinate necessary facility upgrades in a manner that 
61.11 	maximizes cost effectiveness and overall system reliability;
61.12 	(15) examine workforce impacts under the transition plan, including but not limited to 
61.13 	changes in staffing complement; personnel skill gaps and needs; and employee training, 
61.14 	retraining, or role transitions; and
61.15 	(16) summarize updates to the plan from the most recent version.
61.16 		Subd. 3.Copy to legislature. Upon completion or revision of the plan, the council must 
61.17 	provide a copy to the chairs, ranking minority members, and staff of the legislative 
61.18 	committees with jurisdiction over transportation policy and finance.

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

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

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

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

62.23 	Sec. 58. REVISOR INSTRUCTION.
 62.24 	The revisor of statutes must recodify Minnesota Statutes, section 169.21, subdivision 
62.25 	6, as Minnesota Statutes, section 171.0701, subdivision 1b. The revisor must correct any 
62.26 	cross-references made necessary by this recodification.

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

62.28 	Sec. 59. REVISOR INSTRUCTION.
 62.29 	The revisor of statutes must recodify Minnesota Statutes, section 473.3927, subdivision 
62.30 	1, as Minnesota Statutes, section 473.3927, subdivision 1b. The revisor must correct any 
62.31 	cross-references made necessary by this recodification.

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

63.2 	Sec. 60. REPEALER.
 63.3 	(a) Minnesota Statutes 2022, section 168.1297, is repealed.
63.4 	(b) Minnesota Rules, part 7410.6180, is repealed.

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

63.6 	ARTICLE 3
63.7 	LABOR APPROPRIATIONS

63.8	Section 1. APPROPRIATIONS.
 	
63.9 	(a) The sums shown in the columns under "Appropriations" are added to the 
63.10 	appropriations in Laws 2023, chapter 53, or other law to the specified agency. The 
63.11 	appropriations are from the general fund, or another named fund, and are available for the 
63.12 	fiscal years indicated for each purpose. The figures "2024" and "2025" used in this article 
63.13 	mean that the appropriations listed under them are available for the fiscal year ending June 
63.14 	30, 2024, or June 30, 2025, respectively. "The first year" is fiscal year 2024. "The second 
63.15 	year" is fiscal year 2025. "The biennium" is fiscal years 2024 and 2025.
63.16 	(b) If an appropriation in this article is enacted more than once in the 2024 regular or 
63.17 	special legislative session, the appropriation must be given effect only once.

63.18				APPROPRIATIONS
	
63.19				Available for the Year
	
63.20				Ending June 30
	
63.21					2024
		2025

63.22	Sec. 2. DEPARTMENT OF HEALTH
 	$
	-0-
	$
	174,000
	
63.23 	$174,000 the second year is for technical 
63.24 	assistance for rulemaking for acceptable blood 
63.25 	lead levels for workers. This is a onetime 
63.26 	appropriation and is available until June 30, 
63.27 	2026.

63.28
63.29	Sec. 3. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT
 	$
	-0-
	$
	10,736,000
	
63.30 	$9,000,000 the second year is for a grant to 
63.31 	Tending the Soil, to design, redesign, renovate, 
63.32 	construct, furnish, and equip the Rise Up 
64.1 	Center, a building located in Minneapolis, that 
64.2 	will house a workforce development and job 
64.3 	training center, administrative offices, and a 
64.4 	public gathering space.
64.5 	$1,736,000 the second year is for 
64.6 	implementation of the broadband provisions 
64.7 	in article 9.

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

64.1064.9	Subdivision 1.Total Appropriation
 	$
	47,710,000
	$
	44,044,000
44,720,000

64.11	Appropriations by Fund
	
64.12		2024
	2025
	
64.1464.13
	General
	7,200,000
	4,889,000
5,286,000
	
64.15
64.16	Workers' 
Compensation
	30,599,000
	32,390,000
32,669,000
	
64.17
64.18	Workforce 
Development
	9,911,000
	6,765,000
	
64.19 	The amounts that may be spent for each 
64.20 	purpose are specified in the following 
64.21 	subdivisions. The general fund base for this 
64.22 	appropriation is $4,936,000 $5,006,000 in 
64.23 	fiscal year 2026 and $4,958,000 $5,028,000
64.24 	in fiscal year 2027 and each year thereafter. 
64.25 	The workers compensation fund base is 
64.26 	$32,749,000 $32,892,000 in fiscal year 2026 
64.27 	and $32,458,000 in fiscal year 2027 and each 
64.28 	year thereafter. The workforce development 
64.29 	fund base is $6,765,000 in fiscal year 2026 
64.30 	and each year thereafter.

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

64.3364.32
	Subd. 3.Labor Standards
 		6,520,000
		6,270,000
6,667,000

65.1	Appropriations by Fund
	
65.365.2
	General
	4,957,000
	4,635,000
5,032,000
	
65.4
65.5	Workforce 
Development
	1,563,000
	1,635,000
	
65.6 	The general fund base for this appropriation 
65.7 	is $4,682,000 $4,752,000 in fiscal year 2026 
65.8 	and $4,704,000 $4,774,000 in fiscal year 2027 
65.9 	and each year thereafter.
65.10 	(a) $2,046,000 each year is for wage theft 
65.11 	prevention.
65.12 	(b) $1,563,000 the first year and $1,635,000 
65.13 	the second year are from the workforce 
65.14 	development fund for prevailing wage 
65.15 	enforcement.
65.16 	(c) $134,000 the first year and $134,000 the 
65.17 	second year are for outreach and enforcement 
65.18 	efforts related to changes to the nursing 
65.19 	mothers, lactating employees, and pregnancy 
65.20 	accommodations law.
65.21 	(d) $661,000 the first year and $357,000 the 
65.22 	second year are to perform work for the 
65.23 	Nursing Home Workforce Standards Board. 
65.24 	The base for this appropriation is $404,000 in 
65.25 	fiscal year 2026 and $357,000 in fiscal year 
65.26 	2027.
65.27 	(e) $225,000 the first year and $169,000 the 
65.28 	second year are for the purposes of the Safe 
65.29 	Workplaces for Meat and Poultry Processing 
65.30 	Workers Act.
65.31 	(f) $27,000 the first year is for the creation 
65.32 	and distribution of a veterans' benefits and 
65.33 	services poster under Minnesota Statutes, 
65.34 	section 181.536.
66.1 	(g) $141,000 the second year is to inform and 
66.2 	educate employers relating to Minnesota 
66.3 	Statutes, section 181.960. This is a onetime 
66.4 	appropriation.
66.5 	(h) $200,000 the second year is for education 
66.6 	and training related to employee 
66.7 	misclassification. This is a onetime 
66.8 	appropriation and is available until June 30, 
66.9 	2026.

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

66.1266.11
	Subd. 5.Workplace Safety
 		8,644,000
		7,559,000
7,838,000

66.13	Appropriations by Fund
	
66.14	General
	2,000,000
	-0-
	
66.15
66.16	Workers' 
Compensation
	6,644,000
	7,559,000
7,838,000
	
66.17 	The workers compensation fund base for this 
66.18 	appropriation is $7,918,000 $8,061,000 in 
66.19 	fiscal year 2026 and $7,627,000 in fiscal year 
66.20 	2027 and each year thereafter.
66.21 	$2,000,000 the first year is for the ergonomics 
66.22 	safety grant program. This appropriation is 
66.23 	available until June 30, 2026. This is a onetime 
66.24 	appropriation.

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

66.26	Sec. 4. BUREAU OF MEDIATION SERVICES
 	$
	3,707,000
	$
	3,789,000
	
66.27 	(a) $750,000 each year is for purposes of the 
66.28 	Public Employment Relations Board under 
66.29 	Minnesota Statutes, section 179A.041.
66.30 	(b) $68,000 each year is for grants to area 
66.31 	labor management committees. Grants may 
66.32 	be awarded for a 12-month period beginning 
66.33 	July 1 each year. Any unencumbered balance 
67.1 	remaining at the end of the first year does not 
67.2 	cancel but is available for the second year.
67.3 	(c) $47,000 each year is for rulemaking, 
67.4 	staffing, and other costs associated with peace 
67.5 	officer grievance procedures.

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

67.7 	ARTICLE 4
67.8 	COMBATIVE SPORTS

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

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

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

68.15 	Sec. 3. Minnesota Statutes 2023 Supplement, section 341.28, subdivision 5, is amended 
68.16 	to read:
68.17 		Subd. 5.Regulatory authority; martial arts and amateur boxing.  (a) Unless this 
68.18 	chapter specifically states otherwise, contests or exhibitions for martial arts and amateur 
68.19 	boxing are exempt from the requirements of this chapter and officials at these events are 
68.20 	not required to be licensed under this chapter.
68.21 	(b) Martial arts and amateur boxing contests, unless subject to the exceptions set forth 
68.22 	in subdivision 6 or 7, must be regulated by a nationally recognized organization approved 
68.23 	by the commissioner. The organization must have a set of written standards, procedures, or 
68.24 	rules used to sanction the combative sports it oversees.
68.25 	(c) Any regulatory body overseeing a martial arts or amateur boxing event must submit 
68.26 	bout results to the commissioner within 72 hours after the event. If the regulatory body 
68.27 	issues suspensions, the regulatory body must submit to the commissioner a list of any 
68.28 	suspensions resulting from the event within 72 hours after the event. Regulatory bodies that 
68.29 	oversee combative sports or martial arts contests under subdivision 6 or 7 are not subject 
68.30 	to this paragraph.

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

69.8 	Sec. 5. Minnesota Statutes 2022, section 341.29, is amended to read:
69.9 	341.29 JURISDICTION OF COMMISSIONER.
69.10 	The commissioner shall:
69.11 	(1) have sole direction, supervision, regulation, control, and jurisdiction over all 
69.12 	combative sport contests that are held within this state unless a contest is exempt from the 
69.13 	application of this chapter under federal law;
69.14 	(2) have sole control, authority, and jurisdiction over all licenses required by this chapter;
69.15 	(3) grant a license to an applicant if, in the judgment of the commissioner, the financial 
69.16 	responsibility, experience, character, and general fitness of the applicant are consistent with 
69.17 	the public interest, convenience, or necessity and in the best interests of combative sports 
69.18 	and conforms with this chapter and the commissioner's rules;
69.19 	(4) deny, suspend, or revoke a license using the enforcement provisions of section 
69.20 	326B.082, except that the licensing reapplication time frames remain within the sole 
69.21 	discretion of the commissioner; and
69.22 	(5) serve final nonlicensing orders in performing the duties of this chapter which are 
69.23 	subject to the contested case procedures provided in sections 14.57 to 14.69.

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

71.22 	Sec. 7. Minnesota Statutes 2023 Supplement, section 341.321, is amended to read:
71.23 	341.321 FEE SCHEDULE.
71.24 	(a) The fee schedule for professional and amateur licenses issued by the commissioner 
71.25 	is as follows:
71.26 	(1) referees, $25;
71.27 	(2) promoters, $700;
71.28 	(3) judges and knockdown judges, $25;
71.29 	(4) trainers and seconds, $40;
71.30 	(5) timekeepers, $25;
71.31 	(6) professional combatants, $70;
72.1 	(7) amateur combatants, $35; and
72.2 	(8) ringside physicians, $25.
72.3 	All license fees shall be paid no later than the weigh-in prior to the contest. No license may 
72.4 	be issued until all prelicensure requirements in section 341.30 are satisfied and fees are 
72.5 	paid.
72.6 	(b) A promoter or event organizer of an event regulated by the Department of Labor and 
72.7 	Industry must pay, per event, a combative sport contest fee of.
72.8 	(c) If the promoter sells tickets for the event, the event fee is $1,500 per event or four 
72.9 	percent of the gross ticket sales, whichever is greater. The fee must be paid as follows:
72.10 	(1) $500 at the time the combative sport contest is scheduled, which is nonrefundable;
72.11 	(2) $1,000 at the weigh-in prior to the contest;
72.12 	(3) if four percent of the gross ticket sales is greater than $1,500, the balance is due to 
72.13 	the commissioner within 14 days of the completed contest; and
72.14 	(4) the value of all complimentary tickets distributed for an event, to the extent they 
72.15 	exceed five percent of total event attendance, counts toward gross tickets sales for the 
72.16 	purposes of determining a combative sports contest fee. For purposes of this clause, the 
72.17 	lowest advertised ticket price shall be used to calculate the value of complimentary tickets.
72.18 	(d) If the promoter does not sell tickets and receives only a flat payment from a venue 
72.19 	to administer the event, the event fee is $1,500 per event or four percent of the flat payment, 
72.20 	whichever is greater. The fee must be paid as follows:
72.21 	(1) $500 at the time the combative sport contest is scheduled, which is nonrefundable;
72.22 	(2) $1,000 at the weigh-in prior to the contest; and
72.23 	(3) if four percent of the flat payment is greater than $1,500, the balance is due to the 
72.24 	commissioner within 14 days of the completed contest.
72.25 	(c) (e) All fees and penalties collected by the commissioner must be deposited in the 
72.26 	commissioner account in the special revenue fund.

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

73.3 	Sec. 9. Minnesota Statutes 2023 Supplement, section 341.355, is amended to read:
73.4 	341.355 CIVIL PENALTIES.
73.5 	When the commissioner finds that a person has violated one or more provisions of any 
73.6 	statute, rule, or order that the commissioner is empowered to regulate, enforce, or issue, the 
73.7 	commissioner may impose, for each violation, a civil penalty of up to $10,000 for each 
73.8 	violation, or a civil penalty that deprives the person of any economic advantage gained by 
73.9 	the violation, or both. The commissioner may also impose these penalties against a person 
73.10 	who has violated section 341.28, subdivision 5, paragraph (b) or (c), or subdivision 7.

73.11 	ARTICLE 5
73.12 	CONSTRUCTION CODES AND LICENSING

73.13 	Section 1. Minnesota Statutes 2023 Supplement, section 326B.106, subdivision 1, is 
73.14 	amended to read:
73.15 		Subdivision 1.Adoption of code. (a) Subject to paragraphs (c) and (d) and sections 
73.16 	326B.101 to 326B.194, the commissioner shall by rule and in consultation with the 
73.17 	Construction Codes Advisory Council establish a code of standards for the construction, 
73.18 	reconstruction, alteration, and repair of buildings, governing matters of structural materials, 
73.19 	design and construction, fire protection, health, sanitation, and safety, including design and 
73.20 	construction standards regarding heat loss control, illumination, and climate control. The 
73.21 	code must also include duties and responsibilities for code administration, including 
73.22 	procedures for administrative action, penalties, and suspension and revocation of certification. 
73.23 	The code must conform insofar as practicable to model building codes generally accepted 
73.24 	and in use throughout the United States, including a code for building conservation. In the 
73.25 	preparation of the code, consideration must be given to the existing statewide specialty 
73.26 	codes presently in use in the state. Model codes with necessary modifications and statewide 
73.27 	specialty codes may be adopted by reference. The code must be based on the application 
73.28 	of scientific principles, approved tests, and professional judgment. To the extent possible, 
73.29 	the code must be adopted in terms of desired results instead of the means of achieving those 
73.30 	results, avoiding wherever possible the incorporation of specifications of particular methods 
73.31 	or materials. To that end the code must encourage the use of new methods and new materials. 
73.32 	Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall 
73.33 	administer and enforce the provisions of those sections.
74.1 	(b) The commissioner shall develop rules addressing the plan review fee assessed to 
74.2 	similar buildings without significant modifications including provisions for use of building 
74.3 	systems as specified in the industrial/modular program specified in section 326B.194. 
74.4 	Additional plan review fees associated with similar plans must be based on costs 
74.5 	commensurate with the direct and indirect costs of the service.
74.6 	(c) Beginning with the 2018 edition of the model building codes and every six years 
74.7 	thereafter, the commissioner shall review the new model building codes and adopt the model 
74.8 	codes as amended for use in Minnesota, within two years of the published edition date. The 
74.9 	commissioner may adopt amendments to the building codes prior to the adoption of the 
74.10 	new building codes to advance construction methods, technology, or materials, or, where 
74.11 	necessary to protect the health, safety, and welfare of the public, or to improve the efficiency 
74.12 	or the use of a building.
74.13 	(d) Notwithstanding paragraph (c), the commissioner shall act on each new model 
74.14 	residential energy code and the new model commercial energy code in accordance with 
74.15 	federal law for which the United States Department of Energy has issued an affirmative 
74.16 	determination in compliance with United States Code, title 42, section 6833. The 
74.17 	commissioner may adopt amendments prior to adoption of the new energy codes, as amended 
74.18 	for use in Minnesota, to advance construction methods, technology, or materials, or, where 
74.19 	necessary to protect the health, safety, and welfare of the public, or to improve the efficiency 
74.20 	or use of a building.
74.21 	(e) Beginning in 2024, the commissioner shall act on the new model commercial energy 
74.22 	code by adopting each new published edition of ASHRAE 90.1 or a more efficient standard. 
74.23 	The commercial energy code in effect in 2036 and thereafter must achieve an 80 percent 
74.24 	reduction in annual net energy consumption or greater, using the ASHRAE 90.1-2004 as a 
74.25 	baseline. The commissioner shall adopt commercial energy codes from 2024 to 2036 that 
74.26 	incrementally move toward achieving the 80 percent reduction in annual net energy 
74.27 	consumption. By January 15 of the year following each new code adoption, the commissioner 
74.28 	shall make a report on progress under this section to the legislative committees with 
74.29 	jurisdiction over the energy code.
74.30 	(f) Nothing in this section shall be interpreted to limit the ability of a public utility to 
74.31 	offer code support programs, or to claim energy savings resulting from such programs, 
74.32 	through its energy conservation and optimization plans approved by the commissioner of 
74.33 	commerce under section 216B.241 or an energy conservation and optimization plan filed 
74.34 	by a consumer-owned utility under section 216B.2403.
75.1 	(g) Beginning in 2026, the commissioner shall act on the new model residential energy 
75.2 	code by adopting each new published edition of the International Energy Conservation Code 
75.3 	or a more efficient standard. The residential energy code in effect in 2038 and thereafter 
75.4 	must achieve a 70 percent reduction in annual net energy consumption or greater, using the 
75.5 	2006 International Energy Conservation Code State Level Residential Codes Energy Use 
75.6 	Index for Minnesota, as published by the United States Department of Energy's Building 
75.7 	Energy Codes Program, as a baseline. The commissioner shall adopt residential energy 
75.8 	codes from 2026 to 2038 that incrementally move toward achieving the 70 percent reduction 
75.9 	in annual net energy consumption. By January 15 of the year following each new code 
75.10 	adoption, the commissioner shall submit a report on progress under this section to the 
75.11 	legislative committees with jurisdiction over the energy code.

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

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

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

78.13 	ARTICLE 6
78.14 	BUREAU OF MEDIATION SERVICES

78.15 	Section 1. Minnesota Statutes 2022, section 626.892, subdivision 10, is amended to read:
78.16 		Subd. 10.Training. (a) A person appointed to the arbitrator roster under this section 
78.17 	must complete training as required by the commissioner during the person's appointment. 
78.18 	At a minimum, an initial training must include:
78.19 	(1) at least six hours on the topics of cultural competency, racism, implicit bias, and 
78.20 	recognizing and valuing community diversity and cultural differences; and
78.21 	(2) at least six hours on topics related to the daily experience of peace officers, which 
78.22 	may include ride-alongs with on-duty officers or other activities that provide exposure to 
78.23 	the environments, choices, and judgments required of officers in the field.
78.24 	(b) The commissioner may adopt rules establishing training requirements consistent 
78.25 	with this subdivision.
78.26 	(b) An arbitrator appointed to the roster of arbitrators in 2020 must complete the required 
78.27 	initial training by July 1, 2021. (c) An arbitrator appointed to the roster of arbitrators after 
78.28 	2020 must complete the required initial training within six months of the arbitrator's 
78.29 	appointment.
78.30 	(c) (d) The Bureau of Mediation Services must pay for all costs associated with the 
78.31 	required training must be borne by the arbitrator.

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

79.2 	Sec. 2. REPEALER.
 79.3 	(a) Minnesota Statutes 2022, sections 179.81; 179.82; 179.83, subdivision 1; 179.84, 
79.4 	subdivision 1; and 179.85, are repealed.
79.5 	(b) Minnesota Rules, parts 5520.0100; 5520.0110; 5520.0120; 5520.0200; 5520.0250; 
79.6 	5520.0300; 5520.0500; 5520.0520; 5520.0540; 5520.0560; 5520.0600; 5520.0620; 
79.7 	5520.0700; 5520.0710; and 5520.0800, are repealed.

79.8 	ARTICLE 7
79.9 	PUBLIC EMPLOYMENT LABOR RELATIONS

79.10 	Section 1. Minnesota Statutes 2023 Supplement, section 179A.041, subdivision 10, is 
79.11 	amended to read:
79.12 		Subd. 10.Open Meeting Law; exceptions. Chapter 13D does not apply to meetings of 
79.13 	the a board meeting when itthe board is:
79.14 	(1) deliberating on the merits of an unfair labor practice charges charge under sections 
79.15 	179.11, 179.12, and 179A.13;
79.16 	(2) reviewing a hearing officer's recommended decision and order of a hearing officer
79.17 	under section 179A.13; or
79.18 	(3) reviewing decisions of the commissioner of the Bureau of Mediation Services relating 
79.19 	toa commissioner's decision on an unfair labor practices practice under section 179A.12, 
79.20 	subdivision 11.

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

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

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

84.1 	Sec. 5. Minnesota Statutes 2023 Supplement, section 179A.10, subdivision 2, is amended 
84.2 	to read:
84.3 		Subd. 2.State employees. (a) Unclassified employees, unless otherwise excluded, are 
84.4 	included within the units which that include the classifications to which they are assigned 
84.5 	for purposes of compensation. Supervisory employees shall only can be assigned only to 
84.6 	units unit 12 and or 16. The following units are the appropriate units of executive branch 
84.7 	state employees:
84.8 	(1) law enforcement unit;
84.9 	(2) craft, maintenance, and labor unit;
84.10 	(3) service unit;
84.11 	(4) health care nonprofessional unit;
84.12 	(5) health care professional unit;
84.13 	(6) clerical and office unit;
84.14 	(7) technical unit;
84.15 	(8) correctional guards unit;
84.16 	(9) state university instructional unit;
84.17 	(10) state college instructional unit;
84.18 	(11) state university administrative unit;
84.19 	(12) professional engineering unit;
84.20 	(13) health treatment unit;
84.21 	(14) general professional unit;
84.22 	(15) professional state residential instructional unit;
84.23 	(16) supervisory employees unit;
84.24 	(17) public safety radio communications operator unit;
84.25 	(18) licensed peace officer special unit; and
84.26 	(19) licensed peace officer leader unit.
84.27 	Each unit consists of the classifications or positions assigned to it in the schedule of 
84.28 	state employee job classification and positions maintained by the commissioner. The 
85.1 	commissioner may only make changes in the schedule in existence on the day prior to 
85.2 	August 1, 1984, as required by law or as provided in subdivision 4.
85.3 	(b) The following positions are included in the licensed peace officer special unit:
85.4 	(1) State Patrol lieutenant;
85.5 	(2) NR district supervisor - enforcement;
85.6 	(3) assistant special agent in charge;
85.7 	(4) corrections investigation assistant director 2;
85.8 	(5) corrections investigation supervisor; and
85.9 	(6) commerce supervisor special agent.
85.10 	(c) The following positions are included in the licensed peace officer leader unit:
85.11 	(1) State Patrol captain;
85.12 	(2) NR program manager 2 enforcement; and
85.13 	(3) special agent in charge.
85.14 	(d) Each unit consists of the classifications or positions assigned to it in the schedule of 
85.15 	state employee job classification and positions maintained by the commissioner. The 
85.16 	commissioner may make changes in the schedule in existence on the day before August 1, 
85.17 	1984, only:
85.18 	(1) as required by law; or
85.19 	(2) as provided in subdivision 4.

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

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

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

87.1 	Sec. 9. Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 11, is amended 
87.2 	to read:
87.3 		Subd. 11.Unfair labor practices. The commissioner may void the result of an election 
87.4 	or majority verification procedure and order a new election or procedure if the commissioner 
87.5 	finds that one of the following:
87.6 	(1) there was an unfair labor practice that:
87.7 	(i) was committed by an employer or, a representative candidate or, an employee, or a 
87.8 	group of employees,; and that the unfair labor practice
87.9 	(ii) affected the result of an the election or the majority verification procedure pursuant 
87.10 	to subdivision 2a,; or that
87.11 	(2) procedural or other irregularities in the conduct of the election or majority verification 
87.12 	procedure may have substantially affected its the results, the commissioner may void the 
87.13 	result and order a new election or majority verification procedure.

87.14 	Sec. 10. RULEMAKING.
 87.15 	The commissioner must adopt rules on petitions for majority verification, including 
87.16 	technical changes needed for consistency with Minnesota Statutes, section 179A.12, and 
87.17 	the commissioner may use the expedited rulemaking process under Minnesota Statutes, 
87.18 	section 14.389.

87.19 	Sec. 11. REVISOR INSTRUCTION.
 87.20 	The revisor of statutes must renumber Minnesota Statutes, section 179A.12, subdivision 
87.21 	3, as Minnesota Statutes, section 179A.12, subdivision 1a.

87.22 	ARTICLE 8
87.23 	MISCELLANEOUS LABOR PROVISIONS

87.24 	Section 1. Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 1, as 
87.25 	amended by Laws 2024, chapter 85, section 15, is amended to read:
87.26 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
87.27 	the meanings given them.
87.28 	(b) "Economic development" means financial assistance provided to a person directly 
87.29 	or to a local unit of government or nonprofit organization on behalf of a person who is 
87.30 	engaged in the manufacture or sale of goods and services. Economic development does not 
88.1 	include (1) financial assistance for rehabilitation of existing housing; (2) financial assistance 
88.2 	for new housing construction in which total financial assistance at a single project site is 
88.3 	less than $100,000; or (3) financial assistance for the new construction of fully detached 
88.4 	single-family affordable homeownership units for which the financial assistance covers no 
88.5 	more than ten fully detached single-family affordable homeownership units. For purposes 
88.6 	of this paragraph, "affordable homeownership" means housing targeted at households with 
88.7 	incomes, at initial occupancy, at or below 115 percent of the state or area median income, 
88.8 	whichever is greater, as determined by the United States Department of Housing and Urban 
88.9 	Development.
88.10 	(c) "Financial assistance" means (1) a grant awarded by a state agency for economic 
88.11 	development related purposes if a single business receives $200,000 or more of the grant 
88.12 	proceeds; (2) a loan or the guaranty or purchase of a loan made by a state agency for 
88.13 	economic development related purposes if a single business receives $500,000 or more of 
88.14 	the loan proceeds; or (3) a reduction, credit, or abatement of a tax assessed under chapter 
88.15 	297A where the tax reduction, credit, or abatement applies to a geographic area smaller 
88.16 	than the entire state and was granted for economic development related purposes; (4) tax 
88.17 	increment financing pursuant to section 469.174, provided that such tax increment financing 
88.18 	(i) provides financial assistance to a development that consists, in part or in whole, of 25 
88.19 	units or more of multifamily housing, or (ii) provides $100,000 or more of financial assistance 
88.20 	to a development; or (5) allocations of low-income housing credits by all suballocators as 
88.21 	defined under section 462A.222, for which tax credits are used for multifamily housing 
88.22 	projects consisting of more than ten units. Financial assistance does not include payments 
88.23 	by the state of aids and credits under chapter 273 or 477A to a political subdivision.
88.24 	(d) "Project site" means the location where improvements are made that are financed in 
88.25 	whole or in part by the financial assistance; or the location of employees that receive financial 
88.26 	assistance in the form of employment and training services as defined in section 116L.19, 
88.27 	subdivision 4, or customized training from a technical college.
88.28 	(e) "State agency" means any agency defined under section 16B.01, subdivision 2, 
88.29 	Enterprise Minnesota, Inc., and the Department of Iron Range Resources and Rehabilitation.

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

89.1 	Sec. 2. Minnesota Statutes 2023 Supplement, section 177.42, subdivision 2, is amended 
89.2 	to read:
89.3 		Subd. 2.Project. "Project" means demolition, erection, construction, alteration, 
89.4 	improvement, restoration, remodeling, or repairing of a public building, structure, facility, 
89.5 	land, or other public work, which includes any work suitable for and intended for use by 
89.6 	the public, or for the public benefit, financed in whole or part by state funds. Project also 
89.7 	includes demolition, erection, construction, alteration, improvement, restoration, remodeling, 
89.8 	or repairing of a building, structure, facility, land, or public work when:
89.9 	(1) the acquisition of property, predesign, design, or demolition is financed in whole or 
89.10 	part by state funds.; or
89.11 	(2) the project is owned by a city, county, or school district and the materials and supplies 
89.12 	used or consumed in and equipment incorporated into the construction, reconstruction, 
89.13 	upgrade, expansion, renovation, or remodeling of the project qualify for an exemption from 
89.14 	sales and use tax under chapter 297A or special law.

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

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

90.1 	ARTICLE 9
90.2 	BROADBAND AND PIPELINE SAFETY

90.3 	Section 1. Minnesota Statutes 2022, section 116J.395, subdivision 6, is amended to read:
90.4 		Subd. 6.Awarding grants. (a) In evaluating applications and awarding grants, the 
90.5 	commissioner shall give priority to applications that are constructed in areas identified by 
90.6 	the director of the Office of Broadband Development as unserved.
90.7 	(b) In evaluating applications and awarding grants, the commissioner may give priority 
90.8 	to applications that:
90.9 	(1) are constructed in areas identified by the director of the Office of Broadband 
90.10 	Development as underserved;
90.11 	(2) offer new or substantially upgraded broadband service to important community 
90.12 	institutions including, but not limited to, libraries, educational institutions, public safety 
90.13 	facilities, and healthcare facilities;
90.14 	(3) facilitate the use of telehealth and electronic health records;
90.15 	(4) serve economically distressed areas of the state, as measured by indices of 
90.16 	unemployment, poverty, or population loss that are significantly greater than the statewide 
90.17 	average;
90.18 	(5) provide technical support and train residents, businesses, and institutions in the 
90.19 	community served by the project to utilize broadband service;
90.20 	(6) include a component to actively promote the adoption of the newly available 
90.21 	broadband services in the community;
90.22 	(7) provide evidence of strong support for the project from citizens, government, 
90.23 	businesses, and institutions in the community;
90.24 	(8) provide access to broadband service to a greater number of unserved or underserved 
90.25 	households and businesses; or
90.26 	(9) leverage greater amounts of funding for the project from other private and public 
90.27 	sources.; or
90.28 	(10) commit to implementation of workforce best practices as defined in paragraph (e).
90.29 	(c) The commissioner shall endeavor to award grants under this section to qualified 
90.30 	applicants in all regions of the state.
91.1 	(d) No less than the following percentages of general fund appropriations for the 
91.2 	border-to-border broadband grant program shall be reserved for applicants that agree to 
91.3 	implement the workforce best practices as defined in paragraph (e), based on the year in 
91.4 	which the grants were awarded:
91.5 	(1) 50 percent in 2024;
91.6 	(2) 60 percent in 2025; and
91.7 	(3) 70 percent in 2026 and thereafter.
91.8 	The applicant's agreement to implement the workforce best practices as defined in paragraph 
91.9 	(e) must be an express condition of providing the grant in the grant agreement.
91.10 	(e) An applicant for a grant under this section is considered to implement workforce 
91.11 	best practices only if the applicant can demonstrate that:
91.12 	(1) there is credible evidence of support for the application and the applicant's workforce 
91.13 	needs on the project for which the grant is provided from one or more labor, 
91.14 	labor-management, or other workforce organizations that have a track record of representing 
91.15 	and advocating for workers or recruiting, training, and securing employment for people of 
91.16 	color, Indigenous people, women, or people with disabilities in the construction industry; 
91.17 	and
91.18 	(2) all laborers and mechanics performing construction, installation, remodeling, or 
91.19 	repairs on the project sites for which the grant is provided:
91.20 	(i) are paid the prevailing wage rate as defined in section 177.42, subdivision 6, and the 
91.21 	applicant and all of its construction contractors and subcontractors agree that the payment 
91.22 	of prevailing wage to such laborers and mechanics is subject to the requirements and 
91.23 	enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 
91.24 	177.45, which the commissioner of labor and industry shall have the authority to enforce; 
91.25 	or
91.26 	(ii) receive from their employer:
91.27 	(A) at least 80 hours of skills training annually, of which at least 40 hours must consist 
91.28 	of hands-on instruction;
91.29 	(B) employer-paid family health insurance coverage; and
91.30 	(C) employer-paid retirement benefit payments equal to no less than 15 percent of the 
91.31 	employee's total taxable wages.
92.1 	(f) In the event that the commissioner does not receive enough qualified applications to 
92.2 	achieve the standards under paragraph (d), the commissioner shall consult with prospective 
92.3 	applicants and labor and workforce organizations under paragraph (e), clause (1), to solicit 
92.4 	additional qualified applications.

92.5 	Sec. 2. [116J.3991] BROADBAND, EQUITY, ACCESS, AND DEPLOYMENT 
92.6 	(BEAD).
92.7 		Subdivision 1.Implementation. The commissioner shall implement a Broadband, 
92.8 	Equity, Access, and Deployment (BEAD) Program that prioritizes applicants for state 
92.9 	funding that demonstrate the following, provided that implementation of this requirement 
92.10 	must not prevent the state from receiving any federal broadband grant funding:
92.11 	(1) use of a directly employed workforce, as opposed to a subcontracted workforce, to 
92.12 	perform broadband placing, splicing, and maintenance work. Public entity applicants may 
92.13 	meet this requirement by use of a directly employed workforce or committing to contract 
92.14 	with an Internet service provider that will use a directly employed workforce; or
92.15 	(2) commitment to implement workforce best practices under section 116J.395, 
92.16 	subdivision 6, paragraph (e), on the project or projects for which the applicant seeks public 
92.17 	funding.
92.18 		Subd. 2.Project evaluation. In projects funded by the BEAD Program, the criteria 
92.19 	under subdivision 1 and section 116J.395, subdivision 6, paragraph (e), shall receive a 
92.20 	priority point allocation in the point scheme for project applications, such that these criteria 
92.21 	shall receive the maximum allowable points in the BEAD scoring framework.
92.22 		Subd. 3.Disclosures. Applicants' disclosures responding to the criteria in subdivision 
92.23 	1 and section 116J.395, subdivision 6, paragraph (e), must be publicly available on the 
92.24 	department website, and all workforce commitments made under this section and section 
92.25 	116J.395 shall become enforceable, certified commitments and conditions of the grant.
92.26 		Subd. 4.Workforce plan data. (a) Grantees in projects funded by the program under 
92.27 	this section and section 116J.395 are required to provide in annual reports information on 
92.28 	the workforce performing installation work funded through the grant, including:
92.29 	(1) the number of installation labor hours performed by workforce directly employed 
92.30 	by the grantee or the Internet service provider;
92.31 	(2) the number of installation labor hours performed by contractors and subcontractors 
92.32 	on grant-funded projects with subtotals for hours worked by Minnesota residents, people 
92.33 	of color, Indigenous people, women, and people with disabilities;
93.1 	(3) the name, business address, and number of labor hours performed by each contractor 
93.2 	and subcontractor that participated in construction of a grant-funded project;
93.3 	(4) the percentages of workforce performing installation labor whose straight-time hourly 
93.4 	pay rate was at least $25 and who received employer-paid medical coverage and retirement 
93.5 	benefits; and
93.6 	(5) any other workforce plan information as determined by the commissioner.
93.7 	(b) Following an award, the workforce plan and the requirement to submit ongoing 
93.8 	workforce reports shall be incorporated as material conditions of the contract with the 
93.9 	department and become enforceable, certified commitments.
93.10 		Subd. 5.Failure to meet requirements or falsification of data. If successful applicants 
93.11 	fail to meet the program requirements under this section, or otherwise falsify information 
93.12 	regarding such requirements, the commissioner shall investigate the failure and issue an 
93.13 	appropriate action, up to and including a determination that the applicant is ineligible for 
93.14 	future participation in broadband grant programs funded by the department.

93.15 	Sec. 3. [181.912] UNDERGROUND TELECOMMUNICATIONS 
93.16 	INFRASTRUCTURE.
93.17 		Subdivision 1.Definitions. For the purposes of this section:
93.18 	(1) "directional drilling" means a drilling method that utilizes a steerable drill bit to cut 
93.19 	a bore hole for installing underground utilities;
93.20 	(2) "safety-qualified underground telecommunications installer" means a person who 
93.21 	has completed underground utilities installation certification under subdivision 3;
93.22 	(3) "underground telecommunications utilities" means buried broadband, telephone and 
93.23 	other telecommunications transmission, distribution and service lines, and associated 
93.24 	facilities; and
93.25 	(4) "underground utilities" means buried electric transmission and distribution lines, gas 
93.26 	and hazardous liquids pipelines and distribution lines, sewer and water pipelines, telephone 
93.27 	or telecommunications lines, and associated facilities.
93.28 		Subd. 2.Installation requirements. The installation of underground telecommunications 
93.29 	infrastructure that is located within ten feet of existing underground utilities or that crosses 
93.30 	said utilities must be performed by safety-qualified underground telecommunications 
93.31 	installers as follows:
94.1 	(1) the location of existing utilities by hand or hydro excavation or other accepted methods 
94.2 	must be performed by a safety-qualified underground telecommunications installer;
94.3 	(2) where telecommunications infrastructure is installed by means of directional drilling, 
94.4 	the monitoring of the location and depth of the drill head must be performed by a 
94.5 	safety-qualified underground telecommunications installer; and
94.6 	(3) no less than two safety-qualified underground telecommunications installers must 
94.7 	be present at all times at any location where telecommunications infrastructure is being 
94.8 	installed by means of directional drilling.
94.9 		Subd. 3.Certification Standards. (a) The commissioner of labor and industry shall 
94.10 	approve standards for a safety-qualified underground telecommunications installer 
94.11 	certification program that requires a person to:
94.12 	(1) complete a 40-hour initial course that includes classroom and hands-on instruction 
94.13 	covering proper work procedures for safe installation of underground utilities, including:
94.14 	(i) regulations applicable to excavation near existing utilities;
94.15 	(ii) identification, location, and verification of utility lines using hand or hydro excavation 
94.16 	or other accepted methods;
94.17 	(iii) response to line strike incidents;
94.18 	(iv) traffic control procedures;
94.19 	(v) use of a tracking device to safely guide directional drill equipment along a drill path; 
94.20 	and
94.21 	(vi) avoidance and mitigation of safety hazards posed by underground utility installation 
94.22 	projects;
94.23 	(2) demonstrate knowledge of the course material by successfully completing an 
94.24 	examination approved by the commissioner; and
94.25 	(3) complete a four-hour refresher course within three years of completing the original 
94.26 	course and every three years thereafter in order to maintain certification.
94.27 	(b) The commissioner must develop an approval process for training providers under 
94.28 	this subdivision, and may suspend or revoke the approval of any training provider that fails 
94.29 	to demonstrate consistent delivery of approved curriculum or success in preparing participants 
94.30 	to complete the examination.

95.1 	EFFECTIVE DATE. The requirement for use of safety-qualified underground 
95.2 	telecommunications installers under subdivision 2 is effective on July 1, 2025.

95.3 	Sec. 4. Minnesota Statutes 2022, section 216B.17, is amended by adding a subdivision to 
95.4 	read:
95.5 		Subd. 9.Telecommunications and cable communications systems. (a) The commission 
95.6 	has authority under this section to investigate, upon complaint or on its own motion, conduct 
95.7 	by or on behalf of a telecommunications carrier, telephone company, or cable 
95.8 	communications system provider that impacts public utility or cooperative electric association 
95.9 	infrastructure. If the commission finds that the conduct damaged or unreasonably interfered 
95.10 	with the function of the infrastructure, the commission may take any action authorized under 
95.11 	sections 216B.52 to 216B.61 with respect to the provider.
95.12 	(b) For purposes of this subdivision:
95.13 	(1) "telecommunications carrier" has the meaning given in section 237.01, subdivision 
95.14 	6;
95.15 	(2) "telephone company" has the meaning given in section 237.01, subdivision 7; and
95.16 	(3) "cable communications system provider" means an owner or operator of a cable 
95.17 	communications system as defined in section 238.02, subdivision 3.

95.18 	Sec. 5. Minnesota Statutes 2022, section 299J.01, is amended to read:
95.19 	299J.01 AUTHORITY OF OFFICE OF PIPELINE SAFETY.
95.20 	The commissioner of public safety shall, to the extent authorized by agreement with the 
95.21 	United States Secretary of Transportation, act as agent for the United States Secretary of 
95.22 	Transportation to implement the federal Hazardous Liquid Pipeline Safety Act, United 
95.23 	States Code, title 49, sections 2001 to 2014, the federal and Natural Gas Pipeline Safety 
95.24 	Act acts, United States Code, title 49, sections 1671 to 1686 60101 to 60141, and federal 
95.25 	pipeline safety regulations with respect to interstate pipelines located within this state. The 
95.26 	commissioner shall, to the extent authorized by federal law, regulate pipelines in the state 
95.27 	as authorized by sections 299J.01 to 299J.17 and 299F.56 to 299F.641.

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

96.6 	Sec. 7. Minnesota Statutes 2022, section 299J.04, subdivision 2, is amended to read:
96.7 		Subd. 2.Delegated duties. (a) The commissioner shall seek and accept federal 
96.8 	designation of the office's pipeline inspectors as federal agents for the purposes of 
96.9 	enforcement of the federal Hazardous Liquid Pipeline Safety Act, United States Code, title 
96.10 	49, sections 2001 to 2014, the federal and Natural Gas Pipeline Safety Act acts, United 
96.11 	States Code, title 49, sections 1671 to 1686 60101 to 60141, and federal rules adopted to 
96.12 	implement those acts. The commissioner shall establish and submit to the United States 
96.13 	Secretary of Transportation an inspection program that complies with requirements for 
96.14 	delegated interstate agent inspection authority.
96.15 	(b) To the extent that federal delegation of interstate agent inspection authority permits, 
96.16 	the inspection program for interstate pipelines and LNG facilities must be the same as the 
96.17 	inspection program for intrastate pipelines and LNG facilities. If the United States Secretary 
96.18 	of Transportation delegates inspection authority to the state as provided in this subdivision, 
96.19 	the commissioner, at a minimum, shall do the following to carry out the delegated federal 
96.20 	authority:
96.21 	(1) inspect pipelines and LNG facilities periodically as specified in the inspection 
96.22 	program;
96.23 	(2) collect inspection fees;
96.24 	(3) order and oversee the testing of pipelines and LNG facilities as authorized by federal 
96.25 	law and regulations; and
96.26 	(4) file reports with the United States Secretary of Transportation as required to maintain 
96.27 	the delegated inspection authority.

96.28 	Sec. 8. Minnesota Statutes 2022, section 299J.11, is amended to read:
96.29 	299J.11 ADOPTION OF FEDERAL PIPELINE INSPECTION RULES.
96.30 	(a) To enable the state to act as an agent of the United States Secretary of Transportation 
96.31 	and to qualify for annual federal certification to enforce the federal pipeline inspection 
97.1 	program authorized by the Hazardous Liquid Pipeline Safety Act, United States Code, title
97.2 	49, sections 2001 to 2014, the federal and Natural Gas Pipeline Safety Act acts, United 
97.3 	States Code, title 49, sections 1671 to 1686 60101 to 60141, and the rules implementing 
97.4 	those acts, the federal pipeline inspection rules and safety standards, and regulations and 
97.5 	standards that may be adopted that amend them, are adopted.
97.6 	(b) An individual or contractor performing construction or maintenance work within 20 
97.7 	feet of a utility corridor must comply with the operator qualification rules set forth in Code 
97.8 	of Federal Regulations, title 49, parts 192, subpart N, and 195, subpart G.
97.9 	(c) An individual or contractor performing construction or maintenance work within 20 
97.10 	feet of a utility corridor must comply with the workplace drug and alcohol testing rules set 
97.11 	forth in Code of Federal Regulations, title 49, part 40.

97.12 	Sec. 9. REPEALER.
 97.13 	Minnesota Statutes 2022, section 116J.398, is repealed.

97.14 	ARTICLE 10
97.15 	EMPLOYEE MISCLASSIFICATION PROHIBITED

97.16 	Section 1. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 1, is amended 
97.17 	to read:
97.18 		Subdivision 1.Examination of records. The commissioner may enter during reasonable 
97.19 	office hours or upon request and inspect the place of business or employment of any employer 
97.20 	of employees working in the state, to examine and inspect books, registers, payrolls, and 
97.21 	other records of any employer that in any way relate to wages, hours, and other conditions 
97.22 	of employment of any employees. The commissioner may transcribe any or all of the books, 
97.23 	registers, payrolls, and other records as the commissioner deems necessary or appropriate 
97.24 	and may question the employer, employees, and other persons to ascertain compliance with 
97.25 	any of the sections 177.21 to 177.435 and 181.165 listed in subdivision 4. The commissioner 
97.26 	may investigate wage claims or complaints by an employee against an employer if the failure 
97.27 	to pay a wage may violate Minnesota law or an order or rule of the department.

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

98.1 	Sec. 2. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 2, is amended 
98.2 	to read:
98.3 		Subd. 2.Submission of records; penalty. The commissioner may require the employer 
98.4 	of employees working in the state to submit to the commissioner photocopies, certified 
98.5 	copies, or, if necessary, the originals of employment records that relate to employment or 
98.6 	employment status which the commissioner deems necessary or appropriate. The records 
98.7 	which may be required include full and correct statements in writing, including sworn 
98.8 	statements by the employer, containing information relating to wages, hours, names, 
98.9 	addresses, and any other information pertaining to the employer's employees and the 
98.10 	conditions of their employment as the commissioner deems necessary or appropriate.
98.11 	The commissioner may require the records to be submitted by certified mail delivery 
98.12 	or, if necessary, by personal delivery by the employer or a representative of the employer, 
98.13 	as authorized by the employer in writing.
98.14 	The commissioner may fine the employer up to $10,000 for each failure to submit or 
98.15 	deliver records as required by this section. This penalty is in addition to any penalties 
98.16 	provided under section 177.32, subdivision 1. In determining the amount of a civil penalty 
98.17 	under this subdivision, the appropriateness of such penalty to the size of the employer's 
98.18 	business and the gravity of the violation shall be considered.

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

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

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

98.26 	Sec. 4. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 4, is amended 
98.27 	to read:
98.28 		Subd. 4.Compliance orders. The commissioner may issue an order requiring an 
98.29 	employer to comply with sections 177.21 to 177.435, 179.86, 181.02, 181.03, 181.031, 
98.30 	181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 181.172, paragraph 
98.31 	(a) or (d), 181.214 to 181.217, 181.275, subdivision 2a, 181.635, 181.722, 181.723, 181.79, 
98.32 	181.85 to 181.89, 181.939 to 181.943, 181.9445 to 181.9448, 181.987, 181.991, 268B.09, 
99.1 	subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under section 
99.2 	177.28, 181.213, or 181.215. The commissioner shall issue an order requiring an employer 
99.3 	to comply with sections 177.41 to 177.435, 181.165, or 181.987 if the violation is repeated. 
99.4 	For purposes of this subdivision only, a violation is repeated if at any time during the two 
99.5 	years that preceded the date of violation, the commissioner issued an order to the employer 
99.6 	for violation of sections 177.41 to 177.435, 181.165, or 181.987 and the order is final or 
99.7 	the commissioner and the employer have entered into a settlement agreement that required 
99.8 	the employer to pay back wages that were required by sections 177.41 to 177.435. The 
99.9 	department shall serve the order upon the employer or the employer's authorized 
99.10 	representative in person or by certified mail at the employer's place of business. An employer 
99.11 	who wishes to contest the order must file written notice of objection to the order with the 
99.12 	commissioner within 15 calendar days after being served with the order. A contested case 
99.13 	proceeding must then be held in accordance with sections 14.57 to 14.69 or 181.165. If, 
99.14 	within 15 calendar days after being served with the order, the employer fails to file a written 
99.15 	notice of objection with the commissioner, the order becomes a final order of the 
99.16 	commissioner. For the purposes of this subdivision, an employer includes a contractor that 
99.17 	has assumed a subcontractor's liability within the meaning of section 181.165.

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

99.19 	Sec. 5. Minnesota Statutes 2023 Supplement, section 177.27, subdivision 7, is amended 
99.20 	to read:
99.21 		Subd. 7.Employer liability. If an employer is found by the commissioner to have 
99.22 	violated a section identified in subdivision 4, or any rule adopted under section 177.28, 
99.23 	181.213, or 181.215, and the commissioner issues an order to comply, the commissioner 
99.24 	shall order the employer to cease and desist from engaging in the violative practice and to 
99.25 	take such affirmative steps that in the judgment of the commissioner will effectuate the 
99.26 	purposes of the section or rule violated. In addition to remedies, damages, and penalties 
99.27 	provided for in the violated section, the commissioner shall order the employer to pay to 
99.28 	the aggrieved parties back pay, gratuities, and compensatory damages, less any amount 
99.29 	actually paid to the employee aggrieved parties by the employer, and for an additional equal 
99.30 	amount as liquidated damages. Any employer who is found by the commissioner to have 
99.31 	repeatedly or willfully violated a section or sections identified in subdivision 4 shall be 
99.32 	subject to a an additional civil penalty of up to $10,000 for each violation for each employee. 
99.33 	In determining the amount of a civil penalty under this subdivision, the appropriateness of 
99.34 	such penalty to the size of the employer's business and the gravity of the violation shall be 
99.35 	considered. In addition, the commissioner may order the employer to reimburse the 
100.1 	department and the attorney general for all appropriate litigation and hearing costs expended 
100.2 	in preparation for and in conducting the contested case proceeding, unless payment of costs 
100.3 	would impose extreme financial hardship on the employer. If the employer is able to establish 
100.4 	extreme financial hardship, then the commissioner may order the employer to pay a 
100.5 	percentage of the total costs that will not cause extreme financial hardship. Costs include 
100.6 	but are not limited to the costs of services rendered by the attorney general, private attorneys 
100.7 	if engaged by the department, administrative law judges, court reporters, and expert witnesses 
100.8 	as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance 
100.9 	of a commissioner's order from the date the order is signed by the commissioner until it is 
100.10 	paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). The 
100.11 	commissioner may establish escrow accounts for purposes of distributing remedies and
100.12 	damages.

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

100.14 	Sec. 6. Minnesota Statutes 2022, section 181.171, subdivision 1, is amended to read:
100.15 		Subdivision 1.Civil action; damages. A person may bring a civil action seeking redress 
100.16 	for violations of sections 181.02, 181.03, 181.031, 181.032, 181.08, 181.09, 181.10, 181.101, 
100.17 	181.11, 181.13, 181.14, 181.145, and181.15, 181.722, and 181.723 directly to district court. 
100.18 	An employer who is found to have violated the above sections is liable to the aggrieved 
100.19 	party for the civil penalties or damages provided for in the section violated. An employer 
100.20 	who is found to have violated the above sections shall also be liable for compensatory 
100.21 	damages and other appropriate relief including but not limited to injunctive relief.

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

100.23 	Sec. 7. Minnesota Statutes 2022, section 181.722, is amended to read:
100.24 	181.722 MISREPRESENTATION MISCLASSIFICATION OF EMPLOYMENT 
100.25 	RELATIONSHIP PROHIBITED EMPLOYEES.
100.26 		Subdivision 1.Prohibition Prohibited activities related to employment status. No 
100.27 	employer shall misrepresent the nature of its employment relationship with its employees 
100.28 	to any federal, state, or local government unit; to other employers; or to its employees. An 
100.29 	employer misrepresents the nature of its employment relationship with its employees if it 
100.30 	makes any statement regarding the nature of the relationship that the employer knows or 
100.31 	has reason to know is untrue and if it fails to report individuals as employees when legally 
100.32 	required to do so.
101.1 	(a) A person shall not:
101.2 	(1) fail to classify, represent, or treat an individual who is the person's employee pursuant 
101.3 	to subdivision 3 as an employee in accordance with the requirements of any applicable local, 
101.4 	state, or federal law. A violation under this clause is in addition to any violation of local, 
101.5 	state, or federal law;
101.6 	(2) fail to report or disclose to any person or to any local, state, or federal government 
101.7 	agency an individual who is the person's employee pursuant to subdivision 3 as an employee 
101.8 	when required to do so under any applicable local, state, or federal law. Each failure to 
101.9 	report or disclose an individual as an employee shall constitute a separate violation of this 
101.10 	clause; or
101.11 	(3) require or request an individual who is the person's employee pursuant to subdivision 
101.12 	3 to enter into any agreement or complete any document that misclassifies, misrepresents, 
101.13 	or treats the individual as an independent contractor or otherwise does not reflect that the 
101.14 	individual is the person's employee pursuant to subdivision 3. Each agreement or completed 
101.15 	document constitutes a separate violation of this provision.
101.16 	(b) An owner, partner, principal, member, officer, or agent, on behalf of the person, who 
101.17 	knowingly or repeatedly engaged in any of the prohibited activities in this subdivision may 
101.18 	be held individually liable.
101.19 	(c) An order issued by the commissioner to a person for engaging in any of the prohibited 
101.20 	activities in this subdivision is in effect against any successor person. A person is a successor 
101.21 	person if the person shares three or more of the following with the person to whom the order 
101.22 	was issued:
101.23 	(1) has one or more of the same owners, members, principals, officers, or managers;
101.24 	(2) performs similar work within the state of Minnesota;
101.25 	(3) has one or more of the same telephone or fax numbers;
101.26 	(4) has one or more of the same email addresses or websites;
101.27 	(5) employs or engages substantially the same individuals to provide or perform services;
101.28 	(6) utilizes substantially the same vehicles, facilities, or equipment; or
101.29 	(7) lists or advertises substantially the same project experience and portfolio of work.
101.30 		Subd. 1a.Definitions. (a) "Person" means any individual, sole proprietor, limited liability 
101.31 	company, limited liability partnership, corporation, partnership, incorporated or 
101.32 	unincorporated association, joint stock company, or any other legal or commercial entity.
102.1 	(b) "Department" means the Department of Labor and Industry.
102.2 	(c) "Commissioner" means the commissioner of labor and industry or a duly designated 
102.3 	representative of the commissioner who is either an employee of the Department of Labor 
102.4 	and Industry or a person working under contract with the Department of Labor and Industry.
102.5 	(d) "Individual" means a human being.
102.6 	(e) "Knowingly" means knew or could have known with the exercise of reasonable 
102.7 	diligence.
102.8 		Subd. 2.Agreements to misclassify prohibited. No employer shall require or request 
102.9 	any employee to enter into any agreement, or sign any document, that results in 
102.10 	misclassification of the employee as an independent contractor or otherwise does not 
102.11 	accurately reflect the employment relationship with the employer.
102.12 		Subd. 3.Determination of employment relationship. For purposes of this section, the 
102.13 	nature of an employment relationship is determined using the same tests and in the same 
102.14 	manner as employee status is determined under the applicable workers' compensation and 
102.15 	unemployment insurance program laws and rules.
102.16 		Subd. 4.Civil remedy Damages and penalties. A construction worker, as defined in 
102.17 	section 179.254, who is not an independent contractor and has been injured by a violation 
102.18 	of this section, may bring a civil action for damages against the violator. If the construction 
102.19 	worker injured is an employee of the violator of this section, the employee's representative, 
102.20 	as defined in section 179.01, subdivision 5, may bring a civil action for damages against 
102.21 	the violator on behalf of the employee. The court may award attorney fees, costs, and 
102.22 	disbursements to a construction worker recovering under this section.
102.23 	(a) The following damages and penalties may be imposed for a violation of this section:
102.24 	(1) compensatory damages to the individual the person has failed to classify, represent, 
102.25 	or treat as an employee pursuant to subdivision 3. Compensatory damages includes but is 
102.26 	not limited to the value of supplemental pay including minimum wage; overtime; shift 
102.27 	differentials; vacation pay, sick pay, and other forms of paid time off; health insurance; life 
102.28 	and disability insurance; retirement plans; savings plans and any other form of benefit; 
102.29 	employer contributions to unemployment insurance; Social Security and Medicare; and any 
102.30 	costs and expenses incurred by the individual resulting from the person's failure to classify, 
102.31 	represent, or treat the individual as an employee;
102.32 	(2) a penalty of up to $10,000 for each individual the person failed to classify, represent, 
102.33 	or treat as an employee pursuant to subdivision 3;
103.1 	(3) a penalty of up to $10,000 for each violation of subdivision 1; and
103.2 	(4) a penalty of $1,000 for each person who delays, obstructs, or otherwise fails to 
103.3 	cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure 
103.4 	to cooperate constitutes a separate violation.
103.5 	(b) This section may be investigated and enforced under the commissioner's authority 
103.6 	under state law.
103.7 		Subd. 5.Reporting of violations. Any court finding that a violation of this section has 
103.8 	occurred shall transmit a copy of its findings of fact and conclusions of law to the 
103.9 	commissioner of labor and industry. The commissioner of labor and industry shall report 
103.10 	the finding to relevant local, state, and federal agencies, including the commissioner of 
103.11 	commerce, the commissioner of employment and economic development, the commissioner 
103.12 	of revenue, the federal Internal Revenue Service, and the United States Department of Labor.

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

103.14 	Sec. 8. Minnesota Statutes 2022, section 181.723, is amended to read:
103.15 	181.723 MISCLASSIFICATION OF CONSTRUCTION CONTRACTORS
103.16 	EMPLOYEES.
103.17 		Subdivision 1.Definitions. The definitions in this subdivision apply to this section.
103.18 	(a) "Person" means any individual, sole proprietor, limited liability company, limited 
103.19 	liability partnership, corporation, partnership, incorporated or unincorporated association, 
103.20 	sole proprietorship, joint stock company, or any other legal or commercial entity.
103.21 	(b) "Department" means the Department of Labor and Industry.
103.22 	(c) "Commissioner" means the commissioner of labor and industry or a duly designated 
103.23 	representative of the commissioner who is either an employee of the Department of Labor 
103.24 	and Industry or person working under contract with the Department of Labor and Industry.
103.25 	(d) "Individual" means a human being.
103.26 	(e) "Day" means calendar day unless otherwise provided.
103.27 	(f) "Knowingly" means knew or could have known with the exercise of reasonable 
103.28 	diligence.
103.29 	(g) "Business entity" means a person other than an individual or a sole proprietor as that 
103.30 	term is defined in paragraph (a), except the term does not include an individual.
104.1 	(h) "Independent contractor" means a business entity that meets all the requirements 
104.2 	under subdivision 4, paragraph (a).
104.3 		Subd. 2.Limited application. This section only applies to individuals persons providing 
104.4 	or performing public or private sector commercial or residential building construction or 
104.5 	improvement services. Building construction andor improvement services do not include
104.6 	all public or private sector commercial or residential building construction or improvement 
104.7 	services except for: (1) the manufacture, supply, or sale of products, materials, or 
104.8 	merchandise; (2) landscaping services for the maintenance or removal of existing plants, 
104.9 	shrubs, trees, and other vegetation, whether or not the services are provided as part of a 
104.10 	contract for the building construction or improvement services; and (3) all other landscaping 
104.11 	services, unless the other landscaping services are provided as part of a contract for the 
104.12 	building construction or improvement services.
104.13 		Subd. 3.Employee-employer relationship. Except as provided in subdivision 4, for 
104.14 	purposes of chapters 176, 177, 181, 181A, 182, and 268, as of January 1, 2009 and 326B, 
104.15 	an individual who provides or performs building construction or improvement services for 
104.16 	a person that are in the course of the person's trade, business, profession, or occupation is 
104.17 	an employee of that person and that person is an employer of the individual.
104.18 		Subd. 4.Independent contractor. (a) An individual is an independent contractor and 
104.19 	not an employee of the person for whom the individual is providing or performing services 
104.20 	in the course of the person's trade, business, profession, or occupation only if the individual
104.21 	is operating as a business entity that meets all of the following requirements at the time the 
104.22 	services were provided or performed:
104.23 	(1) maintains a separate business with the individual's own office, equipment, materials, 
104.24 	and other facilities;
104.25 	(2)(i) holds or has applied for a federal employer identification number or (ii) has filed 
104.26 	business or self-employment income tax returns with the federal Internal Revenue Service 
104.27 	if the individual has performed services in the previous year;
104.28 	(3) is operating under contract to perform the specific services for the person for specific 
104.29 	amounts of money and under which the individual controls the means of performing the 
104.30 	services;
104.31 	(4) is incurring the main expenses related to the services that the individual is performing 
104.32 	for the person under the contract;
105.1 	(5) is responsible for the satisfactory completion of the services that the individual has 
105.2 	contracted to perform for the person and is liable for a failure to complete the services;
105.3 	(6) receives compensation from the person for the services performed under the contract 
105.4 	on a commission or per-job or competitive bid basis and not on any other basis;
105.5 	(7) may realize a profit or suffer a loss under the contract to perform services for the 
105.6 	person;
105.7 	(8) has continuing or recurring business liabilities or obligations; and
105.8 	(9) the success or failure of the individual's business depends on the relationship of 
105.9 	business receipts to expenditures.
105.10 	An individual who is not registered, if required by section 326B.701, is presumed to be 
105.11 	an employee of a person for whom the individual performs services in the course of the 
105.12 	person's trade, business, profession, or occupation. The person for whom the services were 
105.13 	performed may rebut this presumption by showing that the unregistered individual met all 
105.14 	nine factors in this paragraph at the time the services were performed.
105.15 	(b) If an individual is an owner or partial owner of a business entity, the individual is 
105.16 	an employee of the person for whom the individual is performing services in the course of 
105.17 	the person's trade, business, profession, or occupation, and is not an employee of the business 
105.18 	entity in which the individual has an ownership interest, unless:
105.19 	(1) the business entity meets the nine factors in paragraph (a);
105.20 	(2) invoices and payments are in the name of the business entity; and
105.21 	(3) the business entity is registered with the secretary of state, if required.
105.22 	If the business entity in which the individual has an ownership interest is not registered, 
105.23 	if required by section 326B.701, the individual is presumed to be an employee of a person 
105.24 	for whom the individual performs services and not an employee of the business entity in 
105.25 	which the individual has an ownership interest. The person for whom the services were 
105.26 	performed may rebut the presumption by showing that the business entity met the 
105.27 	requirements of clauses (1) to (3) at the time the services were performed.
105.28 	(1) was established and maintained separately from and independently of the person for 
105.29 	whom the services were provided or performed;
105.30 	(2) owns, rents, or leases equipment, tools, vehicles, materials, supplies, office space, 
105.31 	or other facilities that are used by the business entity to provide or perform building 
105.32 	construction or improvement services;
106.1 	(3) provides or performs, or offers to provide or perform, the same or similar building 
106.2 	construction or improvement services for multiple persons or the general public;
106.3 	(4) is in compliance with all of the following:
106.4 	(i) holds a federal employer identification number if required by federal law;
106.5 	(ii) holds a Minnesota tax identification number if required by Minnesota law;
106.6 	(iii) has received and retained 1099 forms for income received for building construction 
106.7 	or improvement services provided or performed, if required by Minnesota or federal law;
106.8 	(iv) has filed business or self-employment income tax returns, including estimated tax 
106.9 	filings, with the federal Internal Revenue Service and the Department of Revenue, as the 
106.10 	business entity or as a self-employed individual reporting income earned, for providing or 
106.11 	performing building construction or improvement services, if any, in the previous 12 months; 
106.12 	and
106.13 	(v) has completed and provided a W-9 federal income tax form to the person for whom 
106.14 	the services were provided or performed if required by federal law;
106.15 	(5) is in good standing as defined by section 5.26, if applicable;
106.16 	(6) has a Minnesota unemployment insurance account if required by chapter 268;
106.17 	(7) has obtained required workers' compensation insurance coverage if required by 
106.18 	chapter 176;
106.19 	(8) holds current business licenses, registrations, and certifications if required by chapter 
106.20 	326B and sections 327.31 to 327.36;
106.21 	(9) is operating under a written contract to provide or perform the specific services for 
106.22 	the person that:
106.23 	(i) is signed and dated by both an authorized representative of the business entity and 
106.24 	of the person for whom the services are being provided or performed;
106.25 	(ii) is fully executed no later than 30 days after the date work commences;
106.26 	(iii) identifies the specific services to be provided or performed under the contract;
106.27 	(iv) provides for compensation from the person for the services provided or performed 
106.28 	under the contract on a commission or per-job or competitive bid basis and not on any other 
106.29 	basis; and
106.30 	(v) the requirements of item (ii) shall not apply to change orders;
107.1 	(10) submits invoices and receives payments for completion of the specific services 
107.2 	provided or performed under the written proposal, contract, or change order in the name of 
107.3 	the business entity. Payments made in cash do not meet this requirement;
107.4 	(11) the terms of the written proposal, contract, or change order provide the business 
107.5 	entity control over the means of providing or performing the specific services, and the 
107.6 	business entity in fact controls the provision or performance of the specific services;
107.7 	(12) incurs the main expenses and costs related to providing or performing the specific 
107.8 	services under the written proposal, contract, or change order;
107.9 	(13) is responsible for the completion of the specific services to be provided or performed 
107.10 	under the written proposal, contract, or change order and is responsible, as provided under 
107.11 	the written proposal, contract, or change order, for failure to complete the specific services; 
107.12 	and
107.13 	(14) may realize additional profit or suffer a loss, if costs and expenses to provide or 
107.14 	perform the specific services under the written proposal, contract, or change order are less 
107.15 	than or greater than the compensation provided under the written proposal, contract, or 
107.16 	change order.
107.17 	(b)(1) Any individual providing or performing the services as or for a business entity is 
107.18 	an employee of the person who engaged the business entity, unless the business entity meets 
107.19 	all of the requirements under subdivision 4, paragraph (a).
107.20 	(2) Any individual who is determined to be the person's employee is acting as an agent 
107.21 	of and in the interest of the person when engaging any other individual or business entity 
107.22 	to provide or perform any portion of the services that the business entity was engaged by 
107.23 	the person to provide or perform.
107.24 	(3) Any individual engaged by an employee of the person, at any tier under the person, 
107.25 	is also the person's employee, unless the individual is providing or performing the services 
107.26 	as or for a business entity that meets the requirements of subdivision 4, paragraph (a).
107.27 	(4) Clauses (1) to (3) do not create an employee-employer relationship between a person 
107.28 	and an individual if: (i) there is an intervening business entity in the contractual chain 
107.29 	between the person and the individual that meets the requirements of subdivision 4, paragraph 
107.30 	(a); or (ii) the person establishes that an intervening business entity treats and classifies the 
107.31 	individual as an employee for purposes of, and in compliance with, chapters 176, 177, 181, 
107.32 	181A, 268, 268B, 270C, and 290.
108.1 		Subd. 7.Prohibited activities related to independent contractor status. (a) The 
108.2 	prohibited activities in this subdivision paragraphs (b) and (c) are in addition to those the 
108.3 	activities prohibited in sections 326B.081 to 326B.085.
108.4 	(b) An individual providing or performing building construction or improvement services 
108.5 	shall not hold himself or herself out represent themselves as an independent contractor 
108.6 	unless the individual is operating as a business entity that meets all the requirements of 
108.7 	subdivision 4, paragraph (a).
108.8 	(c) A person who provides or performs building construction or improvement services 
108.9 	in the course of the person's trade, business, occupation, or profession shall not:
108.10 	(1) as a condition of payment for services provided or performed, require an individual 
108.11 	through coercion, misrepresentation, or fraudulent means, who is an employee pursuant to 
108.12 	this section, to register as a construction contractor under section 326B.701, or to adopt or 
108.13 	agree to being classified, represented, or treated as an independent contractor status or form 
108.14 	a business entity. Each instance of conditioning payment to an individual who is an employee 
108.15 	on one of these conditions shall constitute a separate violation of this provision;
108.16 	(2) knowingly misrepresent or misclassify an individual as an independent contractor.
108.17 	fail to classify, represent, or treat an individual who is an employee pursuant to this section 
108.18 	as an employee in accordance with the requirements of any of the chapters listed in 
108.19 	subdivision 3. Failure to classify, represent, or treat an individual who is an employee 
108.20 	pursuant to this section as an employee in accordance with each requirement of a chapter 
108.21 	listed in subdivision 3 shall constitute a separate violation of this provision;
108.22 	(3) fail to report or disclose to any person or to any local, state, or federal government 
108.23 	agency an individual who is an employee pursuant to subdivision 3, as an employee when 
108.24 	required to do so under any applicable local, state, or federal law. Each failure to report or 
108.25 	disclose an individual as an employee shall constitute a separate violation of this provision;
108.26 	(4) require or request an individual who is an employee pursuant to this section to enter 
108.27 	into any agreement or complete any document that misclassifies, misrepresents, or treats 
108.28 	the individual as an independent contractor or otherwise does not reflect that the individual 
108.29 	is an employee pursuant to this section. Each agreement or completed document shall 
108.30 	constitute a separate violation of this provision; or
108.31 	(5) require an individual who is an employee under this section to register under section 
108.32 	326B.701.
109.1 	(d) In addition to the person providing or performing building construction or 
109.2 	improvement services in the course of the person's trade, business, occupation, or profession, 
109.3 	any owner, partner, principal, member, officer, or agent who engaged in any of the prohibited 
109.4 	activities in this subdivision knowingly or repeatedly may be held individually liable.
109.5 	(e) An order issued by the commissioner to a person for engaging in any of the prohibited 
109.6 	activities in this subdivision is in effect against any successor person. A person is a successor 
109.7 	person if the person shares three or more of the following with the person to whom the order 
109.8 	was issued:
109.9 	(1) has one or more of the same owners, members, principals, officers, or managers;
109.10 	(2) performs similar work within the state of Minnesota;
109.11 	(3) has one or more of the same telephone or fax numbers;
109.12 	(4) has one or more of the same email addresses or websites;
109.13 	(5) employs or engages substantially the same individuals to provide or perform building 
109.14 	construction or improvement services;
109.15 	(6) utilizes substantially the same vehicles, facilities, or equipment; or
109.16 	(7) lists or advertises substantially the same project experience and portfolio of work.
109.17 	(f) If a person who has engaged an individual to provide or perform building construction 
109.18 	or improvement services that are in the course of the person's trade, business, profession, 
109.19 	or occupation, classifies, represents, treats, reports, or discloses the individual as an 
109.20 	independent contractor, the person shall maintain, for at least three years, and in a manner 
109.21 	that may be readily produced to the commissioner upon demand, all the information and 
109.22 	documentation upon which the person based the determination that the individual met all 
109.23 	the requirements under subdivision 4, paragraph (a), at the time the individual was engaged 
109.24 	and at the time the services were provided or performed.
109.25 	(g) The following damages and penalties may be imposed for a violation of this section:
109.26 	(1) compensatory damages to the individual the person failed to classify, represent, or 
109.27 	treat as an employee pursuant to this section. Compensatory damages include but are not 
109.28 	limited to the value of supplemental pay including minimum wage; overtime; shift 
109.29 	differentials; vacation pay; sick pay; and other forms of paid time off; health insurance; life 
109.30 	and disability insurance; retirement plans; saving plans and any other form of benefit; 
109.31 	employer contributions to unemployment insurance; Social Security and Medicare and any 
110.1 	costs and expenses incurred by the individual resulting from the person's failure to classify, 
110.2 	represent, or treat the individual as an employee;
110.3 	(2) a penalty of up to $10,000 for each individual the person failed to classify, represent, 
110.4 	or treat as an employee pursuant to this section;
110.5 	(3) a penalty of up to $10,000 for each violation of this subdivision; and
110.6 	(4) a penalty of $1,000 for any person who delays, obstructs, or otherwise fails to 
110.7 	cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure 
110.8 	to cooperate constitutes a separate violation.
110.9 	(h) This section may be investigated and enforced under the commissioner's authority 
110.10 	under state law.
110.11 		Subd. 13.Rulemaking. The commissioner may, in consultation with the commissioner 
110.12 	of revenue and the commissioner of employment and economic development, adopt, amend, 
110.13 	suspend, and repeal rules under the rulemaking provisions of chapter 14 that relate to the 
110.14 	commissioner's responsibilities under this section. This subdivision is effective May 26, 
110.15 	2007.
110.16 		Subd. 15.Notice and review by commissioners of revenue and employment and 
110.17 	economic development. When the commissioner has reason to believe that a person has 
110.18 	violated subdivision 7, paragraph (b); or (c), clause (1) or (2), the commissioner must notify 
110.19 	the commissioner of revenue and the commissioner of employment and economic 
110.20 	development. Upon receipt of notification from the commissioner, the commissioner of 
110.21 	revenue must review the information returns required under section 6041A of the Internal 
110.22 	Revenue Code. The commissioner of revenue shall also review the submitted certification 
110.23 	that is applicable to returns audited or investigated under section 289A.35.

110.24 	EFFECTIVE DATE. This section is effective July 1, 2024, except that the amendments 
110.25 	to subdivision 4 are effective for building construction or improvement services provided 
110.26 	or performed on or after March 1, 2025.

110.27 	Sec. 9. [181.724] INTERGOVERNMENTAL MISCLASSIFICATION 
110.28 	ENFORCEMENT AND EDUCATION PARTNERSHIP ACT.
110.29 		Subdivision 1.Citation. This section and section 181.725 may be cited as the 
110.30 	"Intergovernmental Misclassification Enforcement and Education Partnership Act."
110.31 		Subd. 2.Policy and statement of purpose. It is the policy of the state of Minnesota to 
110.32 	prevent employers from misclassifying workers, because employee misclassification allows 
111.1 	an employer to illegally evade obligations under state labor, employment, and tax laws, 
111.2 	including but not limited to the laws governing minimum wage, overtime, unemployment 
111.3 	insurance, paid family medical leave, earned sick and safe time, workers' compensation 
111.4 	insurance, temporary disability insurance, the payment of wages, and payroll taxes.
111.5 		Subd. 3.Definitions. (a) For the purposes of this section and section 181.725, the 
111.6 	following terms have the meanings given, unless the language or context clearly indicates 
111.7 	that a different meaning is intended.
111.8 	(b) "Partnership entity" means one of the following governmental entities with jurisdiction 
111.9 	over employee misclassification in Minnesota:
111.10 	(1) the Department of Labor and Industry;
111.11 	(2) the Department of Revenue;
111.12 	(3) the Department of Employment and Economic Development;
111.13 	(4) the Department of Commerce; and
111.14 	(5) the attorney general in the attorney general's enforcement capacity under sections 
111.15 	177.45 and 181.1721.
111.16 	(c) "Employee misclassification" means the practice by an employer of not properly 
111.17 	classifying workers as employees.
111.18 		Subd. 4.Coordination, collaboration, and information sharing. For purposes of this 
111.19 	section, a partnership entity:
111.20 	(1) shall communicate with other entities to help detect and investigate instances of 
111.21 	employee misclassification;
111.22 	(2) may request from, provide to, or receive from the other partnership entities data 
111.23 	necessary for the purpose of detecting and investigating employee misclassification, unless 
111.24 	prohibited by federal law; and
111.25 	(3) may collaborate with one another when investigating employee misclassification, 
111.26 	unless prohibited by federal law. Collaboration includes but is not limited to referrals, 
111.27 	strategic enforcement, and joint investigations by two or more partnership entities.

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

112.1 	Sec. 10. [181.725] INTERGOVERNMENTAL MISCLASSIFICATION 
112.2 	ENFORCEMENT AND EDUCATION PARTNERSHIP.
112.3 		Subdivision 1.Composition. The Intergovernmental Misclassification Enforcement and 
112.4 	Education Partnership is composed of the following members or their designees, who shall 
112.5 	serve on behalf of their respective partnership entities:
112.6 	(1) the commissioner of labor and industry;
112.7 	(2) the commissioner of revenue;
112.8 	(3) the commissioner of employment and economic development;
112.9 	(4) the commissioner of commerce; and
112.10 	(5) the attorney general.
112.11 		Subd. 2.Meetings. The commissioner of labor and industry, in consultation with other 
112.12 	members of the partnership, shall convene and lead meetings of the partnership to discuss 
112.13 	issues related to the investigation of employee misclassification and public outreach. 
112.14 	Members of the partnership may select a designee to attend any such meeting. Meetings 
112.15 	must occur at least quarterly.
112.16 		Subd. 2a.Additional meetings. (a) In addition to regular quarterly meetings under 
112.17 	subdivision 2, the commissioner of labor and industry, in consultation with members of the 
112.18 	partnership, may convene and lead additional meetings for the purpose of discussing and 
112.19 	making recommendations under subdivision 4a.
112.20 	(b) This subdivision expires July 31, 2025, unless a different expiration date is specified 
112.21 	in law.
112.22 		Subd. 3.Roles. Each partnership entity may use the information received through its 
112.23 	participation in the partnership to investigate employee misclassification within their relevant 
112.24 	jurisdictions as follows:
112.25 	(1) the Department of Labor and Industry in its enforcement authority under chapters 
112.26 	176, 177, and 181;
112.27 	(2) the Department of Revenue in its enforcement authority under chapters 289A and 
112.28 	290;
112.29 	(3) the Department of Employment and Economic Development in its enforcement 
112.30 	authority under chapters 268 and 268B;
113.1 	(4) the Department of Commerce in its enforcement authority under chapters 45, 60A, 
113.2 	60K, 79, and 79A; and
113.3 	(5) the attorney general in the attorney general's enforcement authority under sections 
113.4 	177.45 and 181.1721.
113.5 		Subd. 4.Annual presentation to the legislature. At the request of the chairs, the 
113.6 	Intergovernmental Misclassification Enforcement and Education Partnership shall present 
113.7 	annually to members of the house of representatives and senate committees with jurisdiction 
113.8 	over labor. The presentation shall include information about how the partnership carried 
113.9 	out its duties during the preceding calendar year.
113.10 		Subd. 4a.First presentation. (a) By March 1, 2025, the Intergovernmental 
113.11 	Misclassification Enforcement and Education Partnership shall make its first presentation 
113.12 	to members of the house of representatives and senate committees with jurisdiction over 
113.13 	labor. The first presentation may be made in a form and manner determined by the 
113.14 	partnership. In addition to providing information about how the partnership carried out its 
113.15 	duties in its first year, the presentation shall include the following information and 
113.16 	recommendations, including any budget requests to carry out the recommendations:
113.17 	(1) consider any staffing recommendations for the partnership and each partnership 
113.18 	entity to carry out the duties and responsibilities under this section;
113.19 	(2) provide a summary of the industries, areas, and employers with high numbers of 
113.20 	misclassification violations and recommendations for proactive review and enforcement 
113.21 	efforts;
113.22 	(3) propose a system for making cross referrals between partnership entities;
113.23 	(4) identify cross-training needs and a proposed cross-training plan; and
113.24 	(5) propose a metric or plan for monitoring and assessing:
113.25 	(i) the number and severity of employee misclassification violations; and
113.26 	(ii) the adequacy and effectiveness of the partnership's duties related to employee 
113.27 	misclassification, including but not limited to the partnership's efforts on education, outreach, 
113.28 	detection, investigation, deterrence, and enforcement of employee misclassification.
113.29 	(b) This subdivision expires July 31, 2025, unless a different expiration date is specified 
113.30 	in law.
113.31 		Subd. 5.Separation. The Intergovernmental Misclassification Enforcement and 
113.32 	Education Partnership is not a separate agency or board and is not subject to chapter 13D. 
114.1 	Data shared or created by the partnership entities under this section or section 181.724 are 
114.2 	subject to chapter 13 and hold the data classification prescribed by law.
114.3 		Subd. 6.Duties. The Intergovernmental Misclassification Enforcement and Education 
114.4 	Partnership shall:
114.5 	(1) set goals to maximize Minnesota's efforts to detect, investigate, and deter employee 
114.6 	misclassification;
114.7 	(2) share information to facilitate the detection and investigation of employee 
114.8 	misclassification;
114.9 	(3) develop a process or procedure that provides a person with relevant information and 
114.10 	connects them with relevant partnership entities, regardless of which partnership entity that 
114.11 	person contacts for assistance;
114.12 	(4) identify best practices in investigating employee misclassification;
114.13 	(5) identify resources needed for better enforcement of employee misclassification;
114.14 	(6) inform and educate stakeholders on rights and responsibilities related to employee 
114.15 	misclassification;
114.16 	(7) serve as a unified point of contact for workers, businesses, and the public impacted 
114.17 	by misclassification;
114.18 	(8) inform the public on enforcement actions taken by the partnership entities; and
114.19 	(9) perform other duties as necessary to:
114.20 	(i) increase the effectiveness of detection, investigation, enforcement, and deterrence of 
114.21 	employee misclassification; and
114.22 	(ii) carry out the purposes of the partnership.
114.23 		Subd. 7.Public outreach. (a) The commissioner of labor and industry shall maintain 
114.24 	on the department's website information about the Intergovernmental Misclassification 
114.25 	Enforcement and Education Partnership, including information about how to file a complaint 
114.26 	related to employee misclassification.
114.27 	(b) Each partnership entity shall maintain on its website information about worker 
114.28 	classification laws, including requirements for employers and employees, consequences for 
114.29 	misclassifying workers, and contact information for other partnership entities.
114.30 		Subd. 8.No limitation of other duties. This section does not limit the duties or 
114.31 	authorities of a partnership entity, or any other government entity, under state law.

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

115.2 	Sec. 11. Minnesota Statutes 2022, section 270B.14, subdivision 17, is amended to read:
115.3 		Subd. 17.Disclosure to Department of Commerce. (a) The commissioner may disclose 
115.4 	to the commissioner of commerce information required to administer the Uniform Disposition 
115.5 	of Unclaimed Property Act in sections 345.31 to 345.60, including the Social Security 
115.6 	numbers of the taxpayers whose refunds are on the report of abandoned property submitted 
115.7 	by the commissioner to the commissioner of commerce under section 345.41. Except for 
115.8 	data published under section 345.42, the information received that is private or nonpublic 
115.9 	data retains its classification, and can be used by the commissioner of commerce only for 
115.10 	the purpose of verifying that the persons claiming the refunds are the owners.
115.11 	(b) The commissioner may disclose a return or return information to the commissioner 
115.12 	of commerce under section 45.0135 to the extent necessary to investigate employer 
115.13 	compliance with section 176.181.

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

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

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

115.21 	Sec. 13. Minnesota Statutes 2022, section 326B.081, subdivision 3, is amended to read:
115.22 		Subd. 3.Applicable law. "Applicable law" means the provisions of sections 181.165, 
115.23 	181.722, 181.723, 325E.66, 327.31 to 327.36, this chapter, and chapter 341, and all rules, 
115.24 	orders, stipulation agreements, settlements, compliance agreements, licenses, registrations, 
115.25 	certificates, and permits adopted, issued, or enforced by the department under sections 
115.26 	181.165, 181.722, 181.723, 325E.66, 327.31 to 327.36, this chapter, or chapter 341.

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

115.28 	Sec. 14. Minnesota Statutes 2022, section 326B.081, subdivision 6, is amended to read:
115.29 		Subd. 6.Licensing order. "Licensing order" means an order issued under section 
115.30 	326B.082, subdivision 12, paragraph (a).

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

116.2 	Sec. 15. Minnesota Statutes 2022, section 326B.081, subdivision 8, is amended to read:
116.3 		Subd. 8.Stop work order. "Stop work order" means an order issued under section 
116.4 	326B.082, subdivision 10.

116.5 	EFFECTIVE DATE. This section is effective March 1, 2025.

116.6 	Sec. 16. Minnesota Statutes 2022, section 326B.082, subdivision 1, is amended to read:
116.7 		Subdivision 1.Remedies available. The commissioner may enforce all applicable law 
116.8 	under this section. The commissioner may use any enforcement provision in this section, 
116.9 	including the assessment of monetary penalties, against a person required to have a license, 
116.10 	registration, certificate, or permit under the applicable law based on conduct that would 
116.11 	provide grounds for action against a licensee, registrant, certificate holder, or permit holder 
116.12 	under the applicable law. The use of an enforcement provision in this section shall not 
116.13 	preclude the use of any other enforcement provision in this section or otherwise provided 
116.14 	by law. The commissioner's investigation and enforcement authority under this section may 
116.15 	be used by the commissioner in addition to or as an alternative to any other investigation 
116.16 	and enforcement authority provided by law.

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

116.18 	Sec. 17. Minnesota Statutes 2022, section 326B.082, subdivision 2, is amended to read:
116.19 		Subd. 2.Access to information and property; subpoenas. (a) In order to carry out the 
116.20 	purposes of the applicable law, the commissioner may:
116.21 	(1) administer oaths and affirmations, certify official acts, interview, question, take oral 
116.22 	or written statements, demand data and information, and take depositions;
116.23 	(2) request, examine, take possession of, test, sample, measure, photograph, record, and 
116.24 	copy any documents, apparatus, devices, equipment, or materials;
116.25 	(3) at a time and place indicated by the commissioner, request persons to appear before 
116.26 	the commissioner to give testimony, provide data and information, and produce documents, 
116.27 	apparatus, devices, equipment, or materials;
116.28 	(4) issue subpoenas to compel persons to appear before the commissioner to give 
116.29 	testimony, provide data and information, and to produce documents, apparatus, devices, 
116.30 	equipment, or materials; and
117.1 	(5) with or without notice, enter without delay upon and access all areas of any property, 
117.2 	public or private, for the purpose of taking any action authorized under this subdivision or 
117.3 	the applicable law, including obtaining to request, examine, take possession of, test, sample, 
117.4 	measure, photograph, record, and copy any data, information, remedying documents, 
117.5 	apparatus, devices, equipment, or materials; to interview, question, or take oral or written 
117.6 	statements; to remedy violations,; or conducting to conduct surveys, inspections, or 
117.7 	investigations.
117.8 	(b) Persons requested by the commissioner to give testimony, provide data and 
117.9 	information, or produce documents, apparatus, devices, equipment, or materials shall respond 
117.10 	within the time and in the manner specified by the commissioner. If no time to respond is 
117.11 	specified in the request, then a response shall be submitted within 30 days of the 
117.12 	commissioner's service of the request.
117.13 	(c) Upon the refusal or anticipated refusal of a property owner, lessee, property owner's 
117.14 	representative, or lessee's representative to permit the commissioner's entry onto and access 
117.15 	to all areas of any property as provided in paragraph (a), the commissioner may apply for 
117.16 	an administrative inspection order in the Ramsey County District Court or, at the 
117.17 	commissioner's discretion, in the district court in the county in which the property is located. 
117.18 	The commissioner may anticipate that a property owner or lessee will refuse entry and 
117.19 	access to all areas of a property if the property owner, lessee, property owner's representative, 
117.20 	or lessee's representative has refused to permit entry or access to all areas of a property on 
117.21 	a prior occasion or has informed the commissioner that entry or access to areas of a property 
117.22 	will be refused. Upon showing of administrative probable cause by the commissioner, the 
117.23 	district court shall issue an administrative inspection order that compels the property owner 
117.24 	or lessee to permit the commissioner to enter and be allowed access to all areas of the 
117.25 	property for the purposes specified in paragraph (a).
117.26 	(d) Upon the application of the commissioner, a district court shall treat the failure of 
117.27 	any person to obey a subpoena lawfully issued by the commissioner under this subdivision 
117.28 	as a contempt of court.

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

117.30 	Sec. 18. Minnesota Statutes 2022, section 326B.082, subdivision 4, is amended to read:
117.31 		Subd. 4.Fax or email transmission. When this section or section 326B.083 permits a 
117.32 	request for reconsideration or request for hearing to be served by fax on the commissioner, 
117.33 	or when the commissioner instructs that a request for reconsideration or request for hearing 
117.34 	be served by email on the commissioner, the fax or email shall not exceed 15 printed pages 
118.1 	in length. The request shall be considered timely served if the fax or email is received by 
118.2 	the commissioner, at the fax number or email address identified by the commissioner in the 
118.3 	order or notice of violation, no later than 4:30 p.m. central time on the last day permitted 
118.4 	for faxing or emailing the request. Where the quality or authenticity of the faxed or emailed
118.5 	request is at issue, the commissioner may require the original request to be filed. Where the 
118.6 	commissioner has not identified quality or authenticity of the faxed or emailed request as 
118.7 	an issue and the request has been faxed or emailed in accordance with this subdivision, the 
118.8 	person faxing or emailing the request does not need to file the original request with the 
118.9 	commissioner.

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

118.11 	Sec. 19. Minnesota Statutes 2022, section 326B.082, subdivision 6, is amended to read:
118.12 		Subd. 6.Notices of violation. (a) The commissioner may issue a notice of violation to 
118.13 	any person who the commissioner determines has committed a violation of the applicable 
118.14 	law. The notice of violation must state a summary of the facts that constitute the violation 
118.15 	and the applicable law violated. The notice of violation may require the person to correct 
118.16 	the violation. If correction is required, the notice of violation must state the deadline by 
118.17 	which the violation must be corrected.
118.18 	(b) In addition to any person, a notice of violation may be issued to any individual 
118.19 	identified in section 181.723, subdivision 7, paragraph (d). A notice of violation is effective 
118.20 	against any successor person as defined in section 181.723, subdivision 7, paragraph (e).
118.21 	(b) (c) The commissioner shall issue the notice of violation by:
118.22 	(1) serving the notice of violation on the property owner or on the person who committed 
118.23 	the violation; or
118.24 	(2) posting the notice of violation at the location where the violation occurred.
118.25 	(c) (d) If the person to whom the commissioner has issued the notice of violation believes 
118.26 	the notice was issued in error, then the person may request reconsideration of the parts of 
118.27 	the notice that the person believes are in error. The request for reconsideration must be in 
118.28 	writing and must be served on, faxed, or emailed to the commissioner at the address, fax 
118.29 	number, or email address specified in the notice of violation by the tenth day after the 
118.30 	commissioner issued the notice of violation. The date on which a request for reconsideration 
118.31 	is served by mail shall be the postmark date on the envelope in which the request for 
118.32 	reconsideration is mailed. If the person does not serve, fax, or email a written request for 
118.33 	reconsideration or if the person's written request for reconsideration is not served on or 
119.1 	faxed to the commissioner by the tenth day after the commissioner issued the notice of 
119.2 	violation, the notice of violation shall become a final order of the commissioner and will 
119.3 	not be subject to review by any court or agency. The request for reconsideration must:
119.4 	(1) specify which parts of the notice of violation the person believes are in error;
119.5 	(2) explain why the person believes the parts are in error; and
119.6 	(3) provide documentation to support the request for reconsideration.
119.7 	The commissioner shall respond in writing to requests for reconsideration made under 
119.8 	this paragraph within 15 days after receiving the request. A request for reconsideration does 
119.9 	not stay a requirement to correct a violation as set forth in the notice of violation. After 
119.10 	reviewing the request for reconsideration, the commissioner may affirm, modify, or rescind 
119.11 	the notice of violation. The commissioner's response to a request for reconsideration is final 
119.12 	and shall not be reviewed by any court or agency.

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

119.14 	Sec. 20. Minnesota Statutes 2022, section 326B.082, subdivision 7, is amended to read:
119.15 		Subd. 7.Administrative orders; correction; assessment of monetary penalties. (a) 
119.16 	The commissioner may issue an administrative order to any person who the commissioner 
119.17 	determines has committed a violation of the applicable law. The commissioner shall issue 
119.18 	the administrative order by serving the administrative order on the person. The administrative 
119.19 	order may require the person to correct the violation, may require the person to cease and 
119.20 	desist from committing the violation, and may assess monetary damages and penalties. The 
119.21 	commissioner shall follow the procedures in section 326B.083 when issuing administrative 
119.22 	orders. Except as provided in paragraph (b), the commissioner may issue to each person a 
119.23 	monetary penalty of up to $10,000 for each violation of applicable law committed by the 
119.24 	person. The commissioner may order that part or all of the monetary penalty will be forgiven 
119.25 	if the person to whom the order is issued demonstrates to the commissioner by the 31st day 
119.26 	after the order is issued that the person has corrected the violation or has developed a 
119.27 	correction plan acceptable to the commissioner.
119.28 	(b) The commissioner may issue an administrative order for failure to correct a violation 
119.29 	by the deadline stated in a final notice of violation issued under subdivision 6 or a final 
119.30 	administrative order issued under paragraph (a). Each day after the deadline during which 
119.31 	the violation remains uncorrected is a separate violation for purposes of calculating the 
119.32 	maximum monetary penalty amount.
120.1 	(c) Upon the application of the commissioner, a district court shall find the failure of 
120.2 	any person to correct a violation as required by a final notice of violation issued under 
120.3 	subdivision 6 or a final administrative order issued by the commissioner under this 
120.4 	subdivision as a contempt of court.
120.5 	(d) In addition to any person, an administrative order may be issued to any individual 
120.6 	identified in section 181.723, subdivision 7, paragraph (d). An administrative order shall 
120.7 	be effective against any successor person as defined in section 181.723, subdivision 7, 
120.8 	paragraph (e).

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

120.10 	Sec. 21. Minnesota Statutes 2022, section 326B.082, subdivision 10, is amended to read:
120.11 		Subd. 10.Stop work orders. (a) If the commissioner determines based on an inspection 
120.12 	or investigation that a person has violated or is about to violate the applicable law, The 
120.13 	commissioner may issue to the person a stop work order requiring the person to cease and 
120.14 	desist from committing the violation cessation of all business operations of a person at one 
120.15 	or more of the person's workplaces and places of business or across all of the person's 
120.16 	workplaces and places of business. A stop work order may only be issued to any person 
120.17 	who the commissioner has determined, based on an inspection or investigation, has violated 
120.18 	the applicable law, has engaged in any of the activities under subdivision 11, paragraph (b), 
120.19 	or section 326B.701, subdivision 5, or has failed to comply with a final notice, final 
120.20 	administrative order, or final licensing order issued by the commissioner under this section 
120.21 	or a final order to comply issued by the commissioner under section 177.27, or to any person 
120.22 	identified in paragraph (c).
120.23 	(b) The stop work order is effective upon its issuance under paragraph (e). The order 
120.24 	remains in effect until the commissioner issues an order lifting the stop work order. The 
120.25 	commissioner shall issue an order lifting the stop work order upon finding that the person 
120.26 	has come into compliance with the applicable law, has come into compliance with a final 
120.27 	order or notice of violation issued by the commissioner, has ceased and desisted from 
120.28 	engaging in any of the activities under subdivision 11, paragraph (b), or section 326B.701, 
120.29 	subdivision 5, and has paid in any remedies, damages, penalties, and other monetary 
120.30 	sanctions, including wages owed to employees under paragraph (j), to the satisfaction of 
120.31 	the commissioner, or if the commissioner or appellate court modifies or vacates the order.
120.32 	(c) In addition to any person, a stop work order may be issued to any individual identified 
120.33 	in section 181.723, subdivision 7, paragraph (d). The stop work order is effective against 
120.34 	any successor person as defined in section 181.723, subdivision 7, paragraph (e).
121.1 	(b) (d) If the commissioner determines that a condition exists on real property that 
121.2 	violates the applicable law is the basis for issuing a stop work order, the commissioner may 
121.3 	also issue a stop work order to the owner or lessee of the real property to cease and desist 
121.4 	from committing the violation and to correct the condition that is in violationto cease and 
121.5 	desist from committing the violation and to correct the condition that is in violation.
121.6 	(c) (e) The commissioner shall issue the stop work order by:
121.7 	(1) serving the order on the person who has committed or is about to commit the violation;
121.8 	(2) posting the order at the location where the violation was committed or is about to be 
121.9 	committed or at the location where the violating condition exists that is the basis for issuing 
121.10 	the stop work order; or
121.11 	(3) serving the order on any owner or lessee of the real property where the violating 
121.12 	condition exists violations or conditions exist.
121.13 	(d) (f) A stop work order shall:
121.14 	(1) describe the act, conduct, or practice committed or about to be committed, or the 
121.15 	condition, and include a reference to the applicable law that the act, conduct, practice, or 
121.16 	condition violates or would violate, the final order or final notice of violation, the provisions 
121.17 	in subdivision 11, paragraph (b); the provisions in section 326B.701, subdivision 5; or 
121.18 	liability under section 181.165, as applicable; and
121.19 	(2) provide notice that any person aggrieved by the stop work order may request a hearing 
121.20 	as provided in paragraph (e) (g).
121.21 	(e) (g) Within 30 days after the commissioner issues a stop work order, any person 
121.22 	aggrieved by the order may request an expedited hearing to review the commissioner's 
121.23 	action. The request for hearing must be made in writing and must be served on, emailed,
121.24 	or faxed to the commissioner at the address, email address, or fax number specified in the 
121.25 	order. If the person does not request a hearing or if the person's written request for hearing 
121.26 	is not served on, emailed, or faxed to the commissioner on or before the 30th day after the 
121.27 	commissioner issued the stop work order, the order will become a final order of the 
121.28 	commissioner and will not be subject to review by any court or agency. The date on which 
121.29 	a request for hearing is served by mail is the postmark date on the envelope in which the 
121.30 	request for hearing is mailed. The hearing request must specifically state the reasons for 
121.31 	seeking review of the order. The person who requested the hearing and the commissioner 
121.32 	are the parties to the expedited hearing. The hearing shall be commenced within ten days 
121.33 	after the commissioner receives the request for hearing. The hearing shall be conducted 
122.1 	under Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by this subdivision. 
122.2 	The administrative law judge shall issue a report containing findings of fact, conclusions 
122.3 	of law, and a recommended order within ten days after the completion of the hearing, the 
122.4 	receipt of late-filed exhibits, or the submission of written arguments, whichever is later. 
122.5 	Any party aggrieved by the administrative law judge's report shall have five days after the 
122.6 	date of the administrative law judge's report to submit written exceptions and argument to 
122.7 	the commissioner that the commissioner shall consider and enter in the record. Within 15 
122.8 	days after receiving the administrative law judge's report, the commissioner shall issue an 
122.9 	order vacating, modifying, or making permanent the stop work order. The commissioner 
122.10 	and the person requesting the hearing may by agreement lengthen any time periods described 
122.11 	in this paragraph. The Office of Administrative Hearings may, in consultation with the 
122.12 	agency, adopt rules specifically applicable to cases under this subdivision.
122.13 	(f) (h) A stop work order issued under this subdivision shall be is in effect until it is 
122.14 	lifted by the commissioner under paragraph (b) or is modified or vacated by the commissioner 
122.15 	or an appellate court under paragraph (b). The administrative hearing provided by this 
122.16 	subdivision and any appellate judicial review as provided in chapter 14 shall constitute the 
122.17 	exclusive remedy for any person aggrieved by a stop order.
122.18 	(i) The commissioner may assess a civil penalty of $5,000 per day against a person for 
122.19 	each day the person conducts business operations that are in violation of a stop work order 
122.20 	issued under this section.
122.21 	(j) Once a stop work order becomes final, any of the person's employees affected by a 
122.22 	stop work order issued pursuant to this subdivision shall be entitled to average daily earnings 
122.23 	from the person for up to the first ten days of work lost by the employee because of the 
122.24 	issuance of a stop work order. Lifting of a stop work order may be conditioned on payment 
122.25 	of wages to employees. The commissioner may issue an order to comply under section 
122.26 	177.27 to obtain payment from persons liable for the payment of wages owed to the 
122.27 	employees under this section.
122.28 	(g) (k) Upon the application of the commissioner, a district court shall find the failure 
122.29 	of any person to comply with a final stop work order lawfully issued by the commissioner 
122.30 	under this subdivision as a contempt of court.
122.31 	(l) Notwithstanding section 13.39, the data in a stop work order issued under this 
122.32 	subdivision are classified as public data after the commissioner has issued the order.
122.33 	(m) When determining the appropriateness and extent of a stop work order the 
122.34 	commissioner shall consider the factors set forth in section 14.045, subdivision 3.

123.1 	EFFECTIVE DATE. This section is effective March 1, 2025.

123.2 	Sec. 22. Minnesota Statutes 2022, section 326B.082, subdivision 11, is amended to read:
123.3 		Subd. 11.Licensing orders; grounds; reapplication. (a) The commissioner may deny 
123.4 	an application for a permit, license, registration, or certificate if the applicant does not meet 
123.5 	or fails to maintain the minimum qualifications for holding the permit, license, registration, 
123.6 	or certificate, or has any unresolved violations or, unpaid fees, or monetary damages or 
123.7 	penalties related to the activity for which the permit, license, registration, or certificate has 
123.8 	been applied for or was issued.
123.9 	(b) The commissioner may deny, suspend, limit, place conditions on, or revoke a person's 
123.10 	permit, license, registration, or certificate, or censure the person holding or acting as 
123.11 	qualifying person for the permit, license, registration, or certificate, if the commissioner 
123.12 	finds that the person:
123.13 	(1) committed one or more violations of the applicable law;
123.14 	(2) committed one or more violations of chapter 176, 177, 181, 181A, 182, 268, 270C, 
123.15 	or 363A;
123.16 	(2) (3) submitted false or misleading information to the any state agency in connection 
123.17 	with activities for which the permit, license, registration, or certificate was issued, or in 
123.18 	connection with the application for the permit, license, registration, or certificate;
123.19 	(3) (4) allowed the alteration or use of the person's own permit, license, registration, or 
123.20 	certificate by another person;
123.21 	(4) (5) within the previous five years, was convicted of a crime in connection with 
123.22 	activities for which the permit, license, registration, or certificate was issued;
123.23 	(5) (6) violated: (i) a final administrative order issued under subdivision 7, (ii) a final 
123.24 	stop work order issued under subdivision 10, (iii) injunctive relief issued under subdivision 
123.25 	9, or (iv) a consent order, order to comply, or other final order of issued by the commissioner
123.26 	or the commissioner of human rights, employment and economic development, or revenue;
123.27 	(6) (7) delayed, obstructed, or otherwise failed to cooperate with a commissioner's 
123.28 	investigation, including a request to give testimony, to provide data and information, to 
123.29 	produce documents, things, apparatus, devices, equipment, or materials, or to enter and 
123.30 	access all areas of any property under subdivision 2;
123.31 	(7) (8) retaliated in any manner against any employee or person who makes a complaint, 
123.32 	is questioned by, cooperates with, or provides information to the commissioner or an 
124.1 	employee or agent authorized by the commissioner who seeks access to property or things 
124.2 	under subdivision 2;
124.3 	(8) (9) engaged in any fraudulent, deceptive, or dishonest act or practice; or
124.4 	(9) (10) performed work in connection with the permit, license, registration, or certificate 
124.5 	or conducted the person's affairs in a manner that demonstrates incompetence, 
124.6 	untrustworthiness, or financial irresponsibility.
124.7 	(c) In addition to any person, a licensing order may be issued to any individual identified 
124.8 	in section 181.723, subdivision 7, paragraph (d). A licensing order is effective against any 
124.9 	successor person as defined in section 181.723, subdivision 7, paragraph (e).
124.10 	(c) (d) If the commissioner revokes or denies a person's permit, license, registration, or 
124.11 	certificate under paragraph (b), the person is prohibited from reapplying for the same type 
124.12 	of permit, license, registration, or certificate for at least two years after the effective date 
124.13 	of the revocation or denial. The commissioner may, as a condition of reapplication, require 
124.14 	the person to obtain a bond or comply with additional reasonable conditions the commissioner 
124.15 	considers necessary to protect the public, including but not limited to demonstration of 
124.16 	current and ongoing compliance with the laws the violation of which were the basis for 
124.17 	revoking or denying the person's permit, license, registration, or certificate under paragraph 
124.18 	(b) or that the person has ceased and desisted in engaging in activities under paragraph (b) 
124.19 	that were the basis for revoking or denying the person's permit, license, registration, or 
124.20 	certificate under paragraph (b).
124.21 	(d) (e) If a permit, license, registration, or certificate expires, or is surrendered, withdrawn, 
124.22 	or terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding 
124.23 	under this subdivision within two years after the permit, license, registration, or certificate 
124.24 	was last effective and enter a revocation or suspension order as of the last date on which 
124.25 	the permit, license, registration, or certificate was in effect.

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

124.27 	Sec. 23. Minnesota Statutes 2022, section 326B.082, subdivision 13, is amended to read:
124.28 		Subd. 13.Summary suspension. In any case where the commissioner has issued an 
124.29 	order to revoke, suspend, or deny a license, registration, certificate, or permit under 
124.30 	subdivisions 11, paragraph (b), and 12, the commissioner may summarily suspend the 
124.31 	person's permit, license, registration, or certificate before the order becomes final. The 
124.32 	commissioner shall issue a summary suspension order when the safety of life or property 
124.33 	is threatened or to prevent the commission of fraudulent, deceptive, untrustworthy, or 
125.1 	dishonest acts against the public, including but not limited to violations of section 181.723, 
125.2 	subdivision 7. The summary suspension shall not affect the deadline for submitting a request 
125.3 	for hearing under subdivision 12. If the commissioner summarily suspends a person's permit, 
125.4 	license, registration, or certificate, a timely request for hearing submitted under subdivision 
125.5 	12 shall also be considered a timely request for hearing on continuation of the summary 
125.6 	suspension. If the commissioner summarily suspends a person's permit, license, registration, 
125.7 	or certificate under this subdivision and the person submits a timely request for a hearing, 
125.8 	then a hearing on continuation of the summary suspension must be held within ten days 
125.9 	after the commissioner receives the request for hearing unless the parties agree to a later 
125.10 	date.

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

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

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

125.19 	Sec. 25. Minnesota Statutes 2022, section 326B.701, is amended to read:
125.20 	326B.701 CONSTRUCTION CONTRACTOR REGISTRATION.
125.21 		Subdivision 1.Definitions. The following definitions apply to this section:
125.22 	(a) "Building construction or improvement services" means public or private sector 
125.23 	commercial or residential building construction or improvement services.
125.24 	(a) (b) "Business entity" means a person other than an individual or a sole proprietor as 
125.25 	that term is defined in paragraph (h), except the term does not include an individual.
125.26 	(c) "Commissioner" means the commissioner of labor and industry or a duly designated 
125.27 	representative of the commissioner who is either an employee of the Department of Labor 
125.28 	and Industry or person working under contract with the Department of Labor and Industry.
125.29 	(d) "Day" means calendar day unless otherwise provided.
125.30 	(e) "Department" means the Department of Labor and Industry.
126.1 	(b) (f) "Document" or "documents" includes papers; books; records; memoranda; data; 
126.2 	contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; 
126.3 	records; accounts; files; statements; letters; emails; invoices; bills; notes; and calendars 
126.4 	maintained in any form or manner.
126.5 	(g) "Individual" means a human being.
126.6 	(h) "Person" means any individual, sole proprietor, limited liability company, limited 
126.7 	liability partnership, corporation, partnership, incorporated or unincorporated association, 
126.8 	joint stock company, or any other legal or commercial entity.
126.9 		Subd. 2.Applicability; registration requirement. (a) Persons who perform public or 
126.10 	private sector commercial or residential building construction or improvement services as 
126.11 	described in subdivision 2 must register with the commissioner as provided in this section. 
126.12 	The purpose of registration is to assist the Department of Labor and Industry, the Department 
126.13 	of Employment and Economic Development, and the Department of Revenue to enforce 
126.14 	laws related to misclassification of employees.
126.15 	(b) (a) Except as provided in paragraph (c) (b), any person who provides or performs 
126.16 	building construction or improvement services in the state on or after September 15, 2012,
126.17 	of Minnesota must register with the commissioner as provided in this section before providing 
126.18 	or performing building construction or improvement services for another person. The 
126.19 	requirements for registration under this section are not a substitute for, and do not relieve 
126.20 	a person from complying with, any other law requiring that the person be licensed, registered, 
126.21 	or certified.
126.22 	(c) (b) The registration requirements in this section do not apply to:
126.23 	(1) a person who, at the time the person is providing or performing the building
126.24 	construction or improvement services, holds a current license, certificate, or registration 
126.25 	under chapter 299M or 326B;
126.26 	(2) a person who holds a current independent contractor exemption certificate issued 
126.27 	under this section that is in effect on September 15, 2012, except that the person must register 
126.28 	under this section no later than the date the exemption certificate expires, is revoked, or is 
126.29 	canceled;
126.30 	(3) (2) a person who has given a bond to the state under section 326B.197 or 326B.46;
126.31 	(4) (3) an employee of the person providing or performing the building construction or 
126.32 	improvement services, if the person was in compliance with laws related to employment of 
126.33 	the individual at the time the construction services were performed;
127.1 	(5) (4) an architect or professional engineer engaging in professional practice as defined 
127.2 	in section 326.02, subdivisions 2 and 3;
127.3 	(6) (5) a school district or technical college governed under chapter 136F;
127.4 	(7) (6) a person providing or performing building construction or improvement services 
127.5 	on a volunteer basis, including but not limited to Habitat for Humanity and Builders Outreach 
127.6 	Foundation, and their individual volunteers when engaged in activities on their behalf; or
127.7 	(8) (7) a person exempt from licensing under section 326B.805, subdivision 6, clause 
127.8 	(5) (4).
127.9 		Subd. 3.Registration application. (a) Persons required to register under this section 
127.10 	must submit electronically, in the manner prescribed by the commissioner, a complete 
127.11 	application according to paragraphs (b) to (d) this subdivision.
127.12 	(b) A complete application must include all of the following information and 
127.13 	documentation about any individual who is registering as an individual or a sole proprietor, 
127.14 	or who owns 25 percent or more of a business entity being registered the person who is 
127.15 	applying for a registration:
127.16 	(1) the individual's full person's legal name and title at the applicant's business;
127.17 	(2) the person's assumed names filed with the secretary of state, if applicable;
127.18 	(2) (3) the individual's business address and person's telephone number;
127.19 	(3) the percentage of the applicant's business owned by the individual; and
127.20 	(4) the individual's Social Security number.
127.21 	(c) A complete application must also include the following information:
127.22 	(1) the applicant's legal name; assumed name filed with the secretary of state, if any; 
127.23 	designated business address; physical address; telephone number; and email address;
127.24 	(2) the applicant's Minnesota tax identification number, if one is required or has been 
127.25 	issued;
127.26 	(3) the applicant's federal employer identification number, if one is required or has been 
127.27 	issued;
127.28 	(4) evidence of the active status of the applicant's business filings with the secretary of 
127.29 	state, if one is required or has been issued;
127.30 	(5) whether the applicant has any employees at the time the application is filed;
128.1 	(6) the names of all other persons with an ownership interest in the business entity who 
128.2 	are not identified in paragraph (b), and the percentage of the interest owned by each person, 
128.3 	except that the names of shareholders with less than ten percent ownership in a publicly 
128.4 	traded corporation need not be provided;
128.5 	(7) information documenting compliance with workers' compensation and unemployment 
128.6 	insurance laws;
128.7 	(4) the person's email address;
128.8 	(5) the person's business address;
128.9 	(6) the person's physical address, if different from the business address;
128.10 	(7) the legal name, telephone number, and email address of the person's registered agent, 
128.11 	if applicable, and the registered agent's business address and physical address, if different 
128.12 	from the business address;
128.13 	(8) the jurisdiction in which the person is organized, if that jurisdiction is not in 
128.14 	Minnesota, as applicable;
128.15 	(9) the legal name of the person in the jurisdiction in which it is organized, if the legal 
128.16 	name is different than the legal name provided in clause (1), as applicable;
128.17 	(10) all of the following identification numbers, if all of these identification numbers 
128.18 	have been issued to the person. A complete application must include at least one of the 
128.19 	following identification numbers:
128.20 	(i) the person's Social Security number;
128.21 	(ii) the person's Minnesota tax identification number; or
128.22 	(iii) the person's federal employer identification number;
128.23 	(11) evidence of the active status of the person's business filings with the secretary of 
128.24 	state, if applicable;
128.25 	(12) whether the person has any employees at the time the application is filed, and if so, 
128.26 	how many employees the person employs;
128.27 	(13) the legal names of all persons with an ownership interest in the business entity, if 
128.28 	applicable, and the percentage of the interest owned by each person, except that the names 
128.29 	of shareholders with less than ten percent ownership in a publicly traded corporation need 
128.30 	not be provided;
129.1 	(14) information documenting the person's compliance with workers' compensation and 
129.2 	unemployment insurance laws for the person's employees, if applicable;
129.3 	(15) whether the person or any persons with an ownership interest in the business entity 
129.4 	as disclosed under clause (13) have been issued a notice of violation, administrative order, 
129.5 	licensing order, or order to comply by the Department of Labor and Industry in the last ten 
129.6 	years;
129.7 	(8) (16) a certification that the person individual signing the application has: reviewed 
129.8 	it; determined asserts that the information and documentation provided is true and accurate; 
129.9 	and determined that the person signing individual is authorized to sign and file the application 
129.10 	as an agent or authorized representative of the applicant person. The name of the person
129.11 	individual signing, entered on an electronic application, shall constitute a valid signature 
129.12 	of the agent or authorized representative on behalf of the applicant person; and
129.13 	(9) (17) a signed authorization for the Department of Labor and Industry to verify the 
129.14 	information and documentation provided on or with the application.
129.15 	(d) (c) A registered person must notify the commissioner within 15 days after there is a 
129.16 	change in any of the information on the application as approved. This notification must be 
129.17 	provided electronically in the manner prescribed by the commissioner. However, if the 
129.18 	business entity structure or legal form of the business entity has changed, the person must 
129.19 	submit a new registration application and registration fee, if any, for the new business entity.
129.20 	(e) The registered (d) A person must remain registered maintain a current and up-to-date 
129.21 	registration while providing or performing building construction or improvement services 
129.22 	for another person. The provisions of sections 326B.091, 326B.094, 326B.095, and 326B.097
129.23 	apply to this section. A person with an expired registration shall not provide construction 
129.24 	services for another person if registration is required under this section. Registration 
129.25 	application and expiration time frames are as follows:
129.26 	(1) all registrations issued on or before December 31, 2015, expire on December 31, 
129.27 	2015;
129.28 	(2) (1) all registrations issued after December 31, 2015, expire on the following December 
129.29 	31 of each odd-numbered year; and
129.30 	(3) (2) a person may submit a registration or renewal application starting October 1 of 
129.31 	the year the registration expires. If a renewal application is submitted later than December 
129.32 	1 of the expiration year, the registration may expire before the department has issued or 
129.33 	denied the registration renewal.
130.1 		Subd. 4.Website. (a) The commissioner shall develop and maintain a website on which 
130.2 	applicants for registration persons can submit a registration or renewal application. The 
130.3 	website shall be designed to receive and process registration applications and promptly 
130.4 	issue registration certificates electronically to successful applicants.
130.5 	(b) The commissioner shall maintain the certificates of registration on the department's 
130.6 	official public website, which shall include the following information on the department's 
130.7 	official public website:
130.8 	(1) the registered person's legal business name, including any assumed name, as filed 
130.9 	with the secretary of state;
130.10 	(2) the legal names of the persons with an ownership interest in the business entity;
130.11 	(2) (3) the registered person's business address designated and physical address, if 
130.12 	different from the business address, provided on the application; and
130.13 	(3) (4) the effective date of the registration and the expiration date.
130.14 		Subd. 5.Prohibited activities related to registration. (a) The prohibited activities in 
130.15 	this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085 section 
130.16 	326B.082, subdivision 11.
130.17 	(b) A person who provides or performs building construction or improvement services 
130.18 	in the course of the person's trade, business, occupation, or profession shall not:
130.19 	(1) contract with provide or perform building construction or improvement services for 
130.20 	another person without first being registered, if required by to be registered under this 
130.21 	section;
130.22 	(2) require an individual who is the person's employee to register; or
130.23 	(2) contract with or pay (3) engage another person to provide or perform building 
130.24 	construction or improvement services if the other person is required to be registered under 
130.25 	this section and is not registered if required by subdivision 2. All payments to an unregistered 
130.26 	person for construction services on a single project site shall be considered a single violation. 
130.27 	It is not a violation of this clause:
130.28 	(i) for a person to contract with or pay have engaged an unregistered person if the 
130.29 	unregistered person was registered at the time the contract for construction services was 
130.30 	entered into held a current registration on the date they began providing or performing the 
130.31 	building construction or improvement services; or
131.1 	(ii) for a homeowner or business to contract with or pay engage an unregistered person 
131.2 	if the homeowner or business is not in the trade, business, profession, or occupation of 
131.3 	performing building construction or improvement services; or.
131.4 	(3) be penalized for violations of this subdivision that are committed by another person. 
131.5 	This clause applies only to violations of this paragraph.
131.6 	(c) Each day a person who is required to be registered provides or performs building 
131.7 	construction or improvement services while unregistered shall be considered a separate 
131.8 	violation.
131.9 		Subd. 6.Investigation and enforcement; remedies; and penalties. (a) Notwithstanding 
131.10 	the maximum penalty amount in section 326B.082, subdivisions 7 and 12, the maximum 
131.11 	penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if 
131.12 	the person registers within 30 days of the date of the penalty order.
131.13 	(b) The penalty for contracting with or paying an unregistered person to perform 
131.14 	construction services in violation of subdivision 5, paragraph (b), clause (2), shall be as 
131.15 	provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive 
131.16 	the penalty for the first violation.
131.17 	The commissioner may investigate and enforce this section under the authority in chapters 
131.18 	177 and 326B.
131.19 		Subd. 7.Notice requirement. Notice of a penalty order for failure to register must 
131.20 	include a statement that the penalty shall be forgiven if the person registers within 30 days 
131.21 	of the date of the penalty order.
131.22 		Subd. 8.Data classified. Data in applications and any required documentation submitted 
131.23 	to the commissioner under this section are private data on individuals or nonpublic data as 
131.24 	defined in section 13.02. Data in registration certificates issued by the commissioner are 
131.25 	public data; except that for the registration information published on the department's website 
131.26 	may be accessed for registration verification purposes only. Data that document a suspension, 
131.27 	revocation, or cancellation of a certificate registration are public data. Upon request of
131.28 	Notwithstanding its classification as private data on individuals or nonpublic data, data in 
131.29 	applications and any required documentation submitted to the commissioner under this 
131.30 	section may be used by the commissioner to investigate and take enforcement action related 
131.31 	to laws for which the commissioner has enforcement responsibility and the commissioner 
131.32 	may share data and documentation with the Department of Revenue, the Department of 
131.33 	Commerce, the Department of Human Rights, or the Department of Employment and 
131.34 	Economic Development,. The commissioner may release to the requesting department
132.1 	departments data classified as private or nonpublic under this subdivision or investigative 
132.2 	data that are not public under section 13.39 that relate to the issuance or denial of applications 
132.3 	or revocations of certificates prohibited activities under this section and section 181.723.

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

132.5 	ARTICLE 11
132.6 	MINORS APPEARING IN INTERNET CONTENT

132.7 	Section 1. Minnesota Statutes 2022, section 181A.03, is amended by adding a subdivision 
132.8 	to read:
132.9 		Subd. 5a.Online platform. "Online platform" means any public-facing website, web 
132.10 	application, or digital application, including a mobile application. Online platform includes 
132.11 	a social network, advertising network, mobile operating system, search engine, email service, 
132.12 	monetization platform to sell digital services, streaming service, paid subscription, or Internet 
132.13 	access service.

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

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

132.26 	Sec. 4. [181A.13] COMPENSATION FOR INTERNET CONTENT CREATION.
132.27 		Subdivision 1.Minors featured in content creation. (a) Except as otherwise provided 
132.28 	in this section, a minor is considered engaged in the work of content creation when the 
132.29 	following criteria are met at any time during the previous 12-month period:
133.1 	(1) at least 30 percent of the content creator's compensated video content produced within 
133.2 	a 30-day period included the likeness, name, or photograph of any minor. Content percentage 
133.3 	is measured by the percentage of time the likeness, name, or photograph of a minor or if 
133.4 	more than one minor regularly appears in the creator's content, any of the minors, visually 
133.5 	appears or is the subject of an oral narrative in a video segment as compared to the total 
133.6 	length of the segment; and
133.7 	(2) the number of views received per video segment on any online platform met the 
133.8 	online platform's threshold for generating compensation or the content creator received 
133.9 	actual compensation for video content equal to or greater than $0.01 per view.
133.10 	(b) A minor under the age of 14 is prohibited from engaging in the work of content 
133.11 	creation as provided in paragraph (a). If a minor under the age of 14 is featured by a content 
133.12 	creator, the minor shall receive 100 percent of the proceeds of the creator's compensation 
133.13 	for the content they have appeared in, less any amount owed to another minor.
133.14 	(c) A minor who is at least age 14 but under the age of 18 may produce, create, and 
133.15 	publish their own content and is entitled to all compensation for their own content creation. 
133.16 	A minor engaged in the work of content creation as the producer, creator, and publisher of 
133.17 	content must also follow the requirements in paragraph (b).
133.18 	(d) A minor who appears incidentally in a video that depicts a public event that a 
133.19 	reasonable person would know to be broadcast, including a concert, competition, or sporting 
133.20 	event, and is published by a content creator is not considered a violation of this section.
133.21 		Subd. 2.Records required. (a) All video content creators whose content features a 
133.22 	minor engaged in the work of content creation shall maintain the following records and 
133.23 	retain the records until the minor reaches the age of 21:
133.24 	(1) the name and documentary proof of the age of the minor engaged in the work of 
133.25 	content creation;
133.26 	(2) the amount of content creation that generated compensation as described in subdivision 
133.27 	1 during the reporting period;
133.28 	(3) the total number of minutes of content creation for which the content creator received 
133.29 	compensation during the reporting period;
133.30 	(4) the total number of minutes a minor was featured in content creation during the 
133.31 	reporting period;
133.32 	(5) the total compensation generated from content creation featuring a minor during the 
133.33 	reporting period; and
134.1 	(6) the amount deposited into the trust account for the benefit of the minor engaged in 
134.2 	the work of content creation as required by subdivision 3.
134.3 	(b) The records required by this subdivision must be readily accessible to the minor for 
134.4 	review. The content creator shall provide notice to the minor of the existence of the records.
134.5 		Subd. 3.Trust required. (a) A minor who is engaged in the work of content creation 
134.6 	consistent with this section must be compensated by the content creator. The content creator 
134.7 	must set aside gross earnings on the video content that includes the likeness, name, or 
134.8 	photograph of the minor in a trust account to be preserved for the benefit of the minor until 
134.9 	the minor reaches the age of majority, according to the following distribution:
134.10 	(1) if only one minor meets the content threshold described in subdivision 1, the 
134.11 	percentage of total gross earnings on any video segment, including the likeness, name, or 
134.12 	photograph of the minor that is equal to or greater than half of the content percentage that 
134.13 	includes the minor as described in subdivision 1; or
134.14 	(2) if more than one minor meets the content threshold described in subdivision 1 and 
134.15 	a video segment includes more than one of those minors, the percentage described in clause 
134.16 	(1) for all minors in any segment must be equally divided between the minors regardless 
134.17 	of differences in percentage of content provided by the individual minors.
134.18 	(b) A trust account required under this section must, at a minimum, provide that:
134.19 	(1) the money in the account is available only to the minor engaged in the work of content 
134.20 	creation;
134.21 	(2) the account is held by a bank, corporate fiduciary, or trust company, as those terms 
134.22 	are defined in chapter 48A;
134.23 	(3) the money in the account becomes available to the minor engaged in the work of 
134.24 	content creation upon the minor attaining the age of 18 years or upon a declaration that the 
134.25 	minor is emancipated; and
134.26 	(4) that the account meets the requirements of chapter 527, the Uniform Transfers to 
134.27 	Minors Act.
134.28 	(c) If a content creator knowingly or recklessly violates this section, a minor satisfying 
134.29 	the criteria described in subdivision 1 may commence a civil action to enforce the provisions 
134.30 	of this section regarding the trust account. In any action brought in accordance with this 
134.31 	section, the court may award the following damages:
134.32 	(1) actual damages including any compensation owed under this section;
135.1 	(2) punitive damages; and
135.2 	(3) the costs of the action, including attorney fees and litigation costs.
135.3 	(d) This section does not affect a right or remedy available under any other law of the 
135.4 	state.
135.5 	(e) Nothing in this section shall be interpreted to have any effect on a party that is neither 
135.6 	the content creator nor the minor who engaged in the work of content creation.
135.7 		Subd. 4.Civil cause of action; violations.  (a) Along with the civil action provided in 
135.8 	subdivision 3, paragraph (c), the minor may commence a civil action against the content 
135.9 	creator for damages, injunctive relief, and any other relief the court finds just and equitable 
135.10 	to enforce this section.
135.11 	(b) The attorney general may enforce subdivision 1, pursuant to section 8.31, and may 
135.12 	recover costs and fees.
135.13 		Subd. 5.Content removal. Content containing the likeness of a child must be deleted 
135.14 	and removed from any online platform by the individual who posted the content, the account 
135.15 	owner, or another person who has control over the account when the request is made by a 
135.16 	minor age 13 or older whose likeness appears in the content, or by an adult who was under 
135.17 	the age of 18 when their likeness was used in the content.

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

135.19 	ARTICLE 12
135.20 	HOUSING APPROPRIATIONS

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

135.23135.22
	Subdivision 1.Total Appropriation
 	$
	792,098,000
	$
	273,298,000
223,298,000
	
135.24 	(a) The amounts that may be spent for each 
135.25 	purpose are specified in the following 
135.26 	subdivisions.
135.27 	(b) Unless otherwise specified, this 
135.28 	appropriation is for transfer to the housing 
135.29 	development fund for the programs specified 
135.30 	in this section. Except as otherwise indicated, 
135.31 	this transfer is part of the agency's permanent 
135.32 	budget base.

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

136.3136.2
	Subd. 17.Housing Infrastructure
 		100,000,000
		100,000,000
60,000,000
	
136.4 	This appropriation is for the housing 
136.5 	infrastructure program for the eligible 
136.6 	purposes under Minnesota Statutes, section 
136.7 	462A.37, subdivision 2. This is a onetime 
136.8 	appropriation.

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

136.11136.10
	Subd. 29.Community Stabilization
 		45,000,000
		45,000,000
35,000,000
	
136.12 	This appropriation is for the community 
136.13 	stabilization program. This a onetime 
136.14 	appropriation. Of this amount, $10,000,000 is 
136.15 	for a grant to AEON for Huntington Place.

136.16 	Sec. 4. APPROPRIATION; MINNESOTA HOUSING FINANCE AGENCY.
 136.17 	$59,255,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
136.18 	of the Minnesota Housing Finance Agency. This appropriation is onetime and in addition 
136.19 	to amounts appropriated in 2023. This appropriation is for transfer to the housing 
136.20 	development fund. Of this amount:
136.21 	(1) $50,000,000 is for the housing affordability preservation investment program;
136.22 	(2) $8,885,000 is for the family homelessness prevention and assistance program under 
136.23 	Minnesota Statutes, section 462A.204. Notwithstanding Minnesota Statutes, section 16C.06, 
136.24 	$943,000 of this appropriation is allocated to federally recognized American Indian Tribes 
136.25 	located in Minnesota. Notwithstanding procurement provisions outlined in Minnesota 
136.26 	Statutes, section 16C.06, subdivisions 1, 2, and 6, the agency may award grants to existing 
136.27 	program grantees;
136.28 	(3) $270,000 is for administering the requirements of article 13, sections 18 and 43 to 
136.29 	46; and
136.30 	(4) $100,000 is for a grant to the Amherst H. Wilder Foundation for the Minnesota 
136.31 	homeless study.

137.1 	Sec. 5. APPROPRIATION; MINNESOTA MANAGEMENT AND BUDGET.
 137.2 	$200,000 in fiscal year 2025 is appropriated from the general fund to the commissioner 
137.3 	of Minnesota Management and Budget for management analysis and development to facilitate 
137.4 	the working group on common interest communities and homeowners associations established 
137.5 	in article 14. This is a onetime appropriation.

137.6 	Sec. 6. APPROPRIATION; SUPREME COURT.
 137.7 	$545,000 in fiscal year 2025 is appropriated from the general fund to the supreme court 
137.8 	for the implementation of Laws 2023, chapter 52, article 19, section 120, as amended in 
137.9 	article 14, section 2. This is a onetime appropriation and is available until June 30, 2026.

137.10 	ARTICLE 13
137.11 	HOUSING POLICY

137.12 	Section 1. Minnesota Statutes 2022, section 15.082, is amended to read:
137.13 	15.082 OBLIGATIONS OF PUBLIC CORPORATIONS.
137.14 	Notwithstanding any other law, the state is not liable for obligations of a public 
137.15 	corporation created by statute. Upon dissolution of the public corporation, its wholly owned 
137.16 	assets become state property. Partially owned assets become state property to the extent 
137.17 	that state money was used to acquire them.
137.18 	This section does not apply to a public corporation governed by chapter 119 or section 
137.19 	469.0121.

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

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

138.3 	Sec. 3. Minnesota Statutes 2022, section 462A.03, is amended by adding a subdivision to 
138.4 	read:
138.5 		Subd. 2a.Distressed building. "Distressed building" means an existing rental housing 
138.6 	building:
138.7 	(1) in which the units are restricted to households at or below 60 percent of the area 
138.8 	median income; and
138.9 	(2) that:
138.10 	(i) is in foreclosure proceedings;
138.11 	(ii) has two or more years of negative net operating income;
138.12 	(iii) has two or more years with a debt service coverage ratio less than one; or
138.13 	(iv) has necessary costs of repair, replacement, or maintenance that exceed the project 
138.14 	reserves available for those purposes.

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

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

139.7 	Sec. 6. Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 14, is amended 
139.8 	to read:
139.9 		Subd. 14.Rehabilitation loans. It may agree to purchase, make, or otherwise participate 
139.10 	in the making, and may enter into commitments for the purchase, making, or participation 
139.11 	in the making, of eligible loans for rehabilitation, with terms and conditions as the agency 
139.12 	deems advisable, to persons and families of low and moderate income, and to owners of 
139.13 	existing residential housing for occupancy by such persons and families, for the rehabilitation 
139.14 	of existing residential housing owned by them. Rehabilitation may include the addition or 
139.15 	rehabilitation of a detached accessory dwelling unit. The loans may be insured or uninsured 
139.16 	and may be made with security, or may be unsecured, as the agency deems advisable. The 
139.17 	loans may be in addition to or in combination with long-term eligible mortgage loans under 
139.18 	subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness 
139.19 	secured by the property, if refinancing is determined by the agency to be necessary to permit 
139.20 	the owner to meet the owner's housing cost without expending an unreasonable portion of 
139.21 	the owner's income thereon. No loan for rehabilitation shall be made unless the agency 
139.22 	determines that the loan will be used primarily to make the housing more desirable to live 
139.23 	in, to increase the market value of the housing, for compliance with state, county or municipal 
139.24 	building, housing maintenance, fire, health or similar codes and standards applicable to 
139.25 	housing, or to accomplish energy conservation related improvements decarbonization, 
139.26 	climate resiliency, and other qualified projects. In unincorporated areas and municipalities 
139.27 	not having codes and standards, the agency may, solely for the purpose of administering 
139.28 	the provisions of this chapter, establish codes and standards. No loan under this subdivision 
139.29 	for the rehabilitation of owner-occupied housing shall be denied solely because the loan 
139.30 	will not be used for placing the owner-occupied residential housing in full compliance with 
139.31 	all state, county, or municipal building, housing maintenance, fire, health, or similar codes 
139.32 	and standards applicable to housing. Rehabilitation loans shall be made only when the 
139.33 	agency determines that financing is not otherwise available, in whole or in part, from private 
139.34 	lenders upon equivalent terms and conditions. Accessibility rehabilitation loans authorized 
140.1 	under this subdivision may be made to eligible persons and families without limitations 
140.2 	relating to the maximum incomes of the borrowers if:
140.3 	(1) the borrower or a member of the borrower's family requires a level of care provided 
140.4 	in a hospital, skilled nursing facility, or intermediate care facility for persons with 
140.5 	developmental disabilities;
140.6 	(2) home care is appropriate; and
140.7 	(3) the improvement will enable the borrower or a member of the borrower's family to 
140.8 	reside in the housing.
140.9 	The agency may waive any requirement that the housing units in a residential housing 
140.10 	development be rented to persons of low and moderate income if the development consists 
140.11 	of four or fewer dwelling units, one of which is occupied by the owner.

140.12 	Sec. 7. Minnesota Statutes 2022, section 462A.05, subdivision 14a, is amended to read:
140.13 		Subd. 14a.Rehabilitation loans; existing owner-occupied residential housing. It may 
140.14 	make loans to persons and families of low and moderate income to rehabilitate or to assist 
140.15 	in rehabilitating existing residential housing owned and occupied by those persons or 
140.16 	families. Rehabilitation may include replacement of manufactured homes. No loan shall be 
140.17 	made unless the agency determines that the loan will be used primarily for rehabilitation 
140.18 	work necessary for health or safety, essential accessibility improvements, or to improve the 
140.19 	energy efficiency of, clean energy, greenhouse gas emissions reductions, climate resiliency, 
140.20 	and other qualified projects in the dwelling. No loan for rehabilitation of owner-occupied 
140.21 	residential housing shall be denied solely because the loan will not be used for placing the 
140.22 	residential housing in full compliance with all state, county or municipal building, housing 
140.23 	maintenance, fire, health or similar codes and standards applicable to housing. The amount 
140.24 	of any loan shall not exceed the lesser of (a) a maximum loan amount determined under 
140.25 	rules adopted by the agency not to exceed $37,500, or (b) the actual cost of the work 
140.26 	performed, or (c) that portion of the cost of rehabilitation which the agency determines 
140.27 	cannot otherwise be paid by the person or family without the expenditure of an unreasonable 
140.28 	portion of the income of the person or family. Loans made in whole or in part with federal 
140.29 	funds may exceed the maximum loan amount to the extent necessary to comply with federal 
140.30 	lead abatement requirements prescribed by the funding source. In making loans, the agency 
140.31 	shall determine the circumstances under which and the terms and conditions under which 
140.32 	all or any portion of the loan will be repaid and shall determine the appropriate security for 
140.33 	the repayment of the loan. Loans pursuant to this subdivision may be made with or without 
140.34 	interest or periodic payments.

141.1 	Sec. 8. Minnesota Statutes 2022, section 462A.05, subdivision 14b, is amended to read:
141.2 		Subd. 14b.Energy conservation decarbonization and climate resiliency loans. It 
141.3 	may agree to purchase, make, or otherwise participate in the making, and may enter into 
141.4 	commitments for the purchase, making, or participating in the making, of loans to persons 
141.5 	and families, without limitations relating to the maximum incomes of the borrowers, to 
141.6 	assist in energy conservation rehabilitation measures decarbonization, climate resiliency, 
141.7 	and other qualified projects for existing housing owned by those persons or families 
141.8 	including, but not limited to: weatherstripping and caulking; chimney construction or 
141.9 	improvement; furnace or space heater repair, cleaning or replacement; central air conditioner 
141.10 	installation, repair, maintenance, or replacement; air source or geothermal heat pump 
141.11 	installation, repair, maintenance, or replacement; insulation; windows and doors; and 
141.12 	structural or other directly related repairs or installations essential for energy conservation
141.13 	decarbonization, climate resiliency, and other qualified projects. Loans shall be made only 
141.14 	when the agency determines that financing is not otherwise available, in whole or in part, 
141.15 	from private lenders upon equivalent terms and conditions. Loans under this subdivision 
141.16 	or subdivision 14 may:
141.17 	(1) be integrated with a utility's on-bill repayment program approved under section 
141.18 	216B.241, subdivision 5d; and
141.19 	(2) also be made for the installation of on-site solar energy or energy storage systems.

141.20 	Sec. 9. Minnesota Statutes 2022, section 462A.05, subdivision 15, is amended to read:
141.21 		Subd. 15.Rehabilitation grants. (a) It may make grants to persons and families of low 
141.22 	and moderate income to pay or to assist in paying a loan made pursuant to subdivision 14, 
141.23 	or to rehabilitate or to assist in rehabilitating existing residential housing owned or occupied 
141.24 	by such persons or families. For the purposes of this section, persons of low and moderate 
141.25 	income include administrators appointed pursuant to section 504B.425, paragraph (d). No 
141.26 	grant shall be made unless the agency determines that the grant will be used primarily to 
141.27 	make the housing more desirable to live in, to increase the market value of the housing or 
141.28 	for compliance with state, county or municipal building, housing maintenance, fire, health 
141.29 	or similar codes and standards applicable to housing, or to accomplish energy conservation 
141.30 	related improvements decarbonization, climate resiliency, or other qualified projects. In 
141.31 	unincorporated areas and municipalities not having codes and standards, the agency may, 
141.32 	solely for the purpose of administering this provision, establish codes and standards. No 
141.33 	grant for rehabilitation of owner occupied residential housing shall be denied solely because 
141.34 	the grant will not be used for placing the residential housing in full compliance with all 
142.1 	state, county or municipal building, housing maintenance, fire, health or similar codes and 
142.2 	standards applicable to housing. The amount of any grant shall not exceed the lesser of (a) 
142.3 	$6,000, or (b) the actual cost of the work performed, or (c) that portion of the cost of 
142.4 	rehabilitation which the agency determines cannot otherwise be paid by the person or family 
142.5 	without spending an unreasonable portion of the income of the person or family thereon. 
142.6 	In making grants, the agency shall determine the circumstances under which and the terms 
142.7 	and conditions under which all or any portion thereof will be repaid and shall determine the 
142.8 	appropriate security should repayment be required.
142.9 	(b) The agency may also make grants to rehabilitate or to assist in rehabilitating housing 
142.10 	under this subdivision to persons of low and moderate income for the purpose of qualifying 
142.11 	as foster parents.

142.12 	Sec. 10. Minnesota Statutes 2022, section 462A.05, subdivision 15b, is amended to read:
142.13 		Subd. 15b.Energy conservation decarbonization and climate resiliency grants. (a) 
142.14 	It may make grants to assist in energy conservation rehabilitation measures decarbonization, 
142.15 	climate resiliency, and other qualified projects for existing owner occupied housing including, 
142.16 	but not limited to: insulation, storm windows and doors, furnace or space heater repair, 
142.17 	cleaning or replacement, chimney construction or improvement, weatherstripping and 
142.18 	caulking, and structural or other directly related repairs, or installations essential for energy 
142.19 	conservation decarbonization, climate resiliency, and other qualified projects. The grant to 
142.20 	any household shall not exceed $2,000.
142.21 	(b) To be eligible for an emergency energy conservation decarbonization and climate 
142.22 	resiliency grant, a household must be certified as eligible to receive emergency residential 
142.23 	heating assistance under either the federal or the state program, and either (1) have had a 
142.24 	heating cost for the preceding heating season that exceeded 120 percent of the regional 
142.25 	average for the preceding heating season for that energy source as determined by the 
142.26 	commissioner of employment and economic development, or (2) be eligible to receive a 
142.27 	federal energy conservation grant, but be precluded from receiving the grant because of a 
142.28 	need for directly related repairs that cannot be paid for under the federal program. The 
142.29 	Housing Finance Agency shall make a reasonable effort to determine whether other state 
142.30 	or federal loan and grant programs are available and adequate to finance the intended 
142.31 	improvements. An emergency energy conservation grant may be made in conjunction with 
142.32 	grants or loans from other state or federal programs that finance other needed rehabilitation 
142.33 	work. The receipt of a grant pursuant to this section shall not affect the applicant's eligibility 
142.34 	for other Housing Finance Agency loan or grant programs.

143.1 	Sec. 11. Minnesota Statutes 2022, section 462A.05, subdivision 21, is amended to read:
143.2 		Subd. 21.Rental property loans. The agency may make or purchase loans to owners 
143.3 	of rental property that is occupied or intended for occupancy primarily by low- and 
143.4 	moderate-income tenants and which does not comply with the standards established in 
143.5 	section 326B.106, subdivision 1, for the purpose of energy improvements decarbonization, 
143.6 	climate resiliency, and other qualified projects necessary to bring the property into full or 
143.7 	partial compliance with these standards. For property which meets the other requirements 
143.8 	of this subdivision, a loan may also be used for moderate rehabilitation of the property. The 
143.9 	authority granted in this subdivision is in addition to and not in limitation of any other 
143.10 	authority granted to the agency in this chapter. The limitations on eligible mortgagors 
143.11 	contained in section 462A.03, subdivision 13, do not apply to loans under this subdivision. 
143.12 	Loans for the improvement of rental property pursuant to this subdivision may contain 
143.13 	provisions that repayment is not required in whole or in part subject to terms and conditions 
143.14 	determined by the agency to be necessary and desirable to encourage owners to maximize 
143.15 	rehabilitation of properties.

143.16 	Sec. 12. Minnesota Statutes 2022, section 462A.05, subdivision 23, is amended to read:
143.17 		Subd. 23.Insuring financial institution loans. The agency may participate in loans or 
143.18 	establish a fund to insure loans, or portions of loans, that are made by any banking institution, 
143.19 	savings association, or other lender approved by the agency, organized under the laws of 
143.20 	this or any other state or of the United States having an office in this state, to owners of 
143.21 	renter-occupied homes or apartments that do not comply with standards set forth in section 
143.22 	326B.106, subdivision 1, without limitations relating to the maximum incomes of the owners 
143.23 	or tenants. The proceeds of the insured portion of the loan must be used to pay the costs of 
143.24 	improvements, including all related structural and other improvements, that will reduce 
143.25 	energy consumption, that will decarbonize, and that will ensure the climate resiliency of 
143.26 	housing.

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

144.1 	Sec. 14. [462A.051] WAGE THEFT PREVENTION AND USE OF RESPONSIBLE 
144.2 	CONTRACTORS.
144.3 		Subdivision 1.Application. This section applies to all forms of financial assistance 
144.4 	provided by the Minnesota Housing Finance Agency, as well as the allocation of federal 
144.5 	low-income housing credits, for the development, construction, rehabilitation, renovation, 
144.6 	or retrofitting of multiunit residential housing, including loans, grants, tax credits, loan 
144.7 	guarantees, loan insurance, and other financial assistance.
144.8 		Subd. 2.Disclosures. An applicant for financial assistance under this chapter shall 
144.9 	disclose in the application any conviction, court judgment, agency determination, legal 
144.10 	settlement, ongoing criminal or civil investigation, or lawsuit involving alleged violations 
144.11 	of sections 177.24, 177.25, 177.32, 177.41 to 177.44, 181.03, 181.101, 181.13, 181.14, 
144.12 	181.722, 181.723, 181A.01 to 181A.12, or 609.52, subdivision 2, paragraph (a), clause (19), 
144.13 	or United States Code, title 29, sections 201 to 219, or title 40, sections 3141 to 3148, arising 
144.14 	or occurring within the preceding five years on a construction project owned or managed 
144.15 	by the developer or owner of the proposed project, the intended general contractor for the 
144.16 	proposed project, or any of their respective parent companies, subsidiaries, or other affiliated 
144.17 	companies. An applicant for financial assistance shall make the disclosures required by this 
144.18 	subdivision available within 14 calendar days to any member of the public who submits a 
144.19 	request by mail or electronic correspondence. The applicant shall designate a public 
144.20 	information officer who will serve as a point of contact for public inquiries.
144.21 		Subd. 3.Responsible contractors required. As a condition of receiving financial 
144.22 	assistance, the applicant shall verify that every contractor or subcontractor of any tier 
144.23 	performing work on the proposed project meets the minimum criteria to be a responsible 
144.24 	contractor under section 16C.285, subdivision 3. This verification must meet the criteria 
144.25 	defined in section 16C.285, subdivision 4.
144.26 		Subd. 4.Certified contractor lists. As a condition of receiving financial assistance, the 
144.27 	applicant shall have available at the development site main office a list of every contractor 
144.28 	and subcontractor of any tier that performs work or is expected to perform work on the 
144.29 	proposed project, as described in section 16C.285, subdivision 5, including the following 
144.30 	information for each contractor and subcontractor: business name, scope of work, Department 
144.31 	of Labor and Industry registration number, business name of the entity contracting its 
144.32 	services, business telephone number and email address, and actual or anticipated number 
144.33 	of workers on the project. The applicant shall establish the initial contractor list 30 days 
144.34 	before the start of construction and shall update the list each month thereafter until 
144.35 	construction is complete. The applicant shall post the contractor list in a conspicuous location 
145.1 	at the project site and make the contractor list available to members of the public upon 
145.2 	request.
145.3 		Subd. 5.Wage theft remedy. If any contractor or subcontractor of any tier is found to 
145.4 	have failed to pay statutorily required wages under section 609.52, subdivision 1, clause 
145.5 	(13), on a project receiving financial assistance or an allocation of federal low-income 
145.6 	housing tax credits from or through the agency, the recipient is responsible for correcting 
145.7 	the violation.
145.8 		Subd. 6.Wage theft prevention plans; disqualification. (a) If any contractor or 
145.9 	subcontractor of any tier fails to pay statutorily required wages on a project receiving 
145.10 	financial assistance from or through the agency as determined by an enforcement entity, 
145.11 	the recipient must have a wage theft prevention plan to be eligible for further financial 
145.12 	assistance from the agency. The project developer's wage theft prevention plan must describe 
145.13 	detailed measures that the project developer and its general contractor have taken and are 
145.14 	committed to take to prevent wage theft on the project, including provisions in any 
145.15 	construction contracts and subcontracts on the project. The plan must be submitted to the 
145.16 	Department of Labor and Industry who will review the plan. The Department of Labor and 
145.17 	Industry may require the project developer to amend the plan or adopt policies or protocols 
145.18 	in the plan. Once approved by the Department of Labor and Industry, the wage theft 
145.19 	prevention plan must be submitted by the project developer to the agency with any subsequent 
145.20 	application for financial assistance from the agency. Such wage theft prevention plans shall 
145.21 	be made available to members of the public by the agency upon request.
145.22 	(b) A developer is disqualified from receiving financial assistance from or through the 
145.23 	agency for three years if any of the developer's contractors or subcontractors of any tier are 
145.24 	found by an enforcement agency to have, within three years after entering into a wage theft 
145.25 	prevention plan under paragraph (a), failed to pay statutorily required wages on a project 
145.26 	receiving financial assistance from or through the agency for a total underpayment of $25,000 
145.27 	or more.
145.28 		Subd. 7.Enforcement. The agency may deny an application for financial assistance 
145.29 	that does not comply with this section or if the applicant refuses to enter into the agreements 
145.30 	required by this section. The agency may withhold financial assistance that has been 
145.31 	previously approved if the agency determines that the applicant has engaged in unacceptable 
145.32 	practices by failing to comply with this section until the violation is cured.

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

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

146.12 	Sec. 16. Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision 
146.13 	to read:
146.14 		Subd. 19.Eligibility for agency programs.  The agency may determine that a household 
146.15 	or project unit meets the rent or income requirements for a program if the household or unit 
146.16 	receives or participates in income-based state or federal public assistance benefits, including 
146.17 	but not limited to:
146.18 	(1) child care assistance programs under chapter 119B;
146.19 	(2) general assistance, Minnesota supplemental aid, or food support under chapter 256D;
146.20 	(3) housing support under chapter 256I;
146.21 	(4) Minnesota family investment program and diversionary work program under chapter 
146.22 	256J; and
146.23 	(5) economic assistance programs under chapter 256P.

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

147.1 	Sec. 18. [462A.2096] ANNUAL PROJECTION OF EMERGENCY RENTAL 
147.2 	ASSISTANCE NEEDS.
147.3 	The agency must develop a projection of emergency rental assistance needs in 
147.4 	consultation with the commissioner of human services and representatives from county and 
147.5 	Tribal housing administrators and housing nonprofit agencies. The projection must identify 
147.6 	the amount of funding required to meet all emergency rental assistance needs, including 
147.7 	the family homelessness prevention and assistance program, the emergency assistance 
147.8 	program, and emergency general assistance. By January 15 each year, the commissioner 
147.9 	must submit a report on the projected need for emergency rental assistance to the chairs and 
147.10 	ranking minority members of the legislative committees having jurisdiction over housing 
147.11 	and human services finance and policy.

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

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

148.7 	Sec. 21. Minnesota Statutes 2023 Supplement, section 462A.22, subdivision 1, is amended 
148.8 	to read:
148.9 		Subdivision 1.Debt ceiling. The aggregate principal amount of general obligation bonds 
148.10 	and notes which are outstanding at any time, excluding the principal amount of any bonds 
148.11 	and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of 
148.12 	$5,000,000,000 $7,000,000,000.

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

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

149.3 	Sec. 24. Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 2, is amended 
149.4 	to read:
149.5 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
149.6 	principal amount of housing infrastructure bonds in one or more series to which the payment 
149.7 	made under this section may be pledged. The housing infrastructure bonds authorized in 
149.8 	this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and 
149.9 	(7), on terms and conditions the agency deems appropriate, made for one or more of the 
149.10 	following purposes:
149.11 	(1) to finance the costs of the construction, acquisition, recapitalization, and rehabilitation 
149.12 	of supportive housing where at least 50 percent of units are set aside for individuals and 
149.13 	families who are without a permanent residence;
149.14 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
149.15 	housing to be used for affordable rental housing or for affordable home ownership and the 
149.16 	costs of new construction of rental housing on abandoned or foreclosed property where the 
149.17 	existing structures will be demolished or removed;
149.18 	(3) to finance that portion of the costs of acquisition of property that is attributable to 
149.19 	the land to be leased by community land trusts to low- and moderate-income home buyers;
149.20 	(4) to finance the acquisition, improvement, and infrastructure of manufactured home 
149.21 	parks under section 462A.2035, subdivision 1b;
149.22 	(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, recapitalization, or 
149.23 	new construction of senior housing;
149.24 	(6) to finance the costs of acquisition, rehabilitation, recapitalization, and replacement 
149.25 	of federally assisted rental housing and for the refinancing of costs of the construction, 
149.26 	acquisition, and rehabilitation of federally assisted rental housing, including providing funds 
149.27 	to refund, in whole or in part, outstanding bonds previously issued by the agency or another 
149.28 	government unit to finance or refinance such costs;
149.29 	(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
149.30 	of single-family housing; and
149.31 	(8) to finance the costs of construction, acquisition, recapitalization, and rehabilitation 
149.32 	of permanent housing that is affordable to households with incomes at or below 50 percent 
150.1 	of the area median income for the applicable county or metropolitan area as published by 
150.2 	the Department of Housing and Urban Development, as adjusted for household size;
150.3 	(9) to finance the recapitalization of a distressed building; and
150.4 	(10) to finance the costs of construction, acquisition, recapitalization, rehabilitation, 
150.5 	conversion, and development of cooperatively owned housing created under chapter 308A 
150.6 	or 308B that is affordable to low- and moderate-income households.
150.7 	(b) Among comparable proposals for permanent supportive housing, preference shall 
150.8 	be given to permanent supportive housing for veterans and other individuals or families 
150.9 	who:
150.10 	(1) either have been without a permanent residence for at least 12 months or at least four 
150.11 	times in the last three years; or
150.12 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
150.13 	times in the last three years.
150.14 	(c) Among comparable proposals for senior housing, the agency must give priority to 
150.15 	requests for projects that:
150.16 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
150.17 	senior households;
150.18 	(2) leverage other sources of funding to finance the project, including the use of 
150.19 	low-income housing tax credits;
150.20 	(3) provide access to services to residents and demonstrate the ability to increase physical 
150.21 	supports and support services as residents age and experience increasing levels of disability; 
150.22 	and
150.23 	(4) include households with incomes that do not exceed 30 percent of the median 
150.24 	household income for the metropolitan area.
150.25 	(d) To the extent practicable, the agency shall balance the loans made between projects 
150.26 	in the metropolitan area and projects outside the metropolitan area. Of the loans made to 
150.27 	projects outside the metropolitan area, the agency shall, to the extent practicable, balance 
150.28 	the loans made between projects in counties or cities with a population of 20,000 or less, 
150.29 	as established by the most recent decennial census, and projects in counties or cities with 
150.30 	populations in excess of 20,000.
151.1 	(e) Among comparable proposals for permanent housing, the agency must give preference 
151.2 	to projects that will provide housing that is affordable to households at or below 30 percent 
151.3 	of the area median income.
151.4 	(f) If a loan recipient uses the loan for new construction or substantial rehabilitation as 
151.5 	defined by the agency on a building containing more than four units, the loan recipient must 
151.6 	construct, convert, or otherwise adapt the building to include:
151.7 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
151.8 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
151.9 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower in at 
151.10 	least one accessible unit as defined by section 1002 of the current State Building Code 
151.11 	Accessibility Provisions for Dwelling Units in Minnesota; and
151.12 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
151.13 	sensory-accessible units that include:
151.14 	(A) soundproofing between shared walls for first and second floor units;
151.15 	(B) no florescent lighting in units and common areas;
151.16 	(C) low-fume paint;
151.17 	(D) low-chemical carpet; and
151.18 	(E) low-chemical carpet glue in units and common areas.
151.19 	Nothing in this paragraph relieves a project funded by the agency from meeting other 
151.20 	applicable accessibility requirements.

151.21 	Sec. 25. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision 
151.22 	to read:
151.23 		Subd. 2j.Additional authorization. In addition to the amount authorized in subdivisions 
151.24 	2 to 2i, the agency may issue up to $50,000,000.

151.25 	Sec. 26. Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 5, is amended 
151.26 	to read:
151.27 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
151.28 	commissioner of management and budget the actual amount of annual debt service on each 
151.29 	series of bonds issued under this section.
152.1 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
152.2 	bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those 
152.3 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
152.4 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
152.5 	the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts 
152.6 	necessary to make the transfers are appropriated from the general fund to the commissioner 
152.7 	of management and budget.
152.8 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
152.9 	bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those 
152.10 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
152.11 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
152.12 	the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts 
152.13 	necessary to make the transfers are appropriated from the general fund to the commissioner 
152.14 	of management and budget.
152.15 	(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure 
152.16 	bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those 
152.17 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
152.18 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
152.19 	the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts 
152.20 	necessary to make the transfers are appropriated from the general fund to the commissioner 
152.21 	of management and budget.
152.22 	(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
152.23 	bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those 
152.24 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
152.25 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
152.26 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
152.27 	appropriated from the general fund to the commissioner of management and budget.
152.28 	(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
152.29 	bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those 
152.30 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
152.31 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
152.32 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
152.33 	appropriated from the general fund to the commissioner of management and budget.
153.1 	(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
153.2 	bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those 
153.3 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
153.4 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
153.5 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
153.6 	appropriated from the general fund to the commissioner of management and budget.
153.7 	(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure 
153.8 	bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those 
153.9 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
153.10 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
153.11 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
153.12 	appropriated from the general fund to the commissioner of management and budget.
153.13 	(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure 
153.14 	bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those 
153.15 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
153.16 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
153.17 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
153.18 	appropriated from the general fund to the commissioner of management and budget.
153.19 	(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure 
153.20 	bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those 
153.21 	bonds, remain outstanding, the commissioner of management and budget must transfer to 
153.22 	the housing infrastructure bond account established under section 462A.21, subdivision 33, 
153.23 	the amount certified under paragraph (a). The amounts necessary to make the transfers are 
153.24 	appropriated from the general fund to the commissioner of management and budget.
153.25 	(j)(k) The agency may pledge to the payment of the housing infrastructure bonds the 
153.26 	payments to be made by the state under this section.

153.27 	Sec. 27. Minnesota Statutes 2023 Supplement, section 462A.39, subdivision 2, is amended 
153.28 	to read:
153.29 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
153.30 	meanings given.
153.31 	(b) "Eligible project area" means a home rule charter or statutory city located outside 
153.32 	of a metropolitan county as defined in section 473.121, subdivision 4, with a population 
153.33 	exceeding 500; a community that has a combined population of 1,500 residents located 
154.1 	within 15 miles of a home rule charter or statutory city located outside a metropolitan county 
154.2 	as defined in section 473.121, subdivision 4; federally recognized Tribal reservations; or 
154.3 	an area served by a joint county-city economic development authority.
154.4 	(c) "Joint county-city economic development authority" means an economic development 
154.5 	authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between 
154.6 	a city and county and excluding those established by the county only.
154.7 	(d) "Market rate residential rental properties" means properties that are rented at market 
154.8 	value, including new modular homes, new manufactured homes, and new manufactured 
154.9 	homes on leased land or in a manufactured home park, and may include rental developments 
154.10 	that have a portion of income-restricted units.
154.11 	(e) "Qualified expenditure" means expenditures for market rate residential rental 
154.12 	properties including acquisition of property; construction of improvements; and provisions 
154.13 	of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing 
154.14 	costs.

154.15 	Sec. 28. Minnesota Statutes 2022, section 462A.40, subdivision 2, is amended to read:
154.16 		Subd. 2.Use of funds; grant and loan program. (a) The agency may award grants and 
154.17 	loans to be used for multifamily and single family developments for persons and families 
154.18 	of low and moderate income. Allowable use of the funds include: gap financing, as defined 
154.19 	in section 462A.33, subdivision 1; new construction; acquisition; rehabilitation; demolition 
154.20 	or removal of existing structures; construction financing; permanent financing; interest rate 
154.21 	reduction; and refinancing.
154.22 	(b) The agency may give preference for grants and loans to comparable proposals that 
154.23 	include regulatory changes or waivers that result in identifiable cost avoidance or cost 
154.24 	reductions, including but not limited to increased density, flexibility in site development 
154.25 	standards, or zoning code requirements.
154.26 	(c) The agency shall separately set aside:
154.27 	(1) at least ten percent of the financing under this section for housing units located in a 
154.28 	township or city with a population of 2,500 or less that is located outside the metropolitan 
154.29 	area, as defined in section 473.121, subdivision 2;
154.30 	(2) at least 35 percent of the financing under this section for housing for persons and 
154.31 	families whose income is 50 percent or less of the area median income for the applicable 
154.32 	county or metropolitan area as published by the Department of Housing and Urban 
154.33 	Development, as adjusted for household size; and
155.1 	(3) at least 25 percent of the financing under this section for single-family housing.
155.2 	(d) If by September 1 of each year the agency does not receive requests to use all of the 
155.3 	amounts set aside under paragraph (c), the agency may use any remaining financing for 
155.4 	other projects eligible under this section.

155.5 	Sec. 29. Minnesota Statutes 2022, section 462A.40, subdivision 3, is amended to read:
155.6 		Subd. 3.Eligible recipients; definitions; restrictions; use of funds. (a) The agency 
155.7 	may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency 
155.8 	must not award a grant or a loan to a disqualified individual or disqualified business.
155.9 	(b) For the purposes of this subdivision disqualified individual means an individual who:
155.10 	(1) an individual who or an individual whose immediate family member made a 
155.11 	contribution to the account in the current or prior taxable year and received a credit certificate;
155.12 	(2) an individual who or an individual whose immediate family member owns the housing 
155.13 	for which the grant or loan will be used and is using that housing as their domicile;
155.14 	(3) an individual who meets the following criteria:
155.15 	(i) the individual is an officer or principal of a business entity; and
155.16 	(ii) that business entity made a contribution to the account in the current or previous 
155.17 	taxable year and received a credit certificate; or
155.18 	(4) an individual who meets the following criteria:
155.19 	(i) the individual directly owns, controls, or holds the power to vote 20 percent or more 
155.20 	of the outstanding securities of a business entity; and
155.21 	(ii) that business entity made a contribution to the account in the current or previous 
155.22 	taxable year and received a credit certificate.
155.23 	(c) For the purposes of this subdivision disqualified business means a business entity 
155.24 	that:
155.25 	(1) made a contribution to the account in the current or prior taxable year and received 
155.26 	a credit certificate;
155.27 	(2) has an officer or principal who is an individual who made a contribution to the 
155.28 	account in the current or previous taxable year and received a credit certificate; or
155.29 	(3) meets the following criteria:
156.1 	(i) the business entity is directly owned, controlled, or is subject to the power to vote 20 
156.2 	percent or more of the outstanding securities by an individual or business entity; and
156.3 	(ii) that controlling individual or business entity made a contribution to the account in 
156.4 	the current or previous taxable year and received a credit certificate.
156.5 	(d) The disqualifications in paragraphs (b) and (c) apply if the taxpayer would be 
156.6 	disqualified either individually or in combination with one or more members of the taxpayer's 
156.7 	family, as defined in the Internal Revenue Code, section 267(c)(4). For purposes of this 
156.8 	subdivision, "immediate family" means the taxpayer's spouse, parent or parent's spouse, 
156.9 	sibling or sibling's spouse, or child or child's spouse. For a married couple filing a joint 
156.10 	return, the limitations in this paragraph subdivision apply collectively to the taxpayer and 
156.11 	spouse. For purposes of determining the ownership interest of a taxpayer under paragraph 
156.12 	(a), clause (4), the rules under sections 267(c) and 267(e) of the Internal Revenue Code 
156.13 	apply.
156.14 	(e) Before applying for a grant or loan, all recipients must sign a disclosure that the 
156.15 	disqualifications under this subdivision do not apply. The Minnesota Housing Finance 
156.16 	Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency 
156.17 	may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
156.18 	(f) The agency may award grants or loans to a city as defined in section 462A.03, 
156.19 	subdivision 21; a federally recognized American Indian tribe or subdivision located in 
156.20 	Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a 
156.21 	housing and redevelopment authority under sections 469.001 to 469.047; a public housing 
156.22 	authority or agency authorized by law to exercise any of the powers granted by sections 
156.23 	469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and 
156.24 	paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible 
156.25 	recipients apply to grants and loans awarded under this paragraph.
156.26 	(g) Except for the set-aside provided in subdivision 2, paragraph (d), Eligible recipients 
156.27 	must use the funds to serve households that meet the income limits as provided in section 
156.28 	462A.33, subdivision 5.

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

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

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

157.19 	Sec. 32. [469.0121] PUBLIC CORPORATION; RENTAL ASSISTANCE 
157.20 	DEMONSTRATION PROGRAM.
157.21 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
157.22 	the meanings given.
157.23 	(b) "Authority" has the meaning given under section 469.002, subdivision 2.
157.24 	(c) "Board" means the board of directors of a corporation created under this section.
157.25 	(d) "Corporation" means a public corporation created under this section.
157.26 	(e) "RAD" means the federal Rental Assistance Demonstration program under Public 
157.27 	Law 112-55, as amended.
157.28 		Subd. 2.Public corporation created. An authority may create a public corporation to 
157.29 	purchase, own, and operate real property that has been converted through RAD to preserve 
157.30 	and improve public housing properties. A public corporation created under this section is 
157.31 	also a political subdivision of the state and is limited to the powers in this section.
158.1 		Subd. 3.Corporation powers. (a) The corporation has the following general powers:
158.2 	(1) to have succession until dissolved by law;
158.3 	(2) to sue and be sued in its corporate name;
158.4 	(3) to adopt, alter, and use a corporate seal which shall be judicially noticed;
158.5 	(4) to accept, hold, and administer gifts and bequests of money, securities, or other 
158.6 	personal property of whatsoever character, absolutely or in trust, for the purposes for which 
158.7 	the corporation is created. Unless otherwise restricted by the terms of the gift or bequest, 
158.8 	the corporation is authorized to sell, exchange, or otherwise dispose of and to invest or 
158.9 	reinvest in such investments as it may determine from time to time the money, securities, 
158.10 	or other property given or bequeathed to it. The principal of such corporate funds and the 
158.11 	income therefrom, and all other revenues received by it from any source whatsoever shall 
158.12 	be placed in such depositories as the board of directors shall determine and shall be subject 
158.13 	to expenditure for corporate purposes;
158.14 	(5) to enter into contracts generally and to execute all instruments necessary or appropriate 
158.15 	to carry out its corporate purposes;
158.16 	(6) to appoint and prescribe the duties of officers, agents, and employees as may be 
158.17 	necessary to carry out its work and to compensate them;
158.18 	(7) to purchase all supplies and materials necessary for carrying out its purposes;
158.19 	(8) to accept from the United States or the state of Minnesota, or any of their agencies, 
158.20 	money or other assistance whether by gift, loan, or otherwise to carry out its corporate 
158.21 	purposes, and enter into such contracts with the United States or the state of Minnesota, or 
158.22 	any of the agencies of either, or with any of the political subdivisions of the state, as it may 
158.23 	deem proper and consistent with the purposes of this section;
158.24 	(9) to contract and make cooperative agreements with federal, state, and municipal 
158.25 	departments and agencies and private corporations, associations, and individuals for the use 
158.26 	of the corporation property, including but not limited to rental agreements; and
158.27 	(10) to acquire real or personal property or any interest therein in any manner authorized 
158.28 	under section 469.012, subdivision 1g, including by the exercise of eminent domain.
158.29 	(b) A corporation may acquire properties converted under RAD, subject to restrictions 
158.30 	and conditions compatible with funding acquisitions of and improvements to real property 
158.31 	with state general obligation bond proceeds. The commissioner of management and budget 
158.32 	must determine the necessary restrictions and conditions under this paragraph.
159.1 		Subd. 4.Board of directors. (a) A corporation is governed by a board of directors as 
159.2 	follows:
159.3 	(1) a member of the city council from the city in which the corporation is incorporated; 
159.4 	and
159.5 	(2) a commissioner of the authority that created the corporation.
159.6 	(b) The term of a director is six years. Two members of the initial board of directors 
159.7 	must be appointed for terms of four years, and one for a term of two years.
159.8 	(c) Vacancies on the board must be filled by the authority.
159.9 	(d) Board members must not be compensated for their service as board members other 
159.10 	than to be reimbursed for reasonable expenses incurred in connection with their duties as 
159.11 	board members. Reimbursement shall be reviewed each year by the state auditor.
159.12 	(e) The board must annually elect from among its members a chair and other officers 
159.13 	necessary for the performance of its duties.
159.14 		Subd. 5.Bylaws. The board of directors must adopt bylaws and rules as it deems 
159.15 	necessary for the administration of its functions and the accomplishment of its purpose, 
159.16 	including among other matters the establishment of a business office and the rules, the use 
159.17 	of the project-based rental assistance properties, and the administration of corporation funds.
159.18 		Subd. 6.Place of business. The board must locate and maintain the corporation's place 
159.19 	of business in the city in which the authority that created the corporation is located.
159.20 		Subd. 7.Open meetings; data practices. Meetings of the board are subject to chapter 
159.21 	13D and meetings of the board conducted by interactive technology are subject to section 
159.22 	13D.02. The board is subject to chapter 13, the Minnesota Government Data Practices Act, 
159.23 	and shall protect from unlawful disclosure data classified as not public.
159.24 		Subd. 8.Compliance. The corporation must comply with all federal, state, and local 
159.25 	laws, rules, ordinances, and other regulations required to own and operate properties as 
159.26 	project-based rental assistance properties.
159.27 		Subd. 9.Dissolution. Upon dissolution of the corporation for any reason, its wholly 
159.28 	owned assets become property of the authority that created the corporation.

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

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

160.7 	Sec. 34. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 2, is amended 
160.8 	to read:
160.9 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
160.10 	meanings given:.
160.11 	(1) (b) "City distribution factor" means the number of households in a tier I city that are 
160.12 	cost-burdened divided by the total number of households that are cost-burdened in tier I 
160.13 	cities. The number of cost-burdened households shall be determined using the most recent 
160.14 	estimates or experimental estimates provided by the American Community Survey of the 
160.15 	United States Census Bureau as of May 1 of the aid calculation year;.
160.16 	(2) (c) "Cost-burdened household" means a household in which gross rent is 30 percent 
160.17 	or more of household income or in which homeownership costs are 30 percent or more of 
160.18 	household income;.
160.19 	(3) (d) "County distribution factor" means the number of households in a county that 
160.20 	are cost-burdened divided by the total number of households in metropolitan counties that 
160.21 	are cost-burdened. The number of cost-burdened households shall be determined using the 
160.22 	most recent estimates or experimental estimates provided by the American Community 
160.23 	Survey of the United States Census Bureau as of May 1 of the aid calculation year;.
160.24 	(e) "Locally funded housing expenditures" means expenditures of the aid recipient, 
160.25 	including expenditures by a public corporation or legal entity created by the aid recipient, 
160.26 	that are:
160.27 	(1) funded from the recipient's general fund, a property tax levy of the recipient or its 
160.28 	housing and redevelopment authority, or unrestricted money available to the recipient, but 
160.29 	not including tax increments; and
160.30 	(2) expended on one of the following qualifying activities:
160.31 	(i) financial assistance to residents in arrears on rent, mortgage, utilities, or property tax 
160.32 	payments;
161.1 	(ii) support services, case management services, and legal services for residents in arrears 
161.2 	on rent, mortgage, utilities, or property tax payments;
161.3 	(iii) down payment assistance or homeownership education, counseling, and training;
161.4 	(iv) acquisition, construction, rehabilitation, adaptive reuse, improvement, financing, 
161.5 	and infrastructure of residential dwellings;
161.6 	(v) costs of operating emergency shelter, transitional housing, supportive housing, or 
161.7 	publicly owned housing, including costs of providing case management services and support 
161.8 	services; and
161.9 	(vi) rental assistance.
161.10 	(4) (f) "Metropolitan area" has the meaning given in section 473.121, subdivision 2;
161.11 	(5) (g) "Metropolitan county" has the meaning given in section 473.121, subdivision 4;
161.12 	(6) (h) "Population" has the meaning given in section 477A.011, subdivision 3; and
161.13 	(7) (i) "Tier I city" means a statutory or home rule charter city that is a city of the first, 
161.14 	second, or third class and is located in a metropolitan county.

161.15 	Sec. 35. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 4, is amended 
161.16 	to read:
161.17 		Subd. 4.Qualifying projects. (a) Qualifying projects shall include:
161.18 	(1) emergency rental assistance for households earning less than 80 percent of area 
161.19 	median income as determined by the United States Department of Housing and Urban 
161.20 	Development;
161.21 	(2) financial support to nonprofit affordable housing providers in their mission to provide 
161.22 	safe, dignified, affordable and supportive housing; and
161.23 	(3) projects designed for the purpose of construction, acquisition, rehabilitation, 
161.24 	demolition or removal of existing structures, construction financing, permanent financing, 
161.25 	interest rate reduction, refinancing, and gap financing of housing to provide affordable 
161.26 	housing to households that have incomes which do not exceed, for homeownership projects, 
161.27 	115 percent of the greater of state or area median income as determined by the United States 
161.28 	Department of Housing and Urban Development, and for rental housing projects, 80 percent 
161.29 	of the greater of state or area median income as determined by the United States Department 
161.30 	of Housing and Urban Development, except that the housing developed or rehabilitated 
161.31 	with funds under this section must be affordable to the local work force;
162.1 	(4) financing the operations and management of financially distressed residential 
162.2 	properties;
162.3 	(5) funding of supportive services or staff of supportive services providers for supportive 
162.4 	housing as defined by section 462A.37, subdivision 1. Financial support to nonprofit housing 
162.5 	providers to finance supportive housing operations may be awarded as a capitalized reserve 
162.6 	or as an award of ongoing funding; and
162.7 	(6) costs of operating emergency shelter facilities, including the costs of providing 
162.8 	services.
162.9 	Projects shall be prioritized (b) Recipients must prioritize projects that provide affordable 
162.10 	housing to households that have incomes which do not exceed, for homeownership projects, 
162.11 	80 percent of the greater of state or area median income as determined by the United States 
162.12 	Department of Housing and Urban Development, and for rental housing projects, 50 percent 
162.13 	of the greater of state or area median income as determined by the United States Department 
162.14 	of Housing and Urban Development. Priority may be given to projects that: reduce disparities 
162.15 	in home ownership; reduce housing cost burden, housing instability, or homelessness; 
162.16 	improve the habitability of homes; create accessible housing; or create more energy- or 
162.17 	water-efficient homes.
162.18 	(b) (c) Gap financing is either:
162.19 	(1) the difference between the costs of the property, including acquisition, demolition, 
162.20 	rehabilitation, and construction, and the market value of the property upon sale; or
162.21 	(2) the difference between the cost of the property and the amount the targeted household 
162.22 	can afford for housing, based on industry standards and practices.
162.23 	(c) (d) If aid under this section is used for demolition or removal of existing structures, 
162.24 	the cleared land must be used for the construction of housing to be owned or rented by 
162.25 	persons who meet the income limits of paragraph (a).
162.26 	(d) (e) If an aid recipient uses the aid on new construction or substantial rehabilitation 
162.27 	of a building containing more than four units, the loan recipient must construct, convert, or 
162.28 	otherwise adapt the building to include:
162.29 	(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
162.30 	accessible units, as defined by section 1002 of the current State Building Code Accessibility 
162.31 	Provisions for Dwelling Units in Minnesota, and include at least one roll-in shower; and
162.32 	(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are 
162.33 	sensory-accessible units that include:
163.1 	(A) soundproofing between shared walls for first and second floor units;
163.2 	(B) no florescent lighting in units and common areas;
163.3 	(C) low-fume paint;
163.4 	(D) low-chemical carpet; and
163.5 	(E) low-chemical carpet glue in units and common areas.
163.6 	Nothing in this paragraph relieves a project funded by this section from meeting other 
163.7 	applicable accessibility requirements.

163.8 	Sec. 36. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 5, is amended 
163.9 	to read:
163.10 		Subd. 5.Use of proceeds. (a) Any funds distributed under this section must be spent on 
163.11 	a qualifying project. Funds are considered spent on a qualifying project if:
163.12 	(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that 
163.13 	the city or county cannot expend funds on a qualifying project by the deadline imposed by 
163.14 	paragraph (b) due to factors outside the control of the city or county; and
163.15 	(2) the funds are transferred to a local housing trust fund.
163.16 	Funds transferred to a local housing trust fund under this paragraph must be spent on a 
163.17 	project or household that meets the affordability requirements of subdivision 4, paragraph 
163.18 	(a).
163.19 	(b) Funds must be spent by December 31 in the third year following the year after the 
163.20 	aid was received. The requirements of this paragraph are satisfied if funds are:
163.21 	(1) committed to a qualifying project by December 31 in the third year following the 
163.22 	year after the aid was received; and
163.23 	(2) expended by December 31 in the fourth year following the year after the aid was 
163.24 	received.
163.25 	(c) An aid recipient may not use aid money to reimburse itself for prior expenditures.

163.26 	Sec. 37. Minnesota Statutes 2023 Supplement, section 477A.35, is amended by adding a 
163.27 	subdivision to read:
163.28 		Subd. 5a.Conditions for receipt. (a) As a condition of receiving aid under this section, 
163.29 	a recipient must commit to using money to supplement, not supplant, existing locally funded 
164.1 	housing expenditures, so that they are using the money to create new, or to expand existing, 
164.2 	housing programs.
164.3 	(b) In the annual report required under subdivision 6, a recipient must certify its 
164.4 	compliance with this subdivision, including an accounting of locally funded housing 
164.5 	expenditures in the prior fiscal year. In a tier I city's or county's first report to the Minnesota 
164.6 	Housing Finance Agency, it must document its locally funded housing expenditures in the 
164.7 	two prior fiscal years. If a recipient reduces one of its locally funded housing expenditures, 
164.8 	the recipient must detail the expenditure, the amount of the reduction, and the reason for 
164.9 	the reduction. The certification required under this paragraph must be made available publicly 
164.10 	on the website of the recipient.

164.11 	Sec. 38. Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended 
164.12 	to read:
164.13 		Subd. 6.Administration. (a) The commissioner of revenue must compute the amount 
164.14 	of aid payable to each tier I city and county under this section. By August 1 of each year, 
164.15 	the commissioner must certify the distribution factors of each tier I city and county to be 
164.16 	used in the following year. The commissioner must pay local affordable housing aid annually 
164.17 	at the times provided in section 477A.015, distributing the amounts available on the 
164.18 	immediately preceding June 1 under the accounts established in section 477A.37, subdivisions 
164.19 	2 and 3.
164.20 	(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later 
164.21 	than December 1 of each year, to the Minnesota Housing Finance Agency. The report must 
164.22 	include documentation of the location of any unspent funds distributed under this section 
164.23 	and of qualifying projects completed or planned with funds under this section. If a tier I 
164.24 	city or county fails to submit a report, if a tier I city or county fails to spend funds within 
164.25 	the timeline imposed under subdivision 5, paragraph (b), or if a tier I city or county uses 
164.26 	funds for a project that does not qualify under this section, or if a tier I city or county fails 
164.27 	to meet its requirements of subdivision 5a, the Minnesota Housing Finance Agency shall 
164.28 	notify the Department of Revenue and the cities and counties that must repay funds under 
164.29 	paragraph (c) by February 15 of the following year.
164.30 	(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a 
164.31 	tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or 
164.32 	county received under this section if the city or county:
164.33 	(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);
165.1 	(2) spends the funds on anything other than a qualifying project; or
165.2 	(3) fails to submit a report documenting use of the funds.; or
165.3 	(4) fails to meet the requirements of subdivision 5a.
165.4 	(d) The commissioner of revenue must stop distributing funds to a tier I city or county 
165.5 	that requests in writing that the commissioner stop payment or that, in three consecutive 
165.6 	years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to 
165.7 	have failed to use funds, misused funds, or failed to report on its use of funds.
165.8 	(e) The commissioner may resume distributing funds to a tier I city or county to which 
165.9 	the commissioner has stopped payments in the year following the August 1 after the 
165.10 	Minnesota Housing Finance Agency certifies that the city or county has submitted 
165.11 	documentation of plans for a qualifying project. The commissioner may resume distributing 
165.12 	funds to a tier I city or county to which the commissioner has stopped payments at the 
165.13 	request of the city or county in the year following the August 1 after the Minnesota Housing 
165.14 	Finance Agency certifies that the city or county has submitted documentation of plans for 
165.15 	a qualifying project.
165.16 	(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph 
165.17 	(c) must be deposited in the housing development fund. Funds deposited under this paragraph 
165.18 	are appropriated to the commissioner of the Minnesota Housing Finance Agency for use 
165.19 	on the family homeless prevention and assistance program under section 462A.204, the 
165.20 	economic development and housing challenge program under section 462A.33, and the 
165.21 	workforce and affordable homeownership development program under section 462A.38.

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

165.23	Subd. 2.Challenge Program
 		60,425,000
		60,425,000
	
165.24 	(a) This appropriation is for the economic 
165.25 	development and housing challenge program 
165.26 	under Minnesota Statutes, sections 462A.33
165.27 	and 462A.07, subdivision 14.
165.28 	(b) Of this amount, $6,425,000 each year shall 
165.29 	be made available during the first 11 months 
165.30 	of the fiscal year exclusively for housing 
165.31 	projects for American Indians. Any funds not 
165.32 	committed to housing projects for American 
165.33 	Indians within the annual consolidated request 
166.1 	for funding processes may be available for 
166.2 	any eligible activity under Minnesota Statutes, 
166.3 	sections 462A.33 and 462A.07, subdivision 
166.4 	14.
166.5 	(c) Of the amount in the first year, $5,000,000 
166.6 	is for a grant to Urban Homeworks to expand 
166.7 	initiatives pertaining to deeply affordable 
166.8 	homeownership in Minneapolis neighborhoods 
166.9 	with over 40 percent of residents identifying 
166.10 	as Black, Indigenous, or People of Color and 
166.11 	at least 40 percent of residents making less 
166.12 	than 50 percent of the area median income. 
166.13 	The grant is to be used for acquisition, 
166.14 	rehabilitation, gap financing as defined in 
166.15 	section 462A.33, subdivision 1, and 
166.16 	construction of homes to be sold to households 
166.17 	with incomes of 50 to at or below 60 percent 
166.18 	of the area median income. This is a onetime 
166.19 	appropriation, and is available until June 30, 
166.20 	2027. By December 15 each year until 2027, 
166.21 	Urban Homeworks must submit a report to 
166.22 	the chairs and ranking minority members of 
166.23 	the legislative committees having jurisdiction 
166.24 	over housing finance and policy. The report 
166.25 	must include the amount used for (1) 
166.26 	acquisition, (2) rehabilitation, and (3) 
166.27 	construction of housing units, along with the 
166.28 	number of housing units acquired, 
166.29 	rehabilitated, or constructed, and the amount 
166.30 	of the appropriation that has been spent. If any 
166.31 	home was sold or transferred within the year 
166.32 	covered by the report, Urban Homeworks must 
166.33 	include the price at which the home was sold, 
166.34 	as well as how much was spent to complete 
166.35 	the project before sale.
167.1 	(d) Of the amount in the first year, $2,000,000 
167.2 	is for a grant to Rondo Community Land 
167.3 	Trust. This is a onetime appropriation.
167.4 	(e) The base for this program in fiscal year 
167.5 	2026 and beyond is $12,925,000.

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

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

167.8	Subd. 32.Northland Foundation
 		1,000,000
		-0-
	
167.9 	This appropriation is for a grant to Northland 
167.10 	Foundation for use on expenditures authorized 
167.11 	under Minnesota Statutes, section 462C.16, 
167.12 	subdivision 3, to assist and support 
167.13 	communities in providing housing locally, and 
167.14 	on for assisting local governments to establish 
167.15 	local or regional housing trust funds. 
167.16 	Northland Foundation may award grants and 
167.17 	loans to other entities to expend on authorized 
167.18 	expenditures under this section. This 
167.19 	appropriation is onetime and available until 
167.20 	June 30, 2025.

167.21 	Sec. 41. Laws 2023, chapter 37, article 2, section 12, subdivision 2, is amended to read:
167.22 		Subd. 2.Eligible homebuyer. For the purposes of this section, an "eligible homebuyer" 
167.23 	means an individual:
167.24 	(1) whose income is at or below 130 percent of area median income;
167.25 	(2) who resides in a census tract where at least 60 percent of occupied housing units are 
167.26 	renter-occupied, based on the most recent estimates or experimental estimates provided by 
167.27 	the American Community Survey of the United States Census Bureau;
167.28 	(3) (2) who is financing the purchase of an eligible property with an interest-free, 
167.29 	fee-based mortgage; and
167.30 	(4) (3) who is a first-time homebuyer as defined by Code of Federal Regulations, title 
167.31 	24, section 92.2.

168.1 	Sec. 42. TASK FORCE ON LONG-TERM SUSTAINABILITY OF AFFORDABLE 
168.2 	HOUSING.
 168.3 		Subdivision 1.Establishment. A task force is established to study the financial health 
168.4 	and stability of affordable housing providers and to provide recommendations to the 
168.5 	Minnesota legislature to promote long-term sustainability of affordable housing providers, 
168.6 	prevent loss of affordable units, and promote housing security for renters.
168.7 		Subd. 2.Duties. (a) The task force must assess underlying financial challenges for 
168.8 	affordable housing providers in their pursuit of developing and preserving safe, affordable, 
168.9 	and dignified housing, including examining:
168.10 	(1) factors that are leading to increasing costs, including but not limited to insurance 
168.11 	rates, security costs, and rehabilitation needs;
168.12 	(2) factors that are leading to declining revenues for affordable housing providers, 
168.13 	including but not limited to loss of rent and vacancy issues;
168.14 	(3) the significant financial needs across the entire sector of affordable housing providers; 
168.15 	and
168.16 	(4) the potential impact of loss of housing units under current conditions.
168.17 	(b) The task force must evaluate the current financing and administrative tools that are 
168.18 	being deployed to support housing providers and their effectiveness, including examining:
168.19 	(1) current funding needs, financing programs, and the availability of funding to assess 
168.20 	the level of funding as it relates to overall needs;
168.21 	(2) administrative tools utilized by the Minnesota Housing Finance Agency to support 
168.22 	affordable housing providers; and
168.23 	(3) the effectiveness of current funding programs and tools.
168.24 	(c) The task force must evaluate potential solutions to address identified financial 
168.25 	challenges for affordable housing providers, including:
168.26 	(1) additional funding for existing programs and tools;
168.27 	(2) new financial tools, including new uses of housing infrastructure bonds;
168.28 	(3) mechanisms to fund supportive services in the development process for new affordable 
168.29 	housing projects;
168.30 	(4) underwriting practices at the Minnesota Housing Finance Agency; and
169.1 	(5) recommendations for changes to financial or management practices for affordable 
169.2 	housing providers.
169.3 		Subd. 3.Meetings and report. The Minnesota Housing Finance Agency shall convene 
169.4 	the first meeting of the task force no later than August 31, 2024, and shall provide accessible 
169.5 	physical or virtual meeting space as necessary for the task force to conduct its work. The 
169.6 	task force must submit final recommendations to the house of representatives and senate 
169.7 	housing committees and for the commissioner of the Minnesota Housing Finance Agency 
169.8 	no later than February 1, 2025.
169.9 		Subd. 4.Membership. The task force shall consist of 13 members representing a cross 
169.10 	section of the affordable housing industry and relevant agency staff. The chair of the house 
169.11 	of representatives committee with jurisdiction over housing finance shall appoint four 
169.12 	members. The chair of the senate committee with jurisdiction over housing finance shall 
169.13 	appoint four members. The commissioner of the Minnesota Housing Finance Agency shall 
169.14 	appoint five members. Members must be appointed no later than July 1, 2024.
169.15 		Subd. 5.Expiration. The task force expires upon submission of the final 
169.16 	recommendations required under subdivision 4.

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

169.18 	Sec. 43. DIRECTION TO COMMISSIONERS OF HUMAN SERVICES AND THE 
169.19 	MINNESOTA HOUSING FINANCE AGENCY; EMERGENCY ASSISTANCE 
169.20 	PROGRAM MODIFICATIONS.
 169.21 	(a) The commissioner of the Minnesota Housing Finance Agency, in consultation with 
169.22 	the commissioner of human services, shall develop program recommendations for emergency 
169.23 	rental assistance that have the flexibility to provide relief for crises within a time frame that 
169.24 	corresponds to the emergency and that are simple enough for applicants to understand across 
169.25 	all emergency rental assistance programs. In the development of these recommendations, 
169.26 	the commissioners must:
169.27 	(1) recognize differences between administrative and legislative authority and propose 
169.28 	legislative changes to the definition of emergency general assistance;
169.29 	(2) adopt policies and practices that prioritize easy-to-understand eligibility criteria and 
169.30 	definitions that prioritize accessible, culturally responsive, and trauma-informed approaches 
169.31 	when assisting persons through a crisis; and
169.32 	(3) develop guidance to emergency rental assistance program administrators that 
169.33 	encourage the program administrators to be flexible with the required forms of documentation 
170.1 	for the program and to avoid establishing documentation requirements that are likely to be 
170.2 	barriers to participation in emergency rental assistance for eligible households.
170.3 	(b) For the purposes of this section, the following terms have the meanings given:
170.4 	(1) "culturally responsive" means agencies, programs, and providers of services respond 
170.5 	respectfully and effectively to people of all cultures, languages, classes, races, ethnic 
170.6 	backgrounds, disabilities, religions, genders, sexual orientations, and other identities in a 
170.7 	manner that recognizes, values, and affirms differences and eliminates barriers to access; 
170.8 	and
170.9 	(2) "trauma-informed" means to recognize that many people have experienced trauma 
170.10 	in their lifetime and that programs must be designed to respond to people with respect and 
170.11 	accommodate the needs of people who have or are currently experiencing trauma.

170.12 	Sec. 44. E-SIGNATURE OPTIONS FOR RENTAL ASSISTANCE.
 170.13 	The commissioner of the Minnesota Housing Finance Agency and the commissioner of 
170.14 	human services are encouraged to develop uniform e-signature options to be used in 
170.15 	applications for emergency general assistance, emergency assistance, and family homeless 
170.16 	prevention and assistance program assistance. The commissioner must notify the chairs and 
170.17 	ranking minority members of the legislative committees with jurisdiction over housing and 
170.18 	human services when the e-signature options are implemented. A copy of this notification 
170.19 	must also be filed with the Legislative Reference Library in compliance with Minnesota 
170.20 	Statutes, section 3.195.

170.21 	Sec. 45. LANGUAGE ACCESS IN APPLICATIONS FOR RENTAL ASSISTANCE.
 170.22 	The commissioner of the Minnesota Housing Finance Agency and the commissioner of 
170.23 	human services shall research state and federal laws and regulations to determine language 
170.24 	access standards applying to the organizations' emergency general assistance, emergency 
170.25 	assistance, and family homelessness prevention and assistance programs and shall ensure 
170.26 	compliance with all applicable language access requirements. The commissioners are 
170.27 	encouraged to identify specific languages into which program materials could be translated 
170.28 	to improve access to emergency general assistance, emergency assistance, and family 
170.29 	homeless prevention and assistance program assistance and shall translate the materials into 
170.30 	the identified languages. The commissioners are encouraged to develop and implement a 
170.31 	plan to translate any website applications for emergency general assistance, emergency 
170.32 	assistance, and family homeless prevention and assistance program assistance into 
170.33 	multilingual website applications.

171.1 	Sec. 46. VERIFICATION PROCEDURES FOR RENTAL ASSISTANCE.
 171.2 	(a) The commissioner of the Minnesota Housing Finance Agency, in consultation with 
171.3 	the commissioner of human services, is encouraged to consult with local officials to develop 
171.4 	recommendations aimed at simplifying the process of verifying the information in 
171.5 	applications for emergency general assistance, emergency assistance, and family homeless 
171.6 	prevention and assistance program assistance. In developing recommendations, the 
171.7 	commissioners must consider:
171.8 	(1) allowing self-attestation of emergencies, assets, and income;
171.9 	(2) allowing verbal authorization by applicants to allow emergency rental assistance 
171.10 	administrators to communicate with landlords and utility providers regarding applications 
171.11 	for assistance; and
171.12 	(3) allowing landlords to apply for emergency rental assistance on tenants' behalf.
171.13 	(b) The commissioners are encouraged to:
171.14 	(1) prepare recommendations by January 1, 2025; and
171.15 	(2) report those recommendations to the chairs and ranking minority members of the 
171.16 	legislative committees having jurisdiction over housing.
171.17 	(c) If recommendations are developed, the commissioners must report by January 13, 
171.18 	2025, to the chairs and ranking minority members of the legislative committees with 
171.19 	jurisdiction over housing and human services detailing the proposed recommendations 
171.20 	developed pursuant to this section. If recommendations are implemented, the commissioners 
171.21 	must report by July 7, 2025, to the chairs and ranking minority members of the legislative 
171.22 	committees with jurisdiction over housing and human services detailing the recommendations 
171.23 	adopted pursuant to this section.

171.24 	Sec. 47. HOUSING AFFORDABILITY PRESERVATION INVESTMENT.
 171.25 		Subdivision 1.Establishment. The commissioner of the Minnesota Housing Finance 
171.26 	Agency must establish and administer a grant program to support recapitalization of distressed 
171.27 	buildings.
171.28 		Subd. 2.Definitions. For purposes of this section:
171.29 	(1) "distressed building" means an existing rental housing building in which the units 
171.30 	are restricted to households at or below 60 percent of the area median income, and that:
171.31 	(i) is in foreclosure proceedings;
172.1 	(ii) has two or more years of negative net operating income;
172.2 	(iii) has two or more years with a debt service coverage ratio of less than one; or
172.3 	(iv) has necessary costs of repair, replacement, or maintenance that exceed the project 
172.4 	reserves available for those purposes; and
172.5 	(2) "recapitalization" means financing for the physical and financial needs of a distressed 
172.6 	building, including restructuring and forgiveness of amortizing and deferred debt, principal 
172.7 	and interest paydown, interest rate write-down, deferral of debt payments, mortgage payment 
172.8 	forbearance, deferred maintenance, security services, property insurance, capital 
172.9 	improvements, funding of reserves for supportive services, and property operations.
172.10 		Subd. 3.Grant program. The commissioner must use a request for proposal process 
172.11 	to consider funding requests and award grants to finance recapitalization of distressed 
172.12 	buildings. In awarding grants, the commissioner must give priority to distressed buildings 
172.13 	most at risk of losing affordable housing.
172.14 		Subd. 4.Report. By February 1, 2025, and November 30, 2025, the commissioner shall 
172.15 	submit a report to the chairs and ranking minority members of the legislative committees 
172.16 	having jurisdiction over housing and homelessness. The report must detail the number of 
172.17 	applications received, the amount of funding requested, the grants awarded, and the number 
172.18 	of affordable housing units preserved through awards under this section.

172.19 	Sec. 48. REPORT TO THE LEGISLATURE.
 172.20 	(a) By January 15 each year, the commissioner must submit a report to the chairs and 
172.21 	ranking minority members of the legislative committees having jurisdiction over housing 
172.22 	finance and policy containing the following information:
172.23 	(1) the total number of applications for funding;
172.24 	(2) the amount of funding requested;
172.25 	(3) the amounts of funding awarded; and
172.26 	(4) the number of housing units that are affected by funding awards, including the number 
172.27 	of:
172.28 	(i) newly constructed owner-occupied units;
172.29 	(ii) renovated owner-occupied units;
172.30 	(iii) newly constructed rental units; and
172.31 	(iv) renovated rental units.
173.1 	(b) This reporting requirement applies to appropriations to the Minnesota Housing 
173.2 	Finance Agency under this act, to appropriations to the Minnesota Housing Finance Agency 
173.3 	in Laws 2023, and to future appropriations to the Minnesota Housing Finance Agency.

173.4 	Sec. 49. REVISOR INSTRUCTION.
 173.5 	(a) If H.F. 3800 or another substantively similar bill that establishes a new cooperative 
173.6 	chapter coded as Minnesota Statutes, chapter 308C, is enacted during the 2024 legislative 
173.7 	session, the revisor of statutes must add "308C" to the list of chapters referenced in Minnesota 
173.8 	Statutes, section 462A.37, subdivision 2, paragraph (a), clause (10), as amended in this act.
173.9 	(b) The revisor of statutes shall renumber Minnesota Statutes, section 462A.37, 
173.10 	subdivision 2i, as Minnesota Statutes, section 462A.37, subdivision 3a. The revisor shall 
173.11 	also make necessary cross-reference changes in Minnesota Statutes.

173.12 	ARTICLE 14
173.13 	DISCRIMINATION; CIC; WORKING GROUP

173.14 	Section 1. [504B.505] DISCRIMINATION; HOUSING ASSISTANCE.
173.15 	(a) A landlord must not discriminate against a tenant based on the tenant's use of federal, 
173.16 	state, or local government rental assistance; a housing choice voucher program; or another 
173.17 	form of public assistance that helps a tenant pay rent; or refuse to rent to a tenant because 
173.18 	the landlord may be responsible for meeting the terms and conditions of a public assistance 
173.19 	program. A landlord must not deny a tenant or prospective tenant a viewing or application 
173.20 	for a rental unit, deny them the opportunity to rent a unit, or discriminate against a tenant 
173.21 	or prospective tenant who uses rental assistance or a housing choice voucher. A landlord 
173.22 	cannot advertise that they will not rent to a tenant who uses rental assistance or a housing 
173.23 	choice voucher program.
173.24 	(b) A violation of this section is an unfair discriminatory practice under section 363A.09, 
173.25 	and an individual has all the rights and remedies available under chapter 363A.

173.26 	Sec. 2. Laws 2023, chapter 52, article 19, section 120, is amended to read:
173.27 	Sec. 120. EFFECTIVE DATE.
 173.28 	Sections 117 to and 119 are effective January 1, 2024. Section 118 is effective January 
173.29 	1, 2024, and applies to cases filed before, on, or after that date.

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

174.1 	Sec. 3. WORKING GROUP ON COMMON INTEREST COMMUNITIES AND 
174.2 	HOMEOWNERS ASSOCIATIONS.
 174.3 		Subdivision 1.Creation; duties. (a) A working group is created to study the prevalence 
174.4 	and impact of common interest communities (CICs) and homeowners associations (HOAs) 
174.5 	in Minnesota and how the existing laws regulating CICs and HOAs help homeowners and 
174.6 	tenants access safe and affordable housing. The working group shall study:
174.7 	(1) how many CICs and HOAs exist, how many people may reside in those housing 
174.8 	units, and where they are located in the state;
174.9 	(2) the governing documents commonly used by CICs and HOAs and whether the 
174.10 	governing documents or common practices create barriers for participation by homeowners 
174.11 	in the board of directors for CICs or HOAs;
174.12 	(3) the fees and costs commonly associated with CICs and HOAs and how those fees 
174.13 	have increased, including the cost of outside management, accounting, and attorney fees 
174.14 	that are assessed to owners and residents;
174.15 	(4) whether there should be uniform, statutory standards regarding fees, fines, and costs 
174.16 	assessed to residents;
174.17 	(5) how the organization and management of CICs and HOAs, including boards and 
174.18 	management companies, impact the affordability of CICs and HOAs;
174.19 	(6) the impact of CICs and HOAs on the housing market and housing costs;
174.20 	(7) the racial disparity in homeownership as it relates to CICs and HOAs;
174.21 	(8) the accessibility and affordability of CICs and HOAs for Minnesotans with disabilities;
174.22 	(9) how other states regulate CICs and HOAs and best practices related to board 
174.23 	transparency, dispute resolution, and foreclosures; and
174.24 	(10) how the current laws governing CICs and HOAs may be consolidated and reformed 
174.25 	for clarity and to improve the experience of homeowners and residents in CICs and HOAs.
174.26 	(b) The focus and duties of the working group shall be to recommend legislative reforms 
174.27 	or other methods to regulate CICs and HOAs, including the consolidation or recodification 
174.28 	of existing chapters regulating CICs and HOAs.
174.29 		Subd. 2.Membership. The working group shall consist of the following:
174.30 	(1) two members of the house of representatives, one appointed by the speaker of the 
174.31 	house and one appointed by the minority leader;
175.1 	(2) two members of the senate, one appointed by the senate majority leader and one 
175.2 	appointed by the senate minority leader;
175.3 	(3) one member from the Minnesota Homeownership Center;
175.4 	(4) one member from the Community Associations Institute;
175.5 	(5) one member from a business association that supports, educates, or provides services 
175.6 	to CICs and HOAs in Minnesota designated by the commissioner of commerce;
175.7 	(6) one member from a legal aid association familiar with housing laws and representing 
175.8 	low-income clients;
175.9 	(7) one member from the Minnesota Association of Realtors;
175.10 	(8) one member who is an attorney who regularly works advising homeowners or 
175.11 	residents in CICs and HOAs and is familiar with the state foreclosure laws designed by the 
175.12 	State Bar Association;
175.13 	(9) one member who is an attorney who regularly works advising CIC and HOA boards 
175.14 	designated by the State Bar Association;
175.15 	(10) one member from a metropolitan area government who is familiar with issues 
175.16 	homeowners and tenants face while living in CICs and HOAs in the metropolitan area;
175.17 	(11) the commissioner of the Minnesota Housing Finance Agency or the commissioner's 
175.18 	designee;
175.19 	(12) one member from the attorney general's office designated by the attorney general;
175.20 	(13) two members who are currently, or have within the last five years, served on a CIC 
175.21 	or HOA board and have knowledge about the management of CIC and HOA boards; and
175.22 	(14) four members who are current or recent owners of a residence that is part of a CIC 
175.23 	or HOA.
175.24 		Subd. 3.Facilitation; organization; meetings. (a) The Management Analysis Division 
175.25 	of Minnesota Management and Budget shall facilitate the working group, provide 
175.26 	administrative assistance, and convene the first meeting by July 15, 2024. Members of the 
175.27 	working group may receive compensation and reimbursement for expenses as authorized 
175.28 	by Minnesota Statutes, section 15.059, subdivision 3.
175.29 	(b) The working group must meet at regular intervals as often as necessary to accomplish 
175.30 	the goals enumerated under subdivision 1. Meetings of the working group are subject to the 
175.31 	Minnesota Open Meeting Law under Minnesota Statutes, chapter 13D.
176.1 		Subd. 4.External consultation. The working group shall consult with other individuals 
176.2 	and organizations that have expertise and experience that may assist the working group in 
176.3 	fulfilling its responsibilities, including entities engaging in additional external stakeholder 
176.4 	input from those with experience living in CICs and HOAs as well as working with the 
176.5 	board of directors for CICs and HOAs.
176.6 		Subd. 5.Report required. The working group shall submit a final report by February 
176.7 	1, 2025, to the chairs and ranking minority members of the legislative committees with 
176.8 	jurisdiction over housing finance and policy, commerce, and real property. The report shall 
176.9 	include recommendations and draft legislation based on the duties and focus for the working 
176.10 	group provided in subdivision 1.
176.11 		Subd. 6.Expiration. The working group expires upon submission of the final report in 
176.12 	subdivision 5, or February 28, 2025, whichever is later.

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

APPENDIX 

Repealed Minnesota Statutes: H5242-3 

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.