Engrossments
Introduction		Posted on 02/07/2023
1st Engrossment		Posted on 03/27/2023

ARTICLE 1

STATE GOVERNMENT

Section 1.

[1.1471] STATE FIRE MUSEUM.

The Bill and Bonnie Daniels Firefighters Hall and Museum in Minneapolis is designated
as the official state fire museum.

Sec. 2.

Minnesota Statutes 2022, section 3.303, subdivision 6, is amended to read:

Subd. 6.

Grants; staff; space; equipment; contracts.

(a) The commission may make
grants, employ an executive director and other staff, and obtain office space, equipment,
and supplies necessary to perform its duties.

(b) The executive director may enter into contracts in compliance with section 3.225 to
provide necessary services and supplies for the house of representatives and the senate, and
for legislative commissions and joint legislative offices. A contract for professional or
technical services that is valued at more than $50,000 may be made only after the executive
director has consulted with the chair and vice-chair of the commission.

Sec. 3.

Minnesota Statutes 2022, section 3.855, subdivision 2, is amended to read:

Subd. 2.

Unrepresented state employee negotiations compensation.

(a) The
commissioner of management and budget shall regularly advise the commission on the
progress of collective bargaining activities with state employees under the state Public
Employment Labor Relations Act. During negotiations, the commission may make
recommendations to the commissioner as it deems appropriate but no recommendation shall
impose any obligation or grant any right or privilege to the parties.

(b) (a) The commissioner of management and budget shall submit to the chair of the
commission any negotiated collective bargaining agreements, arbitration awards,
compensation plans, or salaries for legislative approval or disapproval. Negotiated agreements
shall be submitted within five days of the date of approval by the commissioner or the date
of approval by the affected state employees, whichever occurs later. Arbitration awards
shall be submitted within five days of their receipt by the commissioner. prepared under
section 43A.18, subdivisions 2, 3, 3b, and 4. The chancellor of the Minnesota State Colleges
and Universities shall submit any compensation plan under section 43A.18, subdivision 3a.
If the commission disapproves a collective bargaining agreement, award, compensation
plan, or salary, the commission shall specify in writing to the parties those portions with
which it disagrees and its reasons. If the commission approves a collective bargaining
agreement, award, compensation plan, or salary, it shall submit the matter to the legislature
to be accepted or rejected under this section.

(c) (b) When the legislature is not in session, the commission may give interim approval
to a negotiated collective bargaining agreement, salary, or compensation plan, or arbitration
award. When the legislature is not in session, failure of the commission to disapprove a
collective bargaining agreement or arbitration award within 30 days constitutes approval.
The commission shall submit the negotiated collective bargaining agreements, salaries, and
compensation plans, or arbitration awards for which it has provided approval to the entire
legislature for ratification at a special legislative session called to consider them or at its
next regular legislative session as provided in this section. Approval or disapproval by the
commission is not binding on the legislature.

(d) (c) When the legislature is not in session, the proposed collective bargaining
agreement, arbitration decision, salary, or compensation plan must be implemented upon
its approval by the commission, and state employees covered by the proposed agreement
or arbitration decision plan or salary do not have the right to strike while the interim approval
is in effect. Wages and economic fringe benefit increases provided for in the agreement or
arbitration decision paid in accordance with the interim approval by the commission are
not affected, but the wages or benefit increases must cease to be paid or provided effective
upon the rejection of the agreement, arbitration decision, salary, or compensation plan, or
upon adjournment of the legislature without acting on it.

Sec. 4.

Minnesota Statutes 2022, section 3.855, subdivision 3, is amended to read:

Subd. 3.

Other salaries and compensation plans.

The commission shall also:

(1) review and approve, reject, or modify a plan for compensation and terms and
conditions of employment prepared and submitted by the commissioner of management
and budget under section 43A.18, subdivision 2, covering all state employees who are not
represented by an exclusive bargaining representative and whose compensation is not
provided for by chapter 43A or other law;

(2) review and approve, reject, or modify a plan for total compensation and terms and
conditions of employment for employees in positions identified as being managerial under
section 43A.18, subdivision 3, whose salaries and benefits are not otherwise provided for
in law or other plans established under chapter 43A;

(3) review and approve, reject, or modify recommendations for salaries submitted by
the governor or other appointing authority under section 15A.0815, subdivision 5, covering
agency head positions listed in section 15A.0815;

(4) review and approve, reject, or modify recommendations for salary range of officials
of higher education systems under section 15A.081, subdivision 7c;

(5) review and approve, reject, or modify plans for compensation, terms, and conditions
of employment proposed under section 43A.18, subdivisions 3a, 3b, and 4; and

(6) review and approve, reject, or modify the plan for compensation, terms, and conditions
of employment of classified employees in the office of the legislative auditor under section
3.971, subdivision 2.

Sec. 5.

Minnesota Statutes 2022, section 3.855, subdivision 5, is amended to read:

Subd. 5.

Information required.

The commissioner of management and budget must
submit to the Legislative Coordinating Commission the following information with the
submission of a collective bargaining agreement or compensation plan under subdivisions
subdivision 2 and 3:

(1) for each agency and for each proposed agreement or plan, a comparison of biennial
compensation costs under the current agreement or plan to the projected biennial
compensation costs under the proposed agreement or plan, paid with funds appropriated
from the general fund;

(2) for each agency and for each proposed agreement or plan, a comparison of biennial
compensation costs under the current agreement or plan to the projected biennial
compensation costs under the proposed agreement or plan, paid with funds appropriated
from each fund other than the general fund;

(3) for each agency and for each proposed agreement or plan, an identification of the
amount of the additional biennial compensation costs that are attributable to salary and
wages and to the cost of nonsalary and nonwage benefits; and

(4) for each agency, for clauses (1) to (3), the impact of the aggregate of all agreements
and plans being submitted to the commission.

Sec. 6.

Minnesota Statutes 2022, section 3.888, is amended by adding a subdivision to
read:

Subd. 1a.

Definition.

(a) For purposes of this section, the following term has the meaning
given.

(b) "Security records" means data, documents, recordings, or similar that:

(1) were originally collected, created, received, maintained, or disseminated by a member
of the commission during a closed meeting or a closed portion of a meeting; and

(2) are security information as defined by section 13.37, subdivision 1, or otherwise
pertain to cybersecurity briefings and reports; issues related to cybersecurity systems; or
deficiencies in or recommendations regarding cybersecurity services, infrastructure, and
facilities, if disclosure of the records would pose a danger to or compromise cybersecurity
infrastructure, facilities, procedures, or responses.

Sec. 7.

Minnesota Statutes 2022, section 3.888, subdivision 5, is amended to read:

Subd. 5.

Meetings.

The commission must meet at least three times per calendar year.
The meetings of the commission are subject to section 3.055, except that the commission
may close a meeting when necessary to safeguard the state's cybersecurity. The minutes,
recordings, and documents from a closed meeting under this subdivision Security records
shall be maintained by the Legislative Coordinating Commission and shall not be made
available to the public until at least eight years but no more than 20 years after the date of
the closed meeting.

Sec. 8.

Minnesota Statutes 2022, section 3.888, is amended by adding a subdivision to
read:

Subd. 5a.

Closed meetings procedures.

The commission must adopt procedures for
conducting closed meetings before the commission's first closed meeting. At a minimum,
the procedures must include:

(1) a requirement to provide notice to the public, when practicable, before each closed
meeting of the commission's intent and authority to hold a closed meeting or to hold a closed
session during an otherwise open meeting;

(2) a requirement that the commission minimize the number of people present at a closed
meeting to those necessary to conduct the meeting;

(3) a requirement that votes shall not be taken during a closed meeting or a closed portion
of a meeting pursuant to this section;

(4) steps the commission must take if a commission member is alleged to have violated
the confidentiality of a closed meeting; and

(5) guidance for the Legislative Coordinating Commission for the public release of
security records following the eight year record requirement in subdivision 5. The meetings
of the Legislative Coordinating Commission under this subdivision are exempt from section
3.055 when necessary to safeguard the confidentiality of security records.

Sec. 9.

Minnesota Statutes 2022, section 3.888, is amended by adding a subdivision to
read:

Subd. 5b.

Alleged member closed meeting confidentiality violations.

Notwithstanding
any law to the contrary, if a complaint alleging a member violated the confidentiality of a
closed meeting is brought to a legislative committee with jurisdiction over ethical conduct,
the committee with jurisdiction over ethical conduct must preserve the confidentiality of
the closed meeting at issue.

Sec. 10.

Minnesota Statutes 2022, section 3.97, subdivision 2, is amended to read:

Subd. 2.

Membership; terms; meetings; compensation; powers.

The Legislative Audit
Commission consists of:

(1) three members of the senate appointed by the Subcommittee on Committees of the
Committee on Rules and Administration of the senate majority leader;

(2) three members of the senate appointed by the senate minority leader;

(3) three members of the house of representatives appointed by the speaker of the house;
and

(4) three members of the house of representatives appointed by the house of
representatives minority leader.

Members shall serve until replaced, or until they are not members of the legislative body
from which they were appointed. Appointing authorities shall fill vacancies on the
commission within 30 days of a vacancy being created.

The commission shall meet in January of each odd-numbered year to elect its chair and
vice-chair. They shall serve until successors are elected. The chair and vice-chair shall
alternate biennially between the senate and the house of representatives, and shall be of
different political parties. The commission shall meet at the call of the chair. The members
shall serve without compensation but be reimbursed for their reasonable expenses as members
of the legislature. The commission may exercise the powers prescribed by section 3.153.

Sec. 11.

Minnesota Statutes 2022, section 3.972, subdivision 3, is amended to read:

Subd. 3.

Audit contracts.

Notwithstanding any other law, A state department, board,
commission, or other state agency shall not negotiate a contract contracting with a public
accountant for an audit, except a contract negotiated by the state auditor for an audit of a
local government, unless the contract has been reviewed by the legislative auditor. The
legislative auditor shall not participate in the selection of the public accountant but shall
review and submit written comments on the proposed contract within seven days of its
receipt. Upon completion of the audit, the legislative auditor shall be given must provide
the legislative auditor with a copy of the final report of the audit upon completion of the
audit.

Sec. 12.

Minnesota Statutes 2022, section 3.978, subdivision 2, is amended to read:

Subd. 2.

Inquiry and inspection power; duty to aid legislative auditor.

All public
officials and their deputies and employees, and all corporations, firms, and individuals
having business involving the receipt, disbursement, or custody of public funds shall at all
times: (1) afford reasonable facilities for examinations by the legislative auditor,; (2) make
provide returns and reports required by the legislative auditor,; (3) attend and answer under
oath the legislative auditor's lawful inquiries,; (4) produce and exhibit all books, accounts,
documents, data of any classification, and property that the legislative auditor requests to
inspect,; and (5) in all things cooperate with the legislative auditor.

Sec. 13.

Minnesota Statutes 2022, section 3.979, subdivision 2, is amended to read:

Subd. 2.

Access to data by commission members.

Members of the commission have
access to not public data that is collected or used by the legislative auditor and classified as
not public or as private or confidential only as authorized by resolution of the commission.
The commission may not authorize its members to have access to private or confidential
data on individuals collected or used in connection with the collection of any tax.

Sec. 14.

Minnesota Statutes 2022, section 3.979, subdivision 3, is amended to read:

Subd. 3.

Audit data.

(a) "Audit" as used in this subdivision means a financial audit,
program evaluation, special review, or investigation, or assessment of an allegation or report
submitted to the legislative auditor. Notwithstanding any other law, data relating to an audit
are not public or with respect to data on individuals are confidential or protected nonpublic
until the final report of the audit has been released by the legislative auditor or the audit is
no longer being actively pursued. Upon release of a final audit report by the legislative
auditor, data relating to an audit are public except data otherwise classified as not public.
Unless the data are subject to a more restrictive classification by another law, upon the
legislative auditor's decision to no longer actively pursue an audit without the release of a
final audit report, data relating to an audit are private or nonpublic.

(b) Data related to an audit but not published in the audit report and that the legislative
auditor reasonably believes will be used in litigation are not public and with respect to data
on individuals are confidential or protected nonpublic until the litigation has been completed
or is no longer being actively pursued.

(c) Data that could reasonably be used to determine the identity of an individual or entity
supplying data for an audit are private or nonpublic if the data supplied by the individual
were needed for an audit and the individual would not have been provided the data to the
legislative auditor without an assurance that the individual's identity of the individual or
entity would remain private or nonpublic, or the legislative auditor reasonably believes that
the subject data would not have been provided the data.

(d) The definitions of terms provided in section 13.02 apply for purposes of this
subdivision Data related to an audit that were obtained from a nongovernmental entity have
the classification that the data would have if obtained from the government entity for which
the data were created, collected, or maintained by the nongovernmental entity.

(e) The legislative auditor may disseminate data of any classification to:

(1) a government entity, other than a law enforcement agency or prosecuting authority,
if the dissemination of the data aids a pending audit; or

(2) a law enforcement agency or prosecuting authority if there is reason to believe that
the data are evidence of criminal activity within the agency's or authority's jurisdiction.

Notwithstanding the classification of data as confidential or protected nonpublic, an individual
or entity who supplies information for an audit may authorize the legislative auditor to
release data that would identify the individual or entity for the purpose of conducting the
audit. Data disseminated pursuant to this paragraph are subject to section 13.03, subdivision
4, paragraph (c).

Sec. 15.

Minnesota Statutes 2022, section 3.979, is amended by adding a subdivision to
read:

Subd. 6.

Definitions.

The definitions of terms provided in section 13.02 apply for
purposes of this section.

Sec. 16.

Minnesota Statutes 2022, section 9.031, subdivision 3, is amended to read:

Subd. 3.

Collateral.

(a) In lieu of the corporate bond required in subdivision 2, a
depository may deposit with the commissioner of management and budget collateral to
secure state funds that are to be deposited with it. The Executive Council must approve the
collateral.

(b) The Executive Council shall not approve any collateral except:

(1) bonds and certificates of indebtedness, other than bonds secured by real estate, that
are legal investments for savings banks under any law of the state; and

(2) bonds of any insular possession of the United States, of any state, or of any agency
of this state, the payment of the principal and interest of which is provided for by other than
direct taxation.

(1) United States government treasury bills, treasury notes, and treasury bonds;

(2) issues of United States government agencies and instrumentalities, as quoted by a
recognized industry quotation service available to the state;

(3) general obligation securities of any state other than the state and its agencies or local
government with taxing powers that is rated "A" or better by a national bond rating service,
or revenue obligation securities of any state other than the state and its agencies or local
government with taxing powers which is rated "AA" or better by a national bond rating
service;

(4) irrevocable standby letters of credit issued by Federal Home Loan Banks to the state
accompanied by written evidence that the bank's public debt is rated "AA" or better by
Moody's Investors Service, Inc., or Standard & Poor's Corporation; and

(5) time deposits that are fully insured by any federal agency.

(c) The collateral deposited shall be accompanied by an assignment thereof to the state,
which assignment shall recite that:

(1) the depository will pay all the state funds deposited with it to the commissioner of
management and budget, free of exchange or other charge, at any place in this state
designated by the commissioner of management and budget; if the deposit is a time deposit
it shall be paid, together with interest, only when due; and

(2) in case of default by the depository the state may sell the collateral, or as much of it
as is necessary to realize the full amount due from the depository, and pay any surplus to
the depository or its assigns.

(d) Upon the direction of the Executive Council, the commissioner of management and
budget, on behalf of the state, may reassign in writing to the depository any registered
collateral pledged to the state by assignment thereon.

(e) A depository may deposit collateral of less value than the total designation and may,
at any time during the period of its designation, deposit additional collateral, withdraw
excess collateral, and substitute other collateral for all or part of that on deposit. Approval
of the Executive Council is not necessary for the withdrawal of excess collateral.

(f) If the depository is not in default the commissioner of management and budget shall
pay the interest collected on the deposited collateral to the depository.

(g) In lieu of depositing collateral with the commissioner of management and budget,
collateral may also be placed in safekeeping in a restricted account at a Federal Reserve
bank, or in an account at a trust department of a commercial bank or other financial institution
that is not owned or controlled by the financial institution furnishing the collateral. The
selection shall be approved by the commissioner.

Sec. 17.

Minnesota Statutes 2022, section 13.04, subdivision 4, is amended to read:

Subd. 4.

Procedure when data is not accurate or complete.

(a) An individual subject
of the data may contest the accuracy or completeness of public or private data about
themselves.

(b) To exercise this right, an individual shall notify in writing the responsible authority
of the government entity that maintains the data, describing the nature of the disagreement.

(1) correct the data found to be inaccurate or incomplete and attempt to notify past
recipients of inaccurate or incomplete data, including recipients named by the individual;
or

(2) notify the individual that the responsible authority believes has determined the data
to be correct. If the challenged data are determined to be accurate or complete, the responsible
authority shall inform the individual of the right to appeal the determination to the
commissioner as specified under paragraph (d). Data in dispute shall be disclosed only if
the individual's statement of disagreement is included with the disclosed data.

(d) A data subject may appeal the determination of the responsible authority may be
appealed pursuant to the provisions of the Administrative Procedure Act relating to contested
cases. An individual must submit an appeal to the commissioner within 60 days of the
responsible authority's notice of the right to appeal or as otherwise provided by the rules of
the commissioner. Upon receipt of an appeal by an individual, the commissioner shall,
before issuing the order and notice of a contested case hearing required by chapter 14, try
to resolve the dispute through education, conference, conciliation, or persuasion. If the
parties consent, the commissioner may refer the matter to mediation. Following these efforts,
the commissioner shall dismiss the appeal or issue the order and notice of hearing.

(e) The commissioner may dismiss an appeal without first attempting to resolve the
dispute or before issuing an order and notice of a contested case hearing if:

(1) the appeal to the commissioner is not timely;

(2) the appeal concerns data previously presented as evidence in a court proceeding in
which the data subject was a party; or

(3) the individual making the appeal is not the subject of the data challenged as inaccurate
or incomplete.

(b) (f) Data on individuals that have been successfully challenged by an individual must
be completed, corrected, or destroyed by a government entity without regard to the
requirements of section 138.17.

(g) After completing, correcting, or destroying successfully challenged data, a government
entity may retain a copy of the commissioner of administration's order issued under chapter
14 or, if no order were issued, a summary of the dispute between the parties that does not
contain any particulars of the successfully challenged data.

Sec. 18.

Minnesota Statutes 2022, section 15.066, is amended by adding a subdivision to
read:

Subd. 3.

Advice and consent time limit.

If the senate does not reject an appointment
within 60 legislative days of the day of receipt of the letter of appointment by the president
of the senate, the senate has consented to the appointment.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 19.

Minnesota Statutes 2022, section 15A.0825, subdivision 1, is amended to read:

Subdivision 1.

Membership.

(a) The Legislative Salary Council consists of the following
members:

(1) one person, who is not a judge, from each congressional district, appointed by the
chief justice of the supreme court; and

(2) one person from each congressional district, appointed by the governor.

(b) If Minnesota has an odd number of congressional districts, the governor and the chief
justice must each appoint an at-large member, in addition to a member from each
congressional district.

(c) One-half of the members appointed by the governor and one-half of the members
appointed by the chief justice must belong to the political party that has the most members
in the legislature. One-half of the members appointed by the governor and one-half of the
members appointed by the chief justice must belong to the political party that has the second
most members in the legislature.

(d) None of the members of the council may be:

(1) a current or former legislator, or the spouse of a current legislator;

(2) a current or former lobbyist registered under Minnesota law;

(3) a current employee of the legislature;

(4) a current or former judge; or

(5) a current or former governor, lieutenant governor, attorney general, secretary of state,
or state auditor.; or

(6) a current employee of an entity in the executive or judicial branch.

Sec. 20.

Minnesota Statutes 2022, section 15A.0825, subdivision 2, is amended to read:

Subd. 2.

Initial appointment Appointments; convening authority; first meeting in
odd-numbered year.

Appointing authorities must make their initial appointments by January
2, 2017 after the first Monday in January and before January 15 in each odd-numbered year.
Appointing authorities who determine that a vacancy exists under subdivision 3, paragraph
(b), must make an appointment to fill that vacancy by January 15 in each odd-numbered
year. The governor shall designate one member to convene and chair the first meeting of
the council which must occur by February 15 of each odd-numbered year. The first meeting
must be before January 15, 2017. At its first meeting, the council must elect a chair from
among its members. Members that reside in an even-numbered congressional district serve
a first term ending January 15, 2019. Members residing in an odd-numbered congressional
district serve a first term ending January 15, 2021.

Sec. 21.

Minnesota Statutes 2022, section 15A.0825, subdivision 3, is amended to read:

Subd. 3.

Terms.

(a) Except for initial terms and for the first term following redistricting,
a term is four years or until new appointments are made after congressional redistricting as
provided in subdivision 4. Members may serve no more than two full terms or portions of
two consecutive terms.

(b) If a member ceases to reside in the congressional district that the member resided in
at the time of appointment as a result of moving or redistricting, the appointing authority
who appointed the member must appoint a replacement who resides in the congressional
district to serve the unexpired term.

Sec. 22.

Minnesota Statutes 2022, section 15A.0825, subdivision 4, is amended to read:

Subd. 4.

Appointments following redistricting.

Appointing authorities shall make
appointments within three months after a congressional redistricting plan is adopted.
Appointing authorities shall make appointments in accordance with the timing requirements
in subdivision 2. Members that reside in an even-numbered district shall be appointed to a
term of two years following redistricting. Members that reside in an odd-numbered district
shall be appointed to a term of four years following redistricting.

Sec. 23.

Minnesota Statutes 2022, section 16B.32, subdivision 1, is amended to read:

Subdivision 1.

Alternative energy sources.

Plans prepared by the commissioner for a
new building or for a renovation of 50 percent or more of an existing building or its energy
systems must include designs which use active and passive solar energy systems, earth
sheltered construction, and other alternative energy sources where feasible. (a) If the
incorporation of cost-effective energy efficiency measures into the design, materials, and
operations of a building or major building renovation subject to section 16B.325 is not
sufficient to meet Sustainable Building 2030 energy performance standards required under
section 216B.241, subdivision 9, cost-effective renewable energy sources or solar thermal
energy systems, or both, must be deployed to achieve those standards.

(b) The commissioners of administration and commerce shall review compliance of
building designs and plans subject to this section with Sustainable Building 2030 performance
standards developed under section 216B.241, subdivision 9, and shall make recommendations
to the legislature as necessary to ensure that those performance standards are met.

(1) "energy efficiency" has the meaning given in section 216B.2402, subdivision 7;

(2) "renewable energy" has the meaning given in section 216B.2422, subdivision 1,
paragraph (c), and includes hydrogen generated from wind, solar, or hydroelectric; and

(3) "solar thermal energy systems" has the meaning given to "qualifying solar thermal
project" in section 216B.2411, subdivision 2, paragraph (e).

Sec. 24.

Minnesota Statutes 2022, section 16B.32, subdivision 1a, is amended to read:

Subd. 1a.

Onsite energy generation from renewable sources.

A state agency that
prepares a predesign for a new building must consider meeting at least two percent of the
energy needs of the building from renewable sources located on the building site. For
purposes of this subdivision, "renewable sources" are limited to wind and the sun. The
predesign must include an explicit cost and price analysis of complying with the two-percent
requirement compared with the present and future costs of energy supplied by a public
utility from a location away from the building site and the present and future costs of
controlling carbon emissions. If the analysis concludes that the building should not meet at
least two percent of its energy needs from renewable sources located on the building site,
the analysis must provide explicit reasons why not. The building may not receive further
state appropriations for design or construction unless at least two percent of its energy needs
are designed to be met from renewable sources, unless the commissioner finds that the
reasons given by the agency for not meeting the two-percent requirement were supported
by evidence in the record. The total aggregate nameplate capacity of all renewable energy
sources utilized to meet Sustainable Building 2030 standards in a state-owned building or
facility, including any subscription to a community solar garden under section 216B.1641,
may not exceed 120 percent of the average annual electric energy consumption of the
state-owned building or facility.

Sec. 25.

[16B.361] OFFICE OF COLLABORATION AND DISPUTE RESOLUTION.

Subdivision 1.

Duties of the office.

The commissioner of administration shall maintain
the Office of Collaboration and Dispute Resolution within the Department of Administration.
The office must:

(1) assist state agencies; offices of the executive, legislative, and judicial branches; Tribal
governments; and units of local government in improving collaboration, dispute resolution,
and public engagement;

(2) promote and utilize collaborative dispute resolution models and processes based on
documented best practices to foster trust, relationships, mutual understanding,
consensus-based resolutions, and wise and durable solutions, including but not limited to:

(i) using established criteria and procedures for identifying and assessing collaborative
dispute resolution projects;

(ii) designing collaborative dispute resolution processes;

(iii) preparing and training participants; and

(iv) facilitating meetings and group processes using collaborative techniques and
approaches;

(3) support collaboration and dispute resolution in the public and private sectors by
providing technical assistance and information on best practices and new developments in
dispute resolution fields;

(4) build capacity and educate the public and government entities on collaboration,
dispute resolution approaches, and public engagement;

(5) promote the broad use of community mediation in the state; and

(6) ensure that all areas of the state have access to services by providing grants to private
nonprofit entities certified by the state court administrator under chapter 494 that assist in
resolution of disputes.

Subd. 2.

Awarding grants to assist in resolution of disputes.

(a) The commissioner
shall, to the extent funds are appropriated for this purpose, make grants to private nonprofit
community mediation entities certified by the state court administrator under chapter 494
that assist in resolution of disputes under subdivision 1, clause (6). The commissioner shall
establish a grant review committee to assist in the review of grant applications and the
allocation of grants under this section.

(b) To be eligible for a grant under this section, a nonprofit organization must meet the
requirements of section 494.05, subdivision 1, clauses (1), (2), (4), and (5).

(c) A nonprofit entity receiving a grant must agree to comply with guidelines adopted
by the state court administrator under section 494.015, subdivision 1. Policies adopted under
sections 16B.97 and 16B.98 apply to grants under this section. The exclusions in section
494.03 apply to grants under this section.

(d) Grantees must report data required under chapter 494 to evaluate quality and
outcomes.

Subd. 3.

Accepting funds.

The commissioner may apply for and receive money made
available from federal, state, or other sources to carry out the duties of the Office of
Collaboration and Dispute Resolution. Funds received under this subdivision are appropriated
to the commissioner for their intended purpose.

Sec. 26.

[16B.372] ENVIRONMENTAL SUSTAINABILITY GOVERNMENT
OPERATIONS.

Subdivision 1.

Enterprise sustainability.

The Office of Enterprise Sustainability is
established to assist all state agencies in making measurable progress toward improving the
sustainability of government operations by reducing the impact on the environment,
controlling unnecessary waste of natural resources and public funds, and spurring innovation.
The office shall create new tools and share best practices, assist state agencies to plan for
and implement improvements, and monitor progress toward achieving intended outcomes.
Specific duties include but are not limited to:

(1) managing a sustainability metrics and reporting system, including a public dashboard
that allows Minnesotans to track progress and is updated annually;

(2) assisting agencies in developing and executing sustainability plans; and

(3) implementing the state building energy conservation improvement revolving loan
program in sections 16B.86 and 16B.87.

Subd. 2.

State agency responsibilities.

Each department of the state, as defined in
section 15.01, and the Metropolitan Council are each required to participate in the
sustainability effort by developing a sustainability plan and by making measurable progress
toward improving associated sustainability outcomes. State agencies and boards that are
not departments or the Metropolitan Council shall take steps toward improving sustainability
outcomes but are not required to participate at the level of departments.

Subd. 3.

Local governments.

The Office of Enterprise Sustainability shall make
reasonable attempts to share tools and best practices with local governments.

Sec. 27.

Minnesota Statutes 2022, section 16B.58, is amended by adding a subdivision to
read:

Subd. 9.

Electric vehicle charging.

The commissioner shall require that a user of a
charging station located on the State Capitol complex used to charge an electric vehicle pay
a service fee as determined by the commissioner.

Sec. 28.

Minnesota Statutes 2022, section 16B.87, subdivision 2, is amended to read:

Subd. 2.

Award and terms of loans.

(a) An agency shall apply for a loan on a form
developed by the commissioner of administration that requires an applicant to submit the
following information:

(1) a description of the proposed project, including existing equipment, structural
elements, operating characteristics, and other conditions affecting energy use that the energy
conservation improvements financed by the loan modify or replace;

(2) the total estimated project cost and the loan amount sought;

(3) a detailed project budget;

(4) projections of the proposed project's expected energy and monetary savings;

(5) information demonstrating the agency's ability to repay the loan;

(6) a description of the energy conservation programs offered by the utility providing
service to the state building from which the applicant seeks additional funding for the project;
and

(7) any additional information requested by the commissioner.

(b) The committee shall review applications for loans and shall award a loan based upon
criteria adopted by the committee. A loan made under this section must:

(1) be at or below the market rate of interest, including a zero interest loan; and

(2) have a term no longer than seven ten years.

(1) applicants that have sought funding for the project through energy conservation
projects offered by the utility serving the state building that is the subject of the application;
and

(2) to the extent feasible, applications for state buildings located within the electric retail
service area of the utility that is subject to section 116C.779.

Sec. 29.

Minnesota Statutes 2022, section 16C.16, subdivision 6, is amended to read:

Subd. 6.

Purchasing methods.

(a) The commissioner may award up to a six 12 percent
preference for specified goods or services to small targeted group businesses.

(b) The commissioner may award a contract for goods, services, or construction directly
to a small business or small targeted group business without going through a competitive
solicitation process up to a total contract award value, including extension options, of
$25,000 $100,000.

(c) The commissioner may designate a purchase of goods or services for award only to
small businesses or small targeted group businesses if the commissioner determines that at
least three small businesses or small targeted group businesses are likely to respond to a
solicitation.

(d) The commissioner, as a condition of awarding a construction contract or approving
a contract for professional or technical services, may set goals that require the prime
contractor to subcontract a portion of the contract to small businesses or small targeted
group businesses. The commissioner must establish a procedure for granting waivers from
the subcontracting requirement when qualified small businesses or small targeted group
businesses are not reasonably available. The commissioner may establish financial incentives
for prime contractors who exceed the goals for use of small business or small targeted group
business subcontractors and financial penalties for prime contractors who fail to meet goals
under this paragraph. The subcontracting requirements of this paragraph do not apply to
prime contractors who are small businesses or small targeted group businesses.

Sec. 30.

Minnesota Statutes 2022, section 16C.16, subdivision 6a, is amended to read:

Subd. 6a.

Veteran-owned small businesses.

(a) Except when mandated by the federal
government as a condition of receiving federal funds, the commissioner shall award up to
a six 12 percent preference, but no less than the percentage awarded to any other group
under this section, on state procurement to certified small businesses that are majority-owned
and operated by veterans.

(b) The commissioner may award a contract for goods, services, or construction directly
to a veteran-owned small business without going through a competitive solicitation process
up to a total contract award value, including extension options, of $25,000 $100,000.

(c) The commissioner may designate a purchase of goods or services for award only to
a veteran-owned small business if the commissioner determines that at least three
veteran-owned small businesses are likely to respond to a solicitation.

(d) The commissioner, as a condition of awarding a construction contract or approving
a contract for professional or technical services, may set goals that require the prime
contractor to subcontract a portion of the contract to a veteran-owned small business. The
commissioner must establish a procedure for granting waivers from the subcontracting
requirement when qualified veteran-owned small businesses are not reasonably available.
The commissioner may establish financial incentives for prime contractors who exceed the
goals for use of veteran-owned small business subcontractors and financial penalties for
prime contractors who fail to meet goals under this paragraph. The subcontracting
requirements of this paragraph do not apply to prime contractors who are veteran-owned
small businesses.

(e) The purpose of this designation is to facilitate the transition of veterans from military
to civilian life, and to help compensate veterans for their sacrifices, including but not limited
to their sacrifice of health and time, to the state and nation during their military service, as
well as to enhance economic development within Minnesota.

(f) Before the commissioner certifies that a small business is majority-owned and operated
by a veteran, the commissioner of veterans affairs must verify that the owner of the small
business is a veteran, as defined in section 197.447.

Sec. 31.

Minnesota Statutes 2022, section 16C.16, subdivision 7, is amended to read:

Subd. 7.

Economically disadvantaged areas.

(a) The commissioner may award up to
a six 12 percent preference on state procurement to small businesses located in an
economically disadvantaged area.

(b) The commissioner may award a contract for goods, services, or construction directly
to a small business located in an economically disadvantaged area without going through
a competitive solicitation process up to a total contract award value, including extension
options, of $25,000 $100,000.

(c) The commissioner may designate a purchase of goods or services for award only to
a small business located in an economically disadvantaged area if the commissioner
determines that at least three small businesses located in an economically disadvantaged
area are likely to respond to a solicitation.

(d) The commissioner, as a condition of awarding a construction contract or approving
a contract for professional or technical services, may set goals that require the prime
contractor to subcontract a portion of the contract to a small business located in an
economically disadvantaged area. The commissioner must establish a procedure for granting
waivers from the subcontracting requirement when qualified small businesses located in an
economically disadvantaged area are not reasonably available. The commissioner may
establish financial incentives for prime contractors who exceed the goals for use of
subcontractors that are small businesses located in an economically disadvantaged area and
financial penalties for prime contractors who fail to meet goals under this paragraph. The
subcontracting requirements of this paragraph do not apply to prime contractors who are
small businesses located in an economically disadvantaged area.

(e) A business is located in an economically disadvantaged area if:

(1) the owner resides in or the business is located in a county in which the median income
for married couples is less than 70 percent of the state median income for married couples;

(2) the owner resides in or the business is located in an area designated a labor surplus
area by the United States Department of Labor; or

(3) the business is a certified rehabilitation facility or extended employment provider as
described in chapter 268A.

(f) The commissioner may designate one or more areas designated as targeted
neighborhoods under section 469.202 or as border city enterprise zones under section
469.166 as economically disadvantaged areas for purposes of this subdivision if the
commissioner determines that this designation would further the purposes of this section.
If the owner of a small business resides or is employed in a designated area, the small
business is eligible for any preference provided under this subdivision.

(g) The Department of Revenue shall gather data necessary to make the determinations
required by paragraph (e), clause (1), and shall annually certify counties that qualify under
paragraph (e), clause (1). An area designated a labor surplus area retains that status for 120
days after certified small businesses in the area are notified of the termination of the
designation by the United States Department of Labor.

Sec. 32.

Minnesota Statutes 2022, section 16C.19, is amended to read:

16C.19 ELIGIBILITY; RULES.

(a) A small business wishing to participate in the programs under section 16C.16,
subdivisions 4 to 7, must be certified by the commissioner or, if authorized by the
commissioner, by a nationally recognized certifying organization. The commissioner may
choose to authorize a nationally recognized certifying organization if the certification
requirements are substantially the same as those adopted under the rules authorized in this
section and the business meets the requirements in section 16C.16, subdivision 2.

(b) The commissioner shall adopt by rule standards and procedures for certifying that
small targeted group businesses, small businesses located in economically disadvantaged
areas, and veteran-owned small businesses are eligible to participate under the requirements
of sections 16C.16 to 16C.21. The commissioner shall adopt by rule standards and procedures
for hearing appeals and grievances and other rules necessary to carry out the duties set forth
in sections 16C.16 to 16C.21.

(b) (c) The commissioner may make rules which exclude or limit the participation of
nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.

(c) (d) The commissioner may make rules that set time limits and other eligibility limits
on business participation in programs under sections 16C.16 to 16C.21.

(d) (e) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a
veteran-owned small business, the principal place of business of which is in Minnesota, is
certified if:

(1) it has been verified by the United States Department of Veterans Affairs as being
either a veteran-owned small business or a service-disabled veteran-owned small business,
in accordance with Public Law 109-461 and Code of Federal Regulations, title 38, part 74;
or

(2) the veteran-owned small business supplies the commissioner with proof that the
small business is majority-owned and operated by:

(i) a veteran as defined in section 197.447; or

(ii) a veteran with a service-connected disability, as determined at any time by the United
States Department of Veterans Affairs.

(e) (f) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying
veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may
be read to include veteran-owned small businesses. In addition to the documentation required
in Minnesota Rules, part 1230.1700, the veteran owner must have been discharged under
honorable conditions from active service, as indicated by the veteran owner's most current
United States Department of Defense form DD-214.

(f) (g) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a
minority- or woman-owned small business, the principal place of business of which is in
Minnesota, is certified if it has been certified by the Minnesota unified certification program
under the provisions of Code of Federal Regulations, title 49, part 26, and a Tribal-owned
small business, the principal place of business of which is in Minnesota, is certified if it has
been certified by the Small Business Administration (SBA) 8(a) program under the provisions
of Code of Federal Regulations, title 13, part 124.

(g) (h) The commissioner may adopt rules to implement the programs under section
16C.16, subdivisions 4 to 7, using the expedited rulemaking process in section 14.389.

Sec. 33.

Minnesota Statutes 2022, section 16C.36, is amended to read:

16C.36 REORGANIZATION SERVICES UNDER MASTER CONTRACT.

The commissioner of administration must make available under a master contract program
a list of eligible contractors who can assist state agencies in using data analytics to:

(1) accomplish agency reorganization along service rather than functional lines in order
to provide more efficient and effective service; and

(2) bring about internal reorganization of management functions in order to flatten the
organizational structure by requiring that decisions are made closer to the service needed,
eliminating redundancies, and optimizing the span of control ratios to public and private
sector industry benchmarks.

The commissioner of administration must report to the legislature by January 15, 2013,
and January 15, 2014, on state agency use of eligible contractors under this section, and on
improvements in efficiency and effectiveness, including the contract oversight process, of
state services as a result of services provided by contractors.

Sec. 34.

Minnesota Statutes 2022, section 43A.06, subdivision 1, is amended to read:

Subdivision 1.

General.

(a) The commissioner shall perform the duties assigned to the
commissioner by sections 3.855, 179A.01 to 179A.25 and this section.

(b) The commissioner shall be the state labor negotiator for purposes of negotiating and
administering agreements with exclusive representatives of employees and shall perform
any other duties delegated by the commissioner subject to the limitations in paragraph (c).

(c) The Board of Trustees of the Minnesota State Colleges and Universities may exercise
the powers under this section for employees included in the units provided in clauses (9),
(10), and (11) of section 179A.10, subdivision 2, except with respect to sections 43A.22 to
43A.31, which shall continue to be the responsibility of the commissioner. The commissioner
shall have the right to review and comment to the Minnesota State Colleges and Universities
on the board's final proposals prior to exchange of final positions with the designated
bargaining units as well as any requests for interest arbitration. The legislature encourages
the Board of Trustees, in coordination with the commissioner of management and budget
and the Board of Regents of the University of Minnesota, to endeavor in collective bargaining
negotiations to seek fiscal balance recognizing the ability of the employer to fund the
agreements or awards. When submitting a proposed collective bargaining agreement to the
Legislative Coordinating Commission and the legislature under section 3.855, subdivision
2, the Board of Trustees must use procedures and assumptions consistent with those used
by the commissioner in calculating the costs of the proposed contract. The Legislative
Coordinating Commission must, when considering a collective bargaining agreement or
arbitration award submitted by the Board of Trustees, evaluate market conditions affecting
the employees in the bargaining unit, equity with other bargaining units in the executive
branch, and the ability of the trustees and the state to fund the agreement or award.

Sec. 35.

Minnesota Statutes 2022, section 43A.18, subdivision 1, is amended to read:

Subdivision 1.

Collective bargaining agreements.

Except as provided in section 43A.01
and to the extent they are covered by a collective bargaining agreement, the compensation,
terms and conditions of employment for all employees represented by an exclusive
representative certified pursuant to chapter 179A shall be governed solely by the collective
bargaining agreement executed by the parties and approved by the legislature.

Sec. 36.

Minnesota Statutes 2022, section 43A.18, subdivision 9, is amended to read:

Subd. 9.

Summary information on website.

Before the commissioner submits a
proposed collective bargaining agreement, arbitration award, or compensation plan to the
Legislative Coordinating Commission for review under section 3.855, the commissioner
must post on a state website a summary of the proposed agreement, award, or plan. The
summary must include the amount of and nature of proposed changes in employee
compensation, the estimated cost to the state of proposed changes in employee compensation,
and a description of proposed significant changes in policy. After approval of an agreement,
award, or a plan by the Legislative Coordinating Commission, the commissioner must
provide a link from the commissioner's summary to the full text of the agreement, award,
or plan. The summary must remain on the website at least until the full legislature has
approved the agreement, award, or plan. This section also applies to agreements, awards,
and plans covering employees of the Minnesota State Colleges and Universities and to
compensation plans that must be submitted to the Legislative Coordinating Commission by
other executive appointing authorities. The Minnesota State Colleges and Universities and
other executive appointing authorities must submit information to the commissioner, at a
time and in a manner specified by the commissioner, so the commissioner can post
information relating to these appointing authorities on the web as required by this section.

EFFECTIVE DATE.

This section is effective July 1, 2023, for negotiated agreements
and arbitration decisions effective after July 1, 2023.

Sec. 37.

Minnesota Statutes 2022, section 137.0245, subdivision 2, is amended to read:

Subd. 2.

Membership.

The Regent Candidate Advisory Council shall consist of 24
members. Twelve members shall be appointed by the Subcommittee on Committees of the
Committee on Rules and Administration majority leader of the senate. Twelve members
shall be appointed by the speaker of the house. Each appointing authority must appoint one
member who is a student enrolled in a degree program at the University of Minnesota at
the time of appointment. No more than one-third of the members appointed by each
appointing authority may be current or former legislators. No more than two-thirds of the
members appointed by each appointing authority may belong to the same political party;
however, political activity or affiliation is not required for the appointment of any member.
Geographical representation must be taken into consideration when making appointments.
Section 15.0575 shall govern the advisory council, except that:

(1) the members shall be appointed to six-year terms with one-third appointed each
even-numbered year; and

(2) student members are appointed to two-year terms with two students appointed each
even-numbered year.

A member may not serve more than two full terms.

Sec. 38.

Minnesota Statutes 2022, section 137.0245, is amended by adding a subdivision
to read:

Subd. 6.

Public meetings.

Meetings of the council or subcommittees of the council must
be open to the public and are subject to section 3.055.

Sec. 39.

Minnesota Statutes 2022, section 138.081, subdivision 3, is amended to read:

Subd. 3.

Administration of federal act.

The Department of Administration Minnesota
Historical Society is designated as the state agency to administer the provisions of the federal
act providing for the preservation of historical and archaeological data, United States Code,
title 16 54, sections 469 to 469C section 312501, as amended, insofar as the provisions of
the act provide for implementation by the state.

Sec. 40.

Minnesota Statutes 2022, section 138.665, subdivision 2, is amended to read:

Subd. 2.

Mediation Consultation.

The state, state departments, agencies, and political
subdivisions, including the Board of Regents of the University of Minnesota, have a
responsibility to protect the physical features and historic character of properties designated
in sections 138.662 and 138.664 or listed on the National Register of Historic Places created
by Public Law 89-665. Before carrying out any undertaking that will affect designated or
listed properties, or funding or licensing an undertaking by other parties, the state department
or agency shall consult with the State Historic Preservation Office pursuant to the society's
the State Historic Preservation Office's established procedures to determine appropriate
treatments and to seek ways to avoid and mitigate any adverse effects on designated or
listed properties. If the state department or agency and the State Historic Preservation Office
agree in writing on a suitable course of action, the project may proceed. If the parties cannot
agree, any one of the parties may request that the governor appoint and convene a mediation
task force consisting of five members, two appointed by the governor, the chair of the State
Review Board of the State Historic Preservation Office, the commissioner of administration
or the commissioner's designee, and one member who is not an employee of the Minnesota
Historical Society appointed by the director of the Minnesota Historical Society. The two
appointees of the governor and the one of the director of the society shall be qualified by
training or experience in one or more of the following disciplines: (1) history; (2)
archaeology; and (3) architectural history. The mediation task force is not subject to the
conditions of section 15.059. This subdivision does not apply to section 138.662, subdivision
24, and section 138.664, subdivisions 8 and 111.

Sec. 41.

Minnesota Statutes 2022, section 138.912, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The healthy eating, here at home program is established
to provide incentives for low-income Minnesotans to use federal Supplemental Nutrition
Assistance Program (SNAP) benefits for healthy purchases at Minnesota-based farmers'
markets, mobile markets, and direct-farmer sales, including community-supported agriculture
shares.

Sec. 42.

Minnesota Statutes 2022, section 138.912, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Healthy eating, here at home" means a program administered by the Minnesota
Humanities Center to provide incentives for low-income Minnesotans to use SNAP benefits
for healthy purchases at Minnesota-based farmers' markets.

(d) "Minnesota-based farmers' market" means a physical market as defined in section
28A.151, subdivision 1, paragraph (b), and also includes mobile markets and direct-farmer
sales, including through a community-supported agriculture model.

(e) "Voucher" means a physical or electronic credit.

(f) "Eligible household" means an individual or family that is determined to be a recipient
of SNAP.

Sec. 43.

Minnesota Statutes 2022, section 161.1419, subdivision 2, is amended to read:

Subd. 2.

Members.

(a) The commission shall be composed of 15 members of whom:

(1) one shall be appointed by the commissioner of transportation;

(2) one shall be appointed by the commissioner of natural resources;

(3) one shall be appointed by the director of Explore Minnesota Tourism;

(4) one shall be appointed by the commissioner of agriculture;

(5) one shall be appointed by the director of the Minnesota Historical Society;

(6) two shall be members of the senate to be appointed by the Committee on Committees;

(7) two shall be members of the house of representatives to be appointed by the speaker;

(8) one shall be the secretary appointed pursuant to subdivision 3; and

(9) five shall be citizen members appointed to staggered four-year terms by the
commission after receiving recommendations from five citizen committees established by
the members appointed under clauses (1) to (8), with each citizen committee established
within and representing each of the following geographic segments along the Mississippi
River:

(i) Lake Itasca to but not including the city of Grand Rapids;

(ii) Grand Rapids to but not including the city of Brainerd;

(iii) Brainerd to but not including the city of Elk River;

(iv) Elk River to but not including the city of Hastings; and

(v) Hastings to the Iowa border.

Each citizen committee member shall be a resident of the geographic segment that the
committee and member represents.

(b) The members of the commission appointed in paragraph (a), clauses (1) to (8), shall
serve for a term expiring at the close of each regular session of the legislature and until their
successors are appointed.

(c) Successor members shall be appointed by the same appointing authorities. Members
may be reappointed. Any vacancy shall be filled by the appointing authority. The
commissioner of transportation, the commissioner of natural resources, and the director of
the Minnesota Historical Society shall be ex officio members, and shall be in addition to
the 15 members heretofore provided for. Immediately upon making the appointments to the
commission the appointing authorities shall so notify the Mississippi River Parkway
Commission, hereinafter called the National Commission, giving the names and addresses
of the members so appointed.

Sec. 44.

Minnesota Statutes 2022, section 179A.22, subdivision 4, is amended to read:

Subd. 4.

Agreements.

The commissioner of management and budget is authorized to
enter into agreements with exclusive representatives as provided in section 43A.06,
subdivisions 1, paragraph (b), and 3. The Board of Trustees of the Minnesota State Colleges
and Universities is authorized to enter into agreements with exclusive representatives as
provided in section 43A.06, subdivision 1, paragraph (c). The negotiated agreements and
any related arbitration decision decisions must be submitted to the legislature to be accepted
or rejected in accordance with this section and section 3.855 implemented by the
commissioner of management and budget or the Board of Trustees of the Minnesota State
Colleges and Universities respectively, following the approval of the tentative agreement
by exclusive representatives.

Sec. 45.

Minnesota Statutes 2022, section 383B.32, subdivision 2, is amended to read:

Subd. 2.

Unclassified service.

(a) The unclassified service comprises:

(1) officers chosen by election or appointment to fill an elective office;

(2) members of boards and commissions appointed by the county board;

(3) physicians, medical residents, interns, and students in training;

(4) nonsalaried attending medical staff;

(5) special sheriff's deputies serving without pay;

(6) seasonal, temporary, provisional, intermittent, and emergency positions;

(7) positions funded by specific governmental or nongovernmental grants of intermittent
or limited funding duration;

(8) the director or principal administrative officer of a department appointed pursuant
to sections 383B.101 to 383B.103; or appointed by the county board; or appointed for a
term pursuant to law;

(9) chief deputy or principal assistant and secretary for each elected official;

(10) examiner of titles and deputy examiners;

(11) chief criminal public safety services deputy sheriff, a chief civil adult detention and
court services deputy sheriff, a chief administrative deputy sheriff, and a chief financial
services community relations deputy sheriff, and a chief investigations deputy sheriff;

(12) public defender;

(13) county medical examiner;

(14) office staff appointed by the county administrator pursuant to sections 383B.101
to 383B.103; and

(15) county administrator.

(b) Notwithstanding any contrary provision of other law, any person coming within
paragraph (a), clause (8), who, on August 1, 2000, is in the classified service, remains in
the classified service until vacating the position. After that, an appointee to a position
described in paragraph (a), clause (8), is in the unclassified service.

Sec. 46.

Minnesota Statutes 2022, section 462A.22, subdivision 10, is amended to read:

Subd. 10.

Audits.

All of the books and records of the agency shall be subject to audit
by the legislative auditor in the manner prescribed for other agencies of state government.
The agency is authorized also to employ and to contract in its resolutions and indentures
for the employment of public accountants for the audit of books and records pertaining to
any fund or funds. The legislative auditor shall review contracts with public accountants as
provided in section 3.972.

Sec. 47.

Minnesota Statutes 2022, section 507.0945, is amended to read:

507.0945 ADMINISTRATION.

(a) An Electronic Real Estate Recording Commission administered by the Legislative
Coordinating Commission is created to evaluate and must then may adopt standards to
implement sections 507.0941 to 507.0948.

(b) The Electronic Real Estate Recording Commission shall consist of the following:

(1) three members appointed by the Minnesota Association of County Officials who are
county employees, including one from within the seven-county metropolitan area, one from
outside the seven-county metropolitan area, and at least one of whom is a county recorder
and at least one of whom is a registrar of titles;

(2) one member appointed by the Minnesota Land Title Association;

(3) one member who represents the Minnesota Bankers Association;

(4) one member who represents the Section of Real Property Law of the Minnesota State
Bar Association;

(5) one nonvoting member who is appointed by the other members of the commission
and an expert in the technological aspects of electronic real estate recording; and

(6) one member who is the state archivist appointed pursuant to section 138.17.

(c) Members of the Electronic Real Estate Recording Commission shall serve four-year
terms, except that (1) the initial appointments of county employees shall be for two years
and (2) the expert in the technological aspects of electronic real estate recording shall serve
at the pleasure of a majority of the other members of the commission. All initial terms shall
commence on July 1, 2008. Members shall serve until their successors are appointed. Any
member may be reappointed for successive terms.

(d) The state archivist shall call the first meeting of the Electronic Real Estate Recording
Commission. At the first meeting and biennially thereafter, the commission shall elect from
its membership a chair and vice-chair to serve two-year terms. Meetings may be called by
the chair or the vice-chair or the director of the Legislative Coordinating Commission.
Meetings shall be held as often as necessary, but at least once a year.

(e) A majority of the voting members of the Electronic Real Estate Recording
Commission constitutes a quorum to do business, and a majority of a quorum may act in
any matter within the jurisdiction of the commission.

(f) As soon as practicable and as needed thereafter, the Electronic Real Estate Recording
Commission shall identify the information technology and any other expertise it requires
and report its needs to the Legislative Coordinating Commission. The Electronic Real Estate
Recording Commission also shall report any other expertise it needs to fulfill its
responsibilities. The Legislative Coordinating Commission shall provide support services,
including meeting space, as needed for the Electronic Real Estate Recording Commission
to carry out its duties in an effective manner. committees of the Minnesota House of
Representatives and the Minnesota Senate that have jurisdiction.

Sec. 48. MISSISSIPPI RIVER PARKWAY COMMISSION; CITIZEN MEMBERS.

Citizens currently appointed to the Mississippi River Parkway Commission under
Minnesota Statutes, section 161.1419, subdivision 2, for areas following the geographic
segments along the Mississippi River, serve terms as follows:

(1) citizen member representing Lake Itasca, to but not including the city of Grand
Rapids, for a term ending December 31, 2025;

(2) citizen member representing Grand Rapids, to but not including the city of Brainerd,
for a term ending December 31, 2025;

(3) citizen member representing Brainerd, to but not including the city of Elk River, for
a term ending December 31, 2025;

(4) citizen member representing Elk River, to but not including the city of Hastings, for
a term ending December 31, 2027; and

(5) citizen member representing Hastings, to the Iowa border, for a term ending December
31, 2027.

Sec. 49. REPEALER.

(a) Minnesota Statutes 2022, section 136F.03, is repealed.

(b) Minnesota Statutes 2022, section 16B.24, subdivision 13, is repealed.

(d) Minnesota Statutes 2022, sections 16B.323, subdivisions 1 and 2; and 16B.326, are
repealed.

ARTICLE 2

LOCAL GOVERNMENT POLICY

Section 1.

Minnesota Statutes 2022, section 118A.09, subdivision 1, is amended to read:

Subdivision 1.

Definition; qualifying government.

(a) "Qualifying government" means:

(1) a county or statutory or home rule charter city with a population of more than 100,000;
or

(2) a county or statutory or home rule charter city which had its most recently issued
general obligation bonds rated in the highest category by a national bond rating agency; or
whose most recent long-term, senior, general obligation rating by one or more national
rating organizations in the prior 18-month period is AA or higher.

(3) a self-insurance pool listed in section 471.982, subdivision 3.

(b) A county or statutory or home rule charter city with a population of 100,000 or less
that is a qualifying government, but is subsequently rated less than the highest category by
a national bond rating agency on a general obligation bond issue does not meet the threshold
under paragraph (a), clause (2), may not invest additional funds under this section during
any time period when it does not meet the threshold, but may continue to manage funds
previously invested under subdivision 2.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Minnesota Statutes 2022, section 118A.09, subdivision 2, is amended to read:

Subd. 2.

Additional investment authority.

Qualifying governments may invest the
amount described in subdivision 3:

(1) in index mutual funds based in the United States and indexed to a broad market
United States equity index, on the condition that index mutual fund investments must be
made directly with the main sales office of the fund; or

(2) with the Minnesota State Board of Investment subject to such terms and minimum
amounts as may be adopted by the board. Index mutual fund investments must be made
directly with the main sales office of the fund.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

Minnesota Statutes 2022, section 118A.09, subdivision 3, is amended to read:

Subd. 3.

Funds.

(a) Qualifying governments may only invest under subdivision 2
according to the limitations in this subdivision. A qualifying government under subdivision
1, clause (1) or (2), may only invest its funds that are held for long-term capital plans
authorized by the city council or county board, or long-term obligations of the qualifying
government. Long-term obligations of the qualifying government include long-term capital
plan reserves, funds held to offset long-term environmental exposure, other postemployment
benefit liabilities, compensated absences, and other long-term obligations established by
applicable accounting standards.

(b) Qualifying governments under subdivision 1, clause (1) or (2), may invest up to 15
percent of the sum of:

(1) unassigned cash;

(2) cash equivalents;

(3) deposits; and

(4) investments.

This (c) The calculation in paragraph (b) must be based on the qualifying government's
most recent audited statement of net position, which must be compliant and audited pursuant
to governmental accounting and auditing standards. Once the amount invested reaches 15
percent of the sum of unassigned cash, cash equivalents, deposits, and investments, no
further funds may be invested under this section; however, a qualifying government may
continue to manage the funds previously invested under this section even if the total amount
subsequently exceeds 15 percent of the sum of unassigned cash, cash equivalents, deposits,
and investments.

(1) 15 percent of the sum of its cash, cash equivalents, deposits, and investments; or

(2) 25 percent of its net assets as reported on the pool's most recent audited statement
of net position, which must be compliant and audited pursuant to governmental accounting
and auditing standards.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

[118A.10] SELF-INSURANCE POOLS; ADDITIONAL INVESTMENT
AUTHORITY.

Subdivision 1.

Definition.

For the purposes of this section, "qualifying government"
means a self-insurance pool listed in section 471.982, subdivision 3.

Subd. 2.

Additional investment authority.

(a) A qualifying government may invest in
the securities specified in section 11A.24, with the exception of specific investments
authorized under section 11A.24, subdivision 6, paragraph (a), clauses (1) to (5).

(b) Investments authorized under this section are subject to the limitations under section
11A.24.

(c) A qualifying government may invest with the State Board of Investment subject to
the terms and minimum amounts adopted by the State Board of Investment.

Subd. 3.

Approval.

Before investing pursuant to this section, the governing body of a
qualifying government must adopt an investment policy pursuant to a resolution that includes
both of the following statements:

(1) the governing body understands that investments under this section have a risk of
loss; and

(2) the governing body understands the type of funds that are being invested and the
specific investment itself.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

[134.114] RAMSEY COUNTY LIBRARY ADVISORY BOARD.

Subdivision 1.

Appointment.

The Ramsey County Board of Commissioners shall direct,
operate, and manage the suburban Ramsey County library system. The county board shall
appoint seven members to a suburban Ramsey County Library Advisory Board. All members
must reside in the suburban county library service area. The Ramsey County Library Advisory
Board shall replace the existing Ramsey County Library Board upon the effective date of
this section.

Subd. 2.

Powers and duties.

The Ramsey County Library Advisory Board shall provide
advice and make recommendations on matters pertaining to county library services. The
Ramsey County Library Advisory Board shall provide recommendations regarding integrated
county service delivery that impacts or is enhanced by library services. The county board
may delegate additional powers and duties to the Ramsey County Library Advisory Board.

EFFECTIVE DATE.

This section is effective the day after the governing body of
Ramsey County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.

Sec. 6.

[134.115] ANOKA COUNTY LIBRARY ADVISORY BOARD.

Subdivision 1.

Appointment.

The Anoka County Board of Commissioners shall direct,
operate, and manage the suburban Anoka County library system. The county board shall
appoint seven members to a suburban Anoka County Library Advisory Board. All members
must reside in the suburban county library service area. The Anoka County Library Advisory
Board shall replace the existing Anoka County Library Board upon the effective date of
this section.

Subd. 2.

Powers and duties.

The Anoka County Library Advisory Board shall provide
advice and make recommendations on matters pertaining to county library services. The
Anoka County Library Advisory Board shall provide recommendations regarding integrated
county service delivery that impacts or is enhanced by library services. The county board
may delegate additional powers and duties to the Anoka County Library Advisory Board.

EFFECTIVE DATE.

This section is effective the day after the governing body of
Anoka County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.

Sec. 7.

Minnesota Statutes 2022, section 428A.01, is amended by adding a subdivision to
read:

Subd. 7.

Multiunit residential property.

"Multiunit residential property" means:

(1) property classified as class 4a under section 273.13, subdivision 25, paragraph (a);

(2) condominiums, as defined under section 515A.1-103, clause (7), that are classified
as class 1a under section 273.13, subdivision 22, paragraph (a); class 4b under section
273.13, subdivision 25, paragraph (b), clause (1); or class 4bb under section 273.13,
subdivision 25, paragraph (c), clause (1);

(3) condominium-type storage units classified as class 4bb under section 273.13,
subdivision 25, paragraph (c), clause (3); and

(4) duplex or triplex property classified as class 1a under section 273.13, subdivision
22, paragraph (a); or classified as class 4b under section 273.13, subdivision 25, paragraph
(b), clause (1).

Multiunit residential property does not include any unit that is an affordable housing unit.

EFFECTIVE DATE.

This section is effective for the establishment or expansion of a
special service district after July 1, 2023.

Sec. 8.

Minnesota Statutes 2022, section 428A.01, is amended by adding a subdivision to
read:

Subd. 8.

Nonresidential property.

"Nonresidential property" means property that is
classified under section 273.13 and used for commercial, industrial, or public utility purposes,
or is zoned for vacant land or designated on a land use plan for commercial or industrial
use.

EFFECTIVE DATE.

This section is effective for the establishment or expansion of a
special service district after July 1, 2023.

Sec. 9.

Minnesota Statutes 2022, section 428A.01, is amended by adding a subdivision to
read:

Subd. 9.

Nonresidential owners.

"Nonresidential owners" means the owners of 50
percent or more of the land area of property subject to service charges on nonresidential
property in a proposed or existing special service district and either the: (1) owners of 50
percent or more of the net tax capacity of property subject to a proposed or existing service
charge, based on net tax capacity; or (2) owners, individuals, and business organizations
subject to 50 percent or more of a proposed or existing service charge using a basis other
than net tax capacity.

EFFECTIVE DATE.

This section is effective for the establishment or expansion of a
special service district after July 1, 2023.

Sec. 10.

Minnesota Statutes 2022, section 428A.01, is amended by adding a subdivision
to read:

Subd. 10.

Affordable housing unit.

"Affordable housing unit" means a residential unit
affordable to households with incomes at or below 80 percent of area median income.

Sec. 11.

Minnesota Statutes 2022, section 428A.02, subdivision 1, is amended to read:

Subdivision 1.

Ordinance.

The governing body of a city may adopt an ordinance
establishing a special service district. Except as otherwise provided in section 428A.021,
only nonresidential property that is classified under section 273.13 and used for commercial,
industrial, or public utility purposes, or is vacant land zoned or designated on a land use
plan for commercial or industrial use and located in the special service district, may be
subject to the charges imposed by the city on the special service district. Other types of
property may be included within the boundaries of the special service district but are not
subject to the levies or charges imposed by the city on the special service district, unless
nonresidential owners, as defined in section 428A.01, subdivision 9, make an election under
section 428A.021. If 50 percent or more of the estimated market value of a parcel of property
is classified under section 273.13 as commercial, industrial, or vacant land zoned or
designated on a land use plan for commercial or industrial use, or public utility for the
current assessment year, then the entire taxable market value of the property is subject to a
service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10. The
ordinance shall describe with particularity the area within the city to be included in the
district and the special services to be furnished in the district. The ordinance may not be
adopted until after a public hearing has been held on the question. Notice of the hearing
shall include the time and place of hearing, a map showing the boundaries of the proposed
district, and a statement that all persons owning property in the proposed district that would
be subject to a service charge will be given opportunity to be heard at the hearing. Within
30 days after adoption of the ordinance under this subdivision, the governing body shall
send a copy of the ordinance to the commissioner of revenue.

EFFECTIVE DATE.

This section is effective for the establishment or expansion of a
special service district after July 1, 2023.

Sec. 12.

[428A.021] ELECTION TO INCLUDE MULTIUNIT RESIDENTIAL
PROPERTY.

Subdivision 1.

Multiunit residential property; new districts; election.

Prior to filing
a petition with the city clerk under section 428A.08, nonresidential owners may elect to
subject multiunit residential property to the charges imposed by the city on a special service
district. The election must be filed with the city clerk. If an election is made, for purposes
of section 428A.08, "property" includes multiunit residential property.

Subd. 2.

Multiunit residential property; in-district expansion.

Nonresidential owners
may elect to expand the district to subject multiunit residential property to the charges for
the district. The election must be filed with the city clerk. The city must provide for a hearing
and notice on the expansion as required in sections 428A.02 and 428A.03. Notice must be
served in the original district and must include the property proposed to be added to the
district. Multiunit residential property added to the district is subject to all service charges
imposed within the district after the property becomes a part of the district. On the question
of whether to expand a district to include multiunit residential property, the petition
requirement in section 428A.08 and the veto power in section 428A.09 apply to all owners,
individuals, and business organizations that would be subject to the charges for the district.

Subd. 3.

Multiunit residential property; enlargement of boundaries.

Prior to the
hearing and notice requirements in section 428A.04, a majority of the petitioners seeking
enlargement of a district under section 428A.04 may elect to expand the proposed
enlargement to subject multiunit residential property to the charges imposed by the city on
a special service district. The election must be filed with the city clerk.

Subd. 4.

Common interest communities.

A unit in a common interest community, as
defined under section 515B.1-103, clause (10), may only be included in a district under this
section if the district will provide services not provided by the unit owner's association, as
defined in section 515B.1-103, clause (4).

EFFECTIVE DATE.

This section is effective for the establishment, expansion, or
enlargement of a special service district after July 1, 2023.

Sec. 13.

[471.585] MUNICIPAL HOTEL LICENSING.

(a) A statutory or home rule charter city or a town may adopt an ordinance requiring
hotels as defined in section 327.70, subdivision 3, operating within the boundaries of the
city or town to have a valid license issued by the city or town. An annual fee for a license
under this section may not exceed $150.

(b) An ordinance adopted under this section is limited to requiring compliance with state
and local laws as a condition of licensure. No other licensing conditions or requirements
are permitted.

(c) A city or town that has adopted an ordinance under this section may refuse to issue
a license, or may revoke an existing license, if the hotel fails to comply with the conditions
of the license.

Sec. 14.

Minnesota Statutes 2022, section 473.606, subdivision 5, is amended to read:

Subd. 5.

Employees, others, affirmative action; prevailing wage.

The corporation
shall have the power to appoint engineers and other consultants, attorneys, and such other
officers, agents, and employees as it may see fit, who shall perform such duties and receive
such compensation as the corporation may determine notwithstanding the provisions of
section 43A.17, subdivision 9, and be removable at the pleasure of the corporation. The
corporation must adopt an affirmative action plan, which shall be submitted to the appropriate
agency or office of the state for review and approval. The plan must include a yearly progress
report to the agency or office. Whenever the corporation performs any work within the
limits of a city of the first class, or establishes a minimum wage for skilled or unskilled
labor in the specifications or any contract for work within one of the cities, the rate of pay
to such skilled and unskilled labor must be the prevailing rate of wage for such labor in that
city.

Sec. 15. MUNICIPAL BUILDING COMMISSION DISSOLUTION.

Subdivision 1.

Preemption.

This section supersedes any other law, home rule charter
provision, and city ordinance to the contrary.

Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given unless the context indicates otherwise.

(b) "City hall and courthouse" means the city hall building and courthouse owned by
the city of Minneapolis and Hennepin County and under the care and control of the Municipal
Building Commission pursuant to Minnesota Statutes, sections 383B.75 to 383B.754.

(c) "Dissolution date" means the day after the Municipal Building Commission, the city
of Minneapolis, and Hennepin County fully execute the transactional documents.

(d) "Municipal Building Commission" means the entity created by Minnesota Statutes,
section 383B.75.

(e) "Transactional documents" means the agreements and documents, including any real
estate ownership structure or joint powers agreement under Minnesota Statutes, section
471.59, needed to effectuate the efficient dissolution of the Municipal Building Commission
pursuant to this section.

Subd. 3.

Transfer of assets.

Notwithstanding any other law to the contrary, the
transaction documents shall provide for the transfer of all assets of the Municipal Building
Commission including but not limited to all furniture, fixtures, equipment, and other personal
property of the Municipal Building Commission to the city of Minneapolis or other legal
entity as necessary and appropriate for the use of the assets in the ongoing operation and
management of the city hall and courthouse.

Subd. 4.

Municipal Building Commission dissolution.

(a) Notwithstanding any other
law or home rule charter provision to the contrary, the Municipal Building Commission
and all its functions will be dissolved upon the dissolution date.

(b) The transactional documents must include how the city of Minneapolis and Hennepin
County will manage the outstanding liabilities of the Municipal Building Commission that
exist as of the dissolution date.

Subd. 5.

Transactional documents; agreements.

(a) The Municipal Building
Commission, city of Minneapolis, and Hennepin County may execute transactional
documents to effectuate the transfer of assets and dissolution provided for in this section.

(b) The Municipal Building Commission, city of Minneapolis, and the representatives
of the Municipal Building Commission employees must reach an agreement addressing the
impact of a dissolution on employees before fully executing the transactional documents.

(c) The Municipal Building Commission, city of Minneapolis, and Hennepin County
must fully execute the transactional documents before the filing of a certificate of local
approval of this section.

EFFECTIVE DATE.

This section is effective the day after the governing body of the
city of Minneapolis and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.

Sec. 16. ST. PAUL; DESIGN-BUILD AUTHORIZATION.

Notwithstanding Minnesota Statutes, section 471.345, or any other law to the contrary,
the city of St. Paul may solicit and award a design-build contract for the East Side Skate
Park project at Eastside Heritage Park on the basis of a best value selection process. The
city must consider at least three proposals when awarding a design-build contract under this
section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 17. REPEALER.

(a) Minnesota Statutes 2022, section 43A.17, subdivision 9, is repealed.

(b) Minnesota Statutes 2022, sections 383B.75; 383B.751; 383B.752; 383B.753; and
383B.754, are repealed.

Sec. 18. EFFECTIVE DATE.

Sections 14 and 17, paragraph (a), are effective the day following final enactment.

SF 1424

Bill Text Versions

ARTICLE 1

STATE GOVERNMENT

Section 1.

[1.1471] STATE FIRE MUSEUM.

Sec. 2.

Subd. 6.

Grants; staff; space; equipment; contracts.

Sec. 3.

Subd. 2.

Unrepresented state employee negotiations compensation.

Sec. 4.

Subd. 3.

Other salaries and compensation plans.

Sec. 5.

Subd. 5.

Information required.

Sec. 6.

Subd. 1a.

Definition.

Sec. 7.

Subd. 5.

Meetings.

Sec. 8.

Subd. 5a.

Closed meetings procedures.

Sec. 9.

Subd. 5b.

Alleged member closed meeting confidentiality violations.

Sec. 10.

Subd. 2.

Membership; terms; meetings; compensation; powers.

Sec. 11.

Subd. 3.

Audit contracts.

Sec. 12.

Subd. 2.

Inquiry and inspection power; duty to aid legislative auditor.

Sec. 13.

Subd. 2.

Access to data by commission members.

Sec. 14.

Subd. 3.

Audit data.

Sec. 15.

Subd. 6.

Definitions.

Sec. 16.

Subd. 3.

Collateral.

Sec. 17.

Subd. 4.

Procedure when data is not accurate or complete.

Sec. 18.

Subd. 3.

Advice and consent time limit.

EFFECTIVE DATE.

Sec. 19.

Subdivision 1.

Membership.

Sec. 20.

Subd. 2.

Initial appointment Appointments; convening authority; first meeting in odd-numbered year.

Sec. 21.

Subd. 3.

Terms.

Sec. 22.

Subd. 4.

Appointments following redistricting.

Sec. 23.

Subdivision 1.

Alternative energy sources.

Sec. 24.

Subd. 1a.

Onsite energy generation from renewable sources.

Sec. 25.

[16B.361] OFFICE OF COLLABORATION AND DISPUTE RESOLUTION.

Subdivision 1.

Duties of the office.

Initial appointment Appointments; convening authority; first meeting in
odd-numbered year.

[16B.372] ENVIRONMENTAL SUSTAINABILITY GOVERNMENT
OPERATIONS.