1.1 	CONFERENCE COMMITTEE REPORT ON S.F. No. 3656
1.2 	A bill for an act
1.3 	relating to state government; appropriating money for agriculture, rural 
1.4 	development, housing, state government, public safety, transportation, environment, 
1.5 	natural resources, energy, jobs, economic development, higher education, 
1.6 	prekindergarten through grade 12 education, health, and human services; modifying 
1.7 	agriculture, rural development, and housing provisions; specifying conditions of 
1.8 	legislative ratification of proposed collective bargaining agreements; requiring 
1.9 	proposed changes to state employee group insurance to be submitted separately 
1.10 	to Legislative Coordinating Commission; requiring certain information about 
1.11 	collective bargaining agreements and compensation plans be submitted to 
1.12 	Legislative Coordinating Commission; creating transition period for Legislative 
1.13 	Budget Office to take responsibility for coordinating fiscal notes and local impact 
1.14 	notes; establishing Legislative Budget Office Oversight Commission; modifying 
1.15 	the effective date of certain provisions governing preparation of fiscal notes; 
1.16 	abolishing Office of MN.IT Services; establishing division of information 
1.17 	technology within Department of Administration; permitting agencies more 
1.18 	flexibility in contracting for information technology projects; requiring agencies 
1.19 	to determine impact of proposed rule on cost of residential construction or 
1.20 	remodeling; requiring notice to applicable legislative committees; precluding 
1.21 	adoption of residential construction rules having certain cost until after next 
1.22 	legislative session; exempting hair braiders from cosmetology registration 
1.23 	requirements; prohibiting exclusive representative from charging fair share fee to 
1.24 	nonmembers; investigating possible registration or voting by ineligible voters and 
1.25 	reporting to law enforcement; increasing penalties for child pornography offenses; 
1.26 	requiring reports on court-imposed stays of sentence or adjudication for sex 
1.27 	offenses; restricting grounds that permit reunification of parents and children after 
1.28 	parent sexually abuses child; increasing maximum penalty for certain invasion of 
1.29 	privacy crimes involving minors; requiring predatory offender registration for 
1.30 	certain invasion of privacy crimes involving minors; requiring collection of 
1.31 	information on connection between pornography and sex trafficking; expanding 
1.32 	authorized prostitution penalty assessment to include additional crimes; expanding 
1.33 	criminal sexual conduct offenses for persons in current or recent positions of 
1.34 	authority over juveniles and for peace officers who engage in sexual activity with 
1.35 	those in custody; extending sunset date for court technology fund; expanding list 
1.36 	of prior offenses that support a conviction of first-degree driving while impaired; 
1.37 	prohibiting Department of Human Rights from using federal funds to expand 
1.38 	program; modifying various provisions governing transportation and public safety 
1.39 	policy and finance; modifying certain loan programs; modifying energy provisions; 
1.40 	modifying environment and natural resources provisions; adding to and deleting 
1.41 	from state parks, recreation areas, and forests; modifying drainage law; creating 
1.42 	accounts; providing for disposition of certain receipts; modifying renewable 
2.1 	development account utility annual contribution; modifying solar energy incentive 
2.2 	program; establishing pension rate base; establishing criteria for utility cost recovery 
2.3 	of energy storage system pilot projects; establishing utility stakeholder group; 
2.4 	requiring investor-owned utilities to include in integrated resource plans an 
2.5 	assessment of energy storage systems; establishing solar energy grant program for 
2.6 	school districts; extending expiration date for an assessment; requiring creation of 
2.7 	an excavation notice system contact information database; requiring cost-benefit 
2.8 	analysis of energy storage systems; modifying job training program requirements; 
2.9 	limiting use of funds in Douglas J. Johnson economic protection trust fund; 
2.10 	modifying youth skills training program; modifying accessibility requirements for 
2.11 	public buildings; modifying fees for manufactured home installers; adopting 
2.12 	recommendations of Workers' Compensation Advisory Council; adjusting basis 
2.13 	for determining salary for judges of Workers' Compensation Court of Appeals; 
2.14 	adopting recommendations of Unemployment Insurance Advisory Council; 
2.15 	modifying certain higher education policy provisions; making clarifying and 
2.16 	technical changes to loan forgiveness and research grant programs; providing for 
2.17 	school safety, general education, education excellence, teachers, special education, 
2.18 	facilities and technology, libraries, early education, and state agencies; making 
2.19 	forecast adjustments; modifying provisions governing children and families, 
2.20 	licensing, state-operated services, chemical and mental health, community supports 
2.21 	and continuing care, and health care; modifying Department of Human Services 
2.22 	administrative funds transfer; establishing Minnesota Health Policy Commission; 
2.23 	repealing preferred incontinence program in medical assistance; increasing 
2.24 	reimbursement rates for doula services; modifying telemedicine service limits; 
2.25 	modifying EPSDT screening payments; modifying capitation payment delay; 
2.26 	modifying provisions relating to wells and borings; adding security screening 
2.27 	systems to ionizing radiation-producing equipment regulation; authorizing statewide 
2.28 	tobacco cessation services; establishing an opioid reduction pilot program; 
2.29 	establishing a low-value health services study; requiring coverage of 3D 
2.30 	mammograms; requiring disclosure of facility fees; establishing a step therapy 
2.31 	override process; requiring the synchronization of prescription refills; prohibiting 
2.32 	a health plan company from preventing a pharmacist from informing a patient of 
2.33 	a price differential; converting allied health professionals to a birth month renewal 
2.34 	cycle; modifying temporary license suspensions and background checks for 
2.35 	health-related professions; requiring a prescriber to access the prescription 
2.36 	monitoring program before prescribing certain controlled substances; authorizing 
2.37 	the Board of Pharmacy to impose a fee from a prescriber or pharmacist accessing 
2.38 	prescription monitoring data through a service offered by the board's vendor; 
2.39 	requiring administrative changes at the Office of Health Facility Complaints; 
2.40 	providing access to information and data sharing; making technical changes; 
2.41 	requiring rulemaking; requiring reports; amending Minnesota Statutes 2016, 
2.42 	sections 3.3005, subdivision 8; 3.855, subdivisions 1a, 2, by adding a subdivision; 
2.43 	10A.01, subdivision 35; 13.64, by adding a subdivision; 16A.103, subdivisions 1, 
2.44 	1b, by adding a subdivision; 16A.88, subdivision 2; 16A.97; 16E.01, subdivision 
2.45 	1; 16E.015, by adding a subdivision; 16E.016; 16E.02; 16E.055; 16E.14; 16E.18, 
2.46 	subdivisions 4, 6; 16E.21, subdivision 3; 17.117, subdivisions 1, 4; 17.494; 17.4982, 
2.47 	by adding subdivisions; 18.83, subdivision 7; 18C.425, subdivision 6; 18C.80, 
2.48 	subdivision 2; 21.89, subdivision 2; 41A.16, subdivisions 1, 2; 41A.17, subdivision 
2.49 	1; 62A.30, by adding a subdivision; 62D.115, subdivision 4; 80E.13; 84.0895, 
2.50 	subdivision 2; 84.86, subdivision 1; 86B.005, subdivision 8a; 86B.532, subdivision 
2.51 	1; 88.10, by adding a subdivision; 88.75, subdivision 1; 89.551; 92.50, by adding 
2.52 	a subdivision; 94.10, subdivision 2; 97A.051, subdivision 2; 97A.433, subdivisions 
2.53 	4, 5; 97B.015, subdivision 6; 97B.1055; 97C.345, subdivision 3a; 103B.3369, 
2.54 	subdivisions 5, 9; 103B.801, subdivisions 2, 5; 103E.021, subdivision 6; 103E.071; 
2.55 	103E.351, subdivision 1; 103F.361, subdivision 2; 103F.363, subdivision 1; 
2.56 	103F.365, by adding a subdivision; 103F.371; 103F.373, subdivisions 1, 3, 4; 
2.57 	103G.2242, subdivision 14; 103H.275, subdivision 1; 103I.205, subdivision 9; 
2.58 	103I.301, subdivision 6; 114D.15, subdivisions 7, 11, 13, by adding subdivisions; 
3.1 	114D.20, subdivisions 2, 3, 5, 7, by adding subdivisions; 114D.26; 114D.35, 
3.2 	subdivisions 1, 3; 115.03, subdivision 5, by adding a subdivision; 115.035; 
3.3 	115A.51; 115A.94, subdivisions 2, 4a, 4b, 4c, 4d, 5, by adding subdivisions; 
3.4 	116.07, subdivision 2, by adding a subdivision; 116.155, subdivision 1, by adding 
3.5 	a subdivision; 116.993, subdivisions 2, 6; 116J.8747, subdivisions 2, 4; 119B.011, 
3.6 	subdivision 19, by adding a subdivision; 119B.02, subdivision 7; 119B.03, 
3.7 	subdivision 9; 120A.20, subdivision 2; 122A.63, subdivisions 1, 4, 5, 6, by adding 
3.8 	a subdivision; 123B.595, by adding a subdivision; 123B.61; 124D.09, subdivisions 
3.9 	4, 22; 124D.151, subdivisions 2, 3; 124E.20, subdivision 1; 125B.26, subdivision 
3.10 	4, by adding a subdivision; 126C.10, subdivisions 2e, 24; 126C.17, subdivisions 
3.11 	1, 2, 5, 6, 7, 7a; 126C.40, subdivision 1; 126C.44; 127A.70, subdivision 2; 135A.15, 
3.12 	subdivision 2; 136A.15, subdivision 8; 136A.16, subdivisions 1, 2, 5, 8, 9; 
3.13 	136A.162; 136A.1701, subdivision 7; 136A.1791, subdivision 8; 136A.1795, 
3.14 	subdivision 2; 136A.64, subdivision 1; 136A.822, subdivision 10; 136A.901, 
3.15 	subdivision 1; 144.121, subdivision 1a, by adding a subdivision; 144A.53, 
3.16 	subdivision 2; 147.012; 147.02, by adding a subdivision; 147A.06; 147A.07; 
3.17 	147B.02, subdivision 9, by adding a subdivision; 147C.15, subdivision 7, by adding 
3.18 	a subdivision; 147D.17, subdivision 6, by adding a subdivision; 147D.27, by adding 
3.19 	a subdivision; 147E.15, subdivision 5, by adding a subdivision; 147E.40, 
3.20 	subdivision 1; 147F.07, subdivision 5, by adding subdivisions; 147F.17, subdivision 
3.21 	1; 148.7815, subdivision 1; 151.065, by adding a subdivision; 151.214; 151.71, 
3.22 	by adding a subdivision; 152.126, subdivisions 6, 10; 155A.25, subdivision 1a; 
3.23 	155A.28, by adding a subdivision; 161.088, subdivision 2; 161.115, subdivision 
3.24 	111; 161.14, by adding subdivisions; 161.32, subdivision 2; 168.013, subdivision 
3.25 	6; 168.101, subdivision 2a; 168.127, subdivisions 4, 6; 168.27, by adding 
3.26 	subdivisions; 168.301, subdivision 3; 168.326; 168.33, subdivision 8a, by adding 
3.27 	a subdivision; 168.346, subdivision 1; 168A.05, by adding a subdivision; 168A.12, 
3.28 	subdivision 2; 168A.151, subdivision 1; 168A.17, by adding a subdivision; 
3.29 	168A.29, subdivision 1; 169.011, subdivision 60; 169.14, subdivision 5; 169.18, 
3.30 	subdivisions 10, 11, 12; 169.20, by adding a subdivision; 169.26, subdivision 1; 
3.31 	169.28; 169.29; 169.71, subdivision 4; 169.81, subdivision 5, by adding a 
3.32 	subdivision; 169.8261, subdivision 2; 169.92, subdivision 4; 169.974, subdivision 
3.33 	2; 169A.24, subdivision 1; 171.041; 171.16, subdivisions 2, 3; 171.18, subdivision 
3.34 	1; 174.12, subdivision 8; 174.37, subdivision 6; 174.66; 175A.05; 176.231, 
3.35 	subdivision 9; 179A.06, subdivision 3; 201.022, by adding subdivisions; 205A.07, 
3.36 	subdivision 2; 214.075, subdivisions 1, 4, 5, 6; 214.077; 214.10, subdivision 8; 
3.37 	216B.16, by adding a subdivision; 216B.1641; 216B.1645, by adding a subdivision; 
3.38 	216B.2422, subdivision 1, by adding a subdivision; 216D.03, by adding a 
3.39 	subdivision; 216G.01, subdivision 3; 221.031, subdivision 2d; 221.0314, 
3.40 	subdivision 9; 221.036, subdivisions 1, 3; 221.122, subdivision 1; 221.161, 
3.41 	subdivision 1, by adding a subdivision; 221.171, subdivision 1; 243.166, subdivision 
3.42 	1b; 244.052, subdivision 4; 245.4889, by adding a subdivision; 245A.175; 245C.14; 
3.43 	245C.15, by adding a subdivision; 245C.22, by adding a subdivision; 245C.24, 
3.44 	by adding a subdivision; 245D.071, subdivision 5; 245D.091, subdivisions 2, 3, 
3.45 	4; 254A.035, subdivision 2; 254B.02, subdivision 1; 254B.06, subdivision 1; 
3.46 	256.01, subdivision 14b, by adding a subdivision; 256B.04, subdivision 14; 
3.47 	256B.0625, subdivision 58, by adding subdivisions; 256B.0659, subdivisions 3a, 
3.48 	11, 21, 24, 28, by adding a subdivision; 256B.0915, subdivision 6; 256B.092, 
3.49 	subdivisions 1b, 1g; 256B.093, subdivision 1; 256B.4914, subdivision 4; 256I.04, 
3.50 	by adding subdivisions; 256K.45, subdivision 2; 256M.41, subdivision 3, by adding 
3.51 	a subdivision; 256N.24, by adding a subdivision; 260.012; 260.835, subdivision 
3.52 	2; 268.035, subdivisions 4, 12; 268.044, subdivisions 2, 3; 268.047, subdivision 
3.53 	3; 268.051, subdivisions 2a, 3; 268.053, subdivision 1; 268.057, subdivision 5; 
3.54 	268.059; 268.066; 268.067; 268.069, subdivision 1; 268.085, subdivisions 3, 3a; 
3.55 	268.095, subdivision 6a; 268.105, subdivision 6; 268.145, subdivision 1; 299A.01, 
3.56 	by adding a subdivision; 299A.705; 299A.707, by adding a subdivision; 299A.785, 
3.57 	subdivision 1; 326B.106, subdivision 9; 326B.815, subdivision 1; 327.31, by 
3.58 	adding a subdivision; 327B.041; 327C.095, subdivisions 4, 6, 12, 13, by adding 
4.1 	a subdivision; 349A.05; 357.021, subdivision 2b; 360.013, by adding a subdivision; 
4.2 	360.017, subdivision 1; 360.021, subdivision 1; 360.062; 360.063, subdivisions 
4.3 	1, 3; 360.064, subdivision 1; 360.065, subdivision 1; 360.066, subdivision 1; 
4.4 	360.067, by adding a subdivision; 360.071, subdivision 2; 360.305, subdivision 
4.5 	6; 394.22, by adding a subdivision; 394.23; 394.231; 394.25, subdivision 3; 
4.6 	462.352, by adding a subdivision; 462.355, subdivision 1; 462.357, subdivision 
4.7 	9, by adding a subdivision; 462A.05, subdivision 14b; 462A.33, subdivisions 1, 
4.8 	2; 462A.37, subdivisions 1, 2; 473.13, by adding subdivisions; 473.149, subdivision 
4.9 	3; 473.3994, by adding a subdivision; 473.606, subdivision 5; 473.8441, subdivision 
4.10 	4; 474A.02, by adding subdivisions; 474A.03, subdivision 1; 474A.04, subdivision 
4.11 	1a; 474A.047, subdivision 2; 474A.061, subdivisions 1, 2a, 2b, 2c, 4, by adding 
4.12 	subdivisions; 474A.062; 474A.091, subdivisions 1, 2, 3, 5, 6, by adding a 
4.13 	subdivision; 474A.131, subdivisions 1, 1b, 2; 474A.14; 475.58, subdivision 4; 
4.14 	574.26, subdivision 1a; 609.3241; 609.341, subdivision 10; 609.342, subdivision 
4.15 	1; 609.343, subdivision 1; 609.344, subdivision 1; 609.345, subdivision 1; 609.746, 
4.16 	subdivision 1; 617.246, subdivisions 2, 3, 4, 7; 617.247, subdivisions 3, 4, 9; 
4.17 	626.556, by adding a subdivision; Minnesota Statutes 2017 Supplement, sections 
4.18 	3.8853, subdivisions 1, 2, by adding subdivisions; 3.972, subdivision 4; 3.98, 
4.19 	subdivisions 1, 4; 15A.083, subdivision 7; 16A.152, subdivision 2; 16E.0466, 
4.20 	subdivision 1; 18C.70, subdivision 5; 18C.71, subdivision 4; 84.01, subdivision 
4.21 	6; 84.925, subdivision 1; 84.9256, subdivision 1; 84D.03, subdivisions 3, 4; 
4.22 	84D.108, subdivisions 2b, 2c; 85.0146, subdivision 1; 89.17; 97A.075, subdivision 
4.23 	1; 103G.222, subdivision 3; 103G.2242, subdivision 1; 103I.005, subdivisions 2, 
4.24 	8a, 17a; 103I.205, subdivisions 1, 4; 103I.208, subdivision 1; 103I.235, subdivision 
4.25 	3; 103I.601, subdivision 4; 116.0714; 116C.779, subdivision 1; 116C.7792; 
4.26 	119B.011, subdivision 20; 119B.025, subdivision 1; 119B.06, subdivision 1; 
4.27 	119B.09, subdivision 1; 119B.095, subdivision 2; 119B.13, subdivision 1; 
4.28 	122A.187, by adding a subdivision; 123B.03, subdivision 1; 124D.151, subdivisions 
4.29 	5, 6; 124D.68, subdivision 2; 124E.03, subdivision 2; 136A.1275, subdivisions 2, 
4.30 	3; 136A.1789, subdivision 2; 136A.646; 136A.672, by adding a subdivision; 
4.31 	136A.822, subdivision 6; 136A.8295, by adding a subdivision; 147.01, subdivision 
4.32 	7; 147A.28; 147B.08; 147C.40; 152.105, subdivision 2; 161.088, subdivision 5; 
4.33 	168.013, subdivision 1a; 169.18, subdivision 7; 169.829, subdivision 4; 171.06, 
4.34 	subdivision 2; 175.46, subdivision 13; 216B.1691, subdivision 2f; 216B.241, 
4.35 	subdivision 1d; 216B.62, subdivision 3b; 245.4889, subdivision 1; 245A.03, 
4.36 	subdivision 7; 245A.06, subdivision 8; 245A.11, subdivision 2a; 245C.16, 
4.37 	subdivision 1; 245D.03, subdivision 1; 256B.0625, subdivisions 3b, 17; 256B.0911, 
4.38 	subdivisions 1a, 3a, 3f, 5; 256B.49, subdivision 13; 256B.4914, subdivisions 2, 
4.39 	3, 5, 10, 10a; 256I.03, subdivision 8; 256I.04, subdivision 2b; 256I.05, subdivision 
4.40 	3; 268.035, subdivisions 15, 20; 268.046, subdivision 1; 268.07, subdivision 1; 
4.41 	268.085, subdivision 13a; 268.095, subdivision 6; 268.18, subdivisions 2b, 5; 
4.42 	298.2215; 298.292, subdivision 2; 364.09; 462A.2035, subdivisions 1, 1b; 473.4051, 
4.43 	subdivision 2; 473.4485, subdivision 2; 475.59, subdivision 1; 477A.03, subdivision 
4.44 	2b; Laws 2010, chapter 361, article 4, section 78; Laws 2014, chapter 312, article 
4.45 	27, section 76; Laws 2015, First Special Session chapter 4, article 4, section 146, 
4.46 	as amended; Laws 2016, chapter 189, article 3, sections 3, subdivision 5; 48; Laws 
4.47 	2017, chapter 88, article 1, section 2, subdivisions 2, 4; Laws 2017, chapter 89, 
4.48 	article 1, section 2, subdivisions 18, 20, 29, 31, 32, 33, 34, 40; Laws 2017, chapter 
4.49 	94, article 1, sections 2, subdivisions 2, 3; 4, subdivision 5; 7, subdivision 7; 9; 
4.50 	Laws 2017, First Special Session chapter 1, article 4, section 31; Laws 2017, First 
4.51 	Special Session chapter 3, article 1, section 4, subdivisions 1, 2, 4; Laws 2017, 
4.52 	First Special Session chapter 4, article 1, section 10, subdivision 1; article 2, 
4.53 	sections 1; 3; 9; 58; Laws 2017, First Special Session chapter 5, article 1, section 
4.54 	19, subdivisions 2, 3, 4, 5, 6, 7, 9; article 2, sections 56; 57, subdivisions 2, 3, 4, 
4.55 	5, 6, 12, 21, 22, 23, 26, 34; article 4, section 12, subdivisions 2, as amended, 3, 4, 
4.56 	5; article 5, section 14, subdivisions 2, 3, 4; article 6, section 3, subdivisions 2, 3, 
4.57 	4; article 8, sections 9, subdivision 6; 10, subdivisions 5a, 6, 12; article 9, section 
4.58 	2, subdivision 2; article 10, section 6, subdivision 2; article 11, sections 9, 
5.1 	subdivision 2; 12; Laws 2017, First Special Session chapter 6, article 1, section 
5.2 	52; article 3, section 49; article 4, section 61; article 10, section 144; proposing 
5.3 	coding for new law in Minnesota Statutes, chapters 3; 11A; 14; 16A; 17; 62J; 62Q; 
5.4 	97A; 103B; 103F; 115; 115B; 116C; 120B; 123B; 124D; 136A; 144; 147A; 147B; 
5.5 	147C; 147D; 147E; 147F; 161; 168A; 176; 216C; 246; 256B; 260C; 299A; 327; 
5.6 	349A; 360; 383A; 609; repealing Minnesota Statutes 2016, sections 16A.98; 
5.7 	16E.145; 122A.63, subdivisions 7, 8; 126C.16, subdivisions 1, 3; 126C.17, 
5.8 	subdivision 9a; 136A.15, subdivisions 2, 7; 136A.1701, subdivision 12; 155A.28, 
5.9 	subdivisions 1, 3, 4; 168.013, subdivision 21; 214.075, subdivision 8; 221.161, 
5.10 	subdivisions 2, 3, 4; 256B.0625, subdivision 18b; 256B.0705; 268.053, subdivisions 
5.11 	4, 5; 349A.16; 360.063, subdivision 4; 360.065, subdivision 2; 360.066, 
5.12 	subdivisions 1a, 1b; Minnesota Statutes 2017 Supplement, section 256B.0625, 
5.13 	subdivision 31c; Laws 2008, chapter 368, article 1, section 21, subdivision 2; Laws 
5.14 	2016, chapter 189, article 25, section 62, subdivision 16; Laws 2017, First Special 
5.15 	Session chapter 4, article 2, section 59; Minnesota Rules, part 5600.0605, subparts 
5.16 	5, 8.
5.17 	May 19, 2018
5.18 	The Honorable Michelle L. Fischbach
5.19 	President of the Senate
5.20 	The Honorable Kurt L. Daudt
5.21 	Speaker of the House of Representatives
5.22 	We, the undersigned conferees for S.F. No. 3656 report that we have agreed upon the 
5.23 	items in dispute and recommend as follows:
5.24 	That the House recede from its amendments and that S.F. No. 3656 be further amended 
5.25 	as follows:
5.26 	Delete everything after the enacting clause and insert:

5.27 	ARTICLE 1
5.28 	STATE GOVERNMENT APPROPRIATIONS

5.29	Section 1. APPROPRIATIONS.
 	
5.30 	The sums shown in the columns marked "Appropriations" are added to or, if shown in 
5.31 	parentheses, subtracted from the appropriations in Laws 2017, First Special Session chapter 
5.32 	4, article 1, to the agencies and for the purposes specified in this article. The appropriations 
5.33 	are from the general fund, or another named fund, and are available for the fiscal years 
5.34 	indicated for each purpose. The figures "2018" and "2019" used in this article mean that 
5.35 	the appropriations listed under them are available for the fiscal year ending June 30, 2018, 
5.36 	or June 30, 2019, respectively.

5.37				APPROPRIATIONS
	
5.38				Available for the Year
	
5.39				Ending June 30
	
5.40					2018
		2019

5.41	Sec. 2. LEGISLATURE
 	$
	.......
	$
	90,000
	
6.1 	$90,000 is from the general fund to the 
6.2 	Legislative Coordinating Commission for rent 
6.3 	payments for the Office of the Revisor of 
6.4 	Statutes. This is a onetime appropriation.

6.5	Sec. 3. STATE AUDITOR
 	$
	.......
	$
	(269,094)
	
6.6 	This is a general reduction to office operations. 
6.7 	The auditor may not reduce operations or 
6.8 	services related to public pensions. This is a 
6.9 	onetime reduction.

6.10	Sec. 4. SECRETARY OF STATE
 	$
	.......
	$
	1,534,000
	
6.11 	(a) $1,534,000 is appropriated in fiscal year 
6.12 	2019 from the account established in 
6.13 	Minnesota Statutes, section 5.30, pursuant to 
6.14 	the Help America Vote Act, to the secretary 
6.15 	of state for the purposes of modernizing, 
6.16 	securing, and updating the statewide voter 
6.17 	registration system and for cyber security 
6.18 	upgrades as authorized by federal law. This is 
6.19 	a onetime appropriation and is available until 
6.20 	June 30, 2022.
6.21 	(b) $110,000 expended by the secretary of 
6.22 	state in fiscal year 2018 for increasing secure 
6.23 	access to the statewide voter registration 
6.24 	system was money appropriated for carrying 
6.25 	out the purposes authorized under the 
6.26 	Omnibus Appropriations Act of 2018, Public 
6.27 	Law 115-1410, and the Help America Vote 
6.28 	Act of 2002, Public Law 107-252, section 101, 
6.29 	and is deemed to be credited towards any 
6.30 	match required by those laws.

6.31
6.32	Sec. 5. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	129,094
	$
	140,000
	
7.1 	(a) $140,000 in fiscal year 2019 is from the 
7.2 	general fund for grants to reimburse the 
7.3 	documented litigation costs incurred by 
7.4 	counties in defending the constitutionality of 
7.5 	Minnesota Statutes, section 6.481, as enacted 
7.6 	in Laws 2015, chapter 77, article 2, section 3, 
7.7 	in Otto v. Wright County, et. al. (A16-1634). 
7.8 	The grants must be apportioned as follows:
7.9 	(1) up to $70,000 is for a grant to Wright 
7.10 	County; and
7.11 	(2) up to $70,000 is for a grant to Becker 
7.12 	County.
7.13 	This is a onetime appropriation. The 
7.14 	commissioner must provide each grant upon 
7.15 	certification of the final litigation costs 
7.16 	incurred by the affected county, provided that 
7.17 	the total grant must not exceed the amounts 
7.18 	specified in this paragraph.
7.19 	(b) Notwithstanding any provision of law to 
7.20 	the contrary, $129,094 in fiscal year 2018 is 
7.21 	from the general fund for a payment to the city 
7.22 	of Austin, for both its 2016 fire state aid 
7.23 	payment under Minnesota Statutes, section 
7.24 	69.021, subdivision 7, and its 2016 
7.25 	supplemental state aid payment under 
7.26 	Minnesota Statutes, section 423A.022, upon 
7.27 	certification by the city that the sum of the fire 
7.28 	state aid and the supplemental state aid that 
7.29 	the city transmitted to the Austin Parttime 
7.30 	Firefighters Relief Association in calendar 
7.31 	year 2015 to fund the volunteers firefighters' 
7.32 	service pensions met or exceeded the amount 
7.33 	required under the bylaws of that association. 
7.34 	Of these amounts:
8.1 	(1) $103,892 is for the fire state aid; and
8.2 	(2) $25,202 is for the supplemental state aid.
8.3 	This is a onetime appropriation. The payment 
8.4 	required by this paragraph must be provided 
8.5 	no later than June 30, 2018.

8.6 	Sec. 6. EFFECTIVE DATE.
 8.7 	This article is effective the day following final enactment.

8.8 	ARTICLE 2
8.9 	STATE GOVERNMENT OPERATIONS

8.10 	Section 1. Minnesota Statutes 2016, section 3.855, is amended by adding a subdivision 
8.11 	to read:
8.12 		Subd. 5.Information required. The commissioner of management and budget must 
8.13 	submit to the Legislative Coordinating Commission the following information with the 
8.14 	submission of a collective bargaining agreement or compensation plan under subdivisions 
8.15 	2 and 3:
8.16 	(1) for each agency and for each proposed agreement, a comparison of biennial 
8.17 	compensation costs under the current agreement or plan to the projected biennial 
8.18 	compensation costs under the proposed agreement or plan, paid with funds appropriated 
8.19 	from the general fund;
8.20 	(2) for each agency and for each proposed agreement and plan, a comparison of biennial 
8.21 	compensation costs under the current agreement or plan to the projected compensation costs 
8.22 	under the proposed agreement or plan, paid with funds appropriated from each fund other 
8.23 	than the general fund;
8.24 	(3) for each agency and for each proposed agreement and plan, an identification of the 
8.25 	amount of the additional biennial compensation costs that are attributable to salary and 
8.26 	wages and to the cost of nonsalary and nonwage benefits; and
8.27 	(4) for each agency, for each of clauses (1) to (3), the impact of the aggregate of all 
8.28 	agreements and plans being submitted to the commission.

9.1 	Sec. 2. [5.42] DISPLAY OF BUSINESS ADDRESS ON WEB SITE.
9.2 	(a) A business entity may request in writing that all addresses submitted by the business 
9.3 	entity to the secretary of state be omitted from display on the secretary of state's Web site. 
9.4 	A business entity may only request that all addresses be omitted from display if the entity 
9.5 	certifies that:
9.6 	(1) there is only one shareholder, member, manager, or owner of the business entity;
9.7 	(2) the shareholder, manager, member, or owner is a natural person; and
9.8 	(3) at least one of the addresses provided is the residential address of the sole shareholder, 
9.9 	manager, member, or owner.
9.10 	The secretary of state shall post a notice that this option is available and a link to the form 
9.11 	needed to make a request on the secretary's Web site. The secretary of state shall also attach 
9.12 	a copy of the request form to all business filing forms provided in a paper format that require 
9.13 	a business entity to submit an address.
9.14 	(b) This section does not change the classification of data under chapter 13 and addresses 
9.15 	shall be made available to the public in response to requests made by telephone, mail, 
9.16 	electronic mail, and facsimile transmission.

9.17 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to business 
9.18 	entity filings filed with the secretary of state on or after that date.

9.19 	Sec. 3. Minnesota Statutes 2017 Supplement, section 6.481, subdivision 3, is amended to 
9.20 	read:
9.21 		Subd. 3.CPA firm audit. (a) A county audit performed by a CPA firm must meet the 
9.22 	standards and be in a form meeting recognized industry auditing standards. The state auditor 
9.23 	may require additional information from the CPA firm if the state auditor determines that 
9.24 	is in the public interest, but the state auditor must accept the audit unless the state auditor 
9.25 	determines the audit or its form does not meet recognized industry auditing standards. The 
9.26 	state auditor may make additional examinations as the auditor determines to be in the public 
9.27 	interest.
9.28 	(b) When the state auditor requires additional information from the CPA firm or makes 
9.29 	additional examinations that the state auditor determines to be in the public interest, the 
9.30 	state auditor must afford counties and CPA firms an opportunity to respond to potential 
9.31 	findings, conclusions, or questions, as follows:
10.1 	(1) at least 30 days before beginning a review for work performed by a certified public 
10.2 	accountant firm licensed in chapter 326A, the state auditor must notify the county and CPA 
10.3 	firm that the state auditor will be conducting a review and must identify the type and scope 
10.4 	of review the state auditor will perform;
10.5 	(2) throughout the state auditor's review, the auditor shall allow the county and the CPA 
10.6 	firm at least 30 days to respond to any request by the auditor for documents or other 
10.7 	information;
10.8 	(3) the state auditor must provide the CPA firm with a draft report of the state auditor's 
10.9 	findings at least 30 days before issuing a final report;
10.10 	(4) at least 20 days before issuing a final report, the state auditor must hold a formal exit 
10.11 	conference with the CPA firm to discuss the findings in the state auditor's draft report;
10.12 	(5) the state auditor shall make changes to the draft report that are warranted as a result 
10.13 	of information provided by the CPA firm during the state auditor's review; and
10.14 	(6) the state auditor's final report must include any written responses provided by the 
10.15 	CPA firm.

10.16 	Sec. 4. Minnesota Statutes 2016, section 13.072, subdivision 1, is amended to read:
10.17 		Subdivision 1.Opinion; when required. (a) Upon request of a government entity or a 
10.18 	member of the legislature, the commissioner may must give a written opinion on any question 
10.19 	relating to public the requirements of this chapter, including questions about access to 
10.20 	government data by a member of the public or another government entity, the rights of 
10.21 	subjects of data, or the classification of data under this chapter or other Minnesota statutes 
10.22 	governing government data practices. Upon request of any person who disagrees with a 
10.23 	determination regarding data practices made by a government entity, the commissioner may
10.24 	must give a written opinion regarding the person's rights as a subject of government data 
10.25 	or right to have access to government data.
10.26 	(b) Upon request of a body subject to chapter 13D or a member of the legislature, the 
10.27 	commissioner may must give a written opinion on any question relating to the body's duties 
10.28 	under requirements of chapter 13D. Upon request of a person who disagrees with the manner 
10.29 	in which members of a governing body perform their duties under chapter 13D, the 
10.30 	commissioner may must give a written opinion on compliance with chapter 13D. A governing 
10.31 	body or person requesting an opinion under this paragraph must pay the commissioner a 
10.32 	fee of $200. Money received by the commissioner under this paragraph is appropriated to 
10.33 	the commissioner for the purposes of this section.
11.1 	(c) If the commissioner determines that no opinion will be issued, the commissioner 
11.2 	shall give the government entity or body subject to chapter 13D or person requesting the 
11.3 	opinion notice of the decision not to issue the opinion within five business days of receipt 
11.4 	of the request. If this notice is not given, the commissioner shall issue an opinion within 20 
11.5 	days of receipt of the request.
11.6 	(d)(c) The commissioner shall issue an opinion under this subdivision within 20 days 
11.7 	of receipt of the request. For good cause and upon written notice to the person requesting 
11.8 	the opinion, the commissioner may extend this deadline for one additional 30-day period. 
11.9 	The notice must state the reason for extending the deadline. The government entity or the 
11.10 	members of a body subject to this chapter or chapter 13D must be provided a reasonable 
11.11 	opportunity to explain the reasons for its decision regarding the data or how they perform 
11.12 	their duties under chapter 13D. The commissioner or the government entity or body subject 
11.13 	to chapter 13D may choose to give notice to the subject of the data concerning the dispute 
11.14 	regarding the data or compliance with this chapter or chapter 13D.
11.15 	(e) (d) This section does not apply to a determination made by the commissioner of 
11.16 	health under section 13.3805, subdivision 1, paragraph (b), or 144.6581.
11.17 	(f) (e) A written, numbered, and published opinion issued by the attorney general shall 
11.18 	take precedence over an opinion issued by the commissioner under this section.

11.19 	EFFECTIVE DATE. This section is effective the day following final enactment and 
11.20 	applies to requests for opinions submitted on or after that date.

11.21 	Sec. 5. Minnesota Statutes 2016, section 16A.013, is amended by adding a subdivision to 
11.22 	read:
11.23 		Subd. 1a.Opportunity to make gifts via Web site. The commissioner of management 
11.24 	and budget must maintain a secure Web site which permits any person to make a gift of 
11.25 	money electronically for any purpose authorized by subdivision 1. Gifts made using the 
11.26 	Web site are subject to all other requirements of this section, sections 16A.014 to 16A.016, 
11.27 	and any other applicable law governing the receipt of gifts by the state and the purposes for 
11.28 	which a gift may be used. The Web site must include historical data on the total amount of 
11.29 	gifts received using the site, itemized by month.

12.1 	Sec. 6. Minnesota Statutes 2017 Supplement, section 16A.152, subdivision 2, is amended 
12.2 	to read:
12.3 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general fund 
12.4 	revenues and expenditures, the commissioner of management and budget determines that 
12.5 	there will be a positive unrestricted budgetary general fund balance at the close of the 
12.6 	biennium, the commissioner of management and budget must allocate money to the following 
12.7 	accounts and purposes in priority order:
12.8 	(1) the cash flow account established in subdivision 1 until that account reaches 
12.9 	$350,000,000;
12.10 	(2) the budget reserve account established in subdivision 1a until that account reaches 
12.11 	$1,596,522,000;
12.12 	(3) the amount necessary to increase the aid payment schedule for school district aids 
12.13 	and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest 
12.14 	tenth of a percent without exceeding the amount available and with any remaining funds 
12.15 	deposited in the budget reserve; and
12.16 	(4) the amount necessary to restore all or a portion of the net aid reductions under section 
12.17 	127A.441 and to reduce the property tax revenue recognition shift under section 123B.75, 
12.18 	subdivision 5, by the same amount; and.
12.19 	(5) the clean water fund established in section 114D.50 until $22,000,000 has been 
12.20 	transferred into the fund.
12.21 	(b) The amounts necessary to meet the requirements of this section are appropriated 
12.22 	from the general fund within two weeks after the forecast is released or, in the case of 
12.23 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
12.24 	schedules otherwise established in statute.
12.25 	(c) The commissioner of management and budget shall certify the total dollar amount 
12.26 	of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. 
12.27 	The commissioner of education shall increase the aid payment percentage and reduce the 
12.28 	property tax shift percentage by these amounts and apply those reductions to the current 
12.29 	fiscal year and thereafter.
12.30 	(d) Paragraph (a), clause (5), expires after the entire amount of the transfer has been 
12.31 	made.

13.1 	Sec. 7. [16E.031] STATE AND LOCAL GOVERNMENT USER ACCEPTANCE 
13.2 	TESTING.
13.3 	(a) Any state agency implementing a new information technology business software 
13.4 	application or new business software application functionality that significantly impacts 
13.5 	the operations of local units of government must provide opportunities for local government 
13.6 	representative involvement in user acceptance testing, unless the testing is deemed not 
13.7 	feasible or necessary by the relevant agency commissioner, in consultation with 
13.8 	representatives of local units of government and the chief information officer.
13.9 	(b) The requirements in paragraph (a) only apply to new software applications and new 
13.10 	software application functionality where local units of government will be primary users, 
13.11 	as determined by the relevant agency head in consultation with representatives of local units 
13.12 	of government and the chief information officer. The requirements in paragraph (a) do not 
13.13 	apply to routine software upgrades or application changes that are primarily intended to 
13.14 	comply with federal law, rules, or regulations.
13.15 	(c) School districts are not local units of government for the purposes of this section.

13.16 	EFFECTIVE DATE. This section is effective July 1, 2018, and applies to business 
13.17 	software application projects initiated on or after that date.

13.18 	Sec. 8. Minnesota Statutes 2016, section 155A.25, subdivision 1a, is amended to read:
13.19 		Subd. 1a.Schedule. (a) The schedule for fees and penalties is as provided in this 
13.20 	subdivision.
13.21 	(b) Three-year license fees are as follows:
13.22 	(1) $195 initial practitioner, manager, or instructor license, divided as follows:
13.23 	(i) $155 for each initial license; and
13.24 	(ii) $40 for each initial license application fee;
13.25 	(2) $115 renewal of practitioner license, divided as follows:
13.26 	(i) $100 for each renewal license; and
13.27 	(ii) $15 for each renewal application fee;
13.28 	(3) $145 renewal of manager or instructor license, divided as follows:
13.29 	(i) $130 for each renewal license; and
13.30 	(ii) $15 for each renewal application fee;
14.1 	(4) $350 initial salon license, divided as follows:
14.2 	(i) $250 for each initial license; and
14.3 	(ii) $100 for each initial license application fee;
14.4 	(5) $225 renewal of salon license, divided as follows:
14.5 	(i) $175 for each renewal; and
14.6 	(ii) $50 for each renewal application fee;
14.7 	(6) $4,000 initial school license, divided as follows:
14.8 	(i) $3,000 for each initial license; and
14.9 	(ii) $1,000 for each initial license application fee; and
14.10 	(7) $2,500 renewal of school license, divided as follows:
14.11 	(i) $2,000 for each renewal; and
14.12 	(ii) $500 for each renewal application fee.
14.13 	(c) Penalties may be assessed in amounts up to the following:
14.14 	(1) reinspection fee, $150;
14.15 	(2) manager and owner with expired practitioner found on inspection, $150 each;
14.16 	(3) expired practitioner or instructor found on inspection, $200;
14.17 	(4) expired salon found on inspection, $500;
14.18 	(5) expired school found on inspection, $1,000;
14.19 	(6) failure to display current license, $100;
14.20 	(7) failure to dispose of single-use equipment, implements, or materials as provided 
14.21 	under section 155A.355, subdivision 1, $500;
14.22 	(8) use of prohibited razor-type callus shavers, rasps, or graters under section 155A.355, 
14.23 	subdivision 2, $500;
14.24 	(9) performing nail or cosmetology services in esthetician salon, or performing esthetician 
14.25 	or cosmetology services in a nail salon, $500;
14.26 	(10) owner and manager allowing an operator to work as an independent contractor, 
14.27 	$200;
14.28 	(11) operator working as an independent contractor, $100;
15.1 	(12) refusal or failure to cooperate with an inspection, $500;
15.2 	(13) practitioner late renewal fee, $45; and
15.3 	(14) salon or school late renewal fee, $50.
15.4 	(d) Administrative fees are as follows:
15.5 	(1) homebound service permit, $50 three-year fee;
15.6 	(2) name change, $20;
15.7 	(3) certification of licensure, $30 each;
15.8 	(4) duplicate license, $20;
15.9 	(5) special event permit, $75 per year;
15.10 	(6) registration of hair braiders, $20 per year;
15.11 	(7) (6) $100 for each temporary military license for a cosmetologist, nail technician, 
15.12 	esthetician, or advanced practice esthetician one-year fee;
15.13 	(8) (7) expedited initial individual license, $150;
15.14 	(9) (8) expedited initial salon license, $300;
15.15 	(10) (9) instructor continuing education provider approval, $150 each year; and
15.16 	(11) (10) practitioner continuing education provider approval, $150 each year.

15.17 	Sec. 9. Minnesota Statutes 2016, section 155A.28, is amended by adding a subdivision to 
15.18 	read:
15.19 		Subd. 5.Hair braiders exempt.  The practice of hair braiding is exempt from the 
15.20 	requirements of this chapter.

15.21 	Sec. 10. Minnesota Statutes 2016, section 201.022, is amended by adding a subdivision 
15.22 	to read:
15.23 		Subd. 4.Voter records updated due to voting report. No later than eight weeks after 
15.24 	the election, the county auditor must use the statewide voter registration system to produce 
15.25 	a report that identifies each voter whose record indicates that it was updated due to voting. 
15.26 	The county auditor must investigate each record that is challenged for a reason related to 
15.27 	eligibility to determine if the voter appears to have been ineligible to vote. If the county 
15.28 	auditor determines that a voter appears to have been ineligible to vote and either registered 
16.1 	to vote or voted in the previous election, the county auditor must notify the law enforcement 
16.2 	agency or the county attorney as provided in section 201.275.

16.3 	Sec. 11. Minnesota Statutes 2016, section 201.022, is amended by adding a subdivision 
16.4 	to read:
16.5 		Subd. 5.Inactive voter report. By November 6, 2018, the secretary of state must develop 
16.6 	a report within the statewide voter registration system that provides information on inactive 
16.7 	voters who registered on election day and were possibly ineligible. For elections on or after 
16.8 	November 6, 2018, no later than eight weeks after the election, the county auditor must use 
16.9 	the statewide voter registration system to produce the report. The county auditor must 
16.10 	investigate each record to determine if the voter appears to have been ineligible to vote. If 
16.11 	the county auditor determines that a voter appears to have been ineligible to vote and 
16.12 	registered to vote in the previous election, the county auditor must notify the law enforcement 
16.13 	agency or the county attorney as provided in section 201.275.

16.14 	Sec. 12. Minnesota Statutes 2016, section 240.01, is amended by adding a subdivision to 
16.15 	read:
16.16 		Subd. 18a.Racing or gaming-related vendor. "Racing or gaming-related vendor" 
16.17 	means any person or entity that manufactures, sells, provides, distributes, repairs, or maintains 
16.18 	equipment or supplies used at a Class A facility or provides services to a Class A facility 
16.19 	or Class B license holder that are directly related to the running of a horse race, simulcasting, 
16.20 	pari-mutuel betting, or card playing.

16.21 	Sec. 13. Minnesota Statutes 2016, section 240.02, subdivision 6, is amended to read:
16.22 		Subd. 6.Annual report. The commission shall on February 15 of each odd-numbered 
16.23 	year submit a report to the governor and legislature on its activities, organizational structure, 
16.24 	receipts and disbursements, and recommendations for changes in the laws relating to racing 
16.25 	and pari-mutuel betting.

16.26 	Sec. 14. Minnesota Statutes 2016, section 240.08, subdivision 5, is amended to read:
16.27 		Subd. 5.Revocation and suspension. (a) The commission may revoke a class C license 
16.28 	for a violation of law or rule which in the commission's opinion adversely affects the integrity 
16.29 	of horse racing in Minnesota, the public health, welfare, or safety, or for an intentional false 
16.30 	statement made in a license application.
17.1 	The commission may suspend a class C license for up to one year for a violation of law, 
17.2 	order or rule.
17.3 	The commission may delegate to its designated agents the authority to impose suspensions 
17.4 	of class C licenses, and the revocation or suspension of a class C license may be appealed 
17.5 	to the commission according to its rules.
17.6 	(b) A license revocation or suspension If the commission revokes or suspends a license
17.7 	for more than 90 180 days is, in lieu of appealing to the commission under paragraph (a), 
17.8 	the license holder has the right to request a contested case hearing under sections 14.57 to 
17.9 	14.69 of the Administrative Procedure Act and is in addition to criminal penalties imposed 
17.10 	for a violation of law or rule. chapter 14. The request must be made in writing to the 
17.11 	commission by certified mail or personal service. A request sent by certified mail must be 
17.12 	postmarked within ten days after the license holder receives the revocation or suspension 
17.13 	order from the commission. A request sent by personal service must be received by the 
17.14 	commission within ten days after the license holder receives the revocation or suspension 
17.15 	order from the commission. The commission may summarily suspend a license for more 
17.16 	than up to 90 days prior to a contested case hearing where it is necessary to ensure the 
17.17 	integrity of racing or to protect the public health, welfare, or safety. The license holder may 
17.18 	appeal a summary suspension by making a written request to the commission within five 
17.19 	calendar days after the license holder receives notice of the summary suspension. A contested 
17.20 	case hearing must be held within 30 ten days of the commission's receipt of the request for 
17.21 	appeal of a summary suspension and the administrative law judge's report must be issued 
17.22 	within 30 days from the close of the hearing record. In all cases involving summary 
17.23 	suspension the commission must issue its final decision within 30 days from receipt of the 
17.24 	report of the administrative law judge and subsequent exceptions and argument under section 
17.25 	14.61. to determine whether the license should remain suspended pending a final disciplinary 
17.26 	action.

17.27 	Sec. 15. Minnesota Statutes 2016, section 240.131, subdivision 7, is amended to read:
17.28 		Subd. 7.Payments to state. (a) A regulatory fee is imposed at the rate of one percent 
17.29 	of all amounts wagered by Minnesota residents with an authorized advance deposit wagering 
17.30 	provider. The fee shall be declared on a form prescribed by the commission. The ADW 
17.31 	provider must pay the fee to the commission no more than seven 15 days after the end of 
17.32 	the month in which the wager was made. Fees collected under this paragraph must be 
17.33 	deposited in the state treasury and credited to a racing and card-playing regulation account 
18.1 	in the special revenue fund and are appropriated to the commission to offset the costs 
18.2 	associated with regulating horse racing and pari-mutuel wagering in Minnesota.
18.3 	(b) A breeders fund fee is imposed in the amount of one-quarter of one percent of all 
18.4 	amounts wagered by Minnesota residents with an authorized advance deposit wagering 
18.5 	provider. The fee shall be declared on a form prescribed by the commission. The ADW 
18.6 	provider must pay the fee to the commission no more than seven 15 days after the end of 
18.7 	the month in which the wager was made. Fees collected under this paragraph must be 
18.8 	deposited in the state treasury and credited to a racing and card-playing regulation account 
18.9 	in the special revenue fund and are appropriated to the commission to offset the cost of 
18.10 	administering the breeders fund and promote horse breeding in Minnesota.

18.11 	Sec. 16. Minnesota Statutes 2016, section 240.22, is amended to read:
18.12 	240.22 FINES.
18.13 	(a) The commission shall by rule establish a schedule of civil fines for violations of laws 
18.14 	related to horse racing or of the commission's rules. The schedule must be based on and 
18.15 	reflect the culpability, frequency and severity of the violator's actions. The commission may 
18.16 	impose a fine from this schedule on a licensee for a violation of those rules or laws relating 
18.17 	to horse racing. The fine is in addition to any criminal penalty imposed for the same violation. 
18.18 	Fines imposed by the commission must be paid to the commission and except as provided 
18.19 	in paragraph (c), forwarded to the commissioner of management and budget for deposit in 
18.20 	the state treasury and credited to a racing and card-playing regulation account in the special 
18.21 	revenue fund and appropriated to the commission to distribute in the form of grants, contracts, 
18.22 	or expenditures to support racehorse adoption, retirement, and repurposing.
18.23 	(b) If the commission issues a fine in excess of $5,000, the license holder has the right 
18.24 	to request a contested case hearing under chapter 14, to be held as set forth in Minnesota 
18.25 	Rules, chapter 1400. The appeal of a fine must be made in writing to the commission by 
18.26 	certified mail or personal service. An appeal sent by certified mail must be postmarked 
18.27 	within ten days after the license holder receives the fine order from the commission. An 
18.28 	appeal sent by personal service must be received by the commission within ten days after 
18.29 	the license holder receives the fine order from the commission.
18.30 	(c) If the commission is the prevailing party in a contested case proceeding, the 
18.31 	commission may recover, from amounts to be forwarded under paragraph (a), reasonable 
18.32 	attorney fees and costs associated with the contested case.

19.1 	Sec. 17. Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read:
19.2 		Subdivision 1.Biennial report. The commissioner shall report to the legislature by 
19.3 	March 1 of each odd-numbered year on the overall incidence of the income tax, sales and 
19.4 	excise taxes, and property tax. The report shall present information on the distribution of 
19.5 	the tax burden as follows: (1) for the overall income distribution, using a systemwide 
19.6 	incidence measure such as the Suits index or other appropriate measures of equality and 
19.7 	inequality; (2) by income classes, including at a minimum deciles of the income distribution; 
19.8 	and (3) by other appropriate taxpayer characteristics. The report must also include information 
19.9 	on the distribution of the burden of federal taxes borne by Minnesota residents.

19.10 	Sec. 18. Minnesota Statutes 2016, section 349A.06, subdivision 11, is amended to read:
19.11 		Subd. 11.Cancellation, suspension, and refusal to renew contracts or locations. (a) 
19.12 	The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer from 
19.13 	selling lottery tickets at a business location who:
19.14 	(1) has been convicted of a felony or gross misdemeanor;
19.15 	(2) has committed fraud, misrepresentation, or deceit;
19.16 	(3) has provided false or misleading information to the lottery; or
19.17 	(4) has acted in a manner prejudicial to public confidence in the integrity of the lottery.
19.18 	(b) The director may cancel, suspend, or refuse to renew the contract of any lottery 
19.19 	retailer or prohibit a lottery retailer from selling lottery tickets at a business location who:
19.20 	(1) changes business location;
19.21 	(2) fails to account for lottery tickets received or the proceeds from tickets sold;
19.22 	(3) fails to remit funds to the director in accordance with the director's rules;
19.23 	(4) violates a law or a rule or order of the director;
19.24 	(5) fails to comply with any of the terms in the lottery retailer's contract;
19.25 	(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;
19.26 	(7) in the opinion of the director fails to maintain a sufficient sales volume to justify 
19.27 	continuation as a lottery retailer; or
19.28 	(8) has violated section 340A.503, subdivision 2, clause (1), two or more times within 
19.29 	a two-year period; or
20.1 	(9) has violated the rules adopted pursuant to subdivision 6, clause (1), requiring a lottery 
20.2 	retailer to retain appropriate amounts from gross receipts from the sale of lottery tickets in 
20.3 	order to pay prizes to holders of winning tickets, three or more times within a one-year 
20.4 	period.
20.5 	(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's contract 
20.6 	or prohibit a lottery retailer from selling lottery tickets at a business location if there is a 
20.7 	material change in any of the factors considered by the director under subdivision 2.
20.8 	(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery retailer 
20.9 	from selling lottery tickets at a business location under this subdivision is a contested case 
20.10 	under sections 14.57 to 14.69 and is in addition to any criminal penalties provided for a 
20.11 	violation of law or rule.
20.12 	(e) The director may temporarily suspend a contract or temporarily prohibit a lottery 
20.13 	retailer from selling lottery tickets at a business location without notice for any of the reasons 
20.14 	specified in this subdivision provided that a hearing is conducted within seven days after a 
20.15 	request for a hearing is made by a lottery retailer. Within 20 days after receiving the 
20.16 	administrative law judge's report, the director shall issue an order vacating the temporary 
20.17 	suspension or prohibition or making any other appropriate order. If no hearing is requested 
20.18 	within 30 days of the temporary suspension or prohibition taking effect, the suspension or 
20.19 	prohibition becomes permanent unless the director vacates or modifies the order.
20.20 	(f) A lottery retailer whose contract was solely canceled, suspended, or not renewed 
20.21 	pursuant to paragraph (b), clause (9), may petition the director to reinstate a canceled or 
20.22 	suspended contract, or enter into a new contract, after two years have passed since the order 
20.23 	took effect.

20.24 	Sec. 19. VALUATION OF PIPELINE OPERATING PROPERTY; 
20.25 	ADMINISTRATIVE RULES.
 20.26 	(a) No later than January 1, 2019, the commissioner of revenue must adopt amendments 
20.27 	to applicable administrative rules, including Minnesota Rules, part 8100.0300, related to 
20.28 	the valuation of pipeline operating property in Minnesota. The amendments must be designed 
20.29 	to improve the valuation methodology so that it produces a more accurate estimate of market 
20.30 	value. The commissioner must consider recent agreements, settlements, and judgments 
20.31 	related to state-assessed pipeline operating property valuations that resulted in an increase 
20.32 	or decrease in assessed market value in developing the amendments required by this section.
21.1 	(b) The commissioner may use the expedited rulemaking process under Minnesota 
21.2 	Statutes, section 14.389, to adopt the rules required by this section.

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

21.4 	Sec. 20. VALUATION METHOD OF PUBLIC UTILITY OPERATING PROPERTY; 
21.5 	REPORT.
 21.6 	(a) The commissioner of revenue shall prepare a report on the valuation of the operating 
21.7 	property of public utilities, as defined in Minnesota Statutes, section 216B.02, subdivision 
21.8 	4, in the state of Minnesota.
21.9 	(b) The report must compile and explain, in detail, the number of state-assessed public 
21.10 	utility valuations that have been appealed in the last 20 years, the basis for the appeals, and 
21.11 	the extent to which the market value was increased or reduced, by agreement, settlement, 
21.12 	or judgment, and list and provide detail on the taxing jurisdictions that have been issued a 
21.13 	refund order in the last 20 years as a result of agreement, settlement, or judgment, including 
21.14 	the year and amount paid.
21.15 	(c) The commissioner shall submit the report to the committees of the house of 
21.16 	representatives and senate having jurisdiction over taxes by December 1, 2018, and file the 
21.17 	report as required by Minnesota Statutes, section 3.195.

21.18 	EFFECTIVE DATE. This section is effective July 1, 2018.

21.19 	Sec. 21. NORDIC WORLD CUP SKI CHAMPIONSHIP.
 21.20 	(a) Upon request of U.S. Ski and Snowboard, The Loppet Foundation, or other affiliated 
21.21 	organization, the Minnesota Amateur Sports Commission must support the preparation and 
21.22 	submission of a competitive bid to host an International Ski Federation Nordic World Cup 
21.23 	Ski Championship event in Minnesota. If the event is awarded, the commission must partner 
21.24 	with the organizing committee as an event host. Commission activities may include but are 
21.25 	not limited to assisting in the development of public-private partnerships to support the 
21.26 	event; soliciting sponsors; participating in public outreach activities; permitting the 
21.27 	commission's facilities to be developed and used as event venues; and providing other 
21.28 	administrative, technical, logistical, or financial support, within available resources.
21.29 	(b) Within 30 days after a bid is submitted and, if an event is awarded to Minnesota as 
21.30 	a host, within 30 days after receiving notice of the award, the commission must notify the 
21.31 	chairs and ranking minority members of the legislative committees with jurisdiction over 
21.32 	the commission. The notification must describe the commission's work in support of the 
22.1 	event and indicate whether the commission anticipates seeking supplemental state or local 
22.2 	funds or other public resources to continue that work.

22.3 	EFFECTIVE DATE. This section is effective the day following final enactment and 
22.4 	expires upon conclusion of a Nordic World Cup Ski Championship event hosted in 
22.5 	Minnesota.

22.6 	Sec. 22.  REPEALER.
 22.7 	Minnesota Statutes 2016, section 155A.28, subdivisions 1, 3, and 4, are repealed effective 
22.8 	July 1, 2018.

22.9 	ARTICLE 3
22.10 	LEGISLATIVE BUDGET OFFICE

22.11 	Section 1. Minnesota Statutes 2017 Supplement, section 3.8853, subdivision 1, is amended 
22.12 	to read:
22.13 		Subdivision 1.Establishment; duties. The Legislative Budget Office is established 
22.14 	under control of the Legislative Coordinating Commission to provide the house of 
22.15 	representatives and senate with nonpartisan, accurate, and timely information on the fiscal 
22.16 	impact of proposed legislation, without regard to political factors.

22.17 	EFFECTIVE DATE. This section is effective July 1, 2018.

22.18 	Sec. 2. Minnesota Statutes 2017 Supplement, section 3.8853, subdivision 2, is amended 
22.19 	to read:
22.20 		Subd. 2.Director; staff. The Legislative Coordinating Commission Legislative Budget 
22.21 	Office Oversight Commission must appoint a director whoand establish the director's duties. 
22.22 	The director may hire staff necessary to do the work of the office. The director serves in 
22.23 	the unclassified service for a term of six years and may not be removed during a term except 
22.24 	for cause after a public hearing.

22.25 	EFFECTIVE DATE. This section is effective July 1, 2018.

22.26 	Sec. 3. Minnesota Statutes 2017 Supplement, section 3.8853, is amended by adding a 
22.27 	subdivision to read:
22.28 		Subd. 3.Uniform standards and procedures. The director of the Legislative Budget 
22.29 	Office must adopt uniform standards and procedures governing the timely preparation of 
22.30 	fiscal notes as required by this section and section 3.98.  The standards and procedures are 
23.1 	not effective until they are approved by the Legislative Budget Office Oversight Commission. 
23.2 	Upon approval, the standards and procedures must be published in the State Register and 
23.3 	on the office's Web site.

23.4 	EFFECTIVE DATE. This section is effective September 1, 2019, except that the 
23.5 	uniform standards and procedures to be used may be developed and adopted by the oversight 
23.6 	commission prior to the effective date of this section.

23.7 	Sec. 4. Minnesota Statutes 2017 Supplement, section 3.8853, is amended by adding a 
23.8 	subdivision to read:
23.9 		Subd. 4.Access to data; treatment. Upon request of the director of the Legislative 
23.10 	Budget Office, the head or chief administrative officer of each department or agency of 
23.11 	state government, including the Supreme Court, must promptly supply data that are used 
23.12 	to prepare a fiscal note, including data that are not public data under section 13.64 or other 
23.13 	applicable law, unless there are federal laws or regulations that prohibit the provision of the 
23.14 	not public data for this purpose. Not public data supplied under this subdivision may only 
23.15 	be used by the Legislative Budget Office to review a department or agency's work in 
23.16 	preparing a fiscal note and may not be used or disseminated for any other purpose, including 
23.17 	use by or dissemination to a legislator or to any officer, department, agency, or committee 
23.18 	within the legislative branch. Violation of this subdivision by the director or other staff of 
23.19 	the Legislative Budget Office is cause for removal, suspension without pay, or immediate 
23.20 	dismissal at the direction of the oversight commission.

23.21 	EFFECTIVE DATE. This section is effective September 1, 2019.

23.22 	Sec. 5. Minnesota Statutes 2017 Supplement, section 3.8853, is amended by adding a 
23.23 	subdivision to read:
23.24 		Subd. 5.Fiscal note delivery and posting. The director of the Legislative Budget Office 
23.25 	must deliver a completed fiscal note to the legislative committee chair who made the request, 
23.26 	and to the chief author of the legislation to which it relates. Within 24 hours of completion 
23.27 	of a fiscal note, the director of the Legislative Budget Office must post a completed fiscal 
23.28 	note on the office's public Web site. This subdivision does not apply to an unofficial fiscal 
23.29 	note that is not public data under section 13.64, subdivision 3.

23.30 	EFFECTIVE DATE. This section is effective September 1, 2019.

23.31 	Sec. 6. [3.8854] LEGISLATIVE BUDGET OFFICE OVERSIGHT COMMISSION.
23.32 	(a) The Legislative Budget Office Oversight Commission consists of:
24.1 	(1) two members of the senate appointed by the senate majority leader;
24.2 	(2) two members of the senate appointed by the senate minority leader;
24.3 	(3) two members of the house of representatives appointed by the speaker of the house; 
24.4 	and
24.5 	(4) two members of the house of representatives appointed by the minority leader.
24.6 	The director of the Legislative Budget Office is the executive secretary of the commission. 
24.7 	The chief nonpartisan fiscal analyst of the house of representatives, the lead nonpartisan 
24.8 	fiscal analyst of the senate, the commissioner of management and budget or a designee, and 
24.9 	the legislative auditor are ex officio, nonvoting members of the commission.
24.10 	(b) Members serve at the pleasure of the appointing authority, or until they are not 
24.11 	members of the legislative body from which they were appointed. Appointing authorities 
24.12 	shall fill vacancies on the commission within 30 days of a vacancy being created.
24.13 	(c) The commission shall meet in January of each odd-numbered year to elect its chair 
24.14 	and vice-chair. They shall serve until successors are elected. The chair and vice-chair shall 
24.15 	alternate biennially between the senate and the house of representatives. The commission 
24.16 	shall meet at the call of the chair. The members shall serve without compensation but may 
24.17 	be reimbursed for their reasonable expenses consistent with the rules of the legislature 
24.18 	governing expense reimbursement.
24.19 	(d) The commission shall review the work of the Legislative Budget Office and make 
24.20 	recommendations, as the commission determines necessary, to improve the office's ability 
24.21 	to fulfill its duties, and shall perform other functions as directed by this section, and sections 
24.22 	3.8853 and 3.98.

24.23 	Sec. 7. Minnesota Statutes 2017 Supplement, section 3.98, subdivision 1, is amended to 
24.24 	read:
24.25 		Subdivision 1.Preparation; duties. (a) The head or chief administrative officer of each 
24.26 	department or agency of the state government, including the Supreme Court, shall cooperate 
24.27 	with the Legislative Budget Office and the Legislative Budget Office must prepare a fiscal 
24.28 	note consistent with the standards and procedures adopted under section 3.8853, at the 
24.29 	request of the chair of the standing committee to which a bill has been referred, or the chair 
24.30 	of the house of representatives Ways and Means Committee, or the chair of the senate 
24.31 	Committee on Finance.
25.1 	(b) Upon request of the Legislative Budget Office, the head or chief administrative 
25.2 	officer of each department or agency of state government, including the Supreme Court, 
25.3 	must promptly supply all information necessary for the Legislative Budget Office to prepare 
25.4 	an accurate and timely fiscal note.
25.5 	(c) The Legislative Budget Office may adopt standards and guidelines governing timing 
25.6 	of responses to requests for information and governing access to data, consistent with laws 
25.7 	governing access to data. Agencies must comply with these standards and guidelines and 
25.8 	the Legislative Budget Office must publish them on the office's Web site.
25.9 	(d) (b) For purposes of this subdivision, "Supreme Court" includes all agencies, 
25.10 	committees, and commissions supervised or appointed by the state Supreme Court or the 
25.11 	state court administrator.

25.12 	EFFECTIVE DATE. This section is effective September 1, 2019.

25.13 	Sec. 8. Minnesota Statutes 2016, section 10A.01, subdivision 35, is amended to read:
25.14 		Subd. 35.Public official. "Public official" means any:
25.15 	(1) member of the legislature;
25.16 	(2) individual employed by the legislature as secretary of the senate, legislative auditor, 
25.17 	director of the Legislative Budget Office, chief clerk of the house of representatives, revisor 
25.18 	of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of 
25.19 	Senate Counsel, Research, and Fiscal Analysis, House Research, or the House Fiscal Analysis 
25.20 	Department;
25.21 	(3) constitutional officer in the executive branch and the officer's chief administrative 
25.22 	deputy;
25.23 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
25.24 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
25.25 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
25.26 	officer;
25.27 	(6) member, chief administrative officer, or deputy chief administrative officer of a state 
25.28 	board or commission that has either the power to adopt, amend, or repeal rules under chapter 
25.29 	14, or the power to adjudicate contested cases or appeals under chapter 14;
25.30 	(7) individual employed in the executive branch who is authorized to adopt, amend, or 
25.31 	repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
26.1 	(8) executive director of the State Board of Investment;
26.2 	(9) deputy of any official listed in clauses (7) and (8);
26.3 	(10) judge of the Workers' Compensation Court of Appeals;
26.4 	(11) administrative law judge or compensation judge in the State Office of Administrative 
26.5 	Hearings or unemployment law judge in the Department of Employment and Economic 
26.6 	Development;
26.7 	(12) member, regional administrator, division director, general counsel, or operations 
26.8 	manager of the Metropolitan Council;
26.9 	(13) member or chief administrator of a metropolitan agency;
26.10 	(14) director of the Division of Alcohol and Gambling Enforcement in the Department 
26.11 	of Public Safety;
26.12 	(15) member or executive director of the Higher Education Facilities Authority;
26.13 	(16) member of the board of directors or president of Enterprise Minnesota, Inc.;
26.14 	(17) member of the board of directors or executive director of the Minnesota State High 
26.15 	School League;
26.16 	(18) member of the Minnesota Ballpark Authority established in section 473.755;
26.17 	(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
26.18 	(20) manager of a watershed district, or member of a watershed management organization 
26.19 	as defined under section 103B.205, subdivision 13;
26.20 	(21) supervisor of a soil and water conservation district;
26.21 	(22) director of Explore Minnesota Tourism;
26.22 	(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section 
26.23 	97A.056;
26.24 	(24) citizen member of the Clean Water Council established in section 114D.30;
26.25 	(25) member or chief executive of the Minnesota Sports Facilities Authority established 
26.26 	in section 473J.07;
26.27 	(26) district court judge, appeals court judge, or Supreme Court justice;
26.28 	(27) county commissioner;
26.29 	(28) member of the Greater Minnesota Regional Parks and Trails Commission; or
27.1 	(29) member of the Destination Medical Center Corporation established in section 
27.2 	469.41.

27.3 	EFFECTIVE DATE. This section is effective July 1, 2018.

27.4 	Sec. 9. Minnesota Statutes 2016, section 13.64, is amended by adding a subdivision to 
27.5 	read:
27.6 		Subd. 4.Fiscal note data must be shared with Legislative Budget Office. A head or 
27.7 	chief administrative officer of a department or agency of the state government, including 
27.8 	the Supreme Court, must provide data that are used to prepare a fiscal note, including data 
27.9 	that are not public data under this section to the director of the Legislative Budget Office 
27.10 	upon the director's request and consistent with section 3.8853, subdivision 4, unless there 
27.11 	are federal laws or regulations that prohibit the provision of the not public data for this 
27.12 	purpose. The data must be supplied according to any standards and procedures adopted 
27.13 	under section 3.8853, subdivision 3, including any standards and procedures governing 
27.14 	timeliness. Notwithstanding section 13.05, subdivision 9, a responsible authority may not 
27.15 	require the Legislative Budget Office to pay a cost for supplying data requested under this 
27.16 	subdivision.

27.17 	EFFECTIVE DATE. This section is effective September 1, 2019.

27.18 	Sec. 10. Laws 2017, First Special Session chapter 4, article 2, section 1, the effective date, 
27.19 	is amended to read:

27.20 	EFFECTIVE DATE. This section is effective January 8, 2019 July 1, 2018.

27.21 	EFFECTIVE DATE. This section is effective July 1, 2018.

27.22 	Sec. 11. Laws 2017, First Special Session chapter 4, article 2, section 3, the effective date, 
27.23 	is amended to read:

27.24 	EFFECTIVE DATE. Except where otherwise provided by law, this section is effective 
27.25 	January 8, 2019 July 1, 2018.

27.26 	EFFECTIVE DATE. This section is effective July 1, 2018.

27.27 	Sec. 12. Laws 2017, First Special Session chapter 4, article 2, section 9, the effective date, 
27.28 	is amended to read:

27.29 	EFFECTIVE DATE. This section is effective January 8, 2019 September 1, 2019.

27.30 	EFFECTIVE DATE. This section is effective July 1, 2018.

28.1 	Sec. 13. Laws 2017, First Special Session chapter 4, article 2, section 58, the effective 
28.2 	date, is amended to read:

28.3 	EFFECTIVE DATE. This section is effective January 8, 2019. September 1, 2019. 
28.4 	The contract required under this section must be approved by the Legislative Budget Office 
28.5 	Oversight Commission and be executed no later than November 1, 2018, and must provide 
28.6 	for transfer of operational control of the fiscal note tracking system to the Legislative Budget 
28.7 	Office effective September 1, 2019.

28.8 	EFFECTIVE DATE. This section is effective July 1, 2018.

28.9 	Sec. 14. LEGISLATIVE BUDGET OFFICE OVERSIGHT COMMISSION; FIRST 
28.10 	APPOINTMENTS; FIRST CHAIR; FIRST MEETING.
 28.11 	Appointments to the Legislative Budget Office Oversight Commission under Minnesota 
28.12 	Statutes, section 3.8854, must be made by July 1, 2018. The chair of the Legislative 
28.13 	Coordinating Commission must designate one appointee to convene the commission's first 
28.14 	meeting and serve as its chair until a chair is elected by the commission as provided in 
28.15 	Minnesota Statutes, section 3.8854. The designated appointee must convene the first meeting 
28.16 	no later than July 15, 2018.

28.17 	Sec. 15. LEGISLATIVE BUDGET OFFICE DIRECTOR ORIENTATION AND 
28.18 	TRAINING.
 28.19 	Before September 1, 2019, the commissioner of management and budget shall provide 
28.20 	orientation and training to the director of the Legislative Budget Office and any staff of the 
28.21 	Legislative Budget Office designated by the director on the use of the fiscal note system. 
28.22 	The commissioner of management and budget must provide opportunities to the director 
28.23 	of the Legislative Budget Office and staff designated by the director of the Legislative 
28.24 	Budget Office to learn from the Department of Management and Budget's work on fiscal 
28.25 	note requests during the 2019 regular legislative session to facilitate the transfer of duties 
28.26 	required by this act.

28.27 	Sec. 16.  REPEALER.
 28.28 	(a) Minnesota Statutes 2017 Supplement, section 3.98, subdivision 4, is repealed effective 
28.29 	September 1, 2019.
28.30 	(b) Laws 2017, First Special Session chapter 4, article 2, section 59, is repealed.

29.1 	EFFECTIVE DATE. This section is effective the day following final enactment unless 
29.2 	a different date is specified.

29.3 	ARTICLE 4
29.4 	INFORMATION TECHNOLOGY

29.5 	Section 1. [3.9736] EVALUATION OF INFORMATION TECHNOLOGY 
29.6 	PROJECTS.
29.7 		Subdivision 1.Definition. For purposes of this section, "information technology project" 
29.8 	means a project managed or performed by the Office of MN.IT Services on behalf of a state 
29.9 	agency.
29.10 		Subd. 2.Selection of project for review; schedule for evaluation; report. Annually, 
29.11 	the legislative auditor may submit to the Legislative Audit Commission a list of three to 
29.12 	five information technology projects proposed for review. In selecting projects to include 
29.13 	on the list, the legislative auditor may consider the cost of the project to the state, the impact 
29.14 	of the project on state agencies and public users, and the legislature's interest in ensuring 
29.15 	that state agencies meet the needs of the public. The legislative auditor may include 
29.16 	completed projects and ongoing projects and shall give particular consideration to forensic 
29.17 	review of high-profile problematic projects from which recommendations may be developed 
29.18 	to prevent problems on future projects. Annually, the Legislative Audit Commission may 
29.19 	select at least one information technology project for the legislative auditor's evaluation. 
29.20 	The legislative auditor may evaluate the selected information technology project according 
29.21 	to an evaluation plan established under subdivision 3 and submit a written report to the 
29.22 	Legislative Audit Commission.
29.23 		Subd. 3.Evaluation plan. The Legislative Audit Commission may establish an evaluation 
29.24 	plan that identifies elements the legislative auditor must include in an evaluation of an 
29.25 	information technology project. The Legislative Audit Commission may modify the 
29.26 	evaluation plan as needed.

29.27 	Sec. 2. Minnesota Statutes 2016, section 16A.11, subdivision 1, is amended to read:
29.28 		Subdivision 1.When. The governor shall submit a three-part budget to the legislature. 
29.29 	Parts one and two, the budget message and detailed operating budget, must be submitted 
29.30 	by the fourth Tuesday in January in each odd-numbered year. However, in a year following 
29.31 	the election of a governor who had not been governor the previous year, parts one and two 
29.32 	must be submitted by the third Tuesday in February. Part three, the detailed recommendations 
29.33 	as to capital expenditure, must be submitted as follows: agency capital budget requests by 
30.1 	July 15 of each odd-numbered year, and governor's recommendations by January 15 of each 
30.2 	even-numbered year. Detailed recommendations as to information technology expenditure 
30.3 	must be submitted as part of the detailed operating budget. Information technology 
30.4 	recommendations must include projects to be funded during the next biennium and planning 
30.5 	estimates for an additional two bienniums. Information technology recommendations must 
30.6 	specify purposes of the funding such as infrastructure, hardware, software, or training.

30.7 	Sec. 3. Minnesota Statutes 2016, section 16A.11, is amended by adding a subdivision to 
30.8 	read:
30.9 		Subd. 6a.Information technology and cyber security. (a) Detailed recommendations 
30.10 	as to information and telecommunications technology systems and services expenditures 
30.11 	must be submitted as part of the detailed operating budget. These recommendations must 
30.12 	include projects to be funded during the next biennium and planning estimates for an 
30.13 	additional two bienniums and must specify purposes of the funding, such as infrastructure, 
30.14 	hardware, software, or training. The detailed operating budget must also separately 
30.15 	recommend expenditures for the maintenance and enhancement of cyber security for the 
30.16 	state's information and telecommunications technology systems and services.
30.17 	(b) The commissioner of management and budget, in consultation with the state chief 
30.18 	information officer, shall establish budget guidelines for the recommendations required by 
30.19 	this subdivision. Unless otherwise set by the commissioner at a higher amount, the amount 
30.20 	to be budgeted each fiscal year for maintenance and enhancement of cyber security must 
30.21 	be at least 3.5 percent of a department's or agency's total operating budget for information 
30.22 	and telecommunications technology systems and services in that year.
30.23 	(c) As used in this subdivision:
30.24 	(1) "cyber security" has the meaning given in section 16E.03, subdivision 1, paragraph 
30.25 	(d); and
30.26 	(2) "information and telecommunications technology systems and services" has the 
30.27 	meaning given in section 16E.03, subdivision 1, paragraph (a).

30.28 	Sec. 4. Minnesota Statutes 2016, section 16E.03, subdivision 7, is amended to read:
30.29 		Subd. 7.Cyber security systems. In consultation with the attorney general and 
30.30 	appropriate agency heads, the chief information officer shall develop cyber security policies, 
30.31 	guidelines, and standards, and shall install and administer state data security systems on the 
30.32 	state's computer facilities consistent with these policies, guidelines, standards, and state law 
31.1 	to ensure the integrity of computer-based and other data and to ensure applicable limitations 
31.2 	on access to data, consistent with the public's right to know as defined in chapter 13. The 
31.3 	chief information officer is responsible for overall security of state agency networks 
31.4 	connected to the Internet. Each department or agency head is responsible for the security 
31.5 	of the department's or agency's data within the guidelines of established enterprise policy.
31.6 	Unless otherwise expressly provided by law, at least 3.5 percent of each department's or 
31.7 	agency's expenditures in a fiscal year for information and telecommunications technology 
31.8 	systems and services must be directed to the maintenance and enhancement of cyber security.

31.9 	EFFECTIVE DATE. This section is effective July 1, 2018, and applies to expenditures 
31.10 	in fiscal years beginning on or after that date.

31.11 	ARTICLE 5
31.12 	ENERGY POLICY

31.13 	Section 1. Minnesota Statutes 2017 Supplement, section 116C.779, subdivision 1, is 
31.14 	amended to read:
31.15 		Subdivision 1.Renewable development account. (a) The renewable development 
31.16 	account is established as a separate account in the special revenue fund in the state treasury. 
31.17 	Appropriations and transfers to the account shall be credited to the account. Earnings, such 
31.18 	as interest, dividends, and any other earnings arising from assets of the account, shall be 
31.19 	credited to the account. Funds remaining in the account at the end of a fiscal year are not 
31.20 	canceled to the general fund but remain in the account until expended. The account shall 
31.21 	be administered by the commissioner of management and budget as provided under this 
31.22 	section.
31.23 	(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating 
31.24 	plant must transfer all funds in the renewable development account previously established 
31.25 	under this subdivision and managed by the public utility to the renewable development 
31.26 	account established in paragraph (a). Funds awarded to grantees in previous grant cycles 
31.27 	that have not yet been expended and unencumbered funds required to be paid in calendar 
31.28 	year 2017 under paragraphs (e) and (f) and (g), and sections 116C.7792 and 216C.41, are 
31.29 	not subject to transfer under this paragraph.
31.30 	(c) Except as provided in subdivision 1a, Beginning January 15, 2018 2019, and 
31.31 	continuing each January 15 thereafter, the public utility that owns the Prairie Island and 
31.32 	Monticello nuclear generating plant plants must transfer to the renewable development 
31.33 	account $500,000 each year for each dry cask containing spent fuel that is located at the 
32.1 	Prairie Island power plant for the following amounts each year the either plant is in operation, 
32.2 	and $7,500,000 each year the plant is not in operation: (1) $23,000,000 in 2019; (2) 
32.3 	$28,000,000 in 2020; (3) $28,000,000 in 2021; and (4) $20,000,000 beginning in 2022 and 
32.4 	each year thereafter. If ordered by the commission pursuant to paragraph (i).(h), the public 
32.5 	utility must transfer $7,500,000 each year the Prairie Island plant is not in operation and 
32.6 	$5,250,000 each year the Monticello plant is not in operation. The fund transfer must be 
32.7 	made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility 
32.8 	at Prairie Island or Monticello for any part of a year.
32.9 	(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing 
32.10 	each January 15 thereafter, the public utility that owns the Monticello nuclear generating 
32.11 	plant must transfer to the renewable development account $350,000 each year for each dry 
32.12 	cask containing spent fuel that is located at the Monticello nuclear power plant for each 
32.13 	year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered 
32.14 	by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear 
32.15 	waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 
32.16 	any part of a year.
32.17 	(e) (d) Each year, the public utility shall withhold from the funds transferred to the 
32.18 	renewable development account under paragraphs paragraph (c) and (d) the amount necessary 
32.19 	to pay its obligations for that calendar year under paragraphs (e), (f) and (g), (j), and (n),
32.20 	and sections 116C.7792 and 216C.41, for that calendar year.
32.21 	(f) (e) If the commission approves a new or amended power purchase agreement, the 
32.22 	termination of a power purchase agreement, or the purchase and closure of a facility under 
32.23 	section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity, 
32.24 	the public utility subject to this section shall enter into a contract with the city in which the 
32.25 	poultry litter plant is located to provide grants to the city for the purposes of economic 
32.26 	development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each 
32.27 	fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid 
32.28 	by the public utility from funds withheld from the transfer to the renewable development 
32.29 	account, as provided in paragraphs (b) and (e) (d).
32.30 	(g)(f) If the commission approves a new or amended power purchase agreement, or the 
32.31 	termination of a power purchase agreement under section 216B.2424, subdivision 9, with 
32.32 	an entity owned or controlled, directly or indirectly, by two municipal utilities located north 
32.33 	of Constitutional Route No. 8, that was previously used to meet the biomass mandate in 
32.34 	section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a 
32.35 	grant contract with such entity to provide $6,800,000 per year for five years, commencing 
33.1 	30 days after the commission approves the new or amended power purchase agreement, or 
33.2 	the termination of the power purchase agreement, and on each June 1 thereafter through 
33.3 	2021, to assist the transition required by the new, amended, or terminated power purchase 
33.4 	agreement. The grant shall be paid by the public utility from funds withheld from the transfer 
33.5 	to the renewable development account as provided in paragraphs (b) and (e) (d).
33.6 	(h)(g) The collective amount paid under the grant contracts awarded under paragraphs 
33.7 	(e) and (f) and (g) is limited to the amount deposited into the renewable development account, 
33.8 	and its predecessor, the renewable development account, established under this section, that 
33.9 	was not required to be deposited into the account under Laws 1994, chapter 641, article 1, 
33.10 	section 10.
33.11 	(i) (h) After discontinuation of operation of the Prairie Island nuclear plant or the 
33.12 	Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 
33.13 	discontinued facility, the commission shall require the public utility to pay $7,500,000 for 
33.14 	the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello 
33.15 	facility for any year in which the commission finds, by the preponderance of the evidence, 
33.16 	that the public utility did not make a good faith effort to remove the spent nuclear fuel stored 
33.17 	at the facility to a permanent or interim storage site out of the state. This determination shall 
33.18 	be made at least every two years.
33.19 	(i) The public utility must annually file with the commission a petition to recover through 
33.20 	a rider mechanism all funds it is required to transfer or withhold under paragraphs (c) to (f) 
33.21 	for the next year. The commission must approve a reasonable cost recovery schedule for 
33.22 	all funds under this paragraph.
33.23 	(j) On or before January 15 of each year, the public utility must file a petition with the 
33.24 	commission identifying the amounts withheld by the public utility the prior year under 
33.25 	paragraph (d) and the amount actually paid the prior year for obligations identified in 
33.26 	paragraph (d). If the amount actually paid is less than the amount withheld, the public utility 
33.27 	must deduct the surplus from the amount withheld for the current year under paragraph (d). 
33.28 	If the amount actually paid is more than the amount withheld, the public utility must add 
33.29 	the deficiency amount to the amount withheld for the current year under paragraph (d). Any 
33.30 	surplus remaining in the account after all programs identified in paragraph (d) are terminated 
33.31 	must be returned to the public utility's customers.
33.32 	(j) (k) Funds in the account may be expended only for any of the following purposes:
33.33 	(1) to stimulate research and development of renewable electric energy technologies;
34.1 	(2) to encourage grid modernization, including, but not limited to, projects that implement 
34.2 	electricity storage, load control, and smart meter technology; and
34.3 	(3) to stimulate other innovative energy projects that reduce demand and increase system 
34.4 	efficiency and flexibility.
34.5 	Expenditures from the fund must benefit Minnesota ratepayers receiving electric service 
34.6 	from the utility that owns a nuclear-powered electric generating plant in this state or the 
34.7 	Prairie Island Indian community or its members.
34.8 	The utility that owns a nuclear generating plant is eligible to apply for grants under this 
34.9 	subdivision.
34.10 	(k) (l) For the purposes of paragraph (j) (k), the following terms have the meanings 
34.11 	given:
34.12 	(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph 
34.13 	(c), clauses (1), (2), (4), and (5); and
34.14 	(2) "grid modernization" means:
34.15 	(i) enhancing the reliability of the electrical grid;
34.16 	(ii) improving the security of the electrical grid against cyberthreats and physical threats; 
34.17 	and
34.18 	(iii) increasing energy conservation opportunities by facilitating communication between 
34.19 	the utility and its customers through the use of two-way meters, control technologies, energy 
34.20 	storage and microgrids, technologies to enable demand response, and other innovative 
34.21 	technologies.
34.22 	(l) (m) A renewable development account advisory group that includes, among others, 
34.23 	representatives of the public utility and its ratepayers, and includes at least one representative 
34.24 	of the Prairie Island Indian community appointed by that community's tribal council, shall 
34.25 	develop recommendations on account expenditures. Members of the advisory group must 
34.26 	be chosen by the public utility. The advisory group must design a request for proposal and 
34.27 	evaluate projects submitted in response to a request for proposals. The advisory group must 
34.28 	utilize an independent third-party expert to evaluate proposals submitted in response to a 
34.29 	request for proposal, including all proposals made by the public utility. A request for proposal 
34.30 	for research and development under paragraph (j) (k), clause (1), may be limited to or include 
34.31 	a request to higher education institutions located in Minnesota for multiple projects authorized 
34.32 	under paragraph (j) (k), clause (1). The request for multiple projects may include a provision 
34.33 	that exempts the projects from the third-party expert review and instead provides for project 
35.1 	evaluation and selection by a merit peer review grant system. In the process of determining 
35.2 	request for proposal scope and subject and in evaluating responses to request for proposals, 
35.3 	the advisory group must strongly consider, where reasonable, potential benefit to Minnesota 
35.4 	citizens and businesses and the utility's ratepayers.
35.5 	(n) The cost of acquiring the services of the independent third-party expert described in 
35.6 	paragraph (m) and any other reasonable costs incurred to administer the advisory group and 
35.7 	its actions required by this section must be paid from funds withheld by the public utility 
35.8 	under paragraph (d). The total amount withheld under this paragraph must not exceed 
35.9 	$125,000 each year.
35.10 	(m)(o) The advisory group shall submit funding recommendations to the public utility, 
35.11 	which has full and sole authority to determine which expenditures shall be submitted by 
35.12 	the advisory group to the legislature commission. The commission may approve proposed 
35.13 	expenditures, may disapprove proposed expenditures that it finds not to be in compliance 
35.14 	with this subdivision or otherwise not in the public interest, and may, if agreed to by the 
35.15 	public utility, modify proposed expenditures. The commission shall, by order, submit its 
35.16 	funding recommendations to the legislature as provided under paragraph (n) (p).
35.17 	(n) (p) The commission shall present its recommended appropriations from the account 
35.18 	to the senate and house of representatives committees with jurisdiction over energy policy 
35.19 	and finance annually by February 15. Expenditures from the account must be appropriated 
35.20 	by law. In enacting appropriations from the account, the legislature:
35.21 	(1) may approve or disapprove, but may not modify, the amount of an appropriation for 
35.22 	a project recommended by the commission; and
35.23 	(2) may not appropriate money for a project the commission has not recommended 
35.24 	funding.
35.25 	(o) (q) A request for proposal for renewable energy generation projects must, when 
35.26 	feasible and reasonable, give preference to projects that are most cost-effective for a particular 
35.27 	energy source.
35.28 	(p) (r) The advisory group must annually, by February 15, report to the chairs and ranking 
35.29 	minority members of the legislative committees with jurisdiction over energy policy on 
35.30 	projects funded by the account under paragraph (k) for the prior year and all previous years. 
35.31 	The report must, to the extent possible and reasonable, itemize the actual and projected 
35.32 	financial benefit to the public utility's ratepayers of each project.
36.1 	(s) By June 1, 2018, and each June 1 thereafter, the public utility that owns the Prairie 
36.2 	Island Nuclear Electric Generating Plant must submit to the commissioner of management 
36.3 	and budget an estimate of the amount the public utility will deposit into the account the 
36.4 	following January 15, based on the provisions of paragraphs (c) to (h) and any appropriations 
36.5 	made from the fund during the most recent legislative session.
36.6 	(q) (t) By February 1June 30, 2018, and each February 1June 30 thereafter, the 
36.7 	commissioner of management and budget shall must estimate the balance in the account as 
36.8 	of the following January 31, taking into account the balance in the account as of June 30 
36.9 	and the information provided under paragraph (r). By July 15, 2018, and each July 15 
36.10 	thereafter, the commissioner of management and budget must submit a written report 
36.11 	regarding the availability of funds in and obligations of the account to the chairs and ranking 
36.12 	minority members of the senate and house committees with jurisdiction over energy policy 
36.13 	and finance, the public utility, and the advisory group. If more than $15,000,000 is estimated 
36.14 	to be available in the account as of January 31, the advisory group must, by January 31 the 
36.15 	next year, issue a request for proposals to initiate a grant cycle for the purposes of paragraph 
36.16 	(k).
36.17 	(r) (u) A project receiving funds from the account must produce a written final report 
36.18 	that includes sufficient detail for technical readers and a clearly written summary for 
36.19 	nontechnical readers. The report must include an evaluation of the project's financial, 
36.20 	environmental, and other benefits to the state and the public utility's ratepayers.
36.21 	(s) (v) Final reports, any mid-project status reports, and renewable development account 
36.22 	financial reports must be posted online on a public Web site designated by the commissioner 
36.23 	of commerce.
36.24 	(t) (w) All final reports must acknowledge that the project was made possible in whole 
36.25 	or part by the Minnesota renewable development account, noting that the account is financed 
36.26 	by the public utility's ratepayers.
36.27 	(u) (x) Of the amount in the renewable development account, priority must be given to 
36.28 	making the payments required under section 216C.417.

36.29 	EFFECTIVE DATE. This section is effective June 1, 2018.

36.30 	Sec. 2. Minnesota Statutes 2017 Supplement, section 116C.7792, is amended to read:
36.31 	116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
36.32 	(a) The utility subject to section 116C.779shall must operate a program to provide solar 
36.33 	energy production incentives for solar energy systems of no more than a total aggregate 
37.1 	nameplate capacity of 2040 kilowatts direct current per premises. The owner of a solar 
37.2 	energy system installed before June 1, 2018, is eligible to receive a production incentive 
37.3 	under this section for any additional solar energy systems constructed at the same customer 
37.4 	location, provided the aggregate capacity of all systems at the customer location does not 
37.5 	exceed 40 kilowatts.
37.6 	(b) The program shall must be operated for eight consecutive calendar years commencing 
37.7 	in 2014. $5,000,000 shall must be allocated in each of the first four years, $15,000,000 in 
37.8 	the fifth year, $10,000,000 in each of the sixth and seventh years, and $5,000,000 in the 
37.9 	eighth year from funds withheld from transfer to the renewable development account under 
37.10 	section 116C.779, subdivision 1, paragraphs (b) and (e) paragraph (d), and placed in a 
37.11 	separate account for the purpose of the solar production incentive program operated by the 
37.12 	utility. Money in the separate account must not be used for any other program or purpose. 
37.13 	Any unspent amount allocated in the fifth year is available until December 31 of the sixth 
37.14 	year. Any unspent amount remaining at the end of an allocation year must be transferred 
37.15 	to the renewable development account or returned to customers.
37.16 	(c) The solar energy system must be sized to less than 120 percent of the customer's 
37.17 	on-site annual energy consumption when combined with other distributed generation 
37.18 	resources and subscriptions provided under section 216B.1641 associated with the premise. 
37.19 	The production incentive must be paid for ten years commencing with the commissioning 
37.20 	of the system.
37.21 	(d) The utility must file a plan to operate the program with the commissioner of 
37.22 	commerce. The utility may not operate the program until it is approved by the commissioner.
37.23 	A change to the program to include projects up to a nameplate capacity of 40 kilowatts does 
37.24 	not require the utility to file an amended plan with the commissioner. Any plan approved 
37.25 	by the commissioner of commerce must not provide an increased incentive over prior years 
37.26 	unless the commissioner demonstrates that changes in the market for solar energy facilities 
37.27 	require an increase.

37.28 	EFFECTIVE DATE. This section is effective June 1, 2018.

37.29 	Sec. 3. [116C.7793] PRAIRIE ISLAND NET ZERO PROJECT.
37.30 		Subdivision 1.Program established. The Prairie Island Net Zero Project is established 
37.31 	with the goal of the Prairie Island Indian Community developing an energy system that 
37.32 	results in net zero emissions.
38.1 		Subd. 2.Grant. The commissioner of employment and economic development must 
38.2 	enter into a grant contract with the Prairie Island Indian Community to provide the amounts 
38.3 	appropriated each year under subdivision 4 to stimulate research, development, and 
38.4 	implementation of renewable energy projects benefiting the Prairie Island Indian Community 
38.5 	or its members. Any examination conducted by the commissioner of employment and 
38.6 	economic development to determine the sufficiency of the financial stability and capacity 
38.7 	of the Prairie Island Indian Community to carry out the purposes of this grant is limited to 
38.8 	the Community Services Department of the Prairie Island Indian Community.
38.9 		Subd. 3.Plan; report. The Prairie Island Indian Community must file a plan with the 
38.10 	commissioner of employment and economic development no later than July 1, 2019, 
38.11 	describing the Prairie Island Net Zero Project elements and implementation strategy. The 
38.12 	Prairie Island Indian Community must file a report on July 1, 2020, and each July 1 thereafter 
38.13 	through 2025, describing the progress made in implementing the project and the uses of 
38.14 	expended funds.
38.15 		Subd. 4.Appropriation. Notwithstanding section 116C.779, subdivision 1, paragraph 
38.16 	(k), $3,000,000 in fiscal year 2019, $7,000,000 in fiscal year 2020, $4,500,000 in fiscal 
38.17 	year 2021, $9,000,000 in fiscal year 2022, $8,000,000 in fiscal year 2023, and $8,500,000 
38.18 	in fiscal year 2024 are appropriated from the renewable development account under section 
38.19 	116C.779, subdivision 1, to the commissioner of employment and economic development 
38.20 	for a grant to the Prairie Island Indian Community for the purposes of this section. Any 
38.21 	funds remaining at the end of a fiscal year do not cancel to the renewable development 
38.22 	account but remain available until spent. This subdivision expires the day after the last 
38.23 	transfer of funds to the commissioner.
38.24 		Subd. 5.Transfer. (a) Any funds appropriated under section 216C.417, subdivision 2, 
38.25 	that are unexpended at the end of a fiscal year are transferred to the commissioner of 
38.26 	employment and economic development for a grant to the Prairie Island Indian Community 
38.27 	for the purposes of this section.
38.28 	(b) Beginning in fiscal year 2019 and continuing each year thereafter, on the day 
38.29 	following the public release of the February state budget forecast the commissioner of 
38.30 	management and budget must compare the obligation forecasted in each fiscal year for the 
38.31 	Made in Minnesota solar production incentive program under section 216C.417 with the 
38.32 	obligations forecasted under that program in the previous year's February state budget 
38.33 	forecast. If the amount in the most recent forecast in any one fiscal year is less than the 
38.34 	amount of the obligation forecasted for the same fiscal year in the previous February forecast, 
38.35 	the commissioner of management and budget must transfer the difference from the renewable 
39.1 	development account established in section 116C.779 to the commissioner of employment 
39.2 	and economic development for a grant to the Prairie Island Indian Community for the Prairie 
39.3 	Island Net Zero Project in section 116C.7793.
39.4 	(c) The total amount appropriated and transferred from the renewable development 
39.5 	account under this subdivision and subdivision 4 must not exceed $45,000,000.
39.6 	(d) This subdivision expires the day following the day that the total amount appropriated 
39.7 	and transferred from the renewable development account under this subdivision and 
39.8 	subdivision 4 equals $45,000,000.

39.9 	EFFECTIVE DATE. This section is effective June 1, 2018.

39.10 	Sec. 4. Minnesota Statutes 2016, section 216B.16, is amended by adding a subdivision to 
39.11 	read:
39.12 		Subd. 7e.Energy storage system pilot projects. (a) A public utility may petition the 
39.13 	commission under this section to recover costs associated with the implementation of an 
39.14 	energy storage system pilot project. As part of the petition, the public utility must submit a 
39.15 	report to the commission containing, at a minimum, the following information regarding 
39.16 	the proposed energy storage system pilot project:
39.17 	(1) the storage technology utilized;
39.18 	(2) the energy storage capacity and the duration of output at that capacity;
39.19 	(3) the proposed location;
39.20 	(4) the purchase and installation costs;
39.21 	(5) how the project will interact with existing distributed generation resources on the 
39.22 	utility's grid; and
39.23 	(6) the goals the project proposes to achieve, which may include controlling frequency 
39.24 	or voltage, mitigating transmission congestion, providing emergency power supplies during 
39.25 	outages, reducing curtailment of existing renewable energy generators, and reducing peak 
39.26 	power costs.
39.27 	(b) A utility may petition the commission to approve a rate schedule that provides for 
39.28 	the automatic adjustment of charges to recover prudently incurred investments, expenses, 
39.29 	or costs associated with energy storage system pilot projects approved by the commission 
39.30 	under this subdivision. A petition filed under this subdivision must include the elements 
39.31 	listed in section 216B.1645, subdivision 2a, paragraph (b), clauses (1) to (4), and must 
39.32 	describe the benefits of the pilot project.
40.1 	(c) The commission may approve, or approve as modified, a rate schedule filed under 
40.2 	this subdivision if it determines the proposed energy storage system pilot project is in the 
40.3 	public interest. A rate schedule filed under this subdivision may include the elements listed 
40.4 	in section 216B.1645, subdivision 2a, paragraph (a), clauses (1) to (5).
40.5 	(d) The commission must make its determination under paragraph (c) within 90 days of 
40.6 	the filing under paragraph (a).
40.7 	(e) Nothing in this subdivision prohibits or deters the deployment of energy storage 
40.8 	systems.
40.9 	(f) For the purposes of this subdivision:
40.10 	(1) "energy storage system" has the meaning given in section 216B.2422, subdivision 
40.11 	1; and
40.12 	(2) "pilot project" means a project that is owned, operated, and controlled by a public 
40.13 	utility to optimize safe and reliable system operations and is deployed at a limited number 
40.14 	of locations in order to assess the technical and economic effectiveness of its operations.

40.15 	EFFECTIVE DATE. This section is effective June 1, 2018.

40.16 	Sec. 5. Minnesota Statutes 2016, section 216B.16, is amended by adding a subdivision to 
40.17 	read:
40.18 		Subd. 13a.Pension and other benefits rate base. The commission must allow a public 
40.19 	utility to include in the rate base and recover from ratepayers combined pension and other 
40.20 	postemployment benefit costs. Postemployment benefit costs include retiree medical, 
40.21 	determined as the difference between accumulated contributions and accumulated expenses, 
40.22 	offset by related accumulated deferred income tax. A public utility is authorized to track 
40.23 	for future recovery any unrecovered return of pension and other postemployment rate base 
40.24 	costs and investments at the return on investment level established in the public utility's last 
40.25 	general rate case.

40.26 	Sec. 6. Minnesota Statutes 2016, section 216B.1641, is amended to read:
40.27 	216B.1641 COMMUNITY SOLAR GARDEN.
40.28 	(a) The public utility subject to section 116C.779 shall file by September 30, 2013, a 
40.29 	plan with the commission to operate a community solar garden program which shall begin 
40.30 	operations within 90 days after commission approval of the plan. Other public utilities may 
40.31 	file an application at their election. The community solar garden program must be designed 
41.1 	to offset the energy use of not less than five subscribers in each community solar garden 
41.2 	facility of which no single subscriber has more than a 40 percent interest. The owner of the 
41.3 	community solar garden may be a public utility or any other entity or organization that 
41.4 	contracts to sell the output from the community solar garden to the utility under section 
41.5 	216B.164. There shall be no limitation on the number or cumulative generating capacity of 
41.6 	community solar garden facilities other than the limitations imposed under section 216B.164, 
41.7 	subdivision 4c, or other limitations provided in law or regulations.
41.8 	(b) A solar garden is a facility that generates electricity by means of a ground-mounted 
41.9 	or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the 
41.10 	electricity generated in proportion to the size of their subscription. The solar garden must 
41.11 	have a nameplate capacity of no more than one megawatt. Each subscription shall be sized 
41.12 	to represent at least 200 watts of the community solar garden's generating capacity and to 
41.13 	supply, when combined with other distributed generation resources serving the premises, 
41.14 	no more than 120 percent of the average annual consumption of electricity by each subscriber 
41.15 	at the premises to which the subscription is attributed.
41.16 	(c) The solar generation facility must be located in the service territory of the public 
41.17 	utility filing the plan. Subscribers must be retail customers of the public utility located in 
41.18 	the same county or a county contiguous to where the facility is located.
41.19 	(d) The public utility must purchase from the community solar garden all energy generated 
41.20 	by the solar garden. The purchase shall be at the rate calculated under section 216B.164, 
41.21 	subdivision 10, or, until that rate for the public utility has been approved by the commission, 
41.22 	the applicable retail rate. A solar garden is eligible for any incentive programs offered under 
41.23 	either section 116C.7792 or section 216C.415. A subscriber's portion of the purchase shall 
41.24 	be provided by a credit on the subscriber's bill.
41.25 	(e) The commission may approve, disapprove, or modify a community solar garden 
41.26 	program. Any plan approved by the commission must:
41.27 	(1) reasonably allow for the creation, financing, and accessibility of community solar 
41.28 	gardens;
41.29 	(2) establish uniform standards, fees, and processes for the interconnection of community 
41.30 	solar garden facilities that allow the utility to recover reasonable interconnection costs for 
41.31 	each community solar garden;
41.32 	(3) not apply different requirements to utility and nonutility community solar garden 
41.33 	facilities;
42.1 	(4) be consistent with the public interest;
42.2 	(5) identify the information that must be provided to potential subscribers to ensure fair 
42.3 	disclosure of future costs and benefits of subscriptions;
42.4 	(6) include a program implementation schedule;
42.5 	(7) identify all proposed rules, fees, and charges; and
42.6 	(8) identify the means by which the program will be promoted.
42.7 	(f) Notwithstanding any other law, neither the manager of nor the subscribers to a 
42.8 	community solar garden facility shall be considered a utility solely as a result of their 
42.9 	participation in the community solar garden facility.
42.10 	(g) Within 180 days of commission approval of a plan under this section, a utility shall 
42.11 	begin crediting subscriber accounts for each community solar garden facility in its service 
42.12 	territory, and shall file with the commissioner of commerce a description of its crediting 
42.13 	system.
42.14 	(h) For the purposes of this section, the following terms have the meanings given:
42.15 	(1) "subscriber" means a retail customer of a utility who owns one or more subscriptions 
42.16 	of a community solar garden facility interconnected with that utility; and
42.17 	(2) "subscription" means a contract between a subscriber and the owner of a solar garden.

42.18 	Sec. 7. Minnesota Statutes 2017 Supplement, section 216B.1691, subdivision 2f, is amended 
42.19 	to read:
42.20 		Subd. 2f.Solar energy standard. (a) In addition to the requirements of subdivisions 2a 
42.21 	and 2b, each public utility shall generate or procure sufficient electricity generated by solar 
42.22 	energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at 
42.23 	least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is 
42.24 	generated by solar energy.
42.25 	(b) For a public utility with more than 200,000 retail electric customers, at least ten 
42.26 	percent of the 1.5 percent goal must be met by solar energy generated by or procured from 
42.27 	solar photovoltaic devices with a nameplate capacity of 20 40 kilowatts or less.
42.28 	(c) A public utility with between 50,000 and 200,000 retail electric customers:
42.29 	(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by 
42.30 	or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or 
42.31 	less; and
43.1 	(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions 
43.2 	of 40 kilowatts or less to a community solar garden program operated by the public utility 
43.3 	that has been approved by the commission.
43.4 	(d) The solar energy standard established in this subdivision is subject to all the provisions 
43.5 	of this section governing a utility's standard obligation under subdivision 2a.
43.6 	(e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the retail 
43.7 	electric sales in Minnesota be generated by solar energy.
43.8 	(f) For the purposes of calculating the total retail electric sales of a public utility under 
43.9 	this subdivision, there shall be excluded retail electric sales to customers that are:
43.10 	(1) an iron mining extraction and processing facility, including a scram mining facility 
43.11 	as defined in Minnesota Rules, part 6130.0100, subpart 16; or
43.12 	(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board 
43.13 	manufacturer.
43.14 	Those customers may not have included in the rates charged to them by the public utility 
43.15 	any costs of satisfying the solar standard specified by this subdivision.
43.16 	(g) A public utility may not use energy used to satisfy the solar energy standard under 
43.17 	this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may 
43.18 	not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the 
43.19 	solar standard under this subdivision.
43.20 	(h) Notwithstanding any law to the contrary, a solar renewable energy credit associated 
43.21 	with a solar photovoltaic device installed and generating electricity in Minnesota after 
43.22 	August 1, 2013, but before 2020 may be used to meet the solar energy standard established 
43.23 	under this subdivision.
43.24 	(i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall file 
43.25 	a report with the commission reporting its progress in achieving the solar energy standard 
43.26 	established under this subdivision.

43.27 	EFFECTIVE DATE. This section is effective June 1, 2018.

43.28 	Sec. 8. Minnesota Statutes 2017 Supplement, section 216B.241, subdivision 1d, is amended 
43.29 	to read:
43.30 		Subd. 1d.Technical assistance. (a) The commissioner shall evaluate energy conservation 
43.31 	improvement programs on the basis of cost-effectiveness and the reliability of the 
43.32 	technologies employed. The commissioner shall, by order, establish, maintain, and update 
44.1 	energy-savings assumptions that must be used when filing energy conservation improvement 
44.2 	programs. The commissioner shall establish an inventory of the most effective energy 
44.3 	conservation programs, techniques, and technologies, and encourage all Minnesota utilities 
44.4 	to implement them, where appropriate, in their service territories. The commissioner shall 
44.5 	describe these programs in sufficient detail to provide a utility reasonable guidance 
44.6 	concerning implementation. The commissioner shall prioritize the opportunities in order of 
44.7 	potential energy savings and in order of cost-effectiveness. The commissioner may contract 
44.8 	with a third party to carry out any of the commissioner's duties under this subdivision, and 
44.9 	to obtain technical assistance to evaluate the effectiveness of any conservation improvement 
44.10 	program. The commissioner may assess up to $850,000 annually for the purposes of this 
44.11 	subdivision. The assessments must be deposited in the state treasury and credited to the 
44.12 	energy and conservation account created under subdivision 2a. An assessment made under 
44.13 	this subdivision is not subject to the cap on assessments provided by section 216B.62, or 
44.14 	any other law.
44.15 	(b) Of the assessment authorized under paragraph (a), the commissioner may expend 
44.16 	up to $400,000 annually $800,000 for the purpose of developing, operating, maintaining, 
44.17 	and providing technical support for a uniform electronic data reporting and tracking system 
44.18 	available to all utilities subject to this section, in order to enable accurate measurement of 
44.19 	the cost and energy savings of the energy conservation improvements required by this 
44.20 	section. This paragraph expires June 30, 20182019.
44.21 	(c) The commissioner must establish a utility stakeholder group to direct development 
44.22 	and maintenance of the tracking system available to all utilities. The utility stakeholder 
44.23 	group will direct 50 percent of the biennium expenditures. The utility stakeholder group 
44.24 	must include but is not limited to stakeholders representative of the Minnesota Rural Electric 
44.25 	Association, the Minnesota Municipal Utility Association, investor-owned utilities, municipal 
44.26 	power agencies, energy conservation organizations, and businesses that work in energy 
44.27 	efficiency. One of the stakeholder members must serve as chair. The utility stakeholder 
44.28 	group must develop and submit its work plan to the commissioner. The utility stakeholder 
44.29 	group must study alternative tracking system options, which must be submitted to the 
44.30 	commissioner with the work plan by January 15, 2020. The utility stakeholder group must 
44.31 	meet regularly at the call of the chair. Meetings of the utility stakeholder group are subject 
44.32 	to chapter 13D.

45.1 	Sec. 9. Minnesota Statutes 2016, section 216B.2422, subdivision 1, is amended to read:
45.2 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
45.3 	subdivision have the meanings given them.
45.4 	(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more 
45.5 	of electric power and serving, either directly or indirectly, the needs of 10,000 retail 
45.6 	customers in Minnesota. Utility does not include federal power agencies.
45.7 	(c) "Renewable energy" means electricity generated through use of any of the following 
45.8 	resources:
45.9 	(1) wind;
45.10 	(2) solar;
45.11 	(3) geothermal;
45.12 	(4) hydro;
45.13 	(5) trees or other vegetation;
45.14 	(6) landfill gas; or
45.15 	(7) predominantly organic components of wastewater effluent, sludge, or related 
45.16 	by-products from publicly owned treatment works, but not including incineration of 
45.17 	wastewater sludge.
45.18 	(d) "Resource plan" means a set of resource options that a utility could use to meet the 
45.19 	service needs of its customers over a forecast period, including an explanation of the supply 
45.20 	and demand circumstances under which, and the extent to which, each resource option 
45.21 	would be used to meet those service needs. These resource options include using, 
45.22 	refurbishing, and constructing utility plant and equipment, buying power generated by other 
45.23 	entities, controlling customer loads, and implementing customer energy conservation.
45.24 	(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating 
45.25 	resource of 30 megawatts or greater.
45.26 	(f) "Energy storage system" means a commercially available technology that:
45.27 	(1) uses mechanical, chemical, or thermal processes to:
45.28 	(i) store energy, including energy generated from renewable resources and energy that 
45.29 	would otherwise be wasted, and deliver the stored energy for use at a later time; or
45.30 	(ii) store thermal energy for direct use for heating or cooling at a later time in a manner 
45.31 	that reduces the demand for electricity at the later time;
46.1 	(2) is composed of stationary equipment;
46.2 	(3) if being used for electric grid benefits, is operationally visible and capable of being 
46.3 	controlled by the distribution or transmission entity managing it, to enable and optimize the 
46.4 	safe and reliable operation of the electric system; and
46.5 	(4) achieves any of the following:
46.6 	(i) reduces peak or electrical demand;
46.7 	(ii) defers the need or substitutes for an investment in electric generation, transmission, 
46.8 	or distribution assets;
46.9 	(iii) improves the reliable operation of the electrical transmission or distribution systems, 
46.10 	while ensuring transmission or distribution needs are not created; or
46.11 	(iv) lowers customer costs by storing energy when the cost of generating or purchasing 
46.12 	it is low and delivering it to customers when those costs are high.

46.13 	EFFECTIVE DATE. This section is effective June 1, 2018.

46.14 	Sec. 10. Minnesota Statutes 2016, section 216B.2422, is amended by adding a subdivision 
46.15 	to read:
46.16 		Subd. 7.Energy storage systems assessment. (a) Each public utility required to file a 
46.17 	resource plan under subdivision 2 must include in the filing an assessment of energy storage 
46.18 	systems that analyzes how the deployment of energy storage systems contributes to:
46.19 	(1) meeting identified generation and capacity needs; and
46.20 	(2) evaluating ancillary services.
46.21 	(b) The assessment must employ appropriate modeling methods to enable the analysis 
46.22 	required in paragraph (a).

46.23 	EFFECTIVE DATE. This section is effective June 1, 2018.

46.24 	Sec. 11. Minnesota Statutes 2017 Supplement, section 216B.62, subdivision 3b, is amended 
46.25 	to read:
46.26 		Subd. 3b.Assessment for department regional and national duties. In addition to 
46.27 	other assessments in subdivision 3, the department may assess up to $500,000 per fiscal 
46.28 	year for performing its duties under section 216A.07, subdivision 3a. The amount in this 
46.29 	subdivision shall be assessed to energy utilities in proportion to their respective gross 
46.30 	operating revenues from retail sales of gas or electric service within the state during the last 
47.1 	calendar year and shall be deposited into an account in the special revenue fund and is 
47.2 	appropriated to the commissioner of commerce for the purposes of section 216A.07, 
47.3 	subdivision 3a. An assessment made under this subdivision is not subject to the cap on 
47.4 	assessments provided in subdivision 3 or any other law. For the purpose of this subdivision, 
47.5 	an "energy utility" means public utilities, generation and transmission cooperative electric 
47.6 	associations, and municipal power agencies providing natural gas or electric service in the 
47.7 	state. This subdivision expires June 30, 2018 2019.

47.8 	EFFECTIVE DATE. This section is effective June 1, 2018.

47.9 	Sec. 12. Minnesota Statutes 2017 Supplement, section 216C.417, subdivision 2, is amended 
47.10 	to read:
47.11 		Subd. 2.Appropriation. (a) Unspent money remaining in the account established under 
47.12 	Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the 
47.13 	renewable development account in the special revenue fund established under Minnesota 
47.14 	Statutes, section 116C.779, subdivision 1.
47.15 	(b) There is annually appropriated from the renewable development account in the special 
47.16 	revenue fund established in Minnesota Statutes, section 116C.779, to the commissioner of 
47.17 	commerce money sufficient to make the incentive payments required under Minnesota 
47.18 	Statutes 2016, section 216C.415. Any funds appropriated under this paragraph that are 
47.19 	unexpended at the end of a fiscal yearmust be transferred to the commissioner of employment 
47.20 	and economic development as provided under section 116C.7793, subdivision 5. Any funds 
47.21 	remaining after the transfer under this paragraph cancel to the renewable development 
47.22 	account.
47.23 	(c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none of 
47.24 	this appropriation may be used for administrative costs.

47.25 	Sec. 13. Minnesota Statutes 2016, section 216D.04, is amended by adding a subdivision 
47.26 	to read:
47.27 		Subd. 5.Contact information required. (a) An operator must furnish accurate contact 
47.28 	information necessary for underground facility damage prevention and damage response 
47.29 	requested by the notification center.
47.30 	(b) The contact information for each affected operator must be available to the excavator 
47.31 	that provided notice under subdivision 1.

48.1 	Sec. 14. Laws 2017, chapter 94, article 10, section 28, is amended to read:
48.2 	Sec. 28. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR 
48.3 	THERMAL REBATES.
 48.4 	(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner 
48.5 	of a solar thermal system whose application was approved by the commissioner of commerce 
48.6 	after the effective date of this act.
48.7 	(b) Unspent money remaining in the account established under Minnesota Statutes 2014, 
48.8 	section 216C.416, as of July 2, 2017, must be transferred to the C-LEAF renewable 
48.9 	development account established under Minnesota Statutes 2016, section 116C.779, 
48.10 	subdivision 1.

48.11 	EFFECTIVE DATE. This section is effective June 1, 2018.

48.12 	Sec. 15. Laws 2017, chapter 94, article 10, section 29, is amended to read:
48.13 	Sec. 29. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF 
48.14 	UNEXPENDED GRANT FUNDS.
 48.15 	(a) No later than 30 days after the effective date of this section, the utility subject to 
48.16 	Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person 
48.17 	who received a grant funded from the renewable development account previously established 
48.18 	under that subdivision:
48.19 	(1) after January 1, 2012; and
48.20 	(2) before January 1, 2012, if the funded project remains incomplete as of the effective 
48.21 	date of this section.
48.22 	The notice must contain the provisions of this section and instructions directing grant 
48.23 	recipients how unexpended funds can be transferred to the clean energy advancement fund
48.24 	renewable development account.
48.25 	(b) A recipient of a grant from the renewable development account previously established 
48.26 	under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after 
48.27 	receiving the notice required under paragraph (a), transfer any grant funds that remain 
48.28 	unexpended as of the effective date of this section to the clean energy advancement fund
48.29 	renewable development account if, by that effective date, all of the following conditions 
48.30 	are met:
48.31 	(1) the grant was awarded more than five years before the effective date of this section;
49.1 	(2) the grant recipient has failed to obtain control of the site on which the project is to 
49.2 	be constructed;
49.3 	(3) the grant recipient has failed to secure all necessary permits or approvals from any 
49.4 	unit of government with respect to the project; and
49.5 	(4) construction of the project has not begun.
49.6 	(c) A recipient of a grant from the renewable development account previously established 
49.7 	under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds 
49.8 	that remain unexpended five years after the grant funds are received by the grant recipient 
49.9 	if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant 
49.10 	recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary 
49.11 	of the receipt of the grant funds.
49.12 	(d) A person who transfers funds to the clean energy advancement fund renewable 
49.13 	development account under this section is eligible to apply for funding from the clean energy 
49.14 	advancement fund renewable development account.

49.15 	EFFECTIVE DATE. This section is effective June 1, 2018.

49.16 	Sec. 16. BIOMASS BUSINESS COMPENSATION.
49.17 		Subdivision 1.Office of Administrative Hearings; claims process. The chief 
49.18 	administrative law judge of the Office of Administrative Hearings must name an 
49.19 	administrative law judge to administer a claims award process to compensate businesses 
49.20 	negatively affected by the sale and closure of the biomass plant identified under Minnesota 
49.21 	Statutes, section 116C.779, subdivision 1, paragraph (e). The administrative law judge may 
49.22 	establish a process, including the development of application forms, to consider claims for 
49.23 	affected businesses and issue awards to eligible businesses. An application form developed 
49.24 	for the process must, at a minimum, require the name of the business, the business address 
49.25 	and telephone number, and the name of a contact person.
49.26 		Subd. 2.Eligibility. To be eligible for compensation, an affected business must verify 
49.27 	that as of May 1, 2017, it was operating under the terms of a valid contract or provide other 
49.28 	documentation demonstrating an ongoing business relationship of preparing, supplying, or 
49.29 	transporting products, fuel, or by-products to or from either the company operating the 
49.30 	biomass plant identified under Minnesota Statutes, section 116C.779, subdivision 1, 
49.31 	paragraph (e), or a fertilizer plant integrated with the biomass plant identified under 
49.32 	Minnesota Statutes, section 116C.779, subdivision 1, paragraph (e).
50.1 		Subd. 3.Calculating award. (a) An eligible business may make a claim for compensation 
50.2 	based on decreased net revenue and the loss of value of investments in real or personal 
50.3 	property essential to business operations with the biomass plant identified under Minnesota 
50.4 	Statutes, section 116C.779, subdivision 1, paragraph (e). All such losses must be attributable 
50.5 	to the termination of the contract under Minnesota Statutes, section 216B.2424, subdivision 
50.6 	9.
50.7 	(b) When filing a claim of decreased net revenue, an eligible business must demonstrate 
50.8 	the extent of its decreased business activity by providing copies of any contracts or other 
50.9 	documentation under subdivision 2, including financial statements showing the eligible 
50.10 	business's financial performance over the past five years for supplying or managing material 
50.11 	for, or receiving material from, the biomass plant identified under Minnesota Statutes, 
50.12 	section 116C.779, subdivision 1, paragraph (e). The business must also present evidence 
50.13 	of any alternative business opportunities it has pursued or could pursue to mitigate the loss 
50.14 	of revenue from the termination of the contract, as the value of alternative opportunities 
50.15 	offsets compensation provided under this section.
50.16 	(c) In filing a claim of loss of value of investments in real or personal property, an eligible 
50.17 	business must provide:
50.18 	(1) evidence that the property was essential to fulfilling the contract with the biomass 
50.19 	plant identified under Minnesota Statutes, section 116C.779, subdivision 1, paragraph (e);
50.20 	(2) evidence that the eligible business is unable to fully repurpose the property to another 
50.21 	productive use after the termination of the contract under Minnesota Statutes, section 
50.22 	216B.2424, subdivision 9; and
50.23 	(3) documentation of the eligible business's investment in the property, minus any 
50.24 	economic depreciation.
50.25 	An eligible business must also provide a valuation of the use, sales, salvage, or scrap value 
50.26 	of the property for which the loss is claimed, as the value of the property offsets compensation 
50.27 	provided under this section.
50.28 	(d) A business seeking compensation under this section must report any payment received 
50.29 	from business interruption insurance policies, settlements, or other forms of compensation 
50.30 	related to the termination of the contract of the biomass plant identified under Minnesota 
50.31 	Statutes, section 116C.779, subdivision 1, paragraph (e). All payments identified in this 
50.32 	paragraph offset compensation provided under this section.
51.1 	(e) A business seeking compensation under this section must provide any other 
51.2 	documentation it deems appropriate, or as required by the administrative law judge, to 
51.3 	support its claim, including a narrative of the facts of the business claim that gives rise to 
51.4 	the request for compensation.
51.5 	(f) Regardless of actual losses, an award of compensation must not exceed the average 
51.6 	of the eligible business's annual net revenue generated from a contract or business relationship 
51.7 	with the biomass plant identified under Minnesota Statutes, section 116C.779, subdivision 
51.8 	1, paragraph (e), for the past five years, multiplied by two.
51.9 	(g) Minnesota Statutes, section 13.591, applies to data submitted by a business requesting 
51.10 	compensation under this section.
51.11 		Subd. 4.Priority. (a) The administrative law judge may give priority to claims by eligible 
51.12 	businesses that demonstrate a significant effort to:
51.13 	(1) mitigate losses resulting from the closure of the biomass plant identified under 
51.14 	Minnesota Statutes, section 116C.779, subdivision 1, paragraph (e); or
51.15 	(2) repurpose the business for another use through retasking and retooling.
51.16 	(b) The administrative law judge must consider whether a business requests compensation 
51.17 	for a total business loss without mitigation efforts when determining awards under this 
51.18 	section.
51.19 		Subd. 5.Amount of claim. Any claim is limited by and proportional to the amount 
51.20 	provided for compensation in the biomass business compensation fund established in section 
51.21 	17, and the number of claimants.
51.22 		Subd. 6.Deadlines. The administrative law judge must make an application process for 
51.23 	compensation available by August 1, 2018. A business seeking to submit a request for 
51.24 	compensation under this section must file claims with the administrative law judge within 
51.25 	60 days following closure of the biomass plant. The administrative law judge must issue 
51.26 	award determination orders within 180 days after the deadline for filing claims.
51.27 		Subd. 7.Appeals. Orders issued by the administrative law judge under this section are 
51.28 	final. An order denying compensation claimed under this section is subject to the contested 
51.29 	case review procedures under Minnesota Statutes, chapter 14.
51.30 		Subd. 8.Expiration. This section expires June 30, 2021.

51.31 	EFFECTIVE DATE. This section is effective June 1, 2018.

52.1 	Sec. 17. BIOMASS BUSINESS COMPENSATION ACCOUNT.
52.2 		Subdivision 1.Account established. A biomass business compensation account is 
52.3 	established as a separate account in the special revenue fund in the state treasury. 
52.4 	Appropriations and transfers to the account must be credited to the account. Earnings, such 
52.5 	as interest, and any other earnings arising from the assets of the account are credited to the 
52.6 	account. Funds remaining in the account as of December 31, 2020, must be transferred to 
52.7 	the renewable development account established under Minnesota Statutes, section 116C.779.
52.8 		Subd. 2.Funding for the special account. Notwithstanding Minnesota Statutes, section 
52.9 	116C.779, subdivision 1, paragraph (k), on July 1, 2019, $40,000,000 must be transferred 
52.10 	from the renewable development account under Minnesota Statutes, section 116C.779, to 
52.11 	the biomass business compensation account established under subdivision 1. The transferred 
52.12 	funds are appropriated to pay eligible obligations under the biomass business compensation 
52.13 	program established under section 16.
52.14 		Subd. 3.Payment of expenses. Beginning on July 1, 2019, the chief administrative law 
52.15 	judge must certify to the commissioner of management and budget the total costs incurred 
52.16 	to administer the biomass business compensation claims process. The commissioner of 
52.17 	management and budget must transfer an amount equal to the certified costs incurred for 
52.18 	biomass business compensation claim activities from the renewable development account 
52.19 	under Minnesota Statutes, section 116C.779, and deposit it to the administrative hearings 
52.20 	account under Minnesota Statutes, section 14.54. Transfers may occur quarterly, based on 
52.21 	quarterly cost and revenue reports, throughout the fiscal year, with final certification and 
52.22 	reconciliation after each fiscal year. The total amount transferred under this subdivision 
52.23 	must not exceed $200,000.
52.24 		Subd. 4.Expiration. This section expires June 30, 2021.

52.25 	EFFECTIVE DATE. This section is effective June 1, 2018.

52.26 	Sec. 18. REPORT; COST-BENEFIT ANALYSIS OF ENERGY STORAGE 
52.27 	SYSTEMS.
 52.28 	(a) The commissioner of commerce must contract with an independent consultant selected 
52.29 	through a request for proposal process to produce a report analyzing the potential costs and 
52.30 	benefits of energy storage systems, as defined in Minnesota Statutes, section 216B.2422, 
52.31 	subdivision 1, in Minnesota. The study may also include scenarios examining energy storage 
52.32 	systems that are not capable of being controlled by a utility. The commissioner must engage 
53.1 	a broad group of Minnesota stakeholders, including electric utilities and others, to develop 
53.2 	and provide information for the report. The study must:
53.3 	(1) identify and measure the different potential costs and savings produced by energy 
53.4 	storage system deployment, including but not limited to:
53.5 	(i) generation, transmission, and distribution facilities asset deferral or substitution;
53.6 	(ii) impacts on ancillary services costs;
53.7 	(iii) impacts on transmission and distribution congestion;
53.8 	(iv) impacts on peak power costs;
53.9 	(v) impacts on emergency power supplies during outages;
53.10 	(vi) impacts on curtailment of renewable energy generators; and
53.11 	(vii) reduced greenhouse gas emissions;
53.12 	(2) analyze and estimate the:
53.13 	(i) costs and savings to customers that deploy energy storage systems;
53.14 	(ii) impact on the utility's ability to integrate renewable resources;
53.15 	(iii) impact on grid reliability and power quality; and
53.16 	(iv) effect on retail electric rates over the useful life of a given energy storage system 
53.17 	compared to providing the same services using other facilities or resources;
53.18 	(3) consider the findings of analysis conducted by the Midcontinent Independent System 
53.19 	Operator on energy storage capacity accreditation and participation in regional energy 
53.20 	markets, including updates of the analysis; and
53.21 	(4) include case studies of existing energy storage applications currently providing the 
53.22 	benefits described in clauses (1) and (2).
53.23 	(b) By May 1, 2019, the commissioner of commerce must submit the study to the chairs 
53.24 	and ranking minority members of the senate and house of representatives committees with 
53.25 	jurisdiction over energy policy and finance.

53.26 	Sec. 19.  REPEALER.
 53.27 	Minnesota Statutes 2016, section 216B.2423, is repealed.

53.28 	EFFECTIVE DATE. This section is effective June 1, 2018.

54.1 	ARTICLE 6
54.2 	JOBS AND ECONOMIC GROWTH

54.3	Section 1. APPROPRIATIONS.
 	
54.4 	The sums shown in the columns marked "Appropriations" are added to the appropriations 
54.5 	in Laws 2017, chapter 94, and appropriated to the agencies and for the purposes specified 
54.6 	in this article. The appropriations are from the general fund, or another named fund, and 
54.7 	are available for the fiscal year indicated for each purpose. The figures "2018" and "2019" 
54.8 	used in this article mean that the addition to the appropriations listed under them are available 
54.9 	for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The first year" is 
54.10 	fiscal year 2018. "The second year" is fiscal year 2019.

54.11				APPROPRIATIONS
	
54.12				Available for the Year
	
54.13				Ending June 30
	
54.14					2018
		2019

54.15
54.16	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

54.17	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	16,550,000

54.18	Appropriations by Fund
	
54.19		2018
	2019
	
54.20	General
	-0-
	16,500,000
	
54.21
54.22	Workforce 
Development
	-0-
	50,000
	
54.23 	The amounts that may be spent for each 
54.24 	purpose are specified in the following 
54.25 	subdivisions.

54.26	Subd. 2.Business and Community Development
 		-0-
		1,500,000
	
54.27 	$1,500,000 in fiscal year 2019 is for a grant 
54.28 	to the city of Cambridge for costs associated 
54.29 	with relocating and constructing a propane 
54.30 	distribution facility and for costs associated 
54.31 	with demolition, cleanup and restoration of 
54.32 	the existing propane facility. Eligible costs 
54.33 	include: land acquisition, site preparation and 
54.34 	improvements, moving expenses, building 
55.1 	construction, rail construction, rail switch 
55.2 	construction, demolition, environmental 
55.3 	remediation, engineering, and other necessary 
55.4 	site improvements. This is a onetime 
55.5 	appropriation and is available until the project 
55.6 	is completed or abandoned subject to 
55.7 	Minnesota Statutes, section 16A.642.

55.8	Subd. 3.Broadband Development
 		-0-
		15,000,000
	
55.9 	$15,000,000 in fiscal year 2019 is for transfer 
55.10 	to the border-to-border broadband fund 
55.11 	account in the special revenue fund established 
55.12 	under Minnesota Statutes, section 116J.396 
55.13 	and may be used for purposes provided in 
55.14 	Minnesota Statutes, section 116J.395. This 
55.15 	appropriation is onetime and is available until 
55.16 	spent. Of this appropriation, up to three 
55.17 	percent is for costs incurred by the 
55.18 	commissioner to administer Minnesota 
55.19 	Statutes, section 116J.395. Administrative 
55.20 	costs may include the following activities 
55.21 	related to measuring progress toward the 
55.22 	state's broadband goals established in 
55.23 	Minnesota Statutes, section 237.012:
55.24 	(1) collecting broadband deployment data from 
55.25 	Minnesota providers, verifying its accuracy 
55.26 	through on-the-ground testing, and creating 
55.27 	state and county maps available to the public 
55.28 	showing the availability of broadband service 
55.29 	at various upload and download speeds 
55.30 	throughout Minnesota;
55.31 	(2) analyzing the deployment data collected 
55.32 	to help inform future investments in broadband 
55.33 	infrastructure; and
56.1 	(3) conducting business and residential surveys 
56.2 	that measure broadband adoption and use in 
56.3 	the state.
56.4 	Data provided by a broadband provider under 
56.5 	this subdivision is nonpublic data under 
56.6 	Minnesota Statutes, section 13.02, subdivision 
56.7 	9. Maps produced under this subdivision are 
56.8 	public data under Minnesota Statutes, section 
56.9 	13.03.

56.10	Subd. 4.Workforce Development
 		-0-
		50,000
	
56.11 	$50,000 in fiscal year 2019 is from the 
56.12 	workforce development fund for a grant to the 
56.13 	Cook County Higher Education Board to 
56.14 	provide educational programming and 
56.15 	academic support services to remote regions 
56.16 	in northeastern Minnesota. This is a onetime 
56.17 	appropriation and is in addition to other funds 
56.18 	previously appropriated to the board.

56.19	Sec. 3. DEPARTMENT OF COMMERCE

56.20	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	150,000

56.21	Appropriations by Fund
	
56.22		2018
	2019
	
56.23	Special Revenue
	-0-
	150,000

56.24	Subd. 2.Energy Resources
 	$
	-0-
	$
	150,000

56.25	Appropriations by Fund
	
56.26		2018
	2019
	
56.27	Special Revenue
	-0-
	150,000
	
56.28 	$150,000 the second year is from the 
56.29 	renewable development account in the special 
56.30 	revenue fund established in Minnesota 
56.31 	Statutes, section 116C.779, subdivision 1, to 
56.32 	conduct an energy storage systems cost-benefit 
56.33 	analysis. This is a onetime appropriation.

57.1 	Sec. 4. Laws 2017, chapter 94, article 1, section 2, subdivision 2, as amended by Laws 
57.2 	2017, First Special Session chapter 7, section 2, is amended to read:

57.457.3
	Subd. 2.Business and Community Development
 	$
	46,074,000
	$
	40,935,000
39,435,000

57.5	Appropriations by Fund
	
57.757.6
	General
	$43,363,000
	$38,424,000
$36,924,000
	
57.8	Remediation
	$700,000
	$700,000
	
57.957.10
	Workforce 
Development
	$1,861,000
	$1,811,000
	
57.11	Special Revenue
	$150,000
	-0-
	
57.12 	(a) $4,195,000 each year is for the Minnesota 
57.13 	job skills partnership program under 
57.14 	Minnesota Statutes, sections 116L.01 to 
57.15 	116L.17. If the appropriation for either year 
57.16 	is insufficient, the appropriation for the other 
57.17 	year is available. This appropriation is 
57.18 	available until spent.
57.19 	(b) $750,000 each year is for grants to the 
57.20 	Neighborhood Development Center for small 
57.21 	business programs:
57.22 	(1) training, lending, and business services;
57.23 	(2) model outreach and training in greater 
57.24 	Minnesota; and
57.25 	(3) development of new business incubators.
57.26 	This is a onetime appropriation.
57.27 	(c) $1,175,000 each year is for a grant to the 
57.28 	Metropolitan Economic Development 
57.29 	Association (MEDA) for statewide business 
57.30 	development and assistance services, including 
57.31 	services to entrepreneurs with businesses that 
57.32 	have the potential to create job opportunities 
57.33 	for unemployed and underemployed people, 
57.34 	with an emphasis on minority-owned 
57.35 	businesses. This is a onetime appropriation.
58.1 	(d) $125,000 each year is for a grant to the 
58.2 	White Earth Nation for the White Earth Nation 
58.3 	Integrated Business Development System to 
58.4 	provide business assistance with workforce 
58.5 	development, outreach, technical assistance, 
58.6 	infrastructure and operational support, 
58.7 	financing, and other business development 
58.8 	activities. This is a onetime appropriation.
58.9 	(e)(1) $12,500,000 each year is for the 
58.10 	Minnesota investment fund under Minnesota 
58.11 	Statutes, section 116J.8731. Of this amount, 
58.12 	the commissioner of employment and 
58.13 	economic development may use up to three 
58.14 	percent for administration and monitoring of 
58.15 	the program. This appropriation is available 
58.16 	until spent.
58.17 	(2) Of the amount appropriated in fiscal year 
58.18 	2018, $4,000,000 is for a loan to construct and 
58.19 	equip a wholesale electronic component 
58.20 	distribution center investing a minimum of 
58.21 	$200,000,000 and constructing a facility at 
58.22 	least 700,000 square feet in size. Loan funds 
58.23 	may be used for purchases of materials, 
58.24 	supplies, and equipment for the construction 
58.25 	of the facility and are available from July 1, 
58.26 	2017, to June 30, 2021. The commissioner of 
58.27 	employment and economic development shall 
58.28 	forgive the loan after verification that the 
58.29 	project has satisfied performance goals and 
58.30 	contractual obligations as required under 
58.31 	Minnesota Statutes, section 116J.8731.
58.32 	(3) Of the amount appropriated in fiscal year 
58.33 	2018, $700,000 is for a loan to extend an 
58.34 	effluent pipe that will deliver reclaimed water 
58.35 	to an innovative waste-to-biofuel project 
59.1 	investing a minimum of $150,000,000 and 
59.2 	constructing a facility that is designed to 
59.3 	process approximately 400,000 tons of waste 
59.4 	annually. Loan funds are available until June 
59.5 	30, 2021.
59.6 	(4) Of the amount appropriated in fiscal year 
59.7 	2019, $1,000,000 is for a grant to the city of 
59.8 	Minnetonka for a forgivable loan to a 
59.9 	high-risk, high-return jobs retention and 
59.10 	creation initiative to be conducted by a local 
59.11 	business that produces lactic acid/lactate, to 
59.12 	help grow and expand the bioeconomy in 
59.13 	Minnesota. The grant under this section is not 
59.14 	subject to the limitations under Minnesota 
59.15 	Statutes, section 116J.8731, subdivision 5, or 
59.16 	the performance goals, contractual obligations, 
59.17 	and other requirements under Minnesota 
59.18 	Statutes, sections 116J.8731, subdivision 7; 
59.19 	116J.993; and 116J.994. Grant funds are 
59.20 	available until June 30, 2021.
59.21 	(5) Of the amount appropriated in fiscal year 
59.22 	2019, $1,000,000 is for a loan to a paper mill 
59.23 	in Duluth to support the operation and 
59.24 	manufacture of packaging paper grades. The 
59.25 	company that owns the paper mill must spend 
59.26 	$15,000,000 on expansion activities by 
59.27 	December 31, 2019, in order to be eligible to 
59.28 	receive funds in this appropriation. This 
59.29 	appropriation is onetime and may be used for 
59.30 	the mill's equipment, materials, supplies, and 
59.31 	other operating expenses. The commissioner 
59.32 	of employment and economic development 
59.33 	shall forgive a portion of the loan each year 
59.34 	after verification that the mill has retained 195 
59.35 	full-time jobs over a period of five years and 
60.1 	has satisfied other performance goals and 
60.2 	contractual obligations as required under 
60.3 	Minnesota Statutes, section 116J.8731.
60.4 	(f) $8,500,000 each year is in fiscal year 2018 
60.5 	and $7,000,000 in fiscal year 2019 are for the 
60.6 	Minnesota job creation fund under Minnesota 
60.7 	Statutes, section 116J.8748. Of this amount, 
60.8 	the commissioner of employment and 
60.9 	economic development may use up to three 
60.10 	percent for administrative expenses. This 
60.11 	appropriation is available until expended. In 
60.12 	fiscal year 2020 and beyond, the base amount 
60.13 	is $8,000,000.
60.14 	(g) $1,647,000 each year is for contaminated 
60.15 	site cleanup and development grants under 
60.16 	Minnesota Statutes, sections 116J.551 to 
60.17 	116J.558. This appropriation is available until 
60.18 	spent. In fiscal year 2020 and beyond, the base 
60.19 	amount is $1,772,000.
60.20 	(h) $12,000 each year is for a grant to the 
60.21 	Upper Minnesota Film Office.
60.22 	(i) $163,000 each year is for the Minnesota 
60.23 	Film and TV Board. The appropriation in each 
60.24 	year is available only upon receipt by the 
60.25 	board of $1 in matching contributions of 
60.26 	money or in-kind contributions from nonstate 
60.27 	sources for every $3 provided by this 
60.28 	appropriation, except that each year up to 
60.29 	$50,000 is available on July 1 even if the 
60.30 	required matching contribution has not been 
60.31 	received by that date.
60.32 	(j) $500,000 each year is from the general fund 
60.33 	for a grant to the Minnesota Film and TV 
60.34 	Board for the film production jobs program 
61.1 	under Minnesota Statutes, section 116U.26. 
61.2 	This appropriation is available until June 30, 
61.3 	2021.
61.4 	(k) $139,000 each year is for a grant to the 
61.5 	Rural Policy and Development Center under 
61.6 	Minnesota Statutes, section 116J.421.
61.7 	(l)(1) $1,300,000 each year is for the greater 
61.8 	Minnesota business development public 
61.9 	infrastructure grant program under Minnesota 
61.10 	Statutes, section 116J.431. This appropriation 
61.11 	is available until spent. If the appropriation 
61.12 	for either year is insufficient, the appropriation 
61.13 	for the other year is available. In fiscal year 
61.14 	2020 and beyond, the base amount is 
61.15 	$1,787,000. Funds available under this 
61.16 	paragraph may be used for site preparation of 
61.17 	property owned and to be used by private 
61.18 	entities.
61.19 	(2) Of the amounts appropriated, $1,600,000 
61.20 	in fiscal year 2018 is for a grant to the city of 
61.21 	Thief River Falls to support utility extensions, 
61.22 	roads, and other public improvements related 
61.23 	to the construction of a wholesale electronic 
61.24 	component distribution center at least 700,000 
61.25 	square feet in size and investing a minimum 
61.26 	of $200,000,000. Notwithstanding Minnesota 
61.27 	Statutes, section 116J.431, a local match is 
61.28 	not required. Grant funds are available from 
61.29 	July 1, 2017, to June 30, 2021.
61.30 	(m) $876,000 the first year and $500,000 the 
61.31 	second year are for the Minnesota emerging 
61.32 	entrepreneur loan program under Minnesota 
61.33 	Statutes, section 116M.18. Funds available 
61.34 	under this paragraph are for transfer into the 
61.35 	emerging entrepreneur program special 
62.1 	revenue fund account created under Minnesota 
62.2 	Statutes, chapter 116M, and are available until 
62.3 	spent. Of this amount, up to four percent is for 
62.4 	administration and monitoring of the program. 
62.5 	In fiscal year 2020 and beyond, the base 
62.6 	amount is $1,000,000.
62.7 	(n) $875,000 each year is for a grant to 
62.8 	Enterprise Minnesota, Inc. for the small 
62.9 	business growth acceleration program under 
62.10 	Minnesota Statutes, section 116O.115. This 
62.11 	is a onetime appropriation.
62.12 	(o) $250,000 in fiscal year 2018 is for a grant 
62.13 	to the Minnesota Design Center at the 
62.14 	University of Minnesota for the greater 
62.15 	Minnesota community design pilot project.
62.16 	(p) $275,000 in fiscal year 2018 is from the 
62.17 	general fund to the commissioner of 
62.18 	employment and economic development for 
62.19 	a grant to Community and Economic 
62.20 	Development Associates (CEDA) for an 
62.21 	economic development study and analysis of 
62.22 	the effects of current and projected economic 
62.23 	growth in southeast Minnesota. CEDA shall 
62.24 	report on the findings and recommendations 
62.25 	of the study to the committees of the house of 
62.26 	representatives and senate with jurisdiction 
62.27 	over economic development and workforce 
62.28 	issues by February 15, 2019. All results and 
62.29 	information gathered from the study shall be 
62.30 	made available for use by cities in southeast 
62.31 	Minnesota by March 15, 2019. This 
62.32 	appropriation is available until June 30, 2020.
62.33 	(q) $2,000,000 in fiscal year 2018 is for a 
62.34 	grant to Pillsbury United Communities for 
62.35 	construction and renovation of a building in 
63.1 	north Minneapolis for use as the "North 
63.2 	Market" grocery store and wellness center, 
63.3 	focused on offering healthy food, increasing 
63.4 	health care access, and providing job creation 
63.5 	and economic opportunities in one place for 
63.6 	children and families living in the area. To the 
63.7 	extent possible, Pillsbury United Communities 
63.8 	shall employ individuals who reside within a 
63.9 	five mile radius of the grocery store and 
63.10 	wellness center. This appropriation is not 
63.11 	available until at least an equal amount of 
63.12 	money is committed from nonstate sources. 
63.13 	This appropriation is available until the project 
63.14 	is completed or abandoned, subject to 
63.15 	Minnesota Statutes, section 16A.642.
63.16 	(r) $1,425,000 each year is for the business 
63.17 	development competitive grant program. Of 
63.18 	this amount, up to five percent is for 
63.19 	administration and monitoring of the business 
63.20 	development competitive grant program. All 
63.21 	grant awards shall be for two consecutive 
63.22 	years. Grants shall be awarded in the first year.
63.23 	(s) $875,000 each year is for the host 
63.24 	community economic development grant 
63.25 	program established in Minnesota Statutes, 
63.26 	section 116J.548.
63.27 	(t) $700,000 each year is from the remediation 
63.28 	fund for contaminated site cleanup and 
63.29 	development grants under Minnesota Statutes, 
63.30 	sections 116J.551 to 116J.558. This 
63.31 	appropriation is available until spent.
63.32 	(u) $161,000 each year is from the workforce 
63.33 	development fund for a grant to the Rural 
63.34 	Policy and Development Center. This is a 
63.35 	onetime appropriation.
64.1 	(v) $300,000 each year is from the workforce 
64.2 	development fund for a grant to Enterprise 
64.3 	Minnesota, Inc. This is a onetime 
64.4 	appropriation.
64.5 	(w) $50,000 in fiscal year 2018 is from the 
64.6 	workforce development fund for a grant to 
64.7 	Fighting Chance for behavioral intervention 
64.8 	programs for at-risk youth.
64.9 	(x) $1,350,000 each year is from the 
64.10 	workforce development fund for job training 
64.11 	grants under Minnesota Statutes, section 
64.12 	116L.42.
64.13 	(y)(1) $519,000 in fiscal year 2018 is for 
64.14 	grants to local communities to increase the 
64.15 	supply of quality child care providers in order 
64.16 	to support economic development. At least 60 
64.17 	percent of grant funds must go to communities 
64.18 	located outside of the seven-county 
64.19 	metropolitan area, as defined under Minnesota 
64.20 	Statutes, section 473.121, subdivision 2. Grant 
64.21 	recipients must obtain a 50 percent nonstate 
64.22 	match to grant funds in either cash or in-kind 
64.23 	contributions. Grant funds available under this 
64.24 	paragraph must be used to implement solutions 
64.25 	to reduce the child care shortage in the state 
64.26 	including but not limited to funding for child 
64.27 	care business start-ups or expansions, training, 
64.28 	facility modifications or improvements 
64.29 	required for licensing, and assistance with 
64.30 	licensing and other regulatory requirements. 
64.31 	In awarding grants, the commissioner must 
64.32 	give priority to communities that have 
64.33 	documented a shortage of child care providers 
64.34 	in the area.
65.1 	(2) Within one year of receiving grant funds, 
65.2 	grant recipients must report to the 
65.3 	commissioner on the outcomes of the grant 
65.4 	program including but not limited to the 
65.5 	number of new providers, the number of 
65.6 	additional child care provider jobs created, the 
65.7 	number of additional child care slots, and the 
65.8 	amount of local funds invested.
65.9 	(3) By January 1 of each year, starting in 2019, 
65.10 	the commissioner must report to the standing 
65.11 	committees of the legislature having 
65.12 	jurisdiction over child care and economic 
65.13 	development on the outcomes of the program 
65.14 	to date.
65.15 	(z) $319,000 in fiscal year 2018 is from the 
65.16 	general fund for a grant to the East Phillips 
65.17 	Improvement Coalition to create the East 
65.18 	Phillips Neighborhood Institute (EPNI) to 
65.19 	expand culturally tailored resources that 
65.20 	address small business growth and create 
65.21 	green jobs. The grant shall fund the 
65.22 	collaborative work of Tamales y Bicicletas, 
65.23 	Little Earth of the United Tribes, a nonprofit 
65.24 	serving East Africans, and other coalition 
65.25 	members towards developing EPNI as a 
65.26 	community space to host activities including, 
65.27 	but not limited to, creation and expansion of 
65.28 	small businesses, culturally specific 
65.29 	entrepreneurial activities, indoor urban 
65.30 	farming, job training, education, and skills 
65.31 	development for residents of this low-income, 
65.32 	environmental justice designated 
65.33 	neighborhood. Eligible uses for grant funds 
65.34 	include, but are not limited to, planning and 
65.35 	start-up costs, staff and consultant costs, 
66.1 	building improvements, rent, supplies, utilities, 
66.2 	vehicles, marketing, and program activities. 
66.3 	The commissioner shall submit a report on 
66.4 	grant activities and quantifiable outcomes to 
66.5 	the committees of the house of representatives 
66.6 	and the senate with jurisdiction over economic 
66.7 	development by December 15, 2020. This 
66.8 	appropriation is available until June 30, 2020.
66.9 	(aa) $150,000 the first year is from the 
66.10 	renewable development account in the special 
66.11 	revenue fund established in Minnesota 
66.12 	Statutes, section 116C.779, subdivision 1, to 
66.13 	conduct the biomass facility closure economic 
66.14 	impact study.
66.15 	(bb)(1) $300,000 in fiscal year 2018 is for a 
66.16 	grant to East Side Enterprise Center (ESEC) 
66.17 	to expand culturally tailored resources that 
66.18 	address small business growth and job 
66.19 	creation. This appropriation is available until 
66.20 	June 30, 2020. The appropriation shall fund 
66.21 	the work of African Economic Development 
66.22 	Solutions, the Asian Economic Development 
66.23 	Association, the Dayton's Bluff Community 
66.24 	Council, and the Latino Economic 
66.25 	Development Center in a collaborative 
66.26 	approach to economic development that is 
66.27 	effective with smaller, culturally diverse 
66.28 	communities that seek to increase the 
66.29 	productivity and success of new immigrant 
66.30 	and minority populations living and working 
66.31 	in the community. Programs shall provide 
66.32 	minority business growth and capacity 
66.33 	building that generate wealth and jobs creation 
66.34 	for local residents and business owners on the 
66.35 	East Side of St. Paul.
67.1 	(2) In fiscal year 2019 ESEC shall use funds 
67.2 	to share its integrated service model and 
67.3 	evolving collaboration principles with civic 
67.4 	and economic development leaders in greater 
67.5 	Minnesota communities which have diverse 
67.6 	populations similar to the East Side of St. Paul. 
67.7 	ESEC shall submit a report of activities and 
67.8 	program outcomes, including quantifiable 
67.9 	measures of success annually to the house of 
67.10 	representatives and senate committees with 
67.11 	jurisdiction over economic development.
67.12 	(cc) $150,000 in fiscal year 2018 is for a grant 
67.13 	to Mille Lacs County for the purpose of 
67.14 	reimbursement grants to small resort 
67.15 	businesses located in the city of Isle with less 
67.16 	than $350,000 in annual revenue, at least four 
67.17 	rental units, which are open during both 
67.18 	summer and winter months, and whose 
67.19 	business was adversely impacted by a decline 
67.20 	in walleye fishing on Lake Mille Lacs.
67.21 	(dd)(1) $250,000 in fiscal year 2018 is for a 
67.22 	grant to the Small Business Development 
67.23 	Center hosted at Minnesota State University, 
67.24 	Mankato, for a collaborative initiative with 
67.25 	the Regional Center for Entrepreneurial 
67.26 	Facilitation. Funds available under this section 
67.27 	must be used to provide entrepreneur and 
67.28 	small business development direct professional 
67.29 	business assistance services in the following 
67.30 	counties in Minnesota: Blue Earth, Brown, 
67.31 	Faribault, Le Sueur, Martin, Nicollet, Sibley, 
67.32 	Watonwan, and Waseca. For the purposes of 
67.33 	this section, "direct professional business 
67.34 	assistance services" must include, but is not 
67.35 	limited to, pre-venture assistance for 
68.1 	individuals considering starting a business. 
68.2 	This appropriation is not available until the 
68.3 	commissioner determines that an equal amount 
68.4 	is committed from nonstate sources. Any 
68.5 	balance in the first year does not cancel and 
68.6 	is available for expenditure in the second year.
68.7 	(2) Grant recipients shall report to the 
68.8 	commissioner by February 1 of each year and 
68.9 	include information on the number of 
68.10 	customers served in each county; the number 
68.11 	of businesses started, stabilized, or expanded; 
68.12 	the number of jobs created and retained; and 
68.13 	business success rates in each county. By April 
68.14 	1 of each year, the commissioner shall report 
68.15 	the information submitted by grant recipients 
68.16 	to the chairs of the standing committees of the 
68.17 	house of representatives and the senate having 
68.18 	jurisdiction over economic development 
68.19 	issues.
68.20 	(ee) $500,000 in fiscal year 2018 is for the 
68.21 	central Minnesota opportunity grant program 
68.22 	established under Minnesota Statutes, section 
68.23 	116J.9922. This appropriation is available until 
68.24 	June 30, 2022.
68.25 	(ff) $25,000 each year is for the administration 
68.26 	of state aid for the Destination Medical Center 
68.27 	under Minnesota Statutes, sections 469.40 to 
68.28 	469.47.

68.29 	Sec. 5. Laws 2017, chapter 94, article 1, section 2, subdivision 3, is amended to read:

68.30	Subd. 3.Workforce Development
 	$
	31,498,000
	$
	30,231,000

68.31	Appropriations by Fund
	
68.32	General
	$6,239,000
	$5,889,000
	
68.33
68.34	Workforce 
Development
	$25,259,000
	$24,342,000
	
69.1 	(a) $500,000 each year is for the 
69.2 	youth-at-work competitive grant program 
69.3 	under Minnesota Statutes, section 116L.562. 
69.4 	Of this amount, up to five percent is for 
69.5 	administration and monitoring of the youth 
69.6 	workforce development competitive grant 
69.7 	program. All grant awards shall be for two 
69.8 	consecutive years. Grants shall be awarded in 
69.9 	the first year. In fiscal year 2020 and beyond, 
69.10 	the base amount is $750,000.
69.11 	(b) $250,000 each year is for pilot programs 
69.12 	in the workforce service areas to combine 
69.13 	career and higher education advising.
69.14 	(c) $500,000 each year is for rural career 
69.15 	counseling coordinator positions in the 
69.16 	workforce service areas and for the purposes 
69.17 	specified in Minnesota Statutes, section 
69.18 	116L.667. The commissioner of employment 
69.19 	and economic development, in consultation 
69.20 	with local workforce investment boards and 
69.21 	local elected officials in each of the service 
69.22 	areas receiving funds, shall develop a method 
69.23 	of distributing funds to provide equitable 
69.24 	services across workforce service areas.
69.25 	(d) $1,000,000 each year is for a grant to the 
69.26 	Construction Careers Foundation for the 
69.27 	construction career pathway initiative to 
69.28 	provide year-round educational and 
69.29 	experiential learning opportunities for teens 
69.30 	and young adults under the age of 21 that lead 
69.31 	to careers in the construction industry. This is 
69.32 	a onetime appropriation. Grant funds must be 
69.33 	used to:
69.34 	(1) increase construction industry exposure 
69.35 	activities for middle school and high school 
70.1 	youth, parents, and counselors to reach a more 
70.2 	diverse demographic and broader statewide 
70.3 	audience. This requirement includes, but is 
70.4 	not limited to, an expansion of programs to 
70.5 	provide experience in different crafts to youth 
70.6 	and young adults throughout the state;
70.7 	(2) increase the number of high schools in 
70.8 	Minnesota offering construction classes during 
70.9 	the academic year that utilize a multicraft 
70.10 	curriculum;
70.11 	(3) increase the number of summer internship 
70.12 	opportunities;
70.13 	(4) enhance activities to support graduating 
70.14 	seniors in their efforts to obtain employment 
70.15 	in the construction industry;
70.16 	(5) increase the number of young adults 
70.17 	employed in the construction industry and 
70.18 	ensure that they reflect Minnesota's diverse 
70.19 	workforce; and
70.20 	(6) enhance an industrywide marketing 
70.21 	campaign targeted to youth and young adults 
70.22 	about the depth and breadth of careers within 
70.23 	the construction industry.
70.24 	Programs and services supported by grant 
70.25 	funds must give priority to individuals and 
70.26 	groups that are economically disadvantaged 
70.27 	or historically underrepresented in the 
70.28 	construction industry, including but not limited 
70.29 	to women, veterans, and members of minority 
70.30 	and immigrant groups.
70.31 	(e) $1,539,000 each year from the general fund 
70.32 	and $4,604,000 each year from the workforce 
70.33 	development fund are for the Pathways to 
70.34 	Prosperity adult workforce development 
71.1 	competitive grant program. Of this amount, 
71.2 	up to four percent is for administration and 
71.3 	monitoring of the program. When awarding 
71.4 	grants under this paragraph, the commissioner 
71.5 	of employment and economic development 
71.6 	may give preference to any previous grantee 
71.7 	with demonstrated success in job training and 
71.8 	placement for hard-to-train individuals. In 
71.9 	fiscal year 2020 and beyond, the general fund 
71.10 	base amount for this program is $4,039,000.
71.11 	(f) $750,000 each year is for a competitive 
71.12 	grant program to provide grants to 
71.13 	organizations that provide support services for 
71.14 	individuals, such as job training, employment 
71.15 	preparation, internships, job assistance to 
71.16 	fathers, financial literacy, academic and 
71.17 	behavioral interventions for low-performing 
71.18 	students, and youth intervention. Grants made 
71.19 	under this section must focus on low-income 
71.20 	communities, young adults from families with 
71.21 	a history of intergenerational poverty, and 
71.22 	communities of color. Of this amount, up to 
71.23 	four percent is for administration and 
71.24 	monitoring of the program. In fiscal year 2020 
71.25 	and beyond, the base amount is $1,000,000.
71.26 	(g) $500,000 each year is for the women and 
71.27 	high-wage, high-demand, nontraditional jobs 
71.28 	grant program under Minnesota Statutes, 
71.29 	section 116L.99. Of this amount, up to five 
71.30 	percent is for administration and monitoring 
71.31 	of the program. In fiscal year 2020 and 
71.32 	beyond, the base amount is $750,000.
71.33 	(h) $500,000 each year is for a competitive 
71.34 	grant program for grants to organizations 
71.35 	providing services to relieve economic 
72.1 	disparities in the Southeast Asian community 
72.2 	through workforce recruitment, development, 
72.3 	job creation, assistance of smaller 
72.4 	organizations to increase capacity, and 
72.5 	outreach. Of this amount, up to five percent 
72.6 	is for administration and monitoring of the 
72.7 	program. In fiscal year 2020 and beyond, the 
72.8 	base amount is $1,000,000.
72.9 	(i) $250,000 each year is for a grant to the 
72.10 	American Indian Opportunities and 
72.11 	Industrialization Center, in collaboration with 
72.12 	the Northwest Indian Community 
72.13 	Development Center, to reduce academic 
72.14 	disparities for American Indian students and 
72.15 	adults. This is a onetime appropriation. The 
72.16 	grant funds may be used to provide:
72.17 	(1) student tutoring and testing support 
72.18 	services;
72.19 	(2) training in information technology;
72.20 	(3) assistance in obtaining a GED;
72.21 	(4) remedial training leading to enrollment in 
72.22 	a postsecondary higher education institution;
72.23 	(5) real-time work experience in information 
72.24 	technology fields; and
72.25 	(6) contextualized adult basic education.
72.26 	After notification to the legislature, the 
72.27 	commissioner may transfer this appropriation 
72.28 	to the commissioner of education.
72.29 	(j) $100,000 each year is for the getting to 
72.30 	work grant program. This is a onetime 
72.31 	appropriation and is available until June 30, 
72.32 	2021.
73.1 	(k) $525,000 each year is from the workforce 
73.2 	development fund for a grant to the YWCA 
73.3 	of Minneapolis to provide economically 
73.4 	challenged individuals the job skills training, 
73.5 	career counseling, and job placement 
73.6 	assistance necessary to secure a child 
73.7 	development associate credential and to have 
73.8 	a career path in early childhood education. 
73.9 	This is a onetime appropriation.
73.10 	(l) $1,350,000 each year is from the workforce 
73.11 	development fund for a grant to the Minnesota 
73.12 	High Tech Association to support 
73.13 	SciTechsperience, a program that supports 
73.14 	science, technology, engineering, and math 
73.15 	(STEM) internship opportunities for two- and 
73.16 	four-year college students and graduate 
73.17 	students in their field of study. The internship 
73.18 	opportunities must match students with paid 
73.19 	internships within STEM disciplines at small, 
73.20 	for-profit companies located in Minnesota, 
73.21 	having fewer than 250 employees worldwide. 
73.22 	At least 300 students must be matched in the 
73.23 	first year and at least 350 students must be 
73.24 	matched in the second year. No more than 15 
73.25 	percent of the hires may be graduate students. 
73.26 	Selected hiring companies shall receive from 
73.27 	the grant 50 percent of the wages paid to the 
73.28 	intern, capped at $2,500 per intern. The 
73.29 	program must work toward increasing the 
73.30 	participation of women or other underserved 
73.31 	populations. This is a onetime appropriation.
73.32 	(m) $450,000 each year is from the workforce 
73.33 	development fund for grants to Minnesota 
73.34 	Diversified Industries, Inc. to provide 
73.35 	progressive development and employment 
74.1 	opportunities for people with disabilities. This 
74.2 	is a onetime appropriation.
74.3 	(n) $500,000 each year is from the workforce 
74.4 	development fund for a grant to Resource, Inc. 
74.5 	to provide low-income individuals career 
74.6 	education and job skills training that are fully 
74.7 	integrated with chemical and mental health 
74.8 	services. This is a onetime appropriation.
74.9 	(o) $750,000 each year is from the workforce 
74.10 	development fund for a grant to the Minnesota 
74.11 	Alliance of Boys and Girls Clubs to administer 
74.12 	a statewide project of youth job skills and 
74.13 	career development. This project, which may 
74.14 	have career guidance components including 
74.15 	health and life skills, is designed to encourage, 
74.16 	train, and assist youth in early access to 
74.17 	education and job-seeking skills, work-based 
74.18 	learning experience including career pathways 
74.19 	in STEM learning, career exploration and 
74.20 	matching, and first job placement through 
74.21 	local community partnerships and on-site job 
74.22 	opportunities. This grant requires a 25 percent 
74.23 	match from nonstate resources. This is a 
74.24 	onetime appropriation.
74.25 	(p) $215,000 each year is from the workforce 
74.26 	development fund for grants to Big Brothers, 
74.27 	Big Sisters of the Greater Twin Cities for 
74.28 	workforce readiness, employment exploration, 
74.29 	and skills development for youth ages 12 to 
74.30 	21. The grant must serve youth in the Twin 
74.31 	Cities, Central Minnesota, and Southern 
74.32 	Minnesota Big Brothers, Big Sisters chapters. 
74.33 	This is a onetime appropriation.
74.34 	(q) $250,000 each year is from the workforce 
74.35 	development fund for a grant to YWCA St. 
75.1 	Paul to provide job training services and 
75.2 	workforce development programs and 
75.3 	services, including job skills training and 
75.4 	counseling. This is a onetime appropriation.
75.5 	(r) $1,000,000 each year is from the workforce 
75.6 	development fund for a grant to EMERGE 
75.7 	Community Development, in collaboration 
75.8 	with community partners, for services 
75.9 	targeting Minnesota communities with the 
75.10 	highest concentrations of African and 
75.11 	African-American joblessness, based on the 
75.12 	most recent census tract data, to provide 
75.13 	employment readiness training, credentialed 
75.14 	training placement, job placement and 
75.15 	retention services, supportive services for 
75.16 	hard-to-employ individuals, and a general 
75.17 	education development fast track and adult 
75.18 	diploma program. This is a onetime 
75.19 	appropriation.
75.20 	(s) $1,000,000 each year is from the workforce 
75.21 	development fund for a grant to the 
75.22 	Minneapolis Foundation for a strategic 
75.23 	intervention program designed to target and 
75.24 	connect program participants to meaningful, 
75.25 	sustainable living-wage employment. This is 
75.26 	a onetime appropriation.
75.27 	(t) $750,000 each year is from the workforce 
75.28 	development fund for a grant to Latino 
75.29 	Communities United in Service (CLUES) to 
75.30 	expand culturally tailored programs that 
75.31 	address employment and education skill gaps 
75.32 	for working parents and underserved youth by 
75.33 	providing new job skills training to stimulate 
75.34 	higher wages for low-income people, family 
75.35 	support systems designed to reduce 
76.1 	intergenerational poverty, and youth 
76.2 	programming to promote educational 
76.3 	advancement and career pathways. At least 
76.4 	50 percent of this amount must be used for 
76.5 	programming targeted at greater Minnesota. 
76.6 	This is a onetime appropriation.
76.7 	(u) $600,000 each year is from the workforce 
76.8 	development fund for a grant to Ujamaa Place 
76.9 	for job training, employment preparation, 
76.10 	internships, education, training in the 
76.11 	construction trades, housing, and 
76.12 	organizational capacity building. This is a 
76.13 	onetime appropriation.
76.14 	(v) $1,297,000 in the first year and $800,000 
76.15 	in the second year are from the workforce 
76.16 	development fund for performance grants 
76.17 	under Minnesota Statutes, section 116J.8747, 
76.18 	to Twin Cities R!SE to provide training to 
76.19 	hard-to-train individuals. Of the amounts 
76.20 	appropriated, $497,000 in fiscal year 2018 is 
76.21 	for a grant to Twin Cities R!SE, in 
76.22 	collaboration with Metro Transit and Hennepin 
76.23 	Technical College for the Metro Transit 
76.24 	technician training program. This is a onetime 
76.25 	appropriation and funds are available until 
76.26 	June 30, 2020.
76.27 	(w) $230,000 in fiscal year 2018 is from the 
76.28 	workforce development fund for a grant to the 
76.29 	Bois Forte Tribal Employment Rights Office 
76.30 	(TERO) for an American Indian workforce 
76.31 	development training pilot project. This is a 
76.32 	onetime appropriation and is available until 
76.33 	June 30, 2019. Funds appropriated the first 
76.34 	year are available for use in the second year 
76.35 	of the biennium.
77.1 	(x) $40,000 in fiscal year 2018 is from the 
77.2 	workforce development fund for a grant to the 
77.3 	Cook County Higher Education Board to 
77.4 	provide educational programming and 
77.5 	academic support services to remote regions 
77.6 	in northeastern Minnesota. This appropriation 
77.7 	is in addition to other funds previously 
77.8 	appropriated to the board.
77.9 	(y) $250,000 each year is from the workforce 
77.10 	development fund for a grant to Bridges to 
77.11 	Healthcare to provide career education, 
77.12 	wraparound support services, and job skills 
77.13 	training in high-demand health care fields to 
77.14 	low-income parents, nonnative speakers of 
77.15 	English, and other hard-to-train individuals, 
77.16 	helping families build secure pathways out of 
77.17 	poverty while also addressing worker 
77.18 	shortages in one of Minnesota's most 
77.19 	innovative industries. Funds may be used for 
77.20 	program expenses, including, but not limited 
77.21 	to, hiring instructors and navigators; space 
77.22 	rental; and supportive services to help 
77.23 	participants attend classes, including assistance 
77.24 	with course fees, child care, transportation, 
77.25 	and safe and stable housing. In addition, up to 
77.26 	five percent of grant funds may be used for 
77.27 	Bridges to Healthcare's administrative costs. 
77.28 	This is a onetime appropriation and is 
77.29 	available until June 30, 2020.
77.30 	(z) $500,000 each year is from the workforce 
77.31 	development fund for a grant to the Nonprofits 
77.32 	Assistance Fund to provide capacity-building 
77.33 	grants to small, culturally specific 
77.34 	organizations that primarily serve historically 
77.35 	underserved cultural communities. Grants may 
78.1 	only be awarded to nonprofit organizations 
78.2 	that have an annual organizational budget of 
78.3 	less than $500,000 and are culturally specific 
78.4 	organizations that primarily serve historically 
78.5 	underserved cultural communities. Grant funds 
78.6 	awarded must be used for:
78.7 	(1) organizational infrastructure improvement, 
78.8 	including developing database management 
78.9 	systems and financial systems, or other 
78.10 	administrative needs that increase the 
78.11 	organization's ability to access new funding 
78.12 	sources;
78.13 	(2) organizational workforce development, 
78.14 	including hiring culturally competent staff, 
78.15 	training and skills development, and other 
78.16 	methods of increasing staff capacity; or
78.17 	(3) creation or expansion of partnerships with 
78.18 	existing organizations that have specialized 
78.19 	expertise in order to increase the capacity of 
78.20 	the grantee organization to improve services 
78.21 	for the community. Of this amount, up to five 
78.22 	percent may be used by the Nonprofits 
78.23 	Assistance Fund for administration costs and 
78.24 	providing technical assistance to potential 
78.25 	grantees. This is a onetime appropriation.
78.26 	(aa) $4,050,000 each year is from the 
78.27 	workforce development fund for the 
78.28 	Minnesota youth program under Minnesota 
78.29 	Statutes, sections 116L.56 and 116L.561.
78.30 	(bb) $1,000,000 each year is from the 
78.31 	workforce development fund for the 
78.32 	youthbuild program under Minnesota Statutes, 
78.33 	sections 116L.361 to 116L.366.
79.1 	(cc) $3,348,000 each year is from the 
79.2 	workforce development fund for the "Youth 
79.3 	at Work" youth workforce development 
79.4 	competitive grant program. Of this amount, 
79.5 	up to five percent is for administration and 
79.6 	monitoring of the youth workforce 
79.7 	development competitive grant program. All 
79.8 	grant awards shall be for two consecutive 
79.9 	years. Grants shall be awarded in the first year.
79.10 	(dd) $500,000 each year is from the workforce 
79.11 	development fund for the Opportunities 
79.12 	Industrialization Center programs.
79.13 	(ee) $750,000 each year is from the workforce 
79.14 	development fund for a grant to Summit 
79.15 	Academy OIC to expand its contextualized 
79.16 	GED and employment placement program. 
79.17 	This is a onetime appropriation.
79.18 	(ff) $500,000 each year is from the workforce 
79.19 	development fund for a grant to 
79.20 	Goodwill-Easter Seals Minnesota and its 
79.21 	partners. The grant shall be used to continue 
79.22 	the FATHER Project in Rochester, Park 
79.23 	Rapids, St. Cloud, Minneapolis, and the 
79.24 	surrounding areas to assist fathers in 
79.25 	overcoming barriers that prevent fathers from 
79.26 	supporting their children economically and 
79.27 	emotionally. This is a onetime appropriation.
79.28 	(gg) $150,000 each year is from the workforce 
79.29 	development fund for displaced homemaker 
79.30 	programs under Minnesota Statutes, section 
79.31 	116L.96. The commissioner shall distribute 
79.32 	the funds to existing nonprofit and state 
79.33 	displaced homemaker programs. This is a 
79.34 	onetime appropriation.
80.1 	(hh)(1) $150,000 in fiscal year 2018 is from 
80.2 	the workforce development fund for a grant 
80.3 	to Anoka County to develop and implement 
80.4 	a pilot program to increase competitive 
80.5 	employment opportunities for transition-age 
80.6 	youth ages 18 to 21.
80.7 	(2) The competitive employment for 
80.8 	transition-age youth pilot program shall 
80.9 	include career guidance components, including 
80.10 	health and life skills, to encourage, train, and 
80.11 	assist transition-age youth in job-seeking 
80.12 	skills, workplace orientation, and job site 
80.13 	knowledge.
80.14 	(3) In operating the pilot program, Anoka 
80.15 	County shall collaborate with schools, 
80.16 	disability providers, jobs and training 
80.17 	organizations, vocational rehabilitation 
80.18 	providers, and employers to build upon 
80.19 	opportunities and services, to prepare 
80.20 	transition-age youth for competitive 
80.21 	employment, and to enhance employer 
80.22 	connections that lead to employment for the 
80.23 	individuals served.
80.24 	(4) Grant funds may be used to create an 
80.25 	on-the-job training incentive to encourage 
80.26 	employers to hire and train qualifying 
80.27 	individuals. A participating employer may 
80.28 	receive up to 50 percent of the wages paid to 
80.29 	the employee as a cost reimbursement for 
80.30 	on-the-job training provided.
80.31 	(ii) $500,000 each year is from the workforce 
80.32 	development fund for rural career counseling 
80.33 	coordinator positions in the workforce service 
80.34 	areas and for the purposes specified in 
80.35 	Minnesota Statutes, section 116L.667. The 
81.1 	commissioner of employment and economic 
81.2 	development, in consultation with local 
81.3 	workforce investment boards and local elected 
81.4 	officials in each of the service areas receiving 
81.5 	funds, shall develop a method of distributing 
81.6 	funds to provide equitable services across 
81.7 	workforce service areas.
81.8 	(jj) In calendar year 2017, the public utility 
81.9 	subject to Minnesota Statutes, section 
81.10 	116C.779, must withhold $1,000,000 from the 
81.11 	funds required to fulfill its financial 
81.12 	commitments under Minnesota Statutes, 
81.13 	section 116C.779, subdivision 1, and pay such 
81.14 	amounts to the commissioner of employment 
81.15 	and economic development for deposit in the 
81.16 	Minnesota 21st century fund under Minnesota 
81.17 	Statutes, section 116J.423.
81.18 	(kk) $350,000 in fiscal year 2018 is for a grant 
81.19 	to AccessAbility Incorporated to provide job 
81.20 	skills training to individuals who have been 
81.21 	released from incarceration for a felony-level 
81.22 	offense and are no more than 12 months from 
81.23 	the date of release. AccessAbility Incorporated 
81.24 	shall annually report to the commissioner on 
81.25 	how the money was spent and the results 
81.26 	achieved. The report must include, at a 
81.27 	minimum, information and data about the 
81.28 	number of participants; participant 
81.29 	homelessness, employment, recidivism, and 
81.30 	child support compliance; and training 
81.31 	provided to program participants.

81.32 	Sec. 6. Laws 2017, chapter 94, article 1, section 4, subdivision 5, is amended to read:

81.33	Subd. 5.General Support
 		6,239,000
		6,539,000

81.34	Appropriations by Fund
	
82.1
82.2	Workforce 
Development Fund
	200,000
	500,000
	
82.3
82.4	Workers' 
Compensation
	6,039,000
	6,039,000
	
82.5 	(a) Except as provided in paragraphs (b) and 
82.6 	(c), this appropriation is from the workers' 
82.7 	compensation fund.
82.8 	(b) $200,000 in fiscal year 2018 is from the 
82.9 	workforce development fund for the 
82.10 	commissioner of labor and industry to convene 
82.11 	and collaborate with stakeholders as provided 
82.12 	under Minnesota Statutes, section 175.46, 
82.13 	subdivision 3, and to develop youth skills 
82.14 	training competencies for approved 
82.15 	occupations. This is a onetime appropriation.
82.16 	(c) $500,000 in fiscal year 2019 is from the 
82.17 	workforce development fund to administer the 
82.18 	youth skills training program under Minnesota 
82.19 	Statutes, section 175.46. The commissioner 
82.20 	shall award up to five grants each year to local 
82.21 	partnerships located throughout the state, not 
82.22 	to exceed $100,000 per local partnership grant. 
82.23 	The commissioner may use a portionup to 
82.24 	five percent of this appropriation for 
82.25 	administration of the grant program. The base 
82.26 	amount for this program is $500,000
82.27 	$1,000,000 each year beginning in fiscal year 
82.28 	2020.

82.29 	Sec. 7. Laws 2017, chapter 94, article 1, section 6, is amended to read:

82.30
82.31	Sec. 6. WORKERS' COMPENSATION COURT 
OF APPEALS
 	$
	1,913,000
	$
	1,913,000
1,946,000
	
82.32 	This appropriation is from the workers' 
82.33 	compensation fund.

83.1 	Sec. 8. Laws 2017, chapter 94, article 1, section 7, subdivision 7, is amended to read:

83.2	Subd. 7.Energy Resources
 		4,847,000
		4,847,000

83.3	Appropriations by Fund
	
83.4	General
	4,247,000
	4,247,000
	
83.5	Special Revenue
	600,000
	600,000
	
83.6 	(a) $150,000 each year is to remediate 
83.7 	vermiculate insulation from households that 
83.8 	are eligible for weatherization assistance under 
83.9 	Minnesota's weatherization assistance program 
83.10 	state plan under Minnesota Statutes, section 
83.11 	216C.264. Remediation must be done in 
83.12 	conjunction with federal weatherization 
83.13 	assistance program services.
83.14 	(b) $832,000 each year is for energy regulation 
83.15 	and planning unit staff.
83.16 	(c) $100,000 each year is from the renewable 
83.17 	development account in the special revenue 
83.18 	fund established in Minnesota Statutes, section 
83.19 	116C.779, subdivision 1, to administer the 
83.20 	"Made in Minnesota" solar energy production 
83.21 	incentive program in Minnesota Statutes, 
83.22 	section 216C.417. Any remaining unspent 
83.23 	funds cancel back to the renewable 
83.24 	development account at the end of the 
83.25 	biennium.
83.26 	(d) $500,000 each year is from the renewable 
83.27 	development account in the special revenue 
83.28 	fund established in Minnesota Statutes, section 
83.29 	116C.779, subdivision 1, for costs associated 
83.30 	with any third-party expert evaluation of a 
83.31 	proposal submitted in response to a request 
83.32 	for proposal to the renewable development 
83.33 	advisory group under Minnesota Statutes, 
83.34 	section 116C.779, subdivision 1, paragraph 
84.1 	(l). No portion of this appropriation may be 
84.2 	expended or retained by the commissioner of 
84.3 	commerce. Any funds appropriated under this 
84.4 	paragraph that are unexpended at the end of a 
84.5 	fiscal year cancel to the renewable 
84.6 	development account.

84.7 	Sec. 9. Laws 2017, chapter 94, article 1, section 9, is amended to read:

84.8	Sec. 9. PUBLIC FACILITIES AUTHORITY
 	$
	1,800,000
	$
	-0-
	
84.9 	(a) $300,000 in fiscal year 2018 is for a grant 
84.10 	to the city of New Trier to replace water 
84.11 	infrastructure under Hogan Avenue, including 
84.12 	related road reconstruction, and to acquire land 
84.13 	for predesign, design, and construction of a 
84.14 	storm water pond that will be colocated with 
84.15 	the pond of the new subdivision. This 
84.16 	appropriation does not require a nonstate 
84.17 	contribution.
84.18 	(b) $600,000 in fiscal year 2018 is for a grant 
84.19 	to the Ramsey/Washington Recycling and 
84.20 	Energy Board to design, construct, and equip 
84.21 	capital improvements to the 
84.22 	Ramsey/Washington Recycling and Energy 
84.23 	Center in Newport.
84.24 	(c) $900,000 in fiscal year 2018 is for a grant 
84.25 	to the Clear Lake-Clearwater Sewer Authority 
84.26 	to remove and replace the existing wastewater 
84.27 	treatment facility. This project is intended to 
84.28 	prevent the discharge of phosphorus into the 
84.29 	Mississippi River. This appropriation is not 
84.30 	available until the commissioner of 
84.31 	management and budget determines that at 
84.32 	least $200,000 is committed to the project 
84.33 	from nonstate sources and the authority has 
84.34 	applied for at least two grants to offset the 
85.1 	cost. An amount equal to any grant money 
85.2 	received by the authority must be returned to 
85.3 	the general fund. This appropriation is 
85.4 	available until June 30, 2019.

85.5 	ARTICLE 7
85.6 	ECONOMIC DEVELOPMENT

85.7 	Section 1. Minnesota Statutes 2017 Supplement, section 298.227, is amended to read:
85.8 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
85.9 	An amount equal to that distributed pursuant to each taconite producer's taxable 
85.10 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 
85.11 	commissioner of Iron Range resources and rehabilitation in a separate taconite economic 
85.12 	development fund for each taconite and direct reduced ore producer. Money from the fund 
85.13 	for each producer shall be released by the commissioner after review by a joint committee 
85.14 	consisting of an equal number of representatives of the salaried employees and the 
85.15 	nonsalaried production and maintenance employees of that producer. The District 11 director 
85.16 	of the United States Steelworkers of America, on advice of each local employee president, 
85.17 	shall select the employee members. In nonorganized operations, the employee committee 
85.18 	shall be elected by the nonsalaried production and maintenance employees. The review 
85.19 	must be completed no later than six months after the producer presents a proposal for 
85.20 	expenditure of the funds to the committee. The funds held pursuant to this section may be 
85.21 	released only for workforce development and associated public facility improvement, 
85.22 	concurrent reclamation, or for acquisition of plant and stationary mining equipment and 
85.23 	facilities for the producer or for research and development in Minnesota on new mining, or 
85.24 	taconite, iron, or steel production technology, but only if the producer provides a matching 
85.25 	expenditure equal to the amount of the distribution to be used for the same purpose beginning 
85.26 	with distributions in 2014. Effective for proposals for expenditures of money from the fund 
85.27 	beginning May 26, 2007, the commissioner may not release the funds before the next 
85.28 	scheduled meeting of the board. If a proposed expenditure is not approved by the 
85.29 	commissioner, after consultation with the advisory board, the funds must be deposited in 
85.30 	the Taconite Environmental Protection Fund under sections 298.222 to 298.225. If a taconite 
85.31 	production facility is sold after operations at the facility had ceased, any money remaining 
85.32 	in the fund for the former producer may be released to the purchaser of the facility on the 
85.33 	terms otherwise applicable to the former producer under this section. If a producer fails to 
85.34 	provide matching funds for a proposed expenditure within six months after the commissioner 
86.1 	approves release of the funds, the funds are available for release to another producer in 
86.2 	proportion to the distribution provided and under the conditions of this section may be 
86.3 	released by the commissioner for deposit in the taconite area environmental protection fund 
86.4 	created in section 298.223. Any portion of the fund which is not released by the commissioner 
86.5 	within one year of its deposit in the fund shall be divided betweendistributed to the taconite 
86.6 	environmental protection fund created in section 298.223 and the Douglas J. Johnson 
86.7 	economic protection trust fund created in section 298.292 for placement in their respective 
86.8 	special accounts. Two-thirds of the unreleased funds shall be distributed to the taconite 
86.9 	environmental protection fund and one-third to the Douglas J. Johnson economic protection 
86.10 	trust fund.

86.11 	EFFECTIVE DATE. This section is effective June 1, 2018.

86.12 	Sec. 2. Minnesota Statutes 2016, section 298.28, subdivision 9a, is amended to read:
86.13 		Subd. 9a.Taconite economic development fund. (a) 25.1 cents per ton for distributions 
86.14 	in 2002 and thereafter must be paid to the taconite economic development fund. No 
86.15 	distribution shall be made under this paragraph in 2004 or any subsequent year in which 
86.16 	total industry production falls below 30 million tons. Distribution shall only be made to a 
86.17 	Minnesota taconite pellet producer's fund under section 298.227 if the producer timely pays 
86.18 	its tax under section 298.24 by the dates provided under section 298.27, or pursuant to the 
86.19 	due dates provided by an administrative agreement with the commissioner.
86.20 	(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate sold 
86.21 	in the form of pellet chips and fines not exceeding 5/16 inch in size and not including crushed 
86.22 	pellets shall be paid to the taconite economic development fund. The amount paid shall not 
86.23 	exceed $700,000 annually for all companies Minnesota taconite pellet producers. If the 
86.24 	initial amount to be paid to the fund exceeds this amount, each company's Minnesota taconite 
86.25 	pellet producer's payment shall be prorated so the total does not exceed $700,000.

86.26 	EFFECTIVE DATE. This section is effective retroactively from December 31, 2016.

86.27 	Sec. 3. Minnesota Statutes 2016, section 465.73, is amended to read:
86.28 	465.73 LOAN FROM, SECURED BY U.S. AGRICULTURE DEPARTMENT 
86.29 	AGENCY.
86.30 	For purposes of constructing, repairing, or acquiring city halls, town halls, fire halls or 
86.31 	fire or rescue equipment, or libraries or child care facilities if otherwise authorized by law, 
86.32 	a statutory city, home rule charter city, county, or town may borrow not to exceed $450,000
87.1 	$750,000 from (i) funds granted to a rural electric cooperative organized under chapter 
87.2 	308A by the United States Department of Agriculture Rural Business-Cooperative Service 
87.3 	or (ii) directly from or in the form of funds guaranteed by the Rural Housing Service or 
87.4 	other agency of the United States Department of Agriculture by a note secured by a mortgage 
87.5 	or other security agreement on the property purchased with the borrowed funds. The city, 
87.6 	county, or town may pledge its full faith and credit and assign or pledge the revenues, if 
87.7 	any, from the facilities or equipment so financed together with any other properly available 
87.8 	funds to secure the loan. The obligation of the note is not to be included when computing 
87.9 	the net debt of the city, county, or town, nor is the approval of the voters required for the 
87.10 	issuance of the note.

87.11 	Sec. 4. TRANSFER 2018 DISTRIBUTION ONLY.
 87.12 	For the 2018 distribution, the fund established under Minnesota Statutes, section 298.28, 
87.13 	subdivision 7, shall receive ten cents per ton of any excess of the balance remaining after 
87.14 	distribution of amounts required under Minnesota Statutes, section 298.28, subdivision 6.

87.15 	EFFECTIVE DATE. This section is effective for the 2018 distribution, and the transfer 
87.16 	must be made within ten days of the August 2018 payment.

87.17 	Sec. 5. DISLOCATED WORKER RAPID RESPONSE ACTIVITY.
 87.18 	Notwithstanding anything to the contrary, of the money appropriated to the Job Skills 
87.19 	Partnership Board for the purposes of Minnesota Statutes, section 116L.17, under Minnesota 
87.20 	Statutes, section 116L.20, subdivision 2, at least $650,000 in fiscal year 2019 is for a grant 
87.21 	to Career Solutions in St. Cloud to address the substantial anticipated job losses at the 
87.22 	Electrolux plant in St. Cloud. These services shall be provided by Career Solutions. Grant 
87.23 	funds may be used according to Minnesota Statutes, section 116L.17, subdivision 4, 
87.24 	including, but not limited to, GED programs, English language courses, computer literacy 
87.25 	efforts, and training in the manufacturing and construction trades. In addition, the 
87.26 	commissioner of employment and economic development is directed to take all necessary 
87.27 	steps, including application for any required federal waivers, to begin providing services 
87.28 	to affected workers before December 31, 2018.

87.29 	Sec. 6. REVISOR'S INSTRUCTION; PROGRAM NAME CLARIFICATION.
 87.30 	In Minnesota Statutes, the revisor of statutes shall change the term "Minnesota investment 
87.31 	fund" to "North Star Disaster Contingency Account" wherever it is apparent from context 
88.1 	that the term "Minnesota investment fund" refers to the program under Minnesota Statutes, 
88.2 	section 116J.8731, subdivisions 8 and 9.

88.3 	ARTICLE 8
88.4 	LABOR AND INDUSTRY

88.5 	Section 1. Minnesota Statutes 2017 Supplement, section 175.46, subdivision 13, is amended 
88.6 	to read:
88.7 		Subd. 13.Grant awards. (a) The commissioner shall award grants to local partnerships 
88.8 	located throughout the state, not to exceed $100,000 per local partnership grant. The 
88.9 	commissioner may use up to five percent of this amount for administration of the grant 
88.10 	program.
88.11 	(b) A local partnership awarded a grant under this section must use the grant award for 
88.12 	any of the following implementation and coordination activities:
88.13 	(1) recruiting additional employers to provide on-the-job training and supervision for 
88.14 	student learners and providing technical assistance to those employers;
88.15 	(2) recruiting students to participate in the local youth skills training program, monitoring 
88.16 	the progress of student learners participating in the program, and monitoring program 
88.17 	outcomes;
88.18 	(3) coordinating youth skills training activities within participating school districts and 
88.19 	among participating school districts, postsecondary institutions, and employers;
88.20 	(4) coordinating academic, vocational and occupational learning, school-based and 
88.21 	work-based learning, and secondary and postsecondary education for participants in the 
88.22 	local youth skills training program;
88.23 	(5) coordinating transportation for student learners participating in the local youth skills 
88.24 	training program; and
88.25 	(6) any other implementation or coordination activity that the commissioner may direct 
88.26 	or permit the local partnership to perform.
88.27 	(b)(c) Grant awards may not be used to directly or indirectly pay the wages of a student 
88.28 	learner.

88.29 	Sec. 2. Minnesota Statutes 2016, section 326B.106, subdivision 9, is amended to read:
88.30 		Subd. 9.Accessibility. (a) Public buildings. The code must provide for makingrequire 
88.31 	new public buildings constructed or remodeled after July 1, 1963, and existing public 
89.1 	buildings when remodeled, to be accessible to and usable by persons with disabilities, 
89.2 	although this does not require the remodeling of public buildings solely to provide 
89.3 	accessibility and usability to persons with disabilities when remodeling would not otherwise 
89.4 	be undertaken.
89.5 	(b) Leased space. No agency of the state may lease space for agency operations in a 
89.6 	non-state-owned building unless the building satisfies the requirements of the State Building 
89.7 	Code for accessibility by persons with disabilities, or is eligible to display the state symbol 
89.8 	of accessibility. This limitation applies to leases of 30 days or more for space of at least 
89.9 	1,000 square feet.
89.10 	(c) Meetings or conferences. Meetings or conferences for the public or for state 
89.11 	employees which are sponsored in whole or in part by a state agency must be held in 
89.12 	buildings that meet the State Building Code requirements relating to accessibility for persons 
89.13 	with disabilities. This subdivision does not apply to any classes, seminars, or training 
89.14 	programs offered by the Minnesota State Colleges and Universities or the University of 
89.15 	Minnesota. Meetings or conferences intended for specific individuals none of whom need 
89.16 	the accessibility features for persons with disabilities specified in the State Building Code 
89.17 	need not comply with this subdivision unless a person with a disability gives reasonable 
89.18 	advance notice of an intent to attend the meeting or conference. When sign language 
89.19 	interpreters will be provided, meetings or conference sites must be chosen which allow 
89.20 	participants who are deaf or hard-of-hearing to see the sign language interpreters clearly.
89.21 	(d) Exemptions. The commissioner may grant an exemption from the requirements of 
89.22 	paragraphs (b) and (c) in advance if an agency has demonstrated that reasonable efforts 
89.23 	were made to secure facilities which complied with those requirements and if the selected 
89.24 	facilities are the best available for access for persons with disabilities. Exemptions shall be 
89.25 	granted using criteria developed by the commissioner in consultation with the Council on 
89.26 	Disability.
89.27 	(e) Symbol indicating access. The wheelchair symbol adopted by Rehabilitation 
89.28 	International's Eleventh World Congress is the state symbol indicating buildings, facilities, 
89.29 	and grounds which are accessible to and usable by persons with disabilities. In the interests 
89.30 	of uniformity, this symbol is the sole symbol for display in or on all public or private 
89.31 	buildings, facilities, and grounds which qualify for its use. The secretary of state shall obtain 
89.32 	the symbol and keep it on file. No building, facility, or grounds may display the symbol 
89.33 	unless it is in compliance with the rules adopted by the commissioner under subdivision 1. 
89.34 	Before any rules are proposed for adoption under this paragraph, the commissioner shall 
90.1 	consult with the Council on Disability. Rules adopted under this paragraph must be enforced 
90.2 	in the same way as other accessibility rules of the State Building Code.

90.3 	Sec. 3. Minnesota Statutes 2016, section 326B.815, subdivision 1, is amended to read:
90.4 		Subdivision 1.Fees. (a) For the purposes of calculating fees under section 326B.092, 
90.5 	an initial or renewed residential contractor, residential remodeler, or residential roofer license 
90.6 	is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured 
90.7 	home installers under section 327B.041 is $300 $180 for a three-year period.
90.8 	(b) All initial and renewal licenses, except for manufactured home installer licenses, 
90.9 	shall be effective for two years and shall expire on March 31 of the year after the year in 
90.10 	which the application is made.
90.11 	(c) The commissioner shall in a manner determined by the commissioner, without the 
90.12 	need for any rulemaking under chapter 14, phase in the renewal of residential contractor, 
90.13 	residential remodeler, and residential roofer licenses from one year to two years. By June 
90.14 	30, 2011, all renewed residential contractor, residential remodeler, and residential roofer 
90.15 	licenses shall be two-year licenses.

90.16 	Sec. 4. Minnesota Statutes 2016, section 327B.041, is amended to read:
90.17 	327B.041 MANUFACTURED HOME INSTALLERS.
90.18 	(a) Manufactured home installers are subject to all of the fees in section 326B.092 and 
90.19 	the requirements of sections 326B.802 to 326B.885, except for the following:
90.20 	(1) manufactured home installers are not subject to the continuing education requirements 
90.21 	of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education 
90.22 	requirements established in rules adopted under section 327B.10;
90.23 	(2) the examination requirement of section 326B.83, subdivision 3, for manufactured 
90.24 	home installers shall be satisfied by successful completion of a written examination 
90.25 	administered and developed specifically for the examination of manufactured home installers. 
90.26 	The examination must be administered and developed by the commissioner. The 
90.27 	commissioner and the state building official shall seek advice on the grading, monitoring, 
90.28 	and updating of examinations from the Minnesota Manufactured Housing Association;
90.29 	(3) a local government unit may not place a surcharge on a license fee, and may not 
90.30 	charge a separate fee to installers;
91.1 	(4) a dealer or distributor who does not install or repair manufactured homes is exempt 
91.2 	from licensure under sections 326B.802 to 326B.885;
91.3 	(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply; 
91.4 	and
91.5 	(6) manufactured home installers are not subject to the contractor recovery fund in 
91.6 	section 326B.89.
91.7 	(b) The commissioner may waive all or part of the requirements for licensure as a 
91.8 	manufactured home installer for any individual who holds an unexpired license or certificate 
91.9 	issued by any other state or other United States jurisdiction if the licensing requirements of 
91.10 	that jurisdiction meet or exceed the corresponding licensing requirements of the department 
91.11 	and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. For the 
91.12 	purposes of calculating fees under section 326B.092, licensure as a manufactured home 
91.13 	installer is a business license.

91.14 	ARTICLE 9
91.15 	WORKERS' COMPENSATION GENERAL

91.16 	Section 1. Minnesota Statutes 2017 Supplement, section 15A.083, subdivision 7, is 
91.17 	amended to read:
91.18 		Subd. 7.Workers' Compensation Court of Appeals and compensation judges.
 91.19 	Salaries of judges of the Workers' Compensation Court of Appeals are 98.52 105 percent 
91.20 	of the salary for district court workers' compensation judges of the Office of Administrative 
91.21 	Hearings. The salary of the chief judge of the Workers' Compensation Court of Appeals is 
91.22 	98.52 107 percent of the salary for a chief district court judge workers' compensation judges 
91.23 	of the Office of Administrative Hearings. Salaries of compensation judges are 98.52 percent 
91.24 	of the salary of district court judges.

91.25 	EFFECTIVE DATE. This section is effective June 1, 2018.

91.26 	Sec. 2. Minnesota Statutes 2016, section 175A.05, is amended to read:
91.27 	175A.05 QUORUM.
91.28 		Subdivision 1.Judges' quorum. A majority of the judges of the Workers' Compensation 
91.29 	Court of Appeals shall constitute a quorum for the exercise of the powers conferred and the 
91.30 	duties imposed on the Workers' Compensation Court of Appeals except that all appeals 
91.31 	shall be heard by no more than a panel of three of the five judges unless the case appealed 
91.32 	is determined to be of exceptional importance by the chief judge prior to assignment of the 
92.1 	case to a panel, or by a three-fifths vote of the judges prior to assignment of the case to a 
92.2 	panel or after the case has been considered by the panel but prior to the service and filing 
92.3 	of the decision.
92.4 		Subd. 2.Vacancy. A vacancy shall not impair the ability of the remaining judges of the 
92.5 	Workers' Compensation Court of Appeals to exercise all the powers and perform all of the 
92.6 	duties of the Workers' Compensation Court of Appeals.
92.7 		Subd. 3.Retired judges. Where the number of Workers' Compensation Court of Appeals 
92.8 	judges available to hear a case is insufficient to constitute a quorum, the chief judge of the 
92.9 	Workers' Compensation Court of Appeals may, with the retired judge's consent, assign a 
92.10 	judge who is retired from the Workers' Compensation Court of Appeals or the Office of 
92.11 	Administrative Hearings to hear any case properly assigned to a judge of the Workers' 
92.12 	Compensation Court of Appeals. The retired judge assigned to the case may act on it with 
92.13 	the full powers of the judge of the Workers' Compensation Court of Appeals. A retired 
92.14 	judge performing this service shall receive pay and expenses in the amount and manner 
92.15 	provided by law for judges serving on the court, less the amount of retirement pay the judge 
92.16 	is receiving under chapter 352 or 490.

92.17 	EFFECTIVE DATE. This section is effective June 1, 2018.

92.18 	Sec. 3. Minnesota Statutes 2016, section 176.231, subdivision 9, is amended to read:
92.19 		Subd. 9.Uses which that may be made of reports. (a) Reports filed with the 
92.20 	commissioner under this section may be used in hearings held under this chapter, and for 
92.21 	the purpose of state investigations and for statistics. These reports are available to the 
92.22 	Department of Revenue for use in enforcing Minnesota income tax and property tax refund 
92.23 	laws, and the information shall be protected as provided in chapter 270B.
92.24 	(b) The division or Office of Administrative Hearings or Workers' Compensation Court 
92.25 	of Appeals may permit the examination of its file by the employer, insurer, employee, or 
92.26 	dependent of a deceased employee or any person who furnishes written signed authorization 
92.27 	to do so from the employer, insurer, employee, or dependent of a deceased employee. 
92.28 	Reports filed under this section and other information the commissioner has regarding 
92.29 	injuries or deaths shall be made available to the Workers' Compensation Reinsurance 
92.30 	Association for use by the association in carrying out its responsibilities under chapter 79.
92.31 	(c) The division may provide the worker identification number assigned under section 
92.32 	176.275, subdivision 1, without a signed authorization required under paragraph (b) to an:
92.33 	(1) attorney who represents one of the persons described in paragraph (b);
93.1 	(2) attorney who represents an intervenor or potential intervenor under section 176.361;
93.2 	(3) intervenor; or
93.3 	(4) employee's assigned qualified rehabilitation consultant under section 176.102.

93.4 	EFFECTIVE DATE. This section is effective June 1, 2018.

93.5 	Sec. 4. [176.2611] COORDINATION OF THE OFFICE OF ADMINISTRATIVE 
93.6 	HEARINGS' CASE MANAGEMENT SYSTEM AND THE WORKERS' 
93.7 	COMPENSATION IMAGING SYSTEM.
93.8 		Subdivision 1.Definitions. (a) For purposes of this section, the definitions in this 
93.9 	subdivision apply unless otherwise specified.
93.10 	(b) "Commissioner" means the commissioner of labor and industry.
93.11 	(c) "Department" means the Department of Labor and Industry.
93.12 	(d) "Document" includes all data, whether in electronic or paper format, that is filed 
93.13 	with or issued by the office or department related to a claim-specific dispute resolution 
93.14 	proceeding under this section.
93.15 	(e) "Office" means the Office of Administrative Hearings.
93.16 		Subd. 2.Applicability. This section governs filing requirements pending completion 
93.17 	of the workers' compensation modernization program and access to documents and data in 
93.18 	the office's case management system, the workers' compensation Informix imaging system, 
93.19 	and the system that will be developed as a result of the workers' compensation modernization 
93.20 	program. This section prevails over any conflicting provision in this chapter, Laws 1998, 
93.21 	chapter 366, or corresponding rules.
93.22 		Subd. 3.Documents that must be filed with the office. Except as provided in 
93.23 	subdivision 4 and section 176.421, all documents that require action by the office under 
93.24 	this chapter must be filed, electronically or in paper format, with the office as required by 
93.25 	the chief administrative law judge. Filing a document that initiates or is filed in preparation 
93.26 	for a proceeding at the office satisfies any requirement under this chapter that the document 
93.27 	must be filed with the commissioner.
93.28 		Subd. 4.Documents that must be filed with the commissioner. (a) The following 
93.29 	documents must be filed directly with the commissioner in the format and manner prescribed 
93.30 	by the commissioner:
94.1 	(1) all requests for an administrative conference under section 176.106, regardless of 
94.2 	the amount in dispute;
94.3 	(2) a motion to intervene in an administrative conference that is pending at the department;
94.4 	(3) any other document related to an administrative conference that is pending at the 
94.5 	department;
94.6 	(4) an objection to a penalty assessed by the commissioner or the department;
94.7 	(5) requests for medical and rehabilitation dispute certification under section 176.081, 
94.8 	subdivision 1, paragraph (c), including related documents; and
94.9 	(6) except as provided in this subdivision or subdivision 3, any other document required 
94.10 	to be filed with the commissioner.
94.11 	(b) The filing requirement in paragraph (a), clause (1), makes no changes to the 
94.12 	jurisdictional provisions in section 176.106. A claim petition that contains only medical or 
94.13 	rehabilitation issues, unless primary liability is disputed, is considered to be a request for 
94.14 	an administrative conference and must be filed with the commissioner.
94.15 	(c) The commissioner must refer a timely, unresolved objection to a penalty under 
94.16 	paragraph (a), clause (4), to the office within 60 calendar days.
94.17 		Subd. 5.Form revision and access to documents and data. (a) The commissioner 
94.18 	must revise dispute resolution forms, in consultation with the chief administrative law judge, 
94.19 	to reflect the filing requirements in this section.
94.20 	(b) For purposes of this subdivision, "complete, read-only electronic access" means the 
94.21 	ability to view all data and document contents, including scheduling information, related 
94.22 	to workers' compensation disputes, except for the following:
94.23 	(1) a confidential mediation statement, including any documents submitted with the 
94.24 	statement for the mediator's review;
94.25 	(2) work product of a compensation judge, mediator, or commissioner that is not issued. 
94.26 	Examples of work product include personal notes of hearings or conferences and draft 
94.27 	decisions;
94.28 	(3) the department's Vocational Rehabilitation Unit's case management system data;
94.29 	(4) the special compensation fund's case management system data; and
94.30 	(5) audit trail information.
95.1 	(c) The office must be provided with continued, complete, read-only electronic access 
95.2 	to the workers' compensation Informix imaging system.
95.3 	(d) The department must be provided with read-only electronic access to the office's 
95.4 	case management system, including the ability to view all data, including scheduling 
95.5 	information, but excluding access into filed documents.
95.6 	(e) The office must send the department all documents that are accepted for filing or 
95.7 	issued by the office. The office must send the documents to the department, electronically 
95.8 	or by courier, within two business days of when the documents are accepted for filing or 
95.9 	issued by the office.
95.10 	(f) The department must place documents that the office sends to the department in the 
95.11 	appropriate imaged file for the employee.
95.12 	(g) The department must send the office copies of the following documents, electronically 
95.13 	or by courier, within two business days of when the documents are filed with or issued by 
95.14 	the department:
95.15 	(1) notices of discontinuance;
95.16 	(2) decisions issued by the department; and
95.17 	(3) mediated agreements.
95.18 	(h) Upon integration of the office's case management system and the department's system 
95.19 	resulting from the workers' compensation modernization program, each agency will be 
95.20 	provided with complete, read-only electronic access to the other agency's system.
95.21 	(i) Each agency's responsible authority pursuant to section 13.02, subdivision 16, is 
95.22 	responsible for its own employees' use and dissemination of the data and documents in the 
95.23 	workers' compensation Informix imaging system, the office's case management system, and 
95.24 	the system developed as a result of the workers' compensation modernization program.
95.25 		Subd. 6.Data privacy. (a) All documents filed with or issued by the department or the 
95.26 	office under this chapter are private data on individuals and nonpublic data pursuant to 
95.27 	chapter 13, except that the documents are available to the following:
95.28 	(1) the office;
95.29 	(2) the department;
95.30 	(3) the employer;
95.31 	(4) the insurer;
96.1 	(5) the employee;
96.2 	(6) the dependent of a deceased employee;
96.3 	(7) an intervenor in the dispute;
96.4 	(8) the attorney to a party in the dispute;
96.5 	(9) a person who furnishes written authorization from the employer, insurer, employee, 
96.6 	or dependent of a deceased employee; and
96.7 	(10) a person, agency, or other entity allowed access to the documents under this chapter 
96.8 	or other law.
96.9 	(b) The office and department may post notice of scheduled proceedings on the agencies' 
96.10 	Web sites and at their principal places of business in any manner that protects the employee's 
96.11 	identifying information.
96.12 		Subd. 7.Workers' Compensation Court of Appeals. The Workers' Compensation 
96.13 	Court of Appeals has authority to amend its rules of procedure to reflect electronic filing 
96.14 	with the office under this section for purposes of section 176.421, subdivision 5, and to 
96.15 	allow electronic filing with the court under section 176.285. The court may amend its rules 
96.16 	using the procedure in section 14.389.

96.17 	EFFECTIVE DATE. This section is effective June 1, 2018.

96.18 	Sec. 5. Laws 2017, chapter 94, article 1, section 6, is amended to read:

96.19
96.20	Sec. 6. WORKERS' COMPENSATION COURT 
OF APPEALS
 	$
	1,913,000
	$
	1,913,000
1,946,000
	
96.21 	This appropriation is from the workers' 
96.22 	compensation fund.

96.23 	ARTICLE 10
96.24 	HOSPITAL OUTPATIENT FEE SCHEDULE

96.25 	Section 1. [176.1364] WORKERS' COMPENSATION HOSPITAL OUTPATIENT 
96.26 	FEE SCHEDULE.
96.27 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
96.28 	subdivision have the meanings given them.
96.29 	(b) "Addendum A" means the addendum entitled "OPPS APCs for CY 2018," or its 
96.30 	successor, developed by the Centers for Medicare and Medicaid Services (Medicare) for 
97.1 	use in the Medicare Hospital Outpatient Prospective Payment System (OPPS) system under 
97.2 	Code of Federal Regulations, title 42, part 419, as may be amended from time to time.
97.3 	(c) "Addendum B" means the addendum entitled "OPPS Payment by HCPCS Codes for 
97.4 	CY 2018," or its successor, developed by the Centers for Medicare and Medicaid Services 
97.5 	(Medicare) for use in the Medicare Hospital Outpatient Prospective Payment System (OPPS) 
97.6 	system under Code of Federal Regulations, title 42, part 419, as may be amended from time 
97.7 	to time.
97.8 	(d) "HCPCS code" means a numeric or alphanumeric code included in the Centers for 
97.9 	Medicare and Medicaid Services' Healthcare Common Procedure Coding System. A HCPCS 
97.10 	code is used to identify a specific medical service.
97.11 	(e) "Hospital" means a facility that is licensed by the Department of Health under section 
97.12 	144.50.
97.13 	(f) "HOFS" means the workers' compensation hospital outpatient fee schedule established 
97.14 	under subdivision 3.
97.15 	(g) "Insurer" includes workers' compensation insurers and self-insured employers.
97.16 	(h) "Services" includes articles, supplies, procedures, and implantable devices provided 
97.17 	by the hospital with the service. Services are identified by a code described in subdivision 
97.18 	3.
97.19 		Subd. 2.Applicability. (a) This section only applies to payment of charges for hospital 
97.20 	outpatient services if the charges include a service listed in the workers' compensation 
97.21 	hospital outpatient fee schedule established by the commissioner under subdivision 3. If 
97.22 	the charges do not include a service listed in the HOFS, payment shall be:
97.23 	(1) the liability for each service that is included in the workers' compensation relative 
97.24 	value fee schedule as provided in section 176.136, subdivision 1a, and corresponding rules 
97.25 	adopted by the commissioner to implement the relative value fee schedule; or
97.26 	(2) the liability as provided in section 176.136, subdivision 1b, paragraphs (b) and (c), 
97.27 	for each service that is not included in the workers' compensation relative value fee schedule.
97.28 	(b) This section does not apply to outpatient services provided at a hospital that is certified 
97.29 	by Medicare as a critical access hospital. Outpatient services provided by these hospitals 
97.30 	shall be paid as provided in section 176.136, subdivision 1b, paragraph (a).
97.31 		Subd. 3.Hospital outpatient fee schedule (HOFS). (a) Effective for hospital outpatient 
97.32 	services on or after October 1, 2018, the commissioner shall establish a workers' 
98.1 	compensation hospital outpatient fee schedule (HOFS) to establish the payment for hospital 
98.2 	bills with charges for services with a J1 or J2 status indicator as listed in the status indicator 
98.3 	(SI) column of Addendum B and the comprehensive observation services Ambulatory 
98.4 	Payment Classification (APC) 8011 with a J2 status indicator in Addendum A. The 
98.5 	commissioner shall publish a link to the HOFS in the State Register before October 1, 2018, 
98.6 	and shall maintain the current HOFS on the department's Web site.
98.7 	(b) The amount listed for each of the procedures in the HOFS as described in paragraph 
98.8 	(a) shall be the relative weight for the procedure multiplied by a HOFS conversion factor 
98.9 	that results in the same overall payment for hospital outpatient services under this section 
98.10 	as the actual payments made in the most recent 12-month period available before the effective 
98.11 	date of this section. The commissioner must establish separate conversion factors to achieve 
98.12 	the same overall payment for noncritical access hospitals of 100 or fewer licensed beds and 
98.13 	hospitals with more than 100 licensed beds. The commissioner shall establish the two 
98.14 	conversion factors according to the requirements in clauses (1) to (4) in consultation with 
98.15 	insurer and hospital representatives.
98.16 	(1) The commissioner shall obtain a suitable sample of de-identified data for Minnesota 
98.17 	workers' compensation outpatient cases at Minnesota hospitals for the most recently available 
98.18 	12-month period. The commissioner may obtain de-identified data from any reliable source, 
98.19 	including Minnesota hospitals and insurers, or their representatives. Any data provided to 
98.20 	the commissioner by a hospital, insurer, or their representative under this subdivision is 
98.21 	nonpublic data under section 13.02, subdivision 9.
98.22 	(2) The sample must be divided into a data set for hospitals over 100 licensed beds, and 
98.23 	100 or fewer licensed beds, excluding critical access hospitals.
98.24 	(3) For each data set the commissioner shall:
98.25 	(i) calculate the total amount of the actual payments made in the most recent 12-month 
98.26 	period available before the effective date of this section, adjusted for inflation to July 2018; 
98.27 	and
98.28 	(ii) apply all of the payment provisions in this section to each claim including, as 
98.29 	applicable, payment under the relative value fee schedule or 85 percent of the hospital's 
98.30 	usual and customary charge under section 176.136, subdivisions 1a and 1b, to determine 
98.31 	the total payment amount using the Medicare conversion factor in effect for the OPPS in 
98.32 	effect on July 1, 2018.
99.1 	(4) The commissioner shall calculate the Minnesota conversion factor to equal the 
99.2 	Medicare conversion factor multiplied by the ratio of total payments under clause (3), item 
99.3 	(i), divided by the total payments under clause (3), item (ii).
99.4 	(c) For purposes of this section:
99.5 	(1) the relative weight is the amount in the "relative weight" column in Addendum B 
99.6 	and Addendum A for comprehensive observation services.
99.7 	(2) references to J1, J2, and H status indicators; Addenda A and B; APC 8011; and 
99.8 	HCPCS code G0378 includes any successor status indicators, addenda, APC, or HCPCS 
99.9 	code established by the Centers for Medicare and Medicaid Services.
99.10 	(d) On October 1 of each year, the commissioner shall adjust the HOFS conversion 
99.11 	factors based on the market basket index for inpatient hospital services calculated by 
99.12 	Medicare and published on its Web site. The adjustment on each October 1 shall be a 
99.13 	percentage equal to the value of that index averaged over the four quarters of the most recent 
99.14 	calendar year divided by the value of that index over the four quarters of the prior calendar 
99.15 	year.
99.16 	(e) No later than October 1, 2021, and at least once every three years thereafter, the 
99.17 	commissioner shall update the HOFS established under this subdivision by incorporating 
99.18 	services with a J1 or J2 status indicator, and the corresponding relative weights, listed in 
99.19 	the Addenda A and B most recently available on Medicare's Web site as of the preceding 
99.20 	July 1. If Addenda A and B are not available on Medicare's Web site on the preceding July 
99.21 	1, the HOFS most recently published on the department's Web site remains in effect.
99.22 	(1) Each time the HOFS is updated under this paragraph, the commissioner shall adjust 
99.23 	the conversion factors so that there is no difference between the overall payment under the 
99.24 	new HOFS and the overall payment under the HOFS most recently in effect, for services 
99.25 	in both HOFSs.
99.26 	(2) The conversion factor adjustments under this paragraph shall be made separately for 
99.27 	each hospital category in paragraph (b).
99.28 	(3) The conversion factor adjustments under this paragraph must be made before making 
99.29 	any additional adjustment under paragraph (d).
99.30 	(f) The commissioner shall give notice in the State Register of the adjusted conversion 
99.31 	factor in paragraph (d) no later than October 1 annually. The commissioner shall give notice 
99.32 	in the State Register of an updated HOFS under paragraph (e) no later than October 1 of 
99.33 	the year in which the HOFS becomes effective. The notice must include a link to the HOFS 
100.1 	published on the department's Web site. The notices, the updated fee schedules, and the 
100.2 	adjusted conversion factors are not rules subject to chapter 14, but have the force and effect 
100.3 	of law as of the effective date published in the State Register.
100.4 		Subd. 4.Payment under the hospital outpatient fee schedule. (a) Services in the 
100.5 	HOFS, and other hospital outpatient services provided with or as part of service in the 
100.6 	HOFS, are paid according to paragraphs (b) and (c).
100.7 	(b) If a hospital bill includes a charge for one or more services with a J1 status indicator, 
100.8 	payment shall be as provided in this paragraph.
100.9 	(1) If the bill includes a charge for only one service with only a J1 status indicator, 
100.10 	payment shall be the amount listed in the HOFS for that service, regardless of the amount 
100.11 	charged by the hospital.
100.12 	(2) If the bill includes charges for more than one service with a J1 status indicator, the 
100.13 	service with the highest listed fee in the HOFS shall be paid at 100 percent of the listed fee. 
100.14 	Each additional service listed in the hospital outpatient fee shall be paid at 50 percent of 
100.15 	the listed fee. Payment under this clause shall be based on the applicable percentage of the 
100.16 	listed fee, regardless of the amount charged by the hospital.
100.17 	(3) If the bill includes an additional charge for a service that does not have a J1 status 
100.18 	indicator listed in the HOFS, no separate payment is made for the additional service. Payment 
100.19 	for the additional service, including any service with a J2 status indicator, is packaged into 
100.20 	and is not paid separately from the payment amount listed in the HOFS for the service with 
100.21 	the J1 status indicator. Implantable devices are paid separately only as provided in subdivision 
100.22 	5.
100.23 	(4) The insurer must not deny payment for any additional service packaged into payment 
100.24 	for a service listed in the HOFS on the basis that the additional service was not reasonably 
100.25 	required or causally related to an admitted work injury.
100.26 	(c) If a hospital bill includes one or more charges for services with a J2 status indicator, 
100.27 	and does not include any charges for services with a J1 status indicator, payment shall be 
100.28 	as provided in this paragraph.
100.29 	(1) Except for services packaged into an observation service as provided in clause (4), 
100.30 	payment for each service with a J2 status indicator shall be the amount listed in the HOFS, 
100.31 	regardless of the amount charged by the hospital.
100.32 	(2) If a service without a HCPCS code is billed with a service with a J2 status indicator, 
100.33 	payment is packaged into the payment for the J2 service.
101.1 	(3) Payment for drugs with a HCPCS code is separate from payment for the service with 
101.2 	the J2 code as provided in this clause.
101.3 	(i) If the drug is delivered by injection or infusion, payment for the drug is packaged 
101.4 	into payment for the injection or infusion service.
101.5 	(ii) If the drug is not delivered by injection or infusion, payment for the drug is paid at 
101.6 	the Medicare Average Sales Price (ASP) of the drug on the day the drug is dispensed. No 
101.7 	later than October 1, 2018, and October 1 of each subsequent year, the commissioner must 
101.8 	publish on the department's Web site a link to the ASP most recently available as of the 
101.9 	preceding July 1. If no ASP is available, the most recently posted ASP linked on the 
101.10 	department's Web site remains in effect.
101.11 	(4) If a bill includes eight or more units of service with the HCPCS code G0378 
101.12 	(observation services, per hour), and there is a physician's or dentist's order for observation, 
101.13 	payment shall be the amount listed in the HOFS for the comprehensive observation services 
101.14 	Ambulatory Payment Classification 8011, regardless of the amount charged by the hospital. 
101.15 	All other services billed by the hospital, including other services with a J2 status indicator, 
101.16 	are packaged into the payment amount and are not paid separately from the payment amount 
101.17 	listed in the fee schedule for HCPCS code G0378.
101.18 	(5) For any other service on the same bill as the service with a J2 status indicator, payment 
101.19 	shall be as provided in subdivision 2, paragraph (a).
101.20 		Subd. 5.Implantable devices. The maximum fee for any service in the HOFS includes 
101.21 	payment for all implantable devices, even if the Medicare OPPS would otherwise allow 
101.22 	separate payment for the implantable device. However, separate payment in the amount of 
101.23 	85 percent of the hospital's usual and customary charge for an implantable device is allowed 
101.24 	if the implantable device:
101.25 	(1) has an H status indicator in Addendum B;
101.26 	(2) is properly charged on a bill with a service with a J1 status indicator in the HOFS; 
101.27 	and
101.28 	(3) is properly billed with another HCPCS code, if required by Medicare's OPPS system.
101.29 	The commissioner shall update the HOFS each October 1 to include any HCPCS codes that 
101.30 	are payable under this section according to the Addendum B most recently available on the 
101.31 	preceding July 1.
101.32 		Subd. 6.Study. (a) The commissioner shall conduct a study analyzing the percentage 
101.33 	of claims with a service in the HOFS that were paid timely and the percentage of claims 
102.1 	paid accurately. The commissioner must report the results of the study and recommendations 
102.2 	to the Workers' Compensation Advisory Council and chairs and ranking minority members 
102.3 	of the house of representatives and senate committees with jurisdiction over workers' 
102.4 	compensation by January 15, 2021.
102.5 	(b) Based on the results of the study, the WCAC shall consider whether there is a 
102.6 	minimum 80 percent compliance in timeliness and accuracy of payments, and additional 
102.7 	statutory amendments, including but not limited to:
102.8 	(1) a maximum ten percent reduction in payments under the HOFS; and
102.9 	(2) an increase in indemnity benefits to injured workers.
102.10 		Subd. 7.Rulemaking. The commissioner may adopt or amend rules, using the authority 
102.11 	in section 14.386, paragraph (a), to implement this section. The rules are not subject to 
102.12 	expiration under section 14.386, paragraph (b).

102.13 	EFFECTIVE DATE. This section is effective for hospital outpatient services provided 
102.14 	on or after October 1, 2018.

102.15 	ARTICLE 11
102.16 	OUTPATIENT BILLING, PAYMENT, AND DISPUTE RESOLUTION

102.17 	Section 1. Minnesota Statutes 2016, section 176.136, subdivision 1b, is amended to read:
102.18 		Subd. 1b.Limitation of liability. (a) The liability of the employer for treatment, articles, 
102.19 	and supplies provided to an employee while an inpatient or outpatient at a Critical Access 
102.20 	Hospital certified by the Centers for Medicare and Medicaid Services, or while an outpatient 
102.21 	at a hospital with 100 or fewer licensed beds, shall be the hospital's usual and customary 
102.22 	charge, unless the charge is determined by the commissioner or a compensation judge to 
102.23 	be unreasonably excessive.
102.24 	(b) The liability of the employer for the treatment, articles, and supplies that are not 
102.25 	limited by paragraph (a), subdivision 1a, or 1c, or section 176.1362, 176.1363, or 176.1364,
102.26 	shall be limited to 85 percent of the provider's usual and customary charge, or 85 percent 
102.27 	of the prevailing charges for similar treatment, articles, and supplies furnished to an injured 
102.28 	person when paid for by the injured person, whichever is lower, except as provided in 
102.29 	paragraph (e). On this basis, the commissioner or compensation judge may determine the 
102.30 	reasonable value of all treatment, services, and supplies, and the liability of the employer 
102.31 	is limited to that amount. The commissioner may by rule establish the reasonable value of 
102.32 	a service, article, or supply in lieu of the 85 percent limitation in this paragraph. A prevailing 
103.1 	charge established under Minnesota Rules, part 5221.0500, subpart 2, must be based on no 
103.2 	more than two years of billing data immediately preceding the date of the service.
103.3 	(c) The limitation of liability for charges provided by paragraph (b) does not apply to a 
103.4 	nursing home that participates in the medical assistance program and whose rates are 
103.5 	established by the commissioner of human services.
103.6 	(d) An employer's liability for treatment, articles, and supplies provided under this chapter 
103.7 	by a health care provider located outside of Minnesota is limited to the payment that the 
103.8 	health care provider would receive if the treatment, article, or supply were paid under the 
103.9 	workers' compensation law of the jurisdiction in which the treatment was provided.
103.10 	(e) The limitation of the employer's liability based on 85 percent of prevailing charge 
103.11 	does not apply to charges by an ambulatory surgical center as defined in section 176.1363, 
103.12 	subdivision 1, paragraph (b), or a hospital as defined in section 176.1364, subdivision 1, 
103.13 	paragraph (e).
103.14 	(f) For purposes of this chapter, "inpatient" means a patient that has been admitted to a 
103.15 	hospital by an order from a physician or dentist. If there is no inpatient admission order, 
103.16 	the patient is deemed an outpatient. The hospital must provide documentation of an inpatient 
103.17 	order upon the request of the employer.

103.18 	EFFECTIVE DATE. This section is effective for treatment, articles, and supplies 
103.19 	provided on or after October 1, 2018.

103.20 	Sec. 2. [176.1365] OUTPATIENT BILLING, PAYMENT, AND DISPUTE 
103.21 	RESOLUTION.
103.22 		Subdivision 1.Scope. This section applies to billing, payment, and dispute resolution 
103.23 	for services provided by an ambulatory surgical center (ASC) under section 176.1363 and 
103.24 	hospital outpatient services under section 176.1364. For purposes of this section, "insurer" 
103.25 	includes self-insured employer and "services" is as defined in section 176.1364.
103.26 		Subd. 2.Outpatient billing, coding, and prior notification. (a) Ambulatory surgical 
103.27 	centers and hospitals must bill workers' compensation insurers for services governed by 
103.28 	sections 176.1363 and 176.1364 using the same codes, formats, and details that are required 
103.29 	for billing the Medicare program, including coding consistent with the American Medical 
103.30 	Association Current Procedural Terminology coding system and Medicare's Ambulatory 
103.31 	Surgical Center Payment System, Outpatient Prospective Payment System, Outpatient Code 
103.32 	Editor, Healthcare Current Procedural Terminology Coding System, and the National Correct 
103.33 	Coding Initiative Policy Manual for Medicare Services and associated Web page and tables.
104.1 	(b) All charges for ASC or hospital outpatient fee schedule services governed by sections 
104.2 	176.1363 and 176.1364 must be submitted to the insurer on the appropriate electronic 
104.3 	transaction required by section 176.135, subdivisions 7 and 7a. ASCs must submit charges 
104.4 	on the electronic 837P form. ASCs must not separately bill for the services and items 
104.5 	included in the ASC facility fee under Code of Federal Regulations, title 42, section 
104.6 	416.164(a). Minnesota Rules, part 5221.4033, subpart 1a, does not apply to ASCs under 
104.7 	this section, but does apply to hospital outpatient facility fees to the extent they are not 
104.8 	covered by the hospital outpatient fee schedule under section 176.1364.
104.9 	(c) Hospitals, ASCs, and insurers must comply with the prior notification and approval 
104.10 	or authorization requirements specified in Minnesota Rules, part 5221.6050, subpart 9. Prior 
104.11 	notification may be provided by either the hospital, ASC, or the surgeon. For purposes of 
104.12 	prior notification under Minnesota Rules, part 5221.6050, subpart 9, "inpatient" has the 
104.13 	meaning as provided under section 176.136, subdivision 1b, paragraph (d).
104.14 	(d) ASC or hospital bills must be submitted to insurers as required by section 176.135, 
104.15 	subdivisions 7 and 7a, and within the time period required by section 62Q.75, subdivision 
104.16 	3. Insurers must respond to the initial bill as provided in section 176.135, subdivisions 6 
104.17 	and 7a. Copies of any records or reports relating to the items for which payment is sought 
104.18 	are separately payable as provided in section 176.135, subdivision 7, paragraph (a).
104.19 		Subd. 3.ASC or hospital request for reconsideration; insurer response; time frames.
 104.20 	(a) Following receipt of the insurer's explanation of review (EOR) or explanation of benefits 
104.21 	(EOB), the ASC or hospital may request reconsideration of a payment denial or reduction. 
104.22 	The ASC or hospital must submit its request for reconsideration in writing to the insurer 
104.23 	within one year of the date of the EOR or EOB.
104.24 	(b) The insurer must issue a written response to the ASC or hospital's request for 
104.25 	reconsideration within 30 days, as provided in section 176.135, subdivision 6. The written 
104.26 	response must address the issues raised by the request for reconsideration and not simply 
104.27 	reiterate the information on the EOR or EOB.
104.28 		Subd. 4.Insurer request for reimbursement of overpayment; time frame. If the 
104.29 	payer determines it has overpaid an ASC or hospital's charges based on workers' 
104.30 	compensation statutes and rules, the payer must submit its request for reimbursement in 
104.31 	writing to the ASC or hospital within one year of the date of the payment.
104.32 		Subd. 5.Medical requests for administrative conference; time frame to file. (a) An 
104.33 	ASC, hospital, or insurer must notify the provider or payer, as applicable, of its intent to 
104.34 	file a medical request for an administrative conference under section 176.106 at least 20 
105.1 	days before filing one with the department. The insurer, or the ASC or hospital if permitted 
105.2 	by section 176.136, subdivision 2, must file the medical request for an administrative 
105.3 	conference no later than the latest of:
105.4 	(1) one year after the date of the initial EOR or EOB if the ASC or hospital does not 
105.5 	request a reconsideration of a payment denial or reduction under subdivision 3;
105.6 	(2) one year after the date of the insurer's response to the ASC or hospital's request for 
105.7 	reconsideration under subdivision 3; or
105.8 	(3) one year after the insurer's request for reimbursement of an overpayment from an 
105.9 	ASC or hospital under subdivision 4.
105.10 	(b) Paragraph (a) does not prohibit an employee from filing a medical request for 
105.11 	assistance or claim petition for the payment denied or reduced by the insurer. However, the 
105.12 	ASC or hospital may not bill the employee for the denied or reduced payment when 
105.13 	prohibited by this chapter.
105.14 		Subd. 6.Interest. (a) An insurer must pay the ASC or hospital interest at an annual rate 
105.15 	of four percent if it is determined that the insurer is liable for additional ASC or hospital 
105.16 	charges following a denial of payment. Interest is payable by the insurer on the additional 
105.17 	amount owed from the date payment was due.
105.18 	(b) An ASC or hospital must pay the insurer interest at an annual rate of four percent if 
105.19 	it is determined that the hospital owes the insurer reimbursement following the insurer's 
105.20 	request for reimbursement of an overpayment. Interest is payable by the ASC or hospital 
105.21 	on the amount of the overpayment from the date the overpayment was made.

105.22 	EFFECTIVE DATE. This section is effective for services provided on or after October 
105.23 	1, 2018.

105.24 	ARTICLE 12
105.25 	AMBULATORY SURGICAL CENTERS

105.26 	Section 1. [176.1363] AMBULATORY SURGICAL CENTER PAYMENT.
105.27 		Subdivision 1.Definitions. (a) For the purpose of this section, the terms defined in this 
105.28 	subdivision have the meanings given them.
105.29 	(b) "Ambulatory surgical center" or "ASC" means a facility that is: (1) certified as an 
105.30 	ASC by the Centers for Medicare and Medicaid Services; or (2) licensed by the Department 
105.31 	of Health as a freestanding outpatient surgical center and not owned by a hospital.
106.1 	(c) "Conversion factor" means the Medicare ambulatory surgical center payment system 
106.2 	(ASCPS) conversion factor used for ASCs that meet the Medicare quality reporting 
106.3 	requirements, whether or not the ASC submitting the bill has met the quality reporting 
106.4 	requirements.
106.5 	(d) "Covered surgical procedures and ancillary services" means the procedures listed in 
106.6 	ASCPS, addendum AA, and the ancillary services integral to covered surgical procedures 
106.7 	listed in ASCPS, addendum BB.
106.8 	(e) "Insurer" includes workers' compensation insurers and self-insured employers.
106.9 	(f) "Ambulatory surgical center payment system" or "ASCPS" means the system 
106.10 	developed by the Centers for Medicare and Medicaid Services for payment of surgical 
106.11 	services provided by federally certified ASCs as specified in:
106.12 	(1) Code of Federal Regulations, title 42, part 416, including without limitation the 
106.13 	geographic adjustment for the ASC and the multiple surgical procedure reduction rule;
106.14 	(2) annual revisions to Code of Federal Regulations, title 42, part 416, as published in 
106.15 	the Federal Register;
106.16 	(3) the corresponding addendum AA (final ASC covered surgical procedures), addendum 
106.17 	BB (final covered ancillary services integral to covered surgical procedures), addendum 
106.18 	DD1 (final ASC payment indicators), and any successor or replacement addenda; and
106.19 	(4) the Medicare claims processing manual.
106.20 	(g) "Medicare ASCPS payment" means the Medicare ASCPS payment used for ASCs 
106.21 	that meet the Medicare quality reporting requirements, whether or not the ASC submitting 
106.22 	the bill has met the Medicare quality reporting requirements.
106.23 		Subd. 2.Payment for covered surgical procedures and ancillary services based on 
106.24 	Medicare ASCPS. (a) Except as provided in subdivisions 3 and 4, the payment to the ASC 
106.25 	for covered surgical procedures and ancillary services shall be the lesser of:
106.26 	(1) the ASC's usual and customary charge for all services, supplies, and implantable 
106.27 	devices provided; or
106.28 	(2) the Medicare ASCPS payment, times a multiplier of 320 percent.
106.29 	(i) The amount payable under this clause includes payment for all implantable devices, 
106.30 	even if the Medicare ASCPS would otherwise allow separate payment for the implantable 
106.31 	device.
107.1 	(ii) The 320 percent described in this clause must be adjusted if, on July 1, 2019, or any 
107.2 	subsequent July 1, the conversion factor is less than 98 percent of the conversion factor in 
107.3 	effect on the previous July 1. When this occurs, the multiplier must be 320 percent times 
107.4 	98 percent divided by the percentage that the current Medicare conversion factor bears to 
107.5 	the Medicare conversion factor in effect on the prior July 1. In subsequent years, the 
107.6 	multiplier is 320 percent, unless the Medicare ASCPS conversion factor declines by more 
107.7 	than two percent.
107.8 	(b) Payment under this section is effective for covered surgical procedures and ancillary 
107.9 	services provided by an ASC on or after October 1, 2018, through September 30, 2019, and 
107.10 	shall be based on the addenda AA, BB, and DD1 most recently available on the Centers for 
107.11 	Medicare and Medicaid Services Web site as of July 1, 2018, and the corresponding rules 
107.12 	and Medicare claims processing manual described in subdivision 1, paragraph (f).
107.13 	(1) Payment for covered surgical procedures and ancillary services provided by an ASC 
107.14 	on or after each subsequent October 1 shall be based on the addenda AA, BB, and DD1 
107.15 	most recently available on the Centers for Medicare and Medicaid Services Web site as of 
107.16 	the preceding July 1 and the corresponding rules and Medicare claims processing manual.
107.17 	(2) If the Centers for Medicare and Medicaid Services has not updated addendum AA, 
107.18 	BB, or DD1 on its Web site since the commissioner's previous notice under paragraph (c), 
107.19 	the addenda identified in the notice published by the commissioner in paragraph (c) and the 
107.20 	corresponding rules and Medicare claims processing manual shall remain in effect.
107.21 	(3) Addenda AA, BB, and DD1 under this subdivision includes successor or replacement 
107.22 	addenda.
107.23 	(c) The commissioner shall annually give notice in the State Register of any adjustment 
107.24 	to the multiplier under paragraph (a), clause (2), and of the applicable addenda in paragraph 
107.25 	(b) no later than October 1. The notice must identify and include a link to the applicable 
107.26 	addenda. The notices and any adjustment to the multiplier are not rules subject to chapter 
107.27 	14, but have the force and effect of law as of the effective date published in the State Register.
107.28 		Subd. 3.Payment for compensable surgical services not covered under ASCPS. (a) 
107.29 	If a surgical procedure provided by an ASC is compensable under this chapter but is not 
107.30 	listed in addendum AA or BB of the Medicare ASCPS, payment must be 75 percent of the 
107.31 	ASC's usual and customary charge for the procedure with the highest charge. Payment for 
107.32 	each subsequent surgical procedure not listed in addendum AA or BB must be paid at 50 
107.33 	percent of the ASC's usual and customary charge.
108.1 	(b) Payment must be 75 percent of the ASC's usual and customary charge for a surgical 
108.2 	procedure or ancillary service if the procedure or service is listed in Medicare ASCPS 
108.3 	addendum AA or BB and: (1) the payment indicator provides it is paid at a reasonable cost; 
108.4 	(2) the payment indicator provides it is contractor priced; or (3) a payment rate is not 
108.5 	otherwise provided.
108.6 		Subd. 4.Study. The commissioner shall conduct a study analyzing the impact of the 
108.7 	reforms, including timeliness and accuracy of payment under this section, and recommend 
108.8 	further changes if needed. The commissioner must report the results of the study to the 
108.9 	Workers' Compensation Advisory Council and the chairs and ranking minority members 
108.10 	of the legislative committees with jurisdiction over workers' compensation by January 15, 
108.11 	2021.
108.12 		Subd. 5.Rulemaking. The commissioner may adopt or amend rules using the authority 
108.13 	in section 14.386, paragraph (a), to implement this section and the Medicare ASCPS for 
108.14 	workers' compensation. The rules are not subject to expiration under section 14.386, 
108.15 	paragraph (b).

108.16 	EFFECTIVE DATE. This section is effective for procedures and services provided by 
108.17 	an ASC on or after October 1, 2018, except subdivision 5 is effective the day following 
108.18 	final enactment.

108.19 	ARTICLE 13
108.20 	WORKERS' COMPENSATION BENEFITS

108.21 	Section 1. Minnesota Statutes 2016, section 176.011, subdivision 15, is amended to read:
108.22 		Subd. 15.Occupational disease. (a) "Occupational disease" means a mental impairment 
108.23 	as defined in paragraph (d) or physical disease arising out of and in the course of employment 
108.24 	peculiar to the occupation in which the employee is engaged and due to causes in excess of 
108.25 	the hazards ordinary of employment and shall include undulant fever. Physical stimulus 
108.26 	resulting in mental injury and mental stimulus resulting in physical injury shall remain 
108.27 	compensable. Mental impairment is not considered a disease if it results from a disciplinary 
108.28 	action, work evaluation, job transfer, layoff, demotion, promotion, termination, retirement, 
108.29 	or similar action taken in good faith by the employer. Ordinary diseases of life to which the 
108.30 	general public is equally exposed outside of employment are not compensable, except where 
108.31 	the diseases follow as an incident of an occupational disease, or where the exposure peculiar 
108.32 	to the occupation makes the disease an occupational disease hazard. A disease arises out of 
108.33 	the employment only if there be a direct causal connection between the conditions under 
109.1 	which the work is performed and if the occupational disease follows as a natural incident 
109.2 	of the work as a result of the exposure occasioned by the nature of the employment. An 
109.3 	employer is not liable for compensation for any occupational disease which cannot be traced 
109.4 	to the employment as a direct and proximate cause and is not recognized as a hazard 
109.5 	characteristic of and peculiar to the trade, occupation, process, or employment or which 
109.6 	results from a hazard to which the worker would have been equally exposed outside of the 
109.7 	employment.
109.8 	(b) If immediately preceding the date of disablement or death, an employee was employed 
109.9 	on active duty with an organized fire or police department of any municipality, as a member 
109.10 	of the Minnesota State Patrol, conservation officer service, state crime bureau, as a forest 
109.11 	officer by the Department of Natural Resources, state correctional officer, or sheriff or 
109.12 	full-time deputy sheriff of any county, and the disease is that of myocarditis, coronary 
109.13 	sclerosis, pneumonia or its sequel, and at the time of employment such employee was given 
109.14 	a thorough physical examination by a licensed doctor of medicine, and a written report 
109.15 	thereof has been made and filed with such organized fire or police department, with the 
109.16 	Minnesota State Patrol, conservation officer service, state crime bureau, Department of 
109.17 	Natural Resources, Department of Corrections, or sheriff's department of any county, which 
109.18 	examination and report negatived any evidence of myocarditis, coronary sclerosis, pneumonia 
109.19 	or its sequel, the disease is presumptively an occupational disease and shall be presumed 
109.20 	to have been due to the nature of employment. If immediately preceding the date of 
109.21 	disablement or death, any individual who by nature of their position provides emergency 
109.22 	medical care, or an employee who was employed as a licensed police officer under section 
109.23 	626.84, subdivision 1; firefighter; paramedic; state correctional officer; emergency medical 
109.24 	technician; or licensed nurse providing emergency medical care; and who contracts an 
109.25 	infectious or communicable disease to which the employee was exposed in the course of 
109.26 	employment outside of a hospital, then the disease is presumptively an occupational disease 
109.27 	and shall be presumed to have been due to the nature of employment and the presumption 
109.28 	may be rebutted by substantial factors brought by the employer or insurer. Any substantial 
109.29 	factors which shall be used to rebut this presumption and which are known to the employer 
109.30 	or insurer at the time of the denial of liability shall be communicated to the employee on 
109.31 	the denial of liability.
109.32 	(c) A firefighter on active duty with an organized fire department who is unable to 
109.33 	perform duties in the department by reason of a disabling cancer of a type caused by exposure 
109.34 	to heat, radiation, or a known or suspected carcinogen, as defined by the International 
109.35 	Agency for Research on Cancer, and the carcinogen is reasonably linked to the disabling 
110.1 	cancer, is presumed to have an occupational disease under paragraph (a). If a firefighter 
110.2 	who enters the service after August 1, 1988, is examined by a physician prior to being hired 
110.3 	and the examination discloses the existence of a cancer of a type described in this paragraph, 
110.4 	the firefighter is not entitled to the presumption unless a subsequent medical determination 
110.5 	is made that the firefighter no longer has the cancer.
110.6 	(d) For the purposes of this chapter, "mental impairment" means a diagnosis of 
110.7 	post-traumatic stress disorder by a licensed psychiatrist or psychologist. For the purposes 
110.8 	of this chapter, "post-traumatic stress disorder" means the condition as described in the most 
110.9 	recently published edition of the Diagnostic and Statistical Manual of Mental Disorders by 
110.10 	the American Psychiatric Association. For purposes of section 79.34, subdivision 2, one or 
110.11 	more compensable mental impairment claims arising out of a single event or occurrence 
110.12 	shall constitute a single loss occurrence.
110.13 	(e) If, preceding the date of disablement or death, an employee who was employed on 
110.14 	active duty as: a licensed police officer; a firefighter; a paramedic; an emergency medical 
110.15 	technician; a licensed nurse employed to provide emergency medical services outside of a 
110.16 	medical facility; a public safety dispatcher; an officer employed by the state or a political 
110.17 	subdivision at a corrections, detention, or secure treatment facility; a sheriff or full-time 
110.18 	deputy sheriff of any county; or a member of the Minnesota State Patrol is diagnosed with 
110.19 	a mental impairment as defined in paragraph (d), and had not been diagnosed with the mental 
110.20 	impairment previously, then the mental impairment is presumptively an occupational disease 
110.21 	and shall be presumed to have been due to the nature of employment. This presumption 
110.22 	may be rebutted by substantial factors brought by the employer or insurer. Any substantial 
110.23 	factors that are used to rebut this presumption and that are known to the employer or insurer 
110.24 	at the time of the denial of liability shall be communicated to the employee on the denial 
110.25 	of liability. The mental impairment is not considered an occupational disease if it results 
110.26 	from a disciplinary action, work evaluation, job transfer, layoff, demotion, promotion, 
110.27 	termination, retirement, or similar action taken in good faith by the employer.

110.28 	EFFECTIVE DATE. This section is effective for employees with dates of injury on 
110.29 	or after January 1, 2019.

110.30 	Sec. 2. Minnesota Statutes 2016, section 176.101, subdivision 2, is amended to read:
110.31 		Subd. 2.Temporary partial disability. (a) In all cases of temporary partial disability 
110.32 	the compensation shall be 66-2/3 percent of the difference between the weekly wage of the 
110.33 	employee at the time of injury and the wage the employee is able to earn in the employee's 
110.34 	partially disabled condition. This compensation shall be paid during the period of disability 
111.1 	except as provided in this section, payment to be made at the intervals when the wage was 
111.2 	payable, as nearly as may be, and subject to the maximum rate for temporary total 
111.3 	compensation.
111.4 	(b) Temporary partial compensation may be paid only while the employee is employed, 
111.5 	earning less than the employee's weekly wage at the time of the injury, and the reduced 
111.6 	wage the employee is able to earn in the employee's partially disabled condition is due to 
111.7 	the injury. Except as provided in section 176.102, subdivision 11, paragraphs (b) and (c), 
111.8 	temporary partial compensation may not be paid for more than 225 275 weeks, or after 450 
111.9 	weeks after the date of injury, whichever occurs first.
111.10 	(c) Temporary partial compensation must be reduced to the extent that the wage the 
111.11 	employee is able to earn in the employee's partially disabled condition plus the temporary 
111.12 	partial disability payment otherwise payable under this subdivision exceeds 500 percent of 
111.13 	the statewide average weekly wage.

111.14 	Sec. 3. Minnesota Statutes 2016, section 176.101, subdivision 2a, is amended to read:
111.15 		Subd. 2a.Permanent partial disability. (a) Compensation for permanent partial disability 
111.16 	is as provided in this subdivision. Permanent partial disability must be rated as a percentage 
111.17 	of the whole body in accordance with rules adopted by the commissioner under section 
111.18 	176.105. The percentage determined pursuant to the rules must be multiplied by the 
111.19 	corresponding amount in the following table:

111.20	Impairment Rating
			Amount
		
111.21	(percent)
					
111.23111.22
	less than 5.5
		$
	75,000
78,800
		
111.25111.24
	5.5 to less than 10.5
			80,000
84,000
		
111.27111.26
	10.5 to less than 15.5
			85,000
89,300
		
111.29111.28
	15.5 to less than 20.5
			90,000
94,500
		
111.31111.30
	20.5 to less than 25.5
			95,000
99,800
		
111.33111.32
	25.5 to less than 30.5
			100,000
105,000
		
111.35111.34
	30.5 to less than 35.5
			110,000
115,500
		
111.37111.36
	35.5 to less than 40.5
			120,000
126,000
		
112.2112.1
	40.5 to less than 45.5
			130,000
136,500
		
112.4112.3
	45.5 to less than 50.5
			140,000
147,000
		
112.6112.5
	50.5 to less than 55.5
			165,000
173,300
		
112.8112.7
	55.5 to less than 60.5
			190,000
199,500
		
112.10112.9	60.5 to less than 65.5
			215,000
225,800
		
112.12112.11
	65.5 to less than 70.5
			240,000
252,000
		
112.14112.13
	70.5 to less than 75.5
			265,000
278,300
		
112.16112.15
	75.5 to less than 80.5
			315,000
330,800
		
112.18112.17
	80.5 to less than 85.5
			365,000
383,300
		
112.20112.19
	85.5 to less than 90.5
			415,000
435,800
		
112.22112.21
	90.5 to less than 95.5
			465,000
488,300
		
112.24112.23
	95.5 up to and including 100
			515,000
540,800
		
112.25 	An employee may not receive compensation for more than a 100 percent disability of 
112.26 	the whole body, even if the employee sustains disability to two or more body parts.
112.27 	(b) Permanent partial disability is payable upon cessation of temporary total disability 
112.28 	under subdivision 1. If the employee requests payment in a lump sum, then the compensation 
112.29 	must be paid within 30 days. This lump-sum payment may be discounted to the present 
112.30 	value calculated up to a maximum five percent basis. If the employee does not choose to 
112.31 	receive the compensation in a lump sum, then the compensation is payable in installments 
112.32 	at the same intervals and in the same amount as the employee's temporary total disability 
112.33 	rate on the date of injury. Permanent partial disability is not payable while temporary total 
112.34 	compensation is being paid.

112.35 	Sec. 4. Minnesota Statutes 2016, section 176.101, subdivision 4, is amended to read:
112.36 		Subd. 4.Permanent total disability. For permanent total disability, as defined in 
112.37 	subdivision 5, the compensation shall be 66-2/3 percent of the daily wage at the time of the 
112.38 	injury, subject to a maximum weekly compensation equal to the maximum weekly 
112.39 	compensation for a temporary total disability and a minimum weekly compensation equal 
113.1 	to 65 percent of the statewide average weekly wage. This compensation shall be paid during 
113.2 	the permanent total disability of the injured employee but after a total of $25,000 of weekly 
113.3 	compensation has been paid, the amount of the weekly compensation benefits being paid 
113.4 	by the employer shall be reduced by the amount of any disability benefits being paid by 
113.5 	any government disability benefit program if the disability benefits are occasioned by the 
113.6 	same injury or injuries which give rise to payments under this subdivision. This reduction 
113.7 	shall also apply to any old age and survivor insurance benefits. Payments shall be made at 
113.8 	the intervals when the wage was payable, as nearly as may be. In case an employee who is 
113.9 	permanently and totally disabled becomes an inmate of a public institution, no compensation 
113.10 	shall be payable during the period of confinement in the institution, unless there is wholly 
113.11 	dependent on the employee for support some person named in section 176.111, subdivision 
113.12 	1, 2 or 3, in which case the compensation provided for in section 176.111, during the period 
113.13 	of confinement, shall be paid for the benefit of the dependent person during dependency. 
113.14 	The dependency of this person shall be determined as though the employee were deceased. 
113.15 	Permanent total disability shall cease at age 67 because the employee is presumed retired 
113.16 	from the labor market 72, except that if an employee is injured after age 67, permanent total 
113.17 	disability benefits shall cease after five years of those benefits have been paid. This 
113.18 	presumption is rebuttable by the employee. The subjective statement the employee is not 
113.19 	retired is not sufficient in itself to rebut the presumptive evidence of retirement but may be 
113.20 	considered along with other evidence.

113.21 	Sec. 5. Minnesota Statutes 2016, section 176.102, subdivision 11, is amended to read:
113.22 		Subd. 11.Retraining; compensation. (a) Retraining is limited to 156 weeks. An 
113.23 	employee who has been approved for retraining may petition the commissioner or 
113.24 	compensation judge for additional compensation not to exceed 25 percent of the 
113.25 	compensation otherwise payable. If the commissioner or compensation judge determines 
113.26 	that this additional compensation is warranted due to unusual or unique circumstances of 
113.27 	the employee's retraining plan, the commissioner may award additional compensation in 
113.28 	an amount not to exceed the employee's request. This additional compensation shall cease 
113.29 	at any time the commissioner or compensation judge determines the special circumstances 
113.30 	are no longer present.
113.31 	(b) If the employee is not employed during a retraining plan that has been specifically 
113.32 	approved under this section, temporary total compensation is payable for up to 90 days after 
113.33 	the end of the retraining plan; except that, payment during the 90-day period is subject to 
113.34 	cessation in accordance with section 176.101. If the employee is employed during the 
113.35 	retraining plan but earning less than at the time of injury, temporary partial compensation 
114.1 	is payable at the rate of 66-2/3 percent of the difference between the employee's weekly 
114.2 	wage at the time of injury and the weekly wage the employee is able to earn in the employee's 
114.3 	partially disabled condition, subject to the maximum rate for temporary total compensation. 
114.4 	Temporary partial compensation is not subject to the 225-week 275-week or 450-week 
114.5 	limitations provided by section 176.101, subdivision 2, during the retraining plan, but is 
114.6 	subject to those limitations before and after the plan.
114.7 	(c) Any request for retraining shall be filed with the commissioner before 208 weeks of 
114.8 	any combination of temporary total or temporary partial compensation have been paid. 
114.9 	Retraining shall not be available after 208 weeks of any combination of temporary total or 
114.10 	temporary partial compensation benefits have been paid unless the request for the retraining 
114.11 	has been filed with the commissioner prior to the time the 208 weeks of compensation have 
114.12 	been paid.
114.13 	(d) The employer or insurer must notify the employee in writing of the 208-week 
114.14 	limitation for filing a request for retraining with the commissioner. This notice must be 
114.15 	given before 80 weeks of temporary total disability or temporary partial disability 
114.16 	compensation have been paid, regardless of the number of weeks that have elapsed since 
114.17 	the date of injury. If the notice is not given before the 80 weeks, the period of time within 
114.18 	which to file a request for retraining is extended by the number of days the notice is late, 
114.19 	but in no event may a request be filed later than 225 weeks after any combination of 
114.20 	temporary total disability or temporary partial disability compensation have been paid. The 
114.21 	commissioner may assess a penalty of $25 per day that the notice is late, up to a maximum 
114.22 	penalty of $2,000, against an employer or insurer for failure to provide the notice. The 
114.23 	penalty is payable to the commissioner for deposit in the assigned risk safety account.

114.24 	Sec. 6. Minnesota Statutes 2016, section 176.83, subdivision 5, is amended to read:
114.25 		Subd. 5.Treatment standards for medical services. (a) In consultation with the Medical 
114.26 	Services Review Board or the rehabilitation review panel, the commissioner shall adopt 
114.27 	rules establishing standards and procedures for health care provider treatment. The rules 
114.28 	shall apply uniformly to all providers including those providing managed care under section 
114.29 	176.1351. The rules shall be used to determine whether a provider of health care services 
114.30 	and rehabilitation services, including a provider of medical, chiropractic, podiatric, surgical, 
114.31 	hospital, or other services, is performing procedures or providing services at a level or with 
114.32 	a frequency that is excessive, unnecessary, or inappropriate under section 176.135, 
114.33 	subdivision 1, based upon accepted medical standards for quality health care and accepted 
114.34 	rehabilitation standards.
115.1 	(b) The rules shall include, but are not limited to, the following:
115.2 	(1) criteria for diagnosis and treatment of the most common work-related injuries 
115.3 	including, but not limited to, low back injuries and upper extremity repetitive trauma injuries;
115.4 	(2) criteria for surgical procedures including, but not limited to, diagnosis, prior 
115.5 	conservative treatment, supporting diagnostic imaging and testing, and anticipated outcome 
115.6 	criteria;
115.7 	(3) criteria for use of appliances, adaptive equipment, and use of health clubs or other 
115.8 	exercise facilities;
115.9 	(4) criteria for diagnostic imaging procedures;
115.10 	(5) criteria for inpatient hospitalization;
115.11 	(6) criteria for treatment of chronic pain; and
115.12 	(7) criteria for the long-term use of opioids or other scheduled medications to alleviate 
115.13 	intractable pain and improve function, including the use of written contracts between the 
115.14 	injured worker and the health care provider who prescribes the medication.; and
115.15 	(8) criteria for treatment of post-traumatic stress disorder. In developing such treatment 
115.16 	criteria, the commissioner and the Medical Services Review Board shall consider the 
115.17 	guidance set forth in the American Psychological Association's most recently adopted 
115.18 	Clinical Practice Guideline for the Treatment of Posttraumatic Stress Disorder (PTSD) in 
115.19 	Adults. The commissioner shall adopt such rules using the expedited rulemaking process 
115.20 	in section 14.389, including subdivision 5, to commence promptly upon final enactment of 
115.21 	the legislation enacting this clause. Such rules shall apply to employees with all dates of 
115.22 	injury who receive treatment after the commissioner adopts the rules. In consultation with 
115.23 	the Medical Services Review Board, the commissioner shall review and update the rules 
115.24 	governing criteria for treatment of post-traumatic stress disorder each time the American 
115.25 	Psychological Association adopts a significant change to their Clinical Practice Guideline 
115.26 	for the Treatment of PTSD in Adults, using the expedited rulemaking process in section 
115.27 	14.389, including subdivision 5.
115.28 	(c) If it is determined by the payer that the level, frequency, or cost of a procedure or 
115.29 	service of a provider is excessive, unnecessary, or inappropriate according to the standards 
115.30 	established by the rules, the provider shall not be paid for the procedure, service, or cost by 
115.31 	an insurer, self-insurer, or group self-insurer, and the provider shall not be reimbursed or 
115.32 	attempt to collect reimbursement for the procedure, service, or cost from any other source, 
115.33 	including the employee, another insurer, the special compensation fund, or any government 
116.1 	program unless the commissioner or compensation judge determines at a hearing or 
116.2 	administrative conference that the level, frequency, or cost was not excessive under the 
116.3 	rules in which case the insurer, self-insurer, or group self-insurer shall make the payment 
116.4 	deemed reasonable.
116.5 	(d) A rehabilitation provider who is determined by the rehabilitation review panel board, 
116.6 	after hearing, to be consistently performing procedures or providing services at an excessive 
116.7 	level or cost may be prohibited from receiving any further reimbursement for procedures 
116.8 	or services provided under this chapter. A prohibition imposed on a provider under this 
116.9 	subdivision may be grounds for revocation or suspension of the provider's license or 
116.10 	certificate of registration to provide health care or rehabilitation service in Minnesota by 
116.11 	the appropriate licensing or certifying body. The commissioner and Medical Services Review 
116.12 	Board shall review excessive, inappropriate, or unnecessary health care provider treatment 
116.13 	under section 176.103.

116.14 	EFFECTIVE DATE. This section is effective June 1, 2018.

116.15 	Sec. 7. EFFECTIVE DATE.
 116.16 	Unless otherwise specified, this article is effective for employees with dates of injury 
116.17 	on or after October 1, 2018.

116.18 	ARTICLE 14
116.19 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; POLICY

116.20 	Section 1. Minnesota Statutes 2016, section 268.035, subdivision 12, is amended to read:
116.21 		Subd. 12.Covered employment. (a) "Covered employment" means the following unless 
116.22 	excluded as "noncovered employment" under subdivision 20:
116.23 	(1) an employee's entire employment during the calendar quarter if:
116.24 	(i)(1) 50 percent or more of the employment during the quarter is performed primarily
116.25 	in Minnesota;
116.26 	(ii) (2) 50 percent or more of the employment during the quarter is not performed 
116.27 	primarily in Minnesota or any other state, or Canada, but some of the employment is 
116.28 	performed in Minnesota and the base of operations or the place from which the employment 
116.29 	is directed or controlled is in Minnesota; or
116.30 	(iii) the employment during the quarter is not performed primarily in Minnesota or any 
116.31 	other state and the base of operations or place from which the employment is directed or 
117.1 	controlled is not in any state where part of the employment is performed, but the employee's 
117.2 	residence is in Minnesota during 50 percent or more of the calendar quarter;
117.3 	(2) an employee's entire employment during the calendar quarter performed within the 
117.4 	United States or Canada, if:
117.5 	(i) the employment is not covered employment under the unemployment insurance 
117.6 	program of any other state, federal law, or the law of Canada; and
117.7 	(ii) the place from which the employment is directed or controlled is in Minnesota;
117.8 	(3) the employment during the calendar quarter, is performed entirely outside the United 
117.9 	States and Canada, by an employee who is a United States citizen in the employ of an 
117.10 	American employer, if the employer's principal place of business in the United States is 
117.11 	located in Minnesota. For the purposes of this clause, an "American employer," for the 
117.12 	purposes of this clause, means a corporation organized under the laws of any state, an 
117.13 	individual who is a resident of the United States, or a partnership if two-thirds or more of 
117.14 	the partners are residents of the United States, or a trust, if all of the trustees are residents 
117.15 	of the United States is as defined under the Federal Unemployment Tax Act, United States 
117.16 	Code title 26, chapter 23, section 3306, subsection (j)(3); and
117.17 	(4) all the employment during the calendar quarter is performed by an officer or member 
117.18 	of the crew of an American vessel on or in connection with the vessel, if the operating on 
117.19 	navigable waters within, or within and without, the United States, and the office from which 
117.20 	the operations of the vessel operating on navigable waters within, or within and without, 
117.21 	the United States are ordinarily and regularly supervised, managed, directed, and controlled 
117.22 	is in Minnesota.
117.23 	(b) "Covered employment" includes covered agricultural employment under subdivision 
117.24 	11.
117.25 	(c) For the purposes of section 268.095, "covered employment" includes employment 
117.26 	covered under an unemployment insurance program:
117.27 	(1) of any other state; or
117.28 	(2) established by an act of Congress.; or
117.29 	(3) the law of Canada.
117.30 	(d) The percentage of employment performed under paragraph (a) is determined by the 
117.31 	amount of hours worked.
118.1 	(e) Covered employment does not include any employment defined as "noncovered 
118.2 	employment" under subdivision 20.

118.3 	Sec. 2. Minnesota Statutes 2017 Supplement, section 268.035, subdivision 20, is amended 
118.4 	to read:
118.5 		Subd. 20.Noncovered employment. "Noncovered employment" means:
118.6 	(1) employment for the United States government or an instrumentality thereof, including 
118.7 	military service;
118.8 	(2) employment for a state, other than Minnesota, or a political subdivision or 
118.9 	instrumentality thereof;
118.10 	(3) employment for a foreign government;
118.11 	(4) employment covered under the federal Railroad Unemployment Insurance Act;
118.12 	(5) employment for a church or convention or association of churches, or a nonprofit 
118.13 	organization operated primarily for religious purposes that is operated, supervised, controlled, 
118.14 	or principally supported by a church or convention or association of churches;
118.15 	(6) employment for an elementary or secondary school with a curriculum that includes 
118.16 	religious education that is operated by a church, a convention or association of churches, 
118.17 	or a nonprofit organization that is operated, supervised, controlled, or principally supported 
118.18 	by a church or convention or association of churches;
118.19 	(7) employment for Minnesota or a political subdivision, or a nonprofit organization, of 
118.20 	a duly ordained or licensed minister of a church in the exercise of a ministry or by a member 
118.21 	of a religious order in the exercise of duties required by the order;
118.22 	(8) employment for Minnesota or a political subdivision, or a nonprofit organization, of 
118.23 	an individual receiving rehabilitation of "sheltered" work in a facility conducted for the 
118.24 	purpose of carrying out a program of rehabilitation for individuals whose earning capacity 
118.25 	is impaired by age or physical or mental deficiency or injury or a program providing 
118.26 	"sheltered" work for individuals who because of an impaired physical or mental capacity 
118.27 	cannot be readily absorbed in the competitive labor market. This clause applies only to 
118.28 	services performed in a facility certified by the Rehabilitation Services Branch of the 
118.29 	department or in a day training or habilitation program licensed by the Department of Human 
118.30 	Services;
118.31 	(9) employment for Minnesota or a political subdivision, or a nonprofit organization, of 
118.32 	an individual receiving work relief or work training as part of an unemployment work relief 
119.1 	or work training program financed in whole or in part by any federal agency or an agency 
119.2 	of a state or political subdivision thereof. This clause does not apply to programs that require 
119.3 	unemployment benefit coverage for the participants;
119.4 	(10) employment for Minnesota or a political subdivision, as an elected official, a member 
119.5 	of a legislative body, or a member of the judiciary;
119.6 	(11) employment as a member of the Minnesota National Guard or Air National Guard;
119.7 	(12) employment for Minnesota or a political subdivision, or instrumentality thereof, of 
119.8 	an individual serving on a temporary basis in case of fire, flood, tornado, or similar 
119.9 	emergency;
119.10 	(13) employment as an election official or election worker for Minnesota or a political 
119.11 	subdivision, if the compensation for that employment was less than $1,000 in a calendar 
119.12 	year;
119.13 	(14) employment for Minnesota that is a major policy-making or advisory position in 
119.14 	the unclassified service;
119.15 	(15) employment for Minnesota in an unclassified position established under section 
119.16 	43A.08, subdivision 1a;
119.17 	(16) employment for a political subdivision of Minnesota that is a nontenured major 
119.18 	policy making or advisory position;
119.19 	(17) domestic employment in a private household, local college club, or local chapter 
119.20 	of a college fraternity or sorority, if the wages paid in any calendar quarter in either the 
119.21 	current or prior calendar year to all individuals in domestic employment totaled less than 
119.22 	$1,000.
119.23 	"Domestic employment" includes all service in the operation and maintenance of a 
119.24 	private household, for a local college club, or local chapter of a college fraternity or sorority 
119.25 	as distinguished from service as an employee in the pursuit of an employer's trade or business;
119.26 	(18) employment of an individual by a son, daughter, or spouse, and employment of a 
119.27 	child under the age of 18 by the child's father or mother;
119.28 	(19) employment of an inmate of a custodial or penal institution;
119.29 	(20) employment for a school, college, or university, by a student who is enrolled and 
119.30 	whose primary relation to the school, college, or university is as a student. This does not 
119.31 	include an individual whose primary relation to the school, college, or university is as an 
119.32 	employee who also takes courses;
120.1 	(21) employment of an individual who is enrolled as a student in a full-time program at 
120.2 	a nonprofit or public educational institution that maintains a regular faculty and curriculum 
120.3 	and has a regularly organized body of students in attendance at the place where its educational 
120.4 	activities are carried on, taken for credit at the institution, that combines academic instruction 
120.5 	with work experience, if the employment is an integral part of the program, and the institution 
120.6 	has so certified to the employer, except that this clause does not apply to employment in a 
120.7 	program established for or on behalf of an employer or group of employers;
120.8 	(22) employment of a foreign college or university student who works on a seasonal or 
120.9 	temporary basis under the J-1 visa summer work travel program described in Code of Federal 
120.10 	Regulations, title 22, section 62.32;
120.11 	(22) (23) employment of university, college, or professional school students in an 
120.12 	internship or other training program with the city of St. Paul or the city of Minneapolis 
120.13 	under Laws 1990, chapter 570, article 6, section 3;
120.14 	(23) (24) employment for a hospital by a patient of the hospital. "Hospital" means an 
120.15 	institution that has been licensed by the Department of Health as a hospital;
120.16 	(24) (25) employment as a student nurse for a hospital or a nurses' training school by 
120.17 	an individual who is enrolled and is regularly attending classes in an accredited nurses' 
120.18 	training school;
120.19 	(25) (26) employment as an intern for a hospital by an individual who has completed a 
120.20 	four-year course in an accredited medical school;
120.21 	(26) (27) employment as an insurance salesperson, by other than a corporate officer, if 
120.22 	all the wages from the employment is solely by way of commission. The word "insurance" 
120.23 	includes an annuity and an optional annuity;
120.24 	(27) (28) employment as an officer of a township mutual insurance company or farmer's 
120.25 	mutual insurance company under chapter 67A;
120.26 	(28) (29) employment of a corporate officer, if the officer directly or indirectly, including 
120.27 	through a subsidiary or holding company, owns 25 percent or more of the employer 
120.28 	corporation, and employment of a member of a limited liability company, if the member 
120.29 	directly or indirectly, including through a subsidiary or holding company, owns 25 percent 
120.30 	or more of the employer limited liability company;
120.31 	(29) (30) employment as a real estate salesperson, other than a corporate officer, if all 
120.32 	the wages from the employment is solely by way of commission;
121.1 	(30) (31) employment as a direct seller as defined in United States Code, title 26, section 
121.2 	3508;
121.3 	(31) (32) employment of an individual under the age of 18 in the delivery or distribution 
121.4 	of newspapers or shopping news, not including delivery or distribution to any point for 
121.5 	subsequent delivery or distribution;
121.6 	(32) (33) casual employment performed for an individual, other than domestic 
121.7 	employment under clause (17), that does not promote or advance that employer's trade or 
121.8 	business;
121.9 	(33) (34) employment in "agricultural employment" unless it is "covered agricultural 
121.10 	employment" under subdivision 11; or
121.11 	(34) (35) if employment during one-half or more of any pay period was covered 
121.12 	employment, all the employment for the pay period is covered employment; but if during 
121.13 	more than one-half of any pay period the employment was noncovered employment, then 
121.14 	all of the employment for the pay period is noncovered employment. "Pay period" means 
121.15 	a period of not more than a calendar month for which a payment or compensation is ordinarily 
121.16 	made to the employee by the employer.

121.17 	Sec. 3. Minnesota Statutes 2016, section 268.051, subdivision 2a, is amended to read:
121.18 		Subd. 2a.Unemployment insurance tax limits reduction. (a) If the balance in the trust 
121.19 	fund on December 31 of any calendar year is four percent or more above the amount equal 
121.20 	to an average high cost multiple of 1.0, future unemployment taxes payable must be reduced 
121.21 	by all amounts above 1.0. The amount of tax reduction for any taxpaying employer is the 
121.22 	same percentage of the total amount above 1.0 as the percentage of taxes paid by the 
121.23 	employer during the calendar year is of the total amount of taxes that were paid by all 
121.24 	nonmaximum experience rated employers during the year except taxes paid by employers 
121.25 	assigned a tax rate equal to the maximum experience rating plus the applicable base tax 
121.26 	rate.
121.27 	(b) For purposes of this subdivision, "average high cost multiple" has the meaning given 
121.28 	in Code of Federal Regulations, title 20, section 606.3, as amended through December 31, 
121.29 	2015. An amount equal to an average high cost multiple of 1.0 is a federal measure of 
121.30 	adequate reserves in relation to the state's current economy. The commissioner must calculate 
121.31 	and publish, as soon as possible following December 31 of any calendar year, the trust fund 
121.32 	balance on December 31 along with the amount an average high cost multiple of 1.0 equals. 
121.33 	Actual wages paid must be used in the calculation and estimates may not be used.
122.1 	(c) The unemployment tax reduction under this subdivision does not apply to employers 
122.2 	that were at assigned a tax rate equal to the maximum experience rating plus the applicable 
122.3 	base tax rate for the year, nor to high experience rating industry employers under subdivision 
122.4 	5, paragraph (b). Computations under paragraph (a) are not subject to the rounding 
122.5 	requirement of section 268.034. The refund provisions of section 268.057, subdivision 7, 
122.6 	do not apply.
122.7 	(d) The unemployment tax reduction under this subdivision applies to taxes paid payable
122.8 	between March 1 and December 15 of the year following the December 31 computation 
122.9 	under paragraph (a).
122.10 	(e) The amount equal to the average high cost multiple of 1.0 on December 31, 2012, 
122.11 	must be used for the calculation under paragraph (a) but only for the calculation made on 
122.12 	December 31, 2015. Notwithstanding paragraph (d), the tax reduction resulting from the 
122.13 	application of this paragraph applies to unemployment taxes paid between July 1, 2016, 
122.14 	and June 30, 2017. If there was an experience rating history transfer under subdivision 4, 
122.15 	the successor employer must receive that portion of the predecessor employer's tax reduction 
122.16 	equal to that portion of the experience rating history transferred. The predecessor employer 
122.17 	retains that portion of tax reduction not transferred to the successor. This paragraph applies 
122.18 	to that portion of the tax reduction that remains unused at the time notice of acquisition is 
122.19 	provided under subdivision 4, paragraph (e).

122.20 	EFFECTIVE DATE. This section is effective July 1, 2018.

122.21 	Sec. 4. ADDITIONAL UNEMPLOYMENT BENEFITS PROGRAM FOR WORKERS 
122.22 	LAID OFF FROM INTERNATIONAL BILDRITE, INC.
 122.23 		Subdivision 1.Availability of additional benefits. Additional unemployment benefits 
122.24 	are available from the Minnesota unemployment insurance trust fund to an applicant who 
122.25 	was laid off due to lack of work between December 1, 2017, and June 30, 2018, at 
122.26 	International Bildrite, Inc. facilities in International Falls.
122.27 		Subd. 2.Eligibility requirements. An applicant is eligible to receive additional 
122.28 	unemployment benefits under this section for any week beginning April 1, 2018, through 
122.29 	the week ending June 1, 2019, if:
122.30 	(1) the applicant established a benefit account under Minnesota Statutes, section 268.07, 
122.31 	with a majority of the wage credits from International Bildrite, Inc., and has exhausted the 
122.32 	maximum amount of regular unemployment benefits available on that benefit account; and
123.1 	(2) the applicant meets the same requirements that an applicant for regular unemployment 
123.2 	benefits must meet under Minnesota Statutes, section 268.069, subdivision 1.
123.3 		Subd. 3.Weekly and maximum amount of additional unemployment benefits. (a) 
123.4 	The weekly benefit amount of additional unemployment benefits is the same as the weekly 
123.5 	benefit amount of regular unemployment benefits on the benefit account established in 
123.6 	subdivision 2, clause (1).
123.7 	(b) The maximum amount of additional unemployment benefits available to an applicant 
123.8 	under this section is an amount equal to 13 weeks of payment at the applicant's weekly 
123.9 	additional unemployment benefit amount.
123.10 	(c) If an applicant qualifies for a new regular benefit account that meets the requirements 
123.11 	of subdivision 4, paragraph (b), before the applicant has been paid additional unemployment 
123.12 	benefits, and that new regular benefit account meets the requirements of subdivision 2, 
123.13 	clause (1), the applicant's weekly additional unemployment benefit amount is equal to the 
123.14 	weekly unemployment benefit amount on the applicant's new regular benefit account.
123.15 		Subd. 4.Qualifying for a new regular benefit account. (a) If after exhausting the 
123.16 	maximum amount of regular unemployment benefits available as a result of the layoff under 
123.17 	subdivision 1, an applicant qualifies for the new regular benefit account under Minnesota 
123.18 	Statutes, section 268.07, the applicant must apply for and establish that new regular benefit 
123.19 	account.
123.20 	(b) If the applicant's weekly benefit amount under the new regular benefit account is 
123.21 	equal to or higher than the applicant's weekly additional unemployment benefit amount, the 
123.22 	applicant must request unemployment benefits under the new regular benefit account. An 
123.23 	applicant is ineligible for additional unemployment benefits under this section until the 
123.24 	applicant has exhausted the maximum amount of unemployment benefits available on the 
123.25 	new regular benefit account.
123.26 	(c) If the applicant's weekly unemployment benefit amount on the new regular benefit 
123.27 	account is less than the applicant's weekly benefit amount of additional unemployment 
123.28 	benefits, the applicant must request additional unemployment benefits. An applicant is 
123.29 	ineligible for new regular unemployment benefits until the applicant has exhausted the 
123.30 	maximum amount of additional unemployment benefits available under this section.
123.31 		Subd. 5.Charging of benefits. Additional unemployment benefits paid under this section 
123.32 	must be used to compute the future unemployment tax rate of a taxpaying employer or 
123.33 	charged to the reimbursing account of government or nonprofit employers.
124.1 		Subd. 6.Eligibility for federal Trade Readjustment Allowance benefits. An applicant 
124.2 	who has applied and been determined eligible for federal Trade Readjustment Allowance 
124.3 	benefits is not eligible for extended unemployment benefits under this section.

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

124.5 	Sec. 5. EFFECTIVE DATE.
 124.6 	Unless otherwise specified, this article is effective September 16, 2018.

124.7 	ARTICLE 15
124.8 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; INTEREST

124.9 	Section 1. Minnesota Statutes 2016, section 268.057, subdivision 5, is amended to read:
124.10 		Subd. 5.Interest on amounts past due. If any amounts due from an employer under 
124.11 	this chapter or section 116L.20, except late fees under section 268.044, are not received on 
124.12 	the date due the unpaid balance bearsthe commissioner must assess interest on any amount 
124.13 	that remains unpaid. Interest is assessed at the rate of one percent per month or any part of 
124.14 	a month. Interest is not assessed on unpaid interest. Interest collected under this subdivision 
124.15 	is credited to the contingent account.

124.16 	EFFECTIVE DATE. This section is effective October 1, 2019.

124.17 	Sec. 2. Minnesota Statutes 2017 Supplement, section 268.18, subdivision 2b, is amended 
124.18 	to read:
124.19 		Subd. 2b.Interest.  On any unemployment benefits obtained by misrepresentation, and 
124.20 	any penalty amounts assessed under subdivision 2, the commissioner must assess interest 
124.21 	at the rate of one percent per month on any amount that remains unpaid beginning 30 calendar 
124.22 	days after the date of a determination of overpayment penalty. Interest is assessed at the 
124.23 	rate of one percent per month or any part of a month. A determination of overpayment 
124.24 	penalty must state that interest will be assessed. Interest is not assessed in the same manner 
124.25 	as on employer debt under section 268.057, subdivision 5 on unpaid interest. Interest 
124.26 	payments collected under this subdivision are is credited to the trust fund.

124.27 	EFFECTIVE DATE. This section is effective October 1, 2019.

124.28 	Sec. 3. EFFECTIVE DATE.
 124.29 	Unless otherwise specified, this article is effective September 16, 2018.

125.1 	ARTICLE 16
125.2 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; BASE PERIODS

125.3 	Section 1. Minnesota Statutes 2016, section 268.035, subdivision 4, is amended to read:
125.4 		Subd. 4.Base period. (a) "Base period," unless otherwise provided in this subdivision, 
125.5 	means the most recent four completed calendar quarters before the effective date of an 
125.6 	applicant's application for unemployment benefits if the application has an effective date 
125.7 	occurring after the month following the most recent completed calendar quarter. The base 
125.8 	period under this paragraph is as follows:

125.9125.10
125.11
		If the application for unemployment 
benefits is effective on or between these 
dates:
		The base period is the prior:
	
125.12		February 1 - March 31
		January 1 - December 31
	
125.13		May 1 - June 30
		April 1 - March 31
	
125.14		August 1 - September 30
		July 1 - June 30
	
125.15		November 1 - December 31
		October 1 - September 30
	
125.16 	(b) If an application for unemployment benefits has an effective date that is during the 
125.17 	month following the most recent completed calendar quarter, then the base period is the 
125.18 	first four of the most recent five completed calendar quarters before the effective date of 
125.19 	an applicant's application for unemployment benefits. The base period under this paragraph 
125.20 	is as follows:

125.21
125.22
125.23		If the application for unemployment 
benefits is effective on or between these 
dates:
		The base period is the prior:
	
125.24		January 1 -  January 31
		October 1 - September 30
	
125.25		April 1 -  April 30
		January 1 - December 31
	
125.26		July 1 -  July 31
		April 1 - March 31
	
125.27		October 1 -  October 31
		July 1 - June 30
	
125.28 	(c) Regardless of paragraph (a), a base period of the first four of the most recent five 
125.29 	completed calendar quarters must be used if the applicant would have more wage credits 
125.30 	under that base period than under a base period of the four most recent completed calendar 
125.31 	quarters.
125.32 	(d) If the applicant under paragraph (b) has insufficient wage credits to establish a benefit 
125.33 	account, then a base period of the most recent four completed calendar quarters before the 
125.34 	effective date of the applicant's application for unemployment benefits must be used.
126.1 	(e) (d) If the applicant has insufficient wage credits to establish a benefit account under 
126.2 	a base period of the four most recent completed calendar quarters, or a base period of the 
126.3 	first four of the most recent five completed calendar quarters, but during either base period 
126.4 	the applicant received workers' compensation for temporary disability under chapter 176 
126.5 	or a similar federal law or similar law of another state, or if the applicant whose own serious 
126.6 	illness caused a loss of work for which the applicant received compensation for loss of 
126.7 	wages from some other source, the applicant may request a base period as follows:
126.8 	(1) if an applicant was compensated for a loss of work of seven to 13 weeks,during a 
126.9 	base period referred to in paragraph (a) or (b), then the base period is the first four of the 
126.10 	most recent six completed calendar quarters before the effective date of the application for 
126.11 	unemployment benefits;
126.12 	(2) if an applicant was compensated for a loss of work of 14 to 26 weeks,during a base 
126.13 	period referred to in paragraph (a) or (b), then the base period is the first four of the most 
126.14 	recent seven completed calendar quarters before the effective date of the application for 
126.15 	unemployment benefits;
126.16 	(3) if an applicant was compensated for a loss of work of 27 to 39 weeks,during a base 
126.17 	period referred to in paragraph (a) or (b), then the base period is the first four of the most 
126.18 	recent eight completed calendar quarters before the effective date of the application for 
126.19 	unemployment benefits; and
126.20 	(4) if an applicant was compensated for a loss of work of 40 to 52 weeks,during a base 
126.21 	period referred to in paragraph (a) or (b), then the base period is the first four of the most 
126.22 	recent nine completed calendar quarters before the effective date of the application for 
126.23 	unemployment benefits.
126.24 	(f) (e) No base period under this subdivision may include wage credits upon which a 
126.25 	prior benefit account was established.

126.26 	Sec. 2. Minnesota Statutes 2017 Supplement, section 268.07, subdivision 1, is amended 
126.27 	to read:
126.28 		Subdivision 1.Application for unemployment benefits; determination of benefit 
126.29 	account. (a) An application for unemployment benefits may be filed in person, by mail, or 
126.30 	by electronic transmission as the commissioner may require. The applicant must be 
126.31 	unemployed at the time the application is filed and must provide all requested information 
126.32 	in the manner required. If the applicant is not unemployed at the time of the application or 
127.1 	fails to provide all requested information, the communication is not an application for 
127.2 	unemployment benefits.
127.3 	(b) The commissioner must examine each application for unemployment benefits to 
127.4 	determine the base period and the benefit year, and based upon all the covered employment 
127.5 	in the base period the commissioner must determine the weekly unemployment benefit 
127.6 	amount available, if any, and the maximum amount of unemployment benefits available, 
127.7 	if any. The determination, which is a document separate and distinct from a document titled 
127.8 	a determination of eligibility or determination of ineligibility issued under section 268.101, 
127.9 	must be titled determination of benefit account. A determination of benefit account must 
127.10 	be sent to the applicant and all base period employers, by mail or electronic transmission.
127.11 	(c) If a base period employer did not provide wage detail information for the applicant 
127.12 	as required under section 268.044, or provided erroneous information, or wage detail is not 
127.13 	yet due and the applicant is using a base period under section 268.035, subdivision 4, 
127.14 	paragraph (d), the commissioner may accept an applicant certification of wage credits, based 
127.15 	upon the applicant's records, and issue a determination of benefit account.
127.16 	(d) An employer must provide wage detail information on an applicant within five 
127.17 	calendar days of request by the commissioner, in a manner and format requested, when:
127.18 	(1) the applicant is using a base period under section 268.035, subdivision 4, paragraph 
127.19 	(d); and
127.20 	(2) wage detail under section 268.044 is not yet required to have been filed by the 
127.21 	employer.
127.22 	(e) (d) The commissioner may, at any time within 24 months from the establishment of 
127.23 	a benefit account, reconsider any determination of benefit account and make an amended 
127.24 	determination if the commissioner finds that the wage credits listed in the determination 
127.25 	were incorrect for any reason. An amended determination of benefit account must be 
127.26 	promptly sent to the applicant and all base period employers, by mail or electronic 
127.27 	transmission. This subdivision does not apply to documents titled determinations of eligibility 
127.28 	or determinations of ineligibility issued under section 268.101.
127.29 	(f) (e) If an amended determination of benefit account reduces the weekly unemployment 
127.30 	benefit amount or maximum amount of unemployment benefits available, any unemployment 
127.31 	benefits that have been paid greater than the applicant was entitled is an overpayment of 
127.32 	unemployment benefits. A determination or amended determination issued under this section 
127.33 	that results in an overpayment of unemployment benefits must set out the amount of the 
128.1 	overpayment and the requirement under section 268.18, subdivision 1, that the overpaid 
128.2 	unemployment benefits must be repaid.

128.3 	Sec. 3. EFFECTIVE DATE.
 128.4 	Unless otherwise specified, this article is effective September 16, 2018.

128.5 	ARTICLE 17
128.6 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; HOUSEKEEPING

128.7 	Section 1. Minnesota Statutes 2017 Supplement, section 268.035, subdivision 15, is 
128.8 	amended to read:
128.9 		Subd. 15.Employment. (a) "Employment" means service performed by:
128.10 	(1) an individual who is an employee under the common law of employer-employee and 
128.11 	not an independent contractor;
128.12 	(2) an officer of a corporation;
128.13 	(3) a member of a limited liability company who is an employee under the common law 
128.14 	of employer-employee; or
128.15 	(4) an individual who is an employee under the Federal Insurance Contributions Act, 
128.16 	United States Code, title 26, chapter 21, sections 3121 (d)(3)(A) and 3121 (d)(3)(D); or
128.17 	(4) (5) product demonstrators in retail stores or other locations to aid in the sale of 
128.18 	products. The person that pays the wages is the employer.
128.19 	(b) Employment does not include service as a juror.
128.20 	(c) Construction industry employment is defined in subdivision 9a. Trucking and 
128.21 	messenger/courier industry employment is defined in subdivision 25b. Rules on determining 
128.22 	worker employment status are described under Minnesota Rules, chapter 3315.

128.23 	Sec. 2. Minnesota Statutes 2016, section 268.044, subdivision 2, is amended to read:
128.24 		Subd. 2.Failure to timely file report; late fees. (a) Any employer that fails to submit 
128.25 	the quarterly wage detail report when due must pay a late fee of $10 per employee, computed 
128.26 	based upon the highest of:
128.27 	(1) the number of employees reported on the last wage detail report submitted;
128.28 	(2) the number of employees reported in the corresponding quarter of the prior calendar 
128.29 	year; or
129.1 	(3) if no wage detail report has ever been submitted, the number of employees listed at 
129.2 	the time of employer registration.
129.3 	The late fee is canceled if the wage detail report is received within 30 calendar days 
129.4 	after a demand for the report is sent to the employer by mail or electronic transmission. A 
129.5 	late fee assessed an employer may not be canceled more than twice each 12 months. The 
129.6 	amount of the late fee assessed may not be less than $250.
129.7 	(b) If the wage detail report is not received in a manner and format prescribed by the 
129.8 	commissioner within 30 calendar days after demand is sent under paragraph (a), the late 
129.9 	fee assessed under paragraph (a) doubles and a renewed demand notice and notice of the 
129.10 	increased late fee will be sent to the employer by mail or electronic transmission.
129.11 	(c) Late fees due under this subdivision may be canceled, in whole or in part, under 
129.12 	section 268.066 where good cause for late submission is found by the commissioner 268.067.

129.13 	Sec. 3. Minnesota Statutes 2016, section 268.047, subdivision 3, is amended to read:
129.14 		Subd. 3.Exceptions for taxpaying employers. Unemployment benefits paid will not 
129.15 	be used in computing the future tax rate of a taxpaying base period employer when:
129.16 	(1) the applicant's wage credits from that employer are less than $500;
129.17 	(2) the applicant quit the employment, unless it was determined under section 268.095, 
129.18 	to have been because of a good reason caused by the employer or because the employer 
129.19 	notified the applicant of discharge within 30 calendar days. This exception applies only to 
129.20 	unemployment benefits paid for periods after the applicant's quitting the employment and, 
129.21 	if the applicant is rehired by the employer, continues only until the beginning of the week 
129.22 	the applicant is rehired; or
129.23 	(3) the employer discharged the applicant from employment because of employment 
129.24 	misconduct as determined under section 268.095. This exception applies only to 
129.25 	unemployment benefits paid for periods after the applicant's discharge from employment
129.26 	and, if the applicant is rehired by the employer, continues only until the beginning of the 
129.27 	week the applicant is rehired.

129.28 	EFFECTIVE DATE. This section is effective October 1, 2019.

129.29 	Sec. 4. Minnesota Statutes 2016, section 268.059, is amended to read:
129.30 	268.059 GARNISHMENT FOR DELINQUENT TAXES AND UNEMPLOYMENT 
129.31 	BENEFIT OVERPAYMENTS.
130.1 		Subdivision 1.Notice Authority. The commissioner may give notice to any employer 
130.2 	that an employee owes any amounts due under this chapter or section 116L.20, and that the 
130.3 	obligation should be withheld from the employee's wages. The commissioner may proceed 
130.4 	only if the amount due is uncontested or if the time for any appeal has expired.The 
130.5 	commissioner may garnish an employee's wages to collect amounts due under this chapter 
130.6 	or section 116L.20, as set forth in this section. Chapter 571 does not apply, except as 
130.7 	referenced in this section.
130.8 		Subd. 1a.Notice. The commissioner may not proceed with a garnishment until 30 
130.9 	calendar days after sending to the debtor employee, by mail or electronic transmission, a 
130.10 	notice of intent to garnish wages and exemption notice. That notice must list include:
130.11 	(1) the amount due from the debtor;
130.12 	(2) demand for immediate payment; and
130.13 	(3) the intention to serve a garnishment notice on the debtor's employer.
130.14 	The notice expires 180 calendar days after it has been sent to the debtor provided that 
130.15 	the notice may be renewed by sending a new notice that is in accordance with this section. 
130.16 	The renewed notice has the effect of reinstating the priority of the original notice. The 
130.17 	exemption notice must be in substantially the same form as in section 571.72. The exemption 
130.18 	notice must inform the debtor of the right to claim exemptions contained in section 550.37, 
130.19 	subdivision 14. If no claim of exemption is received by the commissioner within 30 calendar 
130.20 	days after sending of the notice, the commissioner may proceed with the garnishment. The 
130.21 	notice to the debtor's employer may be served by mail or electronic transmission and must 
130.22 	be in substantially the same form as in section 571.75.
130.23 		Subd. 2.Employer action. (a) Thirty calendar days after sending the notice of intent to 
130.24 	garnish, the commissioner may send to the debtor's employer, by mail or electronic 
130.25 	transmission, a notice of garnishment, including a worksheet for determining the amount 
130.26 	to be withheld from wages each pay period. The amount to be withheld from wages is 
130.27 	subject to the limitations in section 571.922. Upon receipt of the garnishment notice, the 
130.28 	employer must withhold from the earnings wages due or to become due to the employee, 
130.29 	the amount shown on the notice plus accrued interest, subject to section 571.922 determined 
130.30 	by the employer plus accrued interest. The employer must continue to withhold each pay 
130.31 	period the amount shown on the noticedetermined by the employer plus accrued interest 
130.32 	until the garnishment notice is released by the commissioner. Upon receipt of notice by the 
130.33 	employer, the claim of the commissioner has priority over any subsequent garnishments or 
130.34 	wage assignments. The commissioner may arrange between the employer and employee 
131.1 	for withholding a portion of the total amount due the employee each pay period, agree to 
131.2 	accept a withholding amount that is less than the amount determined by the employer on 
131.3 	the worksheet until the total amount shown on the notice due plus accrued interest has been 
131.4 	withheld.
131.5 	(b) The "earnings due" any employee For the purposes of this section, "wages" is as 
131.6 	defined in section 571.921 268.035, subdivision 29.
131.7 	(b) (c) The maximum garnishment allowed for any one pay period must be decreased 
131.8 	by any amounts payable under any other garnishment action served before the garnishment 
131.9 	notice, and any amounts covered by any irrevocable and previously effective assignment 
131.10 	of wages;. The employer must give notice to the commissioner of the amounts and the facts 
131.11 	relating to the other garnishment or assignment within ten calendar days after the service 
131.12 	of the garnishment notice on the form worksheet provided by the commissioner.
131.13 	(c) (d) Within ten calendar days after the expiration of the pay period, the employer must 
131.14 	remit to the commissioner, on a form and in the manner prescribed by the commissioner, 
131.15 	the amount withheld during each pay period.
131.16 		Subd. 3.Discharge or discipline prohibited. (a) If the employee ceases to be employed 
131.17 	by the employer before the full amount set forth on the garnishment notice due plus accrued 
131.18 	interest has been withheld, the employer must immediately notify the commissioner in 
131.19 	writing or by electronic transmission, as prescribed by the commissioner, of the termination 
131.20 	date of the employee and the total amount withheld. No employer may discharge or discipline 
131.21 	any employee because the commissioner has proceeded under this section. If an employer 
131.22 	discharges an employee in violation of this section, the employee has the same remedy as 
131.23 	provided in section 571.927, subdivision 2.
131.24 	(b) This section applies if the employer is the state of Minnesota or any political 
131.25 	subdivision.
131.26 	(c) The commissioner must refund to the employee any excess amounts withheld from 
131.27 	the employee.
131.28 	(d) An employer that fails or refuses to comply with this section is jointly and severally 
131.29 	liable for the total amount due from the employee. Any amount due from the employer 
131.30 	under this paragraph may be collected in the same manner as any other amounts due from 
131.31 	an employer under this chapter.

132.1 	Sec. 5. Minnesota Statutes 2016, section 268.085, subdivision 3, is amended to read:
132.2 		Subd. 3.Vacation and sick payments that delay unemployment benefits. (a) An 
132.3 	applicant is not eligible to receive unemployment benefits for any week the applicant is 
132.4 	receiving, has received, or will receive vacation pay, sick pay, or personal time off pay, also 
132.5 	known as "PTO."
132.6 	This paragraph only applies upon temporary, indefinite, or seasonal separation and does 
132.7 	not apply:
132.8 	(1) upon a permanent separation from employment; or
132.9 	(2) to payments from a vacation fund administered by a union or a third party not under 
132.10 	the control of the employer.
132.11 	Payments under this paragraph subdivision are applied to the period immediately 
132.12 	following the temporary, indefinite, or seasonal separation. later of the date of separation 
132.13 	from employment or the date the applicant first becomes aware that the employer will be 
132.14 	making a payment. The date the payment is actually made or received, or that an applicant 
132.15 	must agree to a release of claims, does not affect the application of this paragraph.
132.16 	(b) This subdivision applies to all the weeks of payment. The weeks of payment is 
132.17 	determined as follows:
132.18 	(1) if the payments are made periodically, the total of the payments to be received is 
132.19 	divided by the applicant's last level of regular weekly pay from the employer; or
132.20 	(2) if the payment is made in a lump sum, that sum is divided by the applicant's last level 
132.21 	of regular weekly pay from the employer.
132.22 	The "last level of regular weekly pay" includes commissions, bonuses, and overtime 
132.23 	pay if that is part of the applicant's ongoing regular compensation.
132.24 	(c) Under this subdivision, if the payment with respect to a week is equal to or more 
132.25 	than the applicant's weekly unemployment benefit amount, the applicant is ineligible for 
132.26 	benefits for that week. If the payment with respect to a week is less than the applicant's 
132.27 	weekly unemployment benefit amount, unemployment benefits are reduced by the amount 
132.28 	of the payment.
132.29 	(b) (d) An applicant is not eligible to receive unemployment benefits for any week the 
132.30 	applicant is receiving, has received, or will receive severance pay, bonus pay, or any other 
132.31 	payments paid by an employer because of, upon, or after separation from employment.
132.32 	This paragraph only applies if the payment is:
133.1 	(1) considered wages under section 268.035, subdivision 29; or
133.2 	(2) subject to the Federal Insurance Contributions Act (FICA) tax imposed to fund Social 
133.3 	Security and Medicare.
133.4 	Payments under this paragraph are applied to the period immediately following the later 
133.5 	of the date of separation from employment or the date the applicant first becomes aware 
133.6 	that the employer will be making a payment. The date the payment is actually made or 
133.7 	received, or that an applicant must agree to a release of claims, does not affect the application 
133.8 	of this paragraph.
133.9 	This paragraph does not apply to earnings under subdivision 5, back pay under 
133.10 	subdivision 6, or vacation pay, sick pay, or personal time off pay under paragraph (a).
133.11 	(e) Paragraph (a) applies to all the weeks of payment. The weeks of payment is determined 
133.12 	in accordance with subdivision 3, paragraph (b).
133.13 	(f) Under this subdivision, if the payment with respect to a week is equal to or more than 
133.14 	the applicant's weekly unemployment benefit amount, the applicant is ineligible for benefits 
133.15 	for that week. If the payment with respect to a week is less than the applicant's weekly 
133.16 	unemployment benefit amount, unemployment benefits are reduced by the amount of the 
133.17 	payment.
133.18 	(c) (g) An applicant is not eligible to receive unemployment benefits for any week the 
133.19 	applicant is receiving, has received, will receive, or has applied for pension, retirement, or 
133.20 	annuity payments from any plan contributed to by a base period employer including the 
133.21 	United States government. The base period employer is considered to have contributed to 
133.22 	the plan if the contribution is excluded from the definition of wages under section 268.035, 
133.23 	subdivision 29. If the pension, retirement, or annuity payment is paid in a lump sum, an 
133.24 	applicant is not considered to have received a payment if:
133.25 	(1) the applicant immediately deposits that payment in a qualified pension plan or 
133.26 	account; or
133.27 	(2) that payment is an early distribution for which the applicant paid an early distribution 
133.28 	penalty under the Internal Revenue Code, United States Code, title 26, section 72(t)(1).
133.29 	This paragraph does not apply to Social Security benefits under subdivision 4 or 4a.
133.30 	(d) (h) This subdivision applies to all the weeks of payment. The number of weeks of 
133.31 	payment is determined as follows:
134.1 	(1) if the payments are made periodically, the total of the payments to be received is 
134.2 	divided by the applicant's last level of regular weekly pay from the employer; or
134.3 	(2) If the payment is made in a lump sum, that sum is divided by the applicant's last 
134.4 	level of regular weekly pay from the employer to determine the weeks of payment.
134.5 	For purposes of this paragraph subdivision, the "last level of regular weekly pay" includes 
134.6 	commissions, bonuses, and overtime pay if that is part of the applicant's ongoing regular 
134.7 	compensation.
134.8 	(e) (i) Under this subdivision, if the payment with respect to a week is equal to or more 
134.9 	than the applicant's weekly unemployment benefit amount, the applicant is ineligible for 
134.10 	benefits for that week. If the payment with respect to a week is less than the applicant's 
134.11 	weekly unemployment benefit amount, unemployment benefits are reduced by the amount 
134.12 	of the payment.

134.13 	Sec. 6. Minnesota Statutes 2016, section 268.085, subdivision 3a, is amended to read:
134.14 		Subd. 3a.Workers' compensation and disability insurance offset. (a) An applicant 
134.15 	is not eligible to receive unemployment benefits for any week in which the applicant is 
134.16 	receiving or has received compensation for loss of wages equal to or in excess of the 
134.17 	applicant's weekly unemployment benefit amount under:
134.18 	(1) the workers' compensation law of this state;
134.19 	(2) the workers' compensation law of any other state or similar federal law; or
134.20 	(3) any insurance or trust fund paid in whole or in part by an employer.
134.21 	(b) This subdivision does not apply to an applicant who has a claim pending for loss of 
134.22 	wages under paragraph (a); however, before unemployment benefits may be paid when a 
134.23 	claim is pending, the issue of the applicant being available for suitable employment, as 
134.24 	required under subdivision 1, clause (4), is must be determined under section 268.101, 
134.25 	subdivision 2. If the applicant later receives compensation as a result of the pending claim, 
134.26 	the applicant is subject to the provisions of paragraph (a) and the unemployment benefits 
134.27 	paid are subject to recoupment by the commissioner to the extent that the compensation 
134.28 	constitutes overpaid unemployment benefits under section 268.18, subdivision 1.
134.29 	(c) If the amount of compensation described under paragraph (a) for any week is less 
134.30 	than the applicant's weekly unemployment benefit amount, unemployment benefits requested 
134.31 	for that week are reduced by the amount of that compensation payment.

135.1 	Sec. 7. Minnesota Statutes 2017 Supplement, section 268.085, subdivision 13a, is amended 
135.2 	to read:
135.3 		Subd. 13a.Leave of absence. (a) An applicant on a voluntary leave of absence is 
135.4 	ineligible for unemployment benefits for the duration of the leave of absence. An applicant 
135.5 	on an involuntary leave of absence is not ineligible under this subdivision.
135.6 	A leave of absence is voluntary when work that the applicant can then perform is available 
135.7 	with the applicant's employer but the applicant chooses not to work. A medical leave of 
135.8 	absence is not presumed to be voluntary.
135.9 	(b) A period of vacation requested by the applicant, paid or unpaid, is a voluntary leave 
135.10 	of absence. A vacation period assigned by an employer under: (1) a uniform vacation 
135.11 	shutdown; (2) a collective bargaining agreement; or (3) an established employer policy, is 
135.12 	an involuntary leave of absence.
135.13 	(c) A leave of absence is a temporary stopping of work that has been approved by the 
135.14 	employer. A voluntary leave of absence is not a quit and an involuntary leave of absence
135.15 	is not or a discharge from employment for purposes of. Section 268.095 does not apply to 
135.16 	a leave of absence.
135.17 	(d) An applicant who is on a paid leave of absence, whether the leave of absence is 
135.18 	voluntary or involuntary, is ineligible for unemployment benefits for the duration of the 
135.19 	leave.
135.20 	(e) This subdivision applies to a leave of absence from a base period employer, an 
135.21 	employer during the period between the end of the base period and the effective date of the 
135.22 	benefit account, or an employer during the benefit year.

135.23 	Sec. 8. Minnesota Statutes 2017 Supplement, section 268.095, subdivision 6, is amended 
135.24 	to read:
135.25 		Subd. 6.Employment misconduct defined. (a) Employment misconduct means any 
135.26 	intentional, negligent, or indifferent conduct, on the job or off the job, that displays clearly:
135.27 	(1) is a serious violation of the standards of behavior the employer has the right to 
135.28 	reasonably expect of the employee; or.
135.29 	(2) a substantial lack of concern for the employment.
135.30 	(b) Regardless of paragraph (a), the following is not employment misconduct:
135.31 	(1) conduct that was a consequence of the applicant's mental illness or impairment;
136.1 	(2) conduct that was a consequence of the applicant's inefficiency or inadvertence;
136.2 	(3) simple unsatisfactory conduct;
136.3 	(4) conduct an average reasonable employee would have engaged in under the 
136.4 	circumstances;
136.5 	(5) conduct that was a consequence of the applicant's inability or incapacity;
136.6 	(6) good faith errors in judgment if judgment was required;
136.7 	(7) absence because of illness or injury of the applicant, with proper notice to the 
136.8 	employer;
136.9 	(8) absence, with proper notice to the employer, in order to provide necessary care 
136.10 	because of the illness, injury, or disability of an immediate family member of the applicant;
136.11 	(9) conduct that was a consequence of the applicant's chemical dependency, unless the 
136.12 	applicant was previously diagnosed chemically dependent or had treatment for chemical 
136.13 	dependency, and since that diagnosis or treatment has failed to make consistent efforts to 
136.14 	control the chemical dependency; or
136.15 	(10) conduct that was a consequence of the applicant, or an immediate family member 
136.16 	of the applicant, being a victim of domestic abuse, sexual assault, or stalking. For the 
136.17 	purposes of this subdivision, "domestic abuse," "sexual assault," and "stalking" have the 
136.18 	meanings given them in subdivision 1.
136.19 	(c) Regardless of paragraph (b), clause (9), conduct in violation of sections 169A.20, 
136.20 	169A.31, 169A.50 to 169A.53, or 171.177 that interferes with or adversely affects the 
136.21 	employment is employment misconduct.
136.22 	(d) If the conduct for which the applicant was discharged involved only a single incident, 
136.23 	that is an important fact that must be considered in deciding whether the conduct rises to 
136.24 	the level of employment misconduct under paragraph (a). This paragraph does not require 
136.25 	that a determination under section 268.101 or decision under section 268.105 contain a 
136.26 	specific acknowledgment or explanation that this paragraph was considered.
136.27 	(e) The definition of employment misconduct provided by this subdivision is exclusive 
136.28 	and no other definition applies.

136.29 	Sec. 9. Minnesota Statutes 2016, section 268.095, subdivision 6a, is amended to read:
136.30 		Subd. 6a.Aggravated employment misconduct defined. (a) For the purpose of this 
136.31 	section, "aggravated employment misconduct" means:
137.1 	(1) The commission of any act, on the job or off the job, that would amount to a gross 
137.2 	misdemeanor or felony is aggravated employment misconduct if the act substantially 
137.3 	interfered with the employment or had a significant adverse effect on the employment; or.
137.4 	A criminal charge or conviction is not necessary to determine aggravated employment 
137.5 	misconduct under this paragraph. If an applicant is convicted of a gross misdemeanor or 
137.6 	felony, the applicant is presumed to have committed the act.
137.7 	(2)(b) For an employee of a facility as defined in section 626.5572, aggravated 
137.8 	employment misconduct includes an act of patient or resident abuse, financial exploitation, 
137.9 	or recurring or serious neglect, as defined in section 626.5572 and applicable rules.
137.10 	(b) If an applicant is convicted of a gross misdemeanor or felony for the same act for 
137.11 	which the applicant was discharged, it is aggravated employment misconduct if the act 
137.12 	substantially interfered with the employment or had a significant adverse effect on the 
137.13 	employment.
137.14 	(c) The definition of aggravated employment misconduct provided by this subdivision 
137.15 	is exclusive and no other definition applies.

137.16 	Sec. 10. EFFECTIVE DATE.
 137.17 	Unless otherwise specified, this article is effective September 16, 2018.

137.18 	ARTICLE 18
137.19 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; TECHNICAL

137.20 	Section 1. Minnesota Statutes 2016, section 268.044, subdivision 3, is amended to read:
137.21 		Subd. 3.Missing or erroneous information. (a) Any employer that submits the wage 
137.22 	detail report, but fails to include all required employee information or enters erroneous 
137.23 	information, is subject to an administrative service fee of $25 for each employee for whom 
137.24 	the information is partially missing or erroneous.
137.25 	(b) Any employer that submits the wage detail report, but fails to include an employee, 
137.26 	is subject to an administrative service fee equal to two percent of the total wages for each 
137.27 	employee for whom the information is completely missing.
137.28 	(c) An administrative service fee under this subdivision must be canceled under section 
137.29 	268.067 if the commissioner determines that the failure or error by the employer occurred 
137.30 	because of ignorance or inadvertence.

138.1 	Sec. 2. Minnesota Statutes 2017 Supplement, section 268.046, subdivision 1, is amended 
138.2 	to read:
138.3 		Subdivision 1.Tax accounts assigned. (a) Any person that contracts with a taxpaying 
138.4 	employer to have that person obtain the taxpaying employer's workforce and provide workers 
138.5 	to the taxpaying employer for a fee is, as of the effective date of the contract, assigned for 
138.6 	the duration of the contract the taxpaying employer's account under section 268.045. That 
138.7 	tax account must be maintained by the person separate and distinct from every other tax 
138.8 	account held by the person and identified in a manner prescribed by the commissioner. The 
138.9 	tax account is, for the duration of the contract, considered that person's account for all 
138.10 	purposes of this chapter. The workers obtained from the taxpaying employer and any other 
138.11 	workers provided by that person to the taxpaying employer, including officers of the 
138.12 	taxpaying employer as defined in section 268.035, subdivision 20, clause (28) (29), whose 
138.13 	wages paid by the person are considered paid in covered employment under section 268.035, 
138.14 	subdivision 24, for the duration of the contract between the taxpaying employer and the 
138.15 	person, must, under section 268.044, be reported on the wage detail report under that tax 
138.16 	account, and that person must pay any taxes due at the tax rate computed for that account 
138.17 	under section 268.051, subdivision 2.
138.18 	(b) Any workers of the taxpaying employer who are not covered by the contract under 
138.19 	paragraph (a) must be reported by the taxpaying employer as a separate unit on the wage 
138.20 	detail report under the tax account assigned under paragraph (a). Taxes and any other 
138.21 	amounts due on the wages reported by the taxpaying employer under this paragraph may 
138.22 	be paid directly by the taxpaying employer.
138.23 	(c) If the taxpaying employer that contracts with a person under paragraph (a) does not 
138.24 	have a tax account at the time of the execution of the contract, an account must be registered 
138.25 	for the taxpaying employer under section 268.042 and the new employer tax rate under 
138.26 	section 268.051, subdivision 5, must be assigned. The tax account is then assigned to the 
138.27 	person as provided for in paragraph (a).
138.28 	(d) A person that contracts with a taxpaying employer under paragraph (a) must, within 
138.29 	30 calendar days of the execution or termination of a contract, notify the commissioner by 
138.30 	electronic transmission, in a format prescribed by the commissioner, of that execution or 
138.31 	termination. The taxpaying employer's name, the account number assigned, and any other 
138.32 	information required by the commissioner must be provided by that person.
138.33 	(e) Any contract subject to paragraph (a) must specifically inform the taxpaying employer 
138.34 	of the assignment of the tax account under this section and the taxpaying employer's 
139.1 	obligation under paragraph (b). If there is a termination of the contract, the tax account is, 
139.2 	as of the date of termination, immediately assigned to the taxpaying employer.

139.3 	Sec. 3. Minnesota Statutes 2016, section 268.051, subdivision 3, is amended to read:
139.4 		Subd. 3.Computation of a taxpaying employer's experience rating. (a) On or before 
139.5 	each December 15, the commissioner must compute an experience rating for each taxpaying 
139.6 	employer who has been required to file filed wage detail reports for the 12 four calendar 
139.7 	months quarters ending on the prior June 30. The experience rating computed is applicable 
139.8 	for the following calendar year.
139.9 	The experience rating is the ratio obtained by dividing 125 percent of the total 
139.10 	unemployment benefits required under section 268.047 to be used in computing the 
139.11 	employer's tax rate during the 48 16 calendar months quarters ending on the prior June 30, 
139.12 	by the employer's total taxable payroll for that same period.
139.13 	(b) The experience rating is computed to the nearest one-hundredth of a percent, to a 
139.14 	maximum of 8.90 percent.
139.15 	(c) The use of 125 percent of unemployment benefits paid under paragraph (a), rather 
139.16 	than 100 percent of the amount of unemployment benefits paid, is done in order for the trust 
139.17 	fund to recover from all taxpaying employers a portion of the costs of unemployment benefits 
139.18 	paid that do not affect any individual employer's future experience rating because of the 
139.19 	reasons set out in subdivision 2, paragraph (f).

139.20 	Sec. 4. Minnesota Statutes 2016, section 268.053, subdivision 1, is amended to read:
139.21 		Subdivision 1.Election. (a) Any nonprofit organization that has employees in covered 
139.22 	employment must pay taxes on a quarterly basis in accordance with section 268.051 unless 
139.23 	it elects to make reimbursements to the trust fund the amount of unemployment benefits 
139.24 	charged to its reimbursable account under section 268.047.
139.25 	The organization may elect to make reimbursements for a period of not less than 24 
139.26 	calendar months beginning with the date that the organization was determined to be an 
139.27 	employer with covered employment by filing a notice of election not later than 30 calendar 
139.28 	days after the date of the determination.
139.29 	(b) Any nonprofit organization that makes an election will continue to be liable for 
139.30 	reimbursements until it files a notice terminating its election before the beginning of the 
139.31 	calendar quarter the termination is to be effective.
140.1 	A nonprofit organization that has been making reimbursements that files a notice of 
140.2 	termination of election must be assigned the new employer tax rate under section 268.051, 
140.3 	subdivision 5, until it qualifies for an experience rating under section 268.051, subdivision 
140.4 	3.
140.5 	(c) Any nonprofit organization that has been paying taxes may elect to make 
140.6 	reimbursements by filing a notice of election. The election is effective at the beginning of 
140.7 	the next calendar quarter. The election is not terminable by the organization for 24 calendar 
140.8 	months.
140.9 	(d) The commissioner may for good cause extend the period that a notice of election, 
140.10 	or a notice of termination, must be filed and may permit an election to be retroactive.
140.11 	(e) (d) A notice of election or notice terminating election must be filed by electronic 
140.12 	transmission in a format prescribed by the commissioner.

140.13 	Sec. 5. Minnesota Statutes 2016, section 268.066, is amended to read:
140.14 	268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.
140.15 	(a) The commissioner must cancel as uncollectible any amounts due from an employer 
140.16 	under this chapter or section 116L.20, that remain unpaid six years after the amounts have 
140.17 	been first determined due, except where the delinquent amounts are secured by a notice of 
140.18 	lien, a judgment, are in the process of garnishment, or are under a payment plan.
140.19 	(b) The commissioner may cancel at any time as uncollectible any amount due, or any 
140.20 	portion of an amount due, from an employer under this chapter or section 116L.20, that (1) 
140.21 	are uncollectible due to death or bankruptcy, or (2) the Collection Division of the Department 
140.22 	of Revenue under section 16D.04 was unable to collect.
140.23 	(c) The commissioner may cancel at any time any interest, penalties, or fees due from 
140.24 	an employer, or any portions due, if the commissioner determines that it is not in the public 
140.25 	interest to pursue collection of the amount due. This paragraph does not apply to 
140.26 	unemployment insurance taxes or reimbursements due.

140.27 	Sec. 6. Minnesota Statutes 2016, section 268.067, is amended to read:
140.28 	268.067 COMPROMISE.
140.29 	(a) The commissioner may compromise in whole or in part any action, determination, 
140.30 	or decision that affects only an employer and not an applicant. This paragraph applies if it 
141.1 	is determined by a court of law, or a confession of judgment, that an applicant, while 
141.2 	employed, wrongfully took from the employer $500 or more in money or property.
141.3 	(b) The commissioner may at any time compromise any unemployment insurance tax 
141.4 	or, reimbursement, interest, penalty, fee, costs, or any other amount due from an employer 
141.5 	under this chapter or section 116L.20.
141.6 	(c) Any compromise involving an amount over $10,000 must be authorized by an attorney 
141.7 	licensed to practice law in Minnesota who is an employee of the department designated by 
141.8 	the commissioner for that purpose.
141.9 	(d) Any compromise must be in the best interest of the state of Minnesota.

141.10 	Sec. 7. Minnesota Statutes 2016, section 268.069, subdivision 1, is amended to read:
141.11 		Subdivision 1.Requirements. The commissioner must pay unemployment benefits 
141.12 	from the trust fund to an applicant who has met each of the following requirements:
141.13 	(1) the applicant has filed an application for unemployment benefits and established a 
141.14 	benefit account in accordance with section 268.07;
141.15 	(2) the applicant has not been held ineligible for unemployment benefits under section 
141.16 	268.095 because of a quit or discharge;
141.17 	(3) the applicant has met all of the ongoing eligibility requirements under section 268.085;
141.18 	(4) the applicant does not have an outstanding overpayment of unemployment benefits, 
141.19 	including any penalties or interest; and
141.20 	(5) the applicant has not been held ineligible for unemployment benefits under section 
141.21 	268.182 because of a false representation or concealment of facts 268.183.

141.22 	Sec. 8. Minnesota Statutes 2016, section 268.105, subdivision 6, is amended to read:
141.23 		Subd. 6.Representation; fees. (a) In any proceeding under subdivision 1 or 2, an 
141.24 	applicant or employer may be represented by any authorized representative.
141.25 	Except for services provided by an attorney-at-law, no person may charge an applicant 
141.26 	a fee of any kind for advising, assisting, or representing an applicant in a hearing or, on 
141.27 	reconsideration, or in a proceeding under subdivision 7.
141.28 	(b) An applicant may not be charged fees, costs, or disbursements of any kind in a 
141.29 	proceeding before an unemployment law judge, the Minnesota Court of Appeals, or the 
141.30 	Supreme Court of Minnesota.
142.1 	(c) No attorney fees may be awarded, or costs or disbursements assessed, against the 
142.2 	department as a result of any proceedings under this section.

142.3 	Sec. 9. Minnesota Statutes 2016, section 268.145, subdivision 1, is amended to read:
142.4 		Subdivision 1.Notification. (a) Upon filing an application for unemployment benefits, 
142.5 	the applicant must be informed that:
142.6 	(1) unemployment benefits are subject to federal and state income tax;
142.7 	(2) there are requirements for filing estimated tax payments;
142.8 	(3) the applicant may elect to have federal income tax withheld from unemployment 
142.9 	benefits;
142.10 	(4) if the applicant elects to have federal income tax withheld, the applicant may, in 
142.11 	addition, elect to have Minnesota state income tax withheld; and
142.12 	(5) at any time during the benefit year the applicant may change a prior election.
142.13 	(b) If an applicant elects to have federal income tax withheld, the commissioner must 
142.14 	deduct ten percent for federal income tax. If an applicant also elects to have Minnesota state 
142.15 	income tax withheld, the commissioner must make an additional five percent deduction for 
142.16 	state income tax. Any amounts amount deducted or offset under sections 268.155, 268.18, 
142.17 	and 268.184 have section 268.085 has priority over any amounts deducted under this section. 
142.18 	Federal income tax withholding has priority over state income tax withholding.
142.19 	(c) An election to have income tax withheld may not be retroactive and only applies to 
142.20 	unemployment benefits paid after the election.

142.21 	Sec. 10. Minnesota Statutes 2017 Supplement, section 268.18, subdivision 5, is amended 
142.22 	to read:
142.23 		Subd. 5.Remedies. (a) Any method undertaken to recover an overpayment of 
142.24 	unemployment benefits, including any penalties and interest, is not an election of a method 
142.25 	of recovery.
142.26 	(b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter 
142.27 	under section 176.361 is not an election of a remedy and does not prevent the commissioner 
142.28 	from determining an applicant ineligible for unemployment benefits or taking action under 
142.29 	section 268.183.

143.1 	Sec. 11. REVISOR'S INSTRUCTION.
 143.2 	The revisor of statutes is instructed to make the following changes in Minnesota Statutes:
143.3 	(1) change the term "fraud" to "misrepresentation" in sections 268.085, subdivision 2, 
143.4 	and 268.186, subdivision 1;
143.5 	(2) delete the term "bona fide" wherever it appears in section 268.035;
143.6 	(3) replace the term "under" with "subject to" in section 268.047, subdivision 2, clause 
143.7 	(8);
143.8 	(4) replace the term "displays clearly" with "shows" in chapter 268;
143.9 	(5) replace the term "entire" with "hearing" in section 268.105;
143.10 	(6) replace "24 calendar months" with "eight calendar quarters" in section 268.052, 
143.11 	subdivision 2.

143.12 	Sec. 12.  REPEALER.
 143.13 	Minnesota Statutes 2016, section 268.053, subdivisions 4 and 5, are repealed.

143.14 	Sec. 13. EFFECTIVE DATE.
 143.15 	Unless otherwise specified, this article is effective September 16, 2018.

143.16 	ARTICLE 19
143.17 	ENVIRONMENT AND NATURAL RESOURCES

143.18	Section 1. APPROPRIATIONS.
 	
143.19 	The sums shown in the columns marked "Appropriations" are added to or, if shown in 
143.20 	parentheses, subtracted from the appropriations in Laws 2017, chapter 93, or appropriated 
143.21 	to the agencies and for the purposes specified in this article. The appropriations are from 
143.22 	the general fund, or another named fund, and are available for the fiscal year indicated for 
143.23 	each purpose. The figures "2018" and "2019" used in this article mean that the addition to 
143.24 	the appropriations listed under them are available for the fiscal year ending June 30, 2018, 
143.25 	or June 30, 2019, respectively. "The first year" is fiscal year 2018. "The second year" is 
143.26 	fiscal year 2019.

143.27				APPROPRIATIONS
	
143.28				Available for the Year
	
143.29				Ending June 30
	
143.30					2018
		2019

144.1	Sec. 2. POLLUTION CONTROL AGENCY

144.2	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	300,000

144.3	Appropriations by Fund
	
144.4		2018
	2019
	
144.5	General
	-0-
	(300,000)
	
144.6	Environmental
	-0-
	600,000

144.7	Subd. 2.Resource Management
 		-0-
		-0-
	
144.8 	(a) $300,000 the second year is a reduction 
144.9 	from the general fund for competitive 
144.10 	recycling grants under Minnesota Statutes, 
144.11 	section 115A.565. This is a onetime reduction.
144.12 	(b) $300,000 the second year is from the 
144.13 	environmental fund for competitive recycling 
144.14 	grants under Minnesota Statutes, section 
144.15 	115A.565. This is a onetime appropriation.

144.16	Subd. 3.Watershed
 		-0-
		300,000
	
144.17 	$300,000 the second year is from the 
144.18 	environmental fund for a grant to the 
144.19 	Minnesota Association of County Feedlot 
144.20 	Officers to develop, in coordination with the 
144.21 	Pollution Control Agency and the University  
144.22 	of Minnesota Extension program, an online 
144.23 	training curriculum related to animal feedlot  
144.24 	requirements under Minnesota Rules, chapter 
144.25 	7020. The curriculum must be developed to:
144.26 	(1) provide base-level knowledge to new and 
144.27 	existing county feedlot pollution control  
144.28 	officers on feedlot registration, permitting, 
144.29 	compliance, enforcement, and program  
144.30 	administration;
144.31 	(2) provide assistance to new and existing 
144.32 	county feedlot pollution control officers for  
144.33 	working efficiently and effectively with 
144.34 	producers; and
145.1 	(3) reduce the incidence of manure or nutrients 
145.2 	entering surface water or groundwater.
145.3 	This is a onetime appropriation and is 
145.4 	available until June 30, 2020.

145.5	Sec. 3. NATURAL RESOURCES.

145.6	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	3,934,000

145.7	Appropriations by Fund
	
145.8		2018
	2019
	
145.9	General
	-0-
	275,000
	
145.10	Natural Resources
	-0-
	2,905,000
	
145.11	Game and Fish
	-0-
	754,000

145.12	Subd. 2.Lands and Minerals Management
 		-0-
		654,000
	
145.13 	(a) $335,000 the second year is for aggregate 
145.14 	mapping. This is a onetime appropriation and 
145.15 	is available until June 30, 2020.
145.16 	(b) $319,000 the second year is from the 
145.17 	mineral management account in the natural 
145.18 	resources fund for environmental research 
145.19 	relating to mine permitting, in consultation 
145.20 	with the Mineral Coordinating Committee.

145.21	Subd. 3.Ecological and Water Resources
 		-0-
		525,000
	
145.22 	(a) $425,000 the second year is for grants to 
145.23 	lake associations to manage aquatic invasive 
145.24 	species,  including grants for projects to control 
145.25 	and provide public awareness of aquatic 
145.26 	invasive species and for watercraft inspections 
145.27 	in partnership with local units of government. 
145.28 	This is a onetime appropriation.
145.29 	(b) $100,000 the second year is from the 
145.30 	heritage enhancement account in the game and 
145.31 	fish fund for a grant to the Board of Regents 
145.32 	of the University of Minnesota to conduct a 
145.33 	statewide survey and analysis of Minnesota 
146.1 	anglers' attitude toward fish stocking. The 
146.2 	survey must include a representative sample 
146.3 	of anglers from all regions of the state and 
146.4 	must examine Minnesota anglers' attitudes 
146.5 	toward the stocking of each fish species that 
146.6 	is or has been stocked by the Department of 
146.7 	Natural Resources. The Board of Regents must 
146.8 	report the results of the survey and analysis to 
146.9 	the chairs and ranking minority members of 
146.10 	the legislative committees with jurisdiction 
146.11 	over environment and natural resources 
146.12 	finance no later than March 1, 2020. The 
146.13 	report must include data about the amount 
146.14 	spent on stocking each fish species. This is a 
146.15 	onetime appropriation.

146.16	Subd. 4.Forest Management
 		-0-
		-0-
	
146.17 	(a) $1,131,000 the second year is a reduction 
146.18 	to the general fund for the Next Generation 
146.19 	Core Forestry data system. This is a onetime 
146.20 	reduction.
146.21 	(b) $1,131,000 the second year is from the 
146.22 	forest management investment account in the 
146.23 	natural resources fund for the Next Generation 
146.24 	Core Forestry data system. This is a onetime 
146.25 	appropriation and is available until June 30, 
146.26 	2021.

146.27	Subd. 5.Parks and Trails Management
 		-0-
		1,415,000
	
146.28 	(a) $100,000 the second year is from the 
146.29 	all-terrain vehicle account in the natural 
146.30 	resources fund for a grant to the city of 
146.31 	Virginia to develop, in cooperation with the 
146.32 	Quad Cities ATV Club, an all-terrain vehicle 
146.33 	trail system in the cities of Virginia, Eveleth, 
146.34 	Gilbert, and Mountain Iron and surrounding 
147.1 	areas. This is a onetime appropriation and is 
147.2 	available until June 30, 2021.
147.3 	(b) $200,000 the second year is from the 
147.4 	off-road vehicle account in the natural 
147.5 	resources fund for a contract with a project 
147.6 	administrator to assist the commissioner in 
147.7 	planning, designing, and providing a system 
147.8 	of state touring routes for off-road vehicles by 
147.9 	identifying sustainable, legal routes suitable 
147.10 	for licensed four-wheel drive vehicles and a 
147.11 	system of recreational trails for registered 
147.12 	off-road vehicles. Any portion of this 
147.13 	appropriation not used for the project 
147.14 	administrator is available for signage or 
147.15 	promotion of the system. This is a onetime 
147.16 	appropriation.
147.17 	(c) $200,000 the second year is from the 
147.18 	off-road vehicle account in the natural 
147.19 	resources fund for a contract to prepare a 
147.20 	comprehensive, statewide, strategic master 
147.21 	plan for trails for off-road vehicles.  The master 
147.22 	plan must be consistent with federal, tribal, 
147.23 	state, and local law and regulations.  The 
147.24 	commissioner must consult with the Minnesota 
147.25 	Four Wheel Drive Association in developing 
147.26 	contract criteria.  This is a onetime 
147.27 	appropriation and is available until June 30, 
147.28 	2019.
147.29 	(d) $200,000 the second year is from the 
147.30 	off-road vehicle account in the natural 
147.31 	resources fund to reimburse federal, county, 
147.32 	and township entities for additional needs on  
147.33 	roads under the claimant's jurisdiction when 
147.34 	the needs are a result of increased use by 
147.35 	off-road vehicles and are attributable to a 
148.1 	border-to-border touring route established by 
148.2 	the commissioner. This paragraph does apply 
148.3 	to roads that are operated by a public road 
148.4 	authority as defined in Minnesota Statutes, 
148.5 	section 160.02, subdivision 25. This is a 
148.6 	onetime appropriation and is available until 
148.7 	June 30, 2023. To be eligible for 
148.8 	reimbursement under this paragraph, the 
148.9 	claimant must demonstrate that the needs 
148.10 	result from additional traffic generated by the 
148.11 	border-to-border touring route.
148.12 	(e) $315,000 the second year is from the 
148.13 	natural resources fund for a grant to St. Louis 
148.14 	County to be used as a match to a state 
148.15 	bonding grant for trail and bridge construction 
148.16 	and for a maintenance fund for a five-mile 
148.17 	segment of the Voyageur Country ATV trail 
148.18 	system, including a multiuse bridge over the 
148.19 	Vermilion River that would serve ATVs, 
148.20 	snowmobiles, off-road vehicles, off-highway 
148.21 	motorcycles, and emergency vehicles in St. 
148.22 	Louis County. Of this amount, $285,000 is 
148.23 	from the all-terrain vehicle account, $15,000 
148.24 	is from the off-road vehicle account, and 
148.25 	$15,000 is from the off-highway motorcycle 
148.26 	account. This is a onetime appropriation and 
148.27 	is available until June 30, 2021.
148.28 	(f) $300,000 the second year is from the 
148.29 	natural resources fund for a grant to Lake 
148.30 	County to match other funding sources to 
148.31 	develop the Prospectors Loop trail system. Of 
148.32 	this amount, $270,000 is from the all-terrain 
148.33 	vehicle account, $15,000 is from the 
148.34 	off-highway motorcycle account, and $15,000 
148.35 	is from the off-road vehicle account. This is 
149.1 	a onetime appropriation and is available until 
149.2 	June 30, 2021.
149.3 	(g) $100,000 the second year is from the 
149.4 	all-terrain vehicle account in the natural 
149.5 	resources fund for wetland delineation and 
149.6 	work on an environmental assessment 
149.7 	worksheet for the Taconite State Trail from 
149.8 	Ely to Tower consistent with the 2017 
149.9 	Taconite State Trail Master Plan. This is a 
149.10 	onetime appropriation and is available until 
149.11 	June 30, 2021.

149.12	Subd. 6.Fish and Wildlife Management
 		-0-
		1,092,000
	
149.13 	(a) $438,000 the second year is for wildlife 
149.14 	disease surveillance and response. This is a 
149.15 	onetime appropriation.
149.16 	(b) The commissioner may use up to $7,000 
149.17 	of the amount appropriated from the general 
149.18 	fund in Laws 2017, chapter 93, article 1, 
149.19 	section 3, subdivision 8, to cover the cost of:
149.20 	(1) the redesign of the printed and digital 
149.21 	versions of fishing regulations and hunting 
149.22 	and trapping regulations; and
149.23 	(2) the reprogramming of the electronic 
149.24 	licensing system, to conform to the 
149.25 	requirements of providing voter registration 
149.26 	information under Minnesota Statutes, section 
149.27 	97A.409.
149.28 	(c) Notwithstanding Minnesota Statutes, 
149.29 	section 297A.94, $654,000 the second year is 
149.30 	from the heritage enhancement account in the 
149.31 	game and fish fund for planning and 
149.32 	emergency response to disease outbreaks in 
149.33 	wildlife.  This is a onetime appropriation and 
149.34 	is available until June 30, 2020.

150.1	Subd. 7.Enforcement
 		-0-
		248,000
	
150.2 	(a) $208,000 the second year is for responding 
150.3 	to escaped animals from Cervidae farms, 
150.4 	including inspection of farmed Cervidae, 
150.5 	farmed Cervidae facilities, and farmed 
150.6 	Cervidae records when the commissioner has 
150.7 	reasonable suspicion that laws protecting 
150.8 	native wild animals or other provisions of 
150.9 	Minnesota Statutes, section 35.155 have been 
150.10 	violated. This is a onetime appropriation.
150.11 	(b) $40,000 the second year is from the 
150.12 	all-terrain vehicle account in the natural 
150.13 	resources fund to develop a voluntary online 
150.14 	youth all-terrain vehicle training program 
150.15 	under Minnesota Statutes, section 84.925, 
150.16 	subdivision 1. This is a onetime appropriation.

150.17
150.18	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES.
 	$
	-0-
	$
	25,000
	
150.19 	$25,000 the second year is for a grant to the 
150.20 	Red River Basin Commission for water quality 
150.21 	and floodplain management. This is a onetime 
150.22 	appropriation.

150.23
150.24	Sec. 5. NATURAL RESOURCES DAMAGES 
ACCOUNT TRANSFER
 					
150.25 	By June 30, 2018, any money in the general 
150.26 	portion of the remediation fund dedicated for 
150.27 	the purposes of the natural resources damages 
150.28 	account must be transferred to the natural 
150.29 	resources damages account.

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

150.31 	Sec. 6. Laws 2010, chapter 361, article 4, section 78, is amended to read:
150.32 	Sec. 78. APPROPRIATION; MOOSE TRAIL.
 151.1 	$100,000 in fiscal year 2011 is appropriated to the commissioner of natural resources 
151.2 	from the all-terrain vehicle account in the natural resources fund for a grant to the city of 
151.3 	Hoyt Lakes to convert the Moose Trail snowmobile trail to for a dual usage trail, so that it 
151.4 	may also be used as an off-highway vehicle trail connecting the city of Biwabik to the Iron 
151.5 	Range Off-Highway Vehicle Recreation Area. This is a onetime appropriation and is available 
151.6 	until spent June 30, 2020.

151.7 	Sec. 7. Laws 2016, chapter 189, article 3, section 3, subdivision 5, is amended to read:

151.8	Subd. 5.Parks and Trails Management
 		-0-
		6,459,000

151.9	Appropriations by Fund
	
151.10		2016
	2017
	
151.11	General
	-0-
	2,929,000
	
151.12	Natural Resources
	-0-
	3,530,000
	
151.13 	$2,800,000 the second year is a onetime 
151.14 	appropriation.
151.15 	$2,300,000 the second year is from the state 
151.16 	parks account in the natural resources fund. 
151.17 	Of this amount, $1,300,000 is onetime, of 
151.18 	which $1,150,000 is for strategic park 
151.19 	acquisition.
151.20 	$20,000 the second year is from the natural 
151.21 	resources fund to design and erect signs 
151.22 	marking the David Dill trail designated in this 
151.23 	act. Of this amount, $10,000 is from the 
151.24 	snowmobile trails and enforcement account 
151.25 	and $10,000 is from the all-terrain vehicle 
151.26 	account. This is a onetime appropriation.
151.27 	$100,000 the second year is for the 
151.28 	improvement of the infrastructure for sanitary 
151.29 	sewer service at the Woodenfrog Campground 
151.30 	in Kabetogama State Forest. This is a onetime 
151.31 	appropriation.
151.32 	$29,000 the second year is for computer 
151.33 	programming related to the transfer-on-death 
152.1 	title changes for watercraft. This is a onetime 
152.2 	appropriation.
152.3 	$210,000 the first year is from the water 
152.4 	recreation account in the natural resources 
152.5 	fund for implementation of Minnesota 
152.6 	Statutes, section 86B.532, established in this 
152.7 	act. This is a onetime appropriation. The 
152.8 	commissioner of natural resources shall seek 
152.9 	federal and other nonstate funds to reimburse 
152.10 	the department for the initial costs of 
152.11 	producing and distributing carbon monoxide 
152.12 	boat warning labels. All amounts collected 
152.13 	under this paragraph shall be deposited into 
152.14 	the water recreation account.
152.15 	$1,000,000 the second year is from the natural 
152.16 	resources fund for a grant to Lake County for 
152.17 	construction, including bridges, of the 
152.18 	Prospectors ATV Trail System linking the 
152.19 	communities of Ely, Babbitt, Embarrass, and 
152.20 	Tower; Bear Head Lake and Lake 
152.21 	Vermilion-Soudan Underground Mine State 
152.22 	Parks; the Taconite State Trail; and the Lake 
152.23 	County Regional ATV Trail System. Of this 
152.24 	amount, $900,000 is from the all-terrain 
152.25 	vehicle account, $50,000 is from the 
152.26 	off-highway motorcycle account, and $50,000 
152.27 	is from the off-road vehicle account. This is 
152.28 	a onetime appropriation and is available until 
152.29 	June 30, 2019.

152.30 	Sec. 8. Laws 2016, chapter 189, article 3, section 4, is amended to read:

152.31
152.32	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	-0-
	$
	479,000
	
152.33 	$479,000 the second year is for the 
152.34 	development of a detailed plan to implement 
153.1 	a working lands watershed restoration program 
153.2 	to incentivize the establishment and 
153.3 	maintenance of perennial crops that includes 
153.4 	the following:
153.5 	(1) a process for selecting pilot watersheds 
153.6 	that are expected to result in the greatest water 
153.7 	quality improvements and exhibit readiness 
153.8 	to participate in the program;
153.9 	(2) an assessment of the quantity of 
153.10 	agricultural land that is expected to be eligible 
153.11 	for the program in each watershed;
153.12 	(3) an assessment of landowner interest in 
153.13 	participating in the program;
153.14 	(4) an assessment of the contract terms and 
153.15 	any recommendations for changes to the terms, 
153.16 	including consideration of variable payment 
153.17 	rates for lands of different priority or type;
153.18 	(5) an assessment of the opportunity to 
153.19 	leverage federal funds through the program 
153.20 	and recommendations on how to maximize 
153.21 	the use of federal funds for assistance to 
153.22 	establish perennial crops;
153.23 	(6) an assessment of how other state programs 
153.24 	could complement the program;
153.25 	(7) an estimate of water quality improvements 
153.26 	expected to result from implementation in pilot 
153.27 	watersheds;
153.28 	(8) an assessment of how to best integrate 
153.29 	program implementation with existing 
153.30 	conservation requirements and develop 
153.31 	recommendations on harvest practices and 
153.32 	timing to benefit wildlife production;
154.1 	(9) an assessment of the potential viability and 
154.2 	water quality benefit of cover crops used in 
154.3 	biomass processing facilities;
154.4 	(10) a timeline for implementation, 
154.5 	coordinated to the extent possible with 
154.6 	proposed biomass processing facilities; and
154.7 	(11) a projection of funding sources needed 
154.8 	to complete implementation.;
154.9 	(12) outreach to local governments, interest 
154.10 	groups, and individual farmers on the 
154.11 	economic and environmental benefits of 
154.12 	perennial and cover crops;
154.13 	(13) establishment of detailed criteria to target 
154.14 	the location of perennial and cover crops on 
154.15 	a watershed basis to maximize the 
154.16 	environmental benefit at the lowest cost; and
154.17 	(14) development of model contracts to 
154.18 	include payment rates, duration, type of crops, 
154.19 	harvest standards, and monitoring procedures 
154.20 	for use in future program implementation.
154.21 	This is a onetime appropriation and is 
154.22 	available until June 30, 2018 2019.
154.23 	The board shall coordinate development of 
154.24 	the working lands watershed restoration plan 
154.25 	with stakeholders and the commissioners of 
154.26 	natural resources, agriculture, and the 
154.27 	Pollution Control Agency. The board must 
154.28 	submit an interim report by October 15, 2017
154.29 	2018, and the feasibility study and program 
154.30 	plan by February 1, 2018 2019, to the chairs 
154.31 	and ranking minority members of the 
154.32 	legislative committees and divisions with 
154.33 	jurisdiction over agriculture, natural resources, 
155.1 	and environment policy and finance and to the 
155.2 	Clean Water Council.

155.3 	Sec. 9. Laws 2017, chapter 93, article 1, section 3, subdivision 6, is amended to read:

155.5155.4
	Subd. 6.Fish and Wildlife Management
 		68,207,000
		67,750,000
69,210,000

155.6	Appropriations by Fund
	
155.7		2018
	2019
	
155.8	Natural Resources
	1,912,000
	1,912,000
	
155.10155.9	Game and Fish
	66,295,000
	65,838,000
67,298,000
	
155.11 	(a) $8,283,000 the first year and $8,386,000 
155.12 	the second year are from the heritage 
155.13 	enhancement account in the game and fish 
155.14 	fund only for activities specified in Minnesota 
155.15 	Statutes, section 297A.94, paragraph (e), 
155.16 	clause (1). Notwithstanding Minnesota 
155.17 	Statutes, section 297A.94, five percent of this 
155.18 	appropriation may be used for expanding 
155.19 	hunter and angler recruitment and retention.
155.20 	(b) Notwithstanding Minnesota Statutes, 
155.21 	section 297A.94, $30,000 the first year is from 
155.22 	the heritage enhancement account in the game 
155.23 	and fish fund for the commissioner of natural 
155.24 	resources to contract with a private entity to 
155.25 	search for a site to construct a world-class 
155.26 	shooting range and club house for use by the 
155.27 	Minnesota State High School League and for 
155.28 	other regional, statewide, national, and 
155.29 	international shooting events. The 
155.30 	commissioner must provide public notice of 
155.31 	the search, including making the public aware 
155.32 	of the process through the Department of 
155.33 	Natural Resources' media outlets, and solicit 
155.34 	input on the location and building options for 
155.35 	the facility. The siting search process must 
156.1 	include a public process to determine if any 
156.2 	business or individual is interested in donating 
156.3 	land for the facility, anticipated to be at least 
156.4 	500 acres. The site search team must meet 
156.5 	with interested third parties affected by or 
156.6 	interested in the facility. The commissioner 
156.7 	must submit a report with the results of the 
156.8 	site search to the chairs and ranking minority 
156.9 	members of the legislative committees and 
156.10 	divisions with jurisdiction over environment 
156.11 	and natural resources by March 1, 2018. This 
156.12 	is a onetime appropriation.
156.13 	(c) Notwithstanding Minnesota Statutes, 
156.14 	section 297A.94, $30,000 the first year is from 
156.15 	the heritage enhancement account in the game 
156.16 	and fish fund for a study of lead shot 
156.17 	deposition on state lands. By March 1, 2018, 
156.18 	the commissioner shall provide a report of the 
156.19 	study to the chairs and ranking minority 
156.20 	members of the legislative committees with 
156.21 	jurisdiction over natural resources policy and 
156.22 	finance. This is a onetime appropriation.
156.23 	(d) Notwithstanding Minnesota Statutes, 
156.24 	section 297A.94, $500,000 the first year is 
156.25 	from the heritage enhancement account in the 
156.26 	game and fish fund for planning and 
156.27 	emergency response to disease outbreaks in 
156.28 	wildlife. This is a onetime appropriation and 
156.29 	is available until June 30, 2019.
156.30 	(e) $8,606,000 the second year is from the 
156.31 	deer management account in the game and 
156.32 	fish fund for the purposes specified under 
156.33 	Minnesota Statutes, section 97A.075, 
156.34 	subdivision 1, paragraph (b).

157.1 	Sec. 10. Laws 2017, chapter 93, article 1, section 4, is amended to read:

157.2
157.3	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	14,311,000
	$
	14,164,000
	
157.4 	(a) $3,423,000 the first year and $3,423,000 
157.5 	the second year are for natural resources block 
157.6 	grants to local governments. Grants must be 
157.7 	matched with a combination of local cash or 
157.8 	in-kind contributions. The base grant portion 
157.9 	related to water planning must be matched by 
157.10 	an amount as specified by Minnesota Statutes, 
157.11 	section 103B.3369. The board may reduce the 
157.12 	amount of the natural resources block grant 
157.13 	to a county by an amount equal to any 
157.14 	reduction in the county's general services 
157.15 	allocation to a soil and water conservation 
157.16 	district from the county's previous year 
157.17 	allocation when the board determines that the 
157.18 	reduction was disproportionate.
157.19 	(b) $3,116,000 the first year and $3,116,000 
157.20 	the second year are for grants to soil and water 
157.21 	conservation districts for the purposes of 
157.22 	Minnesota Statutes, sections 103C.321 and 
157.23 	103C.331, and for general purposes, nonpoint 
157.24 	engineering, and implementation and 
157.25 	stewardship of the reinvest in Minnesota 
157.26 	reserve program. Expenditures may be made 
157.27 	from these appropriations for supplies and 
157.28 	services benefiting soil and water conservation 
157.29 	districts. Any district receiving a payment 
157.30 	under this paragraph shall maintain a Web 
157.31 	page that publishes, at a minimum, its annual 
157.32 	report, annual audit, annual budget, and 
157.33 	meeting notices.
157.34 	(c) $260,000 the first year and $260,000 the 
157.35 	second year are for feedlot water quality cost 
158.1 	share grants for feedlots under 300 animal 
158.2 	units and nutrient and manure management 
158.3 	projects in watersheds where there are 
158.4 	impaired waters.
158.5 	(d) $1,200,000 the first year and $1,200,000 
158.6 	the second year are for soil and water 
158.7 	conservation district cost-sharing contracts for 
158.8 	perennially vegetated riparian buffers, erosion 
158.9 	control, water retention and treatment, and 
158.10 	other high-priority conservation practices.
158.11 	(e) $100,000 the first year and $100,000 the 
158.12 	second year are for county cooperative weed 
158.13 	management cost-share programs and to 
158.14 	restore native plants in selected invasive 
158.15 	species management sites.
158.16 	(f) $761,000 the first year and $761,000 the 
158.17 	second year are for implementation, 
158.18 	enforcement, and oversight of the Wetland 
158.19 	Conservation Act, including administration of 
158.20 	the wetland banking program and in-lieu fee 
158.21 	mechanism.
158.22 	(g) $300,000 the first year is for improving 
158.23 	the efficiency and effectiveness of Minnesota's 
158.24 	wetland regulatory programs through 
158.25 	continued examination of United States Clean 
158.26 	Water Act section 404 assumption including 
158.27 	negotiation of draft agreements with the 
158.28 	United States Environmental Protection 
158.29 	Agency and the United States Army Corps of 
158.30 	Engineers, planning for an online permitting 
158.31 	system, upgrading the existing wetland 
158.32 	banking database, and developing an in-lieu 
158.33 	fee wetland banking program as authorized 
158.34 	by statute. This is a onetime appropriation and 
158.35 	is available until June 30, 2019.
159.1 	(h) $166,000 the first year and $166,000 the 
159.2 	second year are to provide technical assistance 
159.3 	to local drainage management officials and 
159.4 	for the costs of the Drainage Work Group. The 
159.5 	Board of Water and Soil Resources must 
159.6 	coordinate the stakeholder drainage work 
159.7 	group in accordance with Minnesota Statutes, 
159.8 	section 103B.101, subdivision 13, to evaluate 
159.9 	and make recommendations to accelerate 
159.10 	drainage system acquisition and establishment 
159.11 	of ditch buffer strips under Minnesota Statutes, 
159.12 	chapter 103E, or compatible alternative 
159.13 	practices required by Minnesota Statutes, 
159.14 	section 103F.48. The evaluation and 
159.15 	recommendations must be submitted in a 
159.16 	report to the senate and house of 
159.17 	representatives committees with jurisdiction 
159.18 	over agriculture and environment policy by 
159.19 	February 1, 2018.
159.20 	(i) $100,000 the first year and $100,000 the 
159.21 	second year are for a grant to the Red River 
159.22 	Basin Commission for water quality and 
159.23 	floodplain management, including 
159.24 	administration of programs. This appropriation 
159.25 	must be matched by nonstate funds. If the 
159.26 	appropriation in either year is insufficient, the 
159.27 	appropriation in the other year is available for 
159.28 	it.
159.29 	(j) $140,000 the first year and $140,000 the 
159.30 	second year are for grants to Area II 
159.31 	Minnesota River Basin Projects for floodplain 
159.32 	management.
159.33 	(k) $125,000 the first year and $125,000 the 
159.34 	second year are for conservation easement 
159.35 	stewardship.
160.1 	(l) $240,000 the first year and $240,000 the 
160.2 	second year are for a grant to the Lower 
160.3 	Minnesota River Watershed District to defray 
160.4 	the annual cost of operating and maintaining 
160.5 	sites for dredge spoil to sustain the state, 
160.6 	national, and international commercial and 
160.7 	recreational navigation on the lower Minnesota 
160.8 	River.
160.9 	(m) $4,380,000 the first year and $4,533,000 
160.10 	the second year are for Board of Water and 
160.11 	Soil Resources agency administration and 
160.12 	operations.
160.13 	(n) Notwithstanding Minnesota Statutes, 
160.14 	section 103C.501, the board may shift 
160.15 	cost-share funds in this section and may adjust 
160.16 	the technical and administrative assistance 
160.17 	portion of the grant funds to leverage federal 
160.18 	or other nonstate funds or to address 
160.19 	high-priority needs identified in local water 
160.20 	management plans or comprehensive water 
160.21 	management plans.
160.22 	(o) The appropriations for grants in this section 
160.23 	are available until June 30, 2021, except 
160.24 	returned grants are available for two years 
160.25 	after they are returned. If an appropriation for 
160.26 	grants in either year is insufficient, the 
160.27 	appropriation in the other year is available for 
160.28 	it.
160.29 	(p) Notwithstanding Minnesota Statutes, 
160.30 	section 16B.97, the appropriations for grants 
160.31 	in this section are exempt from Department 
160.32 	of Administration, Office of Grants 
160.33 	Management Policy 08-08 Grant Payments 
160.34 	and 08-10 Grant Monitoring.

161.1 	ARTICLE 20
161.2 	ENVIRONMENT AND NATURAL RESOURCES POLICY

161.3 	Section 1. [11A.236] ACCOUNT FOR INVESTMENT OF PERMIT TO MINE 
161.4 	FINANCIAL ASSURANCE MONEY.
161.5 		Subdivision 1.Establishment; appropriation. (a) The State Board of Investment, when 
161.6 	requested by the commissioner of natural resources, may invest money collected by the 
161.7 	commissioner as part of financial assurance provided under a permit to mine issued under 
161.8 	chapter 93. The State Board of Investment may establish one or more accounts into which 
161.9 	money may be deposited for the purposes of this section, subject to the policies and 
161.10 	procedures of the State Board of Investment. Use of any money in the account shall be 
161.11 	restricted to the financial assurance purposes identified in sections 93.46 to 93.51, and rules 
161.12 	adopted thereunder, and as authorized under any trust fund agreements or other conditions 
161.13 	established under a permit to mine.
161.14 	(b) Money in the accounts is appropriated to the commissioner for the purposes for 
161.15 	which the account is established under this section.
161.16 		Subd. 2.Account maintenance and investment. The commissioner of natural resources 
161.17 	may deposit money in the appropriate account and may withdraw money from the appropriate 
161.18 	account for the financial assurance purposes identified in sections 93.46 to 93.51 and rules 
161.19 	adopted thereunder and as authorized under any trust fund agreements or other conditions 
161.20 	established under the permit to mine for which the financial assurance is provided, subject 
161.21 	to the policies and procedures of the State Board of Investment. Investment strategies related 
161.22 	to an account established under this section must be determined jointly by the commissioner 
161.23 	of natural resources and the executive director of the State Board of Investment. The 
161.24 	authorized investments for an account shall be the investments authorized under section 
161.25 	11A.24 that are made available for investment by the State Board of Investment. Investment 
161.26 	transactions must be at a time and in a manner determined by the executive director of the 
161.27 	State Board of Investment. Decisions to withdraw money from the account must be 
161.28 	determined by the commissioner of natural resources, subject to the policies and procedures 
161.29 	of the State Board of Investment. Investment earnings must be credited to the appropriate 
161.30 	account for financial assurance under the identified permit to mine. An account may be 
161.31 	terminated by the commissioner of natural resources at any time, so long as the termination 
161.32 	is in accordance with applicable statutes, rules, trust fund agreements, or other conditions 
161.33 	established under the permit to mine, subject to the policies and procedures of the State 
161.34 	Board of Investment.

162.1 	Sec. 2. Minnesota Statutes 2016, section 17.494, is amended to read:
162.2 	17.494 AQUACULTURE PERMITS; RULES.
162.3 	(a) The commissioner shall act as permit or license coordinator for aquatic farmers and 
162.4 	shall assist aquatic farmers to obtain licenses or permits.
162.5 	By July 1, 1992,(b) A state agency issuing multiple permits or licenses for aquaculture 
162.6 	shall consolidate the permits or licenses required for every aquatic farm location. The 
162.7 	Department of Natural Resources transportation permits are exempt from this requirement. 
162.8 	State agencies shall adopt rules or issue commissioner's orders that establish permit and 
162.9 	license requirements, approval timelines, and compliance standards. Saltwater aquatic farms, 
162.10 	as defined in section 17.4982, and processing facilities for saltwater aquatic life, as defined 
162.11 	in section 17.4982, must be classified as agricultural operations for purposes of any 
162.12 	construction, discharge, or other permit issued by the Pollution Control Agency.
162.13 	Nothing in this section modifies any state agency's regulatory authority over aquaculture 
162.14 	production.

162.15 	Sec. 3. Minnesota Statutes 2016, section 17.4982, is amended by adding a subdivision to 
162.16 	read:
162.17 		Subd. 20a.Saltwater aquaculture. "Saltwater aquaculture" means the commercial 
162.18 	propagation and rearing of saltwater aquatic life, including, but not limited to, crustaceans, 
162.19 	primarily for consumption as human food.

162.20 	Sec. 4. Minnesota Statutes 2016, section 17.4982, is amended by adding a subdivision to 
162.21 	read:
162.22 		Subd. 20b.Saltwater aquatic farm. "Saltwater aquatic farm" means a facility used for 
162.23 	saltwater aquaculture, including, but not limited to, artificial ponds, vats, tanks, raceways, 
162.24 	and other facilities that an aquatic farmer owns or has exclusive control of for the sole 
162.25 	purpose of producing saltwater aquatic life.

162.26 	Sec. 5. Minnesota Statutes 2016, section 17.4982, is amended by adding a subdivision to 
162.27 	read:
162.28 		Subd. 20c.Saltwater aquatic life. "Saltwater aquatic life" means aquatic species that 
162.29 	are saltwater obligates or perform optimally when raised in salinities closer to that of natural 
162.30 	seawater and need saltwater to survive.

163.1 	Sec. 6. [17.499] TRANSPORTATION OR IMPORTATION OF SALTWATER 
163.2 	AQUATIC LIFE; QUARANTINE REQUIREMENT.
163.3 		Subdivision 1.Purpose. The legislature finds that it is in the public interest to increase 
163.4 	private saltwater aquaculture production and processing in this state under the coordination 
163.5 	of the commissioner of agriculture. Additional private production will reduce dependence 
163.6 	on foreign suppliers and benefit the rural economy by creating new jobs and economic 
163.7 	activity.
163.8 		Subd. 2.Transportation permit. (a) Notwithstanding the requirements in section 
163.9 	17.4985, saltwater aquatic life transportation and importation requirements are governed 
163.10 	by this section. A transportation permit is required prior to any importation or intrastate 
163.11 	transportation of saltwater aquatic life not exempted under subdivision 3. A transportation 
163.12 	permit may be used for multiple shipments within the 30-day term of the permit if the source 
163.13 	and the destination remain the same. Transportation permits must be obtained from the 
163.14 	commissioner prior to shipment of saltwater aquatic life.
163.15 	(b) An application for a transportation permit must be made in the form required by the 
163.16 	commissioner. The commissioner may reject an incomplete application.
163.17 	(c) An application for a transportation permit must be accompanied by satisfactory 
163.18 	evidence, as determined by the commissioner, that the shipment is free of any nonindigenous 
163.19 	species of animal other than the saltwater aquatic species and either:
163.20 	(1) the facility from which the saltwater aquatic life originated has provided 
163.21 	documentation of 36 or more consecutive months of negative testing by an approved 
163.22 	laboratory as free of any disease listed by OIE - the World Organisation for Animal Health 
163.23 	for that species following the testing guidelines outlined in the OIE Aquatic Animal Health 
163.24 	Code for crustaceans or the AFS Fish Health Blue Book for other species, as appropriate; 
163.25 	or
163.26 	(2) the saltwater aquatic life to be imported or transported includes documentation of 
163.27 	negative testing for that specific lot by an approved laboratory as free of any disease listed 
163.28 	by OIE - the World Organisation for Animal Health for crustaceans or in the AFS Fish 
163.29 	Health Blue Book for other species, as appropriate.
163.30 	If a shipment authorized by the commissioner under clause (1) includes saltwater aquatic 
163.31 	life that originated in a foreign country, the shipment must be quarantined at the receiving 
163.32 	facility according to a quarantine plan approved by the commissioner. A shipment authorized 
163.33 	by the commissioner under clause (2) must be quarantined at the receiving facility according 
163.34 	to a quarantine plan approved by the commissioner.
164.1 	(d) For purposes of this subdivision, "approved laboratory" means a laboratory approved 
164.2 	by the commissioner or the United States Department of Agriculture, Animal and Plant 
164.3 	Health Inspection Services.
164.4 	(e) No later than 14 calendar days after a completed transportation permit application 
164.5 	is received, the commissioner must approve or deny the transportation permit application.
164.6 	(f) A copy of the transportation permit must accompany a shipment of saltwater aquatic 
164.7 	life while in transit and must be available for inspection by the commissioner.
164.8 	(g) A vehicle used by a licensee for transporting aquatic life must be identified with the 
164.9 	license number and the licensee's name and town of residence as it appears on the license. 
164.10 	A vehicle used by a licensee must have identification displayed so that it is readily visible 
164.11 	from either side of the vehicle in letters and numbers not less than 2-1/2 inches high and 
164.12 	three-eighths inch wide. Identification may be permanently affixed to vehicles or displayed 
164.13 	on removable plates or placards placed on opposite doors of the vehicle or on the tanks 
164.14 	carried on the vehicle.
164.15 	(h) An application to license a vehicle for brood stock or larvae transport or for use as 
164.16 	a saltwater aquatic life vendor that is received by the commissioner is a temporary license 
164.17 	until approved or denied by the commissioner.
164.18 		Subd. 3.Exemptions. (a) A transportation permit is not required to transport or import 
164.19 	saltwater aquatic life:
164.20 	(1) previously processed for use as food or other purposes unrelated to propagation;
164.21 	(2) transported directly to an outlet for processing as food or for other food purposes if 
164.22 	accompanied by shipping documents;
164.23 	(3) that is being exported if accompanied by shipping documents;
164.24 	(4) that is being transported through the state if accompanied by shipping documents; 
164.25 	or
164.26 	(5) transported intrastate within or between facilities licensed for saltwater aquaculture 
164.27 	by the commissioner if accompanied by shipping documents.
164.28 	(b) Shipping documents required under paragraph (a) must include the place of origin, 
164.29 	owner or consignee, destination, number, species, and satisfactory evidence, as determined 
164.30 	by the commissioner, of the disease-free certification required under subdivision 2, paragraph 
164.31 	(c), clauses (1) and (2).

165.1 	Sec. 7. Minnesota Statutes 2017 Supplement, section 84.01, subdivision 6, is amended to 
165.2 	read:
165.3 		Subd. 6.Legal counsel. The commissioner of natural resources may appoint attorneys 
165.4 	or outside counsel to render title opinions, represent the department in severed mineral 
165.5 	interest forfeiture actions brought pursuant to section 93.55, and, notwithstanding any statute 
165.6 	to the contrary, represent the state in quiet title or title registration actions affecting land or 
165.7 	interests in land administered by the commissioner and in all proceedings relating to road 
165.8 	vacations.

165.9 	Sec. 8. Minnesota Statutes 2016, section 84.0895, subdivision 2, is amended to read:
165.10 		Subd. 2.Application. (a) Subdivision 1 does not apply to:
165.11 	(1) plants on land classified for property tax purposes as class 2a or 2c agricultural land 
165.12 	under section 273.13, or on ditches and roadways a ditch, or on an existing public road 
165.13 	right-of-way as defined in section 84.92, subdivision 6a, except for ground not previously 
165.14 	disturbed by construction or maintenance; and
165.15 	(2) noxious weeds designated pursuant to sections 18.76 to 18.88 or to weeds otherwise 
165.16 	designated as troublesome by the Department of Agriculture.
165.17 	(b) If control of noxious weeds is necessary, it takes priority over the protection of 
165.18 	endangered plant species, as long as a reasonable effort is taken to preserve the endangered 
165.19 	plant species first.
165.20 	(c) The taking or killing of an endangered plant species on land adjacent to class 3 or 
165.21 	3b agricultural land as a result of the application of pesticides or other agricultural chemical 
165.22 	on the class 3 or 3b land is not a violation of subdivision 1, if reasonable care is taken in 
165.23 	the application of the pesticide or other chemical to avoid impact on adjacent lands. For the 
165.24 	purpose of this paragraph, class 3 or 3b agricultural land does not include timber land, waste 
165.25 	land, or other land for which the owner receives a state paid wetlands or native prairie tax 
165.26 	credit.
165.27 	(d) The accidental taking of an endangered plant, where the existence of the plant is not 
165.28 	known at the time of the taking, is not a violation of subdivision 1.

165.29 	Sec. 9. Minnesota Statutes 2016, section 84.775, subdivision 1, is amended to read:
165.30 		Subdivision 1.Civil citation; authority to issue. (a) A conservation officer or other 
165.31 	licensed peace officer may issue a civil citation to a person who operates:
166.1 	(1) an off-highway motorcycle in violation of sections 84.773, subdivision 1 or 2, clause 
166.2 	(1); 84.777; 84.788 to 84.795; or 84.90;
166.3 	(2) an off-road vehicle in violation of sections 84.773, subdivision 1 or 2, clause (1); 
166.4 	84.777; 84.798 to 84.804; or 84.90; or
166.5 	(3) an all-terrain vehicle in violation of sections 84.773, subdivision 1 or 2, clause (1); 
166.6 	84.777; 84.90; or 84.922 to 84.928.
166.7 	(b) A civil citation under paragraph (a) shall require restitution for public and private 
166.8 	property damage and impose a penalty of:
166.9 	(1) $100 for the first offense;
166.10 	(2) $200 for the second offense; and
166.11 	(3) $500 for third and subsequent offenses.
166.12 	(c) A conservation officer or other licensed peace officer may issue a civil citation to a 
166.13 	person who operates an off-highway motorcycle, off-road vehicle, or all-terrain vehicle in 
166.14 	violation of section 84.773, subdivision 2, clause (2) or (3). A civil citation under this 
166.15 	paragraph shall require restitution for damage to wetlands and impose a penalty of:
166.16 	(1) $100 for the first offense;
166.17 	(2) $500 for the second offense; and
166.18 	(3) $1,000 for third and subsequent offenses.
166.19 	(d) If the peace officer determines that there is damage to property requiring restitution, 
166.20 	the commissioner must send a written explanation of the extent of the damage and the cost 
166.21 	of the repair by first class mail to the address provided by the person receiving the citation 
166.22 	within 15 days of the date of the citation.
166.23 	(e) An off-road vehicle or all-terrain vehicle that is equipped with a snorkel device and 
166.24 	receives a civil citation under this section is subject to twice the penalty amounts in 
166.25 	paragraphs (b) and (c).

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

166.27 	Sec. 10. Minnesota Statutes 2016, section 84.86, subdivision 1, is amended to read:
166.28 		Subdivision 1.Required rules. With a view of achieving maximum use of snowmobiles 
166.29 	consistent with protection of the environment the commissioner of natural resources shall 
166.30 	adopt rules in the manner provided by chapter 14, for the following purposes:
167.1 	(1) Registration of snowmobiles and display of registration numbers.
167.2 	(2) Use of snowmobiles insofar as game and fish resources are affected.
167.3 	(3) Use of snowmobiles on public lands and waters, or on grant-in-aid trails.
167.4 	(4) Uniform signs to be used by the state, counties, and cities, which are necessary or 
167.5 	desirable to control, direct, or regulate the operation and use of snowmobiles.
167.6 	(5) Specifications relating to snowmobile mufflers.
167.7 	(6) A comprehensive snowmobile information and safety education and training program, 
167.8 	including but not limited to the preparation and dissemination of snowmobile information 
167.9 	and safety advice to the public, the training of snowmobile operators, and the issuance of 
167.10 	snowmobile safety certificates to snowmobile operators who successfully complete the 
167.11 	snowmobile safety education and training course. For the purpose of administering such 
167.12 	program and to defray expenses of training and certifying snowmobile operators, the 
167.13 	commissioner shall collect a fee from each person who receives the youth or adult training. 
167.14 	The commissioner shall collect a fee, to include a $1 issuing fee for licensing agents, for 
167.15 	issuing a duplicate snowmobile safety certificate. The commissioner shall establish both 
167.16 	fees in a manner that neither significantly overrecovers nor underrecovers costs, including 
167.17 	overhead costs, involved in providing the services. The fees are not subject to the rulemaking 
167.18 	provisions of chapter 14 and section 14.386 does not apply. The fees may be established 
167.19 	by the commissioner notwithstanding section 16A.1283. The fees, except for the issuing 
167.20 	fee for licensing agents under this subdivision, shall be deposited in the snowmobile trails 
167.21 	and enforcement account in the natural resources fund and the amount thereof, except for 
167.22 	the electronic licensing system commission established by the commissioner under section 
167.23 	84.027, subdivision 15, and issuing fees collected by the commissioner, is appropriated 
167.24 	annually to the Enforcement Division of the Department of Natural Resources for the 
167.25 	administration of such programs. In addition to the fee established by the commissioner, 
167.26 	instructors may charge each person any fee paid by the instructor for the person's online 
167.27 	training course and up to the established fee amount for class materials and expenses. The 
167.28 	commissioner shall cooperate with private organizations and associations, private and public 
167.29 	corporations, and local governmental units in furtherance of the program established under 
167.30 	this clause. School districts may cooperate with the commissioner and volunteer instructors 
167.31 	to provide space for the classroom portion of the training. The commissioner shall consult 
167.32 	with the commissioner of public safety in regard to training program subject matter and 
167.33 	performance testing that leads to the certification of snowmobile operators.
168.1 	(7) The operator of any snowmobile involved in an accident resulting in injury requiring 
168.2 	medical attention or hospitalization to or death of any person or total damage to an extent 
168.3 	of $500 or more, shall forward a written report of the accident to the commissioner on such 
168.4 	form as the commissioner shall prescribe. If the operator is killed or is unable to file a report 
168.5 	due to incapacitation, any peace officer investigating the accident shall file the accident 
168.6 	report within ten business days.

168.7 	Sec. 11. Minnesota Statutes 2017 Supplement, section 84.91, subdivision 1, is amended 
168.8 	to read:
168.9 		Subdivision 1.Acts prohibited. (a) No owner or other person having charge or control 
168.10 	of any snowmobile or all-terrain vehicle shall authorize or permit any individual the person 
168.11 	knows or has reason to believe is under the influence of alcohol or a controlled substance 
168.12 	or other substance to operate the snowmobile or all-terrain vehicle anywhere in this state 
168.13 	or on the ice of any boundary water of this state.
168.14 	(b) No owner or other person having charge or control of any snowmobile or all-terrain 
168.15 	vehicle shall knowingly authorize or permit any person, who by reason of any physical or 
168.16 	mental disability is incapable of operating the vehicle, to operate the snowmobile or all-terrain 
168.17 	vehicle anywhere in this state or on the ice of any boundary water of this state.
168.18 	(c) A person who operates or is in physical control of a snowmobile or all-terrain vehicle 
168.19 	anywhere in this state or on the ice of any boundary water of this state is subject to chapter 
168.20 	169A. In addition to the applicable sanctions under chapter 169A, a person who is convicted 
168.21 	of violating section 169A.20 or an ordinance in conformity with it while operating a 
168.22 	snowmobile or all-terrain vehicle, or who refuses to comply with a lawful request to submit 
168.23 	to testing under sections 169A.50 to 169A.53 or 171.177, or an ordinance in conformity 
168.24 	with it, shall be prohibited from operating a snowmobile or all-terrain vehicle for a period 
168.25 	of one year. The commissioner shall notify the person of the time period during which the 
168.26 	person is prohibited from operating a snowmobile or all-terrain vehicle.
168.27 	(d) Administrative and judicial review of the operating privileges prohibition is governed
168.28 	by section 97B.066, subdivisions 7 to 9, if the person does not have a prior impaired driving 
168.29 	conviction or prior license revocation, as defined in section 169A.03. Otherwise, 
168.30 	administrative and judicial review of the prohibition is governed by section 169A.53 or 
168.31 	171.177.
168.32 	(e) The court shall promptly forward to the commissioner and the Department of Public 
168.33 	Safety copies of all convictions and criminal and civil sanctions imposed under:
169.1 	(1) this section and chapters;
169.2 	(2) chapter 169 and relating to snowmobiles and all-terrain vehicles;
169.3 	(3) chapter 169A relating to snowmobiles and all-terrain vehicles.; and
169.4 	(4) section 171.177.
169.5 	(f) A person who violates paragraph (a) or (b), or an ordinance in conformity with either 
169.6 	of them, is guilty of a misdemeanor. A person who operates a snowmobile or all-terrain 
169.7 	vehicle during the time period the person is prohibited from operating a vehicle under 
169.8 	paragraph (c) is guilty of a misdemeanor.

169.9 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to violations 
169.10 	committed on or after that date.

169.11 	Sec. 12. Minnesota Statutes 2017 Supplement, section 84.925, subdivision 1, is amended 
169.12 	to read:
169.13 		Subdivision 1.Program Training and certification programs established. (a) The 
169.14 	commissioner shall establish:
169.15 	(1) a comprehensive all-terrain vehicle environmental and safety education and training 
169.16 	certification program, including the preparation and dissemination of vehicle information 
169.17 	and safety advice to the public, the training of all-terrain vehicle operators, and the issuance 
169.18 	of all-terrain vehicle safety certificates to vehicle operators over the age of 12 years who 
169.19 	successfully complete the all-terrain vehicle environmental and safety education and training 
169.20 	course.; and
169.21 	(2) a voluntary all-terrain vehicle online training program for youth and a parent or 
169.22 	guardian, offered at no charge for operators at least six years of age but younger than ten 
169.23 	years of age.
169.24 	(b) A parent or guardian must be present at the hands-on a training portion of the program 
169.25 	for when the youth who are six through ten is under ten years of age.
169.26 	(b) (c) For the purpose of administering the program and to defray the expenses of 
169.27 	training and certifying vehicle operators, the commissioner shall collect a fee from each 
169.28 	person who receives the training for certification under paragraph (a), clause (1). The 
169.29 	commissioner shall collect a fee, to include a $1 issuing fee for licensing agents, for issuing 
169.30 	a duplicate all-terrain vehicle safety certificate. The commissioner shall establish both fees 
169.31 	in a manner that neither significantly overrecovers nor underrecovers costs, including 
169.32 	overhead costs, involved in providing the services. The fees are not subject to the rulemaking 
170.1 	provisions of chapter 14 and section 14.386 does not apply. The fees may be established 
170.2 	by the commissioner notwithstanding section 16A.1283. Fee proceeds, except for the issuing 
170.3 	fee for licensing agents under this subdivision, shall be deposited in the all-terrain vehicle 
170.4 	account in the natural resources fund and the amount thereof, except for the electronic 
170.5 	licensing system commission established by the commissioner under section 84.027, 
170.6 	subdivision 15, and issuing fees collected by the commissioner, is appropriated annually to 
170.7 	the Enforcement Division of the Department of Natural Resources for the administration 
170.8 	of the programs. In addition to the fee established by the commissioner, instructors may 
170.9 	charge each person up to the established fee amount for class materials and expenses.
170.10 	(c) (d) The commissioner shall cooperate with private organizations and associations, 
170.11 	private and public corporations, and local governmental units in furtherance of the program
170.12 	programs established under this section. School districts may cooperate with the 
170.13 	commissioner and volunteer instructors to provide space for the classroom portion of the 
170.14 	training. The commissioner shall consult with the commissioner of public safety in regard 
170.15 	to training program the subject matter of the training programs and performance testing that 
170.16 	leads to the certification of vehicle operators. The commissioner shall incorporate a riding 
170.17 	component in the safety education and training program certification programs established 
170.18 	under this section, and may incorporate a riding component in the training program as 
170.19 	established in paragraph (a), clause (2).

170.20 	Sec. 13. Minnesota Statutes 2017 Supplement, section 84.9256, subdivision 1, is amended 
170.21 	to read:
170.22 		Subdivision 1.Prohibitions on youthful operators. (a) Except for operation on public 
170.23 	road rights-of-way that is permitted under section 84.928 and as provided under paragraph 
170.24 	(j), a driver's license issued by the state or another state is required to operate an all-terrain 
170.25 	vehicle along or on a public road right-of-way.
170.26 	(b) A person under 12 years of age shall not:
170.27 	(1) make a direct crossing of a public road right-of-way;
170.28 	(2) operate an all-terrain vehicle on a public road right-of-way in the state; or
170.29 	(3) operate an all-terrain vehicle on public lands or waters, except as provided in 
170.30 	paragraph (f).
170.31 	(c) Except for public road rights-of-way of interstate highways, a person 12 years of age 
170.32 	but less than 16 years may make a direct crossing of a public road right-of-way of a trunk, 
170.33 	county state-aid, or county highway or operate on public lands and waters or state or 
171.1 	grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety certificate 
171.2 	issued by the commissioner and is accompanied by a person 18 years of age or older who 
171.3 	holds a valid driver's license.
171.4 	(d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years old, 
171.5 	but less than 16 years old, must:
171.6 	(1) successfully complete the safety education and training program under section 84.925, 
171.7 	subdivision 1, including a riding component; and
171.8 	(2) be able to properly reach and control the handle bars and reach the foot pegs while 
171.9 	sitting upright on the seat of the all-terrain vehicle.
171.10 	(e) A person at least six ten years of age may take the safety education and training 
171.11 	program and may receive an all-terrain vehicle safety certificate under paragraph (d), but 
171.12 	the certificate is not valid until the person reaches age 12.
171.13 	(f) A person at least ten years of age but under 12 years of age may operate an all-terrain 
171.14 	vehicle with an engine capacity up to 110cc if the vehicle is a class 1 all-terrain vehicle with 
171.15 	straddle-style seating or up to 170cc if the vehicle is a class 1 all-terrain vehicle with 
171.16 	side-by-side-style seating on public lands or waters if accompanied by a parent or legal 
171.17 	guardian.
171.18 	(g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
171.19 	(h) A person under the age of 16 may not operate an all-terrain vehicle on public lands 
171.20 	or waters or on state or grant-in-aid trails if the person cannot properly reach and control:
171.21 	(1) the handle bars and reach the foot pegs while sitting upright on the seat of the 
171.22 	all-terrain vehicle with straddle-style seating; or
171.23 	(2) the steering wheel and foot controls of a class 1 all-terrain vehicle with 
171.24 	side-by-side-style seating while sitting upright in the seat with the seat belt fully engaged.
171.25 	(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than 16 
171.26 	years old, may make a direct crossing of a public road right-of-way of a trunk, county 
171.27 	state-aid, or county highway or operate an all-terrain vehicle on public lands and waters or 
171.28 	state or grant-in-aid trails if:
171.29 	(1) the nonresident youth has in possession evidence of completing an all-terrain safety 
171.30 	course offered by the ATV Safety Institute or another state as provided in section 84.925, 
171.31 	subdivision 3; and
172.1 	(2) the nonresident youth is accompanied by a person 18 years of age or older who holds 
172.2 	a valid driver's license.
172.3 	(j) A person 12 years of age but less than 16 years of age may operate an all-terrain 
172.4 	vehicle on the roadway, bank, slope, or ditch of a public road right-of-way as permitted 
172.5 	under section 84.928 if the person:
172.6 	(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner; 
172.7 	and
172.8 	(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

172.9 	Sec. 14. Minnesota Statutes 2016, section 84.928, subdivision 2, is amended to read:
172.10 		Subd. 2.Operation generally. A person may not drive or operate an all-terrain vehicle:
172.11 	(1) at a rate of speed greater than reasonable or proper under the surrounding 
172.12 	circumstances;
172.13 	(2) in a careless, reckless, or negligent manner so as to endanger or to cause injury or 
172.14 	damage to the person or property of another;
172.15 	(3) without headlight and taillight lighted at all times if the vehicle is equipped with 
172.16 	headlight and taillight;
172.17 	(4) without a functioning stoplight if so equipped;
172.18 	(5) in a tree nursery or planting in a manner that damages or destroys growing stock;
172.19 	(6) without a brake operational by either hand or foot;
172.20 	(7) with more than one person on the vehicle, except as allowed under section 84.9257;
172.21 	(8) at a speed exceeding ten miles per hour on the frozen surface of public waters within 
172.22 	100 feet of a person not on an all-terrain vehicle or within 100 feet of a fishing shelter; or
172.23 	(9) with a snorkel device that has a raised air intake six inches or more above the vehicle 
172.24 	manufacturer's original air intake, except within the Iron Range Off-Highway Vehicle 
172.25 	Recreation Area as described in section 85.013, subdivision 12a, or other public off-highway 
172.26 	vehicle recreation areas; or
172.27 	(10) (9) in a manner that violates operation rules adopted by the commissioner.

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

173.1 	Sec. 15. Minnesota Statutes 2017 Supplement, section 84D.03, subdivision 3, is amended 
173.2 	to read:
173.3 		Subd. 3.Bait harvest from infested waters. (a) Taking wild animals from infested 
173.4 	waters for bait or aquatic farm purposes is prohibited except as provided in paragraph (b), 
173.5 	(c), or (d) and section 97C.341.
173.6 	(b) In waters that are listed as infested waters, except those listed as infested with 
173.7 	prohibited invasive species of fish or certifiable diseases of fish, as defined under section 
173.8 	17.4982, subdivision 6, taking wild animals may be permitted for:
173.9 	(1) commercial taking of wild animals for bait and aquatic farm purposes as provided 
173.10 	in a permit issued under section 84D.11, subject to rules adopted by the commissioner; and
173.11 	(2) bait purposes for noncommercial personal use in waters that contain Eurasian 
173.12 	watermilfoil, when the infested waters are listed solely because they contain Eurasian 
173.13 	watermilfoil and if the equipment for taking is limited to cylindrical minnow traps not 
173.14 	exceeding 16 inches in diameter and 32 inches in length.
173.15 	(c) In streams or rivers that are listed as infested waters, except those listed as infested 
173.16 	with certifiable diseases of fish, as defined under section 17.4982, subdivision 6, the harvest 
173.17 	of bullheads, goldeyes, mooneyes, sheepshead (freshwater drum), and suckers for bait by 
173.18 	hook and line for noncommercial personal use is allowed as follows:
173.19 	(1) fish taken under this paragraph must be used on the same body of water where caught 
173.20 	and while still on that water body. Where the river or stream is divided by barriers such as 
173.21 	dams, the fish must be caught and used on the same section of the river or stream;
173.22 	(2) fish taken under this paragraph may not be transported live from or off the water 
173.23 	body;
173.24 	(3) fish harvested under this paragraph may only be used in accordance with this section;
173.25 	(4) any other use of wild animals used for bait from infested waters is prohibited;
173.26 	(5) fish taken under this paragraph must meet all other size restrictions and requirements 
173.27 	as established in rules; and
173.28 	(6) all species listed under this paragraph shall be included in the person's daily limit as 
173.29 	established in rules, if applicable.
173.30 	(d) In the Minnesota River downstream of Granite Falls, the Mississippi River 
173.31 	downstream of St. Anthony Falls, and the St. Croix River downstream of the dam at Taylors 
173.32 	Falls, including portions described as Minnesota-Wisconsin boundary waters in Minnesota 
174.1 	Rules, part 6266.0500, subpart 1, items A and B, the harvest of gizzard shad by cast net for 
174.2 	noncommercial personal use as bait for angling, as provided in a permit issued under section 
174.3 	84D.11, is allowed as follows:
174.4 	(1) nontarget species must immediately be returned to the water;
174.5 	(2) gizzard shad taken under this paragraph must be used on the same body of water 
174.6 	where caught and while still on that water body. Where the river is divided by barriers such 
174.7 	as dams, the gizzard shad must be caught and used on the same section of the river;
174.8 	(3) gizzard shad taken under this paragraph may not be transported off the water body; 
174.9 	and
174.10 	(4) gizzard shad harvested under this paragraph may only be used in accordance with 
174.11 	this section.
174.12 	This paragraph expires December 1, 2017.
174.13 	(e) Equipment authorized for minnow harvest in a listed infested water by permit issued 
174.14 	under paragraph (b) may not be transported to, or used in, any waters other than waters 
174.15 	specified in the permit.
174.16 	(f) Bait intended for sale may not be held in infested water after taking and before sale, 
174.17 	unless authorized under a license or permit according to Minnesota Rules, part 6216.0500.

174.18 	EFFECTIVE DATE. This section is effective retroactively from December 1, 2017.

174.19 	Sec. 16. Minnesota Statutes 2017 Supplement, section 84D.03, subdivision 4, is amended 
174.20 	to read:
174.21 		Subd. 4.Restrictions in infested and noninfested waters; commercial fishing and 
174.22 	turtle, frog, and crayfish harvesting. (a) All nets, traps, buoys, anchors, stakes, and lines 
174.23 	used for commercial fishing or turtle, frog, or crayfish harvesting in an infested water that 
174.24 	is listed because it contains invasive fish, invertebrates, aquatic plants or aquatic macrophytes 
174.25 	other than Eurasian watermilfoil, or certifiable diseases, as defined in section 17.4982, must 
174.26 	be tagged with tags provided by the commissioner, as specified in the commercial licensee's 
174.27 	license or permit. Tagged gear must not be used in water bodies other than those specified 
174.28 	in the license or permit. The license or permit may authorize department staff to remove 
174.29 	tags after the from gear is that has been decontaminated according to a protocol specified 
174.30 	by the commissioner if use of the decontaminated gear in other water bodies would not pose 
174.31 	an unreasonable risk of harm to natural resources or the use of natural resources in the state. 
175.1 	This tagging requirement does not apply to commercial fishing equipment used in Lake 
175.2 	Superior.
175.3 	(b) All nets, traps, buoys, anchors, stakes, and lines used for commercial fishing or turtle, 
175.4 	frog, or crayfish harvesting in an infested water that is listed solely because it contains 
175.5 	Eurasian watermilfoil must be dried for a minimum of ten days or frozen for a minimum 
175.6 	of two days before they are used in any other waters, except as provided in this paragraph. 
175.7 	Commercial licensees must notify the department's regional or area fisheries office or a 
175.8 	conservation officer before removing nets or equipment from an infested water listed solely 
175.9 	because it contains Eurasian watermilfoil and before resetting those nets or equipment in 
175.10 	any other waters. Upon notification, the commissioner may authorize a commercial licensee 
175.11 	to move nets or equipment to another water without freezing or drying, if that water is listed 
175.12 	as infested solely because it contains Eurasian watermilfoil.
175.13 	(c) A commercial licensee must remove all aquatic macrophytes from nets and other 
175.14 	equipment before placing the equipment into waters of the state.
175.15 	(d) The commissioner shall provide a commercial licensee with a current listing of listed 
175.16 	infested waters at the time that a license or permit is issued.

175.17 	Sec. 17. Minnesota Statutes 2017 Supplement, section 84D.108, subdivision 2b, is amended 
175.18 	to read:
175.19 		Subd. 2b.Gull Lake pilot study. (a) The commissioner may include an additional 
175.20 	targeted pilot study to include water-related equipment with zebra mussels attached for the 
175.21 	Gull Narrows State Water Access Site, Government Point State Water Access Site, and 
175.22 	Gull East State water access Site sites on Gull Lake (DNR Division of Waters number 
175.23 	11-0305) in Cass and Crow Wing Counties using the same authorities, general procedures, 
175.24 	and requirements provided for the Lake Minnetonka pilot project in subdivision 2a. Lake 
175.25 	service providers participating in the Gull Lake targeted pilot study place of business must 
175.26 	be located in Cass or Crow Wing County.
175.27 	(b) If an additional targeted pilot project for Gull Lake is implemented under this section, 
175.28 	the report to the chairs and ranking minority members of the senate and house of 
175.29 	representatives committees having jurisdiction over natural resources required under Laws 
175.30 	2016, chapter 189, article 3, section 48, must also include the Gull Lake targeted pilot study 
175.31 	recommendations and assessments.
175.32 	(c) This subdivision expires December 1, 2019.

176.1 	Sec. 18. Minnesota Statutes 2017 Supplement, section 84D.108, subdivision 2c, is amended 
176.2 	to read:
176.3 		Subd. 2c.Cross Lake pilot study. (a) The commissioner may include an additional 
176.4 	targeted pilot study to include water-related equipment with zebra mussels attached for the 
176.5 	Cross Lake #1 State water access Site sites on Cross Lake (DNR Division of Waters number 
176.6 	18-0312) in Crow Wing County using the same authorities, general procedures, and 
176.7 	requirements provided for the Lake Minnetonka pilot project in subdivision 2a. The place 
176.8 	of business of lake service providers participating in the Cross Lake targeted pilot study 
176.9 	must be located in Cass or Crow Wing County.
176.10 	(b) If an additional targeted pilot project for Cross Lake is implemented under this 
176.11 	section, the report to the chairs and ranking minority members of the senate and house of 
176.12 	representatives committees having jurisdiction over natural resources required under Laws 
176.13 	2016, chapter 189, article 3, section 48, must also include the Cross Lake targeted pilot 
176.14 	study recommendations and assessments.
176.15 	(c) This subdivision expires December 1, 2019.

176.16 	Sec. 19. Minnesota Statutes 2017 Supplement, section 85.0146, subdivision 1, is amended 
176.17 	to read:
176.18 		Subdivision 1.Advisory council created. The Cuyuna Country State Recreation Area 
176.19 	Citizens Advisory Council is established. Membership on the advisory council shall include:
176.20 	(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board
176.21 	Cuyuna Range Economic Development, Inc.;
176.22 	(2) a representative of for the Croft Mine Historical Park Joint Powers Boardappointed 
176.23 	by the members of the Cuyuna Country State Recreation Area Citizens Advisory Council 
176.24 	who are appointed under clauses (1) and (4) to (13);
176.25 	(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked 
176.26 	as a miner in the local area member at large appointed by the members of the Cuyuna 
176.27 	Country State Recreation Area Citizens Advisory Council who are appointed under clauses 
176.28 	(1) and (4) to (13);
176.29 	(4) a representative of the Crow Wing County Board;
176.30 	(5) an elected state official the state senator representing the state recreation area;
176.31 	(6) the member from the state house of representatives representing the state recreation 
176.32 	area;
177.1 	(7) a representative of the Grand Rapids regional office of the Department of Natural 
177.2 	Resources;
177.3 	(7) (8) a designee of the commissioner of Iron Range resources and rehabilitation;
177.4 	(8) (9) a designee of the local business community selected by the area chambers of 
177.5 	commerce;
177.6 	(9) (10) a designee of the local environmental community selected by the Crow Wing 
177.7 	County District 5 commissioner;
177.8 	(10) (11) a designee of a local education organization selected by the Crosby-Ironton 
177.9 	School Board;
177.10 	(11) (12) a designee of one of the recreation area user groups selected by the Cuyuna 
177.11 	Range Chamber of Commerce; and
177.12 	(12) (13) a member of the Cuyuna Country Heritage Preservation Society.

177.13 	Sec. 20. Minnesota Statutes 2017 Supplement, section 86B.331, subdivision 1, is amended 
177.14 	to read:
177.15 		Subdivision 1.Acts prohibited. (a) An owner or other person having charge or control 
177.16 	of a motorboat may not authorize or allow an individual the person knows or has reason to 
177.17 	believe is under the influence of alcohol or a controlled or other substance to operate the 
177.18 	motorboat in operation on the waters of this state.
177.19 	(b) An owner or other person having charge or control of a motorboat may not knowingly 
177.20 	authorize or allow a person, who by reason of a physical or mental disability is incapable 
177.21 	of operating the motorboat, to operate the motorboat in operation on the waters of this state.
177.22 	(c) A person who operates or is in physical control of a motorboat on the waters of this 
177.23 	state is subject to chapter 169A. In addition to the applicable sanctions under chapter 169A, 
177.24 	a person who is convicted of violating section 169A.20 or an ordinance in conformity with 
177.25 	it while operating a motorboat, shall be prohibited from operating a motorboat on the waters 
177.26 	of this state for a period of 90 days between May 1 and October 31, extending over two 
177.27 	consecutive years if necessary. If the person operating the motorboat refuses to comply with 
177.28 	a lawful demand to submit to testing under sections 169A.50 to 169A.53 or 171.177, or an 
177.29 	ordinance in conformity with it, the person shall be prohibited from operating a motorboat 
177.30 	for a period of one year. The commissioner shall notify the person of the period during 
177.31 	which the person is prohibited from operating a motorboat.
178.1 	(d) Administrative and judicial review of the operating privileges prohibition is governed 
178.2 	by section 97B.066, subdivisions 7 to 9, if the person does not have a prior impaired driving 
178.3 	conviction or prior license revocation, as defined in section 169A.03. Otherwise, 
178.4 	administrative and judicial review of the prohibition is governed by section 169A.53 or 
178.5 	171.177.
178.6 	(e) The court shall promptly forward to the commissioner and the Department of Public 
178.7 	Safety copies of all convictions and criminal and civil sanctions imposed under: (1) this 
178.8 	section and chapters; (2) chapter 169 andrelating to motorboats; (3) chapter 169A relating 
178.9 	to motorboats; and (4) section 171.177.
178.10 	(f) A person who violates paragraph (a) or (b), or an ordinance in conformity with either 
178.11 	of them, is guilty of a misdemeanor.
178.12 	(g) For purposes of this subdivision, a motorboat "in operation" does not include a 
178.13 	motorboat that is anchored, beached, or securely fastened to a dock or other permanent 
178.14 	mooring, or a motorboat that is being rowed or propelled by other than mechanical means.

178.15 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
178.16 	committed on or after that date.

178.17 	Sec. 21. Minnesota Statutes 2016, section 88.10, is amended by adding a subdivision to 
178.18 	read:
178.19 		Subd. 3.Wildland firefighters; training and licensing. Forest officers and all 
178.20 	individuals employed as wildland firefighters under this chapter are not subject to the 
178.21 	requirements of chapter 299N.

178.22 	Sec. 22. Minnesota Statutes 2016, section 88.75, subdivision 1, is amended to read:
178.23 		Subdivision 1.Misdemeanor offenses; damages; injunctive relief. (a) Any person 
178.24 	who violates any of the provisions of sections 88.03 to 88.22 for which no specific penalty 
178.25 	is therein prescribed shall be guilty of a misdemeanor and be punished accordingly.
178.26 	(b) Failure by any person to comply with any provision or requirement of sections 88.03
178.27 	to 88.22 to which such person is subject shall be deemed a violation thereof.
178.28 	(c) Any person who violates any provisions of sections 88.03 to 88.22, in addition to 
178.29 	any penalties therein prescribed, or hereinbefore in this section prescribed, for such violation, 
178.30 	shall also be liable in full damages to any and every person suffering loss or injury by reason 
178.31 	of such violation, including liability to the state, and any of its political subdivisions, for 
178.32 	all expenses incurred in fighting or preventing the spread of, or extinguishing, any fire 
179.1 	caused by, or resulting from, any violation of these sections. Notwithstanding any statute 
179.2 	to the contrary, an attorney who is licensed to practice law in Minnesota and is an employee 
179.3 	of the Department of Natural Resources may represent the commissioner in proceedings 
179.4 	under this subdivision that are removed to district court from conciliation court. All expenses 
179.5 	so collected by the state shall be deposited in the general fund. When a fire set by any person 
179.6 	spreads to and damages or destroys property belonging to another, the setting of the fire 
179.7 	shall be prima facie evidence of negligence in setting and allowing the same to spread.
179.8 	(d) At any time the state, or any political subdivision thereof, either of its own motion, 
179.9 	or at the suggestion or request of the director, may bring an action in any court of competent 
179.10 	jurisdiction to restrain, enjoin, or otherwise prohibit any violation of sections 88.03 to 88.22, 
179.11 	whether therein described as a crime or not, and likewise to restrain, enjoin, or prohibit any 
179.12 	person from proceeding further in, with, or at any timber cutting or other operations without 
179.13 	complying with the provisions of those sections, or the requirements of the director pursuant 
179.14 	thereto; and the court may grant such relief, or any other appropriate relief, whenever it 
179.15 	shall appear that the same may prevent loss of life or property by fire, or may otherwise aid 
179.16 	in accomplishing the purposes of sections 88.03 to 88.22.

179.17 	Sec. 23. Minnesota Statutes 2016, section 89.551, is amended to read:
179.18 	89.551 APPROVED FIREWOOD REQUIRED.
179.19 	(a) After the commissioner issues an order under paragraph (b), a person may not possess 
179.20 	firewood on land administered by the commissioner of natural resources unless the firewood:
179.21 	(1) was obtained from a firewood distribution facility located on land administered by 
179.22 	the commissioner;
179.23 	(2) was obtained from a firewood dealer who is selling firewood that is approved by the 
179.24 	commissioner under paragraph (b); or
179.25 	(3) has been approved by the commissioner of natural resources under paragraph (b).
179.26 	(b) The commissioner of natural resources shall, by written order published in the State 
179.27 	Register, approve firewood for possession on lands administered by the commissioner. The 
179.28 	order is not subject to the rulemaking provisions of chapter 14, and section 14.386 does not 
179.29 	apply.
179.30 	(c) A violation under this section is subject to confiscation of firewood and after May 
179.31 	1, 2008, confiscation and a $100 penalty. A firewood dealer shall be subject to confiscation 
179.32 	and assessed a $100 penalty for each sale of firewood not approved under the provisions 
179.33 	of this section and sold for use on land administered by the commissioner.
180.1 	(d) For the purposes of this section, "firewood" means any wood that is intended for use 
180.2 	in a campfire, as defined in section 88.01, subdivision 25.

180.3 	Sec. 24. Minnesota Statutes 2016, section 97A.051, subdivision 2, is amended to read:
180.4 		Subd. 2.Summary of fish and game laws. (a) The commissioner shall prepare a 
180.5 	summary of the hunting and fishing laws and rules and deliver a sufficient supply to license 
180.6 	vendors to furnish one copy to each person obtaining a hunting, fishing, or trapping license.
180.7 	(b) At the beginning of the summary, under the heading "Trespass," the commissioner 
180.8 	shall summarize the trespass provisions under sections 97B.001 to 97B.945, state that 
180.9 	conservation officers and peace officers must enforce the trespass laws, and state the penalties 
180.10 	for trespassing.
180.11 	(c) In the summary the commissioner shall, under the heading "Duty to Render Aid," 
180.12 	summarize the requirements under section 609.662 and state the penalties for failure to 
180.13 	render aid to a person injured by gunshot.

180.14 	Sec. 25. Minnesota Statutes 2017 Supplement, section 97A.075, subdivision 1, is amended 
180.15 	to read:
180.16 		Subdivision 1.Deer, bear, and lifetime licenses. (a) For purposes of this subdivision, 
180.17 	"deer license" means a license issued under section 97A.475, subdivisions 2, clauses (5), 
180.18 	(6), (7), (13), (14), and (15); 3, paragraph (a), clauses (2), (3), (4), (10), (11), and (12); and 
180.19 	8, paragraph (b), and licenses issued under section 97B.301, subdivision 4.
180.20 	(b) $16 from each annual deer license issued under section 97A.475, subdivisions 2, 
180.21 	clauses (5), (6), and (7); 3, paragraph (a), clauses (2), (3), and (4); and 8, paragraph (b); $2 
180.22 	from each annual deer license and $2 issued under sections 97A.475, subdivisions 2, clauses 
180.23 	(13), (14), and (15); and 3, paragraph (a), clauses (10), (11), and (12); and 97B.301, 
180.24 	subdivision 4; $16 annually from the lifetime fish and wildlife trust fund, established in 
180.25 	section 97A.4742, for each license issued to a person 18 years of age or older under section 
180.26 	97A.473, subdivision 4,; and $2 annually from the lifetime fish and wildlife trust fund for 
180.27 	each license issued to a person under 18 years of age under section 97A.473, subdivision 
180.28 	4, shall be credited to the deer management account and is appropriated to the commissioner 
180.29 	for deer habitat improvement or deer management programs. The deer management account 
180.30 	is established as an account in the game and fish fund and may be used only for deer habitat 
180.31 	improvement or deer management programs.
181.1 	(c) $1 from each annual deer license and each bear license and $1 annually from the 
181.2 	lifetime fish and wildlife trust fund, established in section 97A.4742, for each license issued 
181.3 	under section 97A.473, subdivision 4, shall be credited to the deer and bear management 
181.4 	account and is appropriated to the commissioner for deer- and bear-management programs, 
181.5 	including a computerized licensing system.
181.6 	(d) Fifty cents from each deer license is credited to the emergency deer feeding and wild 
181.7 	Cervidae health-management account and is appropriated for emergency deer feeding and 
181.8 	wild Cervidae health management. Money appropriated for emergency deer feeding and 
181.9 	wild Cervidae health management is available until expended.
181.10 	When the unencumbered balance in the appropriation for emergency deer feeding and 
181.11 	wild Cervidae health management exceeds $2,500,000 at the end of a fiscal year, the 
181.12 	unencumbered balance in excess of $2,500,000 is canceled and available for deer- and 
181.13 	bear-management programs and computerized licensing.

181.14 	Sec. 26. [97A.409] VOTER REGISTRATION INFORMATION.
181.15 	(a) On the Department of Natural Resources online license sales Web site for purchasing 
181.16 	a resident license to hunt or fish that is required under the game and fish laws, the 
181.17 	commissioner must include the voter registration eligibility requirements, a description of 
181.18 	how to register to vote before or on election day, and a direct link to the secretary of state's 
181.19 	online voter registration Web site. The information and link must be easily readable and 
181.20 	displayed in a prominent location.
181.21 	(b) In the printed and digital versions of fishing regulations and hunting and trapping 
181.22 	regulations, the commissioner must include the voter registration eligibility requirements, 
181.23 	a description of how to register to vote before or on election day, and a link to the secretary 
181.24 	of state's online voter registration Web page. In addition, the commissioner must include a 
181.25 	voter registration application in the printed and digital versions of fishing regulations and 
181.26 	hunting and trapping regulations.
181.27 	(c) The secretary of state must provide the required voter registration information to the 
181.28 	commissioner. The secretary of state must prepare and approve an alternate form of the 
181.29 	voter registration application to be used in the regulations.

181.30 	EFFECTIVE DATE. Paragraph (a) is effective August 1, 2018, and applies to licenses 
181.31 	issued on or after March 1, 2019. Paragraph (b) is effective August 1, 2018, and applies to 
181.32 	printed and digital versions of regulations updated on or after that date.

182.1 	Sec. 27. Minnesota Statutes 2016, section 97A.433, subdivision 4, is amended to read:
182.2 		Subd. 4.Discretionary separate selection; eligibility. (a) The commissioner may 
182.3 	conduct a separate selection for up to 20 percent of the elk licenses to be issued for an area. 
182.4 	Only owners of, and tenants living on, at least 160 acres of agricultural or grazing land in 
182.5 	the area, and their family members, are eligible for the separate selection. Persons that are 
182.6 	unsuccessful in a separate selection must be included in the selection for the remaining 
182.7 	licenses. Persons who obtain an elk license in a separate selection must allow public elk 
182.8 	hunting on their land during the elk season for which the license is valid may sell the license 
182.9 	to any Minnesota resident eligible to hunt big game for no more than the original cost of 
182.10 	the license.
182.11 	(b) The commissioner may by rule establish criteria for determining eligible family 
182.12 	members under this subdivision.

182.13 	Sec. 28. Minnesota Statutes 2016, section 97A.433, subdivision 5, is amended to read:
182.14 		Subd. 5.Mandatory separate selection. The commissioner must conduct a separate 
182.15 	selection for 20 percent of the elk licenses to be issued each year. Only individuals who 
182.16 	have applied at least ten times for an elk license and who have never received a license are 
182.17 	eligible for this separate selection. A person who is unsuccessful in a separate selection 
182.18 	under this subdivision must be included in the selection for the remaining licenses.

182.19 	Sec. 29. Minnesota Statutes 2016, section 97B.015, subdivision 6, is amended to read:
182.20 		Subd. 6.Provisional certificate for persons with permanent physical or 
182.21 	developmental disability. Upon the recommendation of a course instructor, the 
182.22 	commissioner may issue a provisional firearms safety certificate to a person who satisfactorily 
182.23 	completes the classroom portion of the firearms safety course but is unable to pass the 
182.24 	written or an alternate format exam portion of the course because of a permanent physical 
182.25 	disability or developmental disability as defined in section 97B.1055, subdivision 1. The 
182.26 	certificate is valid only when used according to section 97B.1055.

182.27 	Sec. 30. Minnesota Statutes 2016, section 97B.081, subdivision 3, is amended to read:
182.28 		Subd. 3.Exceptions. (a) It is not a violation of this section for a person to:
182.29 	(1) cast the rays of a spotlight, headlight, or other artificial light to take raccoons 
182.30 	according to section 97B.621, subdivision 3, or tend traps according to section 97B.931;
183.1 	(2) hunt fox or coyote from January 1 to March 15 while using a handheld an artificial 
183.2 	light, provided that the person is:
183.3 	(i) on foot;
183.4 	(ii) using a shotgun;
183.5 	(iii) not within a public road right-of-way;
183.6 	(iv) using a handheld or electronic calling device; and
183.7 	(v) not within 200 feet of a motor vehicle; or
183.8 	(3) cast the rays of a handheld artificial light to retrieve wounded or dead big game 
183.9 	animals, provided that the person is:
183.10 	(i) on foot; and
183.11 	(ii) not in possession of a firearm or bow.
183.12 	(b) It is not a violation of subdivision 2 for a person to cast the rays of a spotlight, 
183.13 	headlight, or other artificial light to:
183.14 	(1) carry out any agricultural, safety, emergency response, normal vehicle operation, or 
183.15 	occupation-related activities that do not involve taking wild animals; or
183.16 	(2) carry out outdoor recreation as defined in section 97B.001 that is not related to 
183.17 	spotting, locating, or taking a wild animal.
183.18 	(c) Except as otherwise provided by the game and fish laws, it is not a violation of this 
183.19 	section for a person to use an electronic range finder device from one-half hour before 
183.20 	sunrise until one-half hour after sunset while lawfully hunting wild animals.
183.21 	(d) It is not a violation of this section for a licensed bear hunter to cast the rays of a 
183.22 	handheld artificial light to track or retrieve a wounded or dead bear while possessing a 
183.23 	firearm, provided that the person:
183.24 	(1) has the person's valid bear-hunting license in possession;
183.25 	(2) is on foot; and
183.26 	(3) is following the blood trail of a bear that was shot during legal shooting hours.

183.27 	Sec. 31. Minnesota Statutes 2016, section 97B.1055, is amended to read:
183.28 	97B.1055 HUNTING BY PERSONS WITH A PERMANENT PHYSICAL OR 
183.29 	DEVELOPMENTAL DISABILITY.
184.1 		Subdivision 1.Definitions. For purposes of this section and section 97B.015, subdivision 
184.2 	6,:
184.3 	(1) "person with developmental disability" means a person who has been diagnosed as 
184.4 	having substantial limitations in present functioning, manifested as significantly subaverage 
184.5 	intellectual functioning, existing concurrently with demonstrated deficits in adaptive behavior, 
184.6 	and who manifests these conditions before the person's 22nd birthday.;
184.7 	A(2) "person with a related condition" means a person who meets the diagnostic 
184.8 	definition under section 252.27, subdivision 1a.; and
184.9 	(3) "person with a permanent physical disability" means a person who has a physical 
184.10 	disability that prevents them from being able to navigate natural terrain or hold a firearm 
184.11 	for the purpose of a required field component for the firearms safety training program under 
184.12 	section 97B.020.
184.13 		Subd. 2.Obtaining a license. (a) Notwithstanding section 97B.020, a person with a 
184.14 	permanent physical disability or developmental disability may obtain a firearms hunting 
184.15 	license with a provisional firearms safety certificate issued under section 97B.015, 
184.16 	subdivision 6.
184.17 	(b) Any person accompanying or assisting a person with a permanent physical disability 
184.18 	or developmental disability under this section must possess a valid firearms safety certificate 
184.19 	issued by the commissioner.
184.20 		Subd. 3.Assistance required. A person who obtains a firearms hunting license under 
184.21 	subdivision 2 must be accompanied and assisted by a parent, guardian, or other adult person 
184.22 	designated by a parent or guardian when hunting. A person who is not hunting but is solely 
184.23 	accompanying and assisting a person with a permanent physical disability or developmental 
184.24 	disability need not obtain a hunting license.
184.25 		Subd. 4.Prohibited activities. (a) This section does not entitle a person to possess a 
184.26 	firearm if the person is otherwise prohibited from possessing a firearm under state or federal 
184.27 	law or a court order.
184.28 	(b) No person shall knowingly authorize or permit a person, who by reason of a permanent 
184.29 	physical disability or developmental disability is incapable of safely possessing a firearm, 
184.30 	to possess a firearm to hunt in the state or on any boundary water of the state.

185.1 	Sec. 32. Minnesota Statutes 2016, section 97C.345, subdivision 3a, is amended to read:
185.2 		Subd. 3a.Cast nets for gizzard shad. (a) Cast nets may be used only to take gizzard 
185.3 	shad for use as bait for angling:
185.4 	(1) from July 1 to November 30; and
185.5 	(2) from the Minnesota River downstream of Granite Falls, Mississippi River downstream 
185.6 	of St. Anthony Falls, and the St. Croix River downstream of the dam at Taylors Falls, 
185.7 	including portions described as Minnesota-Wisconsin boundary waters in Minnesota Rules, 
185.8 	part 6266.0500, subpart 1, items A and B, that are listed as infested waters as allowed under 
185.9 	section 84D.03, subdivision 3.
185.10 	(b) Cast nets used under this subdivision must be monofilament and may not exceed 
185.11 	seven five feet in diameter radius, and mesh size must be from three-eighths to five-eighths 
185.12 	inch bar measure. No more than two cast nets may be used at one time.
185.13 	(c) This subdivision expires December 1, 2017. The commissioner must report to the 
185.14 	chairs and ranking minority members of the house of representatives and senate committees 
185.15 	with jurisdiction over environment and natural resources by March 1, 2018, on the number 
185.16 	of permits issued, conservation impacts from the use of cast nets, and recommendations for 
185.17 	any necessary changes in statutes or rules.

185.18 	EFFECTIVE DATE. This section is effective retroactively from December 1, 2017.

185.19 	Sec. 33. Minnesota Statutes 2016, section 103B.3369, subdivision 5, is amended to read:
185.20 		Subd. 5.Financial assistance. A base grant, contract, or payment may be awarded to a 
185.21 	county or other local unit of government that provides a match utilizing a water 
185.22 	implementation tax or other local source. A water implementation tax that a county or other 
185.23 	local unit of government intends to use as a match to the base grant must be levied at a rate 
185.24 	sufficient to generate a minimum amount determined by the board. The board may award 
185.25 	performance-based or watershed-based grants, contracts, or payments to local units of 
185.26 	government that are responsible for implementing elements of applicable portions of 
185.27 	watershed management plans, comprehensive plans, local water management plans, or 
185.28 	comprehensive watershed management plans, developed or amended, adopted and approved, 
185.29 	according to chapter 103B, 103C, or 103D. Upon request by a local government unit, the 
185.30 	board may also award performance-based grants to local units of government to carry out 
185.31 	TMDL implementation plans as provided in chapter 114D, if the TMDL implementation 
185.32 	plan has been incorporated into the local water management plan according to the procedures 
185.33 	for approving comprehensive plans, watershed management plans, local water management 
186.1 	plans, or comprehensive watershed management plans under chapter 103B, 103C, or 103D, 
186.2 	or if the TMDL implementation plan has undergone a public review process. Notwithstanding 
186.3 	section 16A.41, the board may award performance-based grants, contracts, or payments on 
186.4 	an advanced basis. The fee authorized in section 40A.152 may be used as a local match or 
186.5 	as a supplement to state funding to accomplish implementation of comprehensive plans, 
186.6 	watershed management plans, local water management plans, or comprehensive watershed 
186.7 	management plans under this chapter and chapter 103C or 103D.

186.8 	Sec. 34. Minnesota Statutes 2016, section 103B.3369, subdivision 9, is amended to read:
186.9 		Subd. 9.Performance-based Criteria. (a) The board shall must develop and utilize 
186.10 	performance-based criteria for local water resources restoration, protection, and management 
186.11 	programs and projects. The criteria may include but are not limited to science-based 
186.12 	assessments, organizational capacity, priority resource issues, community outreach and 
186.13 	support, partnership potential, potential for multiple benefits, and program and project 
186.14 	delivery efficiency and effectiveness.
186.15 	(b) Notwithstanding paragraph (a), the board may develop and utilize eligibility criteria 
186.16 	for base amounts of state funding to local governments.

186.17 	Sec. 35. [103B.461] RED RIVER BASIN COMMISSION.
186.18 		Subdivision 1.Purposes. The Red River Basin Commission was created to:
186.19 	(1) facilitate transboundary and basin-wide dialogue and consultation with citizens, land 
186.20 	users, organizations, and governments; and
186.21 	(2) coordinate basin-wide interstate and international efforts on water management, 
186.22 	including but not limited to flood mitigation, water quality, water supply, drainage, aquatic 
186.23 	health, and recreation.
186.24 		Subd. 2.Membership. The Red River Basin Commission must have basin-wide 
186.25 	representation of members and alternates to serve on the commission consistent with the 
186.26 	adopted bylaws of the commission. Selection and terms of members are as defined in the 
186.27 	commission's bylaws.
186.28 		Subd. 3.Duties. The Red River Basin Commission must:
186.29 	(1) develop and coordinate comprehensive water management goals for the Red River 
186.30 	basin by aligning the work plans in the major watersheds in the states of Minnesota, North 
186.31 	Dakota, and South Dakota and the Canadian province of Manitoba;
187.1 	(2) advise on developing and using systems to monitor and evaluate the Red River basin 
187.2 	and incorporating the data obtained from these systems into planning and implementation 
187.3 	processes;
187.4 	(3) conduct public meetings at locations in the Red River basin regarding the public's 
187.5 	perspective on water resource issues, needs, and priorities in the basin;
187.6 	(4) conduct an ongoing information and education program on water management in 
187.7 	the Red River basin, including an annual conference;
187.8 	(5) advise on developing projects in the major watersheds that are scientifically sound, 
187.9 	have landowner and local government support, and reduce potential flood damages and 
187.10 	inputs of pollutants into the Red River;
187.11 	(6) develop and implement a framework plan for natural resources and provide periodic 
187.12 	budget requests and reports to the governors of Minnesota, North Dakota, and South Dakota, 
187.13 	to the premier of Manitoba, and to the respective legislatures, provincial members, and 
187.14 	congressional representatives of the respective states and province regarding progress on 
187.15 	meeting water management goals and funding or policy recommendations;
187.16 	(7) administer funds for implementing projects and track and report the results achieved 
187.17 	for each project; and
187.18 	(8) assess the collective work in the Red River basin and make recommendations to the 
187.19 	states of Minnesota, North Dakota, and South Dakota, to the Canadian province of Manitoba, 
187.20 	and to their respective legislatures, provincial members, and congressional representatives 
187.21 	on the actions needed to sustain or accelerate components of the framework plan for natural 
187.22 	resources in the Red River basin and the major watersheds of the Red River basin.

187.23 	Sec. 36. Minnesota Statutes 2016, section 103B.801, subdivision 2, is amended to read:
187.24 		Subd. 2.Program purposes. The purposes of the comprehensive watershed management 
187.25 	plan program under section 103B.101, subdivision 14, paragraph (a), are to:
187.26 	(1) align local water planning purposes and procedures under this chapter and chapters 
187.27 	103C and 103D on watershed boundaries to create a systematic, watershed-wide, 
187.28 	science-based approach to watershed management;
187.29 	(2) acknowledge and build off existing local government structure, water plan services, 
187.30 	and local capacity;
188.1 	(3) incorporate and make use of data and information, including watershed restoration 
188.2 	and protection strategies under section 114D.26, which may serve to fulfill all or some of 
188.3 	the requirements under chapter 114D;
188.4 	(4) solicit input and engage experts from agencies, citizens, and stakeholder groups;
188.5 	(5) focus on implementation of prioritized and targeted actions capable of achieving 
188.6 	measurable progress; and
188.7 	(6) serve as a substitute for a comprehensive plan, local water management plan, or 
188.8 	watershed management plan developed or amended, approved, and adopted, according to 
188.9 	this chapter or chapter 103C or 103D.

188.10 	Sec. 37. Minnesota Statutes 2016, section 103B.801, subdivision 5, is amended to read:
188.11 		Subd. 5.Timelines; administration. (a) The board shall develop and adopt, by June 
188.12 	30, 2016, a transition plan for development, approval, adoption, and coordination of plans 
188.13 	consistent with section 103A.212. The transition plan must include a goal of completing 
188.14 	statewide transition to comprehensive watershed management plans by 2025. The 
188.15 	metropolitan area may be considered for inclusion in the transition plan. The board may 
188.16 	amend the transition plan no more often than once every two years.
188.17 	(b) The board may use the authority under section 103B.3369, subdivision 9, to support 
188.18 	development or implementation of a comprehensive watershed management plan under this 
188.19 	section.

188.20 	Sec. 38. Minnesota Statutes 2016, section 103F.361, subdivision 2, is amended to read:
188.21 		Subd. 2.Legislative intent. It is the intent of sections 103F.361 to 103F.377 to authorize 
188.22 	and direct the board and the counties zoning authorities to implement the plan for the 
188.23 	Mississippi headwaters area.

188.24 	Sec. 39. Minnesota Statutes 2016, section 103F.363, subdivision 1, is amended to read:
188.25 		Subdivision 1.Generally. Sections 103F.361 to 103F.377 apply to the counties of 
188.26 	Clearwater, Hubbard, Beltrami, Cass, Itasca, Aitkin, Crow Wing, and Morrison and all other 
188.27 	zoning authorities.

189.1 	Sec. 40. Minnesota Statutes 2016, section 103F.365, is amended by adding a subdivision 
189.2 	to read:
189.3 		Subd. 5.Zoning authority. "Zoning authority" means counties, organized townships, 
189.4 	local and special governmental units, joint powers boards, councils, commissions, boards, 
189.5 	districts, and all state agencies and departments within the corridor defined by the plan, 
189.6 	excluding statutory or home rule charter cities.

189.7 	Sec. 41. Minnesota Statutes 2016, section 103F.371, is amended to read:
189.8 	103F.371 RESPONSIBILITIES OF OTHER GOVERNMENTAL UNITS.
189.9 	(a) All local and special governmental units, councils, commissions, boards and districts 
189.10 	and all state agencies and departments must exercise their powers so as to further the purposes 
189.11 	of sections 103F.361 to 103F.377 and the plan. Land owned by the state, its agencies, and 
189.12 	political subdivisions shall be administered in accordance with the plan. The certification 
189.13 	procedure under section 103F.373 applies to all zoning authorities in the corridor defined 
189.14 	by the plan.
189.15 	(b) Actions that comply with the land use ordinance are consistent with the plan. Actions 
189.16 	that do not comply with the ordinance may not be started until the board has been notified 
189.17 	and given an opportunity to review and comment on the consistency of the action with this 
189.18 	section.

189.19 	Sec. 42. Minnesota Statutes 2016, section 103F.373, subdivision 1, is amended to read:
189.20 		Subdivision 1.Purpose. To assure ensure that the plan is not nullified by unjustified 
189.21 	exceptions in particular cases and to promote uniformity in the treatment of applications 
189.22 	for exceptions, a review and certification procedure is established for the following categories 
189.23 	of land use actions taken by the counties and zoning authorities directly or indirectly affecting 
189.24 	land use within the area covered by the plan:
189.25 	(1) the adoption or amendment of an ordinance regulating the use of land, including 
189.26 	rezoning of particular tracts of land;
189.27 	(2) the granting of a variance from provisions of the land use ordinance; and
189.28 	(3) the approval of a plat which is inconsistent with the land use ordinance.

189.29 	Sec. 43. Minnesota Statutes 2016, section 103F.373, subdivision 3, is amended to read:
189.30 		Subd. 3.Procedure for certification. A copy of the notices of public hearings or, when 
189.31 	a hearing is not required, a copy of the application to consider an action of a type specified 
190.1 	in subdivision 1, clauses (1) to (3), must be forwarded to the board by the county zoning 
190.2 	authority at least 15 days before the hearing or meetings to consider the actions. The county
190.3 	zoning authority shall notify the board of its final decision on the proposed action within 
190.4 	ten days of the decision. By 30 days after the board receives the notice, the board shall 
190.5 	notify the county zoning authority and the applicant of its the board's approval or disapproval 
190.6 	of the proposed action.

190.7 	Sec. 44. Minnesota Statutes 2016, section 103F.373, subdivision 4, is amended to read:
190.8 		Subd. 4.Disapproval of actions. (a) If a notice of disapproval is issued by the board, 
190.9 	the county zoning authority or the applicant may, within 30 days of the notice, file with the 
190.10 	board a demand for a hearing. If a demand is not filed within the 30-day period, the 
190.11 	disapproval becomes final.
190.12 	(b) If a demand is filed within the 30-day period, a hearing must be held within 60 days 
190.13 	of demand. The hearing must be preceded by two weeks' published notice. Within 30 days 
190.14 	after the hearing, the board must:
190.15 	(1) affirm its disapproval of the proposed action; or
190.16 	(2) certify approval of the proposed action.

190.17 	Sec. 45. Minnesota Statutes 2017 Supplement, section 103G.2242, subdivision 1, is 
190.18 	amended to read:
190.19 		Subdivision 1.Rules. (a) The board, in consultation with the commissioner, shall adopt 
190.20 	rules governing the approval of wetland value replacement plans under this section and 
190.21 	public-waters-work permits affecting public waters wetlands under section 103G.245. These 
190.22 	rules must address the criteria, procedure, timing, and location of acceptable replacement 
190.23 	of wetland values and may address the state establishment and administration of a wetland 
190.24 	banking program for public and private projects, including provisions for an in-lieu fee 
190.25 	program; the administrative, monitoring, and enforcement procedures to be used; and a 
190.26 	procedure for the review and appeal of decisions under this section. In the case of peatlands, 
190.27 	the replacement plan rules must consider the impact on carbon. Any in-lieu fee program 
190.28 	established by the board must conform with Code of Federal Regulations, title 33, section 
190.29 	332.8, as amended.
190.30 	(b) After the adoption of the rules, a replacement plan must be approved by a resolution 
190.31 	of the governing body of the local government unit, consistent with the provisions of the 
191.1 	rules or a comprehensive wetland protection and management plan approved under section 
191.2 	103G.2243.
191.3 	(c) If the local government unit fails to apply the rules, or fails to implement a local 
191.4 	comprehensive wetland protection and management plan established under section 
191.5 	103G.2243, the government unit is subject to penalty as determined by the board.
191.6 	(d) When making a determination under rules adopted pursuant to this subdivision on 
191.7 	whether a rare natural community will be permanently adversely affected, consideration of 
191.8 	measures to mitigate any adverse effect on the community must be considered. Wetland 
191.9 	banking credits shall be an acceptable mitigation measure for any adverse effects on a rare 
191.10 	natural community. The Department of Natural Resources may approve a wetland 
191.11 	replacement plan that includes restoration or credits from rare natural communities of 
191.12 	substantially comparable character and public value as mitigation for any rare natural 
191.13 	community adversely affected by a project.

191.14 	Sec. 46. Minnesota Statutes 2016, section 103G.2242, subdivision 14, is amended to read:
191.15 		Subd. 14.Fees established. (a) Fees must be assessed for managing wetland bank 
191.16 	accounts and transactions as follows:
191.17 	(1) account maintenance annual fee: one percent of the value of credits not to exceed 
191.18 	$500;
191.19 	(2) account establishment, deposit, or transfer: 6.5 percent of the value of credits not to 
191.20 	exceed $1,000 per establishment, deposit, or transfer; and
191.21 	(3) withdrawal fee: 6.5 percent of the value of credits withdrawn.
191.22 	(b) The board may must establish fees at or based on costs to the agency below the 
191.23 	amounts in paragraph (a) for single-user or other dedicated wetland banking accounts.
191.24 	(c) Fees for single-user or other dedicated wetland banking accounts established pursuant 
191.25 	to section 103G.005, subdivision 10i, clause (4), are limited to establishment of a wetland 
191.26 	banking account and are assessed at the rate of 6.5 percent of the value of the credits not to 
191.27 	exceed $1,000.
191.28 	(d) The board may assess a fee to pay the costs associated with establishing conservation 
191.29 	easements, or other long-term protection mechanisms prescribed in the rules adopted under 
191.30 	subdivision 1, on property used for wetland replacement.

192.1 	Sec. 47. Minnesota Statutes 2016, section 114D.15, is amended by adding a subdivision 
192.2 	to read:
192.3 		Subd. 3a.Comprehensive local water management plan. "Comprehensive local water 
192.4 	management plan" has the meaning given under section 103B.3363, subdivision 3.

192.5 	Sec. 48. Minnesota Statutes 2016, section 114D.15, is amended by adding a subdivision 
192.6 	to read:
192.7 		Subd. 3b.Comprehensive watershed management plan. "Comprehensive watershed 
192.8 	management plan" has the meaning given under section 103B.3363, subdivision 3a.

192.9 	Sec. 49. Minnesota Statutes 2016, section 114D.15, subdivision 7, is amended to read:
192.10 		Subd. 7.Restoration. "Restoration" means actions, including effectiveness monitoring, 
192.11 	that are taken to pursue, achieve, and maintain water quality standards for impaired waters 
192.12 	in accordance with a TMDL that has been approved by the United States Environmental 
192.13 	Protection Agency under federal TMDL requirements.

192.14 	Sec. 50. Minnesota Statutes 2016, section 114D.15, subdivision 11, is amended to read:
192.15 		Subd. 11.TMDL implementation plan. "TMDL implementation plan" means:
192.16 	(1) a document detailing restoration activities needed to meet the approved TMDL's 
192.17 	pollutant load allocations for point and nonpoint sources.; or
192.18 	(2) one of the following that the commissioner of the Pollution Control Agency 
192.19 	determines to be, in whole or part, sufficient to meet applicable water quality standards:
192.20 	(i) a comprehensive watershed management plan;
192.21 	(ii) a comprehensive local water management plan; or
192.22 	(iii) an existing statewide or regional strategy published by the Pollution Control Agency.

192.23 	Sec. 51. Minnesota Statutes 2016, section 114D.15, subdivision 13, is amended to read:
192.24 		Subd. 13.Watershed restoration and protection strategy or WRAPS. "Watershed 
192.25 	restoration and protection strategy" or "WRAPS" means a document summarizing scientific 
192.26 	studies of a major watershed no larger than at approximately a hydrologic unit code 8 scale
192.27 	including the physical, chemical, and biological assessment of the water quality of the 
192.28 	watershed; identification of impairments and water bodies in need of protection; identification 
192.29 	of biotic stressors and sources of pollution, both point and nonpoint; TMDL's for the 
193.1 	impairments; and an implementation table containing information to support strategies and 
193.2 	actions designed to achieve and maintain water quality standards and goals.

193.3 	Sec. 52. Minnesota Statutes 2016, section 114D.20, subdivision 2, is amended to read:
193.4 		Subd. 2.Goals for implementation. The following goals must guide the implementation 
193.5 	of this chapter:
193.6 	(1) to identify impaired waters in accordance with federal TMDL requirements within 
193.7 	ten years after May 23, 2006, and thereafter to ensure continuing evaluation of surface 
193.8 	waters for impairments;
193.9 	(2) to submit TMDL's to the United States Environmental Protection Agency for all 
193.10 	impaired waters in a timely manner in accordance with federal TMDL requirements;
193.11 	(3) to set a reasonable time inform and support strategies for implementing restoration 
193.12 	of each identified impaired water and protection activities in a reasonable time period;
193.13 	(4) to systematically evaluate waters, to provide assistance and incentives to prevent 
193.14 	waters from becoming impaired, and to improve the quality of waters that are listed as 
193.15 	impaired but do not have an approved TMDL addressing the impairment;
193.16 	(5) to promptly seek the delisting of waters from the impaired waters list when those 
193.17 	waters are shown to achieve the designated uses applicable to the waters;
193.18 	(6) to achieve compliance with federal Clean Water Act requirements in Minnesota;
193.19 	(7) to support effective measures to prevent the degradation of groundwater according 
193.20 	to the groundwater degradation prevention goal under section 103H.001; and
193.21 	(8) to support effective measures to restore degraded groundwater.

193.22 	Sec. 53. Minnesota Statutes 2016, section 114D.20, subdivision 3, is amended to read:
193.23 		Subd. 3.Implementation policies. The following policies must guide the implementation 
193.24 	of this chapter:
193.25 	(1) develop regional and, multiple pollutant, or watershed TMDL's and TMDL 
193.26 	implementation plans, and TMDL's and TMDL implementation plans for multiple pollutants
193.27 	or WRAPSs, where reasonable and feasible;
193.28 	(2) maximize use of available organizational, technical, and financial resources to perform 
193.29 	sampling, monitoring, and other activities to identify degraded groundwater and impaired 
193.30 	waters, including use of citizen monitoring and citizen monitoring data used by the Pollution 
194.1 	Control Agency in assessing water quality that meets the requirements in Appendix D of 
194.2 	the Volunteer Surface Water Monitoring Guide, Minnesotaestablished by the commissioner 
194.3 	of the Pollution Control Agency (2003);
194.4 	(3) maximize opportunities for restoration of degraded groundwater and impaired waters, 
194.5 	by prioritizing and targeting of available programmatic, financial, and technical resources 
194.6 	and by providing additional state resources to complement and leverage available resources;
194.7 	(4) use existing regulatory authorities to achieve restoration for point and nonpoint 
194.8 	sources of pollution where applicable, and promote the development and use of effective 
194.9 	nonregulatory measures to address pollution sources for which regulations are not applicable;
194.10 	(5) use restoration methods that have a demonstrated effectiveness in reducing 
194.11 	impairments and provide the greatest long-term positive impact on water quality protection 
194.12 	and improvement and related conservation benefits while incorporating innovative approaches 
194.13 	on a case-by-case basis;
194.14 	(6) identify for the legislature any innovative approaches that may strengthen or 
194.15 	complement existing programs;
194.16 	(7) identify and encourage implementation of measures to prevent surface waters from 
194.17 	becoming impaired and to improve the quality of waters that are listed as impaired but have 
194.18 	no approved TMDL addressing the impairment using the best available data and technology, 
194.19 	and establish and report outcome-based performance measures that monitor the progress 
194.20 	and effectiveness of protection and restoration measures;
194.21 	(8) monitor and enforce cost-sharing contracts and impose monetary damages in an 
194.22 	amount up to 150 percent of the financial assistance received for failure to comply; and
194.23 	(9) identify and encourage implementation of measures to prevent groundwater from 
194.24 	becoming degraded and measures that restore groundwater resources.

194.25 	Sec. 54. Minnesota Statutes 2016, section 114D.20, subdivision 5, is amended to read:
194.26 		Subd. 5.Priorities for preparing WRAPSs AND TMDL's. In consultation with the 
194.27 	Clean Water Council shall recommend, the commissioner of the Pollution Control Agency 
194.28 	must coordinate with the commissioners of natural resources, health, and agriculture, the 
194.29 	Board of Water and Soil Resources, and, when applicable, the Minnesota Forest Resources 
194.30 	Council to establish priorities for scheduling and preparing WRAPSs and TMDL's and 
194.31 	TMDL implementation plans, taking into account, considering the severity and causes of 
194.32 	the impairment impairments, the designated uses of those the waters, and other applicable 
194.33 	federal TMDL requirements. In recommending priorities, the council shall also give 
195.1 	Consideration to, groundwater and high-quality waters and watersheds watershed protection, 
195.2 	waters and watersheds with declining water quality trends, waters used as drinking water 
195.3 	sources, and waters and watersheds:
195.4 	(1) with impairments that pose the greatest potential risk to human health;
195.5 	(2) with impairments that pose the greatest potential risk to threatened or endangered 
195.6 	species;
195.7 	(3) with impairments that pose the greatest potential risk to aquatic health;
195.8 	(4) where other public agencies and participating organizations and individuals, especially 
195.9 	local, basinwide basin-wide, watershed, or regional agencies or organizations, have 
195.10 	demonstrated readiness to assist in carrying out the responsibilities, including availability 
195.11 	and organization of human, technical, and financial resources necessary to undertake the 
195.12 	work; and
195.13 	(5) where there is demonstrated coordination and cooperation among cities, counties, 
195.14 	watershed districts, and soil and water conservation districts in planning and implementation 
195.15 	of activities that will assist in carrying out the responsibilities.

195.16 	Sec. 55. Minnesota Statutes 2016, section 114D.20, subdivision 7, is amended to read:
195.17 		Subd. 7.Priorities for funding prevention actions. The Clean Water Council shall 
195.18 	apply the priorities applicable under subdivision 6, as far as practicable, when recommending 
195.19 	priorities for funding actions to prevent groundwater and surface waters from becoming 
195.20 	degraded or impaired and to improve the quality of surface waters that are listed as impaired 
195.21 	but do not have an approved TMDL.

195.22 	Sec. 56. Minnesota Statutes 2016, section 114D.20, is amended by adding a subdivision 
195.23 	to read:
195.24 		Subd. 8.Alternatives; TMDL, TMDL implementation plan, or WRAPS. (a) If the 
195.25 	commissioner of the Pollution Control Agency determines that a comprehensive watershed 
195.26 	management plan or comprehensive local water management plan contains information that 
195.27 	is sufficient and consistent with guidance from the United States Environmental Protection 
195.28 	Agency, including the recommended structure for category 4b demonstrations or its 
195.29 	replacement under section 303(d) of the federal Clean Water Act, the commissioner may 
195.30 	submit the plan to the Environmental Protection Agency according to federal TMDL 
195.31 	requirements as an alternative to developing a TMDL.
196.1 	(b) A TMDL implementation plan or a WRAPS, or portions thereof, are not needed for 
196.2 	waters or watersheds when the commissioner of the Pollution Control Agency determines 
196.3 	that a comprehensive watershed management plan, a comprehensive local water management 
196.4 	plan, or a statewide or regional strategy published by the Pollution Control Agency meets 
196.5 	the definition in section 114D.15, subdivision 11 or 13.
196.6 	(c) The commissioner of the Pollution Control Agency may request that the Board of 
196.7 	Water and Soil Resources conduct an evaluation of the implementation efforts under a 
196.8 	comprehensive watershed management plan or comprehensive local water management 
196.9 	plan when the commissioner makes a determination under paragraph (b). The board must 
196.10 	conduct the evaluation in accordance with section 103B.102.
196.11 	(d) The commissioner of the Pollution Control Agency may amend or revoke a 
196.12 	determination made under paragraph (a) or (b) after considering the evaluation conducted 
196.13 	under paragraph (c).

196.14 	Sec. 57. Minnesota Statutes 2016, section 114D.20, is amended by adding a subdivision 
196.15 	to read:
196.16 		Subd. 9.Coordinating municipal and local water quality activities. A project, practice, 
196.17 	or program for water quality improvement or protection that is conducted by a watershed 
196.18 	management organization or a local government unit with a comprehensive watershed 
196.19 	management plan or other water management plan approved according to chapter 103B, 
196.20 	103C, or 103D may be considered as contributing to the requirements of a storm water 
196.21 	pollution prevention plan (SWPPP) for a municipal separate storm sewer systems (MS4) 
196.22 	permit unless the project, practice, or program was previously documented as contributing 
196.23 	to a different SWPPP for an MS4 permit.

196.24 	Sec. 58. Minnesota Statutes 2016, section 114D.26, is amended to read:
196.25 	114D.26 WATERSHED RESTORATION AND PROTECTION STRATEGIES.
196.26 		Subdivision 1.Contents. (a) The commissioner of the Pollution Control Agency shall
196.27 	must develop watershed restoration and protection strategies. To ensure effectiveness and 
196.28 	accountability in meeting the goals of this chapter,for:
196.29 	(1) quantifying impairments and risks to water quality;
196.30 	(2) describing the causes of impairments and pollution sources;
196.31 	(3) consolidating TMDLs in a major watershed; and
197.1 	(4) informing comprehensive local water management plans and comprehensive 
197.2 	watershed management plans.
197.3 	(b) Each WRAPS shall must:
197.4 	(1) identify impaired waters and waters in need of protection;
197.5 	(2) identify biotic stressors causing impairments or threats to water quality;
197.6 	(3) summarize watershed modeling outputs and resulting pollution load allocations, and
197.7 	wasteload allocations, and priority areas for targeting actions to improve water quality and 
197.8 	identify areas with high pollutant-loading rates;
197.9 	(4) identify point sources of pollution for which a national pollutant discharge elimination 
197.10 	system permit is required under section 115.03;
197.11 	(5) identify nonpoint sources of pollution for which a national pollutant discharge 
197.12 	elimination system permit is not required under section 115.03, with sufficient specificity 
197.13 	to prioritize and geographically locate inform watershed restoration and protection actions
197.14 	strategies;
197.15 	(6) describe the current pollution loading and load reduction needed for each source or 
197.16 	source category to meet water quality standards and goals, including wasteload and load 
197.17 	allocations from TMDL's;
197.18 	(7) contain a plan for ongoing identify water quality monitoring needed to fill data gaps, 
197.19 	determine changing conditions, and or gauge implementation effectiveness; and
197.20 	(8) contain an implementation table of strategies and actions that are capable of 
197.21 	cumulatively achieving needed pollution load reductions for point and nonpoint sources, 
197.22 	including identifying:
197.23 	(i) water quality parameters of concern;
197.24 	(ii) current water quality conditions;
197.25 	(iii) water quality goals, strategies, and targets by parameter of concern; and
197.26 	(iv) strategies and actions by parameter of concern and an example of the scale of 
197.27 	adoptions needed for each with a timeline to meet the water quality restoration or protection 
197.28 	goals of this chapter;
197.29 	(v) a timeline for achievement of water quality targets;
197.30 	(vi) the governmental units with primary responsibility for implementing each watershed 
197.31 	restoration or protection strategy; and
198.1 	(vii) a timeline and interim milestones for achievement of watershed restoration or 
198.2 	protection implementation actions within ten years of strategy adoption.
198.3 		Subd. 1a.Coordination.  To ensure effectiveness, efficiency, and accountability in 
198.4 	meeting the goals of this chapter, the commissioner of the Pollution Control Agency and 
198.5 	the Board of Water and Soil Resources must coordinate the schedule, budget, scope, and 
198.6 	use of a WRAPS and related documents and processes in consultation with local government 
198.7 	units and, when applicable, the Minnesota Forest Resources Council, in consideration of 
198.8 	section 114D.20, subdivision 8.
198.9 		Subd. 2.Reporting. Beginning July 1, 2016, and every other year thereafter, the 
198.10 	commissioner of the Pollution Control Agency must report on its the agency's Web site the 
198.11 	progress toward implementation milestones and water quality goals for all adopted TMDL's 
198.12 	and, where available, WRAPS's.
198.13 		Subd. 3.Timelines; administration. Each year, (a) The commissioner of the Pollution 
198.14 	Control Agency must complete WRAPS's for at least ten percent of watershed restoration 
198.15 	and protection strategies for the state's major watersheds. WRAPS shall be by June 30, 
198.16 	2023, unless the commissioner determines that a comprehensive watershed management 
198.17 	plan or comprehensive local water management plan, in whole or part, meets the definition 
198.18 	in section 114D.15, subdivision 11 or 13. As needed, the commissioner must update the 
198.19 	strategies, in whole or part, after consultation with the Board of Water and Soil Resources 
198.20 	and local government units.
198.21 	(b) Watershed restoration and protection strategies are governed by the procedures for 
198.22 	approval and notice in section 114D.25, subdivisions 2 and 4, except that WRAPS the 
198.23 	strategies need not be submitted to the United States Environmental Protection Agency.

198.24 	Sec. 59. Minnesota Statutes 2016, section 114D.35, subdivision 1, is amended to read:
198.25 		Subdivision 1.Public and stakeholder participation. (a) Public agencies and private 
198.26 	entities involved in the implementation of implementing this chapter shall must encourage 
198.27 	participation by the public and stakeholders, including local citizens, landowners and, land
198.28 	managers, and public and private organizations, in identifying impaired waters, in developing 
198.29 	TMDL's, in planning, priority setting, and implementing restoration of impaired waters, in 
198.30 	identifying degraded groundwater, and in protecting and restoring groundwater resources.
198.31 	(b) In particular, the commissioner of the Pollution Control Agency shall must make 
198.32 	reasonable efforts to provide timely information to the public and to stakeholders about 
198.33 	impaired waters that have been identified by the agency. The agency shall seek broad and 
199.1 	early public and stakeholder participation in scoping the activities necessary to develop a 
199.2 	TMDL, including the scientific models, methods, and approaches to be used in TMDL 
199.3 	development, and to implement restoration pursuant to section 114D.15, subdivision 7. and 
199.4 	to inform and consult with the public and stakeholders in developing a WRAPS or TMDL.
199.5 	(c) Public agencies and private entities involved in implementing restoration and 
199.6 	protection identified in a comprehensive watershed management plan or comprehensive 
199.7 	local water management plan must make efforts to inform, consult, and involve the public 
199.8 	and stakeholders.
199.9 	(d) The commissioner of the Pollution Control Agency and the Board of Water and Soil 
199.10 	Resources must coordinate public and stakeholder participation in consultation with local 
199.11 	government units. To the extent practicable, implementation of this chapter must be 
199.12 	accomplished in cooperation with local, state, federal, and tribal governments and private 
199.13 	sector organizations.

199.14 	Sec. 60. Minnesota Statutes 2016, section 114D.35, subdivision 3, is amended to read:
199.15 		Subd. 3.Education. The Clean Water Council shall develop strategies for informing, 
199.16 	educating, and encouraging the participation of citizens, stakeholders, and others regarding 
199.17 	the identification of impaired waters, development of TMDL's, development of TMDL 
199.18 	implementation plans, implementation of restoration for impaired waters, identification of 
199.19 	degraded groundwater, and protection and restoration of groundwater resources this chapter. 
199.20 	Public agencies shall be are responsible for implementing the strategies.

199.21 	Sec. 61. Minnesota Statutes 2016, section 115.03, subdivision 5, is amended to read:
199.22 		Subd. 5.Agency authority; national pollutant discharge elimination system. (a) 
199.23 	Notwithstanding any other provisions prescribed in or pursuant to this chapter and, with 
199.24 	respect to the pollution of waters of the state, in chapter 116, or otherwise, the agency shall 
199.25 	have the authority to perform any and all acts minimally necessary including, but not limited 
199.26 	to, the establishment and application of standards, procedures, rules, orders, variances, 
199.27 	stipulation agreements, schedules of compliance, and permit conditions, consistent with 
199.28 	and, therefore not less stringent than the provisions of the Federal Water Pollution Control 
199.29 	Act, as amended, applicable to the participation by the state of Minnesota in the national 
199.30 	pollutant discharge elimination system (NPDES); provided that this provision shall not be 
199.31 	construed as a limitation on any powers or duties otherwise residing with the agency pursuant 
199.32 	to any provision of law.
200.1 	(b) An activity that conveys or connects waters of the state without subjecting the 
200.2 	transferred water to intervening industrial, municipal, or commercial use does not require 
200.3 	a national pollutant discharge elimination system permit. This exemption does not apply to 
200.4 	pollutants introduced by the activity itself to the water being transferred.

200.5 	Sec. 62. Minnesota Statutes 2016, section 115.03, is amended by adding a subdivision to 
200.6 	read:
200.7 		Subd. 5d.Sugar beet storage. The commissioner must not require a beet sugar company 
200.8 	that has a current national pollutant discharge elimination permit or state disposal system 
200.9 	permit to install engineered liners for remote sugar beet storage site stormwater runoff ponds 
200.10 	unless a risk assessment confirms there is significant impact on groundwater and that an 
200.11 	engineered liner is necessary to prevent, control, or abate water pollution. For purposes of 
200.12 	this subdivision, "sugar beet storage site" means an area where sugar beets are temporarily 
200.13 	stored prior to delivery to a sugar beet processing facility that is not located on land adjacent 
200.14 	to the processing facility.

200.15 	Sec. 63. Minnesota Statutes 2016, section 115.035, is amended to read:
200.16 	115.035 EXTERNAL PEER REVIEW OF WATER QUALITY STANDARDS.
200.17 	(a) When the commissioner convenes an external peer review panel during the 
200.18 	promulgation or amendment of water quality standards, the commissioner must provide 
200.19 	notice and take public comment on the charge questions for the external peer review panel 
200.20 	and must allow written and oral public comment as part of the external peer review panel 
200.21 	process. Every new or revised numeric water quality standard must be supported by a 
200.22 	technical support document that provides the scientific basis for the proposed standard and 
200.23 	that has undergone external, scientific peer review. Numeric water quality standards in 
200.24 	which the agency is adopting, without change, a United States Environmental Protection 
200.25 	Agency criterion that has been through peer review are not subject to this paragraph.
200.26 	Documentation of the external peer review panel, including the name or names of the peer 
200.27 	reviewer or reviewers, must be included in the statement of need and reasonableness for 
200.28 	the water quality standard. If the commissioner does not convene an external peer review 
200.29 	panel during the promulgation or amendment of water quality standards, the commissioner 
200.30 	must state the reason an external peer review panel will not be convened in the statement 
200.31 	of need and reasonableness.
201.1 	(b) Every technical support document developed by the agency must be released in draft 
201.2 	form for public comment before peer review and before finalizing the technical support 
201.3 	document.
201.4 	(c) The commissioner must provide public notice and information about the external 
201.5 	peer review through the request for comments published at the beginning of the rulemaking 
201.6 	process for the numeric water quality standard, and:
201.7 	(1) the request for comments must identify the draft technical support document and 
201.8 	where the document can be found;
201.9 	(2) the request for comments must include a proposed charge for the external peer review 
201.10 	and request comments on the charge;
201.11 	(3) all comments received during the public comment period must be made available to 
201.12 	the external peer reviewers; and
201.13 	(4) if the agency is not soliciting external peer review because the agency is adopting a 
201.14 	United States Environmental Protection Agency criterion without change, that must be 
201.15 	noted in the request for comments.
201.16 	(d) The purpose of the external peer review is to evaluate whether the technical support 
201.17 	document and proposed standard are based on sound scientific knowledge, methods, and 
201.18 	practices. The external peer review must be conducted according to the guidance in the 
201.19 	most recent edition of the United States Environmental Protection Agency's Peer Review 
201.20 	Handbook. Peer reviewers must not have participated in developing the scientific basis of 
201.21 	the standard. Peer reviewers must disclose any activities or circumstances that could pose 
201.22 	a conflict of interest or create an appearance of a loss of impartiality that could interfere 
201.23 	with an objective review.
201.24 	(e) The type of review and the number of peer reviewers depends on the nature of the 
201.25 	science underlying the standard. When the agency is developing significant new science or 
201.26 	science that expands significantly beyond current documented scientific practices or 
201.27 	principles, a panel review must be used.
201.28 	(f) In response to the findings of the external peer review, the draft technical support 
201.29 	document must be revised as appropriate. The findings of the external peer review must be 
201.30 	documented and attached to the final technical support document, which must be an exhibit 
201.31 	as part of the statement of need and reasonableness in the rulemaking to adopt the new or 
201.32 	revised numeric water quality standard. The final technical support document must note 
201.33 	changes made in response to the external peer review.
202.1 	(b) (g) By December 15 each year, the commissioner shall post on the agency's Web 
202.2 	site a report identifying the water quality standards development work in progress or 
202.3 	completed in the past year, the lead agency scientist for each development effort, and 
202.4 	opportunities for public input.

202.5 	Sec. 64. [115.455] EFFLUENT LIMITATIONS; COMPLIANCE.
202.6 	To the extent allowable under federal law, for a municipality that constructs a publicly 
202.7 	owned treatment works facility or for an industrial national pollutant discharge elimination 
202.8 	system and state disposal system permit holder that constructs a treatment works facility to 
202.9 	comply with a new or modified effluent limitation, compliance with any new or modified 
202.10 	effluent limitation adopted after construction begins that would require additional capital 
202.11 	investment is required no sooner than 16 years after the date the facility begins operating.

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

202.13 	Sec. 65. Minnesota Statutes 2016, section 115A.51, is amended to read:
202.14 	115A.51 APPLICATION REQUIREMENTS.
202.15 	(a) Applications for assistance under the program shall must demonstrate:
202.16 	(a) (1) that the project is conceptually and technically feasible;
202.17 	(b) (2) that affected political subdivisions are committed to implement the project, to 
202.18 	provide necessary local financing, and to accept and exercise the government powers 
202.19 	necessary to the project;
202.20 	(c) (3) that operating revenues from the project, considering the availability and security 
202.21 	of sources of solid waste and of markets for recovered resources, together with any proposed 
202.22 	federal, state, or local financial assistance, will be sufficient to pay all costs over the projected 
202.23 	life of the project;
202.24 	(d) (4) that the applicant has evaluated the feasible and prudent alternatives to disposal, 
202.25 	including the use of existing solid waste management facilities with reasonably available 
202.26 	capacity sufficient to accomplish the goals of the proposed project and has compared and 
202.27 	evaluated the costs of the alternatives, including capital and operating costs, and the effects 
202.28 	of the alternatives on the cost to generators.;
202.29 	(5) that the applicant has identified: (i) waste management objectives in applicable county 
202.30 	and regional solid waste management plans consistent with sections 115A.46, subdivision 
203.1 	2, paragraphs (e) and (f), or 473.149, subdivision 1; and (ii) other solid waste facilities 
203.2 	identified in the county and regional plans; and
203.3 	(6) that the applicant has conducted a comparative analysis of the project against existing 
203.4 	public and private solid waste facilities, including an analysis of potential displacement of 
203.5 	those facilities to determine whether the project is the most appropriate alternative to achieve 
203.6 	the identified waste management objectives that considers:
203.7 	(i) conformity with approved county or regional solid waste management plans;
203.8 	(ii) consistency with the state's solid waste hierarchy and section 115A.46, subdivision 
203.9 	2, paragraphs (e) and (f), or 473.149, subdivision 1; and
203.10 	(iii) environmental standards related to public health, air, surface water, and groundwater.
203.11 	(b) The commissioner may require completion of a comprehensive solid waste 
203.12 	management plan conforming to the requirements of section 115A.46, before accepting an 
203.13 	application. Within five days of filing an application with the agency, the applicant must 
203.14 	submit a copy of the application to each solid waste management facility mentioned in the 
203.15 	portion of the application addressing the requirements of paragraph (a), clauses (5) and (6).

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

203.17 	Sec. 66. Minnesota Statutes 2016, section 115A.94, subdivision 2, is amended to read:
203.18 		Subd. 2.Local authority. A city or town may organize collection, after public notification 
203.19 	and hearing as required in subdivisions 4a to 4d 4f. A county may organize collection as 
203.20 	provided in subdivision 5. A city or town that has organized collection as of May 1, 2013, 
203.21 	is exempt from subdivisions 4a to 4d 4f.

203.22 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
203.23 	collection noticed under section 115A.94, subdivision 2, on or after that date.

203.24 	Sec. 67. Minnesota Statutes 2016, section 115A.94, subdivision 4a, is amended to read:
203.25 		Subd. 4a.Committee establishment. (a) Before implementing an ordinance, franchise, 
203.26 	license, contract, or other means of organizing collection, a city or town, by resolution of 
203.27 	the governing body, must establish an organizeda solid waste collection options committee 
203.28 	to identify, examine, and evaluate various methods of organized solid waste collection. The 
203.29 	governing body shall appoint the committee members.
203.30 	(b) The organized solid waste collection options committee is subject to chapter 13D.

204.1 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
204.2 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
204.3 	that date.

204.4 	Sec. 68. Minnesota Statutes 2016, section 115A.94, subdivision 4b, is amended to read:
204.5 		Subd. 4b.Committee duties. The committee established under subdivision 4a shall:
204.6 	(1) determine which methods of organized solid waste collection to examine, which 
204.7 	must include:
204.8 	(i) the existing system of collection;
204.9 	(i) (ii) a system in which a single collector collects solid waste from all sections of a 
204.10 	city or town; and
204.11 	(ii) (iii) a system in which multiple collectors, either singly or as members of an 
204.12 	organization of collectors, collect solid waste from different sections of a city or town;
204.13 	(2) establish a list of criteria on which the organized solid waste collection methods 
204.14 	selected for examination will be evaluated, which may include: costs to residential 
204.15 	subscribers, impacts on residential subscribers' ability to choose a provider of solid waste 
204.16 	service based on the desired level of service, costs and other factors, the impact of miles 
204.17 	driven by collection vehicles on city streets and alleys and the incremental impact of miles 
204.18 	driven by collection vehicles, initial and operating costs to the city of implementing the 
204.19 	organized solid waste collection system, providing incentives for waste reduction, impacts 
204.20 	on solid waste collectors, and other physical, economic, fiscal, social, environmental, and 
204.21 	aesthetic impacts;
204.22 	(3) collect information regarding the operation and efficacy of existing methods of 
204.23 	organized solid waste collection in other cities and towns;
204.24 	(4) seek input from, at a minimum:
204.25 	(i) the governing body of the city or town;
204.26 	(ii) the local official of the city or town responsible for solid waste issues;
204.27 	(iii) persons currently licensed to operate solid waste collection and recycling services 
204.28 	in the city or town; and
204.29 	(iv) residents of the city or town who currently pay for residential solid waste collection 
204.30 	services; and
205.1 	(5) issue a report on the committee's research, findings, and any recommendations to 
205.2 	the governing body of the city or town.

205.3 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
205.4 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
205.5 	that date.

205.6 	Sec. 69. Minnesota Statutes 2016, section 115A.94, subdivision 4c, is amended to read:
205.7 		Subd. 4c.Governing body; implementation. The governing body of the city or town 
205.8 	shall consider the report and recommendations of the organized solid waste collection 
205.9 	options committee. The governing body must provide public notice and hold at least one 
205.10 	public hearing before deciding whether to implement organized collection. Organized 
205.11 	collection may begin no sooner than six months after the effective date of the decision of 
205.12 	the governing body of the city or town to implement organized collection.

205.13 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
205.14 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
205.15 	that date.

205.16 	Sec. 70. Minnesota Statutes 2016, section 115A.94, subdivision 4d, is amended to read:
205.17 		Subd. 4d.Participating collectors proposal requirement. Prior to Before establishing 
205.18 	a committee under subdivision 4a to consider organizing residential solid waste collection, 
205.19 	a city or town with more than one licensed collector must notify the public and all licensed 
205.20 	collectors in the community. The city or town must provide a 60-day period of at least 60 
205.21 	days in which meetings and negotiations shall occur exclusively between licensed collectors 
205.22 	and the city or town to develop a proposal in which interested licensed collectors, as members 
205.23 	of an organization of collectors, collect solid waste from designated sections of the city or 
205.24 	town. The proposal shall include identified city or town priorities, including issues related 
205.25 	to zone creation, traffic, safety, environmental performance, service provided, and price, 
205.26 	and shall reflect existing haulers maintaining their respective market share of business as 
205.27 	determined by each hauler's average customer count during the six months prior to the 
205.28 	commencement of the 60-day exclusive negotiation period. If an existing hauler opts to be 
205.29 	excluded from the proposal, the city may allocate their customers proportionally based on 
205.30 	market share to the participating collectors who choose to negotiate. The initial organized 
205.31 	collection agreement executed under this subdivision must be for a period of three to seven 
205.32 	years. Upon execution of an agreement between the participating licensed collectors and 
205.33 	city or town, the city or town shall establish organized collection through appropriate local 
206.1 	controls and is not required to fulfill the requirements of subdivisions 4a, 4b, and 4c, except 
206.2 	that the governing body must provide the public notification and hearing required under 
206.3 	subdivision 4c.

206.4 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
206.5 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
206.6 	that date.

206.7 	Sec. 71. Minnesota Statutes 2016, section 115A.94, is amended by adding a subdivision 
206.8 	to read:
206.9 		Subd. 4e.Parties to meet and confer. Before the exclusive meetings and negotiations 
206.10 	under subdivision 4d, participating licensed collectors and elected officials of the city or 
206.11 	town must meet and confer regarding waste collection issues, including but not limited to 
206.12 	road deterioration, public safety, pricing mechanisms, and contractual considerations unique 
206.13 	to organized collection.

206.14 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
206.15 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
206.16 	that date.

206.17 	Sec. 72. Minnesota Statutes 2016, section 115A.94, is amended by adding a subdivision 
206.18 	to read:
206.19 		Subd. 4f.Joint liability limited. Notwithstanding section 604.02, an organized collection 
206.20 	agreement must not obligate a participating licensed collector for damages to third parties 
206.21 	solely caused by another participating licensed collector. The organized collection agreement 
206.22 	may include joint obligations for actions that are undertaken by all the participating licensed 
206.23 	collectors under this section.

206.24 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
206.25 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
206.26 	that date.

206.27 	Sec. 73. Minnesota Statutes 2016, section 115A.94, subdivision 5, is amended to read:
206.28 		Subd. 5.County organized collection. (a) A county may by ordinance require cities 
206.29 	and towns within the county to organize collection. Organized collection ordinances of 
206.30 	counties may:
207.1 	(1) require cities and towns to require the separation and separate collection of recyclable 
207.2 	materials;
207.3 	(2) specify the material to be separated; and
207.4 	(3) require cities and towns to meet any performance standards for source separation 
207.5 	that are contained in the county solid waste plan.
207.6 	(b) A county may itself organize collection under subdivisions 4a to 4d 4f in any city 
207.7 	or town that does not comply with a county organized collection ordinance adopted under 
207.8 	this subdivision, and the county may implement, as part of its organized collection, the 
207.9 	source separation program and performance standards required by its organized collection 
207.10 	ordinance.

207.11 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to organized 
207.12 	collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after 
207.13 	that date.

207.14 	Sec. 74. [115B.172] NATURAL RESOURCES DAMAGES ACCOUNT.
207.15 		Subdivision 1.Establishment. The natural resources damages account is established as 
207.16 	an account in the remediation fund.
207.17 		Subd. 2.Revenues. The account consists of money from the following sources:
207.18 	(1) revenues from actions taken by the attorney general on behalf of the commissioner 
207.19 	of the Pollution Control Agency and commissioner of natural resources under section 
207.20 	115B.17, subdivisions 6 and 7, unless otherwise specified by the attorney general or 
207.21 	settlement agreement;
207.22 	(2) appropriations and transfers to the account as provided by law;
207.23 	(3) interest earned on the account; and
207.24 	(4) money received by the commissioner of the Pollution Control Agency or the 
207.25 	commissioner of natural resources for deposit in the account in the form of a gift or a grant.
207.26 		Subd. 3.Expenditures. (a) Money in the account is appropriated to the commissioner 
207.27 	of natural resources for the purposes authorized in section 115B.20, subdivision 2, clause 
207.28 	(4).
207.29 	(b) The commissioner of management and budget must allocate the amounts available 
207.30 	in any biennium to the commissioner of natural resources for the purposes of this section 
207.31 	based upon work plans submitted by the commissioner of natural resources and may adjust 
208.1 	those allocations upon submittal of revised work plans. Copies of the work plans must be 
208.2 	submitted to the chairs of the house of representatives and senate committees and divisions 
208.3 	having jurisdiction over environment and natural resources finance.
208.4 		Subd. 4.Report. By November 1 each year, the commissioner of natural resources must 
208.5 	submit a report to the chairs and ranking minority members of the house of representatives 
208.6 	and senate committees and divisions with jurisdiction over environment and natural resources 
208.7 	policy and finance on expenditures from the natural resources damages account during the 
208.8 	previous fiscal year.

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

208.10 	Sec. 75. [115B.52] WATER QUALITY AND SUSTAINABILITY ACCOUNT.
208.11 		Subdivision 1.Definitions. (a) For purposes of this section and section 115B.53, the 
208.12 	following terms have the meanings given.
208.13 	(b) "East metropolitan area" includes but is not limited to the cities of Woodbury, 
208.14 	Oakdale, Lake Elmo, Cottage Grove, St. Paul Park, Afton, and Newport and the townships 
208.15 	of West Lakeland and Grey Cloud Island.
208.16 	(c) "Settlement" means the agreement and order entered on February 20, 2018, settling 
208.17 	litigation commenced by the state against the 3M Company under section 115B.17, 
208.18 	subdivision 7.
208.19 		Subd. 2.Establishment. The water quality and sustainability account is established as 
208.20 	an account in the remediation fund. The account consists of revenue deposited in the account 
208.21 	under the terms of the settlement and earnings on the investment of money in the account. 
208.22 	Money in the account may be invested through the State Board of Investment.
208.23 		Subd. 3.Expenditures. Money in the account is appropriated to the commissioner of 
208.24 	the Pollution Control Agency and to the commissioner of natural resources for the purposes 
208.25 	authorized under the settlement.
208.26 		Subd. 4.Reporting. The commissioner of the Pollution Control Agency and the 
208.27 	commissioner of natural resources must jointly submit:
208.28 	(1) by April 1, 2019, an implementation plan detailing how the commissioners will:
208.29 	(i) determine how the priorities in the settlement will be met and how the spending will 
208.30 	move from the first priority to the second priority and the second priority to the third priority 
208.31 	outlined in the settlement; and
208.32 	(ii) evaluate and determine what projects receive funding;
209.1 	(2) by February 1 and August 1 each year, a biannual report to the chairs and ranking 
209.2 	minority members of the legislative policy and finance committees with jurisdiction over 
209.3 	environment and natural resources on expenditures from the water quality and sustainability 
209.4 	account during the previous six months; and
209.5 	(3) by August 1, 2019, and each year thereafter, a report to the legislature on expenditures 
209.6 	from the water quality and sustainability account during the previous fiscal year and a 
209.7 	spending plan for anticipated expenditures from the account during the current fiscal year.
209.8 		Subd. 5.Local approval. The commissioner of the Pollution Control Agency or 
209.9 	commissioner of natural resources must receive approval from the local unit of government 
209.10 	before assuming control or otherwise operating an existing municipal water supply operation 
209.11 	in the east metropolitan area.

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

209.13 	Sec. 76. [115B.53] WATER QUALITY AND SUSTAINABILITY STAKEHOLDERS.
209.14 	The commissioner of the Pollution Control Agency and the commissioner of natural 
209.15 	resources must work with stakeholders to identify and recommend projects to receive funding 
209.16 	from the water quality and sustainability account under the settlement. Stakeholders include, 
209.17 	at a minimum, representatives of the agency, the Department of Natural Resources, east 
209.18 	metropolitan area municipalities, and the 3M Company. The commissioners must establish 
209.19 	a process to solicit and evaluate the recommendations from municipalities in the east 
209.20 	metropolitan area as defined in section 115B.52.

209.21 	Sec. 77. Minnesota Statutes 2017 Supplement, section 116.0714, is amended to read:
209.22 	116.0714 NEW OPEN-AIR SWINE BASINS.
209.23 	(a) The commissioner of the Pollution Control Agency or a county board shall not 
209.24 	approve any permits for the construction of new open-air swine basins, except that existing 
209.25 	facilities may use one basin of less than 1,000,000 gallons as part of a permitted waste 
209.26 	treatment program for resolving pollution problems or to allow conversion of an existing 
209.27 	basin of less than 1,000,000 gallons to a different animal type, provided all standards are 
209.28 	met. This section expires June 30, 2022.
209.29 	(b) This section does not apply to basins used solely for wastewater from truck-washing 
209.30 	facilities.

210.1 	Sec. 78. Minnesota Statutes 2016, section 116.155, subdivision 1, is amended to read:
210.2 		Subdivision 1.Creation. The remediation fund is created as a special revenue fund in 
210.3 	the state treasury to provide a reliable source of public money for response and corrective 
210.4 	actions to address releases of hazardous substances, pollutants or contaminants, agricultural 
210.5 	chemicals, and petroleum, and for environmental response actions at qualified landfill 
210.6 	facilities for which the agency has assumed such responsibility, including perpetual care of 
210.7 	such facilities. The specific purposes for which the general portion of the fund may be spent 
210.8 	are provided in subdivision 2. In addition to the general portion of the fund, the fund contains 
210.9 	two four accounts described in subdivisions 4 and 5 to 5b.

210.10 	Sec. 79. Minnesota Statutes 2016, section 116.155, is amended by adding a subdivision 
210.11 	to read:
210.12 		Subd. 5a.Water quality and sustainability account. The water quality and sustainability 
210.13 	account is as described in section 115B.52.

210.14 	Sec. 80. Minnesota Statutes 2016, section 116.155, is amended by adding a subdivision 
210.15 	to read:
210.16 		Subd. 5b.Natural resources damages account. The natural resources damages account 
210.17 	is as described in section 115B.172.

210.18 	Sec. 81. Minnesota Statutes 2016, section 116.993, subdivision 2, is amended to read:
210.19 		Subd. 2.Eligible borrower. To be eligible for a loan under this section, a borrower 
210.20 	must:
210.21 	(1) be a small business corporation, sole proprietorship, partnership, or association;
210.22 	(2) be a potential emitter of pollutants to the air, ground, or water;
210.23 	(3) need capital for equipment purchases that will meet or exceed environmental 
210.24 	regulations or need capital for site investigation and cleanup;
210.25 	(4) have less fewer than 50 100 full-time equivalent employees; and
210.26 	(5) have an after tax after-tax profit of less than $500,000; and.
210.27 	(6) have a net worth of less than $1,000,000.

210.28 	Sec. 82. Minnesota Statutes 2016, section 116.993, subdivision 6, is amended to read:
210.29 		Subd. 6.Loan conditions. A loan made under this section must include:
211.1 	(1) an interest rate that is four percent or at or below one-half the prime rate, whichever 
211.2 	is greater not to exceed five percent;
211.3 	(2) a term of payment of not more than seven years; and
211.4 	(3) an amount not less than $1,000 or exceeding $50,000 $75,000.

211.5 	Sec. 83. Minnesota Statutes 2016, section 180.03, subdivision 2, is amended to read:
211.6 		Subd. 2.Fences. Every person, firm, or corporation that is or has been engaged in the 
211.7 	business of mining or removing iron ore, taconite, semitaconite or other minerals except 
211.8 	sand, crushed rock, and gravel shall erect and maintain, as a minimum, a three strand wire 
211.9 	fence along the outside perimeter of the excavation, open pit, or shaft of any mine in which 
211.10 	mining operations have ceased for a period of six consecutive months or longer. Based upon 
211.11 	local site conditions that may exist at shafts, caves, or open pits, the county mine inspector 
211.12 	may require more secure fencing such as barbed wire or mesh fence, or may require barriers, 
211.13 	appropriate signs, or any combination of the above, to reduce the possibility of accidental 
211.14 	falls. The county mine inspector may grant exemptions under subdivision 4. Where mining 
211.15 	operations have ceased and not resumed, the fence, barrier, signs, or combination of them
211.16 	required by this section shall be erected within two years from the date when the county 
211.17 	mine inspector directs the erection of fences, barriers, signs, or combination of them.

211.18 	Sec. 84. Minnesota Statutes 2016, section 180.03, subdivision 3, is amended to read:
211.19 		Subd. 3.Abandoned mines. Except as described in subdivision 4, when a mine is idle 
211.20 	or abandoned it is the duty of the inspector of mines to notify the person, firm, or corporation 
211.21 	that is or has been engaged in the business of mining to erect and maintain around all the 
211.22 	shafts, caves, and open pits of such mines a fence, barrier, appropriate signs, or combination 
211.23 	of them, suitable to warn of the presence of shafts, caves, or open pits and reduce the 
211.24 	possibility of accidentally falling into these shafts, caves, or open pits. If the mine has been 
211.25 	idled or abandoned, or if the person, firm, or corporation that has been engaged in the 
211.26 	business of mining no longer exists, the fee owner shall erect and maintain the fence, barrier, 
211.27 	or signs required by this section. If the fee owner fails to act, the county in which the mining 
211.28 	operation is located may, in addition to any other remedies available, abate the nuisance by 
211.29 	erecting or maintaining the fence, barrier, or signs and assessing the costs and related 
211.30 	expenses pursuant to section 429.101.

212.1 	Sec. 85. Minnesota Statutes 2016, section 180.03, subdivision 4, is amended to read:
212.2 		Subd. 4.Exemptions. (a) The portion of an excavation, cave, open or water-filled pit, 
212.3 	or shaft is exempt from the requirements of this section if:
212.4 	(1) it is located on property owned, leased, or administered by the Office of the 
212.5 	Commissioner of Iron Range Resources and Rehabilitation;
212.6 	(2) it is for the construction, operation, maintenance, or administration of:
212.7 	(i) grants-in-aid trails as defined in section 85.018;
212.8 	(ii) property owned or leased by a municipality, as defined in section 466.01, subdivision 
212.9 	1, that is intended or permitted to be used as a park, an open area for recreational purposes, 
212.10 	or for the provision of recreational services, including the creation of trails or paths without 
212.11 	artificial surfaces; or
212.12 	(iii) recreational use, as defined in section 604A.21, subdivisions 5 and 6, provided the 
212.13 	use is administered by a municipality, as defined in section 466.01, subdivision 1;
212.14 	(3) it is for economic development purposes under chapter 469; or
212.15 	(4) upon written application by the property owner, the county mine inspector may 
212.16 	exempt from the requirements of subdivision 2, any abandoned excavation, open pit, or 
212.17 	shaft whichdetermines that it is provided with fencing, barriers, appropriate signs, or 
212.18 	combinations of them, in a manner that is reasonably similar to the standards in subdivision 
212.19 	2, or which if, in the inspector's judgment, it does not constitute a safety hazard.
212.20 	(b) Where an exemption applies, there shall be, at a minimum, appropriate signs posted 
212.21 	by the recipient of the exemption consistent with section 97B.001, subdivision 4:
212.22 	(1) at each location of public access to the mining area restricting access to designated 
212.23 	areas and warning of possible dangers due to the presence of excavations, shafts, caves, or 
212.24 	open or water-filled pits;
212.25 	(2) prohibiting public access beyond the boundaries of the designated public access area; 
212.26 	and
212.27 	(3) identifying those areas where the property on which public access is allowed abuts 
212.28 	private property.
212.29 	(c) Where an exemption applies, to reduce the possibility of inadvertent access beyond 
212.30 	the boundaries of the designated public access area, any new fencing erected by the recipient 
212.31 	of the exemption in accordance with subdivision 2 or 3 shall be maintained by the recipient 
212.32 	of the exemption.
213.1 	(d) Notwithstanding section 180.10, limited openings in preexisting fencing may be 
213.2 	created and maintained by the recipient of the exemption or its agent to provide public 
213.3 	access to the designated public access area.
213.4 	(e) The county mine inspector has the authority to enter, examine, and inspect any and 
213.5 	all property exempted under this section at all reasonable times by day or by night, and, in 
213.6 	addition to enforcing the provisions of this chapter, may make recommendations regarding 
213.7 	the erection of fences, barriers, signs, or a combination of them.

213.8 	Sec. 86. Minnesota Statutes 2016, section 180.10, is amended to read:
213.9 	180.10 REMOVAL OF FENCE; GUARD.
213.10 	A worker, employee, or other person who opens, removes, or disturbs any fence, guard, 
213.11 	barrier, sign, or rail required by section 180.03 and fails to close or replace or have the same 
213.12 	closed or replaced again around or in front of any mine shaft, pit, chute, excavation, cave, 
213.13 	or land liable to cave, injure, or destroy, whether by accident, injury, or damage results, 
213.14 	either to the mine or those at work therein, or to any other person, shall be guilty of a 
213.15 	misdemeanor. A worker, employee, or other person who, in regard to any fence, guard, 
213.16 	barrier, sign, or rail, does any of the acts prohibited by section 609.52, commits theft of the 
213.17 	fence, guard, barrier, sign, or rail may be sentenced as provided in section 609.52.

213.18 	Sec. 87. Minnesota Statutes 2016, section 216G.01, subdivision 3, is amended to read:
213.19 		Subd. 3.Pipeline. "Pipeline" means a pipeline owned or operated by a condemning 
213.20 	authority, as defined in section 117.025, subdivision 4, located in this state which is used 
213.21 	to transport natural or synthetic gas at a pressure of more than 90 pounds per square inch, 
213.22 	or to transport crude petroleum or petroleum fuels or oil or their derivatives, coal, anhydrous 
213.23 	ammonia or any mineral slurry to a distribution center or storage facility which is located 
213.24 	within or outside of this state. "Pipeline" does not include a pipeline owned or operated by 
213.25 	a natural gas public utility as defined in section 216B.02, subdivision 4.

213.26 	Sec. 88. [383A.606] DISCONTINUANCE OF RAMSEY SOIL AND WATER 
213.27 	CONSERVATION DISTRICT; TRANSFER OF DUTIES.
213.28 		Subdivision 1.Discontinuance. Notwithstanding section 103C.225, the Ramsey Soil 
213.29 	and Water Conservation District is discontinued effective July 1, 2018, and its duties and 
213.30 	authorities are transferred to the Ramsey County Board of Commissioners.
213.31 		Subd. 2.Transfer of duties and authorities. The Ramsey County Board of 
213.32 	Commissioners has the duties and authorities of a soil and water conservation district. All 
214.1 	contracts in effect on the date of the discontinuance of the district to which Ramsey Soil 
214.2 	and Water Conservation District is a party remain in force and effect for the period provided 
214.3 	in the contracts. The Ramsey County Board of Commissioners shall be substituted for the 
214.4 	Ramsey Soil and Water Conservation District as party to the contracts and succeed to the 
214.5 	district's rights and duties.
214.6 		Subd. 3.Transfer of assets. The Ramsey Soil and Water Conservation District Board 
214.7 	of Supervisors shall transfer the assets of the district to the Ramsey County Board of 
214.8 	Commissioners. The Ramsey County Board of Commissioners shall use the transferred 
214.9 	assets for the purposes of implementing the transferred duties and authorities.
214.10 		Subd. 4.Reestablishment. The Ramsey County Board of Commissioners may petition 
214.11 	the Minnesota Board of Water and Soil Resources to reestablish the Ramsey Soil and Water 
214.12 	Conservation District. Alternatively, the Minnesota Board of Water and Soil Resources 
214.13 	under its authority in section 103C.201, and after giving notice of corrective actions and 
214.14 	time to implement the corrective actions, may reestablish the Ramsey Soil and Water 
214.15 	Conservation District if it determines the goals established in section 103C.005 are not 
214.16 	being achieved. The Minnesota Board of Water and Soil Resources may reestablish the 
214.17 	Ramsey Soil and Water Conservation District under this subdivision without a referendum.

214.18 	EFFECTIVE DATE. This section is effective the day after the governing body of 
214.19 	Ramsey County and its chief clerical officer timely complete their compliance with Minnesota 
214.20 	Statutes, section 645.021, subdivisions 2 and 3.

214.21 	Sec. 89. Laws 2016, chapter 189, article 3, section 48, is amended to read:
214.22 	Sec. 48. LAKE SERVICE PROVIDER FEASIBILITY REPORT.
 214.23 	The commissioner of natural resources shall report to the chairs of the house of 
214.24 	representatives and senate committees with jurisdiction over natural resources by January 
214.25 	15, 2019 2020, regarding the feasibility of expanding permitting to service providers as 
214.26 	described in Minnesota Statutes, section 84D.108, subdivision 2a, to other water bodies in 
214.27 	the state. The report must:
214.28 	(1) include recommendations for state and local resources needed to implement the 
214.29 	program;
214.30 	(2) assess local government inspection roles under Minnesota Statutes, section 84D.105, 
214.31 	subdivision 2, paragraph (g); and
215.1 	(3) assess whether mechanisms to ensure that water-related equipment placed back into 
215.2 	the same body of water from which it was removed can adequately protect other water 
215.3 	bodies.

215.4 	Sec. 90. Laws 2017, chapter 93, article 2, section 155, subdivision 5, is amended to read:
215.5 		Subd. 5.Sunset. This section expires two three years from the day following final 
215.6 	enactment.

215.7 	Sec. 91. Laws 2017, chapter 93, article 2, section 163, is amended to read:
215.8 	Sec. 163. ACTION TO OBTAIN ACCESS PROHIBITED; CLEARWATER 
215.9 	COUNTY.
 215.10 	Before July 1, 2018 2019, the commissioner of natural resources must not initiate a civil 
215.11 	action to obtain access to Island Lake FMHA Wildlife Management Area in Clearwater 
215.12 	County.

215.13 	Sec. 92. RECREATIONAL TRAILS; ENVIRONMENTAL REVIEW; 
215.14 	RULEMAKING.
 215.15 	(a) The Environmental Quality Board must amend Minnesota Rules, chapter 4410, to 
215.16 	be consistent with this section, including amending Minnesota Rules, part 4410.4300, subpart 
215.17 	37, as follows:
215.18 	(1) item A must be amended to read: "Constructing a trail at least 25 miles long on 
215.19 	forested or other naturally vegetated land for a recreational use unless exempted by part 
215.20 	4410.4600, subpart 14, item D.";
215.21 	(2) item B must be amended to read: "Designating at least 25 miles of an existing trail 
215.22 	for a new motorized recreational use other than snowmobiling. When designating an existing 
215.23 	motorized trail or existing corridor in current legal use by motor vehicles, for a new motorized 
215.24 	recreational use, this designation must not contribute to the 25-mile threshold. When adding 
215.25 	a new recreational use or seasonal recreational use to an existing motorized recreational 
215.26 	trail if the treadway width is not expanded as a result of the added use, this addition must 
215.27 	not contribute to the 25-mile threshold."; and
215.28 	(3) when applying items A and B, the rule must be amended to read: "In applying items 
215.29 	A and B, if a proposed trail will contain segments of newly constructed trail and segments 
215.30 	that will follow an existing trail but be designated for a new motorized use, an EAW must 
215.31 	be prepared if the sum of the total is at least 25-mile long."
216.1 	(b) The board may use the good cause exemption rulemaking procedure under Minnesota 
216.2 	Statutes, section 14.388, subdivision 1, clause (3), to adopt rules under this section, and 
216.3 	Minnesota Statutes, section 14.386, does not apply except as provided under Minnesota 
216.4 	Statutes, section 14.388.

216.5 	Sec. 93. WETLAND REPLACEMENT; FRAMEWORKS FOR IN-LIEU FEE 
216.6 	PROGRAM.
 216.7 	The Board of Water and Soil Resources, in cooperation with the United States Army 
216.8 	Corps of Engineers, may complete the planning frameworks and other program application 
216.9 	requirements necessary for federal approval of an in-lieu fee program, as authorized under 
216.10 	Minnesota Statutes, section 103G.2242, in the Red River basin and the greater than 80 
216.11 	percent area. The planning frameworks must contain a prioritization strategy for selecting 
216.12 	and implementing mitigation activities based on a watershed approach that includes 
216.13 	consideration of historic resource loss within watersheds and the extent to which mitigation 
216.14 	can address priority watershed needs. The board must consider the recommendations of the 
216.15 	report "Siting of Wetland Mitigation in Northeast Minnesota," dated March 7, 2014, and 
216.16 	implementation of Minnesota Statutes, section 103B.3355, paragraphs (e) and (f), in 
216.17 	developing proposed planning frameworks for applicable watersheds. When completing 
216.18 	the work and pursuing approval of an in-lieu fee program, the board must do so consistent 
216.19 	with the applicable requirements, stakeholder and agency review processes, and approval 
216.20 	time frames in Code of Federal Regulations, title 33, section 332. The board must submit 
216.21 	any completed planning frameworks to the chairs and ranking minority members of the 
216.22 	house of representatives and the senate committees and divisions with jurisdiction over 
216.23 	environment and natural resources upon receiving federal approval.

216.24 	Sec. 94. TESTING FOR PRIVATE WELLS; EAST METROPOLITAN AREA.
 216.25 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
216.26 	the meanings given.
216.27 	(b) "East metropolitan area" means:
216.28 	(1) the cities of Afton, Cottage Grove, Lake Elmo, Maplewood, Newport, Oakdale, St. 
216.29 	Paul Park, and Woodbury;
216.30 	(2) the townships of Denmark, Grey Cloud Island, and West Lakeland; and
216.31 	(3) other areas added by the commissioner that have a potential for significant 
216.32 	groundwater pollution from PFCs.
217.1 	(c) "PFCs" means perfluorinated and polyfluorinated chemicals.
217.2 		Subd. 2.Testing for private wells. To provide results of PFC groundwater monitoring 
217.3 	to the public, the commissioner of the Pollution Control Agency must develop a Web page 
217.4 	that may include, but is not limited to, the following:
217.5 	(1) the process for private and public well PFC sampling in the east metropolitan area;
217.6 	(2) an interactive map system that allows the public to view locations of the Department 
217.7 	of Health well advisories and areas projected to be sampled for PFCs; and
217.8 	(3) how to contact the Pollution Control Agency or Department of Health staff to answer 
217.9 	questions on sampling of private wells.
217.10 		Subd. 3.Test reporting. (a) By January 15 each year, the commissioner of the Pollution 
217.11 	Control Agency must report to each community in the east metropolitan area a summary 
217.12 	of the results of the testing for private wells in the community. The report must include 
217.13 	information on the number of wells tested and trends of PFC contamination in private wells 
217.14 	in the community. Reports to communities under this section must also be published on the 
217.15 	Pollution Control Agency's Web site.
217.16 	(b) By January 15 each year, the commissioner of the Pollution Control Agency must 
217.17 	report to the legislature, as provided in Minnesota Statutes, section 3.195, on the testing for 
217.18 	private wells conducted in the east metropolitan area, including copies of the community 
217.19 	reports required in paragraph (a), the number of requests for well testing in each community, 
217.20 	and the total amount spent for testing private wells in each community.

217.21 	Sec. 95. TEMPORARY ENFORCEMENT OF GROUNDWATER APPROPRIATION 
217.22 	PERMIT REQUIREMENTS.
 217.23 	(a) Until July 1, 2019, the commissioner of natural resources must not expend funds to 
217.24 	suspend or revoke a water appropriation permit, issue an order requiring a violation to be 
217.25 	corrected, assess monetary penalties, or otherwise take enforcement action against a water 
217.26 	appropriation permit holder if the suspension, revocation, order, penalty, or other enforcement 
217.27 	action is based solely on a violation of a permit requirement added to a groundwater 
217.28 	appropriation permit within the north and east metro groundwater management area as a 
217.29 	result of a court order issued in 2017.
217.30 	(b) The commissioner of natural resources may continue to use all the authorities granted 
217.31 	to the commissioner under Minnesota Statutes, section 103G.287, to manage groundwater 
217.32 	resources within the north and east groundwater management area.

218.1 	Sec. 96. GROUNDWATER MANAGEMENT AREA PERMIT REQUIREMENTS.
 218.2 	(a) Notwithstanding water appropriation permit requirements added by the commissioner 
218.3 	of natural resources as a result of a court order issued in 2017, a public water supplier located 
218.4 	in the seven-county metropolitan area within a designated groundwater management area:
218.5 	(1) is not required to revise a water supply plan to include contingency plans to fully or 
218.6 	partially convert its water supplies to surface water;
218.7 	(2) may prepare, enact, and enforce commercial or residential irrigation bans or alternative 
218.8 	measures that achieve similar water use reductions when notified by the commissioner of 
218.9 	natural resources that lake levels have fallen below court-ordered levels; and
218.10 	(3) is not required to use per capita residential water use as a measure for purposes of 
218.11 	water use reduction goals, plans, and implementation and may submit water use plans and 
218.12 	reports that use a measure other than per capita residential water use.
218.13 	(b) This section expires July 1, 2019.

218.14 	Sec. 97. RULEMAKING; DISPOSAL FACILITY CERTIFICATES.
 218.15 	(a) The commissioner of the Pollution Control Agency must amend Minnesota Rules, 
218.16 	part 7048.1000, subpart 4, item D, to require six contact hours of required training to renew 
218.17 	a type IV disposal facility certificate, by April 30, 2019, or nine months after enactment of 
218.18 	this section, whichever is earlier.
218.19 	(b) The commissioner may use the good cause exemption under Minnesota Statutes, 
218.20 	section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota 
218.21 	Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes, 
218.22 	section 14.388.

218.23 	Sec. 98. APPLICATION OF STORM WATER RULES TO TOWNSHIPS.
 218.24 	Until the Pollution Control Agency amends rules for storm water, Minnesota Rules, part 
218.25 	7090.1010, subpart 1, item B, subitem (1), only applies to the portions of the city or township 
218.26 	that are designated as urbanized under Code of Federal Regulations, title 40, section 122.26 
218.27 	(a)(9)(i)(A), and other platted areas within that jurisdiction.

218.28 	Sec. 99. FOREST INVENTORY RECOMMENDATIONS.
 218.29 	The Minnesota Forest Resources Council shall work in cooperation with the Interagency 
218.30 	Information Cooperative and the University of Minnesota Department of Forest Resources 
218.31 	to make recommendations for improving stand-level forest inventories. Recommendations 
219.1 	shall include the frequency and scope of forest inventory and design and technological 
219.2 	improvements and efficiencies that may be utilized in forest inventory data collection and 
219.3 	analysis. The recommendations shall address forest inventories of state- and 
219.4 	county-administered forest lands and other interested land managers. Recommendations 
219.5 	shall be reported to the house of representatives Environment and Natural Resources Policy 
219.6 	and Finance Committee, the senate Environment and Natural Resources Finance Committee, 
219.7 	and the senate Environment and Natural Resources Policy and Legacy Finance Committee 
219.8 	by February 1, 2019.

219.9 	Sec. 100. LAKE WINONA MANAGEMENT; USING OFFSET, ADAPTIVE 
219.10 	PLANNING.
 219.11 	(a) To facilitate implementation of the Lake Winona total maximum daily load, the 
219.12 	Alexandria Lake Area Sanitary District may fund or perform lake management activities 
219.13 	in Lake Winona and in Lake Agnes. Lake management activities may include but are not 
219.14 	limited to carp removal and alum treatment. If the district agrees to fund or perform lake 
219.15 	management activities in Lake Winona and in Lake Agnes, the commissioner of the Pollution 
219.16 	Control Agency shall do one of the following unless the district chooses another path to 
219.17 	compliance that conforms to state and federal law, such as facility construction:
219.18 	(1) approve an offset of the phosphorous loading proportional to the reduction achievable 
219.19 	through lake management activities in Lake Winona and Lake Agnes creditable to the 
219.20 	Alexandria Lake Area Sanitary District's wastewater treatment facility and issue or amend 
219.21 	the district's NPDES permit MN004738 to include the offset. The approved offset may be 
219.22 	related to the lake eutrophication response variable chlorophyll-a, but shall ensure the district 
219.23 	can achieve compliance with phosphorus effluent limits through wastewater optimization 
219.24 	techniques without performing capital upgrades to the wastewater treatment facility. The 
219.25 	lake management activities contemplated under paragraph (a) need not be completed before 
219.26 	the commissioner approves the offset and related discharge limits or issues the permit, but 
219.27 	the permit may include a schedule of compliance outlining the required lake management 
219.28 	activities and requiring that lake management activities in Lake Winona and Lake Agnes 
219.29 	begin immediately upon permit issuance. The approved offset and related permit language 
219.30 	must be consistent with Clean Water Act requirements and Minnesota Statutes, section 
219.31 	115.03, subdivision 10; or
219.32 	(2) amend the district's NPDES permit MN004738 in a manner consistent with state and 
219.33 	federal law to include an integrated and adaptive lake management plan and to extend the 
219.34 	final compliance deadline for the final phosphorus concentration effluent limit related to 
220.1 	the site specific standard for Lake Winona contained in the district's permit until such time 
220.2 	that carp removal in Lake Winona can be completed and the lake can be reassessed. The 
220.3 	permit may include a schedule of compliance outlining the required lake management 
220.4 	activities and requiring that lake management activities in Lake Winona and Lake Agnes 
220.5 	begin immediately upon permit issuance.
220.6 	(b) If the district agrees to fund or perform the lake management activities identified in 
220.7 	paragraph (a), the district may cooperate with the city of Alexandria in those efforts. The 
220.8 	district's responsibility for lake management activities in Lake Winona and Lake Agnes 
220.9 	terminates upon completion of the lake management activities identified in the schedule of 
220.10 	compliance contemplated under paragraph (a).

220.11 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
220.12 	Alexandria Lake Area Sanitary District and its chief clerical officer timely complete their 
220.13 	compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

220.14 	Sec. 101. MORATORIUM ON MUSKELLUNGE STOCKING IN OTTER TAIL 
220.15 	COUNTY.
 220.16 	(a) Until August 1, 2023, the commissioner of natural resources must not stock 
220.17 	muskellunge in waters wholly located in Otter Tail County. Any savings realized as a result 
220.18 	must be used for walleye stocking. This paragraph does not apply to lakes located wholly 
220.19 	within the boundaries of a state park.
220.20 	(b) The commissioner of natural resources must convene a stakeholder group to examine 
220.21 	the effect of muskellunge on the environment, waters, and native fish of Otter Tail County. 
220.22 	The stakeholder group must include an Otter Tail County commissioner, a representative 
220.23 	of the Minnesota Chamber of Commerce, and a representative of an Otter Tail County lake 
220.24 	association. The stakeholder group must examine existing scientific research and must 
220.25 	determine whether additional research is necessary. If the stakeholder group determines 
220.26 	that muskellunge do not pose a threat to the environment, waters, or native fish of Otter 
220.27 	Tail County, the stakeholder group may recommend that the legislature repeal or adjust the 
220.28 	moratorium imposed under paragraph (a).

220.29 	EFFECTIVE DATE. This section is effective the day after the Otter Tail County Board 
220.30 	of Commissioners and its chief clerical officer timely complete their compliance with 
220.31 	Minnesota Statutes, section 645.021, subdivisions 2 and 3, but not before July 1, 2018.

221.1 	Sec. 102. NATURAL RESOURCES YOUTH SAFETY EDUCATION PROGRAMS 
221.2 	DELIVERY.
 221.3 	The commissioner of natural resources shall review and research options for delivering 
221.4 	online safety training programs for youth and adult students, including off-highway vehicles 
221.5 	and hunter education, that are maintained and delivered by the state that functions 
221.6 	independently from an outside contract vendor. By March 1, 2019, the commissioner shall 
221.7 	report to the chairs of the senate and house of representatives environment and natural 
221.8 	resources policy and finance committees on options identified under this section.

221.9 	Sec. 103. NONPOINT PRIORITY FUNDING PLAN WORKGROUP.
 221.10 	The Board of Water and Soil Resources must convene a workgroup consisting of 
221.11 	representatives of state agencies, local governments, tribal governments, private and nonprofit 
221.12 	organizations, and others to review the nonpoint priority funding plan under Minnesota 
221.13 	Statutes, section 114D.50, subdivision 3a. By January 31, 2019, the board must submit a 
221.14 	report to the chairs and ranking minority members of the house of representatives and senate 
221.15 	committees with jurisdiction over environment and natural resources that contains 
221.16 	recommendations to improve the effectiveness of nonpoint priority funding plans to meet 
221.17 	the requirements in Minnesota Statutes, section 114D.50, subdivision 3a, the purposes in 
221.18 	Minnesota Statutes, section 114D.50, subdivision 3, and the watershed and groundwater 
221.19 	restoration and protection goals of Minnesota Statutes, chapters 103B and 114D.

221.20 	Sec. 104. CHRONIC WASTING DISEASE TASK FORCE.
 221.21 		Subdivision 1.Creation; membership. (a) The Chronic Wasting Disease Task Force 
221.22 	consists of 22 members appointed as follows:
221.23 	(1) the chairs and ranking minority members of the senate committees with jurisdiction 
221.24 	over environment and natural resources policy and finance;
221.25 	(2) the chair and ranking minority member of the house of representatives Environment 
221.26 	and Natural Resources Policy and Finance Committee and two additional members of that 
221.27 	committee selected by the chair of that committee, one from the majority party, and one 
221.28 	from the minority party;
221.29 	(3) the chairs and ranking minority members of the senate and house of representatives 
221.30 	committees with jurisdiction over agriculture policy and finance;
221.31 	(4) a representative from the Department of Natural Resources, the Department of 
221.32 	Agriculture, and the Board of Animal Health; and
222.1 	(5) a representative from the Minnesota Elk Breeders Association, Minnesota Deer 
222.2 	Farmers Association, and the Minnesota Deer Hunters Association.
222.3 	(b) The appointing authorities must make their respective appointments no later than 
222.4 	July 15, 2018.
222.5 		Subd. 2.Chair; meetings. (a) The chair of the task force alternates each meeting between 
222.6 	the chair of the senate Environment and Natural Resources Policy Committee and the chair 
222.7 	of the house of representatives Environment and Natural Resources Policy and Finance 
222.8 	Committee. The senate chair shall chair the first meeting, which shall be no later than August 
222.9 	15, 2018.
222.10 	(b) The task force shall meet upon the call of the chair.
222.11 		Subd. 3.Administrative support. The Legislative Coordinating Commission shall 
222.12 	provide administrative support and meeting space for the task force.
222.13 		Subd. 4.Duties. The task force must study and provide recommendations on:
222.14 	(1) whether and how recommendations included in the legislative auditor's Board of 
222.15 	Animal Health's Oversight of Deer and Elk Farms report should be implemented;
222.16 	(2) methods to improve the coordination and effectiveness of the chronic wasting disease 
222.17 	prevention and response activities of government agencies and other stakeholders; and
222.18 	(3) whether it is possible to develop a method for detecting the presence of the disease 
222.19 	in living cervids and what resources would be required to do so.
222.20 		Subd. 5.Report. No later than January 15, 2019, the task force shall submit a report to 
222.21 	the chairs of the house of representatives and senate committees with jurisdiction over 
222.22 	environment and natural resources finance containing the findings of the task force.
222.23 		Subd. 6.Expiration. The task force expires 45 days after the report and recommendations 
222.24 	are delivered to the legislature or on June 30, 2019, whichever date is earlier.

222.25 	Sec. 105. BOARD OF ANIMAL HEALTH TASK FORCE.
 222.26 		Subdivision 1.Creation; membership. (a) The Board of Animal Health Task Force 
222.27 	consists of 25 members appointed as follows:
222.28 	(1) the chairs and ranking minority members of the senate committees with jurisdiction 
222.29 	over environment and natural resources policy and finance;
222.30 	(2) the chair and ranking minority member of the house of representatives Environment 
222.31 	and Natural Resources Policy and Finance Committee and two additional members of that 
223.1 	committee selected by the chair of that committee, one from the majority party, and one 
223.2 	from the minority party;
223.3 	(3) the chairs and ranking minority members of the senate and house of representatives 
223.4 	committees with jurisdiction over agriculture policy and finance;
223.5 	(4) the commissioner of agriculture, or the commissioner's designee; and
223.6 	(5) a representative from the Minnesota Elk Breeders Association, the Minnesota Deer 
223.7 	Farmers Association, the Minnesota Deer Hunters Association, the Minnesota Pork Producers 
223.8 	Association, the Minnesota Cattlemen's Association, the Minnesota Farmer's Union, the 
223.9 	Minnesota Farm Bureau, and the Minnesota Turkey Growers Association.
223.10 	(b) The appointing authorities must make their respective appointments no later than 
223.11 	July 15, 2018.
223.12 		Subd. 2.Chair; meetings. (a) The chair of the task force alternates each meeting between 
223.13 	the chair of the senate Environment and Natural Resources Policy Committee and the chair 
223.14 	of the house of representatives Environment and Natural Resources Policy and Finance 
223.15 	Committee. The senate chair shall chair the first meeting, which shall be no later than August 
223.16 	15, 2018.
223.17 	(b) The task force shall meet upon the call of the chair.
223.18 		Subd. 3.Administrative support. The Legislative Coordinating Commission shall 
223.19 	provide administrative support and meeting space for the task force.
223.20 		Subd. 4.Duties. The task force must study and provide recommendations related to:
223.21 	(1) the overall effectiveness of the board's execution of its statutory duties, including its 
223.22 	duties to protect the health of Minnesota's domestic animals, manage domestic animal 
223.23 	diseases, and enforce domestic animal-related laws;
223.24 	(2) whether the structure, membership, and duties of the board are optimally designed 
223.25 	to further the purposes for which the board was created and to serve the communities it is 
223.26 	designed to serve; and
223.27 	(3) whether and how recommendations included in the legislative auditor's Board of 
223.28 	Animal Health's Oversight of Deer and Elk Farms report should be implemented.
223.29 		Subd. 5.Duty to cooperate. Upon request, the Board of Animal Health shall provide 
223.30 	the task force with any information requested by the task force in connection with the 
223.31 	exercise of its duties. The Board of Animal Health may redact nonpublic information from 
223.32 	the information prior to providing information under this subdivision.
224.1 		Subd. 6.Report. No later than January 15, 2019, the task force shall submit a report to 
224.2 	the chairs and ranking minority members of the house of representatives and senate 
224.3 	committees with jurisdiction over environment and natural resources finance containing 
224.4 	the findings of the task force.
224.5 		Subd. 7.Expiration. The task force expires 45 days after the report and recommendations 
224.6 	are delivered to the legislature or on June 30, 2019, whichever date is earlier.

224.7 	Sec. 106. 1837 CEDED TERRITORY FISHERIES TECHNICAL COMMITTEE.
 224.8 	The commissioner of natural resources may request that the 1837 Ceded Territory 
224.9 	Fisheries Technical Committee invite at least two fish managers as designated by the 
224.10 	commissioner to attend all meetings of the committee.

224.11 	Sec. 107. CARBON MONOXIDE EXPOSURE; FISH HOUSES AND ICE 
224.12 	SHELTERS; REPORT.
 224.13 	The commissioner of natural resources must work with fish house and ice shelter 
224.14 	manufacturers and other interested parties to identify best practices to reduce fish house 
224.15 	and ice shelter user exposure to carbon monoxide. The commissioner must increase outreach 
224.16 	efforts relating to the dangers of carbon monoxide exposure in fish houses and report 
224.17 	recommendations to the chairs of the house of representatives and senate committees and 
224.18 	divisions with jurisdiction over environment and natural resources policy by January 15, 
224.19 	2019.

224.20 	Sec. 108. HAYES LAKE STATE PARK RECOMMENDATIONS; REPORT.
 224.21 	The commissioner of natural resources, in cooperation with the Friends of Hayes Lake 
224.22 	State Park, Roseau County, and other interested parties must develop recommendations for 
224.23 	expanding access to and recreational opportunities within Hayes Lake State Park. The 
224.24 	commissioner must submit the report to the chairs and ranking minority members of the 
224.25 	house of representatives and senate committees and divisions with jurisdiction over the 
224.26 	environment and natural resources by February 1, 2019.

224.27 	Sec. 109. SNOWMOBILE TRAILS AND ENFORCEMENT ACCOUNT.
 224.28 	The commissioner of natural resources must work with the Minnesota United 
224.29 	Snowmobilers Association to develop a consensus agreement on the use of the money in 
224.30 	the snowmobile trails and enforcement account under Minnesota Statutes, section 84.83. 
224.31 	The commissioner of natural resources must submit a copy of a memorandum of 
225.1 	understanding outlining the agreement between the commissioner and the association to 
225.2 	the chairs and ranking minority members of the house of representatives and senate 
225.3 	committees and divisions with jurisdiction over the environment and natural resources by 
225.4 	January 15, 2019.

225.5 	Sec. 110. HILL-ANNEX MINE STATE PARK; MANAGEMENT AND OPERATION.
 225.6 	(a) The commissioner of natural resources must operate the Hill-Annex Mine State Park 
225.7 	for the purposes it was established through June 30, 2021. The commissioner must work 
225.8 	with the group established under Laws 2017, chapter 93, article 2, section 156, to review 
225.9 	park activities and the alternate operating model developed and identify options for 
225.10 	sustainable and viable operation of the park site. The commissioner must submit 
225.11 	recommendations to the chairs and ranking minority members of the house of representatives 
225.12 	and senate committees and divisions with jurisdiction over the environment and natural 
225.13 	resources by January 15, 2021.
225.14 	(b) The commissioner of natural resources must work with the city of Calumet, other 
225.15 	neighboring cities and townships, and other local units of government to identify and 
225.16 	coordinate volunteers to supplement the Department of Natural Resources' park operations 
225.17 	to the extent allowable under state law and rules.

225.18 	Sec. 111.  REPEALER.
 225.19 	(a) Minnesota Statutes 2017 Supplement, section 169A.07, is repealed.
225.20 	(b) Minnesota Statutes 2016, section 169A.33, subdivision 1, is repealed.

225.21 	EFFECTIVE DATE. Paragraph (a) is effective August 1, 2018, and applies to crimes 
225.22 	committed on or after that date. Paragraph (b) is effective August 1, 2018, and applies to 
225.23 	offenses committed on or after that date.

225.24 	ARTICLE 21
225.25 	ACCELERATED BUFFER STRIP IMPLEMENTATION

225.26 	Section 1. Minnesota Statutes 2016, section 17.117, subdivision 1, is amended to read:
225.27 		Subdivision 1.Purpose. The purpose of the agriculture best management practices loan 
225.28 	program is to provide low or no interest financing to farmers, agriculture supply businesses, 
225.29 	rural landowners, chapter 103E drainage authorities, and water-quality cooperatives for the 
225.30 	implementation of agriculture and other best management practices that reduce environmental 
225.31 	pollution.

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

226.2 	Sec. 2. Minnesota Statutes 2016, section 17.117, subdivision 4, is amended to read:
226.3 		Subd. 4.Definitions. (a) For the purposes of this section, the terms defined in this 
226.4 	subdivision have the meanings given them.
226.5 	(b) "Agricultural and environmental revolving accounts" means accounts in the 
226.6 	agricultural fund, controlled by the commissioner, which hold funds available to the program.
226.7 	(c) "Agriculture supply business" means a person, partnership, joint venture, corporation, 
226.8 	limited liability company, association, firm, public service company, or cooperative that 
226.9 	provides materials, equipment, or services to farmers or agriculture-related enterprises.
226.10 	(d) "Allocation" means the funds awarded to an applicant for implementation of best 
226.11 	management practices through a competitive or noncompetitive application process.
226.12 	(e) "Applicant" means a local unit of government eligible to participate in this program 
226.13 	that requests an allocation of funds as provided in subdivision 6b.
226.14 	(f) "Best management practices" has the meaning given in sections 103F.711, subdivision 
226.15 	3, and 103H.151, subdivision 2. Best management practices also means other practices, 
226.16 	techniques, and measures that have been demonstrated to the satisfaction of the 
226.17 	commissioner: (1) to prevent or reduce adverse environmental impacts by using the most 
226.18 	effective and practicable means of achieving environmental goals; or (2) to achieve drinking 
226.19 	water quality standards under chapter 103H or under Code of Federal Regulations, title 40, 
226.20 	parts 141 and 143, as amended.
226.21 	(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner, or 
226.22 	a chapter 103E drainage authority applying for a low-interest loan.
226.23 	(h) "Commissioner" means the commissioner of agriculture, including when the 
226.24 	commissioner is acting in the capacity of chair of the Rural Finance Authority, or the designee 
226.25 	of the commissioner.
226.26 	(i) "Committed project" means an eligible project scheduled to be implemented at a 
226.27 	future date:
226.28 	(1) that has been approved and certified by the local government unit; and
226.29 	(2) for which a local lender has obligated itself to offer a loan.
227.1 	(j) "Comprehensive water management plan" means a state-approved and locally adopted 
227.2 	plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or 
227.3 	103D.405.
227.4 	(k) "Cost incurred" means expenses for implementation of a project accrued because 
227.5 	the borrower has agreed to purchase equipment or is obligated to pay for services or materials 
227.6 	already provided as a result of implementing an approved eligible project.
227.7 	(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability 
227.8 	company, association, firm, public service company, or cooperative that regularly participates 
227.9 	in physical labor or operations management of farming and files a Schedule F as part of 
227.10 	filing United States Internal Revenue Service Form 1040 or indicates farming as the primary 
227.11 	business activity under Schedule C, K, or S, or any other applicable report to the United 
227.12 	States Internal Revenue Service.
227.13 	(m) "Lender agreement" means an agreement entered into between the commissioner 
227.14 	and a local lender which contains terms and conditions of participation in the program.
227.15 	(n) "Local government unit" means a county, soil and water conservation district, or an 
227.16 	organization formed for the joint exercise of powers under section 471.59 with the authority 
227.17 	to participate in the program.
227.18 	(o) "Local lender" means a local government unit as defined in paragraph (n), a state or 
227.19 	federally chartered bank, a savings association, a state or federal credit union, Agribank 
227.20 	and its affiliated organizations, or a nonprofit economic development organization or other 
227.21 	financial lending institution approved by the commissioner.
227.22 	(p) "Local revolving loan account" means the account held by a local government unit 
227.23 	and a local lender into which principal repayments from borrowers are deposited and new 
227.24 	loans are issued in accordance with the requirements of the program and lender agreements.
227.25 	(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.
227.26 	(r) "Program" means the agriculture best management practices loan program in this 
227.27 	section.
227.28 	(s) "Project" means one or more components or activities located within Minnesota that 
227.29 	are required by the local government unit to be implemented for satisfactory completion of 
227.30 	an eligible best management practice.
227.31 	(t) "Rural landowner" means the owner of record of Minnesota real estate located in an 
227.32 	area determined by the local government unit to be rural after consideration of local land 
228.1 	use patterns, zoning regulations, jurisdictional boundaries, local community definitions, 
228.2 	historical uses, and other pertinent local factors.
228.3 	(u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph (d), 
228.4 	except as expressly limited in this section.

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

228.6 	Sec. 3. Minnesota Statutes 2016, section 17.117, subdivision 11, is amended to read:
228.7 		Subd. 11.Loans issued to borrower. (a) Local lenders may issue loans only for projects 
228.8 	that are approved and certified by the local government unit as meeting priority needs 
228.9 	identified in a comprehensive water management plan or other local planning documents, 
228.10 	are in compliance with accepted practices, standards, specifications, or criteria, and are 
228.11 	eligible for financing under Environmental Protection Agency or other applicable guidelines.
228.12 	(b) The local lender may use any additional criteria considered necessary to determine 
228.13 	the eligibility of borrowers for loans.
228.14 	(c) Local lenders shall set the terms and conditions of loans to borrowers, except that:
228.15 	(1) no loan to a borrower may exceed $200,000;
228.16 	(2) no loan for a project may exceed $200,000; and
228.17 	(3) no borrower shall, at any time, have multiple loans from this program with a total 
228.18 	outstanding loan balance of more than $200,000.
228.19 	Notwithstanding the limits in clauses (1) to (3), a chapter 103E drainage authority may 
228.20 	request a loan to finance projects implemented on behalf of multiple landowners and the 
228.21 	loan must not exceed an amount equal to the number of landowners represented in the 
228.22 	drainage system multiplied by the limit in clause (1).
228.23 	(d) The maximum term length for projects in this paragraph is ten years.
228.24 	(e) Fees charged at the time of closing must:
228.25 	(1) be in compliance with normal and customary practices of the local lender;
228.26 	(2) be in accordance with published fee schedules issued by the local lender;
228.27 	(3) not be based on participation program; and
228.28 	(4) be consistent with fees charged other similar types of loans offered by the local 
228.29 	lender.
229.1 	(f) The interest rate assessed to an outstanding loan balance by the local lender must not 
229.2 	exceed three percent per year.

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

229.4 	Sec. 4. Minnesota Statutes 2016, section 103E.021, subdivision 6, is amended to read:
229.5 		Subd. 6.Incremental implementation establishment of vegetated ditch buffer strips 
229.6 	and side inlet controls. (a) Notwithstanding other provisions of this chapter requiring 
229.7 	appointment of viewers and redetermination of benefits and damages, a drainage authority 
229.8 	may implement make findings and order the establishment of permanent buffer strips of 
229.9 	perennial vegetation approved by the drainage authority or side inlet controls, or both, 
229.10 	adjacent to a public drainage ditch, where necessary to control erosion and sedimentation, 
229.11 	improve water quality, or maintain the efficiency of the drainage system. The drainage 
229.12 	authority's finding that the establishment of permanent buffer strips of perennial vegetation 
229.13 	or side inlet controls is necessary to control erosion and sedimentation, improve water 
229.14 	quality, or maintain the efficiency of the drainage system is sufficient to confer jurisdiction 
229.15 	under this subdivision. Preference should be given to planting native species of a local 
229.16 	ecotype. The approved perennial vegetation shall not impede future maintenance of the 
229.17 	ditch. The permanent strips of perennial vegetation shall be 16-1/2 feet in width measured 
229.18 	outward from the top edge of the existing constructed channel. Drainage system rights-of-way 
229.19 	for the acreage and additional property required for the permanent strips must be acquired 
229.20 	by the authority having jurisdiction.
229.21 	(b) A project under this subdivision shall be implemented as a repair according to section 
229.22 	103E.705, except that the drainage authority may appoint an engineer to examine the drainage 
229.23 	system and prepare an engineer's repair report for the project.
229.24 	(c) Damages shall be determined by the drainage authority, or viewers, appointed by 
229.25 	the drainage authority, according to section 103E.315, subdivision 8. A damages statement 
229.26 	shall be prepared, including an explanation of how the damages were determined for each 
229.27 	property affected by the project, and filed with the auditor or watershed district. Within 30 
229.28 	days after the damages statement is filed, the auditor or watershed district shall prepare 
229.29 	property owners' reports according to section 103E.323, subdivision 1, clauses (1), (2), (6), 
229.30 	(7), and (8), and mail a copy of the property owner's report and damages statement to each 
229.31 	owner of property affected by the proposed project.
229.32 	(d) After a damages statement is filed, the drainage authority shall set a time, by order, 
229.33 	not more than 30 days after the date of the order, for a hearing on the project. At least ten 
229.34 	days before the hearing, the auditor or watershed district shall give notice by mail of the 
230.1 	time and location of the hearing to the owners of property and political subdivisions likely 
230.2 	to be affected by the project.
230.3 	(e) The drainage authority shall make findings and order the repairs to be made if the 
230.4 	drainage authority determines from the evidence presented at the hearing and by the viewers 
230.5 	and engineer, if appointed, that the repairs are necessary for the drainage system and the 
230.6 	costs of the repairs are within the limitations of section 103E.705.

230.7 	Sec. 5. Minnesota Statutes 2016, section 103E.071, is amended to read:
230.8 	103E.071 COUNTY ATTORNEY.
230.9 	The county attorney shall represent the county in all drainage proceedings and related 
230.10 	matters without special compensation, except as provided in section 388.09, subdivision 1. 
230.11 	A county attorney, the county attorney's assistant, or any attorney associated with the county 
230.12 	attorney in business, may not otherwise appear in any drainage proceeding for any interested 
230.13 	person.

230.14 	Sec. 6. Minnesota Statutes 2016, section 103E.351, subdivision 1, is amended to read:
230.15 		Subdivision 1.Conditions to redetermine benefits and damages; appointment of 
230.16 	viewers. If the drainage authority determines that the original benefits or damages of record 
230.17 	determined in a drainage proceeding do not reflect reasonable present day land values or 
230.18 	that the benefited or damaged areas have changed, or if more than 50 percent of the owners 
230.19 	of property, or more than 50 percent of the owners of property benefited or damaged by a 
230.20 	drainage system petition for correction of an error that was made at the time of the 
230.21 	proceedings that established the drainage system or a redetermination of benefits and 
230.22 	damages, the drainage authority may appoint three viewers to redetermine and report the 
230.23 	benefits and damages and the benefited and damaged areas.

230.24 	Sec. 7. PUBLIC DRAINAGE DITCH BUFFER STRIP; PLANTING AND 
230.25 	MAINTENANCE.
 230.26 	With the consent of the property owner where the drainage ditch buffer will be located, 
230.27 	a drainage authority, as defined in Minnesota Statutes, section 103E.005, subdivision 9, 
230.28 	may plant and maintain 16-1/2-foot ditch buffer strips that meet the width and vegetation 
230.29 	requirements of Minnesota Statutes, section 103E.021, before acquiring and compensating 
230.30 	for the buffer strip land rights according to Minnesota Statutes, chapter 103E. Planting and 
230.31 	maintenance costs may be paid in accordance with Minnesota Statutes, chapter 103E. This 
230.32 	section expires June 30, 2019.

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

231.2 	ARTICLE 22
231.3 	HIGHER EDUCATION

231.4	Section 1. APPROPRIATIONS.
 	
231.5 	The sums shown in the columns marked "Appropriations" are added to the appropriations 
231.6 	in Laws 2017, chapter 89, article 1, unless otherwise specified, to the agencies and for the 
231.7 	purposes specified in this article. The appropriations are from the general fund, or another 
231.8 	named fund, and are available for the fiscal years indicated for each purpose. The figures 
231.9 	"2018" and "2019" used in this article mean that the appropriations listed under them are 
231.10 	available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The first 
231.11 	year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" is fiscal 
231.12 	years 2018 and 2019.

231.13				APPROPRIATIONS
	
231.14				Available for the Year
	
231.15				Ending June 30
	
231.16					2018
		2019

231.17
231.18	Sec. 2. MINNESOTA OFFICE OF HIGHER 
EDUCATION

231.19	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	500,000
	
231.20 	The amounts that may be spent for each 
231.21 	purpose are specified in the following 
231.22 	subdivisions.

231.23	Subd. 2.State Grants
 		-0-
		300,000
	
231.24 	This is a onetime appropriation.

231.25
231.26	Subd. 3.Agricultural Educators Loan 
Forgiveness
 		-0-
		100,000
	
231.27 	For transfer to the agricultural education loan 
231.28 	forgiveness account in the special revenue 
231.29 	fund under Minnesota Statutes, section 
231.30 	136A.1794, subdivision 2. This is a onetime 
231.31 	appropriation.

232.1	Subd. 4.Student Loan Debt Counseling
 		-0-
		50,000
	
232.2 	For a student loan debt counseling grant under 
232.3 	Minnesota Statutes, section 136A.1705. This 
232.4 	is a onetime appropriation.

232.5
232.6	Subd. 5.Teacher Preparation Program Design 
Grant
 		-0-
		50,000
	
232.7 	For a teacher preparation program design grant 
232.8 	under section 43. This is a onetime 
232.9 	appropriation.

232.10
232.11
232.12	Sec. 3. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

232.13	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	3,500,000
	
232.14 	The amounts that may be spent for each 
232.15 	purpose are specified in the following 
232.16 	subdivisions.

232.17	Subd. 2.Operations and Maintenance
 		-0-
		3,500,000
	
232.18 	(a) $500,000 is for renewal of workforce 
232.19 	development scholarships first awarded in 
232.20 	academic year 2018-2019 under Minnesota 
232.21 	Statutes, section 136F.38. This is a onetime 
232.22 	appropriation and is available until June 30, 
232.23 	2020.
232.24 	(b) $3,000,000 is for campus support to be 
232.25 	allocated to campuses according to the fiscal 
232.26 	year 2019 framework. This is a onetime 
232.27 	appropriation.

232.28 	Sec. 4. Minnesota Statutes 2016, section 127A.70, subdivision 2, is amended to read:
232.29 		Subd. 2.Powers and duties; report. (a) The partnership shall develop recommendations 
232.30 	to the governor and the legislature designed to maximize the achievement of all P-20 students 
232.31 	while promoting the efficient use of state resources, thereby helping the state realize the 
232.32 	maximum value for its investment. These recommendations may include, but are not limited 
232.33 	to, strategies, policies, or other actions focused on:
233.1 	(1) improving the quality of and access to education at all points from preschool through 
233.2 	graduate education;
233.3 	(2) improving preparation for, and transitions to, postsecondary education and work;
233.4 	(3) ensuring educator quality by creating rigorous standards for teacher recruitment, 
233.5 	teacher preparation, induction and mentoring of beginning teachers, and continuous 
233.6 	professional development for career teachers; and
233.7 	(4) realigning the governance and administrative structures of early education, 
233.8 	kindergarten through grade 12, and postsecondary systems in Minnesota.
233.9 	(b) Under the direction of the P-20 Education Partnership Statewide Longitudinal 
233.10 	Education Data System Governance Committee, the Office of Higher Education and the 
233.11 	Departments of Education and Employment and Economic Development shall improve and 
233.12 	expand the Statewide Longitudinal Education Data System (SLEDS) to provide policymakers, 
233.13 	education and workforce leaders, researchers, and members of the public with data, research, 
233.14 	and reports to:
233.15 	(1) expand reporting on students' educational outcomes for diverse student populations 
233.16 	including at-risk students, children with disabilities, English learners, and gifted students, 
233.17 	among others, and include formative and summative evaluations based on multiple measures 
233.18 	of child well-being, early childhood development, and student progress toward career and 
233.19 	college readiness;
233.20 	(2) evaluate the effectiveness of (i) investments in young children and families, and (ii) 
233.21 	educational and workforce programs; and
233.22 	(3) evaluate the relationship between (i) investments in young children and families, 
233.23 	and (ii) education and workforce outcomes, consistent with section 124D.49.
233.24 	To the extent possible under federal and state law, research and reports should be 
233.25 	accessible to the public on the Internet, and disaggregated by demographic characteristics, 
233.26 	organization or organization characteristics, and geography.
233.27 	It is the intent of the legislature that the Statewide Longitudinal Education Data System 
233.28 	inform public policy and decision-making. The SLEDS governance committee, with 
233.29 	assistance from staff of the Office of Higher Education, the Department of Education, and 
233.30 	the Department of Employment and Economic Development, shall respond to legislative 
233.31 	committee and agency requests on topics utilizing data made available through the Statewide 
233.32 	Longitudinal Education Data System as resources permit. Any analysis of or report on the 
233.33 	data must contain only summary data.
234.1 	(c) By January 15 of each year, the partnership shall submit a report to the governor and 
234.2 	to the chairs and ranking minority members of the legislative committees and divisions with 
234.3 	jurisdiction over P-20 education policy and finance that summarizes the partnership's progress 
234.4 	in meeting its goals and identifies the need for any draft legislation when necessary to further 
234.5 	the goals of the partnership to maximize student achievement while promoting efficient use 
234.6 	of resources.

234.7 	Sec. 5. Minnesota Statutes 2016, section 135A.15, subdivision 2, is amended to read:
234.8 		Subd. 2.Victims' rights. The policy required under subdivision 1 shall, at a minimum, 
234.9 	require that students and employees be informed of the policy, and shall include provisions 
234.10 	for:
234.11 	(1) filing criminal charges with local law enforcement officials in sexual assault cases;
234.12 	(2) the prompt assistance of campus authorities, at the request of the victim, in notifying 
234.13 	the appropriate law enforcement officials and disciplinary authorities of a sexual assault 
234.14 	incident;
234.15 	(3) allowing sexual assault victims to decide whether to report a case to law enforcement;
234.16 	(4) requiring campus authorities to treat sexual assault victims with dignity;
234.17 	(5) requiring campus authorities to offer sexual assault victims fair and respectful health 
234.18 	care, counseling services, or referrals to such services;
234.19 	(6) preventing campus authorities from suggesting to a victim of sexual assault that the 
234.20 	victim is at fault for the crimes or violations that occurred;
234.21 	(7) preventing campus authorities from suggesting to a victim of sexual assault that the 
234.22 	victim should have acted in a different manner to avoid such a crime;
234.23 	(8) subject to subdivision 10, protecting the privacy of sexual assault victims by only 
234.24 	disclosing data collected under this section to the victim, persons whose work assignments 
234.25 	reasonably require access, and, at a sexual assault victim's request, police conducting a 
234.26 	criminal investigation;
234.27 	(9) an investigation and resolution of a sexual assault complaint by campus disciplinary 
234.28 	authorities;
234.29 	(10) a sexual assault victim's participation in and the presence of the victim's attorney 
234.30 	or other support person who is not a fact witness to the sexual assault at any meeting with 
234.31 	campus officials concerning the victim's sexual assault complaint or campus disciplinary 
234.32 	proceeding concerning a sexual assault complaint;
235.1 	(11) ensuring that a sexual assault victim may decide when to repeat a description of 
235.2 	the incident of sexual assault;
235.3 	(12) notice to a sexual assault victim of the availability of a campus or local program 
235.4 	providing sexual assault advocacy services and information on legal resources;
235.5 	(13) notice to a sexual assault victim of the outcome of any campus disciplinary 
235.6 	proceeding concerning a sexual assault complaint, consistent with laws relating to data 
235.7 	practices;
235.8 	(14) the complete and prompt assistance of campus authorities, at the direction of law 
235.9 	enforcement authorities, in obtaining, securing, and maintaining evidence in connection 
235.10 	with a sexual assault incident;
235.11 	(15) the assistance of campus authorities in preserving for a sexual assault complainant 
235.12 	or victim materials relevant to a campus disciplinary proceeding;
235.13 	(16) during and after the process of investigating a complaint and conducting a campus 
235.14 	disciplinary procedure, the assistance of campus personnel, in cooperation with the 
235.15 	appropriate law enforcement authorities, at a sexual assault victim's request, in shielding 
235.16 	the victim from unwanted contact with the alleged assailant, including transfer of the victim 
235.17 	to alternative classes or to alternative college-owned housing, if alternative classes or housing 
235.18 	are available and feasible;
235.19 	(17) forbidding retaliation, and establishing a process for investigating complaints of 
235.20 	retaliation, against sexual assault victims by campus authorities, the accused, organizations 
235.21 	affiliated with the accused, other students, and other employees;
235.22 	(18) at the request of the victim, providing students who reported sexual assaults to the 
235.23 	institution and subsequently choose to transfer to another postsecondary institution with 
235.24 	information about resources for victims of sexual assault at the institution to which the 
235.25 	victim is transferring; and
235.26 	(19) consistent with laws governing access to student records, providing a student who 
235.27 	reported an incident of sexual assault with access to the student's description of the incident 
235.28 	as it was reported to the institution, including if that student transfers to another postsecondary 
235.29 	institution.

235.30 	Sec. 6. Minnesota Statutes 2016, section 135A.15, subdivision 6, is amended to read:
235.31 		Subd. 6.Data collection and reporting. (a) Postsecondary institutions must annually 
235.32 	report statistics on sexual assault. This report must be prepared in addition to any federally 
236.1 	required reporting on campus security, including reports required by the Jeanne Clery 
236.2 	Disclosure of Campus Security Policy and Campus Crime Statistics Act, United States 
236.3 	Code, title 20, section 1092(f). The report must include, but not be limited to, the number 
236.4 	of incidents of sexual assault reported to the institution in the previous calendar year, as 
236.5 	follows:
236.6 	(1) the number that were investigated by the institution;
236.7 	(2) the number that were referred for a disciplinary proceeding at the institution;
236.8 	(3) the number the victim chose to report to local or state law enforcement;
236.9 	(4) the number for which a campus disciplinary proceeding is pending, but has not 
236.10 	reached a final resolution;
236.11 	(5) the number in which the alleged perpetrator was found responsible by the disciplinary 
236.12 	proceeding at the institution;
236.13 	(6) the number that resulted in any action by the institution greater than a warning issued 
236.14 	to the accused;
236.15 	(7) the number that resulted in a disciplinary proceeding at the institution that closed 
236.16 	without resolution;
236.17 	(8) the number that resulted in a disciplinary proceeding at the institution that closed 
236.18 	without resolution because the accused withdrew from the institution;
236.19 	(9) the number that resulted in a disciplinary proceeding at the institution that closed 
236.20 	without resolution because the victim chose not to participate in the procedure; and
236.21 	(10) the number of reports made through the online reporting system established in 
236.22 	subdivision 5, excluding reports submitted anonymously.
236.23 	(b) If an institution previously submitted a report indicating that one or more disciplinary 
236.24 	proceedings was pending, but had not reached a final resolution, and one or more of those 
236.25 	disciplinary proceedings reached a final resolution within the previous calendar year, that 
236.26 	institution must submit updated totals from the previous year that reflect the outcome of 
236.27 	the pending case or cases.
236.28 	(c) The reports required by this subdivision must be submitted to the Office of Higher 
236.29 	Education by October 1 of each year. Each report must contain the data required under 
236.30 	paragraphs (a) and (b) from the previous calendar year.
236.31 	(d) The commissioner of the Office of Higher Education shall calculate statewide numbers 
236.32 	for each data item reported by an institution under this subdivision. The statewide numbers 
237.1 	must include data from postsecondary institutions that the commissioner could not publish 
237.2 	due to federal laws governing access to student records.
237.3 	(e) The Office of Higher Education shall publish on its Web site:
237.4 	(1) the statewide data calculated under paragraph (d); and
237.5 	(2) the data items required under paragraphs (a) and (b) for each postsecondary institution 
237.6 	in the state.
237.7 	Each postsecondary institution shall publish on the institution's Web site the data items 
237.8 	required under paragraphs (a) and (b) for that institution.
237.9 	(f) Reports and data required under this subdivision must be prepared and published as 
237.10 	summary data, as defined in section 13.02, subdivision 19, and must be consistent with 
237.11 	applicable law governing access to educational data. If an institution or the Office of Higher 
237.12 	Education does not publish data because of applicable law, the publication must explain 
237.13 	why data are not included.
237.14 	(g) By October 1 of each year, the Board of Regents of the University of Minnesota 
237.15 	must submit a report to the chairs and ranking minority members of the legislative committees 
237.16 	with jurisdiction over higher education policy and finance. In addition to the data on sexual 
237.17 	assault incidents described in paragraph (a), the report must include equivalent data on 
237.18 	incidents of sexual harassment, as defined in the board's policy on sexual harassment. The 
237.19 	report is subject to the requirements of paragraph (f).

237.20 	Sec. 7. Minnesota Statutes 2017 Supplement, section 136A.1275, subdivision 2, is amended 
237.21 	to read:
237.22 		Subd. 2.Eligibility. To be eligible for a grant under this section, a teacher candidate 
237.23 	must:
237.24 	(1) be enrolled in a Professional Educator Licensing and Standards Board-approved 
237.25 	teacher preparation program that requires at least 12 weeks of student teaching in order to 
237.26 	be recommended for a full professional teaching license;
237.27 	(2) demonstrate financial need based on criteria established by the commissioner under 
237.28 	subdivision 3;
237.29 	(3) intend to teach in a shortage area or belong to an underrepresented racial or ethnic 
237.30 	group be meeting satisfactory academic progress as defined under section 136A.101, 
237.31 	subdivision 10; and
238.1 	(4) be meeting satisfactory academic progress as defined under section 136A.101, 
238.2 	subdivision 10. intend to teach in a shortage area or belong to an underrepresented racial 
238.3 	or ethnic group. Intent can be documented based on the teacher license field the student is 
238.4 	pursuing or a statement of intent to teach in an economic development region defined as a 
238.5 	shortage area in the year the student receives a grant.

238.6 	Sec. 8. Minnesota Statutes 2017 Supplement, section 136A.1275, subdivision 3, is amended 
238.7 	to read:
238.8 		Subd. 3.Administration; repayment. (a) The commissioner must establish an 
238.9 	application process and other guidelines for implementing this program, including repayment 
238.10 	responsibilities for stipend recipients who do not complete student teaching or who leave 
238.11 	Minnesota to teach in another state during the first year after student teaching.
238.12 	(b) The commissioner must determine each academic year the stipend amount up to 
238.13 	$7,500 based on the amount of available funding, the number of eligible applicants, and the 
238.14 	financial need of the applicants.
238.15 	(c) The percentage of the total award funds available at the beginning of the fiscal year 
238.16 	reserved for teacher candidates who identify as belonging to an underrepresented a racial 
238.17 	or ethnic group underrepresented in the Minnesota teacher workforce must be equal to or 
238.18 	greater than the total percentage of students of underrepresented racial or ethnic groups 
238.19 	underrepresented in the Minnesota teacher workforce as measured under section 120B.35, 
238.20 	subdivision 3. If this percentage cannot be met because of a lack of qualifying candidates, 
238.21 	the remaining amount may be awarded to teacher candidates who intend to teach in a shortage 
238.22 	area.

238.23 	Sec. 9. Minnesota Statutes 2016, section 136A.15, subdivision 8, is amended to read:
238.24 		Subd. 8.Eligible student. "Eligible student" means a student who is officially registered 
238.25 	or accepted for enrollment at an eligible institution in Minnesota or a Minnesota resident 
238.26 	who is officially registered as a student or accepted for enrollment at an eligible institution 
238.27 	in another state or province. Non-Minnesota residents are eligible students if they are enrolled 
238.28 	or accepted for enrollment in a minimum of one course of at least 30 days in length during 
238.29 	the academic year that requires physical attendance at an eligible institution located in 
238.30 	Minnesota. Non-Minnesota resident students enrolled exclusively during the academic year 
238.31 	in correspondence courses or courses offered over the Internet are not eligible students. 
238.32 	Non-Minnesota resident students not physically attending classes in Minnesota due to 
238.33 	enrollment in a study abroad program for 12 months or less are eligible students. 
239.1 	Non-Minnesota residents enrolled in study abroad programs exceeding 12 months are not 
239.2 	eligible students. An eligible student, for section 136A.1701, means a student who gives 
239.3 	informed consent authorizing the disclosure of data specified in section 136A.162, paragraph 
239.4 	(c), to a consumer credit reporting agency.

239.5 	Sec. 10. Minnesota Statutes 2016, section 136A.16, subdivision 1, is amended to read:
239.6 		Subdivision 1.Designation. Notwithstanding chapter 16C, the office is designated as 
239.7 	the administrative agency for carrying out the purposes and terms of sections 136A.15 to 
239.8 	136A.1702 136A.1704. The office may establish one or more loan programs.

239.9 	Sec. 11. Minnesota Statutes 2016, section 136A.16, subdivision 2, is amended to read:
239.10 		Subd. 2.Rules, policies, and conditions. The office shall adopt policies and may 
239.11 	prescribe appropriate rules and conditions to carry out the purposes of sections 136A.15 to 
239.12 	136A.1702. The policies and rules except as they relate to loans under section 136A.1701
239.13 	must be compatible with the provisions of the National Vocational Student Loan Insurance 
239.14 	Act of 1965 and the provisions of title IV of the Higher Education Act of 1965, and any 
239.15 	amendments thereof.

239.16 	Sec. 12. Minnesota Statutes 2016, section 136A.16, subdivision 5, is amended to read:
239.17 		Subd. 5.Agencies. The office may contract with loan servicers, collection agencies, 
239.18 	credit bureaus, or any other person, to carry out the purposes of sections 136A.15 to 
239.19 	136A.1702 136A.1704.

239.20 	Sec. 13. Minnesota Statutes 2016, section 136A.16, subdivision 8, is amended to read:
239.21 		Subd. 8.Investment. Money made available to the office that is not immediately needed 
239.22 	for the purposes of sections 136A.15 to 136A.1702 136A.1704 may be invested by the 
239.23 	office. The money must be invested in bonds, certificates of indebtedness, and other fixed 
239.24 	income securities, except preferred stocks, which are legal investments for the permanent 
239.25 	school fund. The money may also be invested in prime quality commercial paper that is 
239.26 	eligible for investment in the state employees retirement fund. All interest and profits from 
239.27 	such investments inure to the benefit of the office or may be pledged for security of bonds 
239.28 	issued by the office or its predecessors.

240.1 	Sec. 14. Minnesota Statutes 2016, section 136A.16, subdivision 9, is amended to read:
240.2 		Subd. 9.Staff. The office may employ the professional and clerical staff the commissioner 
240.3 	deems necessary for the proper administration of the loan programs established and defined 
240.4 	by sections 136A.15 to 136A.1702 136A.1704.

240.5 	Sec. 15. Minnesota Statutes 2016, section 136A.162, is amended to read:
240.6 	136A.162 CLASSIFICATION OF DATA.
240.7 	(a) Except as provided in paragraphs (b) and (c), data on applicants for financial assistance 
240.8 	collected and used by the office for student financial aid programs administered by that 
240.9 	office are private data on individuals as defined in section 13.02, subdivision 12.
240.10 	(b) Data on applicants may be disclosed to the commissioner of human services to the 
240.11 	extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5).
240.12 	(c) The following data collected in the Minnesota supplemental loan program under 
240.13 	section sections136A.1701and 136A.1704 may be disclosed to a consumer credit reporting 
240.14 	agency only if the borrower and the cosigner give informed consent, according to section 
240.15 	13.05, subdivision 4, at the time of application for a loan:
240.16 	(1) the lender-assigned borrower identification number;
240.17 	(2) the name and address of borrower;
240.18 	(3) the name and address of cosigner;
240.19 	(4) the date the account is opened;
240.20 	(5) the outstanding account balance;
240.21 	(6) the dollar amount past due;
240.22 	(7) the number of payments past due;
240.23 	(8) the number of late payments in previous 12 months;
240.24 	(9) the type of account;
240.25 	(10) the responsibility for the account; and
240.26 	(11) the status or remarks code.

240.27 	Sec. 16. Minnesota Statutes 2016, section 136A.1701, subdivision 7, is amended to read:
240.28 		Subd. 7.Repayment of loans. (a) The office shall establish repayment procedures for 
240.29 	loans made under this section, but in no event shall the period of permitted repayment for 
241.1 	SELF II or SELF III loans exceed ten years from the eligible student's termination of the 
241.2 	student's postsecondary academic or vocational program, or 15 years from the date of the 
241.3 	student's first loan under this section, whichever is less. in accordance with the policies, 
241.4 	rules, and conditions authorized under section 136A.16, subdivision 2. The office will take 
241.5 	into consideration the loan limits and current financial market conditions when establishing 
241.6 	repayment terms.
241.7 	(b) For SELF IV loans, eligible students with aggregate principal loan balances from 
241.8 	all SELF phases that are less than $18,750 shall have a repayment period not exceeding ten 
241.9 	years from the eligible student's graduation or termination date. For SELF IV loans, eligible 
241.10 	students with aggregate principal loan balances from all SELF phases of $18,750 or greater 
241.11 	shall have a repayment period not exceeding 15 years from the eligible student's graduation 
241.12 	or termination date. For SELF IV loans, the loans shall enter repayment no later than seven 
241.13 	years after the first disbursement date on the loan.
241.14 	(c) For SELF loans from phases after SELF IV, eligible students with aggregate principal 
241.15 	loan balances from all SELF phases that are:
241.16 	(1) less than $20,000, must have a repayment period not exceeding ten years from the 
241.17 	eligible student's graduation or termination date;
241.18 	(2) $20,000 up to $40,000, must have a repayment period not exceeding 15 years from 
241.19 	the eligible student's graduation or termination date; and
241.20 	(3) $40,000 or greater, must have a repayment period not exceeding 20 years from the 
241.21 	eligible student's graduation or termination date. For SELF loans from phases after SELF 
241.22 	IV, the loans must enter repayment no later than nine years after the first disbursement date 
241.23 	of the loan.

241.24 	Sec. 17. Minnesota Statutes 2016, section 136A.1702, is amended to read:
241.25 	136A.1702 LEGISLATIVE OVERSIGHT.
241.26 	(a) The office shall notify the chairs of the legislative committees with primary 
241.27 	jurisdiction over higher education finance of any proposed material change to any of its 
241.28 	student loan programs, including loan refinancing under section 136A.1704, prior to making 
241.29 	the change.
241.30 	(b) By December 1 of each year, the commissioner shall submit a report to the chairs 
241.31 	and ranking minority members of the senate and house of representatives committees having 
241.32 	jurisdiction over the Office of Higher Education regarding the balance of the following 
241.33 	accounts in the special revenue fund:
242.1 	(1) the aviation degree loan forgiveness program account established by section 
242.2 	136A.1789, subdivision 2;
242.3 	(2) the teacher shortage loan forgiveness repayment account established by section 
242.4 	136A.1791, subdivision 8;
242.5 	(3) the agricultural education loan forgiveness account established by section 136A.1794, 
242.6 	subdivision 2; and
242.7 	(4) the large animal veterinarian loan forgiveness program account established by section 
242.8 	136A.1795, subdivision 2.

242.9 	Sec. 18. [136A.1705] STUDENT LOAN DEBT COUNSELING.
242.10 		Subdivision 1.Grant. (a) A program is established under the Office of Higher Education 
242.11 	to provide a grant to a Minnesota-based nonprofit qualified debt counseling organization 
242.12 	to provide individual student loan debt repayment counseling to borrowers who are Minnesota 
242.13 	residents concerning loans obtained to attend a postsecondary institution. The number of 
242.14 	individuals receiving counseling may be limited to those capable of being served with 
242.15 	available appropriations for that purpose. A goal of the counseling program is to provide 
242.16 	two counseling sessions to at least 75 percent of borrowers receiving counseling.
242.17 	(b) The purpose of the counseling is to assist borrowers to:
242.18 	(1) understand their loan and repayment options;
242.19 	(2) manage loan repayment; and
242.20 	(3) develop a workable budget based on the borrower's full financial situation regarding 
242.21 	income, expenses, and other debt.
242.22 		Subd. 2.Qualified debt counseling organization. A qualified debt counseling 
242.23 	organization is an organization that:
242.24 	(1) has experience in providing individualized student loan counseling;
242.25 	(2) employs certified financial loan counselors; and
242.26 	(3) is based in Minnesota and has offices at multiple rural and metropolitan area locations 
242.27 	in the state to provide in-person counseling.
242.28 		Subd. 3.Grant application and award. (a) Applications for a grant shall be on a form 
242.29 	created by the commissioner and on a schedule set by the commissioner. Among other 
242.30 	provisions, the application must include a description of:
242.31 	(1) the characteristics of borrowers to be served;
243.1 	(2) the services to be provided and a timeline for implementation of the services;
243.2 	(3) how the services provided will help borrowers manage loan repayment;
243.3 	(4) specific program outcome goals and performance measures for each goal; and
243.4 	(5) how the services will be evaluated to determine whether the program goals were 
243.5 	met.
243.6 	(b) The commissioner shall select one grant recipient for a two-year award every two 
243.7 	years. A grant may be renewed biennially.
243.8 		Subd. 4.Program evaluation. (a) The grant recipient must submit a report to the 
243.9 	commissioner by January 15 of the second year of the grant award. The report must evaluate 
243.10 	and measure the extent to which program outcome goals have been met.
243.11 	(b) The grant recipient must collect, analyze, and report on participation and outcome 
243.12 	data that enable the office to verify the outcomes.
243.13 	(c) The evaluation must include information on the number of borrowers served with 
243.14 	on-time student loan payments, the numbers who brought their loans into good standing, 
243.15 	the number of student loan defaults, the number who developed a monthly budget plan, and 
243.16 	other information required by the commissioner. Recipients of the counseling must be 
243.17 	surveyed on their opinions about the usefulness of the counseling and the survey results 
243.18 	must be included in the report.
243.19 		Subd. 5.Report to legislature. By February 1 of the second year of each grant award, 
243.20 	the commissioner must submit a report to the committees in the legislature with jurisdiction 
243.21 	over higher education finance regarding grant program outcomes.

243.22 	Sec. 19. Minnesota Statutes 2017 Supplement, section 136A.1789, subdivision 2, is 
243.23 	amended to read:
243.24 		Subd. 2.Creation of account. (a) An aviation degree loan forgiveness program account 
243.25 	is established in the special revenue fund to provide qualified pilots and qualified aircraft 
243.26 	technicians with financial assistance in repaying qualified education loans. The commissioner 
243.27 	must use money from the account to establish and administer the aviation degree loan 
243.28 	forgiveness program.
243.29 	(b) Appropriations made to Money in the aviation degree loan forgiveness program 
243.30 	account do is appropriated to the commissioner for purposes of this section, does not cancel, 
243.31 	and isnot cancel and are available until expended.

244.1 	Sec. 20. Minnesota Statutes 2016, section 136A.1791, subdivision 8, is amended to read:
244.2 		Subd. 8.Fund Account established. A teacher shortage loan forgiveness repayment 
244.3 	fund account is created in the special revenue fund for depositing money appropriated to 
244.4 	or received by the commissioner for the program. Money deposited in the fund shall not
244.5 	account is appropriated to the commissioner, does not cancel,revert to any state fund at the 
244.6 	end of any fiscal year but remains in the loan forgiveness repayment fund and is continuously 
244.7 	available for loan forgiveness under this section.

244.8 	Sec. 21. Minnesota Statutes 2016, section 136A.1795, subdivision 2, is amended to read:
244.9 		Subd. 2.Establishment; administration. (a) The commissioner shall establish and 
244.10 	administer a loan forgiveness program for large animal veterinarians who:
244.11 	(1) agree to practice in designated rural areas that are considered underserved; and
244.12 	(2) work full time in a practice that is at least 50 percent involved with the care of food 
244.13 	animals.
244.14 	(b) A large animal veterinarian loan forgiveness program account is established in the 
244.15 	special revenue fund. Money in the account is appropriated to the commissioner to establish 
244.16 	and administer the program under this section. Appropriations to the commissioner for the 
244.17 	program are for transfer to the account. Appropriations made to the program from the account
244.18 	do not cancel and are available until expended.

244.19 	Sec. 22. Minnesota Statutes 2016, section 136A.64, subdivision 1, is amended to read:
244.20 		Subdivision 1.Schools to provide information. As a basis for registration, schools 
244.21 	shall provide the office with such information as the office needs to determine the nature 
244.22 	and activities of the school, including but not limited to the following which shall be 
244.23 	accompanied by an affidavit attesting to its accuracy and truthfulness:
244.24 	(1) articles of incorporation, constitution, bylaws, or other operating documents;
244.25 	(2) a duly adopted statement of the school's mission and goals;
244.26 	(3) evidence of current school or program licenses granted by departments or agencies 
244.27 	of any state;
244.28 	(4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate past 
244.29 	fiscal year including any management letters provided by the independent auditor or, if the 
244.30 	school is a public institution outside Minnesota, an income statement for the immediate past 
244.31 	fiscal year;
245.1 	(5) all current promotional and recruitment materials and advertisements; and
245.2 	(6) the current school catalog and, if not contained in the catalog:
245.3 	(i) the members of the board of trustees or directors, if any;
245.4 	(ii) the current institutional officers;
245.5 	(iii) current full-time and part-time faculty with degrees held or applicable experience;
245.6 	(iv) a description of all school facilities;
245.7 	(v) a description of all current course offerings;
245.8 	(vi) all requirements for satisfactory completion of courses, programs, and degrees;
245.9 	(vii) the school's policy about freedom or limitation of expression and inquiry;
245.10 	(viii) a current schedule of fees, charges for tuition, required supplies, student activities, 
245.11 	housing, and all other standard charges;
245.12 	(ix) the school's policy about refunds and adjustments;
245.13 	(x) the school's policy about granting credit for prior education, training, and experience; 
245.14 	and
245.15 	(xi) the school's policies about student admission, evaluation, suspension, and dismissal.; 
245.16 	and
245.17 	(xii) the school's disclosure to students on the student complaint process under section 
245.18 	136A.672.

245.19 	Sec. 23. Minnesota Statutes 2017 Supplement, section 136A.646, is amended to read:
245.20 	136A.646 ADDITIONAL SECURITY.
245.21 	(a) New schools that have been granted conditional approval for degrees or names to 
245.22 	allow them the opportunity to apply for and receive accreditation under section 136A.65, 
245.23 	subdivision 7, or shall provide a surety bond in a sum equal to ten percent of the net revenue 
245.24 	from tuition and fees in the registered institution's prior fiscal year, but in no case shall the 
245.25 	bond be less than $10,000.
245.26 	(b) Any registered institution that is notified by the United States Department of Education 
245.27 	that it has fallen below minimum financial standards and that its continued participation in 
245.28 	Title IV will be conditioned upon its satisfying either the Zone Alternative, Code of Federal 
245.29 	Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit Alternative, Code 
245.30 	of Federal Regulations, title 34, section 668.175, paragraph (c), shall provide a surety bond 
246.1 	in a sum equal to the "letter of credit" required by the United States Department of Education 
246.2 	in the Letter of Credit Alternative, but in no event shall such bond be less than $10,000 nor 
246.3 	more than $250,000. In the event the letter of credit required by the United States Department 
246.4 	of Education is higher than ten percent of the Title IV, Higher Education Act program funds 
246.5 	received by the institution during its most recently completed fiscal year, the office shall 
246.6 	reduce the office's surety requirement to represent ten percent of the Title IV, Higher 
246.7 	Education Act program funds received by the institution during its most recently completed 
246.8 	fiscal year, subject to the minimum and maximum in this paragraph.
246.9 	(b) (c) In lieu of a bond, the applicant may deposit with the commissioner of management 
246.10 	and budget:
246.11 	(1) a sum equal to the amount of the required surety bond in cash;
246.12 	(2) securities, as may be legally purchased by savings banks or for trust funds, in an 
246.13 	aggregate market value equal to the amount of the required surety bond; or
246.14 	(3) an irrevocable letter of credit issued by a financial institution to the amount of the 
246.15 	required surety bond.
246.16 	(c) (d) The surety of any bond may cancel it upon giving 60 days' notice in writing to 
246.17 	the office and shall be relieved of liability for any breach of condition occurring after the 
246.18 	effective date of cancellation.
246.19 	(d) (e) In the event of a school closure, the additional security must first be used to 
246.20 	destroy any private educational data under section 13.32 left at a physical campus in 
246.21 	Minnesota after all other governmental agencies have recovered or retrieved records under 
246.22 	their record retention policies. Any remaining funds must then be used to reimburse tuition 
246.23 	and fee costs to students that were enrolled at the time of the closure or had withdrawn in 
246.24 	the previous 120 calendar days but did not graduate. Priority for refunds will be given to 
246.25 	students in the following order:
246.26 	(1) cash payments made by the student or on behalf of a student;
246.27 	(2) private student loans; and
246.28 	(3) Veteran Administration education benefits that are not restored by the Veteran 
246.29 	Administration. If there are additional security funds remaining, the additional security 
246.30 	funds may be used to cover any administrative costs incurred by the office related to the 
246.31 	closure of the school.

247.1 	Sec. 24. Minnesota Statutes 2017 Supplement, section 136A.672, is amended by adding 
247.2 	a subdivision to read:
247.3 		Subd. 6.Disclosure. Schools must disclose on their Web site, student handbook, and 
247.4 	student catalog the student complaint process under this section to students.

247.5 	Sec. 25. Minnesota Statutes 2017 Supplement, section 136A.822, subdivision 6, is amended 
247.6 	to read:
247.7 		Subd. 6.Bond. (a) No license shall be issued to any private career school which 
247.8 	maintains, conducts, solicits for, or advertises within the state of Minnesota any program, 
247.9 	unless the applicant files with the office a continuous corporate surety bond written by a 
247.10 	company authorized to do business in Minnesota conditioned upon the faithful performance 
247.11 	of all contracts and agreements with students made by the applicant.
247.12 	(b)(1) The amount of the surety bond shall be ten percent of the preceding year's net 
247.13 	income revenue from student tuition, fees, and other required institutional charges collected, 
247.14 	but in no event less than $10,000, except that a private career school may deposit a greater 
247.15 	amount at its own discretion. A private career school in each annual application for licensure 
247.16 	must compute the amount of the surety bond and verify that the amount of the surety bond 
247.17 	complies with this subdivision. A private career school that operates at two or more locations 
247.18 	may combine net income revenue from student tuition, fees, and other required institutional 
247.19 	charges collected for all locations for the purpose of determining the annual surety bond 
247.20 	requirement. The net revenue from tuition and fees used to determine the amount of the 
247.21 	surety bond required for a private career school having a license for the sole purpose of 
247.22 	recruiting students in Minnesota shall be only that paid to the private career school by the 
247.23 	students recruited from Minnesota.
247.24 	(2) A person required to obtain a private career school license due to the use of 
247.25 	"academy," "institute," "college," or "university" in its name and which is also licensed by 
247.26 	another state agency or board, except not including those schools licensed exclusively in 
247.27 	order to participate in state grants or SELF loan financial aid programs, shall be required 
247.28 	to provide a school bond of $10,000.
247.29 	(c) The bond shall run to the state of Minnesota and to any person who may have a cause 
247.30 	of action against the applicant arising at any time after the bond is filed and before it is 
247.31 	canceled for breach of any contract or agreement made by the applicant with any student. 
247.32 	The aggregate liability of the surety for all breaches of the conditions of the bond shall not 
247.33 	exceed the principal sum deposited by the private career school under paragraph (b). The 
247.34 	surety of any bond may cancel it upon giving 60 days' notice in writing to the office and 
248.1 	shall be relieved of liability for any breach of condition occurring after the effective date 
248.2 	of cancellation.
248.3 	(d) In lieu of bond, the applicant may deposit with the commissioner of management 
248.4 	and budget a sum equal to the amount of the required surety bond in cash, an irrevocable 
248.5 	letter of credit issued by a financial institution equal to the amount of the required surety 
248.6 	bond, or securities as may be legally purchased by savings banks or for trust funds in an 
248.7 	aggregate market value equal to the amount of the required surety bond.
248.8 	(e) Failure of a private career school to post and maintain the required surety bond or 
248.9 	deposit under paragraph (d) may result in denial, suspension, or revocation of the school's 
248.10 	license.

248.11 	Sec. 26. Minnesota Statutes 2016, section 136A.822, subdivision 10, is amended to read:
248.12 		Subd. 10.Catalog, brochure, or electronic display. Before a license is issued to a 
248.13 	private career school, the private career school shall furnish to the office a catalog, brochure, 
248.14 	or electronic display including:
248.15 	(1) identifying data, such as volume number and date of publication;
248.16 	(2) name and address of the private career school and its governing body and officials;
248.17 	(3) a calendar of the private career school showing legal holidays, beginning and ending 
248.18 	dates of each course quarter, term, or semester, and other important dates;
248.19 	(4) the private career school policy and regulations on enrollment including dates and 
248.20 	specific entrance requirements for each program;
248.21 	(5) the private career school policy and regulations about leave, absences, class cuts, 
248.22 	make-up work, tardiness, and interruptions for unsatisfactory attendance;
248.23 	(6) the private career school policy and regulations about standards of progress for the 
248.24 	student including the grading system of the private career school, the minimum grades 
248.25 	considered satisfactory, conditions for interruption for unsatisfactory grades or progress, a 
248.26 	description of any probationary period allowed by the private career school, and conditions 
248.27 	of reentrance for those dismissed for unsatisfactory progress;
248.28 	(7) the private career school policy and regulations about student conduct and conditions 
248.29 	for dismissal for unsatisfactory conduct;
248.30 	(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 
248.31 	activities, laboratory fees, service charges, rentals, deposits, and all other charges;
249.1 	(9) the private career school policy and regulations, including an explanation of section 
249.2 	136A.827, about refunding tuition, fees, and other charges if the student does not enter the 
249.3 	program, withdraws from the program, or the program is discontinued;
249.4 	(10) a description of the available facilities and equipment;
249.5 	(11) a course outline syllabus for each course offered showing course objectives, subjects 
249.6 	or units in the course, type of work or skill to be learned, and approximate time, hours, or 
249.7 	credits to be spent on each subject or unit;
249.8 	(12) the private career school policy and regulations about granting credit for previous 
249.9 	education and preparation;
249.10 	(13) a notice to students relating to the transferability of any credits earned at the private 
249.11 	career school to other institutions;
249.12 	(14) a procedure for investigating and resolving student complaints; and
249.13 	(15) the name and address of the office.; and
249.14 	(16) the student complaint process and rights under section 136A.8295.
249.15 	A private career school that is exclusively a distance education school is exempt from 
249.16 	clauses (3) and (5).

249.17 	Sec. 27. Minnesota Statutes 2017 Supplement, section 136A.8295, is amended by adding 
249.18 	a subdivision to read:
249.19 		Subd. 6.Disclosure. Schools must disclose on their Web site, student handbook, and 
249.20 	student catalog the student complaint process under this section to students.

249.21 	Sec. 28. Minnesota Statutes 2016, section 136A.901, subdivision 1, is amended to read:
249.22 		Subdivision 1.Grant program. (a) The commissioner shall establish a grant program 
249.23 	to award grants to institutions in Minnesota for research into spinal cord injuries and traumatic 
249.24 	brain injuries. Grants shall be awarded to conduct research into new and innovative treatments 
249.25 	and rehabilitative efforts for the functional improvement of people with spinal cord and 
249.26 	traumatic brain injuries. Research topics may include, but are not limited to, pharmaceutical, 
249.27 	medical device, brain stimulus, and rehabilitative approaches and techniques. The 
249.28 	commissioner, in consultation with the advisory council established under section 136A.902, 
249.29 	shall award 50 percent of the grant funds for research involving spinal cord injuries and 50 
249.30 	percent to research involving traumatic brain injuries. In addition to the amounts appropriated 
249.31 	by law, the commissioner may accept additional funds from private and public sources. 
250.1 	Amounts received from these sources are appropriated to the commissioner for the purposes 
250.2 	of issuing grants under this section.
250.3 	(b) A spinal cord and traumatic brain injury grant account is established in the special 
250.4 	revenue fund. Money in the account is appropriated to the commissioner to make grants 
250.5 	and to administer the grant program under this section. Appropriations to the commissioner 
250.6 	for the program are for transfer to the account. Appropriations from the account do not 
250.7 	cancel and are available until expended.

250.8 	Sec. 29. Minnesota Statutes 2016, section 137.0245, subdivision 1, is amended to read:
250.9 		Subdivision 1.Establishment. A Regent Candidate Advisory Council is established in 
250.10 	the legislative branch to assist in determining criteria for, and identifying and recruiting
250.11 	membership on the Board of Regents, to identify and recruit qualified regent candidates for 
250.12 	membership on the Board of Regents, and making to make recommendations to the joint 
250.13 	legislative committee described in section 137.0246, subdivision 2.

250.14 	Sec. 30. Minnesota Statutes 2016, section 137.0245, subdivision 2, is amended to read:
250.15 		Subd. 2.Membership. The Regent Candidate Advisory Council shall consist of 24 
250.16 	members. Twelve members shall be appointed by the Subcommittee on Committees of the 
250.17 	Committee on Rules and Administration of the senate. Twelve members shall be appointed 
250.18 	by the speaker of the house. Each appointing authority must appoint one member who is a 
250.19 	student enrolled in a degree program at the University of Minnesota at the time of 
250.20 	appointment. No more than one-third of the members appointed by each appointing authority 
250.21 	may be current or former legislators. No more than two-thirds of the members appointed 
250.22 	by each appointing authority may belong to the same political party; however, political 
250.23 	activity or affiliation is not required for the appointment of any member. Geographical 
250.24 	representation must be taken into consideration when making appointments. Each appointing 
250.25 	authority must appoint at least one but no more than three members from each congressional 
250.26 	district. The member must reside in the congressional district he or she represents at the 
250.27 	time of appointment. Section 15.0575 shall govern the advisory council, except that:
250.28 	(1) the members shall be appointed to six-year terms with one-third appointed each 
250.29 	even-numbered year; and
250.30 	(2) student members are appointed to two-year terms with two students appointed each 
250.31 	even-numbered year.
250.32 	A member may not serve more than two full terms.

251.1 	EFFECTIVE DATE. This section is effective for appointments made on or after July 
251.2 	1, 2018.

251.3 	Sec. 31. Minnesota Statutes 2016, section 137.0245, subdivision 4, is amended to read:
251.4 		Subd. 4.Recommendations. (a) The advisory council shall recommend at least two and 
251.5 	not more than four candidates. By January 15 of each odd-numbered year, the advisory 
251.6 	council shall submit its recommendations to the joint legislative committee described in 
251.7 	section 137.0246, subdivision 2.
251.8 	(b) The advisory council At the same time the advisory council submits its 
251.9 	recommendations, the council must submit a report to the joint committee on which includes: 
251.10 	(1) the needs criterion identified under subdivision 3, paragraph (c), at the same time it 
251.11 	submits its recommendations; (2) a detailed description of all methods and tools used to 
251.12 	screen each candidate; and (3) the name of the member or staff person who screened each 
251.13 	candidate.

251.14 	Sec. 32. Minnesota Statutes 2016, section 137.0245, subdivision 5, is amended to read:
251.15 		Subd. 5.Support services. The Legislative Coordinating Commission shall collect 
251.16 	application materials from regent candidates, perform background checks on regent 
251.17 	candidates at the direction of the chairs and ranking minority members of the legislative 
251.18 	committees with jurisdiction over higher education policy and finance, and forward all 
251.19 	materials to the advisory council. The Legislative Coordinating Commission shall provide 
251.20 	administrative and support services for the advisory council.

251.21 	Sec. 33. Minnesota Statutes 2017 Supplement, section 298.2215, is amended to read:
251.22 	298.2215 COUNTY SCHOLARSHIP PROGRAM ENDOWMENT ACCOUNT.
251.23 		Subdivision 1.Establishment Account established. A county board of commissioners 
251.24 	may establish a scholarship fund from an endowment account and may deposit into the 
251.25 	account any unencumbered revenue received pursuant to section 298.018, 298.28, 298.39, 
251.26 	298.396, or 298.405 or any law imposing a tax upon severed mineral values. Scholarships 
251.27 	must be used at a two-year Minnesota State Colleges and Universities institution within the 
251.28 	county. The county shall establish procedures for applying for and distributing the 
251.29 	scholarships The county board may deposit into the account private contributions, gifts, or 
251.30 	grants. Any interest or profit accruing from the investment of these sums is credited to the 
251.31 	account.
252.1 		Subd. 1a.Use of funds. Income derived from the investment of the principal in the 
252.2 	account must be used to provide scholarships to eligible applicants. Scholarships must be 
252.3 	used at a two-year Minnesota State Colleges and Universities institution within the county. 
252.4 	The county board shall establish procedures for applying for and distributing the scholarships.
252.5 		Subd. 2.Eligibility. An applicant for a scholarship under this section must be a resident 
252.6 	of the county at the time of the applicant's high school graduation. The county board may 
252.7 	establish additional eligibility criteria.
252.8 		Subd. 3.Investment. The county board may:
252.9 	(1) deposit part or all of the endowment account funds as provided in chapter 118A; or
252.10 	(2) enter into an agreement with the State Board of Investment to invest all or part of 
252.11 	the endowment account funds in investments under section 11A.24, on behalf of the county.
252.12 		Subd. 4.Audits. The account is subject to audit by the state auditor.

252.13 	Sec. 34. Laws 2017, chapter 89, article 1, section 2, subdivision 18, is amended to read:

252.14
252.15	Subd. 18.MNSCU Two-Year Public College 
Program
 		3,481,000
2,481,000
		-0-
	
252.16 	(a) $2,780,000 $1,780,000 in fiscal year 2018 
252.17 	is for two-year public college program grants 
252.18 	under Laws 2015, chapter 69, article 3, section 
252.19 	20.
252.20 	(b) $545,000 in fiscal year 2018 is to provide 
252.21 	mentoring and outreach as specified under 
252.22 	Laws 2015, chapter 69, article 3, section 20.
252.23 	(c) $156,000 in fiscal year 2018 is for 
252.24 	information technology and administrative 
252.25 	costs associated with implementation of the 
252.26 	grant program.

252.27 	EFFECTIVE DATE. This section is effective June 30, 2018.

252.28 	Sec. 35. Laws 2017, chapter 89, article 1, section 2, subdivision 20, is amended to read:

252.29
252.30	Subd. 20.Spinal Cord Injury and Traumatic 
Brain Injury Research Grant Program
 		3,000,000
		3,000,000
	
253.1 	For spinal cord injury and traumatic brain 
253.2 	injury research grants authorized under 
253.3 	Minnesota Statutes, section 136A.901.
253.4 	For transfer to the spinal cord and traumatic 
253.5 	brain injury grant account in the special 
253.6 	revenue fund under Minnesota Statutes, 
253.7 	section 136A.901, subdivision 1.
253.8 	The commissioner may use no more than three 
253.9 	percent of this appropriation the amount 
253.10 	transferred under this subdivision to administer 
253.11 	the grant program under this subdivision.

253.12 	Sec. 36. Laws 2017, chapter 89, article 1, section 2, subdivision 29, is amended to read:

253.13
253.14	Subd. 29.Emergency Assistance for 
Postsecondary Students
 		175,000
		175,000
	
253.15 	(a) This appropriation is for the Office of 
253.16 	Higher Education to allocate grant funds on a 
253.17 	matching basis to schools eligible institutions 
253.18 	as defined under Minnesota Statutes, section 
253.19 	136A.103, located in Minnesota with a 
253.20 	demonstrable homeless student population.
253.21 	(b) This appropriation shall be used to meet 
253.22 	immediate student needs that could result in 
253.23 	a student not completing the term or their 
253.24 	program including, but not limited to, 
253.25 	emergency housing, food, and transportation. 
253.26 	Emergency assistance does not impact the 
253.27 	amount of state financial aid received.
253.28 	(c) The commissioner shall determine the 
253.29 	application process and the grant amounts. 
253.30 	Any balance in the first year does not cancel 
253.31 	but shall be available in the second year. The 
253.32 	Office of Higher Education shall partner with 
253.33 	interested postsecondary institutions, other 
254.1 	state agencies, and student groups to establish 
254.2 	the programs.

254.3 	Sec. 37. Laws 2017, chapter 89, article 1, section 2, subdivision 31, is amended to read:

254.4	Subd. 31.Teacher Shortage Loan Forgiveness
 		200,000
		200,000
	
254.5 	For transfer to the teacher shortage loan 
254.6 	forgiveness program repayment account in the 
254.7 	special revenue fund under Minnesota 
254.8 	Statutes, section 136A.1791, subdivision 8.
254.9 	The commissioner may use no more than three 
254.10 	percent of this appropriationthe amount 
254.11 	transferred under this subdivision to administer 
254.12 	the program under this subdivision.

254.13 	Sec. 38. Laws 2017, chapter 89, article 1, section 2, subdivision 32, is amended to read:

254.14
254.15	Subd. 32.Large Animal Veterinarian Loan 
Forgiveness Program
 		375,000
		375,000
	
254.16 	For transfer to the large animal veterinarian 
254.17 	loan forgiveness program account in the 
254.18 	special revenue fund under Minnesota 
254.19 	Statutes, section 136A.1795, subdivision 2.

254.20 	Sec. 39. Laws 2017, chapter 89, article 1, section 2, subdivision 33, is amended to read:

254.21
254.22	Subd. 33.Agricultural Educators Loan 
Forgiveness
 		50,000
		50,000
	
254.23 	For deposit in transfer to the agricultural 
254.24 	education loan forgiveness account in the 
254.25 	special revenue fund under Minnesota 
254.26 	Statutes, section 136A.1794, subdivision 2.

254.27 	Sec. 40. Laws 2017, chapter 89, article 1, section 2, subdivision 34, is amended to read:

254.28
254.29	Subd. 34.Aviation Degree Loan Forgiveness 
Program
 		25,000
		25,000
	
254.30 	For transfer to the aviation degree loan 
254.31 	forgiveness program account in the special 
255.1 	revenue fund under Minnesota Statutes, 
255.2 	section 136A.1789, subdivision 2.

255.3 	Sec. 41. Laws 2017, chapter 89, article 1, section 2, subdivision 40, is amended to read:

255.4	Subd. 40.Transfers
 					
255.5 	The commissioner of the Office of Higher 
255.6 	Education may transfer unencumbered 
255.7 	balances from the appropriations in this 
255.8 	section to the state grant appropriation, the 
255.9 	interstate tuition reciprocity appropriation, the 
255.10 	child care grant appropriation, the Indian 
255.11 	scholarship appropriation, intervention for 
255.12 	college attendance program grants 
255.13 	appropriation, summer academic enrichment 
255.14 	program appropriation, student-parent 
255.15 	information appropriation, the state 
255.16 	work-study appropriation, the get ready 
255.17 	appropriation, and the public safety officers' 
255.18 	survivors appropriation. Transfers from the 
255.19 	child care or state work-study appropriations 
255.20 	may only be made to the extent there is a 
255.21 	projected surplus in the appropriation. A 
255.22 	transfer may be made only with prior written 
255.23 	notice to the chairs and ranking minority 
255.24 	members of the senate and house of 
255.25 	representatives committees with jurisdiction 
255.26 	over higher education finance.

255.27 	Sec. 42. AFFORDABLE TEXTBOOK PLAN AND REPORT.
 255.28 	The Board of Trustees of the Minnesota State Colleges and Universities shall develop 
255.29 	a plan to increase the use of affordable textbooks and instructional materials. The board 
255.30 	must explore and study registration software or other systems and methods to disclose or 
255.31 	display the cost of all textbooks and instructional materials required for a course at or prior 
255.32 	to course registration. The plan must describe the systems or methods examined and the 
255.33 	results of the study. The plan must establish a goal for the percentage of all courses offered 
255.34 	at state colleges and universities that will use affordable textbooks and instructional materials. 
256.1 	The plan must identify and describe key terms, including "affordable textbook," "instructional 
256.2 	material," and "course." The board must submit the plan to the chairs and ranking minority 
256.3 	members of the legislative committees with jurisdiction over higher education by January 
256.4 	15, 2020.

256.5 	Sec. 43. TEACHER PREPARATION PROGRAM DESIGN GRANT.
 256.6 	The commissioner of the Office of Higher Education shall make a grant to an institution 
256.7 	of higher education, defined under Minnesota Statutes, section 135A.51, subdivision 5, to 
256.8 	explore, design, and plan for a teacher preparation program leading to licensure as a teacher 
256.9 	of the blind or visually impaired, consistent with Minnesota Rules, part 8710.5100. The 
256.10 	commissioner may develop an application process and guidelines, as necessary, and may 
256.11 	use up to two percent of the appropriation for administrative costs. The grant recipient shall 
256.12 	submit a report describing the plan and identifying potential ongoing costs for the program 
256.13 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
256.14 	over higher education finance and policy no later than January 15, 2020.

256.15 	Sec. 44. UNIVERSITY OF MINNESOTA; APPEAL PROCESS FOR SEXUAL 
256.16 	MISCONDUCT FINDINGS INVOLVING EMPLOYEES.
 256.17 	The Board of Regents of the University of Minnesota is requested to amend its sexual 
256.18 	misconduct policies to:
256.19 	(1) provide a process for accused university employees and their victims to appeal 
256.20 	findings of the university's Office of Equal Opportunity and Affirmative Action before an 
256.21 	impartial decision maker; and
256.22 	(2) require the office, at the conclusion of a sexual misconduct investigation, to provide 
256.23 	notice to accused university employees and their victims of any appeal rights.

256.24 	Sec. 45.  REPEALER.
 256.25 	Minnesota Statutes 2016, sections 136A.15, subdivisions 2 and 7; and 136A.1701, 
256.26 	subdivision 12, are repealed.

256.27 	ARTICLE 23
256.28 	TRANSPORTATION APPROPRIATIONS

256.29	Section 1. APPROPRIATIONS.
 	
257.1 	The sums shown in the column under "Appropriations" are added to the appropriations 
257.2 	in Laws 2017, First Special Session chapter 3, article 1, and Laws 2017, First Special Session 
257.3 	chapter 4, article 1, to the agencies and for the purposes specified in this article. The 
257.4 	appropriations are from the general fund, or another named fund, and are available for the 
257.5 	fiscal years indicated for each purpose. Amounts for "Total Appropriation" and sums shown 
257.6 	in the corresponding columns marked "Appropriations by Fund" are summary only and do 
257.7 	not have legal effect. The figures "2018" and "2019" used in this article mean that the 
257.8 	addition to the appropriation listed under them is available for the fiscal year ending June 
257.9 	30, 2018, or June 30, 2019, respectively.

257.10				APPROPRIATIONS
	
257.11				Available for the Year
	
257.12				Ending June 30
	
257.13					2018
		2019

257.14
257.15	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

257.16	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	66,860,000

257.17	Appropriations by Fund
	
257.18		2018
	2019
	
257.19	General
	-0-
	34,860,000
	
257.20	Special Revenue
	-0-
	1,000,000
	
257.21	Trunk Highway
	-0-
	30,000,000
	
257.22	State Airport
	-0-
	1,000,000
	
257.23 	The appropriations in this section are to the 
257.24 	commissioner of transportation. The amounts 
257.25 	that may be spent for each purpose are 
257.26 	specified in the subdivisions in this section.

257.27	Subd. 2.Aeronautics
 		-0-
		2,250,000

257.28	Appropriations by Fund
	
257.29		2018
	2019
	
257.30	General
	-0-
	1,250,000
	
257.31	Airports
	-0-
	1,000,000
	
257.32 	This appropriation is for a grant to the city of 
257.33 	Rochester to acquire and install a CAT II 
257.34 	approach system at the Rochester International 
257.35 	Airport. This appropriation is available when 
258.1 	the commissioner of transportation determines 
258.2 	that sufficient resources have been committed 
258.3 	to complete the project. This is a onetime 
258.4 	appropriation and is available until June 30, 
258.5 	2023.

258.6	Subd. 3.Rail Service Improvement
 		-0-
		1,000,000
	
258.7 	This appropriation is from the rail service 
258.8 	improvement account in the special revenue 
258.9 	fund under the rail service improvement 
258.10 	program in Minnesota Statutes, section 222.50, 
258.11 	for a grant to the Minnesota Valley Regional 
258.12 	Rail Authority to rehabilitate a portion of the 
258.13 	railroad track between Winthrop and Hanley 
258.14 	Falls. Railroad track rehabilitation under the 
258.15 	grant includes but is not limited to 
258.16 	environmental analysis and remediation, 
258.17 	predesign, design, and rehabilitation or 
258.18 	replacement of bridges or culverts. This grant 
258.19 	is in addition to any other appropriation, or 
258.20 	other grant, loan, or loan guarantee for this 
258.21 	project made by the commissioner under 
258.22 	Minnesota Statutes, sections 222.46 to 222.62. 
258.23 	This is a onetime appropriation.

258.24	Subd. 4.State Roads

258.25	(a) Program Delivery
		-0-
		10,400,000
	
258.26 	$5,400,000 in the second year is for a grant to 
258.27 	the city of Virginia to repay loans incurred by 
258.28 	the city for costs related to utility relocation 
258.29 	for the U.S. Highway 53 project. This is a 
258.30 	onetime appropriation.
258.31 	$5,000,000 in the second year is for 
258.32 	environmental analysis and preliminary 
258.33 	engineering for the grade separation and 
258.34 	realignment of the bridge on marked Trunk 
259.1 	Highway 27 in the city of Little Falls. This is 
259.2 	a onetime appropriation.

259.3	(b) State Road Construction
		-0-
		20,000,000
	
259.4 	This appropriation is from the trunk highway 
259.5 	fund for trunk highway reconstruction or 
259.6 	resurfacing in calendar year 2019, 2020, or 
259.7 	2021 that includes establishment of one or 
259.8 	more temporary lanes of travel, provided that 
259.9 	the commissioner must establish additional 
259.10 	permanent general purpose lanes on the 
259.11 	segment if: (1) the project is on an interstate 
259.12 	highway; (2) the project is located outside of 
259.13 	a Department of Transportation district 
259.14 	containing a city of the first class; (3) the total 
259.15 	project cost estimate is at least $30,000,000; 
259.16 	and (4) the annual average daily traffic is at 
259.17 	least 40,000 at any point within the project 
259.18 	limits. This is a onetime appropriation and is 
259.19 	available until June 30, 2022.

259.20	(c) Corridors of Commerce
		-0-
		10,000,000
	
259.21 	This appropriation is from the trunk highway 
259.22 	fund for the corridors of commerce program 
259.23 	under Minnesota Statutes, section 161.088. 
259.24 	This is a onetime appropriation.

259.25	Subd. 5.Local Roads

259.26	(a) Small Cities Assistance
		-0-
		8,500,000
	
259.27 	This appropriation is for the small cities 
259.28 	assistance program under Minnesota Statutes, 
259.29 	section 162.145. This is a onetime 
259.30 	appropriation.

259.31	(b) Town Roads
		-0-
		4,000,000
	
259.32 	This appropriation is for town roads, to be 
259.33 	distributed in the manner provided under 
260.1 	Minnesota Statutes, section 162.081. This is 
260.2 	a onetime appropriation.

260.3	(c) Local Bridges
		-0-
		10,710,000
	
260.4 	This appropriation is for local bridges under 
260.5 	Minnesota Statutes, section 174.50. This is a 
260.6 	onetime appropriation.

260.7	Subd. 6.Transfer; Rail Service Improvement
 					
260.8 	Before August 1, 2018, the commissioner of 
260.9 	management and budget must transfer 
260.10 	$3,000,000 from the general fund to the rail 
260.11 	service improvement account in the special 
260.12 	revenue fund. This is a onetime transfer.

260.13	Sec. 3. METROPOLITAN COUNCIL
 	$
	-0-
	$
	2,100,000
	
260.14 	This appropriation is to the Metropolitan 
260.15 	Council for financial assistance to replacement 
260.16 	service providers under Minnesota Statutes, 
260.17 	section 473.388, for capital improvements, 
260.18 	including bus replacement, associated with 
260.19 	the suburb-to-suburb transit project authorized 
260.20 	under Laws 2015, chapter 75, article 1, section 
260.21 	4. This is a onetime appropriation.

260.22	Sec. 4. DEPARTMENT OF PUBLIC SAFETY

260.23
260.24	Subdivision 1.Minnesota Licensing and 
Registration System (MNLARS)
 	$
	-0-
	$
	13,730,000

260.25	Appropriations by Fund
	
260.26		2018
	2019
	
260.27	General
	-0-
	12,830,000
	
260.28
260.29	Driver and Vehicle 
Services
	-0-
	900,000
	
260.30 	This appropriation is to the commissioner of 
260.31 	public safety.
260.32 	The appropriation in fiscal year 2019 is for 
260.33 	contracted technical staff and technical costs 
261.1 	related to continued development, 
261.2 	improvement, operations, and deployment of 
261.3 	MNLARS, and may be expended only for (1) 
261.4 	contracting to perform software development 
261.5 	on the vehicle services component of 
261.6 	MNLARS, and (2) technology costs.
261.7 	The appropriation in this subdivision must not 
261.8 	be expended on additional full- or part-time 
261.9 	employees employed by the Department of 
261.10 	Public Safety.
261.11 	The appropriation in this subdivision is subject 
261.12 	to the quarterly review process established in 
261.13 	Laws 2018, chapter 101, section 4, subdivision 
261.14 	5.
261.15 	Of the appropriation from the driver and 
261.16 	vehicle services fund, $200,000 is from the 
261.17 	vehicle services operating account and 
261.18 	$700,000 is from the driver services operating 
261.19 	account.
261.20 	The base from the general fund is $2,600,000 
261.21 	in fiscal year 2020 and $0 in fiscal year 2021. 
261.22 	The base from the vehicle services operating 
261.23 	account is $700,000 in fiscal year 2020 and 
261.24 	$0 in fiscal year 2021.The base from the driver 
261.25 	services operating account is $2,200,000 in 
261.26 	fiscal year 2020 and $0 in fiscal year 2021. 
261.27 	The planning estimates in fiscal year 2020 
261.28 	may only be used for a FAST Enterprise 
261.29 	contract payment related to the driver licensing 
261.30 	system.

261.31
261.32	Subd. 2.Transfer; Driver and Vehicle Services 
Technology Account
 					
261.33 	By July 1, 2018, the unencumbered balance 
261.34 	in the driver and vehicle services technology 
261.35 	account in the special revenue fund is 
262.1 	transferred to the driver and vehicle services 
262.2 	technology account in the driver and vehicle 
262.3 	services fund.

262.4
262.5	Subd. 3.Transfer; Driver Services Operating 
Account
 					
262.6 	By July 1, 2018, the unencumbered balance 
262.7 	in the driver services operating account in the 
262.8 	special revenue fund is transferred to the driver 
262.9 	services operating account in the driver and 
262.10 	vehicle services fund.

262.11
262.12	Subd. 4.Transfer; Vehicle Services Operating 
Account
 					
262.13 	By July 1, 2018, the unencumbered balance 
262.14 	in the vehicle services operating account in 
262.15 	the special revenue fund is transferred to the 
262.16 	vehicle services operating account in the driver 
262.17 	and vehicle services fund.

262.18 	EFFECTIVE DATE. This section is effective June 1, 2018.

262.19
262.20	Sec. 5. DEPARTMENT OF MANAGEMENT 
AND BUDGET
 	$
	-0-
	$
	5,000,000
	
262.21 	This appropriation is to the commissioner of 
262.22 	management and budget for reimbursement 
262.23 	grants to deputy registrars under section 10. 
262.24 	This is a onetime appropriation.

262.25 	Sec. 6. Laws 2017, First Special Session chapter 3, article 1, section 2, subdivision 2, is 
262.26 	amended to read:

262.27	Subd. 2.Multimodal Systems
 					
262.28 	(a) Aeronautics

262.29	(1) Airport Development and Assistance
		26,001,000
		16,598,000
	
262.30 	This appropriation is from the state airports 
262.31 	fund and must be spent according to 
262.32 	Minnesota Statutes, section 360.305, 
262.33 	subdivision 4.
263.1 	Notwithstanding Minnesota Statutes, section 
263.2 	16A.28, subdivision 6, this appropriation is 
263.3 	available for five years after the year of the 
263.4 	appropriation. If the appropriation for either 
263.5 	year is insufficient, the appropriation for the 
263.6 	other year is available for it.
263.7 	$6,619,000 in the first year is for a grant to 
263.8 	the Duluth Airport Authority for 
263.9 	improvements at the Duluth International 
263.10 	Airport and the Sky Harbor Airport in 
263.11 	accordance with Minnesota Statutes, section 
263.12 	360.017. For the purposes of this 
263.13 	appropriation, the commissioner may waive 
263.14 	the requirements of Minnesota Statutes, 
263.15 	section 360.305, subdivision 4, paragraph (b). 
263.16 	This appropriation may be used to reimburse 
263.17 	the Authority for costs incurred after March 
263.18 	1, 2015. This is a onetime appropriation.
263.19 	$2,334,000 in the first year is for a grant to 
263.20 	the city of Rochester for improvements to the 
263.21 	passenger terminal building at the Rochester 
263.22 	International Airport in accordance with 
263.23 	Minnesota Statutes, section 360.017. For the 
263.24 	purposes of this appropriation, the 
263.25 	commissioner of transportation may waive the 
263.26 	requirements of Minnesota Statutes, section 
263.27 	360.305, subdivision 4, paragraph (b). This 
263.28 	appropriation may be used to reimburse the 
263.29 	city for costs incurred after May 1, 2016. This 
263.30 	is a onetime appropriation.
263.31 	Notwithstanding Minnesota Statutes, section 
263.32 	360.017, $250,000 in the first year is for a 
263.33 	grant to the city of St. Cloud for an air 
263.34 	transport optimization planning study for the 
263.35 	St. Cloud Regional Airport. The study must 
264.1 	be comprehensive and market-based, using 
264.2 	economic development and air service 
264.3 	expertise to research, analyze, and develop 
264.4 	models and strategies that maximize the return 
264.5 	on investments made to enhance the use and 
264.6 	impact of the St. Cloud Regional Airport. By 
264.7 	January 5, 2018, the city of St. Cloud shall 
264.8 	submit a report to the governor and the 
264.9 	members and staff of the legislative 
264.10 	committees with jurisdiction over capital 
264.11 	investment, transportation, and economic 
264.12 	development with recommendations based on 
264.13 	the findings of the study. This is a onetime 
264.14 	appropriation.
264.15 	If the commissioner of transportation 
264.16 	determines that a balance remains in the state 
264.17 	airports fund following the appropriations 
264.18 	made in this article and that the appropriations 
264.19 	made are insufficient for advancing airport 
264.20 	development and assistance projects, an 
264.21 	amount necessary to advance the projects, not 
264.22 	to exceed the balance in the state airports fund, 
264.23 	is appropriated in each year to the 
264.24 	commissioner and must be spent according to 
264.25 	Minnesota Statutes, section 360.305, 
264.26 	subdivision 4. Within two weeks of a 
264.27 	determination under this contingent 
264.28 	appropriation, the commissioner of 
264.29 	transportation must notify the commissioner 
264.30 	of management and budget and the chairs, 
264.31 	ranking minority members, and staff of the 
264.32 	legislative committees with jurisdiction over 
264.33 	transportation finance concerning the funds 
264.34 	appropriated. Funds appropriated under this 
264.35 	contingent appropriation do not adjust the base 
264.36 	for fiscal years 2020 and 2021.
265.1 	The base is $15,298,000 in each of fiscal years 
265.2 	2020 and 2021.

265.3	(2) Aviation Support and Services
		6,710,000
		6,854,000

265.4	Appropriations by Fund
	
265.5		2018
	2019
	
265.6	Airports
	5,231,000
	5,231,000
	
265.7	Trunk Highway
	1,479,000
	1,623,000

265.8	(3) Civil Air Patrol
		3,580,000
		80,000
	
265.9 	This appropriation is from the state airports 
265.10 	fund for the Civil Air Patrol.
265.11 	$3,500,000 in the first year is for a grant to: 
265.12 	(i) perform site selection and analysis; (ii) 
265.13 	purchase, renovate a portion of and, or
265.14 	construct an addition to the training and 
265.15 	maintenance facility located at the South St. 
265.16 	Paul airport, facilities; and to (iii) furnish and 
265.17 	equip the facility facilities, including 
265.18 	communications equipment. If the Civil Air 
265.19 	Patrol purchases an existing facility, predesign 
265.20 	requirements are waived. The facilities must 
265.21 	be located at an airport in Minnesota. 
265.22 	Notwithstanding the matching requirements 
265.23 	in Minnesota Statutes, section 360.305, 
265.24 	subdivision 4, a nonstate contribution is not 
265.25 	required for this appropriation.
265.26 	Notwithstanding Minnesota Statutes, section 
265.27 	16A.28, subdivision 6, this appropriation is 
265.28 	available for five six years after the year of 
265.29 	the appropriation. This is a onetime 
265.30 	appropriation.

265.31	(b) Transit
		1,416,000
		18,268,000

265.32	Appropriations by Fund
	
265.33		2018
	2019
	
265.34	General
	570,000
	17,395,000
	
265.35	Trunk Highway
	846,000
	873,000
	
266.1 	$150,000 in each year is from the general fund 
266.2 	for grants to transportation management 
266.3 	organizations that provide services exclusively 
266.4 	or primarily in the city located along the 
266.5 	marked Interstate Highway 494 corridor 
266.6 	having the highest population as of the 
266.7 	effective date of this section. The 
266.8 	commissioner must not retain any portion of 
266.9 	the funds appropriated under this section. 
266.10 	From the appropriation in each fiscal year, the 
266.11 	commissioner must make grant payments in 
266.12 	full by July 31. Permissible uses of funds 
266.13 	under this grant include administrative 
266.14 	expenses and programming and service 
266.15 	expansion, including but not limited to 
266.16 	staffing, communications, outreach and 
266.17 	education program development, and 
266.18 	operations management. This is a onetime 
266.19 	appropriation.
266.20 	The base from the general fund is $17,245,000 
266.21 	in each year for fiscal years 2020 and 2021.

266.22	(c) Safe Routes to School
		500,000
		500,000
	
266.23 	This appropriation is from the general fund 
266.24 	for the safe routes to school program under 
266.25 	Minnesota Statutes, section 174.40.

266.26	(d) Passenger Rail
		500,000
		500,000
	
266.27 	This appropriation is from the general fund 
266.28 	for passenger rail system planning, alternatives 
266.29 	analysis, environmental analysis, design, and 
266.30 	preliminary engineering under Minnesota 
266.31 	Statutes, sections 174.632 to 174.636.
266.32 	(e) Freight

266.33	Freight and Commercial Vehicle Operations
		8,506,000
		6,578,000

266.34	Appropriations by Fund
	
267.1		2018
	2019
	
267.2	General
	3,156,000
	1,056,000
	
267.3	Trunk Highway
	5,350,000
	5,522,000
	
267.4 	$1,100,000 in the first year is from the general 
267.5 	fund for port development assistance grants 
267.6 	under Minnesota Statutes, chapter 457A, to 
267.7 	the city of Red Wing and to the Port Authority 
267.8 	of Winona. Any improvements made with the 
267.9 	proceeds of the grants must be publicly owned. 
267.10 	This is a onetime appropriation and is 
267.11 	available in the second year.
267.12 	$800,000 in each year is from the general fund 
267.13 	for additional rail safety and rail service 
267.14 	activities.
267.15 	$1,000,000 in the first year is from the general 
267.16 	fund for a grant to the city of Grand Rapids to 
267.17 	fund rail planning studies, design, and 
267.18 	preliminary engineering relating to the 
267.19 	construction of a freight rail line located in the 
267.20 	counties of Itasca, St. Louis, and Lake to serve 
267.21 	local producers and shippers. The city of 
267.22 	Grand Rapids shall collaborate with the Itasca 
267.23 	Economic Development Corporation and the 
267.24 	Itasca County Regional Railroad Authority in 
267.25 	the activities funded with the proceeds of this 
267.26 	grant. This is a onetime appropriation and is 
267.27 	available until June 30, 2019.

267.28 	Sec. 7. Laws 2017, First Special Session chapter 3, article 1, section 4, subdivision 1, is 
267.29 	amended to read:

267.31267.30
	Subdivision 1.Total Appropriation
 	$
	199,838,000
	$
	199,407,000
198,041,000

267.32	Appropriations by Fund
	
267.33		2018
	2019
	
267.34	General
	19,971,000
	14,381,000
	
268.2268.1
	Special Revenue
	63,945,000
	65,087,000
1,439,000
	
268.4268.3
	H.U.T.D.
	10,474,000
	10,486,000
9,120,000
	
268.5	Trunk Highway
	105,448,000
	109,453,000
	
268.6
268.7	Driver and Vehicle 
Services
	-0-
	63,648,000
	
268.8 	The appropriations in this section are to the 
268.9 	commissioner of public safety. The amounts 
268.10 	that may be spent for each purpose are 
268.11 	specified in the following subdivisions.

268.12 	Sec. 8. Laws 2017, First Special Session chapter 3, article 1, section 4, subdivision 2, is 
268.13 	amended to read:

268.14	Subd. 2.Administration and Related Services

268.15	(a) Office of Communications
		553,000
		573,000

268.16	Appropriations by Fund
	
268.17		2018
	2019
	
268.18	General
	127,000
	130,000
	
268.19	Trunk Highway
	426,000
	443,000

268.21268.20
	(b) Public Safety Support
		6,372,000
		6,569,000
5,203,000

268.22	Appropriations by Fund
	
268.23		2018
	2019
	
268.24	General
	1,225,000
	1,235,000
	
268.26268.25
	H.U.T.D.
	1,366,000
	1,366,000
-0-
	
268.27	Trunk Highway
	3,781,000
	3,968,000

268.28	(c) Public Safety Officer Survivor Benefits
		640,000
		640,000
	
268.29 	This appropriation is from the general fund 
268.30 	for payment of public safety officer survivor 
268.31 	benefits under Minnesota Statutes, section 
268.32 	299A.44.
268.33 	If the appropriation for either year is 
268.34 	insufficient, the appropriation for the other 
268.35 	year is available for it.

269.1	(d) Public Safety Officer Reimbursements
		1,367,000
		1,367,000
	
269.2 	This appropriation is from the general fund to 
269.3 	be deposited in the public safety officer's 
269.4 	benefit account. This money is available for 
269.5 	reimbursements under Minnesota Statutes, 
269.6 	section 299A.465.

269.7	(e) Soft Body Armor Reimbursements
		700,000
		700,000

269.8	Appropriations by Fund
	
269.9		2018
	2019
	
269.10	General
	600,000
	600,000
	
269.11	Trunk Highway
	100,000
	100,000
	
269.12 	This appropriation is for soft body armor 
269.13 	reimbursements under Minnesota Statutes, 
269.14 	section 299A.38.

269.15	(f) Technology and Support Service
		3,777,000
		3,814,000

269.16	Appropriations by Fund
	
269.17		2018
	2019
	
269.18	General
	1,353,000
	1,365,000
	
269.19	H.U.T.D.
	19,000
	19,000
	
269.20	Trunk Highway
	2,405,000
	2,430,000

269.21 	Sec. 9. Laws 2017, First Special Session chapter 3, article 1, section 4, subdivision 4, is 
269.22 	amended to read:

269.23	Subd. 4.Driver and Vehicle Services

269.24	(a) Vehicle Services
		30,745,000
		31,159,000

269.25	Appropriations by Fund
	
269.26		2018
	2019
	
269.28269.27
	Special Revenue
	22,509,000
	22,923,000
0
	
269.29	H.U.T.D.
	8,236,000
	8,236,000
	
269.30
269.31	Driver and Vehicle 
Services
	0
	22,923,000
	
269.32 	The special revenue fund appropriation in 
269.33 	fiscal year 2018 is from the vehicle services 
269.34 	operating account. The driver and vehicle 
270.1 	services fund appropriation in fiscal year 2019 
270.2 	is from the vehicle services operating account.

270.3	(b) Driver Services
		32,014,000
		32,725,000

270.4	Appropriations by Fund
	
270.5		2018
	2019
	
270.6	Special Revenue
	32,014,000
	0
	
270.7
270.8	Driver and Vehicle 
Services
	0
	32,725,000
	
270.9 	This appropriation is from the driver services 
270.10 	operating account in the special revenue fund
270.11 	under Minnesota Statutes, section 299A.705.
270.12 	$156,000 in each year is to maintain the 
270.13 	automated knowledge test system.

270.14
270.15	(c) Minnesota Licensing and Registration System 
(MNLARS)
		8,000,000
		8,000,000

270.16	Appropriations by Fund
	
270.17		2018
	2019
	
270.18	Special Revenue
	8,000,000
	0
	
270.19
270.20	Driver and Vehicle 
Services
	0
	8,000,000
	
270.21 	This appropriation is for operations and 
270.22 	maintenance of the driver and vehicle 
270.23 	information system known as the Minnesota 
270.24 	Licensing and Registration System.
270.25 	$1,000,000 in the first year and $5,265,000 in 
270.26 	the second year are from the driver services 
270.27 	operating account in the special revenue fund
270.28 	under Minnesota Statutes, section 299A.705. 
270.29 	This is a onetime appropriation.
270.30 	$7,000,000 in the first year and $2,735,000 in 
270.31 	the second year are from the vehicle services 
270.32 	operating account in the special revenue fund
270.33 	under Minnesota Statutes, section 299A.705. 
270.34 	This is a onetime appropriation.

271.1 	Sec. 10. DEPUTY REGISTRAR REIMBURSEMENTS.
 271.2 		Subdivision 1.Reimbursement grants. (a) The commissioner of management and 
271.3 	budget must provide reimbursement grants to deputy registrars using the money appropriated 
271.4 	under section 5. The commissioner must provide the grants by August 1, 2018.
271.5 	(b) The commissioner must use existing resources to administer the reimbursements.
271.6 		Subd. 2.Eligibility. A deputy registrar office operated by the state is not eligible to 
271.7 	receive funds under this section.
271.8 		Subd. 3.Aid distribution. (a) The reimbursement grant to each deputy registrar, as 
271.9 	identified by the Driver and Vehicle Services-designated office location number, is calculated 
271.10 	as follows:
271.11 	(1) ten percent of available funds allocated equally among all deputy registrars;
271.12 	(2) 45 percent of available funds allocated proportionally based on (i) the number of 
271.13 	transactions where a filing fee under Minnesota Statutes, section 168.33, subdivision 7, is 
271.14 	retained by each deputy registrar from August 1, 2017, through May 31, 2018, compared 
271.15 	to (ii) the total number of transactions where a filing fee is retained by all deputy registrars 
271.16 	during that time period; and
271.17 	(3) 45 percent of available funds allocated proportionally based on (i) the number of 
271.18 	transactions where a filing fee is retained by each deputy registrar from July 1, 2014, through 
271.19 	June 30, 2017, compared to (ii) the total number of transactions where a filing fee is retained 
271.20 	by all deputy registrars during that time period.
271.21 	(b) For a deputy registrar appointed after July 1, 2014, the commissioner of management 
271.22 	and budget must identify whether a corresponding discontinued deputy registrar appointment 
271.23 	exists. If a corresponding discontinued deputy registrar is identified, the commissioner must 
271.24 	include the transactions of the discontinued deputy registrar in the calculations under 
271.25 	paragraph (a) for the deputy registrar appointed after July 1, 2014.
271.26 	(c) For a deputy registrar appointed after July 1, 2014, to which paragraph (b) does not 
271.27 	apply, the commissioner of management and budget must calculate the deputy registrar's 
271.28 	proportional share under paragraph (a), clause (3), based on the average number of 
271.29 	transactions where a filing fee is retained among the deputy registrars, as calculated excluding 
271.30 	any deputy registrars for which this paragraph applies.
271.31 	(d) In the calculations under paragraph (a), the commissioner of management and budget 
271.32 	must exclude transactions for (1) a deputy registrar office operated by the state, and (2) a 
271.33 	discontinued deputy registrar for which paragraph (b) does not apply.

272.1 	ARTICLE 24
272.2 	TRANSPORTATION POLICY

272.3 	Section 1. Minnesota Statutes 2017 Supplement, section 3.972, subdivision 4, is amended 
272.4 	to read:
272.5 		Subd. 4.Certain transit financial activity reporting. (a) The legislative auditor must 
272.6 	perform a transit financial activity review of financial information for the Metropolitan 
272.7 	Council's Transportation Division and the joint powers board under section 297A.992. 
272.8 	Within 14 days of the end of each fiscal quarter,two times each year. The first report, due 
272.9 	April 1, must include the quarters ending on September 30 and December 31 of the previous 
272.10 	calendar year. The second report, due October 1, must include the quarters ending on March 
272.11 	31 and June 30 of the current year. The legislative auditor must submit the review to the 
272.12 	Legislative Audit Commission and the chairs and ranking minority members of the legislative 
272.13 	committees with jurisdiction over transportation policy and finance, finance, and ways and 
272.14 	means.
272.15 	(b) At a minimum, each transit financial activity review must include:
272.16 	(1) a summary of monthly financial statements, including balance sheets and operating 
272.17 	statements, that shows income, expenditures, and fund balance;
272.18 	(2) a list of any obligations and agreements entered into related to transit purposes, 
272.19 	whether for capital or operating, including but not limited to bonds, notes, grants, and future 
272.20 	funding commitments;
272.21 	(3) the amount of funds in clause (2) that has been committed;
272.22 	(4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues 
272.23 	and fund balance compared to expenditures, taking into account:
272.24 	(i) all expenditure commitments;
272.25 	(ii) cash flow;
272.26 	(iii) sufficiency of estimated funds; and
272.27 	(iv) financial solvency of anticipated transit projects; and
272.28 	(5) a notification concerning whether the requirements under paragraph (c) have been 
272.29 	met.
273.1 	(c) The Metropolitan Council and the joint powers board under section 297A.992 must 
273.2 	produce monthly financial statements as necessary for the review under paragraph (b), 
273.3 	clause (1), and provide timely information as requested by the legislative auditor.
273.4 	(d) This subdivision expires on April 15, 2023.

273.5 	EFFECTIVE DATE. This section is effective June 1, 2018.

273.6 	Sec. 2. Minnesota Statutes 2016, section 13.461, is amended by adding a subdivision to 
273.7 	read:
273.8 		Subd. 33.Metropolitan Council special transportation service. Data sharing between 
273.9 	the commissioner of human services and the Metropolitan Council to administer and 
273.10 	coordinate transportation services for individuals with disabilities and elderly individuals 
273.11 	is governed by section 473.386, subdivision 9.

273.12 	EFFECTIVE DATE. This section is effective June 1, 2018, and applies in the counties 
273.13 	of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

273.14 	Sec. 3. Minnesota Statutes 2016, section 13.6905, subdivision 3, is amended to read:
273.15 		Subd. 3.Motor vehicle registration. Various data on motor vehicle registrations are 
273.16 	classified under sections 168.327, subdivision 3, and 168.346. Use of vehicle registration 
273.17 	data is governed by section 168.345.

273.18 	Sec. 4. Minnesota Statutes 2016, section 13.72, subdivision 10, is amended to read:
273.19 		Subd. 10.Transportation service data. (a) Personal, medical, financial, familial, or 
273.20 	locational information data pertaining to applicants for or users of services providing 
273.21 	transportation for the disabled individuals with disabilities or elderly individuals are private
273.22 	data on individuals.
273.23 	(b) Private transportation service data may be disclosed between the commissioner of 
273.24 	human services and the Metropolitan Council to administer and coordinate human services 
273.25 	programs and transportation services for individuals with disabilities and elderly individuals 
273.26 	under section 473.386.

273.27 	EFFECTIVE DATE. This section is effective June 1, 2018, and applies in the counties 
273.28 	of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

274.1 	Sec. 5. Minnesota Statutes 2016, section 80E.13, is amended to read:
274.2 	80E.13 UNFAIR PRACTICES BY MANUFACTURERS, DISTRIBUTORS, 
274.3 	FACTORY BRANCHES.
274.4 	It is unlawful and an unfair practice for a manufacturer, distributor, or factory branch 
274.5 	to engage in any of the following practices:
274.6 	(a) delay, refuse, or fail to deliver new motor vehicles or new motor vehicle parts or 
274.7 	accessories in reasonable time and in reasonable quantity relative to the new motor vehicle 
274.8 	dealer's facilities and sales potential in the dealer's relevant market area, after having accepted 
274.9 	an order from a new motor vehicle dealer having a franchise for the retail sale of any new 
274.10 	motor vehicle sold or distributed by the manufacturer or distributor, if the new motor vehicle 
274.11 	or new motor vehicle parts or accessories are publicly advertised as being available for 
274.12 	delivery or actually being delivered. This clause is not violated, however, if the failure is 
274.13 	caused by acts or causes beyond the control of the manufacturer;
274.14 	(b) refuse to disclose to any new motor vehicle dealer handling the same line make, the 
274.15 	manner and mode of distribution of that line make within the relevant market area;
274.16 	(c) obtain money, goods, service, or any other benefit from any other person with whom 
274.17 	the dealer does business, on account of, or in relation to, the transaction between the dealer 
274.18 	and the other person, other than for compensation for services rendered, unless the benefit 
274.19 	is promptly accounted for, and transmitted to, the new motor vehicle dealer;
274.20 	(d) increase prices of new motor vehicles which the new motor vehicle dealer had ordered 
274.21 	for private retail consumers prior to the dealer's receiving the written official price increase 
274.22 	notification. A sales contract signed by a private retail consumer shall constitute evidence 
274.23 	of each order if the vehicle is in fact delivered to that customer. In the event of manufacturer 
274.24 	price reductions, the amount of any reduction received by a dealer shall be passed on to the 
274.25 	private retail consumer by the dealer if the retail price was negotiated on the basis of the 
274.26 	previous higher price to the dealer;
274.27 	(e) offer any refunds or other types of inducements to any new motor vehicle dealer for 
274.28 	the purchase of new motor vehicles of a certain line make without making the same offer 
274.29 	to all other new motor vehicle dealers in the same line make within geographic areas 
274.30 	reasonably determined by the manufacturer;
274.31 	(f) release to any outside party, except under subpoena or in an administrative or judicial 
274.32 	proceeding involving the manufacturer or dealer, any business, financial, or personal 
274.33 	information which may be provided by the dealer to the manufacturer, without the express 
275.1 	written consent of the dealer or unless pertinent to judicial or governmental administrative 
275.2 	proceedings or to arbitration proceedings of any kind;
275.3 	(g) deny any new motor vehicle dealer the right of free association with any other new 
275.4 	motor vehicle dealer for any lawful purpose;
275.5 	(h) unfairly discriminate among its new motor vehicle dealers with respect to warranty 
275.6 	reimbursement or authority granted its new vehicle dealers to make warranty adjustments 
275.7 	with retail customers;
275.8 	(i) compete with a new motor vehicle dealer in the same line make operating under an 
275.9 	agreement or franchise from the same manufacturer, distributor, or factory branch. A 
275.10 	manufacturer, distributor, or factory branch is considered to be competing when it has an 
275.11 	ownership interest, other than a passive interest held for investment purposes, in a dealership 
275.12 	of its line make located within the state. A manufacturer, distributor, or factory branch shall 
275.13 	not, however, be deemed to be competing when operating a dealership, either temporarily 
275.14 	or for a reasonable period, which is for sale to any qualified independent person at a fair 
275.15 	and reasonable price, or when involved in a bona fide relationship in which an independent 
275.16 	person has made a significant investment subject to loss in the dealership and can reasonably 
275.17 	expect to acquire full ownership and full management and operational control of the 
275.18 	dealership within a reasonable time on reasonable terms and conditions;
275.19 	(j) prevent a new motor vehicle dealer from transferring or assigning a new motor vehicle 
275.20 	dealership to a qualified transferee. There shall be no transfer, assignment of the franchise, 
275.21 	or major change in the executive management of the dealership, except as is otherwise 
275.22 	provided in sections 80E.01 to 80E.17, without consent of the manufacturer, which shall 
275.23 	not be withheld without good cause. In determining whether good cause exists for 
275.24 	withholding consent to a transfer or assignment, the manufacturer, distributor, factory 
275.25 	branch, or importer has the burden of proving that the transferee is a person who is not of 
275.26 	good moral character or does not meet the franchisor's existing and reasonable capital 
275.27 	standards and, considering the volume of sales and service of the new motor vehicle dealer, 
275.28 	reasonable business experience standards in the market area. Denial of the request must be 
275.29 	in writing and delivered to the new motor vehicle dealer within 60 days after the manufacturer 
275.30 	receives the completed application customarily used by the manufacturer, distributor, factory 
275.31 	branch, or importer for dealer appointments. If a denial is not sent within this period, the 
275.32 	manufacturer shall be deemed to have given its consent to the proposed transfer or change. 
275.33 	In the event of a proposed sale or transfer of a franchise, the manufacturer, distributor, 
275.34 	factory branch, or importer shall be permitted to exercise a right of first refusal to acquire 
275.35 	the franchisee's assets or ownership if:
276.1 	(1) the franchise agreement permits the manufacturer, distributor, factory branch, or 
276.2 	importer to exercise a right of first refusal to acquire the franchisee's assets or ownership 
276.3 	in the event of a proposed sale or transfer;
276.4 	(2) the proposed transfer of the dealership or its assets is of more than 50 percent of the 
276.5 	ownership or assets;
276.6 	(3) the manufacturer, distributor, factory branch, or importer notifies the dealer in writing 
276.7 	within 60 days of its receipt of the complete written proposal for the proposed sale or transfer 
276.8 	on forms generally utilized by the manufacturer, distributor, factory branch, or importer for 
276.9 	such purposes and containing the information required therein and all documents and 
276.10 	agreements relating to the proposed sale or transfer;
276.11 	(4) the exercise of the right of first refusal will result in the dealer and dealer's owners 
276.12 	receiving the same or greater consideration with equivalent terms of sale as is provided in 
276.13 	the documents and agreements submitted to the manufacturer, distributor, factory branch, 
276.14 	or importer under clause (3);
276.15 	(5) the proposed change of 50 percent or more of the ownership or of the dealership 
276.16 	assets does not involve the transfer or sale of assets or the transfer or issuance of stock by 
276.17 	the dealer or one or more dealer owners to a family member, including a spouse, child, 
276.18 	stepchild, grandchild, spouse of a child or grandchild, brother, sister, or parent of the dealer 
276.19 	owner; to a manager who has been employed in the dealership for at least four years and is 
276.20 	otherwise qualified as a dealer operator; or to a partnership or corporation owned and 
276.21 	controlled by one or more of such persons; and
276.22 	(6) the manufacturer, distributor, factory branch, or importer agrees to pay the reasonable 
276.23 	expenses, including reasonable attorney fees, which do not exceed the usual customary and 
276.24 	reasonable fees charged for similar work done for other clients incurred by the proposed 
276.25 	new owner and transferee before the manufacturer, distributor, factory branch, or importer 
276.26 	exercises its right of first refusal, in negotiating and implementing the contract for the 
276.27 	proposed change of ownership or transfer of dealership assets. However, payment of such 
276.28 	expenses and attorney fees shall not be required if the dealer has not submitted or caused 
276.29 	to be submitted an accounting of those expenses within 20 days after the dealer's receipt of 
276.30 	the manufacturer, distributor, factory branch, or importer's written request for such an 
276.31 	accounting. The manufacturer, distributor, factory branch, or importer may request such an 
276.32 	accounting before exercising its right of first refusal. The obligation created under this clause 
276.33 	is enforceable by the transferee;
277.1 	(k) threaten to modify or replace or modify or replace a franchise with a succeeding 
277.2 	franchise that would adversely alter the rights or obligations of a new motor vehicle dealer 
277.3 	under an existing franchise or that substantially impairs the sales or service obligations or 
277.4 	investments of the motor vehicle dealer;
277.5 	(l) unreasonably deny the right to acquire factory program vehicles to any dealer holding 
277.6 	a valid franchise from the manufacturer to sell the same line make of vehicles, provided 
277.7 	that the manufacturer may impose reasonable restrictions and limitations on the purchase 
277.8 	or resale of program vehicles to be applied equitably to all of its franchised dealers. For the 
277.9 	purposes of this paragraph, "factory program vehicle" has the meaning given the term in 
277.10 	section 80E.06, subdivision 2;
277.11 	(m) fail or refuse to offer to its same line make franchised dealers all models manufactured 
277.12 	for that line make, other than alternative fuel vehicles as defined in section 216C.01, 
277.13 	subdivision 1b. Failure to offer a model is not a violation of this section if the failure is not 
277.14 	arbitrary and is due to a lack of manufacturing capacity, a strike, labor difficulty, or other 
277.15 	cause over which the manufacturer, distributor, or factory branch has no control;
277.16 	(n) require a dealer to pay an extra fee, or remodel, renovate, or recondition the dealer's 
277.17 	existing facilities, or purchase unreasonable advertising displays, training, tools, or other 
277.18 	materials, or to require the dealer to establish exclusive facilities or dedicated personnel as 
277.19 	a prerequisite to receiving a model or a series of vehicles;
277.20 	(o) require a dealer to adhere to performance standards that are not applied uniformly 
277.21 	to other similarly situated dealers.
277.22 	A performance standard, sales objective, or program for measuring dealership performance 
277.23 	that may have a material effect on a dealer, including the dealer's right to payment under 
277.24 	any incentive or reimbursement program, and the application of the standard or program 
277.25 	by a manufacturer, distributor, or factory branch must be fair, reasonable, equitable, and 
277.26 	based on accurate information.
277.27 	A manufacturer, distributor, or factory branch has the burden of proving that the performance 
277.28 	standard, sales objective, or program for measuring dealership performance is fair and 
277.29 	reasonable under this subdivision;
277.30 	(p) unreasonably reduce a dealer's area of sales effectiveness without giving at least 90 
277.31 	days' notice of the proposed reduction. The change may not take effect if the dealer 
277.32 	commences a civil action to determine whether there is good cause for the change within 
277.33 	the 90 days' notice period. The burden of proof in such an action shall be on the manufacturer 
277.34 	or distributor; or
278.1 	(q) to charge back, withhold payment, deny vehicle allocation, or take any other adverse 
278.2 	action against a dealer when a new vehicle sold by the dealer has been exported to a foreign 
278.3 	country, unless the manufacturer, distributor, or factory branch can show that at the time 
278.4 	of sale, the customer's information was listed on a known or suspected exporter list made 
278.5 	available to the dealer, or the dealer knew or reasonably should have known of the purchaser's 
278.6 	intention to export or resell the motor vehicle in violation of the manufacturer's export 
278.7 	policy. There is a rebuttable presumption that the dealer did not know or should not have 
278.8 	reasonably known that the vehicle would be exported or resold in violation of the 
278.9 	manufacturer's export policy if the vehicle is titled and registered in any state of the United 
278.10 	States.; or
278.11 	(r) to implement a charge back or withhold payment to a dealer that is solely due to an 
278.12 	unreasonable delay by the registrar, as defined in section 168.002, subdivision 29, in the 
278.13 	transfer or registration of a new motor vehicle. The dealer must give the manufacturer notice 
278.14 	of the state's delay in writing. Within 30 days of any notice of a charge back, withholding 
278.15 	of payments, or denial of a claim, the dealer must transmit to the manufacturer (1) 
278.16 	documentation to demonstrate the vehicle sale and delivery as reported; and (2) a written 
278.17 	attestation signed by the dealer operator or general manager stating that the delay is 
278.18 	attributable to the state. This clause expires on June 30, 2021.

278.19 	Sec. 6. Minnesota Statutes 2017 Supplement, section 160.02, subdivision 1a, is amended 
278.20 	to read:
278.21 		Subd. 1a.Bikeway. "Bikeway" means a bicycle lane, bicycle path, shared use path, 
278.22 	bicycle route, or similar bicycle facility, regardless of whether designed for the exclusive 
278.23 	use of bicycles or for shared use with other transportation modes has the meaning given in 
278.24 	section 169.011, subdivision 9.

278.25 	Sec. 7. Minnesota Statutes 2016, section 160.263, subdivision 2, is amended to read:
278.26 		Subd. 2.Powers of political subdivisions. (a) The governing body of any political 
278.27 	subdivision may by ordinance or resolution:
278.28 	(1) designate any roadway or shoulder or portion thereof under its jurisdiction as a 
278.29 	bicycle lane or bicycle route;
278.30 	(2) designate any sidewalk or portion thereof under its jurisdiction as a bicycle path 
278.31 	provided that the designation does not destroy a pedestrian way or pedestrian access;
278.32 	(3) develop and designate bicycle paths;
279.1 	(4) designate as bikeways all bicycle lanes, bicycle routes, and bicycle paths.
279.2 	(b) A governing body may not prohibit or otherwise restrict operation of an 
279.3 	electric-assisted bicycle, as defined in section 169.011, subdivision 27, on any bikeway, 
279.4 	roadway, or shoulder, unless the governing body determines that operation of the 
279.5 	electric-assisted bicycle is not consistent with (1) the safety or general welfare of bikeway, 
279.6 	roadway, or shoulder users; or (2) the terms of any property conveyance.
279.7 	(c) A governing body is prohibited from establishing a bikeway in a segment of public 
279.8 	road right-of-way that results in elimination or relocation of any disability parking that is 
279.9 	designated under section 169.346, subdivision 2.

279.10 	EFFECTIVE DATE. This section is effective June 1, 2018.

279.11 	Sec. 8. Minnesota Statutes 2016, section 160.295, subdivision 5, is amended to read:
279.12 		Subd. 5.Rural agricultural business or tourist-oriented business. (a) A rural 
279.13 	agricultural or tourist-oriented business serviced by a specific service sign must be open a 
279.14 	minimum of eight hours per day, six days per week, and 12 months per year. However,
279.15 	(b) A seasonal business may qualify if it is serviced by a specific service sign must be
279.16 	open eight hours per day and six days per week during the normal seasonal period.
279.17 	(c) A farm winery serviced by a specific service sign must:
279.18 	(1) be licensed under section 340A.315;
279.19 	(2) be licensed by the Department of Health under section 157.16 or by the commissioner 
279.20 	of agriculture under section 28A.04;
279.21 	(3) provide continuous, staffed food service operation; and
279.22 	(4) be open at least four hours per day and two days per week.

279.23 	EFFECTIVE DATE. This section is effective June 1, 2018.

279.24 	Sec. 9. Minnesota Statutes 2016, section 161.115, subdivision 111, is amended to read:
279.25 		Subd. 111.Route No. 180. Beginning at a point on Route No. 392 southwest or west 
279.26 	of Ashby 3 at or near Erdahl, thence extending in a general northerly or northeasterly 
279.27 	direction to a point on Route No. 153 as herein established at or near Ashby, thence extending 
279.28 	in a northeasterly direction to a point on Route No. 181 as herein established at or near 
279.29 	Ottertail.

280.1 	Sec. 10. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
280.2 	read:
280.3 		Subd. 88.Trooper Ray Krueger Memorial Highway. That segment of marked Trunk 
280.4 	Highway 210 within Cass County is designated as "Trooper Ray Krueger Memorial 
280.5 	Highway." Subject to section 161.139, the commissioner shall adopt a suitable design to 
280.6 	mark this highway and erect appropriate signs in the vicinity of the location where Trooper 
280.7 	Krueger died.

280.8 	Sec. 11. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
280.9 	read:
280.10 		Subd. 89.Warrant Officer Dennis A. Groth Memorial Bridge. The bridge on marked 
280.11 	U.S. Highway 52 over Dakota County State-Aid Highway 42, known as 145th Street within 
280.12 	the city of Rosemount, is designated as "Warrant Officer Dennis A. Groth Memorial Bridge." 
280.13 	Subject to section 161.139, the commissioner shall adopt a suitable design to mark the 
280.14 	bridge and erect appropriate signs.

280.15 	Sec. 12. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
280.16 	read:
280.17 		Subd. 90.Specialist Noah Pierce Bridge. The bridge on marked U.S. Highway 53 over 
280.18 	marked Trunk Highway 37 in the city of Eveleth is designated as "Specialist Noah Pierce 
280.19 	Bridge." Subject to section 161.139, the commissioner shall adopt a suitable design to mark 
280.20 	this bridge and erect appropriate signs.

280.21 	Sec. 13. Minnesota Statutes 2016, section 161.32, subdivision 2, is amended to read:
280.22 		Subd. 2.Direct negotiation. In cases where the estimated cost of construction work or 
280.23 	maintenance work does not exceed $150,000 $250,000, the commissioner may enter into 
280.24 	a contract for the work by direct negotiation, by obtaining two or more quotations for the 
280.25 	work, and without advertising for bids or otherwise complying with the requirements of 
280.26 	competitive bidding if the total contractual obligation of the state for the directly negotiated 
280.27 	contract or contracts on any single project does not exceed $150,000 $250,000. All quotations 
280.28 	obtained shall be kept on file for a period of at least one year after receipt of the quotation.

281.1 	Sec. 14. Minnesota Statutes 2017 Supplement, section 168.013, subdivision 1a, is amended 
281.2 	to read:
281.3 		Subd. 1a.Passenger automobile; hearse. (a) On passenger automobiles as defined in 
281.4 	section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax is $10 
281.5 	plus an additional tax equal to 1.25 percent of the base value.
281.6 	(b) Subject to the classification provisions herein, "base value" means the manufacturer's 
281.7 	suggested retail price of the vehicle including destination charge using list price information 
281.8 	published by the manufacturer or determined by the registrar if no suggested retail price 
281.9 	exists, and shall not include the cost of each accessory or item of optional equipment 
281.10 	separately added to the vehicle and the suggested retail price. In the case of the first 
281.11 	registration of a new vehicle sold or leased by a licensed dealer, the dealer may elect to 
281.12 	individually determine the base value of the vehicle using suggested retail price information 
281.13 	provided by the manufacturer. The registrar must use the base value determined by the 
281.14 	dealer to properly classify the vehicle. A dealer that elects to make the determination must 
281.15 	retain a copy of the suggested retail price label or other supporting documentation with the 
281.16 	vehicle transaction records maintained under Minnesota Rules, part 7400.5200.
281.17 	(c) If the manufacturer's list price information contains a single vehicle identification 
281.18 	number followed by various descriptions and suggested retail prices, the registrar shall 
281.19 	select from those listings only the lowest price for determining base value.
281.20 	(d) If unable to determine the base value because the vehicle is specially constructed, 
281.21 	or for any other reason, the registrar may establish such value upon the cost price to the 
281.22 	purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales 
281.23 	or use tax or any local sales or other local tax.
281.24 	(e) The registrar shall classify every vehicle in its proper base value class as follows:

281.25	FROM
		TO
	
281.26	$
	0
		$ 199.99
	
281.27	$
	200
		$ 399.99
	
281.28 	and thereafter a series of classes successively set in brackets having a spread of $200 
281.29 	consisting of such number of classes as will permit classification of all vehicles.
281.30 	(f) The base value for purposes of this section shall be the middle point between the 
281.31 	extremes of its class.
281.32 	(g) The registrar shall establish the base value, when new, of every passenger automobile 
281.33 	and hearse registered prior to the effective date of Extra Session Laws 1971, chapter 31, 
282.1 	using list price information published by the manufacturer or any nationally recognized 
282.2 	firm or association compiling such data for the automotive industry. If unable to ascertain 
282.3 	the base value of any registered vehicle in the foregoing manner, the registrar may use any 
282.4 	other available source or method. The registrar shall calculate tax using base value 
282.5 	information available to dealers and deputy registrars at the time the application for 
282.6 	registration is submitted. The tax on all previously registered vehicles shall be computed 
282.7 	upon the base value thus determined taking into account the depreciation provisions of 
282.8 	paragraph (h).
282.9 	(h) The annual additional tax must be computed upon a percentage of the base value as 
282.10 	follows: during the first year of vehicle life, upon 100 percent of the base value; for the 
282.11 	second year, 90 percent of such value; for the third year, 80 percent of such value; for the 
282.12 	fourth year, 70 percent of such value; for the fifth year, 60 percent of such value; for the 
282.13 	sixth year, 50 percent of such value; for the seventh year, 40 percent of such value; for the 
282.14 	eighth year, 30 percent of such value; for the ninth year, 20 percent of such value; for the 
282.15 	tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.
282.16 	(i) In no event shall the annual additional tax be less than $25.
282.17 	(j) For any vehicle previously registered in Minnesota and regardless of prior ownership, 
282.18 	the total amount due under this subdivision and subdivision 1m must not exceed the smallest 
282.19 	total amount previously paid or due on the vehicle.

282.20 	Sec. 15. Minnesota Statutes 2016, section 168.013, subdivision 6, is amended to read:
282.21 		Subd. 6.Listing by dealers. (a) The owner of every motor vehicle not exempted by 
282.22 	section 168.012 or 168.28, shall must, so long as it is subject to taxation within the state, 
282.23 	annually list and, register the same, and pay the tax herein provided annually; provided, 
282.24 	however, that any dealer in under this section.
282.25 	(b) A motor vehicles, to whom dealer's plates have vehicle dealer that has been issued 
282.26 	as provided in dealer's plates under this chapter, coming and comes into the possession of 
282.27 	any such a motor vehicle to be held solely for the purpose of sale or demonstration or both, 
282.28 	shall be is entitled to withhold the tax due on the vehicle from the prior registration period 
282.29 	or becoming due on such vehicle for the following year, and no lien for registration tax as 
282.30 	provided in section 168.31, subdivision 6, attaches. When, thereafter, such the vehicle is 
282.31 	otherwise subsequently used or is sold, leased, or rented to another person, firm, corporation, 
282.32 	or association, the tax for the remainder of the year, prorated on a monthly basis, shall 
282.33 	become becomes payable immediately.

283.1 	Sec. 16. Minnesota Statutes 2016, section 168.10, subdivision 1h, is amended to read:
283.2 		Subd. 1h.Collector military vehicle. (a) A motor vehicle, including a truck, shall must
283.3 	be listed and registered under this section if it meets the following conditions:
283.4 	(1) it is at least 20 years old;
283.5 	(2) its first owner following its manufacture was a branch of the armed forces of the 
283.6 	United States and it presently conforms to the vehicle specifications required during the 
283.7 	time of military ownership, or it has been restored and presently conforms to the 
283.8 	specifications required by a branch of the armed forces for the model year that the restored 
283.9 	vehicle could have been owned by that branch of the armed forces; and
283.10 	(3) it is owned by a nonprofit organization and operated solely as a collector's vehicle. 
283.11 	For purposes of this subdivision, "nonprofit organization" means a corporation, society, 
283.12 	association, foundation, or institution organized and operated exclusively for historical or 
283.13 	educational purposes, no part of the net earnings of which inures to the benefit of a private 
283.14 	individual.
283.15 	(b) The owner of the vehicle shall must execute an affidavit stating the name and address 
283.16 	of the person from whom purchased and of the new owner; the make, year, and model 
283.17 	number of the motor vehicle; the manufacturer's identification number; and the collector 
283.18 	military vehicle identification number, if any, located on the exterior of the vehicle. The 
283.19 	affidavit must affirm that the vehicle is owned by a nonprofit organization and is operated 
283.20 	solely as a collector's item and not for general transportation purposes. If the commissioner 
283.21 	is satisfied that the affidavit is true and correct and the owner pays a $25 tax and the plate 
283.22 	fee authorized under section 168.12, the commissioner shall must list the vehicle for taxation 
283.23 	and registration and shall issue number plates. The number plates shall must bear the 
283.24 	inscriptions "Collector" and "Minnesota" and the registration number, but no date. The 
283.25 	number plates are valid without renewal as long as the vehicle is in existence in Minnesota. 
283.26 	The commissioner may revoke the plates for failure to comply with this subdivision.
283.27 	(c) Notwithstanding section 168.09, 168.12, or other law to the contrary, the owner of 
283.28 	a registered collector military vehicle is not required to display registration plates on the 
283.29 	exterior of the vehicle if the vehicle has an exterior number identification that conforms to 
283.30 	the identifying system for military vehicles in effect when the vehicle was last owned by 
283.31 	the branch of the armed forces of the United States or in effect in the year to which the 
283.32 	collector military vehicle has been restored. However, the state registration plates must be 
283.33 	carried in or on the collector military vehicle at all times.
284.1 	(d) The owner of a registered collector military vehicle that is not required to display 
284.2 	registration plates under paragraph (c) may tow a registered trailer behind it. The trailer is 
284.3 	not required to display registration plates if the trailer:
284.4 	(1) does not exceed a gross weight of 15,000 pounds;
284.5 	(2) otherwise conforms to registration, licensing, and safety laws and specifications;
284.6 	(3) conforms to military specifications for appearance and identification;
284.7 	(4) is intended to represent and does represent a military trailer; and
284.8 	(5) carries registration plates on or in the trailer or the collector military vehicle towing 
284.9 	the trailer.
284.10 	(e) This subdivision does not apply to a decommissioned military vehicle that (1) was 
284.11 	also manufactured and sold as a comparable civilian vehicle, and (2) has the same size 
284.12 	dimensions and vehicle weight as the comparable civilian vehicle. A decommissioned 
284.13 	military vehicle under this paragraph is eligible for a motor vehicle title under chapter 168A 
284.14 	and is subject to the same registration, insurance, equipment, and operating requirements 
284.15 	as a motor vehicle.

284.16 	Sec. 17. Minnesota Statutes 2016, section 168.101, subdivision 2a, is amended to read:
284.17 		Subd. 2a.Failure to send to registrar submit within ten days. Any person who fails 
284.18 	to mail in the application for registration or transfer with appropriate taxes and fees to the
284.19 	registrar or a deputy registrar of motor vehicles, or otherwise fails to submit said the forms 
284.20 	and remittance to the registrar, within ten days following date of sale shall be is guilty of a 
284.21 	misdemeanor.

284.22 	EFFECTIVE DATE. This section is effective July 1, 2019.

284.23 	Sec. 18. Minnesota Statutes 2016, section 168.127, subdivision 4, is amended to read:
284.24 		Subd. 4.Filing registration applications. Initial fleet applications for registration and 
284.25 	renewals must be filed with the registrar or authorizeda deputy registrar.

284.26 	EFFECTIVE DATE. This section is effective July 1, 2019.

284.27 	Sec. 19. Minnesota Statutes 2016, section 168.127, subdivision 6, is amended to read:
284.28 		Subd. 6.Fee. Instead of the filing fee described in section 168.33, subdivision 7, For 
284.29 	each vehicle in the fleet, the applicant for fleet registration shall must pay:
285.1 	(1) the filing fee in section 168.33, subdivision 7, for transactions processed by a deputy 
285.2 	registrar; or
285.3 	(2) an equivalent administrative fee to the commissioner for each vehicle in the fleet.
285.4 	for transactions processed by the registrar, which is imposed in lieu of but in the same 
285.5 	amount as the filing fee in section 168.33, subdivision 7.

285.6 	EFFECTIVE DATE. This section is effective July 1, 2019.

285.7 	Sec. 20. Minnesota Statutes 2016, section 168.27, is amended by adding a subdivision to 
285.8 	read:
285.9 		Subd. 32.Multiple licenses. If a single legal entity holds more than one new or used 
285.10 	vehicle dealer license, new and used vehicles owned by the entity may be held and offered 
285.11 	for sale at any of the licensed dealership locations without assigning vehicle ownership or 
285.12 	title from one licensee to another. This subdivision does not authorize the sale or offering 
285.13 	for sale of new vehicles by a licensee that is not authorized by the manufacturer to sell that 
285.14 	make of new vehicles.

285.15 	Sec. 21. Minnesota Statutes 2016, section 168.27, is amended by adding a subdivision to 
285.16 	read:
285.17 		Subd. 33.Designated dealer title and registration liaison. The registrar must designate 
285.18 	by name and provide contact information for one or more department employees as needed 
285.19 	to (1) promptly and effectively respond to questions from licensed dealers, and (2) 
285.20 	troubleshoot dealer issues related to vehicle titling and registration.

285.21 	Sec. 22. Minnesota Statutes 2016, section 168.301, subdivision 3, is amended to read:
285.22 		Subd. 3.Late fee. In addition to any fee or tax otherwise authorized or imposed upon 
285.23 	the transfer of title for a motor vehicle, the commissioner of public safety shall registrar 
285.24 	must impose a $2 additional fee for failure to deliver a title transfer within ten business 
285.25 	days. This subdivision does not apply to transfers from licensed vehicle dealers.

285.26 	Sec. 23. Minnesota Statutes 2016, section 168.326, is amended to read:
285.27 	168.326 EXPEDITED DRIVER AND VEHICLE SERVICES; FEE.
285.28 	(a) When an applicant requests and pays an expedited service fee of $20, in addition to 
285.29 	other specified and statutorily mandated fees and taxes, the commissioner registrar or, if 
285.30 	appropriate, a driver's license agent or deputy registrar, shall expedite the processing of an 
286.1 	application for a driver's license, driving instruction permit, Minnesota identification card, 
286.2 	or vehicle title transaction.
286.3 	(b) A driver's license agent or deputy registrar may retain $10 of the expedited service 
286.4 	fee for each expedited service request processed by the licensing agent or deputy registrar.
286.5 	(c) When expedited service is requested, materials must be mailed or delivered to the 
286.6 	requester within three days of receipt of the expedited service fee excluding Saturdays, 
286.7 	Sundays, or the holidays listed in section 645.44, subdivision 5. The requester shall must
286.8 	comply with all relevant requirements of the requested document.
286.9 	(d) The commissioner registrar may decline to accept an expedited service request if it 
286.10 	is apparent at the time it is made that the request cannot be granted. The commissioner must 
286.11 	not decline an expedited service request and must not prevent a driver's license agent or 
286.12 	deputy from accepting an expedited service request solely on the basis of limitations of the 
286.13 	driver and vehicle services information technology system.
286.14 	(e) The expedited service fees collected under this section for an application for a driver's 
286.15 	license, driving instruction permit, or Minnesota identification card minus any portion 
286.16 	retained by a licensing agent or deputy registrar under paragraph (b) must be paid into the 
286.17 	driver services operating account in the special revenue fund specified under section 
286.18 	299A.705.
286.19 	(f) The expedited service fees collected under this section for a transaction for a vehicle 
286.20 	service minus any portion retained by a licensing agent or deputy registrar under paragraph 
286.21 	(b) must be paid into the vehicle services operating account in the special revenue fund 
286.22 	specified under section 299A.705.

286.23 	EFFECTIVE DATE. This section is effective November 1, 2019.

286.24 	Sec. 24. Minnesota Statutes 2016, section 168.33, subdivision 8a, is amended to read:
286.25 		Subd. 8a.Electronic transmission. (a) If the commissioner accepts electronic 
286.26 	transmission of a motor vehicle transfer and registration by a new or used motor vehicle 
286.27 	dealer, a deputy registrar who is equipped with electronic transmission technology and 
286.28 	trained in its use shall receive the filing fee provided for in subdivision 7 and review the 
286.29 	transfer of each new or used motor vehicle to determine its genuineness and regularity 
286.30 	before issuance of a certificate of title, and shall receive and retain the filing fee under 
286.31 	subdivision 7, paragraph (a), clause (ii) (2).
286.32 	(b) The commissioner must establish reasonable performance, security, technical, and 
286.33 	financial standards to approve companies that provide computer software and services to 
287.1 	motor vehicle dealers to electronically transmit vehicle title transfer and registration 
287.2 	information. An approved company must be offered access to department facilities, staff, 
287.3 	and technology on a fair and reasonable basis.

287.4 	Sec. 25. Minnesota Statutes 2016, section 168.33, is amended by adding a subdivision to 
287.5 	read:
287.6 		Subd. 8b.Transactions by mail. A deputy registrar may receive motor vehicle 
287.7 	applications and submissions under this chapter and chapter 168A by mail, process the 
287.8 	transactions, and retain the appropriate filing fee under subdivision 7.

287.9 	EFFECTIVE DATE. This section is effective July 1, 2019.

287.10 	Sec. 26. Minnesota Statutes 2016, section 168.345, subdivision 2, is amended to read:
287.11 		Subd. 2.Lessees; information. The commissioner may not furnish information about 
287.12 	registered owners of passenger automobiles who are lessees under a lease for a term of 180 
287.13 	days or more to any person except the personnel of law enforcement agencies and, trade 
287.14 	associations performing a member service under section 604.15, subdivision 4a, federal, 
287.15 	state, and local governmental units, and, at the commissioner's discretion, to persons who 
287.16 	use the information to notify lessees of automobile recalls. The commissioner may release 
287.17 	information about lessees in the form of summary data, as defined in section 13.02, to 
287.18 	persons who use the information in conducting statistical analysis and market research.

287.19 	Sec. 27. Minnesota Statutes 2016, section 168.346, subdivision 1, is amended to read:
287.20 		Subdivision 1.Vehicle registration data; federal compliance. (a) Data on an individual 
287.21 	provided to register a vehicle shall be treated as provided by United States Code, title 18, 
287.22 	section 2721, as in effect on May 23, 2005, and shall be disclosed as required or permitted 
287.23 	by that section. The commissioner is prohibited from restricting the uses for which a licensed 
287.24 	dealer may obtain data as permitted by United States Code, title 18, section 2721, subsections 
287.25 	(b)(2), (3), (7), and (13). The commissioner shall disclose the data in bulk form to an 
287.26 	authorized recipient upon request for any of the permissible uses described in United States 
287.27 	Code, title 18, section 2721.
287.28 	(b) The registered owner of a vehicle who is an individual may consent in writing to the 
287.29 	commissioner to disclose the individual's personal information exempted by United States 
287.30 	Code, title 18, section 2721, to any person who makes a written request for the personal 
287.31 	information. If the registered owner is an individual and so authorizes disclosure, the 
287.32 	commissioner shall implement the request.
288.1 	(c) If authorized by the registered owner as indicated in paragraph (b), the registered 
288.2 	owner's personal information may be used, rented, or sold solely for bulk distribution by 
288.3 	organizations for business purposes including surveys, marketing, or solicitation.

288.4 	Sec. 28. Minnesota Statutes 2016, section 168A.02, subdivision 1, is amended to read:
288.5 		Subdivision 1.Application for certificate of title. (a) Except as provided in section 
288.6 	168A.03, every owner of a vehicle which is in this state and for which no currently effective 
288.7 	certificate of title has been issued in this state shall make application must apply to the 
288.8 	department for a certificate of title of the vehicle, pursuant to rules adopted by the department 
288.9 	under section 168A.24, subdivision 2, clause 3 (3).
288.10 	(b) A decommissioned military vehicle that (1) was also manufactured and sold as a 
288.11 	comparable civilian vehicle, and (2) has the same size dimensions and vehicle weight as 
288.12 	the comparable civilian vehicle, is eligible for a certificate of title under this chapter.

288.13 	Sec. 29. Minnesota Statutes 2016, section 168A.12, subdivision 2, is amended to read:
288.14 		Subd. 2.Owner's interest terminated or vehicle sold by secured party. If the interest 
288.15 	of the owner is terminated or the vehicle is sold under a security agreement by a secured 
288.16 	party named in the certificate of title or an assignee of the secured party, the transferee shall
288.17 	must promptly mail or deliver to the department the last certificate of title, if available, an 
288.18 	application for a new certificate in the format the department prescribes, and an affidavit 
288.19 	made by or on behalf of the secured party or assignee that the interest of the owner was 
288.20 	lawfully terminated or the vehicle sold pursuant to the terms of the security agreement. If 
288.21 	the secured party or assignee succeeds to the interest of the owner and holds the vehicle for 
288.22 	resale, the secured party or assignee need not secure a new certificate of title; provided that 
288.23 	a notice thereof in a format designated by the department is mailed or delivered by the 
288.24 	secured party or assignee to the department in duplicate within 48 hours, but upon transfer 
288.25 	to another person the secured party or assignee shall promptly execute assignment and 
288.26 	warranty of title and mail or deliver to the transferee or the department the certificate, if 
288.27 	available, the affidavit, and other documents required to be sent to the department by the 
288.28 	transferee.

288.29 	Sec. 30. Minnesota Statutes 2016, section 168A.151, subdivision 1, is amended to read:
288.30 		Subdivision 1.Salvage titles. (a) When an insurer, licensed to conduct business in 
288.31 	Minnesota, acquires ownership of a late-model or high-value vehicle through payment of 
288.32 	damages, the insurer shall must immediately apply for a salvage certificate of title or shall
289.1 	must stamp the existing certificate of title with the legend "SALVAGE CERTIFICATE OF 
289.2 	TITLE" in a manner prescribed by the department. Within ten days of obtaining the title of 
289.3 	a vehicle through payment of damages, an insurer must notify the department in a manner 
289.4 	prescribed by the department.
289.5 	(b) A person shall must immediately apply for a salvage certificate of title if the person 
289.6 	acquires a damaged late-model or high-value vehicle with an out-of-state title and the 
289.7 	vehicle:
289.8 	(1) is a vehicle that was acquired by an insurer through payment of damages;
289.9 	(2) is a vehicle for which the cost of repairs exceeds the value of the damaged vehicle; 
289.10 	or
289.11 	(3) has an out-of-state salvage certificate of title as proof of ownership.
289.12 	(c) A self-insured owner of a late-model or high-value vehicle that sustains damage by 
289.13 	collision or other occurrence which exceeds 80 percent of its actual cash value shall must
289.14 	immediately apply for a salvage certificate of title.

289.15 	Sec. 31. Minnesota Statutes 2016, section 168A.17, is amended by adding a subdivision 
289.16 	to read:
289.17 		Subd. 4.Notice of perfection by dealer. When a security interest in a vehicle sold by 
289.18 	a dealer licensed under section 168.27 is perfected under subdivision 2, the dealer may 
289.19 	provide a statement of perfection to the secured party on a form provided by the department. 
289.20 	The statement must certify compliance with subdivision 2 and contain the date of delivery 
289.21 	to the department. The information provided in the dealer's statement is considered prima 
289.22 	facie evidence of the facts contained in it.

289.23 	Sec. 32. [168A.241] MOTOR VEHICLE TITLE AND REGISTRATION ADVISORY 
289.24 	COMMITTEE.
289.25 		Subdivision 1.Members. (a) The Motor Vehicle Title and Registration Advisory 
289.26 	Committee consists of the following 13 members:
289.27 	(1) two members of the house of representatives, one appointed by the speaker of the 
289.28 	house and one appointed by the minority leader;
289.29 	(2) two members of the senate, one appointed by the majority leader and one appointed 
289.30 	by the minority leader;
289.31 	(3) one representative from the Minnesota Deputy Registrar's Association;
290.1 	(4) one representative from the Minnesota Automobile Dealers Association;
290.2 	(5) one representative from the Northland Independent Automobile Dealers Association;
290.3 	(6) one staff member from the Department of Public Safety Driver and Vehicle Services 
290.4 	Division;
290.5 	(7) two representatives from deputy registrars, appointed by the commissioner;
290.6 	(8) two representatives from dealers licensed under section 168.27, appointed by the 
290.7 	commissioner; and
290.8 	(9) one representative who performs auctions exclusively for dealers licensed under 
290.9 	section 168.27 and not for the general public, appointed by the commissioner following 
290.10 	consultation with eligible auto auction businesses.
290.11 	(b) Section 15.059 governs the Motor Vehicle Title and Registration Advisory Committee, 
290.12 	except that committee members must not receive compensation for serving on the advisory 
290.13 	committee.
290.14 		Subd. 2.Organization. (a) The members of the advisory committee must annually elect 
290.15 	a chair and other officers as the members deem necessary.
290.16 	(b) The advisory committee must meet at least two times per year.
290.17 		Subd. 3.Open meetings. The advisory committee is subject to chapter 13D. An advisory 
290.18 	committee meeting occurs when a quorum is present and the members receive information, 
290.19 	discuss, or take action on any matter relating to the advisory committee's duties. The advisory 
290.20 	committee may conduct meetings as provided in section 13D.015 or 13D.02. The advisory 
290.21 	committee may conduct meetings at any location in the state that is appropriate for the 
290.22 	purposes of the advisory committee, provided the location is open and accessible to the 
290.23 	public. For legislative members of the advisory committee, enforcement of this subdivision 
290.24 	is governed by section 3.055, subdivision 2. For nonlegislative members of the advisory 
290.25 	committee, enforcement of this subdivision is governed by section 13D.06, subdivisions 1 
290.26 	and 2.
290.27 		Subd. 4.Staff. The commissioner must provide support staff, office space, and 
290.28 	administrative services to the advisory committee.
290.29 		Subd. 5.Duties. The advisory committee's duties include but are not limited to:
290.30 	(1) serving in an advisory capacity to the commissioner of public safety and the director 
290.31 	of driver and vehicle services on matters relevant to:
291.1 	(i) effective and efficient systems relating to the ownership, transfer, and registration of 
291.2 	motor vehicles; and
291.3 	(ii) planning and implementing future changes and enhancements to vehicle registration 
291.4 	systems; and
291.5 	(2) reviewing and making recommendations with respect to work plans, policy initiatives, 
291.6 	major activities, and strategic planning.
291.7 		Subd. 6.Report and recommendations. By February 15 each year, the commissioner 
291.8 	must prepare and submit to the chairs and ranking minority members of the committees of 
291.9 	the house of representatives and the senate with jurisdiction over motor vehicle title and 
291.10 	registration a report that summarizes the advisory committee's activities, issues identified 
291.11 	by the advisory committee, methods taken to address the issues, and recommendations for 
291.12 	legislative action, if needed.
291.13 		Subd. 7.Expiration. The advisory committee expires June 30, 2021.

291.14 	EFFECTIVE DATE; APPLICATION. This section is effective July 1, 2018. The 
291.15 	initial report under subdivision 6 must be submitted on or before February 15, 2019.

291.16 	Sec. 33. Minnesota Statutes 2016, section 168A.29, subdivision 1, is amended to read:
291.17 		Subdivision 1.Amounts. (a) The department must be paid the following fees:
291.18 	(1) for filing an application for and the issuance of an original certificate of title, the 
291.19 	sum of:
291.20 	(i) until December 31, 2016, $6.25 of which $3.25 must be paid into the vehicle services 
291.21 	operating account of the special revenue fund under section 299A.705, and from July 1, 
291.22 	2012, to June 30, 2016, a surcharge of $1 must be added to the fee and credited to the driver 
291.23 	and vehicle services technology account; and
291.24 	(ii) on and after January 1, 2017, $8.25, of which $4.15 must be paid into the vehicle 
291.25 	services operating account under section 299A.705;
291.26 	(2) for each security interest when first noted upon a certificate of title, including the 
291.27 	concurrent notation of any assignment thereof and its subsequent release or satisfaction, the 
291.28 	sum of $2, except that no fee is due for a security interest filed by a public authority under 
291.29 	section 168A.05, subdivision 8;
291.30 	(3) until December 31, 2016, for the transfer of the interest of an owner and the issuance 
291.31 	of a new certificate of title, the sum of $5.50 of which $2.50 must be paid into the vehicle 
291.32 	services operating account of the special revenue fund under section 299A.705, and from 
292.1 	July 1, 2012, to June 30, 2016, a surcharge of $1 must be added to the fee and credited to 
292.2 	the driver and vehicle services technology account;
292.3 	(4)(3) for each assignment of a security interest when first noted on a certificate of title, 
292.4 	unless noted concurrently with the security interest, the sum of $1; and
292.5 	(5) (4) for issuing a duplicate certificate of title, the sum of $7.25, of which $3.25 must 
292.6 	be paid into the vehicle services operating account of the special revenue fund under section 
292.7 	299A.705; from July 1, 2012, to June 30, 2016, a surcharge of $1 must be added to the fee 
292.8 	and credited to the driver and vehicle services technology account.
292.9 	(b) In addition to the fee required under paragraph (a), clause (1), the department must 
292.10 	be paid $3.50. The additional $3.50 fee collected under this paragraph must be deposited 
292.11 	in the special revenue fund and credited to the public safety motor vehicle account established 
292.12 	in section 299A.70.

292.13 	Sec. 34. Minnesota Statutes 2016, section 169.011, subdivision 5, is amended to read:
292.14 		Subd. 5.Bicycle lane. "Bicycle lane" means a portion of a roadway or shoulder designed 
292.15 	for exclusive or preferential use by persons using bicycles. Bicycle lanes are to be 
292.16 	distinguished from the portion of the roadway or shoulder used for motor vehicle traffic by 
292.17 	physical barrier, striping, marking, or other similar device.

292.18 	Sec. 35. Minnesota Statutes 2016, section 169.011, subdivision 9, is amended to read:
292.19 		Subd. 9.Bikeway. "Bikeway" means a bicycle lane, bicycle path, or bicycle route, shared 
292.20 	use path, or similar bicycle facility, regardless of whether it is designed for the exclusive 
292.21 	use of bicycles or is to be for shared use with other transportation modes.

292.22 	Sec. 36. Minnesota Statutes 2016, section 169.011, subdivision 60, is amended to read:
292.23 		Subd. 60.Railroad train. "Railroad train" means a steam engine, electric or other motor, 
292.24 	with or without cars coupled thereto, operated upon rails, except streetcars. Railroad train 
292.25 	includes on-track equipment or other rolling stock operated upon rails, whether self-propelled 
292.26 	or coupled to another device, if the on-track equipment or rolling stock activates grade 
292.27 	crossing warning signals or gates when signals are present.

292.28 	Sec. 37. Minnesota Statutes 2016, section 169.14, subdivision 5, is amended to read:
292.29 		Subd. 5.Zoning within local area. (a) When local authorities believe that the existing 
292.30 	speed limit upon any street or highway, or part thereof, within their respective jurisdictions 
293.1 	and not a part of the trunk highway system is greater or less than is reasonable or safe under 
293.2 	existing conditions, they may request the commissioner to authorize, upon the basis of an 
293.3 	engineering and traffic investigation, the erection of appropriate signs designating what 
293.4 	speed is reasonable and safe, and the commissioner may authorize the erection of appropriate 
293.5 	signs designating a reasonable and safe speed limit thereat, which speed limit shall be 
293.6 	effective when such signs are erected. Any speeds in excess of these speed limits shall be 
293.7 	prima facie evidence that the speed is not reasonable or prudent and that it is unlawful; 
293.8 	except that any speed limit within any municipality shall be a maximum limit and any speed 
293.9 	in excess thereof shall be unlawful. Alteration of speed limits on streets and highways shall 
293.10 	be made only upon authority of the commissioner except as provided in subdivision 5a.
293.11 	(b) At the request of a county board, the commissioner may establish a speed limit in 
293.12 	excess of 55 miles per hour on a county road or county state-aid highway upon the basis of 
293.13 	an engineering and traffic investigation. The county engineer must erect appropriate signs 
293.14 	and the increased speed limit is effective when the signs are erected.

293.15 	EFFECTIVE DATE. This section is effective June 1, 2018.

293.16 	Sec. 38. Minnesota Statutes 2016, section 169.18, subdivision 3, is amended to read:
293.17 		Subd. 3.Passing. The following rules shall govern the overtaking and passing of vehicles 
293.18 	proceeding in the same direction, subject to the limitations, exceptions, and special rules 
293.19 	hereinafter stated:
293.20 	(1) (a) The driver of a vehicle overtaking another vehicle proceeding in the same direction 
293.21 	shall must pass to the left thereof of the other vehicle at a safe distance and shall not again 
293.22 	drive is prohibited from returning to the right side of the roadway until safely clear of the 
293.23 	overtaken vehicle;.
293.24 	(2) (b) Except when overtaking and passing on the right is permitted, the driver of an 
293.25 	overtaken vehicle shall must give way to the right in favor of the overtaking vehicle on 
293.26 	audible warning, and shall must not increase the speed of the overtaken vehicle until 
293.27 	completely passed by the overtaking vehicle; and.
293.28 	(3) (c) The operator of a motor vehicle overtaking a bicycle or individual proceeding in 
293.29 	the same direction on the roadway shall leaveor shoulder must:
293.30 	(1) either (i) maintain a safe clearance distance while passing, but in no case less than 
293.31 	three feet clearance, when passing the bicycle or individual or one-half the width of the 
293.32 	motor vehicle, whichever is greater; or (ii) completely enter another lane of the roadway 
293.33 	while passing; and shall
294.1 	(2) maintain clearance until the motor vehicle has safely past passed the overtaken bicycle 
294.2 	or individual.

294.3 	Sec. 39. Minnesota Statutes 2017 Supplement, section 169.18, subdivision 7, is amended 
294.4 	to read:
294.5 		Subd. 7.Laned highway. When any roadway has been divided into two or more clearly 
294.6 	marked lanes for traffic, the following rules, in addition to all others consistent herewith
294.7 	with this subdivision, shall apply:
294.8 	(a) (1) a vehicle shall be driven as nearly as practicable entirely within a single lane and 
294.9 	shall must not be moved from such the lane until the driver has first ascertained that such
294.10 	the movement can be made with safety.;
294.11 	(b) (2) upon a roadway which is not a one-way roadway and which is divided into three 
294.12 	lanes, a vehicle shall must not be driven in the center lane except when overtaking and 
294.13 	passing another vehicle where the roadway is clearly visible and such the center lane is 
294.14 	clear of traffic within a safe distance, or in preparation for a left turn or where such the
294.15 	center lane is at the time allocated exclusively to traffic moving in the direction the vehicle 
294.16 	is proceeding, and is signposted to give notice of such the allocation. The left lane of a 
294.17 	three-lane roadway which is not a one-way roadway shall must not be used for overtaking 
294.18 	and passing another vehicle.;
294.19 	(c) (3) official signs may be erected directing slow-moving traffic to use a designated 
294.20 	lane or allocating specified lanes to traffic moving in the same direction, and drivers of 
294.21 	vehicles shall must obey the directions of every such sign.;
294.22 	(d) (4) whenever a bicycle lane has been established on a roadway, any person operating 
294.23 	a motor vehicle on such the roadway shall must not drive in the bicycle lane except to 
294.24 	perform parking maneuvers in order to park where parking is permitted, to enter or leave 
294.25 	the highway, to prepare for a turn as provided in section 169.19, subdivision 1, or to stop 
294.26 	a school bus for the purpose of receiving or discharging any person provided the school bus 
294.27 	is equipped and identified as provided in sections 169.441 and 169.442, subdivision 1, and 
294.28 	the flashing red signals are activated and stop-signal arm is extended.; and
294.29 	(5) notwithstanding clause (1), the operator of a vehicle or combination of vehicles with 
294.30 	a total length exceeding 40 feet or a total width exceeding ten feet may, with due regard for 
294.31 	all other traffic, deviate from the lane in which the operator is driving to the extent necessary 
294.32 	to approach and drive through a roundabout.

295.1 	Sec. 40. Minnesota Statutes 2016, section 169.18, subdivision 10, is amended to read:
295.2 		Subd. 10.Slow-moving vehicle. Upon all roadways any(a) A person operating a vehicle 
295.3 	proceeding at less than the normal speed of traffic at the time and place and under the 
295.4 	existing conditions then existing shall be drivenmust drive in the right-hand lane then 
295.5 	available for traffic, or as close as practicable to the right-hand curb or edge of the roadway, 
295.6 	except when. A person who violates this paragraph must pay a fine of not less than $100.
295.7 	(b) Paragraph (a) does not apply if:
295.8 	(1) the vehicle is overtaking and passing another vehicle proceeding in the same direction, 
295.9 	or when;
295.10 	(2) the vehicle is preparing for a left to turn left at an intersection or into a private road 
295.11 	or driveway, or when;
295.12 	(3) a specific lane is designated and posted for a specific type of traffic.; or
295.13 	(4) the vehicle is preparing to exit a controlled access highway by using an exit on the 
295.14 	left side of the road.

295.15 	Sec. 41. Minnesota Statutes 2016, section 169.18, subdivision 11, is amended to read:
295.16 		Subd. 11.Passing parked emergency vehicle; citation; probable cause. (a) When 
295.17 	approaching and before passing an authorized emergency vehicle with its emergency lights 
295.18 	activated that is parked or otherwise stopped on or next to a street or highway having two 
295.19 	lanes in the same direction, the driver of a vehicle shall safely move the vehicle to the lane 
295.20 	farthest away from the emergency vehicle, if it is possible to do so. If a lane change under 
295.21 	this paragraph is impossible, the driver of the vehicle must reduce the speed of the motor 
295.22 	vehicle to a speed that is reasonable and prudent under the conditions until the motor vehicle 
295.23 	has completely passed the parked or stopped emergency vehicle, if it is possible to do so.
295.24 	(b) When approaching and before passing an authorized emergency vehicle with its 
295.25 	emergency lights activated that is parked or otherwise stopped on or next to a street or 
295.26 	highway having more than two lanes in the same direction, the driver of a vehicle shall 
295.27 	safely move the vehicle so as to leave a full lane vacant between the driver and any lane in 
295.28 	which the emergency vehicle is completely or partially parked or otherwise stopped, if it is 
295.29 	possible to do so. If a lane change under this paragraph is impossible, the driver of the 
295.30 	vehicle must reduce the speed of the motor vehicle to a speed that is reasonable and prudent 
295.31 	under the conditions until the motor vehicle has completely passed the parked or stopped 
295.32 	emergency vehicle, if it is possible to do so.
296.1 	(c) When approaching and before passing an authorized emergency vehicle with its 
296.2 	emergency lights activated that is parked or otherwise stopped on or next to a street or 
296.3 	highway having only one lane in the same direction, the driver of the vehicle must reduce 
296.4 	the speed of the motor vehicle to a speed that is reasonable and prudent under the conditions 
296.5 	until the motor vehicle has completely passed the parked or stopped emergency vehicle, if 
296.6 	it is possible to do so.
296.7 	(c) (d) A peace officer may issue a citation to the driver of a motor vehicle if the peace 
296.8 	officer has probable cause to believe that the driver has operated the vehicle in violation of 
296.9 	this subdivision within the four-hour period following the termination of the incident or a 
296.10 	receipt of a report under paragraph (d) (e). The citation may be issued even though the 
296.11 	violation was not committed in the presence of the peace officer.
296.12 	(d) (e) Although probable cause may be otherwise satisfied by other evidentiary elements 
296.13 	or factors, probable cause is sufficient for purposes of this subdivision when the person 
296.14 	cited is operating the vehicle described by a member of the crew of an authorized emergency 
296.15 	vehicle responding to an incident in a timely report of the violation of this subdivision, 
296.16 	which includes a description of the vehicle used to commit the offense and the vehicle's 
296.17 	license plate number. For the purposes of issuance of a citation under paragraph (c)(d), 
296.18 	"timely" means that the report must be made within a four-hour period following the 
296.19 	termination of the incident.
296.20 	(e) (f) For purposes of paragraphs (a) and (b)to (c) only, the terms "authorized emergency 
296.21 	vehicle" and "emergency vehicle" include a towing vehicle defined in section 168B.011, 
296.22 	subdivision 12a, that has activated flashing lights authorized under section 169.64, 
296.23 	subdivision 3, in addition to the vehicles described in the definition for "authorized 
296.24 	emergency vehicle" in section 169.011, subdivision 3.

296.25 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to offenses 
296.26 	committed on or after that date.

296.27 	Sec. 42. Minnesota Statutes 2016, section 169.18, subdivision 12, is amended to read:
296.28 		Subd. 12.Passing certain parked vehicles. (a) When approaching and before passing 
296.29 	a freeway service patrol vehicle, road maintenance vehicle, utility company vehicle, or 
296.30 	construction vehicle with its warning lights activated that is parked or otherwise stopped 
296.31 	on or next to a street or highway having two lanes in the same direction, the driver of a 
296.32 	vehicle shall safely move the vehicle to the lane farthest away from the parked or stopped 
296.33 	vehicle, if it is possible to do so. If a lane change under this paragraph is impossible, the 
296.34 	driver of the vehicle must reduce the speed of the motor vehicle to a speed that is reasonable 
297.1 	and prudent under the conditions until the motor vehicle has completely passed the parked 
297.2 	or stopped freeway service patrol vehicle, road maintenance vehicle, utility company vehicle, 
297.3 	or construction vehicle, if it is possible to do so.
297.4 	(b) When approaching and before passing a freeway service patrol vehicle, road 
297.5 	maintenance vehicle, utility company vehicle, or construction vehicle with its warning lights 
297.6 	activated that is parked or otherwise stopped on or next to a street or highway having more 
297.7 	than two lanes in the same direction, the driver of a vehicle shall safely move the vehicle 
297.8 	so as to leave a full lane vacant between the driver and any lane in which the vehicle is 
297.9 	completely or partially parked or otherwise stopped, if it is possible to do so. If a lane change 
297.10 	under this paragraph is impossible, the driver of the vehicle must reduce the speed of the 
297.11 	motor vehicle to a speed that is reasonable and prudent under the conditions until the motor 
297.12 	vehicle has completely passed the parked or stopped freeway service patrol vehicle, road 
297.13 	maintenance vehicle, utility company vehicle, or construction vehicle, if it is possible to do 
297.14 	so.
297.15 	(c) When approaching and before passing a freeway service patrol vehicle, road 
297.16 	maintenance vehicle, utility company vehicle, or construction vehicle with its warning lights 
297.17 	activated that is parked or otherwise stopped on or next to a street or highway having only 
297.18 	one lane in the same direction, the driver of the vehicle must reduce the speed of the motor 
297.19 	vehicle to a speed that is reasonable and prudent under the conditions until the motor vehicle 
297.20 	has completely passed the parked or stopped freeway service patrol vehicle, road maintenance 
297.21 	vehicle, utility company vehicle, or construction vehicle, if it is possible to do so.

297.22 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to offenses 
297.23 	committed on or after that date.

297.24 	Sec. 43. Minnesota Statutes 2016, section 169.20, is amended by adding a subdivision to 
297.25 	read:
297.26 		Subd. 8.Roundabouts. If two vehicles or combinations of vehicles each having a total 
297.27 	length exceeding 40 feet or a total width exceeding ten feet approach or drive through a 
297.28 	roundabout at approximately the same time or so closely as to constitute a hazard of collision, 
297.29 	the operator of the vehicle or combination of vehicles on the right must yield the right-of-way 
297.30 	to the vehicle or combination of vehicles on the left and, if necessary, must reduce speed 
297.31 	or stop in order to so yield.

298.1 	Sec. 44. Minnesota Statutes 2016, section 169.222, subdivision 1, is amended to read:
298.2 		Subdivision 1.Traffic laws apply. (a) Every person operating a bicycle shall have has
298.3 	all of the rights and duties applicable to the driver of any other vehicle by this chapter, 
298.4 	except in respect to those provisions in this chapter relating expressly to bicycles and in 
298.5 	respect to those provisions of this chapter which by their nature cannot reasonably be applied 
298.6 	to bicycles. This subdivision applies to a bicycle operating on the shoulder of a roadway.
298.7 	(b) A person lawfully operating a bicycle (1) on a sidewalk, or (2) across a roadway or 
298.8 	shoulder on a crosswalk, has all the rights and duties applicable to a pedestrian under the 
298.9 	same circumstances.

298.10 	Sec. 45. Minnesota Statutes 2016, section 169.222, subdivision 4, is amended to read:
298.11 		Subd. 4.Riding rules. (a) Every person operating a bicycle upon a roadway shall on a 
298.12 	road must ride as close as practicable to the right-hand curb or edge of the roadway except 
298.13 	under any of the following situations road as the bicycle operator determines is safe. A 
298.14 	person operating a bicycle is not required to ride as close to the right-hand curb when:
298.15 	(1) when overtaking and passing another vehicle proceeding in the same direction;
298.16 	(2) when preparing for a left turn at an intersection or into a private road or driveway;
298.17 	(3) when reasonably necessary to avoid conditions that make it unsafe to continue along 
298.18 	the right-hand curb or edge, including fixed or moving objects, vehicles, pedestrians, animals, 
298.19 	surface hazards, or narrow width lanes, that make it unsafe to continue along the right-hand 
298.20 	curb or edge; or
298.21 	(4) when operating on the shoulder of a roadway or in a bicycle lane; or
298.22 	(5) operating in a right-hand turn lane before entering an intersection.
298.23 	(b) If a bicycle is traveling on a shoulder of a roadway, the bicycle shall operator must
298.24 	travel in the same direction as adjacent vehicular traffic.
298.25 	(c) Persons riding bicycles upon a roadway or shoulder shall must not ride more than 
298.26 	two abreast and shall must not impede the normal and reasonable movement of traffic and, 
298.27 	on a laned roadway, shall ride within a single lane.
298.28 	(d) A person operating a bicycle upon a sidewalk, or across a roadway or shoulder on a 
298.29 	crosswalk, shall must yield the right-of-way to any pedestrian and shall give an audible 
298.30 	signal when necessary before overtaking and passing any pedestrian. No A person shall
298.31 	must not ride a bicycle upon a sidewalk within a business district unless permitted by local 
299.1 	authorities. Local authorities may prohibit the operation of bicycles on any sidewalk or 
299.2 	crosswalk under their jurisdiction.
299.3 	(e) An individual operating a bicycle or other vehicle on a bikeway shall must leave a 
299.4 	safe distance when overtaking a bicycle or individual proceeding in the same direction on 
299.5 	the bikeway, and shall maintain clearance until safely past the overtaken bicycle or individual.
299.6 	(f) A person lawfully operating a bicycle on a sidewalk, or across a roadway or shoulder 
299.7 	on a crosswalk, shall have all the rights and duties applicable to a pedestrian under the same 
299.8 	circumstances.
299.9 	(g)(f) A person may operate an electric-assisted bicycle on the shoulder of a roadway, 
299.10 	on a bikeway, or on a bicycle trail if not otherwise prohibited under section 85.015, 
299.11 	subdivision 1d; 85.018, subdivision 2, paragraph (d); or 160.263, subdivision 2, paragraph 
299.12 	(b), as applicable.
299.13 	(g) Notwithstanding section 169.06, subdivision 4, a bicycle operator may cross an 
299.14 	intersection proceeding from a dedicated right-hand turn lane without turning right.

299.15 	Sec. 46. Minnesota Statutes 2016, section 169.26, subdivision 1, is amended to read:
299.16 		Subdivision 1.Requirements. (a) Except as provided in section 169.28, subdivision 1, 
299.17 	when any person driving a vehicle approaches a railroad grade crossing under any of the 
299.18 	circumstances stated in this paragraph, the driver shall must stop the vehicle not less than 
299.19 	ten feet from the nearest railroad track and shall not proceed until safe to do so and until 
299.20 	the roadway is clear of traffic so that the vehicle can proceed without stopping until the rear 
299.21 	of the vehicle is at least ten feet past the farthest railroad track. These requirements apply 
299.22 	when:
299.23 	(1) a clearly visible electric or mechanical signal device warns of the immediate approach 
299.24 	of a railroad train; or
299.25 	(2) an approaching railroad train is plainly visible and is in hazardous proximity.
299.26 	(b) The fact that a moving railroad train approaching a railroad grade crossing is visible 
299.27 	from the crossing is prima facie evidence that it is not safe to proceed.
299.28 	(c) The driver of a vehicle shall must stop and remain stopped and not traverse the grade 
299.29 	crossing when a human flagger signals the approach or passage of a railroad train or when 
299.30 	a crossing gate is lowered warning of the immediate approach or passage of a railroad train. 
299.31 	No person may drive a vehicle past a flagger at a railroad crossing until the flagger signals 
299.32 	that the way is clear to proceed or drive a vehicle past a lowered crossing gate.

300.1 	Sec. 47. Minnesota Statutes 2016, section 169.28, is amended to read:
300.2 	169.28 CERTAIN VEHICLES TO STOP AT RAILROAD CROSSING.
300.3 		Subdivision 1.Requirements. (a) The driver of any motor vehicle carrying passengers 
300.4 	for hire, or of any school bus whether carrying passengers or not, or of any Head Start bus 
300.5 	whether carrying passengers or not, or of any vehicle that is required to stop at railroad 
300.6 	grade crossings under Code of Federal Regulations, title 49, section 392.10, before crossing 
300.7 	at grade any track or tracks of a railroad, shall must stop the vehicle not less than 15 feet 
300.8 	nor more than 50 feet from the nearest rail of the railroad and while so stopped shall must
300.9 	listen and look in both directions along the track for any approaching railroad train, and for 
300.10 	signals indicating the approach of a railroad train, except as hereinafter otherwise provided, 
300.11 	and shall in this section. The driver must not proceed until safe to do so and until the roadway 
300.12 	is clear of traffic so that the vehicle can proceed without stopping until the rear of the vehicle 
300.13 	is at least ten feet past the farthest railroad track. The driver must not shift gears while 
300.14 	crossing the railroad tracks.
300.15 	(b) A school bus or Head Start bus shall must not be flagged across railroad grade 
300.16 	crossings except at those railroad grade crossings that the local school administrative officer 
300.17 	may designate.
300.18 	(c) A type III vehicle, as defined in section 169.011, is exempt from the requirement of 
300.19 	school buses to stop at railroad grade crossings.
300.20 	(d) The requirements of this subdivision do not apply to the crossing of light rail vehicle 
300.21 	track or tracks that are located in a public street when:
300.22 	(1) the crossing occurs within the intersection of two or more public streets;
300.23 	(2) the intersection is controlled by a traffic-control signal; and
300.24 	(3) the intersection is marked with signs indicating to drivers that the requirements of 
300.25 	this subdivision do not apply. Notwithstanding any other provision of law, the owner or 
300.26 	operator of the track or tracks is authorized to place, maintain, and display the signs upon 
300.27 	and in the view of the public street or streets.
300.28 		Subd. 2.Exempt crossing. (a) The commissioner may designate a crossing as an exempt 
300.29 	crossing:
300.30 	(1) if the crossing is on a rail line on which service has been abandoned;
300.31 	(2) if the crossing is on a rail line that carries fewer than five trains each year, traveling 
300.32 	at speeds of ten miles per hour or less; or
301.1 	(3) as agreed to by the operating railroad and the Department of Transportation, following 
301.2 	a diagnostic review of the crossing.
301.3 	(b) The commissioner shall must direct the railroad to erect at the crossing signs bearing 
301.4 	the word "Exempt" that conform to section 169.06. The installation or presence of an exempt 
301.5 	sign does not relieve a driver of the duty to use due care.
301.6 	(c) A railroad train must not proceed across an exempt crossing unless a police officer 
301.7 	is present to direct traffic or a railroad employee is on the ground to warn traffic until the
301.8 	railroad train enters the crossing.
301.9 	(c) (d) A vehicle that must stop at grade crossings under subdivision 1 is not required 
301.10 	to stop at a marked exempt crossing unless directed otherwise by a police officer or a railroad 
301.11 	employee.

301.12 	Sec. 48. Minnesota Statutes 2016, section 169.29, is amended to read:
301.13 	169.29 CROSSING RAILROAD TRACKS WITH CERTAIN EQUIPMENT.
301.14 	(a) No A person shall must not operate or move any caterpillar tractor, steam shovel, 
301.15 	derrick, roller, or any equipment or structure having a normal operating speed of six or less 
301.16 	miles per hour or a vertical body or load clearance of less than nine inches above the level 
301.17 	surface of a roadway upon or across any tracks at a railroad grade crossing without first 
301.18 	complying with this section.
301.19 	(b) Before making any crossing, the person operating or moving any vehicle or equipment 
301.20 	set forth in this section shall must first stop the same not less than ten, nor more than 50, 
301.21 	feet from the nearest rail of the railway, and while so stopped shall must listen and look in 
301.22 	both directions along the track for any approaching railroad train and for signals indicating 
301.23 	the approach of a railroad train, and shall must not proceed until the crossing can be made 
301.24 	safely.
301.25 	(c) No A crossing shall must not be made when warning is given by automatic signal 
301.26 	or crossing gates or a flagger or otherwise of the immediate approach of a railroad train or 
301.27 	car.
301.28 	(d) No A stop need be made is not required at a crossing on a rail line on which service 
301.29 	has been abandoned and where a sign erected in conformance with section 169.06 and 
301.30 	bearing the word "Exempt" has been installed, unless directed otherwise by a flagger. The 
301.31 	installation or presence of an exempt sign shall not relieve any driver of the duty to use due 
301.32 	care.

302.1 	Sec. 49. Minnesota Statutes 2017 Supplement, section 169.442, subdivision 5, is amended 
302.2 	to read:
302.3 		Subd. 5.White strobe lamps on certain buses transporting children. Notwithstanding 
302.4 	section 169.55, subdivision 1, or 169.57, subdivision 3, paragraph (b), or other law to the 
302.5 	contrary, A school bus that is subject to and complies with the equipment requirements of 
302.6 	subdivision 1 and section 169.441, subdivision 1, or a Head Start bus, may be equipped 
302.7 	with a flashing strobe lamp under section 169.64, subdivision 8.

302.8 	Sec. 50. Minnesota Statutes 2016, section 169.442, is amended by adding a subdivision 
302.9 	to read:
302.10 		Subd. 6.Supplemental warning system. In addition to the signals required under 
302.11 	subdivision 1, a type A, B, C, or D school bus may be equipped with a supplemental warning 
302.12 	system under section 169.4503, subdivision 31.

302.13 	Sec. 51. Minnesota Statutes 2016, section 169.448, subdivision 1, is amended to read:
302.14 		Subdivision 1.Restrictions on appearance; misdemeanor. (a) A bus that is not used 
302.15 	as a school bus may must not be operated on a street or highway unless it is painted a color 
302.16 	significantly different than national school bus glossy yellow.
302.17 	(b) A bus that is not used as a school bus or Head Start bus may not be operated if it is 
302.18 	equipped with school bus or Head Start bus-related equipment and printing.
302.19 	(c) A violation of this subdivision is a misdemeanor.
302.20 	(d) This subdivision does not apply to a school bus owned by or under contract to a 
302.21 	school district operated as a charter or leased bus.
302.22 	(e) This subdivision does not apply to a school bus operated by a licensed child care 
302.23 	provider if:
302.24 	(1) the stop stop-signal arm is removed;
302.25 	(2) the eight-light system is lighting systems for prewarning flashing amber signals, 
302.26 	flashing red signals, and supplemental warnings under section 169.4503, subdivision 31, 
302.27 	are deactivated;
302.28 	(3) the school bus is identified as a "child care bus" in letters at least eight inches high 
302.29 	on the front and rear top of the bus;
302.30 	(4) the name, address, and telephone number of the owner or operator of the bus is 
302.31 	identified on each front door of the bus in letters not less than three inches high; and
303.1 	(5) the conditions under section 171.02, subdivision 2a, paragraphs (a) through to (j),
303.2 	and (l), and (n), have been met.

303.3 	Sec. 52. Minnesota Statutes 2016, section 169.4503, subdivision 5, is amended to read:
303.4 		Subd. 5.Colors. Fenderettes may be black. The beltline may be painted yellow over 
303.5 	black or black over yellow. The rub rails shall must be black or yellow. The area around 
303.6 	the lenses of alternately flashing signal lamps extending outward from the edge of the lamp 
303.7 	three inches, plus or minus one-quarter inch, to the sides and top and at least one inch to 
303.8 	the bottom, shall must be black. Visors or hoods, black in color, with a minimum of four 
303.9 	inches may be provided.

303.10 	Sec. 53. Minnesota Statutes 2016, section 169.4503, subdivision 13, is amended to read:
303.11 		Subd. 13.Identification. (a) Each bus shall must, in the beltline, identify the school 
303.12 	district serviced, or company name, or owner of the bus. Numbers necessary for identification 
303.13 	must appear on the sides and rear of the bus. Symbols or letters may be used on the outside 
303.14 	of the bus near the entrance door for student identification. A manufacturer's nameplate or 
303.15 	logo may be placed on the bus.
303.16 	(b) Effective December 31, 1994, All type A, B, C, and D buses sold must display 
303.17 	lettering "Unlawful to pass when red lights are flashing" on the rear of the bus. The lettering 
303.18 	shall must be in two-inch black letters on school bus yellow background. This message shall
303.19 	must be displayed directly below the upper window of the rear door. On rear engine buses, 
303.20 	it shall must be centered at approximately the same location. Only signs and lettering 
303.21 	approved or required by state law may are permitted to be displayed.
303.22 	(c) The requirements of paragraph (b) do not apply to a type A, B, C, or D school bus 
303.23 	that is equipped with a changeable electronic message sign on the rear of the bus that:
303.24 	(1) displays one or more of the messages: "Caution / stopping," "Unlawful to pass," 
303.25 	"Stop / do not pass," or similar messages approved by the commissioner;
303.26 	(2) displays messages in conjunction with bus operation and activation of prewarning 
303.27 	flashing amber signals, flashing red signals, or stop-signal arm, as appropriate; and
303.28 	(3) is a supplemental warning system under section 169.4503, subdivision 31.

304.1 	Sec. 54. Minnesota Statutes 2016, section 169.4503, is amended by adding a subdivision 
304.2 	to read:
304.3 		Subd. 31.Supplemental warning system; temporary authority. (a) Prior to August 
304.4 	1, 2021, the commissioner may approve a type A, B, C, or D school bus to be equipped 
304.5 	with a supplemental warning system. On and after that date, a school bus may continue to 
304.6 	be equipped with a previously approved supplemental warning system.
304.7 	(b) To determine approval of a supplemental warning system, the commissioner must 
304.8 	consider:
304.9 	(1) signal colors, which are limited to one or more of the colors white, amber, and red;
304.10 	(2) flashing patterns;
304.11 	(3) vehicle mounting and placement;
304.12 	(4) supplemental warning system activation in conjunction with activation of prewarning 
304.13 	flashing amber signals, stop-signal arm, and flashing red signals;
304.14 	(5) light intensity; and
304.15 	(6) permissible text, signage, and graphics, if any.
304.16 	(c) The commissioner must review relevant research findings and experience in other 
304.17 	jurisdictions, and must consult with interested stakeholders, including but not limited to 
304.18 	representatives from school district pupil transportation directors, private school bus 
304.19 	operators, and pupil transportation and traffic safety associations.

304.20 	Sec. 55. Minnesota Statutes 2016, section 169.475, subdivision 2, is amended to read:
304.21 		Subd. 2.Prohibition on use; penalty. (a) NoWhen a motor vehicle is in motion or a 
304.22 	part of traffic, the person may operate a motoroperating the vehicle whileis prohibited 
304.23 	from using a wireless communications device to compose, read, or send an electronic 
304.24 	message, when the vehicle is in motion or a part of traffic.
304.25 	(b) Except as provided in section 169.89, subdivision 1, clause (1) or (2), a person who 
304.26 	violates this subdivision is guilty of a petty misdemeanor. A person who violates this 
304.27 	subdivision within five years of the first of two or more prior violations of this subdivision 
304.28 	is guilty of a misdemeanor.
304.29 	(c) A court must require a person who violates paragraph (a)this subdivision to pay the 
304.30 	following fine:
304.31 	(1) for a first offense, a fine of $150;
305.1 	(2) for a second or subsequent time must payoffense, a fine of $225 $300, plus the 
305.2 	amount specified in the uniform fine schedule established by the Judicial Council; or
305.3 	(3) for an offense committed within five years of the first of two or more prior violations 
305.4 	under this subdivision, a fine of $500.

305.5 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
305.6 	committed on or after that date.

305.7 	Sec. 56. Minnesota Statutes 2016, section 169.55, subdivision 1, is amended to read:
305.8 		Subdivision 1.Lights or reflectors required. At the times when lighted lamps on 
305.9 	vehicles are required each vehicle including an animal-drawn vehicle and any vehicle 
305.10 	specifically excepted in sections 169.47 to 169.79, with respect to equipment and not 
305.11 	hereinbefore specifically previously required to be equipped with lamps, shall must be 
305.12 	equipped with one or more lighted lamps or lanterns projecting a white light visible from 
305.13 	a distance of 500 feet to the front of the vehicle and with a lamp or lantern exhibiting a red 
305.14 	light visible from a distance of 500 feet to the rear, except that reflectors meeting the 
305.15 	maximum requirements of this chapter may be used in lieu of the lights required in this 
305.16 	subdivision. It shall be unlawful except as otherwise provided in this subdivision, to project 
305.17 	a white light to the rear of any such vehicle while traveling on any street or highway, unless 
305.18 	such vehicle is moving in reverse. A lighting device mounted on top of a vehicle engaged 
305.19 	in deliveries to residences may project a white light to the rear if the sign projects one or 
305.20 	more additional colors to the rear. An authorized emergency vehicle may display an 
305.21 	oscillating, alternating, or rotating white light used in connection with an oscillating, 
305.22 	alternating, or rotating red light when responding to emergency calls.

305.23 	Sec. 57. Minnesota Statutes 2016, section 169.57, subdivision 3, is amended to read:
305.24 		Subd. 3.Maintenance. (a) When a vehicle is equipped with stop lamps or signal lamps, 
305.25 	such the lamps shall must at all times be maintained in good working condition.
305.26 	(b) No stop lamps or signal lamp shall project a glaring or dazzling light.
305.27 	(c) All mechanical signal devices shall must be self-illumined when in use at the times 
305.28 	when lighted lamps on vehicles are required.

305.29 	Sec. 58. Minnesota Statutes 2016, section 169.64, subdivision 3, is amended to read:
305.30 		Subd. 3.Flashing lights; glaring lights. (a) Flashing lights are prohibited, except:
306.1 	(1) on an authorized emergency vehicle, school bus, bicycle as provided in section 
306.2 	169.222, subdivision 6, road maintenance equipment, tow truck or towing vehicle as provided 
306.3 	in section 168B.16, service vehicle, farm tractor, self-propelled farm equipment, rural mail 
306.4 	carrier vehicle, or funeral home vehicle, or;
306.5 	(2) on any vehicle as a means of indicating a right or left turn, or the presence of a 
306.6 	vehicular traffic hazard requiring unusual care in approaching, overtaking, or passing.; or
306.7 	(3) as otherwise provided in this section.
306.8 	(b) All flashing warning lights shall must be of the type authorized by section 169.59, 
306.9 	subdivision 4, unless otherwise permitted or required in this chapter.
306.10 	(c) A stop lamp or signal lamp is prohibited from projecting a glaring or dazzling light, 
306.11 	except for:
306.12 	(1) strobe lamps as provided under subdivision 8 or section 169.59, subdivision 4; or
306.13 	(2) a school bus equipped with a supplemental warning system under section 169.4503, 
306.14 	subdivision 31.

306.15 	Sec. 59. Minnesota Statutes 2016, section 169.64, is amended by adding a subdivision to 
306.16 	read:
306.17 		Subd. 4a.White light. (a) It is unlawful to project a white light at the rear of a vehicle 
306.18 	while traveling on any street or highway, except:
306.19 	(1) for a vehicle moving in reverse;
306.20 	(2) for a school bus equipped with a supplemental warning system under section 
306.21 	169.4503, subdivision 31;
306.22 	(3) for a strobe lamp as provided under subdivision 8;
306.23 	(4) as required for license plate illumination under section 169.50, subdivision 2;
306.24 	(5) as provided in section 169.59, subdivision 4; and
306.25 	(6) as otherwise provided in this subdivision.
306.26 	(b) A lighting device mounted on top of a vehicle engaged in deliveries to residences 
306.27 	may project a white light to the rear if the sign projects one or more additional colors to the 
306.28 	rear.
307.1 	(c) An authorized emergency vehicle may display an oscillating, alternating, or rotating 
307.2 	white light used in connection with an oscillating, alternating, or rotating red light when 
307.3 	responding to emergency calls.

307.4 	Sec. 60. Minnesota Statutes 2017 Supplement, section 169.64, subdivision 8, is amended 
307.5 	to read:
307.6 		Subd. 8.Strobe lamp. (a) Notwithstanding sections 169.55, subdivision 1; 169.57, 
307.7 	subdivision 3, paragraph (b); or any other law to the contrary, a vehicle may be equipped 
307.8 	with a 360-degree flashing strobe lamp that emits a white light with a flash rate of 60 to 
307.9 	120 flashes a minute, and the lamp may be used as provided in this subdivision, if the vehicle 
307.10 	is:
307.11 	(1) a school bus that is subject to and complies with the equipment requirements of
307.12 	sections 169.441, subdivision 1, and section169.442, subdivision 1, or a Head Start bus. 
307.13 	The lamp must operate from a separate switch containing an indicator lamp to show when 
307.14 	the strobe lamp is in use; or
307.15 	(2) a road maintenance vehicle owned or under contract to the Department of 
307.16 	Transportation or a road authority of a county, home rule or statutory city, or town, but the 
307.17 	strobe lamp may only be operated while the vehicle is actually engaged in snow removal 
307.18 	during daylight hours.
307.19 	(b) Notwithstanding sections 169.55, subdivision 1; 169.57, subdivision 3, paragraph 
307.20 	(b); or any other law to the contrary, a vehicle may be equipped with a 360-degree flashing 
307.21 	strobe lamp that emits an amber light with a flash rate of 60 to 120 flashes a minute, and 
307.22 	the lamp may be used as provided in this subdivision, if the vehicle is a rural mail carrier 
307.23 	vehicle, provided that the strobe lamp is mounted at the highest practicable point on the 
307.24 	vehicle. The strobe lamp may only be operated while the vehicle is actually engaged during 
307.25 	daylight hours in the delivery of mail to residents on a rural mail route.
307.26 	(c) A strobe lamp authorized by this section shall subdivision must be of a double flash 
307.27 	type certified to the commissioner of public safety by the manufacturer as being weatherproof 
307.28 	and having a minimum an effective light output of 200 candelas as measured by the 
307.29 	Blondel-Rey formula that meets or exceeds the most recent version of SAE International 
307.30 	standard J845, Class 2, or a subsequent standard.

308.1 	Sec. 61. Minnesota Statutes 2016, section 169.81, subdivision 5, is amended to read:
308.2 		Subd. 5.Manner of loading. No (a) A vehicle shall must not be driven or moved on 
308.3 	any highway unless such the vehicle is so constructed, loaded, or the load securely covered 
308.4 	as to prevent any of its load from dropping, sifting, leaking, blowing, or otherwise escaping 
308.5 	therefrom, except that.
308.6 	(b) Notwithstanding paragraph (a), a vehicle or combination of vehicles may:
308.7 	(1) drop sand may be dropped for the purpose of securing to secure traction, or;
308.8 	(2) sprinkle water or other substances may be sprinkled on a roadway in cleaning or 
308.9 	maintaining such to clean or maintain the roadway; or
308.10 	(3) leak liquid from thawing sugar beets, only if transporting unprocessed sugar beets.
308.11 	(c) This subdivision shall does not apply to motor vehicles operated by a farmer or the 
308.12 	farmer's agent when transporting produce such as small grains, shelled corn, soybeans, or 
308.13 	other farm produce of a size and density not likely to cause injury to persons or damage to 
308.14 	property on escaping in small amounts from a vehicle.
308.15 	(d) A violation of this subdivision by a vehicle that is carrying farm produce and that is 
308.16 	not exempted by the preceding sentence under paragraph (c) is a petty misdemeanor.

308.17 	EFFECTIVE DATE. This section is effective June 1, 2018.

308.18 	Sec. 62. Minnesota Statutes 2016, section 169.81, is amended by adding a subdivision to 
308.19 	read:
308.20 		Subd. 11.Automobile transporter. (a) For purposes of this subdivision, the following 
308.21 	terms have the meanings given them:
308.22 	(1) "automobile transporter" means any vehicle combination designed and used to 
308.23 	transport assembled highway vehicles, including truck camper units;
308.24 	(2) "stinger-steered combination automobile transporter" means a truck tractor semitrailer 
308.25 	having the fifth wheel located on a drop frame located behind and below the rear-most axle 
308.26 	of the power unit; and
308.27 	(3) "backhaul" means the return trip of a vehicle transporting cargo or general freight, 
308.28 	including when carrying goods back over all or part of the same route.
308.29 	(b) Stinger-steered combination automobile transporters having a length of 80 feet or 
308.30 	less may be operated on interstate highways and other highways designated in this section, 
309.1 	and in addition may carry a load that extends the length by four feet or less in the front of 
309.2 	the vehicle and six feet or less in the rear of the vehicle.
309.3 	(c) An automobile transporter may transport cargo or general freight on a backhaul, 
309.4 	provided it complies with weight limitations for a truck tractor and semitrailer combination 
309.5 	under section 169.824.

309.6 	Sec. 63. Minnesota Statutes 2016, section 169.8261, subdivision 2, is amended to read:
309.7 		Subd. 2.Conditions. (a) A vehicle or combination of vehicles described in subdivision 
309.8 	1 must:
309.9 	(1) comply with seasonal load restrictions in effect between the dates set by the 
309.10 	commissioner under section 169.87, subdivision 2;
309.11 	(2) comply with bridge load limits posted under section 169.84;
309.12 	(3) be equipped and operated with six or more axles and brakes on all wheels;
309.13 	(4) not exceed 90,000 pounds gross vehicle weight, or 99,000 pounds gross vehicle 
309.14 	weight during the time when seasonal increases are authorized under section 169.826;
309.15 	(5) not be operated on interstate highways;
309.16 	(6) obtain an annual permit from the commissioner of transportation;
309.17 	(7) obey all road postings; and
309.18 	(8) not exceed 20,000 pounds gross weight on any single axle.
309.19 	(b) A vehicle operated under this section may exceed the legal axle weight limits listed 
309.20 	in section 169.824 by not more than 12.5 percent; except that, the weight limits may be 
309.21 	exceeded by not more than 23.75 percent during the time when seasonal increases are 
309.22 	authorized under section 169.826, subdivision 1.
309.23 	(c) Notwithstanding paragraph (a), clause (5), a vehicle or combination of vehicles 
309.24 	hauling raw or unfinished forest products may operate on the segment of marked Interstate 
309.25 	Highway 35 provided under United States Code, title 23, section 127(q)(2)(D).

309.26 	Sec. 64. Minnesota Statutes 2017 Supplement, section 169.829, subdivision 4, is amended 
309.27 	to read:
309.28 		Subd. 4.Certain emergency vehicles. (a) The provisions of sections 169.80 to 169.88 
309.29 	governing size, weight, and load do not apply to a fire apparatus, a law enforcement special 
309.30 	response vehicle, or a licensed land emergency ambulance service vehicle.
310.1 	(b) Emergency vehicles designed to transport personnel and equipment to support the 
310.2 	suppression of fires and to mitigate other hazardous situations are subject to the following 
310.3 	weight limitations when operated on an interstate highway: (1) 24,000 pounds on a single 
310.4 	steering axle; (2) 33,500 pounds on a single drive axle; (3) 52,000 pounds on a tandem rear 
310.5 	drive steer axle; and (4) 62,000 pounds on a tandem axle. The gross weight of an emergency 
310.6 	vehicle operating on an interstate highway must not exceed 86,000 pounds.

310.7 	Sec. 65. Minnesota Statutes 2016, section 169.829, is amended by adding a subdivision 
310.8 	to read:
310.9 		Subd. 5.Sewage septic tank trucks. (a) Sections 169.823 and 169.826 to 169.828 do 
310.10 	not apply to a sewage septic tank truck used exclusively to transport sewage from septic or 
310.11 	holding tanks.
310.12 	(b) The weight limitations under section 169.824 are increased by ten percent for a 
310.13 	single-unit vehicle transporting sewage from the point of service to (1) another point of 
310.14 	service, or (2) the point of unloading.
310.15 	(c) Notwithstanding sections 169.824, subdivision 1, paragraph (d); 169.826, subdivision 
310.16 	3; or any other law to the contrary, a permit is not required to operate a vehicle under this 
310.17 	subdivision.
310.18 	(d) The seasonal weight increases under section 169.826, subdivision 1, do not apply to 
310.19 	a vehicle operated under this subdivision.
310.20 	(e) A vehicle operated under this subdivision is subject to bridge load limits posted under 
310.21 	section 169.84.

310.22 	EFFECTIVE DATE. This section is effective June 1, 2018.

310.23 	Sec. 66. Minnesota Statutes 2016, section 169.87, subdivision 6, is amended to read:
310.24 		Subd. 6.Recycling and garbage vehicles. (a) Except as provided in paragraph (b) While 
310.25 	a vehicle is engaged in the type of collection the vehicle was designed to perform, weight 
310.26 	restrictions imposed under subdivisions 1 and 2 do not apply to:
310.27 	(1) a vehicle that does not exceed 20,000 pounds per single axle and is designed and 
310.28 	used exclusively for recycling, while engaged in recycling operating in a political subdivision 
310.29 	that mandates curbside recycling pickup.;
311.1 	(b) Weight restrictions imposed under subdivisions 1 and 2 do not apply to: (1) (2) a 
311.2 	vehicle that does not exceed 14,000 pounds per single axle and is used exclusively for 
311.3 	recycling as described in paragraph (a);
311.4 	(2) (3) a vehicle that does not exceed 14,000 pounds per single axle and is designed and 
311.5 	used exclusively for collecting mixed municipal solid waste, as defined in section 115A.03, 
311.6 	subdivision 21, while engaged in such collection; or
311.7 	(3) (4) a portable toilet service vehicle that does not exceed 14,000 pounds per single 
311.8 	axle or 26,000 pounds gross vehicle weight, and is designed and used exclusively for 
311.9 	collecting liquid waste from portable toilets, while engaged in such collection; or
311.10 	(5) a sewage septic tank truck that is designed and used exclusively to haul sewage from 
311.11 	septic or holding tanks.
311.12 	(c) (b) Notwithstanding section 169.80, subdivision 1, a violation of the owner or operator 
311.13 	of a vehicle that violates the weight restrictions imposed under subdivisions 1 and 2 by a 
311.14 	vehicle designed and used exclusively for recycling while engaged in recycling in a political 
311.15 	subdivision that mandates curbside recycling pickup while engaged in such collection, by 
311.16 	a vehicle that is designed and used exclusively for collecting mixed municipal solid waste 
311.17 	as defined in section 115A.03, subdivision 21, while engaged in such collection, or by a 
311.18 	portable toilet service vehicle that is designed and used exclusively for collecting liquid 
311.19 	waste from portable toilets, while engaged in such collection, is not subject to criminal 
311.20 	penalties but is subject to a civil penalty for excess weight under section 169.871 if the 
311.21 	vehicle (1) meets the requirements under paragraph (a), and (2) is engaged in the type of 
311.22 	collection the vehicle was designed to perform.

311.23 	EFFECTIVE DATE. This section is effective June 1, 2018.

311.24 	Sec. 67. Minnesota Statutes 2016, section 169.92, subdivision 4, is amended to read:
311.25 		Subd. 4.Suspension of driver's license. (a) Upon receiving a report from the court, or 
311.26 	from the driver licensing authority of a state, district, territory, or possession of the United 
311.27 	States or a province of a foreign country which has an agreement in effect with this state 
311.28 	pursuant to section 169.91, that a resident of this state or a person licensed as a driver in 
311.29 	this state did not appear in court in compliance with the terms of a citation, the commissioner 
311.30 	of public safety shall must notify the driver that the driver's license will be suspended unless 
311.31 	the commissioner receives notice within 30 days that the driver has appeared in the 
311.32 	appropriate court or, if the offense is a petty misdemeanor for which a guilty plea was 
311.33 	entered under section 609.491, that the person has paid any fine imposed by the court. If 
312.1 	the commissioner does not receive notice of the appearance in the appropriate court or 
312.2 	payment of the fine within 30 days of the date of the commissioner's notice to the driver, 
312.3 	the commissioner may suspend the driver's license, subject to the notice requirements of 
312.4 	section 171.18, subdivision 2. Notwithstanding the requirements in this section, the 
312.5 	commissioner is prohibited from suspending the driver's license of a person based solely 
312.6 	on the fact that the person did not appear in court (1) in compliance with the terms of a 
312.7 	citation for a petty misdemeanor, or (2) for a violation of section 171.24, subdivision 1.
312.8 	(b) The order of suspension shall must indicate the reason for the order and shall must
312.9 	notify the driver that the driver's license shall remain remains suspended until the driver 
312.10 	has furnished evidence, satisfactory to the commissioner, of compliance with any order 
312.11 	entered by the court.
312.12 	(c) Suspension shall be ordered under this subdivision only when the report clearly 
312.13 	identifies the person arrested; describes the violation, specifying the section of the traffic 
312.14 	law, ordinance or rule violated; indicates the location and date of the offense; and describes 
312.15 	the vehicle involved and its registration number.

312.16 	Sec. 68. Minnesota Statutes 2016, section 171.041, is amended to read:
312.17 	171.041 RESTRICTED LICENSE FOR FARM WORK.
312.18 	(a) Notwithstanding any provisions of section 171.04 relating to the age of an applicant 
312.19 	to the contrary, the commissioner may issue a restricted farm work license to operate a 
312.20 	motor vehicle to a person who has attained the age of 15 years and who, except for age, is 
312.21 	qualified to hold a driver's license. The applicant is not required to comply with the six-month 
312.22 	instruction permit possession provisions of sections 171.04, subdivision 1, clause (2), and 
312.23 	171.05, subdivision 2a, or with the 12-month provisional license possession provision of 
312.24 	section 171.04, subdivision 1, clause (1), item (i).
312.25 	(b) The restricted license shall must be issued solely for the purpose of authorizing the 
312.26 	person to whom the restricted license is issued to assist the person's parents or guardians 
312.27 	with farm work. An individual may perform farm work under the restricted license for any 
312.28 	entity authorized to farm under section 500.24. A person holding this restricted license may 
312.29 	operate a motor vehicle only during daylight hours and only within a radius of 20 40 miles 
312.30 	of the parent's or guardian's farmhouse; however, in no case may a person holding the 
312.31 	restricted license operate a motor vehicle in a city of the first class.
313.1 	(c) An applicant for a restricted license shall must apply to the commissioner for the 
313.2 	license on forms prescribed by the commissioner. The application shall must be accompanied 
313.3 	by:
313.4 	(1) a copy of a property tax statement showing that the applicant's parent or guardian 
313.5 	owns land that is classified as agricultural land or a copy of a rental statement or agreement 
313.6 	showing that the applicant's parent or guardian rents land classified as agricultural land; and
313.7 	(2) a written verified statement by the applicant's parent or guardian setting forth the 
313.8 	necessity for the license.

313.9 	EFFECTIVE DATE. This section is effective June 1, 2018.

313.10 	Sec. 69. Minnesota Statutes 2017 Supplement, section 171.06, subdivision 2, is amended 
313.11 	to read:
313.12 		Subd. 2.Fees. (a) The fees for a license and Minnesota identification card are as follows:

313.13
313.14
313.15	REAL ID Compliant or 
Noncompliant Classified 
Driver's License
		D-$17.25
	C-$21.25
	B-$28.25
	A-$36.25
	
313.16
313.17
313.18	REAL ID Compliant or 
Noncompliant Classified 
Under-21 D.L.
		D-$17.25
	C-$21.25
	B-$28.25
	A-$16.25
	
313.19	Enhanced Driver's License
		D-$32.25
	C-$36.25
	B-$43.25
	A-$51.25
	
313.20
313.21
313.22	REAL ID Compliant or 
Noncompliant Instruction 
Permit
					$5.25
	
313.23
313.24	Enhanced Instruction 
Permit
					$20.25
	
313.25
313.26	Commercial Learner's 
Permit
					$2.50
	
313.27
313.28
313.29	REAL ID Compliant or 
Noncompliant Provisional 
License
					$8.25
	
313.30
313.31	Enhanced Provisional 
License
					$23.25
	
313.32
313.33
313.34
313.35
313.36
313.37	Duplicate REAL ID 
Compliant or Noncompliant 
License or duplicate REAL 
ID Compliant or 
Noncompliant identification 
card
					$6.75
	
313.38
313.39
313.40	Enhanced Duplicate 
License or enhanced 
duplicate identification card
					$21.75
	
314.1
314.2
314.3
314.4
314.5
314.6
314.7
314.8
314.9314.10
	REAL ID Compliant or 
Noncompliant Minnesota 
identification card or REAL 
ID Compliant or 
Noncompliant Under-21 
Minnesota identification 
card, other than duplicate, 
except as otherwise 
provided in section 171.07, 
subdivisions 3 and 3a
					$11.25
	
314.11
314.12	Enhanced Minnesota 
identification card
					$26.25
	
314.13 	In addition to each fee required in this paragraph, the commissioner shall collect a surcharge 
314.14 	of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30, 2016. 
314.15 	Surcharges collected under this paragraph must be credited to the driver and vehicle services 
314.16 	technology account in the special revenue fund under section 299A.705.
314.17 	(b) Notwithstanding paragraph (a), an individual who holds a provisional license and 
314.18 	has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 
314.19 	169A.35, sections 169A.50 to 169A.53, or section 171.177, (2) convictions for crash-related 
314.20 	moving violations, and (3) convictions for moving violations that are not crash related, shall
314.21 	must have a $3.50 credit toward the fee for any classified under-21 driver's license. "Moving 
314.22 	violation" has the meaning given it in section 171.04, subdivision 1.
314.23 	(c) In addition to the driver's license fee required under paragraph (a), the commissioner 
314.24 	shall must collect an additional $4 processing fee from each new applicant or individual 
314.25 	renewing a license with a school bus endorsement to cover the costs for processing an 
314.26 	applicant's initial and biennial physical examination certificate. The department shall must
314.27 	not charge these applicants any other fee to receive or renew the endorsement.
314.28 	(d) In addition to the fee required under paragraph (a), a driver's license agent may charge 
314.29 	and retain a filing fee as provided under section 171.061, subdivision 4.
314.30 	(e) In addition to the fee required under paragraph (a), the commissioner shall must
314.31 	charge a filing fee at the same amount as a driver's license agent under section 171.061, 
314.32 	subdivision 4. Revenue collected under this paragraph must be deposited in the driver 
314.33 	services operating account.
314.34 	(f) An application for a Minnesota identification card, instruction permit, provisional 
314.35 	license, or driver's license, including an application for renewal, must contain a provision 
314.36 	that allows the applicant to add to the fee under paragraph (a), a $2 donation for the purposes 
314.37 	of public information and education on anatomical gifts under section 171.075.

315.1 	Sec. 70. Minnesota Statutes 2016, section 171.16, subdivision 2, is amended to read:
315.2 		Subd. 2.Commissioner shall suspend. (a) The court may recommend the suspension 
315.3 	of the driver's license of the person so convicted, and the commissioner shall must suspend 
315.4 	such license as recommended by the court, without a hearing as provided herein.
315.5 	(b) The commissioner is prohibited from suspending a person's driver's license if the 
315.6 	person was convicted only under section 171.24, subdivision 1 or 2.

315.7 	Sec. 71. Minnesota Statutes 2016, section 171.16, subdivision 3, is amended to read:
315.8 		Subd. 3.Suspension for Failure to pay fine. When any court reports to The 
315.9 	commissioner must not suspend a person's driver's license based solely on the fact that a 
315.10 	person: (1) has been convicted of violating a law of this state or an ordinance of a political 
315.11 	subdivision which regulates the operation or parking of motor vehicles, (2) has been 
315.12 	sentenced to the payment of a fine or had a surcharge levied against that person, or sentenced 
315.13 	to a fine upon which a surcharge was levied, and (3) has refused or failed to comply with 
315.14 	that sentence or to pay the surcharge, notwithstanding the fact that the court has determined 
315.15 	that the person has the ability to pay the fine or surcharge, the commissioner shall suspend 
315.16 	the driver's license of such person for 30 days for a refusal or failure to pay or until notified 
315.17 	by the court that the fine or surcharge, or both if a fine and surcharge were not paid, has 
315.18 	been paid.

315.19 	Sec. 72. Minnesota Statutes 2016, section 171.18, subdivision 1, is amended to read:
315.20 		Subdivision 1.Offenses. (a) The commissioner may suspend the license of a driver 
315.21 	without preliminary hearing upon a showing by department records or other sufficient 
315.22 	evidence that the licensee:
315.23 	(1) has committed an offense for which mandatory revocation of license is required upon 
315.24 	conviction;
315.25 	(2) has been convicted by a court for violating a provision of chapter 169 or an ordinance 
315.26 	regulating traffic, other than a conviction for a petty misdemeanor, and department records 
315.27 	show that the violation contributed in causing an accident resulting in the death or personal 
315.28 	injury of another, or serious property damage;
315.29 	(3) is an habitually reckless or negligent driver of a motor vehicle;
315.30 	(4) is an habitual violator of the traffic laws;
315.31 	(5) is incompetent to drive a motor vehicle as determined in a judicial proceeding;
316.1 	(6) has permitted an unlawful or fraudulent use of the license;
316.2 	(7) has committed an offense in another state that, if committed in this state, would be 
316.3 	grounds for suspension;
316.4 	(8) has committed a violation of section 169.444, subdivision 2, paragraph (a), within 
316.5 	five years of a prior conviction under that section;
316.6 	(9) has committed a violation of section 171.22, except that the commissioner may not 
316.7 	suspend a person's driver's license based solely on the fact that the person possessed a 
316.8 	fictitious or fraudulently altered Minnesota identification card;
316.9 	(10) has failed to appear in court as provided in section 169.92, subdivision 4;
316.10 	(11) has failed to report a medical condition that, if reported, would have resulted in 
316.11 	cancellation of driving privileges;
316.12 	(12) has been found to have committed an offense under section 169A.33; or
316.13 	(13) has paid or attempted to pay a fee required under this chapter for a license or permit 
316.14 	by means of a dishonored check issued to the state or a driver's license agent, which must 
316.15 	be continued until the registrar determines or is informed by the agent that the dishonored 
316.16 	check has been paid in full.
316.17 	However, an action taken by the commissioner under clause (2) or (5) must conform to the 
316.18 	recommendation of the court when made in connection with the prosecution of the licensee.
316.19 	(b) Notwithstanding section 171.18, subdivision 1, paragraph (b), the commissioner may 
316.20 	suspend the license of a driver when any court reports to the commissioner that a driver has 
316.21 	eight unpaid parking tickets within a 12-month period or ten unpaid parking tickets within 
316.22 	a 24-month period.
316.23 	(b) (c) The commissioner may not suspend is prohibited from suspending the driver's 
316.24 	license of an individual under paragraph (a) who was convicted of a violation of section 
316.25 	171.24, subdivision 1, whose license was under suspension at the time solely because of 
316.26 	the individual's failure to appear in court or failure to pay a fine or 2.

316.27 	Sec. 73. Minnesota Statutes 2016, section 174.12, subdivision 8, is amended to read:
316.28 		Subd. 8.Legislative report. (a) By February 1 of each odd-numbered year, the 
316.29 	commissioner of transportation, with assistance from the commissioner of employment and 
316.30 	economic development, shall must submit a report on the transportation economic 
316.31 	development program to the chairs and ranking minority members of the legislative 
317.1 	committees with jurisdiction over transportation policy and finance and economic 
317.2 	development policy and finance.
317.3 	(b) At a minimum, the report must:
317.4 	(1) summarize the requirements and implementation of the transportation economic 
317.5 	development program established in this section;
317.6 	(2) review the criteria and economic impact performance measures used for evaluation, 
317.7 	prioritization, and selection of projects;
317.8 	(3) provide a brief overview of each project that received financial assistance under the 
317.9 	program, which must at a minimum identify:
317.10 	(i) basic project characteristics, such as funding recipient, geographic location, and type 
317.11 	of transportation modes served;
317.12 	(ii) sources and respective amounts of project funding; and
317.13 	(iii) the degree of economic benefit anticipated or observed, following the economic 
317.14 	impact performance measures established under subdivision 4;
317.15 	(4) identify the allocation of funds, including but not limited to a breakdown of total 
317.16 	project funds by transportation mode, the amount expended for administrative costs, and 
317.17 	the amount transferred to the transportation economic development assistance account;
317.18 	(5) evaluate the overall economic impact of the program; and
317.19 	(6) provide recommendations for any legislative changes related to the program.
317.20 	(c) Notwithstanding paragraph (a), a report is not required in an odd-numbered year if 
317.21 	no project received financial assistance during the preceding 24 months.

317.22 	Sec. 74. [174.13] TRIBAL TRAINING PROGRAM; COSTS.
317.23 	The commissioner must implement interagency billing to state agencies to pay costs 
317.24 	related to each agency's participation in tribal training activities provided by the department.

317.25 	EFFECTIVE DATE. This section is effective July 1, 2019.

317.26 	Sec. 75. Minnesota Statutes 2016, section 174.66, is amended to read:
317.27 	174.66 CONTINUATION OF CARRIER RULES.
317.28 	(a) Orders and directives in force, issued, or promulgated under authority of chapters 
317.29 	174A, 216A, 218, 219, 221, and 222 remain and continue in force and effect until repealed, 
318.1 	modified, or superseded by duly authorized orders or directives of the commissioner of 
318.2 	transportation. To the extent allowed under federal law or regulation, rules adopted under 
318.3 	authority of the following sections are transferred to the commissioner of transportation 
318.4 	and continue in force and effect until repealed, modified, or superseded by duly authorized 
318.5 	rules of the commissioner:
318.6 	(1) section 218.041 except rules related to the form and manner of filing railroad rates, 
318.7 	railroad accounting rules, and safety rules;
318.8 	(2) section 219.40;
318.9 	(3) rules relating to rates or tariffs, or the granting, limiting, or modifying of permits 
318.10 	under section 221.031, subdivision 1; and
318.11 	(4) rules relating to rates, charges, and practices under section 221.161, subdivision 4; 
318.12 	and
318.13 	(5) rules relating to rates, tariffs, or the granting, limiting, or modifying of permits under 
318.14 	section 221.121.
318.15 	(b) The commissioner shall must review the transferred rules, orders, and directives and, 
318.16 	when appropriate, develop and adopt new rules, orders, or directives.

318.17 	Sec. 76. [219.085] OPERATION OF ON-TRACK EQUIPMENT.
318.18 	An operator of equipment used on rails that does not activate automatic railroad-highway 
318.19 	grade crossing warning signals or gates must exercise due regard for the safety of persons 
318.20 	and vehicles using a railroad-highway grade crossing.

318.21 	Sec. 77. Minnesota Statutes 2016, section 221.031, subdivision 2d, is amended to read:
318.22 		Subd. 2d.Hours of service exemptions; agricultural purposes. The federal regulations 
318.23 	incorporated in section 221.0314, subdivision 9, for maximum driving and on-duty time,
318.24 	hours of service do not apply to drivers engaged in intrastate transportation within a 
318.25 	150-air-mile radius from the source of the commodities, or from the retail or wholesale 
318.26 	distribution point of the farm supplies, for:
318.27 	(1) agricultural commodities; or
318.28 	(2) farm supplies for agricultural purposes from March 15 to December 15 of each year; 
318.29 	or.
318.30 	(2) sugar beets from September 1 to May 15 of each year.

319.1 	Sec. 78. Minnesota Statutes 2016, section 221.031, is amended by adding a subdivision 
319.2 	to read:
319.3 		Subd. 2f.Hours of service exemptions; utility construction. (a) The federal regulations 
319.4 	incorporated in section 221.0314, subdivision 9, for hours of service do not apply to drivers 
319.5 	engaged in intrastate transportation of utility construction materials within a 50-mile radius 
319.6 	from the site of a construction or maintenance project.
319.7 	(b) For purposes of this subdivision, utility construction materials includes supplies and 
319.8 	materials used in a project to construct or maintain (1) a street or highway; (2) equipment 
319.9 	or facilities to furnish electric transmission service; (3) a telecommunications system or 
319.10 	cable communications system; (4) a waterworks system, sanitary sewer, or storm sewer; 
319.11 	(5) a gas heating service line; (6) a pipeline; and (7) a facility for other similar utility service.

319.12 	Sec. 79. Minnesota Statutes 2016, section 221.0314, subdivision 9, is amended to read:
319.13 		Subd. 9.Hours of service of driver. (a) Code of Federal Regulations, title 49, part 395, 
319.14 	is incorporated by reference, except that paragraphs (a), (c), (d), (f), (h), (i), (k), (m), and 
319.15 	(n) of section 395.1 of that part are not incorporated. In addition, cross-references to sections 
319.16 	or paragraphs not incorporated in this subdivision are not incorporated by reference.
319.17 	(b) For purposes of Code of Federal Regulations, title 49, part 395.1, paragraph (k), the 
319.18 	planting and harvest period for Minnesota is from January 1 through December 31 each 
319.19 	year.
319.20 	(c) The requirements of Code of Federal Regulations, title 49, part 395, do not apply to 
319.21 	drivers of lightweight vehicles.

319.22 	Sec. 80. Minnesota Statutes 2016, section 221.036, subdivision 1, is amended to read:
319.23 		Subdivision 1.Order. The commissioner may issue an order requiring violations to be 
319.24 	corrected and administratively assessing monetary penalties for a violation of (1) section 
319.25 	221.021; (2) section 221.033, subdivision 2b; (3) section 221.171; (4) section 221.141; (5) 
319.26 	a federal, state, or local law, regulation, rule, or ordinance pertaining to railroad-highway 
319.27 	grade crossings; or (6) rules of the commissioner relating to the transportation of hazardous 
319.28 	waste, motor carrier operations, or insurance, or tariffs and accounting. An order must be 
319.29 	issued as provided in this section.

320.1 	Sec. 81. Minnesota Statutes 2016, section 221.036, subdivision 3, is amended to read:
320.2 		Subd. 3.Amount of penalty; considerations. (a) The commissioner may issue an order 
320.3 	assessing a penalty of up to $5,000 for all violations identified during a single audit or 
320.4 	investigation of (1) section 221.021;,221.141;, or 221.171, or (2) rules of the commissioner 
320.5 	relating to motor carrier operations,or insurance, or tariffs and accounting, identified during 
320.6 	a single inspection, audit, or investigation.
320.7 	(b) The commissioner may issue an order assessing a penalty up to a maximum of 
320.8 	$10,000 for all violations of section 221.033, subdivision 2b, identified during a single 
320.9 	inspection or audit.
320.10 	(c) In determining the amount of a penalty, the commissioner shall must consider:
320.11 	(1) the willfulness of the violation;
320.12 	(2) the gravity of the violation, including damage to humans, animals, air, water, land, 
320.13 	or other natural resources of the state;
320.14 	(3) the history of past violations, including the similarity of the most recent violation 
320.15 	and the violation to be penalized, the time elapsed since the last violation, the number of 
320.16 	previous violations, and the response of the person to the most recent violation identified;
320.17 	(4) the economic benefit gained by the person by allowing or committing the violation; 
320.18 	and
320.19 	(5) other factors as justice may require, if the commissioner specifically identifies the 
320.20 	additional factors in the commissioner's order.
320.21 	(d) The commissioner shall must assess a penalty in accordance with Code of Federal 
320.22 	Regulations, title 49, section 383.53, against:
320.23 	(1) a driver who is convicted of a violation of an out-of-service order;
320.24 	(2) an employer who knowingly allows or requires an employee to operate a commercial 
320.25 	motor vehicle in violation of an out-of-service order; or
320.26 	(3) an employer who knowingly allows or requires an employee to operate a commercial 
320.27 	motor vehicle in violation of a federal, state, or local law or regulation pertaining to 
320.28 	railroad-highway grade crossings.

320.29 	Sec. 82. Minnesota Statutes 2016, section 221.122, subdivision 1, is amended to read:
320.30 		Subdivision 1.Registration, insurance, and filing requirements. (a) An order issued 
320.31 	by the commissioner which grants a certificate or permit must contain a service date.
321.1 	(b) The person to whom the order granting the certificate or permit is issued shall do 
321.2 	the following within 45 days from the service date of the order:
321.3 	(1) register vehicles which will be used to provide transportation under the permit or 
321.4 	certificate with the commissioner and pay the vehicle registration fees required by law; and
321.5 	(2) file and maintain insurance or bond as required by section 221.141 and rules of the 
321.6 	commissioner; and.
321.7 	(3) file rates and tariffs as required by section 221.161 and rules of the commissioner.

321.8 	Sec. 83. Minnesota Statutes 2016, section 221.161, subdivision 1, is amended to read:
321.9 		Subdivision 1.Filing; hearing upon commissioner initiative Tariff maintenance and 
321.10 	contents.  A household goods carrier shall file andmover must maintain with the 
321.11 	commissioner a tariff showing rates and charges for transporting household goods. Tariffs 
321.12 	must be prepared and filed in accordance with the rules of the commissioner. When tariffs 
321.13 	are filed in accordance with the rules and accepted by the commissioner, the filing constitutes 
321.14 	notice to the public and interested parties of the contents of the tariffs. The commissioner 
321.15 	shall not accept for filing tariffs that are unjust, unreasonable, unjustly discriminatory, 
321.16 	unduly preferential or prejudicial, or otherwise in violation of this section or rules adopted 
321.17 	under this section. If the tariffs appear to be unjust, unreasonable, unjustly discriminatory, 
321.18 	unduly preferential or prejudicial, or otherwise in violation of this section or rules adopted 
321.19 	under this section, after notification and investigation by the department, the commissioner 
321.20 	may suspend and postpone the effective date of the tariffs and assign the tariffs for hearing 
321.21 	upon notice to the household goods carrier filing the proposed tariffs and to other interested 
321.22 	parties, including users of the service and competitive carriers by motor vehicle and rail. 
321.23 	At the hearing, the burden of proof is on the household goods carrier filing the proposed 
321.24 	tariff to sustain the validity of the proposed schedule of rates and charges. The tariffs and 
321.25 	subsequent supplements to them or reissues of them must state the effective date, which 
321.26 	may not be less than ten days following the date of filing, unless the period of time is reduced 
321.27 	by special permission of the commissioner. A household goods mover must prepare a tariff 
321.28 	under this section that complies with Code of Federal Regulations, title 49, part 1310.3.

321.29 	Sec. 84. Minnesota Statutes 2016, section 221.161, is amended by adding a subdivision 
321.30 	to read:
321.31 		Subd. 5.Tariff availability. (a) A household goods mover subject to this section must 
321.32 	maintain all of its effective tariffs at its principal place of business and at each of its terminal 
321.33 	locations, and must make the tariffs available to the public for inspection at all times the 
322.1 	household goods mover is open for business. Any publication referred to in a tariff must be 
322.2 	maintained with that tariff.
322.3 	(b) Upon request, a household goods mover must provide copies of tariffs, specific tariff 
322.4 	provisions, or tariff subscriptions to the commissioner or any interested person.

322.5 	Sec. 85. Minnesota Statutes 2016, section 221.171, subdivision 1, is amended to read:
322.6 		Subdivision 1.Compensation fixed by schedule on file. No A household goods carrier 
322.7 	shall mover must not charge or receive a greater, lesser, or different compensation for the 
322.8 	transportation of persons or property or for related service,provided than the rates and 
322.9 	charges named in the carrier's schedule on file and in effect with the commissioner including 
322.10 	any rate fixed by the commissioner specified in the tariff under section 221.161; nor shall.
322.11 	A household goods carrier mover must not refund or remit in any manner or by any device, 
322.12 	directly or indirectly, the rates and charges required to be collected by the carrier mover
322.13 	under the carrier's mover's schedules or under the rates, if any, fixed by the commissioner.

322.14 	Sec. 86. Minnesota Statutes 2016, section 299A.01, is amended by adding a subdivision 
322.15 	to read:
322.16 		Subd. 8.Highway user tax distribution fund use limitation. The commissioner is 
322.17 	prohibited from spending any money from the highway user tax distribution fund for the 
322.18 	public information center or comparable customer service positions elsewhere in the 
322.19 	department.

322.20 	Sec. 87. [299A.704] DRIVER AND VEHICLE SERVICES FUND.
322.21 	A driver and vehicle services fund is established within the state treasury. The fund 
322.22 	consists of accounts and money as specified by law, and any other money donated, allotted, 
322.23 	transferred, or otherwise provided to the fund.

322.24 	Sec. 88. Minnesota Statutes 2016, section 299A.705, is amended to read:
322.25 	299A.705 DRIVER AND VEHICLE SERVICES ACCOUNTS.
322.26 		Subdivision 1.Vehicle services operating account. (a) The vehicle services operating 
322.27 	account is created in the special revenue driver and vehicle services fund, consisting of all 
322.28 	money from the vehicle services fees specified in chapters 168, 168A, and 168D, and any 
322.29 	other money otherwise donated, allotted, appropriated, or legislated transferred, or otherwise 
322.30 	provided to this the account.
323.1 	(b) Funds appropriated are available from the account must be used by the commissioner 
323.2 	of public safety to administer the vehicle services as specified in chapters 168, 168A, and 
323.3 	168D, and section 169.345, including:
323.4 	(1) designing, producing, issuing, and mailing vehicle registrations, plates, emblems, 
323.5 	and titles;
323.6 	(2) collecting title and registration taxes and fees;
323.7 	(3) transferring vehicle registration plates and titles;
323.8 	(4) maintaining vehicle records;
323.9 	(5) issuing disability certificates and plates;
323.10 	(6) licensing vehicle dealers;
323.11 	(7) appointing, monitoring, and auditing deputy registrars; and
323.12 	(8) inspecting vehicles when required by law.
323.13 		Subd. 2.Driver services operating account. (a) The driver services operating account 
323.14 	is created in the special revenue driver and vehicle services fund, consisting of all money 
323.15 	collected under chapter 171 and any other money otherwise donated, allotted, appropriated, 
323.16 	or legislated transferred, or otherwise provided to the account.
323.17 	(b) Money in the Funds appropriated from the account must be used by the commissioner 
323.18 	of public safety to administer the driver services specified in chapters 169A and 171, 
323.19 	including the activities associated with producing and mailing drivers' licenses and 
323.20 	identification cards and notices relating to issuance, renewal, or withdrawal of driving and 
323.21 	identification card privileges for any fiscal year or years and for the testing and examination 
323.22 	of drivers.
323.23 		Subd. 3.Driver and vehicle services technology account. (a) The driver and vehicle 
323.24 	services technology account is created in the special revenue driver and vehicle services
323.25 	fund, consisting of the technology surcharge collected as specified in chapters 168, 168A, 
323.26 	and 171; the filing fee revenue collected under section 168.33, subdivision 7; section 168.33
323.27 	and any other money otherwise donated, allotted, appropriated, or legislated transferred, or 
323.28 	otherwise provided to this the account.
323.29 	(b) Money in the account is annually appropriated to the commissioner of public safety 
323.30 	to support the research, development, deployment, and maintenance of a driver and vehicle 
323.31 	services information system.
324.1 	(c) Following completion of the deposit of filing fee revenue into the driver and vehicle 
324.2 	services technology account as provided under section 168.33, subdivision 7 Annually by 
324.3 	February 1, the commissioner shall must submit a notificationreport to the chairs and 
324.4 	ranking minority members of the legislative committees with jurisdiction over transportation 
324.5 	policy and finance concerning driver and vehicle services information system implementation, 
324.6 	which must include information on (1) total revenue deposited in the driver and vehicle 
324.7 	services technology account for the previous calendar year, with a breakdown by sources 
324.8 	of funds; (2) total project costs incurred through December 31 of the previous calendar year, 
324.9 	with a breakdown by key project components; and (3) an estimate of ongoing system 
324.10 	maintenance costs.
324.11 		Subd. 4.Prohibited expenditures. The commissioner is prohibited from expending 
324.12 	money from driver and vehicle services accounts created in the special revenue driver and 
324.13 	vehicle services fund for any purpose that is not specifically authorized in this section or in 
324.14 	the chapters specified in this section.

324.15 	Sec. 89. Minnesota Statutes 2016, section 360.013, is amended by adding a subdivision 
324.16 	to read:
324.17 		Subd. 46a.Comprehensive plan. "Comprehensive plan" has the meaning given in 
324.18 	section 394.22, subdivision 9, or 462.352, subdivision 5.

324.19 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018.

324.20 	Sec. 90. Minnesota Statutes 2016, section 360.017, subdivision 1, is amended to read:
324.21 		Subdivision 1.Creation; authorized disbursements.  (a) There is hereby created a 
324.22 	fund to be known as the state airports fund. The fund shall consist of all money appropriated 
324.23 	to it, or directed to be paid into it, by the legislature.
324.24 	(b) The state airports fund shall be paid out on authorization of the commissioner and 
324.25 	shall be used:
324.26 	(1) to acquire, construct, improve, maintain, and operate airports and other air navigation 
324.27 	facilities;
324.28 	(2) to assist municipalities in the planning, acquisition, construction, improvement, and 
324.29 	maintenance of airports and other air navigation facilities;
324.30 	(3) to assist municipalities to initiate, enhance, and market scheduled air service at their 
324.31 	airports;
325.1 	(4) to promote interest and safety in aeronautics through education and information; and
325.2 	(5) to pay the salaries and expenses of the Department of Transportation related to 
325.3 	aeronautic planning, administration, and operation. All allotments of money from the state 
325.4 	airports fund for salaries and expenses shall be approved by the commissioner of management 
325.5 	and budget.
325.6 	(c) A municipality that adopts a comprehensive plan that the commissioner finds is 
325.7 	incompatible with the state aviation plan is not eligible for assistance from the state airports 
325.8 	fund.

325.9 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
325.10 	applies to airport sponsors that make or plan to make changes to runway lengths or 
325.11 	configurations on or after that date. Airport safety zoning ordinances that were approved 
325.12 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
325.13 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
325.14 	or (2) is required to update airport safety zoning ordinances.

325.15 	Sec. 91. Minnesota Statutes 2016, section 360.021, subdivision 1, is amended to read:
325.16 		Subdivision 1.Authority to establish. The commissioner is authorized and empowered, 
325.17 	on behalf of and in the name of this state, within the limitation of available appropriations, 
325.18 	to acquire, by purchase, gift, devise, lease, condemnation proceedings, or otherwise, property, 
325.19 	real or personal, for the purpose of establishing and constructing restricted landing areas 
325.20 	and other air navigation facilities and to acquire in like manner, own, control, establish, 
325.21 	construct, enlarge, improve, maintain, equip, operate, regulate, and police such restricted 
325.22 	landing areas and other air navigation facilities, either within or without this state; and to 
325.23 	make, prior to any such acquisition, investigations, surveys, and plans. The commissioner 
325.24 	may maintain, equip, operate, regulate, and police airports, either within or without this 
325.25 	state. The operation and maintenance of airports is an essential public service. The 
325.26 	commissioner may maintain at such airports facilities for the servicing of aircraft and for 
325.27 	the comfort and accommodation of air travelers. The commissioner may dispose of any 
325.28 	such property, airport, restricted landing area, or any other air navigation facility, by sale, 
325.29 	lease, or otherwise, in accordance with the laws of this state governing the disposition of 
325.30 	other like property of the state. The commissioner may not acquire or take over any restricted 
325.31 	landing area, or other air navigation facility without the consent of the owner. The 
325.32 	commissioner shall not acquire any additional state airports nor establish any additional 
325.33 	state-owned airports. The commissioner may erect, equip, operate, and maintain on any 
325.34 	airport buildings and equipment necessary and proper to maintain, and conduct such airport 
326.1 	and air navigation facilities connected therewith. The commissioner shall not expend money 
326.2 	for land acquisition, or for the construction, improvement, or maintenance of airports, or 
326.3 	for air navigation facilities for an airport, unless the governmental unit municipality, county, 
326.4 	or joint airport zoning board involved has or is establishing a zoning authority for that 
326.5 	airport, and the authority has made a good-faith showing that it is in the process of and will 
326.6 	complete with due diligence, an airport zoning ordinance in accordance with sections 360.061
326.7 	to 360.074. The commissioner may provide funds to support airport safety projects that 
326.8 	maintain existing infrastructure, regardless of a zoning authority's efforts to complete a 
326.9 	zoning regulation. The commissioner may withhold funding from only the airport subject 
326.10 	to the proposed zoning ordinance. Notwithstanding the foregoing prohibition, the 
326.11 	commissioner may continue to maintain the state-owned airport at Pine Creek.

326.12 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
326.13 	applies to airport sponsors that make or plan to make changes to runway lengths or 
326.14 	configurations on or after that date. Airport safety zoning ordinances that were approved 
326.15 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
326.16 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
326.17 	or (2) is required to update airport safety zoning ordinances.

326.18 	Sec. 92. Minnesota Statutes 2016, section 360.024, is amended to read:
326.19 	360.024 AIR TRANSPORTATION SERVICE CHARGE.
326.20 		Subdivision 1.Charges. (a) The commissioner shall must charge users of air 
326.21 	transportation services provided by the commissioner for direct operating costs, excluding 
326.22 	pilot salary and.
326.23 	(b) The commissioner must charge users for a portion of aircraft acquisition, replacement, 
326.24 	or leasing costs.
326.25 		Subd. 2.Accounts; appropriation. (a) An air transportation services account is 
326.26 	established in the state airports fund. The account consists of money collected under 
326.27 	subdivision 1, paragraph (a), and any other money donated, allotted, transferred, or otherwise 
326.28 	provided to the account.All receipts for these services shall be deposited in the air 
326.29 	transportation services account in the state airports fund and are Money in the account is 
326.30 	annually appropriated to the commissioner to pay these direct air service operating costs.
326.31 	(b) An aircraft capital account is established in the state airports fund. The account 
326.32 	consists of collections under subdivision 1, paragraph (b), proceeds from the sale of aircraft 
326.33 	under jurisdiction of the department, and any other money donated, allotted, transferred, or 
327.1 	otherwise provided to the account. Money in the account must be used for aircraft acquisition, 
327.2 	replacement, or leasing costs. Except as provided by law, the commissioner must not transfer 
327.3 	money into or out of the account.

327.4 	EFFECTIVE DATE. This section is effective July 1, 2018.

327.5 	Sec. 93. Minnesota Statutes 2016, section 360.062, is amended to read:
327.6 	360.062 AIRPORT HAZARD PREVENTION; PROTECTING EXISTING 
327.7 	NEIGHBORHOOD LAND USES.
327.8 	(a) It is hereby found that an airport hazard endangers the lives and property of users of 
327.9 	the airport and of occupants of land in its vicinity, and may reduce the size of the area 
327.10 	available for the landing, takeoff, and maneuvering of aircraft, thereby impairing the utility 
327.11 	of the airport and the public investment therein. It is also found that the social and financial 
327.12 	costs of disrupting existing land uses around airports in built up urban areas, particularly 
327.13 	established residential neighborhoods, often outweigh the benefits of a reduction in airport 
327.14 	hazards that might result from the elimination or removal of those uses.
327.15 	(b) Accordingly, it is hereby declared: (1) that the creation or establishment of an airport 
327.16 	hazard is a public nuisance and an injury to the community served by the airport in question; 
327.17 	(2) that it is therefor necessary in the interest of the public health, public safety, and general 
327.18 	welfare that the creation or establishment of airport hazards be prevented and that this should 
327.19 	be accomplished to the extent legally possible, by exercise of the police power, without 
327.20 	compensation; and (3) that the elimination or removal of existing land uses, particularly 
327.21 	established residential neighborhoods in built-up urban areas, or their designation as 
327.22 	nonconforming uses is not in the public interest and should be avoided whenever possible 
327.23 	consistent with reasonable standards of safety.
327.24 	(c) It is further declared that the prevention of the creation or establishment of airport 
327.25 	hazards and the elimination, removal, alteration, mitigation, or marking and lighting of 
327.26 	existing airport hazards are essential public purposes services for which political subdivisions 
327.27 	may raise and expend public funds and acquire land or property interests therein.

327.28 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
327.29 	applies to airport sponsors that make or plan to make changes to runway lengths or 
327.30 	configurations on or after that date. Airport safety zoning ordinances that were approved 
327.31 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
327.32 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
327.33 	or (2) is required to update airport safety zoning ordinances.

328.1 	Sec. 94. Minnesota Statutes 2016, section 360.063, subdivision 1, is amended to read:
328.2 		Subdivision 1.Enforcement under police power. (a) In order to prevent the creation 
328.3 	or establishment of airport hazards, every municipality having an airport hazard area within 
328.4 	its territorial limits may, unless a joint airport zoning board is permitted under subdivision 
328.5 	3, adopt, amend from time to time, administer, and enforce, under the police power and in 
328.6 	the manner and upon the conditions hereinafter prescribed, airport zoning regulations for 
328.7 	such airport hazard area, which regulations may divide such area into zones, and, within 
328.8 	such zones, specify the land uses permitted and regulate and restrict the height to which 
328.9 	structures and trees may be erected or allowed to grow.
328.10 	(b) For the purpose of promoting In order to promote health, safety, order, convenience, 
328.11 	prosperity, general welfare and for conserving to conserve property values and encouraging
328.12 	encourage the most appropriate use of land, the municipality may regulate the location, size 
328.13 	and use of buildings and the density of population in that portion of an airport hazard area 
328.14 	under approach zones for a distance not to exceed two miles from the airport boundary and 
328.15 	in other portions of an in airport hazard area may regulate by land use zoning for a distance 
328.16 	not to exceed one mile from the airport boundary, and by height-restriction zoning for a 
328.17 	distance not to exceed 1-1/2 miles from the airport boundary areas: (1) land use; (2) height 
328.18 	restrictions; (3) the location, size, and use of buildings; and (4) the density of population.
328.19 	(c) The powers granted by this subdivision may be exercised by metropolitan airports 
328.20 	commissions in contiguous cities of the first class in and for which they have been created.
328.21 	(d) In the case of airports owned or operated by the state of Minnesota such powers shall 
328.22 	be exercised by the state airport zoning boards or by the commissioner of transportation as 
328.23 	authorized herein.

328.24 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
328.25 	applies to airport sponsors that make or plan to make changes to runway lengths or 
328.26 	configurations on or after that date. Airport safety zoning ordinances that were approved 
328.27 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
328.28 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
328.29 	or (2) is required to update airport safety zoning ordinances.

328.30 	Sec. 95. Minnesota Statutes 2016, section 360.063, subdivision 3, is amended to read:
328.31 		Subd. 3.Joint airport zoning board. (a) Where an airport is owned or controlled by a 
328.32 	municipality and an airport hazard area appertaining to the airport is located within the 
329.1 	territorial limits of another county or municipality, the municipality owning or controlling 
329.2 	the airport may request a county or municipality in which an airport hazard area is located:
329.3 	(1) to adopt and enforce airport zoning regulations for the area in question that conform 
329.4 	to standards prescribed by the commissioner pursuant to subdivision 4 under sections 
329.5 	360.0655 and 360.0656; or
329.6 	(2) to join in creating a joint airport zoning board pursuant to paragraph (b). The owning 
329.7 	or controlling municipality shall determine which of these actions it shall request, except 
329.8 	as provided in paragraph (e) for the Metropolitan Airports Commission. The request shall 
329.9 	be made by certified mail to the governing body of each county and municipality in which 
329.10 	an airport hazard area is located.
329.11 	(b) Where an airport is owned or controlled by a municipality and an airport hazard area 
329.12 	appertaining to the airport is located within the territorial limits of another county or 
329.13 	municipality, the municipality owning or controlling the airport and the county or other 
329.14 	municipality within which the airport hazard area is located may, by ordinance or resolution 
329.15 	duly adopted, create a joint airport zoning board, which board shall have the same power 
329.16 	to adopt, administer, and enforce airport zoning regulations applicable to the airport hazard 
329.17 	area in question as that vested by subdivision 1 in the municipality within which the area 
329.18 	is located. A joint board shall have as members two representatives appointed by the 
329.19 	municipality owning or controlling the airport and two from the county or municipality, or 
329.20 	in case more than one county or municipality is involved two from each county or 
329.21 	municipality, in which the airport hazard is located, and in addition a chair elected by a 
329.22 	majority of the members so appointed. All members shall serve at the pleasure of their 
329.23 	respective appointing authority. Notwithstanding any other provision of law to the contrary, 
329.24 	if the owning and controlling municipality is a city of the first class it shall appoint four 
329.25 	members to the board, and the chair of the board shall be elected from the membership of 
329.26 	the board.
329.27 	(c) If a county or municipality, within 60 days of receiving a request from an owning 
329.28 	or controlling municipality pursuant to paragraph (a), fails to adopt, or thereafter fails to 
329.29 	enforce, the zoning regulations or fails to join in creating a joint airport zoning board, the 
329.30 	owning or controlling municipality, or a joint airport zoning board created without 
329.31 	participation by the subdivisions which fail to join the board, may itself adopt, administer, 
329.32 	and enforce airport zoning regulations for the airport hazard area in question. In the event 
329.33 	of conflict between the regulations and airport zoning regulations adopted by the county or 
329.34 	municipality within which the airport hazard area is located, section 360.064, subdivision 
329.35 	2, applies.
330.1 	(d) "Owning or controlling municipality," as used in this subdivision, includes:
330.2 	(1) a joint airport operating board created pursuant to section 360.042 that has been 
330.3 	granted all the powers of a municipality in zoning matters under the agreement creating the 
330.4 	board;
330.5 	(2) a joint airport operating board created pursuant to section 360.042 that has not been 
330.6 	granted zoning powers under the agreement creating the board; provided that the board shall 
330.7 	not itself adopt zoning regulations nor shall a joint airport zoning board created at its request 
330.8 	adopt zoning regulations unless all municipalities that created the joint operating board join 
330.9 	to create the joint zoning board; and
330.10 	(3) the Metropolitan Airports Commission established and operated pursuant to chapter 
330.11 	473.
330.12 	(e) The Metropolitan Airports Commission shall request creation of one joint airport 
330.13 	zoning board for each airport operated under its authority.

330.14 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
330.15 	applies to airport sponsors that make or plan to make changes to runway lengths or 
330.16 	configurations on or after that date. Airport safety zoning ordinances that were approved 
330.17 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
330.18 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
330.19 	or (2) is required to update airport safety zoning ordinances.

330.20 	Sec. 96. Minnesota Statutes 2016, section 360.064, subdivision 1, is amended to read:
330.21 		Subdivision 1.Comprehensive regulations. In the event that a municipality has adopted, 
330.22 	or hereafter adopts, a comprehensive zoning ordinance regulating, among other things the 
330.23 	height of buildings, any airport zoning regulations applicable to the same area or portion 
330.24 	thereof may must be incorporated by reference or incorporated in and made a part of such 
330.25 	comprehensive zoning regulations and be administered and enforced in connection therewith.

330.26 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
330.27 	applies to airport sponsors that make or plan to make changes to runway lengths or 
330.28 	configurations on or after that date. Airport safety zoning ordinances that were approved 
330.29 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
330.30 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
330.31 	or (2) is required to update airport safety zoning ordinances.

331.1 	Sec. 97. Minnesota Statutes 2016, section 360.065, subdivision 1, is amended to read:
331.2 		Subdivision 1.Notice of proposed zoning regulations, hearing. (a) No airport zoning 
331.3 	regulations shall be adopted, amended, or changed under sections 360.011 to 360.076, 
331.4 	except by action of the governing body of the municipality or, county in question, or joint 
331.5 	airport zoning board under section 360.0655 or 360.0656, or the boards provided for in 
331.6 	section 360.063, subdivisions 3 and 7, or by the commissioner as provided in subdivisions 
331.7 	6 and 8, after public hearings, at which parties in interest and citizens shall have an 
331.8 	opportunity to be heard.
331.9 	(b) A public hearing shall must be held on the proposed airport zoning regulations 
331.10 	proposed by a municipality, county, or joint airport zoning board before they are submitted 
331.11 	for approval to the commissioner and after that approval but before final adoption by the 
331.12 	local zoning authority for approval. If any changes that alter the regulations placed on a 
331.13 	parcel of land are made to the proposed airport zoning regulations after the initial public 
331.14 	hearing, the municipality, county, or joint airport zoning board must hold a second public 
331.15 	hearing before final adoption of the regulation. The commissioner may require a second 
331.16 	hearing as determined necessary.
331.17 	(c) Notice of a hearing required pursuant to this subdivision shall must be published by 
331.18 	the local zoning authority municipality, county, or joint airport zoning board at least three 
331.19 	times during the period between 15 days and five days before the hearing in an official 
331.20 	newspaper and in a second newspaper designated by that authority which has a wide general 
331.21 	circulation in the area affected by the proposed regulations.and posted on the municipality's, 
331.22 	county's, or joint airport zoning board's Web site. If there is not a second newspaper of wide 
331.23 	general circulation in the area that the municipality, county, or joint airport zoning board 
331.24 	can designate for the notice, the municipality, county, or joint airport zoning board is only 
331.25 	required to publish the notice once in the official newspaper of the jurisdiction. The notice 
331.26 	shall not be published in the legal notice section of a newspaper. The notice must specify 
331.27 	the time, location, and purpose of the hearing, and must identify any additional location and 
331.28 	time the proposed regulations will be available for public inspection. A copy of the published 
331.29 	notice must be added to the record of the proceedings.
331.30 	(d) Notice of a hearing shall also be mailed to the governing body of each political 
331.31 	subdivision in which property affected by the regulations is located. Notice shall must be 
331.32 	given by mail at least 15 ten days before each hearing to any persons in municipalities that 
331.33 	own land proposed to be included in safety zone A or B as provided in the rules of the 
331.34 	Department of Transportation and landowners where the location or size of a building, or 
331.35 	the density of population, will be regulated. Mailed notice must also be provided at least 
332.1 	ten days before each hearing to persons or municipalities that have previously requested 
332.2 	such notice from the authority.municipality, county, or joint airport zoning board. The 
332.3 	notice must specify the time, location, and purpose of the hearing, and must identify any 
332.4 	additional location and time the proposed regulations will be made available for public 
332.5 	inspection. Mailed notice must also identify the property affected by the regulations. For 
332.6 	the purpose of giving providing mailed notice, the authority municipality, county, or joint 
332.7 	airport zoning board may use any appropriate records to determine the names and addresses 
332.8 	of owners. A copy of the notice and a list of the owners and addresses to which the notice 
332.9 	was sent shall be attested to by the responsible person and shall must be made a part of
332.10 	added to the records of the proceedings. The Failure to give provide mailed notice to 
332.11 	individual property owners, or defects a defect in the notice, shall does not invalidate the 
332.12 	proceedings; provided if a bona fide attempt to comply with this subdivision has been was
332.13 	made. A notice shall describe the property affected by the proposed regulations and the 
332.14 	restrictions to be imposed on the property by the regulations and shall state the place and 
332.15 	time at which the proposed regulations are available for public inspection.

332.16 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
332.17 	applies to airport sponsors that make or plan to make changes to runway lengths or 
332.18 	configurations on or after that date. Airport safety zoning ordinances that were approved 
332.19 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
332.20 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
332.21 	or (2) is required to update airport safety zoning ordinances.

332.22 	Sec. 98. [360.0655] AIRPORT ZONING REGULATIONS BASED ON 
332.23 	COMMISSIONER'S STANDARDS; SUBMISSION PROCESS.
332.24 		Subdivision 1.Submission to commissioner; review. (a) Except as provided in section 
332.25 	360.0656, prior to adopting zoning regulations the municipality, county, or joint airport 
332.26 	zoning board must submit the proposed regulations to the commissioner for the commissioner 
332.27 	to determine whether the regulations conform to the standards prescribed by the 
332.28 	commissioner. The municipality, county, or joint airport zoning board may elect to complete 
332.29 	custom airport zoning under section 360.0656 instead of using the commissioner's standard, 
332.30 	but only after providing written notice to the commissioner.
332.31 	(b) Notwithstanding section 15.99, the commissioner must examine the proposed 
332.32 	regulations within 90 days of receipt of the regulations and report to the municipality, county, 
332.33 	or joint airport zoning board the commissioner's approval or objections, if any. Failure to 
332.34 	respond within 90 days is deemed an approval. The commissioner may request additional 
333.1 	information from the municipality, county, or joint airport zoning board within the 90-day 
333.2 	review period. If the commissioner requests additional information, the 90-day review period 
333.3 	is tolled until the commissioner receives information and deems the information satisfactory.
333.4 	(c) If the commissioner objects on the grounds that the regulations do not conform to 
333.5 	the standards prescribed by the commissioner, the municipality, county, or joint airport 
333.6 	zoning board must make amendments necessary to resolve the objections or provide written 
333.7 	notice to the commissioner that the municipality, county, or joint airport zoning board has 
333.8 	elected to proceed with zoning under section 360.0656.
333.9 	(d) If the municipality, county, or joint airport zoning board makes revisions to the 
333.10 	proposed regulations after its initial public hearing, the municipality, county, or joint airport 
333.11 	zoning board must conduct a second public hearing on the revisions and resubmit the revised 
333.12 	proposed regulations to the commissioner for review. The commissioner must examine the 
333.13 	revised proposed regulations within 90 days of receipt to determine whether the revised 
333.14 	proposed regulations conform to the standards prescribed by the commissioner.
333.15 	(e) If, after a second review period, the commissioner determines that the municipality, 
333.16 	county, or joint airport zoning board failed to submit proposed regulations that conform to 
333.17 	the commissioner's standards, the commissioner must provide a final written decision to 
333.18 	the municipality, county, or joint airport zoning board.
333.19 	(f) The municipality, county, or joint airport zoning board must not adopt regulations 
333.20 	or take other action until the proposed regulations are approved by the commissioner.
333.21 	(g) The commissioner may approve local zoning ordinances that are more stringent than 
333.22 	the commissioner's standards.
333.23 	(h) If the commissioner approves the proposed regulations, the municipality, county, or 
333.24 	joint airport zoning board may adopt the regulations.
333.25 	(i) A copy of the adopted regulations must be filed with the county recorder in each 
333.26 	county that contains a zoned area subject to the regulations.
333.27 	(j) Substantive rights that existed and had been exercised prior to August 1, 2018, are 
333.28 	not affected by the filing of the regulations.
333.29 		Subd. 2.Protection of existing land uses. (a) In order to ensure minimum disruption 
333.30 	of existing land uses, the commissioner's airport zoning standards and local airport zoning 
333.31 	ordinances or regulations adopted under this section must distinguish between the creation 
333.32 	or establishment of a use and the elimination of an existing use, and must avoid the 
333.33 	elimination, removal, or reclassification of existing uses to the extent consistent with 
334.1 	reasonable safety standards. The commissioner's standards must include criteria for 
334.2 	determining when an existing land use may constitute an airport hazard so severe that public 
334.3 	safety considerations outweigh the public interest in preventing disruption to that land use.
334.4 	(b) Airport zoning regulations that classify as a nonconforming use or require 
334.5 	nonconforming use classification with respect to any existing low-density structure or 
334.6 	existing isolated low-density building lots must be adopted under sections 360.061 to 
334.7 	360.074.
334.8 	(c) A local airport zoning authority may classify a land use described in paragraph (b) 
334.9 	as an airport hazard if the authority finds that the classification is justified by public safety 
334.10 	considerations and is consistent with the commissioner's airport zoning standards. Any land 
334.11 	use described in paragraph (b) that is classified as an airport hazard must be acquired, altered, 
334.12 	or removed at public expense.
334.13 	(d) This subdivision must not be construed to affect the classification of any land use 
334.14 	under any zoning ordinances or regulations not adopted under sections 360.061 to 360.074.

334.15 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
334.16 	applies to airport sponsors that make or plan to make changes to runway lengths or 
334.17 	configurations on or after that date. Airport safety zoning ordinances that were approved 
334.18 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
334.19 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
334.20 	or (2) is required to update airport safety zoning ordinances.

334.21 	Sec. 99. [360.0656] CUSTOM AIRPORT ZONING STANDARDS.
334.22 		Subdivision 1.Custom airport zoning standards; factors. (a) Notwithstanding section 
334.23 	360.0655, a municipality, county, or joint airport zoning board must provide notice to the 
334.24 	commissioner when the municipality, county, or joint airport zoning board intends to establish 
334.25 	and adopt custom airport zoning regulations under this section.
334.26 	(b) Airport zoning regulations submitted to the commissioner under this subdivision are 
334.27 	not subject to the commissioner's zoning regulations under section 360.0655 or Minnesota 
334.28 	Rules, part 8800.2400.
334.29 	(c) When developing and adopting custom airport zoning regulations under this section, 
334.30 	the municipality, county, or joint airport zoning board must include in the record a detailed 
334.31 	analysis that explains how the proposed custom airport zoning regulations addressed the 
334.32 	following factors to ensure a reasonable level of safety:
335.1 	(1) the location of the airport, the surrounding land uses, and the character of 
335.2 	neighborhoods in the vicinity of the airport, including:
335.3 	(i) the location of vulnerable populations, including schools, hospitals, and nursing 
335.4 	homes, in the airport hazard area;
335.5 	(ii) the location of land uses that attract large assemblies of people in the airport hazard 
335.6 	area;
335.7 	(iii) the availability of contiguous open spaces in the airport hazard area;
335.8 	(iv) the location of wildlife attractants in the airport hazard area;
335.9 	(v) airport ownership or control of the federal Runway Protection Zone and the 
335.10 	department's Clear Zone;
335.11 	(vi) land uses that create or cause interference with the operation of radio or electronic 
335.12 	facilities used by the airport or aircraft;
335.13 	(vii) land uses that make it difficult for pilots to distinguish between airport lights and 
335.14 	other lights, result in glare in the eyes of pilots using the airport, or impair visibility in the 
335.15 	vicinity of the airport;
335.16 	(viii) land uses that otherwise inhibit a pilot's ability to land, take off, or maneuver the 
335.17 	aircraft;
335.18 	(ix) airspace protection to prevent the creation of air navigation hazards in the airport 
335.19 	hazard area; and
335.20 	(x) the social and economic costs of restricting land uses;
335.21 	(2) the airport's type of operations and how the operations affect safety surrounding the 
335.22 	airport;
335.23 	(3) the accident rate at the airport compared to a statistically significant sample, including 
335.24 	an analysis of accident distribution based on the rate with a higher accident incidence;
335.25 	(4) the planned land uses within an airport hazard area, including any applicable platting, 
335.26 	zoning, comprehensive plan, or transportation plan; and
335.27 	(5) any other information relevant to safety or the airport.
335.28 		Subd. 2.Submission to commissioner; review. (a) Except as provided in section 
335.29 	360.0655, prior to adopting zoning regulations, the municipality, county, or joint airport 
335.30 	zoning board must submit its proposed regulations and the supporting record to the 
335.31 	commissioner for review. The commissioner must determine whether the proposed custom 
336.1 	airport zoning regulations and supporting record (1) evaluate the criteria under subdivision 
336.2 	1, and (2) provide a reasonable level of safety.
336.3 	(b) Notwithstanding section 15.99, the commissioner must examine the proposed 
336.4 	regulations within 90 days of receipt of the regulations and report to the municipality, county, 
336.5 	or joint airport zoning board the commissioner's approval or objections, if any. Failure to 
336.6 	respond within 90 days is deemed an approval. The commissioner may request additional 
336.7 	information from the municipality, county, or joint airport zoning board within the 90-day 
336.8 	review period.
336.9 	(c) If the commissioner objects on the grounds that the regulations do not provide a 
336.10 	reasonable level of safety, the municipality, county, or joint airport zoning board must 
336.11 	review, consider, and provide a detailed explanation demonstrating how it evaluated the 
336.12 	objections and what action it took or did not take in response to the objections. If the 
336.13 	municipality, county, or joint airport zoning board submits amended regulations after its 
336.14 	initial public hearing, the municipality, county, or joint airport zoning board must conduct 
336.15 	a second public hearing on the revisions and resubmit the revised proposed regulations to 
336.16 	the commissioner for review. The commissioner must examine the revised proposed 
336.17 	regulations within 90 days of receipt of the regulations. If the commissioner requests 
336.18 	additional information, the 90-day review period is tolled until satisfactory information is 
336.19 	received by the commissioner. Failure to respond within 90 days is deemed an approval.
336.20 	(d) If, after the second review period, the commissioner determines that the municipality, 
336.21 	county, or joint airport zoning board failed to submit proposed regulations that provide a 
336.22 	reasonable safety level, the commissioner must provide a final written decision to the 
336.23 	municipality, county, or joint airport zoning board.
336.24 	(e) A municipality, county, or joint airport zoning board is prohibited from adopting 
336.25 	custom regulations or taking other action until the proposed regulations are approved by 
336.26 	the commissioner.
336.27 	(f) If the commissioner approves the proposed regulations, the municipality, county, or 
336.28 	joint airport zoning board may adopt the regulations.
336.29 	(g) A copy of the adopted regulations must be filed with the county recorder in each 
336.30 	county that contains a zoned area subject to the regulations.
336.31 	(h) Substantive rights that existed and had been exercised prior to August 1, 2018, are 
336.32 	not affected by the filing of the regulations.

337.1 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
337.2 	applies to airport sponsors that make or plan to make changes to runway lengths or 
337.3 	configurations on or after that date. Airport safety zoning ordinances that were approved 
337.4 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
337.5 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
337.6 	or (2) is required to update airport safety zoning ordinances.

337.7 	Sec. 100. Minnesota Statutes 2016, section 360.066, subdivision 1, is amended to read:
337.8 		Subdivision 1.Reasonableness. Standards of the commissioner Zoning standards defining 
337.9 	airport hazard areas and the categories of uses permitted and airport zoning regulations 
337.10 	adopted under sections 360.011 to 360.076, shall must be reasonable, and none shall impose 
337.11 	a requirement or restriction which that is not reasonably necessary to effectuate the purposes 
337.12 	of sections 360.011 to 360.076. In determining what minimum airport zoning regulations 
337.13 	may be adopted, the commissioner and a local airport zoning authority shall consider, among 
337.14 	other things, the character of the flying operations expected to be conducted at the airport, 
337.15 	the location of the airport, the nature of the terrain within the airport hazard area, the existing 
337.16 	land uses and character of the neighborhood around the airport, the uses to which the property 
337.17 	to be zoned are planned and adaptable, and the social and economic costs of restricting land 
337.18 	uses versus the benefits derived from a strict application of the standards of the commissioner.

337.19 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
337.20 	applies to airport sponsors that make or plan to make changes to runway lengths or 
337.21 	configurations on or after that date. Airport safety zoning ordinances that were approved 
337.22 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
337.23 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
337.24 	or (2) is required to update airport safety zoning ordinances.

337.25 	Sec. 101. Minnesota Statutes 2016, section 360.067, is amended by adding a subdivision 
337.26 	to read:
337.27 		Subd. 5.Federal no hazard determination. (a) Notwithstanding subdivisions 1 and 2, 
337.28 	a municipality, county, or joint airport zoning board may include in its custom airport zoning 
337.29 	regulations adopted under section 360.0656 an option to permit construction of a structure, 
337.30 	an increase or alteration of the height of a structure, or the growth of an existing tree without 
337.31 	a variance from height restrictions if the Federal Aviation Administration has analyzed the 
337.32 	proposed construction, alteration, or growth under Code of Federal Regulations, title 14, 
337.33 	part 77, and has determined the proposed construction, alteration, or growth does not:
338.1 	(1) pose a hazard to air navigation;
338.2 	(2) require changes to airport or aircraft operations; or
338.3 	(3) require any mitigation conditions by the Federal Aviation Administration that cannot 
338.4 	be satisfied by the landowner.
338.5 	(b) A municipality, county, or joint airport zoning board that permits an exception to 
338.6 	height restrictions under this subdivision must require the applicant to file the Federal 
338.7 	Aviation Administration's no hazard determination with the applicable zoning administrator. 
338.8 	The applicant must obtain written approval of the zoning administrator before construction, 
338.9 	alteration, or growth may occur. Failure of the administrator to respond within 60 days to 
338.10 	a filing under this subdivision is deemed a denial. The Federal Aviation Administration's 
338.11 	no hazard determination does not apply to requests for variation from land use, density, or 
338.12 	any other requirement unrelated to the height of structures or the growth of trees.

338.13 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
338.14 	applies to airport sponsors that make or plan to make changes to runway lengths or 
338.15 	configurations on or after that date. Airport safety zoning ordinances that were approved 
338.16 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
338.17 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
338.18 	or (2) is required to update airport safety zoning ordinances.

338.19 	Sec. 102. Minnesota Statutes 2016, section 360.071, subdivision 2, is amended to read:
338.20 		Subd. 2.Membership. (a) Where a zoning board of appeals or adjustment already exists, 
338.21 	it may be appointed as the board of adjustment. Otherwise, the board of adjustment shall 
338.22 	consist of five members, each to be appointed for a term of three years by the authority 
338.23 	adopting the regulations and to be removable by the appointing authority for cause, upon 
338.24 	written charges and after public hearing. The length of initial appointments may be staggered.
338.25 	(b) In the case of a Metropolitan Airports Commission, five members shall be appointed 
338.26 	by the commission chair from the area in and for which the commission was created, any 
338.27 	of whom may be members of the commission. In the case of an airport owned or operated 
338.28 	by the state of Minnesota, the board of commissioners of the county, or counties, in which 
338.29 	the airport hazard area is located shall constitute the airport board of adjustment and shall 
338.30 	exercise the powers and duties of such board as provided herein.

338.31 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
338.32 	applies to airport sponsors that make or plan to make changes to runway lengths or 
338.33 	configurations on or after that date. Airport safety zoning ordinances that were approved 
339.1 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
339.2 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
339.3 	or (2) is required to update airport safety zoning ordinances.

339.4 	Sec. 103. Minnesota Statutes 2016, section 360.305, subdivision 6, is amended to read:
339.5 		Subd. 6.Zoning required. The commissioner shall must not expend money for planning 
339.6 	or land acquisition, or for the construction, improvement, or maintenance of airports, or for 
339.7 	air navigation facilities for an airport, unless the governmental unit municipality, county, 
339.8 	or joint airport zoning board involved has or is establishing a zoning authority for that 
339.9 	airport, and the authority has made a good-faith showing that it is in the process of and will 
339.10 	complete with due diligence, an airport zoning ordinance in accordance with sections 360.061
339.11 	to 360.074. The commissioner may provide funds to support airport safety projects that 
339.12 	maintain existing infrastructure, regardless of a zoning authority's efforts to complete a 
339.13 	zoning regulation. The commissioner shall must make maximum use of zoning and easements 
339.14 	to eliminate runway and other potential airport hazards rather than land acquisition in fee.

339.15 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
339.16 	applies to airport sponsors that make or plan to make changes to runway lengths or 
339.17 	configurations on or after that date. Airport safety zoning ordinances that were approved 
339.18 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
339.19 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
339.20 	or (2) is required to update airport safety zoning ordinances.

339.21 	Sec. 104. Minnesota Statutes 2016, section 394.22, is amended by adding a subdivision 
339.22 	to read:
339.23 		Subd. 1a.Airport safety zone. "Airport safety zone" means an area subject to land use 
339.24 	zoning controls adopted under sections 360.061 to 360.074 if the zoning controls regulate 
339.25 	(1) the size or location of buildings, or (2) the density of population.

339.26 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018.

339.27 	Sec. 105. Minnesota Statutes 2016, section 394.23, is amended to read:
339.28 	394.23 COMPREHENSIVE PLAN.
339.29 	The board has the power and authority to prepare and adopt by ordinance, a 
339.30 	comprehensive plan. A comprehensive plan or plans when adopted by ordinance must be 
339.31 	the basis for official controls adopted under the provisions of sections 394.21 to 394.37. 
339.32 	The commissioner of natural resources must provide the natural heritage data from the 
340.1 	county biological survey, if available, to each county for use in the comprehensive plan. 
340.2 	When adopting or updating the comprehensive plan, the board must, if the data is available 
340.3 	to the county, consider natural heritage data resulting from the county biological survey. In 
340.4 	a county that is not a greater than 80 percent area, as defined in section 103G.005, subdivision 
340.5 	10b, the board must consider adopting goals and objectives that will protect open space and 
340.6 	the environment. The board must consider the location and dimensions of airport safety 
340.7 	zones in any portion of the county, and of any airport improvements, identified in the airport's 
340.8 	most recent approved airport layout plan.

340.9 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
340.10 	applies to airport sponsors that make or plan to make changes to runway lengths or 
340.11 	configurations on or after that date. Airport safety zoning ordinances that were approved 
340.12 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
340.13 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
340.14 	or (2) is required to update airport safety zoning ordinances.

340.15 	Sec. 106. Minnesota Statutes 2016, section 394.231, is amended to read:
340.16 	394.231 COMPREHENSIVE PLANS IN GREATER MINNESOTA; OPEN SPACE.
340.17 	A county adopting or updating a comprehensive plan in a county outside the metropolitan 
340.18 	area as defined by section 473.121, subdivision 2, and that is not a greater than 80 percent 
340.19 	area, as defined in section 103G.005, subdivision 10b, shall consider adopting goals and 
340.20 	objectives for the preservation of agricultural, forest, wildlife, and open space land, and 
340.21 	minimizing development in sensitive shoreland areas. Within three years of updating the 
340.22 	comprehensive plan, the county shall consider adopting ordinances as part of the county's 
340.23 	official controls that encourage the implementation of the goals and objectives. The county 
340.24 	shall consider the following goals and objectives:
340.25 	(1) minimizing the fragmentation and development of agricultural, forest, wildlife, and 
340.26 	open space lands, including consideration of appropriate minimum lot sizes;
340.27 	(2) minimizing further development in sensitive shoreland areas;
340.28 	(3) minimizing development near wildlife management areas, scientific and natural 
340.29 	areas, and nature centers;
340.30 	(4) encouraging land uses in airport safety zones that are compatible with the safe 
340.31 	operation of the airport and the safety of people in the vicinity of the airport;
340.32 	(4) (5) identification of areas of preference for higher density, including consideration 
340.33 	of existing and necessary water and wastewater services, infrastructure, other services, and 
341.1 	to the extent feasible, encouraging full development of areas previously zoned for 
341.2 	nonagricultural uses;
341.3 	(5) (6) encouraging development close to places of employment, shopping centers, 
341.4 	schools, mass transit, and other public and private service centers;
341.5 	(6) (7) identification of areas where other developments are appropriate; and
341.6 	(7) (8) other goals and objectives a county may identify.

341.7 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
341.8 	applies to airport sponsors that make or plan to make changes to runway lengths or 
341.9 	configurations on or after that date. Airport safety zoning ordinances that were approved 
341.10 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
341.11 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
341.12 	or (2) is required to update airport safety zoning ordinances.

341.13 	Sec. 107. Minnesota Statutes 2016, section 394.25, subdivision 3, is amended to read:
341.14 		Subd. 3.In district zoning, maps. Within each such district zoning ordinances or maps 
341.15 	may also be adopted designating or limiting the location, height, width, bulk, type of 
341.16 	foundation, number of stories, size of, and the specific uses for which dwellings, buildings, 
341.17 	and structures may be erected or altered; the minimum and maximum size of yards, courts, 
341.18 	or other open spaces; setback from existing roads and highways and roads and highways 
341.19 	designated on an official map; protective measures necessary to protect the public interest 
341.20 	including but not limited to controls relating to appearance, signs, lighting, hours of operation 
341.21 	and other aesthetic performance characteristics including but not limited to noise, heat, 
341.22 	glare, vibrations and smoke; the area required to provide for off street loading and parking 
341.23 	facilities; heights of trees and structures near airports; and to avoid too great concentration 
341.24 	or scattering of the population. All such provisions shall be uniform for each class of land 
341.25 	or building throughout each district, but the provisions in one district may differ from those 
341.26 	in other districts. No provision may prohibit earth sheltered construction as defined in section 
341.27 	216C.06, subdivision 14, or manufactured homes built in conformance with sections 327.31
341.28 	to 327.35 that comply with all other zoning ordinances promulgated pursuant to this section.
341.29 	Airport safety zones must be included on maps that illustrate boundaries of zoning districts 
341.30 	and that are adopted as official controls.

341.31 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to maps 
341.32 	created or updated under this section on or after that date.

342.1 	Sec. 108. Minnesota Statutes 2016, section 462.352, is amended by adding a subdivision 
342.2 	to read:
342.3 		Subd. 1a.Airport safety zone. "Airport safety zone" has the meaning given in section 
342.4 	394.22, subdivision 1a.

342.5 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018.

342.6 	Sec. 109. Minnesota Statutes 2016, section 462.355, subdivision 1, is amended to read:
342.7 		Subdivision 1.Preparation and review. The planning agency shall prepare the 
342.8 	comprehensive municipal plan. In discharging this duty the planning agency shall consult 
342.9 	with and coordinate the planning activities of other departments and agencies of the 
342.10 	municipality to insure conformity with and to assist in the development of the comprehensive 
342.11 	municipal plan. In its planning activities the planning agency shall take due cognizance of 
342.12 	the planning activities of adjacent units of government and other affected public agencies. 
342.13 	The planning agency shall periodically review the plan and recommend amendments 
342.14 	whenever necessary. When preparing or recommending amendments to the comprehensive 
342.15 	plan, the planning agency of a municipality located within a county that is not a greater than 
342.16 	80 percent area, as defined in section 103G.005, subdivision 10b, must consider adopting 
342.17 	goals and objectives that will protect open space and the environment. When preparing or 
342.18 	recommending amendments to the comprehensive plan, the planning agency must consider 
342.19 	(1) the location and dimensions of airport safety zones in any portion of the municipality, 
342.20 	and (2) any airport improvements identified in the airport's most recent approved airport 
342.21 	layout plan.

342.22 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
342.23 	applies to airport sponsors that make or plan to make changes to runway lengths or 
342.24 	configurations on or after that date. Airport safety zoning ordinances that were approved 
342.25 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
342.26 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
342.27 	or (2) is required to update airport safety zoning ordinances.

342.28 	Sec. 110. Minnesota Statutes 2016, section 462.357, is amended by adding a subdivision 
342.29 	to read:
342.30 		Subd. 1i.Airport safety zones on zoning maps. Airport safety zones must be included 
342.31 	on maps that illustrate boundaries of zoning districts and that are adopted as official controls.

343.1 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to maps 
343.2 	created or updated under this section on or after that date.

343.3 	Sec. 111. Minnesota Statutes 2016, section 462.357, subdivision 9, is amended to read:
343.4 		Subd. 9.Development goals and objectives. In adopting official controls after July 1, 
343.5 	2008, in a municipality outside the metropolitan area, as defined by section 473.121, 
343.6 	subdivision 2, the municipality shall consider restricting new residential, commercial, and 
343.7 	industrial development so that the new development takes place in areas subject to the 
343.8 	following goals and objectives:
343.9 	(1) minimizing the fragmentation and development of agricultural, forest, wildlife, and 
343.10 	open space lands, including consideration of appropriate minimum lot sizes;
343.11 	(2) minimizing further development in sensitive shoreland areas;
343.12 	(3) minimizing development near wildlife management areas, scientific and natural 
343.13 	areas, and nature centers;
343.14 	(4) encouraging land uses in airport safety zones that are compatible with the safe 
343.15 	operation of the airport and the safety of people in the vicinity of the airport;
343.16 	(4) (5) identification of areas of preference for higher density, including consideration 
343.17 	of existing and necessary water and wastewater services, infrastructure, other services, and 
343.18 	to the extent feasible, encouraging full development of areas previously zoned for 
343.19 	nonagricultural uses;
343.20 	(5) (6) encouraging development close to places of employment, shopping centers, 
343.21 	schools, mass transit, and other public and private service centers;
343.22 	(6) (7) identification of areas where other developments are appropriate; and
343.23 	(7) (8) other goals and objectives a municipality may identify.

343.24 	EFFECTIVE DATE; APPLICATION. This section is effective August 1, 2018, and 
343.25 	applies to airport sponsors that make or plan to make changes to runway lengths or 
343.26 	configurations on or after that date. Airport safety zoning ordinances that were approved 
343.27 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
343.28 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
343.29 	or (2) is required to update airport safety zoning ordinances.

344.1 	Sec. 112. Minnesota Statutes 2016, section 473.13, is amended by adding a subdivision 
344.2 	to read:
344.3 		Subd. 1d.Budget changes or variances; reports. At least quarterly by January 1, April 
344.4 	1, July 1, and October 1, the council must submit a summary to the chairs and ranking 
344.5 	minority members of the house of representatives and senate committees with jurisdiction 
344.6 	over transportation policy and finance and to the Legislative Commission on Metropolitan 
344.7 	Government on any changes to or variances from the budget adopted under subdivision 1.

344.8 	EFFECTIVE DATE; APPLICATION. This section is effective June 1, 2018, and 
344.9 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

344.10 	Sec. 113. Minnesota Statutes 2016, section 473.13, is amended by adding a subdivision 
344.11 	to read:
344.12 		Subd. 6.Overview of revenues and expenditures; forecast. (a) In cooperation with 
344.13 	the Department of Management and Budget and in conjunction with the release of each 
344.14 	forecast required by section 16A.103, the council must prepare a financial overview and 
344.15 	forecast of revenues and expenditures for the transportation components of the council's 
344.16 	budget.
344.17 	(b) At a minimum, the financial overview and forecast must identify:
344.18 	(1) actual revenues, expenditures, transfers, reserves, and balances for each of the previous 
344.19 	four budget years;
344.20 	(2) budgeted and forecasted revenues, expenditures, transfers, reserves, and balances 
344.21 	for each year within the state forecast period; and
344.22 	(3) a comparison of the information under clause (2) to the prior forecast, including any 
344.23 	changes made.
344.24 	(c) The information under paragraph (b), clauses (1) and (2), must include:
344.25 	(1) a breakdown for each transportation operating budget category established by the 
344.26 	council, including but not limited to bus, light rail transit, commuter rail, planning, special 
344.27 	transportation service under section 473.386, and assistance to replacement service providers 
344.28 	under section 473.388;
344.29 	(2) data for both transportation operating and capital expenditures; and
344.30 	(3) fund balances for each replacement service provider under section 473.388.
345.1 	(d) The financial overview and forecast must summarize reserve policies, identify the 
345.2 	methodology for cost allocation, and review revenue assumptions and variables affecting 
345.3 	the assumptions.
345.4 	(e) The council must review the financial overview and forecast information with the 
345.5 	chairs, ranking minority members, and staff of the legislative committees with jurisdiction 
345.6 	over finance, ways and means, and transportation finance no later than two weeks following 
345.7 	the release of the forecast.

345.8 	EFFECTIVE DATE; APPLICATION. This section is effective June 1, 2018, and 
345.9 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

345.10 	Sec. 114. Minnesota Statutes 2016, section 473.13, is amended by adding a subdivision 
345.11 	to read:
345.12 		Subd. 7.Budget assumptions. (a) As part of the budget submission to the legislature 
345.13 	under section 16A.11, the council must explicitly identify the assumptions used (1) to prepare 
345.14 	the budget submission, and (2) for any underlying documentation or plans regarding 
345.15 	transportation and transit.
345.16 	(b) As part of the budget submission to the legislature under section 16A.11, the council 
345.17 	must include copies of any report, application, or related document submitted to the Federal 
345.18 	Transit Administration since the previous budget submission was provided to the legislature. 
345.19 	In the budget submission, the council must explicitly identify the assumptions used to 
345.20 	prepare each of the reports, applications, or related documents.
345.21 	(c) In the budget submission to the legislature under section 16A.11, the council must 
345.22 	include a section that provides a detailed explanation of the impact each assumption identified 
345.23 	in paragraphs (a) and (b) has on the council's financial forecast.

345.24 	APPLICATION. This section applies in the counties of Anoka, Carver, Dakota, 
345.25 	Hennepin, Ramsey, Scott, and Washington.

345.26 	Sec. 115. Minnesota Statutes 2016, section 473.386, subdivision 3, is amended to read:
345.27 		Subd. 3.Duties of council. In implementing the special transportation service, the council 
345.28 	shall must:
345.29 	(a) (1) encourage participation in the service by public, private, and private nonprofit 
345.30 	providers of special transportation currently receiving capital or operating assistance from 
345.31 	a public agency;
346.1 	(b) (2) when feasible and cost-efficient, contract with public, private, and private nonprofit 
346.2 	providers that have demonstrated their ability to effectively provide service at a reasonable 
346.3 	cost;
346.4 	(c) (3) encourage individuals using special transportation to use the type of service most 
346.5 	appropriate to their particular needs;
346.6 	(d) (4) encourage shared rides to the greatest extent practicable;
346.7 	(e) (5) encourage public agencies that provide transportation to eligible individuals as 
346.8 	a component of human services and educational programs to coordinate with this service 
346.9 	and to allow reimbursement for transportation provided through the service at rates that 
346.10 	reflect the public cost of providing that transportation;
346.11 	(f) (6) establish criteria to be used in determining individual eligibility for special 
346.12 	transportation services;
346.13 	(g) (7) consult with the Transportation Accessibility Advisory Committee in a timely 
346.14 	manner before changes are made in the provision of special transportation services;
346.15 	(h) (8) provide for effective administration and enforcement of council policies and 
346.16 	standards; and
346.17 	(i) (9) ensure that, taken as a whole including contracts with public, private, and private 
346.18 	nonprofit providers, the geographic coverage area of the special transportation service is 
346.19 	continuous within the boundaries of the transit taxing district, as defined as of March 1, 
346.20 	2006, in section 473.446, subdivision 2, and any area added to the transit taxing district 
346.21 	under section 473.4461 that received capital improvements financed in part under the United 
346.22 	States Department of Transportation Urban Partnership Agreement program.

346.23 	EFFECTIVE DATE; APPLICATION. This section is effective July 1, 2019, and 
346.24 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

346.25 	Sec. 116. Minnesota Statutes 2016, section 473.386, is amended by adding a subdivision 
346.26 	to read:
346.27 		Subd. 9.Data practices. (a) For purposes of administering this section, and only with 
346.28 	the consent of the data subject, the commissioner of human services and the Metropolitan 
346.29 	Council may share the following private data on individuals eligible for special transportation 
346.30 	services:
346.31 	(1) name;
346.32 	(2) date of birth;
347.1 	(3) residential address; and
347.2 	(4) program eligibility status with expiration date, to inform the other party of program 
347.3 	eligibility.
347.4 	(b) The commissioner of human services and the Metropolitan Council must provide 
347.5 	notice regarding data sharing to each individual applying for or renewing eligibility to use 
347.6 	special transportation services. The notice must seek consent to engage in data sharing under 
347.7 	paragraph (a), and must state how and for what purposes the individual's private data will 
347.8 	be shared between the commissioner of human services and the Metropolitan Council. A 
347.9 	consent to engage in data sharing is effective until the individual's eligibility expires, but 
347.10 	may be renewed if the individual applies to renew eligibility.

347.11 	EFFECTIVE DATE; APPLICATION. This section is effective June 1, 2018, and 
347.12 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
347.13 	Within 60 days of this section's effective date, the commissioner of human services and the 
347.14 	Metropolitan Council must provide notice regarding data sharing to each individual who is 
347.15 	currently receiving special transportation services under Minnesota Statutes, section 473.386. 
347.16 	The notice must provide an opportunity to opt out of data sharing under paragraph (a) of 
347.17 	this section, and must state how and for what purposes the individual's private data will be 
347.18 	shared between the commissioner of human services and the Metropolitan Council. An 
347.19 	individual who is currently receiving special transportation services on this section's effective 
347.20 	date is presumed to have consented to data sharing under paragraph (a) unless, within 60 
347.21 	days of the dissemination of the notice, the individual appropriately informs the commissioner 
347.22 	of human services or the Metropolitan Council that the individual opts out of data sharing.

347.23 	Sec. 117. Minnesota Statutes 2017 Supplement, section 473.4051, subdivision 2, is amended 
347.24 	to read:
347.25 		Subd. 2.Operating costs. (a) After operating revenue and federal money have been 
347.26 	used to pay for light rail transit operations, 50 percent of the remaining operating costs must 
347.27 	be paid by the state.
347.28 	(b) Notwithstanding paragraph (a), all operating and ongoing capital maintenance costs 
347.29 	must be paid from nonstate sources for a segment of a light rail transit line or line extension 
347.30 	project that formally entered the engineering phase of the Federal Transit Administration's 
347.31 	"New Starts" capital investment grant program between August 1, 2016, and December 31, 
347.32 	2016.
348.1 	(c) For purposes of this subdivision, operating costs consist of the costs associated with 
348.2 	light rail system daily operations and the maintenance costs associated with keeping light 
348.3 	rail services and facilities operating. Operating costs do not include costs incurred to construct 
348.4 	new buildings or facilities, purchase new vehicles, or make technology improvements.

348.5 	EFFECTIVE DATE; APPLICATION. This section is effective June 1, 2018, and 
348.6 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

348.7 	Sec. 118. Minnesota Statutes 2016, section 473.4051, subdivision 3, is amended to read:
348.8 		Subd. 3.Capital costs. State money may must not be used to pay more than ten percent 
348.9 	of for the total capital cost of a light rail transit project.

348.10 	EFFECTIVE DATE; APPLICATION. This section is effective June 1, 2018, for 
348.11 	appropriations encumbered on or after that date and applies in the counties of Anoka, Carver, 
348.12 	Dakota, Hennepin, Ramsey, Scott, and Washington.

348.13 	Sec. 119. Minnesota Statutes 2017 Supplement, section 473.4485, subdivision 2, is amended 
348.14 	to read:
348.15 		Subd. 2.Legislative report. (a) By October 15 in every even-numbered year, the council 
348.16 	must prepare, in collaboration with the commissioner, a report on comprehensive transit 
348.17 	finance in the metropolitan area. The council must submit the report electronically to the 
348.18 	chairs and ranking minority members of the legislative committees with jurisdiction over 
348.19 	transportation policy and finance.
348.20 	(b) The report must be structured to provide financial information in six-month increments 
348.21 	corresponding to state and local fiscal years, and must use consistent assumptions and 
348.22 	methodologies. The report must explicitly identify and explain the assumptions and 
348.23 	methodologies used to prepare the report. The report must comprehensively identify all 
348.24 	funding sources and expenditures related to transit in the metropolitan area, including but 
348.25 	not limited to:
348.26 	(1) sources and uses of funds from regional railroad authorities, joint powers agreements, 
348.27 	counties, and cities;
348.28 	(2) expenditures for transit planning, feasibility studies, alternatives analysis, and other 
348.29 	transit project development; and
348.30 	(3) expenditures for guideways, busways, regular route bus service, demand-response 
348.31 	service, and special transportation service under section 473.386.
349.1 	(c) The report must include a section that summarizes the status of (1) guideways in 
349.2 	revenue operation, and (2) guideway projects (i) currently in study, planning, development, 
349.3 	or construction; (ii) identified in the transportation policy plan under section 473.146; or 
349.4 	(iii) identified in the comprehensive statewide freight and passenger rail plan under section 
349.5 	174.03, subdivision 1b.
349.6 	(d) At a minimum, the guideways status section of the report must provide for each 
349.7 	guideway project wholly or partially in the metropolitan area:
349.8 	(1) a brief description of the project, including projected ridership;
349.9 	(2) a summary of the overall status and current phase of the project;
349.10 	(3) a timeline that includes (i) project phases or milestones, including any federal 
349.11 	approvals; (ii) expected and known dates of commencement of each phase or milestone; 
349.12 	and (iii) expected and known dates of completion of each phase or milestone;
349.13 	(4) a brief progress update on specific project phases or milestones completed since the 
349.14 	last previous submission of a report under this subdivision; and
349.15 	(5) a summary financial plan that identifies, as reflected by the data and level of detail 
349.16 	available in the latest phase of project development and to the extent available:
349.17 	(i) capital expenditures, including expenditures to date and total projected expenditures, 
349.18 	with a breakdown by committed and proposed sources of funds for the project;
349.19 	(ii) estimated annual operations and maintenance expenditures reflecting the level of 
349.20 	detail available in the current phase of the project development, with a breakdown by 
349.21 	committed and proposed sources of funds for the project; and
349.22 	(iii) if feasible, project expenditures by budget activity.
349.23 	(e) The report must include a section that summarizes the status of (1) busways in revenue 
349.24 	operation, and (2) busway projects currently in study, planning, development, or construction.
349.25 	(f) The report must include a section that identifies the total ridership, farebox recovery 
349.26 	ratio, and per-passenger operating subsidy for (1) each route and line in revenue operation 
349.27 	by a transit provider, including guideways, busways, and regular route bus service; and (2) 
349.28 	demand-response service and special transportation service. The section must provide data, 
349.29 	as available on a per-passenger mile basis and must provide information for at least the 
349.30 	previous three years. The section must identify performance standards for farebox recovery 
349.31 	and identify each route and line that does not meet the standards.
350.1 	(g) The report must also include a systemwide capacity analysis for transit operations 
350.2 	and investment in expansion and maintenance that:
350.3 	(1) provides a funding projection, annually over the ensuing ten years, and with a 
350.4 	breakdown by committed and proposed sources of funds, of:
350.5 	(i) total capital expenditures for guideways and for busways;
350.6 	(ii) total operations and maintenance expenditures for guideways and for busways;
350.7 	(iii) total funding available for guideways and for busways, including from projected or 
350.8 	estimated farebox recovery; and
350.9 	(iv) total funding available for transit service in the metropolitan area; and
350.10 	(2) evaluates the availability of funds and distribution of sources of funds for guideway 
350.11 	and for busway investments.
350.12 	(h) The capacity analysis under paragraph (g) must include all guideway and busway 
350.13 	lines for which public funds are reasonably expected to be expended in planning, 
350.14 	development, construction, revenue operation, or capital maintenance during the ensuing 
350.15 	ten years.
350.16 	(i) Local units of government must provide assistance and information in a timely manner 
350.17 	as requested by the commissioner or council for completion of the report.

350.18 	APPLICATION. This section applies in the counties of Anoka, Carver, Dakota, 
350.19 	Hennepin, Ramsey, Scott, and Washington.

350.20 	Sec. 120. Minnesota Statutes 2016, section 473.606, subdivision 5, is amended to read:
350.21 		Subd. 5.Employees, others, affirmative action; prevailing wage. The corporation 
350.22 	shall have has the power to appoint engineers and other consultants, attorneys, and such
350.23 	other officers, agents, and employees as it may see fit, who shall must perform such duties 
350.24 	and receive such compensation as the corporation may determine notwithstanding the 
350.25 	provisions of section 43A.17, subdivision 9, and be removable at the pleasure of the 
350.26 	corporation. The corporation must adopt an affirmative action plan, which shall must be 
350.27 	submitted to the appropriate agency or office of the state for review and approval. The plan 
350.28 	must include a yearly progress report to the agency or office. Whenever the corporation 
350.29 	performs any work within the limits of a city of the first class, or establishes a minimum 
350.30 	wage for skilled or unskilled labor in the specifications or any contract for work within one 
350.31 	of the cities, the rate of pay to such skilled and unskilled labor must be the prevailing rate 
350.32 	of wage for such labor in that city.

351.1 	Sec. 121. Minnesota Statutes 2016, section 574.26, subdivision 1a, is amended to read:
351.2 		Subd. 1a.Exemptions: certain manufacturers; commissioner of transportation; 
351.3 	road maintenance. (a) Sections 574.26 to 574.32 do not apply to a manufacturer of public 
351.4 	transit buses that manufactures at least 100 public transit buses in a calendar year. For 
351.5 	purposes of this section, "public transit bus" means a motor vehicle designed to transport 
351.6 	people, with a design capacity for carrying more than 40 passengers, including the driver. 
351.7 	The term "public transit bus" does not include a school bus, as defined in section 169.011, 
351.8 	subdivision 71.
351.9 	(b) At the discretion of the commissioner of transportation, sections 574.26 to 574.32
351.10 	do not apply to any projects of the Department of Transportation (1) costing less than the 
351.11 	amount in section 471.345, subdivision 3, or (2) involving the permanent or semipermanent 
351.12 	installation of heavy machinery, fixtures, or other capital equipment to be used primarily 
351.13 	for maintenance or repair, or (3) awarded under section 161.32, subdivision 2.
351.14 	(c) Sections 574.26 to 574.32 do not apply to contracts for snow removal, ice removal, 
351.15 	grading, or other similar routine road maintenance on town roads.

351.16 	Sec. 122. Laws 2014, chapter 312, article 11, section 38, subdivision 5, is amended to 
351.17 	read:
351.18 		Subd. 5.Pilot program evaluation. In coordination with the city, the commissioner of 
351.19 	transportation shall evaluate effectiveness of the pilot program under this section, which 
351.20 	must include analysis of traffic safety impacts, utility to motorists and tourists, costs and 
351.21 	expenditures, extent of community support, and pilot program termination or continuation. 
351.22 	By January 15, 2021 2024, the commissioner shall submit a report on the evaluation to the 
351.23 	chairs and ranking minority members and staff of the legislative committees with jurisdiction 
351.24 	over transportation policy and finance.

351.25 	Sec. 123. Laws 2014, chapter 312, article 11, section 38, subdivision 6, is amended to 
351.26 	read:
351.27 		Subd. 6.Expiration. The pilot program under this section expires January 1, 2022 2025.

351.28 	Sec. 124. EDITING MNLARS TRANSACTIONS.
 351.29 	(a) The commissioner of public safety must ensure deputy registrars are able to edit, at 
351.30 	a minimum, the following information as part of a Minnesota Licensing and Registration 
351.31 	System (MNLARS) transaction:
352.1 	(1) personal information of the applicant;
352.2 	(2) vehicle classification and information about a vehicle or trailer;
352.3 	(3) sale price of a vehicle or trailer;
352.4 	(4) the amount of taxes and fees; and
352.5 	(5) the base value of a vehicle or trailer.
352.6 	(b) The ability to edit the transactions under paragraph (a) must be available until the 
352.7 	end of the business day following the day the transaction was initially completed.
352.8 	(c) For each transaction edited, MNLARS must (1) record which individual edited the 
352.9 	record, the date and time the record was edited, and what information was edited, and (2) 
352.10 	include a notation that the transaction was edited.

352.11 	EFFECTIVE DATE. This section is effective July 1, 2019.

352.12 	Sec. 125. LEGISLATIVE ROUTE NO. 180 TURNBACK; SPEED LIMIT.
 352.13 	If the commissioner of transportation turns back any portion of Legislative Route No. 
352.14 	180 to Grant County, the speed limit on that portion of the road after it is turned back must 
352.15 	remain 60 miles per hour.

352.16 	EFFECTIVE DATE. This section is effective June 1, 2018.

352.17 	Sec. 126. LEGISLATIVE ROUTE NO. 222 REMOVED.
 352.18 	(a) Minnesota Statutes, section 161.115, subdivision 153, is repealed effective the day 
352.19 	after the commissioner of transportation receives a copy of the agreement between the 
352.20 	commissioner and the governing body of Red Lake County to transfer jurisdiction of 
352.21 	Legislative Route No. 222 and after the commissioner notifies the revisor of statutes under 
352.22 	paragraph (b).
352.23 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
352.24 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
352.25 	or in writing that the conditions required to transfer the route have been satisfied.

352.26 	Sec. 127. LEGISLATIVE ROUTE NO. 253 REMOVED.
 352.27 	(a) Minnesota Statutes, section 161.115, subdivision 184, is repealed effective the day 
352.28 	after the commissioner of transportation receives a copy of the agreement between the 
352.29 	commissioner and the governing body of Faribault County to transfer jurisdiction of 
353.1 	Legislative Route No. 253 and after the commissioner notifies the revisor of statutes under 
353.2 	paragraph (b).
353.3 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
353.4 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
353.5 	or in writing that the conditions required to transfer the route have been satisfied.

353.6 	Sec. 128. LEGISLATIVE ROUTE NO. 254 REMOVED.
 353.7 	(a) Minnesota Statutes, section 161.115, subdivision 185, is repealed effective the day 
353.8 	after the commissioner of transportation receives a copy of the agreement between the 
353.9 	commissioner and the governing body of Faribault County to transfer jurisdiction of 
353.10 	Legislative Route No. 254 and after the commissioner notifies the revisor of statutes under 
353.11 	paragraph (b).
353.12 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
353.13 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
353.14 	or in writing that the conditions required to transfer the route have been satisfied.

353.15 	Sec. 129. LEGISLATIVE ROUTE NO. 277 REMOVED.
 353.16 	(a) Minnesota Statutes, section 161.115, subdivision 208, is repealed effective June 1, 
353.17 	2018, or the day after the commissioner of transportation receives a copy of the agreement 
353.18 	between the commissioner and the governing body of Chippewa County to transfer 
353.19 	jurisdiction of Legislative Route No. 277 and after the commissioner notifies the revisor of 
353.20 	statutes under paragraph (b), whichever is later.
353.21 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
353.22 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
353.23 	or in writing that the conditions required to transfer the route have been satisfied.

353.24 	Sec. 130. LEGISLATIVE ROUTE NO. 298 REMOVED.
 353.25 	(a) Minnesota Statutes, section 161.115, subdivision 229, is repealed effective the day 
353.26 	after the commissioner of transportation receives a copy of the agreement between the 
353.27 	commissioner and the governing body of the city of Faribault to transfer jurisdiction of 
353.28 	Legislative Route No. 298 and after the commissioner notifies the revisor of statutes under 
353.29 	paragraph (b).
354.1 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
354.2 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
354.3 	or in writing that the conditions required to transfer the route have been satisfied.

354.4 	Sec. 131. LEGISLATIVE ROUTE NO. 299 REMOVED.
 354.5 	(a) Minnesota Statutes, section 161.115, subdivision 230, is repealed effective the day 
354.6 	after the commissioner of transportation receives a copy of the agreement between the 
354.7 	commissioner and the governing body of the city of Faribault to transfer jurisdiction of 
354.8 	Legislative Route No. 299 and after the commissioner notifies the revisor of statutes under 
354.9 	paragraph (b).
354.10 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
354.11 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
354.12 	or in writing that the conditions required to transfer the route have been satisfied.

354.13 	Sec. 132. LEGISLATIVE ROUTE NO. 323 REMOVED.
 354.14 	(a) Minnesota Statutes, section 161.115, subdivision 254, is repealed effective the day 
354.15 	after the commissioner of transportation receives a copy of the agreement between the 
354.16 	commissioner and the governing body of the city of Faribault to transfer jurisdiction of 
354.17 	Legislative Route No. 323 and after the commissioner notifies the revisor of statutes under 
354.18 	paragraph (b).
354.19 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
354.20 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
354.21 	or in writing that the conditions required to transfer the route have been satisfied.

354.22 	Sec. 133. DEPARTMENT OF TRANSPORTATION LOAN CONVERSION AND 
354.23 	LIEN RELEASE.
 354.24 	The commissioner of transportation must (1) convert to a grant the remaining balance 
354.25 	on Minnesota Department of Transportation Contract No. 1000714, originally executed as 
354.26 	of June 1, 2015, with Minnesota Commercial Railway Company; (2) cancel all future 
354.27 	payments under the contract; (3) release liens on the locomotives designated as MNNR 49 
354.28 	and MNNR 84; and (4) perform the appropriate filing. The commissioner is prohibited from 
354.29 	requiring or accepting additional payments under the contract as of the effective date of this 
354.30 	section. Notwithstanding the loan conversion and payment cancellation under this section, 
354.31 	all other terms and conditions under Contract No. 1000714 remain effective for the duration 
354.32 	of the period specified in the contract.

355.1 	EFFECTIVE DATE. This section is effective June 1, 2018.

355.2 	Sec. 134. NORTHSTAR CORRIDOR EXTENSION; NEGOTIATIONS.
 355.3 	The Department of Transportation must contact Burlington Northern Santa Fe Railway 
355.4 	(BNSF) to negotiate an extension of the Northstar Corridor between Big Lake and St. Cloud. 
355.5 	Negotiations under this section are subject to the following conditions:
355.6 	(1) the Northstar Corridor will add at least one morning round trip departure between 
355.7 	the St. Cloud Amtrak Depot and Big Lake Station with continuing service to Target Station 
355.8 	each weekday, plus one evening round trip between Big Lake Station and St. Cloud Amtrak 
355.9 	Depot that must begin at Target Station, with the departure and arrival times set so that 
355.10 	approximately ten or more hours elapse between the morning departure and evening return 
355.11 	each day for both round trips. The Department of Transportation may also negotiate weekend 
355.12 	departures and arrivals between St. Cloud and Target Station;
355.13 	(2) the Department of Transportation may negotiate for fewer round trip departures from 
355.14 	Big Lake to Target Station each weekday, and fewer round trip departures on weekends;
355.15 	(3) BNSF must continue to crew and dispatch all trains and provide other track-related 
355.16 	services;
355.17 	(4) the St. Cloud Metropolitan Transit Commission (MTC) must be responsible for fare 
355.18 	collection in St. Cloud and must negotiate with Amtrak for using the Amtrak station. The 
355.19 	MTC must negotiate an agreement with the Metropolitan Council, which is subject to 
355.20 	approval by the city of St. Cloud, regarding the sharing of revenues and expenses related 
355.21 	to the Amtrak Depot, fare collection, and advertising. The MTC, city of St. Cloud, and 
355.22 	Stearns, Benton, and Sherburne Counties are prohibited from entering into agreements with 
355.23 	the Metropolitan Council on any subject other than the operation of the Northstar Corridor;
355.24 	(5) the Department of Transportation is prohibited from committing to spend any state 
355.25 	funds on capital expenditures;
355.26 	(6) the Department of Transportation is prohibited from committing to spend any more 
355.27 	state funds on operating costs than the total sum it and the Metropolitan Council have 
355.28 	budgeted for the Northstar Corridor; and
355.29 	(7) the Department of Transportation may negotiate with the federal government, counties 
355.30 	and cities, or the Northstar Corridor Development Authority to provide additional funding 
355.31 	for services necessary to extend the Northstar Corridor.

356.1 	Sec. 135. NORTHSTAR COMMUTER RAIL OPERATING COSTS; EXCEPTION.
 356.2 	(a) Minnesota Statutes, section 398A.10, subdivision 2, does not apply for reserve funds 
356.3 	available to the Anoka County Regional Railroad Authority as of June 30, 2018, that are 
356.4 	used to pay operating and maintenance costs of Northstar Commuter Rail.
356.5 	(b) This section expires on January 1, 2021.

356.6 	Sec. 136. MARKED INTERSTATE HIGHWAY 35 SIGNS.
 356.7 	The commissioner of transportation must erect signs that identify and direct motorists 
356.8 	to the campuses of Minnesota State Academy for the Deaf and Minnesota State Academy 
356.9 	for the Blind under Minnesota Statutes, sections 125A.61 to 125A.73. At least one sign in 
356.10 	each direction of travel must be placed on marked Interstate Highway 35, located as near 
356.11 	as practical to exits that reasonably access the campuses. The commissioner is prohibited 
356.12 	from removing signs for the campuses posted on marked Trunk Highway 60.

356.13 	Sec. 137. MOTOR VEHICLE TITLE AND REGISTRATION ADVISORY 
356.14 	COMMITTEE; FIRST APPOINTMENTS; FIRST MEETING.
 356.15 		Subdivision 1.First appointments. Appointment authorities must make first 
356.16 	appointments to the Motor Vehicle Title and Registration Advisory Committee by September 
356.17 	15, 2018.
356.18 		Subd. 2.First meeting. The commissioner of public safety or a designee must convene 
356.19 	the first meeting of the advisory committee by November 1, 2018.

356.20 	Sec. 138. PUBLIC AWARENESS CAMPAIGN.
 356.21 	The commissioner of public safety must conduct a public awareness campaign to increase 
356.22 	public knowledge about Minnesota Statutes, section 169.18, subdivision 10.

356.23 	Sec. 139. RETROACTIVE DRIVER'S LICENSE REINSTATEMENT.
 356.24 	(a) The commissioner of public safety must make an individual's driver's license eligible 
356.25 	for reinstatement if the license is solely suspended pursuant to:
356.26 	(1) Minnesota Statutes 2016, section 171.16, subdivision 2, if the person was convicted 
356.27 	only under Minnesota Statutes, section 171.24, subdivision 1 or 2;
356.28 	(2) Minnesota Statutes 2016, section 171.16, subdivision 3; or
356.29 	(3) both clauses (1) and (2).
357.1 	(b) By May 1, 2019, the commissioner must provide written notice to an individual 
357.2 	whose license has been made eligible for reinstatement under paragraph (a), addressed to 
357.3 	the licensee at the licensee's last known address.
357.4 	(c) Before the license is reinstated, an individual whose driver's license is eligible for 
357.5 	reinstatement under paragraph (a) must pay the reinstatement fee under Minnesota Statutes, 
357.6 	section 171.20, subdivision 4.
357.7 	(d) The following applies for an individual who is eligible for reinstatement under 
357.8 	paragraph (a), clause (1), (2), or (3), and whose license was suspended, revoked, or canceled 
357.9 	under any other provision in Minnesota Statutes:
357.10 	(1) the suspension, revocation, or cancellation under any other provision in Minnesota 
357.11 	Statutes remains in effect;
357.12 	(2) subject to clause (1), the individual may become eligible for reinstatement under 
357.13 	paragraph (a), clause (1), (2), or (3); and
357.14 	(3) the commissioner is not required to send the notice described in paragraph (b).
357.15 	(e) Paragraph (a) applies notwithstanding Minnesota Statutes 2016, sections 169.92, 
357.16 	subdivision 4; 171.16, subdivision 2 or 3; or any other law to the contrary.

357.17 	EFFECTIVE DATE. This section is effective April 1, 2019.

357.18 	Sec. 140. COMMERCIAL DRIVER'S LICENSE FEDERAL REGULATION 
357.19 	WAIVER REQUEST.
 357.20 	For the sole purpose of authorizing a person to drive a bus with no passengers to deliver 
357.21 	the bus to the purchaser, the commissioner of public safety must apply to the Federal Motor 
357.22 	Carrier Safety Administration for a waiver from Code of Federal Regulations, title 49, 
357.23 	section 383.93, and any other federal rule or regulation that requires a person to have a 
357.24 	passenger endorsement.

357.25 	EFFECTIVE DATE. This section is effective June 1, 2018.

357.26 	Sec. 141. REVISOR INSTRUCTIONS.
 357.27 	(a) The revisor of statutes shall renumber Minnesota Statutes, section 160.02, subdivision 
357.28 	27a, as Minnesota Statutes, section 169.011, subdivision 73a. The revisor shall correct any 
357.29 	cross-references made necessary by this renumbering.
358.1 	(b) The revisor of statutes shall change the term "special revenue fund" to "driver and 
358.2 	vehicle services fund" wherever the term appears in Minnesota Statutes when referring to 
358.3 	the accounts under Minnesota Statutes, section 299A.705.

358.4 	Sec. 142.  REPEALER.
 358.5 	(a) Minnesota Statutes 2016, section 168.013, subdivision 21, is repealed.
358.6 	(b) Minnesota Statutes 2016, section 221.161, subdivisions 2, 3, and 4, are repealed.
358.7 	(c) Minnesota Statutes 2016, sections 360.063, subdivision 4; 360.065, subdivision 2; 
358.8 	and 360.066, subdivisions 1a and 1b, are repealed.

358.9 	EFFECTIVE DATE; APPLICATION. Paragraph (c) is effective August 1, 2018, and 
358.10 	applies to airport sponsors that make or plan to make changes to runway lengths or 
358.11 	configurations on or after that date. Airport safety zoning ordinances that were approved 
358.12 	by the commissioner and effective before August 1, 2018, remain valid until or unless the 
358.13 	airport sponsor (1) makes or plans to make changes to runway lengths or configurations, 
358.14 	or (2) is required to update airport safety zoning ordinances.

358.15 	ARTICLE 25
358.16 	AGRICULTURE APPROPRIATIONS

358.17 	Section 1. Laws 2007, chapter 45, article 1, section 4, is amended to read:

358.18	Sec. 4. BOARD OF ANIMAL HEALTH
 	$
	3,574,000
	$
	3,455,000
	
358.19 	$448,000 the first year and $363,000 the 
358.20 	second year are for bovine tuberculosis 
358.21 	eradication and surveillance in cattle herds. 
358.22 	Of this amount, $159,000 is permanent.
358.23 	$100,000 the first year is for reimbursements 
358.24 	under Minnesota Statutes, section 35.085. This 
358.25 	appropriation is available until spent June 30, 
358.26 	2021, at which time any remaining balance 
358.27 	shall be transferred to the agricultural 
358.28 	emergency account under Minnesota Statutes, 
358.29 	section 17.041.
358.30 	$200,000 the first year and $200,000 the 
358.31 	second year are for a program to control 
359.1 	paratuberculosis (Johne's disease) in domestic 
359.2 	bovine herds.
359.3 	$80,000 the first year and $80,000 the second 
359.4 	year are for a program to investigate the avian 
359.5 	pneumovirus disease and to identify the 
359.6 	infected flocks. This appropriation must be 
359.7 	matched on a dollar-for-dollar or in-kind basis 
359.8 	with nonstate sources and is in addition to 
359.9 	money currently designated for turkey disease 
359.10 	research. Costs of blood sample collection, 
359.11 	handling, and transportation, in addition to 
359.12 	costs associated with early diagnosis tests and 
359.13 	the expenses of vaccine research trials, may 
359.14 	be credited to the match.
359.15 	$400,000 the first year and $400,000 the 
359.16 	second year are for the purposes of cervidae 
359.17 	inspection as authorized in Minnesota Statutes, 
359.18 	section 35.155.

359.19 	Sec. 2. Laws 2017, chapter 88, article 1, section 2, subdivision 2, is amended to read:

359.20	Subd. 2.Protection Services
 		17,821,000
		17,825,000

359.21	Appropriations by Fund
	
359.22		2018
	2019
	
359.23	General
	17,428,000
	17,428,000
	
359.24	Remediation
	393,000
	397,000
	
359.25 	(a) $25,000 the first year and $25,000 the 
359.26 	second year are to develop and maintain 
359.27 	cottage food license exemption outreach and 
359.28 	training materials.
359.29 	(b) $75,000 the first year and $75,000 the 
359.30 	second year are to coordinate the correctional 
359.31 	facility vocational training program and to 
359.32 	assist entities that have explored the feasibility 
359.33 	of establishing a USDA-certified or state 
359.34 	"equal to" food processing facility within 30 
360.1 	miles of the Northeast Regional Corrections 
360.2 	Center.
360.3 	(c) $125,000 the first year and $125,000 the 
360.4 	second year are for additional funding for the 
360.5 	noxious weed and invasive plant program. 
360.6 	These are onetime appropriations.
360.7 	(d) $250,000 the first year and $250,000 the 
360.8 	second year are for transfer to the pollinator 
360.9 	habitat and research account in the agricultural 
360.10 	fund. These are onetime transfers.
360.11 	(e) $393,000 the first year and $397,000 the 
360.12 	second year are from the remediation fund for 
360.13 	administrative funding for the voluntary 
360.14 	cleanup program.
360.15 	(f) $200,000 the first year and $200,000 the 
360.16 	second year are for the industrial hemp pilot 
360.17 	program under Minnesota Statutes, section 
360.18 	18K.09. These are onetime appropriations.
360.19 	(g) $175,000 the first year and $175,000 the 
360.20 	second year are for compensation for 
360.21 	destroyed or crippled livestock under 
360.22 	Minnesota Statutes, section 3.737. This 
360.23 	appropriation may be spent to compensate for 
360.24 	livestock that were destroyed or crippled 
360.25 	during fiscal year 2017. If the amount in the 
360.26 	first year is insufficient, the amount in the 
360.27 	second year is available in the first year. The 
360.28 	commissioner may use up to $5,000 of this 
360.29 	appropriation the second year to reimburse 
360.30 	expenses incurred by university extension 
360.31 	agents to provide fair market values of 
360.32 	destroyed or crippled livestock.
360.33 	(h) $155,000 the first year and $155,000 the 
360.34 	second year are for compensation for crop 
361.1 	damage under Minnesota Statutes, section 
361.2 	3.7371. If the amount in the first year is 
361.3 	insufficient, the amount in the second year is 
361.4 	available in the first year. The commissioner 
361.5 	may use up to $30,000 of the appropriation 
361.6 	each year to reimburse expenses incurred by 
361.7 	the commissioner or the commissioner's 
361.8 	approved agent to investigate and resolve 
361.9 	claims.
361.10 	If the commissioner determines that claims 
361.11 	made under Minnesota Statutes, section 3.737
361.12 	or 3.7371, are unusually high, amounts 
361.13 	appropriated for either program may be 
361.14 	transferred to the appropriation for the other 
361.15 	program.
361.16 	(i) $250,000 the first year and $250,000 the 
361.17 	second year are to expand current capabilities 
361.18 	for rapid detection, identification, containment, 
361.19 	control, and management of high priority plant 
361.20 	pests and pathogens. These are onetime 
361.21 	appropriations.
361.22 	(j) $300,000 the first year and $300,000 the 
361.23 	second year are for transfer to the noxious 
361.24 	weed and invasive plant species assistance 
361.25 	account in the agricultural fund to award 
361.26 	grants to local units of government under 
361.27 	Minnesota Statutes, section 18.90, with 
361.28 	preference given to local units of government 
361.29 	responding to Palmer amaranth or other weeds 
361.30 	on the eradicate list. These are onetime 
361.31 	transfers.
361.32 	(k) $120,000 the first year and $120,000 the 
361.33 	second year are for wolf-livestock conflict 
361.34 	prevention grants under article 2, section 89. 
361.35 	The commissioner must submit a report to the 
362.1 	chairs and ranking minority members of the 
362.2 	legislative committees with jurisdiction over 
362.3 	agriculture policy and finance by January 15, 
362.4 	2020, on the outcomes of the wolf-livestock 
362.5 	conflict prevention grants and whether 
362.6 	livestock compensation claims were reduced 
362.7 	in the areas that grants were awarded. These 
362.8 	are onetime appropriations.

362.9 	Sec. 3. Laws 2017, chapter 88, article 1, section 2, subdivision 4, is amended to read:

362.10
362.11	Subd. 4.Agriculture, Bioenergy, and Bioproduct 
Advancement
 		22,581,000
		22,636,000
22,386,000
	
362.12 	(a) $9,300,000 the first year and $9,300,000 
362.13 	the second year are for transfer to the 
362.14 	agriculture research, education, extension, and 
362.15 	technology transfer account under Minnesota 
362.16 	Statutes, section 41A.14, subdivision 3. Of 
362.17 	these amounts: at least $600,000 the first year 
362.18 	and $600,000 the second year are for the 
362.19 	Minnesota Agricultural Experiment Station's 
362.20 	agriculture rapid response fund under 
362.21 	Minnesota Statutes, section 41A.14, 
362.22 	subdivision 1, clause (2); $2,000,000 the first 
362.23 	year and $2,000,000 the second year are for 
362.24 	grants to the Minnesota Agriculture Education 
362.25 	Leadership Council to enhance agricultural 
362.26 	education with priority given to Farm Business 
362.27 	Management challenge grants; $350,000 the 
362.28 	first year and $350,000 the second year are 
362.29 	for potato breeding; and $450,000 the first 
362.30 	year and $450,000 the second year are for the 
362.31 	cultivated wild rice breeding project at the 
362.32 	North Central Research and Outreach Center 
362.33 	to include a tenure track/research associate 
362.34 	plant breeder. The commissioner shall transfer 
362.35 	the remaining funds in this appropriation each 
363.1 	year to the Board of Regents of the University 
363.2 	of Minnesota for purposes of Minnesota 
363.3 	Statutes, section 41A.14. Of the amount 
363.4 	transferred to the Board of Regents, up to 
363.5 	$1,000,000 each year is for research on avian 
363.6 	influenza, including prevention measures that 
363.7 	can be taken.
363.8 	To the extent practicable, funds expended 
363.9 	under Minnesota Statutes, section 41A.14, 
363.10 	subdivision 1, clauses (1) and (2), must 
363.11 	supplement and not supplant existing sources 
363.12 	and levels of funding. The commissioner may 
363.13 	use up to one percent of this appropriation for 
363.14 	costs incurred to administer the program.
363.15 	(b) $13,256,000 the first year and $13,311,000
363.16 	$13,061,000 the second year are for the 
363.17 	agricultural growth, research, and innovation 
363.18 	program in Minnesota Statutes, section 
363.19 	41A.12. Except as provided below, the 
363.20 	commissioner may allocate the appropriation 
363.21 	each year among the following areas: 
363.22 	facilitating the start-up, modernization, or 
363.23 	expansion of livestock operations including 
363.24 	beginning and transitioning livestock 
363.25 	operations; developing new markets for 
363.26 	Minnesota farmers by providing more fruits, 
363.27 	vegetables, meat, grain, and dairy for 
363.28 	Minnesota school children; assisting 
363.29 	value-added agricultural businesses to begin 
363.30 	or expand, access new markets, or diversify; 
363.31 	providing funding not to exceed $250,000 
363.32 	each year for urban youth agricultural 
363.33 	education or urban agriculture community 
363.34 	development; providing funding not to exceed 
363.35 	$250,000 each year for the good food access 
364.1 	program under Minnesota Statutes, section 
364.2 	17.1017; facilitating the start-up, 
364.3 	modernization, or expansion of other 
364.4 	beginning and transitioning farms including 
364.5 	by providing loans under Minnesota Statutes, 
364.6 	section 41B.056; sustainable agriculture 
364.7 	on-farm research and demonstration; 
364.8 	development or expansion of food hubs and 
364.9 	other alternative community-based food 
364.10 	distribution systems; enhancing renewable 
364.11 	energy infrastructure and use; crop research; 
364.12 	Farm Business Management tuition assistance; 
364.13 	good agricultural practices/good handling 
364.14 	practices certification assistance; establishing 
364.15 	and supporting farmer-led water management 
364.16 	councils; and implementing farmer-led water 
364.17 	quality improvement practices. For fiscal year 
364.18 	2019, the commissioner shall reduce by a total 
364.19 	of $250,000 the planned expenditures for 
364.20 	urban youth agricultural education, urban 
364.21 	agriculture community development, the good 
364.22 	food access program, and the farm-to-school 
364.23 	program. The commissioner may use up to 6.5 
364.24 	percent of this appropriation for costs incurred 
364.25 	to administer the program.
364.26 	Of the amount appropriated for the agricultural 
364.27 	growth, research, and innovation program in 
364.28 	Minnesota Statutes, section 41A.12:
364.29 	(1) $1,000,000 the first year and $1,000,000 
364.30 	the second year are for distribution in equal 
364.31 	amounts to each of the state's county fairs to 
364.32 	preserve and promote Minnesota agriculture; 
364.33 	and
364.34 	(2) $1,500,000 the first year and $1,500,000 
364.35 	the second year are for incentive payments 
365.1 	under Minnesota Statutes, sections 41A.16, 
365.2 	41A.17, and 41A.18. Notwithstanding 
365.3 	Minnesota Statutes, section 16A.28, the first 
365.4 	year appropriation is available until June 30, 
365.5 	2019, and the second year appropriation is 
365.6 	available until June 30, 2020. If this 
365.7 	appropriation exceeds the total amount for 
365.8 	which all producers are eligible in a fiscal 
365.9 	year, the balance of the appropriation is 
365.10 	available for the agricultural growth, research, 
365.11 	and innovation program.
365.12 	The commissioner may use funds appropriated 
365.13 	under this subdivision to award up to two 
365.14 	value-added agriculture grants per year of up 
365.15 	to $1,000,000 per grant for new or expanding 
365.16 	agricultural production or processing facilities 
365.17 	that provide significant economic impact to 
365.18 	the region. The commissioner may use funds 
365.19 	appropriated under this subdivision for 
365.20 	additional value-added agriculture grants for 
365.21 	awards between $1,000 and $200,000 per 
365.22 	grant.
365.23 	Appropriations in clauses (1) and (2) are 
365.24 	onetime. Any unencumbered balance does not 
365.25 	cancel at the end of the first year and is 
365.26 	available for the second year. Notwithstanding 
365.27 	Minnesota Statutes, section 16A.28, 
365.28 	appropriations encumbered under contract on 
365.29 	or before June 30, 2019, for agricultural 
365.30 	growth, research, and innovation grants are 
365.31 	available until June 30, 2021.
365.32 	The base budget for the agricultural growth, 
365.33 	research, and innovation program is 
365.34 	$14,275,000 $14,025,000 for fiscal years 2020 
365.35 	and 2021 and includes funding for incentive 
366.1 	payments under Minnesota Statutes, sections 
366.2 	41A.16, 41A.17, 41A.18, and 41A.20.
366.3 	The commissioner must develop additional 
366.4 	innovative production incentive programs to 
366.5 	be funded by the agricultural growth, research, 
366.6 	and innovation program.
366.7 	The commissioner must consult with the 
366.8 	commissioner of transportation, the 
366.9 	commissioner of administration, and local 
366.10 	units of government to identify parcels of 
366.11 	publicly owned land that are suitable for urban 
366.12 	agriculture.
366.13 	(c) $25,000 the first year and $25,000 the 
366.14 	second year are for grants to the Southern 
366.15 	Minnesota Initiative Foundation to promote 
366.16 	local foods through an annual event that raises 
366.17 	public awareness of local foods and connects 
366.18 	local food producers and processors with 
366.19 	potential buyers.

366.20 	Sec. 4. Laws 2017, chapter 88, article 1, section 2, subdivision 5, is amended to read:

366.22366.21
	Subd. 5.Administration and Financial Assistance
 		8,698,000
		8,691,000
8,938,000
	
366.23 	(a) $474,000 the first year and $474,000 the 
366.24 	second year are for payments to county and 
366.25 	district agricultural societies and associations 
366.26 	under Minnesota Statutes, section 38.02, 
366.27 	subdivision 1. Aid payments to county and 
366.28 	district agricultural societies and associations 
366.29 	shall be disbursed no later than July 15 of each 
366.30 	year. These payments are the amount of aid 
366.31 	from the state for an annual fair held in the 
366.32 	previous calendar year.
367.1 	(b) $1,000 the first year and $1,000 the second 
367.2 	year are for grants to the Minnesota State 
367.3 	Poultry Association.
367.4 	(c) $18,000 the first year and $18,000 the 
367.5 	second year are for grants to the Minnesota 
367.6 	Livestock Breeders Association.
367.7 	(d) $47,000 the first year and $47,000 the 
367.8 	second year are for the Northern Crops 
367.9 	Institute. These appropriations may be spent 
367.10 	to purchase equipment.
367.11 	(e) $220,000 the first year and $220,000
367.12 	$250,000 the second year are for farm 
367.13 	advocate services.
367.14 	(f) $17,000 the first year and $17,000 the 
367.15 	second year are for grants to the Minnesota 
367.16 	Horticultural Society.
367.17 	(g) $108,000 the first year and $108,000 the 
367.18 	second year are for annual grants to the 
367.19 	Minnesota Turf Seed Council for basic and 
367.20 	applied research on: (1) the improved 
367.21 	production of forage and turf seed related to 
367.22 	new and improved varieties; and (2) native 
367.23 	plants, including plant breeding, nutrient 
367.24 	management, pest management, disease 
367.25 	management, yield, and viability. The grant 
367.26 	recipient may subcontract with a qualified 
367.27 	third party for some or all of the basic or 
367.28 	applied research. Any unencumbered balance 
367.29 	does not cancel at the end of the first year and 
367.30 	is available for the second year. These are 
367.31 	onetime appropriations.
367.32 	(h) $113,000 the first year and $113,000
367.33 	$330,000 the second year are for transfer to 
367.34 	the Board of Trustees of the Minnesota State 
368.1 	Colleges and Universities for statewide mental 
368.2 	health counseling support to farm families and 
368.3 	business operators through the Minnesota State 
368.4 	Agricultural Centers of Excellence. South 
368.5 	Central College and Central Lakes College
368.6 	shall serve as the fiscal agentagents.
368.7 	(i) $550,000 the first year and $550,000 the 
368.8 	second year are for grants to Second Harvest 
368.9 	Heartland on behalf of Minnesota's six 
368.10 	Feeding America food banks for the purchase 
368.11 	of milk for distribution to Minnesota's food 
368.12 	shelves and other charitable organizations that 
368.13 	are eligible to receive food from the food 
368.14 	banks. Milk purchased under the grants must 
368.15 	be acquired from Minnesota milk processors 
368.16 	and based on low-cost bids. The milk must be 
368.17 	allocated to each Feeding America food bank 
368.18 	serving Minnesota according to the formula 
368.19 	used in the distribution of United States 
368.20 	Department of Agriculture commodities under 
368.21 	The Emergency Food Assistance Program 
368.22 	(TEFAP). Second Harvest Heartland must 
368.23 	submit quarterly reports to the commissioner 
368.24 	on forms prescribed by the commissioner. The 
368.25 	reports must include, but are not limited to, 
368.26 	information on the expenditure of funds, the 
368.27 	amount of milk purchased, and the 
368.28 	organizations to which the milk was 
368.29 	distributed. Second Harvest Heartland may 
368.30 	enter into contracts or agreements with food 
368.31 	banks for shared funding or reimbursement of 
368.32 	the direct purchase of milk. Each food bank 
368.33 	receiving money from this appropriation may 
368.34 	use up to two percent of the grant for 
368.35 	administrative expenses. Any unencumbered 
369.1 	balance does not cancel at the end of the first 
369.2 	year and is available for the second year.
369.3 	(j) $1,100,000 the first year and $1,100,000 
369.4 	the second year are for grants to Second 
369.5 	Harvest Heartland on behalf of the six Feeding 
369.6 	America food banks that serve Minnesota to 
369.7 	compensate agricultural producers and 
369.8 	processors for costs incurred to harvest and 
369.9 	package for transfer surplus fruits, vegetables, 
369.10 	and other agricultural commodities that would 
369.11 	otherwise go unharvested, be discarded, or 
369.12 	sold in a secondary market. Surplus 
369.13 	commodities must be distributed statewide to 
369.14 	food shelves and other charitable organizations 
369.15 	that are eligible to receive food from the food 
369.16 	banks. Surplus food acquired under this 
369.17 	appropriation must be from Minnesota 
369.18 	producers and processors. Second Harvest 
369.19 	Heartland must report in the form prescribed 
369.20 	by the commissioner. Second Harvest 
369.21 	Heartland may use up to 15 percent of each 
369.22 	grant for matching administrative and 
369.23 	transportation expenses. Any unencumbered 
369.24 	balance does not cancel at the end of the first 
369.25 	year and is available for the second year.
369.26 	(k) $150,000 the first year and $150,000 the 
369.27 	second year are for grants to the Center for 
369.28 	Rural Policy and Development.
369.29 	(l) $235,000 the first year and $235,000 the 
369.30 	second year are for grants to the Minnesota 
369.31 	Agricultural Education and Leadership 
369.32 	Council for programs of the council under 
369.33 	Minnesota Statutes, chapter 41D.
369.34 	(m) $600,000 the first year and $600,000 the 
369.35 	second year are for grants to the Board of 
370.1 	Regents of the University of Minnesota to 
370.2 	develop, in consultation with the 
370.3 	commissioner of agriculture and the Board of 
370.4 	Animal Health, a software tool or application 
370.5 	through the Veterinary Diagnostic Laboratory 
370.6 	that empowers veterinarians and producers to 
370.7 	understand the movement of unique pathogen 
370.8 	strains in livestock and poultry production 
370.9 	systems, monitor antibiotic resistance, and 
370.10 	implement effective biosecurity measures that 
370.11 	promote animal health and limit production 
370.12 	losses. These are onetime appropriations.
370.13 	(n) $150,000 the first year is for the tractor 
370.14 	rollover protection pilot program under 
370.15 	Minnesota Statutes, section 17.119. This is a 
370.16 	onetime appropriation and is available until 
370.17 	June 30, 2019.
370.18 	(o) $400,000 the first year is for a grant to the 
370.19 	Board of Trustees of the Minnesota State 
370.20 	Colleges and Universities to expand and 
370.21 	renovate the GROW-IT Center at Metropolitan 
370.22 	State University. This is a onetime 
370.23 	appropriation.
370.24 	By January 15, 2018, the commissioner shall 
370.25 	submit a report to the chairs and ranking 
370.26 	minority members of the legislative 
370.27 	committees with jurisdiction over agricultural 
370.28 	policy and finance with a list of inspections 
370.29 	the department conducts at more frequent 
370.30 	intervals than federal law requires, an 
370.31 	explanation of why the additional inspections 
370.32 	are necessary, and provide recommendations 
370.33 	for eliminating any unnecessary inspections.

371.1 	ARTICLE 26
371.2 	AGRICULTURE STATUTORY CHANGES

371.3 	Section 1. Minnesota Statutes 2016, section 18C.425, subdivision 6, is amended to read:
371.4 		Subd. 6.Payment of inspection fee. (a) The person who registers and distributes in the 
371.5 	state a specialty fertilizer, soil amendment, or plant amendment under section 18C.411 shall 
371.6 	pay the inspection fee to the commissioner.
371.7 	(b) The person licensed under section 18C.415 who distributes a fertilizer to a person 
371.8 	not required to be so licensed shall pay the inspection fee to the commissioner, except as 
371.9 	exempted under section 18C.421, subdivision 1, paragraph (b).
371.10 	(c) The person responsible for payment of the inspection fees for fertilizers, soil 
371.11 	amendments, or plant amendments sold and used in this state must pay an inspection fee of 
371.12 	39 cents per ton, and until June 30, 2019 2029, an additional 40 cents per ton, of fertilizer, 
371.13 	soil amendment, and plant amendment sold or distributed in this state, with a minimum of 
371.14 	$10 on all tonnage reports. Notwithstanding section 18C.131, the commissioner must deposit 
371.15 	all revenue from the additional 40 cents per ton fee in the agricultural fertilizer research and 
371.16 	education account in section 18C.80. Products sold or distributed to manufacturers or 
371.17 	exchanged between them are exempt from the inspection fee imposed by this subdivision 
371.18 	if the products are used exclusively for manufacturing purposes.
371.19 	(d) A registrant or licensee must retain invoices showing proof of fertilizer, plant 
371.20 	amendment, or soil amendment distribution amounts and inspection fees paid for a period 
371.21 	of three years.

371.22 	Sec. 2. Minnesota Statutes 2017 Supplement, section 18C.70, subdivision 5, is amended 
371.23 	to read:
371.24 		Subd. 5.Expiration. This section expires June 30, 2020 2030.

371.25 	Sec. 3. Minnesota Statutes 2017 Supplement, section 18C.71, subdivision 4, is amended 
371.26 	to read:
371.27 		Subd. 4.Expiration. This section expires June 30, 2020 2030.

371.28 	Sec. 4. Minnesota Statutes 2016, section 18C.80, subdivision 2, is amended to read:
371.29 		Subd. 2.Expiration. This section expires June 30, 2020 2030.

372.1 	Sec. 5. Minnesota Statutes 2016, section 21.89, subdivision 2, is amended to read:
372.2 		Subd. 2.Permits; issuance and revocation. The commissioner shall issue a permit to 
372.3 	the initial labeler of agricultural, vegetable, flower, and wildflower seeds which are sold 
372.4 	for use in Minnesota and which conform to and are labeled under sections 21.80 to 21.92. 
372.5 	The categories of permits are as follows:
372.6 	(1) for initial labelers who sell 50,000 pounds or less of agricultural seed each calendar 
372.7 	year, an annual permit issued for a fee established in section 21.891, subdivision 2, paragraph 
372.8 	(b);
372.9 	(2) for initial labelers who sell vegetable, flower, and wildflower seed packed for use 
372.10 	in home gardens or household plantings, and initial labelers who sell native grasses and 
372.11 	wildflower seed in commercial or agricultural quantities, an annual permit issued for a fee 
372.12 	established in section 21.891, subdivision 2, paragraph (c), based upon the gross sales from 
372.13 	the previous year; and
372.14 	(3) for initial labelers who sell more than 50,000 pounds of agricultural seed each calendar 
372.15 	year, a permanent permit issued for a fee established in section 21.891, subdivision 2, 
372.16 	paragraph (d).
372.17 	In addition, the person shall furnish to the commissioner an itemized statement of all 
372.18 	seeds sold in Minnesota for the periods established by the commissioner. This statement 
372.19 	shall be delivered, along with the payment of the fee, based upon the amount and type of 
372.20 	seed sold, to the commissioner no later than 30 days after the end of each reporting period. 
372.21 	Any person holding a permit shall show as part of the analysis labels or invoices on all 
372.22 	agricultural, vegetable, flower, wildflower, tree, or shrub seeds all information the 
372.23 	commissioner requires. The commissioner may revoke any permit in the event of failure to 
372.24 	comply with applicable laws and rules.

372.25 	Sec. 6. Minnesota Statutes 2016, section 28A.16, is amended to read:
372.26 	28A.16 PERSONS SELLING LIQUOR.
372.27 	(a) The provisions of the Minnesota consolidated food licensing law, sections 28A.01
372.28 	to 28A.16 and acts amendatory thereto, shall not apply to persons licensed to sell 3.2 percent 
372.29 	malt liquor "on-sale" as provided in section 340A.403, or to persons licensed to sell 
372.30 	intoxicating liquors "on-sale" or "off-sale" as provided in sections 340A.404 to 340A.407, 
372.31 	provided that these persons sell only ice manufactured and packaged by another, or bottled 
372.32 	or canned soft drinks and prepacked candy at retail.
373.1 	(b) When an exclusive liquor store is not exempt under paragraph (a), the commissioner 
373.2 	must exclude all gross sales of off-sale alcoholic beverages when determining the applicable 
373.3 	license fee under section 28A.08, subdivision 3. For purposes of this paragraph, "exclusive 
373.4 	liquor store" and "alcoholic beverage" have the meanings given in section 340A.101.

373.5 	Sec. 7. Minnesota Statutes 2016, section 41A.15, is amended by adding a subdivision to 
373.6 	read:
373.7 		Subd. 2e.Biomass. "Biomass" means any organic matter that is available on a renewable 
373.8 	or recurring basis, including agricultural crops and trees, wood and wood waste and residues, 
373.9 	plants including aquatic plants, grasses, residues, fibers, animal waste, and the organic 
373.10 	portion of solid wastes.

373.11 	Sec. 8. Minnesota Statutes 2016, section 41A.15, subdivision 10, is amended to read:
373.12 		Subd. 10.Renewable chemical. "Renewable chemical" means a chemical with biobased 
373.13 	content., polymer, monomer, plastic, or composite material that is entirely produced from 
373.14 	biomass.

373.15 	Sec. 9. Minnesota Statutes 2016, section 41A.16, subdivision 1, is amended to read:
373.16 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
373.17 	source from Minnesota at least 80 percent raw materials from Minnesota. of the biomass 
373.18 	used to produce an advanced biofuel, except that, if a facility is sited 50 miles or less from 
373.19 	the state border, raw materials biomass used to produce an advanced biofuel may be sourced 
373.20 	from outside of Minnesota, but only if at least 80 percent of the biomass is sourced from 
373.21 	within a 100-mile radius of the facility or from within Minnesota. Raw materials must be 
373.22 	from agricultural or forestry sources or from solid waste. The facility must be located in 
373.23 	Minnesota, must begin production at a specific location by June 30, 2025, and must not 
373.24 	begin operating above 23,750 MMbtu of quarterly advanced biofuel production before July 
373.25 	1, 2015. Eligible facilities include existing companies and facilities that are adding advanced 
373.26 	biofuel production capacity, or retrofitting existing capacity, as well as new companies and 
373.27 	facilities. Production of conventional corn ethanol and conventional biodiesel is not eligible. 
373.28 	Eligible advanced biofuel facilities must produce at least 23,750 1,500 MMbtu of advanced 
373.29 	biofuel quarterly.
373.30 	(b) No payments shall be made for advanced biofuel production that occurs after June 
373.31 	30, 2035, for those eligible biofuel producers under paragraph (a).
374.1 	(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility 
374.2 	for payments under this section to an advanced biofuel facility at a different location.
374.3 	(d) A producer that ceases production for any reason is ineligible to receive payments 
374.4 	under this section until the producer resumes production.
374.5 	(e) Renewable chemical production for which payment has been received under section 
374.6 	41A.17, and biomass thermal production for which payment has been received under section 
374.7 	41A.18, are not eligible for payment under this section.
374.8 	(f) Biobutanol is eligible under this section.

374.9 	Sec. 10. Minnesota Statutes 2016, section 41A.16, subdivision 2, is amended to read:
374.10 		Subd. 2.Payment amounts; limits. (a) The commissioner shall make payments to 
374.11 	eligible producers of advanced biofuel. The amount of the payment for each eligible 
374.12 	producer's annual production is $2.1053 per MMbtu for advanced biofuel production from 
374.13 	cellulosic biomass, and $1.053 per MMbtu for advanced biofuel production from sugar or,
374.14 	starch, oil, or animal fat at a specific location for ten years after the start of production.
374.15 	(b) Total payments under this section to an eligible biofuel producer in a fiscal year may 
374.16 	not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total payments 
374.17 	under this section to all eligible biofuel producers in a fiscal year may not exceed the amount 
374.18 	necessary for 17,100,000 MMbtu of biofuel production. The commissioner shall award 
374.19 	payments on a first-come, first-served basis within the limits of available funding.
374.20 	(c) For purposes of this section, an entity that holds a controlling interest in more than 
374.21 	one advanced biofuel facility is considered a single eligible producer.

374.22 	Sec. 11. Minnesota Statutes 2016, section 41A.17, subdivision 1, is amended to read:
374.23 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this program section
374.24 	must source from Minnesota at least 80 percent biobased content from Minnesota. of the 
374.25 	biomass used to produce a renewable chemical, except that, if a facility is sited 50 miles or 
374.26 	less from the state border, biobased content mustbiomass used to produce a renewable 
374.27 	chemical may be sourced from outside of Minnesota, but only if at least 80 percent of the 
374.28 	biomass is sourced from within a 100-mile radius of the facility or from within Minnesota. 
374.29 	Biobased content must be from agricultural or forestry sources or from solid waste. The 
374.30 	facility must be located in Minnesota, must begin production at a specific location by June 
374.31 	30, 2025, and must not begin production of 750,000 250,000 pounds of chemicals quarterly 
374.32 	before January 1, 2015. Eligible facilities include existing companies and facilities that are 
375.1 	adding production capacity, or retrofitting existing capacity, as well as new companies and 
375.2 	facilities. Eligible renewable chemical facilities must produce at least 750,000 250,000
375.3 	pounds of renewable chemicals quarterly. Renewable chemicals produced through processes 
375.4 	that are fully commercial before January 1, 2000, are not eligible.
375.5 	(b) No payments shall be made for renewable chemical production that occurs after June 
375.6 	30, 2035, for those eligible renewable chemical producers under paragraph (a).
375.7 	(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility 
375.8 	for payments under this section to a renewable chemical facility at a different location.
375.9 	(d) A producer that ceases production for any reason is ineligible to receive payments 
375.10 	under this section until the producer resumes production.
375.11 	(e) Advanced biofuel production for which payment has been received under section 
375.12 	41A.16, and biomass thermal production for which payment has been received under section 
375.13 	41A.18, are not eligible for payment under this section.

375.14 	Sec. 12. Minnesota Statutes 2016, section 41A.18, subdivision 1, is amended to read:
375.15 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
375.16 	source from Minnesota at least 80 percent raw materials from Minnesota. of the biomass 
375.17 	used for biomass thermal production, except that, if a facility is sited 50 miles or less from 
375.18 	the state border, raw materials shouldbiomass used for biomass thermal production may 
375.19 	be sourced from outside of Minnesota, but only if at least 80 percent of the biomass is 
375.20 	sourced from within a 100-mile radius of the facility, or from within Minnesota. Raw 
375.21 	materials Biomass must be from agricultural or forestry sources. The facility must be located 
375.22 	in Minnesota, must have begun production at a specific location by June 30, 2025, and must 
375.23 	not begin before July 1, 2015. Eligible facilities include existing companies and facilities 
375.24 	that are adding production capacity, or retrofitting existing capacity, as well as new 
375.25 	companies and facilities. Eligible biomass thermal production facilities must produce at 
375.26 	least 250 MMbtu of biomass thermal quarterly.
375.27 	(b) No payments shall be made for biomass thermal production that occurs after June 
375.28 	30, 2035, for those eligible biomass thermal producers under paragraph (a).
375.29 	(c) An eligible producer of biomass thermal production shall not transfer the producer's 
375.30 	eligibility for payments under this section to a biomass thermal production facility at a 
375.31 	different location.
375.32 	(d) A producer that ceases production for any reason is ineligible to receive payments 
375.33 	under this section until the producer resumes production.
376.1 	(e) Biofuel production for which payment has been received under section 41A.16, and 
376.2 	renewable chemical production for which payment has been received under section 41A.17, 
376.3 	are not eligible for payment under this section.

376.4 	Sec. 13. Minnesota Statutes 2016, section 41B.056, subdivision 2, is amended to read:
376.5 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
376.6 	(b) "Intermediary" means any lending institution or other organization of a for-profit or 
376.7 	nonprofit nature that is in good standing with the state of Minnesota that has the appropriate 
376.8 	business structure and trained personnel suitable to providing efficient disbursement of loan 
376.9 	funds and the servicing and collection of loans.
376.10 	(c) "Specialty crops" means crops produced in an aquaculture system and agricultural 
376.11 	crops, such as annuals, flowers, perennials, and other horticultural products, that are 
376.12 	intensively cultivated.
376.13 	(d) "Eligible livestock" means fish produced in an aquaculture system, beef cattle, dairy 
376.14 	cattle, swine, poultry, goats, mules, farmed Cervidae, Ratitae, bison, sheep, horses, and 
376.15 	llamas.

376.16 	ARTICLE 27
376.17 	HOUSING

376.18 	Section 1. Minnesota Statutes 2016, section 299D.085, is amended by adding a subdivision 
376.19 	to read:
376.20 		Subd. 3a.Trailer use. A vehicle or a combination of vehicles may tow a trailer during 
376.21 	the movement of an overdimensional load if:
376.22 	(1) the party involved is a building mover licensed by the commissioner of transportation 
376.23 	under section 221.81;
376.24 	(2) the building being moved is not a temporary structure;
376.25 	(3) the overdimensional load is a manufactured home, as defined under section 327.31; 
376.26 	or
376.27 	(4) the overdimensional load is a modular home, as defined under section 297A.668, 
376.28 	subdivision 8, paragraph (b).

377.1 	Sec. 2. Minnesota Statutes 2016, section 327.31, is amended by adding a subdivision to 
377.2 	read:
377.3 		Subd. 23.Modular home. "Modular home" means a building or structural unit of closed 
377.4 	construction that has been substantially manufactured or constructed, in whole or in part, 
377.5 	at an off-site location, with the final assembly occurring on site alone or with other units 
377.6 	and attached to a foundation designed to the State Building Code and occupied as a 
377.7 	single-family dwelling. Modular home construction must comply with applicable standards 
377.8 	adopted in Minnesota Rules, chapter 1360 or 1361.

377.9 	Sec. 3. [327.335] PLACEMENT OF MODULAR HOMES.
377.10 	A modular home may be placed in a manufactured home park as defined in section 
377.11 	327.14, subdivision 3. A modular home placed in a manufactured home park is a 
377.12 	manufactured home for purposes of chapters 327C and 504B and all rights, obligations, and 
377.13 	duties, under those chapters apply. A modular home may not be placed in a manufactured 
377.14 	home park without prior written approval of the park owner. Nothing in this section shall 
377.15 	be construed to inhibit the application of zoning, subdivision, architectural, or esthetic 
377.16 	requirements pursuant to chapters 394 and 462 that otherwise apply to manufactured homes 
377.17 	and manufactured home parks. A modular home placed in a manufactured home park under 
377.18 	this section shall be assessed and taxed as a manufactured home.

377.19 	Sec. 4. Minnesota Statutes 2016, section 327C.095, subdivision 4, is amended to read:
377.20 		Subd. 4.Public hearing; relocation compensation; neutral third party. Within 60 
377.21 	days after receiving notice of a closure statement, the governing body of the affected 
377.22 	municipality shall hold a public hearing to review the closure statement and any impact that 
377.23 	the park closing may have on the displaced residents and the park owner. At the time of, 
377.24 	and in the notice for, the public hearing, displaced residents must be informed that they may 
377.25 	be eligible for payments from the Minnesota manufactured home relocation trust fund under 
377.26 	section 462A.35 as compensation for reasonable relocation costs under subdivision 13, 
377.27 	paragraphs (a) and (e).
377.28 	The governing body of the municipality may also require that other parties, including 
377.29 	the municipality, but excluding the park owner or its purchaser, involved in the park closing 
377.30 	provide additional compensation to residents to mitigate the adverse financial impact of the 
377.31 	park closing upon the residents.
377.32 	At the public hearing, the municipality shall appoint a qualified neutral third party, to 
377.33 	be agreed upon by both the manufactured home park owner and manufactured home owners, 
378.1 	whose hourly cost must be reasonable and paid from the Minnesota manufactured home 
378.2 	relocation trust fund. The neutral third party shall act as a paymaster and arbitrator, with 
378.3 	decision-making authority to resolve any questions or disputes regarding any contributions 
378.4 	or disbursements to and from the Minnesota manufactured home relocation trust fund by 
378.5 	either the manufactured home park owner or the manufactured home owners. If the parties 
378.6 	cannot agree on a neutral third party, the municipality will make a determination determine 
378.7 	who shall act as the neutral third party.
378.8 	The qualified neutral third party shall be familiar with manufactured housing and the 
378.9 	requirements of this section. The neutral third party shall keep an overall receipts and cost 
378.10 	summary together with a detailed accounting, for each manufactured lot, of the payments 
378.11 	received by the manufactured home park owner, and expenses approved and payments 
378.12 	disbursed to the manufactured home owners, pursuant to subdivisions 12 and 13, as well 
378.13 	as a record of all services and hours it provided and at what hourly rate it charged to the 
378.14 	Minnesota manufactured home trust fund. This detailed accounting shall be provided to the 
378.15 	manufactured home park owner, the municipality, and the Minnesota Housing Finance 
378.16 	Agency to be included in its yearly October 15 report as required in subdivision 13, paragraph 
378.17 	(h), not later than 30 days after the expiration of the nine-month notice provided in the 
378.18 	closure statement.

378.19 	Sec. 5. Minnesota Statutes 2016, section 327C.095, subdivision 6, is amended to read:
378.20 		Subd. 6.Intent to convert use of park at time of purchase. Before the execution of 
378.21 	an agreement to purchase a manufactured home park, the purchaser must notify the park 
378.22 	owner, in writing, if the purchaser intends to close the manufactured home park or convert 
378.23 	it to another use within one year of the execution of the agreement. The park owner shall 
378.24 	provide a resident of each manufactured home with a 45-day written notice of the purchaser's 
378.25 	intent to close the park or convert it to another use. The notice must state that the park owner 
378.26 	will provide information on the cash price and the terms and conditions of the purchaser's 
378.27 	offer to residents requesting the information. The notice must be sent by first class mail to 
378.28 	a resident of each manufactured home in the park. The notice period begins on the postmark 
378.29 	date affixed to the notice and ends 45 days after it begins. During the notice period required 
378.30 	in this subdivision, the owners of at least 51 percent of the manufactured homes in the park 
378.31 	or a nonprofit organization which has the written permission of the owners of at least 51 
378.32 	percent of the manufactured homes in the park to represent them in the acquisition of the 
378.33 	park shall have the right to meet the cash price and execute an agreement to purchase the 
378.34 	park for the purposes of keeping the park as a manufactured housing community, provided 
378.35 	that the owners or nonprofit organization will covenant and warrant to the park owner in 
379.1 	the agreement that they will continue to operate the park for not less than six years from 
379.2 	the date of closing. The park owner must accept the offer if it meets the cash price and the 
379.3 	same terms and conditions set forth in the purchaser's offer except that the seller is not 
379.4 	obligated to provide owner financing. For purposes of this section, cash price means the 
379.5 	cash price offer or equivalent cash offer as defined in section 500.245, subdivision 1, 
379.6 	paragraph (d).

379.7 	Sec. 6. Minnesota Statutes 2016, section 327C.095, subdivision 12, is amended to read:
379.8 		Subd. 12.Payment to the Minnesota manufactured home relocation trust fund. (a) 
379.9 	If a manufactured home owner is required to move due to the conversion of all or a portion 
379.10 	of a manufactured home park to another use, the closure of a park, or cessation of use of 
379.11 	the land as a manufactured home park, the manufactured park owner shall, upon the change 
379.12 	in use, pay to the commissioner of management and budget for deposit in the Minnesota 
379.13 	manufactured home relocation trust fund under section 462A.35, the lesser amount of the 
379.14 	actual costs of moving or purchasing the manufactured home approved by the neutral third 
379.15 	party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph 
379.16 	(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each 
379.17 	multisection manufactured home, for which a manufactured home owner has made 
379.18 	application for payment of relocation costs under subdivision 13, paragraph (c). The 
379.19 	manufactured home park owner shall make payments required under this section to the 
379.20 	Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice 
379.21 	from the neutral third party.
379.22 	(b) A manufactured home park owner is not required to make the payment prescribed 
379.23 	under paragraph (a), nor is a manufactured home owner entitled to compensation under 
379.24 	subdivision 13, paragraph (a) or (e), if:
379.25 	(1) the manufactured home park owner relocates the manufactured home owner to 
379.26 	another space in the manufactured home park or to another manufactured home park at the 
379.27 	park owner's expense;
379.28 	(2) the manufactured home owner is vacating the premises and has informed the 
379.29 	manufactured home park owner or manager of this prior to the mailing date of the closure 
379.30 	statement under subdivision 1;
379.31 	(3) a manufactured home owner has abandoned the manufactured home, or the 
379.32 	manufactured home owner is not current on the monthly lot rental, personal property taxes;
380.1 	(4) the manufactured home owner has a pending eviction action for nonpayment of lot 
380.2 	rental amount under section 327C.09, which was filed against the manufactured home owner 
380.3 	prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery 
380.4 	has been ordered by the district court;
380.5 	(5) the conversion of all or a portion of a manufactured home park to another use, the 
380.6 	closure of a park, or cessation of use of the land as a manufactured home park is the result 
380.7 	of a taking or exercise of the power of eminent domain by a governmental entity or public 
380.8 	utility; or
380.9 	(6) the owner of the manufactured home is not a resident of the manufactured home 
380.10 	park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home 
380.11 	is a resident, but came to reside in the manufactured home park after the mailing date of 
380.12 	the closure statement under subdivision 1.
380.13 	(c) If the unencumbered fund balance in the manufactured home relocation trust fund 
380.14 	is less than $1,000,000 $3,000,000 as of June 30 of each year, the commissioner of 
380.15 	management and budget shall assess each manufactured home park owner by mail the total 
380.16 	amount of $15 for each licensed lot in their park, payable on or before September November
380.17 	15 of that year. The commissioner of management Failure to notify and budget shall deposit 
380.18 	any payments in the Minnesota timely assess the manufactured home relocation trust fund. 
380.19 	On or before July 15 of park owner by August 30 of any year shall waive the assessment 
380.20 	and payment obligations of the manufactured home park owner for that year. Together with 
380.21 	said assessment notice, each year, the commissioner of management and budget shall prepare 
380.22 	and distribute to park owners a letter explaining whether funds are being collected for that 
380.23 	year, information about the collection, an invoice for all licensed lots, and a sample form 
380.24 	for the park owners to collect information on which park residents have been accounted 
380.25 	for. If assessed under this paragraph, the park owner may recoup the cost of the $15 
380.26 	assessment as a lump sum or as a monthly fee of no more than $1.25 collected from park 
380.27 	residents together with monthly lot rent as provided in section 327C.03, subdivision 6. Park 
380.28 	owners may adjust payment for lots in their park that are vacant or otherwise not eligible 
380.29 	for contribution to the trust fund under section 327C.095, subdivision 12, paragraph (b), 
380.30 	and for park residents who have not paid the $15 assessment to the park owner by October 
380.31 	15, and deduct from the assessment accordingly. The commissioner of management and 
380.32 	budget shall deposit any payments in the Minnesota manufactured home relocation trust 
380.33 	fund.
380.34 	(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by 
380.35 	the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action 
381.1 	in a court of appropriate jurisdiction. The court may award a prevailing party reasonable 
381.2 	attorney fees, court costs, and disbursements.

381.3 	Sec. 7. Minnesota Statutes 2016, section 327C.095, subdivision 13, is amended to read:
381.4 		Subd. 13.Change in use, relocation expenses; payments by park owner. (a) If a 
381.5 	manufactured home owner is required to relocate due to the conversion of all or a portion 
381.6 	of a manufactured home park to another use, the closure of a manufactured home park, or 
381.7 	cessation of use of the land as a manufactured home park under subdivision 1, and the 
381.8 	manufactured home owner complies with the requirements of this section, the manufactured 
381.9 	home owner is entitled to payment from the Minnesota manufactured home relocation trust 
381.10 	fund equal to the manufactured home owner's actual relocation costs for relocating the 
381.11 	manufactured home to a new location within a 2550-mile radius of the park that is being 
381.12 	closed, up to a maximum of $7,000 for a single-section and $12,500 for a multisection 
381.13 	manufactured home. The actual relocation costs must include the reasonable cost of taking 
381.14 	down, moving, and setting up the manufactured home, including equipment rental, utility 
381.15 	connection and disconnection charges, minor repairs, modifications necessary for 
381.16 	transportation of the home, necessary moving permits and insurance, moving costs for any 
381.17 	appurtenances, which meet applicable local, state, and federal building and construction 
381.18 	codes.
381.19 	(b) A manufactured home owner is not entitled to compensation under paragraph (a) if 
381.20 	the manufactured home park owner is not required to make a payment to the Minnesota 
381.21 	manufactured home relocation trust fund under subdivision 12, paragraph (b).
381.22 	(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota 
381.23 	manufactured home relocation trust fund, the manufactured home owner shall submit to the 
381.24 	neutral third party and the Minnesota Housing Finance Agency, with a copy to the park 
381.25 	owner, an application for payment, which includes:
381.26 	(1) a copy of the closure statement under subdivision 1;
381.27 	(2) a copy of the contract with a moving or towing contractor, which includes the 
381.28 	relocation costs for relocating the manufactured home;
381.29 	(3) a statement with supporting materials of any additional relocation costs as outlined 
381.30 	in subdivision 1;
381.31 	(4) a statement certifying that none of the exceptions to receipt of compensation under 
381.32 	subdivision 12, paragraph (b), apply to the manufactured home owner;
382.1 	(5) a statement from the manufactured park owner that the lot rental is current and that 
382.2 	the annual $15 payments payment to the Minnesota manufactured home relocation trust 
382.3 	fund have has been paid when due; and
382.4 	(6) a statement from the county where the manufactured home is located certifying that 
382.5 	personal property taxes for the manufactured home are paid through the end of that year.
382.6 	(d) The neutral third party shall promptly process all payments for completed applications 
382.7 	within 14 days. If the neutral third party has acted reasonably and does not approve or deny 
382.8 	payment within 45 days after receipt of the information set forth in paragraph (c), the 
382.9 	payment is deemed approved. Upon approval and request by the neutral third party, the 
382.10 	Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 percent 
382.11 	of the contract price payable to the mover and towing contractor for relocating the 
382.12 	manufactured home in the amount of the actual relocation cost, plus a check to the home 
382.13 	owner for additional certified costs associated with third-party vendors, that were necessary 
382.14 	in relocating the manufactured home. The moving or towing contractor shall receive 50 
382.15 	percent upon execution of the contract and 50 percent upon completion of the relocation 
382.16 	and approval by the manufactured home owner. The moving or towing contractor may not 
382.17 	apply the funds to any other purpose other than relocation of the manufactured home as 
382.18 	provided in the contract. A copy of the approval must be forwarded by the neutral third 
382.19 	party to the park owner with an invoice for payment of the amount specified in subdivision 
382.20 	12, paragraph (a).
382.21 	(e) In lieu of collecting a relocation payment from the Minnesota manufactured home 
382.22 	relocation trust fund under paragraph (a), the manufactured home owner may collect an 
382.23 	amount from the fund after reasonable efforts to relocate the manufactured home have failed 
382.24 	due to the age or condition of the manufactured home, or because there are no manufactured 
382.25 	home parks willing or able to accept the manufactured home within a 25-mile radius. A 
382.26 	manufactured home owner may tender title of the manufactured home in the manufactured 
382.27 	home park to the manufactured home park owner, and collect an amount to be determined 
382.28 	by an independent appraisal. The appraiser must be agreed to by both the manufactured 
382.29 	home park owner and the manufactured home owner. If the appraised market value cannot 
382.30 	be determined, the tax market value, averaged over a period of five years, can be used as a 
382.31 	substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a 
382.32 	single-section and $14,500 for a multisection manufactured home. The minimum amount 
382.33 	that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a 
382.34 	multisection manufactured home. The manufactured home owner shall deliver to the 
382.35 	manufactured home park owner the current certificate of title to the manufactured home 
383.1 	duly endorsed by the owner of record, and valid releases of all liens shown on the certificate 
383.2 	of title, and a statement from the county where the manufactured home is located evidencing 
383.3 	that the personal property taxes have been paid. The manufactured home owner's application 
383.4 	for funds under this paragraph must include a document certifying that the manufactured 
383.5 	home cannot be relocated, that the lot rental is current, that the annual $15 payments to the 
383.6 	Minnesota manufactured home relocation trust fund have been paid when due, that the 
383.7 	manufactured home owner has chosen to tender title under this section, and that the park 
383.8 	owner agrees to make a payment to the commissioner of management and budget in the 
383.9 	amount established in subdivision 12, paragraph (a), less any documented costs submitted 
383.10 	to the neutral third party, required for demolition and removal of the home, and any debris 
383.11 	or refuse left on the lot, not to exceed $1,000. The manufactured home owner must also 
383.12 	provide a copy of the certificate of title endorsed by the owner of record, and certify to the 
383.13 	neutral third party, with a copy to the park owner, that none of the exceptions to receipt of 
383.14 	compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the 
383.15 	manufactured home owner, and that the home owner will vacate the home within 60 days 
383.16 	after receipt of payment or the date of park closure, whichever is earlier, provided that the 
383.17 	monthly lot rent is kept current.
383.18 	(f) The Minnesota Housing Finance Agency must make a determination of the amount 
383.19 	of payment a manufactured home owner would have been entitled to under a local ordinance 
383.20 	in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured home owner's 
383.21 	compensation for relocation costs from the fund under section 462A.35, is the greater of 
383.22 	the amount provided under this subdivision, or the amount under the local ordinance in 
383.23 	effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this 
383.24 	paragraph is intended to increase the liability of the park owner.
383.25 	(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be 
383.26 	liable to any person for recovery if the funds in the Minnesota manufactured home relocation 
383.27 	trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance 
383.28 	Agency shall keep a record of the time and date of its approval of payment to a claimant.
383.29 	(h)(1) By October 15, 2018, the Minnesota Housing Finance Agency shall post on its 
383.30 	Web site and report to the chairs of the senate Finance Committee and house of 
383.31 	representatives Ways and Means Committee on the Minnesota manufactured home relocation 
383.32 	trust fund, including the account balance, payments to claimants, the amount of any advances 
383.33 	to the fund, the amount of any insufficiencies encountered during the previous calendar 
383.34 	year, and any itemized administrative charges or expenses deducted from the trust fund 
383.35 	balance. If sufficient funds become available, the Minnesota Housing Finance Agency shall 
384.1 	pay the manufactured home owner whose unpaid claim is the earliest by time and date of 
384.2 	approval.
384.3 	(h) (2) Beginning in 2019, the Minnesota Housing Finance Agency shall post on its Web 
384.4 	site and report to the chairs of the senate Finance Committee and house of representatives 
384.5 	Ways and Means Committee by January October 15 of each year on the Minnesota 
384.6 	manufactured home relocation trust fund, including the aggregate account balance, the 
384.7 	aggregate assessment payments received, summary information regarding each closed park 
384.8 	including the total payments to claimants and payments received from each closed park, 
384.9 	the amount of any advances to the fund, the amount of any insufficiencies encountered 
384.10 	during the previous calendar fiscal year, reports of neutral third parties provided pursuant 
384.11 	to subdivision 4, and any itemized administrative charges or expenses deducted from the 
384.12 	trust fund balance, all of which should be reconciled to the previous year's trust fund balance. 
384.13 	If sufficient funds become available, the Minnesota Housing Finance Agency shall pay the 
384.14 	manufactured home owner whose unpaid claim is the earliest by time and date of approval.

384.15 	Sec. 8. Minnesota Statutes 2016, section 327C.095, is amended by adding a subdivision 
384.16 	to read:
384.17 		Subd. 16.Reporting of licensed manufactured home parks. The Department of Health 
384.18 	or, if applicable, local units of government that have entered into a delegation of authority 
384.19 	agreement with the Department of Health as provided in section 145A.07 shall provide, by 
384.20 	March 31 of each year, a list of names and addresses of the manufactured home parks 
384.21 	licensed in the previous year, and for each manufactured home park, the current licensed 
384.22 	owner, the owner's address, the number of licensed manufactured home lots, and other data 
384.23 	as they may request for the Department of Management and Budget to invoice each licensed 
384.24 	manufactured home park in the state of Minnesota.

384.25 	Sec. 9. Minnesota Statutes 2017 Supplement, section 462A.2035, subdivision 1, is amended 
384.26 	to read:
384.27 		Subdivision 1.Establishment. The agency shall establish a manufactured home park 
384.28 	redevelopment program for the purpose of making manufactured home park redevelopment 
384.29 	grants or loans to cities, counties, community action programs, nonprofit organizations, and 
384.30 	cooperatives created under chapter 308A or 308B for the purposes specified in this section.

385.1 	Sec. 10. Minnesota Statutes 2017 Supplement, section 462A.2035, subdivision 1b, is 
385.2 	amended to read:
385.3 		Subd. 1b.Manufactured home park infrastructure grants. Eligible recipients may 
385.4 	use manufactured home park infrastructure grants under this program for:
385.5 	(1) acquisition of and improvements in manufactured home parks; and
385.6 	(2) infrastructure, including storm shelters and community facilities.

385.7 	Sec. 11. Minnesota Statutes 2016, section 462A.33, subdivision 1, is amended to read:
385.8 		Subdivision 1.Created. The economic development and housing challenge program is 
385.9 	created to be administered by the agency.
385.10 	(a) The program shall provide grants or loans for the purpose of construction, acquisition, 
385.11 	rehabilitation, demolition or removal of existing structures, construction financing, permanent 
385.12 	financing, interest rate reduction, refinancing, and gap financing of housing or manufactured 
385.13 	home parks, as defined in section 327C.01, to support economic development and 
385.14 	redevelopment activities or job creation or job preservation within a community or region 
385.15 	by meeting locally identified housing needs.
385.16 	Gap financing is either:
385.17 	(1) the difference between the costs of the property, including acquisition, demolition, 
385.18 	rehabilitation, and construction, and the market value of the property upon sale; or
385.19 	(2) the difference between the cost of the property and the amount the targeted household 
385.20 	can afford for housing, based on industry standards and practices.
385.21 	(b) Preference for grants and loans shall be given to comparable proposals that include 
385.22 	regulatory changes or waivers that result in identifiable cost avoidance or cost reductions, 
385.23 	such as increased density, flexibility in site development standards, or zoning code 
385.24 	requirements. Preference must also be given among comparable proposals to proposals for 
385.25 	projects that are accessible to transportation systems, jobs, schools, and other services.
385.26 	(c) If a grant or loan is used for demolition or removal of existing structures, the cleared 
385.27 	land must be used for the construction of housing to be owned or rented by persons who 
385.28 	meet the income limits of this section or for other housing-related purposes that primarily 
385.29 	benefit the persons residing in the adjacent housing. In making selections for grants or loans 
385.30 	for projects that demolish affordable housing units, the agency must review the potential 
385.31 	displacement of residents and consider the extent to which displacement of residents is 
385.32 	minimized.

386.1 	Sec. 12. Minnesota Statutes 2016, section 462A.33, subdivision 2, is amended to read:
386.2 		Subd. 2.Eligible recipients. Challenge grants or loans may be made to a city, a federally 
386.3 	recognized American Indian tribe or subdivision located in Minnesota, a tribal housing 
386.4 	corporation, a private developer, a nonprofit organization, or the owner of the housing or 
386.5 	the manufactured home park, including individuals. For the purpose of this section, "city" 
386.6 	has the meaning given it in section 462A.03, subdivision 21. To the extent practicable, 
386.7 	grants and loans shall be made so that an approximately equal number of housing units are 
386.8 	financed in the metropolitan area and in the nonmetropolitan area.

386.9 	Sec. 13. Minnesota Statutes 2016, section 462A.37, subdivision 1, is amended to read:
386.10 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
386.11 	the meanings given.
386.12 	(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
386.13 	(c) "Community land trust" means an entity that meets the requirements of section 
386.14 	462A.31, subdivisions 1 and 2.
386.15 	(d) "Debt service" means the amount payable in any fiscal year of principal, premium, 
386.16 	if any, and interest on housing infrastructure bonds and the fees, charges, and expenses 
386.17 	related to the bonds.
386.18 	(e) "Foreclosed property" means residential property where foreclosure proceedings 
386.19 	have been initiated or have been completed and title transferred or where title is transferred 
386.20 	in lieu of foreclosure.
386.21 	(f) "Housing infrastructure bonds" means bonds issued by the agency under this chapter 
386.22 	that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the Internal 
386.23 	Revenue Code, finance qualified residential rental projects within the meaning of Section 
386.24 	142(d) of the Internal Revenue Code, or are tax-exempt bonds that are not private activity 
386.25 	bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the purpose 
386.26 	of financing or refinancing affordable housing authorized under this chapter.
386.27 	(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
386.28 	(h) "Senior" means a person 55 years of age or older with an annual income not greater 
386.29 	than 50 percent of:
386.30 	(1) the metropolitan area median income for persons in the metropolitan area; or
386.31 	(2) the statewide median income for persons outside the metropolitan area.
387.1 	(i) "Senior housing" means housing intended and operated for occupancy by at least one 
387.2 	senior per unit with at least 80 percent of the units occupied by at least one senior per unit, 
387.3 	and for which there is publication of, and adherence to, policies and procedures that 
387.4 	demonstrate an intent by the owner or manager to provide housing for seniors. Senior 
387.5 	housing may be developed in conjunction with and as a distinct portion of mixed-income 
387.6 	senior housing developments that use a variety of public or private financing sources.
387.7 	(h) (j) "Supportive housing" means housing that is not time-limited and provides or 
387.8 	coordinates with linkages to services necessary for residents to maintain housing stability 
387.9 	and maximize opportunities for education and employment.

387.10 	Sec. 14. Minnesota Statutes 2016, section 462A.37, subdivision 2, is amended to read:
387.11 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
387.12 	principal amount of housing infrastructure bonds in one or more series to which the payment 
387.13 	made under this section may be pledged. The housing infrastructure bonds authorized in 
387.14 	this subdivision may be issued to fund loans or grants for the purposes of clause (4), on 
387.15 	terms and conditions the agency deems appropriate, made for one or more of the following 
387.16 	purposes:
387.17 	(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive 
387.18 	housing for individuals and families who are without a permanent residence;
387.19 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
387.20 	housing to be used for affordable rental housing and the costs of new construction of rental 
387.21 	housing on abandoned or foreclosed property where the existing structures will be demolished 
387.22 	or removed;
387.23 	(3) to finance that portion of the costs of acquisition of property that is attributable to 
387.24 	the land to be leased by community land trusts to low- and moderate-income homebuyers; 
387.25 	and
387.26 	(4) to finance that portion of the acquisition, improvement, and infrastructure of 
387.27 	manufactured home parks under section 462A.2035, subdivision 1b, that is attributable to 
387.28 	land to be leased to low- and moderate-income manufactured home owners;
387.29 	(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
387.30 	of senior housing; and
387.31 	(6) to finance the costs of acquisition and rehabilitation of federally assisted rental 
387.32 	housing and for the refinancing of costs of the construction, acquisition, and rehabilitation 
387.33 	of federally assisted rental housing, including providing funds to refund, in whole or in part, 
388.1 	outstanding bonds previously issued by the agency or another government unit to finance 
388.2 	or refinance such costs.
388.3 	(b) Among comparable proposals for permanent supportive housing, preference shall 
388.4 	be given to permanent supportive housing for veterans and other individuals or families 
388.5 	who:
388.6 	(1) either have been without a permanent residence for at least 12 months or at least four 
388.7 	times in the last three years; or
388.8 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
388.9 	times in the last three years.
388.10 	(c) Among comparable proposals for senior housing, the agency must give priority to 
388.11 	requests for projects that:
388.12 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
388.13 	seniors;
388.14 	(2) leverage other sources of funding to finance the project, including the use of 
388.15 	low-income housing tax credits;
388.16 	(3) provide access to services to residents and demonstrate the ability to increase physical 
388.17 	supports and support services as residents age and experience increasing levels of disability;
388.18 	(4) provide a service plan containing the elements of clause (3) reviewed by the housing 
388.19 	authority, economic development authority, public housing authority, or community 
388.20 	development agency that has an area of operation for the jurisdiction in which the project 
388.21 	is located; and
388.22 	(5) include households with incomes that do not exceed 30 percent of the median 
388.23 	household income for the metropolitan area.
388.24 	To the extent practicable, the agency shall balance the loans made between projects in the 
388.25 	metropolitan area and projects outside the metropolitan area. Of the loans made to projects 
388.26 	outside the metropolitan area, the agency shall, to the extent practicable, balance the loans 
388.27 	made between projects in counties or cities with a population of 20,000 or less, as established 
388.28 	by the most recent decennial census, and projects in counties or cities with populations in 
388.29 	excess of 20,000.

389.1 	Sec. 15. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
389.2 	to read:
389.3 		Subd. 1a.Aggregate bond limitation. "Aggregate bond limitation" means up to 55 
389.4 	percent of the reasonably expected aggregate basis of a residential rental project and the 
389.5 	land on which the project is or will be located.

389.6 	Sec. 16. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
389.7 	to read:
389.8 		Subd. 1b.AMI. "AMI" means the area median income for the applicable county or 
389.9 	metropolitan area as published by the Department of Housing and Urban Development, as 
389.10 	adjusted for household size.

389.11 	Sec. 17. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
389.12 	to read:
389.13 		Subd. 12a.LIHTC. "LIHTC" means low-income housing tax credits under section 42 
389.14 	of the Internal Revenue Code of 1986, as amended.

389.15 	Sec. 18. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
389.16 	to read:
389.17 		Subd. 21a.Preservation project. "Preservation project" means any residential rental 
389.18 	project, regardless of whether or not such project is restricted to persons of a certain age or 
389.19 	older, that is expected to generate low-income housing tax credits under section 42 of the 
389.20 	Internal Revenue Code of 1986, as amended, and (1) receives federal project-based rental 
389.21 	assistance, or (2) is funded through a loan from or guaranteed by the United States 
389.22 	Department of Agriculture's Rural Development Program. In addition, to qualify as a 
389.23 	preservation project, the amount of bonds requested in the application must not exceed the 
389.24 	aggregate bond limitation.

389.25 	Sec. 19. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
389.26 	to read:
389.27 		Subd. 30.30 percent AMI residential rental project. "30 percent AMI residential 
389.28 	rental project" means a residential rental project that does not otherwise qualify as a 
389.29 	preservation project, is expected to generate low-income housing tax credits under section 
389.30 	42 of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential 
389.31 	units, and in which:
390.1 	(1) all the residential units of the project:
390.2 	(i) are reserved for tenants whose income, on average, is 30 percent of AMI or less;
390.3 	(ii) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code 
390.4 	of 1986, as amended; and
390.5 	(iii) are subject to rent and income restrictions for a period of not less than 30 years; or
390.6 	(2)(i) is located outside of the metropolitan area as defined in section 473.121, subdivision 
390.7 	2, and within a county or metropolitan area that has a current median area gross income 
390.8 	that is less than the statewide area median income for Minnesota;
390.9 	(ii) all of the units of the project are rent-restricted in accordance with section 42(g)(2) 
390.10 	of the Internal Revenue Code of 1986, as amended; and
390.11 	(iii) all of the units of the project are subject to the applicable rent and income restrictions 
390.12 	for a period of not less than 30 years.
390.13 	In addition, to qualify as a 30 percent AMI residential project, the amount of bonds 
390.14 	requested in the application must not exceed the aggregate bond limitation.

390.15 	Sec. 20. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
390.16 	to read:
390.17 		Subd. 31.50 percent AMI residential rental project. "50 percent AMI residential 
390.18 	rental project," means a residential rental project that does not qualify as a preservation 
390.19 	project or 30 percent AMI residential rental project, is expected to generate low-income 
390.20 	housing tax credits under section 42 of the Internal Revenue Code of 1986, as amended, 
390.21 	from 100 percent of its residential units, and in which all the residential units of the project:
390.22 	(1) are reserved for tenants whose income, on average, is 50 percent of AMI or less;
390.23 	(2) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code 
390.24 	of 1986, as amended; and
390.25 	(3) are subject to rent and income restrictions for a period of not less than 30 years.
390.26 	In addition, to qualify as a 50 percent AMI residential rental project, the amount of bonds 
390.27 	requested in the application must not exceed the aggregate bond limitation.

391.1 	Sec. 21. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
391.2 	to read:
391.3 		Subd. 32.100 percent LIHTC project. "100 percent LIHTC project" means a residential 
391.4 	rental project that is expected to generate low-income housing tax credits under section 42 
391.5 	of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential units 
391.6 	and does not otherwise qualify as a preservation project, 30 percent AMI residential rental 
391.7 	project, or 50 percent AMI residential rental project. In addition, to qualify as a 100 percent 
391.8 	LIHTC project, the amount of bonds requested in the application must not exceed the 
391.9 	aggregate bond limitation.

391.10 	Sec. 22. Minnesota Statutes 2016, section 474A.02, is amended by adding a subdivision 
391.11 	to read:
391.12 		Subd. 33.20 percent LIHTC project. "20 percent LIHTC project" means a residential 
391.13 	rental project that is expected to generate low-income housing tax credits under section 42 
391.14 	of the Internal Revenue Code of 1986, as amended, from at least 20 percent of its residential 
391.15 	units and does not otherwise qualify as a preservation project, 30 percent AMI residential 
391.16 	rental project, 50 percent AMI residential rental project, or 100 percent LIHTC project. In 
391.17 	addition, to qualify as a 20 percent LIHTC project, the amount of bonds requested in the 
391.18 	application must not exceed the aggregate bond limitation.

391.19 	Sec. 23. Minnesota Statutes 2016, section 474A.03, subdivision 1, is amended to read:
391.20 		Subdivision 1.Under federal tax law; allocations. At the beginning of each calendar 
391.21 	year after December 31, 2001, the commissioner shall determine the aggregate dollar amount 
391.22 	of the annual volume cap under federal tax law for the calendar year, and of this amount 
391.23 	the commissioner shall make the following allocation:
391.24 	(1) $74,530,000 to the small issue pool;
391.25 	(2) $122,060,000 to the housing pool in calendar years 2019 and 2020, and starting in 
391.26 	calendar year 2021, $122,060,000 to the housing pool, of which 31 percent of the adjusted 
391.27 	allocation is reserved until the last Monday in July June for single-family housing programs;
391.28 	(3) $12,750,000 to the public facilities pool; and
391.29 	(4) amounts to be allocated as provided in subdivision 2a.
391.30 	If the annual volume cap is greater or less than the amount of bonding authority allocated 
391.31 	under clauses (1) to (4) and subdivision 2a, paragraph (a), clauses (1) to (4), the allocation 
392.1 	must be adjusted so that each adjusted allocation is the same percentage of the annual volume 
392.2 	cap as each original allocation is of the total bonding authority originally allocated.

392.3 	Sec. 24. Minnesota Statutes 2016, section 474A.04, subdivision 1a, is amended to read:
392.4 		Subd. 1a.Entitlement reservations. Any amount returned by an entitlement issuer 
392.5 	before July June 15 shall be reallocated through the housing pool. Any amount returned on 
392.6 	or after July 15 1 shall be reallocated through the unified pool. An amount returned after 
392.7 	the last Monday in November shall be reallocated to the Minnesota Housing Finance Agency.

392.8 	Sec. 25. Minnesota Statutes 2016, section 474A.047, subdivision 1, is amended to read:
392.9 		Subdivision 1.Eligibility. (a) An issuer may only use the proceeds from residential 
392.10 	rental bonds if the proposed project meets the following requirements:
392.11 	(1) the proposed residential rental project meets the requirements of section 142(d) of 
392.12 	the Internal Revenue Code regarding the incomes of the occupants of the housing; and
392.13 	(2) the maximum rent for at least 20 percent of the units in the proposed residential rental 
392.14 	project do not exceed the area fair market rent or exception fair market rents for existing 
392.15 	housing, if applicable, as established by the federal Department of Housing and Urban 
392.16 	Development. The rental rates of units in a residential rental project for which project-based 
392.17 	federal assistance payments are made are deemed to be within the rent limitations of this 
392.18 	clause.
392.19 	(b) The proceeds from residential rental bonds may be used for a project for which 
392.20 	project-based federal rental assistance payments are made only if: the owner of the project 
392.21 	enters into a binding agreement with the issuer under which the owner is obligated to extend 
392.22 	any existing low-income affordability restrictions and any contract or agreement for rental 
392.23 	assistance payments for the maximum term permitted, including any renewals thereof.
392.24 	(1) the owner of the project enters into a binding agreement with the Minnesota Housing 
392.25 	Finance Agency under which the owner is obligated to extend any existing low-income 
392.26 	affordability restrictions and any contract or agreement for rental assistance payments for 
392.27 	the maximum term permitted, including any renewals thereof; and
392.28 	(2) the Minnesota Housing Finance Agency certifies that project reserves will be 
392.29 	maintained at closing of the bond issue and budgeted in future years at the lesser of:
392.30 	(i) the level described in Minnesota Rules, part 4900.0010, subpart 7, item A, subitem 
392.31 	(2), effective May 1, 1997; or
393.1 	(ii) the level of project reserves available prior to the bond issue, provided that additional 
393.2 	money is available to accomplish repairs and replacements needed at the time of bond issue.

393.3 	Sec. 26. Minnesota Statutes 2016, section 474A.047, subdivision 2, is amended to read:
393.4 		Subd. 2.15-year agreement. Prior to the issuance of residential rental bonds, the 
393.5 	developer of the project for which the bond proceeds will be used must enter into a 15-year 
393.6 	agreement with the issuer that specifies the maximum rental rates of the rent-restricted units 
393.7 	in the project and the income levels of the residents of the project occupying income-restricted 
393.8 	units.and in which the developer will agree to maintain the project as a preservation project, 
393.9 	30 percent AMI residential rental project, 50 percent AMI residential rental project, 100 
393.10 	percent LIHTC project, or 20 percent LIHTC project, as applicable and as described in its 
393.11 	application. Such rental rates and income levels must be within the limitations established 
393.12 	under subdivision 1. The developer must annually certify to the issuer over the term of the 
393.13 	agreement that the rental rates for the rent-restricted units are within the limitations under 
393.14 	subdivision 1. The issuer may request individual certification of the income of residents of 
393.15 	the income-restricted units. The commissioner may request from the issuer a copy of the 
393.16 	annual certification prepared by the developer. The commissioner may require the issuer 
393.17 	to request individual certification of all residents of the income-restricted units.

393.18 	Sec. 27. Minnesota Statutes 2016, section 474A.061, is amended to read:
393.19 	474A.061 MANUFACTURING, HOUSING, AND PUBLIC FACILITIES POOLS.
393.20 		Subdivision 1.Allocation application; small issue pool and public facilities pool. (a) 
393.21 	For any requested allocations from the small issue pool and the public facilities pool, an 
393.22 	issuer may apply for an allocation under this section by submitting to the department an 
393.23 	application on forms provided by the department, accompanied by (1) a preliminary 
393.24 	resolution, (2) a statement of bond counsel that the proposed issue of obligations requires 
393.25 	an allocation under this chapter and the Internal Revenue Code, (3) the type of qualified 
393.26 	bonds to be issued, (4) an application deposit in the amount of one percent of the requested 
393.27 	allocation before the last Monday in July June, or in the amount of two percent of the 
393.28 	requested allocation on or after the last Monday in July, June, and (5) a public purpose 
393.29 	scoring worksheet for manufacturing project and enterprise zone facility project applications, 
393.30 	and (6) for residential rental projects, a statement from the applicant or bond counsel as to 
393.31 	whether the project preserves existing federally subsidized housing for residential rental 
393.32 	project applications and whether the project is restricted to persons who are 55 years of age 
393.33 	or older. The issuer must pay the application deposit by a check madepayable to the 
394.1 	Department of Management and Budget. The Minnesota Housing Finance Agency, the 
394.2 	Minnesota Rural Finance Authority, and the Minnesota Office of Higher Education may 
394.3 	apply for and receive an allocation under this section without submitting an application 
394.4 	deposit.
394.5 	(b) An entitlement issuer may not apply for an allocation from the public facilities pool
394.6 	under this subdivision unless it has either permanently issued bonds equal to the amount of 
394.7 	its entitlement allocation for the current year plus any amount of bonding authority carried 
394.8 	forward from previous years or returned for reallocation all of its unused entitlement 
394.9 	allocation. An entitlement issuer may not apply for an allocation from the housing pool 
394.10 	unless it either has permanently issued bonds equal to any amount of bonding authority 
394.11 	carried forward from a previous year or has returned for reallocation any unused bonding 
394.12 	authority carried forward from a previous year. For purposes of this subdivision, its 
394.13 	entitlement allocation includes an amount obtained under section 474A.04, subdivision 6. 
394.14 	This paragraph does not apply to an application from the Minnesota Housing Finance Agency 
394.15 	for an allocation under subdivision 2a for cities who choose to have the agency issue bonds 
394.16 	on their behalf.
394.17 	(c) If an application is rejected under this section, the commissioner must notify the 
394.18 	applicant and return the application deposit to the applicant within 30 days unless the 
394.19 	applicant requests in writing that the application be resubmitted. The granting of an allocation 
394.20 	of bonding authority under this section must be evidenced by a certificate of allocation.
394.21 		Subd. 1a.Allocation application; housing pool. (a) For any requested allocations from 
394.22 	the housing pool, an issuer may apply for an allocation under this section by submitting to 
394.23 	the department an application on forms provided by the department, accompanied by (1) a 
394.24 	preliminary resolution, (2) a statement of bond counsel that the proposed issue of obligations 
394.25 	requires an allocation under this chapter and the Internal Revenue Code, (3) an application 
394.26 	deposit in the amount of two percent of the requested allocation, (4) a sworn statement from 
394.27 	the applicant identifying the project as either a preservation project, 30 percent AMI 
394.28 	residential rental project, 50 percent AMI residential rental project, 100 percent LIHTC 
394.29 	project, 20 percent LIHTC project, or any other residential rental project, and (5) a 
394.30 	certification from the applicant or its accountant stating whether the requested allocation 
394.31 	exceeds the aggregate bond limitation. The issuer must pay the application deposit to the 
394.32 	Department of Management and Budget. The Minnesota Housing Finance Agency may 
394.33 	apply for and receive an allocation under this section without submitting an application 
394.34 	deposit.
395.1 	(b) An entitlement issuer may not apply for an allocation from the housing pool unless 
395.2 	it either has permanently issued bonds equal to any amount of bonding authority carried 
395.3 	forward from a previous year or has returned for reallocation any unused bonding authority 
395.4 	carried forward from a previous year. For purposes of this subdivision, its entitlement 
395.5 	allocation includes an amount obtained under section 474A.04, subdivision 6. This paragraph 
395.6 	does not apply to an application from the Minnesota Housing Finance Agency for an 
395.7 	allocation under subdivision 2a for cities who choose to have the agency issue bonds on the 
395.8 	city's behalf.
395.9 	(c) If an application is rejected under this section, the commissioner must notify the 
395.10 	applicant and return the application deposit to the applicant within 30 days unless the 
395.11 	applicant requests in writing that the application be resubmitted. The granting of an allocation 
395.12 	of bonding authority under this section must be evidenced by a certificate of allocation.
395.13 		Subd. 2a.Housing pool allocation. (a) Commencing on the second Tuesday in January 
395.14 	and continuing on each Monday through July June 15, the commissioner shall allocate 
395.15 	available bonding authority from the housing pool to applications received on or before the 
395.16 	Monday of the preceding week for residential rental projects that meet the eligibility criteria 
395.17 	under section 474A.047. Allocations of available bonding authority from the housing pool 
395.18 	for eligible residential rental projects shall be awarded in the following order of priority: 
395.19 	(1) projects that preserve existing federally subsidized housing; (2) projects that are not 
395.20 	restricted to persons who are 55 years of age or older; and (3) other residential rental projects. 
395.21 	Prior to May 15, no allocation shall be made to a project restricted to persons who are 55 
395.22 	years of age or older.
395.23 	(1) preservation projects;
395.24 	(2) 30 percent AMI residential rental projects;
395.25 	(3) 50 percent AMI residential rental projects;
395.26 	(4) 100 percent LIHTC projects;
395.27 	(5) 20 percent LIHTC projects;
395.28 	(6) single-family housing programs after June 1 in calendar years 2019 and 2020, and 
395.29 	after January 1 starting in calendar year 2021; and
395.30 	(7) other residential rental projects for which the amount of bonds requested in their 
395.31 	respective applications do not exceed the aggregate bond limitation.
395.32 	If there are two or more applications for residential rental projects at the same priority level 
395.33 	and there is insufficient bonding authority to provide allocations for all such projects in any 
396.1 	one allocation period, available bonding authority shall be randomly awarded by lot. If a 
396.2 	residential rental project is selected by lot, but the remaining bonding authority is insufficient 
396.3 	to provide the full amount of the requested allocation, the project shall be allocated the 
396.4 	remaining available housing pool bonding authority and if the project applies for an allocation 
396.5 	of bonds again in the same calendar year or to the next successive housing pool, the project 
396.6 	shall be awarded the lesser of the available bonding authority or the remainder of its full 
396.7 	allocation request before any new project applying in the same allocation period with an 
396.8 	equal or lower priority shall receive bonding authority. The project shall continue to receive 
396.9 	priority over other projects applying with an equal or lower priority during the time period 
396.10 	specified in this paragraph until the project has been awarded its full allocation amount.
396.11 	If an issuer that receives an allocation under this paragraph does not issue obligations equal 
396.12 	to all or a portion of the allocation receivedsubdivisionwithin 120 days of the allocation 
396.13 	or returns the allocation to the commissioner, the amount of the allocation is canceled and 
396.14 	returned for reallocation through the housing pool or to the unified pool after JulyJune 15 
396.15 	but only if the return occurs in the same calendar year as the original allocation.
396.16 	If an issuer that receives an allocation under this subdivision does not issue obligations 
396.17 	equal to all or a portion of the allocation by the last business day in December, the issuer 
396.18 	may elect to carry forward its allocation by submitting notice to the commissioner by the 
396.19 	last business day in December, including a resolution of intent to carry forward from its 
396.20 	local governing body, and paying an additional application deposit equal to one percent of 
396.21 	the allocation amount.
396.22 	(b) After January 1, and through January 15, The Minnesota Housing Finance Agency 
396.23 	may accept applications, according to the schedule in paragraph (c), from cities for 
396.24 	single-family housing programs which meet program requirements as follows:
396.25 	(1) the housing program must meet a locally identified housing need and be economically 
396.26 	viable;
396.27 	(2) the adjusted income of home buyers may not exceed 80 percent of the greater of 
396.28 	statewide or area median income as published by the Department of Housing and Urban 
396.29 	Development, adjusted for household size;
396.30 	(3) house price limits may not exceed the federal price limits established for mortgage 
396.31 	revenue bond programs. Data on the home purchase price amount, mortgage amount, income, 
396.32 	household size, and race of the households served in the previous year's single-family 
396.33 	housing program, if any, must be included in each application; and
397.1 	(4) for applicants who choose to have the agency issue bonds on their behalf, an 
397.2 	application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal 
397.3 	to one percent of the requested allocation must be submitted to the Minnesota Housing 
397.4 	Finance Agency before the agency forwards the list specifying the amounts allocated to the 
397.5 	commissioner under paragraph (d) (e). The agency shall submit the city's application fee 
397.6 	and application deposit to the commissioner when requesting an allocation from the housing 
397.7 	pool.
397.8 	Applications by a consortium shall include the name of each member of the consortium 
397.9 	and the amount of allocation requested by each member.
397.10 	(c) The Minnesota Housing Finance Agency may accept applications under paragraph 
397.11 	(b) after June 1 in calendar years 2019 and 2020, and after January 1 and through January 
397.12 	15 starting in calendar year 2021.
397.13 	(c) Any amounts remaining in the housing pool after July 15 are available for 
397.14 	single-family housing programs for cities that applied in January and received an allocation 
397.15 	under this section in the same calendar year. (d) For a city that chooses to issue bonds on 
397.16 	its own behalf or pursuant to a joint powers agreement, the agency must allot available 
397.17 	bonding authority based on the formula in paragraphs (d) (e) and (f) (g). Allocations will 
397.18 	be made loan by loan, on a first-come, first-served basis among cities on whose behalf the 
397.19 	Minnesota Housing Finance Agency issues bonds.
397.20 	Any city that received an allocation pursuant to paragraph (f) (g) in the same calendar 
397.21 	year that wishes to issue bonds on its own behalf or pursuant to a joint powers agreement 
397.22 	for an amount becoming available for single-family housing programs after July 15 June 1
397.23 	shall notify the Minnesota Housing Finance Agency by July 15 June 1. The Minnesota 
397.24 	Housing Finance Agency shall notify each city making a request of the amount of its 
397.25 	allocation within three business days after July 15 June 1. The city must comply with 
397.26 	paragraph (f) (g).
397.27 	For purposes of paragraphs (a) to (h) this subdivision, "city" means a county or a 
397.28 	consortium of local government units that agree through a joint powers agreement to apply 
397.29 	together for single-family housing programs, and has the meaning given it in section 462C.02, 
397.30 	subdivision 6. "Agency" means the Minnesota Housing Finance Agency.
397.31 	(d) (e) The total amount of allocation for mortgage bonds for one city is limited to the 
397.32 	lesser of: (i) the amount requested, or (ii) the product of the total amount available for 
397.33 	mortgage bonds from the housing pool, multiplied by the ratio of each applicant's population 
397.34 	as determined by the most recent estimate of the city's population released by the state 
398.1 	demographer's office to the total of all the applicants' population, except that each applicant 
398.2 	shall be allocated a minimum of $100,000 regardless of the amount requested or the amount 
398.3 	determined under the formula in clause (ii). If a city applying for an allocation is located 
398.4 	within a county that has also applied for an allocation, the city's population will be deducted 
398.5 	from the county's population in calculating the amount of allocations under this paragraph.
398.6 	Upon determining the amount of each applicant's allocation, the agency shall forward 
398.7 	to the commissioner a list specifying the amounts allotted to each application with all 
398.8 	application fees and deposits from applicants who choose to have the agency issue bonds 
398.9 	on their behalf.
398.10 	Total allocations from the housing pool for single-family housing programs may not 
398.11 	exceed 31 percent of the adjusted allocation to the housing pool until after July 15.
398.12 	(e) (f) The agency may issue bonds on behalf of participating cities. The agency shall 
398.13 	request an allocation from the commissioner for all applicants who choose to have the 
398.14 	agency issue bonds on their behalf and the commissioner shall allocate the requested amount 
398.15 	to the agency. The agency may request an allocation at any time after June 1 in calendar 
398.16 	years 2019 and 2020, and after the second Tuesday in January and through the last Monday 
398.17 	in July June starting in calendar year 2021. After awarding an allocation and receiving a 
398.18 	notice of issuance for the mortgage bonds issued on behalf of the participating cities, the 
398.19 	commissioner shall transfer the application deposits to the Minnesota Housing Finance 
398.20 	Agency to be returned to the participating cities. The Minnesota Housing Finance Agency 
398.21 	shall return any application deposit to a city that paid an application deposit under paragraph 
398.22 	(b), clause (4), but was not part of the list forwarded to the commissioner under paragraph 
398.23 	(d) (e).
398.24 	(f) (g) A city may choose to issue bonds on its own behalf or through a joint powers 
398.25 	agreement and may request an allocation from the commissioner by forwarding an application 
398.26 	with an application fee pursuant to section 474A.03, subdivision 4, and a one percent 
398.27 	application deposit to the commissioner no later than the Monday of the week preceding 
398.28 	an allocation. If the total amount requested by all applicants exceeds the amount available 
398.29 	in the pool, the city may not receive a greater allocation than the amount it would have 
398.30 	received under the list forwarded by the Minnesota Housing Finance Agency to the 
398.31 	commissioner. No city may request or receive an allocation from the commissioner until 
398.32 	the list under paragraph (d) (e) has been forwarded to the commissioner. A city must request 
398.33 	an allocation from the commissioner no later than the last Monday in July June. No city 
398.34 	may receive an allocation from the housing pool for mortgage bonds which has not first 
399.1 	applied to the Minnesota Housing Finance Agency. The commissioner shall allocate the 
399.2 	requested amount to the city or cities subject to the limitations under this paragraph.
399.3 	If a city issues mortgage bonds from an allocation received under this paragraph, the 
399.4 	issuer must provide for the recycling of funds into new loans. If the issuer is not able to 
399.5 	provide for recycling, the issuer must notify the commissioner in writing of the reason that 
399.6 	recycling was not possible and the reason the issuer elected not to have the Minnesota 
399.7 	Housing Finance Agency issue the bonds. "Recycling" means the use of money generated 
399.8 	from the repayment and prepayment of loans for further eligible loans or for the redemption 
399.9 	of bonds and the issuance of current refunding bonds.
399.10 	(g) (h) No entitlement city or county or city in an entitlement county may apply for or 
399.11 	be allocated authority to issue mortgage bonds or use mortgage credit certificates from the 
399.12 	housing pool. No city in an entitlement county may apply for or be allocated authority to 
399.13 	issue residential rental bonds from the housing pool or the unified pool.
399.14 	(h) (i) A city that does not use at least 50 percent of its allotment by the date applications 
399.15 	are due for the first allocation that is made from the housing pool for single-family housing 
399.16 	programs in the immediately succeeding calendar year may not apply to the housing pool 
399.17 	for a single-family mortgage bond or mortgage credit certificate program allocation that 
399.18 	exceeds the amount of its allotment for the preceding year that was used by the city in the 
399.19 	immediately preceding year or receive an allotment from the housing pool in the succeeding 
399.20 	calendar year that exceeds the amount of its allotment for the preceding year that was used 
399.21 	in the preceding year. The minimum allotment is $100,000 for an allocation made prior to 
399.22 	July 15 1, regardless of the amount used in the preceding calendar year, except that a city 
399.23 	whose allocation in the preceding year was the minimum amount of $100,000 and who did 
399.24 	not use at least 50 percent of its allocation from the preceding year is ineligible for an 
399.25 	allocation in the immediate succeeding calendar year. Each local government unit in a 
399.26 	consortium must meet the requirements of this paragraph.
399.27 		Subd. 2b.Small issue pool allocation. Commencing on the second Tuesday in January 
399.28 	and continuing on each Monday through the last Monday in July June, the commissioner 
399.29 	shall allocate available bonding authority from the small issue pool to applications received 
399.30 	on or before the Monday of the preceding week for manufacturing projects and enterprise 
399.31 	zone facility projects. From the second Tuesday in January through the last Monday in July
399.32 	June, the commissioner shall reserve $5,000,000 of the available bonding authority from 
399.33 	the small issue pool for applications for agricultural development bond loan projects of the 
399.34 	Minnesota Rural Finance Authority.
400.1 	Beginning in calendar year 2002, on the second Tuesday in January through the last 
400.2 	Monday in July June, the commissioner shall reserve $10,000,000 of available bonding 
400.3 	authority in the small issue pool for applications for student loan bonds of or on behalf of 
400.4 	the Minnesota Office of Higher Education. The total amount of allocations for student loan 
400.5 	bonds from the small issue pool may not exceed $10,000,000 per year.
400.6 	The commissioner shall reserve $10,000,000 until the day after the last Monday in 
400.7 	February, $10,000,000 until the day after the last Monday in April, and $10,000,000 until 
400.8 	the day after the last Monday in June in the small issue pool for enterprise zone facility 
400.9 	projects and manufacturing projects. The amount of allocation provided to an issuer for a 
400.10 	specific enterprise zone facility project or manufacturing project will be based on the number 
400.11 	of points received for the proposed project under the scoring system under section 474A.045.
400.12 	If there are two or more applications for manufacturing and enterprise zone facility 
400.13 	projects from the small issue pool and there is insufficient bonding authority to provide 
400.14 	allocations for all projects in any one week, the available bonding authority shall be awarded 
400.15 	based on the number of points awarded a project under section 474A.045, with those projects 
400.16 	receiving the greatest number of points receiving allocation first. If two or more applications 
400.17 	receive an equal number of points, available bonding authority shall be awarded by lot 
400.18 	unless otherwise agreed to by the respective issuers.
400.19 		Subd. 2c.Public facilities pool allocation. From the beginning of the calendar year and 
400.20 	continuing for a period of 120 days, the commissioner shall reserve $5,000,000 of the 
400.21 	available bonding authority from the public facilities pool for applications for public facilities 
400.22 	projects to be financed by the Western Lake Superior Sanitary District. Commencing on 
400.23 	the second Tuesday in January and continuing on each Monday through the last Monday 
400.24 	in July June, the commissioner shall allocate available bonding authority from the public 
400.25 	facilities pool to applications for eligible public facilities projects received on or before the 
400.26 	Monday of the preceding week. If there are two or more applications for public facilities 
400.27 	projects from the pool and there is insufficient available bonding authority to provide 
400.28 	allocations for all projects in any one week, the available bonding authority shall be awarded 
400.29 	by lot unless otherwise agreed to by the respective issuers.
400.30 		Subd. 4.Return of allocation; deposit refund for small issue pool or public facilities 
400.31 	pool. (a) For any requested allocation from the small issue pool or the public facilities pool, 
400.32 	if an issuer that receives an allocation under this section determines that it will not issue 
400.33 	obligations equal to all or a portion of the allocation received under this section within 120 
400.34 	days of allocation or within the time period permitted by federal tax law, whichever is less, 
400.35 	the issuer must notify the department. If the issuer notifies the department or the 120-day 
401.1 	period since allocation has expired prior to the last Monday in July June, the amount of 
401.2 	allocation is canceled and returned for reallocation through the pool from which it was 
401.3 	originally allocated. If the issuer notifies the department or the 120-day period since allocation 
401.4 	has expired on or after the last Monday in July June, the amount of allocation is canceled 
401.5 	and returned for reallocation through the unified pool. If the issuer notifies the department 
401.6 	after the last Monday in November, the amount of allocation is canceled and returned for 
401.7 	reallocation to the Minnesota Housing Finance Agency. To encourage a competitive 
401.8 	application process, the commissioner shall reserve, for new applications, the amount of 
401.9 	allocation that is canceled and returned for reallocation under this section for a minimum 
401.10 	of seven calendar days.
401.11 	(b) An issuer that returns for reallocation all or a portion of an allocation received under 
401.12 	this section subdivision within 120 days of allocation shall receive within 30 days a refund 
401.13 	equal to:
401.14 	(1) one-half of the application deposit for the amount of bonding authority returned 
401.15 	within 30 days of receiving allocation;
401.16 	(2) one-fourth of the application deposit for the amount of bonding authority returned 
401.17 	between 31 and 60 days of receiving allocation; and
401.18 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
401.19 	between 61 and 120 days of receiving allocation.
401.20 	(c) No refund shall be available for allocations returned 120 or more days after receiving 
401.21 	the allocation or beyond the last Monday in November.
401.22 		Subd. 4a.Return of allocation; deposit refund for housing pool. (a) For any requested 
401.23 	allocations from the housing pool, if an issuer that receives an allocation under this section 
401.24 	determines that it will not (1) issue obligations equal to all or a portion of the allocation 
401.25 	received under this section within the time period permitted by this section or (2) carry 
401.26 	forward its allocation under section 474A.061, subdivision 2a, the issuer must notify the 
401.27 	department as soon as possible, but no later than the last business day in December. If the 
401.28 	issuer notifies the department prior to the last Monday in June, the amount of allocation is 
401.29 	canceled and returned for reallocation through the housing pool. If the issuer notifies the 
401.30 	department on or after the last Monday in June, but during the same calendar year as the 
401.31 	original allocation, the amount of the allocation is canceled and returned for reallocation 
401.32 	through the unified pool. If the issuer notifies the department after the last Monday in 
401.33 	November, the amount of allocation is canceled and returned for reallocation to the Minnesota 
401.34 	Housing Finance Agency. To encourage a competitive application process, the commissioner 
402.1 	shall reserve, for new applications, the amount of allocation that is canceled and returned 
402.2 	for reallocation under this section for a minimum of seven calendar days.
402.3 	(b) An issuer that returns for reallocation all or a portion of an allocation received under 
402.4 	this subdivision by the last Monday in November shall receive within 30 days a refund 
402.5 	equal to:
402.6 	(1) one-half of the application deposit for the amount of bonding authority returned 
402.7 	within 45 days of receiving allocation;
402.8 	(2) one-fourth of the allocation deposit for the amount of bonding authority returned 
402.9 	between 46 and 90 days of receiving allocation; and
402.10 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
402.11 	between 91 and 180 days of receiving allocation.
402.12 	(c) No refund shall be available for allocations returned 180 or more days after receiving 
402.13 	the allocation or beyond the last Monday in November.

402.14 	Sec. 28. Minnesota Statutes 2016, section 474A.062, is amended to read:
402.15 	474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY ISSUANCE 
402.16 	EXEMPTION.
402.17 	The Minnesota Office of Higher Education is exempt from the 120-day issuance 
402.18 	requirements any time limitation on issuance of bonds set forth in this chapter and may 
402.19 	carry forward allocations for student loan bonds, subject to carryforward notice requirements 
402.20 	of section 474A.131, subdivision 2.

402.21 	Sec. 29. Minnesota Statutes 2016, section 474A.091, is amended to read:
402.22 	474A.091 ALLOCATION OF UNIFIED POOL.
402.23 		Subdivision 1.Unified pool amount. On the day after the last Monday in July June any 
402.24 	bonding authority remaining unallocated from the small issue pool, the housing pool, and 
402.25 	the public facilities pool is transferred to the unified pool and must be reallocated as provided 
402.26 	in this section.
402.27 		Subd. 2.Application for residential rental projects. (a) Issuers may apply for an 
402.28 	allocation for residential rental bonds under this section by submitting to the department an 
402.29 	application on forms provided by the department accompanied by:
402.30 	(1) a preliminary resolution,;
403.1 	(2) a statement of bond counsel that the proposed issue of obligations requires an 
403.2 	allocation under this chapter and the Internal Revenue Code,;
403.3 	(3) the type of qualified bonds to be issued, (4) an application deposit in the amount of 
403.4 	two percent of the requested allocation;,(5) a public purpose scoring worksheet for 
403.5 	manufacturing and enterprise zone applications, and (6) for residential rental projects, a 
403.6 	statement from the applicant or bond counsel as to whether the project preserves existing 
403.7 	federally subsidized housing and whether the project is restricted to persons who are 55 
403.8 	years of age or older.
403.9 	(4) a sworn statement from the applicant identifying the project as either a preservation 
403.10 	project, 30 percent AMI residential rental project, 50 percent AMI residential rental project, 
403.11 	100 percent LIHTC project, 20 percent LIHTC project, or any other residential rental project; 
403.12 	and
403.13 	(5) a certification from the applicant or its accountant stating whether the requested 
403.14 	allocation exceeds the aggregate bond limitation. Applications for projects requesting bonds 
403.15 	in excess of the aggregate bond limitation may not apply or be allocated bonding authority 
403.16 	until after September 1 each year.
403.17 	The issuer must pay the application deposit by checkto the Department of Management 
403.18 	and Budget. An entitlement issuer may not apply for an allocation for public facility bonds,
403.19 	residential rental project bonds, or mortgage bonds under this section unless it has either 
403.20 	permanently issued bonds equal to the amount of its entitlement allocation for the current 
403.21 	year plus any amount carried forward from previous years or returned for reallocation all 
403.22 	of its unused entitlement allocation. For purposes of this subdivision, its entitlement allocation 
403.23 	includes an amount obtained under section 474A.04, subdivision 6.
403.24 	(b) If an issuer that receives an allocation under this subdivision returns the allocation 
403.25 	to the commissioner, the amount of the allocation is canceled and returned for reallocation 
403.26 	through the unified pool only if the return occurs prior to the last Monday in November and 
403.27 	within the same calendar year as the original allocation. If an issuer that receives an allocation 
403.28 	under this subdivision does not issue obligations equal to all or a portion of the allocation 
403.29 	by the last business day in December, the issuer may elect to carry forward its allocation 
403.30 	by submitting notice to the commissioner by the last business day in December, including 
403.31 	a resolution of intent to carry forward from its local governing body, and paying an additional 
403.32 	application deposit equal to one percent of the allocation amount.
403.33 	(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
403.34 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
404.1 	under this section prior to the first Monday in October, but may be awarded allocations for 
404.2 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
404.3 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
404.4 	Rural Finance Authority may apply for and receive an allocation under this section without 
404.5 	submitting an application deposit.
404.6 		Subd. 2a.Application for all other types of qualified bonds. Issuers may apply for an 
404.7 	allocation for all types of qualified bonds other than residential rental bonds under this 
404.8 	section by submitting to the department an application on forms provided by the department 
404.9 	accompanied by (1) a preliminary resolution, (2) a statement of bond counsel that the 
404.10 	proposed issue of obligations requires an allocation under this chapter and the Internal 
404.11 	Revenue Code, (3) the type of qualified bonds to be issued, (4) an application deposit in 
404.12 	the amount of two percent of the requested allocation, and (5) a public purpose scoring 
404.13 	worksheet for manufacturing and enterprise zone applications. The issuer must pay the 
404.14 	application deposit to the Department of Management and Budget. An entitlement issuer 
404.15 	may not apply for an allocation for public facility bonds or mortgage bonds under this 
404.16 	section unless it has either permanently issued bonds equal to the amount of its entitlement 
404.17 	allocation for the current year plus any amount carried forward from previous years or 
404.18 	returned for reallocation all of its unused entitlement allocation. For purposes of this 
404.19 	subdivision, its entitlement allocation includes an amount obtained under section 474A.04, 
404.20 	subdivision 6.
404.21 	Notwithstanding the restrictions imposed on entitlement issuers under this subdivision, 
404.22 	the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds 
404.23 	under this section prior to the first Monday in October, but may be awarded allocations for 
404.24 	mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota 
404.25 	Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota 
404.26 	Rural Finance Authority may apply for and receive an allocation under this section without 
404.27 	submitting an application deposit.
404.28 		Subd. 3.Allocation procedure. (a) The commissioner shall allocate available bonding 
404.29 	authority under this section on the Monday of every other week beginning with the first 
404.30 	Monday in August July through and on the last Monday in November. Applications for 
404.31 	allocations must be received by the department by 4:30 p.m. on the Monday preceding the 
404.32 	Monday on which allocations are to be made. If a Monday falls on a holiday, the allocation 
404.33 	will be made or the applications must be received by the next business day after the holiday.
404.34 	(b) Prior to October 1, only the following applications shall be awarded allocations from 
404.35 	the unified pool. Allocations shall be awarded in the following order of priority:
405.1 	(1) applications for residential rental project bonds;
405.2 	(2) applications for small issue bonds for manufacturing projects; and
405.3 	(3) applications for small issue bonds for agricultural development bond loan projects.
405.4 	(c) On the first Monday in October through the last Monday in November, allocations 
405.5 	shall be awarded from the unified pool in the following order of priority:
405.6 	(1) applications for student loan bonds issued by or on behalf of the Minnesota Office 
405.7 	of Higher Education;
405.8 	(2) applications for mortgage bonds;
405.9 	(3) applications for public facility projects funded by public facility bonds;
405.10 	(4) applications for small issue bonds for manufacturing projects;
405.11 	(5) applications for small issue bonds for agricultural development bond loan projects;
405.12 	(6) applications for residential rental project bonds;
405.13 	(7) applications for enterprise zone facility bonds;
405.14 	(8) applications for governmental bonds; and
405.15 	(9) applications for redevelopment bonds.
405.16 	(d) If there are two or more applications for manufacturing projects from the unified 
405.17 	pool and there is insufficient bonding authority to provide allocations for all manufacturing 
405.18 	projects in any one allocation period, the available bonding authority shall be awarded based 
405.19 	on the number of points awarded a project under section 474A.045 with those projects 
405.20 	receiving the greatest number of points receiving allocation first. If two or more applications 
405.21 	for manufacturing projects receive an equal amount of points, available bonding authority 
405.22 	shall be awarded by lot unless otherwise agreed to by the respective issuers.
405.23 	(e) If there are two or more applications for enterprise zone facility projects from the 
405.24 	unified pool and there is insufficient bonding authority to provide allocations for all enterprise 
405.25 	zone facility projects in any one allocation period, the available bonding authority shall be 
405.26 	awarded based on the number of points awarded a project under section 474A.045 with 
405.27 	those projects receiving the greatest number of points receiving allocation first. If two or 
405.28 	more applications for enterprise zone facility projects receive an equal amount of points, 
405.29 	available bonding authority shall be awarded by lot unless otherwise agreed to by the 
405.30 	respective issuers.
406.1 	(f) If there are two or more applications for residential rental projects from the unified 
406.2 	pool and there is insufficient bonding authority to provide allocations for all residential 
406.3 	rental projects in any one allocation period, the available bonding authority shall be awarded 
406.4 	in the following order of priority: (1) projects that preserve existing federally subsidized 
406.5 	housing; (2) projects that are not restricted to persons who are 55 years of age or older; and 
406.6 	(3) preservation projects; (2) 30 percent AMI residential rental projects; (3) 50 percent AMI 
406.7 	residential rental projects; (4) 100 percent LIHTC projects; (5) 20 percent LIHTC projects; 
406.8 	(6) other residential rental projects for which the amount of bonds requested in their 
406.9 	respective applications do not exceed the aggregate bond limitation; and (7) other residential 
406.10 	rental projects for which the amount of bonds requested in their respective applications 
406.11 	exceeds the aggregate bond limitation and which apply on or after September 1 of a calendar 
406.12 	year. If there are two or more applications for residential rental projects at the same priority 
406.13 	level and there is insufficient bonding authority to provide allocations for all such projects 
406.14 	in any one allocation period, available bonding authority shall be randomly awarded by lot. 
406.15 	If a residential rental project is selected by lot, but the remaining bonding authority is 
406.16 	insufficient to provide the full amount of its requested allocation, the project shall be allocated 
406.17 	the remaining available unified pool bonding authority, and if the project applies for any 
406.18 	additional available allocation within that calendar year or applies in the next successive 
406.19 	housing pool or the next successive unified pool for an allocation of bonds, the project shall 
406.20 	be awarded the lesser of the available bonding authority or the remainder of its full allocation 
406.21 	before any new project applying in the same allocation period with an equal or lower priority 
406.22 	shall receive bonding authority. The project shall continue to receive priority over other 
406.23 	projects applying with an equal or lower priority during the time period specified in this 
406.24 	paragraph until the project has been awarded its full allocation amount.
406.25 	(g) From the first Monday in August date the unified pool is created through the last 
406.26 	Monday in November August, $20,000,000 of bonding authority or an amount equal to the 
406.27 	total annual amount of bonding authority allocated to the small issue pool under section 
406.28 	474A.03, subdivision 1, less the amount allocated to issuers from the small issue pool for 
406.29 	that year, whichever is less, is reserved within the unified pool for small issue bonds to the 
406.30 	extent such amounts are available within the unified pool.
406.31 	(h) The total amount of allocations for mortgage bonds from the housing pool and the 
406.32 	unified pool may not exceed:
406.33 	(1) $10,000,000 for any one city; or
406.34 	(2) $20,000,000 for any number of cities in any one county.
407.1 	(i) The total amount of allocations for student loan bonds from the unified pool may not 
407.2 	exceed $25,000,000 per year.
407.3 	(j) If there is insufficient bonding authority to fund all projects within any qualified bond 
407.4 	category other than enterprise zone facility projects, manufacturing projects, and residential 
407.5 	rental projects, allocations shall be awarded by lot unless otherwise agreed to by the 
407.6 	respective issuers.
407.7 	(k) If an application is rejected, the commissioner must notify the applicant and return 
407.8 	the application deposit to the applicant within 30 days unless the applicant requests in writing 
407.9 	that the application be resubmitted.
407.10 	(l) The granting of an allocation of bonding authority under this section must be evidenced 
407.11 	by issuance of a certificate of allocation.
407.12 		Subd. 3a.Mortgage bonds. (a) Bonding authority remaining in the unified pool on 
407.13 	October 1 is available for single-family housing programs for cities that applied in January
407.14 	or June and received an allocation under section 474A.061, subdivision 2a, in the same 
407.15 	calendar year. The Minnesota Housing Finance Agency shall receive an allocation for 
407.16 	mortgage bonds pursuant to this section, minus any amounts for a city or consortium that 
407.17 	intends to issue bonds on its own behalf under paragraph (c).
407.18 	(b) The agency may issue bonds on behalf of participating cities. The agency shall request 
407.19 	an allocation from the commissioner for all applicants who choose to have the agency issue 
407.20 	bonds on their behalf and the commissioner shall allocate the requested amount to the 
407.21 	agency. Allocations shall be awarded by the commissioner each Monday commencing on 
407.22 	the first Monday in October through the last Monday in November for applications received 
407.23 	by 4:30 p.m. on the Monday of the week preceding an allocation.
407.24 	For cities who choose to have the agency issue bonds on their behalf, allocations will 
407.25 	be made loan by loan, on a first-come, first-served basis among the cities. The agency shall 
407.26 	submit an application fee pursuant to section 474A.03, subdivision 4, and an application 
407.27 	deposit equal to two percent of the requested allocation to the commissioner when requesting 
407.28 	an allocation from the unified pool. After awarding an allocation and receiving a notice of 
407.29 	issuance for mortgage bonds issued on behalf of the participating cities, the commissioner 
407.30 	shall transfer the application deposit to the Minnesota Housing Finance Agency.
407.31 	For purposes of paragraphs (a) to (d), "city" means a county or a consortium of local 
407.32 	government units that agree through a joint powers agreement to apply together for 
407.33 	single-family housing programs, and has the meaning given it in section 462C.02, subdivision 
407.34 	6. "Agency" means the Minnesota Housing Finance Agency.
408.1 	(c) Any city that received an allocation pursuant to section 474A.061, subdivision 2a, 
408.2 	paragraph (f), in the current year that wishes to receive an additional allocation from the 
408.3 	unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement shall 
408.4 	notify the Minnesota Housing Finance Agency by the third Monday in September. The total 
408.5 	amount of allocation for mortgage bonds for a city choosing to issue bonds on its own behalf 
408.6 	or through a joint powers agreement is limited to the lesser of: (i) the amount requested, or 
408.7 	(ii) the product of the total amount available for mortgage bonds from the unified pool, 
408.8 	multiplied by the ratio of the population of each city that applied in January and received 
408.9 	an allocation under section 474A.061, subdivision 2a, in the same calendar year, as 
408.10 	determined by the most recent estimate of the city's population released by the state 
408.11 	demographer's office to the total of the population of all the cities that applied in January 
408.12 	and received an allocation under section 474A.061, subdivision 2a, in the same calendar 
408.13 	year. If a city choosing to issue bonds on its own behalf or through a joint powers agreement 
408.14 	is located within a county that has also chosen to issue bonds on its own behalf or through 
408.15 	a joint powers agreement, the city's population will be deducted from the county's population 
408.16 	in calculating the amount of allocations under this paragraph.
408.17 	The Minnesota Housing Finance Agency shall notify each city choosing to issue bonds 
408.18 	on its own behalf or pursuant to a joint powers agreement of the amount of its allocation 
408.19 	by October 15. Upon determining the amount of the allocation of each choosing to issue 
408.20 	bonds on its own behalf or through a joint powers agreement, the agency shall forward a 
408.21 	list specifying the amounts allotted to each city.
408.22 	A city that chooses to issue bonds on its own behalf or through a joint powers agreement 
408.23 	may request an allocation from the commissioner by forwarding an application with an 
408.24 	application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal 
408.25 	to two percent of the requested amount to the commissioner no later than 4:30 p.m. on the 
408.26 	Monday of the week preceding an allocation. Allocations to cities that choose to issue bonds 
408.27 	on their own behalf shall be awarded by the commissioner on the first Monday after October 
408.28 	15 through the last Monday in November. No city may receive an allocation from the 
408.29 	commissioner after the last Monday in November. The commissioner shall allocate the 
408.30 	requested amount to the city or cities subject to the limitations under this subdivision.
408.31 	If a city issues mortgage bonds from an allocation received under this paragraph, the 
408.32 	issuer must provide for the recycling of funds into new loans. If the issuer is not able to 
408.33 	provide for recycling, the issuer must notify the commissioner in writing of the reason that 
408.34 	recycling was not possible and the reason the issuer elected not to have the Minnesota 
408.35 	Housing Finance Agency issue the bonds. "Recycling" means the use of money generated 
409.1 	from the repayment and prepayment of loans for further eligible loans or for the redemption 
409.2 	of bonds and the issuance of current refunding bonds.
409.3 	(d) No entitlement city or county or city in an entitlement county may apply for or be 
409.4 	allocated authority to issue mortgage bonds or use mortgage credit certificates from the 
409.5 	unified pool.
409.6 	(e) An allocation awarded to the agency for mortgage bonds under this section may be 
409.7 	carried forward by the agency subject to notice requirements under section 474A.131.
409.8 		Subd. 4.Remaining bonding authority. All remaining bonding authority available for 
409.9 	allocation under this section on December 1, is allocated to the Minnesota Housing Finance 
409.10 	Agency.
409.11 		Subd. 5.Return of allocation; deposit refund. (a) If an issuer that receives an allocation 
409.12 	under this section determines that it will not (1) issue obligations equal to all or a portion 
409.13 	of the allocation received under this section within 120daysthe time period permitted by 
409.14 	this section or (2) carry forward its allocation under section 474A.091, subdivision 2, by 
409.15 	the last business day in Decemberofthe allocation or within the time period permitted by 
409.16 	federal tax law, whichever is less, the issuer must notify the department as soon as possible 
409.17 	but no later than the last business day in December. If the issuer notifies the department or 
409.18 	the 120-day period since allocation has expired prior to the last Monday in November, the 
409.19 	amount of allocation is canceled and returned for reallocation through the unified pool. If 
409.20 	the issuer notifies the department on or after the last Monday in November, the amount of 
409.21 	allocation is canceled and returned for reallocation to the Minnesota Housing Finance 
409.22 	Agency. To encourage a competitive application process, the commissioner shall reserve, 
409.23 	for new applications, the amount of allocation that is canceled and returned for reallocation 
409.24 	under this section for a minimum of seven calendar days.
409.25 	(b) An issuer that returns for reallocation all or a portion of an allocation for all types 
409.26 	of bonds other than residential rental project bonds received under this section within 120 
409.27 	days of the allocation shall receive within 30 days a refund equal to:
409.28 	(1) one-half of the application deposit for the amount of bonding authority returned 
409.29 	within 30 days of receiving the allocation;
409.30 	(2) one-fourth of the application deposit for the amount of bonding authority returned 
409.31 	between 31 and 60 days of receiving the allocation; and
409.32 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
409.33 	between 61 and 120 days of receiving the allocation.
410.1 	(c) No refund of the application deposit shall be available for allocations returned on or 
410.2 	after the last Monday in November.
410.3 	(c) An issuer that returns for reallocation all or a portion of an allocation for residential 
410.4 	rental project bonds received under this section by the last Monday in November shall 
410.5 	receive within 30 days a refund equal to:
410.6 	(1) one-half of the application deposit for the amount of bonding authority returned 
410.7 	within 45 days of receiving the allocation;
410.8 	(2) one-fourth of the application deposit for the amount of bonding authority returned 
410.9 	between 46 and 90 days of receiving the allocation; and
410.10 	(3) one-eighth of the application deposit for the amount of bonding authority returned 
410.11 	between 91 and 180 days of receiving the allocation.
410.12 	No refund of the application deposit shall be available for allocations returned on or after 
410.13 	the last Monday in November.
410.14 		Subd. 6.Final allocation; carryforward. Notwithstanding the notice requirements of 
410.15 	section 474A.131, subdivision 2, any bonding authority remaining unissued by the Minnesota 
410.16 	Housing Finance Agency on the last business day in December shall be carried forward 
410.17 	into the next calendar year by the commissioner for the Minnesota Housing Finance Agency.

410.18 	EFFECTIVE DATE. This section is effective January 1, 2019, except for subdivision 
410.19 	3, paragraph (g), which is effective the day following final enactment.

410.20 	Sec. 30. Minnesota Statutes 2016, section 474A.131, is amended to read:
410.21 	474A.131 NOTICE OF ISSUE AND NOTICE OF CARRYFORWARD.
410.22 		Subdivision 1.Notice of issue. (a) Each issuer that issues bonds with an allocation 
410.23 	received under this chapter shall provide a notice of issue to the department on forms 
410.24 	provided by the department stating:
410.25 	(1) the date of issuance of the bonds;
410.26 	(2) the title of the issue;
410.27 	(3) the principal amount of the bonds;
410.28 	(4) the type of qualified bonds under federal tax law;
410.29 	(5) the dollar amount of the bonds issued that were subject to the annual volume cap; 
410.30 	and
411.1 	(6) for entitlement issuers and issuers of residential rental housing obligations that have 
411.2 	elected to carry forward an allocation, whether the allocation is from current year entitlement 
411.3 	authority or is from carryforward authority.
411.4 	(b) For obligations that are issued as a part of a series of obligations, a notice must be 
411.5 	provided for each series. A penalty of one-half of the amount of the application deposit not 
411.6 	to exceed $5,000 shall apply to any issue of obligations for which a notice of issue is not 
411.7 	provided to the department within five business days after issuance or before 4:30 p.m. on 
411.8 	the last business day in December, whichever occurs first. Within 30 days after receipt of 
411.9 	a notice of issue the department shall refund a portion of the application deposit equal to 
411.10 	one percent of the amount of the bonding authority actually issued if a one percent application 
411.11 	deposit was made, or equal to two percent of the amount of the bonding authority actually 
411.12 	issued if a two percent application deposit was made, less any penalty amount.
411.13 	(c) If an issuer that receives an allocation under this chapter for a residential rental project 
411.14 	issues obligations as provided in this chapter, the commissioner shall refund 50 percent of 
411.15 	any application deposit previously paid within 30 days of the issuance of the obligations 
411.16 	and the remaining 50 percent will be refunded within 30 days after the date on which (1) 
411.17 	final Internal Revenue Service Forms 8609 are provided to the commissioner with respect 
411.18 	to preservation projects, 30 percent AMI residential rental projects, 50 percent AMI 
411.19 	residential rental projects, 100 percent LIHTC projects, or 20 percent LIHTC projects, or 
411.20 	(2) the issuer provides a certification and any other reasonable documentation requested by 
411.21 	the commissioner evidencing that construction of the project has been completed. If the 
411.22 	issuer receives an allocation under this chapter for a residential rental project and fails to 
411.23 	issue the bonds within the time permitted by federal law, the application deposit shall be 
411.24 	forfeited.
411.25 		Subd. 1a.Certificate of notice. If an allocation received under this chapter is used for 
411.26 	mortgage credit certificates, a certificate notice must be submitted to the department on 
411.27 	forms provided by the department stating the date of the filing of the election not to issue 
411.28 	bonds as provided under section 25, paragraph (c), of the Internal Revenue Code and the 
411.29 	amount of allocation authority to be used under the program.
411.30 	A penalty of one-half of the amount of the application deposit not to exceed $5,000 shall 
411.31 	apply to any mortgage credit certificate program for which a certificate notice is not provided 
411.32 	to the department within five days of the date of the filing of the election not to issue bonds 
411.33 	or before the last Monday in December, whichever occurs first. Within 30 days after receipt 
411.34 	of a certificate notice the department shall refund a portion of the application deposit equal 
412.1 	to one percent of the amount of the bonding authority to be used for the mortgage credit 
412.2 	certificate program, less any penalty amount.
412.3 		Subd. 1b.Deadline for issuance of qualified bonds. If an issuer fails to notify the 
412.4 	department before 4:30 p.m. on the last business day in December of issuance of obligations 
412.5 	pursuant to an allocation received for any qualified bond project, election to carry forward 
412.6 	an allocation for a residential rental project, or issuance of an entitlement allocation, the 
412.7 	allocation is canceled and the bonding authority is allocated to the Minnesota Housing 
412.8 	Finance Agency for carryforward by the commissioner under section 474A.091, subdivision 
412.9 	6.
412.10 		Subd. 2.Carryforward notice. If an issuer intends to carry forward an allocation received 
412.11 	under this chapter, it must notify the department in writing before 4:30 p.m. on the last 
412.12 	business day in December. This notice requirement does not apply to the Minnesota Housing 
412.13 	Finance Agency for the carryforward of unallocated unified pool balances.
412.14 		Subd. 3.Irrevocable allocation. The department may not revoke an allocation received 
412.15 	under this chapter after receiving a notice of issue or certificate notice from the issuer.
412.16 		Subd. 4.Allocation plan. By January 15 of each year, the commissioner of the Minnesota 
412.17 	Housing Finance Agency shall annually prepare a tax-exempt bond allocation plan that 
412.18 	identifies the amount of tax-exempt bonds allocated to the Minnesota Housing Finance 
412.19 	Agency during the previous calendar year, identifies the amount of carryforward bonds and 
412.20 	the respective issuers pursuant to subdivision 1b, and for all other bond carryforward, 
412.21 	whether or not the Minnesota Housing Fiance Agency intends to carryforward such bonds 
412.22 	not otherwise allocated in the previous year as qualified residential rental bonds or qualified 
412.23 	mortgage bonds or mortgage credit certificates consistent with the requirements of Internal 
412.24 	Revenue Service Form 8328, identifies the carryforward balance of any tax-exempt bonds 
412.25 	allocated to the Minnesota Housing Finance Agency including those bonds carried forward 
412.26 	as qualified residential rental bonds and qualified mortgage bonds or mortgage credit 
412.27 	certificates. Prior to January 15 of each year, the Minnesota Housing Finance Agency must 
412.28 	post on its official Web site the tax-exempt bond allocation plan and invite public comment 
412.29 	until February 1. The Minnesota Housing Finance Agency shall not file the Internal Revenue 
412.30 	Service Form 8328 until the public comment period had closed on February 1 unless 
412.31 	otherwise required by federal law.

412.32 	Sec. 31. Minnesota Statutes 2016, section 474A.14, is amended to read:
412.33 	474A.14 NOTICE OF AVAILABLE AUTHORITY.
413.1 	The department shall provide at its official Web site a written notice of the amount of 
413.2 	bonding authority in the housing, small issue, and public facilities pools as soon after January 
413.3 	1 as possible. The department shall provide at its official Web site a written notice of the 
413.4 	amount of bonding authority available for allocation in the unified pool as soon after August
413.5 	July 1 as possible.

413.6 	Sec. 32. Minnesota Statutes 2016, section 474A.21, is amended to read:
413.7 	474A.21 APPROPRIATION; RECEIPTS.
413.8 	Any fees collected by the department under sections 474A.01 to 474A.21 must be 
413.9 	deposited in a separate account in the general fund. The amount necessary to refund 
413.10 	application deposits is appropriated to the department from the separate account in the 
413.11 	general fund for that purpose. The interest accruing on application deposits and any 
413.12 	application deposit not refunded as provided under section 474A.061, subdivision 4 or 
413.13 	subdivision 4a, or 474A.091, subdivision 5, or forfeited as provided under section 474A.131, 
413.14 	subdivision 1, paragraph (c), or subdivision 2, must be deposited in the housing trust fund 
413.15 	account under section 462A.201.

413.16 	Sec. 33. Minnesota Statutes 2016, section 507.18, subdivision 2, is amended to read:
413.17 		Subd. 2.Restriction only is void. Every provision referred to in subdivision 1 shall be 
413.18 	void, regardless of the year the written instrument was executed, but the instrument shall 
413.19 	have full force in all other respects and shall be construed as if no such provision were 
413.20 	contained therein.

413.21 	Sec. 34. Minnesota Statutes 2016, section 507.18, is amended by adding a subdivision to 
413.22 	read:
413.23 		Subd. 5.Discharge of restrictive covenants related to protected classes. The owner 
413.24 	of any real property may file the statutory form provided in this section in any county  where 
413.25 	the property is located to discharge a restrictive covenant related to a protected class 
413.26 	permanently from the title. This subdivision does not apply to real property registered under 
413.27 	chapter 508 or 508A. The discharge of the restrictive covenant is valid and enforceable 
413.28 	under the law of Minnesota when the statutory form, or a substantially similar form, is 
413.29 	properly recorded. For the purposes of this subdivision and subdivision 6, a "protected class" 
413.30 	means a group defined by one of the characteristics listed in section 363A.09, subdivision 
413.31 	1, clause (1), but does not include the exceptions provided in section 363A.21.

414.1 	Sec. 35. Minnesota Statutes 2016, section 507.18, is amended by adding a subdivision to 
414.2 	read:
414.3 		Subd. 6.Filing; recording. (a) The county recorder must accept the statutory form 
414.4 	provided in this subdivision for recording when:
414.5 	(1) the form has been executed before a notary;
414.6 	(2) the form contains the legal description of the property;
414.7 	(3) the form contains the name and address of the person who drafted the form; and
414.8 	(4) the form complies with the standards for recorded documents in section 507.093.
414.9 	(b) The commissioner of commerce must provide electronic copies of the statutory form 
414.10 	in this subdivision to the public free of cost.
414.11 	(c) The filing of this form does not alter or affect the duration or expiration of covenants, 
414.12 	conditions, or restrictions under section 500.20 and may not be used to extend the effect of 
414.13 	a covenant.
414.14 	(d) The statutory form that follows may be used to discharge restrictive covenants on 
414.15 	property that limit the ownership, occupancy, use, or financing based on protected class:
414.16 	DISCHARGE OF RESTRICTIVE COVENANT AFFECTING PROTECTED CLASSES
414.17 	Pursuant to Minnesota Statutes, section 507.18, any restrictive covenant affecting a 
414.18 	protected class, including covenants which were placed on the property with the intent of 
414.19 	restricting the use, occupancy, ownership, or financing because of a person's protected class, 
414.20 	is discharged and released from the land described herein.
414.21 	I/we, .............................................................................................., solemnly swear that 
414.22 	the contents of this form are true to the best of my/our knowledge, except as to those matters 
414.23 	stated on information and belief, and that as to those matters I/we believe them to be true.
414.24 	Name and Address of Owner(s) .............................................................................................
414.25 	The real property owned by owner(s) is located in ................................. County, 
414.26 	Minnesota, and is legally described as follows:
414.27 	OWNER(s), ...................................................................................., swears and affirms 
414.28 	that Owner(s) is/are 18 years of age or older and is/are not under any legal incapacity and 
414.29 	that the information provided in this form is true and correct based on the information 
414.30 	available and based on reasonable information and belief:
415.1 	(1) a restrictive covenant which had the intent to restrict the use, occupancy, ownership, 
415.2 	or financing of this property based on a protected class existed at one time related to the 
415.3 	property described in this form;
415.4 	(2) restrictive covenants relating to or affecting protected classes are unenforceable and 
415.5 	void pursuant to Minnesota Statutes, sections 507.18 and 363A.09, the United States 
415.6 	Constitution, and the Minnesota Constitution;
415.7 	(3) Minnesota Statutes, section 507.18, allows for the discharge of a restrictive covenant 
415.8 	of the nature described herein through the use of this statutory form to permanently discharge 
415.9 	such covenants from the land described herein and release the current and future landowner(s) 
415.10 	from any such restrictive covenant related to or affecting protected classes;
415.11 	(4) any covenant not related to protected classes but related to the real property described 
415.12 	herein shall have full force in all other respects; and
415.13 	(5) the filing of this form does not alter or change the duration or expiration of covenants, 
415.14 	conditions, or restrictions under Minnesota Statutes, section 500.20.
415.15 	The affiant(s) know(s) the matters herein stated are true and make(s) this affidavit for 
415.16 	the purpose of documenting the discharge of the illegal and unenforceable restrictive 
415.17 	covenants affecting protected classes.

415.18		........
	
415.19		Affiant (Owner(s) Signature)
	
415.20
415.21	Signed and sworn before me on 
........................ (Date), by
		
415.22	........ (Affiant/Owner)
		
415.23		........
	
415.24		Signature of Notary
	
415.25	Stamp
		
415.26	My commission expires ........
		
415.27	This instrument was drafted by:
	........
	
415.28		Name
	
415.29		........
	
415.30		Address

415.31 	Sec. 36. Laws 2014, chapter 312, article 2, section 14, as amended by Laws 2016, chapter 
415.32 	189, article 7, section 8, and Laws 2017, chapter 94, article 6, section 17, is amended to 
415.33 	read:
415.34 	Sec. 14. ASSIGNED RISK TRANSFER.
 416.1 	(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an 
416.2 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
416.3 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
416.4 	amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer 
416.5 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
416.6 	paragraph (a), clause (1). This is a onetime transfer.
416.7 	(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce 
416.8 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
416.9 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
416.10 	budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year, 
416.11 	to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423. 
416.12 	This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, 
416.13 	subdivision 1, paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) 
416.14 	and (f). The total amount authorized for all transfers under this paragraph must not exceed 
416.15 	$24,100,000. This paragraph expires the day following the transfer in which the total amount 
416.16 	transferred under this paragraph to the Minnesota minerals 21st century fund equals 
416.17 	$24,100,000.
416.18 	(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an 
416.19 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
416.20 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
416.21 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
416.22 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
416.23 	paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a 
416.24 	transfer occurs under this paragraph, the amount transferred is appropriated from the general 
416.25 	fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section 
416.26 	15. Both the transfer and appropriation under this paragraph are onetime.
416.27 	(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an 
416.28 	audit that there is an excess surplus in the assigned risk plan created under Minnesota 
416.29 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
416.30 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
416.31 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
416.32 	paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a 
416.33 	transfer occurs under this paragraph, the amount transferred is appropriated from the general 
416.34 	fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section 
416.35 	15. Both the transfer and appropriation under this paragraph are onetime.
417.1 	(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of 
417.2 	management and budget shall transfer to the general fund, any unencumbered or unexpended 
417.3 	balance of the appropriations under paragraphs (c) and (d) remaining on June 30, 2016, or 
417.4 	the date the commissioner of commerce determines that an excess surplus in the assigned 
417.5 	risk plan does not exist, whichever occurs earlier.
417.6 	(f) By June 30, 2017 2018, and each year thereafter, if the commissioner of commerce 
417.7 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
417.8 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
417.9 	budget shall transfer the amount of the excess surplus, not to exceed $2,000,000 $3,000,000
417.10 	each year, to the rural policy and development center fund under Minnesota Statutes, section 
417.11 	116J.4221 Minnesota manufactured home relocation trust fund established in Minnesota 
417.12 	Statutes, section 462A.35, subdivision 1. This transfer occurs prior to any transfer under 
417.13 	paragraph (b) or under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), 
417.14 	clause (1). The total amount authorized for all transfers under this paragraph must not exceed 
417.15 	$2,000,000 $3,000,000. This paragraph expires the day following the transfer in which the 
417.16 	total amount transferred under this paragraph to the rural policy and development center 
417.17 	fund Minnesota manufactured home relocation trust fund equals $2,000,000 $3,000,000.

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

417.19 	Sec. 37. ADVANCES TO THE MINNESOTA MANUFACTURED HOME 
417.20 	RELOCATION TRUST FUND.
 417.21 	(a) Until June 30, 2020, the Minnesota Housing Finance Agency or Department of 
417.22 	Management and Budget as determined by the commissioner of management and budget, 
417.23 	is authorized to advance up to $400,000 from state appropriations or other resources to the 
417.24 	Minnesota manufactured home relocation trust fund established under Minnesota Statutes, 
417.25 	section 462A.35, if the account balance in the Minnesota manufactured home relocation 
417.26 	trust fund is insufficient to pay the amounts claimed under Minnesota Statutes, section 
417.27 	327C.095, subdivision 13.
417.28 	(b) The Minnesota Housing Finance Agency or Department of Management and Budget 
417.29 	shall be reimbursed from the Minnesota manufactured home relocation trust fund for any 
417.30 	money advanced by the agency under paragraph (a) to the fund. Approved claims for payment 
417.31 	to manufactured home owners shall be paid prior to the money being advanced by the agency 
417.32 	or the department to the fund.

418.1 	Sec. 38. HOUSING AFFORDABILITY FUND; 2019 ALLOCATIONS.
 418.2 	Allocations from the Housing Finance Agency's housing affordability fund, pool 3, in 
418.3 	2019, may include a set-aside of ten percent for single-family home ownership development 
418.4 	and rental housing for up to a four-plex in municipalities with a population under 10,000, 
418.5 	or for manufactured housing projects. Any such set-aside shall remain until June 1, 2019, 
418.6 	after which any money remaining in the set-aside shall be available to all eligible projects.

418.7 	Sec. 39.  REPEALER.
 418.8 	Minnesota Statutes 2016, section 471.9996, subdivision 2, is repealed.

418.9 	Sec. 40. EFFECTIVE DATE.
 418.10 	Except as otherwise noted, sections 15 to 32 are effective January 1, 2019.

418.11 	ARTICLE 28
418.12 	PUBLIC SAFETY APPROPRIATIONS

418.13	Section 1. APPROPRIATIONS.
 	
418.14 	The sums shown in the column under "Appropriations" are added to the appropriations 
418.15 	in Laws 2017, chapter 95, article 1, to the agencies and for the purposes specified in this 
418.16 	article. The appropriations are from the general fund, or another named fund, and are 
418.17 	available for the fiscal year indicated for each purpose.

418.18				APPROPRIATIONS
	
418.19				Available for the Year
	
418.20				Ending June 30
	
418.21					2018
		2019

418.22	Sec. 2. GUARDIAN AD LITEM BOARD
 	$
	0
	$
	2,940,000
	
418.23 	This appropriation is to hire additional 
418.24 	guardians ad litem to comply with federal and 
418.25 	state mandates and court orders for 
418.26 	representing the best interests of children in 
418.27 	juvenile and family court proceedings. The 
418.28 	appropriation in this section is available until 
418.29 	June 30, 2021. The general fund base for this 
418.30 	appropriation is $1,871,000 beginning in fiscal 
418.31 	year 2020.

419.1	Sec. 3. PUBLIC SAFETY

419.2	Subdivision 1.Total Appropriation
 	$
	0
	$
	423,000

419.3	Appropriations by Fund
	
419.4		2018
	2019
	
419.5	General
	0
	323,000
	
419.6
419.7	Driver and Vehicle 
Services Fund
	0
	100,000

419.8
419.9	Subd. 2.Task Force on Missing and Murdered 
Indigenous Women
 					
419.10 	$48,000 is from the general fund for the Task 
419.11 	Force on Missing and Murdered Indigenous 
419.12 	Women. The general fund base for this 
419.13 	appropriation shall be $45,000 in fiscal year 
419.14 	2020 and $0 in fiscal year 2021.

419.15	Subd. 3.Ignition Interlock
 					
419.16 	$100,000 is from the driver services operating 
419.17 	account under Minnesota Statutes, section 
419.18 	299A.705, for increased use of ignition 
419.19 	interlock. The base for this appropriation shall 
419.20 	be $125,000 beginning in fiscal year 2020.

419.21	Subd. 4.Forensic Scientists
 					
419.22 	$275,000 is from the general fund for two 
419.23 	Bureau of Criminal Apprehension forensic 
419.24 	scientists and laboratory supplies. This is an 
419.25 	ongoing appropriation.

419.26	Sec. 4. CORRECTIONS
 	$
	0
	$
	6,600,000
	
419.27 	This appropriation is to fund the offender 
419.28 	health care contract. $1,968,000 is added to 
419.29 	the base in fiscal year 2020 and $3,168,000 is 
419.30 	added to the base in fiscal year 2021 and 
419.31 	beyond.

419.32	Sec. 5. HUMAN SERVICES
 	$
	0
	$
	12,000
	
420.1 	This appropriation is for state costs to update 
420.2 	a paternity training video. This is a onetime 
420.3 	appropriation.

420.4 	Sec. 6. TRANSFER; PEACE OFFICER TRAINING ACCOUNT DEFICIENCY.
 420.5 	$125,000 is transferred in fiscal year 2019 from the general fund to the peace officer 
420.6 	training account in the special revenue fund to pay for a projected deficiency in the peace 
420.7 	officer training account. This is a onetime transfer.

420.8 	Sec. 7. TRANSFER; FEDERAL DISASTER, DR-4069.
 420.9 	The commissioner of management and budget must transfer any unexpended balance 
420.10 	appropriated to the Department of Public Safety for Federal Disaster DR-4069 under Laws 
420.11 	2012, First Special Session chapter 1, article 1, section 3, subdivision 2, as amended by 
420.12 	Laws 2013, First Special Session chapter 1, section 2, paragraph (a), to the disaster 
420.13 	contingency account in Minnesota Statutes, section 12.221, subdivision 6. This is a onetime 
420.14 	transfer.

420.15 	ARTICLE 29
420.16 	COURTS

420.17 	Section 1. Minnesota Statutes 2016, section 257.57, subdivision 1, is amended to read:
420.18 		Subdivision 1.Actions under section 257.55, subdivision 1, paragraph (a), (b), or 
420.19 	(c).  A child, the child's biological mother, or a man presumed to be the child's father under 
420.20 	section 257.55, subdivision 1, paragraph (a), (b), or (c) may bring an action:
420.21 	(1) at any time for the purpose of declaring the existence of the father and child 
420.22 	relationship presumed under section 257.55, subdivision 1, paragraph (a), (b), or (c); or
420.23 	(2) for the purpose of declaring the nonexistence of the father and child relationship 
420.24 	presumed under section 257.55, subdivision 1, paragraph (a), (b), or (c), only if the action 
420.25 	is brought within two three years after the person bringing the action has reason to believe 
420.26 	that the presumed father is not the father of the child, but in no event later than three years 
420.27 	after the child's birth. However, if the presumed father was divorced from the child's mother 
420.28 	and if, on or before the 280th day after the judgment and decree of divorce or dissolution 
420.29 	became final, he did not know that the child was born during the marriage or within 280 
420.30 	days after the marriage was terminated, the action is not barred until one year after the child 
420.31 	reaches the age of majority or one year three years after the presumed father knows or 
421.1 	reasonably should have known of the birth of the child, whichever is earlier. After the 
421.2 	presumption has been rebutted, paternity of the child by another man may be determined 
421.3 	in the same action, if he has been made a party.

421.4 	Sec. 2. Minnesota Statutes 2016, section 257.57, subdivision 2, is amended to read:
421.5 		Subd. 2.Actions under other paragraphs of section 257.55, subdivision 1.  The child, 
421.6 	the mother, or personal representative of the child, the public authority chargeable by law 
421.7 	with the support of the child, the personal representative or a parent of the mother if the 
421.8 	mother has died or is a minor, a man alleged or alleging himself to be the father, or the 
421.9 	personal representative or a parent of the alleged father if the alleged father has died or is 
421.10 	a minor may bring an action:
421.11 	(1) at any time for the purpose of declaring the existence of the father and child 
421.12 	relationship presumed under sections 257.55, subdivision 1, paragraph (d), (e), (g), or (h), 
421.13 	and 257.62, subdivision 5, paragraph (b), or the nonexistence of the father and child 
421.14 	relationship presumed under section 257.55, subdivision 1, clause (d);
421.15 	(2) for the purpose of declaring the nonexistence of the father and child relationship 
421.16 	presumed under section 257.55, subdivision 1, paragraph (d), only if the action is brought 
421.17 	within three years from when the presumed father began holding the child out as his own;
421.18 	(3) for the purpose of declaring the nonexistence of the father and child relationship 
421.19 	presumed under section 257.55, subdivision 1, paragraph (e) or (g), only if the action is 
421.20 	brought within six months three years after the person bringing the action obtains the results 
421.21 	of blood or genetic tests that indicate that the presumed father is not the father of the child
421.22 	has reason to believe that the presumed father is not the biological father;
421.23 	(3) (4) for the purpose of declaring the nonexistence of the father and child relationship 
421.24 	presumed under section 257.62, subdivision 5, paragraph (b), only if the action is brought 
421.25 	within three years after the party bringing the action, or the party's attorney of record, has 
421.26 	been provided the blood or genetic test results; or
421.27 	(4) (5) for the purpose of declaring the nonexistence of the father and child relationship 
421.28 	presumed under section 257.75, subdivision 9, only if the action is brought by the minor 
421.29 	signatory within six months three years after the youngest minor signatory reaches the age 
421.30 	of 18 or three years after the person bringing the action has reason to believe that the father 
421.31 	is not the biological father of the child, whichever is later. In the case of a recognition of 
421.32 	parentage executed by two minor signatories, the action to declare the nonexistence of the 
422.1 	father and child relationship must be brought within six months after the youngest signatory 
422.2 	reaches the age of 18.

422.3 	Sec. 3. Minnesota Statutes 2016, section 257.57, is amended by adding a subdivision to 
422.4 	read:
422.5 		Subd. 7.Nonexistence of father-child relationship. (a) An action to declare the 
422.6 	nonexistence of the father-child relationship must be personally served on all parties and 
422.7 	meet the requirements of either subdivision 1 or 2. An action must be brought by a petition, 
422.8 	except that a motion may be filed in an underlying action regarding parentage, custody, or 
422.9 	parenting time.
422.10 	(b) An action to declare the nonexistence of the father-child relationship cannot proceed 
422.11 	if the court finds that in a previous proceeding:
422.12 	(1) the father-child relationship was contested and a court order determined the existence 
422.13 	of the father-child relationship; or
422.14 	(2) the father-child relationship was determined based upon a court order as a result of 
422.15 	a stipulation or joint petition of the parties.
422.16 	(c) Nothing in this subdivision precludes a party from relief under section 518.145, 
422.17 	subdivision 2, clauses (1) to (3), if applicable, or the Minnesota Rules of Civil Procedure.
422.18 	(d) In evaluating whether or not to declare the nonexistence of the father-child 
422.19 	relationship, the court must consider, evaluate, and make written findings on the following 
422.20 	factors:
422.21 	(1) the length of time between the paternity adjudication or presumption of paternity 
422.22 	and the time that the moving party knew or should have known that the presumed or 
422.23 	adjudicated father might not be the biological father;
422.24 	(2) the length of time during which the presumed or adjudicated father has assumed the 
422.25 	role of father of the child;
422.26 	(3) the facts surrounding the moving party's discovery of the presumed or adjudicated 
422.27 	father's possible nonpaternity;
422.28 	(4) the nature of the relationship between the child and the presumed or adjudicated 
422.29 	father;
422.30 	(5) the current age of the child;
423.1 	(6) the harm or benefit that may result to the child if the court ends the father-child 
423.2 	relationship of the current presumed or adjudicated father;
423.3 	(7) the nature of the relationship between the child and any presumed or adjudicated 
423.4 	father;
423.5 	(8) the parties' agreement to the nonexistence of the father-child relationship and 
423.6 	adjudication of paternity in the same action;
423.7 	(9) the extent to which the passage of time reduces the chances of establishing paternity 
423.8 	of another man and a child support order for that parent;
423.9 	(10) the likelihood of adjudication of the biological father if not already joined in this 
423.10 	action; and
423.11 	(11) any additional factors deemed to be relevant by the court.
423.12 	(e) The burden of proof shall be on the petitioner to show by clear and convincing 
423.13 	evidence that, after consideration of the factors in paragraph (d), declaring the nonexistence 
423.14 	of the father-child relationship is in the child's best interests.
423.15 	(f) The court may grant the relief in the petition or motion upon finding that:
423.16 	(1) the moving party has met the requirements of this section;
423.17 	(2) the genetic testing results were properly conducted in accordance with section 257.62;
423.18 	(3) the presumed or adjudicated father has not adopted the child;
423.19 	(4) the child was not conceived by artificial insemination that meets the requirements 
423.20 	under section 257.56 or that the presumed or adjudicated father voluntarily agreed to the 
423.21 	artificial insemination; and
423.22 	(5) the presumed or adjudicated father did not act to prevent the biological father of the 
423.23 	child from asserting his parental rights with respect to the child.
423.24 	(g) Upon granting the relief sought in the petition or motion, the court shall order the 
423.25 	following:
423.26 	(1) the father-child relationship has ended and the presumed or adjudicated father's 
423.27 	parental rights and responsibilities end upon the granting of the petition;
423.28 	(2) the presumed or adjudicated father's name shall be removed from the minor child's 
423.29 	birth record and a new birth certificate shall be issued upon the payment of any fees;
423.30 	(3) the presumed or adjudicated father's obligation to pay ongoing child support shall 
423.31 	be terminated, effective on the first of the month after the petition or motion was served;
424.1 	(4) any unpaid child support due prior to service of the petition or motion remains due 
424.2 	and owing absent an agreement of all parties including the public authority, or the court 
424.3 	determines other relief is appropriate under the Rules of Civil Procedure; and
424.4 	(5) the presumed or adjudicated father has no right to reimbursement of past child support 
424.5 	paid to the mother, the public authority, or any other assignee of child support.
424.6 	The order must include the provisions of section 257.66 if another party to the action is 
424.7 	adjudicated as the father of the child.

424.8 	Sec. 4. Minnesota Statutes 2016, section 257.75, subdivision 4, is amended to read:
424.9 		Subd. 4.Action to vacate recognition. (a) An action to vacate a recognition of paternity 
424.10 	may be brought by the mother, father, husband or former husband who executed a joinder, 
424.11 	or the child. An action to vacate a recognition of parentage may be brought by the public 
424.12 	authority. A mother, father, or husband or former husband who executed a joinder must 
424.13 	bring the action within one year of the execution of the recognition or within six months 
424.14 	after the person bringing the action obtains the results of blood or genetic tests that indicate 
424.15 	that the man who executed the recognition is not the father of the child three years after the 
424.16 	person bringing the action has reason to believe that the father is not the biological father 
424.17 	of the child. A child must bring an action to vacate within six months three years after the 
424.18 	child obtains the result of blood or genetic tests that indicate that has reason to believe the 
424.19 	man who executed the recognition is not the biological father of the child, or within one 
424.20 	year of reaching the age of majority, whichever is later. If the court finds a prima facie basis 
424.21 	for vacating the recognition, the court shall order the child, mother, father, and husband or 
424.22 	former husband who executed a joinder to submit to blood genetic tests. If the court issues 
424.23 	an order for the taking of blood genetic tests, the court shall require the party seeking to 
424.24 	vacate the recognition to make advance payment for the costs of the blood genetic tests, 
424.25 	unless the parties agree and the court finds that the previous genetic test results exclude the 
424.26 	man who executed the recognition as the biological father of the child. If the party fails to 
424.27 	pay for the costs of the blood genetic tests, the court shall dismiss the action to vacate with 
424.28 	prejudice. The court may also order the party seeking to vacate the recognition to pay the 
424.29 	other party's reasonable attorney fees, costs, and disbursements. If the results of the blood
424.30 	genetic tests establish that the man who executed the recognition is not the father, the court 
424.31 	shall vacate the recognition. Notwithstanding the vacation of the recognition, the court may 
424.32 	adjudicate the man who executed the recognition under any other applicable paternity 
424.33 	presumption under section 257.55. If a recognition is vacated, any joinder in the recognition 
424.34 	under subdivision 1a is also vacated. The court shall terminate the obligation of a party to 
425.1 	pay ongoing child support based on the recognition. A modification of child support based 
425.2 	on a recognition may be made retroactive with respect to any period during which the 
425.3 	moving party has pending a motion to vacate the recognition but only from the date of 
425.4 	service of notice of the motion on the responding party.
425.5 	(b) The burden of proof in an action to vacate the recognition is on the moving party. 
425.6 	The moving party must request the vacation on the basis of fraud, duress, or material mistake 
425.7 	of fact. The legal responsibilities in existence at the time of an action to vacate, including 
425.8 	child support obligations, may not be suspended during the proceeding, except for good 
425.9 	cause shown.

425.10 	EFFECTIVE DATE. This section is effective July 1, 2018, and applies to recognition 
425.11 	of parentage signed on or after that date.

425.12 	Sec. 5. Minnesota Statutes 2016, section 357.021, subdivision 2b, is amended to read:
425.13 		Subd. 2b.Court technology fund. (a) In addition to any other filing fee under this 
425.14 	chapter, the court administrator shall collect a $2 technology fee on filings made under 
425.15 	subdivision 2, clauses (1) to (13). The court administrator shall transmit the fee monthly to 
425.16 	the commissioner of management and budget for deposit in the court technology account 
425.17 	in the special revenue fund.
425.18 	(b) A court technology account is established as a special account in the state treasury 
425.19 	and funds deposited in the account are appropriated to the Supreme Court for distribution 
425.20 	of technology funds as provided in paragraph (d). Technology funds may be used for the 
425.21 	following purposes: acquisition, development, support, maintenance, and upgrades to 
425.22 	computer systems, equipment and devices, network systems, electronic records, filings and 
425.23 	payment systems, interactive video teleconferencing, and online services, to be used by the 
425.24 	state courts and their justice partners.
425.25 	(c) The Judicial Council may establish a board consisting of members from the judicial 
425.26 	branch, prosecutors, public defenders, corrections, and civil legal services to distribute funds 
425.27 	collected under paragraph (a). The Judicial Council may adopt policies and procedures for 
425.28 	the operation of the board, including but not limited to policies and procedures governing 
425.29 	membership terms, removal of members, and the filling of membership vacancies.
425.30 	(d) Applications for the expenditure of technology funds shall be accepted from the 
425.31 	judicial branch, county and city attorney offices, the Board of Public Defense, qualified 
425.32 	legal services programs as defined under section 480.24, corrections agencies, and part-time 
425.33 	public defender offices. The applications shall be reviewed by the Judicial Council and, if 
426.1 	established, the board. In accordance with any recommendations from the board, the Judicial 
426.2 	Council shall distribute the funds available for this expenditure to selected recipients.
426.3 	(e) By January 15, 20152019, January 15, 2021, January 15, 2023, and by January 15, 
426.4 	20172024, the Judicial Council shall submit a report to the chairs and ranking minority 
426.5 	members of the house of representatives and senate committees with jurisdiction over 
426.6 	judiciary finance providing an accounting on the amounts collected and expended in the 
426.7 	previous biennium, including a list of fund recipients, the amounts awarded to each recipient, 
426.8 	and the technology purpose funded.
426.9 	(f) This subdivision The fee collected under paragraph (a) expires June 30, 20182023.
426.10 	This subdivision expires December 31, 2023.

426.11 	Sec. 6. Minnesota Statutes 2016, section 518.145, subdivision 2, is amended to read:
426.12 		Subd. 2.Reopening. On motion and upon terms as are just, the court may relieve a party 
426.13 	from a judgment and decree, order, or proceeding under this chapter, except for provisions 
426.14 	dissolving the bonds of marriage, annulling the marriage, or directing that the parties are 
426.15 	legally separated, and may order a new trial or grant other relief as may be just for the 
426.16 	following reasons:
426.17 	(1) mistake, inadvertence, surprise, or excusable neglect;
426.18 	(2) newly discovered evidence which by due diligence could not have been discovered 
426.19 	in time to move for a new trial under the Rules of Civil Procedure, rule 59.03;
426.20 	(3) fraud, whether denominated intrinsic or extrinsic, misrepresentation, or other 
426.21 	misconduct of an adverse party;
426.22 	(4) the judgment and decree or order is void; or
426.23 	(5) the judgment has been satisfied, released, or discharged, or a prior judgment and 
426.24 	decree or order upon which it is based has been reversed or otherwise vacated, or it is no 
426.25 	longer equitable that the judgment and decree or order should have prospective application.
426.26 	The motion must be made within a reasonable time, and for a reason under clause (1), 
426.27 	(2), or (3), other than a motion to declare the nonexistence of the father-child relationship, 
426.28 	not more than one year after the judgment and decree, order, or proceeding was entered or 
426.29 	taken. An action to declare the nonexistence of the father-child relationship must be made 
426.30 	within a reasonable time under clause (1), (2), or (3), and not more than three years after 
426.31 	the person bringing the action has reason to believe that the father is not the father of the 
426.32 	child. A motion under this subdivision does not affect the finality of a judgment and decree 
427.1 	or order or suspend its operation. This subdivision does not limit the power of a court to 
427.2 	entertain an independent action to relieve a party from a judgment and decree, order, or 
427.3 	proceeding or to grant relief to a party not actually personally notified as provided in the 
427.4 	Rules of Civil Procedure, or to set aside a judgment for fraud upon the court.

427.5 	Sec. 7. Minnesota Statutes 2016, section 590.11, subdivision 1, is amended to read:
427.6 		Subdivision 1.Definition Definitions. (a) For purposes of this section, the following 
427.7 	terms have the meanings given.
427.8 	(b) "Exonerated" means that:
427.9 	(1) a court of this state:
427.10 	(i) vacated or, reversed, or set aside a judgment of conviction on grounds consistent with 
427.11 	innocence and there are no remaining felony charges in effect against the petitioner from 
427.12 	the same behavioral incident, or if there are remaining felony charges against the petitioner 
427.13 	from the same behavioral incident, the prosecutor dismissed the dismisses those remaining 
427.14 	felony charges; or
427.15 	(ii) ordered a new trial on grounds consistent with innocence and the prosecutor dismissed 
427.16 	the charges or the petitioner was found not guilty at the new trial all felony charges against 
427.17 	the petitioner arising from the same behavioral incident or the petitioner was found not 
427.18 	guilty of all felony charges arising from the same behavioral incident at the new trial; and
427.19 	(2) the time for appeal of the order resulting in exoneration has expired or the order has 
427.20 	been affirmed and is final.; and
427.21 	(3) 60 days has passed since the judgment of conviction was reversed or vacated, and 
427.22 	the prosecutor has not filed any felony charges against the petitioner from the same behavioral 
427.23 	incident, or if the prosecutor did file felony charges against the petitioner from the same 
427.24 	behavioral incident, those felony charges were dismissed or the defendant was found not 
427.25 	guilty of those charges at the new trial.
427.26 	(c) "On grounds consistent with innocence" means either:
427.27 	(1) exonerated, through a pardon or sentence commutation, based on factual innocence; 
427.28 	or
427.29 	(2) exonerated because the judgment of conviction was vacated or reversed, or a new 
427.30 	trial was ordered, and there is any evidence of factual innocence whether it was available 
427.31 	at the time of investigation or trial or is newly discovered evidence.

428.1 	Sec. 8. Minnesota Statutes 2016, section 590.11, subdivision 2, is amended to read:
428.2 		Subd. 2.Procedure. A petition for an order declaring eligibility for compensation based 
428.3 	on exoneration under sections 611.362 to 611.368 must be brought before the district court 
428.4 	where the original conviction was obtained. The state must be represented by the office of 
428.5 	the prosecutor that obtained the conviction or the prosecutor's successor. Within 60 days 
428.6 	after the filing of the petition, the prosecutor must respond to the petition. A petition must 
428.7 	be brought within two years, but no less than 60 days after the petitioner is exonerated. 
428.8 	Persons released from custody after being exonerated before July 1, 2014, must commence 
428.9 	an action under this section within two years of July 1, 2014. If, before July 1, 2018, a person 
428.10 	did not meet both requirements of Minnesota Statutes 2016, section 590.11, subdivision 1, 
428.11 	paragraph (b), clause (1), item (i), and did not file a petition or the petition was denied, that 
428.12 	person may commence an action meeting the requirements under section 7, subdivision 1, 
428.13 	paragraph (b), clause (1), item (i), on or after July 1, 2018, and before July 1, 2020.

428.14 	Sec. 9. Minnesota Statutes 2016, section 590.11, subdivision 5, is amended to read:
428.15 		Subd. 5.Elements. (a) A claim for compensation arises if a person is eligible for 
428.16 	compensation under subdivision 3 and:
428.17 	(1) the person was convicted of a felony and served any part of the imposed sentence 
428.18 	in prison;
428.19 	(2) in cases where the person was convicted of multiple charges arising out of the same 
428.20 	behavioral incident, the person was exonerated for all of those charges;
428.21 	(3) the person did not commit or induce another person to commit perjury or fabricate 
428.22 	evidence to cause or bring about the conviction; and
428.23 	(4) the person was not serving a term of imprisonment incarceration for another crime 
428.24 	at the same time, provided that except:
428.25 	(i) if the person served additional time in prison due to the conviction that is the basis 
428.26 	of the claim, the person may make a claim for that portion of time served in prison during 
428.27 	which the person was serving no other sentence.; or
428.28 	(ii) if the person served additional executed sentences that had been previously stayed, 
428.29 	and the reason the additional stayed sentences were executed was due to the conviction that 
428.30 	is the basis for the claim.
429.1 	(b) A claimant may make a claim only for that portion of time served in prison during 
429.2 	which the claimant was serving no other sentence unless the other sentence arose from the 
429.3 	circumstances described in paragraph (a), clause (4), item (ii).
429.4 	(c) A confession or admission later found to be false or a guilty plea to a crime the 
429.5 	claimant did not commit does not constitute bringing about the claimant's conviction for 
429.6 	purposes of paragraph (a), clause (3).

429.7 	Sec. 10. Minnesota Statutes 2016, section 590.11, subdivision 7, is amended to read:
429.8 		Subd. 7.Order. If, after considering all the files and records admitted and any evidence 
429.9 	admitted at a hearing held pursuant to subdivision 4, the court determines that the petitioner 
429.10 	is eligible for compensation, the court shall issue an order containing its findings and, if 
429.11 	applicable, indicate the portion of the term of imprisonment incarceration for which the 
429.12 	petitioner is entitled to make a claim. The court shall notify the petitioner of the right to file 
429.13 	a claim for compensation under sections 611.362 to 611.368 and provide the petitioner with 
429.14 	a copy of those sections. The petitioner must acknowledge receipt of the notice and a copy 
429.15 	of those sections in writing or on the record before the court.

429.16 	Sec. 11. Minnesota Statutes 2016, section 609.015, subdivision 1, is amended to read:
429.17 		Subdivision 1.Common law crimes abolished. Common law crimes are abolished and 
429.18 	no act or omission is a crime unless made so by this chapter or by other applicable statute, 
429.19 	but. This does not prevent the use of common law rules in the construction or interpretation 
429.20 	of the provisions of this chapter or other statute except that a law reducing a sentence does 
429.21 	not apply to crimes committed prior to the date on which the change takes effect unless the 
429.22 	statute specifically states otherwise. Crimes committed prior to September 1, 1963, are not 
429.23 	affected thereby.

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

429.25 	Sec. 12. Minnesota Statutes 2016, section 611.365, subdivision 2, is amended to read:
429.26 		Subd. 2.Reimbursement; monetary damages; attorney fees. (a) The claimant is 
429.27 	entitled to reimbursement for all restitution, assessments, fees, court costs, and other sums 
429.28 	paid by the claimant as required by the judgment and sentence. In addition, the claimant is 
429.29 	entitled to monetary damages of not less than $50,000 for each year of imprisonment
429.30 	incarceration, and not less than $25,000 for each year served on supervised release or as a 
429.31 	registered predatory offender, to be prorated for partial years served. In calculating additional
429.32 	monetary damages, the panel shall consider:
430.1 	(1) economic damages, including reasonable attorney fees, lost wages, reimbursement 
430.2 	for costs associated with the claimant's criminal defense;
430.3 	(2) reimbursement for medical and dental expenses that the claimant already incurred 
430.4 	and future unpaid expenses expected to be incurred as a result of the claimant's imprisonment
430.5 	incarceration;
430.6 	(3) noneconomic damages for personal physical injuries or sickness and any nonphysical 
430.7 	injuries or sickness incurred as a result of imprisonment incarceration;
430.8 	(4) reimbursement for any tuition and fees paid for each semester successfully completed 
430.9 	by the claimant in an educational program or for employment skills and development training, 
430.10 	up to the equivalent value of a four-year degree at a public university, and reasonable 
430.11 	payment for future unpaid costs for education and training, not to exceed the anticipated 
430.12 	cost of a four-year degree at a public university;
430.13 	(5) reimbursement for paid or unpaid child support payments owed by the claimant that 
430.14 	became due, and interest on child support arrearages that accrued, during the time served 
430.15 	in prison provided that there shall be no reimbursement for any child support payments 
430.16 	already owed before the claimant's incarceration; and
430.17 	(6) reimbursement for reasonable costs of paid or unpaid reintegrative expenses for 
430.18 	immediate services secured by the claimant upon exoneration and release, including housing, 
430.19 	transportation and subsistence, reintegrative services, and medical and dental health care 
430.20 	costs.
430.21 	(b) The panel shall award the claimant reasonable attorney fees incurred in bringing a 
430.22 	claim under sections 611.362 to 611.368 and in obtaining an order of eligibility for 
430.23 	compensation based on exoneration under chapter 590.

430.24 	Sec. 13. Minnesota Statutes 2016, section 611.365, subdivision 3, is amended to read:
430.25 		Subd. 3.Limits on damages. There is no limit on the aggregate amount of damages 
430.26 	that may be awarded under this section. Damages that may be awarded under subdivision 
430.27 	2, paragraph (a), clauses (1) and (4) to (6), are limited to $100,000 per year of imprisonment
430.28 	incarceration and $50,000 per year served on supervised release or as a registered predatory 
430.29 	offender.

430.30 	Sec. 14. Minnesota Statutes 2016, section 611.367, is amended to read:
430.31 	611.367 COMPENSATING EXONERATED PERSONS; APPROPRIATIONS 
430.32 	PROCESS.
431.1 	The compensation panel established in section 611.363 shall forward an award of damages 
431.2 	under section 611.365 to the commissioner of management and budget. The commissioner 
431.3 	shall submit the amount of the award to the legislature for consideration as an appropriation
431.4 	during the next session of the legislature.

431.5 	Sec. 15. Minnesota Statutes 2016, section 611.368, is amended to read:
431.6 	611.368 SHORT TITLE.
431.7 	Sections 611.362 to 611.368 shall be cited as the "Imprisonment Incarceration and 
431.8 	Exoneration Remedies Act."

431.9 	Sec. 16. Minnesota Statutes 2016, section 626A.08, subdivision 2, is amended to read:
431.10 		Subd. 2.Application and orders. (a) Applications made and warrants issued under this 
431.11 	chapter shall be sealed by the judge. Custody of the applications and orders shall be wherever 
431.12 	the judge directs. Such applications and orders shall be disclosed only upon a showing of 
431.13 	good cause before a judge of the district court and shall not be destroyed except on order 
431.14 	of the issuing or denying judge, and in any event shall be kept for ten years.
431.15 	(b) Notwithstanding paragraph (a), the filing, sealing, and reporting requirements for 
431.16 	applications made and warrants issued under this chapter that involve location information 
431.17 	of electronic devices, as defined in section 626A.42, are governed by section 626A.42, 
431.18 	subdivision 4. However, applications and warrants, or portions of applications and warrants, 
431.19 	that do not involve location information of electronic devices continue to be governed by 
431.20 	paragraph (a).

431.21 	Sec. 17. Minnesota Statutes 2016, section 626A.37, subdivision 4, is amended to read:
431.22 		Subd. 4.Nondisclosure of existence of pen register, trap and trace device, or mobile 
431.23 	tracking device. (a) An order authorizing or approving the installation and use of a pen 
431.24 	register, trap and trace device, or a mobile tracking device must direct that:
431.25 	(1) the order be sealed until otherwise ordered by the court; and
431.26 	(2) the person owning or leasing the line to which the pen register or a trap and trace 
431.27 	device is attached, or who has been ordered by the court to provide assistance to the applicant, 
431.28 	not disclose the existence of the pen register, trap and trace device, mobile tracking device, 
431.29 	or the existence of the investigation to the listed subscriber, or to any other person, unless 
431.30 	or until otherwise ordered by the court.
432.1 	(b) Paragraph (a) does not apply to an order that involves location information of 
432.2 	electronic devices, as defined in section 626A.42. Instead, the filing, sealing, and reporting 
432.3 	requirements for those orders are governed by section 626A.42, subdivision 4. However, 
432.4 	any portion of an order that does not involve location information of electronic devices 
432.5 	continues to be governed by paragraph (a).

432.6 	ARTICLE 30
432.7 	PUBLIC SAFETY, CORRECTIONS, AND GENERAL CRIME

432.8 	Section 1. Minnesota Statutes 2016, section 171.24, is amended to read:
432.9 	171.24 VIOLATIONS; DRIVING WITHOUT VALID LICENSE.
432.10 		Subdivision 1.Driving after suspension; misdemeanor. Except as otherwise provided 
432.11 	in subdivision 5, a person is guilty of a misdemeanor if:
432.12 	(1) the person's driver's license or driving privilege has been suspended;
432.13 	(2) the person has been given notice of or reasonably should know of the suspension; 
432.14 	and
432.15 	(3) the person disobeys the order by operating in this state any motor vehicle, the 
432.16 	operation of which requires a driver's license, while the person's license or privilege is 
432.17 	suspended.
432.18 		Subd. 2.Driving after revocation; misdemeanor. Except as otherwise provided in 
432.19 	subdivision 5, a person is guilty of a misdemeanor if:
432.20 	(1) the person's driver's license or driving privilege has been revoked;
432.21 	(2) the person has been given notice of or reasonably should know of the revocation; 
432.22 	and
432.23 	(3) the person disobeys the order by operating in this state any motor vehicle, the 
432.24 	operation of which requires a driver's license, while the person's license or privilege is 
432.25 	revoked.
432.26 		Subd. 3.Driving after cancellation; misdemeanor. Except as otherwise provided in 
432.27 	subdivision 5, a person is guilty of a misdemeanor if:
432.28 	(1) the person's driver's license or driving privilege has been canceled;
432.29 	(2) the person has been given notice of or reasonably should know of the cancellation; 
432.30 	and
433.1 	(3) the person disobeys the order by operating in this state any motor vehicle, the 
433.2 	operation of which requires a driver's license, while the person's license or privilege is 
433.3 	canceled.
433.4 		Subd. 4.Driving after disqualification; misdemeanor. Except as otherwise provided 
433.5 	in subdivision 5, a person is guilty of a misdemeanor if the person:
433.6 	(1) has been disqualified from holding a commercial driver's license or been denied the 
433.7 	privilege to operate a commercial motor vehicle;
433.8 	(2) has been given notice of or reasonably should know of the disqualification; and
433.9 	(3) disobeys the order by operating in this state a commercial motor vehicle while the 
433.10 	person is disqualified to hold the license or privilege.
433.11 		Subd. 5.Gross misdemeanor violations. (a) A person is guilty of a gross misdemeanor 
433.12 	if:
433.13 	(1) the person's driver's license or driving privilege has been canceled or denied under 
433.14 	section 171.04, subdivision 1, clause (10);
433.15 	(2) the person has been given notice of or reasonably should know of the cancellation 
433.16 	or denial; and
433.17 	(3) the person disobeys the order by operating in this state any motor vehicle, the 
433.18 	operation of which requires a driver's license, while the person's license or privilege is 
433.19 	canceled or denied.
433.20 	(b) A person is guilty of a gross misdemeanor if the person:
433.21 	(1) violates this section;
433.22 	(i) and causes a collision resulting in substantial bodily harm, as defined in section 
433.23 	609.02, subdivision 7a, or death to another; or
433.24 	(ii) within ten years of the first of two prior convictions under this section; and
433.25 	(2) at the time of the violation the person's driver's license or driving privilege has been 
433.26 	suspended, revoked, or canceled, or the person has been disqualified from holding a 
433.27 	commercial driver's license or been denied the privilege to operate a commercial motor 
433.28 	vehicle, pursuant to:
433.29 	(i) section 169.89, subdivision 5; 169A.52; 169A.54; 171.05, subdivision 2b, paragraph 
433.30 	(d); 171.13, subdivision 3 or 4; 171.17, subdivision 1, clause (1) or (10); 171.177; 171.18, 
433.31 	subdivision 1, clause (2), (3), (4), (5), or (11); 171.32; or 260B.225, subdivision 9; or a 
434.1 	violation of section 169.13; 169.21; 169.444; 609.19, subdivision 1, clause (2); or 609.487, 
434.2 	subdivisions 3 to 5; or any violation of chapter 169A; or
434.3 	(ii) a law from another state similar to those described in item (i).
434.4 		Subd. 6.Responsibility for prosecution. (a) The attorney in the jurisdiction in which 
434.5 	the violation occurred who is responsible for prosecution of misdemeanor violations of this 
434.6 	section is also responsible for prosecution of gross misdemeanor violations of this section.
434.7 	(b) Nothing in this section or section 609.035 or 609.04 shall limit the power of the state 
434.8 	to prosecute or punish a person for conduct that constitutes any other crime under any other 
434.9 	law of this state.
434.10 		Subd. 7.Sufficiency of notice. (a) Notice of revocation, suspension, cancellation, or 
434.11 	disqualification is sufficient if personally served, or if mailed by first class mail to the 
434.12 	person's last known address or to the address listed on the person's driver's license. Notice 
434.13 	is also sufficient if the person was informed that revocation, suspension, cancellation, or 
434.14 	disqualification would be imposed upon a condition occurring or failing to occur, and where 
434.15 	the condition has in fact occurred or failed to occur.
434.16 	(b) It is not a defense that a person failed to file a change of address with the post office, 
434.17 	or failed to notify the Department of Public Safety of a change of name or address as required 
434.18 	under section 171.11.

434.19 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
434.20 	committed on or after that date.

434.21 	Sec. 2. Minnesota Statutes 2017 Supplement, section 171.3215, subdivision 2, is amended 
434.22 	to read:
434.23 		Subd. 2.Cancellation for disqualifying and other offenses. Within ten days of receiving 
434.24 	notice under section 631.40, subdivision 1a, or otherwise receiving notice for a nonresident 
434.25 	driver, that a school bus driver has been convicted of, or received a stay of adjudication for,
434.26 	a disqualifying offense, the commissioner shall permanently cancel the school bus driver's 
434.27 	endorsement on the offender's driver's license and in the case of a nonresident, the driver's 
434.28 	privilege to operate a school bus in Minnesota. A school bus driver whose endorsement or 
434.29 	privilege to operate a school bus in Minnesota has been permanently canceled may not 
434.30 	apply for reinstatement. Within ten days of receiving notice under section 631.40, subdivision 
434.31 	1a, or otherwise receiving notice for a nonresident driver, that a school bus driver has been 
434.32 	convicted of a violation of section 169A.20, or a similar statute or ordinance from another 
434.33 	state, and within ten days of revoking a school bus driver's license under section 169A.52
435.1 	or 171.177, the commissioner shall cancel the school bus driver's endorsement on the 
435.2 	offender's driver's license or the nonresident's privilege to operate a school bus in Minnesota 
435.3 	for five years. After five years, a school bus driver may apply to the commissioner for 
435.4 	reinstatement. Even after five years, cancellation of a school bus driver's endorsement or a 
435.5 	nonresident's privilege to operate a school bus in Minnesota for a violation under section 
435.6 	169A.20, sections 169A.50 to 169A.53, section 171.177, or a similar statute or ordinance 
435.7 	from another state, shall remain in effect until the driver provides proof of successful 
435.8 	completion of an alcohol or controlled substance treatment program. For a first offense, 
435.9 	proof of completion is required only if treatment was ordered as part of a chemical use 
435.10 	assessment. Within ten days of receiving notice under section 631.40, subdivision 1a, or 
435.11 	otherwise receiving notice for a nonresident driver, that a school bus driver has been 
435.12 	convicted of a fourth moving violation in the last three years, the commissioner shall cancel 
435.13 	the school bus driver's endorsement on the offender's driver's license or the nonresident's 
435.14 	privilege to operate a school bus in Minnesota until one year has elapsed since the last 
435.15 	conviction. A school bus driver who has no new convictions after one year may apply for 
435.16 	reinstatement. Upon canceling the offender's school bus driver's endorsement, the 
435.17 	commissioner shall immediately notify the licensed offender of the cancellation in writing, 
435.18 	by depositing in the United States post office a notice addressed to the licensed offender at 
435.19 	the licensed offender's last known address, with postage prepaid thereon.

435.20 	Sec. 3. Minnesota Statutes 2017 Supplement, section 171.3215, subdivision 3, is amended 
435.21 	to read:
435.22 		Subd. 3.Background check. Before issuing or renewing a driver's license with a school 
435.23 	bus driver's endorsement, the commissioner shall conduct an investigation to determine if 
435.24 	the applicant has been convicted of, or received a stay of adjudication for, committing a 
435.25 	disqualifying offense, four moving violations in the previous three years, a violation of 
435.26 	section 169A.20 or a similar statute or ordinance from another state, a gross misdemeanor, 
435.27 	or if the applicant's driver's license has been revoked under section 169A.52 or 171.177. 
435.28 	The commissioner shall not issue a new bus driver's endorsement and shall not renew an 
435.29 	existing bus driver's endorsement if the applicant has been convicted of committing a 
435.30 	disqualifying offense. The commissioner shall not issue a new bus driver's endorsement 
435.31 	and shall not renew an existing bus driver's endorsement if, within the previous five years, 
435.32 	the applicant has been convicted of committing a violation of section 169A.20, or a similar 
435.33 	statute or ordinance from another state, a gross misdemeanor, or if the applicant's driver's 
435.34 	license has been revoked under section 169A.52 or 171.177, or if, within the previous three 
435.35 	years, the applicant has been convicted of four moving violations. An applicant who has 
436.1 	been convicted of violating section 169A.20, or a similar statute or ordinance from another 
436.2 	state, or who has had a license revocation under section 169A.52 or 171.177 within the 
436.3 	previous ten years must show proof of successful completion of an alcohol or controlled 
436.4 	substance treatment program in order to receive a bus driver's endorsement. For a first 
436.5 	offense, proof of completion is required only if treatment was ordered as part of a chemical 
436.6 	use assessment. A school district or contractor that employs a nonresident school bus driver 
436.7 	must conduct a background check of the employee's driving record and criminal history in 
436.8 	both Minnesota and the driver's state of residence. Convictions for disqualifying offenses, 
436.9 	gross misdemeanors, a fourth moving violation within the previous three years, or violations 
436.10 	of section 169A.20, or a similar statute or ordinance in another state, must be reported to 
436.11 	the Department of Public Safety.

436.12 	Sec. 4. Minnesota Statutes 2016, section 242.192, is amended to read:
436.13 	242.192 CHARGES TO COUNTIES.
436.14 	The commissioner shall charge counties or other appropriate jurisdictions 65 percent of 
436.15 	the per diem cost of confinement, excluding educational costs and nonbillable service, of 
436.16 	juveniles at the Minnesota Correctional Facility-Red Wing and of juvenile females committed 
436.17 	to the commissioner of corrections. This charge applies to juveniles committed to the 
436.18 	commissioner of corrections and juveniles admitted to the Minnesota Correctional 
436.19 	Facility-Red Wing under established admissions criteria. This charge applies to both counties 
436.20 	that participate in the Community Corrections Act and those that do not. The commissioner 
436.21 	shall determine the per diem cost of confinement based on projected population, pricing 
436.22 	incentives, and market conditions, and the requirement that expense and revenue balance 
436.23 	out over a period of two years. All money received under this section must be deposited in 
436.24 	the state treasury and credited to the general fund.

436.25 	Sec. 5. Minnesota Statutes 2016, section 299A.707, is amended by adding a subdivision 
436.26 	to read:
436.27 		Subd. 6.Annual transfer. In fiscal year 2018 and each year thereafter, the commissioner 
436.28 	of management and budget shall transfer $461,000 from the general fund to the community 
436.29 	justice reinvestment account.

437.1 	Sec. 6. Minnesota Statutes 2016, section 626.8452, is amended by adding a subdivision 
437.2 	to read:
437.3 		Subd. 6.Prohibition on disarming local law enforcement officers. Unless expressly 
437.4 	authorized under another section of law, a mayor, city council, county board, or chief law 
437.5 	enforcement officer may not disarm a peace officer who is in good standing and not currently 
437.6 	under investigation or subject to disciplinary action.

437.7 	Sec. 7. Minnesota Statutes 2016, section 631.40, subdivision 1a, is amended to read:
437.8 		Subd. 1a.Certified copy of disqualifying offense convictions sent to public safety 
437.9 	and school districts. When a person is convicted of, or receives a stay of adjudication for, 
437.10 	committing a disqualifying offense, as defined in section 171.3215, subdivision 1, a gross 
437.11 	misdemeanor, a fourth moving violation within the previous three years, or a violation of 
437.12 	section 169A.20, or a similar statute or ordinance from another state, the court shall determine 
437.13 	whether the offender is a school bus driver as defined in section 171.3215, subdivision 1, 
437.14 	whether the offender possesses a school bus driver's endorsement on the offender's driver's 
437.15 	license and in what school districts the offender drives a school bus. If the offender is a 
437.16 	school bus driver or possesses a school bus driver's endorsement, the court administrator 
437.17 	shall send a certified copy of the conviction or stay of adjudication to the Department of 
437.18 	Public Safety and to the school districts in which the offender drives a school bus within 
437.19 	ten days after the conviction or stay of adjudication.

437.20 	Sec. 8. TASK FORCE ON MISSING AND MURDERED INDIGENOUS WOMEN.
 437.21 		Subdivision 1.Creation and duties. (a) By September 1, 2018, the commissioner, in 
437.22 	consultation with the Minnesota Indian Affairs Council, shall appoint members to the Task 
437.23 	Force on Missing and Murdered Indigenous Women to advise the commissioner and report 
437.24 	to the legislature on recommendations to reduce and end violence against indigenous women 
437.25 	and girls in Minnesota. The task force shall also serve as a liaison between the commissioner 
437.26 	and agencies and nongovernmental organizations that provide services to victims, victims' 
437.27 	families, and victims' communities. Task force members may receive expense reimbursement 
437.28 	as specified in Minnesota Statutes, section 15.059, subdivision 6.
437.29 	(b) The Task Force on Missing and Murdered Indigenous Women must examine and 
437.30 	report on the following:
437.31 	(1) the systemic causes behind violence that indigenous women and girls experience, 
437.32 	including patterns and underlying factors that explain why disproportionately high levels 
438.1 	of violence occur against indigenous women and girls, including underlying historical, 
438.2 	social, economic, institutional, and cultural factors which may contribute to the violence;
438.3 	(2) appropriate methods for tracking and collecting data on violence against indigenous 
438.4 	women and girls, including data on missing and murdered indigenous women and girls;
438.5 	(3) policies and institutions such as policing, child welfare, coroner practices, and other 
438.6 	governmental practices that impact violence against indigenous women and girls and the 
438.7 	investigation and prosecution of crimes of gender violence against indigenous people;
438.8 	(4) measures necessary to address and reduce violence against indigenous women and 
438.9 	girls; and
438.10 	(5) measures to help victims, victims' families, and victims' communities prevent and 
438.11 	heal from violence that occurs against indigenous women and girls.
438.12 	(c) For the purposes of this section, "commissioner" means the commissioner of public 
438.13 	safety and "nongovernmental organizations" means nonprofit, nongovernmental organizations 
438.14 	that provide legal, social, or other community services.
438.15 		Subd. 2.Membership. (a) To the extent practicable, the Task Force on Missing and 
438.16 	Murdered Indigenous Women shall consist of the following individuals, or their designees, 
438.17 	who are knowledgeable in crime victims' rights or violence protection and, unless otherwise 
438.18 	specified, members shall be appointed by the commissioner:
438.19 	(1) two members of the senate, one appointed by the majority leader and one appointed 
438.20 	by the minority leader;
438.21 	(2) two members of the house of representatives, one appointed by the speaker of the 
438.22 	house and one appointed by the minority leader;
438.23 	(3) two representatives from among the following:
438.24 	(i) the Minnesota Chiefs of Police Association;
438.25 	(ii) the Minnesota Sheriffs' Association;
438.26 	(iii) the Bureau of Criminal Apprehension;
438.27 	(iv) the Minnesota Police and Peace Officers Association; or
438.28 	(v) a peace officer who works for and resides on a federally recognized American Indian 
438.29 	reservation in Minnesota;
438.30 	(4) a representative from among the following:
438.31 	(i) the Minnesota County Attorneys Association;
439.1 	(ii) the United States Attorney's Office; or
439.2 	(iii) a judge or attorney working in juvenile court;
439.3 	(5) a county coroner or a representative from a statewide coroner's association or a 
439.4 	representative of the Department of Health;
439.5 	(6) two representatives for tribal governments, with a focus on individuals who work 
439.6 	with victims of violence or their families; and
439.7 	(7) four representatives from among the following:
439.8 	(i) a tribal, statewide, or local organization that provides legal services to indigenous 
439.9 	women and girls;
439.10 	(ii) a tribal, statewide, or local organization that provides advocacy or counseling for 
439.11 	indigenous women and girls who have been victims of violence;
439.12 	(iii) a tribal, statewide, or local organization that provides services to indigenous women 
439.13 	and girls;
439.14 	(iv) a representative from the Minnesota Indian Women's Sexual Assault Coalition;
439.15 	(v) a representative from Mending the Sacred Hoop;
439.16 	(vi) a representative from an Indian health organization or agency; or
439.17 	(vii) an indigenous woman who is a survivor of gender violence.
439.18 	(b) Members of the task force serve at the pleasure of the appointing authority or until 
439.19 	the task force expires. Vacancies shall be filled by the commissioner consistent with the 
439.20 	qualifications of the vacating member required by this subdivision.
439.21 		Subd. 3.Officers; meetings. (a) The task force shall be chaired by one of the task force's 
439.22 	legislative members. The legislative members shall annually elect a chair and vice-chair 
439.23 	from among the task force's legislative members, and may elect other officers as necessary. 
439.24 	The task force shall meet at least quarterly, or upon the call of its chair. The task force shall 
439.25 	meet sufficiently enough to accomplish the tasks identified in this section. Meetings of the 
439.26 	task force are subject to Minnesota Statutes, chapter 13D. The task force shall seek out and 
439.27 	enlist the cooperation and assistance of nongovernmental organizations, community and 
439.28 	advocacy organizations working with the American Indian community, and academic 
439.29 	researchers and experts, specifically those specializing in violence against indigenous women 
439.30 	and girls, representing diverse communities disproportionately affected by violence against 
439.31 	women and girls, or focusing on issues related to gender violence and violence against 
439.32 	indigenous women and girls.
440.1 	(b) The commissioner shall convene the first meeting of the task force no later than 
440.2 	October 1, 2018, and shall provide meeting space and administrative assistance as necessary 
440.3 	for the task force to conduct its work.
440.4 		Subd. 4.Report. The task force shall report to the chairs and ranking minority members 
440.5 	of the legislative committees with jurisdiction over public safety, human services, and state 
440.6 	government on the work of the task force, including but not limited to the issues to be 
440.7 	examined in subdivision 1, and shall include in the report institutional policies and practices 
440.8 	or proposed institutional policies and practices that are effective in reducing gender violence 
440.9 	and increasing the safety of indigenous women and girls. The report shall include 
440.10 	recommendations to reduce and end violence against indigenous women and girls and help 
440.11 	victims and communities heal from gender violence and violence against indigenous women 
440.12 	and girls. The report shall be submitted to the legislative committees by June 30, 2020.
440.13 		Subd. 5.Expiration. Notwithstanding Minnesota Statutes, section 15.059, the task force 
440.14 	expires June 30, 2020.

440.15 	Sec. 9. SUPERSEDING AMENDMENT.
 440.16 	The amendment to Minnesota Statutes, section 631.40, subdivision 1a, in section 7 
440.17 	supersedes any other amendment to Minnesota Statutes, section 631.40, subdivision 1a, 
440.18 	enacted in this act.

440.19 	Sec. 10. REVISOR'S INSTRUCTION.
 440.20 	The revisor of statutes shall make necessary cross-reference changes in Minnesota 
440.21 	Statutes and Minnesota Rules resulting from the amendments to Minnesota Statutes, sections 
440.22 	609.2112, subdivision 1, and 609.2114, subdivision 1, in Laws 2016, chapter 109.

440.23 	Sec. 11.  REPEALER.
 440.24 	Minnesota Statutes 2016, section 401.13, is repealed.

440.25 	ARTICLE 31
440.26 	SEX OFFENDERS

440.27 	Section 1. Minnesota Statutes 2016, section 260.012, is amended to read:
440.28 	260.012 DUTY TO ENSURE PLACEMENT PREVENTION AND FAMILY 
440.29 	REUNIFICATION; REASONABLE EFFORTS.
441.1 	(a) Once a child alleged to be in need of protection or services is under the court's 
441.2 	jurisdiction, the court shall ensure that reasonable efforts, including culturally appropriate 
441.3 	services, by the social services agency are made to prevent placement or to eliminate the 
441.4 	need for removal and to reunite the child with the child's family at the earliest possible time, 
441.5 	and the court must ensure that the responsible social services agency makes reasonable 
441.6 	efforts to finalize an alternative permanent plan for the child as provided in paragraph (e). 
441.7 	In determining reasonable efforts to be made with respect to a child and in making those 
441.8 	reasonable efforts, the child's best interests, health, and safety must be of paramount concern. 
441.9 	Reasonable efforts to prevent placement and for rehabilitation and reunification are always 
441.10 	required except upon a determination by the court that a petition has been filed stating a 
441.11 	prima facie case that:
441.12 	(1) the parent has subjected a child to egregious harm as defined in section 260C.007, 
441.13 	subdivision 14;
441.14 	(2) the parental rights of the parent to another child have been terminated involuntarily;
441.15 	(3) the child is an abandoned infant under section 260C.301, subdivision 2, paragraph 
441.16 	(a), clause (2);
441.17 	(4) the parent's custodial rights to another child have been involuntarily transferred to a 
441.18 	relative under Minnesota Statutes 2010, section 260C.201, subdivision 11, paragraph (d), 
441.19 	clause (1), section 260C.515, subdivision 4, or a similar law of another jurisdiction;
441.20 	(5) the parent has committed sexual abuse as defined in section 626.556, subdivision 2, 
441.21 	against the child or another child of the parent;
441.22 	(6) the parent has committed an offense that requires registration as a predatory offender 
441.23 	under section 243.166, subdivision 1b, paragraph (a) or (b); or
441.24 	(7) the provision of services or further services for the purpose of reunification is futile 
441.25 	and therefore unreasonable under the circumstances.
441.26 	(b) When the court makes one of the prima facie determinations under paragraph (a), 
441.27 	either permanency pleadings under section 260C.505, or a termination of parental rights 
441.28 	petition under sections 260C.141 and 260C.301 must be filed. A permanency hearing under 
441.29 	sections 260C.503 to 260C.521 must be held within 30 days of this determination.
441.30 	(c) In the case of an Indian child, in proceedings under sections 260B.178, 260C.178, 
441.31 	260C.201, 260C.202, 260C.204, 260C.301, or 260C.503 to 260C.521, the juvenile court 
441.32 	must make findings and conclusions consistent with the Indian Child Welfare Act of 1978, 
441.33 	United States Code, title 25, section 1901 et seq., as to the provision of active efforts. In 
442.1 	cases governed by the Indian Child Welfare Act of 1978, United States Code, title 25, section 
442.2 	1901, the responsible social services agency must provide active efforts as required under 
442.3 	United States Code, title 25, section 1911(d).
442.4 	(d) "Reasonable efforts to prevent placement" means:
442.5 	(1) the agency has made reasonable efforts to prevent the placement of the child in foster 
442.6 	care by working with the family to develop and implement a safety plan; or
442.7 	(2) given the particular circumstances of the child and family at the time of the child's 
442.8 	removal, there are no services or efforts available which could allow the child to safely 
442.9 	remain in the home.
442.10 	(e) "Reasonable efforts to finalize a permanent plan for the child" means due diligence 
442.11 	by the responsible social services agency to:
442.12 	(1) reunify the child with the parent or guardian from whom the child was removed;
442.13 	(2) assess a noncustodial parent's ability to provide day-to-day care for the child and, 
442.14 	where appropriate, provide services necessary to enable the noncustodial parent to safely 
442.15 	provide the care, as required by section 260C.219;
442.16 	(3) conduct a relative search to identify and provide notice to adult relatives as required 
442.17 	under section 260C.221;
442.18 	(4) place siblings removed from their home in the same home for foster care or adoption, 
442.19 	or transfer permanent legal and physical custody to a relative. Visitation between siblings 
442.20 	who are not in the same foster care, adoption, or custodial placement or facility shall be 
442.21 	consistent with section 260C.212, subdivision 2; and
442.22 	(5) when the child cannot return to the parent or guardian from whom the child was 
442.23 	removed, to plan for and finalize a safe and legally permanent alternative home for the child, 
442.24 	and considers permanent alternative homes for the child inside or outside of the state, 
442.25 	preferably through adoption or transfer of permanent legal and physical custody of the child.
442.26 	(f) Reasonable efforts are made upon the exercise of due diligence by the responsible 
442.27 	social services agency to use culturally appropriate and available services to meet the needs 
442.28 	of the child and the child's family. Services may include those provided by the responsible 
442.29 	social services agency and other culturally appropriate services available in the community. 
442.30 	At each stage of the proceedings where the court is required to review the appropriateness 
442.31 	of the responsible social services agency's reasonable efforts as described in paragraphs (a), 
442.32 	(d), and (e), the social services agency has the burden of demonstrating that:
443.1 	(1) it has made reasonable efforts to prevent placement of the child in foster care;
443.2 	(2) it has made reasonable efforts to eliminate the need for removal of the child from 
443.3 	the child's home and to reunify the child with the child's family at the earliest possible time;
443.4 	(3) it has made reasonable efforts to finalize an alternative permanent home for the child, 
443.5 	and considers permanent alternative homes for the child inside or outside of the state; or
443.6 	(4) reasonable efforts to prevent placement and to reunify the child with the parent or 
443.7 	guardian are not required. The agency may meet this burden by stating facts in a sworn 
443.8 	petition filed under section 260C.141, by filing an affidavit summarizing the agency's 
443.9 	reasonable efforts or facts the agency believes demonstrate there is no need for reasonable 
443.10 	efforts to reunify the parent and child, or through testimony or a certified report required 
443.11 	under juvenile court rules.
443.12 	(g) Once the court determines that reasonable efforts for reunification are not required 
443.13 	because the court has made one of the prima facie determinations under paragraph (a), the 
443.14 	court may only require reasonable efforts for reunification after a hearing according to 
443.15 	section 260C.163, where the court finds there is not clear and convincing evidence of the 
443.16 	facts upon which the court based its prima facie determination. In this case when there is 
443.17 	clear and convincing evidence that the child is in need of protection or services, the court 
443.18 	may find the child in need of protection or services and order any of the dispositions available 
443.19 	under section 260C.201, subdivision 1. Reunification of a child with a parent is not required 
443.20 	if the parent has been convicted of:
443.21 	(1) a violation of, or an attempt or conspiracy to commit a violation of, sections 609.185
443.22 	to 609.20; 609.222, subdivision 2; or 609.223 in regard to another child of the parent;
443.23 	(2) a violation of section 609.222, subdivision 2; or 609.223, in regard to the child;
443.24 	(3) a violation of, or an attempt or conspiracy to commit a violation of, United States 
443.25 	Code, title 18, section 1111(a) or 1112(a), in regard to another child of the parent;
443.26 	(4) committing an offense that constitutes sexual abuse as defined in section 626.556, 
443.27 	subdivision 2, against the child or another child of the parent; or
443.28 	(5) an offense that requires registration as a predatory offender under section 243.166, 
443.29 	subdivision 1b, paragraph (a) or (b).
443.30 	Reunification is also not required when a parent receives a stay of adjudication pursuant to 
443.31 	section 609.095, paragraph (b), for an offense that constitutes sexual abuse under clause 
443.32 	(4).
444.1 	(h) The juvenile court, in proceedings under sections 260B.178, 260C.178, 260C.201, 
444.2 	260C.202, 260C.204, 260C.301, or 260C.503 to 260C.521, shall make findings and 
444.3 	conclusions as to the provision of reasonable efforts. When determining whether reasonable 
444.4 	efforts have been made, the court shall consider whether services to the child and family 
444.5 	were:
444.6 	(1) relevant to the safety and protection of the child;
444.7 	(2) adequate to meet the needs of the child and family;
444.8 	(3) culturally appropriate;
444.9 	(4) available and accessible;
444.10 	(5) consistent and timely; and
444.11 	(6) realistic under the circumstances.
444.12 	In the alternative, the court may determine that provision of services or further services 
444.13 	for the purpose of rehabilitation is futile and therefore unreasonable under the circumstances 
444.14 	or that reasonable efforts are not required as provided in paragraph (a).
444.15 	(i) This section does not prevent out-of-home placement for treatment of a child with a 
444.16 	mental disability when it is determined to be medically necessary as a result of the child's 
444.17 	diagnostic assessment or individual treatment plan indicates that appropriate and necessary 
444.18 	treatment cannot be effectively provided outside of a residential or inpatient treatment 
444.19 	program and the level or intensity of supervision and treatment cannot be effectively and 
444.20 	safely provided in the child's home or community and it is determined that a residential 
444.21 	treatment setting is the least restrictive setting that is appropriate to the needs of the child.
444.22 	(j) If continuation of reasonable efforts to prevent placement or reunify the child with 
444.23 	the parent or guardian from whom the child was removed is determined by the court to be 
444.24 	inconsistent with the permanent plan for the child or upon the court making one of the prima 
444.25 	facie determinations under paragraph (a), reasonable efforts must be made to place the child 
444.26 	in a timely manner in a safe and permanent home and to complete whatever steps are 
444.27 	necessary to legally finalize the permanent placement of the child.
444.28 	(k) Reasonable efforts to place a child for adoption or in another permanent placement 
444.29 	may be made concurrently with reasonable efforts to prevent placement or to reunify the 
444.30 	child with the parent or guardian from whom the child was removed. When the responsible 
444.31 	social services agency decides to concurrently make reasonable efforts for both reunification 
444.32 	and permanent placement away from the parent under paragraph (a), the agency shall disclose 
444.33 	its decision and both plans for concurrent reasonable efforts to all parties and the court. 
445.1 	When the agency discloses its decision to proceed on both plans for reunification and 
445.2 	permanent placement away from the parent, the court's review of the agency's reasonable 
445.3 	efforts shall include the agency's efforts under both plans.

445.4 	Sec. 2. Minnesota Statutes 2016, section 609.095, is amended to read:
445.5 	609.095 LIMITS OF SENTENCES.
445.6 	(a) The legislature has the exclusive authority to define crimes and offenses and the 
445.7 	range of the sentences or punishments for their violation. No other or different sentence or 
445.8 	punishment shall be imposed for the commission of a crime than is authorized by this chapter 
445.9 	or other applicable law.
445.10 	(b) Except as provided in section 152.18 or 609.375, or upon agreement of the parties, 
445.11 	a court may not refuse to adjudicate the guilt of a defendant who tenders a guilty plea in 
445.12 	accordance with Minnesota Rules of Criminal Procedure, rule 15, or who has been found 
445.13 	guilty by a court or jury following a trial. A decision by the court to issue a stay of 
445.14 	adjudication under this paragraph for a charge of violating section 243.166, 609.342, 609.343, 
445.15 	609.344, 609.345, 609.3451, subdivision 3, or 609.3453, must be justified in writing and 
445.16 	on the record.
445.17 	(c) Paragraph (b) does not supersede Minnesota Rules of Criminal Procedure, rule 26.04.

445.18 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
445.19 	committed on or after that date.

445.20 	Sec. 3. Minnesota Statutes 2016, section 609.341, subdivision 10, is amended to read:
445.21 		Subd. 10.Current or recent position of authority. "Current or recent position of 
445.22 	authority" includes but is not limited to any person who is a parent or acting in the place of 
445.23 	a parent and charged with or assumes any of a parent's rights, duties or responsibilities to 
445.24 	a child, or a person who is charged with or assumes any duty or responsibility for the health, 
445.25 	welfare, or supervision of a child, either independently or through another, no matter how 
445.26 	brief, at the time of or within 120 days immediately preceding the act. For the purposes of 
445.27 	subdivision 11, "position of authority" includes a psychotherapist.

445.28 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
445.29 	committed on or after that date.

446.1 	Sec. 4. Minnesota Statutes 2016, section 609.342, subdivision 1, is amended to read:
446.2 		Subdivision 1.Crime defined. A person who engages in sexual penetration with another 
446.3 	person, or in sexual contact with a person under 13 years of age as defined in section 609.341, 
446.4 	subdivision 11, paragraph (c), is guilty of criminal sexual conduct in the first degree if any 
446.5 	of the following circumstances exists:
446.6 	(a) the complainant is under 13 years of age and the actor is more than 36 months older 
446.7 	than the complainant. Neither mistake as to the complainant's age nor consent to the act by 
446.8 	the complainant is a defense;
446.9 	(b) the complainant is at least 13 years of age but less than 16 years of age and the actor 
446.10 	is more than 48 months older than the complainant and in a current or recent position of 
446.11 	authority over the complainant. Neither mistake as to the complainant's age nor consent to 
446.12 	the act by the complainant is a defense;
446.13 	(c) circumstances existing at the time of the act cause the complainant to have a 
446.14 	reasonable fear of imminent great bodily harm to the complainant or another;
446.15 	(d) the actor is armed with a dangerous weapon or any article used or fashioned in a 
446.16 	manner to lead the complainant to reasonably believe it to be a dangerous weapon and uses 
446.17 	or threatens to use the weapon or article to cause the complainant to submit;
446.18 	(e) the actor causes personal injury to the complainant, and either of the following 
446.19 	circumstances exist:
446.20 	(i) the actor uses force or coercion to accomplish sexual penetration; or
446.21 	(ii) the actor knows or has reason to know that the complainant is mentally impaired, 
446.22 	mentally incapacitated, or physically helpless;
446.23 	(f) the actor is aided or abetted by one or more accomplices within the meaning of section 
446.24 	609.05, and either of the following circumstances exists:
446.25 	(i) an accomplice uses force or coercion to cause the complainant to submit; or
446.26 	(ii) an accomplice is armed with a dangerous weapon or any article used or fashioned 
446.27 	in a manner to lead the complainant reasonably to believe it to be a dangerous weapon and 
446.28 	uses or threatens to use the weapon or article to cause the complainant to submit;
446.29 	(g) the actor has a significant relationship to the complainant and the complainant was 
446.30 	under 16 years of age at the time of the sexual penetration. Neither mistake as to the 
446.31 	complainant's age nor consent to the act by the complainant is a defense; or
447.1 	(h) the actor has a significant relationship to the complainant, the complainant was under 
447.2 	16 years of age at the time of the sexual penetration, and:
447.3 	(i) the actor or an accomplice used force or coercion to accomplish the penetration;
447.4 	(ii) the complainant suffered personal injury; or
447.5 	(iii) the sexual abuse involved multiple acts committed over an extended period of time.
447.6 	Neither mistake as to the complainant's age nor consent to the act by the complainant is 
447.7 	a defense.

447.8 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
447.9 	committed on or after that date.

447.10 	Sec. 5. Minnesota Statutes 2016, section 609.343, subdivision 1, is amended to read:
447.11 		Subdivision 1.Crime defined. A person who engages in sexual contact with another 
447.12 	person is guilty of criminal sexual conduct in the second degree if any of the following 
447.13 	circumstances exists:
447.14 	(a) the complainant is under 13 years of age and the actor is more than 36 months older 
447.15 	than the complainant. Neither mistake as to the complainant's age nor consent to the act by 
447.16 	the complainant is a defense. In a prosecution under this clause, the state is not required to 
447.17 	prove that the sexual contact was coerced;
447.18 	(b) the complainant is at least 13 but less than 16 years of age and the actor is more than 
447.19 	48 months older than the complainant and in a current or recent position of authority over 
447.20 	the complainant. Neither mistake as to the complainant's age nor consent to the act by the 
447.21 	complainant is a defense;
447.22 	(c) circumstances existing at the time of the act cause the complainant to have a 
447.23 	reasonable fear of imminent great bodily harm to the complainant or another;
447.24 	(d) the actor is armed with a dangerous weapon or any article used or fashioned in a 
447.25 	manner to lead the complainant to reasonably believe it to be a dangerous weapon and uses 
447.26 	or threatens to use the dangerous weapon to cause the complainant to submit;
447.27 	(e) the actor causes personal injury to the complainant, and either of the following 
447.28 	circumstances exist:
447.29 	(i) the actor uses force or coercion to accomplish the sexual contact; or
447.30 	(ii) the actor knows or has reason to know that the complainant is mentally impaired, 
447.31 	mentally incapacitated, or physically helpless;
448.1 	(f) the actor is aided or abetted by one or more accomplices within the meaning of section 
448.2 	609.05, and either of the following circumstances exists:
448.3 	(i) an accomplice uses force or coercion to cause the complainant to submit; or
448.4 	(ii) an accomplice is armed with a dangerous weapon or any article used or fashioned 
448.5 	in a manner to lead the complainant to reasonably believe it to be a dangerous weapon and 
448.6 	uses or threatens to use the weapon or article to cause the complainant to submit;
448.7 	(g) the actor has a significant relationship to the complainant and the complainant was 
448.8 	under 16 years of age at the time of the sexual contact. Neither mistake as to the complainant's 
448.9 	age nor consent to the act by the complainant is a defense; or
448.10 	(h) the actor has a significant relationship to the complainant, the complainant was under 
448.11 	16 years of age at the time of the sexual contact, and:
448.12 	(i) the actor or an accomplice used force or coercion to accomplish the contact;
448.13 	(ii) the complainant suffered personal injury; or
448.14 	(iii) the sexual abuse involved multiple acts committed over an extended period of time.
448.15 	Neither mistake as to the complainant's age nor consent to the act by the complainant is 
448.16 	a defense.

448.17 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
448.18 	committed on or after that date.

448.19 	Sec. 6. Minnesota Statutes 2016, section 609.344, subdivision 1, is amended to read:
448.20 		Subdivision 1.Crime defined. A person who engages in sexual penetration with another 
448.21 	person is guilty of criminal sexual conduct in the third degree if any of the following 
448.22 	circumstances exists:
448.23 	(a) the complainant is under 13 years of age and the actor is no more than 36 months 
448.24 	older than the complainant. Neither mistake as to the complainant's age nor consent to the 
448.25 	act by the complainant shall be a defense;
448.26 	(b) the complainant is at least 13 but less than 16 years of age and the actor is more than 
448.27 	24 months older than the complainant. In any such case if the actor is no more than 120 
448.28 	months older than the complainant, it shall be an affirmative defense, which must be proved 
448.29 	by a preponderance of the evidence, that the actor reasonably believes the complainant to 
448.30 	be 16 years of age or older. In all other cases, mistake as to the complainant's age shall not 
448.31 	be a defense. Consent by the complainant is not a defense;
449.1 	(c) the actor uses force or coercion to accomplish the penetration;
449.2 	(d) the actor knows or has reason to know that the complainant is mentally impaired, 
449.3 	mentally incapacitated, or physically helpless;
449.4 	(e) the complainant is at least 16 but less than 18 years of age and the actor is more than 
449.5 	48 months older than the complainant and in a current or recent position of authority over 
449.6 	the complainant. Neither mistake as to the complainant's age nor consent to the act by the 
449.7 	complainant is a defense;
449.8 	(f) the actor has a significant relationship to the complainant and the complainant was 
449.9 	at least 16 but under 18 years of age at the time of the sexual penetration. Neither mistake 
449.10 	as to the complainant's age nor consent to the act by the complainant is a defense;
449.11 	(g) the actor has a significant relationship to the complainant, the complainant was at 
449.12 	least 16 but under 18 years of age at the time of the sexual penetration, and:
449.13 	(i) the actor or an accomplice used force or coercion to accomplish the penetration;
449.14 	(ii) the complainant suffered personal injury; or
449.15 	(iii) the sexual abuse involved multiple acts committed over an extended period of time.
449.16 	Neither mistake as to the complainant's age nor consent to the act by the complainant is 
449.17 	a defense;
449.18 	(h) the actor is a psychotherapist and the complainant is a patient of the psychotherapist 
449.19 	and the sexual penetration occurred:
449.20 	(i) during the psychotherapy session; or
449.21 	(ii) outside the psychotherapy session if an ongoing psychotherapist-patient relationship 
449.22 	exists.
449.23 	Consent by the complainant is not a defense;
449.24 	(i) the actor is a psychotherapist and the complainant is a former patient of the 
449.25 	psychotherapist and the former patient is emotionally dependent upon the psychotherapist;
449.26 	(j) the actor is a psychotherapist and the complainant is a patient or former patient and 
449.27 	the sexual penetration occurred by means of therapeutic deception. Consent by the 
449.28 	complainant is not a defense;
449.29 	(k) the actor accomplishes the sexual penetration by means of deception or false 
449.30 	representation that the penetration is for a bona fide medical purpose. Consent by the 
449.31 	complainant is not a defense;
450.1 	(1) the actor is or purports to be a member of the clergy, the complainant is not married 
450.2 	to the actor, and:
450.3 	(i) the sexual penetration occurred during the course of a meeting in which the 
450.4 	complainant sought or received religious or spiritual advice, aid, or comfort from the actor 
450.5 	in private; or
450.6 	(ii) the sexual penetration occurred during a period of time in which the complainant 
450.7 	was meeting on an ongoing basis with the actor to seek or receive religious or spiritual 
450.8 	advice, aid, or comfort in private. Consent by the complainant is not a defense;
450.9 	(m) the actor is an employee, independent contractor, or volunteer of a state, county, 
450.10 	city, or privately operated adult or juvenile correctional system, or secure treatment facility, 
450.11 	or treatment facility providing services to clients civilly committed as mentally ill and 
450.12 	dangerous, sexually dangerous persons, or sexual psychopathic personalities, including, but 
450.13 	not limited to, jails, prisons, detention centers, or work release facilities, and the complainant 
450.14 	is a resident of a facility or under supervision of the correctional system. Consent by the 
450.15 	complainant is not a defense;
450.16 	(n) the actor provides or is an agent of an entity that provides special transportation 
450.17 	service, the complainant used the special transportation service, and the sexual penetration 
450.18 	occurred during or immediately before or after the actor transported the complainant. Consent 
450.19 	by the complainant is not a defense; or
450.20 	(o) the actor performs massage or other bodywork for hire, the complainant was a user 
450.21 	of one of those services, and nonconsensual sexual penetration occurred during or 
450.22 	immediately before or after the actor performed or was hired to perform one of those services 
450.23 	for the complainant; or
450.24 	(p) the actor is a peace officer, as defined in section 626.84, and the officer physically 
450.25 	or constructively restrains the complainant or the complainant does not reasonably feel free 
450.26 	to leave the officer's presence. Consent by the complainant is not a defense. This paragraph 
450.27 	does not apply to any penetration of the mouth, genitals, or anus during a lawful search.

450.28 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
450.29 	committed on or after that date.

450.30 	Sec. 7. Minnesota Statutes 2016, section 609.345, subdivision 1, is amended to read:
450.31 		Subdivision 1.Crime defined. A person who engages in sexual contact with another 
450.32 	person is guilty of criminal sexual conduct in the fourth degree if any of the following 
450.33 	circumstances exists:
451.1 	(a) the complainant is under 13 years of age and the actor is no more than 36 months 
451.2 	older than the complainant. Neither mistake as to the complainant's age or consent to the 
451.3 	act by the complainant is a defense. In a prosecution under this clause, the state is not 
451.4 	required to prove that the sexual contact was coerced;
451.5 	(b) the complainant is at least 13 but less than 16 years of age and the actor is more than 
451.6 	48 months older than the complainant or in a current or recent position of authority over 
451.7 	the complainant. Consent by the complainant to the act is not a defense. In any such case, 
451.8 	if the actor is no more than 120 months older than the complainant, it shall be an affirmative 
451.9 	defense which must be proved by a preponderance of the evidence that the actor reasonably 
451.10 	believes the complainant to be 16 years of age or older. In all other cases, mistake as to the 
451.11 	complainant's age shall not be a defense;
451.12 	(c) the actor uses force or coercion to accomplish the sexual contact;
451.13 	(d) the actor knows or has reason to know that the complainant is mentally impaired, 
451.14 	mentally incapacitated, or physically helpless;
451.15 	(e) the complainant is at least 16 but less than 18 years of age and the actor is more than 
451.16 	48 months older than the complainant and in a current or recent position of authority over 
451.17 	the complainant. Neither mistake as to the complainant's age nor consent to the act by the 
451.18 	complainant is a defense;
451.19 	(f) the actor has a significant relationship to the complainant and the complainant was 
451.20 	at least 16 but under 18 years of age at the time of the sexual contact. Neither mistake as to 
451.21 	the complainant's age nor consent to the act by the complainant is a defense;
451.22 	(g) the actor has a significant relationship to the complainant, the complainant was at 
451.23 	least 16 but under 18 years of age at the time of the sexual contact, and:
451.24 	(i) the actor or an accomplice used force or coercion to accomplish the contact;
451.25 	(ii) the complainant suffered personal injury; or
451.26 	(iii) the sexual abuse involved multiple acts committed over an extended period of time.
451.27 	Neither mistake as to the complainant's age nor consent to the act by the complainant is 
451.28 	a defense;
451.29 	(h) the actor is a psychotherapist and the complainant is a patient of the psychotherapist 
451.30 	and the sexual contact occurred:
451.31 	(i) during the psychotherapy session; or
452.1 	(ii) outside the psychotherapy session if an ongoing psychotherapist-patient relationship 
452.2 	exists. Consent by the complainant is not a defense;
452.3 	(i) the actor is a psychotherapist and the complainant is a former patient of the 
452.4 	psychotherapist and the former patient is emotionally dependent upon the psychotherapist;
452.5 	(j) the actor is a psychotherapist and the complainant is a patient or former patient and 
452.6 	the sexual contact occurred by means of therapeutic deception. Consent by the complainant 
452.7 	is not a defense;
452.8 	(k) the actor accomplishes the sexual contact by means of deception or false representation 
452.9 	that the contact is for a bona fide medical purpose. Consent by the complainant is not a 
452.10 	defense;
452.11 	(1) the actor is or purports to be a member of the clergy, the complainant is not married 
452.12 	to the actor, and:
452.13 	(i) the sexual contact occurred during the course of a meeting in which the complainant 
452.14 	sought or received religious or spiritual advice, aid, or comfort from the actor in private; or
452.15 	(ii) the sexual contact occurred during a period of time in which the complainant was 
452.16 	meeting on an ongoing basis with the actor to seek or receive religious or spiritual advice, 
452.17 	aid, or comfort in private. Consent by the complainant is not a defense;
452.18 	(m) the actor is an employee, independent contractor, or volunteer of a state, county, 
452.19 	city, or privately operated adult or juvenile correctional system, or secure treatment facility, 
452.20 	or treatment facility providing services to clients civilly committed as mentally ill and 
452.21 	dangerous, sexually dangerous persons, or sexual psychopathic personalities, including, but 
452.22 	not limited to, jails, prisons, detention centers, or work release facilities, and the complainant 
452.23 	is a resident of a facility or under supervision of the correctional system. Consent by the 
452.24 	complainant is not a defense;
452.25 	(n) the actor provides or is an agent of an entity that provides special transportation 
452.26 	service, the complainant used the special transportation service, the complainant is not 
452.27 	married to the actor, and the sexual contact occurred during or immediately before or after 
452.28 	the actor transported the complainant. Consent by the complainant is not a defense; or
452.29 	(o) the actor performs massage or other bodywork for hire, the complainant was a user 
452.30 	of one of those services, and nonconsensual sexual contact occurred during or immediately 
452.31 	before or after the actor performed or was hired to perform one of those services for the 
452.32 	complainant; or
453.1 	(p) the actor is a peace officer, as defined in section 626.84, and the officer physically 
453.2 	or constructively restrains the complainant or the complainant does not reasonably feel free 
453.3 	to leave the officer's presence. Consent by the complainant is not a defense.

453.4 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
453.5 	committed on or after that date.

453.6 	Sec. 8. Minnesota Statutes 2016, section 609.3451, subdivision 1, is amended to read:
453.7 		Subdivision 1.Crime defined. A person is guilty of criminal sexual conduct in the fifth 
453.8 	degree:
453.9 	(1) if the person engages in nonconsensual sexual contact; or
453.10 	(2) the person engages in masturbation or lewd exhibition of the genitals in the presence 
453.11 	of a minor under the age of 16, knowing or having reason to know the minor is present.
453.12 	For purposes of this section, "sexual contact" has the meaning given in section 609.341, 
453.13 	subdivision 11, paragraph (a), clauses (i), (iv), and (v), but does not include the intentional 
453.14 	touching of the clothing covering the immediate area of the buttocks. Sexual contact also 
453.15 	includes the intentional removal or attempted removal of clothing covering the complainant's 
453.16 	intimate parts or undergarments, and the nonconsensual touching by the complainant of the 
453.17 	actor's intimate parts, effected by the actor, if the action is performed with sexual or 
453.18 	aggressive intent.

453.19 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
453.20 	committed on or after that date.

453.21 	Sec. 9. Minnesota Statutes 2016, section 609.746, subdivision 1, is amended to read:
453.22 		Subdivision 1.Surreptitious intrusion; observation device. (a) A person is guilty of 
453.23 	a gross misdemeanor who:
453.24 	(1) enters upon another's property;
453.25 	(2) surreptitiously gazes, stares, or peeps in the window or any other aperture of a house 
453.26 	or place of dwelling of another; and
453.27 	(3) does so with intent to intrude upon or interfere with the privacy of a member of the 
453.28 	household.
453.29 	(b) A person is guilty of a gross misdemeanor who:
453.30 	(1) enters upon another's property;
454.1 	(2) surreptitiously installs or uses any device for observing, photographing, recording, 
454.2 	amplifying, or broadcasting sounds or events through the window or any other aperture of 
454.3 	a house or place of dwelling of another; and
454.4 	(3) does so with intent to intrude upon or interfere with the privacy of a member of the 
454.5 	household.
454.6 	(c) A person is guilty of a gross misdemeanor who:
454.7 	(1) surreptitiously gazes, stares, or peeps in the window or other aperture of a sleeping 
454.8 	room in a hotel, as defined in section 327.70, subdivision 3, a tanning booth, or other place 
454.9 	where a reasonable person would have an expectation of privacy and has exposed or is 
454.10 	likely to expose their intimate parts, as defined in section 609.341, subdivision 5, or the 
454.11 	clothing covering the immediate area of the intimate parts; and
454.12 	(2) does so with intent to intrude upon or interfere with the privacy of the occupant.
454.13 	(d) A person is guilty of a gross misdemeanor who:
454.14 	(1) surreptitiously installs or uses any device for observing, photographing, recording, 
454.15 	amplifying, or broadcasting sounds or events through the window or other aperture of a 
454.16 	sleeping room in a hotel, as defined in section 327.70, subdivision 3, a tanning booth, or 
454.17 	other place where a reasonable person would have an expectation of privacy and has exposed 
454.18 	or is likely to expose their intimate parts, as defined in section 609.341, subdivision 5, or 
454.19 	the clothing covering the immediate area of the intimate parts; and
454.20 	(2) does so with intent to intrude upon or interfere with the privacy of the occupant.
454.21 	(e) A person is guilty of a felony and may be sentenced to imprisonment for not more 
454.22 	than two years or to payment of a fine of not more than $5,000, or both, if the person:
454.23 	(1) violates this subdivision after a previous conviction under this subdivision or section 
454.24 	609.749; or
454.25 	(2) violates this subdivision against a minor under the age of 18, knowing or having 
454.26 	reason to know that the minor is present.
454.27 	(f) A person is guilty of a felony and may be sentenced to imprisonment for not more 
454.28 	than four years or to payment of a fine of not more than $5,000, or both, if: (1) the person 
454.29 	violates paragraph (b) or (d) against a minor victim under the age of 18; (2) the person is 
454.30 	more than 36 months older than the minor victim; (3) the person knows or has reason to 
454.31 	know that the minor victim is present; and (4) the violation is committed with sexual intent.
455.1 	(g) Paragraphs (b) and (d) do not apply to law enforcement officers or corrections 
455.2 	investigators, or to those acting under their direction, while engaged in the performance of 
455.3 	their lawful duties. Paragraphs (c) and (d) do not apply to conduct in: (1) a medical facility; 
455.4 	or (2) a commercial establishment if the owner of the establishment has posted conspicuous 
455.5 	signs warning that the premises are under surveillance by the owner or the owner's employees.

455.6 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
455.7 	committed on or after that date.

455.8 	Sec. 10. Minnesota Statutes 2016, section 617.246, subdivision 2, is amended to read:
455.9 		Subd. 2.Use of minor. (a) It is unlawful for a person to promote, employ, use or permit 
455.10 	a minor to engage in or assist others to engage minors in posing or modeling alone or with 
455.11 	others in any sexual performance or pornographic work if the person knows or has reason 
455.12 	to know that the conduct intended is a sexual performance or a pornographic work.
455.13 	Any person who violates this subdivisionparagraph is guilty of a felony and may be 
455.14 	sentenced to imprisonment for not more than ten years or to payment of a fine of not more 
455.15 	than $20,000 for the first offense and $40,000 for a second or subsequent offense, or both.
455.16 	(b) A person who violates paragraph (a) is guilty of a felony and may be sentenced to 
455.17 	imprisonment for not more than 15 years or to payment of a fine of not more than $40,000, 
455.18 	or both, if:
455.19 	(1) the person has a prior conviction or delinquency adjudication for violating this section 
455.20 	or section 617.247;
455.21 	(2) the violation occurs when the person is a registered predatory offender under section 
455.22 	243.166; or
455.23 	(3) the violation involved a minor under the age of 13 years.

455.24 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
455.25 	committed on or after that date.

455.26 	Sec. 11. Minnesota Statutes 2016, section 617.246, subdivision 3, is amended to read:
455.27 		Subd. 3.Operation or ownership of business. (a) A person who owns or operates a 
455.28 	business in which a pornographic work, as defined in this section, is disseminated to an 
455.29 	adult or a minor or is reproduced, and who knows the content and character of the 
455.30 	pornographic work disseminated or reproduced, is guilty of a felony and may be sentenced 
456.1 	to imprisonment for not more than ten years, or to payment of a fine of not more than 
456.2 	$20,000 for the first offense and $40,000 for a second or subsequent offense, or both.
456.3 	(b) A person who violates paragraph (a) is guilty of a felony and may be sentenced to 
456.4 	imprisonment for not more than 15 years or to payment of a fine of not more than $40,000, 
456.5 	or both, if:
456.6 	(1) the person has a prior conviction or delinquency adjudication for violating this section 
456.7 	or section 617.247;
456.8 	(2) the violation occurs when the person is a registered predatory offender under section 
456.9 	243.166; or
456.10 	(3) the violation involved a minor under the age of 13 years.

456.11 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
456.12 	committed on or after that date.

456.13 	Sec. 12. Minnesota Statutes 2016, section 617.246, subdivision 4, is amended to read:
456.14 		Subd. 4.Dissemination. (a) A person who, knowing or with reason to know its content 
456.15 	and character, disseminates for profit to an adult or a minor a pornographic work, as defined 
456.16 	in this section, is guilty of a felony and may be sentenced to imprisonment for not more 
456.17 	than ten years, or to payment of a fine of not more than $20,000 for the first offense and 
456.18 	$40,000 for a second or subsequent offense, or both.
456.19 	(b) A person who violates paragraph (a) is guilty of a felony and may be sentenced to 
456.20 	imprisonment for not more than 15 years or to payment of a fine of not more than $40,000, 
456.21 	or both, if:
456.22 	(1) the person has a prior conviction or delinquency adjudication for violating this section 
456.23 	or section 617.247;
456.24 	(2) the violation occurs when the person is a registered predatory offender under section 
456.25 	243.166; or
456.26 	(3) the violation involved a minor under the age of 13 years.

456.27 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
456.28 	committed on or after that date.

457.1 	Sec. 13. Minnesota Statutes 2016, section 617.246, subdivision 7, is amended to read:
457.2 		Subd. 7.Conditional release term. Notwithstanding the statutory maximum sentence 
457.3 	otherwise applicable to the offense or any provision of the sentencing guidelines, when a 
457.4 	court commits a person to the custody of the commissioner of corrections for violating this 
457.5 	section, the court shall provide that after the person has been released from prison, the 
457.6 	commissioner shall place the person on conditional release for five years. If the person has 
457.7 	previously been convicted of a violation of this section, section 609.342, 609.343, 609.344, 
457.8 	609.345, 609.3451, 609.3453, or 617.247, or any similar statute of the United States, this 
457.9 	state, or any state, the commissioner shall place the person on conditional release for ten
457.10 	15 years. The terms of conditional release are governed by section 609.3455, subdivision 
457.11 	8.

457.12 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
457.13 	committed on or after that date.

457.14 	Sec. 14. Minnesota Statutes 2016, section 617.247, subdivision 3, is amended to read:
457.15 		Subd. 3.Dissemination prohibited. (a) A person who disseminates pornographic work 
457.16 	to an adult or a minor, knowing or with reason to know its content and character, is guilty 
457.17 	of a felony and may be sentenced to imprisonment for not more than seven years andor to 
457.18 	payment of a fine of not more than $10,000 for a first offense and for not more than 15 
457.19 	years and a fine of not more than $20,000 for a second or subsequent offense, or both.
457.20 	(b) A person who violates paragraph (a) is guilty of a felony and may be sentenced to 
457.21 	imprisonment for not more than 15 years or to payment of a fine of not more than $20,000, 
457.22 	or both, if:
457.23 	(1) the person has a prior conviction or delinquency adjudication for violating this section 
457.24 	or section 617.246;
457.25 	(2) the violation occurs when the person is a registered predatory offender under section 
457.26 	243.166; or
457.27 	(3) the violation involved a minor under the age of 13 years.

457.28 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
457.29 	committed on or after that date.

458.1 	Sec. 15. Minnesota Statutes 2016, section 617.247, subdivision 4, is amended to read:
458.2 		Subd. 4.Possession prohibited. (a) A person who possesses a pornographic work or a 
458.3 	computer disk or computer or other electronic, magnetic, or optical storage system or a 
458.4 	storage system of any other type, containing a pornographic work, knowing or with reason 
458.5 	to know its content and character, is guilty of a felony and may be sentenced to imprisonment 
458.6 	for not more than five years andor to payment of a fine of not more than $5,000 for a first 
458.7 	offense and for not more than ten years and a fine of not more than $10,000 for a second 
458.8 	or subsequent offense, or both.
458.9 	(b) A person who violates paragraph (a) is guilty of a felony and may be sentenced to 
458.10 	imprisonment for not more than ten years or to payment of a fine of not more than $10,000, 
458.11 	or both, if:
458.12 	(1) the person has a prior conviction or delinquency adjudication for violating this section 
458.13 	or section 617.246;
458.14 	(2) the violation occurs when the person is a registered predatory offender under section 
458.15 	243.166; or
458.16 	(3) the violation involved a minor under the age of 13 years.

458.17 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
458.18 	committed on or after that date.

458.19 	Sec. 16. Minnesota Statutes 2016, section 617.247, subdivision 9, is amended to read:
458.20 		Subd. 9.Conditional release term. Notwithstanding the statutory maximum sentence 
458.21 	otherwise applicable to the offense or any provision of the sentencing guidelines, when a 
458.22 	court commits a person to the custody of the commissioner of corrections for violating this 
458.23 	section, the court shall provide that after the person has been released from prison, the 
458.24 	commissioner shall place the person on conditional release for five years. If the person has 
458.25 	previously been convicted of a violation of this section, section 609.342, 609.343, 609.344, 
458.26 	609.345, 609.3451, 609.3453, or 617.246, or any similar statute of the United States, this 
458.27 	state, or any state, the commissioner shall place the person on conditional release for ten
458.28 	15 years. The terms of conditional release are governed by section 609.3455, subdivision 
458.29 	8.

458.30 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
458.31 	committed on or after that date.

459.1 	Sec. 17. SENTENCING GUIDELINES MODIFICATION.
 459.2 	The Sentencing Guidelines Commission shall comprehensively review and consider 
459.3 	modifying how the Sentencing Guidelines and the sex offender grid address the crimes 
459.4 	described in Minnesota Statutes, sections 617.246 and 617.247, as compared to similar 
459.5 	crimes, including other sex offenses and other offenses with similar maximum penalties.

459.6 	Sec. 18.  REPEALER.
 459.7 	Minnesota Statutes 2016, section 609.349, is repealed.

459.8 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
459.9 	committed on or after that date.

459.10 	ARTICLE 32
459.11 	PREDATORY OFFENDERS

459.12 	Section 1. Minnesota Statutes 2016, section 171.07, subdivision 1a, is amended to read:
459.13 		Subd. 1a.Filing photograph or image; data classification. The department shall file, 
459.14 	or contract to file, all photographs or electronically produced images obtained in the process 
459.15 	of issuing drivers' licenses or Minnesota identification cards. The photographs or 
459.16 	electronically produced images shall be private data pursuant to section 13.02, subdivision 
459.17 	12. Notwithstanding section 13.04, subdivision 3, the department shall not be required to 
459.18 	provide copies of photographs or electronically produced images to data subjects. The use 
459.19 	of the files is restricted:
459.20 	(1) to the issuance and control of drivers' licenses;
459.21 	(2) to criminal justice agencies, as defined in section 299C.46, subdivision 2, for the 
459.22 	investigation and prosecution of crimes, service of process, enforcement of no contact 
459.23 	orders, location of missing persons, investigation and preparation of cases for criminal, 
459.24 	juvenile, and traffic court, location of individuals required to register under section 243.166 
459.25 	or 243.167, and supervision of offenders;
459.26 	(3) to public defenders, as defined in section 611.272, for the investigation and preparation 
459.27 	of cases for criminal, juvenile, and traffic courts;
459.28 	(4) to child support enforcement purposes under section 256.978; and
459.29 	(5) to a county medical examiner or coroner as required by section 390.005 as necessary 
459.30 	to fulfill the duties under sections 390.11 and 390.25.

460.1 	Sec. 2. Minnesota Statutes 2016, section 243.166, subdivision 1b, is amended to read:
460.2 		Subd. 1b.Registration required. (a) A person shall register under this section if:
460.3 	(1) the person was charged with or petitioned for a felony violation of or attempt to 
460.4 	violate, or aiding, abetting, or conspiracy to commit, any of the following, and convicted 
460.5 	of or adjudicated delinquent for that offense or another offense arising out of the same set 
460.6 	of circumstances:
460.7 	(i) murder under section 609.185, paragraph (a), clause (2);
460.8 	(ii) kidnapping under section 609.25;
460.9 	(iii) criminal sexual conduct under section 609.342; 609.343; 609.344; 609.345; 609.3451, 
460.10 	subdivision 3; or 609.3453; or
460.11 	(iv) indecent exposure under section 617.23, subdivision 3; or
460.12 	(v) surreptitious intrusion under the circumstances described in section 609.746, 
460.13 	subdivision 1, paragraph (f);
460.14 	(2) the person was charged with or petitioned for a violation of, or attempt to violate, or 
460.15 	aiding, abetting, or conspiring to commit criminal abuse in violation of section 609.2325, 
460.16 	subdivision 1, paragraph (b); false imprisonment in violation of section 609.255, subdivision 
460.17 	2; solicitation, inducement, or promotion of the prostitution of a minor or engaging in the 
460.18 	sex trafficking of a minor in violation of section 609.322; a prostitution offense in violation 
460.19 	of section 609.324, subdivision 1, paragraph (a); soliciting a minor to engage in sexual 
460.20 	conduct in violation of section 609.352, subdivision 2 or 2a, clause (1); using a minor in a 
460.21 	sexual performance in violation of section 617.246; or possessing pornographic work 
460.22 	involving a minor in violation of section 617.247, and convicted of or adjudicated delinquent 
460.23 	for that offense or another offense arising out of the same set of circumstances;
460.24 	(3) the person was sentenced as a patterned sex offender under section 609.3455, 
460.25 	subdivision 3a; or
460.26 	(4) the person was charged with or petitioned for, including pursuant to a court martial, 
460.27 	violating a law of the United States, including the Uniform Code of Military Justice, similar 
460.28 	to the offenses described in clause (1), (2), or (3), and convicted of or adjudicated delinquent 
460.29 	for that offense or another offense arising out of the same set of circumstances.
460.30 	(b) A person also shall register under this section if:
460.31 	(1) the person was charged with or petitioned for an offense in another state that would 
460.32 	be a violation of a law described in paragraph (a) if committed in this state and convicted 
461.1 	of or adjudicated delinquent for that offense or another offense arising out of the same set 
461.2 	of circumstances;
461.3 	(2) the person enters this state to reside, work, or attend school, or enters this state and 
461.4 	remains for 14 days or longer; and
461.5 	(3) ten years have not elapsed since the person was released from confinement or, if the 
461.6 	person was not confined, since the person was convicted of or adjudicated delinquent for 
461.7 	the offense that triggers registration, unless the person is subject to a longer registration 
461.8 	period under the laws of another state in which the person has been convicted or adjudicated, 
461.9 	or is subject to lifetime registration.
461.10 	If a person described in this paragraph is subject to a longer registration period in another 
461.11 	state or is subject to lifetime registration, the person shall register for that time period 
461.12 	regardless of when the person was released from confinement, convicted, or adjudicated 
461.13 	delinquent.
461.14 	(c) A person also shall register under this section if the person was committed pursuant 
461.15 	to a court commitment order under Minnesota Statutes 2012, section 253B.185, chapter 
461.16 	253D, Minnesota Statutes 1992, section 526.10, or a similar law of another state or the 
461.17 	United States, regardless of whether the person was convicted of any offense.
461.18 	(d) A person also shall register under this section if:
461.19 	(1) the person was charged with or petitioned for a felony violation or attempt to violate 
461.20 	any of the offenses listed in paragraph (a), clause (1), or a similar law of another state or 
461.21 	the United States, or the person was charged with or petitioned for a violation of any of the 
461.22 	offenses listed in paragraph (a), clause (2), or a similar law of another state or the United 
461.23 	States;
461.24 	(2) the person was found not guilty by reason of mental illness or mental deficiency 
461.25 	after a trial for that offense, or found guilty but mentally ill after a trial for that offense, in 
461.26 	states with a guilty but mentally ill verdict; and
461.27 	(3) the person was committed pursuant to a court commitment order under section 
461.28 	253B.18 or a similar law of another state or the United States.

461.29 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
461.30 	committed on or after that date.

462.1 	Sec. 3. Minnesota Statutes 2016, section 243.166, subdivision 2, is amended to read:
462.2 		Subd. 2.Notice. When a person who is required to register under subdivision 1b, 
462.3 	paragraph (a), is sentenced or becomes subject to a juvenile court disposition order, the 
462.4 	court shall tell the person of the duty to register under this section and that, if the person 
462.5 	fails to comply with the registration requirements, information about the offender may be 
462.6 	made available to the public through electronic, computerized, or other accessible means. 
462.7 	The court may not modify the person's duty to register in the pronounced sentence or 
462.8 	disposition order. The court shall require the person to read and sign a form stating that the 
462.9 	duty of the person to register under this section has been explained. The court shall forward 
462.10 	the signed sex offender registration court notification form, the complaint, and sentencing 
462.11 	documents to the bureau. If a person required to register under subdivision 1b, paragraph 
462.12 	(a), was not notified by the court of the registration requirement at the time of sentencing 
462.13 	or disposition, the assigned corrections agent shall notify the person of the requirements of 
462.14 	this section. If a person does not have a corrections agent, the local law enforcement authority 
462.15 	with jurisdiction over the person's primary address shall notify the person of the requirements.
462.16 	When a person who is required to register under subdivision 1b, paragraph (c) or (d), is 
462.17 	released from commitment, the treatment facility shall notify the person of the requirements 
462.18 	of this section. The treatment facility shall also obtain the registration information required 
462.19 	under this section and forward it to the bureau.

462.20 	Sec. 4. Minnesota Statutes 2016, section 243.166, subdivision 4, is amended to read:
462.21 		Subd. 4.Contents of registration. (a) The registration provided to the corrections agent 
462.22 	or law enforcement authority, must consist of a statement in writing signed by the person, 
462.23 	giving information required by the bureau, fingerprints, biological specimen for DNA 
462.24 	analysis as defined under section 299C.155, subdivision 1, and photograph of the person 
462.25 	taken at the time of the person's release from incarceration or, if the person was not 
462.26 	incarcerated, at the time the person initially registered under this section. The registration 
462.27 	information also must include a written consent form signed by the person allowing a 
462.28 	treatment facility or residential housing unit or shelter to release information to a law 
462.29 	enforcement officer about the person's admission to, or residence in, a treatment facility or 
462.30 	residential housing unit or shelter. Registration information on adults and juveniles may be 
462.31 	maintained together notwithstanding section 260B.171, subdivision 3.
462.32 	(b) For persons required to register under subdivision 1b, paragraph (c), following 
462.33 	commitment pursuant to a court commitment under Minnesota Statutes 2012, section 
462.34 	253B.185, chapter 253D, Minnesota Statutes 1992, section 526.10, or a similar law of 
463.1 	another state or the United States, in addition to other information required by this section, 
463.2 	the registration provided to the corrections agent or law enforcement authority must include 
463.3 	the person's offense history and documentation of treatment received during the person's 
463.4 	commitment. This documentation is limited to a statement of how far the person progressed 
463.5 	in treatment during commitment.
463.6 	(c) Within three days of receipt, the corrections agent or law enforcement authority shall 
463.7 	forward the registration information to the bureau. The bureau shall ascertain whether the 
463.8 	person has registered with the law enforcement authority in the area of the person's primary 
463.9 	address, if any, or if the person lacks a primary address, where the person is staying, as 
463.10 	required by subdivision 3a. If the person has not registered with the law enforcement 
463.11 	authority, the bureau shall send one copy to notify that authority.
463.12 	(d) The corrections agent or law enforcement authority may require that a person required 
463.13 	to register under this section appear before the agent or authority to be photographed. The 
463.14 	agent or authority shall forward the photograph to the bureau.
463.15 	(1) Except as provided in clause (2), the agent or authority may photograph any offender 
463.16 	at a time and frequency chosen by the agent or authority.
463.17 	(2) The requirements of this paragraph shall not apply during any period where the 
463.18 	person to be photographed is: (i) committed to the commissioner of corrections and 
463.19 	incarcerated, (ii) incarcerated in a regional jail or county jail, or (iii) committed to the 
463.20 	commissioner of human services and receiving treatment in a secure treatment facility.
463.21 	(e) During the period a person is required to register under this section, the following 
463.22 	provisions apply:
463.23 	(1) Except for persons registering under subdivision 3a, the bureau shall mail a 
463.24 	verification form to the person's last reported primary address. This verification form must 
463.25 	provide notice to the offender that, if the offender does not return the verification form as 
463.26 	required, information about the offender may be made available to the public through 
463.27 	electronic, computerized, or other accessible means. For persons who are registered under 
463.28 	subdivision 3a, the bureau shall mail an annual verification form to the law enforcement 
463.29 	authority where the offender most recently reported. The authority shall provide the 
463.30 	verification form to the person at the next weekly meeting and ensure that the person 
463.31 	completes and signs the form and returns it to the bureau. Notice is sufficient under this 
463.32 	paragraph, if the verification form is sent by first class mail to the person's last reported 
463.33 	primary address, or for persons registered under subdivision 3a, to the law enforcement 
463.34 	authority where the offender most recently reported.
464.1 	(2) The person shall mail the signed verification form back to the bureau within ten days 
464.2 	after receipt of the form, stating on the form the current and last address of the person's 
464.3 	residence and the other information required under subdivision 4a.
464.4 	(3) In addition to the requirements listed in this section, an offender who is no longer 
464.5 	under correctional supervision for a registration offense, or a failure to register offense, but 
464.6 	who resides, works, or attends school in Minnesota, shall have an in-person contact with a 
464.7 	law enforcement authority as provided in this section. If the person resides in Minnesota, 
464.8 	the in-person contact shall be with the law enforcement authority that has jurisdiction over 
464.9 	the person's primary address or, if the person has no address, the location where the person 
464.10 	is staying. If the person does not reside in Minnesota but works or attends school in this 
464.11 	state, the person shall have an in-person contact with the law enforcement authority or 
464.12 	authorities with jurisdiction over the person's school or workplace. During the month of the 
464.13 	person's birth date, the person shall report to the authority to verify the accuracy of the 
464.14 	registration information and to be photographed. Within three days of this contact, the 
464.15 	authority shall enter information as required by the bureau into the predatory offender 
464.16 	registration database and submit an updated photograph of the person to the bureau's 
464.17 	predatory offender registration unit.
464.18 	(4) If the person fails to mail the completed and signed verification form to the bureau 
464.19 	within ten days after receipt of the form, or if the person fails to report to the law enforcement 
464.20 	authority during the month of the person's birth date, the person is in violation of this section.
464.21 	(5) For any person who fails to mail the completed and signed verification form to the 
464.22 	bureau within ten days after receipt of the form and who has been determined to be a risk 
464.23 	level III offender under section 244.052, the bureau shall immediately investigate and notify 
464.24 	local law enforcement authorities to investigate the person's location and to ensure compliance 
464.25 	with this section. The bureau also shall immediately give notice of the person's violation of 
464.26 	this section to the law enforcement authority having jurisdiction over the person's last 
464.27 	registered primary address or addresses.
464.28 	(6) A law enforcement authority may determine whether the person is at that person's 
464.29 	primary address, secondary address, or school or work location, if any, or the accuracy of 
464.30 	any other information required under subdivision 4a if the person whose primary address, 
464.31 	secondary address, or school or work location, if any, is within the authority's jurisdiction, 
464.32 	regardless of the assignment of a corrections agent.
464.33 	For persons required to register under subdivision 1b, paragraph (c), following 
464.34 	commitment pursuant to a court commitment under Minnesota Statutes 2012, section 
465.1 	253B.185, chapter 253D, Minnesota Statutes 1992, section 526.10, or a similar law of 
465.2 	another state or the United States, the bureau shall comply with clause (1) at least four times 
465.3 	each year. For persons who, under section 244.052, are assigned to risk level III and who 
465.4 	are no longer under correctional supervision for a registration offense or a failure to register 
465.5 	offense, the bureau shall comply with clause (1) at least two times each year. For all other 
465.6 	persons required to register under this section, the bureau shall comply with clause (1) each 
465.7 	year within 30 days of the anniversary date of the person's initial registration.
465.8 	(f) When sending out a verification form, the bureau shall determine whether the person 
465.9 	to whom the verification form is being sent has signed a written consent form as provided 
465.10 	for in paragraph (a). If the person has not signed such a consent form, the bureau shall send 
465.11 	a written consent form to the person along with the verification form. A person who receives 
465.12 	this written consent form shall sign and return it to the bureau at the same time as the 
465.13 	verification form.
465.14 	(g) For persons registered under this section on the effective date of this section, each 
465.15 	person, on or before one year from that date, must provide a biological specimen for the 
465.16 	purpose of DNA analysis to the probation agency or law enforcement agency where that 
465.17 	person is registered. A person who provides or has provided a biological specimen for the 
465.18 	purpose of DNA analysis under chapter 299C or section 609.117 meets the requirements 
465.19 	of this paragraph.

465.20 	Sec. 5. Minnesota Statutes 2016, section 243.166, subdivision 4c, is amended to read:
465.21 		Subd. 4c.Notices in writing; signed. All notices required by this section must be in 
465.22 	writing and signed by the person required to register. For purposes of this section, a signature 
465.23 	may be in ink on paper, by an electronic method established by the bureau, or by use of a 
465.24 	biometric for the person. If a biometric is used, the person must provide a sample that is 
465.25 	forwarded to the bureau so that it can be maintained for comparison purposes to verify the 
465.26 	person's identity.

465.27 	Sec. 6. Minnesota Statutes 2016, section 243.166, subdivision 5, is amended to read:
465.28 		Subd. 5.Criminal penalty. (a) A person required to register under this section who was 
465.29 	given notice, knows, or reasonably should know of the duty to register and who:
465.30 	(1) knowingly commits an act or fails to fulfill a requirement that violates any of its
465.31 	provisions provision of this section; or
466.1 	(2) intentionally provides false information to a corrections agent, law enforcement 
466.2 	authority, or the bureau is guilty of a felony and may be sentenced to imprisonment for not 
466.3 	more than five years or to payment of a fine of not more than $10,000, or both.
466.4 	(b) Except as provided in paragraph (c), a person convicted of violating paragraph (a) 
466.5 	shall be committed to the custody of the commissioner of corrections for not less than a 
466.6 	year and a day, nor more than five years.
466.7 	(c) A person convicted of violating paragraph (a), who has previously been convicted 
466.8 	of or adjudicated delinquent for violating this section or a similar statute of another state or 
466.9 	the United States, shall be committed to the custody of the commissioner of corrections for 
466.10 	not less than two years, nor more than five years.
466.11 	(d) Prior to the time of sentencing, the prosecutor may file a motion to have the person 
466.12 	sentenced without regard to the mandatory minimum sentence established by this subdivision. 
466.13 	The motion must be accompanied by a statement on the record of the reasons for it. When 
466.14 	presented with the motion, or on its own motion, the court may sentence the person without 
466.15 	regard to the mandatory minimum sentence if the court finds substantial and compelling 
466.16 	reasons to do so. Sentencing a person in the manner described in this paragraph is a departure 
466.17 	from the Sentencing Guidelines.
466.18 	(e) A person convicted and sentenced as required by this subdivision is not eligible for 
466.19 	probation, parole, discharge, work release, conditional release, or supervised release, until 
466.20 	that person has served the full term of imprisonment as provided by law, notwithstanding 
466.21 	the provisions of sections 241.26, 242.19, 243.05, 244.04, 609.12, and 609.135.

466.22 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
466.23 	committed on or after that date.

466.24 	Sec. 7. Minnesota Statutes 2016, section 243.166, subdivision 6, is amended to read:
466.25 		Subd. 6.Registration period. (a) Notwithstanding the provisions of section 609.165, 
466.26 	subdivision 1, and except as provided in paragraphs (b), (c), and (d), a person required to 
466.27 	register under this section shall continue to comply with this section until ten years have 
466.28 	elapsed since the person initially registered in connection with the offense, or until the 
466.29 	probation, supervised release, or conditional release period expires, whichever occurs later. 
466.30 	For a person required to register under this section who is committed under section 253B.18, 
466.31 	Minnesota Statutes 2012, section 253B.185, or chapter 253D, the ten-year registration period 
466.32 	does not include the period of commitment.
467.1 	(b) If a person required to register under this section fails to provide the person's primary 
467.2 	address as required by subdivision 3, paragraph (b), fails to comply with the requirements 
467.3 	of subdivision 3a, fails to provide information as required by subdivision 4a, or fails to 
467.4 	return the verification form referenced in subdivision 4 within ten days, the commissioner 
467.5 	of public safety shall require the person to continue to register for an additional period of 
467.6 	five years. This five-year period is added to the end of the offender's registration period. In 
467.7 	addition, if the person is not in compliance at the end of the registration period, the 
467.8 	commissioner shall require the person to continue to register for an additional period of two 
467.9 	years.
467.10 	(c) If a person required to register under this section is incarcerated due to a conviction 
467.11 	for a new offense or following a revocation of probation, supervised release, or conditional 
467.12 	release for any offense, the person shall continue to register until ten years have elapsed 
467.13 	since the person was last released from incarceration or until the person's probation, 
467.14 	supervised release, or conditional release period expires, whichever occurs later.
467.15 	(d) A person shall continue to comply with this section for the life of that person:
467.16 	(1) if the person is convicted of or adjudicated delinquent for any offense for which 
467.17 	registration is required under subdivision 1b, or any offense from another state or any federal 
467.18 	offense similar to the offenses described in subdivision 1b, and the person has a prior 
467.19 	conviction or adjudication for an offense for which registration was or would have been 
467.20 	required under subdivision 1b, or an offense from another state or a federal offense similar 
467.21 	to an offense described in subdivision 1b;
467.22 	(2) if the person is required to register based upon a conviction or delinquency 
467.23 	adjudication for an offense under section 609.185, paragraph (a), clause (2), or a similar 
467.24 	statute from another state or the United States;
467.25 	(3) if the person is required to register based upon a conviction for an offense under 
467.26 	section 609.342, subdivision 1, paragraph (a), (c), (d), (e), (f), or (h); 609.343, subdivision 
467.27 	1, paragraph (a), (c), (d), (e), (f), or (h); 609.344, subdivision 1, paragraph (a), (c), or (g); 
467.28 	or 609.345, subdivision 1, paragraph (a), (c), or (g); or a statute from another state or the 
467.29 	United States similar to the offenses described in this clause; or
467.30 	(4) if the person is required to register under subdivision 1b, paragraph (c), following 
467.31 	commitment pursuant to a court commitment under Minnesota Statutes 2012, section 
467.32 	253B.185, chapter 253D, Minnesota Statutes 1992, section 526.10, or a similar law of 
467.33 	another state or the United States.
468.1 	(e) A person described in subdivision 1b, paragraph (b), who is required to register under 
468.2 	the laws of a state in which the person has been previously convicted or adjudicated 
468.3 	delinquent, shall register under this section for the time period required by the state of 
468.4 	conviction or adjudication unless a longer time period is required elsewhere in this section.

468.5 	Sec. 8. Minnesota Statutes 2016, section 243.166, subdivision 7, is amended to read:
468.6 		Subd. 7.Use of data. (a) Except as otherwise provided in subdivision 7a or sections 
468.7 	244.052 and 299C.093, the data provided under this section is private data on individuals 
468.8 	under section 13.02, subdivision 12.
468.9 	(b) The data may be used only by law enforcement and corrections agencies for law 
468.10 	enforcement and corrections purposes. Law enforcement or a corrections agent may disclose 
468.11 	the status of an individual as a predatory offender to a child protection worker with a local 
468.12 	welfare agency for purposes of doing a family assessment under section 626.556. A 
468.13 	corrections agent may also disclose the status of an individual as a predatory offender to 
468.14 	comply with section 244.057.
468.15 	(c) The commissioner of human services is authorized to have access to the data for:
468.16 	(1) state-operated services, as defined in section 246.014, for the purposes described in 
468.17 	section 246.13, subdivision 2, paragraph (b); and
468.18 	(2) purposes of completing background studies under chapter 245C.

468.19 	Sec. 9. Minnesota Statutes 2016, section 243.166, subdivision 7a, is amended to read:
468.20 		Subd. 7a.Availability of information on offenders who are out of compliance with 
468.21 	registration law. (a) The bureau may make information available to the public about 
468.22 	offenders who are 16 years of age or older and who are out of compliance with this section 
468.23 	for 30 days or longer for failure to provide the offenders' primary or secondary addresses
468.24 	or who have absconded. This information may be made available to the public through 
468.25 	electronic, computerized, or other accessible means. The amount and type of information 
468.26 	made available is limited to the information necessary for the public to assist law enforcement 
468.27 	in locating the offender.
468.28 	(b) An offender who comes into compliance with this section after the bureau discloses 
468.29 	information about the offender to the public may send a written request to the bureau 
468.30 	requesting the bureau to treat information about the offender as private data, consistent with 
468.31 	subdivision 7. The bureau shall review the request and promptly take reasonable action to 
468.32 	treat the data as private, if the offender has complied with the requirement that the offender 
469.1 	provide the offender's primary and secondary addresses, or promptly notify the offender 
469.2 	that the information will continue to be treated as public information and the reasons for 
469.3 	the bureau's decision.
469.4 	(c) If an offender believes the information made public about the offender is inaccurate 
469.5 	or incomplete, the offender may challenge the data under section 13.04, subdivision 4.
469.6 	(d) The bureau is immune from any civil or criminal liability that might otherwise arise, 
469.7 	based on the accuracy or completeness of any information made public under this subdivision, 
469.8 	if the bureau acts in good faith.

469.9 	Sec. 10. Minnesota Statutes 2016, section 299C.093, is amended to read:
469.10 	299C.093 DATABASE OF REGISTERED PREDATORY OFFENDERS.
469.11 	The superintendent of the Bureau of Criminal Apprehension shall maintain a 
469.12 	computerized data system relating to individuals required to register as predatory offenders 
469.13 	under section 243.166. To the degree feasible, the system must include the data required to 
469.14 	be provided under section 243.166, subdivisions 4 and 4a, and indicate the time period that 
469.15 	the person is required to register. The superintendent shall maintain this data in a manner 
469.16 	that ensures that it is readily available to law enforcement agencies. This data is private data 
469.17 	on individuals under section 13.02, subdivision 12, but may be used for law enforcement 
469.18 	and corrections purposes. Law enforcement or a corrections agent may disclose the status 
469.19 	of an individual as a predatory offender to a child protection worker with a local welfare 
469.20 	agency for purposes of doing a family assessment under section 626.556. A corrections 
469.21 	agent may also disclose the status of an individual as a predatory offender to comply with 
469.22 	section 244.057. The commissioner of human services has access to the data for 
469.23 	state-operated services, as defined in section 246.014, for the purposes described in section 
469.24 	246.13, subdivision 2, paragraph (b), and for purposes of conducting background studies 
469.25 	under chapter 245C.

469.26 	ARTICLE 33
469.27 	DWI

469.28 	Section 1. Minnesota Statutes 2016, section 169A.24, subdivision 1, is amended to read:
469.29 		Subdivision 1.Degree described. A person who violates section 169A.20 (driving while 
469.30 	impaired) is guilty of first-degree driving while impaired if the person:
469.31 	(1) commits the violation within ten years of the first of three or more qualified prior 
469.32 	impaired driving incidents;
470.1 	(2) has previously been convicted of a felony under this section; or
470.2 	(3) has previously been convicted of a felony under:
470.3 	(i) Minnesota Statutes 2012, section 609.21 (criminal vehicular homicide and injury, 
470.4 	substance-related offenses), subdivision 1, clauses (2) to (6);
470.5 	(ii) Minnesota Statutes 2006, section 609.21 (criminal vehicular homicide and injury, 
470.6 	substance-related offenses), subdivision 1, clauses (2) to (6); subdivision 2, clauses (2) to 
470.7 	(6); subdivision 2a, clauses (2) to (6); subdivision 3, clauses (2) to (6); or subdivision 4, 
470.8 	clauses (2) to (6); or
470.9 	(iii) section 609.2112, subdivision 1, clauses (2) to (6); 609.2113, subdivision 1, clauses 
470.10 	(2) to (6), subdivision 2, clauses (2) to (6), or subdivision 3, clauses (2) to (6); or 609.2114, 
470.11 	subdivision 1, clauses (2) to (6), or subdivision 2, clauses (2) to (6).; or
470.12 	(iv) a statute from this state or another state in conformity with any provision listed in 
470.13 	item (i), (ii), or (iii).

470.14 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
470.15 	committed on or after that date.

470.16 	Sec. 2. Minnesota Statutes 2016, section 169A.55, subdivision 4, is amended to read:
470.17 		Subd. 4.Reinstatement of driving privileges; multiple incidents. (a) A person whose 
470.18 	driver's license has been revoked as a result of an offense listed under clause (1) or (2) shall 
470.19 	not be eligible for reinstatement of driving privileges without an ignition interlock restriction 
470.20 	until the commissioner certifies that the person has neither owned nor leased a vehicle, the 
470.21 	person has not transferred ownership of a vehicle to a family or household member, no 
470.22 	family or household member owns or leases a vehicle which the person has express or 
470.23 	implied consent to drive, and the person has not committed a violation of chapter 169A or 
470.24 	171 during the revocation period; or the person has used the ignition interlock device and 
470.25 	complied with section 171.306 for a period of not less than:
470.26 	(1) one year, for a person whose driver's license was revoked for:
470.27 	(i) an offense occurring within ten years of a qualified prior impaired driving incident; 
470.28 	or
470.29 	(ii) an offense occurring after two qualified prior impaired driving incidents; or
470.30 	(2) two years, for a person whose driver's license was revoked for:
471.1 	(i) an offense occurring under clause (1), and where the test results indicated an alcohol 
471.2 	concentration of twice the legal limit or more; or
471.3 	(ii) an offense occurring under clause (1), and where the current offense is for a violation 
471.4 	of section 169A.20, subdivision 2 (test refusal).
471.5 	As used in this paragraph, "family or household member" has the meaning given in section 
471.6 	169A.63, subdivision 1, paragraph (f).
471.7 	(b) A person whose driver's license has been canceled or denied as a result of three or 
471.8 	more qualified impaired driving incidents shall not be eligible for reinstatement of driving 
471.9 	privileges without an ignition interlock restriction until the person:
471.10 	(1) has completed rehabilitation according to rules adopted by the commissioner or been 
471.11 	granted a variance from the rules by the commissioner; and
471.12 	(2) has submitted verification of abstinence from alcohol and controlled substances
471.13 	under paragraph (c), as evidenced by the person's use of an ignition interlock device or other 
471.14 	chemical monitoring device approved by the commissioner.
471.15 	(b)(c) The verification of abstinence must show that the person has abstained from the 
471.16 	use of alcohol and controlled substances for a period of not less than:
471.17 	(1) three years, for a person whose driver's license was canceled or denied for an offense 
471.18 	occurring within ten years of the first of two qualified prior impaired driving incidents, or 
471.19 	occurring after three qualified prior impaired driving incidents;
471.20 	(2) four years, for a person whose driver's license was canceled or denied for an offense 
471.21 	occurring within ten years of the first of three qualified prior impaired driving incidents; or
471.22 	(3) six years, for a person whose driver's license was canceled or denied for an offense 
471.23 	occurring after four or more qualified prior impaired driving incidents.
471.24 	(c) The commissioner shall establish performance standards and a process for certifying 
471.25 	chemical monitoring devices. The standards and procedures are not rules and are exempt 
471.26 	from chapter 14, including section 14.386.

471.27 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
471.28 	committed on or after that date.

472.1 	Sec. 3. Minnesota Statutes 2017 Supplement, section 171.30, subdivision 1, is amended 
472.2 	to read:
472.3 		Subdivision 1.Conditions of issuance. (a) The commissioner may issue a limited license 
472.4 	to the driver under the conditions in paragraph (b) in any case where a person's license has 
472.5 	been:
472.6 	(1) suspended under section 171.18, 171.173, 171.186, or 171.187;
472.7 	(2) revoked, canceled, or denied under section:
472.8 	(i) 169.792;
472.9 	(ii) 169.797;
472.10 	(iii) 169A.52:
472.11 	(A) subdivision 3, paragraph (a), clause (1) or (2);
472.12 	(B) subdivision 3, paragraph (a), clause (3), for a violation of section 169A.20, 
472.13 	subdivision 1, clause (2), (3), (4), or (7);
472.14 	(C) subdivision 3, paragraph (a), clause (4), (5), or (6), for a violation of section 169A.20, 
472.15 	subdivision 1, clause (1), (5), or (6), and if in compliance with section 171.306;
472.16 	(D) subdivision 3, paragraph (a), clause (4), (5), or (6), for a violation of section 169A.20, 
472.17 	subdivision 1, clause (2), (3), (4), or (7);
472.18 	(C) (E) subdivision 4, paragraph (a), clause (1) or (2), if the test results indicate an 
472.19 	alcohol concentration of less than twice the legal limit;
472.20 	(F) subdivision 4, paragraph (a), clause (3), for a violation of section 169A.20, subdivision 
472.21 	1, clause (2), (3), (4), or (7);
472.22 	(D) (G) subdivision 4, paragraph (a), clause (4), (5), or (6), for a violation of section 
472.23 	169A.20, subdivision 1, clause (1), (5), or (6), and if in compliance with section 171.306;
472.24 	(H) subdivision 4, paragraph (a), clause (4), (5), or (6), for a violation of section 169A.20, 
472.25 	subdivision 1, clause (2), (3), (4), or (7); or
472.26 	(iv) 171.17; or
472.27 	(v) 171.172;
472.28 	(3) revoked, canceled, or denied under section 169A.54:
472.29 	(i) subdivision 1, clause (1), if the test results indicate an alcohol concentration of less 
472.30 	than twice the legal limit;
473.1 	(ii) subdivision 1, clause (2);
473.2 	(iii) subdivision 1, clause (3) or (4), for a violation of section 169A.20, subdivision 1, 
473.3 	clause (2), (3), (4), or (7);
473.4 	(iv) subdivision 1, clause (5), (6), or (7), for a violation of section 169A.20, subdivision 
473.5 	1, clause (1), (5), or (6), and if in compliance with section 171.306; or
473.6 	(v) subdivision 1, clause (5), (6), or (7), for a violation of section 169A.20, subdivision 
473.7 	1, clause (2), (3), (4), or (7); or
473.8 	(iv) (vi) subdivision 2, if the person does not have a qualified prior impaired driving 
473.9 	incident as defined in section 169A.03, subdivision 22, on the person's record, and the test 
473.10 	results indicate an alcohol concentration of less than twice the legal limit; or
473.11 	(4) revoked, canceled, or denied under section 171.177:
473.12 	(i) subdivision 4, paragraph (a), clause (1) or (2);
473.13 	(ii) subdivision 4, paragraph (a), clause (3), for a violation of section 169A.20, subdivision 
473.14 	1, clause (2), (3), (4), or (7);
473.15 	(iii) subdivision 4, paragraph (a), clause (4), (5), or (6), for a violation of section 169A.20, 
473.16 	subdivision 1, clause (1), (5), or (6), and if in compliance with section 171.306;
473.17 	(iv) subdivision 4, paragraph (a), clause (4), (5), or (6), for a violation of section 169A.20, 
473.18 	subdivision 1, clause (2), (3), (4), or (7);
473.19 	(iii) (v) subdivision 5, paragraph (a), clause (1) or (2), if the test results indicate an 
473.20 	alcohol concentration of less than twice the legal limit; or
473.21 	(vi) subdivision 5, paragraph (a), clause (3), for a violation of section 169A.20, 
473.22 	subdivision 1, clause (2), (3), (4), or (7);
473.23 	(iv) (vii) subdivision 5, paragraph (a), clause (4), (5), or (6), for a violation of section 
473.24 	169A.20, subdivision 1, clause (1), (5), or (6), and if in compliance with section 171.306; 
473.25 	or
473.26 	(viii) subdivision 5, paragraph (a), clause (4), (5), or (6), for a violation of section 
473.27 	169A.20, subdivision 1, clause (2), (3), (4), or (7).
473.28 	(b) The following conditions for a limited license under paragraph (a) include:
473.29 	(1) if the driver's livelihood or attendance at a chemical dependency treatment or 
473.30 	counseling program depends upon the use of the driver's license;
474.1 	(2) if the use of a driver's license by a homemaker is necessary to prevent the substantial 
474.2 	disruption of the education, medical, or nutritional needs of the family of the homemaker; 
474.3 	or
474.4 	(3) if attendance at a postsecondary institution of education by an enrolled student of 
474.5 	that institution depends upon the use of the driver's license.
474.6 	(c) The commissioner in issuing a limited license may impose such conditions and 
474.7 	limitations as in the commissioner's judgment are necessary to the interests of the public 
474.8 	safety and welfare including reexamination as to the driver's qualifications. The license may 
474.9 	be limited to the operation of particular vehicles, to particular classes and times of operation, 
474.10 	and to particular conditions of traffic. The commissioner may require that an applicant for 
474.11 	a limited license affirmatively demonstrate that use of public transportation or carpooling 
474.12 	as an alternative to a limited license would be a significant hardship.
474.13 	(d) For purposes of this subdivision:
474.14 	(1) "homemaker" refers to the person primarily performing the domestic tasks in a 
474.15 	household of residents consisting of at least the person and the person's dependent child or 
474.16 	other dependents; and
474.17 	(2) "twice the legal limit" means an alcohol concentration of two times the limit specified 
474.18 	in section 169A.20, subdivision 1, clause (5).
474.19 	(e) The limited license issued by the commissioner shall clearly indicate the limitations 
474.20 	imposed and the driver operating under the limited license shall have the license in possession 
474.21 	at all times when operating as a driver.
474.22 	(f) In determining whether to issue a limited license, the commissioner shall consider 
474.23 	the number and the seriousness of prior convictions and the entire driving record of the 
474.24 	driver and shall consider the number of miles driven by the driver annually.
474.25 	(g) If the person's driver's license or permit to drive has been revoked under section 
474.26 	169.792 or 169.797, the commissioner may only issue a limited license to the person after 
474.27 	the person has presented an insurance identification card, policy, or written statement 
474.28 	indicating that the driver or owner has insurance coverage satisfactory to the commissioner 
474.29 	of public safety. The commissioner of public safety may require the insurance identification 
474.30 	card provided to satisfy this subdivision be certified by the insurance company to be 
474.31 	noncancelable for a period not to exceed 12 months.
474.32 	(h) The limited license issued by the commissioner to a person under section 171.186, 
474.33 	subdivision 4, must expire 90 days after the date it is issued. The commissioner must not 
475.1 	issue a limited license to a person who previously has been issued a limited license under 
475.2 	section 171.186, subdivision 4.
475.3 	(i) The commissioner shall not issue a limited driver's license to any person described 
475.4 	in section 171.04, subdivision 1, clause (6), (7), (8), (11), or (14).
475.5 	(j) The commissioner shall not issue a class A, class B, or class C limited license.

475.6 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
475.7 	committed on or after that date.

475.8 	Sec. 4. Minnesota Statutes 2017 Supplement, section 171.30, subdivision 2a, is amended 
475.9 	to read:
475.10 		Subd. 2a.Other waiting periods. Notwithstanding subdivision 2, a limited license shall 
475.11 	not be issued for a period of:
475.12 	(1) 15 days, to a person whose license or privilege has been revoked or suspended for 
475.13 	a first violation of section 169A.20, sections 169A.50 to 169A.53, section 171.177, or a 
475.14 	statute or ordinance from another state in conformity with either any of those sections; or
475.15 	(2) 90 days, to a person who submitted to testing under sections 169A.50 to 169A.53, 
475.16 	section 171.177, or a statute or ordinance from another state in conformity with any of those 
475.17 	sections, if the person's license or privilege has been revoked or suspended for a violation 
475.18 	of section 169A.20, subdivision 1, clause (2), (3), (4), or (7), occurring within ten years of 
475.19 	a qualified prior impaired driving incident, or after two qualified prior impaired driving 
475.20 	incidents, for violations of section 169A.20, sections 169A.50 to 169A.53, section 171.177, 
475.21 	or a statute or ordinance from another state in conformity with any of those sections; or
475.22 	(3) 180 days, to a person who refused testing under sections 169A.50 to 169A.53, section 
475.23 	171.177, or a statute or ordinance from another state in conformity with any of those sections, 
475.24 	if the person's license or privilege has been revoked or suspended for a violation of section 
475.25 	169A.20, subdivision 1, clause (2), (3), (4), or (7), occurring within ten years of a qualified 
475.26 	prior impaired driving incident, or after two qualified prior impaired driving incidents, for 
475.27 	violations of section 169A.20, sections 169A.50 to 169A.53, section 171.177, or a statute 
475.28 	or ordinance from another state in conformity with any of those sections; or
475.29 	(4) one year, to a person whose license or privilege has been revoked or suspended for 
475.30 	committing manslaughter resulting from the operation of a motor vehicle, committing 
475.31 	criminal vehicular homicide or injury under section 609.21 609.2112, subdivision 1, clause 
475.32 	(1), (2), item (ii), (5), (6), (7), or (8), committing criminal vehicular homicide under section 
476.1 	609.21 609.2112, subdivision 1, clause (2), item (i) or (iii), (3), or (4), or violating a statute 
476.2 	or ordinance from another state in conformity with either of those offenses.

476.3 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
476.4 	committed on or after that date.

476.5 	Sec. 5. Minnesota Statutes 2017 Supplement, section 171.306, subdivision 1, is amended 
476.6 	to read:
476.7 		Subdivision 1.Definitions. (a) As used in this section, the terms in this subdivision have 
476.8 	the meanings given them.
476.9 	(b) "Ignition interlock device" or "device" means equipment that is designed to measure 
476.10 	breath alcohol concentration and to prevent a motor vehicle's ignition from being started 
476.11 	by a person whose breath alcohol concentration measures 0.02 or higher on the equipment.
476.12 	(c) "Location tracking capabilities" means the ability of an electronic or wireless device 
476.13 	to identify and transmit its geographic location through the operation of the device.
476.14 	(d) "Program participant" means a person who has qualified to take part in the ignition 
476.15 	interlock program under this section, and whose driver's license has been:
476.16 	(1) revoked, canceled, or denied under section 169A.52; or169A.54;, for a violation of 
476.17 	section 169A.20, subdivision 1, clause (1), (5), or (6);
476.18 	(2) revoked, canceled, or denied under section171.04, subdivision 1, clause (10); or 
476.19 	171.177;, for a violation of section 169A.20, subdivision 1, clause (1), (5), or (6); or
476.20 	(2) (3) revoked under section 171.17, subdivision 1, paragraph (a), clause (1), or 
476.21 	suspended under section 171.187, for a violation of section 609.2113, subdivision 1, clause 
476.22 	(2), item (i) or (iii), (3), or (4); subdivision 2, clause (2), item (i) or (iii), (3), or (4); or 
476.23 	subdivision 3, clause (2), item (i) or (iii), (3), or (4); or 609.2114, subdivision 2, clause (2), 
476.24 	item (i) or (iii), (3), or (4), resulting in bodily harm, substantial bodily harm, or great bodily 
476.25 	harm.
476.26 	(e) "Qualified prior impaired driving incident" has the meaning given in section 169A.03, 
476.27 	subdivision 22.

476.28 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
476.29 	committed on or after that date.

477.1 	Sec. 6. Minnesota Statutes 2017 Supplement, section 171.306, subdivision 2, is amended 
477.2 	to read:
477.3 		Subd. 2.Performance standards; certification; manufacturer and provider 
477.4 	requirements. (a) The commissioner shall establish performance standards and a process 
477.5 	for certifying devices used in the ignition interlock program, except that the commissioner 
477.6 	may not establish standards that, directly or indirectly, require devices to use or enable 
477.7 	location tracking capabilities without a court order.
477.8 	(b) The manufacturer of a device must apply annually for certification of the device by 
477.9 	submitting the form prescribed by the commissioner. The commissioner shall require 
477.10 	manufacturers of certified devices to:
477.11 	(1) provide device installation, servicing, and monitoring to indigent program participants 
477.12 	at a discounted rate, according to the standards established by the commissioner; and
477.13 	(2) include in an ignition interlock device contract a provision that a program participant 
477.14 	who voluntarily terminates participation in the program is only liable for servicing and 
477.15 	monitoring costs incurred during the time the device is installed on the motor vehicle, 
477.16 	regardless of whether the term of the contract has expired; and
477.17 	(3) include in an ignition interlock device contract a provision that requires manufacturers 
477.18 	of certified devices to pay any towing or repair costs caused by device failure or malfunction, 
477.19 	or by damage caused during device installation, servicing, or monitoring.
477.20 	(c) The manufacturer of a certified device must include with an ignition interlock device 
477.21 	contract a separate notice to the program participant regarding any location tracking 
477.22 	capabilities of the device.

477.23 	ARTICLE 34
477.24 	HEALTH CARE

477.25 	Section 1. Minnesota Statutes 2016, section 3.3005, subdivision 8, is amended to read:
477.26 		Subd. 8.Request contents. A request to spend federal funds submitted under this section 
477.27 	must include the name of the federal grant, the federal agency from which the funds are 
477.28 	available, a federal identification number, a brief description of the purpose of the grant, 
477.29 	the amounts expected by fiscal year, an indication if any state match is required, an indication 
477.30 	if there is a maintenance of effort requirement, and the number of full-time equivalent 
477.31 	positions needed to implement the grant. For new grants, the request must provide a narrative 
478.1 	description of the short- and long-term commitments required, including whether continuation 
478.2 	of any full-time equivalent positions will be a condition of receiving the federal award.

478.3 	Sec. 2. Minnesota Statutes 2017 Supplement, section 13.69, subdivision 1, is amended to 
478.4 	read:
478.5 		Subdivision 1.Classifications. (a) The following government data of the Department 
478.6 	of Public Safety are private data:
478.7 	(1) medical data on driving instructors, licensed drivers, and applicants for parking 
478.8 	certificates and special license plates issued to physically disabled persons;
478.9 	(2) other data on holders of a disability certificate under section 169.345, except that (i) 
478.10 	data that are not medical data may be released to law enforcement agencies, and (ii) data 
478.11 	necessary for enforcement of sections 169.345 and 169.346 may be released to parking 
478.12 	enforcement employees or parking enforcement agents of statutory or home rule charter 
478.13 	cities and towns;
478.14 	(3) Social Security numbers in driver's license and motor vehicle registration records, 
478.15 	except that Social Security numbers must be provided to the Department of Revenue for 
478.16 	purposes of tax administration, the Department of Labor and Industry for purposes of 
478.17 	workers' compensation administration and enforcement, the judicial branch for purposes of 
478.18 	debt collection, and the Department of Natural Resources for purposes of license application 
478.19 	administration, and except that the last four digits of the Social Security number must be 
478.20 	provided to the Department of Human Services for purposes of recovery of Minnesota health 
478.21 	care program benefits paid; and
478.22 	(4) data on persons listed as standby or temporary custodians under section 171.07, 
478.23 	subdivision 11, except that the data must be released to:
478.24 	(i) law enforcement agencies for the purpose of verifying that an individual is a designated 
478.25 	caregiver; or
478.26 	(ii) law enforcement agencies who state that the license holder is unable to communicate 
478.27 	at that time and that the information is necessary for notifying the designated caregiver of 
478.28 	the need to care for a child of the license holder.
478.29 	The department may release the Social Security number only as provided in clause (3) 
478.30 	and must not sell or otherwise provide individual Social Security numbers or lists of Social 
478.31 	Security numbers for any other purpose.
479.1 	(b) The following government data of the Department of Public Safety are confidential 
479.2 	data: data concerning an individual's driving ability when that data is received from a member 
479.3 	of the individual's family.

479.4 	EFFECTIVE DATE. This section is effective July 1, 2018.

479.5 	Sec. 3. [62J.90] MINNESOTA HEALTH POLICY COMMISSION.
479.6 		Subdivision 1.Definition. For purposes of this section, "commission" means the 
479.7 	Minnesota Health Policy Commission.
479.8 		Subd. 2.Commission membership.  The commission shall consist of 16 voting members, 
479.9 	appointed by the Legislative Coordinating Commission as provided in subdivision 9, as 
479.10 	follows:
479.11 	(1) one member with demonstrated expertise in health care finance;
479.12 	(2) one member with demonstrated expertise in health economics;
479.13 	(3) one member with demonstrated expertise in actuarial science;
479.14 	(4) one member with demonstrated expertise in health plan management and finance;
479.15 	(5) one member with demonstrated expertise in health care system management;
479.16 	(6) one member with demonstrated expertise as a purchaser, or a representative of a 
479.17 	purchaser, of employer-sponsored health care services or employer-sponsored health 
479.18 	insurance;
479.19 	(7) one member with demonstrated expertise in the development and utilization of 
479.20 	innovative medical technologies;
479.21 	(8) one member with demonstrated expertise as a health care consumer advocate;
479.22 	(9) one member who is a primary care physician;
479.23 	(10) one member with demonstrated knowledge and expertise in patient privacy issues;
479.24 	(11) one member who provides long-term care services through medical assistance;
479.25 	(12) one member with direct experience as an enrollee, or parent or caregiver of an 
479.26 	enrollee, in MinnesotaCare or medical assistance;
479.27 	(13) two members of the senate, including one member appointed by the majority leader 
479.28 	and one member from the minority party appointed by the minority leader; and
480.1 	(14) two members of the house of representatives, including one member appointed by 
480.2 	the speaker of the house and one member from the minority party appointed by the minority 
480.3 	leader.
480.4 		Subd. 3.Duties. (a) The commission shall:
480.5 	(1) compare Minnesota's private market health care costs and public health care program 
480.6 	spending to that of the other states;
480.7 	(2) compare Minnesota's private market health care costs and public health care program 
480.8 	spending in any given year to its costs and spending in previous years;
480.9 	(3) identify factors that influence and contribute to Minnesota's ranking for private 
480.10 	market health care costs and public health care program spending, including the year over 
480.11 	year and trend line change in total costs and spending in the state;
480.12 	(4) continually monitor efforts to reform the health care delivery and payment system 
480.13 	in Minnesota to understand emerging trends in the health insurance market, including the 
480.14 	private health care market, large self-insured employers, and the state's public health care 
480.15 	programs in order to identify opportunities for state action to achieve:
480.16 	(i) improved patient experience of care, including quality and satisfaction;
480.17 	(ii) improved health of all populations; and
480.18 	(iii) reduced per capita cost of health care;
480.19 	(5) make recommendations for legislative policy, the health care market, or any other 
480.20 	reforms to:
480.21 	(i) lower the rate of growth in private market health care costs and public health care 
480.22 	program spending in the state;
480.23 	(ii) positively impact the state's ranking in the areas listed in this subdivision; and
480.24 	(iii) improve the quality and value of care for all Minnesotans; and
480.25 	(6) conduct any additional reviews requested by the legislature.
480.26 	(b) In making recommendations to the legislature, the commission shall consider:
480.27 	(i) how the recommendations might positively impact the cost-shifting interplay between 
480.28 	public payer reimbursement rates and health insurance premiums; and
480.29 	(ii) how public health care programs, where appropriate, may be utilized as a means to 
480.30 	help prepare enrollees for an eventual transition to the private health care market.
481.1 		Subd. 4.Report. The commission shall submit recommendations for changes in health 
481.2 	care policy and financing by June 15 each year to the chairs and ranking minority members 
481.3 	of the legislative committees with primary jurisdiction over health care. The report shall 
481.4 	include any draft legislation to implement the commission's recommendations.
481.5 		Subd. 5.Staff. The commission shall hire a director who may employ or contract for 
481.6 	professional and technical assistance as the commission determines necessary to perform 
481.7 	its duties. The commission may also contract with private entities with expertise in health 
481.8 	economics, health finance, and actuarial science to secure additional information, data, 
481.9 	research, or modeling that may be necessary for the commission to carry out its duties.
481.10 		Subd. 6.Access to information. (a) The commission may request that a state department 
481.11 	or agency provide the commission with any publicly available information in a usable format 
481.12 	as requested by the commission, at no cost to the commission.
481.13 	(b) The commission may request from a state department or agency unique or custom 
481.14 	data sets and the department or agency may charge the commission for providing the data 
481.15 	at the same rate the department or agency would charge any other public or private entity.
481.16 	(c) Any information provided to the commission by a state department or agency must 
481.17 	be de-identified. For purposes of this subdivision, "de-identified" means the process used 
481.18 	to prevent the identity of a person or business from being connected with information and 
481.19 	ensuring all identifiable information has been removed.
481.20 	(d) By July 1, 2020, and annually thereafter, the commission shall provide the legislative 
481.21 	committees with jurisdiction over data practices with a report describing the de-identified 
481.22 	information and data obtained by the commission from state departments and agencies in 
481.23 	the preceding year. The report must describe the information obtained, including the scope 
481.24 	of the information obtained, the purpose for which it was obtained, the classification of any 
481.25 	data obtained, the length of time the information shall be used, and security measures for 
481.26 	protecting the information in accordance with chapter 13. The report must include a 
481.27 	notification to the public that although the information obtained by the commission is 
481.28 	de-identified, de-identified data retains some risk of identification, and that a data use 
481.29 	agreement must limit the use of the data and prohibit attempts to reidentify the data. The 
481.30 	commission shall also maintain the reports on the commission's Web site.
481.31 		Subd. 7.Terms; vacancies; compensation. (a) Public members of the commission shall 
481.32 	serve four-year terms. The public members may not serve for more than two consecutive 
481.33 	terms.
482.1 	(b) The legislative members shall serve on the commission as long as the member or 
482.2 	the appointing authority holds office.
482.3 	(c) The removal of members and filling of vacancies on the commission are as provided 
482.4 	in section 15.059.
482.5 	(d) Public members may receive compensation and expenses as provided in section 
482.6 	15.059, subdivision 3.
482.7 		Subd. 8.Chairs; officers. The commission shall elect a chair annually. The commission 
482.8 	may elect other officers necessary for the performance of its duties.
482.9 		Subd. 9.Selection of members; advisory council. The Legislative Coordinating 
482.10 	Commission shall take applications from members of the public who are qualified and 
482.11 	interested to serve in one of the listed positions. The applications must be reviewed by a 
482.12 	health policy commission advisory council comprised of four members as follows: the state 
482.13 	economist, legislative auditor, state demographer, and the president of the Federal Reserve 
482.14 	Bank of Minneapolis or a designee of the president. The advisory council shall recommend 
482.15 	two applicants for each of the specified positions by September 30 in the calendar year 
482.16 	preceding the end of the members' terms. The Legislative Coordinating Commission shall 
482.17 	appoint one of the two recommended applicants to the commission.
482.18 		Subd. 10.Meetings. The commission shall meet at least four times each year. 
482.19 	Commission meetings are subject to chapter 13D.
482.20 		Subd. 11.Conflict of interest. A member of the commission may not participate in or 
482.21 	vote on a decision of the commission relating to an organization in which the member has 
482.22 	either a direct or indirect financial interest.
482.23 		Subd. 12.Expiration. The commission shall expire on June 15, 2024.

482.24 	Sec. 4. [256.0113] ELIGIBILITY VERIFICATION.
482.25 		Subdivision 1.Verification required; vendor contract. (a) The commissioner shall 
482.26 	ensure that medical assistance, MinnesotaCare, child care assistance programs under chapter 
482.27 	119B, and Supplemental Nutrition Assistance Program (SNAP) eligibility determinations 
482.28 	through the MNsure information technology system and through other agency eligibility 
482.29 	determination systems include the computerized verification of income, residency, identity, 
482.30 	and when applicable, assets and compliance with SNAP work requirements.
482.31 	(b) The commissioner shall contract with a vendor to verify the eligibility of all persons 
482.32 	enrolled in medical assistance, MinnesotaCare, a child care assistance program, and SNAP 
483.1 	during a specified audit period. This contract shall be exempt from sections 16C.08, 
483.2 	subdivision 2, clause (1); 16C.09, paragraph (a), clause (1); 43A.047, paragraph (a), and 
483.3 	any other law to the contrary.
483.4 	(c) The contract must require the vendor to comply with enrollee data privacy 
483.5 	requirements and to use encryption to safeguard enrollee identity. The contract must also 
483.6 	provide penalties for vendor noncompliance.
483.7 	(d) The contract must include a revenue sharing agreement, under which vendor 
483.8 	compensation is limited to a portion of any savings to the state resulting from the vendor's 
483.9 	implementation of eligibility verification initiatives under this section.
483.10 	(e) The commissioner shall use existing resources to fund any agency administrative 
483.11 	and technology-related costs incurred as a result of implementing this section.
483.12 	(f) All state savings resulting from implementation of the vendor contract under this 
483.13 	section, minus any payments to the vendor made under the terms of the revenue sharing 
483.14 	agreement, shall be deposited into the health care access fund.
483.15 		Subd. 2.Verification process; vendor duties. (a) The verification process implemented 
483.16 	by the vendor must include but is not limited to data matches of the name, date of birth, 
483.17 	address, and Social Security number of each medical assistance, MinnesotaCare, child care 
483.18 	assistance program, and SNAP enrollee against relevant information in federal and state 
483.19 	data sources, including the federal data hub established under the Affordable Care Act. In 
483.20 	designing the verification process, the vendor, to the extent feasible, shall incorporate 
483.21 	procedures that are compatible and coordinated with, and build upon or improve, existing 
483.22 	procedures used by the MNsure information technology system and other agency eligibility 
483.23 	determination systems.
483.24 	(b) The vendor, upon preliminary determination that an enrollee is eligible or ineligible, 
483.25 	shall notify the commissioner. Within 20 business days of notification, the commissioner 
483.26 	shall accept the preliminary determination or reject the preliminary determination with a 
483.27 	stated reason. The commissioner shall retain final authority over eligibility determinations. 
483.28 	The vendor shall keep a record of all preliminary determinations of ineligibility submitted 
483.29 	to the commissioner.
483.30 	(c) The vendor shall recommend to the commissioner an eligibility verification process 
483.31 	that allows ongoing verification of enrollee eligibility under the MNsure information 
483.32 	technology system and other agency eligibility determination systems.
484.1 	(d) The commissioner and the vendor, following the conclusion of the initial contract 
484.2 	period, shall jointly submit an eligibility verification audit report to the chairs and ranking 
484.3 	minority members of the legislative committees with jurisdiction over health and human 
484.4 	services policy and finance. The report shall include but is not limited to information in the 
484.5 	form of unidentified summary data on preliminary determinations of eligibility or ineligibility 
484.6 	communicated by the vendor, the actions taken on those preliminary determinations by the 
484.7 	commissioner, and the commissioner's reasons for rejecting preliminary determinations by 
484.8 	the vendor. The report must also include the recommendations for ongoing verification of 
484.9 	enrollee eligibility required under paragraph (c).
484.10 	(e) An eligibility verification vendor contract shall be awarded for an initial one-year 
484.11 	period, beginning January 1, 2019. The commissioner shall renew the contract for up to 
484.12 	three additional one-year periods and require additional eligibility verification audits, if the 
484.13 	commissioner or the legislative auditor determines that the MNsure information technology 
484.14 	system and other agency eligibility determination systems cannot effectively verify the 
484.15 	eligibility of medical assistance, MinnesotaCare, child care assistance program, and SNAP 
484.16 	enrollees.

484.17 	Sec. 5. Minnesota Statutes 2017 Supplement, section 256.969, subdivision 9, is amended 
484.18 	to read:
484.19 		Subd. 9.Disproportionate numbers of low-income patients served. (a) For admissions 
484.20 	occurring on or after July 1, 1993, the medical assistance disproportionate population 
484.21 	adjustment shall comply with federal law and shall be paid to a hospital, excluding regional 
484.22 	treatment centers and facilities of the federal Indian Health Service, with a medical assistance 
484.23 	inpatient utilization rate in excess of the arithmetic mean. The adjustment must be determined 
484.24 	as follows:
484.25 	(1) for a hospital with a medical assistance inpatient utilization rate above the arithmetic 
484.26 	mean for all hospitals excluding regional treatment centers and facilities of the federal Indian 
484.27 	Health Service but less than or equal to one standard deviation above the mean, the 
484.28 	adjustment must be determined by multiplying the total of the operating and property 
484.29 	payment rates by the difference between the hospital's actual medical assistance inpatient 
484.30 	utilization rate and the arithmetic mean for all hospitals excluding regional treatment centers 
484.31 	and facilities of the federal Indian Health Service; and
484.32 	(2) for a hospital with a medical assistance inpatient utilization rate above one standard 
484.33 	deviation above the mean, the adjustment must be determined by multiplying the adjustment 
484.34 	that would be determined under clause (1) for that hospital by 1.1. The commissioner shall 
485.1 	report annually on the number of hospitals likely to receive the adjustment authorized by 
485.2 	this paragraph. The commissioner shall specifically report on the adjustments received by 
485.3 	public hospitals and public hospital corporations located in cities of the first class.
485.4 	(b) Certified public expenditures made by Hennepin County Medical Center shall be 
485.5 	considered Medicaid disproportionate share hospital payments. Hennepin County and 
485.6 	Hennepin County Medical Center shall report by June 15, 2007, on payments made beginning 
485.7 	July 1, 2005, or another date specified by the commissioner, that may qualify for 
485.8 	reimbursement under federal law. Based on these reports, the commissioner shall apply for 
485.9 	federal matching funds.
485.10 	(c) Upon federal approval of the related state plan amendment, paragraph (b) is effective 
485.11 	retroactively from July 1, 2005, or the earliest effective date approved by the Centers for 
485.12 	Medicare and Medicaid Services.
485.13 	(d) Effective July 1, 2015, disproportionate share hospital (DSH) payments shall be paid 
485.14 	in accordance with a new methodology using 2012 as the base year. Annual payments made 
485.15 	under this paragraph shall equal the total amount of payments made for 2012. A licensed 
485.16 	children's hospital shall receive only a single DSH factor for children's hospitals. Other 
485.17 	DSH factors may be combined to arrive at a single factor for each hospital that is eligible 
485.18 	for DSH payments. The new methodology shall make payments only to hospitals located 
485.19 	in Minnesota and include the following factors:
485.20 	(1) a licensed children's hospital with at least 1,000 fee-for-service discharges in the 
485.21 	base year shall receive a factor of 0.868. A licensed children's hospital with less than 1,000 
485.22 	fee-for-service discharges in the base year shall receive a factor of 0.7880;
485.23 	(2) a hospital that has in effect for the initial rate year a contract with the commissioner 
485.24 	to provide extended psychiatric inpatient services under section 256.9693 shall receive a 
485.25 	factor of 0.0160;
485.26 	(3) a hospital that has received payment from the fee-for-service program for at least 20 
485.27 	transplant services in the base year shall receive a factor of 0.0435;
485.28 	(4) a hospital that has a medical assistance utilization rate in the base year between 20 
485.29 	percent up to one standard deviation above the statewide mean utilization rate shall receive 
485.30 	a factor of 0.0468;
485.31 	(5) a hospital that has a medical assistance utilization rate in the base year that is at least 
485.32 	one standard deviation above the statewide mean utilization rate but is less than three standard 
485.33 	deviations above the mean shall receive a factor of 0.2300; and
486.1 	(6) a hospital that has a medical assistance utilization rate in the base year that is at least 
486.2 	three standard deviations above the statewide mean utilization rate shall receive a factor of 
486.3 	0.3711.
486.4 	(e) Any payments or portion of payments made to a hospital under this subdivision that 
486.5 	are subsequently returned to the commissioner because the payments are found to exceed 
486.6 	the hospital-specific DSH limit for that hospital shall be redistributed, proportionate to the 
486.7 	number of fee-for-service discharges, to other DSH-eligible non-children's hospitals that 
486.8 	have a medical assistance utilization rate that is at least one standard deviation above the 
486.9 	mean.
486.10 	(f) Effective for discharges on January 1, 2019, through June 30, 2019, an additional 
486.11 	payment adjustment shall be established by the commissioner under this subdivision for 
486.12 	hospitals that provide high levels of administering high-cost drugs to enrollees in the 
486.13 	fee-for-service medical assistance program. The commissioner shall consider factors such 
486.14 	as fee-for-service medical assistance utilization rates and payments made for drugs purchased 
486.15 	through the 340B drug purchasing program and administered to fee-for-service enrollees. 
486.16 	If any part of this adjustment exceeds a hospital's hospital-specific disproportionate share 
486.17 	hospital limit, the commissioner shall make a payment to the hospital that equals the 
486.18 	nonfederal share of the amount that exceeds the limit. The total nonfederal share of the 
486.19 	amount of the payment adjustment under this paragraph shall not exceed $1,500,000.

486.20 	Sec. 6. Minnesota Statutes 2016, section 256B.04, subdivision 14, is amended to read:
486.21 		Subd. 14.Competitive bidding. (a) When determined to be effective, economical, and 
486.22 	feasible, the commissioner may utilize volume purchase through competitive bidding and 
486.23 	negotiation under the provisions of chapter 16C, to provide items under the medical assistance 
486.24 	program including but not limited to the following:
486.25 	(1) eyeglasses;
486.26 	(2) oxygen. The commissioner shall provide for oxygen needed in an emergency situation 
486.27 	on a short-term basis, until the vendor can obtain the necessary supply from the contract 
486.28 	dealer;
486.29 	(3) hearing aids and supplies; and
486.30 	(4) durable medical equipment, including but not limited to:
486.31 	(i) hospital beds;
486.32 	(ii) commodes;
487.1 	(iii) glide-about chairs;
487.2 	(iv) patient lift apparatus;
487.3 	(v) wheelchairs and accessories;
487.4 	(vi) oxygen administration equipment;
487.5 	(vii) respiratory therapy equipment;
487.6 	(viii) electronic diagnostic, therapeutic and life-support systems;
487.7 	(5) nonemergency medical transportation level of need determinations, disbursement of 
487.8 	public transportation passes and tokens, and volunteer and recipient mileage and parking 
487.9 	reimbursements; and
487.10 	(6) drugs.
487.11 	(b) Rate changes and recipient cost-sharing under this chapter and chapter 256L do not 
487.12 	affect contract payments under this subdivision unless specifically identified.
487.13 	(c) The commissioner may not utilize volume purchase through competitive bidding 
487.14 	and negotiation for special transportation services under the provisions of chapter 16C for 
487.15 	special transportation services or incontinence products and related supplies.

487.16 	Sec. 7. Minnesota Statutes 2016, section 256B.04, subdivision 21, is amended to read:
487.17 		Subd. 21.Provider enrollment. (a) If the commissioner or the Centers for Medicare 
487.18 	and Medicaid Services determines that a provider is designated "high-risk," the commissioner 
487.19 	may withhold payment from providers within that category upon initial enrollment for a 
487.20 	90-day period. The withholding for each provider must begin on the date of the first 
487.21 	submission of a claim.
487.22 	(b) An enrolled provider that is also licensed by the commissioner under chapter 245A, 
487.23 	or is licensed as a home care provider by the Department of Health under chapter 144A and 
487.24 	has a home and community-based services designation on the home care license under 
487.25 	section 144A.484, must designate an individual as the entity's compliance officer. The 
487.26 	compliance officer must:
487.27 	(1) develop policies and procedures to assure adherence to medical assistance laws and 
487.28 	regulations and to prevent inappropriate claims submissions;
487.29 	(2) train the employees of the provider entity, and any agents or subcontractors of the 
487.30 	provider entity including billers, on the policies and procedures under clause (1);
488.1 	(3) respond to allegations of improper conduct related to the provision or billing of 
488.2 	medical assistance services, and implement action to remediate any resulting problems;
488.3 	(4) use evaluation techniques to monitor compliance with medical assistance laws and 
488.4 	regulations;
488.5 	(5) promptly report to the commissioner any identified violations of medical assistance 
488.6 	laws or regulations; and
488.7 	(6) within 60 days of discovery by the provider of a medical assistance reimbursement 
488.8 	overpayment, report the overpayment to the commissioner and make arrangements with 
488.9 	the commissioner for the commissioner's recovery of the overpayment.
488.10 	The commissioner may require, as a condition of enrollment in medical assistance, that a 
488.11 	provider within a particular industry sector or category establish a compliance program that 
488.12 	contains the core elements established by the Centers for Medicare and Medicaid Services.
488.13 	(c) The commissioner may revoke the enrollment of an ordering or rendering provider 
488.14 	for a period of not more than one year, if the provider fails to maintain and, upon request 
488.15 	from the commissioner, provide access to documentation relating to written orders or requests 
488.16 	for payment for durable medical equipment, certifications for home health services, or 
488.17 	referrals for other items or services written or ordered by such provider, when the 
488.18 	commissioner has identified a pattern of a lack of documentation. A pattern means a failure 
488.19 	to maintain documentation or provide access to documentation on more than one occasion. 
488.20 	Nothing in this paragraph limits the authority of the commissioner to sanction a provider 
488.21 	under the provisions of section 256B.064.
488.22 	(d) The commissioner shall terminate or deny the enrollment of any individual or entity 
488.23 	if the individual or entity has been terminated from participation in Medicare or under the 
488.24 	Medicaid program or Children's Health Insurance Program of any other state. The 
488.25 	commissioner may exempt a rehabilitation agency from termination or denial that would 
488.26 	otherwise be required under this paragraph, if the agency:
488.27 	(1) is unable to retain Medicare certification and enrollment solely due to a lack of billing 
488.28 	to the Medicare program;
488.29 	(2) meets all other applicable Medicare certification requirements based on a review 
488.30 	completed by the commissioner of health; and
488.31 	(3) serves primarily a pediatric population.
488.32 	(e) As a condition of enrollment in medical assistance, the commissioner shall require 
488.33 	that a provider designated "moderate" or "high-risk" by the Centers for Medicare and 
489.1 	Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid 
489.2 	Services, its agents, or its designated contractors and the state agency, its agents, or its 
489.3 	designated contractors to conduct unannounced on-site inspections of any provider location. 
489.4 	The commissioner shall publish in the Minnesota Health Care Program Provider Manual a 
489.5 	list of provider types designated "limited," "moderate," or "high-risk," based on the criteria 
489.6 	and standards used to designate Medicare providers in Code of Federal Regulations, title 
489.7 	42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. 
489.8 	The commissioner's designations are not subject to administrative appeal.
489.9 	(f) As a condition of enrollment in medical assistance, the commissioner shall require 
489.10 	that a high-risk provider, or a person with a direct or indirect ownership interest in the 
489.11 	provider of five percent or higher, consent to criminal background checks, including 
489.12 	fingerprinting, when required to do so under state law or by a determination by the 
489.13 	commissioner or the Centers for Medicare and Medicaid Services that a provider is designated 
489.14 	high-risk for fraud, waste, or abuse.
489.15 	(g)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable 
489.16 	medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers 
489.17 	meeting the durable medical equipment provider and supplier definition in clause (3), 
489.18 	operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is 
489.19 	annually renewed and designates the Minnesota Department of Human Services as the 
489.20 	obligee, and must be submitted in a form approved by the commissioner. For purposes of 
489.21 	this clause, the following medical suppliers are not required to obtain a surety bond: a 
489.22 	federally qualified health center, a home health agency, the Indian Health Service, a 
489.23 	pharmacy, and a rural health clinic.
489.24 	(2) At the time of initial enrollment or reenrollment, durable medical equipment providers 
489.25 	and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating 
489.26 	provider's Medicaid revenue in the previous calendar year is up to and including $300,000, 
489.27 	the provider agency must purchase a surety bond of $50,000. If a revalidating provider's 
489.28 	Medicaid revenue in the previous calendar year is over $300,000, the provider agency must 
489.29 	purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and 
489.30 	fees in pursuing a claim on the bond.
489.31 	(3) "Durable medical equipment provider or supplier" means a medical supplier that can 
489.32 	purchase medical equipment or supplies for sale or rental to the general public and is able 
489.33 	to perform or arrange for necessary repairs to and maintenance of equipment offered for 
489.34 	sale or rental.
490.1 	(h) The Department of Human Services may require a provider to purchase a surety 
490.2 	bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment 
490.3 	if: (1) the provider fails to demonstrate financial viability, (2) the department determines 
490.4 	there is significant evidence of or potential for fraud and abuse by the provider, or (3) the 
490.5 	provider or category of providers is designated high-risk pursuant to paragraph (a) and as 
490.6 	per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an 
490.7 	amount of $100,000 or ten percent of the provider's payments from Medicaid during the 
490.8 	immediately preceding 12 months, whichever is greater. The surety bond must name the 
490.9 	Department of Human Services as an obligee and must allow for recovery of costs and fees 
490.10 	in pursuing a claim on the bond. This paragraph does not apply if the provider currently 
490.11 	maintains a surety bond under the requirements in section 256B.0659 or 256B.85.

490.12 	Sec. 8. Minnesota Statutes 2017 Supplement, section 256B.0625, subdivision 3b, is 
490.13 	amended to read:
490.14 		Subd. 3b.Telemedicine services. (a) Medical assistance covers medically necessary 
490.15 	services and consultations delivered by a licensed health care provider via telemedicine in 
490.16 	the same manner as if the service or consultation was delivered in person. Coverage is 
490.17 	limited to three telemedicine services per enrollee per calendar week, except as provided 
490.18 	in paragraph (f). Telemedicine services shall be paid at the full allowable rate.
490.19 	(b) The commissioner shall establish criteria that a health care provider must attest to 
490.20 	in order to demonstrate the safety or efficacy of delivering a particular service via 
490.21 	telemedicine. The attestation may include that the health care provider:
490.22 	(1) has identified the categories or types of services the health care provider will provide 
490.23 	via telemedicine;
490.24 	(2) has written policies and procedures specific to telemedicine services that are regularly 
490.25 	reviewed and updated;
490.26 	(3) has policies and procedures that adequately address patient safety before, during, 
490.27 	and after the telemedicine service is rendered;
490.28 	(4) has established protocols addressing how and when to discontinue telemedicine 
490.29 	services; and
490.30 	(5) has an established quality assurance process related to telemedicine services.
490.31 	(c) As a condition of payment, a licensed health care provider must document each 
490.32 	occurrence of a health service provided by telemedicine to a medical assistance enrollee. 
491.1 	Health care service records for services provided by telemedicine must meet the requirements 
491.2 	set forth in Minnesota Rules, part 9505.2175, subparts 1 and 2, and must document:
491.3 	(1) the type of service provided by telemedicine;
491.4 	(2) the time the service began and the time the service ended, including an a.m. and p.m. 
491.5 	designation;
491.6 	(3) the licensed health care provider's basis for determining that telemedicine is an 
491.7 	appropriate and effective means for delivering the service to the enrollee;
491.8 	(4) the mode of transmission of the telemedicine service and records evidencing that a 
491.9 	particular mode of transmission was utilized;
491.10 	(5) the location of the originating site and the distant site;
491.11 	(6) if the claim for payment is based on a physician's telemedicine consultation with 
491.12 	another physician, the written opinion from the consulting physician providing the 
491.13 	telemedicine consultation; and
491.14 	(7) compliance with the criteria attested to by the health care provider in accordance 
491.15 	with paragraph (b).
491.16 	(d) For purposes of this subdivision, unless otherwise covered under this chapter, 
491.17 	"telemedicine" is defined as the delivery of health care services or consultations while the 
491.18 	patient is at an originating site and the licensed health care provider is at a distant site. A 
491.19 	communication between licensed health care providers, or a licensed health care provider 
491.20 	and a patient that consists solely of a telephone conversation, e-mail, or facsimile transmission 
491.21 	does not constitute telemedicine consultations or services. Telemedicine may be provided 
491.22 	by means of real-time two-way, interactive audio and visual communications, including the 
491.23 	application of secure video conferencing or store-and-forward technology to provide or 
491.24 	support health care delivery, which facilitate the assessment, diagnosis, consultation, 
491.25 	treatment, education, and care management of a patient's health care.
491.26 	(e) For purposes of this section, "licensed health care provider" means a licensed health 
491.27 	care provider under section 62A.671, subdivision 6, and a community paramedic as defined 
491.28 	under section 144E.001, subdivision 5f, or a mental health practitioner defined under section 
491.29 	245.462, subdivision 17, or 245.4871, subdivision 26, working under the general supervision 
491.30 	of a mental health professional; "health care provider" is defined under section 62A.671, 
491.31 	subdivision 3; and "originating site" is defined under section 62A.671, subdivision 7.
491.32 	(f) The limit on coverage of three telemedicine services per enrollee per calendar week 
491.33 	does not apply if:
492.1 	(1) the telemedicine services provided by the licensed health care provider are for the 
492.2 	treatment and control of tuberculosis; and
492.3 	(2) the services are provided in a manner consistent with the recommendations and best 
492.4 	practices specified by the Centers for Disease Control and Prevention and the commissioner 
492.5 	of health.

492.6 	Sec. 9. Minnesota Statutes 2016, section 256B.0625, subdivision 13, is amended to read:
492.7 		Subd. 13.Drugs. (a) Medical assistance covers drugs, except for fertility drugs when 
492.8 	specifically used to enhance fertility, if prescribed by a licensed practitioner and dispensed 
492.9 	by a licensed pharmacist, by a physician enrolled in the medical assistance program as a 
492.10 	dispensing physician, or by a physician, physician assistant, or a nurse practitioner employed 
492.11 	by or under contract with a community health board as defined in section 145A.02, 
492.12 	subdivision 5, for the purposes of communicable disease control.
492.13 	(b) The dispensed quantity of a prescription drug must not exceed a 34-day supply, 
492.14 	unless authorized by the commissioner.
492.15 	(c) For the purpose of this subdivision and subdivision 13d, an "active pharmaceutical 
492.16 	ingredient" is defined as a substance that is represented for use in a drug and when used in 
492.17 	the manufacturing, processing, or packaging of a drug becomes an active ingredient of the 
492.18 	drug product. An "excipient" is defined as an inert substance used as a diluent or vehicle 
492.19 	for a drug. The commissioner shall establish a list of active pharmaceutical ingredients and 
492.20 	excipients which are included in the medical assistance formulary. Medical assistance covers 
492.21 	selected active pharmaceutical ingredients and excipients used in compounded prescriptions 
492.22 	when the compounded combination is specifically approved by the commissioner or when 
492.23 	a commercially available product:
492.24 	(1) is not a therapeutic option for the patient;
492.25 	(2) does not exist in the same combination of active ingredients in the same strengths 
492.26 	as the compounded prescription; and
492.27 	(3) cannot be used in place of the active pharmaceutical ingredient in the compounded 
492.28 	prescription.
492.29 	(d) Medical assistance covers the following over-the-counter drugs when prescribed by 
492.30 	a licensed practitioner or by a licensed pharmacist who meets standards established by the 
492.31 	commissioner, in consultation with the board of pharmacy: antacids, acetaminophen, family 
492.32 	planning products, aspirin, insulin, products for the treatment of lice, vitamins for adults 
492.33 	with documented vitamin deficiencies, vitamins for children under the age of seven and 
493.1 	pregnant or nursing women, and any other over-the-counter drug identified by the 
493.2 	commissioner, in consultation with the formulary committee, as necessary, appropriate, and 
493.3 	cost-effective for the treatment of certain specified chronic diseases, conditions, or disorders, 
493.4 	and this determination shall not be subject to the requirements of chapter 14. A pharmacist 
493.5 	may prescribe over-the-counter medications as provided under this paragraph for purposes 
493.6 	of receiving reimbursement under Medicaid. When prescribing over-the-counter drugs under 
493.7 	this paragraph, licensed pharmacists must consult with the recipient to determine necessity, 
493.8 	provide drug counseling, review drug therapy for potential adverse interactions, and make 
493.9 	referrals as needed to other health care professionals. Over-the-counter medications must 
493.10 	be dispensed in a quantity that is the lowest of: (1) the number of dosage units contained in 
493.11 	the manufacturer's original package; (2) the number of dosage units required to complete 
493.12 	the patient's course of therapy; or (3) if applicable, the number of dosage units dispensed 
493.13 	from a system using retrospective billing, as provided under subdivision 13e, paragraph 
493.14 	(b).
493.15 	(e) Effective January 1, 2006, medical assistance shall not cover drugs that are coverable 
493.16 	under Medicare Part D as defined in the Medicare Prescription Drug, Improvement, and 
493.17 	Modernization Act of 2003, Public Law 108-173, section 1860D-2(e), for individuals eligible 
493.18 	for drug coverage as defined in the Medicare Prescription Drug, Improvement, and 
493.19 	Modernization Act of 2003, Public Law 108-173, section 1860D-1(a)(3)(A). For these 
493.20 	individuals, medical assistance may cover drugs from the drug classes listed in United States 
493.21 	Code, title 42, section 1396r-8(d)(2), subject to this subdivision and subdivisions 13a to 
493.22 	13g, except that drugs listed in United States Code, title 42, section 1396r-8(d)(2)(E), shall 
493.23 	not be covered.
493.24 	(f) Medical assistance covers drugs acquired through the federal 340B Drug Pricing 
493.25 	Program and dispensed by 340B covered entities and ambulatory pharmacies under common 
493.26 	ownership of the 340B covered entity. Medical assistance does not cover drugs acquired 
493.27 	through the federal 340B Drug Pricing Program and dispensed by 340B contract pharmacies.

493.28 	Sec. 10. Minnesota Statutes 2016, section 256B.0625, subdivision 13e, is amended to 
493.29 	read:
493.30 		Subd. 13e.Payment rates. (a) Effective January 1, 2019, or upon federal approval, 
493.31 	whichever is later, the basis for determining the amount of payment shall be the lower of 
493.32 	the actual acquisition costs ingredient cost of the drugs or the maximum allowable cost by 
493.33 	the commissioner plus the fixed professional dispensing fee; or the usual and customary 
493.34 	price charged to the public. The usual and customary price is defined as the lowest price 
494.1 	charged by the provider to a patient who pays for the prescription by cash, check, or charge 
494.2 	account and includes those prices the pharmacy charges to customers enrolled in a 
494.3 	prescription savings club or prescription discount club administered by the pharmacy or 
494.4 	pharmacy chain. The amount of payment basis must be reduced to reflect all discount 
494.5 	amounts applied to the charge by any third-party provider/insurer agreement or contract for 
494.6 	submitted charges to medical assistance programs. The net submitted charge may not be 
494.7 	greater than the patient liability for the service. The pharmacy professional dispensing fee 
494.8 	shall be $3.65 $10.48 for legend prescription drugs prescriptions filled with legend drugs 
494.9 	meeting the definition of "covered outpatient drugs" according to United States Code, title 
494.10 	42, section 1396r-8, paragraph (k), clause (2), except that the dispensing fee for intravenous 
494.11 	solutions which must be compounded by the pharmacist shall be $8 $10.48 per bag, $14 
494.12 	per bag for cancer chemotherapy products, and $30 per bag for total parenteral nutritional 
494.13 	products dispensed in one liter quantities, or $44 per bag for total parenteral nutritional 
494.14 	products dispensed in quantities greater than one liter. The professional dispensing fee for 
494.15 	prescriptions filled with over-the-counter drugs meeting the definition of covered outpatient 
494.16 	drugs shall be $10.48 for dispensed quantities equal to or greater than the number of units 
494.17 	contained in the manufacturer's original package. The professional dispensing fee shall be 
494.18 	prorated based on the percentage of the package dispensed when the pharmacy dispenses 
494.19 	a quantity less than the number of units contained in the manufacturer's original package. 
494.20 	The pharmacy dispensing fee for prescribed over-the-counter drugs not meeting the definition 
494.21 	of covered outpatient drugs shall be $3.65, except that the fee shall be $1.31 for 
494.22 	retrospectively billing pharmacies when billing for quantities less than the number of units 
494.23 	contained in the manufacturer's original package. Actual acquisition cost includes quantity 
494.24 	and other special discounts except time and cash discounts. The actual acquisitioncost of 
494.25 	a drug shall be estimated by the commissioner at wholesale acquisition cost plus four percent 
494.26 	for independently owned pharmacies located in a designated rural area within Minnesota, 
494.27 	and at wholesale acquisition cost plus two percent for all other pharmacies. A pharmacy is 
494.28 	"independently owned" if it is one of four or fewer pharmacies under the same ownership 
494.29 	nationally. A "designated rural area" means an area defined as a small rural area or isolated 
494.30 	rural area according to the four-category classification of the Rural Urban Commuting Area 
494.31 	system developed for the United States Health Resources and Services Administration. 
494.32 	Effective January 1, 2014, the actual acquisitionfor quantities equal to or greater than the 
494.33 	number of units contained in the manufacturer's original package and shall be prorated based 
494.34 	on the percentage of the package dispensed when the pharmacy dispenses a quantity less 
494.35 	than the number of units contained in the manufacturer's original package. The National 
494.36 	Average Drug Acquisition Cost (NADAC) shall be used to determine the ingredient cost 
495.1 	of a drug. For drugs for which a NADAC is not reported, the commissioner shall estimate 
495.2 	the ingredient cost at wholesale acquisition cost minus two percent. The commissioner shall 
495.3 	establish the ingredient cost of a drug acquired through the federal 340B Drug Pricing 
495.4 	Program shall be estimated by the commissioner at wholesale acquisition cost minus 40 
495.5 	percent at a 340B Drug Pricing Program maximum allowable cost. The 340B Drug Pricing 
495.6 	Program maximum allowable cost shall be comparable to, but no higher than, the 340B 
495.7 	Drug Pricing Program ceiling price established by the Health Resources and Services 
495.8 	Administration. Wholesale acquisition cost is defined as the manufacturer's list price for a 
495.9 	drug or biological to wholesalers or direct purchasers in the United States, not including 
495.10 	prompt pay or other discounts, rebates, or reductions in price, for the most recent month for 
495.11 	which information is available, as reported in wholesale price guides or other publications 
495.12 	of drug or biological pricing data. The maximum allowable cost of a multisource drug may 
495.13 	be set by the commissioner and it shall be comparable to, but the actual acquisition cost of 
495.14 	the drug product and no higher than, the maximum amount paid by other third-party payors 
495.15 	in this state who have maximum allowable cost programs and no higher than the NADAC 
495.16 	of the generic product. Establishment of the amount of payment for drugs shall not be subject 
495.17 	to the requirements of the Administrative Procedure Act.
495.18 	(b) Pharmacies dispensing prescriptions to residents of long-term care facilities using 
495.19 	an automated drug distribution system meeting the requirements of section 151.58, or a 
495.20 	packaging system meeting the packaging standards set forth in Minnesota Rules, part 
495.21 	6800.2700, that govern the return of unused drugs to the pharmacy for reuse, may employ 
495.22 	retrospective billing for prescription drugs dispensed to long-term care facility residents. A 
495.23 	retrospectively billing pharmacy must submit a claim only for the quantity of medication 
495.24 	used by the enrolled recipient during the defined billing period. A retrospectively billing 
495.25 	pharmacy must use a billing period not less than one calendar month or 30 days.
495.26 	(c) An additional dispensing fee of $.30 may be added to the dispensing fee paid to 
495.27 	pharmacists for legend drug prescriptions dispensed to residents of long-term care facilities 
495.28 	when a unit dose blister card system, approved by the department, is used. Under this type 
495.29 	of dispensing system, the pharmacist must dispense a 30-day supply of drug. The National 
495.30 	Drug Code (NDC) from the drug container used to fill the blister card must be identified 
495.31 	on the claim to the department. The unit dose blister card containing the drug must meet 
495.32 	the packaging standards set forth in Minnesota Rules, part 6800.2700, that govern the return 
495.33 	of unused drugs to the pharmacy for reuse. A pharmacy provider using packaging that meets 
495.34 	the standards set forth in Minnesota Rules, part 6800.2700, is required to credit the 
495.35 	department for the actual acquisition cost of all unused drugs that are eligible for reuse, 
496.1 	unless the pharmacy is using retrospective billing. The commissioner may permit the drug 
496.2 	clozapine to be dispensed in a quantity that is less than a 30-day supply.
496.3 	(d) Whenever a maximum allowable cost has been set for If a pharmacy dispenses a 
496.4 	multisource drug, payment shall be the lower of the usual and customary price charged to 
496.5 	the public or the ingredient cost shall be the NADAC of the generic product or the maximum 
496.6 	allowable cost established by the commissioner unless prior authorization for the brand 
496.7 	name product has been granted according to the criteria established by the Drug Formulary 
496.8 	Committee as required by subdivision 13f, paragraph (a), and the prescriber has indicated 
496.9 	"dispense as written" on the prescription in a manner consistent with section 151.21, 
496.10 	subdivision 2.
496.11 	(e) The basis for determining the amount of payment for drugs administered in an 
496.12 	outpatient setting shall be the lower of the usual and customary cost submitted by the 
496.13 	provider, 106 percent of the average sales price as determined by the United States 
496.14 	Department of Health and Human Services pursuant to title XVIII, section 1847a of the 
496.15 	federal Social Security Act, the specialty pharmacy rate, or the maximum allowable cost 
496.16 	set by the commissioner. If average sales price is unavailable, the amount of payment must 
496.17 	be lower of the usual and customary cost submitted by the provider, the wholesale acquisition 
496.18 	cost, the specialty pharmacy rate, or the maximum allowable cost set by the commissioner. 
496.19 	Effective January 1, 2014 2019, or upon federal approval, whichever is later, the 
496.20 	commissioner shall discount the payment rate for drugs obtained through the federal 340B 
496.21 	Drug Pricing Program by 20 28.6 percent. The payment for drugs administered in an 
496.22 	outpatient setting shall be made to the administering facility or practitioner. A retail or 
496.23 	specialty pharmacy dispensing a drug for administration in an outpatient setting is not 
496.24 	eligible for direct reimbursement.
496.25 	(f) The commissioner may negotiate lower reimbursement rates establish maximum 
496.26 	allowable cost rates for specialty pharmacy products than the rates that are lower than the 
496.27 	ingredient cost formulas specified in paragraph (a). The commissioner may require 
496.28 	individuals enrolled in the health care programs administered by the department to obtain 
496.29 	specialty pharmacy products from providers with whom the commissioner has negotiated 
496.30 	lower reimbursement rates able to provide enhanced clinical services and willing to accept 
496.31 	the specialty pharmacy reimbursement. Specialty pharmacy products are defined as those 
496.32 	used by a small number of recipients or recipients with complex and chronic diseases that 
496.33 	require expensive and challenging drug regimens. Examples of these conditions include, 
496.34 	but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis C, growth 
496.35 	hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms of cancer. 
497.1 	Specialty pharmaceutical products include injectable and infusion therapies, biotechnology 
497.2 	drugs, antihemophilic factor products, high-cost therapies, and therapies that require complex 
497.3 	care. The commissioner shall consult with the formulary committee to develop a list of 
497.4 	specialty pharmacy products subject to this paragraph maximum allowable cost 
497.5 	reimbursement. In consulting with the formulary committee in developing this list, the 
497.6 	commissioner shall take into consideration the population served by specialty pharmacy 
497.7 	products, the current delivery system and standard of care in the state, and access to care 
497.8 	issues. The commissioner shall have the discretion to adjust the reimbursement rate maximum 
497.9 	allowable cost to prevent access to care issues.
497.10 	(g) Home infusion therapy services provided by home infusion therapy pharmacies must 
497.11 	be paid at rates according to subdivision 8d.

497.12 	Sec. 11. Minnesota Statutes 2016, section 256B.0625, subdivision 13f, is amended to read:
497.13 		Subd. 13f.Prior authorization. (a) The Formulary Committee shall review and 
497.14 	recommend drugs which require prior authorization. The Formulary Committee shall 
497.15 	establish general criteria to be used for the prior authorization of brand-name drugs for 
497.16 	which generically equivalent drugs are available, but the committee is not required to review 
497.17 	each brand-name drug for which a generically equivalent drug is available.
497.18 	(b) Prior authorization may be required by the commissioner before certain formulary 
497.19 	drugs are eligible for payment. The Formulary Committee may recommend drugs for prior 
497.20 	authorization directly to the commissioner. The commissioner may also request that the 
497.21 	Formulary Committee review a drug for prior authorization. Before the commissioner may 
497.22 	require prior authorization for a drug:
497.23 	(1) the commissioner must provide information to the Formulary Committee on the 
497.24 	impact that placing the drug on prior authorization may have on the quality of patient care 
497.25 	and on program costs, information regarding whether the drug is subject to clinical abuse 
497.26 	or misuse, and relevant data from the state Medicaid program if such data is available;
497.27 	(2) the Formulary Committee must review the drug, taking into account medical and 
497.28 	clinical data and the information provided by the commissioner; and
497.29 	(3) the Formulary Committee must hold a public forum and receive public comment for 
497.30 	an additional 15 days.
497.31 	The commissioner must provide a 15-day notice period before implementing the prior 
497.32 	authorization.
498.1 	(c) Except as provided in subdivision 13j, prior authorization shall not be required or 
498.2 	utilized for any atypical antipsychotic drug prescribed for the treatment of mental illness 
498.3 	if:
498.4 	(1) there is no generically equivalent drug available; and
498.5 	(2) the drug was initially prescribed for the recipient prior to July 1, 2003; or
498.6 	(3) the drug is part of the recipient's current course of treatment.
498.7 	This paragraph applies to any multistate preferred drug list or supplemental drug rebate 
498.8 	program established or administered by the commissioner. Prior authorization shall 
498.9 	automatically be granted for 60 days for brand name drugs prescribed for treatment of mental 
498.10 	illness within 60 days of when a generically equivalent drug becomes available, provided 
498.11 	that the brand name drug was part of the recipient's course of treatment at the time the 
498.12 	generically equivalent drug became available.
498.13 	(d) Prior authorization shall not be required or utilized for any antihemophilic factor 
498.14 	drug prescribed for the treatment of hemophilia and blood disorders where there is no 
498.15 	generically equivalent drug available if the prior authorization is used in conjunction with 
498.16 	any supplemental drug rebate program or multistate preferred drug list established or 
498.17 	administered by the commissioner.
498.18 	(e) (d) The commissioner may require prior authorization for brand name drugs whenever 
498.19 	a generically equivalent product is available, even if the prescriber specifically indicates 
498.20 	"dispense as written-brand necessary" on the prescription as required by section 151.21, 
498.21 	subdivision 2.
498.22 	(f) (e) Notwithstanding this subdivision, the commissioner may automatically require 
498.23 	prior authorization, for a period not to exceed 180 days, for any drug that is approved by 
498.24 	the United States Food and Drug Administration on or after July 1, 2005. The 180-day 
498.25 	period begins no later than the first day that a drug is available for shipment to pharmacies 
498.26 	within the state. The Formulary Committee shall recommend to the commissioner general 
498.27 	criteria to be used for the prior authorization of the drugs, but the committee is not required 
498.28 	to review each individual drug. In order to continue prior authorizations for a drug after the 
498.29 	180-day period has expired, the commissioner must follow the provisions of this subdivision.

498.30 	Sec. 12. Minnesota Statutes 2016, section 256B.0625, is amended by adding a subdivision 
498.31 	to read:
498.32 		Subd. 17d.Transportation services oversight. The commissioner shall contract with 
498.33 	a vendor or dedicate staff for oversight of providers of nonemergency medical transportation 
499.1 	services pursuant to the commissioner's authority in section 256B.04 and Minnesota Rules, 
499.2 	parts 9505.2160 to 9505.2245.

499.3 	EFFECTIVE DATE. This section is effective July 1, 2018.

499.4 	Sec. 13. Minnesota Statutes 2016, section 256B.0625, is amended by adding a subdivision 
499.5 	to read:
499.6 		Subd. 17e.Transportation provider termination. (a) A terminated nonemergency 
499.7 	medical transportation provider, including all named individuals on the current enrollment 
499.8 	disclosure form and known or discovered affiliates of the nonemergency medical 
499.9 	transportation provider, is not eligible to enroll as a nonemergency medical transportation 
499.10 	provider for five years following the termination.
499.11 	(b) After the five-year period in paragraph (a), if a provider seeks to reenroll as a 
499.12 	nonemergency medical transportation provider, the nonemergency medical transportation 
499.13 	provider must be placed on a one-year probation period. During a provider's probation 
499.14 	period, the commissioner shall complete unannounced site visits and request documentation 
499.15 	to review compliance with program requirements.

499.16 	EFFECTIVE DATE. This section is effective July 1, 2018.

499.17 	Sec. 14. Minnesota Statutes 2016, section 256B.0625, is amended by adding a subdivision 
499.18 	to read:
499.19 		Subd. 17f.Transportation provider training. The commissioner shall make available 
499.20 	to providers of nonemergency medical transportation and all drivers training materials and 
499.21 	online training opportunities regarding documentation requirements, documentation 
499.22 	procedures, and penalties for failing to meet documentation requirements.

499.23 	Sec. 15. [256B.758] REIMBURSEMENT FOR DOULA SERVICES.
499.24 	Effective for services provided on or after July 1, 2018, payments for doula services 
499.25 	provided by a certified doula shall be $47 per prenatal or postpartum visit, up to a total of 
499.26 	six visits; and $488 for attending and providing doula services at a birth.

499.27 	Sec. 16. COVERED OUTPATIENT DRUG RULE.
 499.28 	The commissioner of human services shall collaborate with the Minnesota Hospital 
499.29 	Association, the Minnesota Pharmacists Association, the Minnesota College of Pharmacy, 
499.30 	and other affected stakeholders to assess the impact of implementing the federal 2017 
500.1 	Covered Outpatient Drug Rule and develop a proposal to minimize negative impacts to 
500.2 	medical assistance enrollees and providers. The commissioner shall report the proposal to 
500.3 	the chairs and ranking minority members of the legislative committees with jurisdiction 
500.4 	over health and human services policy and finance by February 15, 2019.

500.5 	Sec. 17. PAIN MANAGEMENT.
 500.6 	(a) The Health Services Policy Committee established under Minnesota Statutes, section 
500.7 	256B.0625, subdivision 3c, shall evaluate and make recommendations on the integration 
500.8 	of nonpharmacologic pain management that are clinically viable and sustainable; reduce or 
500.9 	eliminate chronic pain conditions; improve functional status; and prevent addiction and 
500.10 	reduce dependence on opiates or other pain medications. The recommendations must be 
500.11 	based on best practices for the effective treatment of musculoskeletal pain provided by 
500.12 	health practitioners identified in paragraph (b), and covered under medical assistance. Each 
500.13 	health practitioner represented under paragraph (b) shall present the minimum best integrated 
500.14 	practice recommendations, policies, and scientific evidence for nonpharmacologic treatment 
500.15 	options for eliminating pain and improving functional status within their full professional 
500.16 	scope. Recommendations for integration of services may include guidance regarding 
500.17 	screening for co-occurring behavioral health diagnoses; protocols for communication between 
500.18 	all providers treating a unique individual, including protocols for follow-up; and universal 
500.19 	mechanisms to assess improvements in functional status.
500.20 	(b) In evaluating and making recommendations, the Health Services Policy Committee 
500.21 	shall consult and collaborate with the following health practitioners: acupuncture practitioners 
500.22 	licensed under Minnesota Statutes, chapter 147B; chiropractors licensed under Minnesota 
500.23 	Statutes, sections 148.01 to 148.10; physical therapists licensed under Minnesota Statutes, 
500.24 	sections 148.68 to 148.78; medical and osteopathic physicians licensed under Minnesota 
500.25 	Statutes, chapter 147, and advanced practice registered nurses licensed under Minnesota 
500.26 	Statutes, sections 148.171 to 148.285, with experience in providing primary care 
500.27 	collaboratively within a multidisciplinary team of health care practitioners who employ 
500.28 	nonpharmacologic pain therapies; and psychologists licensed under Minnesota Statutes, 
500.29 	section 148.907.
500.30 	(c) The commissioner shall submit a progress report to the chairs and ranking minority 
500.31 	members of the legislative committees with jurisdiction over health and human services 
500.32 	policy and finance by January 15, 2019, and shall report final recommendations by August 
500.33 	1, 2019. The final report may also contain recommendations for developing and implementing 
500.34 	a pilot program to assess the clinical viability, sustainability, and effectiveness of integrated 
501.1 	nonpharmacologic, multidisciplinary treatments for managing musculoskeletal pain and 
501.2 	improving functional status.

501.3 	Sec. 18. CONTRACT TO RECOVER THIRD-PARTY LIABILITY.
 501.4 	The commissioner shall contract with a vendor to implement a health insurance third-party 
501.5 	liability recovery program for medical assistance and MinnesotaCare. Under the terms of 
501.6 	the contract, the vendor shall be reimbursed using a percentage of the funds recovered. All 
501.7 	money recovered that remains after reimbursement of the vendor and the return of any 
501.8 	federal funds is available for operation of the medical assistance and MinnesotaCare 
501.9 	programs. The use of this money must be authorized in law by the legislature.

501.10 	EFFECTIVE DATE. This section is effective July 1, 2018.

501.11 	Sec. 19. MINNESOTA HEALTH POLICY COMMISSION; FIRST 
501.12 	APPOINTMENTS; FIRST MEETING.
 501.13 	The Health Policy Commission Advisory Council shall make its recommendations under 
501.14 	Minnesota Statutes, section 62J.90, subdivision 9, for candidates to serve on the Minnesota 
501.15 	Health Policy Commission to the Legislative Coordinating Commission by September 30, 
501.16 	2018. The Legislative Coordinating Commission shall make the first appointments of public 
501.17 	members to the Minnesota Health Policy Commission under Minnesota Statutes, section 
501.18 	62J.90, by January 15, 2019. The Legislative Coordinating Commission shall designate five 
501.19 	members to serve terms that are coterminous with the governor and six members to serve 
501.20 	terms that end on the first Monday in January one year after the terms of the other members 
501.21 	conclude. The director of the Legislative Coordinating Commission shall convene the first 
501.22 	meeting of the Minnesota Health Policy Commission by June 15, 2019, and shall act as the 
501.23 	chair until the commission elects a chair at its first meeting.

501.24 	Sec. 20.  REPEALER.
 501.25 	Minnesota Statutes 2017 Supplement, section 256B.0625, subdivision 31c, is repealed.

501.26 	ARTICLE 35
501.27 	HEALTH DEPARTMENT

501.28 	Section 1. Minnesota Statutes 2017 Supplement, section 103I.005, subdivision 2, is 
501.29 	amended to read:
502.1 		Subd. 2.Boring. "Boring" means a hole or excavation that is not used to extract water 
502.2 	and includes exploratory borings, bored geothermal heat exchangers, temporary borings, 
502.3 	and elevator borings.

502.4 	Sec. 2. Minnesota Statutes 2017 Supplement, section 103I.005, subdivision 8a, is amended 
502.5 	to read:
502.6 		Subd. 8a.Environmental well. "Environmental well" means an excavation 15 or more 
502.7 	feet in depth that is drilled, cored, bored, washed, driven, dug, jetted, or otherwise constructed 
502.8 	to:
502.9 	(1) conduct physical, chemical, or biological testing of groundwater, and includes a 
502.10 	groundwater quality monitoring or sampling well;
502.11 	(2) lower a groundwater level to control or remove contamination in groundwater, and 
502.12 	includes a remedial well and excludes horizontal trenches; or
502.13 	(3) monitor or measure physical, chemical, radiological, or biological parameters of the 
502.14 	earth and earth fluids, or for vapor recovery or venting systems. An environmental well 
502.15 	includes an excavation used to:
502.16 	(i) measure groundwater levels, including a piezometer;
502.17 	(ii) determine groundwater flow direction or velocity;
502.18 	(iii) measure earth properties such as hydraulic conductivity, bearing capacity, or 
502.19 	resistance;
502.20 	(iv) obtain samples of geologic materials for testing or classification; or
502.21 	(v) remove or remediate pollution or contamination from groundwater or soil through 
502.22 	the use of a vent, vapor recovery system, or sparge point.
502.23 	An environmental well does not include an exploratory boring.

502.24 	Sec. 3. Minnesota Statutes 2017 Supplement, section 103I.005, subdivision 17a, is amended 
502.25 	to read:
502.26 		Subd. 17a.Temporary environmental well boring. "Temporary environmental well" 
502.27 	means an environmental well as defined in section 103I.005, subdivision 8a, that is sealed 
502.28 	within 72 hours of the time construction on the well begins. "Temporary boring" means an 
502.29 	excavation that is 15 feet or more in depth that is sealed within 72 hours of the start of 
502.30 	construction and is drilled, cored, washed, driven, dug, jetted, or otherwise constructed to:
503.1 	(1) conduct physical, chemical, or biological testing of groundwater, including 
503.2 	groundwater quality monitoring;
503.3 	(2) monitor or measure physical, chemical, radiological, or biological parameters of 
503.4 	earth materials or earth fluids, including hydraulic conductivity, bearing capacity, or 
503.5 	resistance;
503.6 	(3) measure groundwater levels, including use of a piezometer;
503.7 	(4) determine groundwater flow direction or velocity; or
503.8 	(5) collect samples of geologic materials for testing or classification, or soil vapors for 
503.9 	testing or extraction.

503.10 	Sec. 4. Minnesota Statutes 2017 Supplement, section 103I.205, subdivision 1, is amended 
503.11 	to read:
503.12 		Subdivision 1.Notification required. (a) Except as provided in paragraph (d), a person 
503.13 	may not construct a water-supply, dewatering, or environmental well until a notification of 
503.14 	the proposed well on a form prescribed by the commissioner is filed with the commissioner 
503.15 	with the filing fee in section 103I.208, and, when applicable, the person has met the 
503.16 	requirements of paragraph (e). If after filing the well notification an attempt to construct a 
503.17 	well is unsuccessful, a new notification is not required unless the information relating to 
503.18 	the successful well has substantially changed. A notification is not required prior to 
503.19 	construction of a temporary environmental well boring.
503.20 	(b) The property owner, the property owner's agent, or the licensed contractor where a 
503.21 	well is to be located must file the well notification with the commissioner.
503.22 	(c) The well notification under this subdivision preempts local permits and notifications, 
503.23 	and counties or home rule charter or statutory cities may not require a permit or notification 
503.24 	for wells unless the commissioner has delegated the permitting or notification authority 
503.25 	under section 103I.111.
503.26 	(d) A person who is an individual that constructs a drive point water-supply well on 
503.27 	property owned or leased by the individual for farming or agricultural purposes or as the 
503.28 	individual's place of abode must notify the commissioner of the installation and location of 
503.29 	the well. The person must complete the notification form prescribed by the commissioner 
503.30 	and mail it to the commissioner by ten days after the well is completed. A fee may not be 
503.31 	charged for the notification. A person who sells drive point wells at retail must provide 
503.32 	buyers with notification forms and informational materials including requirements regarding 
504.1 	wells, their location, construction, and disclosure. The commissioner must provide the 
504.2 	notification forms and informational materials to the sellers.
504.3 	(e) When the operation of a well will require an appropriation permit from the 
504.4 	commissioner of natural resources, a person may not begin construction of the well until 
504.5 	the person submits the following information to the commissioner of natural resources:
504.6 	(1) the location of the well;
504.7 	(2) the formation or aquifer that will serve as the water source;
504.8 	(3) the maximum daily, seasonal, and annual pumpage rates and volumes that will be 
504.9 	requested in the appropriation permit; and
504.10 	(4) other information requested by the commissioner of natural resources that is necessary 
504.11 	to conduct the preliminary assessment required under section 103G.287, subdivision 1, 
504.12 	paragraph (c).
504.13 	The person may begin construction after receiving preliminary approval from the 
504.14 	commissioner of natural resources.

504.15 	Sec. 5. Minnesota Statutes 2017 Supplement, section 103I.205, subdivision 4, is amended 
504.16 	to read:
504.17 		Subd. 4.License required. (a) Except as provided in paragraph (b), (c), (d), or (e), 
504.18 	section 103I.401, subdivision 2, or 103I.601, subdivision 2, a person may not drill, construct, 
504.19 	repair, or seal a well or boring unless the person has a well contractor's license in possession.
504.20 	(b) A person may construct, repair, and seal an environmental well or temporary boring 
504.21 	if the person:
504.22 	(1) is a professional engineer licensed under sections 326.02 to 326.15 in the branches 
504.23 	of civil or geological engineering;
504.24 	(2) is a hydrologist or hydrogeologist certified by the American Institute of Hydrology;
504.25 	(3) is a professional geoscientist licensed under sections 326.02 to 326.15;
504.26 	(4) is a geologist certified by the American Institute of Professional Geologists; or
504.27 	(5) meets the qualifications established by the commissioner in rule.
504.28 	A person must be licensed by the commissioner as an environmental well contractor on 
504.29 	forms provided by the commissioner.
505.1 	(c) A person may do the following work with a limited well/boring contractor's license 
505.2 	in possession. A separate license is required for each of the four activities:
505.3 	(1) installing, repairing, and modifying well screens, pitless units and pitless adaptors, 
505.4 	well pumps and pumping equipment, and well casings from the pitless adaptor or pitless 
505.5 	unit to the upper termination of the well casing;
505.6 	(2) sealing wells and borings;
505.7 	(3) constructing, repairing, and sealing dewatering wells; or
505.8 	(4) constructing, repairing, and sealing bored geothermal heat exchangers.
505.9 	(d) A person may construct, repair, and seal an elevator boring with an elevator boring 
505.10 	contractor's license.
505.11 	(e) Notwithstanding other provisions of this chapter requiring a license, a license is not 
505.12 	required for a person who complies with the other provisions of this chapter if the person 
505.13 	is:
505.14 	(1) an individual who constructs a water-supply well on land that is owned or leased by 
505.15 	the individual and is used by the individual for farming or agricultural purposes or as the 
505.16 	individual's place of abode; or
505.17 	(2) an individual who performs labor or services for a contractor licensed under the 
505.18 	provisions of this chapter in connection with the construction, sealing, or repair of a well 
505.19 	or boring at the direction and under the personal supervision of a contractor licensed under 
505.20 	the provisions of this chapter; or.
505.21 	(3) a licensed plumber who is repairing submersible pumps or water pipes associated 
505.22 	with well water systems if: (i) the repair location is within an area where there is no licensed 
505.23 	well contractor within 50 miles, and (ii) the licensed plumber complies with all relevant 
505.24 	sections of the plumbing code.

505.25 	Sec. 6. Minnesota Statutes 2016, section 103I.205, subdivision 9, is amended to read:
505.26 		Subd. 9.Report of work. Within 30 60 days after completion or sealing of a well or 
505.27 	boring, the person doing the work must submit a verified report to the commissioner 
505.28 	containing the information specified by rules adopted under this chapter.
505.29 	Within 30 days after receiving the report, the commissioner shall send or otherwise 
505.30 	provide access to a copy of the report to the commissioner of natural resources, to the local 
505.31 	soil and water conservation district where the well is located, and to the director of the 
505.32 	Minnesota Geological Survey.

506.1 	Sec. 7. Minnesota Statutes 2017 Supplement, section 103I.208, subdivision 1, is amended 
506.2 	to read:
506.3 		Subdivision 1.Well notification fee. The well notification fee to be paid by a property 
506.4 	owner is:
506.5 	(1) for construction of a water supply well, $275, which includes the state core function 
506.6 	fee;
506.7 	(2) for a well sealing, $75 for each well or boring, which includes the state core function 
506.8 	fee, except that a single fee of $75 is required for all temporary environmental wells borings
506.9 	recorded on the sealing notification for a single property, having depths within a 25 foot 
506.10 	range, and sealed within 72 hours of start of construction, except that temporary borings 
506.11 	less than 25 feet in depth are exempt from the notification and fee requirements in this 
506.12 	chapter;
506.13 	(3) for construction of a dewatering well, $275, which includes the state core function 
506.14 	fee, for each dewatering well except a dewatering project comprising five or more dewatering 
506.15 	wells shall be assessed a single fee of $1,375 for the dewatering wells recorded on the 
506.16 	notification; and
506.17 	(4) for construction of an environmental well, $275, which includes the state core function 
506.18 	fee, except that a single fee of $275 is required for all environmental wells recorded on the 
506.19 	notification that are located on a single property, and except that no fee is required for 
506.20 	construction of a temporary environmental well boring.

506.21 	Sec. 8. Minnesota Statutes 2017 Supplement, section 103I.235, subdivision 3, is amended 
506.22 	to read:
506.23 		Subd. 3.Temporary environmental well boring and unsuccessful well exemption.
 506.24 	This section does not apply to temporary environmental wells borings or unsuccessful wells 
506.25 	that have been sealed by a licensed contractor in compliance with this chapter.

506.26 	Sec. 9. Minnesota Statutes 2016, section 103I.301, subdivision 6, is amended to read:
506.27 		Subd. 6.Notification required. A person may not seal a well or boring until a notification 
506.28 	of the proposed sealing is filed as prescribed by the commissioner. Temporary borings less 
506.29 	than 25 feet in depth are exempt from the notification requirements in this chapter.

507.1 	Sec. 10. Minnesota Statutes 2017 Supplement, section 103I.601, subdivision 4, is amended 
507.2 	to read:
507.3 		Subd. 4.Notification and map of borings. (a) By ten days before beginning exploratory 
507.4 	boring, an explorer must submit to the commissioner of health a notification of the proposed 
507.5 	boring on a form prescribed by the commissioner, map and a fee of $275 for each exploratory 
507.6 	boring.
507.7 	(b) By ten days before beginning exploratory boring, an explorer must submit to the 
507.8 	commissioners of health and natural resources a county road map on a single sheet of paper 
507.9 	that is 8-1/2 inches by 11 inches in size and having a scale of one-half inch equal to one 
507.10 	mile, as prepared by the Department of Transportation, or a 7.5 minute series topographic 
507.11 	map (1:24,000 scale), as prepared by the United States Geological Survey, showing the 
507.12 	location of each proposed exploratory boring to the nearest estimated 40 acre parcel. 
507.13 	Exploratory boring that is proposed on the map may not be commenced later than 180 days 
507.14 	after submission of the map, unless a new map is submitted.

507.15 	Sec. 11. [137.68] ADVISORY COUNCIL ON RARE DISEASES.
507.16 		Subdivision 1.Establishment. The Board of Regents of the University of Minnesota is 
507.17 	requested to establish an advisory council on rare diseases to provide advice on research, 
507.18 	diagnosis, treatment, and education related to rare diseases. For purposes of this section, 
507.19 	"rare disease" has the meaning given in United States Code, title 21, section 360bb. The 
507.20 	council shall be called the Chloe Barnes Advisory Council on Rare Diseases.
507.21 		Subd. 2.Membership. (a) The advisory council may consist of public members appointed 
507.22 	by the Board of Regents or a designee according to paragraph (b) and four members of the 
507.23 	legislature appointed according to paragraph (c).
507.24 	(b) The Board of Regents or a designee is requested to appoint the following public 
507.25 	members:
507.26 	(1) three physicians licensed and practicing in the state with experience researching, 
507.27 	diagnosing, or treating rare diseases;
507.28 	(2) one registered nurse or advanced practice registered nurse licensed and practicing 
507.29 	in the state with experience treating rare diseases;
507.30 	(3) at least two hospital administrators, or their designees, from hospitals in the state 
507.31 	that provide care to persons diagnosed with a rare disease. One administrator or designee 
507.32 	appointed under this clause must represent a hospital in which the scope of service focuses 
507.33 	on rare diseases of pediatric patients;
508.1 	(4) three persons age 18 or older who either have a rare disease or are a caregiver of a 
508.2 	person with a rare disease;
508.3 	(5) a representative of a rare disease patient organization that operates in the state;
508.4 	(6) a social worker with experience providing services to persons diagnosed with a rare 
508.5 	disease;
508.6 	(7) a pharmacist with experience with drugs used to treat rare diseases;
508.7 	(8) a dentist licensed and practicing in the state with experience treating rare diseases;
508.8 	(9) a representative of the biotechnology industry;
508.9 	(10) a representative of health plan companies;
508.10 	(11) a medical researcher with experience conducting research on rare diseases;
508.11 	(12) a genetic counselor with experience providing services to persons diagnosed with 
508.12 	a rare disease or caregivers of those persons; and
508.13 	(13) other public members, who may serve on an ad hoc basis.
508.14 	(c) The advisory council shall include two members of the senate, one appointed by the 
508.15 	majority leader and one appointed by the minority leader; and two members of the house 
508.16 	of representatives, one appointed by the speaker of the house and one appointed by the 
508.17 	minority leader.
508.18 	(d) The commissioner of health or a designee, a representative of Mayo Medical School, 
508.19 	and a representative of the University of Minnesota Medical School, shall serve as ex officio, 
508.20 	nonvoting members of the advisory council.
508.21 	(e) Initial appointments to the advisory council shall be made no later than July 1, 2018. 
508.22 	Members appointed according to paragraph (b) shall serve for a term of three years, except 
508.23 	that the initial members appointed according to paragraph (b) shall have an initial term of 
508.24 	two, three, or four years determined by lot by the chairperson. Members appointed according 
508.25 	to paragraph (b) shall serve until their successors have been appointed.
508.26 		Subd. 3.Meetings. The Board of Regents or a designee is requested to convene the first 
508.27 	meeting of the advisory council no later than September 1, 2018. The advisory council shall 
508.28 	meet at the call of the chairperson or at the request of a majority of advisory council members.
508.29 		Subd. 4.Duties. (a) The advisory council's duties may include, but are not limited to:
508.30 	(1) in conjunction with the state's medical schools, the state's schools of public health, 
508.31 	and hospitals in the state that provide care to persons diagnosed with a rare disease, 
509.1 	developing resources or recommendations relating to quality of and access to treatment and 
509.2 	services in the state for persons with a rare disease, including but not limited to:
509.3 	(i) a list of existing, publicly accessible resources on research, diagnosis, treatment, and 
509.4 	education relating to rare diseases;
509.5 	(ii) identifying best practices for rare disease care implemented in other states, at the 
509.6 	national level, and at the international level, that will improve rare disease care in the state 
509.7 	and seeking opportunities to partner with similar organizations in other states and countries;
509.8 	(iii) identifying problems faced by patients with a rare disease when changing health 
509.9 	plans, including recommendations on how to remove obstacles faced by these patients to 
509.10 	finding a new health plan and how to improve the ease and speed of finding a new health 
509.11 	plan that meets the needs of patients with a rare disease; and
509.12 	(iv) identifying best practices to ensure health care providers are adequately informed 
509.13 	of the most effective strategies for recognizing and treating rare diseases; and
509.14 	(2) advising, consulting, and cooperating with the Department of Health, the Advisory 
509.15 	Committee on Heritable and Congenital Disorders, and other agencies of state government 
509.16 	in developing information and programs for the public and the health care community 
509.17 	relating to diagnosis, treatment, and awareness of rare diseases.
509.18 	(b) The advisory council shall collect additional topic areas for study and evaluation 
509.19 	from the general public. In order for the advisory council to study and evaluate a topic, the 
509.20 	topic must be approved for study and evaluation by the advisory council.
509.21 		Subd. 5.Conflict of interest. Advisory council members are subject to the Board of 
509.22 	Regents policy on conflicts of interest.
509.23 		Subd. 6.Annual report. By January 1 of each year, beginning January 1, 2019, the 
509.24 	advisory council shall report to the chairs and ranking minority members of the legislative 
509.25 	committees with jurisdiction over higher education and health care policy on the advisory 
509.26 	council's activities under subdivision 4 and other issues on which the advisory council may 
509.27 	choose to report.

509.28 	Sec. 12. Minnesota Statutes 2016, section 144.121, subdivision 1a, is amended to read:
509.29 		Subd. 1a.Fees for ionizing radiation-producing equipment. (a) A facility with ionizing 
509.30 	radiation-producing equipment must pay an annual initial or annual renewal registration 
509.31 	fee consisting of a base facility fee of $100 and an additional fee for each radiation source, 
509.32 	as follows:

510.1	(1)
	medical or veterinary equipment
	$
	100
		
510.2	(2)
	dental x-ray equipment
	$
	40
		
510.3510.4	(3)
	x-ray equipment not used on 
humans or animals
	$
	100
		
510.5510.6
510.7	(4)
	devices with sources of ionizing 
radiation not used on humans or 
animals
	$
	100
		
510.8	(5)
	security screening system
	$
	100
		
510.9 	(b) A facility with radiation therapy and accelerator equipment must pay an annual 
510.10 	registration fee of $500. A facility with an industrial accelerator must pay an annual 
510.11 	registration fee of $150.
510.12 	(c) Electron microscopy equipment is exempt from the registration fee requirements of 
510.13 	this section.
510.14 	(d) For purposes of this section, a security screening system means radiation-producing 
510.15 	equipment designed and used for security screening of humans who are in custody of a 
510.16 	correctional or detention facility, and is used by the facility to image and identify contraband 
510.17 	items concealed within or on all sides of a human body. For purposes of this section, a 
510.18 	correctional or detention facility is a facility licensed by the commissioner of corrections 
510.19 	under section 241.021, and operated by a state agency or political subdivision charged with 
510.20 	detection, enforcement, or incarceration in respect to state criminal and traffic laws.

510.21 	Sec. 13. Minnesota Statutes 2016, section 144.121, is amended by adding a subdivision 
510.22 	to read:
510.23 		Subd. 9.Exemption from examination requirements; operators of security screening 
510.24 	systems. (a) An employee of a correctional or detention facility who operates a security 
510.25 	screening system and the facility in which the system is being operated are exempt from 
510.26 	the requirements of subdivisions 5 and 6.
510.27 	(b) An employee of a correctional or detention facility who operates a security screening 
510.28 	system and the facility in which the system is being operated must meet the requirements 
510.29 	of a variance to Minnesota Rules, parts 4732.0305 and 4732.0565, issued under Minnesota 
510.30 	Rules, parts 4717.7000 to 4717.7050. This paragraph expires on December 31 of the year 
510.31 	that the permanent rules adopted by the commissioner governing security screening systems 
510.32 	are published in the State Register.

510.33 	EFFECTIVE DATE. This section is effective 30 days following final enactment.

511.1 	Sec. 14. Minnesota Statutes 2016, section 144.1506, subdivision 2, is amended to read:
511.2 		Subd. 2.Expansion grant program. (a) The commissioner of health shall award primary 
511.3 	care residency expansion grants to eligible primary care residency programs to plan and 
511.4 	implement new residency slots. A planning grant shall not exceed $75,000, and a training 
511.5 	grant shall not exceed $150,000 per new residency slot for the first year, $100,000 for the 
511.6 	second year, and $50,000 for the third year of the new residency slot. For eligible residency 
511.7 	programs longer than three years, training grants may be awarded for the duration of the 
511.8 	residency, not exceeding an average of $100,000 per residency slot per year.
511.9 	(b) Funds may be spent to cover the costs of:
511.10 	(1) planning related to establishing an accredited primary care residency program;
511.11 	(2) obtaining accreditation by the Accreditation Council for Graduate Medical Education 
511.12 	or another national body that accredits residency programs;
511.13 	(3) establishing new residency programs or new resident training slots;
511.14 	(4) recruitment, training, and retention of new residents and faculty;
511.15 	(5) travel and lodging for new residents;
511.16 	(6) faculty, new resident, and preceptor salaries related to new residency slots;
511.17 	(7) training site improvements, fees, equipment, and supplies required for new primary 
511.18 	care resident training slots; and
511.19 	(8) supporting clinical education in which trainees are part of a primary care team model.

511.20 	Sec. 15. Minnesota Statutes 2016, section 144.225, subdivision 2, is amended to read:
511.21 		Subd. 2.Data about births. (a) Except as otherwise provided in this subdivision, data 
511.22 	pertaining to the birth of a child to a woman who was not married to the child's father when 
511.23 	the child was conceived nor when the child was born, including the original record of birth 
511.24 	and the certified vital record, are confidential data. At the time of the birth of a child to a 
511.25 	woman who was not married to the child's father when the child was conceived nor when 
511.26 	the child was born, the mother may designate demographic data pertaining to the birth as 
511.27 	public. Notwithstanding the designation of the data as confidential, it may be disclosed:
511.28 	(1) to a parent or guardian of the child;
511.29 	(2) to the child when the child is 16 years of age or older;
511.30 	(3) under paragraph (b) or (e); or
512.1 	(4) pursuant to a court order. For purposes of this section, a subpoena does not constitute 
512.2 	a court order.
512.3 	(b) Unless the child is adopted, data pertaining to the birth of a child that are not accessible 
512.4 	to the public become public data if 100 years have elapsed since the birth of the child who 
512.5 	is the subject of the data, or as provided under section 13.10, whichever occurs first.
512.6 	(c) If a child is adopted, data pertaining to the child's birth are governed by the provisions 
512.7 	relating to adoption records, including sections 13.10, subdivision 5; 144.218, subdivision 
512.8 	1; 144.2252; and 259.89.
512.9 	(d) The name and address of a mother under paragraph (a) and the child's date of birth 
512.10 	may be disclosed to the county social services, tribal health department, or public health 
512.11 	member of a family services collaborative for purposes of providing services under section 
512.12 	124D.23.
512.13 	(e) The commissioner of human services shall have access to birth records for:
512.14 	(1) the purposes of administering medical assistance and the MinnesotaCare program;
512.15 	(2) child support enforcement purposes; and
512.16 	(3) other public health purposes as determined by the commissioner of health.
512.17 	(f) Tribal child support programs shall have access to birth records for child support 
512.18 	enforcement purposes.

512.19 	Sec. 16. Minnesota Statutes 2016, section 144.225, subdivision 2a, is amended to read:
512.20 		Subd. 2a.Health data associated with birth registration. Information from which an 
512.21 	identification of risk for disease, disability, or developmental delay in a mother or child can 
512.22 	be made, that is collected in conjunction with birth registration or fetal death reporting, is 
512.23 	private data as defined in section 13.02, subdivision 12. The commissioner may disclose to 
512.24 	a tribal health department or community health board, as defined in section 145A.02, 
512.25 	subdivision 5, health data associated with birth registration which identifies a mother or 
512.26 	child at high risk for serious disease, disability, or developmental delay in order to assure 
512.27 	access to appropriate health, social, or educational services. Notwithstanding the designation 
512.28 	of the private data, the commissioner of human services shall have access to health data 
512.29 	associated with birth registration for:
512.30 	(1) purposes of administering medical assistance and the MinnesotaCare program; and
512.31 	(2) for other public health purposes as determined by the commissioner of health.

513.1 	Sec. 17. Minnesota Statutes 2016, section 144.225, subdivision 7, is amended to read:
513.2 		Subd. 7.Certified birth or death record. (a) The state registrar or local issuance office 
513.3 	shall issue a certified birth or death record or a statement of no vital record found to an 
513.4 	individual upon the individual's proper completion of an attestation provided by the 
513.5 	commissioner and payment of the required fee:
513.6 	(1) to a person who has a tangible interest in the requested vital record. A person who 
513.7 	has a tangible interest is:
513.8 	(i) the subject of the vital record;
513.9 	(ii) a child of the subject;
513.10 	(iii) the spouse of the subject;
513.11 	(iv) a parent of the subject;
513.12 	(v) the grandparent or grandchild of the subject;
513.13 	(vi) if the requested record is a death record, a sibling of the subject;
513.14 	(vii) the party responsible for filing the vital record;
513.15 	(viii) the legal custodian, guardian or conservator, or health care agent of the subject;
513.16 	(ix) a personal representative, by sworn affidavit of the fact that the certified copy is 
513.17 	required for administration of the estate;
513.18 	(x) a successor of the subject, as defined in section 524.1-201, if the subject is deceased, 
513.19 	by sworn affidavit of the fact that the certified copy is required for administration of the 
513.20 	estate;
513.21 	(xi) if the requested record is a death record, a trustee of a trust by sworn affidavit of 
513.22 	the fact that the certified copy is needed for the proper administration of the trust;
513.23 	(xii) a person or entity who demonstrates that a certified vital record is necessary for the 
513.24 	determination or protection of a personal or property right, pursuant to rules adopted by the 
513.25 	commissioner; or
513.26 	(xiii) an adoption agency in order to complete confidential postadoption searches as 
513.27 	required by section 259.83;
513.28 	(2) to any local, state, tribal, or federal governmental agency upon request if the certified 
513.29 	vital record is necessary for the governmental agency to perform its authorized duties;
513.30 	(3) to an attorney upon evidence of the attorney's license;
514.1 	(4) pursuant to a court order issued by a court of competent jurisdiction. For purposes 
514.2 	of this section, a subpoena does not constitute a court order; or
514.3 	(5) to a representative authorized by a person under clauses (1) to (4).
514.4 	(b) The state registrar or local issuance office shall also issue a certified death record to 
514.5 	an individual described in paragraph (a), clause (1), items (ii) to (viii), if, on behalf of the 
514.6 	individual, a licensed mortician furnishes the registrar with a properly completed attestation 
514.7 	in the form provided by the commissioner within 180 days of the time of death of the subject 
514.8 	of the death record. This paragraph is not subject to the requirements specified in Minnesota 
514.9 	Rules, part 4601.2600, subpart 5, item B.

514.10 	Sec. 18. [144.397] STATEWIDE TOBACCO CESSATION SERVICES.
514.11 	(a) The commissioner of health shall administer, or contract for the administration of, 
514.12 	statewide tobacco cessation services to assist Minnesotans who are seeking advice or services 
514.13 	to help them quit using tobacco products. The commissioner shall establish statewide public 
514.14 	awareness activities to inform the public of the availability of the services and encourage 
514.15 	the public to utilize the services because of the dangers and harm of tobacco use and 
514.16 	dependence.
514.17 	(b) Services to be provided may include, but are not limited to:
514.18 	(1) telephone-based coaching and counseling;
514.19 	(2) referrals;
514.20 	(3) written materials mailed upon request;
514.21 	(4) Web-based texting or e-mail services; and
514.22 	(5) free Food and Drug Administration-approved tobacco cessation medications.
514.23 	(c) Services provided must be consistent with evidence-based best practices in tobacco 
514.24 	cessation services. Services provided must be coordinated with employer, health plan 
514.25 	company, and private sector tobacco prevention and cessation services that may be available 
514.26 	to individuals depending on their employment or health coverage.

514.27 	Sec. 19. Minnesota Statutes 2016, section 144A.43, subdivision 11, is amended to read:
514.28 		Subd. 11.Medication administration. "Medication administration" means performing 
514.29 	a set of tasks to ensure a client takes medications, and includes that include the following:
514.30 	(1) checking the client's medication record;
515.1 	(2) preparing the medication as necessary;
515.2 	(3) administering the medication to the client;
515.3 	(4) documenting the administration or reason for not administering the medication; and
515.4 	(5) reporting to a registered nurse or appropriate licensed health professional any concerns 
515.5 	about the medication, the client, or the client's refusal to take the medication.

515.6 	Sec. 20. Minnesota Statutes 2016, section 144A.43, is amended by adding a subdivision 
515.7 	to read:
515.8 		Subd. 12a.Medication reconciliation. "Medication reconciliation" means the process 
515.9 	of identifying the most accurate list of all medications the client is taking, including the 
515.10 	name, dosage, frequency, and route by comparing the client record to an external list of 
515.11 	medications obtained from the client, hospital, prescriber, or other provider.

515.12 	Sec. 21. Minnesota Statutes 2016, section 144A.43, subdivision 27, is amended to read:
515.13 		Subd. 27.Service plan agreement. "Service plan agreement" means the written plan
515.14 	agreement between the client or client's representative and the temporary licensee or licensee 
515.15 	about the services that will be provided to the client.

515.16 	Sec. 22. Minnesota Statutes 2016, section 144A.43, subdivision 30, is amended to read:
515.17 		Subd. 30.Standby assistance. "Standby assistance" means the presence of another 
515.18 	person within arm's reach to minimize the risk of injury while performing daily activities 
515.19 	through physical intervention or cuing to assist a client with an assistive task by providing 
515.20 	cues, oversight, and minimal physical assistance.

515.21 	Sec. 23. Minnesota Statutes 2016, section 144A.472, subdivision 5, is amended to read:
515.22 		Subd. 5.Transfers prohibited; Changes in ownership. Any(a) A home care license 
515.23 	issued by the commissioner may not be transferred to another party. Before acquiring 
515.24 	ownership of or a controlling interest in a home care provider business, a prospective 
515.25 	applicant owner must apply for a new temporary license. A change of ownership is a transfer 
515.26 	of operational control to a different business entityof the home care provider business and 
515.27 	includes:
515.28 	(1) transfer of the business to a different or new corporation;
515.29 	(2) in the case of a partnership, the dissolution or termination of the partnership under 
515.30 	chapter 323A, with the business continuing by a successor partnership or other entity;
516.1 	(3) relinquishment of control of the provider to another party, including to a contract 
516.2 	management firm that is not under the control of the owner of the business' assets;
516.3 	(4) transfer of the business by a sole proprietor to another party or entity; or
516.4 	(5) in the case of a privately held corporation, the change in transfer of ownership or 
516.5 	control of 50 percent or more of the outstanding voting stock controlling interest of a home 
516.6 	care provider business not covered by clauses (1) to (4).
516.7 	(b) An employee who was employed by the previous owner of the home care provider 
516.8 	business prior to the effective date of a change in ownership under paragraph (a), and who 
516.9 	will be employed by the new owner in the same or a similar capacity, shall be treated as if 
516.10 	no change in employer occurred, with respect to orientation, training, tuberculosis testing, 
516.11 	background studies, and competency testing and training on the policies identified in 
516.12 	subdivision 1, clause (14), and subdivision 2, if applicable.
516.13 	(c) Notwithstanding paragraph (b), a new owner of a home care provider business must 
516.14 	ensure that employees of the provider receive and complete training and testing on any 
516.15 	provisions of policies that differ from those of the previous owner, within 90 days after the 
516.16 	date of the change in ownership.

516.17 	Sec. 24. Minnesota Statutes 2017 Supplement, section 144A.472, subdivision 7, is amended 
516.18 	to read:
516.19 		Subd. 7.Fees; application, change of ownership, and renewal. (a) An initial applicant 
516.20 	seeking temporary home care licensure must submit the following application fee to the 
516.21 	commissioner along with a completed application:
516.22 	(1) for a basic home care provider, $2,100; or
516.23 	(2) for a comprehensive home care provider, $4,200.
516.24 	(b) A home care provider who is filing a change of ownership as required under 
516.25 	subdivision 5 must submit the following application fee to the commissioner, along with 
516.26 	the documentation required for the change of ownership:
516.27 	(1) for a basic home care provider, $2,100; or
516.28 	(2) for a comprehensive home care provider, $4,200.
516.29 	(c) For the period ending June 30, 2018, a home care provider who is seeking to renew 
516.30 	the provider's license shall pay a fee to the commissioner based on revenues derived from 
516.31 	the provision of home care services during the calendar year prior to the year in which the 
516.32 	application is submitted, according to the following schedule:
517.1 	License Renewal Fee

517.2	Provider Annual Revenue
	Fee
		
517.3	greater than $1,500,000
	$6,625
		
517.4
517.5	greater than $1,275,000 and no more than 
$1,500,000
	$5,797
		
517.6
517.7	greater than $1,100,000 and no more than 
$1,275,000
	$4,969
		
517.8
517.9	greater than $950,000 and no more than 
$1,100,000
	$4,141
		
517.10	greater than $850,000 and no more than $950,000
	$3,727
		
517.11	greater than $750,000 and no more than $850,000
	$3,313
		
517.12	greater than $650,000 and no more than $750,000
	$2,898
		
517.13	greater than $550,000 and no more than $650,000
	$2,485
		
517.14	greater than $450,000 and no more than $550,000
	$2,070
		
517.15	greater than $350,000 and no more than $450,000
	$1,656
		
517.16	greater than $250,000 and no more than $350,000
	$1,242
		
517.17	greater than $100,000 and no more than $250,000
	$828
		
517.18	greater than $50,000 and no more than $100,000
	$500
		
517.19	greater than $25,000 and no more than $50,000
	$400
		
517.20	no more than $25,000
	$200
		
517.21 	(d) For the period between July 1, 2018, and June 30, 2020, a home care provider who 
517.22 	is seeking to renew the provider's license shall pay a fee to the commissioner in an amount 
517.23 	that is ten percent higher than the applicable fee in paragraph (c). A home care provider's 
517.24 	fee shall be based on revenues derived from the provision of home care services during the 
517.25 	calendar year prior to the year in which the application is submitted.
517.26 	(e) Beginning July 1, 2020, a home care provider who is seeking to renew the provider's 
517.27 	license shall pay a fee to the commissioner based on revenues derived from the provision 
517.28 	of home care services during the calendar year prior to the year in which the application is 
517.29 	submitted, according to the following schedule:
517.30 	License Renewal Fee

517.31	Provider Annual Revenue
	Fee
		
517.32	greater than $1,500,000
	$7,651
		
517.33
517.34	greater than $1,275,000 and no more than 
$1,500,000
	$6,695
		
517.35
517.36	greater than $1,100,000 and no more than 
$1,275,000
	$5,739
		
517.37
517.38	greater than $950,000 and no more than 
$1,100,000
	$4,783
		
518.1	greater than $850,000 and no more than $950,000
	$4,304
		
518.2	greater than $750,000 and no more than $850,000
	$3,826
		
518.3	greater than $650,000 and no more than $750,000
	$3,347
		
518.4	greater than $550,000 and no more than $650,000
	$2,870
		
518.5	greater than $450,000 and no more than $550,000
	$2,391
		
518.6	greater than $350,000 and no more than $450,000
	$1,913
		
518.7	greater than $250,000 and no more than $350,000
	$1,434
		
518.8	greater than $100,000 and no more than $250,000
	$957
		
518.9	greater than $50,000 and no more than $100,000
	$577
		
518.10	greater than $25,000 and no more than $50,000
	$462
		
518.11	no more than $25,000
	$231
		
518.12 	(f) If requested, the home care provider shall provide the commissioner information to 
518.13 	verify the provider's annual revenues or other information as needed, including copies of 
518.14 	documents submitted to the Department of Revenue.
518.15 	(g) At each annual renewal, a home care provider may elect to pay the highest renewal 
518.16 	fee for its license category, and not provide annual revenue information to the commissioner.
518.17 	(h) A temporary license or license applicant, or temporary licensee or licensee that 
518.18 	knowingly provides the commissioner incorrect revenue amounts for the purpose of paying 
518.19 	a lower license fee, shall be subject to a civil penalty in the amount of double the fee the 
518.20 	provider should have paid.
518.21 	(i) The fee for failure to comply with the notification requirements of section 144A.473, 
518.22 	subdivision 2, paragraph (c), is $1,000.
518.23 	(j) Fees and penalties collected under this section shall be deposited in the state treasury 
518.24 	and credited to the state government special revenue fund. All fees are nonrefundable. Fees 
518.25 	collected under paragraphs (c), (d), and (e) are nonrefundable even if received before July 
518.26 	1, 2017, for temporary licenses or licenses being issued effective July 1, 2017, or later.

518.27 	Sec. 25. Minnesota Statutes 2016, section 144A.473, is amended to read:
518.28 	144A.473 ISSUANCE OF TEMPORARY LICENSE AND LICENSE RENEWAL.
518.29 		Subdivision 1.Temporary license and renewal of license. (a) The department shall 
518.30 	review each application to determine the applicant's knowledge of and compliance with 
518.31 	Minnesota home care regulations. Before granting a temporary license or renewing a license, 
518.32 	the commissioner may further evaluate the applicant or licensee by requesting additional 
519.1 	information or documentation or by conducting an on-site survey of the applicant to 
519.2 	determine compliance with sections 144A.43 to 144A.482.
519.3 	(b) Within 14 calendar days after receiving an application for a license, the commissioner 
519.4 	shall acknowledge receipt of the application in writing. The acknowledgment must indicate 
519.5 	whether the application appears to be complete or whether additional information is required 
519.6 	before the application will be considered complete.
519.7 	(c) Within 90 days after receiving a complete application, the commissioner shall issue 
519.8 	a temporary license, renew the license, or deny the license.
519.9 	(d) The commissioner shall issue a license that contains the home care provider's name, 
519.10 	address, license level, expiration date of the license, and unique license number. All licenses, 
519.11 	except for temporary licenses issued under subdivision 2, are valid for up to one year from 
519.12 	the date of issuance.
519.13 		Subd. 2.Temporary license. (a) For new license applicants, the commissioner shall 
519.14 	issue a temporary license for either the basic or comprehensive home care level. A temporary 
519.15 	license is effective for up to one year from the date of issuance, except that a temporary 
519.16 	license may be extended according to subdivision 3. Temporary licensees must comply with 
519.17 	sections 144A.43 to 144A.482.
519.18 	(b) During the temporary license year period, the commissioner shall survey the temporary 
519.19 	licensee within 90 calendar days after the commissioner is notified or has evidence that the 
519.20 	temporary licensee is providing home care services.
519.21 	(c) Within five days of beginning the provision of services, the temporary licensee must 
519.22 	notify the commissioner that it is serving clients. The notification to the commissioner may 
519.23 	be mailed or e-mailed to the commissioner at the address provided by the commissioner. If 
519.24 	the temporary licensee does not provide home care services during the temporary license 
519.25 	year period, then the temporary license expires at the end of the year period and the applicant 
519.26 	must reapply for a temporary home care license.
519.27 	(d) A temporary licensee may request a change in the level of licensure prior to being 
519.28 	surveyed and granted a license by notifying the commissioner in writing and providing 
519.29 	additional documentation or materials required to update or complete the changed temporary 
519.30 	license application. The applicant must pay the difference between the application fees 
519.31 	when changing from the basic level to the comprehensive level of licensure. No refund will 
519.32 	be made if the provider chooses to change the license application to the basic level.
520.1 	(e) If the temporary licensee notifies the commissioner that the licensee has clients within 
520.2 	45 days prior to the temporary license expiration, the commissioner may extend the temporary 
520.3 	license for up to 60 days in order to allow the commissioner to complete the on-site survey 
520.4 	required under this section and follow-up survey visits.
520.5 		Subd. 3.Temporary licensee survey. (a) If the temporary licensee is in substantial 
520.6 	compliance with the survey, the commissioner shall issue either a basic or comprehensive 
520.7 	home care license. If the temporary licensee is not in substantial compliance with the survey, 
520.8 	the commissioner shall either: (1) not issue a basic or comprehensive license and there will 
520.9 	be no contested hearing right under chapter 14 terminate the temporary license; or (2) extend 
520.10 	the temporary license for a period not to exceed 90 days and apply conditions, as permitted 
520.11 	under section 144A.475, subdivision 2, to the extension of a temporary license. If the 
520.12 	temporary licensee is not in substantial compliance with the survey within the time period 
520.13 	of the extension, or if the temporary licensee does not satisfy the license conditions, the 
520.14 	commissioner may deny the license.
520.15 	(b) If the temporary licensee whose basic or comprehensive license has been denied or 
520.16 	extended with conditions disagrees with the conclusions of the commissioner, then the 
520.17 	temporary licensee may request a reconsideration by the commissioner or commissioner's 
520.18 	designee. The reconsideration request process must be conducted internally by the 
520.19 	commissioner or commissioner's designee, and chapter 14 does not apply.
520.20 	(c) The temporary licensee requesting reconsideration must make the request in writing 
520.21 	and must list and describe the reasons why the temporary licensee disagrees with the decision 
520.22 	to deny the basic or comprehensive home care license or the decision to extend the temporary 
520.23 	license with conditions.
520.24 	(d) The reconsideration request and supporting documentation must be received by the 
520.25 	commissioner within 15 calendar days after the date the temporary licensee receives the 
520.26 	correction order.
520.27 	(e) A temporary licensee whose license is denied, is permitted to continue operating as 
520.28 	a home care provider during the period of time when:
520.29 	(1) a reconsideration request is in process;
520.30 	(2) an extension of a temporary license is being negotiated;
520.31 	(3) the placement of conditions on a temporary license is being negotiated; or
520.32 	(4) a transfer of home care clients from the temporary licensee to a new home care 
520.33 	provider is in process.
521.1 	(f) A temporary licensee whose license is denied must comply with the requirements 
521.2 	for notification and transfer of clients in section 144A.475, subdivision 5.

521.3 	Sec. 26. Minnesota Statutes 2016, section 144A.474, subdivision 2, is amended to read:
521.4 		Subd. 2.Types of home care surveys. (a) "Initial full survey" means the survey of a 
521.5 	new temporary licensee conducted after the department is notified or has evidence that the 
521.6 	temporary licensee is providing home care services to determine if the provider is in 
521.7 	compliance with home care requirements. Initial full surveys must be completed within 14 
521.8 	months after the department's issuance of a temporary basic or comprehensive license.
521.9 	(b) "Change in ownership survey" means a full survey of a new licensee due to a change 
521.10 	in ownership. Change in ownership surveys must be completed within six months after the 
521.11 	department's issuance of a new license due to a change in ownership.
521.12 	(c) "Core survey" means periodic inspection of home care providers to determine ongoing 
521.13 	compliance with the home care requirements, focusing on the essential health and safety 
521.14 	requirements. Core surveys are available to licensed home care providers who have been 
521.15 	licensed for three years and surveyed at least once in the past three years with the latest 
521.16 	survey having no widespread violations beyond Level 1 as provided in subdivision 11. 
521.17 	Providers must also not have had any substantiated licensing complaints, substantiated 
521.18 	complaints against the agency under the Vulnerable Adults Act or Maltreatment of Minors 
521.19 	Act, or an enforcement action as authorized in section 144A.475 in the past three years.
521.20 	(1) The core survey for basic home care providers must review compliance in the 
521.21 	following areas:
521.22 	(i) reporting of maltreatment;
521.23 	(ii) orientation to and implementation of the home care bill of rights;
521.24 	(iii) statement of home care services;
521.25 	(iv) initial evaluation of clients and initiation of services;
521.26 	(v) client review and monitoring;
521.27 	(vi) service plan agreement implementation and changes to the service plan agreement;
521.28 	(vii) client complaint and investigative process;
521.29 	(viii) competency of unlicensed personnel; and
521.30 	(ix) infection control.
522.1 	(2) For comprehensive home care providers, the core survey must include everything 
522.2 	in the basic core survey plus these areas:
522.3 	(i) delegation to unlicensed personnel;
522.4 	(ii) assessment, monitoring, and reassessment of clients; and
522.5 	(iii) medication, treatment, and therapy management.
522.6 	(c) (d) "Full survey" means the periodic inspection of home care providers to determine 
522.7 	ongoing compliance with the home care requirements that cover the core survey areas and 
522.8 	all the legal requirements for home care providers. A full survey is conducted for all 
522.9 	temporary licensees and, for licensees that receive licenses due to an approved change in 
522.10 	ownership, for providers who do not meet the requirements needed for a core survey, and 
522.11 	when a surveyor identifies unacceptable client health or safety risks during a core survey. 
522.12 	A full survey must include all the tasks identified as part of the core survey and any additional 
522.13 	review deemed necessary by the department, including additional observation, interviewing, 
522.14 	or records review of additional clients and staff.
522.15 	(d) (e) "Follow-up surveys" means surveys conducted to determine if a home care 
522.16 	provider has corrected deficient issues and systems identified during a core survey, full 
522.17 	survey, or complaint investigation. Follow-up surveys may be conducted via phone, e-mail, 
522.18 	fax, mail, or on-site reviews. Follow-up surveys, other than complaint surveys, shall be 
522.19 	concluded with an exit conference and written information provided on the process for 
522.20 	requesting a reconsideration of the survey results.
522.21 	(e) (f) Upon receiving information alleging that a home care provider has violated or is 
522.22 	currently violating a requirement of sections 144A.43 to 144A.482, the commissioner shall 
522.23 	investigate the complaint according to sections 144A.51 to 144A.54.

522.24 	Sec. 27. Minnesota Statutes 2016, section 144A.475, subdivision 1, is amended to read:
522.25 		Subdivision 1.Conditions. (a) The commissioner may refuse to grant a temporary 
522.26 	license, refuse to grant a license as a result of a change in ownership, refuse to renew a 
522.27 	license, suspend or revoke a license, or impose a conditional license if the home care provider 
522.28 	or owner or managerial official of the home care provider:
522.29 	(1) is in violation of, or during the term of the license has violated, any of the requirements 
522.30 	in sections 144A.471 to 144A.482;
522.31 	(2) permits, aids, or abets the commission of any illegal act in the provision of home 
522.32 	care;
523.1 	(3) performs any act detrimental to the health, safety, and welfare of a client;
523.2 	(4) obtains the license by fraud or misrepresentation;
523.3 	(5) knowingly made or makes a false statement of a material fact in the application for 
523.4 	a license or in any other record or report required by this chapter;
523.5 	(6) denies representatives of the department access to any part of the home care provider's 
523.6 	books, records, files, or employees;
523.7 	(7) interferes with or impedes a representative of the department in contacting the home 
523.8 	care provider's clients;
523.9 	(8) interferes with or impedes a representative of the department in the enforcement of 
523.10 	this chapter or has failed to fully cooperate with an inspection, survey, or investigation by 
523.11 	the department;
523.12 	(9) destroys or makes unavailable any records or other evidence relating to the home 
523.13 	care provider's compliance with this chapter;
523.14 	(10) refuses to initiate a background study under section 144.057 or 245A.04;
523.15 	(11) fails to timely pay any fines assessed by the department;
523.16 	(12) violates any local, city, or township ordinance relating to home care services;
523.17 	(13) has repeated incidents of personnel performing services beyond their competency 
523.18 	level; or
523.19 	(14) has operated beyond the scope of the home care provider's license level.
523.20 	(b) A violation by a contractor providing the home care services of the home care provider 
523.21 	is a violation by the home care provider.

523.22 	Sec. 28. Minnesota Statutes 2016, section 144A.475, subdivision 2, is amended to read:
523.23 		Subd. 2.Terms to suspension or conditional license. (a) A suspension or conditional 
523.24 	license designation may include terms that must be completed or met before a suspension 
523.25 	or conditional license designation is lifted. A conditional license designation may include 
523.26 	restrictions or conditions that are imposed on the provider. Terms for a suspension or 
523.27 	conditional license may include one or more of the following and the scope of each will be 
523.28 	determined by the commissioner:
523.29 	(1) requiring a consultant to review, evaluate, and make recommended changes to the 
523.30 	home care provider's practices and submit reports to the commissioner at the cost of the 
523.31 	home care provider;
524.1 	(2) requiring supervision of the home care provider or staff practices at the cost of the 
524.2 	home care provider by an unrelated person who has sufficient knowledge and qualifications 
524.3 	to oversee the practices and who will submit reports to the commissioner;
524.4 	(3) requiring the home care provider or employees to obtain training at the cost of the 
524.5 	home care provider;
524.6 	(4) requiring the home care provider to submit reports to the commissioner;
524.7 	(5) prohibiting the home care provider from taking any new clients for a period of time; 
524.8 	or
524.9 	(6) any other action reasonably required to accomplish the purpose of this subdivision 
524.10 	and section 144A.45, subdivision 2.
524.11 	(b) A home care provider subject to this subdivision may continue operating during the 
524.12 	period of time home care clients are being transferred to other providers.

524.13 	Sec. 29. Minnesota Statutes 2016, section 144A.475, subdivision 5, is amended to read:
524.14 		Subd. 5.Plan required. (a) The process of suspending or revoking a license must include 
524.15 	a plan for transferring affected clients to other providers by the home care provider, which 
524.16 	will be monitored by the commissioner. Within three business days of being notified of the 
524.17 	final revocation or suspension action, the home care provider shall provide the commissioner, 
524.18 	the lead agencies as defined in section 256B.0911, and the ombudsman for long-term care 
524.19 	with the following information:
524.20 	(1) a list of all clients, including full names and all contact information on file;
524.21 	(2) a list of each client's representative or emergency contact person, including full names 
524.22 	and all contact information on file;
524.23 	(3) the location or current residence of each client;
524.24 	(4) the payor sources for each client, including payor source identification numbers; and
524.25 	(5) for each client, a copy of the client's service plan, and a list of the types of services 
524.26 	being provided.
524.27 	(b) The revocation or suspension notification requirement is satisfied by mailing the 
524.28 	notice to the address in the license record. The home care provider shall cooperate with the 
524.29 	commissioner and the lead agencies during the process of transferring care of clients to 
524.30 	qualified providers. Within three business days of being notified of the final revocation or 
524.31 	suspension action, the home care provider must notify and disclose to each of the home 
525.1 	care provider's clients, or the client's representative or emergency contact persons, that the 
525.2 	commissioner is taking action against the home care provider's license by providing a copy 
525.3 	of the revocation or suspension notice issued by the commissioner.
525.4 	(c) A home care provider subject to this subdivision may continue operating during the 
525.5 	period of time home care clients are being transferred to other providers.

525.6 	Sec. 30. Minnesota Statutes 2016, section 144A.476, subdivision 1, is amended to read:
525.7 		Subdivision 1.Prior criminal convictions; owner and managerial officials. (a) Before 
525.8 	the commissioner issues a temporary license, issues a license as a result of an approved 
525.9 	change in ownership, or renews a license, an owner or managerial official is required to 
525.10 	complete a background study under section 144.057. No person may be involved in the 
525.11 	management, operation, or control of a home care provider if the person has been disqualified 
525.12 	under chapter 245C. If an individual is disqualified under section 144.057 or chapter 245C, 
525.13 	the individual may request reconsideration of the disqualification. If the individual requests 
525.14 	reconsideration and the commissioner sets aside or rescinds the disqualification, the individual 
525.15 	is eligible to be involved in the management, operation, or control of the provider. If an 
525.16 	individual has a disqualification under section 245C.15, subdivision 1, and the disqualification 
525.17 	is affirmed, the individual's disqualification is barred from a set aside, and the individual 
525.18 	must not be involved in the management, operation, or control of the provider.
525.19 	(b) For purposes of this section, owners of a home care provider subject to the background 
525.20 	check requirement are those individuals whose ownership interest provides sufficient 
525.21 	authority or control to affect or change decisions related to the operation of the home care 
525.22 	provider. An owner includes a sole proprietor, a general partner, or any other individual 
525.23 	whose individual ownership interest can affect the management and direction of the policies 
525.24 	of the home care provider.
525.25 	(c) For the purposes of this section, managerial officials subject to the background check 
525.26 	requirement are individuals who provide direct contact as defined in section 245C.02, 
525.27 	subdivision 11, or individuals who have the responsibility for the ongoing management or 
525.28 	direction of the policies, services, or employees of the home care provider. Data collected 
525.29 	under this subdivision shall be classified as private data on individuals under section 13.02, 
525.30 	subdivision 12.
525.31 	(d) The department shall not issue any license if the applicant or owner or managerial 
525.32 	official has been unsuccessful in having a background study disqualification set aside under 
525.33 	section 144.057 and chapter 245C; if the owner or managerial official, as an owner or 
525.34 	managerial official of another home care provider, was substantially responsible for the 
526.1 	other home care provider's failure to substantially comply with sections 144A.43 to 
526.2 	144A.482; or if an owner that has ceased doing business, either individually or as an owner 
526.3 	of a home care provider, was issued a correction order for failing to assist clients in violation 
526.4 	of this chapter.

526.5 	Sec. 31. Minnesota Statutes 2016, section 144A.479, subdivision 7, is amended to read:
526.6 		Subd. 7.Employee records. The home care provider must maintain current records of 
526.7 	each paid employee, regularly scheduled volunteers providing home care services, and of 
526.8 	each individual contractor providing home care services. The records must include the 
526.9 	following information:
526.10 	(1) evidence of current professional licensure, registration, or certification, if licensure, 
526.11 	registration, or certification is required by this statute or other rules;
526.12 	(2) records of orientation, required annual training and infection control training, and 
526.13 	competency evaluations;
526.14 	(3) current job description, including qualifications, responsibilities, and identification 
526.15 	of staff providing supervision;
526.16 	(4) documentation of annual performance reviews which identify areas of improvement 
526.17 	needed and training needs;
526.18 	(5) for individuals providing home care services, verification that required any health 
526.19 	screenings required by infection control programs established under section 144A.4798
526.20 	have taken place and the dates of those screenings; and
526.21 	(6) documentation of the background study as required under section 144.057.
526.22 	Each employee record must be retained for at least three years after a paid employee, home 
526.23 	care volunteer, or contractor ceases to be employed by or under contract with the home care 
526.24 	provider. If a home care provider ceases operation, employee records must be maintained 
526.25 	for three years.

526.26 	Sec. 32. Minnesota Statutes 2016, section 144A.4791, subdivision 1, is amended to read:
526.27 		Subdivision 1.Home care bill of rights; notification to client. (a) The home care 
526.28 	provider shall provide the client or the client's representative a written notice of the rights 
526.29 	under section 144A.44 before the initiation of date that services are first provided to that 
526.30 	client. The provider shall make all reasonable efforts to provide notice of the rights to the 
527.1 	client or the client's representative in a language the client or client's representative can 
527.2 	understand.
527.3 	(b) In addition to the text of the home care bill of rights in section 144A.44, subdivision 
527.4 	1, the notice shall also contain the following statement describing how to file a complaint 
527.5 	with these offices.
527.6 	"If you have a complaint about the provider or the person providing your home care 
527.7 	services, you may call, write, or visit the Office of Health Facility Complaints, Minnesota 
527.8 	Department of Health. You may also contact the Office of Ombudsman for Long-Term 
527.9 	Care or the Office of Ombudsman for Mental Health and Developmental Disabilities."
527.10 	The statement should include the telephone number, Web site address, e-mail address, 
527.11 	mailing address, and street address of the Office of Health Facility Complaints at the 
527.12 	Minnesota Department of Health, the Office of the Ombudsman for Long-Term Care, and 
527.13 	the Office of the Ombudsman for Mental Health and Developmental Disabilities. The 
527.14 	statement should also include the home care provider's name, address, e-mail, telephone 
527.15 	number, and name or title of the person at the provider to whom problems or complaints 
527.16 	may be directed. It must also include a statement that the home care provider will not retaliate 
527.17 	because of a complaint.
527.18 	(c) The home care provider shall obtain written acknowledgment of the client's receipt 
527.19 	of the home care bill of rights or shall document why an acknowledgment cannot be obtained. 
527.20 	The acknowledgment may be obtained from the client or the client's representative. 
527.21 	Acknowledgment of receipt shall be retained in the client's record.

527.22 	Sec. 33. Minnesota Statutes 2016, section 144A.4791, subdivision 3, is amended to read:
527.23 		Subd. 3.Statement of home care services. Prior to the initiation of date that services
527.24 	are first provided to the client, a home care provider must provide to the client or the client's 
527.25 	representative a written statement which identifies if the provider has a basic or 
527.26 	comprehensive home care license, the services the provider is authorized to provide, and 
527.27 	which services the provider cannot provide under the scope of the provider's license. The 
527.28 	home care provider shall obtain written acknowledgment from the clients that the provider 
527.29 	has provided the statement or must document why the provider could not obtain the 
527.30 	acknowledgment.

528.1 	Sec. 34. Minnesota Statutes 2016, section 144A.4791, subdivision 6, is amended to read:
528.2 		Subd. 6.Initiation of services. When a provider initiates provides home care services 
528.3 	and to a client before the individualized review or assessment by a licensed health 
528.4 	professional or registered nurse as required in subdivisions 7 and 8 has not been is completed, 
528.5 	the provider licensed health professional or registered nurse must complete a temporary 
528.6 	plan and agreement with the client for services and orient staff assigned to deliver services 
528.7 	as identified in the temporary plan.

528.8 	Sec. 35. Minnesota Statutes 2016, section 144A.4791, subdivision 7, is amended to read:
528.9 		Subd. 7.Basic individualized client review and monitoring. (a) When services being 
528.10 	provided are basic home care services, an individualized initial review of the client's needs 
528.11 	and preferences must be conducted at the client's residence with the client or client's 
528.12 	representative. This initial review must be completed within 30 days after the initiation of 
528.13 	the date that home care services are first provided.
528.14 	(b) Client monitoring and review must be conducted as needed based on changes in the 
528.15 	needs of the client and cannot exceed 90 days from the date of the last review. The monitoring 
528.16 	and review may be conducted at the client's residence or through the utilization of 
528.17 	telecommunication methods based on practice standards that meet the individual client's 
528.18 	needs.

528.19 	Sec. 36. Minnesota Statutes 2016, section 144A.4791, subdivision 8, is amended to read:
528.20 		Subd. 8.Comprehensive assessment, monitoring, and reassessment. (a) When the 
528.21 	services being provided are comprehensive home care services, an individualized initial 
528.22 	assessment must be conducted in person by a registered nurse. When the services are provided 
528.23 	by other licensed health professionals, the assessment must be conducted by the appropriate 
528.24 	health professional. This initial assessment must be completed within five days after initiation 
528.25 	of the date that home care services are first provided.
528.26 	(b) Client monitoring and reassessment must be conducted in the client's home no more 
528.27 	than 14 days after initiation of the date that home care services are first provided.
528.28 	(c) Ongoing client monitoring and reassessment must be conducted as needed based on 
528.29 	changes in the needs of the client and cannot exceed 90 days from the last date of the 
528.30 	assessment. The monitoring and reassessment may be conducted at the client's residence 
528.31 	or through the utilization of telecommunication methods based on practice standards that 
528.32 	meet the individual client's needs.

529.1 	Sec. 37. Minnesota Statutes 2016, section 144A.4791, subdivision 9, is amended to read:
529.2 		Subd. 9.Service plan agreement, implementation, and revisions to service plan
529.3 	agreement. (a) No later than 14 days after the initiation of date that home care services are 
529.4 	first provided, a home care provider shall finalize a current written service plan agreement.
529.5 	(b) The service plan agreement and any revisions must include a signature or other 
529.6 	authentication by the home care provider and by the client or the client's representative 
529.7 	documenting agreement on the services to be provided. The service plan agreement must 
529.8 	be revised, if needed, based on client review or reassessment under subdivisions 7 and 8. 
529.9 	The provider must provide information to the client about changes to the provider's fee for 
529.10 	services and how to contact the Office of the Ombudsman for Long-Term Care.
529.11 	(c) The home care provider must implement and provide all services required by the 
529.12 	current service plan agreement.
529.13 	(d) The service planagreement and revised service planagreement must be entered into 
529.14 	the client's record, including notice of a change in a client's fees when applicable.
529.15 	(e) Staff providing home care services must be informed of the current written service 
529.16 	plan agreement.
529.17 	(f) The service plan agreement must include:
529.18 	(1) a description of the home care services to be provided, the fees for services, and the 
529.19 	frequency of each service, according to the client's current review or assessment and client 
529.20 	preferences;
529.21 	(2) the identification of the staff or categories of staff who will provide the services;
529.22 	(3) the schedule and methods of monitoring reviews or assessments of the client;
529.23 	(4) the frequency of sessions of supervision of staff and type of personnel who will 
529.24 	supervise staff; and the schedule and methods of monitoring staff providing home care 
529.25 	services; and
529.26 	(5) a contingency plan that includes:
529.27 	(i) the action to be taken by the home care provider and by the client or client's 
529.28 	representative if the scheduled service cannot be provided;
529.29 	(ii) information and a method for a client or client's representative to contact the home 
529.30 	care provider;
530.1 	(iii) names and contact information of persons the client wishes to have notified in an 
530.2 	emergency or if there is a significant adverse change in the client's condition, including 
530.3 	identification of and information as to who has authority to sign for the client in an 
530.4 	emergency; and
530.5 	(iv) the circumstances in which emergency medical services are not to be summoned 
530.6 	consistent with chapters 145B and 145C, and declarations made by the client under those 
530.7 	chapters.

530.8 	Sec. 38. Minnesota Statutes 2016, section 144A.4792, subdivision 1, is amended to read:
530.9 		Subdivision 1.Medication management services; comprehensive home care license.
 530.10 	(a) This subdivision applies only to home care providers with a comprehensive home care 
530.11 	license that provide medication management services to clients. Medication management 
530.12 	services may not be provided by a home care provider who has a basic home care license.
530.13 	(b) A comprehensive home care provider who provides medication management services 
530.14 	must develop, implement, and maintain current written medication management policies 
530.15 	and procedures. The policies and procedures must be developed under the supervision and 
530.16 	direction of a registered nurse, licensed health professional, or pharmacist consistent with 
530.17 	current practice standards and guidelines.
530.18 	(c) The written policies and procedures must address requesting and receiving 
530.19 	prescriptions for medications; preparing and giving medications; verifying that prescription 
530.20 	drugs are administered as prescribed; documenting medication management activities; 
530.21 	controlling and storing medications; monitoring and evaluating medication use; resolving 
530.22 	medication errors; communicating with the prescriber, pharmacist, and client and client 
530.23 	representative, if any; disposing of unused medications; and educating clients and client 
530.24 	representatives about medications. When controlled substances are being managed, stored, 
530.25 	and secured by the comprehensive home care provider, the policies and procedures must 
530.26 	also identify how the provider will ensure security and accountability for the overall 
530.27 	management, control, and disposition of those substances in compliance with state and 
530.28 	federal regulations and with subdivision 22.

530.29 	Sec. 39. Minnesota Statutes 2016, section 144A.4792, subdivision 2, is amended to read:
530.30 		Subd. 2.Provision of medication management services. (a) For each client who 
530.31 	requests medication management services, the comprehensive home care provider shall, 
530.32 	prior to providing medication management services, have a registered nurse, licensed health 
530.33 	professional, or authorized prescriber under section 151.37 conduct an assessment to 
531.1 	determine what medication management services will be provided and how the services 
531.2 	will be provided. This assessment must be conducted face-to-face with the client. The 
531.3 	assessment must include an identification and review of all medications the client is known 
531.4 	to be taking. The review and identification must include indications for medications, side 
531.5 	effects, contraindications, allergic or adverse reactions, and actions to address these issues.
531.6 	(b) The assessment must:
531.7 	(1) identify interventions needed in management of medications to prevent diversion of 
531.8 	medication by the client or others who may have access to the medications.; and
531.9 	(2) provide instructions to the client or client's representative on interventions to manage 
531.10 	the client's medications and prevent diversion of medications.
531.11 	"Diversion of medications" means the misuse, theft, or illegal or improper disposition of 
531.12 	medications.

531.13 	Sec. 40. Minnesota Statutes 2016, section 144A.4792, subdivision 5, is amended to read:
531.14 		Subd. 5.Individualized medication management plan. (a) For each client receiving 
531.15 	medication management services, the comprehensive home care provider must prepare and 
531.16 	include in the service plan agreement a written statement of the medication management 
531.17 	services that will be provided to the client. The provider must develop and maintain a current 
531.18 	individualized medication management record for each client based on the client's assessment 
531.19 	that must contain the following:
531.20 	(1) a statement describing the medication management services that will be provided;
531.21 	(2) a description of storage of medications based on the client's needs and preferences, 
531.22 	risk of diversion, and consistent with the manufacturer's directions;
531.23 	(3) documentation of specific client instructions relating to the administration of 
531.24 	medications;
531.25 	(4) identification of persons responsible for monitoring medication supplies and ensuring 
531.26 	that medication refills are ordered on a timely basis;
531.27 	(5) identification of medication management tasks that may be delegated to unlicensed 
531.28 	personnel;
531.29 	(6) procedures for staff notifying a registered nurse or appropriate licensed health 
531.30 	professional when a problem arises with medication management services; and
532.1 	(7) any client-specific requirements relating to documenting medication administration, 
532.2 	verifications that all medications are administered as prescribed, and monitoring of 
532.3 	medication use to prevent possible complications or adverse reactions.
532.4 	(b) The medication management record must be current and updated when there are any 
532.5 	changes.
532.6 	(c) Medication reconciliation must be completed when a licensed nurse, licensed health 
532.7 	professional, or authorized prescriber is providing medication management.

532.8 	Sec. 41. Minnesota Statutes 2016, section 144A.4792, subdivision 10, is amended to read:
532.9 		Subd. 10.Medication management for clients who will be away from home. (a) A 
532.10 	home care provider who is providing medication management services to the client and 
532.11 	controls the client's access to the medications must develop and implement policies and 
532.12 	procedures for giving accurate and current medications to clients for planned or unplanned 
532.13 	times away from home according to the client's individualized medication management 
532.14 	plan. The policy and procedures must state that:
532.15 	(1) for planned time away, the medications must be obtained from the pharmacy or set 
532.16 	up by the registered a licensed nurse according to appropriate state and federal laws and 
532.17 	nursing standards of practice;
532.18 	(2) for unplanned time away, when the pharmacy is not able to provide the medications, 
532.19 	a licensed nurse or unlicensed personnel shall give the client or client's representative 
532.20 	medications in amounts and dosages needed for the length of the anticipated absence, not 
532.21 	to exceed 120 hours seven calendar days;
532.22 	(3) the client or client's representative must be provided written information on 
532.23 	medications, including any special instructions for administering or handling the medications, 
532.24 	including controlled substances;
532.25 	(4) the medications must be placed in a medication container or containers appropriate 
532.26 	to the provider's medication system and must be labeled with the client's name and the dates 
532.27 	and times that the medications are scheduled; and
532.28 	(5) the client or client's representative must be provided in writing the home care 
532.29 	provider's name and information on how to contact the home care provider.
532.30 	(b) For unplanned time away when the licensed nurse is not available, the registered 
532.31 	nurse may delegate this task to unlicensed personnel if:
533.1 	(1) the registered nurse has trained the unlicensed staff and determined the unlicensed 
533.2 	staff is competent to follow the procedures for giving medications to clients; and
533.3 	(2) the registered nurse has developed written procedures for the unlicensed personnel, 
533.4 	including any special instructions or procedures regarding controlled substances that are 
533.5 	prescribed for the client. The procedures must address:
533.6 	(i) the type of container or containers to be used for the medications appropriate to the 
533.7 	provider's medication system;
533.8 	(ii) how the container or containers must be labeled;
533.9 	(iii) the written information about the medications to be given to the client or client's 
533.10 	representative;
533.11 	(iv) how the unlicensed staff must document in the client's record that medications have 
533.12 	been given to the client or the client's representative, including documenting the date the 
533.13 	medications were given to the client or the client's representative and who received the 
533.14 	medications, the person who gave the medications to the client, the number of medications 
533.15 	that were given to the client, and other required information;
533.16 	(v) how the registered nurse shall be notified that medications have been given to the 
533.17 	client or client's representative and whether the registered nurse needs to be contacted before 
533.18 	the medications are given to the client or the client's representative; and
533.19 	(vi) a review by the registered nurse of the completion of this task to verify that this task 
533.20 	was completed accurately by the unlicensed personnel.; and
533.21 	(vii) how the unlicensed staff must document in the client's record any unused medications 
533.22 	that are returned to the provider, including the name of each medication and the doses of 
533.23 	each returned medication.

533.24 	Sec. 42. Minnesota Statutes 2016, section 144A.4793, subdivision 6, is amended to read:
533.25 		Subd. 6.Treatment and therapy orders or prescriptions. There must be an up-to-date 
533.26 	written or electronically recorded order or prescription from an authorized prescriber for 
533.27 	all treatments and therapies. The order must contain the name of the client, a description of 
533.28 	the treatment or therapy to be provided, and the frequency, duration, and other information 
533.29 	needed to administer the treatment or therapy. Treatment and therapy orders must be renewed 
533.30 	at least every 12 months.

534.1 	Sec. 43. Minnesota Statutes 2017 Supplement, section 144A.4796, subdivision 2, is 
534.2 	amended to read:
534.3 		Subd. 2.Content. (a) The orientation must contain the following topics:
534.4 	(1) an overview of sections 144A.43 to 144A.4798;
534.5 	(2) introduction and review of all the provider's policies and procedures related to the 
534.6 	provision of home care services by the individual staff person;
534.7 	(3) handling of emergencies and use of emergency services;
534.8 	(4) compliance with and reporting of the maltreatment of minors or vulnerable adults 
534.9 	under sections 626.556 and 626.557;
534.10 	(5) home care bill of rights under section 144A.44;
534.11 	(6) handling of clients' complaints, reporting of complaints, and where to report 
534.12 	complaints including information on the Office of Health Facility Complaints and the 
534.13 	Common Entry Point;
534.14 	(7) consumer advocacy services of the Office of Ombudsman for Long-Term Care, 
534.15 	Office of Ombudsman for Mental Health and Developmental Disabilities, Managed Care 
534.16 	Ombudsman at the Department of Human Services, county managed care advocates, or 
534.17 	other relevant advocacy services; and
534.18 	(8) review of the types of home care services the employee will be providing and the 
534.19 	provider's scope of licensure.
534.20 	(b) In addition to the topics listed in paragraph (a), orientation may also contain training 
534.21 	on providing services to clients with hearing loss. Any training on hearing loss provided 
534.22 	under this subdivision must be high quality and research-based, may include online training, 
534.23 	and must include training on one or more of the following topics:
534.24 	(1) an explanation of age-related hearing loss and how it manifests itself, its prevalence, 
534.25 	and challenges it poses to communication;
534.26 	(2) health impacts related to untreated age-related hearing loss, such as increased 
534.27 	incidence of dementia, falls, hospitalizations, isolation, and depression; or
534.28 	(3) information about strategies and technology that may enhance communication and 
534.29 	involvement, including communication strategies, assistive listening devices, hearing aids, 
534.30 	visual and tactile alerting devices, communication access in real time, and closed captions.

535.1 	Sec. 44. Minnesota Statutes 2016, section 144A.4797, subdivision 3, is amended to read:
535.2 		Subd. 3.Supervision of staff providing delegated nursing or therapy home care 
535.3 	tasks. (a) Staff who perform delegated nursing or therapy home care tasks must be supervised 
535.4 	by an appropriate licensed health professional or a registered nurse periodically where the 
535.5 	services are being provided to verify that the work is being performed competently and to 
535.6 	identify problems and solutions related to the staff person's ability to perform the tasks. 
535.7 	Supervision of staff performing medication or treatment administration shall be provided 
535.8 	by a registered nurse or appropriate licensed health professional and must include observation 
535.9 	of the staff administering the medication or treatment and the interaction with the client.
535.10 	(b) The direct supervision of staff performing delegated tasks must be provided within 
535.11 	30 days after the date on which the individual begins working for the home care provider
535.12 	and first performs delegated tasks for clients and thereafter as needed based on performance. 
535.13 	This requirement also applies to staff who have not performed delegated tasks for one year 
535.14 	or longer.

535.15 	Sec. 45. Minnesota Statutes 2016, section 144A.4798, is amended to read:
535.16 	144A.4798 EMPLOYEE HEALTH STATUS DISEASE PREVENTION AND 
535.17 	INFECTION CONTROL.
535.18 		Subdivision 1.Tuberculosis (TB) prevention and infection control. (a) A home care 
535.19 	provider must establish and maintain a TB prevention andcomprehensive tuberculosis 
535.20 	infection control program based on according to the most current tuberculosis infection 
535.21 	control guidelines issued by the United States Centers for Disease Control and Prevention 
535.22 	(CDC), Division of Tuberculosis Elimination, as published in the CDC's Morbidity and 
535.23 	Mortality Weekly Report. Components of a TB prevention and control program include 
535.24 	screening all staff providing home care services, both paid and unpaid, at the time of hire 
535.25 	for active TB disease and latent TB infection, and developing and implementing a written 
535.26 	TB infection control plan. The commissioner shall make the most recent CDC standards 
535.27 	available to home care providers on the department's Web site. This program must include 
535.28 	a tuberculosis infection control plan that covers all paid and unpaid employees, contractors, 
535.29 	students, and volunteers. The commissioner shall provide technical assistance regarding 
535.30 	implementation of the guidelines.
535.31 	(b) Written evidence of compliance with this subdivision must be maintained by the 
535.32 	home care provider.
536.1 		Subd. 2.Communicable diseases. A home care provider must follow current federal 
536.2 	or state guidelines state requirements for prevention, control, and reporting of human 
536.3 	immunodeficiency virus (HIV), hepatitis B virus (HBV), hepatitis C virus, or other 
536.4 	communicable diseases as defined in Minnesota Rules, part parts4605.7040, 4605.7044, 
536.5 	4605.7050, 4605.7075, 4605.7080, and 4605.7090.
536.6 		Subd. 3.Infection control program. A home care provider must establish and maintain 
536.7 	an effective infection control program that complies with accepted health care, medical, 
536.8 	and nursing standards for infection control.

536.9 	Sec. 46. Minnesota Statutes 2016, section 144A.4799, subdivision 1, is amended to read:
536.10 		Subdivision 1.Membership. The commissioner of health shall appoint eight persons 
536.11 	to a home care and assisted living program advisory council consisting of the following:
536.12 	(1) three public members as defined in section 214.02 who shall be either persons who 
536.13 	are currently receiving home care services or, persons who have received home care services 
536.14 	within five years of the application date, persons who have family members receiving home 
536.15 	care services, or persons who have family members who have received home care services 
536.16 	within five years of the application date;
536.17 	(2) three Minnesota home care licensees representing basic and comprehensive levels 
536.18 	of licensure who may be a managerial official, an administrator, a supervising registered 
536.19 	nurse, or an unlicensed personnel performing home care tasks;
536.20 	(3) one member representing the Minnesota Board of Nursing; and
536.21 	(4) one member representing the Office of Ombudsman for Long-Term Care.

536.22 	Sec. 47. Minnesota Statutes 2017 Supplement, section 144A.4799, subdivision 3, is 
536.23 	amended to read:
536.24 		Subd. 3.Duties. (a) At the commissioner's request, the advisory council shall provide 
536.25 	advice regarding regulations of Department of Health licensed home care providers in this 
536.26 	chapter, including advice on the following:
536.27 	(1) community standards for home care practices;
536.28 	(2) enforcement of licensing standards and whether certain disciplinary actions are 
536.29 	appropriate;
536.30 	(3) ways of distributing information to licensees and consumers of home care;
536.31 	(4) training standards;
537.1 	(5) identifying emerging issues and opportunities in the home care field, including and 
537.2 	assisted living;
537.3 	(6) identifying the use of technology in home and telehealth capabilities;
537.4 	(6) (7) allowable home care licensing modifications and exemptions, including a method 
537.5 	for an integrated license with an existing license for rural licensed nursing homes to provide 
537.6 	limited home care services in an adjacent independent living apartment building owned by 
537.7 	the licensed nursing home; and
537.8 	(7) (8) recommendations for studies using the data in section 62U.04, subdivision 4, 
537.9 	including but not limited to studies concerning costs related to dementia and chronic disease 
537.10 	among an elderly population over 60 and additional long-term care costs, as described in 
537.11 	section 62U.10, subdivision 6.
537.12 	(b) The advisory council shall perform other duties as directed by the commissioner.
537.13 	(c) The advisory council shall annually review the balance of the account in the state 
537.14 	government special revenue fund described in section 144A.474, subdivision 11, paragraph 
537.15 	(i), and make annual recommendations by January 15 directly to the chairs and ranking 
537.16 	minority members of the legislative committees with jurisdiction over health and human 
537.17 	services regarding appropriations to the commissioner for the purposes in section 144A.474, 
537.18 	subdivision 11, paragraph (i).

537.19 	Sec. 48. Minnesota Statutes 2016, section 144A.484, subdivision 1, is amended to read:
537.20 		Subdivision 1.Integrated licensing established. (a) From January 1, 2014, to June 30, 
537.21 	2015, the commissioner of health shall enforce the home and community-based services 
537.22 	standards under chapter 245D for those providers who also have a home care license pursuant 
537.23 	to this chapter as required under Laws 2013, chapter 108, article 8, section 60, and article 
537.24 	11, section 31. During this period, the commissioner shall provide technical assistance to 
537.25 	achieve and maintain compliance with applicable law or rules governing the provision of 
537.26 	home and community-based services, including complying with the service recipient rights 
537.27 	notice in subdivision 4, clause (4). If during the survey, the commissioner finds that the 
537.28 	licensee has failed to achieve compliance with an applicable law or rule under chapter 245D 
537.29 	and this failure does not imminently endanger the health, safety, or rights of the persons 
537.30 	served by the program, the commissioner may issue a licensing survey report with 
537.31 	recommendations for achieving and maintaining compliance.
537.32 	(b) Beginning July 1, 2015, A home care provider applicant or license holder may apply 
537.33 	to the commissioner of health for a home and community-based services designation for 
538.1 	the provision of basic support services identified under section 245D.03, subdivision 1, 
538.2 	paragraph (b). The designation allows the license holder to provide basic support services 
538.3 	that would otherwise require licensure under chapter 245D, under the license holder's home 
538.4 	care license governed by sections 144A.43 to 144A.481 144A.4799.

538.5 	Sec. 49. Minnesota Statutes 2016, section 145.56, subdivision 2, is amended to read:
538.6 		Subd. 2.Community-based programs. To the extent funds are appropriated for the 
538.7 	purposes of this subdivision, the commissioner shall establish a grant program to fund:
538.8 	(1) community-based programs to provide education, outreach, and advocacy services 
538.9 	to populations who may be at risk for suicide;
538.10 	(2) community-based programs that educate community helpers and gatekeepers, such 
538.11 	as family members, spiritual leaders, coaches, and business owners, employers, and 
538.12 	coworkers on how to prevent suicide by encouraging help-seeking behaviors;
538.13 	(3) community-based programs that educate populations at risk for suicide and community 
538.14 	helpers and gatekeepers that must include information on the symptoms of depression and 
538.15 	other psychiatric illnesses, the warning signs of suicide, skills for preventing suicides, and 
538.16 	making or seeking effective referrals to intervention and community resources;
538.17 	(4) community-based programs to provide evidence-based suicide prevention and 
538.18 	intervention education to school staff, parents, and students in grades kindergarten through 
538.19 	12, and for students attending Minnesota colleges and universities;
538.20 	(5) community-based programs to provide evidence-based suicide prevention and 
538.21 	intervention to public school nurses, teachers, administrators, coaches, school social workers, 
538.22 	peace officers, firefighters, emergency medical technicians, advanced emergency medical 
538.23 	technicians, paramedics, primary care providers, and others; and
538.24 	(6) community-based, evidence-based postvention training to mental health professionals 
538.25 	and practitioners in order to provide technical assistance to communities after a suicide and 
538.26 	to prevent suicide clusters and contagion; and
538.27 	(7) a nonprofit organization to provide crisis telephone counseling services across the 
538.28 	state to people in suicidal crisis or emotional distress, 24 hours a day, seven days a week, 
538.29 	365 days a year.

539.1 	Sec. 50. Minnesota Statutes 2016, section 146B.03, is amended by adding a subdivision 
539.2 	to read:
539.3 		Subd. 7a.Supervisors. (a) A technician must have been licensed in Minnesota or in a 
539.4 	jurisdiction with which Minnesota has reciprocity for at least:
539.5 	(1) two years as a tattoo technician in order to supervise a temporary tattoo technician; 
539.6 	or
539.7 	(2) one year as a body piercing technician in order to supervise a temporary body piercing 
539.8 	technician.
539.9 	(b) Any technician who agrees to supervise more than two temporary tattoo technicians 
539.10 	during the same time period, or more than four body piercing technicians during the same 
539.11 	time period, must provide to the commissioner a supervisory plan that describes how the 
539.12 	technician will provide supervision to each temporary technician in accordance with section 
539.13 	146B.01, subdivision 28.
539.14 	(c) The commissioner may refuse to approve as a supervisor a technician who has been 
539.15 	disciplined in Minnesota or in another jurisdiction after considering the criteria in section 
539.16 	146B.02, subdivision 10, paragraph (b).

539.17 	Sec. 51. Minnesota Statutes 2016, section 149A.40, subdivision 11, is amended to read:
539.18 		Subd. 11.Continuing education. The commissioner shall require 15 continuing education 
539.19 	hours for renewal of a license to practice mortuary science. Nine of the hours must be in 
539.20 	the following areas: body preparation, care, or handling, and cremation, 3 CE hours; 
539.21 	professional practices, 3 CE hours; and regulation and ethics, 3 CE hours. Continuing 
539.22 	education hours shall be reported to the commissioner every other year based on the licensee's 
539.23 	license number. Licensees whose license ends in an odd number must report CE hours at 
539.24 	renewal time every odd year. If a licensee's license ends in an even number, the licensee 
539.25 	must report the licensee's CE hours at renewal time every even year.

539.26 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to mortuary 
539.27 	science license renewals on or after that date.

539.28 	Sec. 52. Minnesota Statutes 2016, section 149A.95, subdivision 3, is amended to read:
539.29 		Subd. 3.Unlicensed personnel. (a) A licensed crematory may employ unlicensed 
539.30 	personnel, provided that all applicable provisions of this chapter are followed. It is the duty 
539.31 	of the licensed crematory to provide proper training for to all unlicensed personnel and 
539.32 	ensure that unlicensed personnel performing cremations are in compliance with the 
540.1 	requirements in paragraph (b). The licensed crematory shall be strictly accountable for 
540.2 	compliance with this chapter and other applicable state and federal regulations regarding 
540.3 	occupational and workplace health and safety.
540.4 	(b) Unlicensed personnel performing cremations at a licensed crematory must:
540.5 	(1) complete a certified crematory operator course that is approved by the commissioner 
540.6 	and that covers at least the following subjects:
540.7 	(i) cremation and incinerator terminology;
540.8 	(ii) combustion principles;
540.9 	(iii) maintenance of and troubleshooting for cremation devices;
540.10 	(iv) how to operate cremation devices;
540.11 	(v) identification, the use of proper forms, and the record-keeping process for 
540.12 	documenting chain of custody of human remains;
540.13 	(vi) guidelines for recycling, including but not limited to compliance, disclosure, recycling 
540.14 	procedures, and compensation;
540.15 	(vii) legal and regulatory requirements regarding environmental issues, including specific 
540.16 	environmental regulations with which compliance is required; and
540.17 	(viii) cremation ethics;
540.18 	(2) obtain a crematory operator certification;
540.19 	(3) publicly post the crematory operator certification at the licensed crematory where 
540.20 	the unlicensed personnel performs cremations; and
540.21 	(4) maintain crematory operator certification through:
540.22 	(i) recertification, if such recertification is required by the program through which the 
540.23 	unlicensed personnel is certified; or
540.24 	(ii) if recertification is not required by the program, completion of at least seven hours 
540.25 	of continuing education credits in crematory operation every five years.

540.26 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to unlicensed 
540.27 	personnel performing cremations on or after that date.

540.28 	Sec. 53. AUTISM SPECTRUM DISORDER TASK FORCE PLAN.
 540.29 	The commissioner of health, in consultation with the commissioners of human services 
540.30 	and education, shall submit a plan to the chairs and ranking minority members of the 
541.1 	legislative committees with jurisdiction over health care, human services, and education by 
541.2 	January 15, 2019, to reconstitute the Autism Spectrum Disorder Task Force originally 
541.3 	established in 2011. The plan must include proposed membership of the task force that takes 
541.4 	into consideration all points of view and represents a diverse range of agencies, community 
541.5 	groups, advocacy organizations, educators, and families.

541.6 	Sec. 54. VARIANCE TO REQUIREMENT FOR SANITARY DUMPING STATION.
 541.7 	Notwithstanding any law or rule to the contrary, the commissioner of health shall provide 
541.8 	a variance to the requirement to provide a sanitary dumping station under Minnesota Rules, 
541.9 	part 4630.0900, for a resort in Hubbard County that is located on an island and is landlocked, 
541.10 	making it impractical to build a sanitary dumping station for use by recreational camping 
541.11 	vehicles and recreational camping on the resort property. There must be an alternative 
541.12 	dumping station available within a 15-mile radius of the resort or a vendor that is available 
541.13 	to pump any self-contained liquid waste system that is located on the resort property.

541.14 	Sec. 55. DIRECTION TO COMMISSIONER OF HEALTH; STRATEGIC PLAN 
541.15 	REGARDING CMV.
 541.16 	The commissioner of health, in consultation with interested stakeholders and families 
541.17 	of children diagnosed with human herpesvirus cytomegalovirus (CMV), shall develop a 
541.18 	strategic state plan outlining strategies for:
541.19 	(1) providing information about CMV to health care practitioners;
541.20 	(2) providing information about CMV to women who may become pregnant, to expectant 
541.21 	parents, and to parents of infants; and
541.22 	(3) identifying resources and necessary follow-up for children born with congenital 
541.23 	CMV, and their families.

541.24 	Sec. 56. LEGISLATIVE COMMISSION ON DATA PRACTICES; HEALTH 
541.25 	RECORDS ACT STUDY AND RECOMMENDATIONS.
 541.26 	(a) The Legislative Commission on Data Practices and Personal Data Privacy must study 
541.27 	the Minnesota Health Records Act and make recommendations regarding amendments to 
541.28 	Minnesota Statutes, sections 144.291 to 144.298, for improving coordinated health care in 
541.29 	Minnesota.
541.30 	(b) The study and recommendations should consider:
542.1 	(1) current laws, rules, practices, and experiences of health care consumers, providers, 
542.2 	and payers, both public and private, in the state of Minnesota with respect to access to health 
542.3 	records and coordination of health care;
542.4 	(2) the experiences of other states with statutes conforming to the federal Health Insurance 
542.5 	Portability and Accountability Act (HIPAA);
542.6 	(3) the potential benefits and risks to consumer data privacy if the state of Minnesota 
542.7 	conforms to HIPAA standards; and
542.8 	(4) the potential benefits and risks to health care providers and payers, both public and 
542.9 	private, if the state of Minnesota conforms to HIPAA standards.
542.10 	(c) The commission must submit a report and recommendations to the chairs and ranking 
542.11 	minority members of the legislative committees with jurisdiction over data practices and 
542.12 	health care by January 15, 2019.

542.13 	Sec. 57. REVISOR'S INSTRUCTIONS.
 542.14 	(a) The revisor of statutes shall change the terms "service plan or service agreement" 
542.15 	and "service agreement or service plan" to "service agreement" in the following sections of 
542.16 	Minnesota Statutes: sections 144A.442; 144D.045; 144G.03, subdivision 4, paragraph (c); 
542.17 	and 144G.04.
542.18 	(b) The revisor of statutes shall change the term "service plan" to "service agreement" 
542.19 	and the term "service plans" to "service agreements" in the following sections of Minnesota 
542.20 	Statutes: sections 144A.44; 144A.45; 144A.475; 144A.4791; 144A.4792; 144A.4793; 
542.21 	144A.4794; 144D.04; and 144G.03, subdivision 4, paragraph (a).

542.22 	Sec. 58.  REPEALER.
 542.23 	(a) Minnesota Statutes 2016, sections 144A.45, subdivision 6; and 144A.481, are repealed.
542.24 	(b) Minnesota Statutes 2017 Supplement, section 146B.02, subdivision 7a, is repealed.

542.25 	ARTICLE 36
542.26 	HEALTH COVERAGE

542.27 	Section 1. Minnesota Statutes 2016, section 62A.30, is amended by adding a subdivision 
542.28 	to read:
542.29 		Subd. 4.Mammograms. (a) For purposes of subdivision 2, coverage for a preventive 
542.30 	mammogram screening shall include digital breast tomosynthesis for enrollees at risk for 
543.1 	breast cancer, and shall be covered as a preventive item or service, as described under section 
543.2 	62Q.46.
543.3 	(b) For purposes of this subdivision, "digital breast tomosynthesis" means a radiologic 
543.4 	procedure that involves the acquisition of projection images over the stationary breast to 
543.5 	produce cross-sectional digital three-dimensional images of the breast. "At risk for breast 
543.6 	cancer" means:
543.7 	(1) having a family history with one or more first- or second-degree relatives with breast 
543.8 	cancer;
543.9 	(2) testing positive for BRCA1 or BRCA2 mutations;
543.10 	(3) having heterogeneously dense breasts or extremely dense breasts based on the Breast 
543.11 	Imaging Reporting and Data System established by the American College of Radiology; or
543.12 	(4) having a previous diagnosis of breast cancer.
543.13 	(c) This subdivision does not apply to coverage provided through a public health care 
543.14 	program under chapter 256B or 256L.
543.15 	(d) Nothing in this subdivision limits the coverage of digital breast tomosynthesis in a 
543.16 	policy, plan, certificate, or contract referred to in subdivision 1 that is in effect prior to 
543.17 	January 1, 2019.
543.18 	(e) Nothing in this subdivision prohibits a policy, plan, certificate, or contract referred 
543.19 	to in subdivision 1 from covering digital breast tomosynthesis for an enrollee who is not at 
543.20 	risk for breast cancer.

543.21 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies to health 
543.22 	plans issued, sold, or renewed on or after that date.

543.23 	Sec. 2. [62J.824] FACILITY FEE DISCLOSURE.
543.24 	(a) Prior to the delivery of nonemergency services, a provider-based clinic that charges 
543.25 	a facility fee shall provide notice to any patient stating that the clinic is part of a hospital 
543.26 	and the patient may receive a separate charge or billing for the facility component, which 
543.27 	may result in a higher out-of-pocket expense.
543.28 	(b) Each health care facility must post prominently in locations easily accessible to and 
543.29 	visible by patients, including its Web site, a statement that the provider-based clinic is part 
543.30 	of a hospital and the patient may receive a separate charge or billing for the facility, which 
543.31 	may result in a higher out-of-pocket expense.
544.1 	(c) This section does not apply to laboratory services, imaging services, or other ancillary 
544.2 	health services that are provided by staff who are not employed by the health care facility 
544.3 	or clinic.
544.4 	(d) For purposes of this section:
544.5 	(1) "facility fee" means any separate charge or billing by a provider-based clinic in 
544.6 	addition to a professional fee for physicians' services that is intended to cover building, 
544.7 	electronic medical records systems, billing, and other administrative and operational 
544.8 	expenses; and
544.9 	(2) "provider-based clinic" means the site of an off-campus clinic or provider office 
544.10 	located at least 250 yards from the main hospital buildings or as determined by the Centers 
544.11 	for Medicare and Medicaid Services, that is owned by a hospital licensed under chapter 144 
544.12 	or a health system that operates one or more hospitals licensed under chapter 144, and is 
544.13 	primarily engaged in providing diagnostic and therapeutic care, including medical history, 
544.14 	physical examinations, assessment of health status, and treatment monitoring. This definition 
544.15 	does not include clinics that are exclusively providing laboratory, x-ray, testing, therapy, 
544.16 	pharmacy, or educational services and does not include facilities designated as rural health 
544.17 	clinics.

544.18 	Sec. 3. [62Q.48] POINT OF SALE ALLOWABLE COST.
544.19 	(a) No health plan company or pharmacy benefits manager shall require an enrollee to 
544.20 	make a payment at the point of sale for a prescription drug that is covered under the enrollee's 
544.21 	health plan in an amount greater than the allowable cost to consumers.
544.22 	(b) For purposes of this section:
544.23 	(1) "allowable cost to consumers" means the lowest of:
544.24 	(i) the applicable co-payment for the prescription drug under the enrollee's health plan; 
544.25 	or
544.26 	(ii) the amount an individual would pay for the prescription drug if the individual 
544.27 	purchased the prescription drug without using a health plan benefit; and
544.28 	(2) "pharmacy benefit manager" has the meaning provided in section 151.71, subdivision 
544.29 	1.

545.1 	Sec. 4. Minnesota Statutes 2016, section 151.214, subdivision 2, is amended to read:
545.2 		Subd. 2.No prohibition on disclosure. No contracting agreement between an 
545.3 	employer-sponsored health plan or health plan company, or its contracted pharmacy benefit 
545.4 	manager, and a resident or nonresident pharmacy registered licensed under this chapter, 
545.5 	may prohibit the:
545.6 	(1) a pharmacy from disclosing to patients information a pharmacy is required or given 
545.7 	the option to provide under subdivision 1; or
545.8 	(2) a pharmacist from informing a patient when the amount the patient is required to 
545.9 	pay under the patient's health plan for a particular drug is greater than the amount the patient 
545.10 	would be required to pay for the same drug if purchased out-of-pocket at the pharmacy's 
545.11 	usual and customary price.

545.12 	Sec. 5. [151.555] PRESCRIPTION DRUG REPOSITORY PROGRAM.
545.13 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
545.14 	subdivision have the meanings given.
545.15 	(b) "Central repository" means a wholesale distributor that meets the requirements under 
545.16 	subdivision 3 and enters into a contract with the Board of Pharmacy in accordance with this 
545.17 	section.
545.18 	(c) "Distribute" means to deliver, other than by administering or dispensing.
545.19 	(d) "Donor" means:
545.20 	(1) a health care facility as defined in this subdivision;
545.21 	(2) a skilled nursing facility licensed under chapter 144A;
545.22 	(3) an assisted living facility registered under chapter 144D where there is centralized 
545.23 	storage of drugs and 24-hour on-site licensed nursing coverage provided seven days a week;
545.24 	(4) a pharmacy licensed under section 151.19, and located either in the state or outside 
545.25 	the state;
545.26 	(5) a drug wholesaler licensed under section 151.47; or
545.27 	(6) a drug manufacturer licensed under section 151.252.
545.28 	(e) "Drug" means any prescription drug that has been approved for medical use in the 
545.29 	United States, is listed in the United States Pharmacopoeia or National Formulary, and 
545.30 	meets the criteria established under this section for donation. This definition includes cancer 
545.31 	drugs and antirejection drugs, but does not include controlled substances, as defined in 
546.1 	section 152.01, subdivision 4, or a prescription drug that can only be dispensed to a patient 
546.2 	registered with the drug's manufacturer in accordance with federal Food and Drug 
546.3 	Administration requirements.
546.4 	(f) "Health care facility" means:
546.5 	(1) a physician's office or health care clinic where licensed practitioners provide health 
546.6 	care to patients;
546.7 	(2) a hospital licensed under section 144.50;
546.8 	(3) a pharmacy licensed under section 151.19 and located in Minnesota; or
546.9 	(4) a nonprofit community clinic, including a federally qualified health center; a rural 
546.10 	health clinic; public health clinic; or other community clinic that provides health care utilizing 
546.11 	a sliding fee scale to patients who are low-income, uninsured, or underinsured.
546.12 	(g) "Local repository" means a health care facility that elects to accept donated drugs 
546.13 	and medical supplies and meets the requirements of subdivision 4.
546.14 	(h) "Medical supplies" or "supplies" means any prescription and nonprescription medical 
546.15 	supply needed to administer a prescription drug.
546.16 	(i) "Original, sealed, unopened, tamper-evident packaging" means packaging that is 
546.17 	sealed, unopened, and tamper-evident, including a manufacturer's original unit dose or 
546.18 	unit-of-use container, a repackager's original unit dose or unit-of-use container, or unit-dose 
546.19 	packaging prepared by a licensed pharmacy according to the standards of Minnesota Rules, 
546.20 	part 6800.3750.
546.21 	(j) "Practitioner" has the meaning given in section 151.01, subdivision 23, except that 
546.22 	it does not include a veterinarian.
546.23 		Subd. 2.Establishment. By January 1, 2019, the Board of Pharmacy shall establish a 
546.24 	drug repository program, through which donors may donate a drug or medical supply for 
546.25 	use by an individual who meets the eligibility criteria specified under subdivision 5. The 
546.26 	board shall contract with a central repository that meets the requirements of subdivision 3 
546.27 	to implement and administer the prescription drug repository program.
546.28 		Subd. 3.Central repository requirements. (a) The board shall publish a request for 
546.29 	proposal for participants who meet the requirements of this subdivision and are interested 
546.30 	in acting as the central repository for the drug repository program. The board shall follow 
546.31 	all applicable state procurement procedures in the selection process.
547.1 	(b) To be eligible to act as the central repository, the participant must be a wholesale 
547.2 	drug distributor located in Minnesota, licensed pursuant to section 151.47, and in compliance 
547.3 	with all applicable federal and state statutes, rules, and regulations.
547.4 	(c) The central repository shall be subject to inspection by the board pursuant to section 
547.5 	151.06, subdivision 1.
547.6 		Subd. 4.Local repository requirements. (a) To be eligible for participation in the drug 
547.7 	repository program, a health care facility must agree to comply with all applicable federal 
547.8 	and state laws, rules, and regulations pertaining to the drug repository program, drug storage, 
547.9 	and dispensing. The facility must also agree to maintain in good standing any required state 
547.10 	license or registration that may apply to the facility.
547.11 	(b) A local repository may elect to participate in the program by submitting the following 
547.12 	information to the central repository on a form developed by the board and made available 
547.13 	on the board's Web site:
547.14 	(1) the name, street address, and telephone number of the health care facility and any 
547.15 	state-issued license or registration number issued to the facility, including the issuing state 
547.16 	agency;
547.17 	(2) the name and telephone number of a responsible pharmacist or practitioner who is 
547.18 	employed by or under contract with the health care facility; and
547.19 	(3) a statement signed and dated by the responsible pharmacist or practitioner indicating 
547.20 	that the health care facility meets the eligibility requirements under this section and agrees 
547.21 	to comply with this section.
547.22 	(c) Participation in the drug repository program is voluntary. A local repository may 
547.23 	withdraw from participation in the drug repository program at any time by providing written 
547.24 	notice to the central repository on a form developed by the board and made available on 
547.25 	the board's Web site. The central repository shall provide the board with a copy of the 
547.26 	withdrawal notice within ten business days from the date of receipt of the withdrawal notice.
547.27 		Subd. 5.Individual eligibility and application requirements. (a) To be eligible for 
547.28 	the drug repository program, an individual must submit to a local repository an intake 
547.29 	application form that is signed by the individual and attests that the individual:
547.30 	(1) is a resident of Minnesota;
547.31 	(2) is uninsured, has no prescription drug coverage, or is underinsured;
548.1 	(3) acknowledges that the drugs or medical supplies to be received through the program 
548.2 	may have been donated; and
548.3 	(4) consents to a waiver of the child-resistant packaging requirements of the federal 
548.4 	Poison Prevention Packaging Act.
548.5 	(b) Upon determining that an individual is eligible for the program, the local repository 
548.6 	shall furnish the individual with an identification card. The card shall be valid for one year 
548.7 	from the date of issuance and may be used at any local repository. A new identification card 
548.8 	may be issued upon expiration once the individual submits a new application form.
548.9 	(c) The local repository shall send a copy of the intake application form to the central 
548.10 	repository by regular mail, facsimile, or secured e-mail within ten days from the date the 
548.11 	application is approved by the local repository.
548.12 	(d) The board shall develop and make available on the board's Web site an application 
548.13 	form and the format for the identification card.
548.14 		Subd. 6.Standards and procedures for accepting donations of drugs and supplies.
 548.15 	(a) A donor may donate prescription drugs or medical supplies to the central repository or 
548.16 	a local repository if the drug or supply meets the requirements of this section as determined 
548.17 	by a pharmacist or practitioner who is employed by or under contract with the central 
548.18 	repository or a local repository.
548.19 	(b) A prescription drug is eligible for donation under the drug repository program if the 
548.20 	following requirements are met:
548.21 	(1) the donation is accompanied by a drug repository donor form described under 
548.22 	paragraph (d) that is signed by an individual who is authorized by the donor to attest to the 
548.23 	donor's knowledge in accordance with paragraph (d);
548.24 	(2) the drug's expiration date is at least six months after the date the drug was donated. 
548.25 	If a donated drug bears an expiration date that is less than six months from the donation 
548.26 	date, the drug may be accepted and distributed if the drug is in high demand and can be 
548.27 	dispensed for use by a patient before the drug's expiration date;
548.28 	(3) the drug is in its original, sealed, unopened, tamper-evident packaging that includes 
548.29 	the expiration date. Single-unit-dose drugs may be accepted if the single-unit-dose packaging 
548.30 	is unopened;
548.31 	(4) the drug or the packaging does not have any physical signs of tampering, misbranding, 
548.32 	deterioration, compromised integrity, or adulteration;
549.1 	(5) the drug does not require storage temperatures other than normal room temperature 
549.2 	as specified by the manufacturer or United States Pharmacopoeia, unless the drug is being 
549.3 	donated directly by its manufacturer, a wholesale drug distributor, or a pharmacy located 
549.4 	in Minnesota; and
549.5 	(6) the prescription drug is not a controlled substance.
549.6 	(c) A medical supply is eligible for donation under the drug repository program if the 
549.7 	following requirements are met:
549.8 	(1) the supply has no physical signs of tampering, misbranding, or alteration and there 
549.9 	is no reason to believe it has been adulterated, tampered with, or misbranded;
549.10 	(2) the supply is in its original, unopened, sealed packaging;
549.11 	(3) the donation is accompanied by a drug repository donor form described under 
549.12 	paragraph (d) that is signed by an individual who is authorized by the donor to attest to the 
549.13 	donor's knowledge in accordance with paragraph (d); and
549.14 	(4) if the supply bears an expiration date, the date is at least six months later than the 
549.15 	date the supply was donated. If the donated supply bears an expiration date that is less than 
549.16 	six months from the date the supply was donated, the supply may be accepted and distributed 
549.17 	if the supply is in high demand and can be dispensed for use by a patient before the supply's 
549.18 	expiration date.
549.19 	(d) The board shall develop the drug repository donor form and make it available on the 
549.20 	board's Web site. The form must state that to the best of the donor's knowledge the donated 
549.21 	drug or supply has been properly stored and that the drug or supply has never been opened, 
549.22 	used, tampered with, adulterated, or misbranded.
549.23 	(e) Donated drugs and supplies may be shipped or delivered to the premises of the central 
549.24 	repository or a local repository, and shall be inspected by a pharmacist or an authorized 
549.25 	practitioner who is employed by or under contract with the repository and who has been 
549.26 	designated by the repository to accept donations. A drop box must not be used to deliver 
549.27 	or accept donations.
549.28 	(f) The central repository and local repository shall inventory all drugs and supplies 
549.29 	donated to the repository. For each drug, the inventory must include the drug's name, strength, 
549.30 	quantity, manufacturer, expiration date, and the date the drug was donated. For each medical 
549.31 	supply, the inventory must include a description of the supply, its manufacturer, the date 
549.32 	the supply was donated, and, if applicable, the supply's brand name and expiration date.
550.1 		Subd. 7.Standards and procedures for inspecting and storing donated prescription 
550.2 	drugs and supplies. (a) A pharmacist or authorized practitioner who is employed by or 
550.3 	under contract with the central repository or a local repository shall inspect all donated 
550.4 	prescription drugs and supplies to determine, to the extent reasonably possible in the 
550.5 	professional judgment of the pharmacist or practitioner, that the drug or supply is not 
550.6 	adulterated or misbranded, has not been tampered with, is safe and suitable for dispensing, 
550.7 	and meets the requirements for donation. The pharmacist or practitioner who inspects the 
550.8 	drugs or supplies shall sign an inspection record stating that the requirements for donation 
550.9 	have been met. If a local repository receives drugs and supplies from the central repository, 
550.10 	the local repository does not need to reinspect the drugs and supplies.
550.11 	(b) The central repository and local repositories shall store donated drugs and supplies 
550.12 	in a secure storage area under environmental conditions appropriate for the drug or supply 
550.13 	being stored. Donated drugs and supplies may not be stored with nondonated inventory. If 
550.14 	donated drugs or supplies are not inspected immediately upon receipt, a repository must 
550.15 	quarantine the donated drugs or supplies separately from all dispensing stock until the 
550.16 	donated drugs or supplies have been inspected and approved for dispensing under the 
550.17 	program.
550.18 	(c) The central repository and local repositories shall dispose of all prescription drugs 
550.19 	and medical supplies that are not suitable for donation in compliance with applicable federal 
550.20 	and state statutes, regulations, and rules concerning hazardous waste.
550.21 	(d) In the event that controlled substances or prescription drugs that can only be dispensed 
550.22 	to a patient registered with the drug's manufacturer are shipped or delivered to a central or 
550.23 	local repository for donation, the shipment delivery must be documented by the repository 
550.24 	and returned immediately to the donor or the donor's representative that provided the drugs.
550.25 	(e) Each repository must develop drug and medical supply recall policies and procedures. 
550.26 	If a repository receives a recall notification, the repository shall destroy all of the drug or 
550.27 	medical supply in its inventory that is the subject of the recall and complete a record of 
550.28 	destruction form in accordance with paragraph (f). If a drug or medical supply that is the 
550.29 	subject of a Class I or Class II recall has been dispensed, the repository shall immediately 
550.30 	notify the recipient of the recalled drug or medical supply. A drug that potentially is subject 
550.31 	to a recall need not be destroyed if its packaging bears a lot number and that lot of the drug 
550.32 	is not subject to the recall. If no lot number is on the drug's packaging, it must be destroyed.
550.33 	(f) A record of destruction of donated drugs and supplies that are not dispensed under 
550.34 	subdivision 8, are subject to a recall under paragraph (e), or are not suitable for donation 
551.1 	shall be maintained by the repository for at least five years. For each drug or supply 
551.2 	destroyed, the record shall include the following information:
551.3 	(1) the date of destruction;
551.4 	(2) the name, strength, and quantity of the drug destroyed; and
551.5 	(3) the name of the person or firm that destroyed the drug.
551.6 		Subd. 8.Dispensing requirements. (a) Donated drugs and supplies may be dispensed 
551.7 	if the drugs or supplies are prescribed by a practitioner for use by an eligible individual and 
551.8 	are dispensed by a pharmacist or practitioner. A repository shall dispense drugs and supplies 
551.9 	to eligible individuals in the following priority order: (1) individuals who are uninsured; 
551.10 	(2) individuals with no prescription drug coverage; and (3) individuals who are underinsured. 
551.11 	A repository shall dispense donated prescription drugs in compliance with applicable federal 
551.12 	and state laws and regulations for dispensing prescription drugs, including all requirements 
551.13 	relating to packaging, labeling, record keeping, drug utilization review, and patient 
551.14 	counseling.
551.15 	(b) Before dispensing or administering a drug or supply, the pharmacist or practitioner 
551.16 	shall visually inspect the drug or supply for adulteration, misbranding, tampering, and date 
551.17 	of expiration. Drugs or supplies that have expired or appear upon visual inspection to be 
551.18 	adulterated, misbranded, or tampered with in any way must not be dispensed or administered.
551.19 	(c) Before a drug or supply is dispensed or administered to an individual, the individual 
551.20 	must sign a drug repository recipient form acknowledging that the individual understands 
551.21 	the information stated on the form. The board shall develop the form and make it available 
551.22 	on the board's Web site. The form must include the following information:
551.23 	(1) that the drug or supply being dispensed or administered has been donated and may 
551.24 	have been previously dispensed;
551.25 	(2) that a visual inspection has been conducted by the pharmacist or practitioner to ensure 
551.26 	that the drug or supply has not expired, has not been adulterated or misbranded, and is in 
551.27 	its original, unopened packaging; and
551.28 	(3) that the dispensing pharmacist, the dispensing or administering practitioner, the 
551.29 	central repository or local repository, the Board of Pharmacy, and any other participant of 
551.30 	the drug repository program cannot guarantee the safety of the drug or medical supply being 
551.31 	dispensed or administered and that the pharmacist or practitioner has determined that the 
551.32 	drug or supply is safe to dispense or administer based on the accuracy of the donor's form 
552.1 	submitted with the donated drug or medical supply and the visual inspection required to be 
552.2 	performed by the pharmacist or practitioner before dispensing or administering.
552.3 		Subd. 9.Handling fees. (a) The central or local repository may charge the individual 
552.4 	receiving a drug or supply a handling fee of no more than 250 percent of the medical 
552.5 	assistance program dispensing fee for each drug or medical supply dispensed or administered 
552.6 	by that repository.
552.7 	(b) A repository that dispenses or administers a drug or medical supply through the drug 
552.8 	repository program shall not receive reimbursement under the medical assistance program 
552.9 	or the MinnesotaCare program for that dispensed or administered drug or supply.
552.10 		Subd. 10.Distribution of donated drugs and supplies. (a) The central repository and 
552.11 	local repositories may distribute drugs and supplies donated under the drug repository 
552.12 	program to other participating repositories for use pursuant to this program.
552.13 	(b) A local repository that elects not to dispense donated drugs or supplies must transfer 
552.14 	all donated drugs and supplies to the central repository. A copy of the donor form that was 
552.15 	completed by the original donor under subdivision 6 must be provided to the central 
552.16 	repository at the time of transfer.
552.17 		Subd. 11.Forms and record-keeping requirements. (a) The following forms developed 
552.18 	for the administration of this program shall be utilized by the participants of the program 
552.19 	and shall be available on the board's Web site:
552.20 	(1) intake application form described under subdivision 5;
552.21 	(2) local repository participation form described under subdivision 4;
552.22 	(3) local repository withdrawal form described under subdivision 4;
552.23 	(4) drug repository donor form described under subdivision 6;
552.24 	(5) record of destruction form described under subdivision 7; and
552.25 	(6) drug repository recipient form described under subdivision 8.
552.26 	(b) All records, including drug inventory, inspection, and disposal of donated prescription 
552.27 	drugs and medical supplies must be maintained by a repository for a minimum of five years. 
552.28 	Records required as part of this program must be maintained pursuant to all applicable 
552.29 	practice acts.
552.30 	(c) Data collected by the drug repository program from all local repositories shall be 
552.31 	submitted quarterly or upon request to the central repository. Data collected may consist of 
552.32 	the information, records, and forms required to be collected under this section.
553.1 	(d) The central repository shall submit reports to the board as required by the contract 
553.2 	or upon request of the board.
553.3 		Subd. 12.Liability. (a) The manufacturer of a drug or supply is not subject to criminal 
553.4 	or civil liability for injury, death, or loss to a person or to property for causes of action 
553.5 	described in clauses (1) and (2). A manufacturer is not liable for:
553.6 	(1) the intentional or unintentional alteration of the drug or supply by a party not under 
553.7 	the control of the manufacturer; or
553.8 	(2) the failure of a party not under the control of the manufacturer to transfer or 
553.9 	communicate product or consumer information or the expiration date of the donated drug 
553.10 	or supply.
553.11 	(b) A health care facility participating in the program, a pharmacist dispensing a drug 
553.12 	or supply pursuant to the program, a practitioner dispensing or administering a drug or 
553.13 	supply pursuant to the program, or a donor of a drug or medical supply is immune from 
553.14 	civil liability for an act or omission that causes injury to or the death of an individual to 
553.15 	whom the drug or supply is dispensed and no disciplinary action by a health-related licensing 
553.16 	board shall be taken against a pharmacist or practitioner so long as the drug or supply is 
553.17 	donated, accepted, distributed, and dispensed according to the requirements of this section. 
553.18 	This immunity does not apply if the act or omission involves reckless, wanton, or intentional 
553.19 	misconduct, or malpractice unrelated to the quality of the drug or medical supply.
553.20 		Subd. 13.Sunset. This section expires July 1, 2022.

553.21 	Sec. 6. Minnesota Statutes 2016, section 151.71, is amended by adding a subdivision to 
553.22 	read:
553.23 		Subd. 3.Synchronization of refills. (a) For purposes of this subdivision, 
553.24 	"synchronization" means the coordination of prescription drug refills for a patient taking 
553.25 	two or more medications for one or more chronic conditions, to allow the patient's 
553.26 	medications to be refilled on the same schedule for a given period of time.
553.27 	(b) A contract between a pharmacy benefit manager and a pharmacy must allow for 
553.28 	synchronization of prescription drug refills for a patient on at least one occasion per year, 
553.29 	if the following criteria are met:
553.30 	(1) the prescription drugs are covered under the patient's health plan or have been 
553.31 	approved by a formulary exceptions process;
554.1 	(2) the prescription drugs are maintenance medications as defined by the health plan 
554.2 	and have one or more refills available at the time of synchronization;
554.3 	(3) the prescription drugs are not Schedule II, III, or IV controlled substances;
554.4 	(4) the patient meets all utilization management criteria relevant to the prescription drug 
554.5 	at the time of synchronization;
554.6 	(5) the prescription drugs are of a formulation that can be safely split into short-fill 
554.7 	periods to achieve synchronization; and
554.8 	(6) the prescription drugs do not have special handling or sourcing needs that require a 
554.9 	single, designated pharmacy to fill or refill the prescription.
554.10 	(c) When necessary to permit synchronization, the pharmacy benefit manager shall apply 
554.11 	a prorated, daily patient cost-sharing rate to any prescription drug dispensed by a pharmacy 
554.12 	under this subdivision. The dispensing fee shall not be prorated, and all dispensing fees 
554.13 	shall be based on the number of prescriptions filled or refilled.

554.14 	Sec. 7. TESTIMONY ON USE OF DIGITAL BREAST TOMOSYNTHESIS BY 
554.15 	MEMBERS OF THE STATE EMPLOYEE GROUP INSURANCE PROGRAM.
 554.16 	The director of the state employee group insurance program must prepare and submit 
554.17 	written testimony to the house of representatives and senate committees with jurisdiction 
554.18 	over health and human services and state government finance regarding the impact of 
554.19 	Minnesota Statutes, section 62A.30, subdivision 4. The director must provide data on actual 
554.20 	utilization of the coverage under Minnesota Statutes, section 62A.30, subdivision 4, by 
554.21 	members of the state employee group insurance program from January 1, 2019, to December 
554.22 	31, 2019. The director may make recommendations for legislation addressing any issues 
554.23 	relating to the coverage required by Minnesota Statutes, section 62A.30, subdivision 4. The 
554.24 	testimony required under this section is due by March 1, 2020.

554.25 	Sec. 8. STUDY AND REPORT ON DISPARITIES BETWEEN GEOGRAPHIC 
554.26 	RATING AREAS IN INDIVIDUAL AND SMALL GROUP MARKET HEALTH 
554.27 	INSURANCE RATES.
 554.28 		Subdivision 1.Study and recommendations. (a) As permitted by the availability of 
554.29 	resources, the legislative auditor is requested to study disparities between Minnesota's nine 
554.30 	geographic rating areas in individual and small group market health insurance rates and 
554.31 	recommend ways to reduce or eliminate rate disparities between the geographic rating areas 
555.1 	and provide for stability of the individual and small group health insurance markets in the 
555.2 	state. In the study, if conducted, the legislative auditor shall:
555.3 	(1) identify the factors that cause higher individual and small group market health 
555.4 	insurance rates in certain geographic rating areas, and determine the extent to which each 
555.5 	identified factor contributes to the higher rates;
555.6 	(2) identify the impact of referral centers on individual and small group market health 
555.7 	insurance rates in southeastern Minnesota, and identify ways to reduce the rate disparity 
555.8 	between southeastern Minnesota and the metropolitan area, taking into consideration the 
555.9 	patterns of referral center usage by patients in those regions;
555.10 	(3) determine the extent to which individuals and small employers located in a geographic 
555.11 	rating area with higher health insurance rates than surrounding geographic rating areas have 
555.12 	obtained health insurance in a lower-cost geographic rating area, identify the strategies that 
555.13 	individuals and small employers use to obtain health insurance in a lower-cost geographic 
555.14 	rating area, and measure the effects of this practice on the rates of the individuals and small 
555.15 	employers remaining in the geographic rating area with higher health insurance rates; and
555.16 	(4) develop proposals to redraw the boundaries of Minnesota's geographic rating areas, 
555.17 	and calculate the effect each proposal would have on rates in each of the proposed rating 
555.18 	areas. The legislative auditor shall examine at least three options for redrawing the boundaries 
555.19 	of Minnesota's geographic rating areas, at least one of which must reduce the number of 
555.20 	geographic rating areas. All options for redrawing Minnesota's geographic rating areas 
555.21 	considered by the legislative auditor must be designed:
555.22 	(i) with the purposes of reducing or eliminating rate disparities between geographic 
555.23 	rating areas and providing for stability of the individual and small group health insurance 
555.24 	markets in the state;
555.25 	(ii) with consideration of the composition of existing provider networks and referral 
555.26 	patterns in regions of the state; and
555.27 	(iii) in compliance with the requirements for geographic rating areas in Code of Federal 
555.28 	Regulations, title 45, section 147.102(b), and other applicable federal law and guidance.
555.29 	(b) The legislative auditor may secure de-identified data necessary to complete the study 
555.30 	and recommendations according to this subdivision directly from health carriers. For purposes 
555.31 	of this paragraph "de-identified" means a process to remove all identifiable information 
555.32 	regarding an individual or group from data. Data classified as nonpublic data or private data 
556.1 	on individuals, as defined in Minnesota Statutes, section 13.02, subdivisions 9 and 12, 
556.2 	remains classified as such.
556.3 	(c) The legislative auditor may recommend one or more proposals for redrawing 
556.4 	Minnesota's geographic rating areas if the legislative auditor determines that the proposal 
556.5 	would reduce or eliminate individual and small group market health insurance rate disparities 
556.6 	between the geographic rating areas and provide for stability of the individual and small 
556.7 	group health insurance markets in the state.
556.8 		Subd. 2.Contract. The legislative auditor may contract with another entity for technical 
556.9 	assistance in conducting the study and developing recommendations according to subdivision 
556.10 	1.
556.11 		Subd. 3.Report. The legislative auditor is requested to complete the study and 
556.12 	recommendations by January 1, 2019, and to submit a report on the study and 
556.13 	recommendations by that date to the chairs and ranking minority members of the legislative 
556.14 	committees with jurisdiction over health care and health insurance.

556.15 	Sec. 9. MENTAL HEALTH AND SUBSTANCE USE DISORDER PARITY WORK 
556.16 	GROUP.
 556.17 		Subdivision 1. Establishment; membership. (a) A mental health and substance use 
556.18 	disorder parity work group is established and shall include the following members:
556.19 	(1) two members representing health plan companies that offer health plans in the 
556.20 	individual market, appointed by the commissioner of commerce;
556.21 	(2) two members representing health plan companies that offer health plans in the group 
556.22 	markets, appointed by the commissioner of commerce;
556.23 	(3) the commissioner of health or a designee;
556.24 	(4) the commissioner of commerce or a designee;
556.25 	(5) the commissioner of management and budget or a designee;
556.26 	(6) two members representing employers, appointed by the commissioner of commerce;
556.27 	(7) two members who are providers representing the mental health and substance use 
556.28 	disorder community, appointed by the commissioner of commerce; and
556.29 	(8) two members who are advocates representing the mental health and substance use 
556.30 	disorder community, appointed by the commissioner of commerce.
557.1 	(b) Members of the work group must have expertise in standards for evidence-based 
557.2 	care, benefit design, or knowledge relating to the analysis of mental health and substance 
557.3 	use disorder parity under federal and state law, including nonquantitative treatment 
557.4 	limitations.
557.5 		Subd. 2.First appointments; first meeting; chair. Appointing authorities shall appoint 
557.6 	members to the work group by July 1, 2018. The commissioner of commerce or a designee 
557.7 	shall convene the first meeting of the work group on or before August 1, 2018. The 
557.8 	commissioner of commerce or the commissioner's designee shall act as chair.
557.9 		Subd. 3.Duties. The mental health and substance use disorder parity work group shall:
557.10 	(1) develop recommendations on the most effective approach to determine and 
557.11 	demonstrate mental health and substance use disorder parity, in accordance with state and 
557.12 	federal law for individual and group health plans offered in Minnesota; and
557.13 	(2) report recommendations to the legislature.
557.14 		Subd. 4.Report. (a) By February 15, 2019, the work group shall submit a report with 
557.15 	recommendations to the chairs and ranking minority members of the legislative committees 
557.16 	with jurisdiction over health care policy and finance.
557.17 	(b) The report must include the following:
557.18 	(1) a summary of completed state enforcement actions relating to individual and group 
557.19 	health plans offered in Minnesota during the preceding 12-month period regarding 
557.20 	compliance with parity in mental health and substance use disorders benefits in accordance 
557.21 	with state and federal law and a summary of the results of completed state enforcement 
557.22 	actions. Data that is protected under state or federal law as nonpublic, private, or confidential 
557.23 	shall remain nonpublic, private, or confidential. This summary must include:
557.24 	(i) the number of formal enforcement actions taken;
557.25 	(ii) the benefit classifications examined in each enforcement action; and
557.26 	(iii) the subject matter of each enforcement action, including quantitative and 
557.27 	nonquantitative treatment limitations;
557.28 	(2) detailed information about any regulatory actions the commissioner of health or 
557.29 	commissioner of commerce has taken as a result of a completed state enforcement action 
557.30 	pertaining to health plan compliance with Minnesota Statutes, sections 62Q.47 and 62Q.53, 
557.31 	and United States Code, title 42, section 18031(j);
558.1 	(3) a description of the work group's recommendations on educating the public about 
558.2 	alcoholism, mental health, or chemical dependency parity protections under state and federal 
558.3 	law; and
558.4 	(4) recommendations on the most effective approach to determine and demonstrate 
558.5 	mental health and substance use disorder parity, in accordance with state and federal law 
558.6 	for individual and group health plans offered in Minnesota.
558.7 	(c) In developing the report and recommendations, the work group may consult with 
558.8 	the Substance Abuse and Mental Health Services Agency and the National Association of 
558.9 	Insurance Commissioners for the latest developments on evaluation of mental health and 
558.10 	substance use disorder parity.
558.11 	(d) The report must be written in plain language and must be made available to the public 
558.12 	by being posted on the Web sites of the Department of Health and Department of Commerce. 
558.13 	The work group may make the report publicly available in additional ways, at its discretion.
558.14 	(e) The report must include any draft legislation necessary to implement the 
558.15 	recommendations of the work group.
558.16 		Subd. 5.Expiration. The mental health and substance use disorder parity work group 
558.17 	expires February 16, 2019, or the day after submitting the report required in this section, 
558.18 	whichever is earlier.

558.19 	Sec. 10. PROVIDER GRANTS FOR ADMINISTRATION OF PERIPHERAL 
558.20 	NERVE BLOCKS.
 558.21 	(a) The commissioner of human services, within the limits of funding provided for the 
558.22 	substance use disorder provider capacity grant program under Laws 2017 First Special 
558.23 	Session chapter 6, article 12, section 4, may design and implement a grant program to assist 
558.24 	providers in purchasing devices for administering continuous peripheral nerve blocks to 
558.25 	treat, reduce, or prevent substance use disorder for medical assistance enrollees.
558.26 	(b) If the commissioner implements the grant program, grants shall be distributed between 
558.27 	July 1, 2018, and June 30, 2019. The commissioner shall conduct outreach to providers 
558.28 	regarding the availability of this grant and ensure a simplified grant application process. 
558.29 	The commissioner shall provide technical assistance to assist providers in building operational 
558.30 	capacity to treat, reduce, or prevent substance use disorders with devices for administering 
558.31 	continuous peripheral nerve blocks. The commissioner, in collaboration with stakeholders, 
558.32 	shall: (1) analyze the impact of the grant program; (2) identify actual or perceived barriers 
558.33 	to providers accessing and obtaining reimbursement for devices for administering continuous 
559.1 	peripheral nerve blocks; and (3) develop recommendations for addressing identified barriers. 
559.2 	The commissioner shall provide a report to the chairs and ranking minority members of the 
559.3 	legislative committees with jurisdiction over health and human services policy and finance 
559.4 	by September 1, 2019.

559.5 	Sec. 11.  REPEALER.
 559.6 	Minnesota Statutes 2016, section 151.55, is repealed.

559.7 	ARTICLE 37
559.8 	HEALTH-RELATED LICENSING BOARDS

559.9 	Section 1. Minnesota Statutes 2016, section 144A.26, is amended to read:
559.10 	144A.26 RECIPROCITY WITH OTHER STATES AND EQUIVALENCY OF 
559.11 	HEALTH SERVICES EXECUTIVE.
559.12 		Subdivision 1.Reciprocity. The Board of Examiners may issue a nursing home 
559.13 	administrator's license, without examination, to any person who holds a current license as 
559.14 	a nursing home administrator from another jurisdiction if the board finds that the standards 
559.15 	for licensure in the other jurisdiction are at least the substantial equivalent of those prevailing 
559.16 	in this state and that the applicant is otherwise qualified.
559.17 		Subd. 2.Health services executive license. The Board of Examiners may issue a health 
559.18 	services executive license to any person who (1) has been validated by the National 
559.19 	Association of Long Term Care Administrator Boards as a health services executive, and 
559.20 	(2) has met the education and practice requirements for the minimum qualifications of a 
559.21 	nursing home administrator, assisted living administrator, and home and community-based 
559.22 	service provider. Licensure decisions made by the board under this subdivision are final.

559.23 	Sec. 2. Minnesota Statutes 2017 Supplement, section 147.01, subdivision 7, is amended 
559.24 	to read:
559.25 		Subd. 7.Physician application and license fees. (a) The board may charge the following 
559.26 	nonrefundable application and license fees processed pursuant to sections 147.02, 147.03, 
559.27 	147.037, 147.0375, and 147.38:
559.28 	(1) physician application fee, $200;
559.29 	(2) physician annual registration renewal fee, $192;
559.30 	(3) physician endorsement to other states, $40;
560.1 	(4) physician emeritus license, $50;
560.2 	(5) physician temporary license, $60;
560.3 	(6) physician late fee, $60;
560.4 	(7) duplicate license fee, $20;
560.5 	(8) certification letter fee, $25;
560.6 	(9) education or training program approval fee, $100;
560.7 	(10) report creation and generation fee, $60 per hour;
560.8 	(11) examination administration fee (half day), $50;
560.9 	(12) examination administration fee (full day), $80; and
560.10 	(13) fees developed by the Interstate Commission for determining physician qualification 
560.11 	to register and participate in the interstate medical licensure compact, as established in rules 
560.12 	authorized in and pursuant to section 147.38, not to exceed $1,000.;
560.13 	(14) verification fee, $25; and
560.14 	(15) criminal background check fee, $32.
560.15 	(b) The board may prorate the initial annual license fee. All licensees are required to 
560.16 	pay the full fee upon license renewal. The revenue generated from the fee must be deposited 
560.17 	in an account in the state government special revenue fund.

560.18 	Sec. 3. Minnesota Statutes 2016, section 147.012, is amended to read:
560.19 	147.012 OVERSIGHT OF ALLIED HEALTH PROFESSIONS.
560.20 	The board has responsibility for the oversight of the following allied health professions: 
560.21 	physician assistants under chapter 147A;, acupuncture practitioners under chapter 147B;,
560.22 	respiratory care practitioners under chapter 147C;, traditional midwives under chapter 147D;,
560.23 	registered naturopathic doctors under chapter 147E;, genetic counselors under chapter 147F,
560.24 	and athletic trainers under sections 148.7801 to 148.7815.

560.25 	Sec. 4. Minnesota Statutes 2016, section 147.02, is amended by adding a subdivision to 
560.26 	read:
560.27 		Subd. 7.Additional renewal requirements. (a) The licensee must maintain a correct 
560.28 	mailing address with the board for receiving board communications, notices, and licensure 
560.29 	renewal documents. Placing the license renewal application in first class United States mail, 
561.1 	addressed to the licensee at the licensee's last known address with postage prepaid, constitutes 
561.2 	valid service. Failure to receive the renewal documents does not relieve a license holder of 
561.3 	the obligation to comply with this section.
561.4 	(b) The names of licensees who do not return a complete license renewal application, 
561.5 	the annual license fee, or the late application fee within 30 days shall be removed from the 
561.6 	list of individuals authorized to practice medicine and surgery during the current renewal 
561.7 	period. Upon reinstatement of licensure, the licensee's name will be placed on the list of 
561.8 	individuals authorized to practice medicine and surgery.

561.9 	Sec. 5. Minnesota Statutes 2016, section 147A.06, is amended to read:
561.10 	147A.06 CANCELLATION OF LICENSE FOR NONRENEWAL.
561.11 		Subdivision 1.Cancellation of license. The board shall not renew, reissue, reinstate, or 
561.12 	restore a license that has lapsed on or after July 1, 1996, and has not been renewed within 
561.13 	two annual renewal cycles starting July 1, 1997. A licensee whose license is canceled for 
561.14 	nonrenewal must obtain a new license by applying for licensure and fulfilling all requirements 
561.15 	then in existence for an initial license to practice as a physician assistant.
561.16 		Subd. 2.Licensure following lapse of licensed status; transition. (a) A licensee whose 
561.17 	license has lapsed under subdivision 1 before January 1, 2019, and who seeks to regain 
561.18 	licensed status after January 1, 2019, shall be treated as a first-time licensee only for purposes 
561.19 	of establishing a license renewal schedule, and shall not be subject to the license cycle 
561.20 	conversion provisions in section 147A.29.
561.21 	(b) This subdivision expires July 1, 2021.

561.22 	Sec. 6. Minnesota Statutes 2016, section 147A.07, is amended to read:
561.23 	147A.07 RENEWAL.
561.24 	(a) A person who holds a license as a physician assistant shall annually, upon notification 
561.25 	from the board, renew the license by:
561.26 	(1) submitting the appropriate fee as determined by the board;
561.27 	(2) completing the appropriate forms; and
561.28 	(3) meeting any other requirements of the board.
561.29 	(b) A licensee must maintain a correct mailing address with the board for receiving board 
561.30 	communications, notices, and license renewal documents. Placing the license renewal 
561.31 	application in first class United States mail, addressed to the licensee at the licensee's last 
562.1 	known address with postage prepaid, constitutes valid service. Failure to receive the renewal 
562.2 	documents does not relieve a licensee of the obligation to comply with this section.
562.3 	(c) The name of a licensee who does not return a complete license renewal application, 
562.4 	annual license fee, or late application fee, as applicable, within the time period required by 
562.5 	this section shall be removed from the list of individuals authorized to practice during the 
562.6 	current renewal period. If the licensee's license is reinstated, the licensee's name shall be 
562.7 	placed on the list of individuals authorized to practice.

562.8 	Sec. 7. Minnesota Statutes 2017 Supplement, section 147A.28, is amended to read:
562.9 	147A.28 PHYSICIAN ASSISTANT APPLICATION AND LICENSE FEES.
562.10 	(a) The board may charge the following nonrefundable fees:
562.11 	(1) physician assistant application fee, $120;
562.12 	(2) physician assistant annual registration renewal fee (prescribing authority), $135;
562.13 	(3) physician assistant annual registration renewal fee (no prescribing authority), $115;
562.14 	(4) physician assistant temporary registration, $115;
562.15 	(5) physician assistant temporary permit, $60;
562.16 	(6) physician assistant locum tenens permit, $25;
562.17 	(7) physician assistant late fee, $50;
562.18 	(8) duplicate license fee, $20;
562.19 	(9) certification letter fee, $25;
562.20 	(10) education or training program approval fee, $100; and
562.21 	(11) report creation and generation fee, $60. per hour;
562.22 	(12) verification fee, $25; and
562.23 	(13) criminal background check fee, $32.
562.24 	(b) The board may prorate the initial annual license fee. All licensees are required to 
562.25 	pay the full fee upon license renewal. The revenue generated from the fees must be deposited 
562.26 	in an account in the state government special revenue fund.

563.1 	Sec. 8. [147A.29] LICENSE RENEWAL CYCLE CONVERSION.
563.2 		Subdivision 1.Generally. The license renewal cycle for physician assistant licensees 
563.3 	is converted to an annual cycle where renewal is due on the last day of the licensee's month 
563.4 	of birth. Conversion pursuant to this section begins January 1, 2019. This section governs 
563.5 	license renewal procedures for licensees who were licensed before December 31, 2018. The 
563.6 	conversion renewal cycle is the renewal cycle following the first license renewal after 
563.7 	January 1, 2019. The conversion license period is the license period for the conversion 
563.8 	renewal cycle. The conversion license period is between six and 17 months and ends on the 
563.9 	last day of the licensee's month of birth in either 2019 or 2020, as described in subdivision 
563.10 	2.
563.11 		Subd. 2.Conversion of license renewal cycle for current licensees. For a licensee 
563.12 	whose license is current as of December 31, 2018, the licensee's conversion license period 
563.13 	begins on January 1, 2019, and ends on the last day of the licensee's month of birth in 2019, 
563.14 	except that for licensees whose month of birth is January, February, March, April, May, or 
563.15 	June, the licensee's renewal cycle ends on the last day of the licensee's month of birth in 
563.16 	2020.
563.17 		Subd. 3.Conversion of license renewal cycle for noncurrent licensees. This subdivision 
563.18 	applies to an individual who was licensed before December 31, 2018, but whose license is 
563.19 	not current as of December 31, 2018. When the individual first renews the license after 
563.20 	January 1, 2019, the conversion renewal cycle begins on the date the individual applies for 
563.21 	renewal and ends on the last day of the licensee's month of birth in the same year, except 
563.22 	that if the last day of the individual's month of birth is less than six months after the date 
563.23 	the individual applies for renewal, then the renewal period ends on the last day of the 
563.24 	individual's month of birth in the following year.
563.25 		Subd. 4.Subsequent renewal cycles. After the licensee's conversion renewal cycle 
563.26 	under subdivision 2 or 3, subsequent renewal cycles are annual and begin on the last day 
563.27 	of the month of the licensee's birth.
563.28 		Subd. 5.Conversion period and fees. (a) A licensee who holds a license issued before 
563.29 	January 1, 2019, and who renews that license pursuant to subdivision 2 or 3, shall pay a 
563.30 	renewal fee as required in this subdivision.
563.31 	(b) A licensee shall be charged the annual license fee listed in section 147A.28 for the 
563.32 	conversion license period.
563.33 	(c) For a licensee whose conversion license period is six to 11 months, the first annual 
563.34 	license fee charged after the conversion license period shall be adjusted to credit the excess 
564.1 	fee payment made during the conversion license period. The credit is calculated by: (1) 
564.2 	subtracting the number of months of the licensee's conversion license period from 12; and 
564.3 	(2) multiplying the result of clause (1) by 1/12 of the annual fee rounded up to the next 
564.4 	dollar.
564.5 	(d) For a licensee whose conversion license period is 12 months, the first annual license 
564.6 	fee charged after the conversion license period shall not be adjusted.
564.7 	(e) For a licensee whose conversion license period is 13 to 17 months, the first annual 
564.8 	license fee charged after the conversion license period shall be adjusted to add the annual 
564.9 	license fee payment for the months that were not included in the annual license fee paid for 
564.10 	the conversion license period. The added payment is calculated by: (1) subtracting 12 from 
564.11 	the number of months of the licensee's conversion license period; and (2) multiplying the 
564.12 	result of clause (1) by 1/12 of the annual fee rounded up to the next dollar.
564.13 	(f) For the second and all subsequent license renewals made after the conversion license 
564.14 	period, the licensee's annual license fee is as listed in section 147A.28.
564.15 		Subd. 6.Expiration. This section expires July 1, 2021.

564.16 	Sec. 9. Minnesota Statutes 2016, section 147B.02, subdivision 9, is amended to read:
564.17 		Subd. 9.Renewal. (a) To renew a license an applicant must:
564.18 	(1) annually, or as determined by the board, complete a renewal application on a form 
564.19 	provided by the board;
564.20 	(2) submit the renewal fee;
564.21 	(3) provide documentation of current and active NCCAOM certification; or
564.22 	(4) if licensed under subdivision 5 or 6, meet the same NCCAOM professional 
564.23 	development activity requirements as those licensed under subdivision 7.
564.24 	(b) An applicant shall submit any additional information requested by the board to clarify 
564.25 	information presented in the renewal application. The information must be submitted within 
564.26 	30 days after the board's request, or the renewal request is nullified.
564.27 	(c) An applicant must maintain a correct mailing address with the board for receiving 
564.28 	board communications, notices, and license renewal documents. Placing the license renewal 
564.29 	application in first class United States mail, addressed to the applicant at the applicant's last 
564.30 	known address with postage prepaid, constitutes valid service. Failure to receive the renewal 
564.31 	documents does not relieve an applicant of the obligation to comply with this section.
565.1 	(d) The name of an applicant who does not return a complete license renewal application, 
565.2 	annual license fee, or late application fee, as applicable, within the time period required by 
565.3 	this section shall be removed from the list of individuals authorized to practice during the 
565.4 	current renewal period. If the applicant's license is reinstated, the applicant's name shall be 
565.5 	placed on the list of individuals authorized to practice.

565.6 	Sec. 10. Minnesota Statutes 2016, section 147B.02, is amended by adding a subdivision 
565.7 	to read:
565.8 		Subd. 12a.Licensure following lapse of licensed status; transition. (a) A licensee 
565.9 	whose license has lapsed under subdivision 12 before January 1, 2019, and who seeks to 
565.10 	regain licensed status after January 1, 2019, shall be treated as a first-time licensee only for 
565.11 	purposes of establishing a license renewal schedule, and shall not be subject to the license 
565.12 	cycle conversion provisions in section 147B.09.
565.13 	(b) This subdivision expires July 1, 2021.

565.14 	Sec. 11. Minnesota Statutes 2017 Supplement, section 147B.08, is amended to read:
565.15 	147B.08 FEES.
565.16 		Subd. 4.Acupuncturist application and license fees. (a) The board may charge the 
565.17 	following nonrefundable fees:
565.18 	(1) acupuncturist application fee, $150;
565.19 	(2) acupuncturist annual registration renewal fee, $150;
565.20 	(3) acupuncturist temporary registration fee, $60;
565.21 	(4) acupuncturist inactive status fee, $50;
565.22 	(5) acupuncturist late fee, $50;
565.23 	(6) duplicate license fee, $20;
565.24 	(7) certification letter fee, $25;
565.25 	(8) education or training program approval fee, $100; and
565.26 	(9) report creation and generation fee, $60. per hour;
565.27 	(10) verification fee, $25; and
565.28 	(11) criminal background check fee, $32.
566.1 	(b) The board may prorate the initial annual license fee. All licensees are required to 
566.2 	pay the full fee upon license renewal. The revenue generated from the fees must be deposited 
566.3 	in an account in the state government special revenue fund.

566.4 	Sec. 12. [147B.09] LICENSE RENEWAL CYCLE CONVERSION.
566.5 		Subdivision 1.Generally. The license renewal cycle for acupuncture practitioner licensees 
566.6 	is converted to an annual cycle where renewal is due on the last day of the licensee's month 
566.7 	of birth. Conversion pursuant to this section begins January 1, 2019. This section governs 
566.8 	license renewal procedures for licensees who were licensed before December 31, 2018. The 
566.9 	conversion renewal cycle is the renewal cycle following the first license renewal after 
566.10 	January 1, 2019. The conversion license period is the license period for the conversion 
566.11 	renewal cycle. The conversion license period is between six and 17 months and ends on the 
566.12 	last day of the licensee's month of birth in either 2019 or 2020, as described in subdivision 
566.13 	2.
566.14 		Subd. 2.Conversion of license renewal cycle for current licensees. For a licensee 
566.15 	whose license is current as of December 31, 2018, the licensee's conversion license period 
566.16 	begins on January 1, 2019, and ends on the last day of the licensee's month of birth in 2019, 
566.17 	except that for licensees whose month of birth is January, February, March, April, May, or 
566.18 	June, the licensee's renewal cycle ends on the last day of the licensee's month of birth in 
566.19 	2020.
566.20 		Subd. 3.Conversion of license renewal cycle for noncurrent licensees. This subdivision 
566.21 	applies to an individual who was licensed before December 31, 2018, but whose license is 
566.22 	not current as of December 31, 2018. When the individual first renews the license after 
566.23 	January 1, 2019, the conversion renewal cycle begins on the date the individual applies for 
566.24 	renewal and ends on the last day of the licensee's month of birth in the same year, except 
566.25 	that if the last day of the individual's month of birth is less than six months after the date 
566.26 	the individual applies for renewal, then the renewal period ends on the last day of the 
566.27 	individual's month of birth in the following year.
566.28 		Subd. 4.Subsequent renewal cycles. After the licensee's conversion renewal cycle 
566.29 	under subdivision 2 or 3, subsequent renewal cycles are annual and begin on the last day 
566.30 	of the month of the licensee's birth.
566.31 		Subd. 5.Conversion period and fees. (a) A licensee who holds a license issued before 
566.32 	January 1, 2019, and who renews that license pursuant to subdivision 2 or 3, shall pay a 
566.33 	renewal fee as required in this subdivision.
567.1 	(b) A licensee shall be charged the annual license fee listed in section 147B.08 for the 
567.2 	conversion license period.
567.3 	(c) For a licensee whose conversion license period is six to 11 months, the first annual 
567.4 	license fee charged after the conversion license period shall be adjusted to credit the excess 
567.5 	fee payment made during the conversion license period. The credit is calculated by: (1) 
567.6 	subtracting the number of months of the licensee's conversion license period from 12; and 
567.7 	(2) multiplying the result of clause (1) by 1/12 of the annual fee rounded up to the next 
567.8 	dollar.
567.9 	(d) For a licensee whose conversion license period is 12 months, the first annual license 
567.10 	fee charged after the conversion license period shall not be adjusted.
567.11 	(e) For a licensee whose conversion license period is 13 to 17 months, the first annual 
567.12 	license fee charged after the conversion license period shall be adjusted to add the annual 
567.13 	license fee payment for the months that were not included in the annual license fee paid for 
567.14 	the conversion license period. The added payment is calculated by: (1) subtracting 12 from 
567.15 	the number of months of the licensee's conversion license period; and (2) multiplying the 
567.16 	result of clause (1) by 1/12 of the annual fee rounded up to the next dollar.
567.17 	(f) For the second and all subsequent license renewals made after the conversion license 
567.18 	period, the licensee's annual license fee is as listed in section 147B.08.
567.19 		Subd. 6.Expiration. This section expires July 1, 2021.

567.20 	Sec. 13. Minnesota Statutes 2016, section 147C.15, subdivision 7, is amended to read:
567.21 		Subd. 7.Renewal. (a) To be eligible for license renewal a licensee must:
567.22 	(1) annually, or as determined by the board, complete a renewal application on a form 
567.23 	provided by the board;
567.24 	(2) submit the renewal fee;
567.25 	(3) provide evidence every two years of a total of 24 hours of continuing education 
567.26 	approved by the board as described in section 147C.25; and
567.27 	(4) submit any additional information requested by the board to clarify information 
567.28 	presented in the renewal application. The information must be submitted within 30 days 
567.29 	after the board's request, or the renewal request is nullified.
567.30 	(b) Applicants for renewal who have not practiced the equivalent of eight full weeks 
567.31 	during the past five years must achieve a passing score on retaking the credentialing 
567.32 	examination.
568.1 	(c) A licensee must maintain a correct mailing address with the board for receiving board 
568.2 	communications, notices, and license renewal documents. Placing the license renewal 
568.3 	application in first class United States mail, addressed to the licensee at the licensee's last 
568.4 	known address with postage prepaid, constitutes valid service. Failure to receive the renewal 
568.5 	documents does not relieve a licensee of the obligation to comply with this section.
568.6 	(d) The name of a licensee who does not return a complete license renewal application, 
568.7 	annual license fee, or late application fee, as applicable, within the time period required by 
568.8 	this section shall be removed from the list of individuals authorized to practice during the 
568.9 	current renewal period. If the licensee's license is reinstated, the licensee's name shall be 
568.10 	placed on the list of individuals authorized to practice.

568.11 	Sec. 14. Minnesota Statutes 2016, section 147C.15, is amended by adding a subdivision 
568.12 	to read:
568.13 		Subd. 12a.Licensure following lapse of licensed status; transition. (a) A licensee 
568.14 	whose license has lapsed under subdivision 12 before January 1, 2019, and who seeks to 
568.15 	regain licensed status after January 1, 2019, shall be treated as a first-time licensee only for 
568.16 	purposes of establishing a license renewal schedule, and shall not be subject to the license 
568.17 	cycle conversion provisions in section 147C.45.
568.18 	(b) This subdivision expires July 1, 2021.

568.19 	Sec. 15. Minnesota Statutes 2017 Supplement, section 147C.40, is amended to read:
568.20 	147C.40 FEES.
568.21 		Subd. 5.Respiratory therapist application and license fees. (a) The board may charge 
568.22 	the following nonrefundable fees:
568.23 	(1) respiratory therapist application fee, $100;
568.24 	(2) respiratory therapist annual registration renewal fee, $90;
568.25 	(3) respiratory therapist inactive status fee, $50;
568.26 	(4) respiratory therapist temporary registration fee, $90;
568.27 	(5) respiratory therapist temporary permit, $60;
568.28 	(6) respiratory therapist late fee, $50;
568.29 	(7) duplicate license fee, $20;
568.30 	(8) certification letter fee, $25;
569.1 	(9) education or training program approval fee, $100; and
569.2 	(10) report creation and generation fee, $60. per hour;
569.3 	(11) verification fee, $25; and
569.4 	(12) criminal background check fee, $32.
569.5 	(b) The board may prorate the initial annual license fee. All licensees are required to 
569.6 	pay the full fee upon license renewal. The revenue generated from the fees must be deposited 
569.7 	in an account in the state government special revenue fund.

569.8 	Sec. 16. [147C.45] LICENSE RENEWAL CYCLE CONVERSION.
569.9 		Subdivision 1.Generally. The license renewal cycle for respiratory care practitioner 
569.10 	licensees is converted to an annual cycle where renewal is due on the last day of the licensee's 
569.11 	month of birth. Conversion pursuant to this section begins January 1, 2019. This section 
569.12 	governs license renewal procedures for licensees who were licensed before December 31, 
569.13 	2018. The conversion renewal cycle is the renewal cycle following the first license renewal 
569.14 	after January 1, 2019. The conversion license period is the license period for the conversion 
569.15 	renewal cycle. The conversion license period is between six and 17 months and ends on the 
569.16 	last day of the licensee's month of birth in either 2019 or 2020, as described in subdivision 
569.17 	2.
569.18 		Subd. 2.Conversion of license renewal cycle for current licensees. For a licensee 
569.19 	whose license is current as of December 31, 2018, the licensee's conversion license period 
569.20 	begins on January 1, 2019, and ends on the last day of the licensee's month of birth in 2019, 
569.21 	except that for licensees whose month of birth is January, February, March, April, May, or 
569.22 	June, the licensee's renewal cycle ends on the last day of the licensee's month of birth in 
569.23 	2020.
569.24 		Subd. 3.Conversion of license renewal cycle for noncurrent licensees. This subdivision 
569.25 	applies to an individual who was licensed before December 31, 2018, but whose license is 
569.26 	not current as of December 31, 2018. When the individual first renews the license after 
569.27 	January 1, 2019, the conversion renewal cycle begins on the date the individual applies for 
569.28 	renewal and ends on the last day of the licensee's month of birth in the same year, except 
569.29 	that if the last day of the individual's month of birth is less than six months after the date 
569.30 	the individual applies for renewal, then the renewal period ends on the last day of the 
569.31 	individual's month of birth in the following year.
570.1 		Subd. 4.Subsequent renewal cycles. After the licensee's conversion renewal cycle 
570.2 	under subdivision 2 or 3, subsequent renewal cycles are annual and begin on the last day 
570.3 	of the month of the licensee's birth.
570.4 		Subd. 5.Conversion period and fees. (a) A licensee who holds a license issued before 
570.5 	January 1, 2019, and who renews that license pursuant to subdivision 2 or 3, shall pay a 
570.6 	renewal fee as required in this subdivision.
570.7 	(b) A licensee shall be charged the annual license fee listed in section 147C.40 for the 
570.8 	conversion license period.
570.9 	(c) For a licensee whose conversion license period is six to 11 months, the first annual 
570.10 	license fee charged after the conversion license period shall be adjusted to credit the excess 
570.11 	fee payment made during the conversion license period. The credit is calculated by: (1) 
570.12 	subtracting the number of months of the licensee's conversion license period from 12; and 
570.13 	(2) multiplying the result of clause (1) by 1/12 of the annual fee rounded up to the next 
570.14 	dollar.
570.15 	(d) For a licensee whose conversion license period is 12 months, the first annual license 
570.16 	fee charged after the conversion license period shall not be adjusted.
570.17 	(e) For a licensee whose conversion license period is 13 to 17 months, the first annual 
570.18 	license fee charged after the conversion license period shall be adjusted to add the annual 
570.19 	license fee payment for the months that were not included in the annual license fee paid for 
570.20 	the conversion license period. The added payment is calculated by: (1) subtracting 12 from 
570.21 	the number of months of the licensee's conversion license period; and (2) multiplying the 
570.22 	result of clause (1) by 1/12 of the annual fee rounded up to the next dollar.
570.23 	(f) For the second and all subsequent license renewals made after the conversion license 
570.24 	period, the licensee's annual license fee is as listed in section 147C.40.
570.25 		Subd. 6.Expiration. This section expires July 1, 2021.

570.26 	Sec. 17. Minnesota Statutes 2016, section 147D.17, subdivision 6, is amended to read:
570.27 		Subd. 6.Renewal. (a) To be eligible for license renewal, a licensed traditional midwife 
570.28 	must:
570.29 	(1) complete a renewal application on a form provided by the board;
570.30 	(2) submit the renewal fee;
570.31 	(3) provide evidence every three years of a total of 30 hours of continuing education 
570.32 	approved by the board as described in section 147D.21;
571.1 	(4) submit evidence of an annual peer review and update of the licensed traditional 
571.2 	midwife's medical consultation plan; and
571.3 	(5) submit any additional information requested by the board. The information must be 
571.4 	submitted within 30 days after the board's request, or the renewal request is nullified.
571.5 	(b) A licensee must maintain a correct mailing address with the board for receiving board 
571.6 	communications, notices, and license renewal documents. Placing the license renewal 
571.7 	application in first class United States mail, addressed to the licensee at the licensee's last 
571.8 	known address with postage prepaid, constitutes valid service. Failure to receive the renewal 
571.9 	documents does not relieve a licensee of the obligation to comply with this section.
571.10 	(c) The name of a licensee who does not return a complete license renewal application, 
571.11 	annual license fee, or late application fee, as applicable, within the time period required by 
571.12 	this section shall be removed from the list of individuals authorized to practice during the 
571.13 	current renewal period. If the licensee's license is reinstated, the licensee's name shall be 
571.14 	placed on the list of individuals authorized to practice.

571.15 	Sec. 18. Minnesota Statutes 2016, section 147D.17, is amended by adding a subdivision 
571.16 	to read:
571.17 		Subd. 11a.Licensure following lapse of licensed status; transition. (a) A licensee 
571.18 	whose license has lapsed under subdivision 11 before January 1, 2019, and who seeks to 
571.19 	regain licensed status after January 1, 2019, shall be treated as a first-time licensee only for 
571.20 	purposes of establishing a license renewal schedule, and shall not be subject to the license 
571.21 	cycle conversion provisions in section 147D.29.
571.22 	(b) This subdivision expires July 1, 2021.

571.23 	Sec. 19. Minnesota Statutes 2016, section 147D.27, is amended by adding a subdivision 
571.24 	to read:
571.25 		Subd. 5.Additional fees. The board may also charge the following nonrefundable fees:
571.26 	(1) verification fee, $25;
571.27 	(2) certification letter fee, $25;
571.28 	(3) education or training program approval fee, $100;
571.29 	(4) report creation and generation fee, $60 per hour;
571.30 	(5) duplicate license fee, $20; and
572.1 	(6) criminal background check fee, $32.

572.2 	Sec. 20. [147D.29] LICENSE RENEWAL CYCLE CONVERSION.
572.3 		Subdivision 1.Generally. The license renewal cycle for traditional midwife licensees 
572.4 	is converted to an annual cycle where renewal is due on the last day of the licensee's month 
572.5 	of birth. Conversion pursuant to this section begins January 1, 2019. This section governs 
572.6 	license renewal procedures for licensees who were licensed before December 31, 2018. The 
572.7 	conversion renewal cycle is the renewal cycle following the first license renewal after 
572.8 	January 1, 2019. The conversion license period is the license period for the conversion 
572.9 	renewal cycle. The conversion license period is between six and 17 months and ends on the 
572.10 	last day of the licensee's month of birth in either 2019 or 2020, as described in subdivision 
572.11 	2.
572.12 		Subd. 2.Conversion of license renewal cycle for current licensees. For a licensee 
572.13 	whose license is current as of December 31, 2018, the licensee's conversion license period 
572.14 	begins on January 1, 2019, and ends on the last day of the licensee's month of birth in 2019, 
572.15 	except that for licensees whose month of birth is January, February, March, April, May, or 
572.16 	June, the licensee's renewal cycle ends on the last day of the licensee's month of birth in 
572.17 	2020.
572.18 		Subd. 3.Conversion of license renewal cycle for noncurrent licensees. This subdivision 
572.19 	applies to an individual who was licensed before December 31, 2018, but whose license is 
572.20 	not current as of December 31, 2018. When the individual first renews the license after 
572.21 	January 1, 2019, the conversion renewal cycle begins on the date the individual applies for 
572.22 	renewal and ends on the last day of the licensee's month of birth in the same year, except 
572.23 	that if the last day of the individual's month of birth is less than six months after the date 
572.24 	the individual applies for renewal, then the renewal period ends on the last day of the 
572.25 	individual's month of birth in the following year.
572.26 		Subd. 4.Subsequent renewal cycles. After the licensee's conversion renewal cycle 
572.27 	under subdivision 2 or 3, subsequent renewal cycles are annual and begin on the last day 
572.28 	of the month of the licensee's birth.
572.29 		Subd. 5.Conversion period and fees. (a) A licensee who holds a license issued before 
572.30 	January 1, 2019, and who renews that license pursuant to subdivision 2 or 3, shall pay a 
572.31 	renewal fee as required in this subdivision.
572.32 	(b) A licensee shall be charged the annual license fee listed in section 147D.27 for the 
572.33 	conversion license period.
573.1 	(c) For a licensee whose conversion license period is six to 11 months, the first annual 
573.2 	license fee charged after the conversion license period shall be adjusted to credit the excess 
573.3 	fee payment made during the conversion license period. The credit is calculated by: (1) 
573.4 	subtracting the number of months of the licensee's conversion license period from 12; and 
573.5 	(2) multiplying the result of clause (1) by 1/12 of the annual fee rounded up to the next 
573.6 	dollar.
573.7 	(d) For a licensee whose conversion license period is 12 months, the first annual license 
573.8 	fee charged after the conversion license period shall not be adjusted.
573.9 	(e) For a licensee whose conversion license period is 13 to 17 months, the first annual 
573.10 	license fee charged after the conversion license period shall be adjusted to add the annual 
573.11 	license fee payment for the months that were not included in the annual license fee paid for 
573.12 	the conversion license period. The added payment is calculated by: (1) subtracting 12 from 
573.13 	the number of months of the licensee's conversion license period; and (2) multiplying the 
573.14 	result of clause (1) by 1/12 of the annual fee rounded up to the next dollar.
573.15 	(f) For the second and all subsequent license renewals made after the conversion license 
573.16 	period, the licensee's annual license fee is as listed in section 147D.27.
573.17 		Subd. 6.Expiration. This section expires July 1, 2021.

573.18 	Sec. 21. Minnesota Statutes 2016, section 147E.15, subdivision 5, is amended to read:
573.19 		Subd. 5.Renewal. (a) To be eligible for registration renewal a registrant must:
573.20 	(1) annually, or as determined by the board, complete a renewal application on a form 
573.21 	provided by the board;
573.22 	(2) submit the renewal fee;
573.23 	(3) provide evidence of a total of 25 hours of continuing education approved by the 
573.24 	board as described in section 147E.25; and
573.25 	(4) submit any additional information requested by the board to clarify information 
573.26 	presented in the renewal application. The information must be submitted within 30 days 
573.27 	after the board's request, or the renewal request is nullified.
573.28 	(b) A registrant must maintain a correct mailing address with the board for receiving 
573.29 	board communications, notices, and registration renewal documents. Placing the registration 
573.30 	renewal application in first class United States mail, addressed to the registrant at the 
573.31 	registrant's last known address with postage prepaid, constitutes valid service. Failure to 
574.1 	receive the renewal documents does not relieve a registrant of the obligation to comply with 
574.2 	this section.
574.3 	(c) The name of a registrant who does not return a complete registration renewal 
574.4 	application, annual registration fee, or late application fee, as applicable, within the time 
574.5 	period required by this section shall be removed from the list of individuals authorized to 
574.6 	practice during the current renewal period. If the registrant's registration is reinstated, the 
574.7 	registrant's name shall be placed on the list of individuals authorized to practice.

574.8 	Sec. 22. Minnesota Statutes 2016, section 147E.15, is amended by adding a subdivision 
574.9 	to read:
574.10 		Subd. 10a.Registration following lapse of registered status; transition. (a) A registrant 
574.11 	whose registration has lapsed under subdivision 10 before January 1, 2019, and who seeks 
574.12 	to regain registered status after January 1, 2019, shall be treated as a first-time registrant 
574.13 	only for purposes of establishing a registration renewal schedule, and shall not be subject 
574.14 	to the registration cycle conversion provisions in section 147E.45.
574.15 	(b) This subdivision expires July 1, 2021.

574.16 	Sec. 23. Minnesota Statutes 2016, section 147E.40, subdivision 1, is amended to read:
574.17 		Subdivision 1.Fees. Fees are as follows:
574.18 	(1) registration application fee, $200;
574.19 	(2) renewal fee, $150;
574.20 	(3) late fee, $75;
574.21 	(4) inactive status fee, $50; and
574.22 	(5) temporary permit fee, $25.;
574.23 	(6) emeritus registration fee, $50;
574.24 	(7) duplicate license fee, $20;
574.25 	(8) certification letter fee, $25;
574.26 	(9) verification fee, $25;
574.27 	(10) education or training program approval fee, $100; and
574.28 	(11) report creation and generation fee, $60 per hour.

575.1 	Sec. 24. [147E.45] REGISTRATION RENEWAL CYCLE CONVERSION.
575.2 		Subdivision 1.Generally. The registration renewal cycle for registered naturopathic 
575.3 	doctors is converted to an annual cycle where renewal is due on the last day of the registrant's 
575.4 	month of birth. Conversion pursuant to this section begins January 1, 2019. This section 
575.5 	governs registration renewal procedures for registrants who were registered before December 
575.6 	31, 2018. The conversion renewal cycle is the renewal cycle following the first registration 
575.7 	renewal after January 1, 2019. The conversion registration period is the registration period 
575.8 	for the conversion renewal cycle. The conversion registration period is between six and 17 
575.9 	months and ends on the last day of the registrant's month of birth in either 2019 or 2020, as 
575.10 	described in subdivision 2.
575.11 		Subd. 2.Conversion of registration renewal cycle for current registrants. For a 
575.12 	registrant whose registration is current as of December 31, 2018, the registrant's conversion 
575.13 	registration period begins on January 1, 2019, and ends on the last day of the registrant's 
575.14 	month of birth in 2019, except that for registrants whose month of birth is January, February, 
575.15 	March, April, May, or June, the registrant's renewal cycle ends on the last day of the 
575.16 	registrant's month of birth in 2020.
575.17 		Subd. 3.Conversion of registration renewal cycle for noncurrent registrants. This 
575.18 	subdivision applies to an individual who was registered before December 31, 2018, but 
575.19 	whose registration is not current as of December 31, 2018. When the individual first renews 
575.20 	the registration after January 1, 2019, the conversion renewal cycle begins on the date the 
575.21 	individual applies for renewal and ends on the last day of the registrant's month of birth in 
575.22 	the same year, except that if the last day of the individual's month of birth is less than six 
575.23 	months after the date the individual applies for renewal, then the renewal period ends on 
575.24 	the last day of the individual's month of birth in the following year.
575.25 		Subd. 4.Subsequent renewal cycles. After the registrant's conversion renewal cycle 
575.26 	under subdivision 2 or 3, subsequent renewal cycles are annual and begin on the last day 
575.27 	of the month of the registrant's birth.
575.28 		Subd. 5.Conversion period and fees. (a) A registrant who holds a registration issued 
575.29 	before January 1, 2019, and who renews that registration pursuant to subdivision 2 or 3, 
575.30 	shall pay a renewal fee as required in this subdivision.
575.31 	(b) A registrant shall be charged the annual registration fee listed in section 147E.40 for 
575.32 	the conversion registration period.
575.33 	(c) For a registrant whose conversion registration period is six to 11 months, the first 
575.34 	annual registration fee charged after the conversion registration period shall be adjusted to 
576.1 	credit the excess fee payment made during the conversion registration period. The credit is 
576.2 	calculated by: (1) subtracting the number of months of the registrant's conversion registration 
576.3 	period from 12; and (2) multiplying the result of clause (1) by 1/12 of the annual fee rounded 
576.4 	up to the next dollar.
576.5 	(d) For a registrant whose conversion registration period is 12 months, the first annual 
576.6 	registration fee charged after the conversion registration period shall not be adjusted.
576.7 	(e) For a registrant whose conversion registration period is 13 to 17 months, the first 
576.8 	annual registration fee charged after the conversion registration period shall be adjusted to 
576.9 	add the annual registration fee payment for the months that were not included in the annual 
576.10 	registration fee paid for the conversion registration period. The added payment is calculated 
576.11 	by: (1) subtracting 12 from the number of months of the registrant's conversion registration 
576.12 	period; and (2) multiplying the result of clause (1) by 1/12 of the annual fee rounded up to 
576.13 	the next dollar.
576.14 	(f) For the second and all subsequent registration renewals made after the conversion 
576.15 	registration period, the registrant's annual registration fee is as listed in section 147E.40.
576.16 		Subd. 6.Expiration. This section expires July 1, 2021.

576.17 	Sec. 25. Minnesota Statutes 2016, section 147F.07, subdivision 5, is amended to read:
576.18 		Subd. 5.License renewal. (a) To be eligible for license renewal, a licensed genetic 
576.19 	counselor must submit to the board:
576.20 	(1) a renewal application on a form provided by the board;
576.21 	(2) the renewal fee required under section 147F.17;
576.22 	(3) evidence of compliance with the continuing education requirements in section 
576.23 	147F.11; and
576.24 	(4) any additional information requested by the board.
576.25 	(b) A licensee must maintain a correct mailing address with the board for receiving board 
576.26 	communications, notices, and license renewal documents. Placing the license renewal 
576.27 	application in first class United States mail, addressed to the licensee at the licensee's last 
576.28 	known address with postage prepaid, constitutes valid service. Failure to receive the renewal 
576.29 	documents does not relieve a licensee of the obligation to comply with this section.
576.30 	(c) The name of a licensee who does not return a complete license renewal application, 
576.31 	annual license fee, or late application fee, as applicable, within the time period required by 
576.32 	this section shall be removed from the list of individuals authorized to practice during the 
577.1 	current renewal period. If the licensee's license is reinstated, the licensee's name shall be 
577.2 	placed on the list of individuals authorized to practice.

577.3 	Sec. 26. Minnesota Statutes 2016, section 147F.07, is amended by adding a subdivision 
577.4 	to read:
577.5 		Subd. 6.Licensure following lapse of licensure status for two years or less. For any 
577.6 	individual whose licensure status has lapsed for two years or less, to regain licensure status, 
577.7 	the individual must:
577.8 	(1) apply for license renewal according to subdivision 5;
577.9 	(2) document compliance with the continuing education requirements of section 147F.11 
577.10 	since the licensed genetic counselor's initial licensure or last renewal; and
577.11 	(3) submit the fees required under section 147F.17 for the period not licensed, including 
577.12 	the fee for late renewal.

577.13 	Sec. 27. Minnesota Statutes 2016, section 147F.07, is amended by adding a subdivision 
577.14 	to read:
577.15 		Subd. 6a.Licensure following lapse of licensed status; transition. (a) A licensee whose 
577.16 	license has lapsed under subdivision 6 before January 1, 2019, and who seeks to regain 
577.17 	licensed status after January 1, 2019, shall be treated as a first-time licensee only for purposes 
577.18 	of establishing a license renewal schedule, and shall not be subject to the license cycle 
577.19 	conversion provisions in section 147F.19.
577.20 	(b) This subdivision expires July 1, 2021.

577.21 	Sec. 28. Minnesota Statutes 2016, section 147F.17, subdivision 1, is amended to read:
577.22 		Subdivision 1.Fees. Fees are as follows:
577.23 	(1) license application fee, $200;
577.24 	(2) initial licensure and annual renewal, $150; and
577.25 	(3) late fee, $75.;
577.26 	(4) temporary license fee, $60;
577.27 	(5) duplicate license fee, $20;
577.28 	(6) certification letter fee, $25;
577.29 	(7) education or training program approval fee, $100;
578.1 	(8) report creation and generation fee, $60 per hour; and
578.2 	(9) criminal background check fee, $32.

578.3 	Sec. 29. [147F.19] LICENSE RENEWAL CYCLE CONVERSION.
578.4 		Subdivision 1.Generally. The license renewal cycle for genetic counselor licensees is 
578.5 	converted to an annual cycle where renewal is due on the last day of the licensee's month 
578.6 	of birth. Conversion pursuant to this section begins January 1, 2019. This section governs 
578.7 	license renewal procedures for licensees who were licensed before December 31, 2018. The 
578.8 	conversion renewal cycle is the renewal cycle following the first license renewal after 
578.9 	January 1, 2019. The conversion license period is the license period for the conversion 
578.10 	renewal cycle. The conversion license period is between six and 17 months and ends on the 
578.11 	last day of the licensee's month of birth in either 2019 or 2020, as described in subdivision 
578.12 	2.
578.13 		Subd. 2.Conversion of license renewal cycle for current licensees. For a licensee 
578.14 	whose license is current as of December 31, 2018, the licensee's conversion license period 
578.15 	begins on January 1, 2019, and ends on the last day of the licensee's month of birth in 2019, 
578.16 	except that for licensees whose month of birth is January, February, March, April, May, or 
578.17 	June, the licensee's renewal cycle ends on the last day of the licensee's month of birth in 
578.18 	2020.
578.19 		Subd. 3.Conversion of license renewal cycle for noncurrent licensees. This subdivision 
578.20 	applies to an individual who was licensed before December 31, 2018, but whose license is 
578.21 	not current as of December 31, 2018. When the individual first renews the license after 
578.22 	January 1, 2019, the conversion renewal cycle begins on the date the individual applies for 
578.23 	renewal and ends on the last day of the licensee's month of birth in the same year, except 
578.24 	that if the last day of the individual's month of birth is less than six months after the date 
578.25 	the individual applies for renewal, then the renewal period ends on the last day of the 
578.26 	individual's month of birth in the following year.
578.27 		Subd. 4.Subsequent renewal cycles. After the licensee's conversion renewal cycle 
578.28 	under subdivision 2 or 3, subsequent renewal cycles are annual and begin on the last day 
578.29 	of the month of the licensee's birth.
578.30 		Subd. 5.Conversion period and fees. (a) A licensee who holds a license issued before 
578.31 	January 1, 2019, and who renews that license pursuant to subdivision 2 or 3, shall pay a 
578.32 	renewal fee as required in this subdivision.
579.1 	(b) A licensee shall be charged the annual license fee listed in section 147F.17 for the 
579.2 	conversion license period.
579.3 	(c) For a licensee whose conversion license period is six to 11 months, the first annual 
579.4 	license fee charged after the conversion license period shall be adjusted to credit the excess 
579.5 	fee payment made during the conversion license period. The credit is calculated by: (1) 
579.6 	subtracting the number of months of the licensee's conversion license period from 12; and 
579.7 	(2) multiplying the result of clause (1) by 1/12 of the annual fee rounded up to the next 
579.8 	dollar.
579.9 	(d) For a licensee whose conversion license period is 12 months, the first annual license 
579.10 	fee charged after the conversion license period shall not be adjusted.
579.11 	(e) For a licensee whose conversion license period is 13 to 17 months, the first annual 
579.12 	license fee charged after the conversion license period shall be adjusted to add the annual 
579.13 	license fee payment for the months that were not included in the annual license fee paid for 
579.14 	the conversion license period. The added payment is calculated by: (1) subtracting 12 from 
579.15 	the number of months of the licensee's conversion license period; and (2) multiplying the 
579.16 	result of clause (1) by 1/12 of the annual fee rounded up to the next dollar.
579.17 	(f) For the second and all subsequent license renewals made after the conversion license 
579.18 	period, the licensee's annual license fee is as listed in section 147F.17.
579.19 		Subd. 6.Expiration. This section expires July 1, 2021.

579.20 	Sec. 30. Minnesota Statutes 2016, section 148.59, is amended to read:
579.21 	148.59 LICENSE RENEWAL; LICENSE AND REGISTRATION FEES.
579.22 	A licensed optometrist shall pay to the state Board of Optometry a fee as set by the board 
579.23 	in order to renew a license as provided by board rule. No fees shall be refunded. Fees may 
579.24 	not exceed the following amounts but may be adjusted lower by board direction and are for 
579.25 	the exclusive use of the board:
579.26 	(1) optometry licensure application, $160;
579.27 	(2) optometry annual licensure renewal, $135 $170;
579.28 	(3) optometry late penalty fee, $75;
579.29 	(4) annual license renewal card, $10;
579.30 	(5) continuing education provider application, $45;
579.31 	(6) emeritus registration, $10;
580.1 	(7) endorsement/reciprocity application, $160;
580.2 	(8) replacement of initial license, $12; and
580.3 	(9) license verification, $50.;
580.4 	(10) jurisprudence state examination, $75;
580.5 	(11) Optometric Education Continuing Education data bank registration, $20; and
580.6 	(12) data requests and labels, $50.

580.7 	Sec. 31. Minnesota Statutes 2016, section 148.7815, subdivision 1, is amended to read:
580.8 		Subdivision 1.Fees. The board shall establish fees as follows:
580.9 	(1) application fee, $50;
580.10 	(2) annual registration fee, $100;
580.11 	(3) temporary registration, $100; and
580.12 	(4) temporary permit, $50.;
580.13 	(5) late fee, $15;
580.14 	(6) duplicate license fee, $20;
580.15 	(7) certification letter fee, $25;
580.16 	(8) verification fee, $25;
580.17 	(9) education or training program approval fee, $100; and
580.18 	(10) report creation and generation fee, $60 per hour.

580.19 	Sec. 32. Minnesota Statutes 2016, section 148E.180, is amended to read:
580.20 	148E.180 FEE AMOUNTS.
580.21 		Subdivision 1.Application fees. Nonrefundable application fees for licensure are as 
580.22 	follows may not exceed the following amounts:
580.23 	(1) for a licensed social worker, $45 $54;
580.24 	(2) for a licensed graduate social worker, $45 $54;
580.25 	(3) for a licensed independent social worker, $45 $54;
580.26 	(4) for a licensed independent clinical social worker, $45 $54;
580.27 	(5) for a temporary license, $50; and
581.1 	(6) for a licensure by endorsement, $85 $92.
581.2 	The fee for criminal background checks is the fee charged by the Bureau of Criminal 
581.3 	Apprehension. The criminal background check fee must be included with the application 
581.4 	fee as required according to section 148E.055.
581.5 		Subd. 2.License fees. Nonrefundable license fees are as follows may not exceed the 
581.6 	following amounts but may be adjusted lower by board action:
581.7 	(1) for a licensed social worker, $81 $97;
581.8 	(2) for a licensed graduate social worker, $144 $172;
581.9 	(3) for a licensed independent social worker, $216 $258;
581.10 	(4) for a licensed independent clinical social worker, $238.50 $284;
581.11 	(5) for an emeritus inactive license, $43.20 $51;
581.12 	(6) for an emeritus active license, one-half of the renewal fee specified in subdivision 
581.13 	3; and
581.14 	(7) for a temporary leave fee, the same as the renewal fee specified in subdivision 3.
581.15 	If the licensee's initial license term is less or more than 24 months, the required license 
581.16 	fees must be prorated proportionately.
581.17 		Subd. 3.Renewal fees. Nonrefundable renewal fees for licensure are as follows the 
581.18 	two-year renewal term may not exceed the following amounts but may be adjusted lower 
581.19 	by board action:
581.20 	(1) for a licensed social worker, $81 $97;
581.21 	(2) for a licensed graduate social worker, $144 $172;
581.22 	(3) for a licensed independent social worker, $216 $258; and
581.23 	(4) for a licensed independent clinical social worker, $238.50 $284.
581.24 		Subd. 4.Continuing education provider fees. Continuing education provider fees are 
581.25 	as follows the following nonrefundable amounts:
581.26 	(1) for a provider who offers programs totaling one to eight clock hours in a one-year 
581.27 	period according to section 148E.145, $50 $60;
581.28 	(2) for a provider who offers programs totaling nine to 16 clock hours in a one-year 
581.29 	period according to section 148E.145, $100 $120;
582.1 	(3) for a provider who offers programs totaling 17 to 32 clock hours in a one-year period 
582.2 	according to section 148E.145, $200 $240;
582.3 	(4) for a provider who offers programs totaling 33 to 48 clock hours in a one-year period 
582.4 	according to section 148E.145, $400 $480; and
582.5 	(5) for a provider who offers programs totaling 49 or more clock hours in a one-year 
582.6 	period according to section 148E.145, $600 $720.
582.7 		Subd. 5.Late fees. Late fees are as follows the following nonrefundable amounts:
582.8 	(1) renewal late fee, one-fourth of the renewal fee specified in subdivision 3;
582.9 	(2) supervision plan late fee, $40; and
582.10 	(3) license late fee, $100 plus the prorated share of the license fee specified in subdivision 
582.11 	2 for the number of months during which the individual practiced social work without a 
582.12 	license.
582.13 		Subd. 6.License cards and wall certificates. (a) The fee for a license card as specified 
582.14 	in section 148E.095 is $10.
582.15 	(b) The fee for a license wall certificate as specified in section 148E.095 is $30.
582.16 		Subd. 7.Reactivation fees. Reactivation fees are as follows the following nonrefundable 
582.17 	amounts:
582.18 	(1) reactivation from a temporary leave or emeritus status, the prorated share of the 
582.19 	renewal fee specified in subdivision 3; and
582.20 	(2) reactivation of an expired license, 1-1/2 times the renewal fees specified in subdivision 
582.21 	3.

582.22 	Sec. 33. Minnesota Statutes 2016, section 150A.06, subdivision 1a, is amended to read:
582.23 		Subd. 1a.Faculty dentists. (a) Faculty members of a school of dentistry must be licensed 
582.24 	in order to practice dentistry as defined in section 150A.05. The board may issue to members 
582.25 	of the faculty of a school of dentistry a license designated as either a "limited faculty license" 
582.26 	or a "full faculty license" entitling the holder to practice dentistry within the terms described 
582.27 	in paragraph (b) or (c). The dean of a school of dentistry and program directors of a 
582.28 	Minnesota dental hygiene, dental therapy, or dental assisting school accredited by the 
582.29 	Commission on Dental Accreditation shall certify to the board those members of the school's 
582.30 	faculty who practice dentistry but are not licensed to practice dentistry in Minnesota. A 
582.31 	faculty member who practices dentistry as defined in section 150A.05, before beginning 
583.1 	duties in a school of dentistry or a, dental therapy, dental hygiene, or dental assisting school,
583.2 	shall apply to the board for a limited or full faculty license. Pursuant to Minnesota Rules, 
583.3 	chapter 3100, and at the discretion of the board, a limited faculty license must be renewed 
583.4 	annually and a full faculty license must be renewed biennially. The faculty applicant shall 
583.5 	pay a nonrefundable fee set by the board for issuing and renewing the faculty license. The 
583.6 	faculty license is valid during the time the holder remains a member of the faculty of a 
583.7 	school of dentistry or a, dental therapy, dental hygiene, or dental assisting school and subjects 
583.8 	the holder to this chapter.
583.9 	(b) The board may issue to dentist members of the faculty of a Minnesota school of 
583.10 	dentistry, dental therapy, dental hygiene, or dental assisting accredited by the Commission 
583.11 	on Dental Accreditation, a license designated as a limited faculty license entitling the holder 
583.12 	to practice dentistry within the school and its affiliated teaching facilities, but only for the 
583.13 	purposes of teaching or conducting research. The practice of dentistry at a school facility 
583.14 	for purposes other than teaching or research is not allowed unless the dentist was a faculty 
583.15 	member on August 1, 1993.
583.16 	(c) The board may issue to dentist members of the faculty of a Minnesota school of 
583.17 	dentistry, dental therapy, dental hygiene, or dental assisting accredited by the Commission 
583.18 	on Dental Accreditation a license designated as a full faculty license entitling the holder to 
583.19 	practice dentistry within the school and its affiliated teaching facilities and elsewhere if the 
583.20 	holder of the license is employed 50 percent time or more full time by the school in the 
583.21 	practice of teaching, supervising, or research, and upon successful review by the board of 
583.22 	the applicant's qualifications as described in subdivisions 1, 1c, and 4 and board rule. The 
583.23 	board, at its discretion, may waive specific licensing prerequisites.

583.24 	Sec. 34. Minnesota Statutes 2016, section 150A.06, is amended by adding a subdivision 
583.25 	to read:
583.26 		Subd. 10.Emeritus inactive license. (a) A dental professional licensed under this chapter 
583.27 	to practice dentistry, dental therapy, dental hygiene, or dental assisting who retires from 
583.28 	active practice in the state may apply to the board for an emeritus inactive license. An 
583.29 	applicant must apply for an emeritus inactive license on the biennial licensing form or by 
583.30 	petitioning the board.
583.31 	(b) The board shall not grant an emeritus inactive license to an applicant who is the 
583.32 	subject of a disciplinary action resulting in the current suspension, revocation, 
583.33 	disqualification, condition, or restriction of the applicant's license to practice dentistry, 
583.34 	dental therapy, dental hygiene, or dental assisting.
584.1 	(c) An emeritus inactive licensee is prohibited from practicing dentistry, dental therapy, 
584.2 	dental hygiene, or dental assisting. An emeritus inactive license is a formal recognition of 
584.3 	completion of the licensee's dental career in good standing.
584.4 	(d) The board shall charge a onetime fee for issuance of an emeritus inactive license, 
584.5 	pursuant to section 150A.091.

584.6 	Sec. 35. Minnesota Statutes 2016, section 150A.06, is amended by adding a subdivision 
584.7 	to read:
584.8 		Subd. 11.Emeritus active license. (a) A dental professional licensed to practice dentistry, 
584.9 	dental therapy, dental hygiene, or dental assisting, pursuant to section 150A.05 and Minnesota 
584.10 	Rules, part 3100.8500, who declares retirement from active practice in the state may apply 
584.11 	to the board for an emeritus active license. An applicant must apply for an emeritus active 
584.12 	license on a form as required by the board.
584.13 	(b) An emeritus active licensee may engage only in pro bono or volunteer practice, paid 
584.14 	practice not to exceed 240 hours per calendar year for the purpose of providing license 
584.15 	supervision to meet board requirements, and paid consulting services not to exceed 240 
584.16 	hours per calendar year.
584.17 	(c) An emeritus active licensee is prohibited from representing that the licensee is 
584.18 	authorized to engage in any practice except as provided in paragraph (b). The board may 
584.19 	take disciplinary or corrective action against an emeritus active licensee as provided in 
584.20 	section 150A.08.
584.21 	(d) An emeritus active license must be renewed biennially. The renewal requirements 
584.22 	for an emeritus active license are:
584.23 	(1) completion of a renewal form as required by the board;
584.24 	(2) payment of a renewal fee pursuant to section 150A.091; and
584.25 	(3) reporting of 25 completed continuing education hours, which must include:
584.26 	(i) courses in two required CORE areas;
584.27 	(ii) one hour of credit on infection control;
584.28 	(iii) for emeritus active licenses in dentistry and dental therapy, at least 15 fundamental 
584.29 	credits and no more than ten elective credits; and
584.30 	(iv) for emeritus active licenses in dental hygiene and dental assisting, at least seven 
584.31 	fundamental credits and no more than six elective credits.

585.1 	Sec. 36. Minnesota Statutes 2016, section 150A.091, is amended by adding a subdivision 
585.2 	to read:
585.3 		Subd. 19.Emeritus inactive license. Each applicant shall submit with an application 
585.4 	for an emeritus inactive license a onetime, nonrefundable fee in the amount of $50.

585.5 	Sec. 37. Minnesota Statutes 2016, section 150A.091, is amended by adding a subdivision 
585.6 	to read:
585.7 		Subd. 20.Emeritus active license. Each applicant shall submit with an application for 
585.8 	an emeritus inactive license, and each emeritus active licensee shall submit with a renewal 
585.9 	application, a nonrefundable fee as follows:
585.10 	(1) for an emeritus active license in dentistry, $212;
585.11 	(2) for an emeritus active license in dental therapy, $100;
585.12 	(3) for an emeritus active license in dental hygiene, $75; and
585.13 	(4) for an emeritus active license in dental assisting, $55.

585.14 	Sec. 38. Minnesota Statutes 2016, section 151.15, is amended by adding a subdivision to 
585.15 	read:
585.16 		Subd. 5.Receipt of emergency prescription orders. A pharmacist, when that pharmacist 
585.17 	is not present within a licensed pharmacy, may accept a written, verbal, or electronic 
585.18 	prescription drug order from a practitioner only if:
585.19 	(1) the prescription drug order is for an emergency situation where waiting for the 
585.20 	licensed pharmacy from which the prescription will be dispensed to open would likely cause 
585.21 	the patient to experience significant physical harm or discomfort;
585.22 	(2) the pharmacy from which the prescription drug order will be dispensed is closed for 
585.23 	business;
585.24 	(3) the pharmacist has been designated to be on call for the licensed pharmacy that will 
585.25 	fill the prescription drug order;
585.26 	(4) in the case of an electronic prescription drug order, the order must be received through 
585.27 	secure and encrypted electronic means;
585.28 	(5) the pharmacist takes reasonable precautions to ensure that the prescription drug order 
585.29 	will be handled in a manner consistent with federal and state statutes regarding the handling 
585.30 	of protected health information; and
586.1 	(6) the pharmacy from which the prescription drug order will be dispensed has relevant 
586.2 	and appropriate policies and procedures in place and makes them available to the board 
586.3 	upon request.

586.4 	Sec. 39. Minnesota Statutes 2016, section 151.15, is amended by adding a subdivision to 
586.5 	read:
586.6 		Subd. 6.Processing of emergency prescription orders. A pharmacist, when that 
586.7 	pharmacist is not present within a licensed pharmacy, may access a pharmacy prescription 
586.8 	processing system through secure and encrypted electronic means in order to process an 
586.9 	emergency prescription accepted pursuant to subdivision 5 only if:
586.10 	(1) the pharmacy from which the prescription drug order will be dispensed is closed for 
586.11 	business;
586.12 	(2) the pharmacist has been designated to be on call for the licensed pharmacy that will 
586.13 	fill the prescription drug order;
586.14 	(3) the prescription drug order is for a patient of a long-term care facility or a county 
586.15 	correctional facility;
586.16 	(4) the prescription drug order is processed pursuant to this chapter and rules adopted 
586.17 	under this chapter; and
586.18 	(5) the pharmacy from which the prescription drug order will be dispensed has relevant 
586.19 	and appropriate policies and procedures in place and makes them available to the board 
586.20 	upon request.

586.21 	Sec. 40. Minnesota Statutes 2016, section 151.19, subdivision 1, is amended to read:
586.22 		Subdivision 1.Pharmacy licensure requirements. (a) No person shall operate a 
586.23 	pharmacy without first obtaining a license from the board and paying any applicable fee 
586.24 	specified in section 151.065. The license shall be displayed in a conspicuous place in the 
586.25 	pharmacy for which it is issued and expires on June 30 following the date of issue. It is 
586.26 	unlawful for any person to operate a pharmacy unless the license has been issued to the 
586.27 	person by the board.
586.28 	(b) Application for a pharmacy license under this section shall be made in a manner 
586.29 	specified by the board.
586.30 	(c) No license shall be issued or renewed for a pharmacy located within the state unless 
586.31 	the applicant agrees to operate the pharmacy in a manner prescribed by federal and state 
587.1 	law and according to rules adopted by the board. No license shall be issued for a pharmacy 
587.2 	located outside of the state unless the applicant agrees to operate the pharmacy in a manner 
587.3 	prescribed by federal law and, when dispensing medications for residents of this state, the 
587.4 	laws of this state, and Minnesota Rules.
587.5 	(d) No license shall be issued or renewed for a pharmacy that is required to be licensed 
587.6 	or registered by the state in which it is physically located unless the applicant supplies the 
587.7 	board with proof of such licensure or registration.
587.8 	(e) The board shall require a separate license for each pharmacy located within the state 
587.9 	and for each pharmacy located outside of the state at which any portion of the dispensing 
587.10 	process occurs for drugs dispensed to residents of this state.
587.11 	(f) The board shall not issue an initial or renewed license for a pharmacy unless the 
587.12 	pharmacy passes an inspection conducted by an authorized representative of the board. In 
587.13 	the case of a pharmacy located outside of the state, the board may require the applicant to 
587.14 	pay the cost of the inspection, in addition to the license fee in section 151.065, unless the 
587.15 	applicant furnishes the board with a report, issued by the appropriate regulatory agency of 
587.16 	the state in which the facility is located, of an inspection that has occurred within the 24 
587.17 	months immediately preceding receipt of the license application by the board. The board 
587.18 	may deny licensure unless the applicant submits documentation satisfactory to the board 
587.19 	that any deficiencies noted in an inspection report have been corrected.
587.20 	(g) The board shall not issue an initial or renewed license for a pharmacy located outside 
587.21 	of the state unless the applicant discloses and certifies:
587.22 	(1) the location, names, and titles of all principal corporate officers and all pharmacists 
587.23 	who are involved in dispensing drugs to residents of this state;
587.24 	(2) that it maintains its records of drugs dispensed to residents of this state so that the 
587.25 	records are readily retrievable from the records of other drugs dispensed;
587.26 	(3) that it agrees to cooperate with, and provide information to, the board concerning 
587.27 	matters related to dispensing drugs to residents of this state;
587.28 	(4) that, during its regular hours of operation, but no less than six days per week, for a 
587.29 	minimum of 40 hours per week, a toll-free telephone service is provided to facilitate 
587.30 	communication between patients in this state and a pharmacist at the pharmacy who has 
587.31 	access to the patients' records; the toll-free number must be disclosed on the label affixed 
587.32 	to each container of drugs dispensed to residents of this state; and
588.1 	(5) that, upon request of a resident of a long-term care facility located in this state, the 
588.2 	resident's authorized representative, or a contract pharmacy or licensed health care facility 
588.3 	acting on behalf of the resident, the pharmacy will dispense medications prescribed for the 
588.4 	resident in unit-dose packaging or, alternatively, comply with section 151.415, subdivision 
588.5 	5.
588.6 	(h) This subdivision does not apply to a manufacturer licensed under section 151.252, 
588.7 	subdivision 1, a wholesale drug distributor licensed under section 151.47, or a third-party 
588.8 	logistics provider, to the extent the manufacturer, wholesale drug distributor, or third-party 
588.9 	logistics provider is engaged in the distribution of dialysate or devices necessary to perform 
588.10 	home peritoneal dialysis on patients with end-stage renal disease, if:
588.11 	(1) the manufacturer or its agent leases or owns the licensed manufacturing or wholesaling 
588.12 	facility from which the dialysate or devices will be delivered;
588.13 	(2) the dialysate is comprised of dextrose or icodextrin and has been approved by the 
588.14 	United States Food and Drug Administration;
588.15 	(3) the dialysate is stored and delivered in its original, sealed, and unopened 
588.16 	manufacturer's packaging;
588.17 	(4) the dialysate or devices are delivered only upon:
588.18 	(i) receipt of a physician's order by a Minnesota licensed pharmacy; and
588.19 	(ii) the review and processing of the prescription by a pharmacist licensed by the state 
588.20 	in which the pharmacy is located, who is employed by or under contract to the pharmacy;
588.21 	(5) prescriptions, policies, procedures, and records of delivery are maintained by the 
588.22 	manufacturer for a minimum of three years and are made available to the board upon request; 
588.23 	and
588.24 	(6) the manufacturer or the manufacturer's agent delivers the dialysate or devices directly 
588.25 	to:
588.26 	(i) a patient with end-stage renal disease for whom the prescription was written or the 
588.27 	patient's designee, for the patient's self-administration of the dialysis therapy; or
588.28 	(ii) a health care provider or institution, for administration or delivery of the dialysis 
588.29 	therapy to a patient with end-stage renal disease for whom the prescription was written.

588.30 	Sec. 41. Minnesota Statutes 2016, section 151.46, is amended to read:
588.31 	151.46 PROHIBITED DRUG PURCHASES OR RECEIPT.
589.1 	It is unlawful for any person to knowingly purchase or receive a prescription drug from 
589.2 	a source other than a person or entity licensed under the laws of the state, except where 
589.3 	otherwise provided. Licensed wholesale drug distributors other than pharmacies shall not 
589.4 	dispense or distribute prescription drugs directly to patients except for licensed facilities 
589.5 	that dispense or distribute home peritoneal dialysis products directly to patients pursuant 
589.6 	to section 151.19, subdivision 1, paragraph (h). A person violating the provisions of this 
589.7 	section is guilty of a misdemeanor.

589.8 	Sec. 42. Minnesota Statutes 2016, section 214.075, subdivision 1, is amended to read:
589.9 		Subdivision 1.Applications. (a) By January 1, 2018, Each health-related licensing 
589.10 	board, as defined in section 214.01, subdivision 2, shall require applicants for initial licensure, 
589.11 	licensure by endorsement, or reinstatement or other relicensure after a lapse in licensure, 
589.12 	as defined by the individual health-related licensing boards, the following individuals to 
589.13 	submit to a criminal history records check of state data completed by the Bureau of Criminal 
589.14 	Apprehension (BCA) and a national criminal history records check, including a search of 
589.15 	the records of the Federal Bureau of Investigation (FBI).:
589.16 	(1) applicants for initial licensure or licensure by endorsement. An applicant is exempt 
589.17 	from this paragraph if the applicant submitted to a state and national criminal history records 
589.18 	check as described in this paragraph for a license issued by the same board;
589.19 	(2) applicants seeking reinstatement or relicensure, as defined by the individual 
589.20 	health-related licensing board, if more than one year has elapsed since the applicant's license 
589.21 	or registration expiration date; or
589.22 	(3) licensees applying for eligibility to participate in an interstate licensure compact.
589.23 	(b) An applicant must complete a criminal background check if more than one year has 
589.24 	elapsed since the applicant last submitted a background check to the board. An applicant's 
589.25 	criminal background check results are valid for one year from the date the background check 
589.26 	results were received by the board. If more than one year has elapsed since the results were 
589.27 	received by the board, then an applicant who has not completed the licensure, reinstatement, 
589.28 	or relicensure process must complete a new background check.

589.29 	Sec. 43. Minnesota Statutes 2016, section 214.075, subdivision 4, is amended to read:
589.30 		Subd. 4.Refusal to consent. (a) The health-related licensing boards shall not issue a 
589.31 	license to any applicant who refuses to consent to a criminal background check or fails to 
589.32 	submit fingerprints within 90 days after submission of an application for licensure. Any 
590.1 	fees paid by the applicant to the board shall be forfeited if the applicant refuses to consent 
590.2 	to the criminal background check or fails to submit the required fingerprints.
590.3 	(b) The failure of a licensee to submit to a criminal background check as provided in 
590.4 	subdivision 3 is grounds for disciplinary action by the respective health-related licensing 
590.5 	board.

590.6 	Sec. 44. Minnesota Statutes 2016, section 214.075, subdivision 5, is amended to read:
590.7 		Subd. 5.Submission of fingerprints to the Bureau of Criminal Apprehension. The 
590.8 	health-related licensing board or designee shall submit applicant or licensee fingerprints to 
590.9 	the BCA. The BCA shall perform a check for state criminal justice information and shall 
590.10 	forward the applicant's or licensee's fingerprints to the FBI to perform a check for national 
590.11 	criminal justice information regarding the applicant or licensee. The BCA shall report to 
590.12 	the board the results of the state and national criminal justice information history records
590.13 	checks.

590.14 	Sec. 45. Minnesota Statutes 2016, section 214.075, subdivision 6, is amended to read:
590.15 		Subd. 6.Alternatives to fingerprint-based criminal background checks. The 
590.16 	health-related licensing board may require an alternative method of criminal history checks 
590.17 	for an applicant or licensee who has submitted at least three two sets of fingerprints in 
590.18 	accordance with this section that have been unreadable by the BCA or the FBI.

590.19 	Sec. 46. Minnesota Statutes 2016, section 214.077, is amended to read:
590.20 	214.077 TEMPORARY LICENSE SUSPENSION; IMMINENT RISK OF SERIOUS 
590.21 	HARM.
590.22 	(a) Notwithstanding any provision of a health-related professional practice act, when a 
590.23 	health-related licensing board receives a complaint regarding a regulated person and has 
590.24 	probable cause to believe that the regulated person has violated a statute or rule that the 
590.25 	health-related licensing board is empowered to enforce, and continued practice by the 
590.26 	regulated person presents an imminent risk of serious harm, the health-related licensing 
590.27 	board shall issue an order temporarily suspending the regulated person's authority to practice. 
590.28 	The temporary suspension order shall specify the reason for the suspension, including the 
590.29 	statute or rule alleged to have been violated. The temporary suspension order shall take 
590.30 	effect upon personal service on the regulated person or the regulated person's attorney, or 
590.31 	upon the third calendar day after the order is served by first class mail to the most recent 
591.1 	address provided to the health-related licensing board for the regulated person or the regulated 
591.2 	person's attorney.
591.3 	(b) The temporary suspension shall remain in effect until the health-related licensing 
591.4 	board or the commissioner completes an investigation, holds a contested case hearing 
591.5 	pursuant to the Administrative Procedure Act, and issues a final order in the matter as 
591.6 	provided for in this section.
591.7 	(c) At the time it issues the temporary suspension order, the health-related licensing 
591.8 	board shall schedule a contested case hearing, on the merits of whether discipline is 
591.9 	warranted, to be held pursuant to the Administrative Procedure Act. The regulated person 
591.10 	shall be provided with at least ten days' notice of any contested case hearing held pursuant 
591.11 	to this section. The contested case hearing shall be scheduled to begin no later than 30 days 
591.12 	after the effective service of the temporary suspension order.
591.13 	(d) The administrative law judge presiding over the contested case hearing shall issue 
591.14 	a report and recommendation to the health-related licensing board no later than 30 days 
591.15 	after the final day of the contested case hearing. If the administrative law judge's report and 
591.16 	recommendations are for no action, the health-related licensing board shall issue a final 
591.17 	order pursuant to sections 14.61 and 14.62 within 30 days of receipt of the administrative 
591.18 	law judge's report and recommendations. If the administrative law judge's report and 
591.19 	recommendations are for action, the health-related licensing board shall issue a final order 
591.20 	pursuant to sections 14.61 and 14.62 within 60 days of receipt of the administrative law 
591.21 	judge's report and recommendations. Except as provided in paragraph (e), if the health-related 
591.22 	licensing board has not issued a final order pursuant to sections 14.61 and 14.62 within 30 
591.23 	days of receipt of the administrative law judge's report and recommendations for no action 
591.24 	or within 60 days of receipt of the administrative law judge's report and recommendations 
591.25 	for action, the temporary suspension shall be lifted.
591.26 	(e) If the regulated person requests a delay in the contested case proceedings provided 
591.27 	for in paragraphs (c) and (d) for any reason, the temporary suspension shall remain in effect 
591.28 	until the health-related licensing board issues a final order pursuant to sections 14.61 and 
591.29 	14.62.
591.30 	(f) This section shall not apply to the Office of Unlicensed Complementary and 
591.31 	Alternative Health Practice established under section 146A.02. The commissioner of health 
591.32 	shall conduct temporary suspensions for complementary and alternative health care 
591.33 	practitioners in accordance with section 146A.09.

592.1 	Sec. 47. Minnesota Statutes 2016, section 214.10, subdivision 8, is amended to read:
592.2 		Subd. 8.Special requirements for health-related licensing boards. In addition to the 
592.3 	provisions of this section that apply to all examining and licensing boards, the requirements 
592.4 	in this subdivision apply to all health-related licensing boards, except the Board of Veterinary 
592.5 	Medicine.
592.6 	(a) If the executive director or consulted board member determines that a communication 
592.7 	received alleges a violation of statute or rule that involves sexual contact with a patient or 
592.8 	client, the communication shall be forwarded to the designee of the attorney general for an 
592.9 	investigation of the facts alleged in the communication. If, after an investigation it is the 
592.10 	opinion of the executive director or consulted board member that there is sufficient evidence 
592.11 	to justify disciplinary action, the board shall conduct a disciplinary conference or hearing. 
592.12 	If, after a hearing or disciplinary conference the board determines that misconduct involving 
592.13 	sexual contact with a patient or client occurred, the board shall take disciplinary action. 
592.14 	Notwithstanding subdivision 2, a board may not attempt to correct improper activities or 
592.15 	redress grievances through education, conciliation, and persuasion, unless in the opinion of 
592.16 	the executive director or consulted board member there is insufficient evidence to justify 
592.17 	disciplinary action. The board may settle a case by stipulation prior to, or during, a hearing 
592.18 	if the stipulation provides for disciplinary action.
592.19 	(b) A board member who has a direct current or former financial connection or 
592.20 	professional relationship to a person who is the subject of board disciplinary activities must 
592.21 	not participate in board activities relating to that case.
592.22 	(c) Each health-related licensing board shall establish procedures for exchanging 
592.23 	information with other Minnesota state boards, agencies, and departments responsible for 
592.24 	regulating health-related occupations, facilities, and programs, and for coordinating 
592.25 	investigations involving matters within the jurisdiction of more than one regulatory body. 
592.26 	The procedures must provide for the forwarding to other regulatory bodies of all information 
592.27 	and evidence, including the results of investigations, that are relevant to matters within that 
592.28 	licensing body's regulatory jurisdiction. Each health-related licensing board shall have access 
592.29 	to any data of the Department of Human Services relating to a person subject to the 
592.30 	jurisdiction of the licensing board. The data shall have the same classification under chapter 
592.31 	13, the Minnesota Government Data Practices Act, in the hands of the agency receiving the 
592.32 	data as it had in the hands of the Department of Human Services.
592.33 	(d) Each health-related licensing board shall establish procedures for exchanging 
592.34 	information with other states regarding disciplinary actions against licensees. The procedures 
593.1 	must provide for the collection of information from other states about disciplinary actions 
593.2 	taken against persons who are licensed to practice in Minnesota or who have applied to be 
593.3 	licensed in this state and the dissemination of information to other states regarding 
593.4 	disciplinary actions taken in Minnesota. In addition to any authority in chapter 13 permitting 
593.5 	the dissemination of data, the board may, in its discretion, disseminate data to other states 
593.6 	regardless of its classification under chapter 13. Criminal history record information shall 
593.7 	not be exchanged. Before transferring any data that is not public, the board shall obtain 
593.8 	reasonable assurances from the receiving state that the data will not be made public.

593.9 	Sec. 48. Minnesota Statutes 2016, section 214.12, is amended by adding a subdivision to 
593.10 	read:
593.11 		Subd. 6.Opioid and controlled substances prescribing. (a) The Board of Medical 
593.12 	Practice, the Board of Nursing, the Board of Dentistry, the Board of Optometry, and the 
593.13 	Board of Podiatric Medicine shall require that licensees with the authority to prescribe 
593.14 	controlled substances obtain at least two hours of continuing education credit on best practices 
593.15 	in prescribing opioids and controlled substances, as part of the continuing education 
593.16 	requirements for licensure renewal. Licensees shall not be required to complete more than 
593.17 	two credit hours of continuing education on best practices in prescribing opioids and 
593.18 	controlled substances before this subdivision expires. Continuing education credit on best 
593.19 	practices in prescribing opioids and controlled substances must meet board requirements.
593.20 	(b) This subdivision expires January 1, 2023.

593.21 	EFFECTIVE DATE. This section is effective January 1, 2019.

593.22 	Sec. 49. Minnesota Statutes 2017 Supplement, section 364.09, is amended to read:
593.23 	364.09 EXCEPTIONS.
593.24 	(a) This chapter does not apply to the licensing process for peace officers; to law 
593.25 	enforcement agencies as defined in section 626.84, subdivision 1, paragraph (f); to fire 
593.26 	protection agencies; to eligibility for a private detective or protective agent license; to the 
593.27 	licensing and background study process under chapters 245A and 245C; to the licensing 
593.28 	and background investigation process under chapter 240; to eligibility for school bus driver 
593.29 	endorsements; to eligibility for special transportation service endorsements; to eligibility 
593.30 	for a commercial driver training instructor license, which is governed by section 171.35 
593.31 	and rules adopted under that section; to emergency medical services personnel, or to the 
593.32 	licensing by political subdivisions of taxicab drivers, if the applicant for the license has 
594.1 	been discharged from sentence for a conviction within the ten years immediately preceding 
594.2 	application of a violation of any of the following:
594.3 	(1) sections 609.185 to 609.2114, 609.221 to 609.223, 609.342 to 609.3451, or 617.23, 
594.4 	subdivision 2 or 3; or Minnesota Statutes 2012, section 609.21;
594.5 	(2) any provision of chapter 152 that is punishable by a maximum sentence of 15 years 
594.6 	or more; or
594.7 	(3) a violation of chapter 169 or 169A involving driving under the influence, leaving 
594.8 	the scene of an accident, or reckless or careless driving.
594.9 	This chapter also shall not apply to eligibility for juvenile corrections employment, where 
594.10 	the offense involved child physical or sexual abuse or criminal sexual conduct.
594.11 	(b) This chapter does not apply to a school district or to eligibility for a license issued 
594.12 	or renewed by the Professional Educator Licensing and Standards Board or the commissioner 
594.13 	of education.
594.14 	(c) Nothing in this section precludes the Minnesota Police and Peace Officers Training 
594.15 	Board or the state fire marshal from recommending policies set forth in this chapter to the 
594.16 	attorney general for adoption in the attorney general's discretion to apply to law enforcement 
594.17 	or fire protection agencies.
594.18 	(d) This chapter does not apply to a license to practice medicine that has been denied or 
594.19 	revoked by the Board of Medical Practice pursuant to section 147.091, subdivision 1a.
594.20 	(e) This chapter does not apply to any person who has been denied a license to practice 
594.21 	chiropractic or whose license to practice chiropractic has been revoked by the board in 
594.22 	accordance with section 148.10, subdivision 7.
594.23 	(f) This chapter does not apply to any license, registration, or permit that has been denied 
594.24 	or revoked by the Board of Nursing in accordance with section 148.261, subdivision 1a.
594.25 	(g) (d) This chapter does not apply to any license, registration, permit, or certificate that 
594.26 	has been denied or revoked by the commissioner of health according to section 148.5195, 
594.27 	subdivision 5; or 153A.15, subdivision 2.
594.28 	(h) (e) This chapter does not supersede a requirement under law to conduct a criminal 
594.29 	history background investigation or consider criminal history records in hiring for particular 
594.30 	types of employment.
595.1 	(f) This chapter does not apply to the licensing or registration process for, or to any 
595.2 	license, registration, or permit that has been denied or revoked by, a health-related licensing 
595.3 	board listed in section 214.01, subdivision 2.

595.4 	Sec. 50. GUIDELINES AUTHORIZING PATIENT-ASSISTED MEDICATION 
595.5 	ADMINISTRATION.
 595.6 	(a) Within the limits of the board's available appropriation, the Emergency Medical 
595.7 	Services Regulatory Board shall propose guidelines authorizing EMTs, AEMTs, and 
595.8 	paramedics certified under Minnesota Statutes, section 144E.28, to assist a patient in 
595.9 	emergency situations with administering prescription medications that are:
595.10 	(1) carried by a patient;
595.11 	(2) intended to treat adrenal insufficiency or other rare conditions that require emergency 
595.12 	treatment with a previously prescribed medication;
595.13 	(3) intended to treat a specific life-threatening condition; and
595.14 	(4) administered via routes of delivery that are within the scope of training of the EMT, 
595.15 	AEMT, or paramedic.
595.16 	(b) The proposed guidelines shall include language that requires the ambulance service 
595.17 	to be available to patients or their caregivers who have medical conditions identified in 
595.18 	paragraph (a) to define the patient's needs and, when appropriate, develop specific care 
595.19 	plans and provide education or other resources at the discretion of the ambulance service 
595.20 	medical director.
595.21 	(c) The Emergency Medical Services Regulatory Board shall submit the proposed 
595.22 	guidelines and draft legislation as necessary to the chairs and ranking minority members of 
595.23 	the legislative committees with jurisdiction over health care by January 1, 2019.

595.24 	Sec. 51.  REPEALER.
 595.25 	(a) Minnesota Statutes 2016, section 214.075, subdivision 8, is repealed.
595.26 	(b) Minnesota Rules, part 5600.0605, subparts 5 and 8, are repealed.

595.27 	ARTICLE 38
595.28 	OPIOIDS AND PRESCRIPTION DRUGS

595.29 	Section 1. Minnesota Statutes 2017 Supplement, section 152.105, subdivision 2, is amended 
595.30 	to read:
596.1 		Subd. 2.Sheriff to maintain collection receptacle or medicine disposal program.  (a) 
596.2 	The sheriff of each county shall maintain or contract for the maintenance of at least one 
596.3 	collection receptacle or implement a medicine disposal program for the disposal of 
596.4 	noncontrolled substances, pharmaceutical controlled substances, and other legend drugs, 
596.5 	as permitted by federal law. For purposes of this section, "legend drug" has the meaning 
596.6 	given in section 151.01, subdivision 17. The collection receptacle and medicine disposal 
596.7 	program must comply with federal law. In maintaining and operating the collection receptacle
596.8 	or medicine disposal program, the sheriff shall follow all applicable provisions of Code of 
596.9 	Federal Regulations, title 21, parts 1300, 1301, 1304, 1305, 1307, and 1317, as amended 
596.10 	through May 1, 2017.
596.11 	(b) For purposes of this subdivision:
596.12 	(1) a medicine disposal program means providing to the public educational information, 
596.13 	and making materials available for safely destroying unwanted legend drugs, including, but 
596.14 	not limited to, drug destruction bags or drops; and
596.15 	(2) a collection receptacle means the operation and maintenance of at least one drop-off 
596.16 	receptacle.

596.17 	Sec. 2. Minnesota Statutes 2016, section 152.11, subdivision 2, is amended to read:
596.18 		Subd. 2. Prescription requirements for Schedule III or IV controlled substances.
 596.19 	No person may dispense a controlled substance included in Schedule III or IV of section 
596.20 	152.02 without a prescription issued, as permitted under subdivision 1, by a doctor of 
596.21 	medicine, a doctor of osteopathic medicine licensed to practice medicine, a doctor of dental 
596.22 	surgery, a doctor of dental medicine, a doctor of podiatry, a doctor of optometry limited to 
596.23 	Schedule IV, or a doctor of veterinary medicine, lawfully licensed to prescribe in this state 
596.24 	or from a practitioner licensed to prescribe controlled substances by the state in which the 
596.25 	prescription is issued, and having a current federal drug enforcement administration 
596.26 	registration number. Such prescription may not be dispensed or refilled except with the 
596.27 	documented consent of the prescriber, and in no event more than six months after the date 
596.28 	on which such prescription was issued, unless a shorter period of time is specified in 
596.29 	subdivision 5, and no such prescription may be refilled more than five times.

596.30 	Sec. 3. Minnesota Statutes 2016, section 152.11, is amended by adding a subdivision to 
596.31 	read:
596.32 		Subd. 5.Limitations on the dispensing of opioid prescription drug orders. (a) No 
596.33 	prescription drug order for an opioid drug listed in Schedule II may be dispensed by a 
597.1 	pharmacist or other dispenser more than 30 days after the date on which the prescription 
597.2 	drug order was issued.
597.3 	(b) No prescription drug order for an opioid drug listed in Schedules III through V may 
597.4 	be initially dispensed by a pharmacist or other dispenser more than 30 days after the date 
597.5 	on which the prescription drug order was issued. No prescription drug order for an opioid 
597.6 	drug listed in Schedules III through V may be refilled by a pharmacist or other dispenser 
597.7 	more than 45 days after the previous date on which it was dispensed.
597.8 	(c) For purposes of this section, "dispenser" has the meaning given in section 152.126, 
597.9 	subdivision 1.

597.10 	Sec. 4. Minnesota Statutes 2016, section 152.126, subdivision 2, is amended to read:
597.11 		Subd. 2.Prescription electronic reporting system. (a) The board shall establish by 
597.12 	January 1, 2010, an electronic system for reporting the information required under subdivision 
597.13 	4 for all controlled substances dispensed within the state.
597.14 	(b) The board may contract with a vendor for the purpose of obtaining technical assistance 
597.15 	in the design, implementation, operation, and maintenance of the electronic reporting system.
597.16 	(c) Before entering into a new contract or before renegotiating a current contract with 
597.17 	a private vendor for the operation of the prescription monitoring program, the Board of 
597.18 	Pharmacy must: (1) ensure that the vendor complies with the National Institute Standards 
597.19 	and Technology standards for interoperability, security, and ongoing support; and (2) provide 
597.20 	at least 30 days' notice to the Legislative Advisory Commission. The board may enter into 
597.21 	a new contract or renegotiate a current contract only if the Legislative Advisory Commission 
597.22 	provides a positive recommendation or no recommendation, and shall not enter into a new 
597.23 	contract or renegotiate a current contract if the Legislative Advisory Commission provides 
597.24 	a negative recommendation.

597.25 	Sec. 5. Minnesota Statutes 2016, section 152.126, subdivision 6, is amended to read:
597.26 		Subd. 6.Access to reporting system data. (a) Except as indicated in this subdivision, 
597.27 	the data submitted to the board under subdivision 4 is private data on individuals as defined 
597.28 	in section 13.02, subdivision 12, and not subject to public disclosure.
597.29 	(b) Except as specified in subdivision 5, the following persons shall be considered 
597.30 	permissible users and may access the data submitted under subdivision 4 in the same or 
597.31 	similar manner, and for the same or similar purposes, as those persons who are authorized 
597.32 	to access similar private data on individuals under federal and state law:
598.1 	(1) a prescriber or an agent or employee of the prescriber to whom the prescriber has 
598.2 	delegated the task of accessing the data, to the extent the information relates specifically to 
598.3 	a current patient, to whom the prescriber is:
598.4 	(i) prescribing or considering prescribing any controlled substance;
598.5 	(ii) providing emergency medical treatment for which access to the data may be necessary;
598.6 	(iii) providing care, and the prescriber has reason to believe, based on clinically valid 
598.7 	indications, that the patient is potentially abusing a controlled substance; or
598.8 	(iv) providing other medical treatment for which access to the data may be necessary 
598.9 	for a clinically valid purpose and the patient has consented to access to the submitted data, 
598.10 	and with the provision that the prescriber remains responsible for the use or misuse of data 
598.11 	accessed by a delegated agent or employee;
598.12 	(2) a dispenser or an agent or employee of the dispenser to whom the dispenser has 
598.13 	delegated the task of accessing the data, to the extent the information relates specifically to 
598.14 	a current patient to whom that dispenser is dispensing or considering dispensing any 
598.15 	controlled substance and with the provision that the dispenser remains responsible for the 
598.16 	use or misuse of data accessed by a delegated agent or employee;
598.17 	(3) a licensed pharmacist who is providing pharmaceutical care for which access to the 
598.18 	data may be necessary to the extent that the information relates specifically to a current 
598.19 	patient for whom the pharmacist is providing pharmaceutical care: (i) if the patient has 
598.20 	consented to access to the submitted data; or (ii) if the pharmacist is consulted by a prescriber 
598.21 	who is requesting data in accordance with clause (1);
598.22 	(4) an individual who is the recipient of a controlled substance prescription for which 
598.23 	data was submitted under subdivision 4, or a guardian of the individual, parent or guardian 
598.24 	of a minor, or health care agent of the individual acting under a health care directive under 
598.25 	chapter 145C. For purposes of this clause, access by individuals includes persons in the 
598.26 	definition of an individual under section 13.02;
598.27 	(5) personnel or designees of a health-related licensing board listed in section 214.01, 
598.28 	subdivision 2, or of the Emergency Medical Services Regulatory Board, assigned to conduct 
598.29 	a bona fide investigation of a complaint received by that board that alleges that a specific 
598.30 	licensee is impaired by use of a drug for which data is collected under subdivision 4, has 
598.31 	engaged in activity that would constitute a crime as defined in section 152.025, or has 
598.32 	engaged in the behavior specified in subdivision 5, paragraph (a);
599.1 	(6) personnel of the board engaged in the collection, review, and analysis of controlled 
599.2 	substance prescription information as part of the assigned duties and responsibilities under 
599.3 	this section;
599.4 	(7) authorized personnel of a vendor under contract with the state of Minnesota who are 
599.5 	engaged in the design, implementation, operation, and maintenance of the prescription 
599.6 	monitoring program as part of the assigned duties and responsibilities of their employment, 
599.7 	provided that access to data is limited to the minimum amount necessary to carry out such 
599.8 	duties and responsibilities, and subject to the requirement of de-identification and time limit 
599.9 	on retention of data specified in subdivision 5, paragraphs (d) and (e);
599.10 	(8) federal, state, and local law enforcement authorities acting pursuant to a valid search 
599.11 	warrant;
599.12 	(9) personnel of the Minnesota health care programs assigned to use the data collected 
599.13 	under this section to identify and manage recipients whose usage of controlled substances 
599.14 	may warrant restriction to a single primary care provider, a single outpatient pharmacy, and 
599.15 	a single hospital;
599.16 	(10) personnel of the Department of Human Services assigned to access the data pursuant 
599.17 	to paragraph (i);
599.18 	(11) personnel of the health professionals services program established under section 
599.19 	214.31, to the extent that the information relates specifically to an individual who is currently 
599.20 	enrolled in and being monitored by the program, and the individual consents to access to 
599.21 	that information. The health professionals services program personnel shall not provide this 
599.22 	data to a health-related licensing board or the Emergency Medical Services Regulatory 
599.23 	Board, except as permitted under section 214.33, subdivision 3.; and
599.24 	For purposes of clause (4), access by an individual includes persons in the definition of 
599.25 	an individual under section 13.02; and
599.26 	(12) personnel or designees of a health-related licensing board listed in section 214.01, 
599.27 	subdivision 2, assigned to conduct a bona fide investigation of a complaint received by that 
599.28 	board that alleges that a specific licensee is inappropriately prescribing controlled substances 
599.29 	as defined in this section.
599.30 	(c) By July 1, 2017, every prescriber licensed by a health-related licensing board listed 
599.31 	in section 214.01, subdivision 2, practicing within this state who is authorized to prescribe 
599.32 	controlled substances for humans and who holds a current registration issued by the federal 
599.33 	Drug Enforcement Administration, and every pharmacist licensed by the board and practicing 
600.1 	within the state, shall register and maintain a user account with the prescription monitoring 
600.2 	program. Data submitted by a prescriber, pharmacist, or their delegate during the registration 
600.3 	application process, other than their name, license number, and license type, is classified 
600.4 	as private pursuant to section 13.02, subdivision 12.
600.5 	(d) Notwithstanding paragraph (b), beginning January 1, 2020, a prescriber who is 
600.6 	practicing in an emergency department, urgent care clinic, or a walk-in health clinic offering 
600.7 	health care services, or an agent or employee of the prescriber to whom the prescriber has 
600.8 	delegated the task of accessing the data, must access the data submitted under subdivision 
600.9 	4 to the extent the information relates specifically to the patient before the prescriber issues 
600.10 	a prescription order to the patient for a Schedule II through IV opiate controlled substance.
600.11 	(e) Paragraph (d) does not apply if:
600.12 	(1) due to a medical emergency, it is not possible for the prescriber to review the data 
600.13 	before the prescriber issues the prescription order for the patient; or
600.14 	(2) the prescriber is unable to access the data due to operational or other technological 
600.15 	failure of the program so long as the prescriber reports the failure to the board.
600.16 	(f) Only permissible users identified in paragraph (b), clauses (1), (2), (3), (6), (7), (9), 
600.17 	and (10), may directly access the data electronically. No other permissible users may directly 
600.18 	access the data electronically. If the data is directly accessed electronically, the permissible 
600.19 	user shall implement and maintain a comprehensive information security program that 
600.20 	contains administrative, technical, and physical safeguards that are appropriate to the user's 
600.21 	size and complexity, and the sensitivity of the personal information obtained. The permissible 
600.22 	user shall identify reasonably foreseeable internal and external risks to the security, 
600.23 	confidentiality, and integrity of personal information that could result in the unauthorized 
600.24 	disclosure, misuse, or other compromise of the information and assess the sufficiency of 
600.25 	any safeguards in place to control the risks.
600.26 	(e) (g) The board shall not release data submitted under subdivision 4 unless it is provided 
600.27 	with evidence, satisfactory to the board, that the person requesting the information is entitled 
600.28 	to receive the data.
600.29 	(f) (h) The board shall maintain a log of all persons who access the data for a period of 
600.30 	at least three years and shall ensure that any permissible user complies with paragraph (c) 
600.31 	prior to attaining direct access to the data.
601.1 	(g) (i) Section 13.05, subdivision 6, shall apply to any contract the board enters into 
601.2 	pursuant to subdivision 2. A vendor shall not use data collected under this section for any 
601.3 	purpose not specified in this section.
601.4 	(h) (j) The board may participate in an interstate prescription monitoring program data 
601.5 	exchange system provided that permissible users in other states have access to the data only 
601.6 	as allowed under this section, and that section 13.05, subdivision 6, applies to any contract 
601.7 	or memorandum of understanding that the board enters into under this paragraph.
601.8 	(i) (k) With available appropriations, the commissioner of human services shall establish 
601.9 	and implement a system through which the Department of Human Services shall routinely 
601.10 	access the data for the purpose of determining whether any client enrolled in an opioid 
601.11 	treatment program licensed according to chapter 245A has been prescribed or dispensed a 
601.12 	controlled substance in addition to that administered or dispensed by the opioid treatment 
601.13 	program. When the commissioner determines there have been multiple prescribers or multiple 
601.14 	prescriptions of controlled substances, the commissioner shall:
601.15 	(1) inform the medical director of the opioid treatment program only that the 
601.16 	commissioner determined the existence of multiple prescribers or multiple prescriptions of 
601.17 	controlled substances; and
601.18 	(2) direct the medical director of the opioid treatment program to access the data directly, 
601.19 	review the effect of the multiple prescribers or multiple prescriptions, and document the 
601.20 	review.
601.21 	If determined necessary, the commissioner of human services shall seek a federal waiver 
601.22 	of, or exception to, any applicable provision of Code of Federal Regulations, title 42, section 
601.23 	2.34, paragraph (c), prior to implementing this paragraph.
601.24 	(j) (l) The board shall review the data submitted under subdivision 4 on at least a quarterly 
601.25 	basis and shall establish criteria, in consultation with the advisory task force, for referring 
601.26 	information about a patient to prescribers and dispensers who prescribed or dispensed the 
601.27 	prescriptions in question if the criteria are met. The board shall also submit an annual report 
601.28 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
601.29 	over health and human services policy and finance that provides information on the 
601.30 	prescribing trends for opiates, including the number of opiate prescriptions issued for the 
601.31 	previous calendar year.

602.1 	Sec. 6. Minnesota Statutes 2016, section 152.126, subdivision 10, is amended to read:
602.2 		Subd. 10.Funding. (a) The board may seek grants and private funds from nonprofit 
602.3 	charitable foundations, the federal government, and other sources to fund the enhancement 
602.4 	and ongoing operations of the prescription monitoring program established under this section. 
602.5 	Any funds received shall be appropriated to the board for this purpose. The board may not 
602.6 	expend funds to enhance the program in a way that conflicts with this section without seeking 
602.7 	approval from the legislature.
602.8 	(b) Notwithstanding any other section, the administrative services unit for the 
602.9 	health-related licensing boards shall apportion between the Board of Medical Practice, the 
602.10 	Board of Nursing, the Board of Dentistry, the Board of Podiatric Medicine, the Board of 
602.11 	Optometry, the Board of Veterinary Medicine, and the Board of Pharmacy an amount to be 
602.12 	paid through fees by each respective board. The amount apportioned to each board shall 
602.13 	equal each board's share of the annual appropriation to the Board of Pharmacy from the 
602.14 	state government special revenue fund for operating the prescription monitoring program 
602.15 	under this section. Each board's apportioned share shall be based on the number of prescribers 
602.16 	or dispensers that each board identified in this paragraph licenses as a percentage of the 
602.17 	total number of prescribers and dispensers licensed collectively by these boards. Each 
602.18 	respective board may adjust the fees that the boards are required to collect to compensate 
602.19 	for the amount apportioned to each board by the administrative services unit.
602.20 	(c) The board shall have the authority to modify its contract with its vendor as provided 
602.21 	in subdivision 2, to authorize that vendor to provide a service to prescribers and pharmacies 
602.22 	that allows them to access prescription monitoring program data from within the electronic 
602.23 	health record system or pharmacy software used by those prescribers and pharmacists. The 
602.24 	board must ensure that the integration of access shall not modify any requirements or 
602.25 	procedures in this section regarding the information that must be reported to the database, 
602.26 	who can access the database and for what purpose, and the data classification of information 
602.27 	in the database, and shall not require a prescriber to access the database prior to issuing a 
602.28 	prescription for a controlled substance, other than as required under subdivision 6, paragraph 
602.29 	(d). The board must also ensure that the vendor complies with the encryption of data 
602.30 	requirement and the time limit on data retention specified in subdivision 5. Beginning July 
602.31 	1, 2018, the board has the authority to collect an annual fee from each prescriber or 
602.32 	pharmacist who accesses prescription monitoring program data through the service offered 
602.33 	by the vendor. The annual fee collected must not exceed $50 per user. The fees collected 
602.34 	by the board under this paragraph shall be deposited in the state government special revenue 
602.35 	fund and are appropriated to the board for the purposes of this paragraph.

603.1 	Sec. 7. Minnesota Statutes 2017 Supplement, section 245G.05, subdivision 1, is amended 
603.2 	to read:
603.3 		Subdivision 1.Comprehensive assessment. (a) A comprehensive assessment of the 
603.4 	client's substance use disorder must be administered face-to-face by an alcohol and drug 
603.5 	counselor within three calendar days after service initiation for a residential program or 
603.6 	during the initial session for all other programs. A program may permit a licensed staff 
603.7 	person who is not qualified as an alcohol and drug counselor to interview the client in areas 
603.8 	of the comprehensive assessment that are otherwise within the competencies and scope of 
603.9 	practice of that licensed staff person and an alcohol and drug counselor does not need to be 
603.10 	face-to-face with the client during this interview. The alcohol and drug counselor must 
603.11 	review all of the information contained in a comprehensive assessment and, by signature, 
603.12 	confirm the information is accurate and complete and meets the requirements for the 
603.13 	comprehensive assessment. If the comprehensive assessment is not completed during the 
603.14 	initial session, the client-centered reason for the delay must be documented in the client's 
603.15 	file and the planned completion date. If the client received a comprehensive assessment that 
603.16 	authorized the treatment service, an alcohol and drug counselor must review the assessment 
603.17 	to determine compliance with this subdivision, including applicable timelines. If available, 
603.18 	the alcohol and drug counselor may use current information provided by a referring agency 
603.19 	or other source as a supplement. Information gathered more than 45 days before the date 
603.20 	of admission is not considered current. The comprehensive assessment must include sufficient 
603.21 	information to complete the assessment summary according to subdivision 2 and the 
603.22 	individual treatment plan according to section 245G.06. The comprehensive assessment 
603.23 	must include information about the client's needs that relate to substance use and personal 
603.24 	strengths that support recovery, including:
603.25 	(1) age, sex, cultural background, sexual orientation, living situation, economic status, 
603.26 	and level of education;
603.27 	(2) circumstances of service initiation;
603.28 	(3) previous attempts at treatment for substance misuse or substance use disorder, 
603.29 	compulsive gambling, or mental illness;
603.30 	(4) substance use history including amounts and types of substances used, frequency 
603.31 	and duration of use, periods of abstinence, and circumstances of relapse, if any. For each 
603.32 	substance used within the previous 30 days, the information must include the date of the 
603.33 	most recent use and previous withdrawal symptoms;
604.1 	(5) specific problem behaviors exhibited by the client when under the influence of 
604.2 	substances;
604.3 	(6) family status, family history, including history or presence of physical or sexual 
604.4 	abuse, level of family support, and substance misuse or substance use disorder of a family 
604.5 	member or significant other;
604.6 	(7) physical concerns or diagnoses, the severity of the concerns, and whether the concerns 
604.7 	are being addressed by a health care professional;
604.8 	(8) mental health history and psychiatric status, including symptoms, disability, current 
604.9 	treatment supports, and psychotropic medication needed to maintain stability; the assessment 
604.10 	must utilize screening tools approved by the commissioner pursuant to section 245.4863 to 
604.11 	identify whether the client screens positive for co-occurring disorders;
604.12 	(9) arrests and legal interventions related to substance use;
604.13 	(10) ability to function appropriately in work and educational settings;
604.14 	(11) ability to understand written treatment materials, including rules and the client's 
604.15 	rights;
604.16 	(12) risk-taking behavior, including behavior that puts the client at risk of exposure to 
604.17 	blood-borne or sexually transmitted diseases;
604.18 	(13) social network in relation to expected support for recovery and leisure time activities 
604.19 	that are associated with substance use;
604.20 	(14) whether the client is pregnant and, if so, the health of the unborn child and the 
604.21 	client's current involvement in prenatal care;
604.22 	(15) whether the client recognizes problems related to substance use and is willing to 
604.23 	follow treatment recommendations; and
604.24 	(16) collateral information. If the assessor gathered sufficient information from the 
604.25 	referral source or the client to apply the criteria in Minnesota Rules, parts 9530.6620 and 
604.26 	9530.6622, a collateral contact is not required.
604.27 	(b) If the client is identified as having opioid use disorder or seeking treatment for opioid 
604.28 	use disorder, the program must provide educational information to the client concerning:
604.29 	(1) risks for opioid use disorder and dependence;
604.30 	(2) treatment options, including the use of a medication for opioid use disorder;
604.31 	(3) the risk of and recognizing opioid overdose; and
605.1 	(4) the use, availability, and administration of naloxone to respond to opioid overdose.
605.2 	(c) The commissioner shall develop educational materials that are supported by research 
605.3 	and updated periodically. The license holder must use the educational materials that are 
605.4 	approved by the commissioner to comply with this requirement.
605.5 	(d) If the comprehensive assessment is completed to authorize treatment service for the 
605.6 	client, at the earliest opportunity during the assessment interview the assessor shall determine 
605.7 	if:
605.8 	(1) the client is in severe withdrawal and likely to be a danger to self or others;
605.9 	(2) the client has severe medical problems that require immediate attention; or
605.10 	(3) the client has severe emotional or behavioral symptoms that place the client or others 
605.11 	at risk of harm.
605.12 	If one or more of the conditions in clauses (1) to (3) are present, the assessor must end the 
605.13 	assessment interview and follow the procedures in the program's medical services plan 
605.14 	under section 245G.08, subdivision 2, to help the client obtain the appropriate services. The 
605.15 	assessment interview may resume when the condition is resolved.

605.16 	Sec. 8. Minnesota Statutes 2017 Supplement, section 254A.03, subdivision 3, is amended 
605.17 	to read:
605.18 		Subd. 3.Rules for substance use disorder care. (a) The commissioner of human 
605.19 	services shall establish by rule criteria to be used in determining the appropriate level of 
605.20 	chemical dependency care for each recipient of public assistance seeking treatment for 
605.21 	substance misuse or substance use disorder. Upon federal approval of a comprehensive 
605.22 	assessment as a Medicaid benefit, or on July 1, 2018, whichever is later, and notwithstanding 
605.23 	the criteria in Minnesota Rules, parts 9530.6600 to 9530.6655, an eligible vendor of 
605.24 	comprehensive assessments under section 254B.05 may determine and approve the 
605.25 	appropriate level of substance use disorder treatment for a recipient of public assistance. 
605.26 	The process for determining an individual's financial eligibility for the consolidated chemical 
605.27 	dependency treatment fund or determining an individual's enrollment in or eligibility for a 
605.28 	publicly subsidized health plan is not affected by the individual's choice to access a 
605.29 	comprehensive assessment for placement.
605.30 	(b) The commissioner shall develop and implement a utilization review process for 
605.31 	publicly funded treatment placements to monitor and review the clinical appropriateness 
605.32 	and timeliness of all publicly funded placements in treatment.
606.1 	(c) Notwithstanding section 254B.05, subdivision 5, paragraph (b), clause (2), an 
606.2 	individual employed by a county on July 1, 2018, who has been performing assessments 
606.3 	for the purpose of Minnesota Rules, part 9530.6615, is qualified to perform a comprehensive 
606.4 	assessment if the following conditions are met as of July 1, 2018:
606.5 	(1) the individual is exempt from licensure under section 148F.11, subdivision 1;
606.6 	(2) the individual is qualified as an assessor under Minnesota Rules, part 9530.6615, 
606.7 	subpart 2; and
606.8 	(3) the individual has three years employment as an assessor or is under the supervision 
606.9 	of an individual who meets the requirements of an alcohol and drug counselor supervisor 
606.10 	under section 245G.11, subdivision 4.
606.11 	Beginning July 1, 2020, an individual who is qualified to do a comprehensive assessment 
606.12 	under this paragraph must also demonstrate completion of the applicable coursework 
606.13 	requirements of section 245G.11, subdivision 5, paragraph (b).

606.14 	Sec. 9. Minnesota Statutes 2017 Supplement, section 254B.12, subdivision 3, is amended 
606.15 	to read:
606.16 		Subd. 3.Chemical dependency provider rate increase. For the chemical dependency 
606.17 	services listed in section 254B.05, subdivision 5, and provided on or after July 1, 2017 2018, 
606.18 	payment rates shall be increased by one 1.74 percent over the rates in effect on January 1, 
606.19 	2017 2018, for vendors who meet the requirements of section 254B.05.

606.20 	Sec. 10. [256.043] OPIATE EPIDEMIC RESPONSE ACCOUNT.
606.21 		Subdivision 1.Establishment. The opiate epidemic response account is established in 
606.22 	the special revenue fund in the state treasury.
606.23 		Subd. 2.Proposed grants. By February 15 of each year, beginning February 15, 2019, 
606.24 	the commissioner of human services, in consultation with the commissioners of health, 
606.25 	education, and public safety, shall submit a report to the chairs and ranking minority members 
606.26 	of the legislative committees with jurisdiction over health and human services, education, 
606.27 	and public safety, outlining proposed projects to achieve the greatest impact and ensure a 
606.28 	coordinated state effort to address the state's opioid addiction and overdose epidemic.
606.29 		Subd. 3.Use of account funds. (a) Beginning in fiscal year 2019, money in the account 
606.30 	shall be appropriated each fiscal year as specified in this subdivision.
607.1 	(b) $213,000 is appropriated to the commissioner of management and budget for 
607.2 	evaluation activities for selected projects.
607.3 	(c) $384,000 is appropriated to the commissioner of public safety for Bureau of Criminal 
607.4 	Apprehension drug scientists and lab supplies.
607.5 	(d) Money remaining in the opiate epidemic response account after making the 
607.6 	appropriations required in paragraphs (b) and (c) is appropriated to the commissioner of 
607.7 	human services to be allocated as grants as specified by the legislature or as otherwise 
607.8 	appropriated by the legislature.
607.9 		Subd. 4.Evaluations. The commissioner of human services, in consultation with the 
607.10 	commissioner of management and budget, and within available appropriations, shall select 
607.11 	from the awarded grants, projects that include promising practices or theory-based activities 
607.12 	for which the commissioner of management and budget shall conduct evaluations using 
607.13 	experimental or quasi-experimental design. Grants awarded to proposals that are selected 
607.14 	for an evaluation shall be administered to support the experimental or quasi-experimental 
607.15 	evaluation and shall require the grantee to collect and report information that is needed to 
607.16 	complete the evaluation. The commissioner of management and budget, under section 15.08, 
607.17 	may obtain additional relevant data to support the experimental or quasi-experimental 
607.18 	evaluation studies.

607.19 	Sec. 11. Laws 2017, First Special Session chapter 6, article 10, section 144, is amended 
607.20 	to read:
607.21 	Sec. 144. OPIOID ABUSE PREVENTION PILOT PROJECTS.
 607.22 	(a) The commissioner of health shall establish opioid abuse prevention pilot projects in 
607.23 	geographic areas throughout the state based on the most recently available data on opioid 
607.24 	overdose and abuse rates, to reduce opioid abuse through the use of controlled substance 
607.25 	care teams and community-wide coordination of abuse-prevention initiatives. The 
607.26 	commissioner shall award grants to health care providers, health plan companies, local units 
607.27 	of government, tribal governments, or other entities to establish pilot projects.
607.28 	(b) Each pilot project must:
607.29 	(1) be designed to reduce emergency room and other health care provider visits resulting 
607.30 	from opioid use or abuse, and reduce rates of opioid addiction in the community;
607.31 	(2) establish multidisciplinary controlled substance care teams, that may consist of 
607.32 	physicians, pharmacists, social workers, nurse care coordinators, and mental health 
607.33 	professionals;
608.1 	(3) deliver health care services and care coordination, through controlled substance care 
608.2 	teams, to reduce the inappropriate use of opioids by patients and rates of opioid addiction;
608.3 	(4) address any unmet social service needs that create barriers to managing pain 
608.4 	effectively and obtaining optimal health outcomes;
608.5 	(5) provide prescriber and dispenser education and assistance to reduce the inappropriate 
608.6 	prescribing and dispensing of opioids;
608.7 	(6) promote the adoption of best practices related to opioid disposal and reducing 
608.8 	opportunities for illegal access to opioids; and
608.9 	(7) engage partners outside of the health care system, including schools, law enforcement, 
608.10 	and social services, to address root causes of opioid abuse and addiction at the community 
608.11 	level.
608.12 	(c) The commissioner shall contract with an accountable community for health that 
608.13 	operates an opioid abuse prevention project, and can document success in reducing opioid 
608.14 	use through the use of controlled substance care teams, to assist the commissioner in 
608.15 	administering this section, and to provide technical assistance to the commissioner and to 
608.16 	entities selected to operate a pilot project.
608.17 	(d) The contract under paragraph (c) shall require the accountable community for health 
608.18 	to evaluate the extent to which the pilot projects were successful in reducing the inappropriate 
608.19 	use of opioids. The evaluation must analyze changes in the number of opioid prescriptions, 
608.20 	the number of emergency room visits related to opioid use, and other relevant measures. 
608.21 	The accountable community for health shall report evaluation results to the chairs and 
608.22 	ranking minority members of the legislative committees with jurisdiction over health and 
608.23 	human services policy and finance and public safety by December 15, 2019, for projects 
608.24 	that received funding in fiscal year 2018, and by December 15, 2021, for projects that 
608.25 	received funding in fiscal year 2019.
608.26 	(e) The commissioner may award one grant that, in addition to the other requirements 
608.27 	of this section, allows a root cause approach to reduce opioid abuse in an American Indian 
608.28 	community.

608.29 	Sec. 12. Laws 2017, First Special Session chapter 6, article 12, section 2, subdivision 4, 
608.30 	is amended to read:
608.31 		Subd. 4.Limit on quantity of opiates prescribed for acute dental and ophthalmic 
608.32 	pain. (a) When used for the treatment of acute dental pain or acute pain associated with 
608.33 	refractive surgery, prescriptions for opiate or narcotic pain relievers listed in Schedules II 
609.1 	through IV of section 152.02 shall not exceed a four-day supply. The quantity prescribed 
609.2 	shall be consistent with the dosage listed in the professional labeling for the drug that has 
609.3 	been approved by the United States Food and Drug Administration. This subdivision applies 
609.4 	to prescriptions issued for opiates or narcotic pain relievers listed in Schedule II through 
609.5 	IV in Minnesota Statutes, section 152.02, that are prescribed for the treatment of acute pain. 
609.6 	For purposes of this subdivision, "acute pain" means pain resulting from disease, accidental 
609.7 	or intentional trauma, surgery, or another cause, that the practitioner reasonably expects to 
609.8 	last only a short period of time. Acute pain does not include chronic pain or pain being 
609.9 	treated as part of cancer care, palliative care, or hospice or other end-of-life care.
609.10 	(b) For the purposes of this subdivision, "acute pain" means pain resulting from disease, 
609.11 	accidental or intentional trauma, surgery, or another cause, that the practitioner reasonably 
609.12 	expects to last only a short period of time. Acute pain does not include chronic pain or pain 
609.13 	being treated as part of cancer care, palliative care, or hospice or other end-of-life care. For 
609.14 	practitioners who are practicing in an emergency department, urgency care clinic, or a 
609.15 	walk-in health care clinic, a prescription as described in paragraph (a) issued to a patient 
609.16 	shall not exceed a three-day supply.
609.17 	(c) Notwithstanding paragraph (a), if in the professional clinical judgment of a practitioner 
609.18 	more than a four-day supply of a prescription listed in Schedules II through IV of section 
609.19 	152.02 is required to treat a patient's acute pain, the practitioner may issue a prescription 
609.20 	for the quantity needed to treat such acute pain. For practitioners issuing a prescription for 
609.21 	a drug described in paragraph (a) for the treatment of acute dental pain or acute pain 
609.22 	associated with refractive surgery, the quantity prescribed shall not exceed a four-day supply.
609.23 	(d) For practitioners issuing a prescription for a drug described in paragraph (a), and 
609.24 	paragraphs (b) and (c) do not apply, the quantity prescribed shall not exceed a seven-day 
609.25 	supply for an adult and a five-day supply for a minor under 18 years of age.
609.26 	(e) Notwithstanding paragraph (c) or (d), if in the professional clinical judgment of the 
609.27 	practitioner, more than the limit specified in paragraph (c) or (d) is required to treat a patient's 
609.28 	acute pain, the practitioner may issue a prescription for the quantity needed to treat the 
609.29 	patient's acute pain.

609.30 	Sec. 13. OPIOID OVERDOSE REDUCTION PILOT PROGRAM.
 609.31 		Subdivision 1.Establishment. The commissioner of health shall provide grants to 
609.32 	ambulance services to fund activities by community paramedic teams to reduce opioid 
609.33 	overdoses in the state. Under this pilot program, ambulance services shall develop and 
609.34 	implement projects in which community paramedics connect with patients who are discharged 
610.1 	from a hospital or emergency department following an opioid overdose episode, develop 
610.2 	personalized care plans for those patients in consultation with the ambulance service medical 
610.3 	director, and provide follow-up services to those patients.
610.4 		Subd. 2.Priority areas; services. (a) In a project developed under this section, an 
610.5 	ambulance service must target community paramedic team services to portions of the service 
610.6 	area with high levels of opioid use, high death rates from opioid overdoses, and urgent needs 
610.7 	for interventions.
610.8 	(b) In a project developed under this section, a community paramedic team shall:
610.9 	(1) provide services to patients released from a hospital or emergency department 
610.10 	following an opioid overdose episode and place priority on serving patients who were 
610.11 	administered the opiate antagonist naloxone hydrochloride by emergency medical services 
610.12 	personnel in response to a 911 call during the opioid overdose episode;
610.13 	(2) provide the following evaluations during an initial home visit: (i) a home safety 
610.14 	assessment including whether there is a need to dispose of prescription drugs that are expired 
610.15 	or no longer needed; (ii) medication compliance; (iii) an HIV risk assessment; (iv) instruction 
610.16 	on the use of naloxone hydrochloride; and (v) a basic needs assessment;
610.17 	(3) provide patients with health assessments, chronic disease monitoring and education, 
610.18 	and assistance in following hospital discharge orders; and
610.19 	(4) work with a multidisciplinary team to address the overall physical and mental health 
610.20 	needs of patients and health needs related to substance use disorder treatment.
610.21 	(c) An ambulance service receiving a grant under this section may use grant funds to 
610.22 	cover the cost of evidence-based training in opioid addiction and recovery treatment.
610.23 		Subd. 3.Evaluation. An ambulance service that receives a grant under this section shall 
610.24 	evaluate the extent to which the project was successful in reducing the number of opioid 
610.25 	overdoses and opioid overdose deaths among patients who received services and in reducing 
610.26 	the inappropriate use of opioids by patients who received services. The commissioner of 
610.27 	health shall develop specific evaluation measures and reporting timelines for ambulance 
610.28 	services receiving grants. Ambulance services shall submit the information required by the 
610.29 	commissioner to the commissioner and the commissioner shall submit a summary of the 
610.30 	information reported by the ambulance services to the chairs and ranking minority members 
610.31 	of the legislative committees with jurisdiction over health and human services by December 
610.32 	1, 2019.

611.1 	ARTICLE 39
611.2 	ELDERCARE AND VULNERABLE ADULT PROTECTIONS

611.3 	Section 1. CITATION.
 611.4 	Sections 1 to 61 may be cited as the "Eldercare and Vulnerable Adult Protection Act of 
611.5 	2018."

611.6 	Sec. 2. Minnesota Statutes 2016, section 144.6501, subdivision 3, is amended to read:
611.7 		Subd. 3.Contracts of admission. (a) A facility shall make complete unsigned copies 
611.8 	of its admission contract available to potential applicants and to the state or local long-term 
611.9 	care ombudsman immediately upon request.
611.10 	(b) A facility shall post conspicuously within the facility, in a location accessible to 
611.11 	public view, either a complete copy of its admission contract or notice of its availability 
611.12 	from the facility.
611.13 	(c) An admission contract must be printed in black type of at least ten-point type size. 
611.14 	The facility shall give a complete copy of the admission contract to the resident or the 
611.15 	resident's legal representative promptly after it has been signed by the resident or legal 
611.16 	representative.
611.17 	(d)  The admission contract must contain the name, address, and contact information of 
611.18 	the current owner, manager, and if different from the owner, license holder of the facility, 
611.19 	and the name and physical mailing address of at least one natural person who is authorized 
611.20 	to accept service of process.
611.21 	(d) (e) An admission contract is a consumer contract under sections 325G.29 to 325G.37.
611.22 	(e) (f) All admission contracts must state in bold capital letters the following notice to 
611.23 	applicants for admission: "NOTICE TO APPLICANTS FOR ADMISSION. READ YOUR 
611.24 	ADMISSION CONTRACT. ORAL STATEMENTS OR COMMENTS MADE BY THE 
611.25 	FACILITY OR YOU OR YOUR REPRESENTATIVE ARE NOT PART OF YOUR 
611.26 	ADMISSION CONTRACT UNLESS THEY ARE ALSO IN WRITING. DO NOT RELY 
611.27 	ON ORAL STATEMENTS OR COMMENTS THAT ARE NOT INCLUDED IN THE 
611.28 	WRITTEN ADMISSION CONTRACT."

612.1 	Sec. 3. Minnesota Statutes 2016, section 144.6501, is amended by adding a subdivision 
612.2 	to read:
612.3 		Subd. 3a.Changes to contracts of admission.   Within 30 days of a change in ownership, 
612.4 	management, or license holder, the facility must provide prompt written notice to the resident 
612.5 	or resident's legal representative of a new owner, manager, and if different from the owner, 
612.6 	license holder of the facility, and the name and physical mailing address of any new or 
612.7 	additional natural person not identified in the admission contract who is newly authorized 
612.8 	to accept service of process.

612.9 	Sec. 4. [144.6502] AUTHORIZED ELECTRONIC MONITORING IN CERTAIN 
612.10 	HEALTH CARE FACILITIES.
612.11 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
612.12 	subdivision have the meanings given.
612.13 	(b) "Authorized electronic monitoring" means the placement and use of an electronic 
612.14 	monitoring device by a resident in the resident's room or private living space in accordance 
612.15 	with this section.
612.16 	(c) "Commissioner" means the commissioner of health.
612.17 	(d) "Department" means the Department of Health.
612.18 	(e) "Electronic monitoring device" means a surveillance instrument with a fixed position 
612.19 	video camera or an audio recording device, or both, that is installed in a resident's room or 
612.20 	private living space and broadcasts or records activity or sounds occurring in the room or 
612.21 	private living space.
612.22 	(f) "Facility" means a facility that is licensed as a nursing home under chapter 144A or 
612.23 	as a boarding care home under sections 144.50 to 144.56, or registered as a housing with 
612.24 	services establishment under chapter 144D that is also subject to chapter 144G.
612.25 	(g) "Legal representative" means a court-appointed guardian or other representative with 
612.26 	legal authority to make decisions about health care services for the resident, including a 
612.27 	health care agent or an attorney-in-fact authorized through a health care directive or a power 
612.28 	of attorney.
612.29 	(h) "Resident" means a person 18 years of age or older residing in a facility.
612.30 		Subd. 2.Authorized electronic monitoring. (a) A resident or a resident's legal 
612.31 	representative may conduct authorized electronic monitoring of the resident's room or private 
613.1 	living space through the use of electronic monitoring devices placed in the room or private 
613.2 	living space as provided in this section.
613.3 	(b) Nothing in this section allows the use of an electronic monitoring device to take still 
613.4 	photographs or for the nonconsensual interception of private communications.
613.5 	(c) Nothing in this section precludes the use of electronic monitoring of health care 
613.6 	allowed under other law.
613.7 	(d) Electronic monitoring authorized under this section, for the purpose of monitoring 
613.8 	the actions of individuals other than the resident or to verify the delivery of services, is not 
613.9 	a covered service under home and community-based waivers under sections 256B.0913, 
613.10 	256B.0915, 256B.092, and 256B.49.
613.11 		Subd. 3.Consent to electronic monitoring. (a) Except as otherwise provided in this 
613.12 	subdivision, a resident must consent to electronic monitoring in the resident's room or private 
613.13 	living space in writing on a notification and consent form prescribed by the ombudsman 
613.14 	for long-term care, in consultation with the department and representatives of facilities. If 
613.15 	the resident has not affirmatively objected to electronic monitoring and the resident's 
613.16 	physician determines that the resident lacks the ability to understand and appreciate the 
613.17 	nature and consequences of electronic monitoring, the resident's legal representative may 
613.18 	consent on behalf of the resident. For purposes of this subdivision, a resident affirmatively 
613.19 	objects when the resident orally, visually, or through the use of auxiliary aids or services 
613.20 	declines electronic monitoring. The resident's response must be documented on the 
613.21 	notification and consent form.
613.22 	(b) Prior to a resident's legal representative consenting on behalf of a resident, the resident 
613.23 	must be asked by the resident's legal guardian in the presence of a facility employee if the 
613.24 	resident wants electronic monitoring to be conducted. The resident's legal representative 
613.25 	must explain to the resident:
613.26 	(1) the type of electronic monitoring device to be used;
613.27 	(2) the standard conditions that may be placed on the electronic monitoring device's use, 
613.28 	including those listed in subdivision 5;
613.29 	(3) with whom the recording may be shared under subdivision 9 or 10; and
613.30 	(4) the resident's ability to decline all recording.
613.31 	(c) A resident or roommate may consent to electronic monitoring with any conditions 
613.32 	of the resident's or roommate's choosing, including the list of standard conditions provided 
613.33 	in subdivision 5. A resident or roommate may request that the electronic monitoring device 
614.1 	be turned off or the visual or audio recording component of the electronic monitoring device 
614.2 	be blocked at any time.
614.3 	(d) Prior to implementing electronic monitoring, a resident must obtain the written 
614.4 	consent of any other resident residing in the room or private living space on the notification 
614.5 	and consent form prescribed by the ombudsman for long-term care. Except as otherwise 
614.6 	provided in this subdivision, a roommate must consent in writing to electronic monitoring 
614.7 	in the resident's room or private living space. If the roommate has not affirmatively objected 
614.8 	to electronic monitoring in accordance with this subdivision and the roommate's physician 
614.9 	determines that the roommate lacks the ability to understand and appreciate the nature and 
614.10 	consequences of electronic monitoring, the roommate's legal representative may consent 
614.11 	on behalf of the roommate. Consent by a roommate under this paragraph authorizes the 
614.12 	resident's use of any recording obtained under this section, as provided under subdivision 
614.13 	9 or 10.
614.14 	(e) Any resident conducting authorized electronic monitoring must obtain consent from 
614.15 	any new roommate before the resident may resume authorized electronic monitoring. If a 
614.16 	new roommate does not consent to electronic monitoring and the resident conducting the 
614.17 	electronic monitoring does not remove or disable the electronic monitoring device, the 
614.18 	facility must remove the electronic monitoring device.
614.19 		Subd. 4.Withdrawal of consent; refusal of roommate to consent. (a) Consent may 
614.20 	be withdrawn by the resident or roommate at any time and the withdrawal of consent must 
614.21 	be documented in the resident's clinical record. If a roommate withdraws consent and the 
614.22 	resident conducting the electronic monitoring does not remove or disable the electronic 
614.23 	monitoring device, the facility must remove the electronic monitoring device.
614.24 	(b) If a resident of a nursing home or boarding care home who is residing in a shared 
614.25 	room wants to conduct electronic monitoring and another resident living in or moving into 
614.26 	the same shared room refuses to consent to the use of an electronic monitoring device, the 
614.27 	facility shall make a reasonable attempt to accommodate the resident who wants to conduct 
614.28 	electronic monitoring. A nursing home or boarding care home has met the requirement to 
614.29 	make a reasonable attempt to accommodate a resident who wants to conduct electronic 
614.30 	monitoring when, upon notification that a roommate has not consented to the use of an 
614.31 	electronic monitoring device in the resident's room, the nursing home or boarding care home 
614.32 	offers to move either resident to another shared room that is available at the time of the 
614.33 	request. If a resident chooses to reside in a private room in a nursing home or boarding care 
614.34 	home in order to accommodate the use of an electronic monitoring device, the resident must 
614.35 	pay the private room rate. If a nursing home or boarding care home is unable to accommodate 
615.1 	a resident due to lack of space, the nursing home or boarding care home must reevaluate 
615.2 	the request every two weeks until the request is fulfilled. A nursing home or boarding care 
615.3 	home is not required to provide a private room or a single-bed room to a resident who is 
615.4 	not a private-pay resident.
615.5 		Subd. 5.Notice to facility; form requirements. (a) Authorized electronic monitoring 
615.6 	may begin only after the resident who intends to install an electronic monitoring device 
615.7 	completes the notification and consent form prescribed by the ombudsman for long-term 
615.8 	care and submits the form to the facility and the facility places the form in the resident's 
615.9 	and any roommate's clinical records.
615.10 	(b) The notification and consent form completed by the resident must include, at a 
615.11 	minimum, the following information:
615.12 	(1) the resident's signed consent to electronic monitoring or the signature of the resident's 
615.13 	legal representative, if applicable. If a person other than the resident signs the consent form, 
615.14 	the form must document the following:
615.15 	(i) the date the resident was asked if the resident wants electronic monitoring to be 
615.16 	conducted;
615.17 	(ii) who was present when the resident was asked; and
615.18 	(iii) an acknowledgment that the resident did not affirmatively object;
615.19 	(2) the resident's roommate's signed consent or the signature of the roommate's legal 
615.20 	representative, if applicable. If a roommate's legal representative signs the consent form, 
615.21 	the form must document the following:
615.22 	(i) the date the roommate was asked if the roommate wants electronic monitoring to be 
615.23 	conducted;
615.24 	(ii) who was present when the roommate was asked; and
615.25 	(iii) an acknowledgment that the roommate did not affirmatively object;
615.26 	(3) the type of electronic monitoring device to be used;
615.27 	(4) any installation needs, such as mounting of a device to a wall or ceiling;
615.28 	(5) the proposed date of installation for scheduling purposes;
615.29 	(6) a list of standard conditions or restrictions that the resident or a roommate may elect 
615.30 	to place on the use of the electronic monitoring device, including, but not limited to:
615.31 	(i) prohibiting audio recording;
616.1 	(ii) prohibiting video recording;
616.2 	(iii) prohibiting broadcasting of audio or video;
616.3 	(iv) turning off the electronic monitoring device or blocking the visual recording 
616.4 	component of the electronic monitoring device for the duration of an exam or procedure by 
616.5 	a health care professional;
616.6 	(v) turning off the electronic monitoring device or blocking the visual recording 
616.7 	component of the electronic monitoring device while dressing or bathing is performed; and
616.8 	(vi) turning off the electronic monitoring device for the duration of a visit with a spiritual 
616.9 	advisor, ombudsman, attorney, financial planner, intimate partner, or other visitor;
616.10 	(7) any other condition or restriction elected by the resident or roommate on the use of 
616.11 	an electronic monitoring device; and
616.12 	(8) a signature box for documenting that the resident or roommate has withdrawn consent.
616.13 	(c) A copy of the completed notification and consent form must be placed in the resident's 
616.14 	and any roommate's clinical records and a copy must be provided to the resident and the 
616.15 	resident's roommate, if applicable.
616.16 	(d) The ombudsman for long-term care shall prescribe the notification and consent form 
616.17 	required in this section no later than January 1, 2019. The commissioner shall make the 
616.18 	form available on the department's Web site.
616.19 	(e) Beginning January 1, 2019, facilities must make the notification and consent form 
616.20 	available to the residents and inform residents of their option to conduct electronic monitoring 
616.21 	of their rooms or private living spaces.
616.22 	(f) Any resident, legal representative of a resident, or other person conducting electronic 
616.23 	monitoring of a resident's room prior to enactment of this section must comply with the 
616.24 	requirements of this section by January 1, 2019.
616.25 		Subd. 6.Cost and installation. (a) A resident choosing to conduct authorized electronic 
616.26 	monitoring must do so at the resident's own expense, including paying purchase, installation, 
616.27 	maintenance, and removal costs.
616.28 	(b) If a resident chooses to install an electronic monitoring device that uses Internet 
616.29 	technology for visual or audio monitoring, the resident may be responsible for contracting 
616.30 	with an Internet service provider.
617.1 	(c) The facility shall make a reasonable attempt to accommodate the resident's installation 
617.2 	needs, including allowing access to the facility's telecommunications or equipment room. 
617.3 	A facility has the burden of proving that a requested accommodation is not reasonable.
617.4 	(d) All electronic monitoring device installations and supporting services must be 
617.5 	UL-listed.
617.6 		Subd. 7.Notice to visitors. (a) A facility shall post a sign at each facility entrance 
617.7 	accessible to visitors that states "Security cameras and audio devices may be present to 
617.8 	record persons and activities."
617.9 	(b) The facility is responsible for installing and maintaining the signage required in this 
617.10 	subdivision.
617.11 		Subd. 8.Obstruction of electronic monitoring devices. (a) A person must not knowingly 
617.12 	hamper, obstruct, tamper with, or destroy an electronic monitoring device installed in a 
617.13 	resident's room or private living space without the permission of the resident or the resident's 
617.14 	legal representative.
617.15 	(b) It is not a violation of paragraph (a) if a person turns off the electronic monitoring 
617.16 	device or blocks the visual recording component of the electronic monitoring device at the 
617.17 	direction of the resident or the resident's legal representative, or if consent has been 
617.18 	withdrawn.
617.19 		Subd. 9.Dissemination of recordings. (a) A facility may not access any video or audio 
617.20 	recording created through authorized electronic monitoring without the written consent of 
617.21 	the resident or the resident's legal representative.
617.22 	(b) Except as required under other law, a recording or copy of a recording made as 
617.23 	provided in this section may only be disseminated for the purpose of addressing health, 
617.24 	safety, or welfare concerns of a resident or residents.
617.25 	(c) The resident or the resident's legal representative must provide a copy of any video 
617.26 	or audio recording to parties involved in a civil, criminal, or administrative proceeding, 
617.27 	upon a party's request, if the video or audio recording was made during the time period that 
617.28 	the conduct at issue in the proceeding allegedly occurred.
617.29 		Subd. 10.Admissibility of evidence. Subject to applicable rules of evidence and 
617.30 	procedure, any video or audio recording created through authorized electronic monitoring 
617.31 	under this section may be admitted into evidence in a civil, criminal, or administrative 
617.32 	proceeding if the contents of the recording have not been edited or artificially enhanced and 
617.33 	the video recording includes the date and time the events occurred.
618.1 		Subd. 11.Liability. (a) A facility is not civilly or criminally liable for the inadvertent 
618.2 	or intentional disclosure of a recording by a resident or a resident's legal representative for 
618.3 	any purpose not authorized by this section.
618.4 	(b) A facility is not civilly or criminally liable for a violation of a resident's right to 
618.5 	privacy arising out of any electronic monitoring conducted as provided in this section.
618.6 		Subd. 12.Resident protections. A facility must not:
618.7 	(1) refuse to admit a potential resident or remove a resident because the facility disagrees 
618.8 	with the potential resident's or the resident's decisions regarding electronic monitoring;
618.9 	(2) intentionally retaliate or discriminate against any resident for consenting or refusing 
618.10 	to consent to electronic monitoring under this section; or
618.11 	(3) prevent the installation or use of an electronic monitoring device by a resident who 
618.12 	has provided the facility with notice and consent as required under this section.

618.13 	EFFECTIVE DATE. This section is effective January 1, 2019.

618.14 	Sec. 5. Minnesota Statutes 2016, section 144.651, subdivision 1, is amended to read:
618.15 		Subdivision 1.Legislative intent. It is the intent of the legislature and the purpose of 
618.16 	this section to promote the interests and well being of the patients and residents of health 
618.17 	care facilities. It is the intent of this section that every patient's and resident's civil and 
618.18 	religious liberties, including the right to independent personal decisions and knowledge of 
618.19 	available choices, must not be infringed and that the facility must encourage and assist in 
618.20 	the fullest possible exercise of these rights. The rights provided under this section are 
618.21 	established for the benefit of patients and residents. No health care facility may require or 
618.22 	request a patient or resident to waive any of these rights at any time or for any reason 
618.23 	including as a condition of admission to the facility. Any guardian or conservator of a patient 
618.24 	or resident or, in the absence of a guardian or conservator, an interested person, may seek 
618.25 	enforcement of these rights on behalf of a patient or resident. An interested person may also 
618.26 	seek enforcement of these rights on behalf of a patient or resident who has a guardian or 
618.27 	conservator through administrative agencies or in district court having jurisdiction over 
618.28 	guardianships and conservatorships. Pending the outcome of an enforcement proceeding 
618.29 	the health care facility may, in good faith, comply with the instructions of a guardian or 
618.30 	conservator. It is the intent of this section that every patient's civil and religious liberties, 
618.31 	including the right to independent personal decisions and knowledge of available choices, 
618.32 	shall not be infringed and that the facility shall encourage and assist in the fullest possible 
618.33 	exercise of these rights.

619.1 	Sec. 6. Minnesota Statutes 2016, section 144.651, subdivision 2, is amended to read:
619.2 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in this 
619.3 	subdivision have the meanings given them.
619.4 	(b) "Patient" means:
619.5 	(1) a person who is admitted to an acute care inpatient facility for a continuous period 
619.6 	longer than 24 hours, for the purpose of diagnosis or treatment bearing on the physical or 
619.7 	mental health of that person.;
619.8 	(2) a minor who is admitted to a residential program as defined in section 253C.01;
619.9 	(3) for purposes of subdivisions 1, 4 to 9, 12, 13, 15, 16, and 18 to 20, "patient" also 
619.10 	meansand 34, a person who receives health care services at an outpatient surgical center 
619.11 	or at a birth center licensed under section 144.615. "Patient" also means a minor who is 
619.12 	admitted to a residential program as defined in section 253C.01.; and
619.13 	(4) for purposes of subdivisions 1, 3 to 16, 18, 20 and, 30, "patient" also meansand 34, 
619.14 	any person who is receiving mental health treatment on an outpatient basis or in a community 
619.15 	support program or other community-based program.
619.16 	(c) "Resident" means a person who is admitted to:
619.17 	(1) a nonacute care facility including extended care facilities,;
619.18 	(2) a nursing homes, and  home;
619.19 	(3) a boarding care homes home for care required because of prolonged mental or physical 
619.20 	illness or disability, recovery from injury or disease, or advancing age.; and
619.21 	(4) for purposes of all subdivisions except subdivisions 28 and 29 1 to 27, "resident" 
619.22 	also means a person who is admitted toand 30 to 34, a facility licensed as a board and 
619.23 	lodging facility under Minnesota Rules, parts 4625.0100 to 4625.2355 chapter 4625, or a 
619.24 	supervised living facility under Minnesota Rules, parts 4665.0100 to 4665.9900 chapter 
619.25 	4665, and which operates a rehabilitation program licensed under Minnesota Rules, parts 
619.26 	9530.6405 9530.6510 to 9530.6590.
619.27 	(d) "Health care facility" or "facility" means:
619.28 	(1) an acute care inpatient facility;
619.29 	(2) a residential program as defined in section 253C.01;
619.30 	(3) for the purposes of subdivisions 1, 4 to 9, 12, 13, 15, 16, 18 to 20, and 34, an 
619.31 	outpatient surgical center or a birth center licensed under section 144.615;
620.1 	(4) for the purposes of subdivisions 1, 3 to 16, 18, 20, 30, and 34, a setting in which 
620.2 	outpatient mental health services are provided, or a community support program or other 
620.3 	community-based program providing mental health treatment;
620.4 	(5) a nonacute care facility, including extended care facilities;
620.5 	(6) a nursing home;
620.6 	(7) a boarding care home for care required because of prolonged mental or physical 
620.7 	illness or disability, recovery from injury or disease, or advancing age; or
620.8 	(8) for the purposes of subdivisions 1 to 27 and 30 to 34, a facility licensed as a board 
620.9 	and lodging facility under Minnesota Rules, chapter 4625, or a supervised living facility 
620.10 	under Minnesota Rules, chapter 4665, and which operates a rehabilitation program licensed 
620.11 	under Minnesota Rules, parts 9530.6510 to 9530.6590.

620.12 	Sec. 7. Minnesota Statutes 2016, section 144.651, subdivision 4, is amended to read:
620.13 		Subd. 4.Information about rights. (a) Patients and residents shall, at admission, be 
620.14 	told that there are legal rights for their protection during their stay at the facility or throughout 
620.15 	their course of treatment and maintenance in the community and that these are described 
620.16 	in an accompanying written statement in plain language and in terms patients and residents 
620.17 	can understand of the applicable rights and responsibilities set forth in this section. The 
620.18 	written statement must be developed by the commissioner, in consultation with stakeholders, 
620.19 	and must also include the name, address, and telephone number of the state or county agency 
620.20 	to contact for additional information or assistance. In the case of patients admitted to 
620.21 	residential programs as defined in section 253C.01, the written statement shall also describe 
620.22 	the right of a person 16 years old or older to request release as provided in section 253B.04, 
620.23 	subdivision 2, and shall list the names and telephone numbers of individuals and organizations 
620.24 	that provide advocacy and legal services for patients in residential programs.
620.25 	(b) Reasonable accommodations shall be made for people who have communication 
620.26 	disabilities and those who speak a language other than English.
620.27 	(c) Current facility policies, inspection findings of state and local health authorities, and 
620.28 	further explanation of the written statement of rights shall be available to patients, residents, 
620.29 	their guardians or their chosen representatives upon reasonable request to the administrator 
620.30 	or other designated staff person, consistent with chapter 13, the Data Practices Act, and 
620.31 	section 626.557, relating to vulnerable adults.

621.1 	Sec. 8. Minnesota Statutes 2016, section 144.651, subdivision 6, is amended to read:
621.2 		Subd. 6.Appropriate health care. Patients and residents shall have the right to 
621.3 	appropriate medical and personal care based on individual needs. Appropriate care for 
621.4 	residents means care designed to enable residents to achieve their highest level of physical 
621.5 	and mental functioning., provided by persons who are properly trained and competent to 
621.6 	perform their duties. This right is limited where the service is not reimbursable by public 
621.7 	or private resources.

621.8 	Sec. 9. Minnesota Statutes 2016, section 144.651, subdivision 14, is amended to read:
621.9 		Subd. 14.Freedom from maltreatment. (a) Patients and residents shall be free from 
621.10 	maltreatment as defined in the Vulnerable Adults Protection Act. "Maltreatment" means 
621.11 	conduct described in section 626.5572, subdivision 15, or the intentional and nontherapeutic 
621.12 	infliction of physical pain or injury, or any persistent course of conduct intended to produce 
621.13 	mental or emotional distress. Patients and residents who reside in or receive care from a 
621.14 	facility for which the Department of Health is the lead investigative agency shall receive 
621.15 	notification from the Department of Health regarding a report of alleged maltreatment, 
621.16 	disposition of a report, and appeal rights, as provided under section 626.557, subdivision 
621.17 	9c.
621.18 	(b) Every patient and resident shall also be free from nontherapeutic chemical and 
621.19 	physical restraints, except in fully documented emergencies, or as authorized in writing 
621.20 	after examination by a patient's or resident's physician for a specified and limited period of 
621.21 	time, and only when necessary to protect the resident from self-injury or injury to others.

621.22 	Sec. 10. Minnesota Statutes 2016, section 144.651, subdivision 16, is amended to read:
621.23 		Subd. 16.Confidentiality of records. Patients and residents shall be assured confidential 
621.24 	treatment of their personal, financial, and medical records, and may approve or refuse their 
621.25 	release to any individual outside the facility. Residents shall be notified when personal 
621.26 	records are requested by any individual outside the facility and may select someone to 
621.27 	accompany them when the records or information are the subject of a personal interview. 
621.28 	Patients and residents have a right to access their personal, financial, and medical records 
621.29 	and written information from those records. Copies of records and written information from 
621.30 	the records shall be made available in accordance with this subdivision and sections 144.291
621.31 	to 144.298. This right does not apply to complaint investigations and inspections by the 
621.32 	Department of Health, where required by third-party payment contracts, or where otherwise 
621.33 	provided by law.

622.1 	Sec. 11. Minnesota Statutes 2016, section 144.651, subdivision 17, is amended to read:
622.2 		Subd. 17.Disclosure of services available. Patients and residents shall be informed, 
622.3 	prior to or at the time of admission and during their stay, of services which are included in 
622.4 	the facility's basic per diem or daily room rate and that other services are available at 
622.5 	additional charges. Residents have the right to 30 days' advance notice of changes in charges 
622.6 	that are unrelated to a resident's change in condition or change of care needs. A facility that 
622.7 	is subject to section 504B.178 may not collect a nonrefundable security deposit unless it is 
622.8 	applied to the first month's charges. Nursing facilities enrolled as medical assistance providers 
622.9 	are prohibited from charging, soliciting, accepting, or receiving a deposit. Facilities and 
622.10 	providers are prohibited from charging fees because a resident exercises the right to refuse 
622.11 	treatment or medication, or when the resident chooses pharmacies or other health 
622.12 	professionals other than the ones selected or preferred by the facility or provider. Facilities 
622.13 	shall make every effort to assist patients and residents in obtaining information regarding 
622.14 	whether the Medicare or medical assistance program will pay for any or all of the 
622.15 	aforementioned services.

622.16 	Sec. 12. Minnesota Statutes 2016, section 144.651, subdivision 20, is amended to read:
622.17 		Subd. 20.Grievances. (a) Patients and residents shall be encouraged and assisted, 
622.18 	throughout their stay in a facility or their course of treatment, to understand and exercise 
622.19 	their rights as patients, residents, and citizens. Patients and residents may voice grievances, 
622.20 	assert the rights granted under this section personally, and recommend changes in policies 
622.21 	and services to facility staff and others of their choice, free from restraint, interference, 
622.22 	coercion, discrimination, retaliation, or reprisal, including threat of discharge. Notice of the 
622.23 	grievance procedure of the facility or program, as well as addresses and telephone numbers 
622.24 	for the Office of Health Facility Complaints and the area nursing home ombudsman pursuant 
622.25 	to the Older Americans Act, section 307(a)(12) shall be posted in a conspicuous place.
622.26 	(b) Patients and residents have the right to complain about services that are provided, 
622.27 	services that are not being provided, and the lack of courtesy or respect to the patient or 
622.28 	resident or the patient's or resident's property. The facility must investigate and attempt 
622.29 	resolution of the complaint or grievance.  The patient or resident has the right to be informed 
622.30 	of the name and contact information of the individual who is responsible for handling 
622.31 	grievances.
622.32 	(c) Notice must be posted in a conspicuous place of the facility's or program's grievance 
622.33 	procedure, as well as telephone numbers and, where applicable, addresses for the common 
622.34 	entry point, as defined in section 626.5572, subdivision 5, the protection and advocacy 
623.1 	agency, and the state long-term care ombudsman pursuant to United States Code, title 42, 
623.2 	sections 3058f and 3058g.
623.3 	(d) Every acute care inpatient facility, every residential program as defined in section 
623.4 	253C.01, every nonacute care facility, and every facility employing more than two people 
623.5 	that provides outpatient mental health services shall have a written internal grievance 
623.6 	procedure that, at a minimum, sets forth the process to be followed; specifies time limits, 
623.7 	including time limits for facility response; provides for the patient or resident to have the 
623.8 	assistance of an advocate; requires a written response to written grievances; and provides 
623.9 	for a timely decision by an impartial decision maker if the grievance is not otherwise resolved. 
623.10 	Compliance by hospitals, residential programs as defined in section 253C.01 which are 
623.11 	hospital-based primary treatment programs, and outpatient surgery centers with section 
623.12 	144.691 and compliance by health maintenance organizations with section 62D.11 is deemed 
623.13 	to be compliance with the requirement for a written internal grievance procedure.

623.14 	Sec. 13. Minnesota Statutes 2016, section 144.651, subdivision 21, is amended to read:
623.15 		Subd. 21.Communication privacy. Patients and residents may associate and 
623.16 	communicate privately with persons of their choice and enter and, except as provided by 
623.17 	the Minnesota Commitment Act, leave the facility as they choose. Patients and residents 
623.18 	shall have access, at their own expense, unless provided by the facility, to writing instruments, 
623.19 	stationery, and postage, and Internet service. Personal mail shall be sent without interference 
623.20 	and received unopened unless medically or programmatically contraindicated and 
623.21 	documented by the physician in the medical record. There shall be access to a telephone 
623.22 	where patients and residents can make and receive calls as well as speak privately. Facilities 
623.23 	which are unable to provide a private area shall make reasonable arrangements to 
623.24 	accommodate the privacy of patients' or residents' calls. Upon admission to a facility where 
623.25 	federal law prohibits unauthorized disclosure of patient or resident identifying information 
623.26 	to callers and visitors, the patient or resident, or the legal guardian or conservator of the 
623.27 	patient or resident, shall be given the opportunity to authorize disclosure of the patient's or 
623.28 	resident's presence in the facility to callers and visitors who may seek to communicate with 
623.29 	the patient or resident. To the extent possible, the legal guardian or conservator of a patient 
623.30 	or resident shall consider the opinions of the patient or resident regarding the disclosure of 
623.31 	the patient's or resident's presence in the facility. This right is limited where medically 
623.32 	inadvisable, as documented by the attending physician in a patient's or resident's care record. 
623.33 	Where programmatically limited by a facility abuse prevention plan pursuant to section 
623.34 	626.557, subdivision 14, paragraph (b), this right shall also be limited accordingly.

624.1 	Sec. 14. Minnesota Statutes 2016, section 144.651, is amended by adding a subdivision 
624.2 	to read:
624.3 		Subd. 34.Retaliation prohibited. (a) A facility or person must not retaliate against a 
624.4 	patient, resident, employee, or interested person who in good faith:
624.5 	(1) files a complaint or grievance or asserts any rights on behalf of the patient or resident;
624.6 	(2) submits a maltreatment report, whether mandatory or voluntary, on behalf of the 
624.7 	patient or resident under section 626.557, subdivision 3, 4, or 4a;
624.8 	(3) advocates on behalf of the patient or resident for necessary or improved care and 
624.9 	services or enforcement of rights under this section or other law; or
624.10 	(4) contracts to receive services from a service provider of the resident's choice.
624.11 	(b) Adverse action may be considered retaliation. For purposes of this section, "adverse 
624.12 	action" means any action taken in bad faith by a facility or person against the patient, resident, 
624.13 	employee, or interested person that includes but is not limited to:
624.14 	(1) discharge or transfer from the facility;
624.15 	(2) discharge from or termination of employment;
624.16 	(3) demotion or reduction in remuneration for services;
624.17 	(4) any restriction of any of the rights set forth in state or federal law;
624.18 	(5) removal, tampering with, or deprivation of technology, communication, or electronic 
624.19 	monitoring devices of the patient or resident;
624.20 	(6) one of the following actions if unrelated to a patient's or resident's change in condition 
624.21 	or change of care needs:
624.22 	(i) restriction or prohibition of access either to the facility or to the patient or resident;
624.23 	(ii) any restriction of access to or use of communities or services;
624.24 	(iii) termination of services or lease agreement, or both; or
624.25 	(iv) a sudden increase in costs for services not already contemplated at the time of the 
624.26 	action taken;
624.27 	(7) reporting maltreatment in bad faith; or
624.28 	(8) making any oral or written communication of false information about a person 
624.29 	advocating on behalf of the patient or resident.

625.1 	Sec. 15. Minnesota Statutes 2016, section 144.651, is amended by adding a subdivision 
625.2 	to read:
625.3 		Subd. 35.Electronic monitoring. A resident has the right to install and use electronic 
625.4 	monitoring, provided the requirements of section 144.6502 are met.

625.5 	Sec. 16. [144.6511] DECEPTIVE MARKETING AND BUSINESS PRACTICES.
625.6 	(a) For purposes of this section, "facility" means a facility listed in section 144.651, 
625.7 	subdivision 2, paragraph (d), clauses (2) to (8); a housing with services establishment 
625.8 	registered under chapter 144D; or an assisted living setting regulated under chapter 144G.
625.9 	(b) Deceptive marketing and business practices by a facility or by a home care provider 
625.10 	licensed under sections 144A.43 to 144A.482, are prohibited.
625.11 	(c) For the purposes of this section, it is a deceptive practice for a facility or home care 
625.12 	provider to:
625.13 	(1) make any false, fraudulent, deceptive, or misleading statements in marketing, 
625.14 	advertising, or written description or representation of care or services, whether in written 
625.15 	or electronic form;
625.16 	(2) arrange for or provide health care or services other than those contracted for;
625.17 	(3) fail to deliver any care or services the provider or facility promised that the facility 
625.18 	was able to provide;
625.19 	(4) fail to inform the patient, resident, or client in writing of any limitations to care 
625.20 	services available prior to executing a contract for admission;
625.21 	(5) discharge or terminate the lease or services of a patient or resident following a required 
625.22 	period of private pay who then receives benefits under the medical assistance elderly waiver 
625.23 	program after the facility has made a written promise to continue the same services provided 
625.24 	under private pay and accept medical assistance elderly waiver payments after the expiration 
625.25 	of the private pay period;
625.26 	(6) fail to disclose in writing the purpose of a nonrefundable community fee or other fee 
625.27 	prior to contracting for services with a patient, resident, or client;
625.28 	(7) advertise or represent, in writing, that the facility is or has a special care unit, such 
625.29 	as for dementia or memory care, without complying with training and disclosure requirements 
625.30 	under sections 144D.065 and 325F.72, and any other applicable law; or
626.1 	(8) define the terms "facility," "contract of admission," "admission contract," "admission 
626.2 	agreement," "legal representative," or "responsible party" to mean anything other than the 
626.3 	meanings of those terms under section 144.6501.

626.4 	Sec. 17. Minnesota Statutes 2016, section 144.652, is amended by adding a subdivision 
626.5 	to read:
626.6 		Subd. 3.Fines. Notwithstanding section 144.653 or 144A.10, the commissioner may 
626.7 	impose a fine in an amount equal to the amount listed in Minnesota Rules, part 4658.0193, 
626.8 	item F, upon a finding that the facility has violated section 144.651, subdivision 34.

626.9 	Sec. 18. Minnesota Statutes 2016, section 144A.10, subdivision 1, is amended to read:
626.10 		Subdivision 1.Enforcement authority. The commissioner of health is the exclusive 
626.11 	state agency charged with the responsibility and duty of inspecting all facilities required to 
626.12 	be licensed under section 144A.02, and issuing correction orders and imposing fines as 
626.13 	provided in this section, Minnesota Rules, chapter 4658, or any other applicable law. The 
626.14 	commissioner of health shall enforce the rules established pursuant to sections 144A.01 to 
626.15 	144A.155, subject only to the authority of the Department of Public Safety respecting the 
626.16 	enforcement of fire and safety standards in nursing homes and the responsibility of the 
626.17 	commissioner of human services under sections 245A.01 to 245A.16 or 252.28.
626.18 	The commissioner may request and must be given access to relevant information, records, 
626.19 	incident reports, or other documents in the possession of a licensed facility if the 
626.20 	commissioner considers them necessary for the discharge of responsibilities. For the purposes 
626.21 	of inspections and securing information to determine compliance with the licensure laws 
626.22 	and rules, the commissioner need not present a release, waiver, or consent of the individual. 
626.23 	A nursing home's refusal to cooperate in providing lawfully requested information is grounds 
626.24 	for a correction order, a fine according to Minnesota Rules, part 4658.0190, item EE, or 
626.25 	both. The identities of patients or residents must be kept private as defined by section 13.02, 
626.26 	subdivision 12.

626.27 	Sec. 19. Minnesota Statutes 2016, section 144A.44, subdivision 1, is amended to read:
626.28 		Subdivision 1.Statement of rights. A person who receives home care services has these 
626.29 	rights:
626.30 	(1) the right to receive written information in plain language about rights before receiving 
626.31 	services, including what to do if rights are violated;
627.1 	(2) the right to receive care and services according to a suitable and up-to-date plan, and 
627.2 	subject to accepted health care, medical or nursing standards, to take an active part in 
627.3 	developing, modifying, and evaluating the plan and services;
627.4 	(3) the right to be told before receiving services the type and disciplines of staff who 
627.5 	will be providing the services, the frequency of visits proposed to be furnished, other choices 
627.6 	that are available for addressing home care needs, and the potential consequences of refusing 
627.7 	these services;
627.8 	(4) the right to be told in advance of any recommended changes by the provider in the 
627.9 	service plan and to take an active part in any decisions about changes to the service plan;
627.10 	(5) the right to refuse services or treatment;
627.11 	(6) the right to know, before receiving services or during the initial visit, any limits to 
627.12 	the services available from a home care provider;
627.13 	(7) the right to be told before services are initiated what the provider charges for the 
627.14 	services; to what extent payment may be expected from health insurance, public programs, 
627.15 	or other sources, if known; and what charges the client may be responsible for paying;
627.16 	(8) the right to know that there may be other services available in the community, 
627.17 	including other home care services and providers, and to know where to find information 
627.18 	about these services;
627.19 	(9) the right to choose freely among available providers and to change providers after 
627.20 	services have begun, within the limits of health insurance, long-term care insurance, medical 
627.21 	assistance, or other health programs;
627.22 	(10) the right to have personal, financial, and medical information kept private, and to 
627.23 	be advised of the provider's policies and procedures regarding disclosure of such information;
627.24 	(11) the right to access the client's own records and written information from those 
627.25 	records in accordance with sections 144.291 to 144.298;
627.26 	(12) the right to be served by people who are properly trained and competent to perform 
627.27 	their duties;
627.28 	(13) the right to be treated with courtesy and respect, and to have the client's property 
627.29 	treated with respect;
627.30 	(14) the right to be free from physical and verbal abuse, neglect, financial exploitation, 
627.31 	and all forms of maltreatment covered under the Vulnerable Adults Act and the Maltreatment 
627.32 	of Minors Act;
628.1 	(15) the right to reasonable, advance notice of changes in services or charges;
628.2 	(16) the right to know the provider's reason for termination of services;
628.3 	(17) the right to at least ten 15 days' advance notice of the termination of a service by a 
628.4 	provider, except in cases where:
628.5 	(i) the client engages in conduct that significantly alters the terms of the service plan 
628.6 	with the home care provider;
628.7 	(ii) the client, person who lives with the client, or others create an abusive or unsafe 
628.8 	work environment for the person providing home care services; or
628.9 	(iii) an emergency or a significant change in the client's condition has resulted in service 
628.10 	needs that exceed the current service plan and that cannot be safely met by the home care 
628.11 	provider; or
628.12 	(iv) the client's condition has improved to a point where home care services are deemed 
628.13 	by the client's medical provider to no longer be medically necessary;
628.14 	(18) the right to a coordinated transfer when there will be a change in the provider of 
628.15 	services;
628.16 	(19) the right to complain to staff about services that are provided, or fail to be provided, 
628.17 	and the lack of courtesy or respect to the client or the client's property, and the right to 
628.18 	recommend changes in policies and services, free from retaliation, including the threat of 
628.19 	termination of services or a service agreement;
628.20 	(20) the right to know how to contact an individual associated with the home care provider 
628.21 	who is responsible for handling problems and to have the home care provider investigate 
628.22 	and attempt to resolve the grievance or complaint;
628.23 	(21) the right to know the name and address of the state or county agency to contact for 
628.24 	additional information or assistance; and
628.25 	(22) the right to assert these rights personally, or have them asserted by the client's 
628.26 	representative or by anyone on behalf of the client, without retaliation.
628.27 	(23) the right to notification from the Department of Health regarding a report of alleged 
628.28 	maltreatment, disposition of a report, and appeal rights, as provided under section 626.557, 
628.29 	subdivision 9c;
628.30 	(24) the right to Internet service at the person's own expense, unless it is provided by 
628.31 	the provider; and
629.1 	(25) the right to place an electronic monitoring device in the person's own private space, 
629.2 	provided the requirements in section 144.6502 are met.
629.3 	The commissioner shall develop and make available to providers a standard form explaining 
629.4 	in plain language the rights specified in this subdivision.

629.5 	Sec. 20. Minnesota Statutes 2016, section 144A.441, is amended to read:
629.6 	144A.441 ASSISTED LIVING BILL OF RIGHTS ADDENDUM.
629.7 	Assisted living clients, as defined in section 144G.01, subdivision 3, shall be provided 
629.8 	with the home care bill of rights required by section 144A.44, except that the home care 
629.9 	bill of rights provided to these clients must include the following provision in place of the 
629.10 	provision in section 144A.44, subdivision 1, clause (17):
629.11 	"(17) the right to reasonable, advance notice of changes in services or charges, including 
629.12 	at least 30 days' advance notice of the termination of a service by a provider, except in cases 
629.13 	where:
629.14 	(i) the recipient of services engages in conduct that alters the conditions of employment 
629.15 	as specified in the employment contract between the home care provider and the individual 
629.16 	providing home care services, or creates and the home care provider can document an 
629.17 	abusive or unsafe work environment for the individual providing home care services;
629.18 	(ii) a doctor or treating physician, certified nurse practitioner, physician assistant, or 
629.19 	registered nurse documents that an emergency for the informal caregiver or a significant 
629.20 	change in the recipient's condition has resulted in service needs that exceed the current 
629.21 	service provider agreement and that cannot be safely met by the home care provider; or
629.22 	(iii) the provider has not received payment for services, for which at least ten days' 
629.23 	advance notice of the termination of a service shall be provided."
629.24 	For participants receiving medical assistance waiver services, the provider must immediately 
629.25 	notify the participant's case manager of any termination of services.

629.26 	Sec. 21. Minnesota Statutes 2016, section 144A.442, is amended to read:
629.27 	144A.442 ASSISTED LIVING CLIENTS; SERVICEARRANGED HOME CARE 
629.28 	PROVIDER RESPONSIBILITIES; TERMINATION OF SERVICES.
629.29 		Subdivision 1.Definition. For the purposes of this section, "coordinated transfer" means 
629.30 	a plan to transfer an assisted living client, as defined in section 144G.01, subdivision 3, to 
629.31 	another home care provider that:
630.1 	(1) considers the needs and wants of the client;
630.2 	(2) is based on the comprehensive assessment and individual needs of the client;
630.3 	(3) includes the client, the client's case manager, and the client's representative, if any; 
630.4 	and
630.5 	(4) includes relevant information that allows the new home care provider to successfully 
630.6 	meet the needs of the client.
630.7 		Subd. 2.Permissible reasons to terminate services; notice required. (a) An arranged 
630.8 	home care provider may terminate services if the home care provider is implementing a 
630.9 	plan consistent with the client's assessed needs and a client:
630.10 	(1) engages in conduct that significantly alters the terms of the service agreement with 
630.11 	the home care provider and does not significantly alter the client's conduct within 30 days 
630.12 	of receiving written notice of the conduct; or
630.13 	(2) fails to pay the provider for services that are agreed to in the service agreement.
630.14 	(b) An arranged home care provider must provide at least 30 days' advance written notice 
630.15 	prior to terminating a service agreement for a reason specified in paragraph (a), clause (1), 
630.16 	and at least ten days' advance notice for the reason specified in paragraph (a), clause (2).
630.17 	(c) Notwithstanding paragraphs (a) and (b), the arranged home care provider may 
630.18 	terminate services if the client:
630.19 	(1) creates, and the provider can document, an abusive or unsafe environment for the 
630.20 	individual providing home care services or for other residents; or
630.21 	(2) has a comprehensive assessment by a treating physician, advanced practice registered 
630.22 	nurse, or physician assistant that documents, and shows, that an emergency or a significant 
630.23 	change in the client's condition has resulted in service needs that exceed the current service 
630.24 	agreement and that cannot be safely met by the home care provider.
630.25 	An arranged home care provider may not terminate services under this paragraph until the 
630.26 	provider has assisted a client with a coordinated transfer.
630.27 	(d) For participants receiving medical assistance waiver services, the provider must 
630.28 	immediately notify the participant's case manager of any termination of services.
630.29 		Subd. 3.Contents of service termination notice. If an arranged home care provider, 
630.30 	as defined in section 144D.01, subdivision 2a, who is not also Medicare certified terminates 
630.31 	a service agreement or service plan with an assisted living client, as defined in section 
630.32 	144G.01, subdivision 3, the home care provider shall provide the assisted living client and 
631.1 	the legal or designated representatives of the client, if any, with a advance written notice 
631.2 	of termination which, as provided under subdivision 2, that includes the following 
631.3 	information:
631.4 	(1) the effective date of termination;
631.5 	(2) a detailed explanation of the reason for termination;
631.6 	(3) without extending the termination notice period, an affirmative offer to meet with 
631.7 	the assisted living client or client representatives within no more than five business days of 
631.8 	the date of the termination notice to discuss the termination;
631.9 	(4) contact information for a reasonable number of other home care providers in the 
631.10 	geographic area of the assisted living client, as required by section 144A.4791, subdivision 
631.11 	10;
631.12 	(5) a statement that the provider will participate in a coordinated transfer of the care of 
631.13 	the client to another provider or caregiver, as required by section 144A.44, subdivision 1, 
631.14 	clause (18);
631.15 	(6) the name and contact information of a representative of the home care provider with 
631.16 	whom the client may discuss the notice of termination;
631.17 	(7) a copy of the home care bill of rights; and
631.18 	(8) a statement that the notice of termination of home care services by the home care 
631.19 	provider does not constitute notice of termination of the housing with services contract with 
631.20 	a housing with services establishment;
631.21 	(9) a statement that the client has the right to avoid termination of services by paying 
631.22 	the past due service charges or by curing the alteration of the terms of the service agreement 
631.23 	prior to the effective date of service termination;
631.24 	(10) a statement that the recipient of the notice may contact the Office of the Ombudsman 
631.25 	for Long-Term Care for assistance regarding service termination and the address and 
631.26 	telephone number of the Office of Ombudsman for Long-Term Care, the Office of 
631.27 	Administrative Hearings, and the protection and advocacy agency; and
631.28 	(11) a statement of the client's right to appeal the service termination to the Office of 
631.29 	Administrative Hearings and an explanation about how to request an appeal.
631.30 		Subd. 4.Right to appeal service termination. (a) At any time prior to the expiration 
631.31 	of the notice period provided under subdivision 2, paragraph (b), a client may appeal the 
631.32 	service termination by making a written request for a hearing to the Office of Administrative 
632.1 	Hearings, which must schedule the hearing no later than 14 days after receiving the appeal 
632.2 	request. The hearing must be held in the establishment in which the client resides, unless 
632.3 	impractical or the parties agree otherwise. A client may not appeal a service termination 
632.4 	for the reason specified in subdivision 2, paragraph (a), clause (2). A client may appeal a 
632.5 	termination of services for a reason specified in subdivision 2, paragraph (a), clause (1), 
632.6 	beginning July 1, 2018, and may appeal a termination of services for a reason specified in 
632.7 	subdivision 2, paragraph (c), clause (1) or (2), beginning January 1, 2020.
632.8 	(b) The arranged home care provider may not discontinue services to a client who makes 
632.9 	a timely appeal of a notice of service termination until the Office of Administrative Hearings 
632.10 	makes a final determination on the appeal in favor of the arranged home care provider.
632.11 	(c) Clients are not required to request a meeting as provided under subdivision 3, clause 
632.12 	(3), prior to submitting an appeal hearing request.
632.13 	(d) The commissioner of health may order the arranged home care provider to rescind 
632.14 	the service termination if:
632.15 	(1) the service termination was in violation of state or federal law; or
632.16 	(2) the client cures the conduct that allegedly altered the terms of the service agreement 
632.17 	on or before the date of the administrative hearing.
632.18 	(e) Nothing in this section limits the right of a client or the client's representative to 
632.19 	request or receive assistance from the Office of Ombudsman for Long-Term Care and the 
632.20 	protection and advocacy agency concerning the proposed service termination.
632.21 		Subd. 5.Assistance with coordinated transfer. A housing with services establishment 
632.22 	with which the client has a contract and the arranged home care provider must assist a client 
632.23 	with a coordinated transfer.

632.24 	EFFECTIVE DATE. This section is effective for all contracts for services entered into 
632.25 	or renewed on or after July 1, 2018.

632.26 	Sec. 22. Minnesota Statutes 2016, section 144A.45, subdivision 1, is amended to read:
632.27 		Subdivision 1.Regulations. The commissioner shall regulate home care providers 
632.28 	pursuant to sections 144A.43 to 144A.482. The regulations shall include the following:
632.29 	(1) provisions to assure, to the extent possible, the health, safety, well-being, and 
632.30 	appropriate treatment of persons who receive home care services while respecting a client's 
632.31 	autonomy and choice;
633.1 	(2) requirements that home care providers furnish the commissioner with specified 
633.2 	information necessary to implement sections 144A.43 to 144A.482;
633.3 	(3) standards of training of home care provider personnel;
633.4 	(4) standards for provision of home care services;
633.5 	(5) standards for medication management;
633.6 	(6) standards for supervision of home care services;
633.7 	(7) standards for client evaluation or assessment;
633.8 	(8) requirements for the involvement of a client's health care provider, the documentation 
633.9 	of health care providers' orders, if required, and the client's service plan;
633.10 	(9) standards for the maintenance of accurate, current client records;
633.11 	(10) the establishment of basic and comprehensive levels of licenses based on services 
633.12 	provided; and
633.13 	(11) provisions to enforce these regulations and the home care bill of rights, including  
633.14 	provisions for issuing penalties and fines according to section 144A.474, subdivision 11, 
633.15 	for violations of sections 144A.43 to 144A.482, and of the home care bill of rights under 
633.16 	sections 144A.44 to 144A.441.

633.17 	Sec. 23. Minnesota Statutes 2016, section 144A.45, subdivision 2, is amended to read:
633.18 		Subd. 2.Regulatory functions.  The commissioner shall:
633.19 	(1) license, survey, and monitor without advance notice, home care providers in 
633.20 	accordance with sections 144A.43 to 144A.482;
633.21 	(2) survey every temporary licensee within one year of the temporary license issuance 
633.22 	date subject to the temporary licensee providing home care services to a client or clients;
633.23 	(3) survey all licensed home care providers on an interval that will promote the health 
633.24 	and safety of clients;
633.25 	(4) with the consent of the client, visit the home where services are being provided;
633.26 	(5) issue correction orders and assess civil penalties in accordance with section sections
633.27 	144.653, subdivisions 5 to 8, 144A.474, and 144A.475, for violations of sections 144A.43
633.28 	to 144A.482, and sections 144A.44 to 144A.441;
633.29 	(6) take action as authorized in section 144A.475; and
634.1 	(7) take other action reasonably required to accomplish the purposes of sections 144A.43
634.2 	to 144A.482.

634.3 	Sec. 24. Minnesota Statutes 2016, section 144A.474, subdivision 8, is amended to read:
634.4 		Subd. 8.Correction orders. (a) A correction order may be issued whenever the 
634.5 	commissioner finds upon survey or during a complaint investigation that a home care 
634.6 	provider, a managerial official, or an employee of the provider is not in compliance with 
634.7 	sections 144A.43 to 144A.482. The correction order shall cite the specific statute and 
634.8 	document areas of noncompliance and the time allowed for correction. In addition to issuing 
634.9 	a correction order, the commissioner may impose an immediate fine as provided in 
634.10 	subdivision 11.
634.11 	(b) The commissioner shall mail copies of any correction order to the last known address 
634.12 	of the home care provider, or electronically scan the correction order and e-mail it to the 
634.13 	last known home care provider e-mail address, within 30 calendar days after the survey exit 
634.14 	date. A copy of each correction order, the amount of any immediate fine issued, the correction 
634.15 	plan, and copies of any documentation supplied to the commissioner shall be kept on file 
634.16 	by the home care provider, and public documents shall be made available for viewing by 
634.17 	any person upon request. Copies may be kept electronically.
634.18 	(c) By the correction order date, the home care provider must document in the provider's 
634.19 	records any action taken to comply with the correction order. The commissioner may request 
634.20 	a copy of this documentation and the home care provider's action to respond to the correction 
634.21 	order in future surveys, upon a complaint investigation, and as otherwise needed.

634.22 	Sec. 25. Minnesota Statutes 2016, section 144A.474, subdivision 9, is amended to read:
634.23 		Subd. 9.Follow-up surveys. For providers that have Level 3 or Level 4 violations under 
634.24 	subdivision 11, or any violations determined to be widespread, the department shall conduct 
634.25 	a follow-up survey within 90 calendar days of the survey. When conducting a follow-up 
634.26 	survey, the surveyor will focus on whether the previous violations have been corrected and 
634.27 	may also address any new violations that are observed while evaluating the corrections that 
634.28 	have been made. If a new violation is identified on a follow-up survey, no fine will be 
634.29 	imposed unless it is not corrected on the next follow-up survey the surveyor shall issue a 
634.30 	correction order for the new violation and may impose an immediate fine for the new 
634.31 	violation.

635.1 	Sec. 26. Minnesota Statutes 2017 Supplement, section 144A.474, subdivision 11, is 
635.2 	amended to read:
635.3 		Subd. 11.Fines. (a) Fines and enforcement actions under this subdivision may be assessed 
635.4 	based on the level and scope of the violations described in paragraph (c) as follows:
635.5 	(1) Level 1, no fines or enforcement;
635.6 	(2) Level 2, fines ranging from $0 to $500, in addition to any of the enforcement 
635.7 	mechanisms authorized in section 144A.475 for widespread violations;
635.8 	(3) Level 3, fines ranging from $500 to $1,000, in addition to any of the enforcement 
635.9 	mechanisms authorized in section 144A.475; and
635.10 	(4) Level 4, fines ranging from $1,000 to $5,000, in addition to any of the enforcement 
635.11 	mechanisms authorized in section 144A.475.
635.12 	(b) Correction orders for violations are categorized by both level and scope and fines 
635.13 	shall be assessed as follows:
635.14 	(1) level of violation:
635.15 	(i) Level 1 is a violation that has no potential to cause more than a minimal impact on 
635.16 	the client and does not affect health or safety;
635.17 	(ii) Level 2 is a violation that did not harm a client's health or safety but had the potential 
635.18 	to have harmed a client's health or safety, but was not likely to cause serious injury, 
635.19 	impairment, or death;
635.20 	(iii) Level 3 is a violation that harmed a client's health or safety, not including serious 
635.21 	injury, impairment, or death, or a violation that has the potential to lead to serious injury, 
635.22 	impairment, or death; and
635.23 	(iv) Level 4 is a violation that results in serious injury, impairment, or death.
635.24 	(2) scope of violation:
635.25 	(i) isolated, when one or a limited number of clients are affected or one or a limited 
635.26 	number of staff are involved or the situation has occurred only occasionally;
635.27 	(ii) pattern, when more than a limited number of clients are affected, more than a limited 
635.28 	number of staff are involved, or the situation has occurred repeatedly but is not found to be 
635.29 	pervasive; and
635.30 	(iii) widespread, when problems are pervasive or represent a systemic failure that has 
635.31 	affected or has the potential to affect a large portion or all of the clients.
636.1 	(c) If the commissioner finds that the applicant or a home care provider required to be 
636.2 	licensed under sections 144A.43 to 144A.482 has not corrected violations by the date 
636.3 	specified in the correction order or conditional license resulting from a survey or complaint 
636.4 	investigation, the commissioner may impose a an additional fine for noncompliance with 
636.5 	a correction order. A notice of noncompliance with a correction order must be mailed to 
636.6 	the applicant's or provider's last known address. The noncompliance notice of noncompliance 
636.7 	with a correction order must list the violations not corrected and any fines imposed.
636.8 	(d) The license holder must pay the fines assessed on or before the payment date specified
636.9 	on a correction order or on a notice of noncompliance with a correction order. If the license 
636.10 	holder fails to fully comply with the order pay a fine by the specified date, the commissioner 
636.11 	may issue a secondlate payment fine or suspend the license until the license holder complies 
636.12 	by paying the fine pays all outstanding fines. A timely appeal shall stay payment of the late 
636.13 	payment fine until the commissioner issues a final order.
636.14 	(e) A license holder shall promptly notify the commissioner in writing when a violation 
636.15 	specified in the order a notice of noncompliance with a correction order is corrected. If upon 
636.16 	reinspection the commissioner determines that a violation has not been corrected as indicated 
636.17 	by the order notice of noncompliance with a correction order, the commissioner may issue 
636.18 	a second an additional fine for noncompliance with a notice of noncompliance with a 
636.19 	correction order. The commissioner shall notify the license holder by mail to the last known 
636.20 	address in the licensing record that a secondan additional fine has been assessed. The license 
636.21 	holder may appeal the second additional fine as provided under this subdivision.
636.22 	(f) A home care provider that has been assessed a fine under this subdivision or 
636.23 	subdivision 8 has a right to a reconsideration or a hearing under this section and chapter 14.
636.24 	(g) When a fine has been assessed, the license holder may not avoid payment by closing, 
636.25 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
636.26 	license holder shall be liable for payment of the fine.
636.27 	(h) In addition to any fine imposed under this section, the commissioner may assess 
636.28 	costs related to an investigation that results in a final order assessing a fine or other 
636.29 	enforcement action authorized by this chapter.
636.30 	(i) Fines collected under this subdivision shall be deposited in the state government 
636.31 	special revenue fund and credited to an account separate from the revenue collected under 
636.32 	section 144A.472. Subject to an appropriation by the legislature, the revenue from the fines 
636.33 	collected must be used by the commissioner for special projects to improve home care in 
636.34 	Minnesota as recommended by the advisory council established in section 144A.4799.

637.1 	Sec. 27. Minnesota Statutes 2016, section 144A.479, is amended by adding a subdivision 
637.2 	to read:
637.3 		Subd. 2a.Deceptive marketing and business practices. Deceptive marketing and 
637.4 	business practices by a home care provider are prohibited. For purposes of this subdivision, 
637.5 	it is a deceptive practice for a home care provider to engage in any conduct listed in section 
637.6 	144.6511.

637.7 	Sec. 28. Minnesota Statutes 2016, section 144A.4791, subdivision 10, is amended to read:
637.8 		Subd. 10.Termination of service plan. (a) Except as provided in section 144A.442, if 
637.9 	a home care provider terminates a service plan with a client, and the client continues to need 
637.10 	home care services, the home care provider shall provide the client and the client's 
637.11 	representative, if any, with a written notice of termination which includes the following 
637.12 	information:
637.13 	(1) the effective date of termination;
637.14 	(2) the reason for termination;
637.15 	(3) a list of known licensed home care providers in the client's immediate geographic 
637.16 	area;
637.17 	(4) a statement that the home care provider will participate in a coordinated transfer of 
637.18 	care of the client to another home care provider, health care provider, or caregiver, as 
637.19 	required by the home care bill of rights, section 144A.44, subdivision 1, clause (17);
637.20 	(5) the name and contact information of a person employed by the home care provider 
637.21 	with whom the client may discuss the notice of termination; and
637.22 	(6) if applicable, a statement that the notice of termination of home care services does 
637.23 	not constitute notice of termination of the housing with services contract with a housing 
637.24 	with services establishment.
637.25 	(b) When the home care provider voluntarily discontinues services to all clients, the 
637.26 	home care provider must notify the commissioner, lead agencies, and ombudsman for 
637.27 	long-term care about its clients and comply with the requirements in this subdivision.

637.28 	Sec. 29. Minnesota Statutes 2016, section 144A.53, subdivision 1, is amended to read:
637.29 		Subdivision 1.Powers. The director may:
637.30 	(a) Promulgate by rule, pursuant to chapter 14, and within the limits set forth in 
637.31 	subdivision 2, the methods by which complaints against health facilities, health care 
638.1 	providers, home care providers, or residential care homes, or administrative agencies are 
638.2 	to be made, reviewed, investigated, and acted upon; provided, however, that a fee may not 
638.3 	be charged for filing a complaint.
638.4 	(b) Recommend legislation and changes in rules to the state commissioner of health, 
638.5 	governor, administrative agencies or the federal government.
638.6 	(c) Investigate, upon a complaint or upon initiative of the director, any action or failure 
638.7 	to act by a health care provider, home care provider, residential care home, or a health 
638.8 	facility.
638.9 	(d) Request and receive access to relevant information, records, incident reports, or 
638.10 	documents in the possession of an administrative agency, a health care provider, a home 
638.11 	care provider, a residential care home, or a health facility, and issue investigative subpoenas 
638.12 	to individuals and facilities for oral information and written information, including privileged 
638.13 	information which the director deems necessary for the discharge of responsibilities. For 
638.14 	purposes of investigation and securing information to determine violations, the director 
638.15 	need not present a release, waiver, or consent of an individual. The identities of patients or 
638.16 	residents must be kept private as defined by section 13.02, subdivision 12.
638.17 	(e) Enter and inspect, at any time, a health facility or residential care home and be 
638.18 	permitted to interview staff; provided that the director shall not unduly interfere with or 
638.19 	disturb the provision of care and services within the facility or home or the activities of a 
638.20 	patient or resident unless the patient or resident consents.
638.21 	(f) Issue correction orders and assess civil fines pursuant to section for violations of 
638.22 	sections 144.651,144.653, 144A.10, 144A.44, 144A.45, and 626.557, Minnesota Rules, 
638.23 	chapters 4655, 4658, 4664, and 4665, or any other law which that provides for the issuance 
638.24 	of correction orders to health facilities or home care provider, or under section 144A.45.The 
638.25 	director may use the authority in section 144A.474, subdivision 11, to calculate the fine 
638.26 	amount. A facility's or home's refusal to cooperate in providing lawfully requested 
638.27 	information within the requested time period may also be grounds for a correction order or 
638.28 	fine at a Level 2 fine pursuant to section 144A.474, subdivision 11.
638.29 	(g) Recommend the certification or decertification of health facilities pursuant to Title 
638.30 	XVIII or XIX of the United States Social Security Act.
638.31 	(h) Assist patients or residents of health facilities or residential care homes in the 
638.32 	enforcement of their rights under Minnesota law.
639.1 	(i) Work with administrative agencies, health facilities, home care providers, residential 
639.2 	care homes, and health care providers and organizations representing consumers on programs 
639.3 	designed to provide information about health facilities to the public and to health facility 
639.4 	residents.

639.5 	Sec. 30. Minnesota Statutes 2016, section 144A.53, subdivision 4, is amended to read:
639.6 		Subd. 4.Referral of complaints. (a) If a complaint received by the director relates to 
639.7 	a matter more properly within the jurisdiction of law enforcement, an occupational licensing 
639.8 	board, or other governmental agency, the director shall promptly forward the complaint to 
639.9 	that agency appropriately and shall inform the complaining party of the forwarding. The
639.10 	(b) An agency shall promptly act in respect to the complaint, and shall inform the 
639.11 	complaining party and the director of its disposition. If a governmental agency receives a 
639.12 	complaint which is more properly within the jurisdiction of the director, it shall promptly 
639.13 	forward the complaint to the director, and shall inform the complaining party of the 
639.14 	forwarding.
639.15 	(c) If the director has reason to believe that an official or employee of an administrative 
639.16 	agency, a home care provider, residential care home, or health facility, or a client or resident 
639.17 	of any of these entities has acted in a manner warranting criminal or disciplinary proceedings, 
639.18 	the director shall refer the matter to the state commissioner of health, the commissioner of 
639.19 	human services, an appropriate prosecuting authority, or other appropriate agency.

639.20 	Sec. 31. Minnesota Statutes 2016, section 144A.53, is amended by adding a subdivision 
639.21 	to read:
639.22 		Subd. 5.Safety and quality improvement technical panel. The director shall establish 
639.23 	an expert technical panel to examine and make recommendations, on an ongoing basis, on 
639.24 	how to apply proven safety and quality improvement practices and infrastructure to settings 
639.25 	and providers that provide long-term services and supports. The technical panel must include 
639.26 	representation from nonprofit Minnesota-based organizations dedicated to patient safety or 
639.27 	innovation in health care safety and quality, Department of Health staff with expertise in 
639.28 	issues related to adverse health events, the University of Minnesota, organizations 
639.29 	representing long-term care providers and home care providers in Minnesota, national patient 
639.30 	safety experts, and other experts in the safety and quality improvement field. The technical 
639.31 	panel shall periodically provide recommendations to the legislature on legislative changes 
639.32 	needed to promote safety and quality improvement practices in long-term care settings and 
639.33 	with long-term care providers.

640.1 	Sec. 32. Minnesota Statutes 2016, section 144A.53, is amended by adding a subdivision 
640.2 	to read:
640.3 		Subd. 6.Training and operations panel. (a) The director shall establish a training and 
640.4 	operations panel within the Office of Health Facility Complaints to examine and make 
640.5 	recommendations, on an ongoing basis, on continual improvements to the operation of the 
640.6 	office. The training and operations panel shall be composed of office staff, including 
640.7 	investigators and intake and triage staff, one or more representatives of the commissioner's 
640.8 	office, and employees from any other divisions in the Department of Health with relevant 
640.9 	knowledge or expertise. The training and operations panel may also consult with employees 
640.10 	from other agencies in state government with relevant knowledge or expertise.
640.11 	(b) The training and operations panel shall examine and make recommendations to the 
640.12 	director and the commissioner regarding introducing or refining office systems, procedures, 
640.13 	and staff training in order to improve office and staff efficiency; enhance communications 
640.14 	between the office, health care facilities, home care providers, and residents or clients; and 
640.15 	provide for appropriate, effective protection for vulnerable adults through rigorous 
640.16 	investigations and enforcement of laws. Panel duties include but are not limited to:
640.17 	(1) developing the office's training processes to adequately prepare and support 
640.18 	investigators in performing their duties;
640.19 	(2) developing clear, consistent internal policies for conducting investigations as required 
640.20 	by federal law, including policies to ensure staff meet the deadlines in state and federal laws 
640.21 	for triaging, investigating, and making final dispositions of cases involving maltreatment, 
640.22 	and procedures for notifying the vulnerable adult, reporter, and facility of any delays in 
640.23 	investigations; communicating these policies to staff in a clear, timely manner; and 
640.24 	developing procedures to evaluate and modify these internal policies on an ongoing basis;
640.25 	(3) developing and refining quality control measures for the intake and triage processes, 
640.26 	through such practices as reviewing a random sample of the triage decisions made in case 
640.27 	reports or auditing a random sample of the case files to ensure the proper information is 
640.28 	being collected, the files are being properly maintained, and consistent triage and 
640.29 	investigations determinations are being made;
640.30 	(4) developing and maintaining systems and procedures to accurately determine the 
640.31 	situations in which the office has jurisdiction over a maltreatment allegation;
640.32 	(5) developing and maintaining audit procedures for investigations to ensure investigators 
640.33 	obtain and document information necessary to support decisions;
641.1 	(6) developing and maintaining procedures to, following a maltreatment determination, 
641.2 	clearly communicate the appeal or review rights of all parties upon final disposition; and
641.3 	(7) continuously upgrading the information on and utility of the office's Web site through 
641.4 	such steps as providing clear, detailed information about the appeal or review rights of 
641.5 	vulnerable adults, alleged perpetrators, and providers and facilities.

641.6 	Sec. 33. Minnesota Statutes 2016, section 144A.53, is amended by adding a subdivision 
641.7 	to read:
641.8 		Subd. 7.Posting maltreatment reports. (a) The director shall post on the Department 
641.9 	of Health Web site the following information for the past five years:
641.10 	(1) the public portions of all substantiated reports of maltreatment of a vulnerable adult 
641.11 	at a facility or by a provider for which the Department of Health is the lead investigative 
641.12 	agency under section 626.557; and
641.13 	(2) whether the facility or provider has requested reconsideration or initiated any type 
641.14 	of dispute resolution or appeal of a substantiated maltreatment report.
641.15 	(b) Following a reconsideration, dispute resolution, or appeal, the director must update 
641.16 	the information posted under this subdivision to reflect the results of the reconsideration, 
641.17 	dispute resolution, or appeal.
641.18 	(c) The information posted under this subdivision must be posted in coordination with 
641.19 	other divisions or sections at the Department of Health and in a manner that does not duplicate 
641.20 	information already published by the Department of Health, and must be posted in a format 
641.21 	that allows consumers to search the information by facility or provider name and by the 
641.22 	physical address of the facility or the local business address of the provider.

641.23 	Sec. 34. Minnesota Statutes 2016, section 144D.01, subdivision 1, is amended to read:
641.24 		Subdivision 1.Scope. As used in sections 144D.01 to 144D.06 this chapter, the following 
641.25 	terms have the meanings given them.

641.26 	Sec. 35. Minnesota Statutes 2016, section 144D.02, is amended to read:
641.27 	144D.02 REGISTRATION REQUIRED.
641.28 	No entity may establish, operate, conduct, or maintain a housing with services 
641.29 	establishment in this state without registering and operating as required in sections 144D.01
641.30 	to 144D.06 this chapter.

642.1 	Sec. 36. Minnesota Statutes 2017 Supplement, section 144D.04, subdivision 2, is amended 
642.2 	to read:
642.3 		Subd. 2.Contents of contract.  A housing with services contract, which need not be 
642.4 	entitled as such to comply with this section, shall include at least the following elements in 
642.5 	itself or through supporting documents or attachments:
642.6 	(1) the name, street address, and mailing address of the establishment;
642.7 	(2) the name and mailing address of the owner or owners of the establishment and, if 
642.8 	the owner or owners is not a natural person, identification of the type of business entity of 
642.9 	the owner or owners;
642.10 	(3) the name and mailing address of the managing agent, through management agreement 
642.11 	or lease agreement, of the establishment, if different from the owner or owners;
642.12 	(4) the name and physical mailing address of at least one natural person who is authorized 
642.13 	to accept service of process on behalf of the owner or owners and managing agent;
642.14 	(5) a statement describing the registration and licensure status of the establishment and 
642.15 	any provider providing health-related or supportive services under an arrangement with the 
642.16 	establishment;
642.17 	(6) the term of the contract;
642.18 	(7) a description of the services to be provided to the resident in the base rate to be paid 
642.19 	by the resident, including a delineation of the portion of the base rate that constitutes rent 
642.20 	and a delineation of charges for each service included in the base rate;
642.21 	(8) a description of any additional services, including home care services, available for 
642.22 	an additional fee from the establishment directly or through arrangements with the 
642.23 	establishment, and a schedule of fees charged for these services;
642.24 	(9) a conspicuous notice informing the tenant of the policy concerning the conditions 
642.25 	under which and the process through which the contract may be modified, amended, or 
642.26 	terminated, including whether a move to a different room or sharing a room would be 
642.27 	required in the event that the tenant can no longer pay the current rent;
642.28 	(10) a description of the establishment's complaint resolution process available to residents 
642.29 	including the toll-free complaint line for the Office of Ombudsman for Long-Term Care;
642.30 	(11) the resident's designated representative, if any;
642.31 	(12) the establishment's referral procedures if the contract is terminated;
643.1 	(13) requirements of residency used by the establishment to determine who may reside 
643.2 	or continue to reside in the housing with services establishment;
643.3 	(14) billing and payment procedures and requirements;
643.4 	(15) a statement regarding the ability of a resident to receive services from service 
643.5 	providers with whom the establishment does not have an arrangement;
643.6 	(16) a statement regarding the availability of public funds for payment for residence or 
643.7 	services in the establishment; and
643.8 	(17) a statement regarding the availability of and contact information for long-term care 
643.9 	consultation services under section 256B.0911 in the county in which the establishment is 
643.10 	located;
643.11 	(18) a statement that a resident has the right to request a reasonable accommodation; 
643.12 	and
643.13 	(19) a statement describing the conditions under which a contract may be amended.

643.14 	Sec. 37. Minnesota Statutes 2016, section 144D.04, is amended by adding a subdivision 
643.15 	to read:
643.16 		Subd. 2b.Changes to contract.   The housing with services establishment must provide 
643.17 	prompt written notice to the resident or resident's legal representative of a new owner or 
643.18 	manager of the  housing with services establishment, and the name and physical mailing 
643.19 	address of any new or additional natural person not identified in the admission contract who 
643.20 	is authorized to accept service of process.

643.21 	Sec. 38. [144D.041] DECEPTIVE MARKETING AND BUSINESS PRACTICES.
643.22 	Housing with services establishments are subject to the same prohibitions against 
643.23 	deceptive practices as are health care facilities under section 144.6511.

643.24 	Sec. 39. [144D.044] INFORMATION REQUIRED TO BE POSTED.
643.25 	A housing with services establishment must post conspicuously within the establishment, 
643.26 	in a location accessible to public view, the following information:
643.27 	(1) the name, mailing address, and contact information of the current owner or owners 
643.28 	of the establishment and, if the owner or owners are not natural persons, identification of 
643.29 	the type of business entity of the owner or owners;
644.1 	(2) the name, mailing address, and contact information of the managing agent, through 
644.2 	management agreement or lease agreement, of the establishment, if different from the owner 
644.3 	or owners, and the name and contact information of the on-site manager, if any; and
644.4 	(3) the name and mailing address of at least one natural person who is authorized to 
644.5 	accept service of process on behalf of the owner or owners and managing agent.

644.6 	Sec. 40. Minnesota Statutes 2016, section 144D.09, is amended to read:
644.7 	144D.09 TERMINATION OF LEASE.
644.8 		Subdivision 1.Notice required. The (a) A housing with services establishment shall 
644.9 	include with notice of termination of lease information about how to contact the ombudsman 
644.10 	for long-term care, including the address and telephone number along with a statement of 
644.11 	how to request problem-solving assistance.that terminates a resident's lease must provide 
644.12 	the resident with a notice that includes:
644.13 	(1) a detailed explanation of the reason for the termination;
644.14 	(2) the date termination will occur;
644.15 	(3) the location to which the resident will relocate, if known;
644.16 	(4) a statement that the resident may contact the Office of the Ombudsman for Long-Term 
644.17 	Care regarding the lease termination issues and the address and telephone number of the 
644.18 	Office of Ombudsman for Long-Term Care and the protection and advocacy agency;
644.19 	(5) a statement that the resident has the right to request a meeting with the owner or 
644.20 	manager of the housing with services establishment to discuss the lease termination and 
644.21 	attempt to avoid termination of the lease; and
644.22 	(6) a statement that the resident has the right to avoid termination of the lease for 
644.23 	nonpayment of rent by paying the rent in full within ten days of receiving written notice of 
644.24 	nonpayment.
644.25 		Subd. 2.Transfer of information to new residence. Prior to a resident's involuntary 
644.26 	relocation due to a termination of a lease, the housing with services establishment must 
644.27 	provide to the facility or establishment to which the resident is relocating all information 
644.28 	known to the establishment and related to the resident that is necessary to ensure continuity 
644.29 	of care and services, provided the resident consents to the transfer of information. At a 
644.30 	minimum, the information transferred must include:
644.31 	(1) the resident's full name, date of birth, and insurance information;
645.1 	(2) the name, telephone number, and address of the resident's representative, if any;
645.2 	(3) the resident's current documented diagnoses;
645.3 	(4) the resident's known allergies;
645.4 	(5) the name and telephone number of the resident's physician, advanced practice 
645.5 	registered nurse, or physician assistant and their current medical orders, if known;
645.6 	(6) all medication administration records;
645.7 	(7) the most recent resident assessment; and
645.8 	(8) copies of health care directives, "do not resuscitate" orders, and any guardianship 
645.9 	orders or powers of attorney.

645.10 	Sec. 41. [144D.095] TERMINATION OF SERVICES.
645.11 	A termination of services initiated by an arranged home care provider is governed by 
645.12 	section 144A.442.

645.13 	Sec. 42. Minnesota Statutes 2016, section 144G.01, subdivision 1, is amended to read:
645.14 		Subdivision 1.Scope; other definitions. For purposes of sections 144G.01 to 144G.05
645.15 	this chapter, the following definitions apply. In addition, the definitions provided in section 
645.16 	144D.01 also apply to sections 144G.01 to 144G.05 this chapter.

645.17 	Sec. 43. [144G.07] TERMINATION OF LEASE.
645.18 	A lease termination initiated by a registered housing with services establishment using 
645.19 	"assisted living" is governed by section 144D.09.

645.20 	Sec. 44. [144G.08] TERMINATION OF SERVICES.
645.21 	A termination of services initiated by an arranged home care provider as defined in 
645.22 	section 144D.01, subdivision 2a, is governed by section 144A.442.

645.23 	Sec. 45. Minnesota Statutes 2016, section 325F.71, is amended to read:
645.24 	325F.71 SENIOR CITIZENS, VULNERABLE ADULTS, AND DISABLED
645.25 	PERSONS WITH DISABILITIES; ADDITIONAL CIVIL PENALTY FOR 
645.26 	DECEPTIVE ACTS.
645.27 		Subdivision 1.Definitions. For the purposes of this section, the following words have 
645.28 	the meanings given them:
646.1 	(a) "Senior citizen" means a person who is 62 years of age or older.
646.2 	(b) "Disabled Person with a disability" means a person who has an impairment of physical 
646.3 	or mental function or emotional status that substantially limits one or more major life 
646.4 	activities.
646.5 	(c) "Major life activities" means functions such as caring for one's self, performing 
646.6 	manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working.
646.7 	(d) "Vulnerable adult" has the meaning given in section 626.5572, subdivision 21, except 
646.8 	that vulnerable adult does not include an inpatient of a hospital licensed under sections 
646.9 	144.50 to 144.58.
646.10 		Subd. 2.Supplemental civil penalty. (a) In addition to any liability for a civil penalty 
646.11 	pursuant to sections 325D.43 to 325D.48, regarding deceptive trade practices; 325F.67, 
646.12 	regarding false advertising; and 325F.68 to 325F.70, regarding consumer fraud; a person 
646.13 	who engages in any conduct prohibited by those statutes, and whose conduct is perpetrated 
646.14 	against one or more senior citizens, vulnerable adults, or disabled persons with a disability, 
646.15 	is liable for an additional civil penalty not to exceed $10,000 for each violation, if one or 
646.16 	more of the factors in paragraph (b) are present.
646.17 	(b) In determining whether to impose a civil penalty pursuant to paragraph (a), and the 
646.18 	amount of the penalty, the court shall consider, in addition to other appropriate factors, the 
646.19 	extent to which one or more of the following factors are present:
646.20 	(1) whether the defendant knew or should have known that the defendant's conduct was 
646.21 	directed to one or more senior citizens, vulnerable adults, or disabled persons with a 
646.22 	disability;
646.23 	(2) whether the defendant's conduct caused one or more senior citizens, vulnerable adults,
646.24 	or disabled persons with a disability to suffer: loss or encumbrance of a primary residence, 
646.25 	principal employment, or source of income; substantial loss of property set aside for 
646.26 	retirement or for personal or family care and maintenance; substantial loss of payments 
646.27 	received under a pension or retirement plan or a government benefits program; or assets 
646.28 	essential to the health or welfare of the senior citizen, vulnerable adult, or disabled person
646.29 	with a disability;
646.30 	(3) whether one or more senior citizens, vulnerable adults, or disabled persons with a 
646.31 	disability are more vulnerable to the defendant's conduct than other members of the public 
646.32 	because of age, poor health or infirmity, impaired understanding, restricted mobility, or 
647.1 	disability, and actually suffered physical, emotional, or economic damage resulting from 
647.2 	the defendant's conduct; or
647.3 	(4) whether the defendant's conduct caused senior citizens, vulnerable adults, or disabled
647.4 	persons with a disability to make an uncompensated asset transfer that resulted in the person 
647.5 	being found ineligible for medical assistance.
647.6 		Subd. 3.Restitution to be given priority. Restitution ordered pursuant to the statutes 
647.7 	listed in subdivision 2 shall be given priority over imposition of civil penalties designated 
647.8 	by the court under this section.
647.9 		Subd. 4.Private remedies. A person injured by a violation of this section may bring a 
647.10 	civil action and recover damages, together with costs and disbursements, including costs 
647.11 	of investigation and reasonable attorney's fees, and receive other equitable relief as 
647.12 	determined by the court.

647.13 	Sec. 46. Minnesota Statutes 2016, section 609.2231, subdivision 8, is amended to read:
647.14 		Subd. 8.Vulnerable adults. (a) As used in this subdivision, "vulnerable adult" has the 
647.15 	meaning given in section 609.232, subdivision 11.
647.16 	(b) Whoever assaults and inflicts demonstrable bodily harm on a vulnerable adult, 
647.17 	knowing or having reason to know that the person is a vulnerable adult, is guilty of a gross 
647.18 	misdemeanor.
647.19 	(c) A person who uses restraints on a vulnerable adult does not violate this subdivision 
647.20 	if (1) the person complies with applicable requirements in state and federal law regarding 
647.21 	the use of restraints; and (2) any force applied in imposing restraints is reasonable.

647.22 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to crimes 
647.23 	committed on or after that date.

647.24 	Sec. 47. Minnesota Statutes 2016, section 626.557, subdivision 3, is amended to read:
647.25 		Subd. 3.Timing of report. (a) A mandated reporter who has reason to believe that a 
647.26 	vulnerable adult is being or has been maltreated, or who has knowledge that a vulnerable 
647.27 	adult has sustained a physical injury which is not reasonably explained shall immediately
647.28 	report the information to the common entry point as soon as possible but in no event longer 
647.29 	than 24 hours. If an individual is a vulnerable adult solely because the individual is admitted 
647.30 	to a facility, a mandated reporter is not required to report suspected maltreatment of the 
647.31 	individual that occurred prior to admission, unless:
648.1 	(1) the individual was admitted to the facility from another facility and the reporter has 
648.2 	reason to believe the vulnerable adult was maltreated in the previous facility; or
648.3 	(2) the reporter knows or has reason to believe that the individual is a vulnerable adult 
648.4 	as defined in section 626.5572, subdivision 21, paragraph (a), clause (4).
648.5 	(b) A person not required to report under the provisions of this section may voluntarily 
648.6 	report as described above.
648.7 	(c) Nothing in this section requires a report of known or suspected maltreatment, if the 
648.8 	reporter knows or has reason to know that a report has been made to the common entry 
648.9 	point.
648.10 	(d) Nothing in this section shall preclude a reporter from also reporting to a law 
648.11 	enforcement agency.
648.12 	(e) A mandated reporter who knows or has reason to believe that an error under section 
648.13 	626.5572, subdivision 17, paragraph (c), clause (5), occurred must make a report under this 
648.14 	subdivision. If the reporter or a facility, at any time believes that an investigation by a lead 
648.15 	investigative agency will determine or should determine that the reported error was not 
648.16 	neglect according to the criteria under section 626.5572, subdivision 17, paragraph (c), 
648.17 	clause (5), the reporter or facility may provide to the common entry point or directly to the 
648.18 	lead investigative agency information explaining how the event meets the criteria under 
648.19 	section 626.5572, subdivision 17, paragraph (c), clause (5). The lead investigative agency 
648.20 	shall consider this information when making an initial disposition of the report under 
648.21 	subdivision 9c.

648.22 	Sec. 48. Minnesota Statutes 2016, section 626.557, subdivision 4, is amended to read:
648.23 		Subd. 4.Reporting. (a) Except as provided in paragraph (b), a mandated reporter shall 
648.24 	immediately make an oral report to the common entry point. The common entry point may 
648.25 	accept electronic reports submitted through a Web-based reporting system established by 
648.26 	the commissioner. Use of a telecommunications device for the deaf or other similar device 
648.27 	shall be considered an oral report. The common entry point may not require written reports. 
648.28 	To the extent possible, the report must be of sufficient content to identify the vulnerable 
648.29 	adult, the caregiver, the nature and extent of the suspected maltreatment, any evidence of 
648.30 	previous maltreatment, the name and address of the reporter, the time, date, and location of 
648.31 	the incident, and any other information that the reporter believes might be helpful in 
648.32 	investigating the suspected maltreatment. The common entry point must provide a way to 
648.33 	record that the reporter has electronic evidence to submit. A mandated reporter may disclose 
649.1 	not public data, as defined in section 13.02, and medical records under sections 144.291 to 
649.2 	144.298, to the extent necessary to comply with this subdivision.
649.3 	(b) A boarding care home that is licensed under sections 144.50 to 144.58 and certified 
649.4 	under Title 19 of the Social Security Act, a nursing home that is licensed under section 
649.5 	144A.02 and certified under Title 18 or Title 19 of the Social Security Act, or a hospital 
649.6 	that is licensed under sections 144.50 to 144.58 and has swing beds certified under Code 
649.7 	of Federal Regulations, title 42, section 482.66, may submit a report electronically to the 
649.8 	common entry point instead of submitting an oral report. The report may be a duplicate of 
649.9 	the initial report the facility submits electronically to the commissioner of health to comply 
649.10 	with the reporting requirements under Code of Federal Regulations, title 42, section 483.13.
649.11 	The commissioner of health may modify these reporting requirements to include items 
649.12 	required under paragraph (a) that are not currently included in the electronic reporting form.
649.13 	(c) All reports must be directed to the common entry point, including reports from 
649.14 	federally licensed facilities.

649.15 	Sec. 49. Minnesota Statutes 2016, section 626.557, subdivision 9a, is amended to read:
649.16 		Subd. 9a.Evaluation and referral of reports made to common entry point. (a) The 
649.17 	common entry point must screen the reports of alleged or suspected maltreatment for 
649.18 	immediate risk and make all necessary referrals as follows:
649.19 	(1) if the common entry point determines that there is an immediate need for emergency 
649.20 	adult protective services, the common entry point agency shall immediately notify the 
649.21 	appropriate county agency;
649.22 	(2) if the common entry point determines an immediate need exists for response by law 
649.23 	enforcement or if the report contains suspected criminal activity against a vulnerable adult, 
649.24 	the common entry point shall immediately notify the appropriate law enforcement agency;
649.25 	(3) the common entry point shall refer all reports of alleged or suspected maltreatment 
649.26 	to the appropriate lead investigative agency as soon as possible, but in any event no longer 
649.27 	than two working days;
649.28 	(4) if the report contains information about a suspicious death, the common entry point 
649.29 	shall immediately notify the appropriate law enforcement agencies, the local medical 
649.30 	examiner, and the ombudsman for mental health and developmental disabilities established 
649.31 	under section 245.92. Law enforcement agencies shall coordinate with the local medical 
649.32 	examiner and the ombudsman as provided by law; and
650.1 	(5) for reports involving multiple locations or changing circumstances, the common 
650.2 	entry point shall determine the county agency responsible for emergency adult protective 
650.3 	services and the county responsible as the lead investigative agency, using referral guidelines 
650.4 	established by the commissioner.
650.5 	(b) If the lead investigative agency receiving a report believes the report was referred 
650.6 	by the common entry point in error, the lead investigative agency shall immediately notify 
650.7 	the common entry point of the error, including the basis for the lead investigative agency's 
650.8 	belief that the referral was made in error. The common entry point shall review the 
650.9 	information submitted by the lead investigative agency and immediately refer the report to 
650.10 	the appropriate lead investigative agency.

650.11 	Sec. 50. Minnesota Statutes 2016, section 626.557, subdivision 9b, is amended to read:
650.12 		Subd. 9b.Response to reports. Law enforcement is the primary agency to conduct 
650.13 	investigations of any incident in which there is reason to believe a crime has been committed. 
650.14 	Law enforcement shall initiate a response immediately. If the common entry point notified 
650.15 	a county agency for emergency adult protective services, law enforcement shall cooperate 
650.16 	with that county agency when both agencies are involved and shall exchange data to the 
650.17 	extent authorized in subdivision 12b, paragraph (g) (k). County adult protection shall initiate 
650.18 	a response immediately. Each lead investigative agency shall complete the investigative 
650.19 	process for reports within its jurisdiction. A lead investigative agency, county, adult protective 
650.20 	agency, licensed facility, or law enforcement agency shall cooperate with other agencies in 
650.21 	the provision of protective services, coordinating its investigations, and assisting another 
650.22 	agency within the limits of its resources and expertise and shall exchange data to the extent 
650.23 	authorized in subdivision 12b, paragraph (g) (k). The lead investigative agency shall obtain 
650.24 	the results of any investigation conducted by law enforcement officials, and law enforcement 
650.25 	shall obtain the results of any investigation conducted by the lead investigative agency to 
650.26 	determine if criminal action is warranted. The lead investigative agency has the right to 
650.27 	enter facilities and inspect and copy records as part of investigations. The lead investigative 
650.28 	agency has access to not public data, as defined in section 13.02, and medical records under 
650.29 	sections 144.291 to 144.298, that are maintained by facilities to the extent necessary to 
650.30 	conduct its investigation. Each lead investigative agency shall develop guidelines for 
650.31 	prioritizing reports for investigation. Nothing in this subdivision alters the duty of the lead 
650.32 	investigative agency to serve as the agency responsible for investigating reports made under 
650.33 	this section.

651.1 	Sec. 51. Minnesota Statutes 2016, section 626.557, subdivision 9c, is amended to read:
651.2 		Subd. 9c.Lead investigative agency; notifications, dispositions, determinations. (a) 
651.3 	Upon request of the reporter, The lead investigative agency shall notify the reporter that it 
651.4 	has received the report, and provide information on the initial disposition of the report within 
651.5 	five business days of receipt of the report, provided that the notification will not endanger 
651.6 	the vulnerable adult or hamper the investigation.
651.7 	(b) Except to the extent prohibited by federal law, when the Department of Health is the 
651.8 	lead investigative agency, the agency must provide the following information to the 
651.9 	vulnerable adult or the vulnerable adult's guardian or health care agent, if known, within 
651.10 	five days after the initiation of an investigation, provided that the provision of the information 
651.11 	will not hamper the investigation or harm the vulnerable adult:
651.12 	(1) the maltreatment allegations by types: abuse, neglect, financial exploitation, and 
651.13 	drug diversion;
651.14 	(2) the name of the facility or other location at which alleged maltreatment occurred;
651.15 	(3) the dates of the alleged maltreatment if identified in the report at the time of the lead 
651.16 	investigative agency disclosure;
651.17 	(4) the name and contact information for the investigator or other information as requested 
651.18 	and allowed under law; and
651.19 	(5) confirmation of whether the lead investigative agency is investigating the matter 
651.20 	and, if so:
651.21 	(i) an explanation of the process;
651.22 	(ii) an estimated timeline for the investigation;
651.23 	(iii) a notification that the vulnerable adult or the vulnerable adult's guardian or health 
651.24 	care agent may electronically submit evidence to support the maltreatment report, including 
651.25 	but not limited to photographs, videos, and documents; and
651.26 	(iv) a statement that the lead investigative agency will provide an update on the 
651.27 	investigation upon request by the vulnerable adult or the vulnerable adult's guardian or 
651.28 	health care agent and a report when the investigation is concluded.
651.29 	(c) If the Department of Health is the lead investigative agency, the Department of Health 
651.30 	shall provide maltreatment information, to the extent allowed under state and federal law, 
651.31 	including any reports, upon request of the vulnerable adult that is the subject of a 
651.32 	maltreatment  report or upon request of that vulnerable adult's guardian or health care agent.
652.1 	(d) If the common entry point data indicates that the reporter has electronic evidence, 
652.2 	the lead investigative agency shall seek to receive such evidence prior to making a 
652.3 	determination that the lead investigative agency will not investigate the matter. Nothing in 
652.4 	this provision requires the lead investigative agency to stop investigating prior to receipt of 
652.5 	the electronic evidence nor prevents the lead investigative agency from closing the 
652.6 	investigation prior to receipt of the electronic evidence if, in the opinion of the investigator, 
652.7 	the evidence is not necessary to the determination.
652.8 	(e) The lead investigative agency may assign multiple reports of maltreatment for the 
652.9 	same or separate incidences related to the same vulnerable adult to the same investigator, 
652.10 	as deemed appropriate.
652.11 	(f) Reports related to the same vulnerable adult, the same incident, or the same alleged 
652.12 	perpetrator, facility, or licensee must be cross-referenced.
652.13 	(g) Upon conclusion of every investigation it conducts, the lead investigative agency 
652.14 	shall make a final disposition as defined in section 626.5572, subdivision 8.
652.15 	(c) (h) When determining whether the facility or individual is the responsible party for 
652.16 	substantiated maltreatment or whether both the facility and the individual are responsible 
652.17 	for substantiated maltreatment, the lead investigative agency shall consider at least the 
652.18 	following mitigating factors:
652.19 	(1) whether the actions of the facility or the individual caregivers were in accordance 
652.20 	with, and followed the terms of, an erroneous physician order, prescription, resident care 
652.21 	plan, or directive. This is not a mitigating factor when the facility or caregiver is responsible 
652.22 	for the issuance of the erroneous order, prescription, plan, or directive or knows or should 
652.23 	have known of the errors and took no reasonable measures to correct the defect before 
652.24 	administering care;
652.25 	(2) the comparative responsibility between the facility, other caregivers, and requirements 
652.26 	placed upon the employee, including but not limited to, the facility's compliance with related 
652.27 	regulatory standards and factors such as the adequacy of facility policies and procedures, 
652.28 	the adequacy of facility training, the adequacy of an individual's participation in the training, 
652.29 	the adequacy of caregiver supervision, the adequacy of facility staffing levels, and a 
652.30 	consideration of the scope of the individual employee's authority; and
652.31 	(3) whether the facility or individual followed professional standards in exercising 
652.32 	professional judgment.
653.1 	(d) (i) When substantiated maltreatment is determined to have been committed by an 
653.2 	individual who is also the facility license holder, both the individual and the facility must 
653.3 	be determined responsible for the maltreatment, and both the background study 
653.4 	disqualification standards under section 245C.15, subdivision 4, and the licensing actions 
653.5 	under section 245A.06 or 245A.07 apply.
653.6 	(e) (j) The lead investigative agency shall complete its final disposition within 60 calendar 
653.7 	days. If the lead investigative agency is unable to complete its final disposition within 60 
653.8 	calendar days, the lead investigative agency shall notify the following persons provided 
653.9 	that the notification will not endanger the vulnerable adult or hamper the investigation: (1) 
653.10 	the vulnerable adult or the vulnerable adult's guardian or health care agent, when known, 
653.11 	if the lead investigative agency knows them to be aware of the investigation; and (2) the 
653.12 	facility, where applicable. The notice shall contain the reason for the delay and the projected 
653.13 	completion date. If the lead investigative agency is unable to complete its final disposition 
653.14 	by a subsequent projected completion date, the lead investigative agency shall again notify 
653.15 	the vulnerable adult or the vulnerable adult's guardian or health care agent, when known if 
653.16 	the lead investigative agency knows them to be aware of the investigation, and the facility, 
653.17 	where applicable, of the reason for the delay and the revised projected completion date 
653.18 	provided that the notification will not endanger the vulnerable adult or hamper the 
653.19 	investigation. The lead investigative agency must notify the health care agent of the 
653.20 	vulnerable adult only if the health care agent's authority to make health care decisions for 
653.21 	the vulnerable adult is currently effective under section 145C.06 and not suspended under 
653.22 	section 524.5-310and the investigation relates to a duty assigned to the health care agent 
653.23 	by the principal. A lead investigative agency's inability to complete the final disposition 
653.24 	within 60 calendar days or by any projected completion date does not invalidate the final 
653.25 	disposition.
653.26 	(f) (k) Within ten calendar days of completing the final disposition, the lead investigative 
653.27 	agency shall provide a copy of the public investigation memorandum under subdivision 
653.28 	12b, paragraph (b), clause (1) (d), when required to be completed under this section, to the 
653.29 	following persons:
653.30 	(1) the vulnerable adult, or the vulnerable adult's guardian or health care agent, if known, 
653.31 	unless the lead investigative agency knows that the notification would endanger the 
653.32 	well-being of the vulnerable adult;
653.33 	(2) the reporter, ifunless the reporter requested notificationotherwise when making the 
653.34 	report, provided this notification would not endanger the well-being of the vulnerable adult;
654.1 	(3) the alleged perpetrator, if known;
654.2 	(4) the facility; and
654.3 	(5) the ombudsman for long-term care, or the ombudsman for mental health and 
654.4 	developmental disabilities, as appropriate;
654.5 	(6) law enforcement; and
654.6 	(7) the county attorney, as appropriate.
654.7 	(g) (l) If, as a result of a reconsideration, review, or hearing, the lead investigative agency 
654.8 	changes the final disposition, or if a final disposition is changed on appeal, the lead 
654.9 	investigative agency shall notify the parties specified in paragraph (f) (h).
654.10 	(h) (m) The lead investigative agency shall notify the vulnerable adult who is the subject 
654.11 	of the report or the vulnerable adult's guardian or health care agent, if known, and any person 
654.12 	or facility determined to have maltreated a vulnerable adult, of their appeal or review rights 
654.13 	under this section or section 256.021.
654.14 	(i) (n) The lead investigative agency shall routinely provide investigation memoranda 
654.15 	for substantiated reports to the appropriate licensing boards. These reports must include the 
654.16 	names of substantiated perpetrators. The lead investigative agency may not provide 
654.17 	investigative memoranda for inconclusive or false reports to the appropriate licensing boards 
654.18 	unless the lead investigative agency's investigation gives reason to believe that there may 
654.19 	have been a violation of the applicable professional practice laws. If the investigation 
654.20 	memorandum is provided to a licensing board, the subject of the investigation memorandum 
654.21 	shall be notified and receive a summary of the investigative findings.
654.22 	(j) (o) In order to avoid duplication, licensing boards shall consider the findings of the 
654.23 	lead investigative agency in their investigations if they choose to investigate. This does not 
654.24 	preclude licensing boards from considering other information.
654.25 	(k) (p) The lead investigative agency must provide to the commissioner of human services 
654.26 	its final dispositions, including the names of all substantiated perpetrators. The commissioner 
654.27 	of human services shall establish records to retain the names of substantiated perpetrators.

654.28 	Sec. 52. Minnesota Statutes 2016, section 626.557, subdivision 12b, is amended to read:
654.29 		Subd. 12b.Data management. (a) In performing any of the duties of this section as a 
654.30 	lead investigative agency, the county social service agency shall maintain appropriate 
654.31 	records. Data collected by the county social service agency under this section are welfare 
654.32 	data under section 13.46. Notwithstanding section 13.46, subdivision 1, paragraph (a), data 
655.1 	under this paragraph that are inactive investigative data on an individual who is a vendor 
655.2 	of services are private data on individuals, as defined in section 13.02. The identity of the 
655.3 	reporter may only be disclosed as provided in paragraph (c) (g).
655.4 	(b) Data maintained by the common entry point are confidential private data on 
655.5 	individuals or protected nonpublic data as defined in section 13.02, provided that the name 
655.6 	of the reporter is confidential data on individuals. Notwithstanding section 138.163, the 
655.7 	common entry point shall maintain data for three calendar years after date of receipt and 
655.8 	then destroy the data unless otherwise directed by federal requirements.
655.9 	(b) (c) The commissioners of health and human services shall prepare an investigation 
655.10 	memorandum for each report alleging maltreatment investigated under this section. County 
655.11 	social service agencies must maintain private data on individuals but are not required to 
655.12 	prepare an investigation memorandum. During an investigation by the commissioner of 
655.13 	health or the commissioner of human services, data collected under this section are 
655.14 	confidential data on individuals or protected nonpublic data as defined in section 13.02, 
655.15 	provided that data, other than data on the reporter, may be shared with the vulnerable adult 
655.16 	or guardian or health care agent if the lead investigative agency determines that sharing of 
655.17 	the data is needed to protect the vulnerable adult. Upon completion of the investigation, the 
655.18 	data are classified as provided in clauses (1) to (3) and paragraph (c) paragraphs (d) to (g).
655.19 	(1)(d) The investigation memorandum must contain the following data, which are public:
655.20 	(i) (1) the name of the facility investigated;
655.21 	(ii) (2) a statement of the nature of the alleged maltreatment;
655.22 	(iii) (3) pertinent information obtained from medical or other records reviewed;
655.23 	(iv) (4) the identity of the investigator;
655.24 	(v) (5) a summary of the investigation's findings;
655.25 	(vi) (6) statement of whether the report was found to be substantiated, inconclusive, 
655.26 	false, or that no determination will be made;
655.27 	(vii) (7) a statement of any action taken by the facility;
655.28 	(viii) (8) a statement of any action taken by the lead investigative agency; and
655.29 	(ix) (9) when a lead investigative agency's determination has substantiated maltreatment, 
655.30 	a statement of whether an individual, individuals, or a facility were responsible for the 
655.31 	substantiated maltreatment, if known.
656.1 	The investigation memorandum must be written in a manner which protects the identity 
656.2 	of the reporter and of the vulnerable adult and may not contain the names or, to the extent 
656.3 	possible, data on individuals or private data on individuals listed in clause (2) paragraph 
656.4 	(e).
656.5 	(2) (e) Data on individuals collected and maintained in the investigation memorandum 
656.6 	are private data on individuals, including:
656.7 	(i) (1) the name of the vulnerable adult;
656.8 	(ii) (2) the identity of the individual alleged to be the perpetrator;
656.9 	(iii)(3) the identity of the individual substantiated as the perpetrator; and
656.10 	(iv) (4) the identity of all individuals interviewed as part of the investigation.
656.11 	(3) (f) Other data on individuals maintained as part of an investigation under this section 
656.12 	are private data on individuals upon completion of the investigation.
656.13 	(c)(g) After the assessment or investigation is completed, the name of the reporter must 
656.14 	be confidential., except:
656.15 	(1) the subject of the report may compel disclosure of the name of the reporter only with 
656.16 	the consent of the reporter; or
656.17 	(2) upon a written finding by a court that the report was false and there is evidence that 
656.18 	the report was made in bad faith.
656.19 	This subdivision does not alter disclosure responsibilities or obligations under the Rules 
656.20 	of Criminal Procedure, except that where the identity of the reporter is relevant to a criminal 
656.21 	prosecution, the district court shall do an in-camera review prior to determining whether to 
656.22 	order disclosure of the identity of the reporter.
656.23 	(d) (h) Notwithstanding section 138.163, data maintained under this section by the 
656.24 	commissioners of health and human services must be maintained under the following 
656.25 	schedule and then destroyed unless otherwise directed by federal requirements:
656.26 	(1) data from reports determined to be false, maintained for three years after the finding 
656.27 	was made;
656.28 	(2) data from reports determined to be inconclusive, maintained for four years after the 
656.29 	finding was made;
656.30 	(3) data from reports determined to be substantiated, maintained for seven years after 
656.31 	the finding was made; and
657.1 	(4) data from reports which were not investigated by a lead investigative agency and for 
657.2 	which there is no final disposition, maintained for three years from the date of the report.
657.3 	(e) (i) The commissioners of health and human services shall annually publish on their 
657.4 	Web sites the number and type of reports of alleged maltreatment involving licensed facilities 
657.5 	reported under this section, the number of those requiring investigation under this section, 
657.6 	and the resolution of those investigations. On a biennial basis, the commissioners of health 
657.7 	and human services shall jointly report the following information to the legislature and the 
657.8 	governor:
657.9 	(1) the number and type of reports of alleged maltreatment involving licensed facilities 
657.10 	reported under this section, the number of those requiring investigations under this section, 
657.11 	the resolution of those investigations, and which of the two lead agencies was responsible;
657.12 	(2) trends about types of substantiated maltreatment found in the reporting period;
657.13 	(3) if there are upward trends for types of maltreatment substantiated, recommendations 
657.14 	for preventing, addressing, and responding to them substantiated maltreatment;
657.15 	(4) efforts undertaken or recommended to improve the protection of vulnerable adults;
657.16 	(5) whether and where backlogs of cases result in a failure to conform with statutory 
657.17 	time frames and recommendations for reducing backlogs if applicable;
657.18 	(6) recommended changes to statutes affecting the protection of vulnerable adults; and
657.19 	(7) any other information that is relevant to the report trends and findings.
657.20 	(f) (j) Each lead investigative agency must have a record retention policy.
657.21 	(g) (k) Lead investigative agencies, prosecuting authorities, and law enforcement agencies 
657.22 	may exchange not public data, as defined in section 13.02, if the agency or authority 
657.23 	requesting the data determines that the data are pertinent and necessary to the requesting 
657.24 	agency in initiating, furthering, or completing an investigation under this section. Data 
657.25 	collected under this section must be made available to prosecuting authorities and law 
657.26 	enforcement officials, local county agencies, and licensing agencies investigating the alleged 
657.27 	maltreatment under this section. The lead investigative agency shall exchange not public 
657.28 	data with the vulnerable adult maltreatment review panel established in section 256.021 if 
657.29 	the data are pertinent and necessary for a review requested under that section. 
657.30 	Notwithstanding section 138.17, upon completion of the review, not public data received 
657.31 	by the review panel must be destroyed.
658.1 	(h) (l) Each lead investigative agency shall keep records of the length of time it takes to 
658.2 	complete its investigations.
658.3 	(i) (m) Notwithstanding paragraph (a) or (b), a lead investigative agency may share 
658.4 	common entry point or investigative data  and may notify other affected parties, including 
658.5 	the vulnerable adult and their authorized representative, if the lead investigative agency has 
658.6 	reason to believe maltreatment has occurred and determines the information will safeguard 
658.7 	the well-being of the affected parties or dispel widespread rumor or unrest in the affected 
658.8 	facility.
658.9 	(j) (n) Under any notification provision of this section, where federal law specifically 
658.10 	prohibits the disclosure of patient identifying information, a lead investigative agency may 
658.11 	not provide any notice unless the vulnerable adult has consented to disclosure in a manner 
658.12 	which conforms to federal requirements.

658.13 	Sec. 53. Minnesota Statutes 2016, section 626.557, subdivision 14, is amended to read:
658.14 		Subd. 14.Abuse prevention plans. (a) Each facility, except home health agencies and 
658.15 	personal care attendant services providers assistance provider agencies, shall establish and 
658.16 	enforce an ongoing written abuse prevention plan. The plan shall contain an assessment of 
658.17 	the physical plant, its environment, and its population identifying factors which may 
658.18 	encourage or permit abuse, and a statement of specific measures to be taken to minimize 
658.19 	the risk of abuse. The plan shall comply with any rules governing the plan promulgated by 
658.20 	the licensing agency.
658.21 	(b) Each facility, including a home health care agency and personal care attendant 
658.22 	services providers, shall develop an individual abuse prevention plan for each vulnerable 
658.23 	adult residing there or receiving services from them. The plan shall contain an individualized 
658.24 	assessment of: (1) the person's susceptibility to abuse by other individuals, including other 
658.25 	vulnerable adults; (2) the person's risk of abusing other vulnerable adults; and (3) statements 
658.26 	of the specific measures to be taken to minimize the risk of abuse to that person and other 
658.27 	vulnerable adults. For the purposes of this paragraph, the term "abuse" includes self-abuse.
658.28 	(c) If the facility, except home health agencies and personal care attendant services 
658.29 	providers, knows that the vulnerable adult has committed a violent crime or an act of physical 
658.30 	aggression toward others, the individual abuse prevention plan must detail the measures to 
658.31 	be taken to minimize the risk that the vulnerable adult might reasonably be expected to pose 
658.32 	to visitors to the facility and persons outside the facility, if unsupervised. Under this section, 
658.33 	a facility knows of a vulnerable adult's history of criminal misconduct or physical aggression 
658.34 	if it receives such information from a law enforcement authority or through a medical record 
659.1 	prepared by another facility, another health care provider, or the facility's ongoing 
659.2 	assessments of the vulnerable adult.
659.3 	(d) The commissioner of health must issue a correction order and may impose an 
659.4 	immediate fine in an amount equal to the amount listed in Minnesota Rules, part 4658.0193, 
659.5 	item E, upon a finding that the facility has failed to comply with this subdivision.

659.6 	Sec. 54. Minnesota Statutes 2016, section 626.557, subdivision 17, is amended to read:
659.7 		Subd. 17.Retaliation prohibited. (a) A facility or person shall not retaliate against any 
659.8 	person who reports in good faith suspected maltreatment pursuant to this section, or against 
659.9 	a vulnerable adult with respect to whom a report is made, because of the report.
659.10 	(b) In addition to any remedies allowed under sections 181.931 to 181.935, any facility 
659.11 	or person which retaliates against any person because of a report of suspected maltreatment 
659.12 	is liable to that person for actual damages, punitive damages up to $10,000, and attorney 
659.13 	fees.
659.14 	(c) There shall be a rebuttable presumption that any adverse action, as defined below, 
659.15 	within 90 days of a report, is retaliatory. For purposes of this clause paragraph, the term 
659.16 	"adverse action" refers to action taken by a facility or person involved in a report against 
659.17 	the person making the report or the person with respect to whom the report was made because 
659.18 	of the report, and includes, but is not limited to:
659.19 	(1) discharge or transfer from the facility;
659.20 	(2) discharge from or termination of employment;
659.21 	(3) demotion or reduction in remuneration for services;
659.22 	(4) restriction or prohibition of access to the facility or its residents; or
659.23 	(5) any restriction of rights set forth in section 144.651, 144A.44, or 144A.441.

659.24 	Sec. 55. ASSISTED LIVING LICENSURE AND DEMENTIA CARE TASK FORCE.
 659.25 		Subdivision 1.Creation. (a) The Assisted Living Licensure and Dementia Care Task 
659.26 	Force consists of 15 members, including the following:
659.27 	(1) one senator appointed by the majority leader;
659.28 	(2) one senator appointed by the minority leader;
659.29 	(3) one member of the house of representatives appointed by the speaker of the house;
659.30 	(4) one member of the house of representatives appointed by the minority leader;
660.1 	(5) the ombudsman for long-term care or a designee;
660.2 	(6) the ombudsman for mental health and developmental disabilities or a designee;
660.3 	(7) one member appointed by ARRM;
660.4 	(8) one member appointed by AARP Minnesota;
660.5 	(9) one member appointed by the Alzheimer's Association Minnesota-North Dakota  
660.6 	Chapter;
660.7 	(10) one member appointed by Elder Voice Family Advocates;
660.8 	(11) one member appointed by Minnesota Elder Justice Center;
660.9 	(12) one member appointed by Care Providers of Minnesota;
660.10 	(13) one member appointed by LeadingAge Minnesota;
660.11 	(14) one member appointed by Minnesota HomeCare Association; and
660.12 	(15) one member appointed by the Minnesota Council on Disability.
660.13 	(b) The appointing authorities must appoint members by July 1, 2018.
660.14 	(c) The ombudsman for long-term care or a designee shall act as chair of the task force 
660.15 	and convene the first meeting no later than August 1, 2018.
660.16 		Subd. 2.Duties; recommendations. (a) The assisted living and dementia care licensing 
660.17 	task force shall consider and make recommendations on a new regulatory framework for 
660.18 	assisted living establishments and dementia care. In developing the licensing framework, 
660.19 	the task force must address at least the following:
660.20 	(1) the appropriate level of regulation, including licensure, registration, or certification;
660.21 	(2) coordination of care;
660.22 	(3) the scope of care to be provided and limits on acuity levels of residents;
660.23 	(4) consumer rights;
660.24 	(5) building design and physical environment;
660.25 	(6) dietary services;
660.26 	(7) support services;
660.27 	(8) transition planning;
660.28 	(9) the installation and use of electronic monitoring in settings in which assisted living 
660.29 	or dementia care services are provided;
661.1 	(10) staff training and qualifications;
661.2 	(11) options for the engagement of seniors and their families;
661.3 	(12) notices and financial requirements;
661.4 	(13) compliance with federal Medicaid waiver requirements for home and 
661.5 	community-based services settings;
661.6 	(14) policies for providing advance notice to patients and residents of changes in services 
661.7 	or charges unrelated to changes in patient or resident service or care needs;
661.8 	(15) survey frequency for home care providers;
661.9 	(16) terminations of services and lease terminations;
661.10 	(17) appeals of terminations of services and leases; and
661.11 	(18) relocations within a housing with services establishment or assisted living setting.
661.12 	(b) The task force shall also:
661.13 	(1) develop standards in the following areas that nursing homes, boarding care homes, 
661.14 	and housing with services establishments offering care for clients diagnosed with Alzheimer's 
661.15 	disease or other dementias must meet in order to obtain dementia care certification, including 
661.16 	staffing, egress control, access to secured outdoor spaces, specialized therapeutic activities, 
661.17 	and specialized life enrichment programming;
661.18 	(2) develop requirements for disclosing dementia care certification standards to 
661.19 	consumers; and
661.20 	(3) develop mechanisms for enforcing dementia care certification standards.
661.21 	(c) Facilities and providers licensed by the commissioner of human services shall be 
661.22 	exempt from licensing requirements for assisted living recommended under this section.
661.23 		Subd. 3.Meetings. The commissioner of health or a designee shall convene the first 
661.24 	meeting of the task force no later than August 1, 2018. The members of the task force shall 
661.25 	elect a chair from among the task force's members at the first meeting, and the commissioner 
661.26 	of health or a designee shall serve as the task force's chair until a chair is elected. Meetings 
661.27 	of the task force shall be open to the public.
661.28 		Subd. 4.Compensation. Members of the task force appointed under subdivision 1, 
661.29 	paragraph (b), shall serve without compensation or reimbursement for expenses.
661.30 		Subd. 5.Administrative support. The commissioner of health shall provide 
661.31 	administrative support for the task force and arrange meeting space.
662.1 		Subd. 6.Report. By February 1, 2019, the task force must submit an interim report with 
662.2 	findings, recommendations, and draft legislation to the chairs and ranking minority members 
662.3 	of the legislative committees with jurisdiction over health and human services policy and 
662.4 	finance. By January 15, 2020, the task force must submit a final report with findings, 
662.5 	recommendations, and draft legislation to the chairs and ranking minority members of the 
662.6 	legislative committees with jurisdiction over health and human services policy and finance.
662.7 		Subd. 7.Expiration. The task force expires January 16, 2020, or the day after the task 
662.8 	force submits the final report required under subdivision 6, whichever is later.

662.9 	Sec. 56. ASSISTED LIVING REPORT CARD WORKING GROUP.
 662.10 		Subdivision 1.Establishment; membership. (a) An assisted living report card working 
662.11 	group, tasked with researching and making recommendations on the development of an 
662.12 	assisted living report card, is established.
662.13 	(b) The commissioner of human services shall appoint the following members of the 
662.14 	working group:
662.15 	(1) two persons who reside in senior housing with services establishments, one residing 
662.16 	in an establishment in the seven-county metropolitan area and one residing in an 
662.17 	establishment outside the seven-county metropolitan area;
662.18 	(2) four representatives of the senior housing with services profession, two providing 
662.19 	services in the seven-county metropolitan area and two providing services outside the 
662.20 	seven-county metropolitan area;
662.21 	(3) one family member of a person who resides in a senior housing with services 
662.22 	establishment in the seven-county metropolitan area, and one family member of a person 
662.23 	who resides in a senior housing with services establishment outside the seven-county 
662.24 	metropolitan area;
662.25 	(4) a representative from the Home Care and Assisted Living Program Advisory Council;
662.26 	(5) a representative from the University of Minnesota with expertise in data and analytics;
662.27 	(6) a representative from Care Providers of Minnesota; and
662.28 	(7) a representative from LeadingAge Minnesota.
662.29 	(c) The following individuals shall also be appointed to the working group:
662.30 	(1) the commissioner of human services or a designee;
662.31 	(2) the commissioner of health or a designee;
663.1 	(3) the ombudsman for long-term care or a designee;
663.2 	(4) one member of the Minnesota Board on Aging, appointed by the board; and
663.3 	(5) the executive director of the Minnesota Board on Aging who shall serve on the 
663.4 	working group as a nonvoting member.
663.5 	(d) The appointing authorities under this subdivision must complete the appointments 
663.6 	no later than July 1, 2018.
663.7 		Subd. 2.Duties. The assisted living report card working group shall consider and make 
663.8 	recommendations on the development of an assisted living report card. The quality metrics 
663.9 	considered shall include, but are not limited to:
663.10 	(1) an annual customer satisfaction survey measure using the CoreQ questions for 
663.11 	assisted-living residents and family members;
663.12 	(2) a measure utilizing level 3 or 4 citations from Department of Health home care survey 
663.13 	findings and substantiated Office of Health Facility Complaints findings against a home 
663.14 	care provider;
663.15 	(3) a home care staff retention measure; and
663.16 	(4) a measure that scores a provider's staff according to their level of training and 
663.17 	education.
663.18 		Subd. 3.Meetings. The commissioner of human services or a designee shall convene 
663.19 	the first meeting of the working group no later than August 1, 2018. The members of the 
663.20 	working group shall elect a chair from among the group's members at the first meeting, and 
663.21 	the commissioner of human services or a designee shall serve as the working group's chair 
663.22 	until a chair is elected. Meetings of the working group shall be open to the public.
663.23 		Subd. 4.Compensation. Members of the working group shall serve without compensation 
663.24 	or reimbursement for expenses.
663.25 		Subd. 5.Administrative support. The commissioner of human services shall provide 
663.26 	administrative support and arrange meeting space for the working group.
663.27 		Subd. 6.Report. By January 15, 2019, the working group must submit a report with 
663.28 	findings, recommendations, and draft legislation to the chairs and ranking minority members 
663.29 	of the legislative committees with jurisdiction over health and human services policy and 
663.30 	finance.
663.31 		Subd. 7.Expiration. The working group expires January 16, 2019, or the day after the 
663.32 	working group submits the report required in subdivision 6, whichever is later.

664.1 	Sec. 57. CRIMES AGAINST VULNERABLE ADULTS ADVISORY TASK FORCE.
 664.2 		Subdivision 1.Task force established; membership. (a) The Crimes Against Vulnerable 
664.3 	Adults Advisory Task Force is established and consists of the following members:
664.4 	(1) the commissioner of public safety or a designee;
664.5 	(2) the commissioner of human services or a designee;
664.6 	(3) the commissioner of health or a designee;
664.7 	(4) the attorney general or a designee;
664.8 	(5) a representative from the Minnesota Bar Association;
664.9 	(6) a representative from the Minnesota judicial branch;
664.10 	(7) one member appointed by the Minnesota County Attorneys Association;
664.11 	(8) one member appointed by the Minnesota Association of City Attorneys;
664.12 	(9) one member appointed by the Minnesota Elder Justice Center;
664.13 	(10) one member appointed by the Minnesota Home Care Association;
664.14 	(11) one member appointed by Care Providers of Minnesota;
664.15 	(12) one member appointed by LeadingAge Minnesota;
664.16 	(13) one member appointed by ARC Minnesota;
664.17 	(14) one member appointed by AARP Minnesota; and
664.18 	(15) one representative from a union that represents persons working in long-term care 
664.19 	settings.
664.20 	(b) The advisory task force may appoint additional members that it deems would be 
664.21 	helpful in carrying out its duties under subdivision 2.
664.22 	(c) The appointing authorities must complete the appointments listed in paragraph (a) 
664.23 	by July 1, 2018.
664.24 	(d) At its first meeting, the task force shall elect a chair from among the members listed 
664.25 	in paragraph (a).
664.26 		Subd. 2.Duties; recommendations and report. (a) The advisory task force's duties 
664.27 	are to review and evaluate laws relating to crimes against vulnerable adults, and any other 
664.28 	information the task force deems relevant.
665.1 	(b) By December 1, 2018, the advisory task force shall submit a report to the chairs and 
665.2 	ranking minority members of the legislative committees with primary jurisdiction over 
665.3 	health and human services and criminal policy. The report must contain the task force's 
665.4 	findings and recommendations, including a discussion of the benefits and problems associated 
665.5 	with proposed changes. The report must include draft legislation to implement any 
665.6 	recommended changes to statute.
665.7 		Subd. 3.Administrative provisions. (a) The commissioner of human services shall 
665.8 	provide meeting space and administrative support to the advisory task force.
665.9 	(b) The commissioners of human services and health and the attorney general shall 
665.10 	provide technical assistance to the advisory task force.
665.11 	(c) Advisory task force members shall serve without compensation and shall not be 
665.12 	reimbursed for expenses.
665.13 		Subd. 4.Expiration. The advisory task force expires May 20, 2019.

665.14 	Sec. 58. DIRECTION TO COMMISSIONER OF HEALTH; PROGRESS IN 
665.15 	IMPLEMENTING RECOMMENDATIONS OF LEGISLATIVE AUDITOR.
 665.16 	By March 1, 2019, the commissioner of health must submit a report to the chairs and 
665.17 	ranking minority members of the legislative committees with jurisdiction over health, human 
665.18 	services, or aging on the progress toward implementing each recommendation of the Office 
665.19 	of the Legislative Auditor with which the commissioner agreed in the commissioner's letter 
665.20 	to the legislative auditor dated March 1, 2018. The commissioner shall include in the report 
665.21 	existing data collected in the course of the commissioner's continuing oversight of the Office 
665.22 	of Health Facility Complaints sufficient to demonstrate the implementation of the 
665.23 	recommendations with which the commissioner agreed.

665.24 	Sec. 59. REPORTS; OFFICE OF HEALTH FACILITY COMPLAINTS' RESPONSE 
665.25 	TO VULNERABLE ADULT MALTREATMENT ALLEGATIONS.
 665.26 	(a) On a quarterly basis until January 2021, and annually thereafter, the commissioner 
665.27 	of health must publish on the Department of Health Web site, a report on the Office of 
665.28 	Health Facility Complaints' response to allegations of maltreatment of vulnerable adults. 
665.29 	The report must include:
665.30 	(1) a description and assessment of the office's efforts to improve its internal processes 
665.31 	and compliance with federal and state requirements concerning allegations of maltreatment 
665.32 	of vulnerable adults, including any relevant timelines;
666.1 	(2)(i) the number of reports received by type of reporter; (ii) the number of reports 
666.2 	investigated; (iii) the percentage and number of reported cases awaiting triage; (iv) the 
666.3 	number and percentage of open investigations; (v) the number and percentage of reports 
666.4 	that have failed to meet state or federal timelines for triaging, investigating, or making a 
666.5 	final disposition of an investigation by cause of delay; and (vi) processes the office will 
666.6 	implement to bring the office into compliance with state and federal timelines for triaging, 
666.7 	investigating, and making final dispositions of investigations;
666.8 	(3) a trend analysis of internal audits conducted by the office; and
666.9 	(4) trends and patterns in maltreatment of vulnerable adults, licensing violations by 
666.10 	facilities or providers serving vulnerable adults, and other metrics as determined by the 
666.11 	commissioner.
666.12 	(b) The commissioner shall maintain on the Department of Health Web site reports 
666.13 	published under this section for at least the past three years.

666.14 	Sec. 60. REPORT; SAFETY AND QUALITY IMPROVEMENT PRACTICES.
 666.15 	By January 15, 2019, the safety and quality improvement technical panel established 
666.16 	under Minnesota Statutes, section 144A.53, subdivision 5, shall provide recommendations 
666.17 	to the legislature on legislative changes needed to promote safety and quality improvement 
666.18 	practices in long-term care settings and with long-term care providers. The recommendations 
666.19 	must address:
666.20 	(1) how to implement a system for adverse health events reporting, learning, and 
666.21 	prevention in long-term care settings and with long-term care providers; and
666.22 	(2) interim actions to improve systems for the timely analysis of reports and complaints 
666.23 	submitted to the Office of Health Facility Complaints to identify common themes and key 
666.24 	prevention opportunities, and to disseminate key findings to providers across the state for 
666.25 	the purposes of shared learning and prevention.

666.26 	Sec. 61.  REPEALER.
 666.27 	Minnesota Statutes 2016, section 144A.479, subdivision 2, is repealed.

666.28 	ARTICLE 40
666.29 	CHILDREN AND FAMILIES; LICENSING

666.30 	Section 1. Minnesota Statutes 2016, section 119B.011, is amended by adding a subdivision 
666.31 	to read:
667.1 		Subd. 13b.Homeless. "Homeless" means a self-declared housing status as defined in 
667.2 	the McKinney-Vento Homeless Assistance Act and United States Code, title 42, section 
667.3 	11302, paragraph (a).

667.4 	EFFECTIVE DATE. This section is effective August 12, 2019.

667.5 	Sec. 2. Minnesota Statutes 2016, section 119B.011, subdivision 19, is amended to read:
667.6 		Subd. 19.Provider. "Provider" means: (1) an individual or child care center or facility, 
667.7 	either licensed or unlicensed, providing licensed legal child care services as defined under 
667.8 	section 245A.03; or (2) a license exempt center required to be certified under chapter 245H;
667.9 	(3) an individual or child care center or facility holdingthat:
667.10 	(i) holds a valid child care license issued by another state or a tribe and providing;
667.11 	(ii) provides child care services in the licensing state or in the area under the licensing 
667.12 	tribe's jurisdiction; and
667.13 	(iii) is in compliance with federal health and safety requirements as certified by the 
667.14 	licensing state or tribe, or as determined by receipt of child care development block grant 
667.15 	funds in the licensing state; or
667.16 	(4) a legal nonlicensed child care provider as defined under section 119B.011, subdivision 
667.17 	16, providing legal child care services. A legally unlicensed familylegal nonlicensed child 
667.18 	care provider must be at least 18 years of age, and not a member of the MFIP assistance 
667.19 	unit or a member of the family receiving child care assistance to be authorized under this 
667.20 	chapter.

667.21 	EFFECTIVE DATE. This section is effective September 24, 2018.

667.22 	Sec. 3. Minnesota Statutes 2017 Supplement, section 119B.011, subdivision 20, is amended 
667.23 	to read:
667.24 		Subd. 20.Transition year families. "Transition year families" means families who have 
667.25 	received MFIP assistance, or who were eligible to receive MFIP assistance after choosing 
667.26 	to discontinue receipt of the cash portion of MFIP assistance under section 256J.31, 
667.27 	subdivision 12, or families who have received DWP assistance under section 256J.95 for 
667.28 	at least three one of the last six months before losing eligibility for MFIP or DWP. 
667.29 	Notwithstanding Minnesota Rules, parts 3400.0040, subpart 10, and 3400.0090, subpart 2, 
667.30 	transition year child care may be used to support employment, approved education or training 
667.31 	programs, or job search that meets the requirements of section 119B.10. Transition year 
668.1 	child care is not available to families who have been disqualified from MFIP or DWP due 
668.2 	to fraud.

668.3 	EFFECTIVE DATE. This section is effective October 8, 2018.

668.4 	Sec. 4. Minnesota Statutes 2016, section 119B.02, subdivision 7, is amended to read:
668.5 		Subd. 7.Child care market rate survey. Biennially, The commissioner shall conduct 
668.6 	the next survey of prices charged by child care providers in Minnesota in state fiscal year 
668.7 	2021 and every three years thereafter to determine the 75th percentile for like-care 
668.8 	arrangements in county price clusters.

668.9 	Sec. 5. Minnesota Statutes 2017 Supplement, section 119B.025, subdivision 1, is amended 
668.10 	to read:
668.11 		Subdivision 1.Applications. (a) Except as provided in paragraph (c), clause (4), the 
668.12 	county shall verify the following at all initial child care applications using the universal 
668.13 	application:
668.14 	(1) identity of adults;
668.15 	(2) presence of the minor child in the home, if questionable;
668.16 	(3) relationship of minor child to the parent, stepparent, legal guardian, eligible relative 
668.17 	caretaker, or the spouses of any of the foregoing;
668.18 	(4) age;
668.19 	(5) immigration status, if related to eligibility;
668.20 	(6) Social Security number, if given;
668.21 	(7) counted income;
668.22 	(8) spousal support and child support payments made to persons outside the household;
668.23 	(9) residence; and
668.24 	(10) inconsistent information, if related to eligibility.
668.25 	(b) The county must mail a notice of approval or denial of assistance to the applicant 
668.26 	within 30 calendar days after receiving the application. The county may extend the response 
668.27 	time by 15 calendar days if the applicant is informed of the extension.
668.28 	(c) For an applicant who declares that the applicant is homeless and who meets the 
668.29 	definition of homeless in section 119B.011, subdivision 13b, the county must:
669.1 	(1) if information is needed to determine eligibility, send a request for information to 
669.2 	the applicant within five working days after receiving the application;
669.3 	(2) if the applicant is eligible, send a notice of approval of assistance within five working 
669.4 	days after receiving the application;
669.5 	(3) if the applicant is ineligible, send a notice of denial of assistance within 30 days after 
669.6 	receiving the application. The county may extend the response time by 15 calendar days if 
669.7 	the applicant is informed of the extension;
669.8 	(4) not require verifications required by paragraph (a) before issuing the notice of approval 
669.9 	or denial; and
669.10 	(5) follow limits set by the commissioner for how frequently expedited application 
669.11 	processing may be used for an applicant who declares that the applicant is homeless.
669.12 	(d) An applicant who declares that the applicant is homeless must submit proof of 
669.13 	eligibility within three months of the date the application was received. If proof of eligibility 
669.14 	is not submitted within three months, eligibility ends. A 15-day adverse action notice is 
669.15 	required to end eligibility.

669.16 	EFFECTIVE DATE. This section is effective August 12, 2019.

669.17 	Sec. 6. Minnesota Statutes 2016, section 119B.03, subdivision 9, is amended to read:
669.18 		Subd. 9.Portability pool. (a) The commissioner shall establish a pool of up to five 
669.19 	percent of the annual appropriation for the basic sliding fee program to provide continuous 
669.20 	child care assistance for eligible families who move between Minnesota counties. At the 
669.21 	end of each allocation period, any unspent funds in the portability pool must be used for 
669.22 	assistance under the basic sliding fee program. If expenditures from the portability pool 
669.23 	exceed the amount of money available, the reallocation pool must be reduced to cover these 
669.24 	shortages.
669.25 	(b) To be eligible for portable basic sliding fee assistance, A family that has moved from 
669.26 	a county in which it was receiving basic sliding fee assistance to a county with a waiting 
669.27 	list for the basic sliding fee program must:
669.28 	(1) meet the income and eligibility guidelines for the basic sliding fee program; and
669.29 	(2) notify the new county of residence within 60 days of moving and submit information 
669.30 	to the new county of residence to verify eligibility for the basic sliding fee program the 
669.31 	family's previous county of residence of the family's move to a new county of residence.
669.32 	(c) The receiving county must:
670.1 	(1) accept administrative responsibility for applicants for portable basic sliding fee 
670.2 	assistance at the end of the two months of assistance under the Unitary Residency Act;
670.3 	(2) continue portability pool basic sliding fee assistance for the lesser of six months or
670.4 	until the family is able to receive assistance under the county's regular basic sliding program; 
670.5 	and
670.6 	(3) notify the commissioner through the quarterly reporting process of any family that 
670.7 	meets the criteria of the portable basic sliding fee assistance pool.

670.8 	EFFECTIVE DATE. This section is effective October 8, 2018.

670.9 	Sec. 7. Minnesota Statutes 2017 Supplement, section 119B.06, subdivision 1, is amended 
670.10 	to read:
670.11 		Subdivision 1.Commissioner to administer block grant. The commissioner is 
670.12 	authorized and directed to receive, administer, and expend child care funds available under 
670.13 	the child care and development block grant authorized under the Child Care and Development 
670.14 	Block Grant Act of 2014, Public Law 113-186. From the discretionary amounts provided 
670.15 	for federal fiscal year 2018 and reserved for quality activities, the commissioner shall ensure 
670.16 	that funds are prioritized to increase the availability of training and business planning 
670.17 	assistance for child care providers.

670.18 	Sec. 8. Minnesota Statutes 2016, section 119B.06, is amended by adding a subdivision to 
670.19 	read:
670.20 		Subd. 4.Administration of additional funds. If the state of Minnesota receives 
670.21 	additional federal child care development block grant funds (CCDBG) in federal fiscal year 
670.22 	2018 under the federal Consolidated Appropriations Act of 2018, Public Law 115-141, and 
670.23 	any subsequent federal appropriation for federal fiscal year 2019, compared to CCDBG 
670.24 	funds received in federal fiscal year 2017, the commissioner shall allocate the additional 
670.25 	funds to provisions enacted in state law in 2018 to comply with the Child Care Development 
670.26 	Block Grant Act of 2014, and to child care provider rates under section 119B.13. The 
670.27 	commissioner shall allocate the additional federal funds to maximize child care rates during 
670.28 	the time the additional federal funding is available. The commissioner must allocate any 
670.29 	additional federal funding received after federal fiscal year 2019, at the level received in 
670.30 	federal fiscal year 2019, to compliance provisions enacted in state law in 2018 and to child 
670.31 	care rates under section 119B.13. If federal CCDBG funds are less than the amount received 
670.32 	in federal fiscal year 2017, the commissioner, in consultation with the commissioner of 
670.33 	management and budget, shall administer funding for child care programs to ensure that 
671.1 	the amount of general fund money allocated to child care programs does not increase to 
671.2 	replace the reduction in federal CCDBG funds.

671.3 	Sec. 9. Minnesota Statutes 2017 Supplement, section 119B.09, subdivision 1, is amended 
671.4 	to read:
671.5 		Subdivision 1.General eligibility requirements. (a) Child care services must be 
671.6 	available to families who need child care to find or keep employment or to obtain the training 
671.7 	or education necessary to find employment and who:
671.8 	(1) have household income less than or equal to 67 percent of the state median income, 
671.9 	adjusted for family size, at application and redetermination, and meet the requirements of 
671.10 	section 119B.05; receive MFIP assistance; and are participating in employment and training 
671.11 	services under chapter 256J; or
671.12 	(2) have household income less than or equal to 47 percent of the state median income, 
671.13 	adjusted for family size, at application and less than or equal to 67 percent of the state 
671.14 	median income, adjusted for family size, at redetermination.
671.15 	(b) Child care services must be made available as in-kind services.
671.16 	(c) All applicants for child care assistance and families currently receiving child care 
671.17 	assistance must be assisted and required to cooperate in establishment of paternity and 
671.18 	enforcement of child support obligations for all children in the family at application and 
671.19 	redetermination as a condition of program eligibility. For purposes of this section, a family 
671.20 	is considered to meet the requirement for cooperation when the family complies with the 
671.21 	requirements of section 256.741.
671.22 	(d) All applicants for child care assistance and families currently receiving child care 
671.23 	assistance must pay the co-payment fee under section 119B.12, subdivision 2, as a condition 
671.24 	of eligibility. The co-payment fee may include additional recoupment fees due to a child 
671.25 	care assistance program overpayment.
671.26 	(e) If a family has one child with a child care authorization and the child turns 13 years 
671.27 	of age or the child has a disability and turns 15 years of age, the family remains eligible 
671.28 	until the redetermination.

671.29 	EFFECTIVE DATE. This section is effective October 8, 2018.

672.1 	Sec. 10. Minnesota Statutes 2017 Supplement, section 119B.095, subdivision 2, is amended 
672.2 	to read:
672.3 		Subd. 2.Maintain steady child care authorizations. (a) Notwithstanding Minnesota 
672.4 	Rules, chapter 3400, the amount of child care authorized under section 119B.10 for 
672.5 	employment, education, or an MFIP or DWP employment plan shall continue at the same 
672.6 	number of hours or more hours until redetermination, including:
672.7 	(1) when the other parent moves in and is employed or has an education plan under 
672.8 	section 119B.10, subdivision 3, or has an MFIP or DWP employment plan; or
672.9 	(2) when the participant's work hours are reduced or a participant temporarily stops 
672.10 	working or attending an approved education program. Temporary changes include, but are 
672.11 	not limited to, a medical leave, seasonal employment fluctuations, or a school break between 
672.12 	semesters.
672.13 	(b) The county may increase the amount of child care authorized at any time if the 
672.14 	participant verifies the need for increased hours for authorized activities.
672.15 	(c) The county may reduce the amount of child care authorized if a parent requests a 
672.16 	reduction or because of a change in:
672.17 	(1) the child's school schedule;
672.18 	(2) the custody schedule; or
672.19 	(3) the provider's availability.
672.20 	(d) The amount of child care authorized for a family subject to subdivision 1, paragraph 
672.21 	(b), must change when the participant's activity schedule changes. Paragraph (a) does not 
672.22 	apply to a family subject to subdivision 1, paragraph (b).
672.23 	(e) When a child reaches 13 years of age or a child with a disability reaches 15 years of 
672.24 	age, the amount of child care authorized shall continue at the same number of hours or more 
672.25 	hours until redetermination.

672.26 	EFFECTIVE DATE. This section is effective October 8, 2018.

672.27 	Sec. 11. Minnesota Statutes 2017 Supplement, section 119B.095, is amended by adding 
672.28 	a subdivision to read:
672.29 		Subd. 3.Assistance for persons who are experiencing homelessness. An applicant 
672.30 	who is homeless and eligible for child care assistance under this chapter is eligible for 60 
672.31 	hours of child care assistance per service period for three months from the date the county 
673.1 	receives the application. Additional hours may be authorized as needed based on the 
673.2 	applicant's participation in employment, education, or MFIP or DWP employment plan. To 
673.3 	continue receiving child care assistance after the initial three months, the parent must verify 
673.4 	that the parent meets eligibility and activity requirements for child care assistance under 
673.5 	this chapter.

673.6 	EFFECTIVE DATE. This section is effective August 12, 2019.

673.7 	Sec. 12. Minnesota Statutes 2017 Supplement, section 119B.13, subdivision 1, is amended 
673.8 	to read:
673.9 		Subdivision 1.Subsidy restrictions. (a) Beginning February 3, 2014, The maximum 
673.10 	rate paid for child care assistance in any county or county price cluster under the child care 
673.11 	fund shall be the greater of the 25th percentile of the 2011calculated by the commissioner 
673.12 	under section 119B.06, subdivision 4, but not to exceed the 25th percentile, of the most 
673.13 	recent child care provider rate survey under section 119B.02, subdivision 7, or the maximum 
673.14 	rate effective November 28, 2011 rates in effect at the time of the most recent child care 
673.15 	provider rate survey. For a child care provider located within the boundaries of a city located 
673.16 	in two or more of the counties of Benton, Sherburne, and Stearns, the maximum rate paid 
673.17 	for child care assistance shall be equal to the maximum rate paid in the county with the 
673.18 	highest maximum reimbursement rates or the provider's charge, whichever is less. The 
673.19 	commissioner may: (1) assign a county with no reported provider prices to a similar price 
673.20 	cluster; and (2) consider county level access when determining final price clusters.
673.21 	(b) A rate which includes a special needs rate paid under subdivision 3 may be in excess 
673.22 	of the maximum rate allowed under this subdivision.
673.23 	(c) The department shall monitor the effect of this paragraph on provider rates. The 
673.24 	county shall pay the provider's full charges for every child in care up to the maximum 
673.25 	established. The commissioner shall determine the maximum rate for each type of care on 
673.26 	an hourly, full-day, and weekly basis, including special needs and disability care.
673.27 	(d) If a child uses one provider, the maximum payment for one day of care must not 
673.28 	exceed the daily rate. The maximum payment for one week of care must not exceed the 
673.29 	weekly rate.
673.30 	(e) If a child uses two providers under section 119B.097, the maximum payment must 
673.31 	not exceed:
673.32 	(1) the daily rate for one day of care;
673.33 	(2) the weekly rate for one week of care by the child's primary provider; and
674.1 	(3) two daily rates during two weeks of care by a child's secondary provider.
674.2 	(f) Child care providers receiving reimbursement under this chapter must not be paid 
674.3 	activity fees or an additional amount above the maximum rates for care provided during 
674.4 	nonstandard hours for families receiving assistance.
674.5 	(g) If the provider charge is greater than the maximum provider rate allowed, the parent 
674.6 	is responsible for payment of the difference in the rates in addition to any family co-payment 
674.7 	fee.
674.8 	(h) All maximum provider rates changes shall be implemented on the Monday following 
674.9 	the effective date of the maximum provider rate.
674.10 	(i) Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum registration 
674.11 	fees in effect on January 1, 2013, shall remain in effect.

674.12 	EFFECTIVE DATE. This section is effective for child care provider payments beginning 
674.13 	February 22, 2019.

674.14 	Sec. 13. Minnesota Statutes 2017 Supplement, section 245A.06, subdivision 8, is amended 
674.15 	to read:
674.16 		Subd. 8.Requirement to post correction order conditional license. (a) For licensed 
674.17 	family child care providers and child care centers, upon receipt of any correction order or
674.18 	order of conditional license issued by the commissioner under this section, and 
674.19 	notwithstanding a pending request for reconsideration of the correction order or order of 
674.20 	conditional license by the license holder, the license holder shall post the correction order 
674.21 	or order of conditional license in a place that is conspicuous to the people receiving services 
674.22 	and all visitors to the facility for two years. When the correction order or order of conditional 
674.23 	license is accompanied by a maltreatment investigation memorandum prepared under section 
674.24 	626.556 or 626.557, the investigation memoranda must be posted with the correction order 
674.25 	or order of conditional license.
674.26 	(b) If the commissioner reverses or rescinds a violation in a correction order upon 
674.27 	reconsideration under subdivision 2, the commissioner shall issue an amended correction 
674.28 	order and the license holder shall post the amended order according to paragraph (a).
674.29 	(c) If the correction order is rescinded or reversed in full upon reconsideration under 
674.30 	subdivision 2, the license holder shall remove the original correction order posted according 
674.31 	to paragraph (a).

675.1 	Sec. 14. Minnesota Statutes 2016, section 245A.175, is amended to read:
675.2 	245A.175 CHILD FOSTER CARE TRAINING REQUIREMENT; MENTAL 
675.3 	HEALTH TRAINING; FETAL ALCOHOL SPECTRUM DISORDERS TRAINING.
675.4 	Prior to a nonemergency placement of a child in a foster care home, the child foster care 
675.5 	license holder and caregivers in foster family and treatment foster care settings, and all staff 
675.6 	providing care in foster residence settings must complete two hours of training that addresses 
675.7 	the causes, symptoms, and key warning signs of mental health disorders; cultural 
675.8 	considerations; and effective approaches for dealing with a child's behaviors. At least one 
675.9 	hour of the annual training requirement for the foster family license holder and caregivers, 
675.10 	and foster residence staff must be on children's mental health issues and treatment. Except 
675.11 	for providers and services under chapter 245D, the annual training must also include at least 
675.12 	one hour of training on fetal alcohol spectrum disorders within the first 12 months of 
675.13 	licensure. After the first 12 months of licensure, training on fetal alcohol spectrum disorders 
675.14 	may count, which must be counted toward the 12 hours of required in-service training per 
675.15 	year. Short-term substitute caregivers are exempt from these requirements. Training 
675.16 	curriculum shall be approved by the commissioner of human services.

675.17 	Sec. 15. Minnesota Statutes 2017 Supplement, section 245A.50, subdivision 7, is amended 
675.18 	to read:
675.19 		Subd. 7.Training requirements for family and group family child care. (a) For 
675.20 	purposes of family and group family child care, the license holder and each primary caregiver 
675.21 	must complete 16 hours of ongoing training each year. For purposes of this subdivision, a 
675.22 	primary caregiver is an adult caregiver who provides services in the licensed setting for 
675.23 	more than 30 days in any 12-month period. Repeat of topical training requirements in 
675.24 	subdivisions 2 to 89 shall count toward the annual 16-hour training requirement. Additional 
675.25 	ongoing training subjects to meet the annual 16-hour training requirement must be selected 
675.26 	from the following areas:
675.27 	(1) child development and learning training under subdivision 2, paragraph (a);
675.28 	(2) developmentally appropriate learning experiences, including training in creating 
675.29 	positive learning experiences, promoting cognitive development, promoting social and 
675.30 	emotional development, promoting physical development, promoting creative development; 
675.31 	and behavior guidance;
675.32 	(3) relationships with families, including training in building a positive, respectful 
675.33 	relationship with the child's family;
676.1 	(4) assessment, evaluation, and individualization, including training in observing, 
676.2 	recording, and assessing development; assessing and using information to plan; and assessing 
676.3 	and using information to enhance and maintain program quality;
676.4 	(5) historical and contemporary development of early childhood education, including 
676.5 	training in past and current practices in early childhood education and how current events 
676.6 	and issues affect children, families, and programs;
676.7 	(6) professionalism, including training in knowledge, skills, and abilities that promote 
676.8 	ongoing professional development; and
676.9 	(7) health, safety, and nutrition, including training in establishing healthy practices; 
676.10 	ensuring safety; and providing healthy nutrition.
676.11 	(b) A family or group family child care license holder or primary caregiver who is an 
676.12 	approved trainer through the Minnesota Center for Professional Development and who 
676.13 	conducts an approved training course through the Minnesota Center for Professional 
676.14 	Development in any of the topical training in subdivisions 2 to 9 shall receive training credit 
676.15 	for the training topic in the applicable annual period. Each hour of approved training 
676.16 	conducted shall count toward the annual 16-hour training requirement.

676.17 	EFFECTIVE DATE. This section is effective July 1, 2018.

676.18 	Sec. 16. Minnesota Statutes 2016, section 254A.035, subdivision 2, is amended to read:
676.19 		Subd. 2.Membership terms, compensation, removal and expiration. The membership 
676.20 	of this council shall be composed of 17 persons who are American Indians and who are 
676.21 	appointed by the commissioner. The commissioner shall appoint one representative from 
676.22 	each of the following groups: Red Lake Band of Chippewa Indians; Fond du Lac Band, 
676.23 	Minnesota Chippewa Tribe; Grand Portage Band, Minnesota Chippewa Tribe; Leech Lake 
676.24 	Band, Minnesota Chippewa Tribe; Mille Lacs Band, Minnesota Chippewa Tribe; Bois Forte 
676.25 	Band, Minnesota Chippewa Tribe; White Earth Band, Minnesota Chippewa Tribe; Lower 
676.26 	Sioux Indian Reservation; Prairie Island Sioux Indian Reservation; Shakopee Mdewakanton 
676.27 	Sioux Indian Reservation; Upper Sioux Indian Reservation; International Falls Northern 
676.28 	Range; Duluth Urban Indian Community; and two representatives from the Minneapolis 
676.29 	Urban Indian Community and two from the St. Paul Urban Indian Community. The terms, 
676.30 	compensation, and removal of American Indian Advisory Council members shall be as 
676.31 	provided in section 15.059. The council expires June 30, 2018 2023.

677.1 	Sec. 17. Minnesota Statutes 2016, section 256.01, subdivision 14b, is amended to read:
677.2 		Subd. 14b.American Indian child welfare projects. (a) The commissioner of human 
677.3 	services may authorize projects to test tribal delivery of child welfare services to American 
677.4 	Indian children and their parents and custodians living on the reservation. The commissioner 
677.5 	has authority to solicit and determine which tribes may participate in a project. Grants may 
677.6 	be issued to Minnesota Indian tribes to support the projects. The commissioner may waive 
677.7 	existing state rules as needed to accomplish the projects. The commissioner may authorize 
677.8 	projects to use alternative methods of (1) investigating and assessing reports of child 
677.9 	maltreatment, and (2) administrative reconsideration, administrative appeal, and judicial 
677.10 	appeal of maltreatment determinations, provided the alternative methods used by the projects 
677.11 	comply with the provisions of sections 256.045 and 626.556 dealing with the rights of 
677.12 	individuals who are the subjects of reports or investigations, including notice and appeal 
677.13 	rights and data practices requirements. The commissioner may seek any federal approvals 
677.14 	necessary to carry out the projects as well as seek and use any funds available to the 
677.15 	commissioner, including use of federal funds, foundation funds, existing grant funds, and 
677.16 	other funds. The commissioner is authorized to advance state funds as necessary to operate 
677.17 	the projects. Federal reimbursement applicable to the projects is appropriated to the 
677.18 	commissioner for the purposes of the projects. The projects must be required to address 
677.19 	responsibility for safety, permanency, and well-being of children.
677.20 	(b) For the purposes of this section, "American Indian child" means a person under 21 
677.21 	years old and who is a tribal member or eligible for membership in one of the tribes chosen 
677.22 	for a project under this subdivision and who is residing on the reservation of that tribe.
677.23 	(c) In order to qualify for an American Indian child welfare project, a tribe must:
677.24 	(1) be one of the existing tribes with reservation land in Minnesota;
677.25 	(2) have a tribal court with jurisdiction over child custody proceedings;
677.26 	(3) have a substantial number of children for whom determinations of maltreatment have 
677.27 	occurred;
677.28 	(4) have capacity to respond to reports of abuse and neglect under section 626.556;
677.29 	(5) provide a wide range of services to families in need of child welfare services; and
677.30 	(6) have a tribal-state title IV-E agreement in effect.
677.31 	(d) Grants awarded under this section may be used for the nonfederal costs of providing 
677.32 	child welfare services to American Indian children on the tribe's reservation, including costs 
677.33 	associated with:
678.1 	(1) assessment and prevention of child abuse and neglect;
678.2 	(2) family preservation;
678.3 	(3) facilitative, supportive, and reunification services;
678.4 	(4) out-of-home placement for children removed from the home for child protective 
678.5 	purposes; and
678.6 	(5) other activities and services approved by the commissioner that further the goals of 
678.7 	providing safety, permanency, and well-being of American Indian children.
678.8 	(e) When a tribe has initiated a project and has been approved by the commissioner to 
678.9 	assume child welfare responsibilities for American Indian children of that tribe under this 
678.10 	section, the affected county social service agency is relieved of responsibility for responding 
678.11 	to reports of abuse and neglect under section 626.556 for those children during the time 
678.12 	within which the tribal project is in effect and funded. The commissioner shall work with 
678.13 	tribes and affected counties to develop procedures for data collection, evaluation, and 
678.14 	clarification of ongoing role and financial responsibilities of the county and tribe for child 
678.15 	welfare services prior to initiation of the project. Children who have not been identified by 
678.16 	the tribe as participating in the project shall remain the responsibility of the county. Nothing 
678.17 	in this section shall alter responsibilities of the county for law enforcement or court services.
678.18 	(f) Participating tribes may conduct children's mental health screenings under section 
678.19 	245.4874, subdivision 1, paragraph (a), clause (12), for children who are eligible for the 
678.20 	initiative and living on the reservation and who meet one of the following criteria:
678.21 	(1) the child must be receiving child protective services;
678.22 	(2) the child must be in foster care; or
678.23 	(3) the child's parents must have had parental rights suspended or terminated.
678.24 	Tribes may access reimbursement from available state funds for conducting the screenings. 
678.25 	Nothing in this section shall alter responsibilities of the county for providing services under 
678.26 	section 245.487.
678.27 	(g) Participating tribes may establish a local child mortality review panel. In establishing 
678.28 	a local child mortality review panel, the tribe agrees to conduct local child mortality reviews 
678.29 	for child deaths or near-fatalities occurring on the reservation under subdivision 12. Tribes 
678.30 	with established child mortality review panels shall have access to nonpublic data and shall 
678.31 	protect nonpublic data under subdivision 12, paragraphs (c) to (e). The tribe shall provide 
678.32 	written notice to the commissioner and affected counties when a local child mortality review 
679.1 	panel has been established and shall provide data upon request of the commissioner for 
679.2 	purposes of sharing nonpublic data with members of the state child mortality review panel 
679.3 	in connection to an individual case.
679.4 	(h) The commissioner shall collect information on outcomes relating to child safety, 
679.5 	permanency, and well-being of American Indian children who are served in the projects. 
679.6 	Participating tribes must provide information to the state in a format and completeness 
679.7 	deemed acceptable by the state to meet state and federal reporting requirements.
679.8 	(i) In consultation with the White Earth Band, the commissioner shall develop and submit 
679.9 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
679.10 	over health and human services a plan to transfer legal responsibility for providing child 
679.11 	protective services to White Earth Band member children residing in Hennepin County to 
679.12 	the White Earth Band. The plan shall include a financing proposal, definitions of key terms, 
679.13 	statutory amendments required, and other provisions required to implement the plan. The 
679.14 	commissioner shall submit the plan by January 15, 2012.
679.15 	(j) The commissioner and the Red Lake Nation, in consultation with Beltrami County, 
679.16 	Clearwater County, and Lake of the Woods County, shall develop a proposal to transfer 
679.17 	legal and financial responsibility to the tribe for providing child welfare and child protection 
679.18 	services to tribal members and families who reside on the Red Lake Reservation in Beltrami, 
679.19 	Clearwater, and Lake of the Woods Counties. The proposal shall be provided to the members 
679.20 	of the house of representatives and senate committees with jurisdiction over health and 
679.21 	human services no later than January 15, 2019.

679.22 	Sec. 18. Minnesota Statutes 2016, section 256K.45, subdivision 2, is amended to read:
679.23 		Subd. 2.Homeless youth report. The commissioner shall prepare a biennial report, 
679.24 	beginning in February 2015, which provides meaningful information to the legislative 
679.25 	committees having jurisdiction over the issue of homeless youth, that includes, but is not 
679.26 	limited to: (1) a list of the areas of the state with the greatest need for services and housing 
679.27 	for homeless youth, and the level and nature of the needs identified; (2) details about grants 
679.28 	made; (3) the distribution of funds throughout the state based on population need; (4) 
679.29 	follow-up information, if available, on the status of homeless youth and whether they have 
679.30 	stable housing two years after services are provided; and (5) any other outcomes for 
679.31 	populations served to determine the effectiveness of the programs and use of funding. The 
679.32 	commissioner is exempt from preparing this report in 2019 and must instead update the 
679.33 	2007 report on homeless youth under section 24.

680.1 	Sec. 19. [256K.46] STABLE HOUSING AND SUPPORT SERVICES FOR 
680.2 	VULNERABLE YOUTH.
680.3 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
680.4 	meanings given them:
680.5 	(a) "Eligible applicant" means a program licensed by the commissioner of human services 
680.6 	to provide transitional housing and support services to youth. An eligible applicant must 
680.7 	have staff on site 24 hours per day and must have established confidentiality protocols as 
680.8 	required by state and federal law.
680.9 	(b) "Living essentials" means clothing, toiletries, transportation, interpreters, other 
680.10 	supplies, and services necessary for daily living.
680.11 	(c) "Support services" has the meaning given in section 256E.33, subdivision 1, paragraph 
680.12 	(b), and includes crisis intervention, conflict mediation, family reunification services, 
680.13 	educational services, and employment resources.
680.14 	(d) "Transitional housing" means secure shelter and housing that:
680.15 	(1) is provided at low or no cost;
680.16 	(2) is designed to assist people transitioning from homelessness, family or relationship 
680.17 	violence, or sexual exploitation, to living independently in the community; and
680.18 	(3) provides residents with regular staff interaction, supervision plans, and living skills 
680.19 	training and assistance.
680.20 	(e) "Vulnerable youth" means youth 13 years of age through 17 years of age who have 
680.21 	reported histories of sexual exploitation or family or relationship violence. Vulnerable youth 
680.22 	includes youth who are homeless and youth who are parents and their children.
680.23 		Subd. 2.Grants authorized. The commissioner of human services may award grants 
680.24 	to eligible applicants to plan, establish, or operate programs to provide transitional housing 
680.25 	and support services to vulnerable youth. An applicant may apply for and the commissioner 
680.26 	may award grants for two-year periods, and the commissioner shall determine the number 
680.27 	of grants awarded. The commissioner may reallocate underspending among grantees within 
680.28 	the same grant period.
680.29 		Subd. 3.Program variance. For purposes of this grant program, the commissioner may 
680.30 	grant a program variance under chapter 245A allowing a program licensed to provide 
680.31 	transitional housing and support services to youth 16 years of age through 17 years of age 
680.32 	to serve youth 13 years of age through 17 years of age.
681.1 		Subd. 4.Allocation of grants. (a) An application must be on a form and contain 
681.2 	information as specified by the commissioner but at a minimum must contain:
681.3 	(1) a description of the purpose or project for which grant funds will be used;
681.4 	(2) a description of the specific problem the grant funds are intended to address;
681.5 	(3) a description of achievable objectives, a work plan, and a timeline for implementation 
681.6 	and completion of processes or projects enabled by the grant;
681.7 	(4) a description of the eligible applicant's existing frameworks and experience providing 
681.8 	transitional housing and support services to vulnerable youth; and
681.9 	(5) a proposed process for documenting and evaluating results of the grant.
681.10 	(b) Grant funds allocated under this section may be used for purposes that include, but 
681.11 	are not limited to, the following:
681.12 	(1) transitional housing, meals, and living essentials for vulnerable youth and their 
681.13 	children;
681.14 	(2) support services;
681.15 	(3) mental health and substance use disorder counseling;
681.16 	(4) staff training;
681.17 	(5) case management and referral services; and
681.18 	(6) aftercare and follow-up services, including ongoing adult and peer support.
681.19 	(c) The commissioner shall review each application to determine whether the application 
681.20 	is complete and whether the applicant and the project are eligible for a grant. In evaluating 
681.21 	applications, the commissioner shall establish criteria including, but not limited to:
681.22 	(1) the eligibility of the applicant or project;
681.23 	(2) the applicant's thoroughness and clarity in describing the problem grant funds are 
681.24 	intended to address;
681.25 	(3) a description of the population demographics and service area of the proposed project; 
681.26 	and
681.27 	(4) the proposed project's longevity and demonstrated financial sustainability after the 
681.28 	initial grant period.
682.1 	(d) In evaluating applications, the commissioner may request additional information 
682.2 	regarding a proposed project, including information on project cost. An applicant's failure 
682.3 	to provide the information requested disqualifies an applicant.
682.4 		Subd. 5.Awarding of grants. The commissioner must notify grantees of awards by 
682.5 	January 1, 2019.
682.6 		Subd. 6.Update. The commissioner shall consult with providers serving homeless youth, 
682.7 	sex-trafficked youth, or sexually exploited youth, including providers serving older youth 
682.8 	under the Safe Harbor Act and Homeless Youth Act to make recommendations that resolve 
682.9 	conflicting requirements placed on providers and foster best practices in delivering services 
682.10 	to these populations of older youth. The recommendations may include the development 
682.11 	of additional certifications not currently available under Minnesota Rules, chapter 2960. 
682.12 	The commissioner shall provide an update on the stakeholder work and recommendations 
682.13 	identified through this process to the chairs and ranking minority members of the legislative 
682.14 	committees with jurisdiction over health and human services finance and policy by January 
682.15 	15, 2019.

682.16 	Sec. 20. Minnesota Statutes 2016, section 260.835, subdivision 2, is amended to read:
682.17 		Subd. 2.Expiration. The American Indian Child Welfare Advisory Council expires 
682.18 	June 30, 2018 2023.

682.19 	Sec. 21. [260C.008] FOSTER CARE SIBLING BILL OF RIGHTS.
682.20 		Subdivision 1.Statement of rights. (a) A child placed in foster care who has a sibling 
682.21 	has the right to:
682.22 	(1) be placed in foster care homes with the child's siblings, when possible and when it 
682.23 	is in the best interest of each sibling, in order to sustain family relationships;
682.24 	(2) be placed in close geographical distance to the child's siblings, if placement together 
682.25 	is not possible, to facilitate frequent and meaningful contact;
682.26 	(3) have frequent contact with the child's siblings in foster care and, whenever possible, 
682.27 	with the child's siblings who are not in foster care, unless the responsible social services 
682.28 	agency has documented that contact is not in the best interest of any sibling. Contact includes, 
682.29 	but is not limited to, telephone calls, text messaging, social media and other Internet use, 
682.30 	and video calls;
682.31 	(4) annually receive a telephone number, address, and e-mail address for all siblings in 
682.32 	foster care, and receive updated photographs of siblings regularly, by regular mail or e-mail;
683.1 	(5) participate in regular face-to-face visits with the child's siblings in foster care and, 
683.2 	whenever possible, with the child's siblings who are not in foster care. Participation in these 
683.3 	visits shall not be withheld or restricted as a consequence for behavior, and shall only be 
683.4 	restricted if the responsible social services agency documents that the visits are contrary to 
683.5 	the safety or well-being of any sibling. Social workers, parents, foster care providers, and 
683.6 	older children must cooperate to ensure regular visits and must coordinate dates, times, 
683.7 	transportation, and other accommodations as necessary. The timing and regularity of visits 
683.8 	shall be outlined in each sibling's service plan, based on the individual circumstances and 
683.9 	needs of each child. A social worker need not give explicit permission for each visit or 
683.10 	possible overnight visit, but foster care providers shall communicate with social workers 
683.11 	about these visits;
683.12 	(6) be actively involved in each other's lives and share celebrations, if they choose to 
683.13 	do so, including but not limited to birthdays, holidays, graduations, school and extracurricular 
683.14 	activities, cultural customs in the siblings' native language, and other milestones;
683.15 	(7) be promptly informed about changes in sibling placements or circumstances, including 
683.16 	but not limited to new placements, discharge from placements, significant life events, and 
683.17 	discharge from foster care;
683.18 	(8) be included in permanency planning decisions for siblings, if appropriate; and
683.19 	(9) be informed of the expectations for and possibility of continued contact with a sibling 
683.20 	after an adoption or transfer of permanent physical and legal custody to a relative.
683.21 	(b) Adult siblings of children in foster care shall have the right to be considered as foster 
683.22 	care providers, adoptive parents, and relative custodians for their siblings, if they choose 
683.23 	to do so.
683.24 		Subd. 2.Interpretation. The rights under this section are established for the benefit of 
683.25 	siblings in foster care. This statement of rights does not replace or diminish other rights, 
683.26 	liberties, and responsibilities that may exist relative to children in foster care, adult siblings 
683.27 	of children in foster care, foster care providers, parents, relatives, or responsible social 
683.28 	services agencies.
683.29 		Subd. 3.Disclosure. Child welfare agency staff shall provide a copy of these rights to 
683.30 	a child who has a sibling at the time the child enters foster care, to any adult siblings of a 
683.31 	child entering foster care, if known, and to the foster care provider, in a format specified 
683.32 	by the commissioner of human services. The copy shall contain the address and telephone 
683.33 	number of the Office of Ombudsman for Families and a brief statement describing how to 
683.34 	file a complaint with the office.

684.1 	EFFECTIVE DATE. This section is effective for children entering foster care on or 
684.2 	after August 1, 2018. Subdivision 3 is effective August 1, 2018, and applies to all children 
684.3 	in foster care on that date, regardless of when the child entered foster care.

684.4 	Sec. 22. Minnesota Statutes 2016, section 518A.32, subdivision 3, is amended to read:
684.5 		Subd. 3.Parent not considered voluntarily unemployed, underemployed, or employed 
684.6 	on a less than full-time basis. A parent is not considered voluntarily unemployed, 
684.7 	underemployed, or employed on a less than full-time basis upon a showing by the parent 
684.8 	that:
684.9 	(1) the unemployment, underemployment, or employment on a less than full-time basis 
684.10 	is temporary and will ultimately lead to an increase in income;
684.11 	(2) the unemployment, underemployment, or employment on a less than full-time basis 
684.12 	represents a bona fide career change that outweighs the adverse effect of that parent's 
684.13 	diminished income on the child; or
684.14 	(3) the unemployment, underemployment, or employment on a less than full-time basis 
684.15 	is because a parent is physically or mentally incapacitated or due to incarceration, except 
684.16 	where the reason for incarceration is the parent's nonpayment of support.; or
684.17 	(4) the parent has been determined by an authorized government agency to be eligible 
684.18 	to receive general assistance or Supplemental Security Income payments. Any income, not 
684.19 	including public assistance payments, earned by the parent who is eligible for general 
684.20 	assistance or Supplemental Security Income payments may be considered for the purpose 
684.21 	of calculating child support.

684.22 	Sec. 23. Minnesota Statutes 2016, section 518A.685, is amended to read:
684.23 	518A.685 CONSUMER REPORTING AGENCY; REPORTING ARREARS.
684.24 	(a) If a public authority determines that an obligor has not paid the current monthly 
684.25 	support obligation plus any required arrearage payment for three months, the public authority 
684.26 	must report this information to a consumer reporting agency.
684.27 	(b) Before reporting that an obligor is in arrears for court-ordered child support, the 
684.28 	public authority must:
684.29 	(1) provide written notice to the obligor that the public authority intends to report the 
684.30 	arrears to a consumer reporting agency; and
685.1 	(2) mail the written notice to the obligor's last known mailing address at least 30 days 
685.2 	before the public authority reports the arrears to a consumer reporting agency.
685.3 	(c) The obligor may, within 21 days of receipt of the notice, do the following to prevent 
685.4 	the public authority from reporting the arrears to a consumer reporting agency:
685.5 	(1) pay the arrears in full; or
685.6 	(2) request an administrative review. An administrative review is limited to issues of 
685.7 	mistaken identity, a pending legal action involving the arrears, or an incorrect arrears balance.
685.8 	(d) If the public authority has reported that an obligor is in arrears for court-ordered 
685.9 	child support and subsequently determines that the obligor has paid the court-ordered child 
685.10 	support arrears in full, or is paying the current monthly support obligation plus any required 
685.11 	arrearage payment, the public authority must report to the consumer reporting agency that 
685.12 	the obligor is currently paying child support as ordered by the court.
685.13 	(e) (d) A public authority that reports arrearage information under this section must 
685.14 	make monthly reports to a consumer reporting agency. The monthly report must be consistent 
685.15 	with credit reporting industry standards for child support.
685.16 	(f) (e) For purposes of this section, "consumer reporting agency" has the meaning given 
685.17 	in section 13C.001, subdivision 4, and United States Code, title 15, section 1681a(f).

685.18 	Sec. 24. 2018 REPORT TO LEGISLATURE ON HOMELESS YOUTH.
 685.19 		Subdivision 1.Report development. In lieu of the biennial homeless youth report under 
685.20 	Minnesota Statutes, section 256K.45, subdivision 2, the commissioner of human services 
685.21 	shall update the information in the 2007 legislative report on runaway and homeless youth. 
685.22 	In developing the updated report, the commissioner may use existing data, studies, and 
685.23 	analysis provided by state, county, and other entities including, but not limited to:
685.24 	(1) Minnesota Housing Finance Agency analysis on housing availability;
685.25 	(2) Minnesota state plan to end homelessness;
685.26 	(3) continuum of care counts of youth experiencing homelessness and assessments as 
685.27 	provided by Department of Housing and Urban Development (HUD)-required coordinated 
685.28 	entry systems;
685.29 	(4) data collected through the Department of Human Services Homeless Youth Act grant 
685.30 	program;
685.31 	(5) Wilder Research homeless study;
686.1 	(6) Voices of Youth Count sponsored by Hennepin County; and
686.2 	(7) privately funded analysis, including:
686.3 	(i) nine evidence-based principles to support youth in overcoming homelessness;
686.4 	(ii) return on investment analysis conducted for YouthLink by Foldes Consulting; and
686.5 	(iii) evaluation of Homeless Youth Act resources conducted by Rainbow Research.
686.6 		Subd. 2.Key elements; due date. (a) The report may include three key elements where 
686.7 	significant learning has occurred in the state since the 2007 report, including:
686.8 	(1) unique causes of youth homelessness;
686.9 	(2) targeted responses to youth homelessness, including significance of positive youth 
686.10 	development as fundamental to each targeted response; and
686.11 	(3) recommendations based on existing reports and analysis on what it will take to end 
686.12 	youth homelessness.
686.13 	(b) To the extent data is available, the report must include:
686.14 	(1) general accounting of the federal and philanthropic funds leveraged to support 
686.15 	homeless youth activities;
686.16 	(2) general accounting of the increase in volunteer responses to support youth 
686.17 	experiencing homelessness; and
686.18 	(3) data-driven accounting of geographic areas or distinct populations that have gaps in 
686.19 	service or are not yet served by homeless youth responses.
686.20 	(c) The commissioner of human services may consult with community-based providers 
686.21 	of homeless youth services and other expert stakeholders to complete the report. The 
686.22 	commissioner shall submit the report to the chairs and ranking minority members of the 
686.23 	legislative committees with jurisdiction over youth homelessness by February 15, 2019.

686.24 	Sec. 25. DEPARTMENT OF INVESTIGATION, COMPLIANCE, AND 
686.25 	ELIGIBILITY.
 686.26 	(a) The commissioners of human services and health shall consider the benefits of 
686.27 	consolidating into one state agency the licensing, background study, and related oversight 
686.28 	functions currently in the Department of Human Services and Department of Health.
686.29 	(b) The revisor shall, in consultation with the commissioners of human services and 
686.30 	health, provide draft legislation for the chairs and ranking minority members of the senate 
687.1 	and house of representatives committees with jurisdiction over health and human services 
687.2 	by July 1, 2019.

687.3 	Sec. 26. COMMISSIONER OF HUMAN SERVICES CHILD CARE LICENSING 
687.4 	RULEMAKING AUTHORITY.
 687.5 	Notwithstanding any provision of law to the contrary, the commissioner of human 
687.6 	services may not adopt rules under Minnesota Statutes, chapter 14, that modify Minnesota 
687.7 	Rules, chapters 9502 and 9503, or adopt additional rules relating to child care licensing, 
687.8 	unless otherwise expressly authorized by law enacted on or after the effective date of this 
687.9 	section.

687.10 	EFFECTIVE DATE. This section is effective July 1, 2018.

687.11 	Sec. 27. TASK FORCE ON CHILDHOOD TRAUMA-INFORMED POLICY AND 
687.12 	PRACTICES.
 687.13 		Subdivision 1.Establishment. The commissioner of human services must establish and 
687.14 	appoint a task force on trauma-informed policy and practices to prevent and reduce children's 
687.15 	exposure to adverse childhood experiences (ACEs) consisting of the following members:
687.16 	(1) the commissioners of human services, public safety, health, and education or the 
687.17 	commissioners' designees;
687.18 	(2) two members representing law enforcement with expertise in juvenile justice;
687.19 	(3) two members representing county social services agencies;
687.20 	(4) four members, one representing each of the three ethnic councils established under 
687.21 	Minnesota Statutes, section 15.0145, and one representing the Indian Affairs Council 
687.22 	established under Minnesota Statutes, section 3.922;
687.23 	(5) two members representing tribal social services providers;
687.24 	(6) two members with expertise in prekindergarten through grade 12 education;
687.25 	(7) three licensed health care professionals with expertise in the neurobiology of 
687.26 	childhood development representing public health, mental health, and primary health;
687.27 	(8) one member representing family service or children's mental health collaboratives;
687.28 	(9) two parents who had ACEs;
687.29 	(10) two ombudspersons from the Minnesota Office of Ombudsperson for Families; and
688.1 	(11) representatives of any other group the commissioner of human services deems 
688.2 	appropriate to complete the duties of the task force.
688.3 		Subd. 2.Staff. The commissioner of human services must provide meeting space, support 
688.4 	staff, and administrative services for the task force.
688.5 		Subd. 3.Duties. The task force must perform the following duties:
688.6 	(1) engage the human services, education, public health, juvenile justice, and criminal 
688.7 	justice systems in the creation of trauma-informed policy and practices in each of these 
688.8 	systems to prevent and reduce ACEs and to support the health and well-being of all families; 
688.9 	and
688.10 	(2) identify social determinants of the health and well-being of all families and 
688.11 	recommend solutions to eliminate racial and ethnic disparities in the state.
688.12 		Subd. 4.Report. The task force must submit a report on the results of its duties outlined 
688.13 	in subdivision 3 and any policy recommendations to the chairs and ranking minority members 
688.14 	of the legislative committees with jurisdiction over health and human services, public safety, 
688.15 	judiciary, and education by January 15, 2019.
688.16 		Subd. 5.Expiration. The task force expires upon submission of the report required 
688.17 	under subdivision 4.

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

688.19 	Sec. 28. REVISOR'S INSTRUCTION.
 688.20 	The revisor of statutes, in consultation with the Department of Human Services, House 
688.21 	Research Department, and Senate Counsel, Research and Fiscal Analysis shall change the 
688.22 	terms "food support" and "food stamps" to "Supplemental Nutrition Assistance Program" 
688.23 	or "SNAP" in Minnesota Statutes and Minnesota Rules when appropriate. The revisor may 
688.24 	make technical and other necessary changes to sentence structure to preserve the meaning 
688.25 	of the text.

688.26 	ARTICLE 41
688.27 	STATE-OPERATED SERVICES; CHEMICAL AND MENTAL HEALTH

688.28 	Section 1. Minnesota Statutes 2016, section 13.851, is amended by adding a subdivision 
688.29 	to read:
689.1 		Subd. 11.Mental health screening. The treatment of data collected by a sheriff or local 
689.2 	corrections agency related to individuals who may have a mental illness is governed by 
689.3 	section 641.15, subdivision 3a.

689.4 	Sec. 2. Minnesota Statutes 2016, section 245A.04, subdivision 7, is amended to read:
689.5 		Subd. 7.Grant of license; license extension. (a) If the commissioner determines that 
689.6 	the program complies with all applicable rules and laws, the commissioner shall issue a 
689.7 	license consistent with this section or, if applicable, a temporary change of ownership license 
689.8 	under section 245A.043. At minimum, the license shall state:
689.9 	(1) the name of the license holder;
689.10 	(2) the address of the program;
689.11 	(3) the effective date and expiration date of the license;
689.12 	(4) the type of license;
689.13 	(5) the maximum number and ages of persons that may receive services from the program; 
689.14 	and
689.15 	(6) any special conditions of licensure.
689.16 	(b) The commissioner may issue an initiala license for a period not to exceed two years 
689.17 	if:
689.18 	(1) the commissioner is unable to conduct the evaluation or observation required by 
689.19 	subdivision 4, paragraph (a), clauses (3) and (4), because the program is not yet operational;
689.20 	(2) certain records and documents are not available because persons are not yet receiving 
689.21 	services from the program; and
689.22 	(3) the applicant complies with applicable laws and rules in all other respects.
689.23 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
689.24 	or persons will be placed or cared for in the licensed program. A license shall not be 
689.25 	transferable to another individual, corporation, partnership, voluntary association, other 
689.26 	organization, or controlling individual or to another location.
689.27 	(d) A license holder must notify the commissioner and obtain the commissioner's approval 
689.28 	before making any changes that would alter the license information listed under paragraph 
689.29 	(a).
689.30 	(e) (d) Except as provided in paragraphs (g) (f) and (h) (g), the commissioner shall not 
689.31 	issue or reissue a license if the applicant, license holder, or controlling individual has:
690.1 	(1) been disqualified and the disqualification was not set aside and no variance has been 
690.2 	granted;
690.3 	(2) been denied a license within the past two years;
690.4 	(3) had a license issued under this chapter revoked within the past five years;
690.5 	(4) an outstanding debt related to a license fee, licensing fine, or settlement agreement 
690.6 	for which payment is delinquent; or
690.7 	(5) failed to submit the information required of an applicant under subdivision 1, 
690.8 	paragraph (f) or (g), after being requested by the commissioner.
690.9 	When a license issued under this chapter is revoked under clause (1) or (3), the license 
690.10 	holder and controlling individual may not hold any license under chapter 245A or 245D for 
690.11 	five years following the revocation, and other licenses held by the applicant, license holder, 
690.12 	or controlling individual shall also be revoked.
690.13 	(f) (e) The commissioner shall not issue or reissue a license under this chapter if an 
690.14 	individual living in the household where the licensed services will be provided as specified 
690.15 	under section 245C.03, subdivision 1, has been disqualified and the disqualification has not 
690.16 	been set aside and no variance has been granted.
690.17 	(g) (f) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued 
690.18 	under this chapter has been suspended or revoked and the suspension or revocation is under 
690.19 	appeal, the program may continue to operate pending a final order from the commissioner. 
690.20 	If the license under suspension or revocation will expire before a final order is issued, a 
690.21 	temporary provisional license may be issued provided any applicable license fee is paid 
690.22 	before the temporary provisional license is issued.
690.23 	(h) (g) Notwithstanding paragraph (g) (f), when a revocation is based on the 
690.24 	disqualification of a controlling individual or license holder, and the controlling individual 
690.25 	or license holder is ordered under section 245C.17 to be immediately removed from direct 
690.26 	contact with persons receiving services or is ordered to be under continuous, direct 
690.27 	supervision when providing direct contact services, the program may continue to operate 
690.28 	only if the program complies with the order and submits documentation demonstrating 
690.29 	compliance with the order. If the disqualified individual fails to submit a timely request for 
690.30 	reconsideration, or if the disqualification is not set aside and no variance is granted, the 
690.31 	order to immediately remove the individual from direct contact or to be under continuous, 
690.32 	direct supervision remains in effect pending the outcome of a hearing and final order from 
690.33 	the commissioner.
691.1 	(i) (h) For purposes of reimbursement for meals only, under the Child and Adult Care 
691.2 	Food Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A, 
691.3 	part 226, relocation within the same county by a licensed family day care provider, shall 
691.4 	be considered an extension of the license for a period of no more than 30 calendar days or 
691.5 	until the new license is issued, whichever occurs first, provided the county agency has 
691.6 	determined the family day care provider meets licensure requirements at the new location.
691.7 	(j) (i) Unless otherwise specified by statute, all licenses issued under this chapter expire 
691.8 	at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
691.9 	apply for and be granted a new license to operate the program or the program must not be 
691.10 	operated after the expiration date.
691.11 	(k) (j) The commissioner shall not issue or reissue a license under this chapter if it has 
691.12 	been determined that a tribal licensing authority has established jurisdiction to license the 
691.13 	program or service.

691.14 	Sec. 3. Minnesota Statutes 2016, section 245A.04, is amended by adding a subdivision to 
691.15 	read:
691.16 		Subd. 7a.Notification required. (a) A license holder must notify the commissioner and 
691.17 	obtain the commissioner's approval before making any change that would alter the license 
691.18 	information listed under subdivision 7, paragraph (a).
691.19 	(b) At least 30 days before the effective date of a change, the license holder must notify 
691.20 	the commissioner in writing of any change:
691.21 	(1) to the license holder's controlling individual as defined in section 245A.02, subdivision 
691.22 	5a;
691.23 	(2) to license holder information on file with the secretary of state;
691.24 	(3) in the location of the program or service licensed under this chapter; and
691.25 	(4) in the federal or state tax identification number associated with the license holder.
691.26 	(c) When a license holder notifies the commissioner of a change to the business structure 
691.27 	governing the licensed program or services but is not selling the business, the license holder 
691.28 	must provide amended articles of incorporation and other documentation of the change and 
691.29 	any other information requested by the commissioner.

691.30 	EFFECTIVE DATE. This section is effective August 1, 2018.

692.1 	Sec. 4. [245A.043] LICENSE APPLICATION AFTER CHANGE OF OWNERSHIP.
692.2 		Subdivision 1.Transfer prohibited. A license issued under this chapter is only valid 
692.3 	for a premises and individual, organization, or government entity identified by the 
692.4 	commissioner on the license. A license is not transferable or assignable.
692.5 		Subd. 2.Change of ownership. If the commissioner determines that there will be a 
692.6 	change of ownership, the commissioner shall require submission of a new license application. 
692.7 	A change of ownership occurs when:
692.8 	(1) the license holder sells or transfers 100 percent of the property, stock, or assets;
692.9 	(2) the license holder merges with another organization;
692.10 	(3) the license holder consolidates with two or more organizations, resulting in the 
692.11 	creation of a new organization;
692.12 	(4) there is a change in the federal tax identification number associated with the license 
692.13 	holder; or
692.14 	(5) there is a turnover of each controlling individual associated with the license within 
692.15 	a 12-month period. A change to the license holder's controlling individuals, including a 
692.16 	change due to a transfer of stock, is not a change of ownership if at least one controlling 
692.17 	individual who was listed on the license for at least 12 consecutive months continues to be 
692.18 	a controlling individual after the reported change.
692.19 		Subd. 3.Change of ownership requirements. (a) A license holder who intends to 
692.20 	change the ownership of the program or service under subdivision 2 to a party that intends 
692.21 	to assume operation without an interruption in service longer than 60 days after acquiring 
692.22 	the program or service must provide the commissioner with written notice of the proposed 
692.23 	sale or change, on a form provided by the commissioner, at least 60 days before the 
692.24 	anticipated date of the change in ownership. For purposes of this subdivision and subdivision 
692.25 	4, "party" means the party that intends to operate the service or program.
692.26 	(b) The party must submit a license application under this chapter on a form and in the 
692.27 	manner prescribed by the commissioner at least 30 days before the change of ownership is 
692.28 	complete and must include documentation to support the upcoming change. The form and 
692.29 	manner of the application prescribed by the commissioner shall require only information 
692.30 	which is specifically required by statute or rule. The party must comply with background 
692.31 	study requirements under chapter 245C and shall pay the application fee required in section 
692.32 	245A.10. A party that intends to assume operation without an interruption in service longer 
693.1 	than 60 days after acquiring the program or service is exempt from the requirements of 
693.2 	Minnesota Rules, part 9530.6800.
693.3 	(c) The commissioner may develop streamlined application procedures when the party 
693.4 	is an existing license holder under this chapter and is acquiring a program licensed under 
693.5 	this chapter or service in the same service class as one or more licensed programs or services 
693.6 	the party operates and those licenses are in substantial compliance according to the licensing 
693.7 	standards in this chapter and applicable rules. For purposes of this subdivision, "substantial 
693.8 	compliance" means within the past 12 months the commissioner did not: (i) issue a sanction 
693.9 	under section 245A.07 against a license held by the party or (ii) make a license held by the 
693.10 	party conditional according to section 245A.06.
693.11 	(d) Except when a temporary change of ownership license is issued pursuant to 
693.12 	subdivision 4, the existing license holder is solely responsible for operating the program 
693.13 	according to applicable rules and statutes until a license under this chapter is issued to the 
693.14 	party.
693.15 	(e) If a licensing inspection of the program or service was conducted within the previous 
693.16 	12 months and the existing license holder's license record demonstrates substantial 
693.17 	compliance with the applicable licensing requirements, the commissioner may waive the 
693.18 	party's inspection required by section 245A.04, subdivision 4. The party must submit to the 
693.19 	commissioner proof that the premises was inspected by a fire marshal or that the fire marshal 
693.20 	deemed that an inspection was not warranted and proof that the premises was inspected for 
693.21 	compliance with the building code or that no inspection was deemed warranted.
693.22 	(f) If the party is seeking a license for a program or service that has an outstanding 
693.23 	correction order, the party must submit a letter with the license application identifying how 
693.24 	and within what length of time the party shall resolve the outstanding correction order and 
693.25 	come into full compliance with the licensing requirements.
693.26 	(g) Any action taken under section 245A.06 or 245A.07 against the existing license 
693.27 	holder's license at the time the party is applying for a license, including when the existing 
693.28 	license holder is operating under a conditional license or is subject to a revocation, shall 
693.29 	remain in effect until the commissioner determines that the grounds for the action are 
693.30 	corrected or no longer exist.
693.31 	(h) The commissioner shall evaluate the application of the party according to section 
693.32 	245A.04, subdivision 6. Pursuant to section 245A.04, subdivision 7, if the commissioner 
693.33 	determines that the party complies with applicable laws and rules, the commissioner may 
693.34 	issue a license or a temporary change of ownership license.
694.1 	(i) The commissioner may deny an application as provided in section 245A.05. An 
694.2 	applicant whose application was denied by the commissioner may appeal the denial according 
694.3 	to section 245A.05.
694.4 	(j) This subdivision does not apply to a licensed program or service located in a home 
694.5 	where the license holder resides.
694.6 		Subd. 4.Temporary change of ownership license. (a) After receiving the party's 
694.7 	application and upon the written request of the existing license holder and the party, the 
694.8 	commissioner may issue a temporary change of ownership license to the party while the 
694.9 	commissioner evaluates the party's application. Until a decision is made to grant or deny a 
694.10 	license under this chapter, the existing license holder and the party shall both be responsible 
694.11 	for operating the program or service according to applicable laws and rules, and the sale or 
694.12 	transfer of the license holder's ownership interest in the licensed program or service does 
694.13 	not terminate the existing license.
694.14 	(b) The commissioner may establish criteria to issue a temporary change of ownership 
694.15 	license, if a license holder's death, divorce, or other event affects the ownership of the 
694.16 	program, when an applicant seeks to assume operation of the program or service to ensure 
694.17 	continuity of the program or service while a license application is evaluated. This subdivision 
694.18 	applies to any program or service licensed under this chapter.

694.19 	EFFECTIVE DATE. This section is effective August 1, 2018.

694.20 	Sec. 5. Minnesota Statutes 2016, section 245C.22, subdivision 4, is amended to read:
694.21 		Subd. 4.Risk of harm; set aside. (a) The commissioner may set aside the disqualification 
694.22 	if the commissioner finds that the individual has submitted sufficient information to 
694.23 	demonstrate that the individual does not pose a risk of harm to any person served by the 
694.24 	applicant, license holder, or other entities as provided in this chapter.
694.25 	(b) In determining whether the individual has met the burden of proof by demonstrating 
694.26 	the individual does not pose a risk of harm, the commissioner shall consider:
694.27 	(1) the nature, severity, and consequences of the event or events that led to the 
694.28 	disqualification;
694.29 	(2) whether there is more than one disqualifying event;
694.30 	(3) the age and vulnerability of the victim at the time of the event;
694.31 	(4) the harm suffered by the victim;
694.32 	(5) vulnerability of persons served by the program;
695.1 	(6) the similarity between the victim and persons served by the program;
695.2 	(7) the time elapsed without a repeat of the same or similar event;
695.3 	(8) documentation of successful completion by the individual studied of training or 
695.4 	rehabilitation pertinent to the event; and
695.5 	(9) any other information relevant to reconsideration.
695.6 	(c) If the individual requested reconsideration on the basis that the information relied 
695.7 	upon to disqualify the individual was incorrect or inaccurate and the commissioner determines 
695.8 	that the information relied upon to disqualify the individual is correct, the commissioner 
695.9 	must also determine if the individual poses a risk of harm to persons receiving services in 
695.10 	accordance with paragraph (b).
695.11 	(d) For an individual in the chemical dependency field, the commissioner must set aside 
695.12 	the disqualification if the following criteria are met:
695.13 	(1) the individual submits sufficient documentation to demonstrate that the individual 
695.14 	is a nonviolent controlled substance offender under section 244.0513, subdivision 2, clauses 
695.15 	(1), (2), and (6);
695.16 	(2) the individual is disqualified exclusively for one or more offenses listed under section 
695.17 	152.021, subdivision 2 or 2a; 152.022, subdivision 2; 152.023, subdivision 2; 152.024; or 
695.18 	152.025;
695.19 	(3) the individual provided documentation of successful completion of treatment, at least 
695.20 	one year prior to the date of the request for reconsideration, at a program licensed under 
695.21 	chapter 245G;
695.22 	(4) the individual provided documentation demonstrating abstinence from controlled 
695.23 	substances, as defined in section 152.01, subdivision 4, for the period one year prior to the 
695.24 	date of the request for reconsideration; and
695.25 	(5) the individual is seeking employment in the chemical dependency field.

695.26 	Sec. 6. Minnesota Statutes 2017 Supplement, section 245C.22, subdivision 5, is amended 
695.27 	to read:
695.28 		Subd. 5.Scope of set-aside. (a) If the commissioner sets aside a disqualification under 
695.29 	this section, the disqualified individual remains disqualified, but may hold a license and 
695.30 	have direct contact with or access to persons receiving services. Except as provided in 
695.31 	paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the 
695.32 	licensed program, applicant, or agency specified in the set aside notice under section 245C.23. 
696.1 	For personal care provider organizations, the commissioner's set-aside may further be limited 
696.2 	to a specific individual who is receiving services. For new background studies required 
696.3 	under section 245C.04, subdivision 1, paragraph (h), if an individual's disqualification was 
696.4 	previously set aside for the license holder's program and the new background study results 
696.5 	in no new information that indicates the individual may pose a risk of harm to persons 
696.6 	receiving services from the license holder, the previous set-aside shall remain in effect.
696.7 	(b) If the commissioner has previously set aside an individual's disqualification for one 
696.8 	or more programs or agencies, and the individual is the subject of a subsequent background 
696.9 	study for a different program or agency, the commissioner shall determine whether the 
696.10 	disqualification is set aside for the program or agency that initiated the subsequent 
696.11 	background study. A notice of a set-aside under paragraph (c) shall be issued within 15 
696.12 	working days if all of the following criteria are met:
696.13 	(1) the subsequent background study was initiated in connection with a program licensed 
696.14 	or regulated under the same provisions of law and rule for at least one program for which 
696.15 	the individual's disqualification was previously set aside by the commissioner;
696.16 	(2) the individual is not disqualified for an offense specified in section 245C.15, 
696.17 	subdivision 1 or 2;
696.18 	(3) the individual is not disqualified for an offense specified in section 245C.15, 
696.19 	subdivision 2, unless the individual is employed in the chemical dependency field;
696.20 	(4) the commissioner has received no new information to indicate that the individual 
696.21 	may pose a risk of harm to any person served by the program; and
696.22 	(4)(5) the previous set-aside was not limited to a specific person receiving services.
696.23 	(c) When a disqualification is set aside under paragraph (b), the notice of background 
696.24 	study results issued under section 245C.17, in addition to the requirements under section 
696.25 	245C.17, shall state that the disqualification is set aside for the program or agency that 
696.26 	initiated the subsequent background study. The notice must inform the individual that the 
696.27 	individual may request reconsideration of the disqualification under section 245C.21 on the 
696.28 	basis that the information used to disqualify the individual is incorrect.

696.29 	Sec. 7. Minnesota Statutes 2016, section 254B.02, subdivision 1, is amended to read:
696.30 		Subdivision 1.Chemical dependency treatment allocation. The chemical dependency 
696.31 	treatment appropriation shall be placed in a special revenue account. The commissioner 
696.32 	shall annually transfer funds from the chemical dependency fund to pay for operation of 
696.33 	the drug and alcohol abuse normative evaluation system and to pay for all costs incurred 
697.1 	by adding two positions for licensing of chemical dependency treatment and rehabilitation 
697.2 	programs located in hospitals for which funds are not otherwise appropriated. The remainder 
697.3 	of the money in the special revenue account must be used according to the requirements in 
697.4 	this chapter.

697.5 	EFFECTIVE DATE. This section is effective July 1, 2018.

697.6 	Sec. 8. Minnesota Statutes 2017 Supplement, section 254B.03, subdivision 2, is amended 
697.7 	to read:
697.8 		Subd. 2.Chemical dependency fund payment. (a) Payment from the chemical 
697.9 	dependency fund is limited to payments for services other than detoxification licensed under 
697.10 	Minnesota Rules, parts 9530.6510 to 9530.6590, that, if located outside of federally 
697.11 	recognized tribal lands, would be required to be licensed by the commissioner as a chemical 
697.12 	dependency treatment or rehabilitation program under sections 245A.01 to 245A.16, and 
697.13 	services other than detoxification provided in another state that would be required to be 
697.14 	licensed as a chemical dependency program if the program were in the state. Out of state 
697.15 	vendors must also provide the commissioner with assurances that the program complies 
697.16 	substantially with state licensing requirements and possesses all licenses and certifications 
697.17 	required by the host state to provide chemical dependency treatment. Vendors receiving 
697.18 	payments from the chemical dependency fund must not require co-payment from a recipient 
697.19 	of benefits for services provided under this subdivision. The vendor is prohibited from using 
697.20 	the client's public benefits to offset the cost of services paid under this section. The vendor 
697.21 	shall not require the client to use public benefits for room or board costs. This includes but 
697.22 	is not limited to cash assistance benefits under chapters 119B, 256D, and 256J, or SNAP 
697.23 	benefits. Retention of SNAP benefits is a right of a client receiving services through the 
697.24 	consolidated chemical dependency treatment fund or through state contracted managed care 
697.25 	entities. Payment from the chemical dependency fund shall be made for necessary room 
697.26 	and board costs provided by vendors certified according to section 254B.05, or in a 
697.27 	community hospital licensed by the commissioner of health according to sections 144.50
697.28 	to 144.56 to a client who is:
697.29 	(1) determined to meet the criteria for placement in a residential chemical dependency 
697.30 	treatment program according to rules adopted under section 254A.03, subdivision 3; and
697.31 	(2) concurrently receiving a chemical dependency treatment service in a program licensed 
697.32 	by the commissioner and reimbursed by the chemical dependency fund.
697.33 	(b) A county may, from its own resources, provide chemical dependency services for 
697.34 	which state payments are not made. A county may elect to use the same invoice procedures 
698.1 	and obtain the same state payment services as are used for chemical dependency services 
698.2 	for which state payments are made under this section if county payments are made to the 
698.3 	state in advance of state payments to vendors. When a county uses the state system for 
698.4 	payment, the commissioner shall make monthly billings to the county using the most recent 
698.5 	available information to determine the anticipated services for which payments will be made 
698.6 	in the coming month. Adjustment of any overestimate or underestimate based on actual 
698.7 	expenditures shall be made by the state agency by adjusting the estimate for any succeeding 
698.8 	month.
698.9 	(c) The commissioner shall coordinate chemical dependency services and determine 
698.10 	whether there is a need for any proposed expansion of chemical dependency treatment 
698.11 	services. The commissioner shall deny vendor certification to any provider that has not 
698.12 	received prior approval from the commissioner for the creation of new programs or the 
698.13 	expansion of existing program capacity. The commissioner shall consider the provider's 
698.14 	capacity to obtain clients from outside the state based on plans, agreements, and previous 
698.15 	utilization history, when determining the need for new treatment services The commissioner 
698.16 	may deny vendor certification to a provider if the commissioner determines that the services 
698.17 	currently available in the local area are sufficient to meet local need and that the addition 
698.18 	of new services would be detrimental to individuals seeking these services.

698.19 	Sec. 9. Minnesota Statutes 2016, section 254B.06, subdivision 1, is amended to read:
698.20 		Subdivision 1.State collections. The commissioner is responsible for all collections 
698.21 	from persons determined to be partially responsible for the cost of care of an eligible person 
698.22 	receiving services under Laws 1986, chapter 394, sections 8 to 20. The commissioner may 
698.23 	initiate, or request the attorney general to initiate, necessary civil action to recover the unpaid 
698.24 	cost of care. The commissioner may collect all third-party payments for chemical dependency 
698.25 	services provided under Laws 1986, chapter 394, sections 8 to 20, including private insurance 
698.26 	and federal Medicaid and Medicare financial participation. The commissioner shall deposit 
698.27 	in a dedicated account a percentage of collections to pay for the cost of operating the chemical 
698.28 	dependency consolidated treatment fund invoice processing and vendor payment system, 
698.29 	billing, and collections. The remaining receipts must be deposited in the chemical dependency 
698.30 	fund.

698.31 	EFFECTIVE DATE. This section is effective July 1, 2018.

699.1 	Sec. 10. Minnesota Statutes 2017 Supplement, section 256.045, subdivision 3, is amended 
699.2 	to read:
699.3 		Subd. 3.State agency hearings. (a) State agency hearings are available for the following:
699.4 	(1) any person applying for, receiving or having received public assistance, medical 
699.5 	care, or a program of social services granted by the state agency or a county agency or the 
699.6 	federal Food Stamp Act whose application for assistance is denied, not acted upon with 
699.7 	reasonable promptness, or whose assistance is suspended, reduced, terminated, or claimed 
699.8 	to have been incorrectly paid;
699.9 	(2) any patient or relative aggrieved by an order of the commissioner under section 
699.10 	252.27;
699.11 	(3) a party aggrieved by a ruling of a prepaid health plan;
699.12 	(4) except as provided under chapter 245C, any individual or facility determined by a 
699.13 	lead investigative agency to have maltreated a vulnerable adult under section 626.557 after 
699.14 	they have exercised their right to administrative reconsideration under section 626.557;
699.15 	(5) any person whose claim for foster care payment according to a placement of the 
699.16 	child resulting from a child protection assessment under section 626.556 is denied or not 
699.17 	acted upon with reasonable promptness, regardless of funding source;
699.18 	(6) any person to whom a right of appeal according to this section is given by other 
699.19 	provision of law;
699.20 	(7) an applicant aggrieved by an adverse decision to an application for a hardship waiver 
699.21 	under section 256B.15;
699.22 	(8) an applicant aggrieved by an adverse decision to an application or redetermination 
699.23 	for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a;
699.24 	(9) except as provided under chapter 245A, an individual or facility determined to have 
699.25 	maltreated a minor under section 626.556, after the individual or facility has exercised the 
699.26 	right to administrative reconsideration under section 626.556;
699.27 	(10) except as provided under chapter 245C, an individual disqualified under sections 
699.28 	245C.14 and 245C.15, following a reconsideration decision issued under section 245C.23, 
699.29 	on the basis of serious or recurring maltreatment; a preponderance of the evidence that the 
699.30 	individual has committed an act or acts that meet the definition of any of the crimes listed 
699.31 	in section 245C.15, subdivisions 1 to 4; or for failing to make reports required under section 
699.32 	626.556, subdivision 3, or 626.557, subdivision 3. Hearings regarding a maltreatment 
700.1 	determination under clause (4) or (9) and a disqualification under this clause in which the 
700.2 	basis for a disqualification is serious or recurring maltreatment, shall be consolidated into 
700.3 	a single fair hearing. In such cases, the scope of review by the human services judge shall 
700.4 	include both the maltreatment determination and the disqualification. The failure to exercise 
700.5 	the right to an administrative reconsideration shall not be a bar to a hearing under this section 
700.6 	if federal law provides an individual the right to a hearing to dispute a finding of 
700.7 	maltreatment;
700.8 	(11) any person with an outstanding debt resulting from receipt of public assistance, 
700.9 	medical care, or the federal Food Stamp Act who is contesting a setoff claim by the 
700.10 	Department of Human Services or a county agency. The scope of the appeal is the validity 
700.11 	of the claimant agency's intention to request a setoff of a refund under chapter 270A against 
700.12 	the debt;
700.13 	(12) a person issued a notice of service termination under section 245D.10, subdivision 
700.14 	3a, from residential supports and services as defined in section 245D.03, subdivision 1, 
700.15 	paragraph (c), clause (3), that is not otherwise subject to appeal under subdivision 4a;
700.16 	(13) an individual disability waiver recipient based on a denial of a request for a rate 
700.17 	exception under section 256B.4914; or
700.18 	(14) a person issued a notice of service termination under section 245A.11, subdivision 
700.19 	11, that is not otherwise subject to appeal under subdivision 4a.; or
700.20 	(15) a county disputes cost of care under section 246.54 based on administrative or other 
700.21 	delay of a client's discharge from a state-operated facility after notification to a county that 
700.22 	the client no longer meets medical criteria for the state-operated facility, when the county 
700.23 	has developed a viable discharge plan.
700.24 	(b) The hearing for an individual or facility under paragraph (a), clause (4), (9), or (10), 
700.25 	is the only administrative appeal to the final agency determination specifically, including 
700.26 	a challenge to the accuracy and completeness of data under section 13.04. Hearings requested 
700.27 	under paragraph (a), clause (4), apply only to incidents of maltreatment that occur on or 
700.28 	after October 1, 1995. Hearings requested by nursing assistants in nursing homes alleged 
700.29 	to have maltreated a resident prior to October 1, 1995, shall be held as a contested case 
700.30 	proceeding under the provisions of chapter 14. Hearings requested under paragraph (a), 
700.31 	clause (9), apply only to incidents of maltreatment that occur on or after July 1, 1997. A 
700.32 	hearing for an individual or facility under paragraph (a), clauses (4), (9), and (10), is only 
700.33 	available when there is no district court action pending. If such action is filed in district 
700.34 	court while an administrative review is pending that arises out of some or all of the events 
701.1 	or circumstances on which the appeal is based, the administrative review must be suspended 
701.2 	until the judicial actions are completed. If the district court proceedings are completed, 
701.3 	dismissed, or overturned, the matter may be considered in an administrative hearing.
701.4 	(c) For purposes of this section, bargaining unit grievance procedures are not an 
701.5 	administrative appeal.
701.6 	(d) The scope of hearings involving claims to foster care payments under paragraph (a), 
701.7 	clause (5), shall be limited to the issue of whether the county is legally responsible for a 
701.8 	child's placement under court order or voluntary placement agreement and, if so, the correct 
701.9 	amount of foster care payment to be made on the child's behalf and shall not include review 
701.10 	of the propriety of the county's child protection determination or child placement decision.
701.11 	(e) The scope of hearings under paragraph (a), clauses (12) and (14), shall be limited to 
701.12 	whether the proposed termination of services is authorized under section 245D.10, 
701.13 	subdivision 3a, paragraph (b), or 245A.11, subdivision 11, and whether the requirements 
701.14 	of section 245D.10, subdivision 3a, paragraphs (c) to (e), or 245A.11, subdivision 2a, 
701.15 	paragraphs (d) to (f), were met. If the appeal includes a request for a temporary stay of 
701.16 	termination of services, the scope of the hearing shall also include whether the case 
701.17 	management provider has finalized arrangements for a residential facility, a program, or 
701.18 	services that will meet the assessed needs of the recipient by the effective date of the service 
701.19 	termination.
701.20 	(f) A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor 
701.21 	under contract with a county agency to provide social services is not a party and may not 
701.22 	request a hearing under this section, except if assisting a recipient as provided in subdivision 
701.23 	4.
701.24 	(g) An applicant or recipient is not entitled to receive social services beyond the services 
701.25 	prescribed under chapter 256M or other social services the person is eligible for under state 
701.26 	law.
701.27 	(h) The commissioner may summarily affirm the county or state agency's proposed 
701.28 	action without a hearing when the sole issue is an automatic change due to a change in state 
701.29 	or federal law.
701.30 	(i) Unless federal or Minnesota law specifies a different time frame in which to file an 
701.31 	appeal, an individual or organization specified in this section may contest the specified 
701.32 	action, decision, or final disposition before the state agency by submitting a written request 
701.33 	for a hearing to the state agency within 30 days after receiving written notice of the action, 
701.34 	decision, or final disposition, or within 90 days of such written notice if the applicant, 
702.1 	recipient, patient, or relative shows good cause, as defined in section 256.0451, subdivision 
702.2 	13, why the request was not submitted within the 30-day time limit. The individual filing 
702.3 	the appeal has the burden of proving good cause by a preponderance of the evidence.

702.4 	Sec. 11. Minnesota Statutes 2017 Supplement, section 256B.0625, subdivision 56a, is 
702.5 	amended to read:
702.6 		Subd. 56a.Post-arrestOfficer-involved community-based servicecare coordination.
 702.7 	(a) Medical assistance covers post-arrestofficer-involved community-based servicecare 
702.8 	coordination for an individual who:
702.9 	(1) has been identified as havingscreened positive for benefiting from treatment for a 
702.10 	mental illness or substance use disorder using a screening tool approved by the commissioner;
702.11 	(2) does not require the security of a public detention facility and is not considered an 
702.12 	inmate of a public institution as defined in Code of Federal Regulations, title 42, section 
702.13 	435.1010;
702.14 	(3) meets the eligibility requirements in section 256B.056; and
702.15 	(4) has agreed to participate in post-arrestofficer-involved community-based service
702.16 	care coordination through a diversion contract in lieu of incarceration.
702.17 	(b) Post-arrest Officer-involved community-based servicecare coordination means 
702.18 	navigating services to address a client's mental health, chemical health, social, economic, 
702.19 	and housing needs, or any other activity targeted at reducing the incidence of jail utilization 
702.20 	and connecting individuals with existing covered services available to them, including, but 
702.21 	not limited to, targeted case management, waiver case management, or care coordination.
702.22 	(c) Post-arrestOfficer-involved community-based servicecare coordination must be 
702.23 	provided by an individual who is an employee of a county or is under contract with a county, 
702.24 	or is an employee of or under contract with an Indian health service facility or facility owned 
702.25 	and operated by a tribe or a tribal organization operating under Public Law 93-638 as a 638 
702.26 	facility to provide post-arrestofficer-involved community-based care coordination and is 
702.27 	qualified under one of the following criteria:
702.28 	(1) a licensed mental health professional as defined in section 245.462, subdivision 18, 
702.29 	clauses (1) to (6);
702.30 	(2) a mental health practitioner as defined in section 245.462, subdivision 17, working 
702.31 	under the clinical supervision of a mental health professional; or
703.1 	(3) a certified peer specialist under section 256B.0615, working under the clinical 
703.2 	supervision of a mental health professional;
703.3 	(4) an individual qualified as an alcohol and drug counselor under section 254G.11, 
703.4 	subdivision 5; or
703.5 	(5) a recovery peer qualified under section 245G.11, subdivision 8, working under the 
703.6 	supervision of an individual qualified as an alcohol and drug counselor under section 
703.7 	245G.11, subdivision 5.
703.8 	(d) Reimbursement is allowed for up to 60 days following the initial determination of 
703.9 	eligibility.
703.10 	(e) Providers of post-arrestofficer-involved community-based servicecare coordination 
703.11 	shall annually report to the commissioner on the number of individuals served, and number 
703.12 	of the community-based services that were accessed by recipients. The commissioner shall 
703.13 	ensure that services and payments provided under post-arrestofficer-involved 
703.14 	community-based servicecare coordination do not duplicate services or payments provided 
703.15 	under section 256B.0625, subdivision 20, 256B.0753, 256B.0755, or 256B.0757.
703.16 	(f) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of cost for 
703.17 	post-arrest community-based service coordination services shall be provided by the county 
703.18 	providing the services, from sources other than federal funds or funds used to match other 
703.19 	federal funds.

703.20 	Sec. 12. Minnesota Statutes 2017 Supplement, section 256B.0941, subdivision 3, is 
703.21 	amended to read:
703.22 		Subd. 3.Per diem rate. (a) The commissioner shall establish a statewide per diem rate 
703.23 	for psychiatric residential treatment facility services for individuals 21 years of age or 
703.24 	younger. The rate for a provider must not exceed the rate charged by that provider for the 
703.25 	same service to other payers. Payment must not be made to more than one entity for each 
703.26 	individual for services provided under this section on a given day. The commissioner shall 
703.27 	set rates prospectively for the annual rate period. The commissioner shall require providers 
703.28 	to submit annual cost reports on a uniform cost reporting form and shall use submitted cost 
703.29 	reports to inform the rate-setting process. The cost reporting shall be done according to 
703.30 	federal requirements for Medicare cost reports.
703.31 	(b) The following are included in the rate:
703.32 	(1) costs necessary for licensure and accreditation, meeting all staffing standards for 
703.33 	participation, meeting all service standards for participation, meeting all requirements for 
704.1 	active treatment, maintaining medical records, conducting utilization review, meeting 
704.2 	inspection of care, and discharge planning. The direct services costs must be determined 
704.3 	using the actual cost of salaries, benefits, payroll taxes, and training of direct services staff 
704.4 	and service-related transportation; and
704.5 	(2) payment for room and board provided by facilities meeting all accreditation and 
704.6 	licensing requirements for participation.
704.7 	(c) A facility may submit a claim for payment outside of the per diem for professional 
704.8 	services arranged by and provided at the facility by an appropriately licensed professional 
704.9 	who is enrolled as a provider with Minnesota health care programs. Arranged services must 
704.10 	be billed by the facility on a separate claim, and the facility shall be responsible for payment 
704.11 	to the provider may be billed by either the facility or the licensed professional. These services 
704.12 	must be included in the individual plan of care and are subject to prior authorization by the 
704.13 	state's medical review agent.
704.14 	(d) Medicaid shall reimburse for concurrent services as approved by the commissioner 
704.15 	to support continuity of care and successful discharge from the facility. "Concurrent services" 
704.16 	means services provided by another entity or provider while the individual is admitted to a 
704.17 	psychiatric residential treatment facility. Payment for concurrent services may be limited 
704.18 	and these services are subject to prior authorization by the state's medical review agent. 
704.19 	Concurrent services may include targeted case management, assertive community treatment, 
704.20 	clinical care consultation, team consultation, and treatment planning.
704.21 	(e) Payment rates under this subdivision shall not include the costs of providing the 
704.22 	following services:
704.23 	(1) educational services;
704.24 	(2) acute medical care or specialty services for other medical conditions;
704.25 	(3) dental services; and
704.26 	(4) pharmacy drug costs.
704.27 	(f) For purposes of this section, "actual cost" means costs that are allowable, allocable, 
704.28 	reasonable, and consistent with federal reimbursement requirements in Code of Federal 
704.29 	Regulations, title 48, chapter 1, part 31, relating to for-profit entities, and the Office of 
704.30 	Management and Budget Circular Number A-122, relating to nonprofit entities.

705.1 	Sec. 13. Minnesota Statutes 2016, section 641.15, subdivision 3a, is amended to read:
705.2 		Subd. 3a.Intake procedure; approved mental health screening. As part of its intake 
705.3 	procedure for new prisoners inmates, the sheriff or local corrections shall use a mental health 
705.4 	screening tool approved by the commissioner of corrections in consultation with the 
705.5 	commissioner of human services and local corrections staff to identify persons who may 
705.6 	have mental illness. Names of persons who have screened positive or may have a mental 
705.7 	illness may be shared with the local county social services agency. The jail may refer an 
705.8 	offender to county personnel of the welfare system, as defined in section 13.46, subdivision 
705.9 	1, paragraph (c), in order to arrange for services upon discharge and may share private data 
705.10 	as necessary to carry out the following:
705.11 	(1) providing assistance in filling out an application for medical assistance or 
705.12 	MinnesotaCare;
705.13 	(2) making a referral for case management as outlined under section 245.467, subdivision 
705.14 	4;
705.15 	(3) providing assistance in obtaining a state photo identification;
705.16 	(4) securing a timely appointment with a psychiatrist or other appropriate community 
705.17 	mental health provider;
705.18 	(5) providing prescriptions for a 30-day supply of all necessary medications; or
705.19 	(6) behavioral health service coordination.

705.20 	Sec. 14. Laws 2017, First Special Session chapter 6, article 8, section 71, the effective 
705.21 	date, is amended to read:

705.22 	EFFECTIVE DATE. This section is effective for services provided on July 1, 2017, 
705.23 	through April 30, 2019, and expires May 1, 2019 June 30, 2019, and expires July 1, 2019.

705.24 	Sec. 15. Laws 2017, First Special Session chapter 6, article 8, section 72, the effective 
705.25 	date, is amended to read:

705.26 	EFFECTIVE DATE. This section is effective for services provided on July 1, 2017, 
705.27 	through April 30, 2019, and expires May 1, 2019 June 30, 2019, and expires July 1, 2019.

706.1 	Sec. 16. Laws 2017, First Special Session chapter 6, article 8, section 74, is amended to 
706.2 	read:
706.3 	Sec. 74. CHILDREN'S MENTAL HEALTH REPORT AND 
706.4 	RECOMMENDATIONS.
 706.5 	The commissioner of human services shall conduct a comprehensive analysis of 
706.6 	Minnesota's continuum of intensive mental health services and shall develop 
706.7 	recommendations for a sustainable and community-driven continuum of care for children 
706.8 	with serious mental health needs, including children currently being served in residential 
706.9 	treatment. The commissioner's analysis shall include, but not be limited to:
706.10 	(1) data related to access, utilization, efficacy, and outcomes for Minnesota's current 
706.11 	system of residential mental health treatment for a child with a severe emotional disturbance;
706.12 	(2) potential expansion of the state's psychiatric residential treatment facility (PRTF) 
706.13 	capacity, including increasing the number of PRTF beds and conversion of existing children's 
706.14 	mental health residential treatment programs into PRTFs;
706.15 	(3) the capacity need for PRTF and other group settings within the state if adequate 
706.16 	community-based alternatives are accessible, equitable, and effective statewide;
706.17 	(4) recommendations for expanding alternative community-based service models to 
706.18 	meet the needs of a child with a serious mental health disorder who would otherwise require 
706.19 	residential treatment and potential service models that could be utilized, including data 
706.20 	related to access, utilization, efficacy, and outcomes;
706.21 	(5) models of care used in other states; and
706.22 	(6) analysis and specific recommendations for the design and implementation of new 
706.23 	service models, including analysis to inform rate setting as necessary.
706.24 	The analysis shall be supported and informed by extensive stakeholder engagement. 
706.25 	Stakeholders include individuals who receive services, family members of individuals who 
706.26 	receive services, providers, counties, health plans, advocates, and others. Stakeholder 
706.27 	engagement shall include interviews with key stakeholders, intentional outreach to individuals 
706.28 	who receive services and the individual's family members, and regional listening sessions.
706.29 	The commissioner shall provide a report with specific recommendations and timelines 
706.30 	for implementation to the legislative committees with jurisdiction over children's mental 
706.31 	health policy and finance by November 15, 2018 January 15, 2019.

707.1 	Sec. 17. STUDENT HEALTH INITIATIVE TO LIMIT OPIOID HARM.
 707.2 		Subdivision 1.Grant awards. The commissioner of human services, in consultation 
707.3 	with the commissioner of education, the Board of Trustees of the Minnesota State Colleges 
707.4 	and Universities, the Board of Directors of the Minnesota Private College Council, and the 
707.5 	regents of the University of Minnesota, shall develop and administer a program to award 
707.6 	grants to secondary school students in grades 7 through 12 and undergraduate students 
707.7 	attending a Minnesota postsecondary educational institution, and their community partner 
707.8 	or partners, to conduct opioid awareness and opioid abuse prevention activities. If a grant 
707.9 	proposal includes more than one community partner, the proposal must designate a primary 
707.10 	community partner. Grant applications must be submitted by the primary community partner 
707.11 	and any grant award must be managed by the primary community partner on behalf of 
707.12 	secondary school and undergraduate student applicants and grantees. Grants are onetime 
707.13 	and available to the grantee through June 30, 2021.
707.14 		Subd. 2.Grant criteria. (a) Grant dollars may be used for opioid awareness campaigns 
707.15 	and events, education related to opioid addiction and abuse prevention, initiatives to limit 
707.16 	inappropriate opioid prescriptions, peer education programs targeted to students at high risk 
707.17 	of opioid addiction and abuse, and other related initiatives as approved by the commissioner. 
707.18 	Grant projects must include one or more of the following components as they relate to opioid 
707.19 	abuse and prevention and the role of the community partner: high-risk populations, law 
707.20 	enforcement, education, clinical services, or social services.
707.21 	(b) The commissioner of human services shall seek to provide grant funding for at least 
707.22 	one proposal that addresses opioid abuse in the American Indian community.
707.23 		Subd. 3.Community partners. For purposes of the grant program, community partners 
707.24 	may include but are not limited to public health agencies; local law enforcement; community 
707.25 	health centers; medical clinics; emergency medical service professionals; schools and 
707.26 	postsecondary educational institutions; opioid addiction, advocacy, and recovery 
707.27 	organizations; tribal governments; local chambers of commerce; and city councils and 
707.28 	county boards.
707.29 		Subd. 4.Report. The commissioner of human services shall report to the chairs and 
707.30 	ranking minority members of the legislative committees with jurisdiction over health and 
707.31 	human services policy and finance, K-12 education policy and finance, and higher education 
707.32 	policy and finance by September 1, 2019, on the implementation of the grant program and 
707.33 	the grants awarded under this section.
708.1 		Subd. 5.Federal grants. (a) The commissioner of human services shall apply for any 
708.2 	federal grant funding that aligns with the purposes of this section. The commissioner shall 
708.3 	submit to the legislature any changes to the program established under this section that are 
708.4 	necessary to comply with the terms of the federal grant.
708.5 	(b) The commissioner shall notify the chairs and ranking minority members of the 
708.6 	legislative committees with jurisdiction over health and human services policy and finance, 
708.7 	K-12 education policy and finance, and higher education policy and finance of any grant 
708.8 	applications submitted and any federal actions taken related to the grant applications.

708.9 	Sec. 18.  REPEALER.
 708.10 	Minnesota Rules, parts 9530.6800; and 9530.6810, are repealed.

708.11 	ARTICLE 42
708.12 	COMMUNITY SUPPORTS AND CONTINUING CARE

708.13 	Section 1. Minnesota Statutes 2017 Supplement, section 245A.03, subdivision 7, is 
708.14 	amended to read:
708.15 		Subd. 7.Licensing moratorium. (a) The commissioner shall not issue an initial license 
708.16 	for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, or adult 
708.17 	foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under this chapter 
708.18 	for a physical location that will not be the primary residence of the license holder for the 
708.19 	entire period of licensure. If a license is issued during this moratorium, and the license 
708.20 	holder changes the license holder's primary residence away from the physical location of 
708.21 	the foster care license, the commissioner shall revoke the license according to section 
708.22 	245A.07. The commissioner shall not issue an initial license for a community residential 
708.23 	setting licensed under chapter 245D. When approving an exception under this paragraph, 
708.24 	the commissioner shall consider the resource need determination process in paragraph (h), 
708.25 	the availability of foster care licensed beds in the geographic area in which the licensee 
708.26 	seeks to operate, the results of a person's choices during their annual assessment and service 
708.27 	plan review, and the recommendation of the local county board. The determination by the 
708.28 	commissioner is final and not subject to appeal. Exceptions to the moratorium include:
708.29 	(1) foster care settings that are required to be registered under chapter 144D;
708.30 	(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or 
708.31 	community residential setting licenses replacing adult foster care licenses in existence on 
709.1 	December 31, 2013, and determined to be needed by the commissioner under paragraph 
709.2 	(b);
709.3 	(3) new foster care licenses or community residential setting licenses determined to be 
709.4 	needed by the commissioner under paragraph (b) for the closure of a nursing facility, ICF/DD, 
709.5 	or regional treatment center; restructuring of state-operated services that limits the capacity 
709.6 	of state-operated facilities; or allowing movement to the community for people who no 
709.7 	longer require the level of care provided in state-operated facilities as provided under section 
709.8 	256B.092, subdivision 13, or 256B.49, subdivision 24;
709.9 	(4) new foster care licenses or community residential setting licenses determined to be 
709.10 	needed by the commissioner under paragraph (b) for persons requiring hospital level care;
709.11 	(5) new foster care licenses or community residential setting licenses determined to be 
709.12 	needed by the commissioner for the transition of people from personal care assistance to 
709.13 	the home and community-based services;
709.14 	(6) new foster care licenses or community residential setting licenses determined to be 
709.15 	needed by the commissioner for the transition of people from the residential care waiver 
709.16 	services to foster care services. This exception applies only when:
709.17 	(i) the person's case manager provided the person with information about the choice of 
709.18 	service, service provider, and location of service to help the person make an informed choice; 
709.19 	and
709.20 	(ii) the person's foster care services are less than or equal to the cost of the person's 
709.21 	services delivered in the residential care waiver service setting as determined by the lead 
709.22 	agency; or
709.23 	(7) new foster care licenses or community residential setting licenses for people receiving 
709.24 	services under chapter 245D and residing in an unlicensed setting before May 1, 2017, and 
709.25 	for which a license is required. This exception does not apply to people living in their own 
709.26 	home. For purposes of this clause, there is a presumption that a foster care or community 
709.27 	residential setting license is required for services provided to three or more people in a 
709.28 	dwelling unit when the setting is controlled by the provider. A license holder subject to this 
709.29 	exception may rebut the presumption that a license is required by seeking a reconsideration 
709.30 	of the commissioner's determination. The commissioner's disposition of a request for 
709.31 	reconsideration is final and not subject to appeal under chapter 14. The exception is available 
709.32 	until June 30, 2018 2019. This exception is available when:
710.1 	(i) the person's case manager provided the person with information about the choice of 
710.2 	service, service provider, and location of service, including in the person's home, to help 
710.3 	the person make an informed choice; and
710.4 	(ii) the person's services provided in the licensed foster care or community residential 
710.5 	setting are less than or equal to the cost of the person's services delivered in the unlicensed 
710.6 	setting as determined by the lead agency.; or
710.7 	(8) a vacancy in a setting granted an exception under clause (7), created between January 
710.8 	1, 2017, and the date of the exception request, by the departure of a person receiving services 
710.9 	under chapter 245D and residing in the unlicensed setting between January 1, 2017, and 
710.10 	May 1, 2017. This exception is available when the lead agency provides documentation to 
710.11 	the commissioner on the eligibility criteria being met. This exception is available until June 
710.12 	30, 2019.
710.13 	(b) The commissioner shall determine the need for newly licensed foster care homes or 
710.14 	community residential settings as defined under this subdivision. As part of the determination, 
710.15 	the commissioner shall consider the availability of foster care capacity in the area in which 
710.16 	the licensee seeks to operate, and the recommendation of the local county board. The 
710.17 	determination by the commissioner must be final. A determination of need is not required 
710.18 	for a change in ownership at the same address.
710.19 	(c) When an adult resident served by the program moves out of a foster home that is not 
710.20 	the primary residence of the license holder according to section 256B.49, subdivision 15, 
710.21 	paragraph (f), or the adult community residential setting, the county shall immediately 
710.22 	inform the Department of Human Services Licensing Division. The department may decrease 
710.23 	the statewide licensed capacity for adult foster care settings.
710.24 	(d) Residential settings that would otherwise be subject to the decreased license capacity 
710.25 	established in paragraph (c) shall be exempt if the license holder's beds are occupied by 
710.26 	residents whose primary diagnosis is mental illness and the license holder is certified under 
710.27 	the requirements in subdivision 6a or section 245D.33.
710.28 	(e) A resource need determination process, managed at the state level, using the available 
710.29 	reports required by section 144A.351, and other data and information shall be used to 
710.30 	determine where the reduced capacity determined under section 256B.493 will be 
710.31 	implemented. The commissioner shall consult with the stakeholders described in section 
710.32 	144A.351, and employ a variety of methods to improve the state's capacity to meet the 
710.33 	informed decisions of those people who want to move out of corporate foster care or 
710.34 	community residential settings, long-term service needs within budgetary limits, including 
711.1 	seeking proposals from service providers or lead agencies to change service type, capacity, 
711.2 	or location to improve services, increase the independence of residents, and better meet 
711.3 	needs identified by the long-term services and supports reports and statewide data and 
711.4 	information.
711.5 	(f) At the time of application and reapplication for licensure, the applicant and the license 
711.6 	holder that are subject to the moratorium or an exclusion established in paragraph (a) are 
711.7 	required to inform the commissioner whether the physical location where the foster care 
711.8 	will be provided is or will be the primary residence of the license holder for the entire period 
711.9 	of licensure. If the primary residence of the applicant or license holder changes, the applicant 
711.10 	or license holder must notify the commissioner immediately. The commissioner shall print 
711.11 	on the foster care license certificate whether or not the physical location is the primary 
711.12 	residence of the license holder.
711.13 	(g) License holders of foster care homes identified under paragraph (f) that are not the 
711.14 	primary residence of the license holder and that also provide services in the foster care home 
711.15 	that are covered by a federally approved home and community-based services waiver, as 
711.16 	authorized under section 256B.0915, 256B.092, or 256B.49, must inform the human services 
711.17 	licensing division that the license holder provides or intends to provide these waiver-funded 
711.18 	services.
711.19 	(h) The commissioner may adjust capacity to address needs identified in section 
711.20 	144A.351. Under this authority, the commissioner may approve new licensed settings or 
711.21 	delicense existing settings. Delicensing of settings will be accomplished through a process 
711.22 	identified in section 256B.493. Annually, by August 1, the commissioner shall provide 
711.23 	information and data on capacity of licensed long-term services and supports, actions taken 
711.24 	under the subdivision to manage statewide long-term services and supports resources, and 
711.25 	any recommendations for change to the legislative committees with jurisdiction over the 
711.26 	health and human services budget.
711.27 	(i) The commissioner must notify a license holder when its corporate foster care or 
711.28 	community residential setting licensed beds are reduced under this section. The notice of 
711.29 	reduction of licensed beds must be in writing and delivered to the license holder by certified 
711.30 	mail or personal service. The notice must state why the licensed beds are reduced and must 
711.31 	inform the license holder of its right to request reconsideration by the commissioner. The 
711.32 	license holder's request for reconsideration must be in writing. If mailed, the request for 
711.33 	reconsideration must be postmarked and sent to the commissioner within 20 calendar days 
711.34 	after the license holder's receipt of the notice of reduction of licensed beds. If a request for 
712.1 	reconsideration is made by personal service, it must be received by the commissioner within 
712.2 	20 calendar days after the license holder's receipt of the notice of reduction of licensed beds.
712.3 	(j) The commissioner shall not issue an initial license for children's residential treatment 
712.4 	services licensed under Minnesota Rules, parts 2960.0580 to 2960.0700, under this chapter 
712.5 	for a program that Centers for Medicare and Medicaid Services would consider an institution 
712.6 	for mental diseases. Facilities that serve only private pay clients are exempt from the 
712.7 	moratorium described in this paragraph. The commissioner has the authority to manage 
712.8 	existing statewide capacity for children's residential treatment services subject to the 
712.9 	moratorium under this paragraph and may issue an initial license for such facilities if the 
712.10 	initial license would not increase the statewide capacity for children's residential treatment 
712.11 	services subject to the moratorium under this paragraph.

712.12 	EFFECTIVE DATE. This section is effective June 29, 2018.

712.13 	Sec. 2. Minnesota Statutes 2017 Supplement, section 245A.11, subdivision 2a, is amended 
712.14 	to read:
712.15 		Subd. 2a.Adult foster care and community residential setting license capacity. (a) 
712.16 	The commissioner shall issue adult foster care and community residential setting licenses 
712.17 	with a maximum licensed capacity of four beds, including nonstaff roomers and boarders, 
712.18 	except that the commissioner may issue a license with a capacity of five beds, including 
712.19 	roomers and boarders, according to paragraphs (b) to (g).
712.20 	(b) The license holder may have a maximum license capacity of five if all persons in 
712.21 	care are age 55 or over and do not have a serious and persistent mental illness or a 
712.22 	developmental disability.
712.23 	(c) The commissioner may grant variances to paragraph (b) to allow a facility with a 
712.24 	licensed capacity of up to five persons to admit an individual under the age of 55 if the 
712.25 	variance complies with section 245A.04, subdivision 9, and approval of the variance is 
712.26 	recommended by the county in which the licensed facility is located.
712.27 	(d) The commissioner may grant variances to paragraph (a) to allow the use of an 
712.28 	additional bed, up to five, for emergency crisis services for a person with serious and 
712.29 	persistent mental illness or a developmental disability, regardless of age, if the variance 
712.30 	complies with section 245A.04, subdivision 9, and approval of the variance is recommended 
712.31 	by the county in which the licensed facility is located.
712.32 	(e) The commissioner may grant a variance to paragraph (b) to allow for the use of an 
712.33 	additional bed, up to five, for respite services, as defined in section 245A.02, for persons 
713.1 	with disabilities, regardless of age, if the variance complies with sections 245A.03, 
713.2 	subdivision 7, and 245A.04, subdivision 9, and approval of the variance is recommended 
713.3 	by the county in which the licensed facility is located. Respite care may be provided under 
713.4 	the following conditions:
713.5 	(1) staffing ratios cannot be reduced below the approved level for the individuals being 
713.6 	served in the home on a permanent basis;
713.7 	(2) no more than two different individuals can be accepted for respite services in any 
713.8 	calendar month and the total respite days may not exceed 120 days per program in any 
713.9 	calendar year;
713.10 	(3) the person receiving respite services must have his or her own bedroom, which could 
713.11 	be used for alternative purposes when not used as a respite bedroom, and cannot be the 
713.12 	room of another person who lives in the facility; and
713.13 	(4) individuals living in the facility must be notified when the variance is approved. The 
713.14 	provider must give 60 days' notice in writing to the residents and their legal representatives 
713.15 	prior to accepting the first respite placement. Notice must be given to residents at least two 
713.16 	days prior to service initiation, or as soon as the license holder is able if they receive notice 
713.17 	of the need for respite less than two days prior to initiation, each time a respite client will 
713.18 	be served, unless the requirement for this notice is waived by the resident or legal guardian.
713.19 	(f) The commissioner may issue an adult foster care or community residential setting 
713.20 	license with a capacity of five adults if the fifth bed does not increase the overall statewide 
713.21 	capacity of licensed adult foster care or community residential setting beds in homes that 
713.22 	are not the primary residence of the license holder, as identified in a plan submitted to the 
713.23 	commissioner by the county, when the capacity is recommended by the county licensing 
713.24 	agency of the county in which the facility is located and if the recommendation verifies 
713.25 	that:
713.26 	(1) the facility meets the physical environment requirements in the adult foster care 
713.27 	licensing rule;
713.28 	(2) the five-bed living arrangement is specified for each resident in the resident's:
713.29 	(i) individualized plan of care;
713.30 	(ii) individual service plan under section 256B.092, subdivision 1b, if required; or
713.31 	(iii) individual resident placement agreement under Minnesota Rules, part 9555.5105, 
713.32 	subpart 19, if required;
714.1 	(3) the license holder obtains written and signed informed consent from each resident 
714.2 	or resident's legal representative documenting the resident's informed choice to remain 
714.3 	living in the home and that the resident's refusal to consent would not have resulted in 
714.4 	service termination; and
714.5 	(4) the facility was licensed for adult foster care before March 1, 2011 June 30, 2016.
714.6 	(g) The commissioner shall not issue a new adult foster care license under paragraph (f) 
714.7 	after June 30, 2019 2021. The commissioner shall allow a facility with an adult foster care 
714.8 	license issued under paragraph (f) before June 30, 2019 2021, to continue with a capacity 
714.9 	of five adults if the license holder continues to comply with the requirements in paragraph 
714.10 	(f).

714.11 	Sec. 3. Minnesota Statutes 2017 Supplement, section 245D.03, subdivision 1, is amended 
714.12 	to read:
714.13 		Subdivision 1.Applicability.  (a) The commissioner shall regulate the provision of home 
714.14 	and community-based services to persons with disabilities and persons age 65 and older 
714.15 	pursuant to this chapter. The licensing standards in this chapter govern the provision of 
714.16 	basic support services and intensive support services.
714.17 	(b) Basic support services provide the level of assistance, supervision, and care that is 
714.18 	necessary to ensure the health and welfare of the person and do not include services that 
714.19 	are specifically directed toward the training, treatment, habilitation, or rehabilitation of the 
714.20 	person. Basic support services include:
714.21 	(1) in-home and out-of-home respite care services as defined in section 245A.02, 
714.22 	subdivision 15, and under the brain injury, community alternative care, community access 
714.23 	for disability inclusion, developmental disability disabilities, and elderly waiver plans, 
714.24 	excluding out-of-home respite care provided to children in a family child foster care home 
714.25 	licensed under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care 
714.26 	license holder complies with the requirements under section 245D.06, subdivisions 5, 6, 7, 
714.27 	and 8, or successor provisions; and section 245D.061 or successor provisions, which must 
714.28 	be stipulated in the statement of intended use required under Minnesota Rules, part 
714.29 	2960.3000, subpart 4;
714.30 	(2) adult companion services as defined under the brain injury, community access for 
714.31 	disability inclusion, community alternative care, and elderly waiver plans, excluding adult 
714.32 	companion services provided under the Corporation for National and Community Services 
715.1 	Senior Companion Program established under the Domestic Volunteer Service Act of 1973, 
715.2 	Public Law 98-288;
715.3 	(3) personal support as defined under the developmental disability disabilities waiver 
715.4 	plan;
715.5 	(4) 24-hour emergency assistance, personal emergency response as defined under the 
715.6 	community access for disability inclusion and developmental disability disabilities waiver 
715.7 	plans;
715.8 	(5) night supervision services as defined under the brain injury, community access for 
715.9 	disability inclusion, community alternative care, and developmental disabilities waiver plan
715.10 	plans;
715.11 	(6) homemaker services as defined under the community access for disability inclusion, 
715.12 	brain injury, community alternative care, developmental disability disabilities, and elderly 
715.13 	waiver plans, excluding providers licensed by the Department of Health under chapter 144A 
715.14 	and those providers providing cleaning services only; and
715.15 	(7) individual community living support under section 256B.0915, subdivision 3j.
715.16 	(c) Intensive support services provide assistance, supervision, and care that is necessary 
715.17 	to ensure the health and welfare of the person and services specifically directed toward the 
715.18 	training, habilitation, or rehabilitation of the person. Intensive support services include:
715.19 	(1) intervention services, including:
715.20 	(i) behavioral positive support services as defined under the brain injury and, community 
715.21 	access for disability inclusion, community alternative care, and developmental disabilities
715.22 	waiver plans;
715.23 	(ii) in-home or out-of-home crisis respite services as defined under the brain injury, 
715.24 	community access for disability inclusion, community alternative care, and developmental 
715.25 	disability disabilities waiver plan plans; and
715.26 	(iii) specialist services as defined under the current brain injury, community access for 
715.27 	disability inclusion, community alternative care, and developmental disability disabilities
715.28 	waiver plan plans;
715.29 	(2) in-home support services, including:
715.30 	(i) in-home family support and supported living services as defined under the 
715.31 	developmental disability disabilities waiver plan;
716.1 	(ii) independent living services training as defined under the brain injury and community 
716.2 	access for disability inclusion waiver plans;
716.3 	(iii) semi-independent living services; and
716.4 	(iv) individualized home supports services as defined under the brain injury, community 
716.5 	alternative care, and community access for disability inclusion waiver plans;
716.6 	(3) residential supports and services, including:
716.7 	(i) supported living services as defined under the developmental disability disabilities
716.8 	waiver plan provided in a family or corporate child foster care residence, a family adult 
716.9 	foster care residence, a community residential setting, or a supervised living facility;
716.10 	(ii) foster care services as defined in the brain injury, community alternative care, and 
716.11 	community access for disability inclusion waiver plans provided in a family or corporate 
716.12 	child foster care residence, a family adult foster care residence, or a community residential 
716.13 	setting; and
716.14 	(iii) residential services provided to more than four persons with developmental 
716.15 	disabilities in a supervised living facility, including ICFs/DD;
716.16 	(4) day services, including:
716.17 	(i) structured day services as defined under the brain injury waiver plan;
716.18 	(ii) day training and habilitation services under sections 252.41 to 252.46, and as defined 
716.19 	under the developmental disability disabilities waiver plan; and
716.20 	(iii) prevocational services as defined under the brain injury and community access for 
716.21 	disability inclusion waiver plans; and
716.22 	(5) employment exploration services as defined under the brain injury, community 
716.23 	alternative care, community access for disability inclusion, and developmental disability
716.24 	disabilities waiver plans;
716.25 	(6) employment development services as defined under the brain injury, community 
716.26 	alternative care, community access for disability inclusion, and developmental disability
716.27 	disabilities waiver plans; and
716.28 	(7) employment support services as defined under the brain injury, community alternative 
716.29 	care, community access for disability inclusion, and developmental disability disabilities
716.30 	waiver plans.

717.1 	Sec. 4. Minnesota Statutes 2016, section 245D.071, subdivision 5, is amended to read:
717.2 		Subd. 5.Service plan review and evaluation. (a) The license holder must give the 
717.3 	person or the person's legal representative and case manager an opportunity to participate 
717.4 	in the ongoing review and development of the service plan and the methods used to support 
717.5 	the person and accomplish outcomes identified in subdivisions 3 and 4. At least once per 
717.6 	year, or within 30 days of a written request by the person, the person's legal representative, 
717.7 	or the case manager, the license holder, in coordination with the person's support team or 
717.8 	expanded support team, must meet with the person, the person's legal representative, and 
717.9 	the case manager, and participate in service plan review meetings following stated timelines 
717.10 	established in the person's coordinated service and support plan or coordinated service and 
717.11 	support plan addendum or within 30 days of a written request by the person, the person's 
717.12 	legal representative, or the case manager, at a minimum of once per year. The purpose of 
717.13 	the service plan review is to determine whether changes are needed to the service plan based 
717.14 	on the assessment information, the license holder's evaluation of progress towards 
717.15 	accomplishing outcomes, or other information provided by the support team or expanded 
717.16 	support team.
717.17 	(b) At least once per year, the license holder, in coordination with the person's support 
717.18 	team or expanded support team, must meet with the person, the person's legal representative, 
717.19 	and the case manager to discuss how technology might be used to meet the person's desired 
717.20 	outcomes. The coordinated service and support plan or support plan addendum must include 
717.21 	a summary of this discussion. The summary must include a statement regarding any decision 
717.22 	made related to the use of technology and a description of any further research that must 
717.23 	be completed before a decision regarding the use of technology can be made. Nothing in 
717.24 	this paragraph requires the coordinated service and support plan to include the use of 
717.25 	technology for the provision of services.
717.26 	(b) (c) The license holder must summarize the person's status and progress toward 
717.27 	achieving the identified outcomes and make recommendations and identify the rationale 
717.28 	for changing, continuing, or discontinuing implementation of supports and methods identified 
717.29 	in subdivision 4 in a report available at the time of the progress review meeting. The report 
717.30 	must be sent at least five working days prior to the progress review meeting if requested by 
717.31 	the team in the coordinated service and support plan or coordinated service and support 
717.32 	plan addendum.
717.33 	(c) (d) The license holder must send the coordinated service and support plan addendum 
717.34 	to the person, the person's legal representative, and the case manager by mail within ten 
717.35 	working days of the progress review meeting. Within ten working days of the mailing of 
718.1 	the coordinated service and support plan addendum, the license holder must obtain dated 
718.2 	signatures from the person or the person's legal representative and the case manager to 
718.3 	document approval of any changes to the coordinated service and support plan addendum.
718.4 	(d) (e) If, within ten working days of submitting changes to the coordinated service and 
718.5 	support plan and coordinated service and support plan addendum, the person or the person's 
718.6 	legal representative or case manager has not signed and returned to the license holder the 
718.7 	coordinated service and support plan or coordinated service and support plan addendum or 
718.8 	has not proposed written modifications to the license holder's submission, the submission 
718.9 	is deemed approved and the coordinated service and support plan addendum becomes 
718.10 	effective and remains in effect until the legal representative or case manager submits a 
718.11 	written request to revise the coordinated service and support plan addendum.

718.12 	Sec. 5. Minnesota Statutes 2016, section 245D.091, subdivision 2, is amended to read:
718.13 		Subd. 2.Behavior Positive support professional qualifications. A behavior positive 
718.14 	support professional providing behavioral positive support services as identified in section 
718.15 	245D.03, subdivision 1, paragraph (c), clause (1), item (i), must have competencies in the 
718.16 	following areas as required under the brain injury and, community access for disability 
718.17 	inclusion, community alternative care, and developmental disabilities waiver plans or 
718.18 	successor plans:
718.19 	(1) ethical considerations;
718.20 	(2) functional assessment;
718.21 	(3) functional analysis;
718.22 	(4) measurement of behavior and interpretation of data;
718.23 	(5) selecting intervention outcomes and strategies;
718.24 	(6) behavior reduction and elimination strategies that promote least restrictive approved 
718.25 	alternatives;
718.26 	(7) data collection;
718.27 	(8) staff and caregiver training;
718.28 	(9) support plan monitoring;
718.29 	(10) co-occurring mental disorders or neurocognitive disorder;
718.30 	(11) demonstrated expertise with populations being served; and
718.31 	(12) must be a:
719.1 	(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the Board 
719.2 	of Psychology competencies in the above identified areas;
719.3 	(ii) clinical social worker licensed as an independent clinical social worker under chapter 
719.4 	148D, or a person with a master's degree in social work from an accredited college or 
719.5 	university, with at least 4,000 hours of post-master's supervised experience in the delivery 
719.6 	of clinical services in the areas identified in clauses (1) to (11);
719.7 	(iii) physician licensed under chapter 147 and certified by the American Board of 
719.8 	Psychiatry and Neurology or eligible for board certification in psychiatry with competencies 
719.9 	in the areas identified in clauses (1) to (11);
719.10 	(iv) licensed professional clinical counselor licensed under sections 148B.29 to 148B.39
719.11 	with at least 4,000 hours of post-master's supervised experience in the delivery of clinical 
719.12 	services who has demonstrated competencies in the areas identified in clauses (1) to (11);
719.13 	(v) person with a master's degree from an accredited college or university in one of the 
719.14 	behavioral sciences or related fields, with at least 4,000 hours of post-master's supervised 
719.15 	experience in the delivery of clinical services with demonstrated competencies in the areas 
719.16 	identified in clauses (1) to (11); or
719.17 	(vi) person with a master's degree or PhD in one of the behavioral sciences or related 
719.18 	fields with demonstrated expertise in positive support services; or
719.19 	(vii) registered nurse who is licensed under sections 148.171 to 148.285, and who is 
719.20 	certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and 
719.21 	mental health nursing by a national nurse certification organization, or who has a master's 
719.22 	degree in nursing or one of the behavioral sciences or related fields from an accredited 
719.23 	college or university or its equivalent, with at least 4,000 hours of post-master's supervised 
719.24 	experience in the delivery of clinical services.

719.25 	Sec. 6. Minnesota Statutes 2016, section 245D.091, subdivision 3, is amended to read:
719.26 		Subd. 3.Behavior Positive support analyst qualifications. (a) A behavior positive 
719.27 	support analyst providing behavioral positive support services as identified in section 
719.28 	245D.03, subdivision 1, paragraph (c), clause (1), item (i), must have competencies in the 
719.29 	following areas as required under the brain injury and, community access for disability 
719.30 	inclusion, community alternative care, and developmental disabilities waiver plans or 
719.31 	successor plans:
719.32 	(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services 
719.33 	discipline; or
720.1 	(2) meet the qualifications of a mental health practitioner as defined in section 245.462, 
720.2 	subdivision 17.; or
720.3 	(3) be a board certified behavior analyst or board certified assistant behavior analyst by 
720.4 	the Behavior Analyst Certification Board, Incorporated.
720.5 	(b) In addition, a behavior positive support analyst must:
720.6 	(1) have four years of supervised experience working with individuals who exhibit 
720.7 	challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder
720.8 	conducting functional behavior assessments and designing, implementing, and evaluating 
720.9 	effectiveness of positive practices behavior support strategies for people who exhibit 
720.10 	challenging behaviors as well as co-occurring mental disorders and neurocognitive disorder;
720.11 	(2) have received ten hours of instruction in functional assessment and functional analysis;
720.12 	training prior to hire or within 90 calendar days of hire that includes:
720.13 	(i) ten hours of instruction in functional assessment and functional analysis;
720.14 	(ii) 20 hours of instruction in the understanding of the function of behavior;
720.15 	(iii) ten hours of instruction on design of positive practices behavior support strategies;
720.16 	(iv) 20 hours of instruction preparing written intervention strategies, designing data 
720.17 	collection protocols, training other staff to implement positive practice strategies, 
720.18 	summarizing and reporting program evaluation data, analyzing program evaluation data to 
720.19 	identify design flaws in behavioral interventions or failures in implementation fidelity, and 
720.20 	recommending enhancements based on evaluation data; and
720.21 	(v) eight hours of instruction on principles of person-centered thinking;
720.22 	(3) have received 20 hours of instruction in the understanding of the function of behavior;
720.23 	(4) have received ten hours of instruction on design of positive practices behavior support 
720.24 	strategies;
720.25 	(5) have received 20 hours of instruction on the use of behavior reduction approved 
720.26 	strategies used only in combination with behavior positive practices strategies;
720.27 	(6) (3) be determined by a behavior positive support professional to have the training 
720.28 	and prerequisite skills required to provide positive practice strategies as well as behavior 
720.29 	reduction approved and permitted intervention to the person who receives behavioral positive
720.30 	support; and
720.31 	(7) (4) be under the direct supervision of a behavior positive support professional.
721.1 	(c) Meeting the qualifications for a positive support professional under subdivision 2 
721.2 	shall substitute for meeting the qualifications listed in paragraph (b).

721.3 	Sec. 7. Minnesota Statutes 2016, section 245D.091, subdivision 4, is amended to read:
721.4 		Subd. 4.Behavior Positive support specialist qualifications. (a) A behavior positive 
721.5 	support specialist providing behavioral positive support services as identified in section 
721.6 	245D.03, subdivision 1, paragraph (c), clause (1), item (i), must have competencies in the 
721.7 	following areas as required under the brain injury and, community access for disability 
721.8 	inclusion, community alternative care, and developmental disabilities waiver plans or 
721.9 	successor plans:
721.10 	(1) have an associate's degree in a social services discipline; or
721.11 	(2) have two years of supervised experience working with individuals who exhibit 
721.12 	challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder.
721.13 	(b) In addition, a behavior specialist must:
721.14 	(1) have received training prior to hire or within 90 calendar days of hire that includes:
721.15 	(i) a minimum of four hours of training in functional assessment;
721.16 	(2) have received (ii) 20 hours of instruction in the understanding of the function of 
721.17 	behavior;
721.18 	(3) have received (iii) ten hours of instruction on design of positive practices behavioral 
721.19 	support strategies; and
721.20 	(iv) eight hours of instruction on principles of person-centered thinking;
721.21 	(4) (2) be determined by a behavior positive support professional to have the training 
721.22 	and prerequisite skills required to provide positive practices strategies as well as behavior 
721.23 	reduction approved intervention to the person who receives behavioral positive support; 
721.24 	and
721.25 	(5) (3) be under the direct supervision of a behavior positive support professional.
721.26 	(c) Meeting the qualifications for a positive support professional under subdivision 2 
721.27 	shall substitute for meeting the qualifications listed in paragraphs (a) and (b).

721.28 	Sec. 8. Minnesota Statutes 2016, section 256B.0659, subdivision 3a, is amended to read:
721.29 		Subd. 3a.Assessment; defined. (a) "Assessment" means a review and evaluation of a 
721.30 	recipient's need for personal care assistance services conducted in person. Assessments for 
722.1 	personal care assistance services shall be conducted by the county public health nurse or a 
722.2 	certified public health nurse under contract with the county except when a long-term care 
722.3 	consultation assessment is being conducted for the purposes of determining a person's 
722.4 	eligibility for home and community-based waiver services including personal care assistance 
722.5 	services according to section 256B.0911. During the transition to MnCHOICES, a certified 
722.6 	assessor may complete the assessment defined in this subdivision. An in-person assessment 
722.7 	must include: documentation of health status, determination of need, evaluation of service 
722.8 	effectiveness, identification of appropriate services, service plan development or modification, 
722.9 	coordination of services, referrals and follow-up to appropriate payers and community 
722.10 	resources, completion of required reports, recommendation of service authorization, and 
722.11 	consumer education. Once the need for personal care assistance services is determined under 
722.12 	this section, the county public health nurse or certified public health nurse under contract 
722.13 	with the county is responsible for communicating this recommendation to the commissioner 
722.14 	and the recipient. An in-person assessment must occur at least annually or when there is a 
722.15 	significant change in the recipient's condition or when there is a change in the need for 
722.16 	personal care assistance services. A service update may substitute for the annual face-to-face 
722.17 	assessment when there is not a significant change in recipient condition or a change in the 
722.18 	need for personal care assistance service. A service update may be completed by telephone, 
722.19 	used when there is no need for an increase in personal care assistance services, and used 
722.20 	for two consecutive assessments if followed by a face-to-face assessment. A service update 
722.21 	must be completed on a form approved by the commissioner. A service update or review 
722.22 	for temporary increase includes a review of initial baseline data, evaluation of service 
722.23 	effectiveness, redetermination of service need, modification of service plan and appropriate 
722.24 	referrals, update of initial forms, obtaining service authorization, and on going consumer 
722.25 	education. Assessments or reassessments must be completed on forms provided by the 
722.26 	commissioner within 30 days of a request for home care services by a recipient or responsible 
722.27 	party.
722.28 	(b) This subdivision expires when notification is given by the commissioner as described 
722.29 	in section 256B.0911, subdivision 3a.

722.30 	Sec. 9. Minnesota Statutes 2016, section 256B.0659, subdivision 11, is amended to read:
722.31 		Subd. 11.Personal care assistant; requirements. (a) A personal care assistant must 
722.32 	meet the following requirements:
722.33 	(1) be at least 18 years of age with the exception of persons who are 16 or 17 years of 
722.34 	age with these additional requirements:
723.1 	(i) supervision by a qualified professional every 60 days; and
723.2 	(ii) employment by only one personal care assistance provider agency responsible for 
723.3 	compliance with current labor laws;
723.4 	(2) be employed by a personal care assistance provider agency;
723.5 	(3) enroll with the department as a personal care assistant after clearing a background 
723.6 	study. Except as provided in subdivision 11a, before a personal care assistant provides 
723.7 	services, the personal care assistance provider agency must initiate a background study on 
723.8 	the personal care assistant under chapter 245C, and the personal care assistance provider 
723.9 	agency must have received a notice from the commissioner that the personal care assistant 
723.10 	is:
723.11 	(i) not disqualified under section 245C.14; or
723.12 	(ii) is disqualified, but the personal care assistant has received a set aside of the 
723.13 	disqualification under section 245C.22;
723.14 	(4) be able to effectively communicate with the recipient and personal care assistance 
723.15 	provider agency;
723.16 	(5) be able to provide covered personal care assistance services according to the recipient's 
723.17 	personal care assistance care plan, respond appropriately to recipient needs, and report 
723.18 	changes in the recipient's condition to the supervising qualified professional or physician;
723.19 	(6) not be a consumer of personal care assistance services;
723.20 	(7) maintain daily written records including, but not limited to, time sheets under 
723.21 	subdivision 12;
723.22 	(8) effective January 1, 2010, complete standardized training as determined by the 
723.23 	commissioner before completing enrollment. The training must be available in languages 
723.24 	other than English and to those who need accommodations due to disabilities. Personal care 
723.25 	assistant training must include successful completion of the following training components: 
723.26 	basic first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic 
723.27 	roles and responsibilities of personal care assistants including information about assistance 
723.28 	with lifting and transfers for recipients, emergency preparedness, orientation to positive 
723.29 	behavioral practices, fraud issues, and completion of time sheets. Upon completion of the 
723.30 	training components, the personal care assistant must demonstrate the competency to provide 
723.31 	assistance to recipients;
723.32 	(9) complete training and orientation on the needs of the recipient; and
724.1 	(10) be limited to providing and being paid for up to 275 hours per month of personal 
724.2 	care assistance services regardless of the number of recipients being served or the number 
724.3 	of personal care assistance provider agencies enrolled with. The number of hours worked 
724.4 	per day shall not be disallowed by the department unless in violation of the law.
724.5 	(b) A legal guardian may be a personal care assistant if the guardian is not being paid 
724.6 	for the guardian services and meets the criteria for personal care assistants in paragraph (a).
724.7 	(c) Persons who do not qualify as a personal care assistant include parents, stepparents, 
724.8 	and legal guardians of minors; spouses; paid legal guardians of adults; family foster care 
724.9 	providers, except as otherwise allowed in section 256B.0625, subdivision 19a; and staff of 
724.10 	a residential setting.
724.11 	(d) Personal care services qualify for the enhanced rate described in subdivision 17a if 
724.12 	the personal care assistant providing the services:
724.13 	(1) provides services, according to the care plan in subdivision 7, to a recipient who 
724.14 	qualifies for 12 or more hours per day of PCA services; and
724.15 	(2) satisfies the current requirements of Medicare for training and competency or 
724.16 	competency evaluation of home health aides or nursing assistants, as provided in the Code 
724.17 	of Federal Regulations, title 42, section 483.151 or 484.36, or alternative state approved 
724.18 	training or competency requirements.

724.19 	EFFECTIVE DATE. This section is effective July 1, 2018.

724.20 	Sec. 10. Minnesota Statutes 2016, section 256B.0659, is amended by adding a subdivision 
724.21 	to read:
724.22 		Subd. 17a.Enhanced rate. An enhanced rate of 105 percent of the rate paid for PCA 
724.23 	services shall be paid for services provided to persons who qualify for 12 or more hours of 
724.24 	PCA service per day when provided by a PCA who meets the requirements of subdivision 
724.25 	11, paragraph (d). The enhanced rate for PCA services includes, and is not in addition to, 
724.26 	any rate adjustments implemented by the commissioner on July 1, 2018, to comply with 
724.27 	the terms of a collective bargaining agreement between the state of Minnesota and an 
724.28 	exclusive representative of individual providers under section 179A.54 that provides for 
724.29 	wage increases for individual providers who serve participants assessed to need 12 or more 
724.30 	hours of PCA services per day.

724.31 	EFFECTIVE DATE. This section is effective July 1, 2018.

725.1 	Sec. 11. Minnesota Statutes 2016, section 256B.0659, subdivision 21, is amended to read:
725.2 		Subd. 21.Requirements for provider enrollment of personal care assistance provider 
725.3 	agencies. (a) All personal care assistance provider agencies must provide, at the time of 
725.4 	enrollment, reenrollment, and revalidation as a personal care assistance provider agency in 
725.5 	a format determined by the commissioner, information and documentation that includes, 
725.6 	but is not limited to, the following:
725.7 	(1) the personal care assistance provider agency's current contact information including 
725.8 	address, telephone number, and e-mail address;
725.9 	(2) proof of surety bond coverage. Upon new enrollment, or if the provider's Medicaid 
725.10 	revenue in the previous calendar year is up to and including $300,000, the provider agency 
725.11 	must purchase a surety bond of $50,000. If the Medicaid revenue in the previous year is 
725.12 	over $300,000, the provider agency must purchase a surety bond of $100,000. The surety 
725.13 	bond must be in a form approved by the commissioner, must be renewed annually, and must 
725.14 	allow for recovery of costs and fees in pursuing a claim on the bond;
725.15 	(3) proof of fidelity bond coverage in the amount of $20,000;
725.16 	(4) proof of workers' compensation insurance coverage;
725.17 	(5) proof of liability insurance;
725.18 	(6) a description of the personal care assistance provider agency's organization identifying 
725.19 	the names of all owners, managing employees, staff, board of directors, and the affiliations 
725.20 	of the directors, owners, or staff to other service providers;
725.21 	(7) a copy of the personal care assistance provider agency's written policies and 
725.22 	procedures including: hiring of employees; training requirements; service delivery; and 
725.23 	employee and consumer safety including process for notification and resolution of consumer 
725.24 	grievances, identification and prevention of communicable diseases, and employee 
725.25 	misconduct;
725.26 	(8) copies of all other forms the personal care assistance provider agency uses in the 
725.27 	course of daily business including, but not limited to:
725.28 	(i) a copy of the personal care assistance provider agency's time sheet if the time sheet 
725.29 	varies from the standard time sheet for personal care assistance services approved by the 
725.30 	commissioner, and a letter requesting approval of the personal care assistance provider 
725.31 	agency's nonstandard time sheet;
726.1 	(ii) the personal care assistance provider agency's template for the personal care assistance 
726.2 	care plan; and
726.3 	(iii) the personal care assistance provider agency's template for the written agreement 
726.4 	in subdivision 20 for recipients using the personal care assistance choice option, if applicable;
726.5 	(9) a list of all training and classes that the personal care assistance provider agency 
726.6 	requires of its staff providing personal care assistance services;
726.7 	(10) documentation that the personal care assistance provider agency and staff have 
726.8 	successfully completed all the training required by this section, including the requirements 
726.9 	under subdivision 11, paragraph (d), if enhanced PCA services are provided and submitted 
726.10 	for an enhanced rate under subdivision 17a;
726.11 	(11) documentation of the agency's marketing practices;
726.12 	(12) disclosure of ownership, leasing, or management of all residential properties that 
726.13 	is used or could be used for providing home care services;
726.14 	(13) documentation that the agency will use the following percentages of revenue 
726.15 	generated from the medical assistance rate paid for personal care assistance services for 
726.16 	employee personal care assistant wages and benefits: 72.5 percent of revenue in the personal 
726.17 	care assistance choice option and 72.5 percent of revenue from other personal care assistance 
726.18 	providers. The revenue generated by the qualified professional and the reasonable costs 
726.19 	associated with the qualified professional shall not be used in making this calculation; and
726.20 	(14) effective May 15, 2010, documentation that the agency does not burden recipients' 
726.21 	free exercise of their right to choose service providers by requiring personal care assistants 
726.22 	to sign an agreement not to work with any particular personal care assistance recipient or 
726.23 	for another personal care assistance provider agency after leaving the agency and that the 
726.24 	agency is not taking action on any such agreements or requirements regardless of the date 
726.25 	signed.
726.26 	(b) Personal care assistance provider agencies shall provide the information specified 
726.27 	in paragraph (a) to the commissioner at the time the personal care assistance provider agency 
726.28 	enrolls as a vendor or upon request from the commissioner. The commissioner shall collect 
726.29 	the information specified in paragraph (a) from all personal care assistance providers 
726.30 	beginning July 1, 2009.
726.31 	(c) All personal care assistance provider agencies shall require all employees in 
726.32 	management and supervisory positions and owners of the agency who are active in the 
726.33 	day-to-day management and operations of the agency to complete mandatory training as 
727.1 	determined by the commissioner before enrollment of the agency as a provider. Employees 
727.2 	in management and supervisory positions and owners who are active in the day-to-day 
727.3 	operations of an agency who have completed the required training as an employee with a 
727.4 	personal care assistance provider agency do not need to repeat the required training if they 
727.5 	are hired by another agency, if they have completed the training within the past three years. 
727.6 	By September 1, 2010, the required training must be available with meaningful access 
727.7 	according to title VI of the Civil Rights Act and federal regulations adopted under that law 
727.8 	or any guidance from the United States Health and Human Services Department. The 
727.9 	required training must be available online or by electronic remote connection. The required 
727.10 	training must provide for competency testing. Personal care assistance provider agency 
727.11 	billing staff shall complete training about personal care assistance program financial 
727.12 	management. This training is effective July 1, 2009. Any personal care assistance provider 
727.13 	agency enrolled before that date shall, if it has not already, complete the provider training 
727.14 	within 18 months of July 1, 2009. Any new owners or employees in management and 
727.15 	supervisory positions involved in the day-to-day operations are required to complete 
727.16 	mandatory training as a requisite of working for the agency. Personal care assistance provider 
727.17 	agencies certified for participation in Medicare as home health agencies are exempt from 
727.18 	the training required in this subdivision. When available, Medicare-certified home health 
727.19 	agency owners, supervisors, or managers must successfully complete the competency test.

727.20 	EFFECTIVE DATE. This section is effective July 1, 2018.

727.21 	Sec. 12. Minnesota Statutes 2016, section 256B.0659, subdivision 24, is amended to read:
727.22 		Subd. 24.Personal care assistance provider agency; general duties. A personal care 
727.23 	assistance provider agency shall:
727.24 	(1) enroll as a Medicaid provider meeting all provider standards, including completion 
727.25 	of the required provider training;
727.26 	(2) comply with general medical assistance coverage requirements;
727.27 	(3) demonstrate compliance with law and policies of the personal care assistance program 
727.28 	to be determined by the commissioner;
727.29 	(4) comply with background study requirements;
727.30 	(5) verify and keep records of hours worked by the personal care assistant and qualified 
727.31 	professional;
727.32 	(6) not engage in any agency-initiated direct contact or marketing in person, by phone, 
727.33 	or other electronic means to potential recipients, guardians, or family members;
728.1 	(7) pay the personal care assistant and qualified professional based on actual hours of 
728.2 	services provided;
728.3 	(8) withhold and pay all applicable federal and state taxes;
728.4 	(9) effective January 1, 2010, document that the agency uses a minimum of 72.5 percent 
728.5 	of the revenue generated by the medical assistance rate for personal care assistance services 
728.6 	for employee personal care assistant wages and benefits. The revenue generated by the 
728.7 	qualified professional and the reasonable costs associated with the qualified professional 
728.8 	shall not be used in making this calculation;
728.9 	(10) make the arrangements and pay unemployment insurance, taxes, workers' 
728.10 	compensation, liability insurance, and other benefits, if any;
728.11 	(11) enter into a written agreement under subdivision 20 before services are provided;
728.12 	(12) report suspected neglect and abuse to the common entry point according to section 
728.13 	256B.0651;
728.14 	(13) provide the recipient with a copy of the home care bill of rights at start of service; 
728.15 	and
728.16 	(14) request reassessments at least 60 days prior to the end of the current authorization 
728.17 	for personal care assistance services, on forms provided by the commissioner; and
728.18 	(15) document that the agency uses the additional revenue due to the enhanced rate under 
728.19 	subdivision 17a for the wages and benefits of the PCAs whose services meet the requirements 
728.20 	under subdivision 11, paragraph (d).

728.21 	EFFECTIVE DATE. This section is effective July 1, 2018.

728.22 	Sec. 13. Minnesota Statutes 2016, section 256B.0659, subdivision 28, is amended to read:
728.23 		Subd. 28.Personal care assistance provider agency; required documentation. (a) 
728.24 	Required documentation must be completed and kept in the personal care assistance provider 
728.25 	agency file or the recipient's home residence. The required documentation consists of:
728.26 	(1) employee files, including:
728.27 	(i) applications for employment;
728.28 	(ii) background study requests and results;
728.29 	(iii) orientation records about the agency policies;
729.1 	(iv) trainings completed with demonstration of competence, including verification of 
729.2 	the completion of training required under subdivision 11, paragraph (d), for any billing of 
729.3 	the enhanced rate under subdivision 17a;
729.4 	(v) supervisory visits;
729.5 	(vi) evaluations of employment; and
729.6 	(vii) signature on fraud statement;
729.7 	(2) recipient files, including:
729.8 	(i) demographics;
729.9 	(ii) emergency contact information and emergency backup plan;
729.10 	(iii) personal care assistance service plan;
729.11 	(iv) personal care assistance care plan;
729.12 	(v) month-to-month service use plan;
729.13 	(vi) all communication records;
729.14 	(vii) start of service information, including the written agreement with recipient; and
729.15 	(viii) date the home care bill of rights was given to the recipient;
729.16 	(3) agency policy manual, including:
729.17 	(i) policies for employment and termination;
729.18 	(ii) grievance policies with resolution of consumer grievances;
729.19 	(iii) staff and consumer safety;
729.20 	(iv) staff misconduct; and
729.21 	(v) staff hiring, service delivery, staff and consumer safety, staff misconduct, and 
729.22 	resolution of consumer grievances;
729.23 	(4) time sheets for each personal care assistant along with completed activity sheets for 
729.24 	each recipient served; and
729.25 	(5) agency marketing and advertising materials and documentation of marketing activities 
729.26 	and costs.
729.27 	(b) The commissioner may assess a fine of up to $500 on provider agencies that do not 
729.28 	consistently comply with the requirements of this subdivision.

729.29 	EFFECTIVE DATE. This section is effective July 1, 2018.

730.1 	Sec. 14. Minnesota Statutes 2017 Supplement, section 256B.0911, subdivision 1a, is 
730.2 	amended to read:
730.3 		Subd. 1a.Definitions. For purposes of this section, the following definitions apply:
730.4 	(a) Until additional requirements apply under paragraph (b), "long-term care consultation 
730.5 	services" means:
730.6 	(1) intake for and access to assistance in identifying services needed to maintain an 
730.7 	individual in the most inclusive environment;
730.8 	(2) providing recommendations for and referrals to cost-effective community services 
730.9 	that are available to the individual;
730.10 	(3) development of an individual's person-centered community support plan;
730.11 	(4) providing information regarding eligibility for Minnesota health care programs;
730.12 	(5) face-to-face long-term care consultation assessments, which may be completed in a 
730.13 	hospital, nursing facility, intermediate care facility for persons with developmental disabilities 
730.14 	(ICF/DDs), regional treatment centers, or the person's current or planned residence;
730.15 	(6) determination of home and community-based waiver and other service eligibility as 
730.16 	required under sections 256B.0913, 256B.0915, and 256B.49, including level of care 
730.17 	determination for individuals who need an institutional level of care as determined under 
730.18 	subdivision 4e, based on assessment and community support plan development, appropriate 
730.19 	referrals to obtain necessary diagnostic information, and including an eligibility determination 
730.20 	for consumer-directed community supports;
730.21 	(7) providing recommendations for institutional placement when there are no 
730.22 	cost-effective community services available;
730.23 	(8) providing access to assistance to transition people back to community settings after 
730.24 	institutional admission; and
730.25 	(9) providing information about competitive employment, with or without supports, for 
730.26 	school-age youth and working-age adults and referrals to the Disability Linkage Line and 
730.27 	Disability Benefits 101 to ensure that an informed choice about competitive employment 
730.28 	can be made. For the purposes of this subdivision, "competitive employment" means work 
730.29 	in the competitive labor market that is performed on a full-time or part-time basis in an 
730.30 	integrated setting, and for which an individual is compensated at or above the minimum 
730.31 	wage, but not less than the customary wage and level of benefits paid by the employer for 
730.32 	the same or similar work performed by individuals without disabilities.
731.1 	(b) Upon statewide implementation of lead agency requirements in subdivisions 2b, 2c, 
731.2 	and 3a, "long-term care consultation services" also means:
731.3 	(1) service eligibility determination for state plan home care services identified in:
731.4 	(i) section 256B.0625, subdivisions 7, 19a, and 19c;
731.5 	(ii) consumer support grants under section 256.476; or
731.6 	(iii) section 256B.85;
731.7 	(2) notwithstanding provisions in Minnesota Rules, parts 9525.0004 to 9525.0024, 
731.8 	determination of eligibility for case management services available under sections 256B.0621, 
731.9 	subdivision 2, paragraph clause (4), and 256B.0924and Minnesota Rules, part 9525.0016;
731.10 	(3) determination of institutional level of care, home and community-based service 
731.11 	waiver, and other service eligibility as required under section 256B.092, determination of 
731.12 	eligibility for family support grants under section 252.32, semi-independent living services 
731.13 	under section 252.275, and day training and habilitation services under section 256B.092; 
731.14 	and
731.15 	(4) obtaining necessary diagnostic information to determine eligibility under clauses (2) 
731.16 	and (3); and
731.17 	(5) notwithstanding Minnesota Rules, parts 9525.0004 to 9525.0024, initial eligibility 
731.18 	determination for case management services available under Minnesota Rules, part 
731.19 	9525.0016.
731.20 	(c) "Long-term care options counseling" means the services provided by the linkage 
731.21 	lines as mandated by sections 256.01, subdivision 24, and 256.975, subdivision 7, and also 
731.22 	includes telephone assistance and follow up once a long-term care consultation assessment 
731.23 	has been completed.
731.24 	(d) "Minnesota health care programs" means the medical assistance program under this 
731.25 	chapter and the alternative care program under section 256B.0913.
731.26 	(e) "Lead agencies" means counties administering or tribes and health plans under 
731.27 	contract with the commissioner to administer long-term care consultation assessment and 
731.28 	support planning services.
731.29 	(f) "Person-centered planning" is a process that includes the active participation of a 
731.30 	person in the planning of the person's services, including in making meaningful and informed 
731.31 	choices about the person's own goals, talents, and objectives, as well as making meaningful 
731.32 	and informed choices about the services the person receives. For the purposes of this section, 
732.1 	"informed choice" means a voluntary choice of services by a person from all available 
732.2 	service options based on accurate and complete information concerning all available service 
732.3 	options and concerning the person's own preferences, abilities, goals, and objectives. In 
732.4 	order for a person to make an informed choice, all available options must be developed and 
732.5 	presented to the person to empower the person to make decisions.

732.6 	Sec. 15. Minnesota Statutes 2017 Supplement, section 256B.0911, subdivision 3a, is 
732.7 	amended to read:
732.8 		Subd. 3a.Assessment and support planning. (a) Persons requesting assessment, services 
732.9 	planning, or other assistance intended to support community-based living, including persons 
732.10 	who need assessment in order to determine waiver or alternative care program eligibility, 
732.11 	must be visited by a long-term care consultation team within 20 calendar days after the date 
732.12 	on which an assessment was requested or recommended. Upon statewide implementation 
732.13 	of subdivisions 2b, 2c, and 5, this requirement also applies to an assessment of a person 
732.14 	requesting personal care assistance services and home care nursing. The commissioner shall 
732.15 	provide at least a 90-day notice to lead agencies prior to the effective date of this requirement. 
732.16 	Face-to-face assessments must be conducted according to paragraphs (b) to (i).
732.17 	(b) Upon implementation of subdivisions 2b, 2c, and 5, lead agencies shall use certified 
732.18 	assessors to conduct the assessment. For a person with complex health care needs, a public 
732.19 	health or registered nurse from the team must be consulted.
732.20 	(c) The MnCHOICES assessment provided by the commissioner to lead agencies must 
732.21 	be used to complete a comprehensive, conversation-based, person-centered assessment. 
732.22 	The assessment must include the health, psychological, functional, environmental, and 
732.23 	social needs of the individual necessary to develop a community support plan that meets 
732.24 	the individual's needs and preferences.
732.25 	(d) The assessment must be conducted in a face-to-face conversational interview with 
732.26 	the person being assessed and. The person's legal representative must provide input during 
732.27 	the assessment process and may do so remotely if requested. At the request of the person, 
732.28 	other individuals may participate in the assessment to provide information on the needs, 
732.29 	strengths, and preferences of the person necessary to develop a community support plan 
732.30 	that ensures the person's health and safety. Except for legal representatives or family members 
732.31 	invited by the person, persons participating in the assessment may not be a provider of 
732.32 	service or have any financial interest in the provision of services. For persons who are to 
732.33 	be assessed for elderly waiver customized living or adult day services under section 
732.34 	256B.0915, with the permission of the person being assessed or the person's designated or 
733.1 	legal representative, the client's current or proposed provider of services may submit a copy 
733.2 	of the provider's nursing assessment or written report outlining its recommendations regarding 
733.3 	the client's care needs. The person conducting the assessment must notify the provider of 
733.4 	the date by which this information is to be submitted. This information shall be provided 
733.5 	to the person conducting the assessment prior to the assessment. For a person who is to be 
733.6 	assessed for waiver services under section 256B.092 or 256B.49, with the permission of 
733.7 	the person being assessed or the person's designated legal representative, the person's current 
733.8 	provider of services may submit a written report outlining recommendations regarding the 
733.9 	person's care needs prepared by a direct service employee with at least 20 hours of service 
733.10 	to that client. The person conducting the assessment or reassessment must notify the provider 
733.11 	of the date by which this information is to be submitted. This information shall be provided 
733.12 	to the person conducting the assessment and the person or the person's legal representative, 
733.13 	and must be considered prior to the finalization of the assessment or reassessment.
733.14 	(e) The person or the person's legal representative must be provided with a written 
733.15 	community support plan within 40 calendar days of the assessment visit the timelines 
733.16 	established by the commissioner, regardless of whether the individual is eligible for 
733.17 	Minnesota health care programs. The timeline for completing the community support plan 
733.18 	and any required coordinated service and support plan must not exceed 56 calendar days 
733.19 	from the assessment visit.
733.20 	(f) For a person being assessed for elderly waiver services under section 256B.0915, a 
733.21 	provider who submitted information under paragraph (d) shall receive the final written 
733.22 	community support plan when available and the Residential Services Workbook.
733.23 	(g) The written community support plan must include:
733.24 	(1) a summary of assessed needs as defined in paragraphs (c) and (d);
733.25 	(2) the individual's options and choices to meet identified needs, including all available 
733.26 	options for case management services and providers, including service provided in a 
733.27 	non-disability-specific setting;
733.28 	(3) identification of health and safety risks and how those risks will be addressed, 
733.29 	including personal risk management strategies;
733.30 	(4) referral information; and
733.31 	(5) informal caregiver supports, if applicable.
734.1 	For a person determined eligible for state plan home care under subdivision 1a, paragraph 
734.2 	(b), clause (1), the person or person's representative must also receive a copy of the home 
734.3 	care service plan developed by the certified assessor.
734.4 	(h) A person may request assistance in identifying community supports without 
734.5 	participating in a complete assessment. Upon a request for assistance identifying community 
734.6 	support, the person must be transferred or referred to long-term care options counseling 
734.7 	services available under sections 256.975, subdivision 7, and 256.01, subdivision 24, for 
734.8 	telephone assistance and follow up.
734.9 	(i) The person has the right to make the final decision between institutional placement 
734.10 	and community placement after the recommendations have been provided, except as provided 
734.11 	in section 256.975, subdivision 7a, paragraph (d).
734.12 	(j) The lead agency must give the person receiving assessment or support planning, or 
734.13 	the person's legal representative, materials, and forms supplied by the commissioner 
734.14 	containing the following information:
734.15 	(1) written recommendations for community-based services and consumer-directed 
734.16 	options;
734.17 	(2) documentation that the most cost-effective alternatives available were offered to the 
734.18 	individual. For purposes of this clause, "cost-effective" means community services and 
734.19 	living arrangements that cost the same as or less than institutional care. For an individual 
734.20 	found to meet eligibility criteria for home and community-based service programs under 
734.21 	section 256B.0915 or 256B.49, "cost-effectiveness" has the meaning found in the federally 
734.22 	approved waiver plan for each program;
734.23 	(3) the need for and purpose of preadmission screening conducted by long-term care 
734.24 	options counselors according to section 256.975, subdivisions 7a to 7c, if the person selects 
734.25 	nursing facility placement. If the individual selects nursing facility placement, the lead 
734.26 	agency shall forward information needed to complete the level of care determinations and 
734.27 	screening for developmental disability and mental illness collected during the assessment 
734.28 	to the long-term care options counselor using forms provided by the commissioner;
734.29 	(4) the role of long-term care consultation assessment and support planning in eligibility 
734.30 	determination for waiver and alternative care programs, and state plan home care, case 
734.31 	management, and other services as defined in subdivision 1a, paragraphs (a), clause (6), 
734.32 	and (b);
734.33 	(5) information about Minnesota health care programs;
735.1 	(6) the person's freedom to accept or reject the recommendations of the team;
735.2 	(7) the person's right to confidentiality under the Minnesota Government Data Practices 
735.3 	Act, chapter 13;
735.4 	(8) the certified assessor's decision regarding the person's need for institutional level of 
735.5 	care as determined under criteria established in subdivision 4e and the certified assessor's 
735.6 	decision regarding eligibility for all services and programs as defined in subdivision 1a, 
735.7 	paragraphs (a), clause (6), and (b); and
735.8 	(9) the person's right to appeal the certified assessor's decision regarding eligibility for 
735.9 	all services and programs as defined in subdivision 1a, paragraphs (a), clauses (6), (7), and 
735.10 	(8), and (b), and incorporating the decision regarding the need for institutional level of care 
735.11 	or the lead agency's final decisions regarding public programs eligibility according to section 
735.12 	256.045, subdivision 3. The certified assessor must verbally communicate this appeal right 
735.13 	to the person and must visually point out where in the document the right to appeal is stated.
735.14 	(k) Face-to-face assessment completed as part of eligibility determination for the 
735.15 	alternative care, elderly waiver, developmental disabilities, community access for disability 
735.16 	inclusion, community alternative care, and brain injury waiver programs under sections 
735.17 	256B.0913, 256B.0915, 256B.092, and 256B.49 is valid to establish service eligibility for 
735.18 	no more than 60 calendar days after the date of assessment.
735.19 	(l) The effective eligibility start date for programs in paragraph (k) can never be prior 
735.20 	to the date of assessment. If an assessment was completed more than 60 days before the 
735.21 	effective waiver or alternative care program eligibility start date, assessment and support 
735.22 	plan information must be updated and documented in the department's Medicaid Management 
735.23 	Information System (MMIS). Notwithstanding retroactive medical assistance coverage of 
735.24 	state plan services, the effective date of eligibility for programs included in paragraph (k) 
735.25 	cannot be prior to the date the most recent updated assessment is completed.
735.26 	(m) If an eligibility update is completed within 90 days of the previous face-to-face 
735.27 	assessment and documented in the department's Medicaid Management Information System 
735.28 	(MMIS), the effective date of eligibility for programs included in paragraph (k) is the date 
735.29 	of the previous face-to-face assessment when all other eligibility requirements are met.
735.30 	(n) At the time of reassessment, the certified assessor shall assess each person receiving 
735.31 	waiver services currently residing in a community residential setting, or licensed adult foster 
735.32 	care home that is not the primary residence of the license holder, or in which the license 
735.33 	holder is not the primary caregiver, to determine if that person would prefer to be served in 
735.34 	a community-living setting as defined in section 256B.49, subdivision 23. The certified 
736.1 	assessor shall offer the person, through a person-centered planning process, the option to 
736.2 	receive alternative housing and service options.

736.3 	Sec. 16. Minnesota Statutes 2017 Supplement, section 256B.0911, subdivision 3f, is 
736.4 	amended to read:
736.5 		Subd. 3f.Long-term care reassessments and community support plan updates. (a) 
736.6 	Prior to a face-to-face reassessment, the certified assessor must review the person's most 
736.7 	recent assessment. Reassessments must be tailored using the professional judgment of the 
736.8 	assessor to the person's known needs, strengths, preferences, and circumstances. 
736.9 	Reassessments provide information to support the person's informed choice and opportunities 
736.10 	to express choice regarding activities that contribute to quality of life, as well as information 
736.11 	and opportunity to identify goals related to desired employment, community activities, and 
736.12 	preferred living environment. Reassessments allow forrequire a review of the most recent 
736.13 	assessment, review of the current coordinated service and support plan's effectiveness, 
736.14 	monitoring of services, and the development of an updated person-centered community 
736.15 	support plan. Reassessments verify continued eligibility or offer alternatives as warranted 
736.16 	and provide an opportunity for quality assurance of service delivery. Face-to-face assessments
736.17 	reassessments must be conducted annually or as required by federal and state laws and rules.
736.18 	For reassessments, the certified assessor and the individual responsible for developing the 
736.19 	coordinated service and support plan must ensure the continuity of care for the person 
736.20 	receiving services and complete the updated community support plan and the updated 
736.21 	coordinated service and support plan within the timelines established by the commissioner.
736.22 	(b) The commissioner shall develop mechanisms for providers and case managers to 
736.23 	share information with the assessor to facilitate a reassessment and support planning process 
736.24 	tailored to the person's current needs and preferences.

736.25 	Sec. 17. Minnesota Statutes 2017 Supplement, section 256B.0911, subdivision 5, is 
736.26 	amended to read:
736.27 		Subd. 5.Administrative activity. (a) The commissioner shall streamline the processes, 
736.28 	including timelines for when assessments need to be completed, required to provide the 
736.29 	services in this section and shall implement integrated solutions to automate the business 
736.30 	processes to the extent necessary for community support plan approval, reimbursement, 
736.31 	program planning, evaluation, and policy development.
736.32 	(b) The commissioner of human services shall work with lead agencies responsible for 
736.33 	conducting long-term consultation services to modify the MnCHOICES application and 
737.1 	assessment policies to create efficiencies while ensuring federal compliance with medical 
737.2 	assistance and long-term services and supports eligibility criteria.
737.3 	(c) The commissioner shall work with lead agencies responsible for conducting long-term 
737.4 	consultation services to develop a set of measurable benchmarks sufficient to demonstrate 
737.5 	quarterly improvement in the average time per assessment and other mutually agreed upon 
737.6 	measures of increasing efficiency. The commissioner shall collect data on these benchmarks 
737.7 	and provide to the lead agencies and the chairs and ranking minority members of the 
737.8 	legislative committees with jurisdiction over human services an annual trend analysis of 
737.9 	the data in order to demonstrate the commissioner's compliance with the requirements of 
737.10 	this subdivision.

737.11 	Sec. 18. Minnesota Statutes 2017 Supplement, section 256B.0915, subdivision 3a, is 
737.12 	amended to read:
737.13 		Subd. 3a.Elderly waiver cost limits. (a) Effective on the first day of the state fiscal 
737.14 	year in which the resident assessment system as described in section 256R.17 for nursing 
737.15 	home rate determination is implemented and the first day of each subsequent state fiscal 
737.16 	year, the monthly limit for the cost of waivered services to an individual elderly waiver 
737.17 	client shall be the monthly limit of the case mix resident class to which the waiver client 
737.18 	would be assigned under Minnesota Rules, parts 9549.0051 to 9549.0059, in effect on the 
737.19 	last day of the previous state fiscal year, adjusted by any legislatively adopted home and 
737.20 	community-based services percentage rate adjustment. If a legislatively authorized increase 
737.21 	is service-specific, the monthly cost limit shall be adjusted based on the overall average 
737.22 	increase to the elderly waiver program.
737.23 	(b) The monthly limit for the cost of waivered services under paragraph (a) to an 
737.24 	individual elderly waiver client assigned to a case mix classification A with:
737.25 	(1) no dependencies in activities of daily living; or
737.26 	(2) up to two dependencies in bathing, dressing, grooming, walking, and eating when 
737.27 	the dependency score in eating is three or greater as determined by an assessment performed 
737.28 	under section 256B.0911 shall be $1,750 per month effective on July 1, 2011, for all new 
737.29 	participants enrolled in the program on or after July 1, 2011. This monthly limit shall be 
737.30 	applied to all other participants who meet this criteria at reassessment. This monthly limit 
737.31 	shall be increased annually as described in paragraphs (a) and (e).
737.32 	(c) If extended medical supplies and equipment or environmental modifications are or 
737.33 	will be purchased for an elderly waiver client, the costs may be prorated for up to 12 
738.1 	consecutive months beginning with the month of purchase. If the monthly cost of a recipient's 
738.2 	waivered services exceeds the monthly limit established in paragraph (a), (b), (d), or (e), 
738.3 	the annual cost of all waivered services shall be determined. In this event, the annual cost 
738.4 	of all waivered services shall not exceed 12 times the monthly limit of waivered services 
738.5 	as described in paragraph (a), (b), (d), or (e).
738.6 	(d) Effective July 1, 2013, the monthly cost limit of waiver services, including any 
738.7 	necessary home care services described in section 256B.0651, subdivision 2, for individuals 
738.8 	who meet the criteria as ventilator-dependent given in section 256B.0651, subdivision 1, 
738.9 	paragraph (g), shall be the average of the monthly medical assistance amount established 
738.10 	for home care services as described in section 256B.0652, subdivision 7, and the annual 
738.11 	average contracted amount established by the commissioner for nursing facility services 
738.12 	for ventilator-dependent individuals. This monthly limit shall be increased annually as 
738.13 	described in paragraphs (a) and (e).
738.14 	(e) Effective January 1, 2018, and each January 1 thereafter, the monthly cost limits for 
738.15 	elderly waiver services in effect on the previous December 31 shall be increased by the 
738.16 	difference between any legislatively adopted home and community-based provider rate 
738.17 	increases effective on January 1 or since the previous January 1 and the average statewide 
738.18 	percentage increase in nursing facility operating payment rates under chapter 256R, effective 
738.19 	the previous January 1. This paragraph shall only apply if the average statewide percentage 
738.20 	increase in nursing facility operating payment rates is greater than any legislatively adopted 
738.21 	home and community-based provider rate increases effective on January 1, or occurring 
738.22 	since the previous January 1.
738.23 	(f) The commissioner shall approve an exception to the monthly case mix budget cap 
738.24 	in paragraph (a) to pay for an enhanced rate under section 256B.0659, subdivision 17a. The 
738.25 	exception shall not exceed 105 percent of the budget otherwise available to the person.

738.26 	EFFECTIVE DATE. Paragraph (f) is effective July 1, 2018, or upon federal approval, 
738.27 	whichever is later. The commissioner of human services shall notify the revisor of statutes 
738.28 	when federal approval is obtained.

738.29 	Sec. 19. Minnesota Statutes 2016, section 256B.0915, subdivision 6, is amended to read:
738.30 		Subd. 6.Implementation of coordinated service and support plan. (a) Each elderly 
738.31 	waiver client shall be provided a copy of a written coordinated service and support plan 
738.32 	which that:
739.1 	(1) is developed with and signed by the recipient within ten working days after the case 
739.2 	manager receives the assessment information and written community support plan as 
739.3 	described in section 256B.0911, subdivision 3a, from the certified assessor the timelines 
739.4 	established by the commissioner. The timeline for completing the community support plan 
739.5 	under section 256B.0911, subdivision 3a, and the coordinated service and support plan must 
739.6 	not exceed 56 calendar days from the assessment visit;
739.7 	(2) includes the person's need for service and identification of service needs that will be 
739.8 	or that are met by the person's relatives, friends, and others, as well as community services 
739.9 	used by the general public;
739.10 	(3) reasonably ensures the health and welfare of the recipient;
739.11 	(4) identifies the person's preferences for services as stated by the person or the person's 
739.12 	legal guardian or conservator;
739.13 	(5) reflects the person's informed choice between institutional and community-based 
739.14 	services, as well as choice of services, supports, and providers, including available case 
739.15 	manager providers;
739.16 	(6) identifies long-range and short-range goals for the person;
739.17 	(7) identifies specific services and the amount, frequency, duration, and cost of the 
739.18 	services to be provided to the person based on assessed needs, preferences, and available 
739.19 	resources;
739.20 	(8) includes information about the right to appeal decisions under section 256.045; and
739.21 	(9) includes the authorized annual and estimated monthly amounts for the services.
739.22 	(b) In developing the coordinated service and support plan, the case manager should 
739.23 	also include the use of volunteers, religious organizations, social clubs, and civic and service 
739.24 	organizations to support the individual in the community. The lead agency must be held 
739.25 	harmless for damages or injuries sustained through the use of volunteers and agencies under 
739.26 	this paragraph, including workers' compensation liability.

739.27 	Sec. 20. Minnesota Statutes 2016, section 256B.092, subdivision 1b, is amended to read:
739.28 		Subd. 1b.Coordinated service and support plan. (a) Each recipient of home and 
739.29 	community-based waivered services shall be provided a copy of the written coordinated 
739.30 	service and support plan which that:
739.31 	(1) is developed with and signed by the recipient within ten working days after the case 
739.32 	manager receives the assessment information and written community support plan as 
740.1 	described in section 256B.0911, subdivision 3a, from the certified assessor the timelines 
740.2 	established by the commissioner. The timeline for completing the community support plan 
740.3 	under section 256B.0911, subdivision 3a, and the coordinated service and support plan must 
740.4 	not exceed 56 calendar days from the assessment visit;
740.5 	(2) includes the person's need for service, including identification of service needs that 
740.6 	will be or that are met by the person's relatives, friends, and others, as well as community 
740.7 	services used by the general public;
740.8 	(3) reasonably ensures the health and welfare of the recipient;
740.9 	(4) identifies the person's preferences for services as stated by the person, the person's 
740.10 	legal guardian or conservator, or the parent if the person is a minor, including the person's 
740.11 	choices made on self-directed options and on services and supports to achieve employment 
740.12 	goals;
740.13 	(5) provides for an informed choice, as defined in section 256B.77, subdivision 2, 
740.14 	paragraph (o), of service and support providers, and identifies all available options for case 
740.15 	management services and providers;
740.16 	(6) identifies long-range and short-range goals for the person;
740.17 	(7) identifies specific services and the amount and frequency of the services to be provided 
740.18 	to the person based on assessed needs, preferences, and available resources. The coordinated 
740.19 	service and support plan shall also specify other services the person needs that are not 
740.20 	available;
740.21 	(8) identifies the need for an individual program plan to be developed by the provider 
740.22 	according to the respective state and federal licensing and certification standards, and 
740.23 	additional assessments to be completed or arranged by the provider after service initiation;
740.24 	(9) identifies provider responsibilities to implement and make recommendations for 
740.25 	modification to the coordinated service and support plan;
740.26 	(10) includes notice of the right to request a conciliation conference or a hearing under 
740.27 	section 256.045;
740.28 	(11) is agreed upon and signed by the person, the person's legal guardian or conservator, 
740.29 	or the parent if the person is a minor, and the authorized county representative;
740.30 	(12) is reviewed by a health professional if the person has overriding medical needs that 
740.31 	impact the delivery of services; and
740.32 	(13) includes the authorized annual and monthly amounts for the services.
741.1 	(b) In developing the coordinated service and support plan, the case manager is 
741.2 	encouraged to include the use of volunteers, religious organizations, social clubs, and civic 
741.3 	and service organizations to support the individual in the community. The lead agency must 
741.4 	be held harmless for damages or injuries sustained through the use of volunteers and agencies 
741.5 	under this paragraph, including workers' compensation liability.
741.6 	(c) Approved, written, and signed changes to a consumer's services that meet the criteria 
741.7 	in this subdivision shall be an addendum to that consumer's individual service plan.

741.8 	Sec. 21. Minnesota Statutes 2016, section 256B.092, subdivision 1g, is amended to read:
741.9 		Subd. 1g.Conditions not requiring development of coordinated service and support 
741.10 	plan. (a) Unless otherwise required by federal law, the county agency is not required to 
741.11 	complete a coordinated service and support plan as defined in subdivision 1b for:
741.12 	(1) persons whose families are requesting respite care for their family member who 
741.13 	resides with them, or whose families are requesting a family support grant and are not 
741.14 	requesting purchase or arrangement of habilitative services; and
741.15 	(2) persons with developmental disabilities, living independently without authorized 
741.16 	services or receiving funding for services at a rehabilitation facility as defined in section 
741.17 	268A.01, subdivision 6, and not in need of or requesting additional services.
741.18 	(b) Unless otherwise required by federal law, the county agency is not required to conduct 
741.19 	or arrange for an annual needs reassessment by a certified assessor. The case manager who 
741.20 	works on behalf of the person to identify the person's needs and to minimize the impact of 
741.21 	the disability on the person's life must develop a person-centered service plan based on the 
741.22 	person's assessed needs and preferences. The person-centered service plan must be reviewed 
741.23 	annually. This paragraph applies to persons with developmental disabilities who are receiving 
741.24 	case management services under Minnesota Rules, part 9525.0036, and who make an 
741.25 	informed choice to decline an assessment under section 256B.0911.

741.26 	Sec. 22. Minnesota Statutes 2017 Supplement, section 256B.0921, is amended to read:
741.27 	256B.0921 HOME AND COMMUNITY-BASED SERVICES INCENTIVE
741.28 	INNOVATION POOL.
741.29 	The commissioner of human services shall develop an initiative to provide incentives 
741.30 	for innovation in: (1) achieving integrated competitive employment; (2) achieving integrated 
741.31 	competitive employment for youth under age 25 upon their graduation from school; (3) 
741.32 	living in the most integrated setting; and (4) other outcomes determined by the commissioner. 
742.1 	The commissioner shall seek requests for proposals and shall contract with one or more 
742.2 	entities to provide incentive payments for meeting identified outcomes.

742.3 	Sec. 23. Minnesota Statutes 2017 Supplement, section 256B.49, subdivision 13, is amended 
742.4 	to read:
742.5 		Subd. 13.Case management. (a) Each recipient of a home and community-based waiver 
742.6 	shall be provided case management services by qualified vendors as described in the federally 
742.7 	approved waiver application. The case management service activities provided must include:
742.8 	(1) finalizing the written coordinated service and support plan within ten working days 
742.9 	after the case manager receives the plan from the certified assessor the timelines established 
742.10 	by the commissioner. The timeline for completing the community support plan under section 
742.11 	256B.0911, subdivision 3a, and the coordinated service and support plan must not exceed 
742.12 	56 calendar days from the assessment visit;
742.13 	(2) informing the recipient or the recipient's legal guardian or conservator of service 
742.14 	options;
742.15 	(3) assisting the recipient in the identification of potential service providers and available 
742.16 	options for case management service and providers, including services provided in a 
742.17 	non-disability-specific setting;
742.18 	(4) assisting the recipient to access services and assisting with appeals under section 
742.19 	256.045; and
742.20 	(5) coordinating, evaluating, and monitoring of the services identified in the service 
742.21 	plan.
742.22 	(b) The case manager may delegate certain aspects of the case management service 
742.23 	activities to another individual provided there is oversight by the case manager. The case 
742.24 	manager may not delegate those aspects which require professional judgment including:
742.25 	(1) finalizing the coordinated service and support plan;
742.26 	(2) ongoing assessment and monitoring of the person's needs and adequacy of the 
742.27 	approved coordinated service and support plan; and
742.28 	(3) adjustments to the coordinated service and support plan.
742.29 	(c) Case management services must be provided by a public or private agency that is 
742.30 	enrolled as a medical assistance provider determined by the commissioner to meet all of 
742.31 	the requirements in the approved federal waiver plans. Case management services must not 
742.32 	be provided to a recipient by a private agency that has any financial interest in the provision 
743.1 	of any other services included in the recipient's coordinated service and support plan. For 
743.2 	purposes of this section, "private agency" means any agency that is not identified as a lead 
743.3 	agency under section 256B.0911, subdivision 1a, paragraph (e).
743.4 	(d) For persons who need a positive support transition plan as required in chapter 245D, 
743.5 	the case manager shall participate in the development and ongoing evaluation of the plan 
743.6 	with the expanded support team. At least quarterly, the case manager, in consultation with 
743.7 	the expanded support team, shall evaluate the effectiveness of the plan based on progress 
743.8 	evaluation data submitted by the licensed provider to the case manager. The evaluation must 
743.9 	identify whether the plan has been developed and implemented in a manner to achieve the 
743.10 	following within the required timelines:
743.11 	(1) phasing out the use of prohibited procedures;
743.12 	(2) acquisition of skills needed to eliminate the prohibited procedures within the plan's 
743.13 	timeline; and
743.14 	(3) accomplishment of identified outcomes.
743.15 	If adequate progress is not being made, the case manager shall consult with the person's 
743.16 	expanded support team to identify needed modifications and whether additional professional 
743.17 	support is required to provide consultation.

743.18 	Sec. 24. Minnesota Statutes 2017 Supplement, section 256B.4914, subdivision 2, is 
743.19 	amended to read:
743.20 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
743.21 	meanings given them, unless the context clearly indicates otherwise.
743.22 	(b) "Commissioner" means the commissioner of human services.
743.23 	(c) "Component value" means underlying factors that are part of the cost of providing 
743.24 	services that are built into the waiver rates methodology to calculate service rates.
743.25 	(d) "Customized living tool" means a methodology for setting service rates that delineates 
743.26 	and documents the amount of each component service included in a recipient's customized 
743.27 	living service plan.
743.28 	(e) "Direct care staff" means employees providing direct service provision to people 
743.29 	receiving services under this section. Direct care staff does not include executive, managerial, 
743.30 	and administrative staff.
744.1 	(f) "Disability waiver rates system" means a statewide system that establishes rates that 
744.2 	are based on uniform processes and captures the individualized nature of waiver services 
744.3 	and recipient needs.
744.4 	(f) (g) "Individual staffing" means the time spent as a one-to-one interaction specific to 
744.5 	an individual recipient by staff to provide direct support and assistance with activities of 
744.6 	daily living, instrumental activities of daily living, and training to participants, and is based 
744.7 	on the requirements in each individual's coordinated service and support plan under section 
744.8 	245D.02, subdivision 4b; any coordinated service and support plan addendum under section 
744.9 	245D.02, subdivision 4c; and an assessment tool. Provider observation of an individual's 
744.10 	needs must also be considered.
744.11 	(g) (h) "Lead agency" means a county, partnership of counties, or tribal agency charged 
744.12 	with administering waivered services under sections 256B.092 and 256B.49.
744.13 	(h) (i) "Median" means the amount that divides distribution into two equal groups, 
744.14 	one-half above the median and one-half below the median.
744.15 	(i) (j) "Payment or rate" means reimbursement to an eligible provider for services 
744.16 	provided to a qualified individual based on an approved service authorization.
744.17 	(j) (k) "Rates management system" means a Web-based software application that uses 
744.18 	a framework and component values, as determined by the commissioner, to establish service 
744.19 	rates.
744.20 	(k) (l) "Recipient" means a person receiving home and community-based services funded 
744.21 	under any of the disability waivers.
744.22 	(l) (m) "Shared staffing" means time spent by employees, not defined under paragraph 
744.23 	(f) (g), providing or available to provide more than one individual with direct support and 
744.24 	assistance with activities of daily living as defined under section 256B.0659, subdivision 
744.25 	1, paragraph (b); instrumental activities of daily living as defined under section 256B.0659, 
744.26 	subdivision 1, paragraph (i); ancillary activities needed to support individual services; and 
744.27 	training to participants, and is based on the requirements in each individual's coordinated 
744.28 	service and support plan under section 245D.02, subdivision 4b; any coordinated service 
744.29 	and support plan addendum under section 245D.02, subdivision 4c; an assessment tool; and 
744.30 	provider observation of an individual's service need. Total shared staffing hours are divided 
744.31 	proportionally by the number of individuals who receive the shared service provisions.
744.32 	(m) (n) "Staffing ratio" means the number of recipients a service provider employee 
744.33 	supports during a unit of service based on a uniform assessment tool, provider observation, 
745.1 	case history, and the recipient's services of choice, and not based on the staffing ratios under 
745.2 	section 245D.31.
745.3 	(n) (o) "Unit of service" means the following:
745.4 	(1) for residential support services under subdivision 6, a unit of service is a day. Any 
745.5 	portion of any calendar day, within allowable Medicaid rules, where an individual spends 
745.6 	time in a residential setting is billable as a day;
745.7 	(2) for day services under subdivision 7:
745.8 	(i) for day training and habilitation services, a unit of service is either:
745.9 	(A) a day unit of service is defined as six or more hours of time spent providing direct 
745.10 	services and transportation; or
745.11 	(B) a partial day unit of service is defined as fewer than six hours of time spent providing 
745.12 	direct services and transportation; and
745.13 	(C) for new day service recipients after January 1, 2014, 15 minute units of service must 
745.14 	be used for fewer than six hours of time spent providing direct services and transportation;
745.15 	(ii) for adult day and structured day services, a unit of service is a day or 15 minutes. A 
745.16 	day unit of service is six or more hours of time spent providing direct services;
745.17 	(iii) for prevocational services, a unit of service is a day or an hour. A day unit of service 
745.18 	is six or more hours of time spent providing direct service;
745.19 	(3) for unit-based services with programming under subdivision 8:
745.20 	(i) for supported living services, a unit of service is a day or 15 minutes. When a day 
745.21 	rate is authorized, any portion of a calendar day where an individual receives services is 
745.22 	billable as a day; and
745.23 	(ii) for all other services, a unit of service is 15 minutes; and
745.24 	(4) for unit-based services without programming under subdivision 9, a unit of service 
745.25 	is 15 minutes.

745.26 	Sec. 25. Minnesota Statutes 2017 Supplement, section 256B.4914, subdivision 3, is 
745.27 	amended to read:
745.28 		Subd. 3.Applicable services. Applicable services are those authorized under the state's 
745.29 	home and community-based services waivers under sections 256B.092 and 256B.49, 
745.30 	including the following, as defined in the federally approved home and community-based 
745.31 	services plan:
746.1 	(1) 24-hour customized living;
746.2 	(2) adult day care;
746.3 	(3) adult day care bath;
746.4 	(4) behavioral programming;
746.5 	(5) (4) companion services;
746.6 	(6) (5) customized living;
746.7 	(7) (6) day training and habilitation;
746.8 	(7) employment development services;
746.9 	(8) employment exploration services;
746.10 	(9) employment support services;
746.11 	(8) (10) housing access coordination;
746.12 	(9) (11) independent living skills;
746.13 	(12) independent living skills specialist services;
746.14 	(13) individualized home supports;
746.15 	(10) (14) in-home family support;
746.16 	(11) (15) night supervision;
746.17 	(12) (16) personal support;
746.18 	(17) positive support service;
746.19 	(13) (18) prevocational services;
746.20 	(14) (19) residential care services;
746.21 	(15) (20) residential support services;
746.22 	(16) (21) respite services;
746.23 	(17) (22) structured day services;
746.24 	(18) (23) supported employment services;
746.25 	(19) (24) supported living services;
746.26 	(20) (25) transportation services;
746.27 	(21) individualized home supports;
747.1 	(22) independent living skills specialist services;
747.2 	(23) employment exploration services;
747.3 	(24) employment development services;
747.4 	(25) employment support services; and
747.5 	(26) other services as approved by the federal government in the state home and 
747.6 	community-based services plan.

747.7 	Sec. 26. Minnesota Statutes 2016, section 256B.4914, subdivision 4, is amended to read:
747.8 		Subd. 4.Data collection for rate determination. (a) Rates for applicable home and 
747.9 	community-based waivered services, including rate exceptions under subdivision 12, are 
747.10 	set by the rates management system.
747.11 	(b) Data for services under section 256B.4913, subdivision 4a, shall be collected in a 
747.12 	manner prescribed by the commissioner.
747.13 	(c) Data and information in the rates management system may be used to calculate an 
747.14 	individual's rate.
747.15 	(d) Service providers, with information from the community support plan and oversight 
747.16 	by lead agencies, shall provide values and information needed to calculate an individual's 
747.17 	rate into the rates management system. The determination of service levels must be part of 
747.18 	a discussion with members of the support team as defined in section 245D.02, subdivision 
747.19 	34. This discussion must occur prior to the final establishment of each individual's rate. The 
747.20 	values and information include:
747.21 	(1) shared staffing hours;
747.22 	(2) individual staffing hours;
747.23 	(3) direct registered nurse hours;
747.24 	(4) direct licensed practical nurse hours;
747.25 	(5) staffing ratios;
747.26 	(6) information to document variable levels of service qualification for variable levels 
747.27 	of reimbursement in each framework;
747.28 	(7) shared or individualized arrangements for unit-based services, including the staffing 
747.29 	ratio;
747.30 	(8) number of trips and miles for transportation services; and
748.1 	(9) service hours provided through monitoring technology.
748.2 	(e) Updates to individual data must include:
748.3 	(1) data for each individual that is updated annually when renewing service plans; and
748.4 	(2) requests by individuals or lead agencies to update a rate whenever there is a change 
748.5 	in an individual's service needs, with accompanying documentation.
748.6 	(f) Lead agencies shall review and approve all services reflecting each individual's needs, 
748.7 	and the values to calculate the final payment rate for services with variables under 
748.8 	subdivisions 6, 7, 8, and 9 for each individual. Lead agencies must notify the individual and 
748.9 	the service provider of the final agreed-upon values and rate, and provide information that 
748.10 	is identical to what was entered into the rates management system. If a value used was 
748.11 	mistakenly or erroneously entered and used to calculate a rate, a provider may petition lead 
748.12 	agencies to correct it. Lead agencies must respond to these requests. When responding to 
748.13 	the request, the lead agency must consider:
748.14 	(1) meeting the health and welfare needs of the individual or individuals receiving 
748.15 	services by service site, identified in their coordinated service and support plan under section 
748.16 	245D.02, subdivision 4b, and any addendum under section 245D.02, subdivision 4c;
748.17 	(2) meeting the requirements for staffing under subdivision 2, paragraphs (f) (g), (i) (m), 
748.18 	and (m) (n); and meeting or exceeding the licensing standards for staffing required under 
748.19 	section 245D.09, subdivision 1; and
748.20 	(3) meeting the staffing ratio requirements under subdivision 2, paragraph (n), and 
748.21 	meeting or exceeding the licensing standards for staffing required under section 245D.31.

748.22 	Sec. 27. Minnesota Statutes 2017 Supplement, section 256B.4914, subdivision 5, is 
748.23 	amended to read:
748.24 		Subd. 5.Base wage index and standard component values. (a) The base wage index 
748.25 	is established to determine staffing costs associated with providing services to individuals 
748.26 	receiving home and community-based services. For purposes of developing and calculating 
748.27 	the proposed base wage, Minnesota-specific wages taken from job descriptions and standard 
748.28 	occupational classification (SOC) codes from the Bureau of Labor Statistics as defined in 
748.29 	the most recent edition of the Occupational Handbook must be used. The base wage index 
748.30 	must be calculated as follows:
748.31 	(1) for residential direct care staff, the sum of:
749.1 	(i) 15 percent of the subtotal of 50 percent of the median wage for personal and home 
749.2 	health aide (SOC code 39-9021); 30 percent of the median wage for nursing assistant (SOC 
749.3 	code 31-1014); and 20 percent of the median wage for social and human services aide (SOC 
749.4 	code 21-1093); and
749.5 	(ii) 85 percent of the subtotal of 20 percent of the median wage for home health aide 
749.6 	(SOC code 31-1011); 20 percent of the median wage for personal and home health aide 
749.7 	(SOC code 39-9021); 20 percent of the median wage for nursing assistant (SOC code 
749.8 	31-1014); 20 percent of the median wage for psychiatric technician (SOC code 29-2053); 
749.9 	and 20 percent of the median wage for social and human services aide (SOC code 21-1093);
749.10 	(2) for day services, 20 percent of the median wage for nursing assistant (SOC code 
749.11 	31-1014); 20 percent of the median wage for psychiatric technician (SOC code 29-2053); 
749.12 	and 60 percent of the median wage for social and human services aide (SOC code 21-1093);
749.13 	(3) for residential asleep-overnight staff, the wage is the minimum wage in Minnesota 
749.14 	for large employers, except in a family foster care setting, the wage is 36 percent of the 
749.15 	minimum wage in Minnesota for large employers;
749.16 	(4) for behavior program analyst staff, 100 percent of the median wage for mental health 
749.17 	counselors (SOC code 21-1014);
749.18 	(5) for behavior program professional staff, 100 percent of the median wage for clinical 
749.19 	counseling and school psychologist (SOC code 19-3031);
749.20 	(6) for behavior program specialist staff, 100 percent of the median wage for psychiatric 
749.21 	technicians (SOC code 29-2053);
749.22 	(7) for supportive living services staff, 20 percent of the median wage for nursing assistant 
749.23 	(SOC code 31-1014); 20 percent of the median wage for psychiatric technician (SOC code 
749.24 	29-2053); and 60 percent of the median wage for social and human services aide (SOC code 
749.25 	21-1093);
749.26 	(8) for housing access coordination staff, 100 percent of the median wage for community 
749.27 	and social services specialist (SOC code 21-1099);
749.28 	(9) for in-home family support staff, 20 percent of the median wage for nursing aide 
749.29 	(SOC code 31-1012); 30 percent of the median wage for community social service specialist 
749.30 	(SOC code 21-1099); 40 percent of the median wage for social and human services aide 
749.31 	(SOC code 21-1093); and ten percent of the median wage for psychiatric technician (SOC 
749.32 	code 29-2053);
750.1 	(10) for individualized home supports services staff, 40 percent of the median wage for 
750.2 	community social service specialist (SOC code 21-1099); 50 percent of the median wage 
750.3 	for social and human services aide (SOC code 21-1093); and ten percent of the median 
750.4 	wage for psychiatric technician (SOC code 29-2053);
750.5 	(11) for independent living skills staff, 40 percent of the median wage for community 
750.6 	social service specialist (SOC code 21-1099); 50 percent of the median wage for social and 
750.7 	human services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric 
750.8 	technician (SOC code 29-2053);
750.9 	(12) for independent living skills specialist staff, 100 percent of mental health and 
750.10 	substance abuse social worker (SOC code 21-1023);
750.11 	(13) for supported employment staff, 20 percent of the median wage for nursing assistant 
750.12 	(SOC code 31-1014); 20 percent of the median wage for psychiatric technician (SOC code 
750.13 	29-2053); and 60 percent of the median wage for social and human services aide (SOC code 
750.14 	21-1093);
750.15 	(14) for employment support services staff, 50 percent of the median wage for 
750.16 	rehabilitation counselor (SOC code 21-1015); and 50 percent of the median wage for 
750.17 	community and social services specialist (SOC code 21-1099);
750.18 	(15) for employment exploration services staff, 50 percent of the median wage for 
750.19 	rehabilitation counselor (SOC code 21-1015); and 50 percent of the median wage for 
750.20 	community and social services specialist (SOC code 21-1099);
750.21 	(16) for employment development services staff, 50 percent of the median wage for 
750.22 	education, guidance, school, and vocational counselors (SOC code 21-1012); and 50 percent 
750.23 	of the median wage for community and social services specialist (SOC code 21-1099);
750.24 	(17) for adult companion staff, 50 percent of the median wage for personal and home 
750.25 	care aide (SOC code 39-9021); and 50 percent of the median wage for nursing assistant 
750.26 	(SOC code 31-1014);
750.27 	(18) for night supervision staff, 20 percent of the median wage for home health aide 
750.28 	(SOC code 31-1011); 20 percent of the median wage for personal and home health aide 
750.29 	(SOC code 39-9021); 20 percent of the median wage for nursing assistant (SOC code 
750.30 	31-1014); 20 percent of the median wage for psychiatric technician (SOC code 29-2053); 
750.31 	and 20 percent of the median wage for social and human services aide (SOC code 21-1093);
751.1 	(19) for respite staff, 50 percent of the median wage for personal and home care aide 
751.2 	(SOC code 39-9021); and 50 percent of the median wage for nursing assistant (SOC code 
751.3 	31-1014);
751.4 	(20) for personal support staff, 50 percent of the median wage for personal and home 
751.5 	care aide (SOC code 39-9021); and 50 percent of the median wage for nursing assistant 
751.6 	(SOC code 31-1014);
751.7 	(21) for supervisory staff, 100 percent of the median wage for community and social 
751.8 	services specialist (SOC code 21-1099), with the exception of the supervisor of behavior 
751.9 	professional, behavior analyst, and behavior specialists, which is 100 percent of the median 
751.10 	wage for clinical counseling and school psychologist (SOC code 19-3031);
751.11 	(22) for registered nurse staff, 100 percent of the median wage for registered nurses 
751.12 	(SOC code 29-1141); and
751.13 	(23) for licensed practical nurse staff, 100 percent of the median wage for licensed 
751.14 	practical nurses (SOC code 29-2061).
751.15 	(b) Component values for residential support services are:
751.16 	(1) supervisory span of control ratio: 11 percent;
751.17 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
751.18 	(3) employee-related cost ratio: 23.6 percent;
751.19 	(4) general administrative support ratio: 13.25 percent;
751.20 	(5) program-related expense ratio: 1.3 percent; and
751.21 	(6) absence and utilization factor ratio: 3.9 percent.
751.22 	(c) Component values for family foster care are:
751.23 	(1) supervisory span of control ratio: 11 percent;
751.24 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
751.25 	(3) employee-related cost ratio: 23.6 percent;
751.26 	(4) general administrative support ratio: 3.3 percent;
751.27 	(5) program-related expense ratio: 1.3 percent; and
751.28 	(6) absence factor: 1.7 percent.
751.29 	(d) Component values for day services for all services are:
752.1 	(1) supervisory span of control ratio: 11 percent;
752.2 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
752.3 	(3) employee-related cost ratio: 23.6 percent;
752.4 	(4) program plan support ratio: 5.6 percent;
752.5 	(5) client programming and support ratio: ten percent;
752.6 	(6) general administrative support ratio: 13.25 percent;
752.7 	(7) program-related expense ratio: 1.8 percent; and
752.8 	(8) absence and utilization factor ratio: 9.4 percent.
752.9 	(e) Component values for unit-based services with programming are:
752.10 	(1) supervisory span of control ratio: 11 percent;
752.11 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
752.12 	(3) employee-related cost ratio: 23.6 percent;
752.13 	(4) program plan supports ratio: 15.5 percent;
752.14 	(5) client programming and supports ratio: 4.7 percent;
752.15 	(6) general administrative support ratio: 13.25 percent;
752.16 	(7) program-related expense ratio: 6.1 percent; and
752.17 	(8) absence and utilization factor ratio: 3.9 percent.
752.18 	(f) Component values for unit-based services without programming except respite are:
752.19 	(1) supervisory span of control ratio: 11 percent;
752.20 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
752.21 	(3) employee-related cost ratio: 23.6 percent;
752.22 	(4) program plan support ratio: 7.0 percent;
752.23 	(5) client programming and support ratio: 2.3 percent;
752.24 	(6) general administrative support ratio: 13.25 percent;
752.25 	(7) program-related expense ratio: 2.9 percent; and
752.26 	(8) absence and utilization factor ratio: 3.9 percent.
752.27 	(g) Component values for unit-based services without programming for respite are:
753.1 	(1) supervisory span of control ratio: 11 percent;
753.2 	(2) employee vacation, sick, and training allowance ratio: 8.71 percent;
753.3 	(3) employee-related cost ratio: 23.6 percent;
753.4 	(4) general administrative support ratio: 13.25 percent;
753.5 	(5) program-related expense ratio: 2.9 percent; and
753.6 	(6) absence and utilization factor ratio: 3.9 percent.
753.7 	(h) On July 1, 2017, the commissioner shall update the base wage index in paragraph 
753.8 	(a) based on the wage data by standard occupational code (SOC) from the Bureau of Labor 
753.9 	Statistics available on December 31, 2016. The commissioner shall publish these updated 
753.10 	values and load them into the rate management system. On July 1, 2022, and every five two
753.11 	years thereafter, the commissioner shall update the base wage index in paragraph (a) based 
753.12 	on the most recently available wage data by SOC from the Bureau of Labor Statistics
753.13 	available on December 31 of the year two years prior to the scheduled update. The 
753.14 	commissioner shall publish these updated values and load them into the rate management 
753.15 	system.
753.16 	(i) On July 1, 2017, the commissioner shall update the framework components in 
753.17 	paragraph (d), clause (5); paragraph (e), clause (5); and paragraph (f), clause (5); subdivision 
753.18 	6, clauses (8) and (9); and subdivision 7, clauses (10), (16), and (17), for changes in the 
753.19 	Consumer Price Index. The commissioner will adjust these values higher or lower by the 
753.20 	percentage change in the Consumer Price Index-All Items, United States city average 
753.21 	(CPI-U) from January 1, 2014, to January 1, 2017. The commissioner shall publish these 
753.22 	updated values and load them into the rate management system. On July 1, 2022, and every 
753.23 	five two years thereafter, the commissioner shall update the framework components in 
753.24 	paragraph (d), clause (5); paragraph (e), clause (5); and paragraph (f), clause (5); subdivision 
753.25 	6, clauses (8) and (9); and subdivision 7, clauses (10), (16), and (17), for changes in the 
753.26 	Consumer Price Index. The commissioner shall adjust these values higher or lower by the 
753.27 	percentage change in the CPI-U from the date of the previous update to the date of the data 
753.28 	most recently available on December 31 of the year two years prior to the scheduled update. 
753.29 	The commissioner shall publish these updated values and load them into the rate management 
753.30 	system.
753.31 	(j) In this subdivision, if Bureau of Labor Statistics occupational codes or Consumer 
753.32 	Price Index items are unavailable in the future, the commissioner shall recommend to the 
753.33 	legislature codes or items to update and replace missing component values.
754.1 	(k) The commissioner shall increase the updated base wage index in paragraph (h) with 
754.2 	a competitive workforce factor as follows:
754.3 	(1) effective January 1, 2019, or upon federal approval, whichever is later, the competitive 
754.4 	workforce factor is 8.35 percent;
754.5 	(2) effective July 1, 2019, the competitive workforce factor is decreased to 4.55 percent; 
754.6 	and
754.7 	(3) effective July 1, 2022, the competitive workforce factor is increased to 5.55 percent.
754.8 	The lead agencies must implement the competitive workforce factor on the dates listed in 
754.9 	clauses (1) and (2) and not as reassessments, reauthorizations, or service plan renewals 
754.10 	occur. Lead agencies must implement adjustments to the competitive workforce factor in 
754.11 	clause (3) in conjunction with the base wage index updates required in paragraph (h) as 
754.12 	reassessments, reauthorizations, or service plan renewals occur.

754.13 	EFFECTIVE DATE. (a) The amendments to paragraphs (h) and (i) are effective July 
754.14 	1, 2022, or upon federal approval, whichever is later. The commissioner shall inform the 
754.15 	revisor of statutes when federal approval is obtained.
754.16 	(b) Paragraph (k) is effective January 1, 2019, or upon federal approval, whichever is 
754.17 	later. The commissioner shall inform the revisor of statutes when federal approval is obtained.

754.18 	Sec. 28. Minnesota Statutes 2017 Supplement, section 256B.4914, subdivision 6, is 
754.19 	amended to read:
754.20 		Subd. 6.Payments for residential support services. (a) Payments for residential support 
754.21 	services, as defined in sections 256B.092, subdivision 11, and 256B.49, subdivision 22, 
754.22 	must be calculated as follows:
754.23 	(1) determine the number of shared staffing and individual direct staff hours to meet a 
754.24 	recipient's needs provided on site or through monitoring technology;
754.25 	(2) personnel hourly wage rate must be based on the 2009 Bureau of Labor Statistics 
754.26 	Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 
754.27 	5. This is defined as the direct-care rate;
754.28 	(3) for a recipient requiring customization for deaf and hard-of-hearing language 
754.29 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
754.30 	to the result of clause (2). This is defined as the customized direct-care rate;
755.1 	(4) multiply the number of shared and individual direct staff hours provided on site or 
755.2 	through monitoring technology and nursing hours by the appropriate staff wages in 
755.3 	subdivision 5, paragraph (a), or the customized direct-care rate;
755.4 	(5) multiply the number of shared and individual direct staff hours provided on site or 
755.5 	through monitoring technology and nursing hours by the product of the supervision span 
755.6 	of control ratio in subdivision 5, paragraph (b), clause (1), and the appropriate supervision 
755.7 	wage in subdivision 5, paragraph (a), clause (21);
755.8 	(6) combine the results of clauses (4) and (5), excluding any shared and individual direct 
755.9 	staff hours provided through monitoring technology, and multiply the result by one plus 
755.10 	the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (b), 
755.11 	clause (2). This is defined as the direct staffing cost;
755.12 	(7) for employee-related expenses, multiply the direct staffing cost, excluding any shared 
755.13 	and individual direct staff hours provided through monitoring technology, by one plus the 
755.14 	employee-related cost ratio in subdivision 5, paragraph (b), clause (3);
755.15 	(8) for client programming and supports, the commissioner shall add $2,179; and
755.16 	(9) for transportation, if provided, the commissioner shall add $1,680, or $3,000 if 
755.17 	customized for adapted transport, based on the resident with the highest assessed need.
755.18 	(b) The total rate must be calculated using the following steps:
755.19 	(1) subtotal paragraph (a), clauses (7) to (9), and the direct staffing cost of any shared 
755.20 	and individual direct staff hours provided through monitoring technology that was excluded 
755.21 	in clause (7);
755.22 	(2) sum the standard general and administrative rate, the program-related expense ratio, 
755.23 	and the absence and utilization ratio; and
755.24 	(3) divide the result of clause (1) by one minus the result of clause (2). This is the total 
755.25 	payment amount; and.
755.26 	(4) adjust the result of clause (3) by a factor to be determined by the commissioner to 
755.27 	adjust for regional differences in the cost of providing services.
755.28 	(c) The payment methodology for customized living, 24-hour customized living, and 
755.29 	residential care services must be the customized living tool. Revisions to the customized 
755.30 	living tool must be made to reflect the services and activities unique to disability-related 
755.31 	recipient needs.
756.1 	(d) For individuals enrolled prior to January 1, 2014, the days of service authorized must 
756.2 	meet or exceed the days of service used to convert service agreements in effect on December 
756.3 	1, 2013, and must not result in a reduction in spending or service utilization due to conversion 
756.4 	during the implementation period under section 256B.4913, subdivision 4a. If during the 
756.5 	implementation period, an individual's historical rate, including adjustments required under 
756.6 	section 256B.4913, subdivision 4a, paragraph (c), is equal to or greater than the rate 
756.7 	determined in this subdivision, the number of days authorized for the individual is 365.
756.8 	(e) The number of days authorized for all individuals enrolling after January 1, 2014, 
756.9 	in residential services must include every day that services start and end.

756.10 	EFFECTIVE DATE. This section is effective July 1, 2022.

756.11 	Sec. 29. Minnesota Statutes 2017 Supplement, section 256B.4914, subdivision 7, is 
756.12 	amended to read:
756.13 		Subd. 7.Payments for day programs. Payments for services with day programs 
756.14 	including adult day care, day treatment and habilitation, prevocational services, and structured 
756.15 	day services must be calculated as follows:
756.16 	(1) determine the number of units of service and staffing ratio to meet a recipient's needs:
756.17 	(i) the staffing ratios for the units of service provided to a recipient in a typical week 
756.18 	must be averaged to determine an individual's staffing ratio; and
756.19 	(ii) the commissioner, in consultation with service providers, shall develop a uniform 
756.20 	staffing ratio worksheet to be used to determine staffing ratios under this subdivision;
756.21 	(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 
756.22 	Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 
756.23 	5;
756.24 	(3) for a recipient requiring customization for deaf and hard-of-hearing language 
756.25 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
756.26 	to the result of clause (2). This is defined as the customized direct-care rate;
756.27 	(4) multiply the number of day program direct staff hours and nursing hours by the 
756.28 	appropriate staff wage in subdivision 5, paragraph (a), or the customized direct-care rate;
756.29 	(5) multiply the number of day direct staff hours by the product of the supervision span 
756.30 	of control ratio in subdivision 5, paragraph (d), clause (1), and the appropriate supervision 
756.31 	wage in subdivision 5, paragraph (a), clause (21);
757.1 	(6) combine the results of clauses (4) and (5), and multiply the result by one plus the 
757.2 	employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (d), clause 
757.3 	(2). This is defined as the direct staffing rate;
757.4 	(7) for program plan support, multiply the result of clause (6) by one plus the program 
757.5 	plan support ratio in subdivision 5, paragraph (d), clause (4);
757.6 	(8) for employee-related expenses, multiply the result of clause (7) by one plus the 
757.7 	employee-related cost ratio in subdivision 5, paragraph (d), clause (3);
757.8 	(9) for client programming and supports, multiply the result of clause (8) by one plus 
757.9 	the client programming and support ratio in subdivision 5, paragraph (d), clause (5);
757.10 	(10) for program facility costs, add $19.30 per week with consideration of staffing ratios 
757.11 	to meet individual needs;
757.12 	(11) for adult day bath services, add $7.01 per 15 minute unit;
757.13 	(12) this is the subtotal rate;
757.14 	(13) sum the standard general and administrative rate, the program-related expense ratio, 
757.15 	and the absence and utilization factor ratio;
757.16 	(14) divide the result of clause (12) by one minus the result of clause (13). This is the 
757.17 	total payment amount;
757.18 	(15) adjust the result of clause (14) by a factor to be determined by the commissioner 
757.19 	to adjust for regional differences in the cost of providing services;
757.20 	(16)(15) for transportation provided as part of day training and habilitation for an 
757.21 	individual who does not require a lift, add:
757.22 	(i) $10.50 for a trip between zero and ten miles for a nonshared ride in a vehicle without 
757.23 	a lift, $8.83 for a shared ride in a vehicle without a lift, and $9.25 for a shared ride in a 
757.24 	vehicle with a lift;
757.25 	(ii) $15.75 for a trip between 11 and 20 miles for a nonshared ride in a vehicle without 
757.26 	a lift, $10.58 for a shared ride in a vehicle without a lift, and $11.88 for a shared ride in a 
757.27 	vehicle with a lift;
757.28 	(iii) $25.75 for a trip between 21 and 50 miles for a nonshared ride in a vehicle without 
757.29 	a lift, $13.92 for a shared ride in a vehicle without a lift, and $16.88 for a shared ride in a 
757.30 	vehicle with a lift; or
758.1 	(iv) $33.50 for a trip of 51 miles or more for a nonshared ride in a vehicle without a lift, 
758.2 	$16.50 for a shared ride in a vehicle without a lift, and $20.75 for a shared ride in a vehicle 
758.3 	with a lift; and
758.4 	(17) (16) for transportation provided as part of day training and habilitation for an 
758.5 	individual who does require a lift, add:
758.6 	(i) $19.05 for a trip between zero and ten miles for a nonshared ride in a vehicle with a 
758.7 	lift, and $15.05 for a shared ride in a vehicle with a lift;
758.8 	(ii) $32.16 for a trip between 11 and 20 miles for a nonshared ride in a vehicle with a 
758.9 	lift, and $28.16 for a shared ride in a vehicle with a lift;
758.10 	(iii) $58.76 for a trip between 21 and 50 miles for a nonshared ride in a vehicle with a 
758.11 	lift, and $58.76 for a shared ride in a vehicle with a lift; or
758.12 	(iv) $80.93 for a trip of 51 miles or more for a nonshared ride in a vehicle with a lift, 
758.13 	and $80.93 for a shared ride in a vehicle with a lift.

758.14 	EFFECTIVE DATE. This section is effective July 1, 2022.

758.15 	Sec. 30. Minnesota Statutes 2017 Supplement, section 256B.4914, subdivision 8, is 
758.16 	amended to read:
758.17 		Subd. 8.Payments for unit-based services with programming. Payments for unit-based 
758.18 	services with programming, including behavior programming, housing access coordination, 
758.19 	in-home family support, independent living skills training, independent living skills specialist 
758.20 	services, individualized home supports, hourly supported living services, employment 
758.21 	exploration services, employment development services, supported employment, and 
758.22 	employment support services provided to an individual outside of any day or residential 
758.23 	service plan must be calculated as follows, unless the services are authorized separately 
758.24 	under subdivision 6 or 7:
758.25 	(1) determine the number of units of service to meet a recipient's needs;
758.26 	(2) personnel hourly wage rate must be based on the 2009 Bureau of Labor Statistics 
758.27 	Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 
758.28 	5;
758.29 	(3) for a recipient requiring customization for deaf and hard-of-hearing language 
758.30 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
758.31 	to the result of clause (2). This is defined as the customized direct-care rate;
759.1 	(4) multiply the number of direct staff hours by the appropriate staff wage in subdivision 
759.2 	5, paragraph (a), or the customized direct-care rate;
759.3 	(5) multiply the number of direct staff hours by the product of the supervision span of 
759.4 	control ratio in subdivision 5, paragraph (e), clause (1), and the appropriate supervision 
759.5 	wage in subdivision 5, paragraph (a), clause (21);
759.6 	(6) combine the results of clauses (4) and (5), and multiply the result by one plus the 
759.7 	employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (e), clause 
759.8 	(2). This is defined as the direct staffing rate;
759.9 	(7) for program plan support, multiply the result of clause (6) by one plus the program 
759.10 	plan supports ratio in subdivision 5, paragraph (e), clause (4);
759.11 	(8) for employee-related expenses, multiply the result of clause (7) by one plus the 
759.12 	employee-related cost ratio in subdivision 5, paragraph (e), clause (3);
759.13 	(9) for client programming and supports, multiply the result of clause (8) by one plus 
759.14 	the client programming and supports ratio in subdivision 5, paragraph (e), clause (5);
759.15 	(10) this is the subtotal rate;
759.16 	(11) sum the standard general and administrative rate, the program-related expense ratio, 
759.17 	and the absence and utilization factor ratio;
759.18 	(12) divide the result of clause (10) by one minus the result of clause (11). This is the 
759.19 	total payment amount; and
759.20 	(13) for supported employment provided in a shared manner, divide the total payment 
759.21 	amount in clause (12) by the number of service recipients, not to exceed three. For 
759.22 	employment support services provided in a shared manner, divide the total payment amount 
759.23 	in clause (12) by the number of service recipients, not to exceed six. For independent living 
759.24 	skills training and individualized home supports provided in a shared manner, divide the 
759.25 	total payment amount in clause (12) by the number of service recipients, not to exceed two; 
759.26 	and.
759.27 	(14) adjust the result of clause (13) by a factor to be determined by the commissioner 
759.28 	to adjust for regional differences in the cost of providing services.

759.29 	EFFECTIVE DATE. This section is effective July 1, 2022.

760.1 	Sec. 31. Minnesota Statutes 2017 Supplement, section 256B.4914, subdivision 9, is 
760.2 	amended to read:
760.3 		Subd. 9.Payments for unit-based services without programming. Payments for 
760.4 	unit-based services without programming, including night supervision, personal support, 
760.5 	respite, and companion care provided to an individual outside of any day or residential 
760.6 	service plan must be calculated as follows unless the services are authorized separately 
760.7 	under subdivision 6 or 7:
760.8 	(1) for all services except respite, determine the number of units of service to meet a 
760.9 	recipient's needs;
760.10 	(2) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 
760.11 	Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;
760.12 	(3) for a recipient requiring customization for deaf and hard-of-hearing language 
760.13 	accessibility under subdivision 12, add the customization rate provided in subdivision 12 
760.14 	to the result of clause (2). This is defined as the customized direct care rate;
760.15 	(4) multiply the number of direct staff hours by the appropriate staff wage in subdivision 
760.16 	5 or the customized direct care rate;
760.17 	(5) multiply the number of direct staff hours by the product of the supervision span of 
760.18 	control ratio in subdivision 5, paragraph (f), clause (1), and the appropriate supervision 
760.19 	wage in subdivision 5, paragraph (a), clause (21);
760.20 	(6) combine the results of clauses (4) and (5), and multiply the result by one plus the 
760.21 	employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (f), clause 
760.22 	(2). This is defined as the direct staffing rate;
760.23 	(7) for program plan support, multiply the result of clause (6) by one plus the program 
760.24 	plan support ratio in subdivision 5, paragraph (f), clause (4);
760.25 	(8) for employee-related expenses, multiply the result of clause (7) by one plus the 
760.26 	employee-related cost ratio in subdivision 5, paragraph (f), clause (3);
760.27 	(9) for client programming and supports, multiply the result of clause (8) by one plus 
760.28 	the client programming and support ratio in subdivision 5, paragraph (f), clause (5);
760.29 	(10) this is the subtotal rate;
760.30 	(11) sum the standard general and administrative rate, the program-related expense ratio, 
760.31 	and the absence and utilization factor ratio;
761.1 	(12) divide the result of clause (10) by one minus the result of clause (11). This is the 
761.2 	total payment amount;
761.3 	(13) for respite services, determine the number of day units of service to meet an 
761.4 	individual's needs;
761.5 	(14) personnel hourly wage rates must be based on the 2009 Bureau of Labor Statistics 
761.6 	Minnesota-specific rate or rates derived by the commissioner as provided in subdivision 5;
761.7 	(15) for a recipient requiring deaf and hard-of-hearing customization under subdivision 
761.8 	12, add the customization rate provided in subdivision 12 to the result of clause (14). This 
761.9 	is defined as the customized direct care rate;
761.10 	(16) multiply the number of direct staff hours by the appropriate staff wage in subdivision 
761.11 	5, paragraph (a);
761.12 	(17) multiply the number of direct staff hours by the product of the supervisory span of 
761.13 	control ratio in subdivision 5, paragraph (g), clause (1), and the appropriate supervision 
761.14 	wage in subdivision 5, paragraph (a), clause (21);
761.15 	(18) combine the results of clauses (16) and (17), and multiply the result by one plus 
761.16 	the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (g), 
761.17 	clause (2). This is defined as the direct staffing rate;
761.18 	(19) for employee-related expenses, multiply the result of clause (18) by one plus the 
761.19 	employee-related cost ratio in subdivision 5, paragraph (g), clause (3);
761.20 	(20) this is the subtotal rate;
761.21 	(21) sum the standard general and administrative rate, the program-related expense ratio, 
761.22 	and the absence and utilization factor ratio; and
761.23 	(22) divide the result of clause (20) by one minus the result of clause (21). This is the 
761.24 	total payment amount; and.
761.25 	(23) adjust the result of clauses (12) and (22) by a factor to be determined by the 
761.26 	commissioner to adjust for regional differences in the cost of providing services.

761.27 	EFFECTIVE DATE. This section is effective July 1, 2022.

762.1 	Sec. 32. Minnesota Statutes 2017 Supplement, section 256B.4914, subdivision 10, is 
762.2 	amended to read:
762.3 		Subd. 10.Updating payment values and additional information. (a) From January 
762.4 	1, 2014, through December 31, 2017, the commissioner shall develop and implement uniform 
762.5 	procedures to refine terms and adjust values used to calculate payment rates in this section.
762.6 	(b) No later than July 1, 2014, the commissioner shall, within available resources, begin 
762.7 	to conduct research and gather data and information from existing state systems or other 
762.8 	outside sources on the following items:
762.9 	(1) differences in the underlying cost to provide services and care across the state; and
762.10 	(2) mileage, vehicle type, lift requirements, incidents of individual and shared rides, and 
762.11 	units of transportation for all day services, which must be collected from providers using 
762.12 	the rate management worksheet and entered into the rates management system; and
762.13 	(3) the distinct underlying costs for services provided by a license holder under sections 
762.14 	245D.05, 245D.06, 245D.07, 245D.071, 245D.081, and 245D.09, and for services provided 
762.15 	by a license holder certified under section 245D.33.
762.16 	(c) Beginning January 1, 2014, through December 31, 2018, using a statistically valid 
762.17 	set of rates management system data, the commissioner, in consultation with stakeholders, 
762.18 	shall analyze for each service the average difference in the rate on December 31, 2013, and 
762.19 	the framework rate at the individual, provider, lead agency, and state levels. The 
762.20 	commissioner shall issue semiannual reports to the stakeholders on the difference in rates 
762.21 	by service and by county during the banding period under section 256B.4913, subdivision 
762.22 	4a. The commissioner shall issue the first report by October 1, 2014, and the final report 
762.23 	shall be issued by December 31, 2018.
762.24 	(d) No later than July 1, 2014, the commissioner, in consultation with stakeholders, shall 
762.25 	begin the review and evaluation of the following values already in subdivisions 6 to 9, or 
762.26 	issues that impact all services, including, but not limited to:
762.27 	(1) values for transportation rates;
762.28 	(2) values for services where monitoring technology replaces staff time;
762.29 	(3) values for indirect services;
762.30 	(4) values for nursing;
762.31 	(5) values for the facility use rate in day services, and the weightings used in the day 
762.32 	service ratios and adjustments to those weightings;
763.1 	(6) values for workers' compensation as part of employee-related expenses;
763.2 	(7) values for unemployment insurance as part of employee-related expenses;
763.3 	(8) any changes in state or federal law with a direct impact on the underlying cost of 
763.4 	providing home and community-based services; and
763.5 	(9) direct care staff labor market measures; and
763.6 	(10) outcome measures, determined by the commissioner, for home and community-based 
763.7 	services rates determined under this section.
763.8 	(e) The commissioner shall report to the chairs and the ranking minority members of 
763.9 	the legislative committees and divisions with jurisdiction over health and human services 
763.10 	policy and finance with the information and data gathered under paragraphs (b) to (d) on 
763.11 	the following dates:
763.12 	(1) January 15, 2015, with preliminary results and data;
763.13 	(2) January 15, 2016, with a status implementation update, and additional data and 
763.14 	summary information;
763.15 	(3) January 15, 2017, with the full report; and
763.16 	(4) January 15, 2020, with another full report, and a full report once every four years 
763.17 	thereafter.
763.18 	(f) The commissioner shall implement a regional adjustment factor to all rate calculations 
763.19 	in subdivisions 6 to 9, effective no later than January 1, 2015. Beginning July 1, 2017, the 
763.20 	commissioner shall renew analysis and implement changes to the regional adjustment factors 
763.21 	when adjustments required under subdivision 5, paragraph (h), occur. Prior to 
763.22 	implementation, the commissioner shall consult with stakeholders on the methodology to 
763.23 	calculate the adjustment.
763.24 	(g) The commissioner shall provide a public notice via LISTSERV in October of each 
763.25 	year beginning October 1, 2014, containing information detailing legislatively approved 
763.26 	changes in:
763.27 	(1) calculation values including derived wage rates and related employee and 
763.28 	administrative factors;
763.29 	(2) service utilization;
763.30 	(3) county and tribal allocation changes; and
764.1 	(4) information on adjustments made to calculation values and the timing of those 
764.2 	adjustments.
764.3 	The information in this notice must be effective January 1 of the following year.
764.4 	(h) When the available shared staffing hours in a residential setting are insufficient to 
764.5 	meet the needs of an individual who enrolled in residential services after January 1, 2014, 
764.6 	or insufficient to meet the needs of an individual with a service agreement adjustment 
764.7 	described in section 256B.4913, subdivision 4a, paragraph (f), then individual staffing hours 
764.8 	shall be used.
764.9 	(i) The commissioner shall study the underlying cost of absence and utilization for day 
764.10 	services. Based on the commissioner's evaluation of the data collected under this paragraph, 
764.11 	the commissioner shall make recommendations to the legislature by January 15, 2018, for 
764.12 	changes, if any, to the absence and utilization factor ratio component value for day services.
764.13 	(j) Beginning July 1, 2017, the commissioner shall collect transportation and trip 
764.14 	information for all day services through the rates management system.

764.15 	Sec. 33. Minnesota Statutes 2017 Supplement, section 256B.4914, subdivision 10a, is 
764.16 	amended to read:
764.17 		Subd. 10a.Reporting and analysis of cost data. (a) The commissioner must ensure 
764.18 	that wage values and component values in subdivisions 5 to 9 reflect the cost to provide the 
764.19 	service. As determined by the commissioner, in consultation with stakeholders identified 
764.20 	in section 256B.4913, subdivision 5, a provider enrolled to provide services with rates 
764.21 	determined under this section must submit requested cost data to the commissioner to support 
764.22 	research on the cost of providing services that have rates determined by the disability waiver 
764.23 	rates system. Requested cost data may include, but is not limited to:
764.24 	(1) worker wage costs;
764.25 	(2) benefits paid;
764.26 	(3) supervisor wage costs;
764.27 	(4) executive wage costs;
764.28 	(5) vacation, sick, and training time paid;
764.29 	(6) taxes, workers' compensation, and unemployment insurance costs paid;
764.30 	(7) administrative costs paid;
764.31 	(8) program costs paid;
765.1 	(9) transportation costs paid;
765.2 	(10) vacancy rates; and
765.3 	(11) other data relating to costs required to provide services requested by the 
765.4 	commissioner.
765.5 	(b) At least once in any five-year period, a provider must submit cost data for a fiscal 
765.6 	year that ended not more than 18 months prior to the submission date. The commissioner 
765.7 	shall provide each provider a 90-day notice prior to its submission due date. If a provider 
765.8 	fails to submit required reporting data, the commissioner shall provide notice to providers 
765.9 	that have not provided required data 30 days after the required submission date, and a second 
765.10 	notice for providers who have not provided required data 60 days after the required 
765.11 	submission date. The commissioner shall temporarily suspend payments to the provider if 
765.12 	cost data is not received 90 days after the required submission date. Withheld payments 
765.13 	shall be made once data is received by the commissioner.
765.14 	(c) The commissioner shall conduct a random validation of data submitted under 
765.15 	paragraph (a) to ensure data accuracy. The commissioner shall analyze cost documentation 
765.16 	in paragraph (a) and provide recommendations for adjustments to cost components.
765.17 	(d) The commissioner shall analyze cost documentation in paragraph (a) and, in 
765.18 	consultation with stakeholders identified in section 256B.4913, subdivision 5, may submit 
765.19 	recommendations on component values and inflationary factor adjustments to the chairs 
765.20 	and ranking minority members of the legislative committees with jurisdiction over human 
765.21 	services every four years beginning January 1, 2020. The commissioner shall make 
765.22 	recommendations in conjunction with reports submitted to the legislature according to 
765.23 	subdivision 10, paragraph (e). The commissioner shall release cost data in an aggregate 
765.24 	form, and cost data from individual providers shall not be released except as provided for 
765.25 	in current law.
765.26 	(e) The commissioner, in consultation with stakeholders identified in section 256B.4913, 
765.27 	subdivision 5, shall develop and implement a process for providing training and technical 
765.28 	assistance necessary to support provider submission of cost documentation required under 
765.29 	paragraph (a).
765.30 	(f) Beginning November 1, 2018, providers enrolled to provide services with rates 
765.31 	determined under this section shall submit labor market data to the commissioner annually, 
765.32 	including, but not limited to:
765.33 	(1) number of direct care staff;
766.1 	(2) wages of direct care staff;
766.2 	(3) overtime wages of direct care staff;
766.3 	(4) hours worked by direct care staff;
766.4 	(5) overtime hours worked by direct care staff;
766.5 	(6) benefits provided to direct care staff;
766.6 	(7) direct care staff job vacancies; and
766.7 	(8) direct care staff retention rates.
766.8 	(g) Beginning February 1, 2019, the commissioner shall publish annual reports on 
766.9 	provider and state-level labor market data, including, but not limited to:
766.10 	(1) number of direct care staff;
766.11 	(2) wages of direct care staff;
766.12 	(3) overtime wages of direct care staff;
766.13 	(4) hours worked by direct care staff;
766.14 	(5) overtime hours worked by direct care staff;
766.15 	(6) benefits provided to direct care staff;
766.16 	(7) direct care staff job vacancies; and
766.17 	(8) direct care staff retention rates.

766.18 	Sec. 34. Minnesota Statutes 2016, section 256B.5012, is amended by adding a subdivision 
766.19 	to read:
766.20 		Subd. 18.ICF/DD rate increase effective July 1, 2018; Steele County. Effective July 
766.21 	1, 2018, the daily rate for an intermediate care facility for persons with developmental 
766.22 	disabilities located in Steele County that is classified as a class B facility and licensed for 
766.23 	16 beds is $400. The increase under this subdivision is in addition to any other increase that 
766.24 	is effective on July 1, 2018.

766.25 	Sec. 35. Minnesota Statutes 2017 Supplement, section 256I.03, subdivision 8, is amended 
766.26 	to read:
766.27 		Subd. 8.Supplementary services. "Supplementary services" means housing support 
766.28 	services provided to individuals in addition to room and board including, but not limited 
766.29 	to, oversight and up to 24-hour supervision, medication reminders, assistance with 
767.1 	transportation, arranging for meetings and appointments, and arranging for medical and 
767.2 	social services. Providers must comply with section 256I.04, subdivision 2h.

767.3 	Sec. 36. Minnesota Statutes 2017 Supplement, section 256I.04, subdivision 2b, is amended 
767.4 	to read:
767.5 		Subd. 2b.Housing support agreements. (a) Agreements between agencies and providers 
767.6 	of housing support must be in writing on a form developed and approved by the commissioner 
767.7 	and must specify the name and address under which the establishment subject to the 
767.8 	agreement does business and under which the establishment, or service provider, if different 
767.9 	from the group residential housing establishment, is licensed by the Department of Health 
767.10 	or the Department of Human Services; the specific license or registration from the 
767.11 	Department of Health or the Department of Human Services held by the provider and the 
767.12 	number of beds subject to that license; the address of the location or locations at which 
767.13 	group residential housing is provided under this agreement; the per diem and monthly rates 
767.14 	that are to be paid from housing support funds for each eligible resident at each location; 
767.15 	the number of beds at each location which are subject to the agreement; whether the license 
767.16 	holder is a not-for-profit corporation under section 501(c)(3) of the Internal Revenue Code; 
767.17 	and a statement that the agreement is subject to the provisions of sections 256I.01 to 256I.06
767.18 	and subject to any changes to those sections.
767.19 	(b) Providers are required to verify the following minimum requirements in the 
767.20 	agreement:
767.21 	(1) current license or registration, including authorization if managing or monitoring 
767.22 	medications;
767.23 	(2) all staff who have direct contact with recipients meet the staff qualifications;
767.24 	(3) the provision of housing support;
767.25 	(4) the provision of supplementary services, if applicable;
767.26 	(5) reports of adverse events, including recipient death or serious injury; and
767.27 	(6) submission of residency requirements that could result in recipient eviction.; and
767.28 	(7) confirmation that the provider will not limit or restrict the number of hours an 
767.29 	applicant or recipient chooses to be employed, as specified in subdivision 5.
767.30 	(c) Agreements may be terminated with or without cause by the commissioner, the 
767.31 	agency, or the provider with two calendar months prior notice. The commissioner may 
767.32 	immediately terminate an agreement under subdivision 2d.

768.1 	Sec. 37. Minnesota Statutes 2016, section 256I.04, is amended by adding a subdivision 
768.2 	to read:
768.3 		Subd. 2h.Required supplementary services. Providers of supplementary services shall 
768.4 	ensure that recipients have, at a minimum, assistance with services as identified in the 
768.5 	recipient's professional statement of need under section 256I.03, subdivision 12. Providers 
768.6 	of supplementary services shall maintain case notes with the date and description of services 
768.7 	provided to individual recipients.

768.8 	Sec. 38. Minnesota Statutes 2016, section 256I.04, is amended by adding a subdivision 
768.9 	to read:
768.10 		Subd. 5.Employment. A provider is prohibited from limiting or restricting the number 
768.11 	of hours an applicant or recipient is employed.

768.12 	Sec. 39. Minnesota Statutes 2017 Supplement, section 256I.05, subdivision 3, is amended 
768.13 	to read:
768.14 		Subd. 3.Limits on rates. When a room and board rate is used to pay for an individual's 
768.15 	room and board, The room and board rate payable to the residence must may not exceed 
768.16 	the rate paid by an individual who is eligible for housing support under section 256I.04, 
768.17 	subdivision 1, but who is not receiving a room and board rate under this chapter.

768.18 	Sec. 40. Minnesota Statutes 2016, section 256R.53, subdivision 2, is amended to read:
768.19 		Subd. 2.Nursing facility facilities in Breckenridge border cities. The operating 
768.20 	payment rate of a nonprofit nursing facility that exists on January 1, 2015, is located within 
768.21 	the boundaries of the city cities of Breckenridge or Moorhead, and is reimbursed under this 
768.22 	chapter, is equal to the greater of:
768.23 	(1) the operating payment rate determined under section 256R.21, subdivision 3; or
768.24 	(2) the median case mix adjusted rates, including comparable rate components as 
768.25 	determined by the median case mix adjusted rates, including comparable rate components 
768.26 	as determined by the commissioner, for the equivalent case mix indices of the nonprofit 
768.27 	nursing facility or facilities located in an adjacent city in another state and in cities contiguous 
768.28 	to the adjacent city. The commissioner shall make the comparison required in this subdivision 
768.29 	on November 1 of each year and shall apply it to the rates to be effective on the following 
768.30 	January 1. The Minnesota facility's operating payment rate with a case mix index of 1.0 is 
768.31 	computed by dividing the adjacent city's nursing facility or facilities' median operating 
768.32 	payment rate with an index of 1.02 by 1.02. If the adjustments under this subdivision result 
769.1 	in a rate that exceeds the limits in section 256R.23, subdivision 5, and whose costs exceed 
769.2 	the rate in section 256R.24, subdivision 3, in a given rate year, the facility's rate shall not 
769.3 	be subject to the limits in section 256R.23, subdivision 5, and shall not be limited to the 
769.4 	rate established in section 256R.24, subdivision 3, for that rate year.

769.5 	EFFECTIVE DATE. The rate increases for a facility located in Moorhead are effective 
769.6 	for the rate year beginning January 1, 2020, and annually thereafter.

769.7 	Sec. 41. Laws 2014, chapter 312, article 27, section 76, is amended to read:
769.8 	Sec. 76. DISABILITY WAIVER REIMBURSEMENT RATE ADJUSTMENTS.
 769.9 		Subdivision 1.Historical rate. The commissioner of human services shall adjust the 
769.10 	historical rates calculated in Minnesota Statutes, section 256B.4913, subdivision 4a, 
769.11 	paragraph (b), in effect during the banding period under Minnesota Statutes, section 
769.12 	256B.4913, subdivision 4a, paragraph (a), for the reimbursement rate increases effective 
769.13 	April 1, 2014, and any rate modification enacted during the 2014 legislative session.
769.14 		Subd. 2.Residential support services. The commissioner of human services shall adjust 
769.15 	the rates calculated in Minnesota Statutes, section 256B.4914, subdivision 6, paragraphs 
769.16 	(b), clause (4), and (c), for the reimbursement rate increases effective April 1, 2014, and 
769.17 	any rate modification enacted during the 2014 legislative session.
769.18 		Subd. 3.Day programs. The commissioner of human services shall adjust the rates 
769.19 	calculated in Minnesota Statutes, section 256B.4914, subdivision 7, paragraph (a), clauses 
769.20 	(15) to (17), for the reimbursement rate increases effective April 1, 2014, and any rate 
769.21 	modification enacted during the 2014 legislative session.
769.22 		Subd. 4.Unit-based services with programming. The commissioner of human services 
769.23 	shall adjust the rate calculated in Minnesota Statutes, section 256B.4914, subdivision 8, 
769.24 	paragraph (a), clause (14), for the reimbursement rate increases effective April 1, 2014, and 
769.25 	any rate modification enacted during the 2014 legislative session.
769.26 		Subd. 5.Unit-based services without programming. The commissioner of human 
769.27 	services shall adjust the rate calculated in Minnesota Statutes, section 256B.4914, subdivision 
769.28 	9, paragraph (a), clause (23), for the reimbursement rate increases effective April 1, 2014, 
769.29 	and any rate modification enacted during the 2014 legislative session.

769.30 	EFFECTIVE DATE. This section is effective January 1, 2019.

770.1 	Sec. 42. Laws 2017, First Special Session chapter 6, article 3, section 49, is amended to 
770.2 	read:
770.3 	Sec. 49. ELECTRONIC SERVICE DELIVERY DOCUMENTATION SYSTEM
770.4 	VISIT VERIFICATION.
 770.5 		Subdivision 1.Documentation; establishment. The commissioner of human services 
770.6 	shall establish implementation requirements and standards for an electronic service delivery 
770.7 	documentation system visit verification to comply with the 21st Century Cures Act, Public 
770.8 	Law 114-255. Within available appropriations, the commissioner shall take steps to comply 
770.9 	with the electronic visit verification requirements in the 21st Century Cures Act, Public 
770.10 	Law 114-255.
770.11 		Subd. 2.Definitions. (a) For purposes of this section, the terms in this subdivision have 
770.12 	the meanings given them.
770.13 	(b) "Electronic service delivery documentation visit verification" means the electronic 
770.14 	documentation of the:
770.15 	(1) type of service performed;
770.16 	(2) individual receiving the service;
770.17 	(3) date of the service;
770.18 	(4) location of the service delivery;
770.19 	(5) individual providing the service; and
770.20 	(6) time the service begins and ends.
770.21 	(c) "Electronic service delivery documentation visit verification system" means a system 
770.22 	that provides electronic service delivery documentation verification of services that complies 
770.23 	with the 21st Century Cures Act, Public Law 114-255, and the requirements of subdivision 
770.24 	3.
770.25 	(d) "Service" means one of the following:
770.26 	(1) personal care assistance services as defined in Minnesota Statutes, section 256B.0625, 
770.27 	subdivision 19a, and provided according to Minnesota Statutes, section 256B.0659; or
770.28 	(2) community first services and supports under Minnesota Statutes, section 256B.85;
770.29 	(3) home health services under Minnesota Statutes, section 256B.0625, subdivision 6a; 
770.30 	or
771.1 	(4) other medical supplies and equipment or home and community-based services that 
771.2 	are required to be electronically verified by the 21st Century Cures Act, Public Law 114-255.
771.3 		Subd. 3.System requirements. (a) In developing implementation requirements for an
771.4 	electronic service delivery documentation system visit verification, the commissioner shall 
771.5 	consider electronic visit verification systems and other electronic service delivery 
771.6 	documentation methods. The commissioner shall convene stakeholders that will be impacted 
771.7 	by an electronic service delivery system, including service providers and their representatives, 
771.8 	service recipients and their representatives, and, as appropriate, those with expertise in the 
771.9 	development and operation of an electronic service delivery documentation system, to ensure 
771.10 	that the requirements:
771.11 	(1) are minimally administratively and financially burdensome to a provider;
771.12 	(2) are minimally burdensome to the service recipient and the least disruptive to the 
771.13 	service recipient in receiving and maintaining allowed services;
771.14 	(3) consider existing best practices and use of electronic service delivery documentation
771.15 	visit verification;
771.16 	(4) are conducted according to all state and federal laws;
771.17 	(5) are effective methods for preventing fraud when balanced against the requirements 
771.18 	of clauses (1) and (2); and
771.19 	(6) are consistent with the Department of Human Services' policies related to covered 
771.20 	services, flexibility of service use, and quality assurance.
771.21 	(b) The commissioner shall make training available to providers on the electronic service 
771.22 	delivery documentation visit verification system requirements.
771.23 	(c) The commissioner shall establish baseline measurements related to preventing fraud 
771.24 	and establish measures to determine the effect of electronic service delivery documentation
771.25 	visit verification requirements on program integrity.
771.26 	(d) The commissioner shall make a state-selected electronic visit verification system 
771.27 	available to providers of services.
771.28 		Subd. 3a.Provider requirements. (a) Providers of services may select their own 
771.29 	electronic visit verification system that meets the requirements established by the 
771.30 	commissioner.
772.1 	(b) All electronic visit verification systems used by providers to comply with the 
772.2 	requirements established by the commissioner must provide data to the commissioner in a 
772.3 	format and at a frequency to be established by the commissioner.
772.4 	(c) Providers must implement the electronic visit verification systems required under 
772.5 	this section by January 1, 2019, for personal care services and by January 1, 2023, for home 
772.6 	health services in accordance with the 21st Century Cures Act, Public Law 114-255, and 
772.7 	the Centers for Medicare and Medicaid Services guidelines. For the purposes of this 
772.8 	paragraph, "personal care services" and "home health services" have the meanings given 
772.9 	in United States Code, title 42, section 1396b(l)(5).
772.10 		Subd. 4.Legislative report. (a) The commissioner shall submit a report by January 15, 
772.11 	2018, to the chairs and ranking minority members of the legislative committees with 
772.12 	jurisdiction over human services with recommendations, based on the requirements of 
772.13 	subdivision 3, to establish electronic service delivery documentation system requirements 
772.14 	and standards. The report shall identify:
772.15 	(1) the essential elements necessary to operationalize a base-level electronic service 
772.16 	delivery documentation system to be implemented by January 1, 2019; and
772.17 	(2) enhancements to the base-level electronic service delivery documentation system to 
772.18 	be implemented by January 1, 2019, or after, with projected operational costs and the costs 
772.19 	and benefits for system enhancements.
772.20 	(b) The report must also identify current regulations on service providers that are either 
772.21 	inefficient, minimally effective, or will be unnecessary with the implementation of an 
772.22 	electronic service delivery documentation system.

772.23 	Sec. 43. DIRECTION TO COMMISSIONER; BI AND CADI WAIVER 
772.24 	CUSTOMIZED LIVING SERVICES PROVIDER LOCATED IN HENNEPIN 
772.25 	COUNTY.
 772.26 	(a) The commissioner of human services shall allow a housing with services establishment 
772.27 	located in Minneapolis that provides customized living and 24-hour customized living 
772.28 	services for clients enrolled in the brain injury (BI) or community access for disability 
772.29 	inclusion (CADI) waiver and had a capacity to serve 66 clients as of July 1, 2017, to transfer 
772.30 	service capacity of up to 66 clients to no more than three new housing with services 
772.31 	establishments located in Hennepin County.
772.32 	(b) Notwithstanding Minnesota Statutes, section 256B.492, the commissioner shall 
772.33 	determine whether the new housing with services establishments described under paragraph 
773.1 	(a) meet the BI and CADI waiver customized living and 24-hour customized living size 
773.2 	limitation exception for clients receiving those services at the new housing with services 
773.3 	establishments described under paragraph (a).

773.4 	Sec. 44. DIRECTION TO COMMISSIONER.
 773.5 	(a) The commissioner of human services must ensure that the MnCHOICES 2.0 
773.6 	assessment and support planning tool incorporates a qualitative approach with open-ended 
773.7 	questions and a conversational, culturally sensitive approach to interviewing that captures 
773.8 	the assessor's professional judgment based on the person's responses.
773.9 	(b) If the commissioner of human services convenes a working group or consults with 
773.10 	stakeholders for the purposes of modifying the assessment and support planning process or 
773.11 	tool, the commissioner must include members of the disability community, including 
773.12 	representatives of organizations and individuals involved in assessment and support planning.

773.13 	Sec. 45. DIRECTION TO COMMISSIONER; DISABILITY WAIVER RATE 
773.14 	SYSTEM.
 773.15 	(a) Between July 1, 2018, and December 31, 2018, the commissioner of human services 
773.16 	shall continue to reimburse the Centers for Medicare and Medicaid Services for the 
773.17 	disallowed federal share of the rate increases described in Laws 2014, chapter 312, article 
773.18 	27, section 76, subdivisions 2 to 5.
773.19 	(b) No later than July 1, 2018, the commissioner of human services shall submit to the 
773.20 	federal Centers for Medicare and Medicaid Services any home and community-based services 
773.21 	waivers or plan amendments necessary to implement the changes to the disability waiver 
773.22 	rate system under Minnesota Statutes, sections 256B.4913 and 256B.4914. The priorities 
773.23 	for submittal to the federal Centers for Medicare and Medicaid Services are as follows:
773.24 	(1) first priority for submittal are the changes related to the establishment of the new 
773.25 	competitive workforce factor; and
773.26 	(2) second priority for submittal are the changes related to the inflationary adjustments, 
773.27 	removal of the regional variance factor, and changes to the reporting requirements.

773.28 	EFFECTIVE DATE. This section is effective July 1, 2018.

773.29 	Sec. 46. REVISOR'S INSTRUCTION.
 773.30 	(a) The revisor of statutes shall codify Laws 2017, First Special Session chapter 6, article 
773.31 	3, section 49, as amended in this article, in Minnesota Statutes, chapter 256B.
774.1 	(b) The revisor of statutes shall change the term "developmental disability waiver" or 
774.2 	similar terms to "developmental disabilities waiver" or similar terms wherever they appear 
774.3 	in Minnesota Statutes and Minnesota Rules. The revisor shall also make technical and other 
774.4 	necessary changes to sentence structure to preserve the meaning of the text.

774.5 	Sec. 47.  REPEALER.
 774.6 	Minnesota Statutes 2016, section 256B.0705, is repealed.

774.7 	EFFECTIVE DATE. This section is effective January 1, 2019.

774.8 	ARTICLE 43
774.9 	MISCELLANEOUS

774.10 	Section 1. Minnesota Statutes 2016, section 62V.05, subdivision 5, is amended to read:
774.11 		Subd. 5.Health carrier and health plan requirements; participation. (a) Beginning 
774.12 	January 1, 2015, the board may establish certification requirements for health carriers and 
774.13 	health plans to be offered through MNsure that satisfy federal requirements under section 
774.14 	1311(c)(1) of the Affordable Care Act, Public Law 111-148 United States Code, title 42, 
774.15 	section 18031(c)(1).
774.16 	(b) Paragraph (a) does not apply if by June 1, 2013, the legislature enacts regulatory 
774.17 	requirements that:
774.18 	(1) apply uniformly to all health carriers and health plans in the individual market;
774.19 	(2) apply uniformly to all health carriers and health plans in the small group market; and
774.20 	(3) satisfy minimum federal certification requirements under section 1311(c)(1) of the 
774.21 	Affordable Care Act, Public Law 111-148 United States Code, title 42, section 18031(c)(1).
774.22 	(c) In accordance with section 1311(e) of the Affordable Care Act, Public Law 111-148
774.23 	United States Code, title 42, section 18031(e), the board shall establish policies and 
774.24 	procedures for certification and selection of health plans to be offered as qualified health 
774.25 	plans through MNsure. The board shall certify and select a health plan as a qualified health 
774.26 	plan to be offered through MNsure, if:
774.27 	(1) the health plan meets the minimum certification requirements established in paragraph 
774.28 	(a) or the market regulatory requirements in paragraph (b);
774.29 	(2) the board determines that making the health plan available through MNsure is in the 
774.30 	interest of qualified individuals and qualified employers;
775.1 	(3) the health carrier applying to offer the health plan through MNsure also applies to 
775.2 	offer health plans at each actuarial value level and service area that the health carrier currently 
775.3 	offers in the individual and small group markets; and
775.4 	(4) the health carrier does not apply to offer health plans in the individual and small 
775.5 	group markets through MNsure under a separate license of a parent organization or holding 
775.6 	company under section 60D.15, that is different from what the health carrier offers in the 
775.7 	individual and small group markets outside MNsure.
775.8 	(d) In determining the interests of qualified individuals and employers under paragraph 
775.9 	(c), clause (2), the board may not exclude a health plan for any reason specified under section 
775.10 	1311(e)(1)(B) of the Affordable Care Act, Public Law 111-148 United States Code, title 
775.11 	42, section 18031(e)(1)(B). The board may consider:
775.12 	(1) affordability;
775.13 	(2) quality and value of health plans;
775.14 	(3) promotion of prevention and wellness;
775.15 	(4) promotion of initiatives to reduce health disparities;
775.16 	(5) market stability and adverse selection;
775.17 	(6) meaningful choices and access;
775.18 	(7) alignment and coordination with state agency and private sector purchasing strategies 
775.19 	and payment reform efforts; and
775.20 	(8) other criteria that the board determines appropriate.
775.21 	(e) A health plan that meets the minimum certification requirements under paragraph 
775.22 	(c) and United States Code, title 42, section 18031(c)(1), and any regulations and guidance 
775.23 	issued under that section, is deemed to be in the interest of qualified individuals and qualified 
775.24 	employers. The board shall not establish certification requirements for health carriers and 
775.25 	health plans for participation in MNsure that are in addition to the certification requirements 
775.26 	under paragraph (c) and United States Code, title 42, section 18031(c)(1), and any regulations 
775.27 	and guidance issued under that section. The board shall not determine the cost of, cost-sharing 
775.28 	elements of, or benefits provided in health plans sold through MNsure.
775.29 	(e) (f) For qualified health plans offered through MNsure on or after January 1, 2015, 
775.30 	the board shall establish policies and procedures under paragraphs (c) and (d) for selection 
775.31 	of health plans to be offered as qualified health plans through MNsure by February 1 of 
775.32 	each year, beginning February 1, 2014. The board shall consistently and uniformly apply 
776.1 	all policies and procedures and any requirements, standards, or criteria to all health carriers 
776.2 	and health plans. For any policies, procedures, requirements, standards, or criteria that are 
776.3 	defined as rules under section 14.02, subdivision 4, the board may use the process described 
776.4 	in subdivision 9.
776.5 	(f) For 2014, the board shall not have the power to select health carriers and health plans 
776.6 	for participation in MNsure. The board shall permit all health plans that meet the certification 
776.7 	requirements under section 1311(c)(1) of the Affordable Care Act, Public Law 111-148, to 
776.8 	be offered through MNsure.
776.9 	(g) Under this subdivision, the board shall have the power to verify that health carriers 
776.10 	and health plans are properly certified to be eligible for participation in MNsure.
776.11 	(h) The board has the authority to decertify health carriers and health plans that fail to 
776.12 	maintain compliance with section 1311(c)(1) of the Affordable Care Act, Public Law 111-148
776.13 	United States Code, title 42, section 18031(c)(1).
776.14 	(i) For qualified health plans offered through MNsure beginning January 1, 2015, health 
776.15 	carriers must use the most current addendum for Indian health care providers approved by 
776.16 	the Centers for Medicare and Medicaid Services and the tribes as part of their contracts with 
776.17 	Indian health care providers. MNsure shall comply with all future changes in federal law 
776.18 	with regard to health coverage for the tribes.

776.19 	Sec. 2. Minnesota Statutes 2016, section 62V.05, subdivision 10, is amended to read:
776.20 		Subd. 10.Limitations; risk-bearing. (a) The board shall not bear insurance risk or enter 
776.21 	into any agreement with health care providers to pay claims.
776.22 	(b) Nothing in this subdivision shall prevent MNsure from providing insurance for its 
776.23 	employees.
776.24 	(c) The commissioner of human services shall not bear insurance risk or enter into any 
776.25 	agreement with providers to pay claims for any health coverage administered by the 
776.26 	commissioner that is made available for purchase through the MNsure Web site as an 
776.27 	alternative to purchasing a qualifying health plan through MNsure or an individual health 
776.28 	plan offered outside of MNsure.
776.29 	(d) Nothing in this subdivision shall prohibit:
776.30 	(1) the commissioner of human services from administering the medical assistance 
776.31 	program under chapter 256B and the MinnesotaCare program under chapter 256L, as long 
777.1 	as health coverage under these programs is not purchased by the individual through the 
777.2 	MNsure Web site; and
777.3 	(2) employees of the Department of Human Services from obtaining insurance from the 
777.4 	state employee group insurance program.

777.5 	EFFECTIVE DATE. This section is effective July 1, 2018.

777.6 	Sec. 3. Minnesota Statutes 2016, section 243.166, subdivision 4b, is amended to read:
777.7 		Subd. 4b.Health care facility; notice of status. (a) For the purposes of this subdivision,:
777.8 	(1) "health care facility" means a facility:
777.9 	(1)(i) licensed by the commissioner of health as a hospital, boarding care home or 
777.10 	supervised living facility under sections 144.50 to 144.58, or a nursing home under chapter 
777.11 	144A;
777.12 	(2)(ii) registered by the commissioner of health as a housing with services establishment 
777.13 	as defined in section 144D.01; or
777.14 	(3) (iii) licensed by the commissioner of human services as a residential facility under 
777.15 	chapter 245A to provide adult foster care, adult mental health treatment, chemical dependency 
777.16 	treatment to adults, or residential services to persons with disabilities; and
777.17 	(2) "home care provider" has the meaning given in section 144A.43.
777.18 	(b) Prior to admission to a health care facility or home care services from a home care 
777.19 	provider, a person required to register under this section shall disclose to:
777.20 	(1) the health care facility employee or the home care provider processing the admission 
777.21 	the person's status as a registered predatory offender under this section; and
777.22 	(2) the person's corrections agent, or if the person does not have an assigned corrections 
777.23 	agent, the law enforcement authority with whom the person is currently required to register, 
777.24 	that inpatient admission will occur.
777.25 	(c) A law enforcement authority or corrections agent who receives notice under paragraph 
777.26 	(b) or who knows that a person required to register under this section is planning to be 
777.27 	admitted and receive, or has been admitted and is receiving health care at a health care 
777.28 	facility or home care services from a home care provider, shall notify the administrator of 
777.29 	the facility or the home care provider and deliver a fact sheet to the administrator or provider 
777.30 	containing the following information: (1) name and physical description of the offender; 
777.31 	(2) the offender's conviction history, including the dates of conviction; (3) the risk level 
778.1 	classification assigned to the offender under section 244.052, if any; and (4) the profile of 
778.2 	likely victims.
778.3 	(d) Except for a hospital licensed under sections 144.50 to 144.58, if a health care facility 
778.4 	receives a fact sheet under paragraph (c) that includes a risk level classification for the 
778.5 	offender, and if the facility admits the offender, the facility shall distribute the fact sheet to 
778.6 	all residents at the facility. If the facility determines that distribution to a resident is not 
778.7 	appropriate given the resident's medical, emotional, or mental status, the facility shall 
778.8 	distribute the fact sheet to the patient's next of kin or emergency contact.
778.9 	(e) If a home care provider receives a fact sheet under paragraph (c) that includes a risk 
778.10 	level classification for the offender, the provider shall distribute the fact sheet to any 
778.11 	individual who will provide direct services to the offender before the individual begins to 
778.12 	provide the service.

778.13 	ARTICLE 44
778.14 	HUMAN SERVICES FORECAST ADJUSTMENTS

778.15	Section 1. HUMAN SERVICES APPROPRIATION.
 	
778.16 	The dollar amounts shown in the columns marked "Appropriations" are added to or, if 
778.17 	shown in parentheses, are subtracted from the appropriations in Laws 2017, First Special 
778.18 	Session chapter 6, article 18, from the general fund or any fund named to the Department 
778.19 	of Human Services for the purposes specified in this article, to be available for the fiscal 
778.20 	year indicated for each purpose. The figures "2018" and "2019" used in this article mean 
778.21 	that the appropriations listed under them are available for the fiscal years ending June 30, 
778.22 	2018, or June 30, 2019, respectively. "The first year" is fiscal year 2018. "The second year" 
778.23 	is fiscal year 2019. "The biennium" is fiscal years 2018 and 2019.

778.24				APPROPRIATIONS
	
778.25				Available for the Year
	
778.26				Ending June 30
	
778.27					2018
		2019

778.28
778.29	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

778.30	Subdivision 1.Total Appropriation
 	$
	(208,963,000)
	$
	(88,363,000)

778.31	Appropriations by Fund
	
778.32	General Fund
	(210,083,000)
	(103,535,000)
	
779.1
779.2	Health Care Access 
Fund
	7,620,000
	9,258,000
	
779.3	Federal TANF
	(6,500,000)
	5,914,000

779.4	Subd. 2.Forecasted Programs

779.5	(a) MFIP/DWP

779.6	Appropriations by Fund
	
779.7	General Fund
	(3,749,000)
	(11,267,000)
	
779.8	Federal TANF
	(7,418,000)
	4,565,000

779.9	(b) MFIP Child Care Assistance
		(7,995,000)
		(521,000)

779.10	(c) General Assistance
		(4,850,000)
		(3,770,000)

779.11	(d) Minnesota Supplemental Aid
		(1,179,000)
		(821,000)

779.12	(e) Housing Support
		(3,260,000)
		(3,038,000)

779.13	(f) Northstar Care for Children
		(5,168,000)
		(6,458,000)

779.14	(g) MinnesotaCare
		7,620,000
		9,258,000
	
779.15 	These appropriations are from the health care 
779.16 	access fund.

779.17	(h) Medical Assistance

779.18	Appropriations by Fund
	
779.19	General Fund
	(199,817,000)
	(106,124,000)
	
779.20
779.21	Health Care Access 
Fund
	-0-
	-0-
	
779.22 	The health care access fund base for medical 
779.23 	assistance is $358,943,000 in fiscal year 2020 
779.24 	and $399,929,000 in fiscal year 2021.

779.25	(i) Alternative Care Program
		-0-
		-0-

779.26	(j) CCDTF Entitlements
		15,935,000
		28,464,000

779.27	Subd. 3.Technical Activities
 		918,000
		1,349,000
	
779.28 	These appropriations are from the federal 
779.29 	TANF fund.

779.30 	EFFECTIVE DATE. This section is effective June 1, 2018.

780.1 	ARTICLE 45
780.2 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

780.3	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
780.4 	The sums shown in the columns marked "Appropriations" are added to or, if shown in 
780.5 	parentheses, subtracted from the appropriations in Laws 2017, First Special Session chapter 
780.6 	6, article 18, to the agencies and for the purposes specified in this article. The appropriations 
780.7 	are from the general fund, or another named fund, and are available for the fiscal years 
780.8 	indicated for each purpose. The figures "2018" and "2019" used in this article mean that 
780.9 	the addition to or subtraction from appropriations listed under them are available for the 
780.10 	fiscal year ending June 30, 2018, or June 30, 2019, respectively. Base level adjustments 
780.11 	mean the addition or subtraction from the base level adjustments in Laws 2017, First Special 
780.12 	Session chapter 6, article 18. "The first year" is fiscal year 2018. "The second year" is fiscal 
780.13 	year 2019. "The biennium" is fiscal years 2018 and 2019. Supplemental appropriations and 
780.14 	reductions to appropriations for the fiscal year ending June 30, 2018, are effective June 1, 
780.15 	2018, unless a different effective date is specified.

780.16				APPROPRIATIONS
	
780.17				Available for the Year
	
780.18				Ending June 30
	
780.19					2018
		2019

780.20
780.21	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

780.22	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	31,401,000
	
780.23 	The amounts that may be spent for each 
780.24 	purpose are specified in the following 
780.25 	subdivisions.

780.26	Subd. 2.Central Office; Operations
 		-0-
		6,549,000
	
780.27 	(a) Advisory Council on Rare Diseases.
780.28 	$150,000 in fiscal year 2019 is for transfer to 
780.29 	the Board of Regents of the University of 
780.30 	Minnesota for the advisory council on rare 
781.1 	diseases under Minnesota Statutes, section 
781.2 	137.68.
781.3 	(b) Study and Report on Health Insurance 
781.4 	Rate Disparities between Geographic 
781.5 	Rating Areas. $251,000 in fiscal year 2019 
781.6 	is for transfer to the Legislative Coordinating 
781.7 	Commission for the Office of the Legislative 
781.8 	Auditor to study and report on disparities 
781.9 	between geographic rating areas in individual 
781.10 	and small group market health insurance rates. 
781.11 	This is a onetime appropriation and a onetime 
781.12 	transfer.
781.13 	(c) Substance Abuse Recovery Services 
781.14 	Provided through Minnesota Recovery 
781.15 	Corps. $309,000 in fiscal year 2019 is for 
781.16 	transfer to ServeMinnesota under Minnesota 
781.17 	Statutes, section 124D.37, to provide 
781.18 	evidenced-based substance abuse recovery 
781.19 	services through Minnesota Recovery Corps. 
781.20 	Funds shall be used to support training, 
781.21 	supervision, and deployment of AmeriCorps 
781.22 	members to serve as recovery navigators. The 
781.23 	Minnesota Commission on National and 
781.24 	Community Service shall include in the 
781.25 	commission's report to the legislature under 
781.26 	Minnesota Statutes, section 124D.385, 
781.27 	subdivision 3, an evaluation of program data 
781.28 	to determine the efficacy of the services in 
781.29 	promoting sustained substance abuse recovery, 
781.30 	including but not limited to stable housing, 
781.31 	relationship-building, employment skills, or 
781.32 	a year of AmeriCorps service. This is a 
781.33 	onetime appropriation and a onetime transfer.
781.34 	(d) Base Level Adjustment. The general fund 
781.35 	base is increased by $6,993,000 in fiscal year 
782.1 	2020 and increased by $6,936,000 in fiscal 
782.2 	year 2021.

782.3	Subd. 3.Central Office; Children and Families
 		-0-
		84,000
	
782.4 	Task Force on Childhood 
782.5 	Trauma-Informed Policy and Practices.
782.6 	$84,000 in fiscal year 2019 is for the task force 
782.7 	on childhood trauma-informed policy and 
782.8 	practices. This is a onetime appropriation.

782.9	Subd. 4.Central Office; Health Care
 		-0-
		1,058,000
	
782.10 	Base Level Adjustment. The general fund 
782.11 	base is increased by $1,574,000 in fiscal year 
782.12 	2020 and increased by $1,580,000 in fiscal 
782.13 	year 2021.

782.14
782.15	Subd. 5.Central Office; Continuing Care for 
Older Adults
 		-0-
		2,353,000
	
782.16 	(a) Regional Ombudsmen. $1,283,000 in 
782.17 	fiscal year 2019 is for nine additional regional 
782.18 	ombudsmen and one policy lead in the Office 
782.19 	of Ombudsman for Long-Term Care, to 
782.20 	perform the duties in Minnesota Statutes, 
782.21 	section 256.9742. The base for this 
782.22 	appropriation is $1,459,000 in fiscal year 2020 
782.23 	and $1,459,000 in fiscal year 2021.
782.24 	(b) Base Level Adjustment. The general fund 
782.25 	base is increased by $2,149,000 in fiscal year 
782.26 	2020 and increased by $2,149,000 in fiscal 
782.27 	year 2021.

782.28	Subd. 6.Central Office; Community Supports
 		-0-
		4,072,000
	
782.29 	Base Level Adjustment. The general fund 
782.30 	base is increased by $4,012,000 in fiscal year 
782.31 	2020 and increased by $4,012,000 in fiscal 
782.32 	year 2021.

782.33
782.34	Subd. 7.Forecasted Programs; Medical 
Assistance
 		-0-
		27,338,000

783.1	Subd. 8.Forecasted Programs; Alternative Care
 		-0-
		(28,000)

783.2
783.3	Subd. 9.Forecasted Programs; Chemical 
Dependency Treatment Fund
 		-0-
		(12,153,000)

783.4
783.5	Subd. 10.Grant Programs; Children's Services 
Grants
 		-0-
		365,000
	
783.6 	American Indian Child Welfare Initiative.
783.7 	$365,000 in fiscal year 2019 is for planning 
783.8 	efforts to expand the American Indian Child 
783.9 	Welfare Initiative authorized under Minnesota 
783.10 	Statutes, section 256.01, subdivision 14b. Of 
783.11 	this appropriation, $240,000 is for a grant to 
783.12 	the Mille Lacs Band of Ojibwe and $125,000 
783.13 	is for a grant to the Red Lake Nation. This is 
783.14 	a onetime appropriation.

783.15
783.16	Subd. 11.Grant Programs; Child and Economic 
Support Grants
 		-0-
		517,000
	
783.17 	(a) Community Action Grants. $200,000 in 
783.18 	fiscal year 2019 is for community action grants 
783.19 	under Minnesota Statutes, sections 256E.30 
783.20 	to 256E.32. The base for this appropriation is 
783.21 	$150,000 in fiscal year 2020 and $150,000 in 
783.22 	fiscal year 2021.
783.23 	(b) Mobile food shelf grants. (1) $117,000 
783.24 	in fiscal year 2019 is for mobile food shelf 
783.25 	grants under Minnesota Statutes, section 
783.26 	256E.34. The base for this appropriation is 
783.27 	$115,000 in fiscal year 2020 and $115,000 in 
783.28 	fiscal year 2021.
783.29 	(c) Project Legacy. $200,000 in fiscal year 
783.30 	2019 is for a grant to Project Legacy to 
783.31 	provide counseling and outreach to youth and 
783.32 	young adults from families with a history of 
783.33 	generational poverty. This appropriation must 
783.34 	be used for mental health care, medical care, 
783.35 	chemical dependency interventions, housing, 
784.1 	and mentoring and counseling services for 
784.2 	first generation college students. This is a 
784.3 	onetime appropriation.
784.4 	(d) Base Level Adjustment. The general fund 
784.5 	base is increased by $265,000 in fiscal year 
784.6 	2020 and increased by $265,000 in fiscal year 
784.7 	2021.

784.8
784.9	Subd. 12.Grant Programs; Aging and Adult 
Services Grants
 		-0-
		-0-
	
784.10 	Live Well At Home Grants. Of the fiscal 
784.11 	year 2019 general fund appropriation in Laws 
784.12 	2017, First Special Session chapter 6, article 
784.13 	18, section 2, subdivision 27: (1) $50,000 shall 
784.14 	be used to provide a live well at home grant 
784.15 	under Minnesota Statutes, section 256B.0917, 
784.16 	to an organization that provides block nurse 
784.17 	services to the elderly in the city of McGregor; 
784.18 	and (2) $120,000 shall be used to provide a 
784.19 	live well at home grant under Minnesota 
784.20 	Statutes, section 256B.0917, to an organization 
784.21 	that provides block nurse services to the 
784.22 	elderly in the city of Grove City.

784.23
784.24	Subd. 13.Grant Programs; Chemical 
Dependency Treatment Support Grants
 		-0-
		1,246,000
	
784.25 	(a) Student Health Initiative to Limit Opioid 
784.26 	Harm. $195,000 in fiscal year 2019 is for the 
784.27 	student health initiative to limit opioid harm. 
784.28 	This is a onetime appropriation.
784.29 	(b) Opioid Epidemic Response Grants.
784.30 	$1,051,000 is for opioid epidemic response 
784.31 	grants under Minnesota Statutes, section 
784.32 	256.043. The base for this appropriation is 
784.33 	$1,000,000 in fiscal year 2020 and $1,000,000 
784.34 	in fiscal year 2021. The commissioner shall 
784.35 	transfer $1,051,000 in fiscal year 2019 from 
785.1 	the general fund to the opioid epidemic 
785.2 	response account under Minnesota Statutes, 
785.3 	section 256.043. The base for this transfer is 
785.4 	$1,000,000 in fiscal year 2020 and $1,000,000 
785.5 	in fiscal year 2021.
785.6 	(c) Base Level Adjustment. The general fund 
785.7 	base is increased by $1,000,000 in fiscal year 
785.8 	2020 and increased by $1,000,000 in fiscal 
785.9 	year 2021.

785.10	Sec. 3. COMMISSIONER OF HEALTH

785.11	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	7,069,000

785.12	Appropriations by Fund
	
785.13		2018
	2019
	
785.14	General
	-0-
	7,044,000
	
785.15
785.16	State Government 
Special Revenue
	-0-
	25,000
	
785.17 	The amounts that may be spent for each 
785.18 	purpose are specified in the following 
785.19 	subdivisions.

785.20	Subd. 2.Health Improvement
 		-0-
		4,554,000
	
785.21 	(a) Minnesota Biomedicine and Bioethics 
785.22 	Innovation Grants. $500,000 in fiscal year 
785.23 	2019 is for transfer to the Board of Regents 
785.24 	of the University of Minnesota for Minnesota 
785.25 	biomedicine and bioethics innovation grants 
785.26 	under Minnesota Statutes, section 137.67.
785.27 	(b) Mental Health and Substance Use 
785.28 	Disorder Parity Work Group. $75,000 in 
785.29 	fiscal year 2019 is for transfer to the 
785.30 	commissioner of commerce for the mental 
785.31 	health and substance use disorder parity work 
785.32 	group. This is a onetime appropriation and a 
785.33 	onetime transfer.
786.1 	(c) The TAP Program. Notwithstanding 
786.2 	Minnesota Statutes, section 16B.97, $10,000 
786.3 	in fiscal year 2019 is for a grant to the TAP 
786.4 	in St. Paul to support mental health in 
786.5 	disability communities through spoken art 
786.6 	forms, community supports, and community 
786.7 	engagement. This is a onetime appropriation 
786.8 	and none of it may be used for administration.
786.9 	(d) Opioid Overdose Reduction Pilot 
786.10 	Program. $1,000,000 in fiscal year 2019 is 
786.11 	for the opioid overdose reduction pilot 
786.12 	program. This is a onetime appropriation and 
786.13 	is available until June 30, 2021. None of this 
786.14 	appropriation may be used for administration.
786.15 	(e) Reduction of Statewide Health 
786.16 	Improvement Program Appropriation. The 
786.17 	appropriation in Laws 2017, First Special 
786.18 	Session chapter 6, article 18, section 3, 
786.19 	subdivision 2, from the health care access fund 
786.20 	for the statewide health improvement program 
786.21 	under Minnesota Statutes, section 145.986, is 
786.22 	reduced by $291,000 in fiscal year 2019. The 
786.23 	base for this reduction is $1,550,000 in fiscal 
786.24 	year 2020, and $2,955,000 in fiscal year 2021.
786.25 	(f) Statewide Tobacco Cessation Services.
786.26 	$291,000 in fiscal year 2019 is appropriated 
786.27 	from the health care access fund for statewide 
786.28 	tobacco cessation services under Minnesota 
786.29 	Statutes, section 144.397. The base for this 
786.30 	appropriation is $1,550,000 in fiscal year 
786.31 	2020, and $2,955,000 in fiscal year 2021.
786.32 	(g) Additional Funding for Opioid 
786.33 	Prevention Pilot Projects.  $2,000,000 in 
786.34 	fiscal year 2019 is for opioid abuse prevention 
786.35 	pilot projects under Laws 2017, First Special 
787.1 	Session chapter 6, article 10, section 144. Of 
787.2 	this amount, $1,400,000 is for the opioid abuse 
787.3 	prevention pilot project through CHI St. 
787.4 	Gabriel's Health Family Medical Center, also 
787.5 	known as Unity Family Health Care. $600,000 
787.6 	is for Project Echo through CHI St. Gabriel's 
787.7 	Health Family Medical Center for e-learning 
787.8 	sessions centered around opioid case 
787.9 	management and best practices for opioid 
787.10 	abuse prevention. This is a onetime 
787.11 	appropriation and none of it may be used for 
787.12 	administration.
787.13 	(h) Suicide Prevention Grants. $969,000 in 
787.14 	fiscal year 2019 is for suicide prevention 
787.15 	grants under Minnesota Statutes, section 
787.16 	145.56, subdivision 2, clause (7). This is a 
787.17 	onetime appropriation.
787.18 	(i) Base Level Adjustments. The general fund 
787.19 	base is increased by $500,000 in fiscal year 
787.20 	2020 and increased by $500,000 in fiscal year 
787.21 	2021.

787.22	Subd. 3.Health Protection

787.23	Appropriations by Fund
	
787.24	General
	-0-
	2,490,000
	
787.25
787.26	State Government 
Special Revenue
	-0-
	25,000
	
787.27 	(a) Regulation of Low-Dose X-Ray Security 
787.28 	Screening Systems. $29,000 in fiscal year 
787.29 	2019 is from the state government special 
787.30 	revenue fund for rulemaking under Minnesota 
787.31 	Statutes, section 144.121. The base for this 
787.32 	appropriation is $21,000 in fiscal year 2020 
787.33 	and $21,000 in fiscal year 2021.
787.34 	(b) Assisted Living Report Card Working 
787.35 	Group. $27,000 in fiscal year 2019 is from 
788.1 	the general fund for the assisted living report 
788.2 	card working group. This is a onetime 
788.3 	appropriation.
788.4 	(c) Assisted Living Licensure and Dementia 
788.5 	Care Task Force. $60,000 in fiscal year 2019 
788.6 	is from the general fund for the Assisted 
788.7 	Living Licensure and Dementia Care Task 
788.8 	Force.This is a onetime appropriation.
788.9 	(d) Safety and Quality Improvement 
788.10 	Practices Report. $33,000 in fiscal year 2019 
788.11 	is from the general fund for the safety and 
788.12 	quality improvement practices report.
788.13 	(e) Technology Upgrades. $1,755,000 in 
788.14 	fiscal year 2019 is from the general fund for 
788.15 	Web site improvements and data analytics at 
788.16 	the Office of Health Facility Complaints. The 
788.17 	general fund base for this appropriation is 
788.18 	$971,000 in fiscal year 2020 and $853,000 in 
788.19 	fiscal year 2021.
788.20 	(f) Base Level Adjustment. The general fund 
788.21 	base is increased by $1,420,000 in fiscal year 
788.22 	2020 and increased by $1,289,000 in fiscal 
788.23 	year 2021. The state government special 
788.24 	revenue fund base is increased by $17,000 in 
788.25 	fiscal year 2020 and increased by $17,000 in 
788.26 	fiscal year 2021.

788.27	Sec. 4. HEALTH-RELATED BOARDS

788.28	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	368,000
	
788.29 	This appropriation is from the state 
788.30 	government special revenue fund. The 
788.31 	amounts that may be spent for each purpose 
788.32 	are specified in the following subdivisions.

789.1	Subd. 2.Board of Dentistry
 		-0-
		13,000
	
789.2 	Base Adjustments. The state government 
789.3 	special revenue fund base is increased by 
789.4 	$5,000 in fiscal year 2020 and increased by 
789.5 	$5,000 in fiscal year 2021.

789.6	Subd. 3.Board of Nursing
 		-0-
		5,000
	
789.7 	This is a onetime appropriation.

789.8	Subd. 4.Board of Optometry
 		-0-
		5,000
	
789.9 	This is a onetime appropriation.

789.10	Subd. 5.Board of Pharmacy
 		-0-
		340,000
	
789.11 	(a) Prescription Monitoring Program.
789.12 	$284,000 is for migration to a new information 
789.13 	technology platform for the prescription 
789.14 	monitoring program and $42,000 is for 
789.15 	administration of the prescription monitoring 
789.16 	program.
789.17 	(b) Drug Repository. $14,000 in fiscal year 
789.18 	2019 is for the repository program in 
789.19 	Minnesota Statutes, section 151.555. 
789.20 	Notwithstanding section 10, the base for this 
789.21 	appropriation is $12,000 in fiscal year 2020, 
789.22 	$12,000 in fiscal year 2021, $12,000 in fiscal 
789.23 	year 2022, and $0 in fiscal year 2023.
789.24 	(c) Base Adjustments. The state government 
789.25 	special revenue fund base is increased by 
789.26 	$338,000 in fiscal year 2020 and increased by 
789.27 	$338,000 in fiscal year 2021.

789.28	Subd. 6.Board of Podiatric Medicine
 		-0-
		5,000
	
789.29 	This is a onetime appropriation.

789.30
789.31	Sec. 5. LEGISLATIVE COORDINATING 
COMMISSION.
 	$
	-0-
	$
	137,000
	
790.1 	(a) Health Policy Commission. $137,000 in 
790.2 	fiscal year 2019 is for administration of the 
790.3 	Health Policy Commission under Minnesota 
790.4 	Statutes, section 62J.90. The base for this 
790.5 	appropriation is $405,000 in fiscal year 2020 
790.6 	and $410,000 in fiscal year 2021.
790.7 	(b) Base Level Adjustment. The general fund 
790.8 	base is increased by $405,000 in fiscal year 
790.9 	2020 and increased by $410,000 in fiscal year 
790.10 	2021.

790.11 	Sec. 6. Laws 2017, First Special Session chapter 6, article 18, section 3, subdivision 2, is 
790.12 	amended to read:

790.13	Subd. 2.Health Improvement

790.14	Appropriations by Fund
	
790.15	General
	81,438,000
	78,100,000
	
790.16
790.17	State Government 
Special Revenue
	6,215,000
	6,182,000
	
790.18	Health Care Access
	36,643,000
	36,258,000
	
790.19	Federal TANF
	11,713,000
	11,713,000
	
790.20 	(a) TANF Appropriations. (1) $3,579,000 
790.21 	of the TANF fund each year is for home 
790.22 	visiting and nutritional services listed under 
790.23 	Minnesota Statutes, section 145.882, 
790.24 	subdivision 7, clauses (6) and (7). Funds must 
790.25 	be distributed to community health boards 
790.26 	according to Minnesota Statutes, section 
790.27 	145A.131, subdivision 1.
790.28 	(2) $2,000,000 of the TANF fund each year 
790.29 	is for decreasing racial and ethnic disparities 
790.30 	in infant mortality rates under Minnesota 
790.31 	Statutes, section 145.928, subdivision 7.
790.32 	(3) $4,978,000 of the TANF fund each year 
790.33 	is for the family home visiting grant program 
790.34 	according to Minnesota Statutes, section 
791.1 	145A.17. $4,000,000 of the funding must be 
791.2 	distributed to community health boards 
791.3 	according to Minnesota Statutes, section 
791.4 	145A.131, subdivision 1. $978,000 of the 
791.5 	funding must be distributed to tribal 
791.6 	governments according to Minnesota Statutes, 
791.7 	section 145A.14, subdivision 2a.
791.8 	(4) $1,156,000 of the TANF fund each year 
791.9 	is for family planning grants under Minnesota 
791.10 	Statutes, section 145.925.
791.11 	(5) The commissioner may use up to 6.23 
791.12 	percent of the funds appropriated each year to 
791.13 	conduct the ongoing evaluations required 
791.14 	under Minnesota Statutes, section 145A.17, 
791.15 	subdivision 7, and training and technical 
791.16 	assistance as required under Minnesota 
791.17 	Statutes, section 145A.17, subdivisions 4 and 
791.18 	5.
791.19 	(b) TANF Carryforward. Any unexpended 
791.20 	balance of the TANF appropriation in the first 
791.21 	year of the biennium does not cancel but is 
791.22 	available for the second year.
791.23 	(c) Evidence-Based Home Visiting to 
791.24 	Pregnant Women and Families with Young 
791.25 	Children. $6,000,000 in fiscal year 2018 and 
791.26 	$6,000,000 in fiscal year 2019 are from the 
791.27 	general fund to start up or expand 
791.28 	evidence-based home visiting programs to 
791.29 	pregnant women and families with young 
791.30 	children. The commissioner shall award grants 
791.31 	to community health boards, nonprofits, or 
791.32 	tribal nations in urban and rural areas of the 
791.33 	state. Grant funds must be used to start up or 
791.34 	expand evidence-based or culturally or 
791.35 	ethnically targeted home visiting programs in 
792.1 	the county, reservation, or region to serve 
792.2 	families, such as parents with high risk or high 
792.3 	needs, parents with a history of mental illness, 
792.4 	domestic abuse, or substance abuse, or 
792.5 	first-time mothers prenatally until the child is 
792.6 	four years of age, who are eligible for medical 
792.7 	assistance under Minnesota Statutes, chapter 
792.8 	256B, or the federal Special Supplemental 
792.9 	Nutrition Program for Women, Infants, and 
792.10 	Children. For fiscal year 2019, the 
792.11 	commissioner shall allocate at least 75 percent 
792.12 	of the grant funds not yet awarded to 
792.13 	evidence-based home visiting programs and 
792.14 	up to 25 percent of the grant funds not yet 
792.15 	awarded to other culturally or ethnically 
792.16 	targeted home visiting programs in order to 
792.17 	promote innovation and serve high-need 
792.18 	families. Beginning in fiscal year 2020, the 
792.19 	commissioner shall allocate at least 75 percent 
792.20 	of the grant funds to evidence-based home 
792.21 	visiting programs and up to 25 percent of the 
792.22 	grant funds to culturally or ethnically targeted 
792.23 	home visiting programs. Priority for grants to 
792.24 	rural areas shall be given to community health 
792.25 	boards, nonprofits, and tribal nations that 
792.26 	expand services within regional partnerships 
792.27 	that provide the evidence-based home visiting 
792.28 	programs. This funding shall only be used to 
792.29 	supplement, not to replace, funds being used 
792.30 	for evidence-based or culturally or ethnically 
792.31 	targeted home visiting services as of June 30, 
792.32 	2017. Up to seven percent of the appropriation 
792.33 	may be used for training, technical assistance, 
792.34 	evaluation, and other costs to administer the 
792.35 	grants. The general fund base for this program 
792.36 	is $16,500,000 in fiscal year 2020 and 
793.1 	$16,500,000 in fiscal year 2021.
793.2 	Notwithstanding section 18, this paragraph 
793.3 	does not expire.
793.4 	(d) Safe Harbor for Sexually Exploited 
793.5 	Youth Services. $250,000 in fiscal year 2018 
793.6 	and $250,000 in fiscal year 2019 are from the 
793.7 	general fund for trauma-informed, culturally 
793.8 	specific services for sexually exploited youth. 
793.9 	Youth 24 years of age or younger are eligible 
793.10 	for services under this paragraph.
793.11 	(e) Safe Harbor Program Technical 
793.12 	Assistance and Evaluation. $200,000 in 
793.13 	fiscal year 2018 and $200,000 in fiscal year 
793.14 	2019 are from the general fund for training, 
793.15 	technical assistance, protocol implementation, 
793.16 	and evaluation activities related to the safe 
793.17 	harbor program. Of these amounts:
793.18 	(1) $90,000 each fiscal year is for providing 
793.19 	training and technical assistance to individuals 
793.20 	and organizations that provide safe harbor 
793.21 	services and receive funds for that purpose 
793.22 	from the commissioner of human services or 
793.23 	commissioner of health;
793.24 	(2) $90,000 each fiscal year is for protocol 
793.25 	implementation, which includes providing 
793.26 	technical assistance in establishing best 
793.27 	practices-based systems for effectively 
793.28 	identifying, interacting with, and referring 
793.29 	sexually exploited youth to appropriate 
793.30 	resources; and
793.31 	(3) $20,000 each fiscal year is for program 
793.32 	evaluation activities in compliance with 
793.33 	Minnesota Statutes, section 145.4718.
794.1 	(f) Promoting Safe Harbor Capacity. In 
794.2 	funding services and activities under 
794.3 	paragraphs (d) and (e), the commissioner shall 
794.4 	emphasize activities that promote 
794.5 	capacity-building and development of 
794.6 	resources in greater Minnesota.
794.7 	(g) Administration of Safe Harbor 
794.8 	Program. $60,000 in fiscal year 2018 and 
794.9 	$60,000 in fiscal year 2019 are for 
794.10 	administration of the safe harbor for sexually 
794.11 	exploited youth program.
794.12 	(h) Palliative Care Advisory Council.
794.13 	$44,000 in fiscal year 2018 and $44,000 in 
794.14 	fiscal year 2019 are from the general fund for 
794.15 	the Palliative Care Advisory Council under 
794.16 	Minnesota Statutes, section 144.059. This is 
794.17 	a onetime appropriation.
794.18 	(i) Transfer; Minnesota Biomedicine and 
794.19 	Bioethics Innovation Grants. $2,500,000 in 
794.20 	fiscal year 2018 is from the general fund for 
794.21 	transfer to the Board of Regents of the 
794.22 	University of Minnesota for Minnesota 
794.23 	biomedicine and bioethics innovation grants 
794.24 	under Minnesota Statutes, section 137.67. The 
794.25 	full amount of the appropriation is for grants, 
794.26 	and the University of Minnesota shall not use 
794.27 	any portion for administrative or monitoring 
794.28 	expenses. The steering committee of the 
794.29 	University of Minnesota and Mayo Foundation 
794.30 	partnership must submit a preliminary report 
794.31 	by April 1, 2018, and a final report by April 
794.32 	1, 2019, on all grant activities funded under 
794.33 	Minnesota Statutes, section 137.67, to the 
794.34 	chairs and ranking minority members of the 
794.35 	legislative committees with jurisdiction over 
795.1 	health and human services finance. This is a 
795.2 	onetime appropriation and is available until 
795.3 	June 30, 2021.
795.4 	(j) Statewide Strategic Plan for Victims of 
795.5 	Sex Trafficking. $73,000 in fiscal year 2018 
795.6 	is from the general fund for the development 
795.7 	of a comprehensive statewide strategic plan 
795.8 	and report to address the needs of sex 
795.9 	trafficking victims statewide. This is a onetime 
795.10 	appropriation.
795.11 	(k) Home and Community-Based Services 
795.12 	Employee Scholarship Program. $500,000 
795.13 	in fiscal year 2018 and $500,000 in fiscal year 
795.14 	2019 are from the general fund for the home 
795.15 	and community-based services employee 
795.16 	scholarship program under Minnesota Statutes, 
795.17 	section 144.1503.
795.18 	(l) Comprehensive Advanced Life Support 
795.19 	Educational Program. $100,000 in fiscal 
795.20 	year 2018 and $100,000 in fiscal year 2019 
795.21 	are from the general fund for the 
795.22 	comprehensive advanced life support 
795.23 	educational program under Minnesota Statutes, 
795.24 	section 144.6062. This is a onetime 
795.25 	appropriation.
795.26 	(m) Opioid Abuse Prevention. $1,028,000 
795.27 	in fiscal year 2018 is to establish and evaluate 
795.28 	accountable community for health opioid 
795.29 	abuse prevention pilot projects. $28,000 of 
795.30 	this amount is for administration. This is a 
795.31 	onetime appropriation and is available until 
795.32 	June 30, 2021.
795.33 	(n) Advanced Care Planning. $250,000 in 
795.34 	fiscal year 2018 and $250,000 in fiscal year 
796.1 	2019 are from the general fund for a grant to 
796.2 	a statewide advanced care planning resource 
796.3 	organization that has expertise in convening 
796.4 	and coordinating community-based strategies 
796.5 	to encourage individuals, families, caregivers, 
796.6 	and health care providers to begin 
796.7 	conversations regarding end-of-life care 
796.8 	choices that express an individual's health care 
796.9 	values and preferences and are based on 
796.10 	informed health care decisions. Of this 
796.11 	amount, $9,000 each year is for administration. 
796.12 	This is a onetime appropriation.
796.13 	(o) Health Professionals Clinical Training 
796.14 	Expansion Grant Program. $526,000 in 
796.15 	fiscal year 2018 and $526,000 in fiscal year 
796.16 	2019 are from the general fund for the primary 
796.17 	care and mental health professions clinical 
796.18 	training expansion grant program under 
796.19 	Minnesota Statutes, section 144.1505. Of this 
796.20 	amount, $26,000 each year is for 
796.21 	administration.
796.22 	(p) Federally Qualified Health Centers.
796.23 	$500,000 in fiscal year 2018 and $500,000 in 
796.24 	fiscal year 2019 are from the general fund to 
796.25 	provide subsidies to federally qualified health 
796.26 	centers under Minnesota Statutes, section 
796.27 	145.9269. This is a onetime appropriation.
796.28 	(q) Base Level Adjustments. The general 
796.29 	fund base is $87,656,000 in fiscal year 2020 
796.30 	and $87,706,000 in fiscal year 2021. The 
796.31 	health care access fund base is $36,858,000 
796.32 	in fiscal year 2020 and $36,258,000 in fiscal 
796.33 	year 2021.

797.1 	Sec. 7. Laws 2017, First Special Session chapter 6, article 18, section 3, subdivision 3, is 
797.2 	amended to read:

797.3	Subd. 3.Health Protection

797.4	Appropriations by Fund
	
797.5	General
	20,928,000
	17,339,000
	
797.6
797.7	State Government 
Special Revenue
	47,392,000
	47,920,000
	
797.8 	(a) Prescribed Pediatric Extended Care 
797.9 	Center Licensure Activities. $64,000 in fiscal 
797.10 	year 2018 and $17,000 in fiscal year 2019 are 
797.11 	from the state government special revenue 
797.12 	fund for licensure of prescribed pediatric 
797.13 	extended care centers under Minnesota 
797.14 	Statutes, chapter 144H.
797.15 	(b) Vulnerable Adults in Health Care 
797.16 	Settings Electronic Case Management 
797.17 	System. $1,162,000 in fiscal year 2018 and 
797.18 	$2,030,000 in fiscal year 2019 are from the 
797.19 	general fund for regulating health care and 
797.20 	home care settings. for an electronic case 
797.21 	management system for the Office of Health 
797.22 	Facility Complaints. Any unexpended balance 
797.23 	must be used to purchase and operate an 
797.24 	electronic case management system. The case 
797.25 	management system must be able to track and 
797.26 	cross-reference multiple maltreatment reports 
797.27 	and complaints concerning the same alleged 
797.28 	perpetrator, facility, or licensee; the same 
797.29 	vulnerable adult; and the same incident. The 
797.30 	general fund base for this purpose is 
797.31 	$2,401,000 in fiscal year 2020 and $3,405,000 
797.32 	in fiscal year 2021.
797.33 	(c) Transfer; Public Health Response 
797.34 	Contingency Account. The commissioner 
797.35 	shall transfer $5,000,000 in fiscal year 2018 
798.1 	from the general fund to the public health 
798.2 	response contingency account established in 
798.3 	Minnesota Statutes, section 144.4199.
798.4 	(d) Base Level Adjustment. The general fund 
798.5 	base is $17,710,000 in fiscal year 2020 and 
798.6 	$18,714,000 in fiscal year 2021. The state 
798.7 	government special revenue fund base is 
798.8 	$47,958,000 in fiscal year 2020 and 
798.9 	$48,295,000 in fiscal year 2021.

798.10 	Sec. 8. Laws 2017, First Special Session chapter 6, article 18, section 16, subdivision 2, 
798.11 	is amended to read:
798.12 		Subd. 2.Administration. Subject to Minnesota Statutes, section 256.01, subdivision 
798.13 	17a, positions, salary money, and nonsalary administrative money may be transferred within 
798.14 	the Departments of Health and Human Services as the commissioners consider necessary, 
798.15 	with the advance approval of the commissioner of management and budget. The 
798.16 	commissioner shall inform the chairs and ranking minority members of the senate Health 
798.17 	and Human Services Finance and Policy Committee, the senate Human Services Reform 
798.18 	Finance and Policy Committee, and the house of representatives Health and Human Services 
798.19 	Finance Committee quarterly about transfers made under this subdivision.

798.20 	Sec. 9. TRANSFERS.
 798.21 	(a) By June 30, 2019, the commissioner of human services shall transfer $1,211,000 
798.22 	from the general fund to the health care access fund. Notwithstanding section 10, by June 
798.23 	30, 2020, the commissioner of human services shall transfer $1,211,000 from the health 
798.24 	care access fund to the general fund. These are onetime transfers.
798.25 	(b) By June 30, 2018, the commissioner of human services shall transfer:
798.26 	(1) $14,000,000 from the systems operations account in the special revenue fund to the 
798.27 	general fund. This is a onetime transfer;
798.28 	(2) $2,224,000 from the systems fund long-term care options project account in the 
798.29 	special revenue fund to the general fund. This is a onetime transfer; and
798.30 	(3) $2,400,000 from the direct care and treatment special health care receipts account 
798.31 	in the special revenue fund to the general fund. This is a onetime transfer.

798.32 	EFFECTIVE DATE. This section is effective June 1, 2018.

799.1 	Sec. 10. EXPIRATION OF UNCODIFIED LANGUAGE.
 799.2 	All uncodified language contained in this article expires on June 30, 2019, unless a 
799.3 	different expiration date is specified.

799.4 	Sec. 11. EFFECTIVE DATE.
 799.5 	This article is effective July 1, 2018, unless a different effective date is specified.

799.6 	ARTICLE 46
799.7 	STUDENT AND SCHOOL SAFETY

799.8 	Section 1. [121A.35] SCHOOL SAFETY ASSESSMENT.
799.9 		Subdivision 1.School safety assessment. "School safety assessment" means a fact-based 
799.10 	process using an integrated team approach that helps schools evaluate and assess potentially 
799.11 	threatening situations or students whose behavior may pose a threat to the safety of school 
799.12 	staff or students.
799.13 		Subd. 2.Policy. A school board must adopt a policy to establish safety assessment teams 
799.14 	to conduct school safety assessments consistent with subdivision 1. A safety assessment 
799.15 	policy must be consistent with district policies developed in accordance with section 
799.16 	121A.035, and with any guidance provided by the Department of Public Safety's School 
799.17 	Safety Center. A safety assessment policy must include procedures for referrals to mental 
799.18 	health centers or health care providers for evaluation or treatment, when appropriate. A 
799.19 	safety assessment policy must require notice to the parent or guardian of a student whose 
799.20 	behavior is assessed to determine whether the student poses a threat to the safety of school 
799.21 	staff or students, unless notice to the parent or guardian is not in the minor's best interests, 
799.22 	consistent with section 13.02, subdivision 8, and 13.32, subdivision 2.
799.23 		Subd. 3.Oversight committees. The superintendent of a school district must establish 
799.24 	a committee or individual charged with oversight of the safety assessment teams operating 
799.25 	within the district, which may be an existing committee established by the school board.
799.26 		Subd. 4.Safety assessment teams. (a) The superintendent of a school district must 
799.27 	establish, for each school, a safety assessment team that includes, to the extent practicable, 
799.28 	school officials with expertise in counseling, school administration, students with disabilities, 
799.29 	and law enforcement. A safety assessment team may serve one or more schools, as 
799.30 	determined by the superintendent.
799.31 	(b) A safety assessment team must:
800.1 	(1) provide guidance to students, faculty, and staff regarding recognition of threatening 
800.2 	or aberrant behavior that may represent a threat to the community, school, or self, and the 
800.3 	members of the community to whom threatening or aberrant behavior should be reported;
800.4 	(2) consider whether there is sufficient information to determine whether or not a student 
800.5 	poses a threat;
800.6 	(3) implement a policy adopted by the school board under subdivision 2; and
800.7 	(4) report summary data on its activities according to guidance developed by the School 
800.8 	Safety Center.
800.9 	(c) Upon a preliminary determination that a student poses a threat of violence or physical 
800.10 	harm to self or others, a safety assessment team must immediately report its determination 
800.11 	to the district superintendent or the superintendent's designee, who must immediately attempt 
800.12 	to notify the student's parent or legal guardian. The safety assessment team must consider 
800.13 	services to address the student's underlying issues, which may include counseling, social 
800.14 	work services, character education consistent with section 120B.232, evidence-based 
800.15 	academic and positive behavioral interventions and supports, mental health services, and 
800.16 	referrals for special education or section 504 evaluations.
800.17 	(d) Upon determining that a student exhibits suicidal ideation or self-harm, a school 
800.18 	safety assessment team must follow the district's suicide prevention policy or protocol or 
800.19 	refer the student to an appropriate school-linked mental health professional or other support 
800.20 	personnel. Access to information regarding a student exhibiting suicidal ideation or self-harm 
800.21 	is subject to section 13.32, subdivision 2.
800.22 	(e) Nothing in this section precludes a school district official or employee from acting 
800.23 	immediately to address an imminent threat.
800.24 		Subd. 5.Redisclosure. (a) A safety assessment team member must not redisclose 
800.25 	educational records or use any record of an individual beyond the purpose for which the 
800.26 	disclosure was made to the safety assessment team. A school district employee who has 
800.27 	access to information related to a safety assessment is subject to this subdivision.
800.28 	(b) Nothing in this section prohibits the disclosure of educational records in health, 
800.29 	including mental health, and safety emergencies in accordance with state and federal law.

800.30 	EFFECTIVE DATE. This section is effective for the 2019-2020 school year and later.

801.1 	Sec. 2. [121A.441] EXPULSION FOR MAKING A THREAT OF VIOLENCE.
801.2 	Notwithstanding the time limitation in section 121A.41, subdivision 5, a school board 
801.3 	may expel for a period of at least one year a pupil who makes a threat of gun violence against 
801.4 	another person or makes a threat of violence with the intent to cause evacuation of a school 
801.5 	site or school administration building. A school board may modify the expulsion for a pupil 
801.6 	on a case-by-case basis.

801.7 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

801.8 	Sec. 3. Minnesota Statutes 2016, section 123B.595, as amended by Laws 2017, First 
801.9 	Special Session chapter 5, article 5, sections 3 and 4, is amended to read:
801.10 	123B.595 LONG-TERM FACILITIES MAINTENANCE REVENUE.
801.11 		Subdivision 1.Long-term facilities maintenance revenue. (a) For fiscal year 2017 
801.12 	only, long-term facilities maintenance revenue equals the greater of (1) the sum of (i) $193 
801.13 	times the district's adjusted pupil units times the lesser of one or the ratio of the district's 
801.14 	average building age to 35 years, plus the cost approved by the commissioner for indoor 
801.15 	air quality, fire alarm and suppression, and asbestos abatement projects under section 
801.16 	123B.57, subdivision 6, with an estimated cost of $100,000 or more per site, plus (ii) for a 
801.17 	school district with an approved voluntary prekindergarten program under section 124D.151, 
801.18 	the cost approved by the commissioner for remodeling existing instructional space to 
801.19 	accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district would 
801.20 	have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes 
801.21 	2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) for a school 
801.22 	district with an approved voluntary prekindergarten program under section 124D.151, the 
801.23 	cost approved by the commissioner for remodeling existing instructional space to 
801.24 	accommodate prekindergarten instruction.
801.25 	(b) (a) For fiscal year 2018 only, long-term facilities maintenance revenue equals the 
801.26 	greater of (1) the sum of (i) $292 times the district's adjusted pupil units times the lesser of 
801.27 	one or the ratio of the district's average building age to 35 years, plus (ii) the cost approved 
801.28 	by the commissioner for indoor air quality, fire alarm and suppression, and asbestos 
801.29 	abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 
801.30 	or more per site, plus (iii) for a school district with an approved voluntary prekindergarten 
801.31 	program under section 124D.151, the cost approved by the commissioner for remodeling 
801.32 	existing instructional space to accommodate prekindergarten instruction, or (2) the sum of 
801.33 	(i) the amount the district would have qualified for under Minnesota Statutes 2014, section 
801.34 	123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 
802.1 	123B.591, and (ii) for a school district with an approved voluntary prekindergarten program 
802.2 	under section 124D.151, the cost approved by the commissioner for remodeling existing 
802.3 	instructional space to accommodate prekindergarten instruction.
802.4 	(c) (b) For fiscal year 2019 and later, long-term facilities maintenance revenue equals 
802.5 	the greater of (1) the sum of (i) $380 times the district's adjusted pupil units times the lesser 
802.6 	of one or the ratio of the district's average building age to 35 years, plus (ii) the cost approved 
802.7 	by the commissioner for indoor air quality, fire alarm and suppression, and asbestos 
802.8 	abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 
802.9 	or more per site, plus (iii) for a school district with an approved voluntary prekindergarten 
802.10 	program under section 124D.151, the cost approved by the commissioner for remodeling 
802.11 	existing instructional space to accommodate prekindergarten instruction, or (2) the sum of 
802.12 	(i) the amount the district would have qualified for under Minnesota Statutes 2014, section 
802.13 	123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 
802.14 	123B.591, and (ii) for a school district with an approved voluntary prekindergarten program 
802.15 	under section 124D.151, the cost approved by the commissioner for remodeling existing 
802.16 	instructional space to accommodate prekindergarten instruction.
802.17 	(d) (c) Notwithstanding paragraphs (a), and (b), and (c), a school district that qualified 
802.18 	for eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph 
802.19 	(a), for fiscal year 2010 remains eligible for funding under this section as a district that 
802.20 	would have qualified for eligibility under Minnesota Statutes 2014, section 123B.59, 
802.21 	subdivision 1, paragraph (a), for fiscal year 2017 and later.
802.22 		Subd. 2.Long-term facilities maintenance revenue for a charter school. (a) For fiscal 
802.23 	year 2017 only, long-term facilities maintenance revenue for a charter school equals $34 
802.24 	times the adjusted pupil units.
802.25 	(b) (a) For fiscal year 2018 only, long-term facilities maintenance revenue for a charter 
802.26 	school equals $85 times the adjusted pupil units.
802.27 	(c) (b) For fiscal year 2019 and later, long-term facilities maintenance revenue for a 
802.28 	charter school equals $132 times the adjusted pupil units.
802.29 		Subd. 3.Intermediate districts and other cooperative units. Upon approval through 
802.30 	the adoption of a resolution by each member district school board of an intermediate district 
802.31 	or other cooperative units under section 123A.24, subdivision 2, and the approval of the 
802.32 	commissioner of education, a school district may include in its authority under this section 
802.33 	a proportionate share of the long-term maintenance costs of the intermediate district or 
802.34 	cooperative unit. The cooperative unit may issue bonds to finance the project costs or levy 
803.1 	for the costs, using long-term maintenance revenue transferred from member districts to 
803.2 	make debt service payments or pay project costs. Authority under this subdivision is in 
803.3 	addition to the authority for individual district projects under subdivision 1.
803.4 		Subd. 4.Facilities plans. (a) To qualify for revenue under this section, a school district 
803.5 	or intermediate district, not including a charter school, must have a ten-year facility plan 
803.6 	adopted by the school board and approved by the commissioner. The plan must include 
803.7 	provisions for implementing a health and safety program that complies with health, safety, 
803.8 	and environmental regulations and best practices, including indoor air quality management 
803.9 	and remediation of lead hazards. The plan may include provisions for enhancing school 
803.10 	safety through physical modifications to school facilities as described in subdivision 4a.
803.11 	(b) The district must annually update the plan, submit the plan to the commissioner for 
803.12 	approval by July 31, and indicate whether the district will issue bonds to finance the plan 
803.13 	or levy for the costs.
803.14 	(c) For school districts issuing bonds to finance the plan, the plan must include a debt 
803.15 	service schedule demonstrating that the debt service revenue required to pay the principal 
803.16 	and interest on the bonds each year will not exceed the projected long-term facilities revenue 
803.17 	for that year.
803.18 		Subd. 4a.School safety facility enhancements. For fiscal years 2020 and 2021 only, 
803.19 	a school district may include in its facilities plan a school safety facilities plan. School safety 
803.20 	projects may include remodeling and new construction for school security enhancements, 
803.21 	and equipment and facility modifications related to violence prevention and facility security. 
803.22 	Projects authorized prior to July 1, 2021, may be included in the plan until the projects are 
803.23 	complete.
803.24 		Subd. 5.Bond authorization. (a) A school district may issue general obligation bonds 
803.25 	under this section to finance facilities plans approved by its board and the commissioner. 
803.26 	Chapter 475, except sections 475.58 and 475.59, must be complied with. The authority to 
803.27 	issue bonds under this section is in addition to any bonding authority authorized by this 
803.28 	chapter or other law. The amount of bonding authority authorized under this section must 
803.29 	be disregarded in calculating the bonding or net debt limits of this chapter, or any other law 
803.30 	other than section 475.53, subdivision 4.
803.31 	(b) At least 20 days before the earliest of solicitation of bids, the issuance of bonds, or 
803.32 	the final certification of levies under subdivision 6, the district must publish notice of the 
803.33 	intended projects, the amount of the bond issue, and the total amount of district indebtedness.
804.1 	(c) The portion of revenue under this section for bonded debt must be recognized in the 
804.2 	debt service fund.
804.3 		Subd. 6.Levy authorization. A district may levy for costs related to an approved plan 
804.4 	under subdivision 4 as follows:
804.5 	(1) if the district has indicated to the commissioner that bonds will be issued, the district 
804.6 	may levy for the principal and interest payments on outstanding bonds issued under 
804.7 	subdivision 5 after reduction for any aid receivable under subdivision 9;
804.8 	(2) if the district has indicated to the commissioner that the plan will be funded through 
804.9 	levy, the district may levy according to the schedule approved in the plan after reduction 
804.10 	for any aid receivable under subdivision 9; or
804.11 	(3) if the debt service revenue for a district required to pay the principal and interest on 
804.12 	bonds issued under subdivision 5 exceeds the district's long-term facilities maintenance 
804.13 	revenue for the same fiscal year, the district's general fund levy must be reduced by the 
804.14 	amount of the excess.
804.15 		Subd. 7.Long-term facilities maintenance equalization revenue. (a) For fiscal year 
804.16 	2017 only, a district's long-term facilities maintenance equalization revenue equals the lesser 
804.17 	of (1) $193 times the adjusted pupil units or (2) the district's revenue under subdivision 1.
804.18 	(b) (a) For fiscal year 2018 only, a district's long-term facilities maintenance equalization 
804.19 	revenue equals the lesser of: (1) $292 times the adjusted pupil units; or (2) the district's 
804.20 	revenue under subdivision 1.
804.21 	(c) (b) For fiscal year 2019 and later, a district's long-term facilities maintenance 
804.22 	equalization revenue equals the lesser of: (1) $380 times the adjusted pupil units; or (2) the 
804.23 	district's revenue under subdivision 1.
804.24 	(d) (c) Notwithstanding paragraphs (a) to (c) and (b), a district's long-term facilities 
804.25 	maintenance equalization revenue must not be less than the lesser of the district's long-term 
804.26 	facilities maintenance revenue or the amount of aid the district received for fiscal year 2015 
804.27 	under Minnesota Statutes 2014, section 123B.59, subdivision 6.
804.28 		Subd. 8.Long-term facilities maintenance equalized levy. (a) For fiscal year 2017 
804.29 	and later, A district's long-term facilities maintenance equalized levy equals the district's 
804.30 	long-term facilities maintenance equalization revenue minus the greater of:
804.31 	(1) the lesser of the district's long-term facilities maintenance equalization revenue or 
804.32 	the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014, 
804.33 	section 123B.59, subdivision 6; or
805.1 	(2) the district's long-term facilities maintenance equalization revenue times the greater 
805.2 	of (i) zero or (ii) one minus the ratio of its adjusted net tax capacity per adjusted pupil unit 
805.3 	in the year preceding the year the levy is certified to 123 percent of the state average adjusted 
805.4 	net tax capacity per adjusted pupil unit for all school districts in the year preceding the year 
805.5 	the levy is certified.
805.6 	(b) For purposes of this subdivision, "adjusted net tax capacity" means the value described 
805.7 	in section 126C.01, subdivision 2, paragraph (b).
805.8 		Subd. 8a.Long-term facilities maintenance unequalized levy. For fiscal year 2017 
805.9 	and later, A district's long-term facilities maintenance unequalized levy equals the difference 
805.10 	between the district's revenue under subdivision 1 and the district's equalization revenue 
805.11 	under subdivision 7.
805.12 		Subd. 9.Long-term facilities maintenance equalized aid. For fiscal year 2017 and 
805.13 	later, A district's long-term facilities maintenance equalized aid equals its long-term facilities 
805.14 	maintenance equalization revenue minus its long-term facilities maintenance equalized levy 
805.15 	times the ratio of the actual equalized amount levied to the permitted equalized levy.
805.16 		Subd. 10.Allowed uses for long-term facilities maintenance revenue. (a) A district 
805.17 	may use revenue under this section for any of the following:
805.18 	(1) deferred capital expenditures and maintenance projects necessary to prevent further 
805.19 	erosion of facilities;
805.20 	(2) increasing accessibility of school facilities;
805.21 	(3) health and safety capital projects under section 123B.57;
805.22 	(4) school safety facility enhancements authorized under subdivision 4a; or
805.23 	(4) (5) by board resolution, to transfer money from the general fund reserve for long-term 
805.24 	facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when 
805.25 	due, principal and interest on general obligation bonds issued under subdivision 5.
805.26 	(b) A charter school may use revenue under this section for any purpose related to the 
805.27 	school, including school safety facility enhancements.
805.28 		Subd. 11.Restrictions on long-term facilities maintenance revenue. Notwithstanding 
805.29 	subdivision 10, for projects other than school safety facility enhancements authorized under 
805.30 	subdivision 4a, long-term facilities maintenance revenue may not be used:
805.31 	(1) for the construction of new facilities, remodeling of existing facilities, or the purchase 
805.32 	of portable classrooms;
806.1 	(2) to finance a lease purchase agreement, installment purchase agreement, or other 
806.2 	deferred payments agreement;
806.3 	(3) for energy-efficiency projects under section 123B.65, for a building or property or 
806.4 	part of a building or property used for postsecondary instruction or administration, or for a 
806.5 	purpose unrelated to elementary and secondary education; or
806.6 	(4) for violence prevention and facility security, ergonomics, or emergency 
806.7 	communication devices.
806.8 		Subd. 12.Reserve account. The portion of long-term facilities maintenance revenue 
806.9 	not recognized under subdivision 5, paragraph (c), must be maintained in a reserve account 
806.10 	within the general fund.

806.11 	Sec. 4. Minnesota Statutes 2016, section 123B.61, is amended to read:
806.12 	123B.61 PURCHASE OF CERTAIN EQUIPMENT.
806.13 	(a) The board of a district may issue general obligation certificates of indebtedness or 
806.14 	capital notes subject to the district debt limits to:
806.15 	(a) (1) purchase vehicles, computers, telephone systems, cable equipment, photocopy 
806.16 	and office equipment, technological equipment for instruction, public announcement systems, 
806.17 	emergency communications devices, other equipment related to violence prevention and 
806.18 	facility security, and other capital equipment having an expected useful life at least as long 
806.19 	as the terms of the certificates or notes;
806.20 	(b) (2) purchase computer hardware and software, without regard to its expected useful 
806.21 	life, whether bundled with machinery or equipment or unbundled, together with application 
806.22 	development services and training related to the use of the computer; and
806.23 	(c) (3) prepay special assessments.
806.24 	(b) The certificates or notes must be payable in not more than ten years and must be 
806.25 	issued on the terms and in the manner determined by the board, except that certificates or 
806.26 	notes issued to prepay special assessments must be payable in not more than 20 years. The 
806.27 	certificates or notes may be issued by resolution and without the requirement for an election. 
806.28 	The certificates or notes are general obligation bonds for purposes of section 126C.55.
806.29 	(c) A tax levy must be made for the payment of the principal and interest on the 
806.30 	certificates or notes, in accordance with section 475.61, as in the case of bonds. The sum 
806.31 	of the tax levies under this section and section 123B.62 for each year must not exceed the 
806.32 	lesser of the sum of the amount of the district's total operating capital revenue and safe 
807.1 	schools revenue or the sum of the district's levy in the general and community service funds 
807.2 	excluding the adjustments under this section for the year preceding the year the initial debt 
807.3 	service levies are certified.
807.4 	(d) The district's general fund levy for each year must be reduced by the sum of:
807.5 	(1) the amount of the tax levies for debt service certified for each year for payment of 
807.6 	the principal and interest on the certificates or notes issued under this section as required 
807.7 	by section 475.61,;
807.8 	(2) the amount of the tax levies for debt service certified for each year for payment of 
807.9 	the principal and interest on bonds issued under section 123B.62,; and
807.10 	(3) any excess amount in the debt redemption fund used to retire bonds, certificates, or 
807.11 	notes issued under this section or section 123B.62 after April 1, 1997, other than amounts 
807.12 	used to pay capitalized interest.
807.13 	(e) If the district's general fund levy is less than the amount of the reduction, the balance 
807.14 	shall be deducted first from the district's community service fund levy, and next from the 
807.15 	district's general fund or community service fund levies for the following year.
807.16 	(f) A district using an excess amount in the debt redemption fund to retire the certificates 
807.17 	or notes shall report the amount used for this purpose to the commissioner by July 15 of the 
807.18 	following fiscal year. A district having an outstanding capital loan under section 126C.69 
807.19 	or an outstanding debt service loan under section 126C.68 must not use an excess amount 
807.20 	in the debt redemption fund to retire the certificates or notes.

807.21 	EFFECTIVE DATE. This section is effective July 1, 2018.

807.22 	Sec. 5. Minnesota Statutes 2016, section 126C.44, is amended to read:
807.23 	126C.44 SAFE SCHOOLS LEVY REVENUE.
807.24 		Subdivision 1.Safe schools revenue. (a) A school district's total safe schools revenue 
807.25 	equals the sum of:
807.26 	(1) the greater of: (i) $30,000; or (ii) $54 per adjusted pupil unit for fiscal year 2019 or 
807.27 	$41.50 per adjusted pupil unit for fiscal year 2020 and later;
807.28 	(2) the amounts under subdivision 7; and
807.29 	(3) for a district not accessing revenue under subdivision 7, the amount under subdivision 
807.30 	8.
808.1 	(b) A charter school's safe schools revenue equals $18 times its adjusted pupil units for 
808.2 	fiscal year 2019 and $5.50 times its adjusted pupil units for fiscal year 2020 and later. The 
808.3 	revenue must be reserved and used only for costs associated with safe schools activities 
808.4 	authorized under subdivision 6, paragraph (a), clauses (1) to (9), or for building lease 
808.5 	expenses not funded by charter school building lease aid  that are attributable to facility 
808.6 	security enhancements made by the landlord after March 1, 2018.
808.7 		Subd. 2.Equalized safe schools revenue. A school district's equalized safe schools 
808.8 	revenue equals $36 times the district's adjusted pupil units for that year.
808.9 		Subd. 3.Safe schools equalized levy. (a) Each district may make a levy on all taxable 
808.10 	property located within the district for the purposes specified in this section. The maximum 
808.11 	amount which may be levied for all costs under this section shall be equal to $36 multiplied 
808.12 	by the district's For fiscal years 2020 and 2021 only, a school district's safe schools equalized 
808.13 	levy equals the product of its equalized safe schools revenue under subdivision 2 times the 
808.14 	lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil units for the 
808.15 	school year unit to 68.5 percent of the statewide adjusted net tax capacity equalizing factor.
808.16 	(b) For fiscal year 2022 and later, a school district's safe schools equalized levy equals 
808.17 	its equalized safe schools revenue.
808.18 		Subd. 4.Safe schools aid. (a) A school district's safe schools aid equals the sum of:
808.19 	(1) the greater of (i) the district's revenue under subdivision 1, paragraph (a), clause (1), 
808.20 	minus the district's equalized safe schools revenue under subdivision 2, or (ii) $18 times its 
808.21 	adjusted pupil units for fiscal year 2019 and $5.50 times its adjusted pupil units for fiscal 
808.22 	year 2020 and later;
808.23 	(2) its safe schools equalization aid equal to: (i) the difference between its safe schools 
808.24 	equalized revenue minus its safe schools equalized levy; times (ii) the ratio of the actual 
808.25 	amount levied to the permitted levy under subdivision 3;
808.26 	(3) its intermediate school district aid under subdivision 7; and
808.27 	(4) its cooperative unit aid under subdivision 8.
808.28 	(b) A charter school's safe schools aid equals its safe schools revenue.
808.29 	(c) For fiscal year 2019 only, a district's aid under this subdivision is increased by the 
808.30 	greater of (1) zero or (2) $30,000 minus the district's aid under paragraph (a), clause (1), 
808.31 	minus the safe schools levy certified by the district for taxes payable in 2018.
809.1 		Subd. 5.Revenue reserved. The proceeds of the levy A school district's safe schools 
809.2 	revenue must be reserved and used for directly funding the following purposes or for 
809.3 	reimbursing the cities and counties who contract with the district for the following purposes:
809.4 	authorized in subdivision 6.
809.5 		Subd. 6.Revenue uses. (a) A school district must use its safe schools revenue for the 
809.6 	following:
809.7 	(1) to pay the costs incurred for the salaries, benefits, and transportation costs of peace 
809.8 	officers and sheriffs for liaison in services in the district's schools, whether through contract 
809.9 	or reimbursement to the city or county employing authority;
809.10 	(2) to pay the costs for a drug abuse prevention program as defined in section 609.101, 
809.11 	subdivision 3, paragraph (e), in the elementary schools;
809.12 	(3) to pay the costs for a gang resistance education training curriculum in the district's 
809.13 	schools;
809.14 	(4) to pay the costs for security in the district's schools and on school property;
809.15 	(5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 
809.16 	voluntary opt-in suicide prevention tools, and violence prevention measures taken by the 
809.17 	school district;
809.18 	(6) to pay costs for licensed school counselors, licensed school nurses, licensed school 
809.19 	social workers, licensed school psychologists, and licensed alcohol and chemical dependency 
809.20 	counselors to help provide early responses to problems;
809.21 	(7) to pay for facility security enhancements including laminated glass, public 
809.22 	announcement systems, emergency communications devices, and equipment and facility 
809.23 	modifications related to violence prevention and facility security;
809.24 	(8) to pay for costs associated with improving the school climate; or
809.25 	(9) to pay costs for colocating and collaborating with mental health professionals who 
809.26 	are not district employees or contractors.; or
809.27 	(10) by board resolution, to transfer money into the debt redemption fund to pay the 
809.28 	amounts needed to meet, when due, principal and interest payments on obligations issued 
809.29 	under sections 123B.61 and 123B.62 for purposes included in clause (7).
809.30 	(b) For expenditures under paragraph (a), clause (1), the district must initially attempt 
809.31 	to contract for services to be provided by peace officers or sheriffs with the police department 
809.32 	of each city or the sheriff's department of the county within the district containing the school 
810.1 	receiving the services. If a local police department or a county sheriff's department does 
810.2 	not wish to provide the necessary services, the district may contract for these services with 
810.3 	any other police or sheriff's department located entirely or partially within the school district's 
810.4 	boundaries.
810.5 		Subd. 7.Intermediate school districts. (c) (a) A school district that is a member of an 
810.6 	intermediate school district may include in add to its levy authority under this section the 
810.7 	costs associated with safe schools activities authorized under paragraph (a) subdivision 6
810.8 	for intermediate school district programs. This levy authority must not exceed $15 times 
810.9 	the adjusted pupil units of the member districts. This levy authority is in addition to any 
810.10 	other authority authorized under this section. Revenue raised under this paragraph subdivision
810.11 	must be transferred to the intermediate school district.
810.12 	(b) For fiscal year 2019 only, a school district that is a member of an intermediate school 
810.13 	district is eligible for additional safe schools aid equal to $6 times its adjusted pupil units 
810.14 	for that year.
810.15 		Subd. 8.Other cooperative units. A school district that is a member of a cooperative 
810.16 	unit defined under section 123A.24, subdivision 2, that enrolls students other than a member 
810.17 	of an intermediate school district, is eligible for additional safe schools aid equal to $7.50 
810.18 	times its adjusted pupil units for fiscal year 2019 and $3.50 times its adjusted pupil units 
810.19 	for fiscal year 2020 and later. Revenue raised under this subdivision must be transferred to 
810.20 	the cooperative unit.
810.21 		Subd. 9.Reporting. A school district or charter school receiving revenue under this 
810.22 	section must annually report safe schools expenditures to the commissioner, in the form 
810.23 	and manner specified by the commissioner. The report must include spending by functional 
810.24 	area and any new staff positions hired and align with the revenue uses according to 
810.25 	subdivision 6.

810.26 	EFFECTIVE DATE. This section is effective for fiscal year 2019 and later.

810.27 	Sec. 6. Minnesota Statutes 2017 Supplement, section 245.4889, subdivision 1, is amended 
810.28 	to read:
810.29 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized to 
810.30 	make grants from available appropriations to assist:
810.31 	(1) counties;
810.32 	(2) Indian tribes;
811.1 	(3) children's collaboratives under section 124D.23 or 245.493; or
811.2 	(4) mental health service providers.
811.3 	(b) The following services are eligible for grants under this section:
811.4 	(1) services to children with emotional disturbances as defined in section 245.4871, 
811.5 	subdivision 15, and their families;
811.6 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
811.7 	age 21 and their families;
811.8 	(3) respite care services for children with severe emotional disturbances who are at risk 
811.9 	of out-of-home placement;
811.10 	(4) children's mental health crisis services;
811.11 	(5) mental health services for people from cultural and ethnic minorities;
811.12 	(6) children's mental health screening and follow-up diagnostic assessment and treatment;
811.13 	(7) services to promote and develop the capacity of providers to use evidence-based 
811.14 	practices in providing children's mental health services;
811.15 	(8) school-linked mental health services, including transportation for children receiving 
811.16 	school-linked mental health services when school is not in session;
811.17 	(9) building evidence-based mental health intervention capacity for children birth to age 
811.18 	five;
811.19 	(10) suicide prevention and counseling services that use text messaging statewide;
811.20 	(11) mental health first aid training;
811.21 	(12) training for parents, collaborative partners, and mental health providers on the 
811.22 	impact of adverse childhood experiences and trauma and development of an interactive 
811.23 	Web site to share information and strategies to promote resilience and prevent trauma;
811.24 	(13) transition age services to develop or expand mental health treatment and supports 
811.25 	for adolescents and young adults 26 years of age or younger;
811.26 	(14) early childhood mental health consultation;
811.27 	(15) evidence-based interventions for youth at risk of developing or experiencing a first 
811.28 	episode of psychosis, and a public awareness campaign on the signs and symptoms of 
811.29 	psychosis;
811.30 	(16) psychiatric consultation for primary care practitioners; and
812.1 	(17) providers to begin operations and meet program requirements when establishing a 
812.2 	new children's mental health program. These may be start-up grants.
812.3 	(c) Services under paragraph (b) must be designed to help each child to function and 
812.4 	remain with the child's family in the community and delivered consistent with the child's 
812.5 	treatment plan. Transition services to eligible young adults under this paragraph must be 
812.6 	designed to foster independent living in the community.
812.7 	(d) As a condition of receiving grant funds, a grantee must obtain all available third-party 
812.8 	reimbursement sources, if applicable.

812.9 	Sec. 7. Minnesota Statutes 2016, section 245.4889, is amended by adding a subdivision 
812.10 	to read:
812.11 		Subd. 1a.School-linked mental health services grants. (a) An eligible applicant for 
812.12 	school-linked mental health services grants under subdivision 1, paragraph (b), clause (8), 
812.13 	is an entity that is:
812.14 	(1) certified under Minnesota Rules, parts 9520.0750 to 9520.0870;
812.15 	(2) a community mental health center under section 256B.0625, subdivision 5;
812.16 	(3) an Indian health service facility or facility owned and operated by a tribe or tribal 
812.17 	organization operating under United States Code, title 25, section 5321;
812.18 	(4) a provider of children's therapeutic services and supports as defined in section 
812.19 	256B.0943; or
812.20 	(5) enrolled in medical assistance as a mental health or substance use disorder provider 
812.21 	agency and employs at least two full-time equivalent mental health professionals as defined 
812.22 	in section 245.4871, subdivision 27, clauses (1) to (6), or two alcohol and drug counselors 
812.23 	licensed or exempt from licensure under chapter 148F who are qualified to provide clinical 
812.24 	services to children and families.
812.25 	(b) Allowable grant expenses include transportation for children receiving school-linked 
812.26 	mental health services when school is not in session, and may be used to purchase equipment, 
812.27 	connection charges, on-site coordination, set-up fees, and site fees in order to deliver 
812.28 	school-linked mental health services defined in subdivision 1a, via telemedicine consistent 
812.29 	with section 256B.0625, subdivision 3b.

813.1 	Sec. 8. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 34, 
813.2 	is amended to read:
813.3 		Subd. 34.Sanneh Foundation. (a) For a grant to the Sanneh Foundation to provide 
813.4 	all-day, in-school, and before- and after-school academic and behavioral interventions for 
813.5 	low-performing and chronically absent students with a focus on low-income students and 
813.6 	students of color throughout the school year and during the summer to decrease absenteeism, 
813.7 	encourage school engagement, and improve grades and graduation rates.

813.8		$
	1,000,000
	.....
	2018
	
813.9		$
	250,000
	.....
	2019
	
813.10 	(b) Funds appropriated in this section for fiscal year 2018 must be used to establish and 
813.11 	provide services in schools where the Sanneh Foundation does not currently operate, and 
813.12 	must not be used for programs operating in schools as of June 30, 2017. Funds appropriated 
813.13 	for fiscal year 2019 may be used to provide services under paragraph (a) in any school.
813.14 	(c) For the fiscal year 2019 appropriation only, up to three percent is for administering 
813.15 	the grant. This is a onetime appropriation. Any balance in the first year does not cancel but 
813.16 	is available in the second year.

813.17 	Sec. 9. APPROPRIATIONS.
 813.18 		Subdivision 1.Commissioner of education. The sums indicated in this section are 
813.19 	appropriated from the general fund to the commissioner of education for the specified 
813.20 	purposes.
813.21 		Subd. 2.Safe schools aid. (a) For safe schools aid under Minnesota Statutes, section 
813.22 	126C.44:

813.23		$
	19,919,000
	.....
	2019
	
813.24 	(b) The 2019 appropriation includes $0 for 2018 and $19,919,000 for 2019.
813.25 		Subd. 3.Children's school-linked mental health grants. (a) For transfer to the 
813.26 	commissioner of human services for children's school-linked mental health grants under 
813.27 	Minnesota Statutes, section 245.4889, subdivision 1, paragraph (b), clause (8), including 
813.28 	the delivery of school-linked mental health services by telemedicine:

813.29		$
	5,120,000
	.....
	2019
	
813.30 	(b) The commissioner's administrative expenses are $343,000 in fiscal year 2019 and 
813.31 	$381,000 in fiscal year 2020 and later.
813.32 	(c) The base for fiscal year 2020 is $5,133,000.
814.1 		Subd. 4.Physical security audit grants for public schools. (a) For transfer to the 
814.2 	commissioner of public safety for grants to school districts and charter schools to reimburse 
814.3 	applicants for up to 100 percent of the cost for an audit of the physical security of public 
814.4 	school campuses and crisis management policies adopted pursuant to Minnesota Statutes, 
814.5 	section 121A.035, subdivision 2:

814.6		$
	1,000,000
	.....
	2019
	
814.7 	(b) The commissioner of public safety must establish specific eligibility and application 
814.8 	criteria including a requirement that audits be conducted by consultants holding professional 
814.9 	certification deemed acceptable by the commissioner, including but not limited to a Certified 
814.10 	Protection Professional certification from the American Society for Industrial Security.
814.11 	(c) Of this amount, up to $90,000 is for administering the grant. This is a onetime 
814.12 	appropriation and is available until June 30, 2021.
814.13 		Subd. 5.School resource officer training grants. (a) For grants to reimburse school 
814.14 	districts and charter schools for up to one-half of the costs of school resource officer training:

814.15		$
	250,000
	.....
	2019
	
814.16 	(b) The commissioner and the director of the Minnesota School Safety Center are 
814.17 	encouraged to develop school resource officer training guidelines and provide school districts 
814.18 	and charter schools a list of approved school resource officer training programs.
814.19 	(c) A district or charter school seeking a grant under this subdivision must submit an 
814.20 	application in the form and manner specified by the commissioner of education. 
814.21 	Reimbursement must not exceed $500 per officer. The commissioner must prorate grant 
814.22 	amounts if the appropriation is insufficient to fully fund the state's share of the training.
814.23 	(d) A recipient school district or charter school and the local law enforcement agency 
814.24 	must enter into an agreement to pay for the remaining training costs for school resource 
814.25 	officer training. The school district or charter school and the law enforcement agency may 
814.26 	seek private funds to pay for the local share of the school resource officer training costs.
814.27 	(e) Of this amount, up to three percent is for administering the grant. This is a onetime 
814.28 	appropriation and is available until June 30, 2021.
814.29 		Subd. 6.Safety assessment grants. (a) For grants to school districts for training for 
814.30 	members of safety assessment teams and oversight committees under Minnesota Statutes, 
814.31 	section 121A.35:

814.32		$
	150,000
	.....
	2019
	
815.1 	(b) The commissioner and the director of the Minnesota School Safety Center are 
815.2 	encouraged to develop safety assessment training guidelines and provide school districts a 
815.3 	list of approved safety assessment training programs.
815.4 	(c) Of this amount, up to three percent is for administering the grant. This is a onetime 
815.5 	appropriation.
815.6 	(d) The fiscal year 2019 appropriation is available until June 30, 2021. Any remaining 
815.7 	balance is canceled to the general fund.
815.8 		Subd. 7.Suicide prevention training for teachers. (a) For a grant to a nationally 
815.9 	recognized organization to offer evidence-based online training for teachers on suicide 
815.10 	prevention and engaging students experiencing mental distress:

815.11		$
	273,000
	.....
	2019
	
815.12 	(b) Of this amount, up to three percent is for administering the grant. This is a onetime 
815.13 	appropriation and is available until June 30, 2021.
815.14 	(c) The recipient of the suicide prevention training grant under this subdivision must 
815.15 	make the training accessible to all Minnesota school districts, cooperative units defined 
815.16 	under Minnesota Statutes, section 123A.24, subdivision 2, tribal schools, and charter schools.
815.17 		Subd. 8.Incentive grants for character development education.  (a) For incentive 
815.18 	grants to public schools and charter schools that offer the Congressional Medal of Honor 
815.19 	character development program:

815.20		$
	190,000
	.....
	2019
	
815.21 	(b) The commissioner must award grants to public schools and charter schools that 
815.22 	demonstrate use of the Congressional Medal of Honor character development program. The 
815.23 	commissioner must allocate the appropriation proportionally among the public schools and 
815.24 	charter schools that apply, not to exceed $5,000 per school per fiscal year. If the entire 
815.25 	appropriation is not expended in fiscal year 2019, the commissioner must award additional 
815.26 	grants in fiscal years 2020 and 2021. The grant award may be used for any school-related 
815.27 	purpose consistent with Minnesota Statutes, section 120B.232.
815.28 	(c) Of this amount, up to three percent is for administering the grant. This is a onetime 
815.29 	appropriation and is available until June 30, 2021.

816.1 	ARTICLE 47
816.2 	GENERAL EDUCATION

816.3 	Section 1. Minnesota Statutes 2017 Supplement, section 123B.41, subdivision 2, is amended 
816.4 	to read:
816.5 		Subd. 2.Textbook. (a) "Textbook" means any book or book substitute, including 
816.6 	electronic books as well as other printed materials delivered electronically, which a pupil 
816.7 	uses as a text or text substitute in a particular class or program in the school regularly 
816.8 	attended and a copy of which is expected to be available for the individual use of each pupil 
816.9 	in this class or program. Textbook includes an online book with an annual subscription cost.
816.10 	Textbook includes teacher materials that accompany materials that a pupil uses.
816.11 	(b) For purposes of calculating the annual nonpublic pupil aid entitlement for textbooks, 
816.12 	the term shall be limited to books, workbooks, or manuals, whether bound or in loose-leaf 
816.13 	form, as well as electronic books and other printed materials delivered electronically, 
816.14 	intended for use as a principal source of study material for a given class or a group of 
816.15 	students.
816.16 	(c) For purposes of sections 123B.40 to 123B.48, the terms "textbook" and "software 
816.17 	or other educational technology" include only such secular, neutral, and nonideological 
816.18 	materials as are available, used by, or of benefit to Minnesota public school pupils.

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

816.20 	Sec. 2. Minnesota Statutes 2016, section 123B.41, subdivision 5, is amended to read:
816.21 		Subd. 5.Individualized instructional or cooperative learning materials. (a) 
816.22 	"Individualized instructional or cooperative learning materials" means educational materials 
816.23 	which:
816.24 	(a) (1) are designed primarily for individual pupil use or use by pupils in a cooperative 
816.25 	learning group in a particular class or program in the school the pupil regularly attends, 
816.26 	including teacher materials that accompany materials that a pupil uses;
816.27 	(b) (2) are secular, neutral, nonideological and not capable of diversion for religious 
816.28 	use; and
816.29 	(c) (3) are available, used by, or of benefit to Minnesota public school pupils.
816.30 	(b) Subject to the requirements in paragraph (a), clauses (a) (1), (b) (2), and (c) (3), 
816.31 	"individualized instructional or cooperative learning materials" include, but are not limited 
817.1 	to, the following if they do not fall within the definition of "textbook" in subdivision 2: 
817.2 	published materials; periodicals; documents; pamphlets; photographs; reproductions; pictorial 
817.3 	or graphic works; prerecorded video programs; prerecorded tapes, cassettes and other sound 
817.4 	recordings; manipulative materials; desk charts; games; study prints and pictures; desk 
817.5 	maps; models; learning kits; blocks or cubes; flash cards; individualized multimedia systems; 
817.6 	prepared instructional computer software programs; choral and band sheet music; electronic 
817.7 	books and other printed materials delivered electronically; and CD-Rom.
817.8 	(c) "Individualized instructional or cooperative learning materials" do not include 
817.9 	instructional equipment, instructional hardware, or ordinary daily consumable classroom 
817.10 	supplies.

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

817.12 	Sec. 3. Minnesota Statutes 2016, section 123B.42, subdivision 3, is amended to read:
817.13 		Subd. 3.Cost; limitation. (a) The cost per pupil of the textbooks, individualized 
817.14 	instructional or cooperative learning materials, software or other educational technology, 
817.15 	and standardized tests provided for in this section for each school year must not exceed the 
817.16 	statewide average expenditure per pupil, adjusted pursuant to clause paragraph (b), by the 
817.17 	Minnesota public elementary and secondary schools for textbooks, individualized 
817.18 	instructional materials and standardized tests as computed and established by the department 
817.19 	by February 1 of the preceding school year from the most recent public school year data 
817.20 	then available.
817.21 	(b) The cost computed in clause paragraph (a) shall be increased by an inflation 
817.22 	adjustment equal to the percent of increase in the formula allowance, pursuant to section 
817.23 	126C.10, subdivision 2, from the second preceding school year to the current school year. 
817.24 	Notwithstanding the amount of the formula allowance for fiscal years 2015 and 2016 in 
817.25 	section 126C.10, subdivision 2, the commissioner shall use the amount of the formula 
817.26 	allowance for the current year minus $414 in determining the inflation adjustment for fiscal 
817.27 	years 2015 and 2016.
817.28 	(c) The commissioner shall allot to the districts or intermediary service areas the total 
817.29 	cost for each school year of providing or loaning the textbooks, individualized instructional 
817.30 	or cooperative learning materials, software or other educational technology, and standardized 
817.31 	tests for the pupils in each nonpublic school. The allotment shall not exceed the product of 
817.32 	the statewide average expenditure per pupil, according to clause paragraph (a), adjusted 
817.33 	pursuant to clause paragraph (b), multiplied by the number of nonpublic school pupils who 
818.1 	make requests pursuant to this section and who are enrolled as of September 15 of the current 
818.2 	school year.

818.3 	Sec. 4. Minnesota Statutes 2017 Supplement, section 124D.09, subdivision 3, is amended 
818.4 	to read:
818.5 		Subd. 3.Definitions. For purposes of this section, the following terms have the meanings 
818.6 	given to them.
818.7 	(a) "Eligible institution" means a Minnesota public postsecondary institution, a private, 
818.8 	nonprofit two-year trade and technical school granting associate degrees, an opportunities 
818.9 	industrialization center accredited by theNorth Central Association of Colleges and Schools
818.10 	an accreditor recognized by the United States Department of Education, or a private, 
818.11 	residential, two-year or four-year, liberal arts, degree-granting college or university located 
818.12 	in Minnesota.
818.13 	(b) "Course" means a course or program.
818.14 	(c) "Concurrent enrollment" means nonsectarian courses in which an eligible pupil under 
818.15 	subdivision 5 or 5b enrolls to earn both secondary and postsecondary credits, are taught by 
818.16 	a secondary teacher or a postsecondary faculty member, and are offered at a high school 
818.17 	for which the district is eligible to receive concurrent enrollment program aid under section 
818.18 	124D.091.

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

818.20 	Sec. 5. Minnesota Statutes 2016, section 124D.09, subdivision 4, is amended to read:
818.21 		Subd. 4.Alternative pupil. (a) "Alternative pupil" means an a 10th, 11th, or 12th grade 
818.22 	student, subject to paragraph (b), who is not enrolled in a public school district, and includes. 
818.23 	Alternative pupil includes students attending nonpublic schools and students who are home 
818.24 	schooled. An alternative pupil is considered a pupil for purposes of this section only. An 
818.25 	alternative pupil must register with the commissioner of education before participating in 
818.26 	the postsecondary enrollment options program. The commissioner shall must prescribe the 
818.27 	form and manner of the registration, in consultation with the Nonpublic Education Council 
818.28 	under section 123B.445, and may request any necessary information from the alternative 
818.29 	pupil.
818.30 	(b) A 10th grade student qualifies as an alternative pupil if the student: (1) is enrolled 
818.31 	in a career or technical education course offered by an eligible institution; and (2) received 
818.32 	a passing score on the 8th grade Minnesota Comprehensive Assessment, or another reading 
819.1 	assessment accepted by the enrolling postsecondary institution. A career or technical 
819.2 	education course must meet the requirements under subdivision 5a. If an alternative pupil 
819.3 	in 10th grade receives a grade of "C" or better in the career or technical education course 
819.4 	taken under this subdivision, the postsecondary institution must allow the student to take 
819.5 	additional postsecondary courses for credit at that institution, not to exceed the limits in 
819.6 	subdivision 8.

819.7 	EFFECTIVE DATE. This section is effective for applications submitted on or after 
819.8 	July 1, 2018.

819.9 	Sec. 6. Minnesota Statutes 2017 Supplement, section 124D.68, subdivision 2, is amended 
819.10 	to read:
819.11 		Subd. 2.Eligible pupils. (a) A pupil under the age of 21 or who meets the requirements 
819.12 	of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in the graduation 
819.13 	incentives program, if the pupil:
819.14 	(1) performs substantially below the performance level for pupils of the same age in a 
819.15 	locally determined achievement test;
819.16 	(2) is behind in satisfactorily completing coursework or obtaining credits for graduation;
819.17 	(3) is pregnant or is a parent;
819.18 	(4) has been assessed as chemically dependent;
819.19 	(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
819.20 	(6) has been referred by a school district for enrollment in an eligible program or a 
819.21 	program pursuant to section 124D.69;
819.22 	(7) is a victim of physical or sexual abuse;
819.23 	(8) has experienced mental health problems;
819.24 	(9) has experienced homelessness sometime within six months before requesting a 
819.25 	transfer to an eligible program;
819.26 	(10) speaks English as a second language or is an English learner; or
819.27 	(11) has withdrawn from school or has been chronically truant; or
819.28 	(12) is being treated in a hospital in the seven-county metropolitan area for cancer or 
819.29 	other life threatening illness or is the sibling of an eligible pupil who is being currently 
819.30 	treated, and resides with the pupil's family at least 60 miles beyond the outside boundary 
819.31 	of the seven-county metropolitan area.
820.1 	(b) For fiscal years 2017 and, 2018, and 2019 only, a pupil otherwise qualifying under 
820.2 	paragraph (a) who is at least 21 years of age and not yet 22 years of age, is an English learner 
820.3 	with an interrupted formal education according to section 124D.59, subdivision 2a, and was 
820.4 	in an early middle college program during the previous school year is eligible to participate 
820.5 	in the graduation incentives program under section 124D.68 and in concurrent enrollment 
820.6 	courses offered under section 124D.09, subdivision 10, and is funded in the same manner 
820.7 	as other pupils under this section.

820.8 	EFFECTIVE DATE. This section is effective July 1, 2018.

820.9 	Sec. 7. Minnesota Statutes 2016, section 124E.20, subdivision 1, is amended to read:
820.10 		Subdivision 1.Revenue calculation. (a) General education revenue must be paid to a 
820.11 	charter school as though it were a district. The general education revenue for each adjusted 
820.12 	pupil unit is the state average general education revenue per pupil unit, plus the referendum 
820.13 	equalization aid allowance and first tier local optional aid allowance in the pupil's district 
820.14 	of residence, minus an amount equal to the product of the formula allowance according to 
820.15 	section 126C.10, subdivision 2, times .0466, calculated without declining enrollment revenue, 
820.16 	local optional revenue, basic skills revenue, extended time revenue, pension adjustment 
820.17 	revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment 
820.18 	revenue, basic skills revenue, pension adjustment revenue, and transition revenue as though 
820.19 	the school were a school district.
820.20 	(b) For a charter school operating an extended day, extended week, or summer program, 
820.21 	the general education revenue in paragraph (a) is increased by an amount equal to 25 percent 
820.22 	of the statewide average extended time revenue per adjusted pupil unit.
820.23 	(c) Notwithstanding paragraph (a), the general education revenue for an eligible special 
820.24 	education charter school as defined in section 124E.21, subdivision 2, equals the sum of 
820.25 	the amount determined under paragraph (a) and the school's unreimbursed cost as defined 
820.26 	in section 124E.21, subdivision 2, for educating students not eligible for special education 
820.27 	services.

820.28 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2020 and later.

820.29 	Sec. 8. Minnesota Statutes 2016, section 126C.10, subdivision 2e, is amended to read:
820.30 		Subd. 2e.Local optional revenue. (a) For fiscal year 2019, local optional revenue for 
820.31 	a school district equals $424 times the adjusted pupil units of the district for that school 
820.32 	year. For fiscal year 2020 and later, local optional revenue for a school district equals the 
821.1 	sum of the district's first tier local optional revenue and second tier local optional revenue. 
821.2 	A district's first tier local optional revenue equals $300 times the adjusted pupil units of the 
821.3 	district for that school year. A district's second tier local optional revenue equals $424 times 
821.4 	the adjusted pupil units of the district for that school year.
821.5 	(b) For fiscal year 2019, a district's local optional levy equals its local optional revenue 
821.6 	times the lesser of one or the ratio of its referendum market value per resident pupil unit to 
821.7 	$510,000. For fiscal year 2020 and later, a district's local optional levy equals the sum of 
821.8 	the first tier local optional levy and the second tier local optional levy. A district's first tier 
821.9 	local optional levy equals the district's first tier local optional revenue times the lesser of 
821.10 	one or the ratio of the district's referendum market value per resident pupil unit to $880,000. 
821.11 	A district's second tier local optional levy equals the district's second tier local optional 
821.12 	revenue times the lesser of one or the ratio of the district's referendum market value per 
821.13 	resident pupil unit to $510,000. The local optional revenue levy must be spread on referendum 
821.14 	market value. A district may levy less than the permitted amount.
821.15 	(c) A district's local optional aid equals its local optional revenue less minus its local 
821.16 	optional levy, times the ratio of the actual amount levied to the permitted levy. If a district's 
821.17 	actual levy for first or second tier local optional revenue is less than its maximum levy limit 
821.18 	for that tier, its aid must be proportionately reduced.

821.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2020 and later.

821.20 	Sec. 9. Minnesota Statutes 2016, section 126C.10, subdivision 24, is amended to read:
821.21 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
821.22 	(1) the school district's adjusted pupil unit amount of basic revenue, transition revenue, 
821.23 	first tier local optional revenue, and referendum revenue is less than the value of the school 
821.24 	district at or immediately above the 95th percentile of school districts in its equity region 
821.25 	for those revenue categories; and
821.26 	(2) the school district's administrative offices are not located in a city of the first class 
821.27 	on July 1, 1999.
821.28 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
821.29 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil units 
821.30 	for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's equity 
821.31 	index computed under subdivision 27.
822.1 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
822.2 	under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil units 
822.3 	for that year times $14.
822.4 	(d) (c) A school district's equity revenue is increased by the greater of zero or an amount 
822.5 	equal to the district's adjusted pupil units times the difference between ten percent of the 
822.6 	statewide average amount of referendum revenue and first tier local optional revenue per 
822.7 	adjusted pupil unit for that year and the sum of the district's referendum revenue and first 
822.8 	tier local optional revenue per adjusted pupil unit. A school district's revenue under this 
822.9 	paragraph must not exceed $100,000 for that year.
822.10 	(e) (d) A school district's equity revenue for a school district located in the metro equity 
822.11 	region equals the amount computed in paragraphs (b),and (c), and (d) multiplied by 1.25.
822.12 	(f) (e) For fiscal years 2017, 2018, and 2019 for a school district not included in paragraph 
822.13 	(e) (d), a district's equity revenue equals the amount computed in paragraphs (b), and (c), 
822.14 	and (d) multiplied by 1.16. For fiscal year 2020 and later for a school district not included 
822.15 	in paragraph (e) (d), a district's equity revenue equals the amount computed in paragraphs 
822.16 	(b), and (c), and (d) multiplied by 1.25.
822.17 	(g) (f) A school district's additional equity revenue equals $50 times its adjusted pupil 
822.18 	units.

822.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2020 and later.

822.20 	Sec. 10. Minnesota Statutes 2016, section 126C.15, subdivision 5, is amended to read:
822.21 		Subd. 5.Annual expenditure report. (a) Each year, a district that receives basic skills 
822.22 	revenue must submit a report to the commissioner of education identifying the expenditures 
822.23 	it incurred to meet the needs of eligible learners under subdivision 1.
822.24 	(b) The report must:
822.25 	(1) conform to uniform financial and reporting standards established for this purpose.;
822.26 	(2) categorize expenditures by each of the permitted uses authorized in subdivision 1, 
822.27 	in the form and manner specified by the commissioner; and
822.28 	(3) report under section 120B.11, using valid and reliable data and measurement criteria, 
822.29 	the report also must determine whether increased expenditures raised student achievement 
822.30 	levels.

822.31 	EFFECTIVE DATE. This section is effective for reports issued after July 1, 2018.

823.1 	Sec. 11. Minnesota Statutes 2016, section 126C.15, is amended by adding a subdivision 
823.2 	to read:
823.3 		Subd. 6.Commissioner's report. By February 15 of each year, the commissioner shall 
823.4 	compile the district data submitted under subdivision 5, report the results to the legislative 
823.5 	committees with jurisdiction over education, and file the report according to section 3.195.

823.6 	EFFECTIVE DATE. This section is effective July 1, 2018.

823.7 	Sec. 12. Minnesota Statutes 2016, section 126C.17, subdivision 1, is amended to read:
823.8 		Subdivision 1.Referendum allowance. (a) A district's initial referendum allowance for 
823.9 	fiscal year 2020 and later equals the result of the following calculations:
823.10 	(1) multiply the referendum allowance the district would have received for fiscal year 
823.11 	2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on elections 
823.12 	held before July 1, 2013, by the resident marginal cost pupil units the district would have 
823.13 	counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
823.14 	(2) add to the result of clause (1) the adjustment the district would have received under 
823.15 	Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and (c), based 
823.16 	on elections held before July 1, 2013;
823.17 	(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal year 
823.18 	2015;
823.19 	(4) add to the result of clause (3) any additional referendum allowance per adjusted pupil 
823.20 	unit authorized by elections held between July 1, 2013, and December 31, 2013;
823.21 	(5) add to the result in clause (4) any additional referendum allowance resulting from 
823.22 	inflation adjustments approved by the voters prior to January 1, 2014;
823.23 	(6) subtract from the result of clause (5), the sum of a district's actual local optional levy 
823.24 	and local optional aid under section 126C.10, subdivision 2e, divided by the adjusted pupil 
823.25 	units of the district for that school year; and
823.26 	(1) subtract $424 from the district's allowance under Minnesota Statutes 2016, section 
823.27 	126C.17, subdivision 1, paragraph (a), clause (5);
823.28 	(2) if the result of clause (1) is less than zero, set the allowance to zero;
823.29 	(3) add to the result in clause (2) any new referendum allowance authorized between 
823.30 	July 1, 2013, and December 31, 2013, under Minnesota Statutes 2013, section 126C.17, 
823.31 	subdivision 9a;
824.1 	(4) add to the result in clause (3) any additional referendum allowance per adjusted pupil 
824.2 	unit authorized between January 1, 2014, and June 30, 2018;
824.3 	(5) subtract from the result in clause (4) any allowances expiring in fiscal year 2016, 
824.4 	2017, 2018, or 2019;
824.5 	(6) subtract $300 from the result in clause (5); and
824.6 	(7) if the result of clause (6) is less than zero, set the allowance to zero.
824.7 	(b) A district's referendum allowance equals the sum of the district's initial referendum 
824.8 	allowance calculated in paragraph (a), plus any new referendum allowance authorized 
824.9 	between July 1, 2013, and December 31, 2013, under subdivision 9a, plus any additional 
824.10 	referendum allowance per adjusted pupil unit authorized after December 31, 2013, after 
824.11 	July 1, 2018, minus any allowances expiring in fiscal year 2016 2020 or later, plus any 
824.12 	inflation adjustments for fiscal year 2020 and later approved by the voters prior to July 1, 
824.13 	2018, provided that the allowance may not be less than zero. For a district with more than 
824.14 	one referendum allowance for fiscal year 2015 under Minnesota Statutes 2012, section 
824.15 	126C.17, the allowance calculated under paragraph (a), clause (3), must be divided into 
824.16 	components such that the same percentage of the district's allowance expires at the same 
824.17 	time as the old allowances would have expired under Minnesota Statutes 2012, section 
824.18 	126C.17. For a district with more than one allowance for fiscal year 2015 that expires in 
824.19 	the same year, the reduction under paragraph (a), clause clauses (1) and (6), to offset local 
824.20 	optional revenue shall be made first from any allowances that do not have an inflation 
824.21 	adjustment approved by the voters.

824.22 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2020 and later.

824.23 	Sec. 13. Minnesota Statutes 2016, section 126C.17, subdivision 2, is amended to read:
824.24 		Subd. 2.Referendum allowance limit. (a) Notwithstanding subdivision 1, for fiscal 
824.25 	year 2015 2020 and later, a district's referendum allowance must not exceed the annual 
824.26 	inflationary increase as calculated under paragraph (b) times the greatest of:
824.27 	(1) $1,845 the product of the annual inflationary increase as calculated under paragraph 
824.28 	(b), and $2,012.53, minus $300;
824.29 	(2) the product of the annual inflationary increase as calculated under paragraph (b), 
824.30 	and the sum of the referendum revenue the district would have received for fiscal year 2015 
824.31 	under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on elections held 
824.32 	before July 1, 2013, and the adjustment the district would have received under Minnesota 
824.33 	Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and (c), based on elections 
825.1 	held before July 1, 2013, divided by the district's adjusted pupil units for fiscal year 2015, 
825.2 	minus $300;
825.3 	(3) the product of the referendum allowance limit the district would have received for 
825.4 	fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and the 
825.5 	resident marginal cost pupil units the district would have received for fiscal year 2015 under 
825.6 	Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the district 
825.7 	would have received under Minnesota Statutes 2012, section 127A.47, subdivision 7, 
825.8 	paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by the 
825.9 	district's adjusted pupil units for fiscal year 2015; minus $424 for a newly reorganized 
825.10 	district created on July 1, 2019, the referendum revenue authority for each reorganizing 
825.11 	district in the year preceding reorganization divided by its adjusted pupil units for the year 
825.12 	preceding reorganization, minus $300; or
825.13 	(4) for a newly reorganized district created after July 1, 2013 2020, the referendum 
825.14 	revenue authority for each reorganizing district in the year preceding reorganization divided 
825.15 	by its adjusted pupil units for the year preceding reorganization.
825.16 	(b) For purposes of this subdivision, for fiscal year 2016 2021 and later, "inflationary 
825.17 	increase" means one plus the percentage change in the Consumer Price Index for urban 
825.18 	consumers, as prepared by the United States Bureau of Labor Standards Statistics, for the 
825.19 	current fiscal year to fiscal year 2015 2020. For fiscal year 2016 and later, for purposes of 
825.20 	paragraph (a), clause (3), the inflationary increase equals one-fourth of the percentage 
825.21 	increase in the formula allowance for that year compared with the formula allowance for 
825.22 	fiscal year 2015.

825.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2020 and later.

825.24 	Sec. 14. Minnesota Statutes 2016, section 126C.17, subdivision 5, is amended to read:
825.25 		Subd. 5.Referendum equalization revenue. (a) A district's referendum equalization 
825.26 	revenue equals the sum of the first tier referendum equalization revenue and the second tier 
825.27 	referendum equalization revenue, and the third tier referendum equalization revenue.
825.28 	(b) A district's first tier referendum equalization revenue equals the district's first tier 
825.29 	referendum equalization allowance times the district's adjusted pupil units for that year.
825.30 	(c) A district's first tier referendum equalization allowance equals the lesser of the 
825.31 	district's referendum allowance under subdivision 1 or $300 $460.
825.32 	(d) A district's second tier referendum equalization revenue equals the district's second 
825.33 	tier referendum equalization allowance times the district's adjusted pupil units for that year.
826.1 	(e) A district's second tier referendum equalization allowance equals the lesser of the 
826.2 	district's referendum allowance under subdivision 1 or $760, minus the district's first tier 
826.3 	referendum equalization allowance.
826.4 	(f) A district's third tier referendum equalization revenue equals the district's third tier 
826.5 	referendum equalization allowance times the district's adjusted pupil units for that year.
826.6 	(g) A district's third tier referendum equalization allowance equals the lesser of the 
826.7 	district's referendum allowance under subdivision 1 or 25 percent of the formula allowance, 
826.8 	minus the sum of $300 and the district's first tier referendum equalization allowance and 
826.9 	second tier referendum equalization allowance.
826.10 	(h) (f) Notwithstanding paragraph (g) (e), the third second tier referendum allowance 
826.11 	for a district qualifying for secondary sparsity revenue under section 126C.10, subdivision 
826.12 	7, or elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's 
826.13 	referendum allowance under subdivision 1 minus the sum of the district's first tier referendum 
826.14 	equalization allowance and second tier referendum equalization allowance.

826.15 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2020 and later.

826.16 	Sec. 15. Minnesota Statutes 2016, section 126C.17, subdivision 6, is amended to read:
826.17 		Subd. 6.Referendum equalization levy. (a) A district's referendum equalization levy 
826.18 	equals the sum of the first tier referendum equalization levy, and the second tier referendum 
826.19 	equalization levy, and the third tier referendum equalization levy.
826.20 	(b) A district's first tier referendum equalization levy equals the district's first tier 
826.21 	referendum equalization revenue times the lesser of one or the ratio of the district's 
826.22 	referendum market value per resident pupil unit to $880,000 $510,000.
826.23 	(c) A district's second tier referendum equalization levy equals the district's second tier 
826.24 	referendum equalization revenue times the lesser of one or the ratio of the district's 
826.25 	referendum market value per resident pupil unit to $510,000 $290,000.
826.26 	(d) A district's third tier referendum equalization levy equals the district's third tier 
826.27 	referendum equalization revenue times the lesser of one or the ratio of the district's 
826.28 	referendum market value per resident pupil unit to $290,000.

826.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2020 and later.

827.1 	Sec. 16. Minnesota Statutes 2016, section 126C.17, subdivision 7, is amended to read:
827.2 		Subd. 7.Referendum equalization aid. (a) A district's referendum equalization aid 
827.3 	equals the difference between its referendum equalization revenue and levy.
827.4 	(b) If a district's actual levy for first, or second, or third tier referendum equalization 
827.5 	revenue is less than its maximum levy limit for that tier, aid shall be proportionately reduced.
827.6 	(c) Notwithstanding paragraph (a), the referendum equalization aid for a district, where 
827.7 	the referendum equalization aid under paragraph (a) exceeds 90 percent of the referendum 
827.8 	revenue, must not exceed: (1) the difference between 25 percent of the formula allowance 
827.9 	and $300; times (2) the district's adjusted pupil units. A district's referendum levy is increased 
827.10 	by the amount of any reduction in referendum aid under this paragraph.

827.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2020 and later.

827.12 	Sec. 17. Minnesota Statutes 2016, section 126C.17, subdivision 7a, is amended to read:
827.13 		Subd. 7a.Referendum tax base replacement aid. For each school district that had a 
827.14 	referendum allowance for fiscal year 2002 exceeding $415, for each separately authorized 
827.15 	referendum levy, the commissioner of revenue, in consultation with the commissioner of 
827.16 	education, shall certify the amount of the referendum levy in taxes payable year 2001 
827.17 	attributable to the portion of the referendum allowance exceeding $415 levied against 
827.18 	property classified as class 2, noncommercial 4c(1), or 4c(4), under section 273.13, excluding 
827.19 	the portion of the tax paid by the portion of class 2a property consisting of the house, garage, 
827.20 	and surrounding one acre of land. The resulting amount must be used to reduce the district's 
827.21 	referendum levy or first tier local optional levy amount otherwise determined, and must be 
827.22 	paid to the district each year that the referendum or first tier local optional authority remains 
827.23 	in effect, is renewed, or new referendum authority is approved. The aid payable under this 
827.24 	subdivision must be subtracted from the district's referendum equalization aid under 
827.25 	subdivision 7. The referendum equalization aid and the first tier local optional aid after the 
827.26 	subtraction must not be less than zero.

827.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2020 and later.

827.28 	Sec. 18. Minnesota Statutes 2016, section 127A.45, subdivision 11, is amended to read:
827.29 		Subd. 11.Payment percentage for reimbursement aids. One hundred percent of the 
827.30 	aid for the previous fiscal year must be paid in the current year for the following aids: 
827.31 	telecommunications/Internet access equity and aid according to section 125B.26, special 
827.32 	education special pupil aid according to section 125A.75, subdivision 3, aid for litigation 
828.1 	costs according to section 125A.75, subdivision 9, aid for court-placed special education 
828.2 	expenses according to section 125A.79, subdivision 4, and aid for special education 
828.3 	out-of-state tuition according to section 125A.79, subdivision 8, and shared time aid 
828.4 	according to section 126C.01, subdivision 7.

828.5 	Sec. 19. Minnesota Statutes 2016, section 127A.45, subdivision 16, is amended to read:
828.6 		Subd. 16.Payments to third parties. Notwithstanding subdivision 3, the current year 
828.7 	aid payment percentage of the amounts amount under sections 123A.26, subdivision 3, and
828.8 	section124D.041, shall be paid in equal installments on August 30, December 30, and 
828.9 	March 30, with a final adjustment payment on October 30 of the next fiscal year of the 
828.10 	remaining amount.

828.11 	Sec. 20. Minnesota Statutes 2016, section 471.59, subdivision 1, is amended to read:
828.12 		Subdivision 1.Agreement. (a) Two or more governmental units, by agreement entered 
828.13 	into through action of their governing bodies, may jointly or cooperatively exercise any 
828.14 	power common to the contracting parties or any similar powers, including those which are 
828.15 	the same except for the territorial limits within which they may be exercised. The agreement 
828.16 	may provide for the exercise of such powers by one or more of the participating governmental 
828.17 	units on behalf of the other participating units.
828.18 	(b) The term "governmental unit" as used in this section includes every city, county, 
828.19 	town, school district, service cooperative under section 123A.21, independent nonprofit 
828.20 	firefighting corporation, other political subdivision of this or another state, another state, 
828.21 	federally recognized Indian tribe, the University of Minnesota, the Minnesota Historical 
828.22 	Society, nonprofit hospitals licensed under sections 144.50 to 144.56, rehabilitation facilities 
828.23 	and extended employment providers that are certified by the commissioner of employment 
828.24 	and economic development, day and supported employment services licensed under chapter 
828.25 	245D, and any agency of the state of Minnesota or the United States, and includes any 
828.26 	instrumentality of a governmental unit. For the purpose of this section, an instrumentality 
828.27 	of a governmental unit means an instrumentality having independent policy-making and 
828.28 	appropriating authority.

828.29 	Sec. 21. Laws 2017, First Special Session chapter 5, article 1, section 19, subdivision 2, 
828.30 	is amended to read:
828.31 		Subd. 2.General education aid. For general education aid under Minnesota Statutes, 
828.32 	section 126C.13, subdivision 4:

829.2829.1
		$
	7,032,051,000
7,078,769,000
	.....
	2018
	
829.4829.3
		$
	7,227,809,000
7,239,247,000
	.....
	2019
	
829.5 	The 2018 appropriation includes $686,828,000 for 2017 and $6,345,223,000
829.6 	$6,391,941,000 for 2018.
829.7 	The 2019 appropriation includes $705,024,000 $683,110,000 for 2018 and 
829.8 	$6,522,785,000 $6,556,137,000 for 2019.

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

829.10 	Sec. 22. Laws 2017, First Special Session chapter 5, article 1, section 19, subdivision 5, 
829.11 	is amended to read:
829.12 		Subd. 5.Consolidation transition aid; grant programs. (a) For districts consolidating
829.13 	consolidation transition aid under Minnesota Statutes, section 123A.485, or the purposes 
829.14 	in paragraphs (b) to (d):

829.16829.15
		$
	185,000
0
	.....
	2018
	
829.18829.17
		$
	382,000
270,000
	.....
	2019
	
829.19 	(b) If no school district is eligible for a consolidation transition aid entitlement for fiscal 
829.20 	year 2019, the fiscal year 2019 appropriation under paragraph (a) must be equally split 
829.21 	between the purposes in paragraphs (c) and (d).
829.22 	(c) The commissioner must award character development incentive grants to public 
829.23 	schools and charter schools that demonstrate use of the Congressional Medal of Honor 
829.24 	character development program. The amount available under this paragraph is in addition 
829.25 	to amounts appropriated elsewhere for the same purpose. The commissioner must allocate 
829.26 	the amount proportionally among the public schools and charter schools that apply, not to 
829.27 	exceed $5,000 per school per fiscal year. If the entire amount is not expended in fiscal year 
829.28 	2019, the commissioner must award additional grants in fiscal years 2020 and 2021. The 
829.29 	grant award may be used for any school-related purpose consistent with Minnesota Statutes, 
829.30 	section 120B.232. Of the amount under this paragraph, up to three percent is for administering 
829.31 	the grants. The amount is available until June 30, 2021.
829.32 	(d) For a grant to Independent School District No. 110, Waconia, to establish a career 
829.33 	and technical education dual credit pilot program offering courses in manufacturing and 
829.34 	construction. The program must be established in partnership with at least one higher 
830.1 	education partner, including Hennepin Technical College or Ridgewater College. A dual 
830.2 	credit course offered under the pilot program must be taught by a qualified school district 
830.3 	teacher or college faculty member. A student that completes a course offered by the career 
830.4 	and technical education dual credit pilot program must receive both a secondary credit and 
830.5 	postsecondary credit. A student may also receive an industry-recognized certificate, if 
830.6 	appropriate. A dual credit course offered under the pilot program is not subject to the 
830.7 	requirements of Minnesota Statutes, section 124D.09. A student enrolled in a dual credit 
830.8 	course is included in the school district's average daily membership in accordance with 
830.9 	Minnesota Statutes, section 126C.05, during the hours of participation in the course. Of the 
830.10 	amount under this paragraph, up to three percent is for administering the grant. The fiscal 
830.11 	year 2019 amount is available until June 30, 2021.
830.12 	(e) The 2018 appropriation includes $0 for 2017 and $185,000 $0 for 2018.
830.13 	(f) The 2019 appropriation includes $20,000 $0 for 2018 and $362,000 $270,000 for 
830.14 	2019.

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

830.16 	Sec. 23. FUND TRANSFERS.
 830.17 		Subdivision 1.Minnetonka school district. (a) Notwithstanding Minnesota Statutes, 
830.18 	section 123B.79, 123B.80, or 124D.20, subdivision 10, on June 30, 2018, Independent 
830.19 	School District No. 276, Minnetonka, may permanently transfer up to $2,400,000 from its 
830.20 	community education reserve fund balance to its reserved for operating capital account in 
830.21 	the general fund.
830.22 	(b) The transferred funds must be used only to design, construct, furnish, and equip an 
830.23 	early childhood classroom addition.
830.24 		Subd. 2.Ivanhoe school district. Notwithstanding Minnesota Statutes, section 123B.79, 
830.25 	123B.80, or 124D.20, subdivision 10, on June 30, 2018, Independent School District No. 
830.26 	403, Ivanhoe, may permanently transfer up to $79,000 from its community education reserve 
830.27 	fund balance to its undesignated general fund.
830.28 		Subd. 3.Minneapolis school district. (a) Notwithstanding Minnesota Statutes, section 
830.29 	123B.79, 123B.80, or 124D.20, subdivision 10, on June 30, 2018, Special School District 
830.30 	No. 1, Minneapolis, may permanently transfer up to $2,000,000 from its community 
830.31 	education reserve fund balance to its undesignated general fund.
830.32 	(b) The transferred funds must be used only for school support services, including mental 
830.33 	health services.
831.1 		Subd. 4.Hopkins school district. (a) Notwithstanding Minnesota Statutes, section 
831.2 	123B.79, 123B.80, or 124D.20, subdivision 10, on June 30, 2018, Independent School 
831.3 	District No. 270, Hopkins, may permanently transfer up to $500,000 from its community 
831.4 	education reserve fund balance to its reserved for operating capital account in the general 
831.5 	fund.
831.6 	(b) The transferred funds must be used only to design, construct, furnish, and equip an 
831.7 	early childhood classroom addition.
831.8 		Subd. 5.Fund balance policy. To the extent practicable, when making the fund transfers 
831.9 	under this section, each district must abide by its school board's fund balance policy, unless 
831.10 	the funds are transferred for an eligible use under Minnesota Statutes, section 124D.128.

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

831.12 	Sec. 24. SCHOOL REVENUE GENERATION AND SPENDING; LEGISLATIVE 
831.13 	AUDITOR STUDY.
 831.14 	(a) The legislative auditor is requested to conduct a study of how students in 
831.15 	prekindergarten through grade 12 generate revenue and compare how that revenue is spent 
831.16 	and reported at the school level for a sample of school districts.
831.17 	(b) The study shall focus on a sample of school districts and include the following topics:
831.18 	(1) the extent to which the funding generated by students is spent at the school sites 
831.19 	those students attend;
831.20 	(2) how district calculations of actual salaries for teachers and staff compare to average 
831.21 	salaries and how those calculations may impact per pupil expenditures at the school level;
831.22 	(3) how per pupil expenditures within a given school district compare across school 
831.23 	sites, including expenditures to reduce class sizes, hire additional support staff, and support 
831.24 	other resources;
831.25 	(4) the extent to which revenue sources for a given school district vary by school site, 
831.26 	including state and local funding and philanthropic and parent association funds;
831.27 	(5) whether there is currently variation in reporting across schools in the Uniform 
831.28 	Financial Accounting and Reporting Standards (UFARS) system; and
831.29 	(6) what steps the Department of Education can take to ensure consistent and accurate 
831.30 	UFARS reporting from schools and districts on school-level revenue and expenditures.
832.1 	(c) The legislative auditor must deliver the study findings to the chairs and ranking 
832.2 	minority members of the legislative committees with primary jurisdiction over kindergarten 
832.3 	through grade 12 education no later than February 1, 2019.

832.4 	Sec. 25. PUPIL TRANSPORTATION WORKING GROUP.
 832.5 		Subdivision 1.Duties. (a) A working group on pupil transportation is created to review 
832.6 	pupil transportation and transportation efficiencies in Minnesota, to consult with stakeholders, 
832.7 	and to submit a written report to the legislature recommending policy and formula changes. 
832.8 	The pupil transportation working group must examine and consider:
832.9 	(1) how school districts, charter schools, intermediate school districts, special education 
832.10 	cooperatives, education districts, and service cooperatives deliver pupil transportation 
832.11 	services and the costs associated with each model;
832.12 	(2) relevant state laws and rules;
832.13 	(3) trends in pupil transportation services;
832.14 	(4) strategies or programs that would be effective in funding necessary pupil 
832.15 	transportation services; and
832.16 	(5) the effect of the elimination of categorical funding for pupil transportation services.
832.17 	(b) In making its recommendations, the pupil transportation working group must consider 
832.18 	a ten-year strategic plan informed by the policy findings in paragraph (a) to help make pupil 
832.19 	transportation funding more fair.
832.20 		Subd. 2.Members. (a) By June 1, 2018, the executive director of the following 
832.21 	organizations may appoint one representative of that organization to serve as a member of 
832.22 	the working group:
832.23 	(1) the Minnesota School Boards Association;
832.24 	(2) the Minnesota Association of Charter Schools;
832.25 	(3) Education Minnesota;
832.26 	(4) the Minnesota Rural Education Association;
832.27 	(5) the Association of Metropolitan School Districts;
832.28 	(6) the Minnesota Association for Pupil Transportation;
832.29 	(7) the Minnesota School Bus Operators Association;
832.30 	(8) the Minnesota Association of School Administrators;
833.1 	(9) the Minnesota Association of School Business Officials;
833.2 	(10) Schools for Equity in Education;
833.3 	(11) Service Employees International Union Local 284;
833.4 	(12) the Minnesota Association of Secondary School Principals;
833.5 	(13) the Minnesota Administrators of Special Education; and
833.6 	(14) the Minnesota Transportation Alliance.
833.7 	(b) The commissioner of education must solicit applications for membership in the 
833.8 	working group, and based on the applications received, designate by June 25, 2018, the 
833.9 	following individuals to serve as members of the working group:
833.10 	(1) a representative from an intermediate school district;
833.11 	(2) a representative from a special education cooperative, education district, or service 
833.12 	cooperative;
833.13 	(3) a representative from a school district in a city of the first class;
833.14 	(4) a representative from a school district in a first tier suburb; and
833.15 	(5) a representative from a rural school district.
833.16 		Subd. 3.Meetings. The commissioner of education, or the commissioner's designee, 
833.17 	must convene the first meeting of the working group no later than July 15, 2018. The working 
833.18 	group must select a chair or cochairs from among its members at the first meeting. The 
833.19 	working group must meet periodically. Meetings of the working group must be open to the 
833.20 	public.
833.21 		Subd. 4.Compensation.  Working group members are not eligible to receive expenses 
833.22 	or per diem payments for serving on the working group.
833.23 		Subd. 5.Administrative support. The commissioner of education must provide technical 
833.24 	and administrative assistance to the working group upon request.
833.25 		Subd. 6.Report. (a) By January 15, 2019, the working group must submit a report 
833.26 	providing its findings and recommendations to the chairs and ranking minority members 
833.27 	of the legislative committees with jurisdiction over kindergarten through grade 12 education.
833.28 	(b) The legislature convening in January 2019 is encouraged to convene a legislative 
833.29 	study group to review the recommendations and ten-year strategic plan to develop its own 
833.30 	recommendations for legislative changes, as necessary.
834.1 		Subd. 7.Expiration. The working group expires on January 16, 2019, unless extended 
834.2 	by law.

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

834.4 	Sec. 26. APPROPRIATIONS.
 834.5 		Subdivision 1.Commissioner of education. The sums indicated in this section are 
834.6 	appropriated from the general fund to the commissioner of education in the fiscal years 
834.7 	designated.
834.8 		Subd. 2.St. Cloud English language learner summer program. (a) For a grant to 
834.9 	Independent School District No. 742, St. Cloud, for a summer language academy providing 
834.10 	targeted services and extended year programming for English language learners:

834.11		$
	300,000
	.....
	2019
	
834.12 	(b) A program funded under this subdivision must:
834.13 	(1) provide a research-based language summer instructional program to help English 
834.14 	learners, as defined in Minnesota Statutes, section 124D.59, subdivision 2, acquire English 
834.15 	and achieve academic excellence;
834.16 	(2) be consistent with English language development standards under Minnesota Rules, 
834.17 	parts 3501.1200 and 3501.1210; and
834.18 	(3) provide instruction by a highly qualified teacher of English as a second language.
834.19 	(c) Independent School District No. 742, St. Cloud, must report to the education 
834.20 	committees of the legislature by January 15, 2021, on the program's design, student 
834.21 	participation levels, and any measurable outcomes of the program.
834.22 	(d) This is a onetime appropriation and is available until June 30, 2021.
834.23 		Subd. 3.School bus safety campaign. (a) For transfer to the commissioner of public 
834.24 	safety for an education and awareness campaign on passing school buses:

834.25		$
	41,000
	.....
	2019
	
834.26 	(b) This is a onetime appropriation.
834.27 	(c) The campaign must be designed to: (1) help reduce occurrences of motor vehicles 
834.28 	unlawfully passing school buses; and (2) inform drivers about the safety of pupils boarding 
834.29 	and unloading from school buses, including (i) laws requiring a motor vehicle to stop when 
834.30 	a school bus has extended the stop-signal arm and is flashing red lights, and (ii) penalties 
834.31 	for violations. When developing the campaign, the commissioner must identify best practices, 
835.1 	review effective communication methods to educate drivers, and consider multiple forms 
835.2 	of media to convey the information.

835.3 	Sec. 27. APPROPRIATION; SCHOOL REVENUE GENERATION AND 
835.4 	SPENDING; LEGISLATIVE AUDITOR STUDY.
 835.5 	$200,000 in fiscal year 2019 is appropriated from the general fund to the Office of the 
835.6 	Legislative Auditor for the legislative auditor to study and report on school revenue 
835.7 	generation and spending outlined in section 24. This is a onetime appropriation.

835.8 	Sec. 28.  REPEALER.
 835.9 	(a) Minnesota Statutes 2016, sections 123A.26, subdivision 3; and 125A.75, subdivision 
835.10 	9, are repealed.
835.11 	(b) Minnesota Statutes 2016, section 126C.16, subdivisions 1 and 3, are repealed.
835.12 	(c) Minnesota Statutes 2016, section 126C.17, subdivision 9a, is repealed.

835.13 	EFFECTIVE DATE. Paragraphs (a) and (b) are effective July 1, 2018. Paragraph (c) 
835.14 	is effective for revenue for fiscal year 2020 and later.

835.15 	ARTICLE 48
835.16 	EDUCATION EXCELLENCE

835.17 	Section 1. Minnesota Statutes 2016, section 120A.22, subdivision 7, is amended to read:
835.18 		Subd. 7.Education records. (a) A district, a charter school, or a nonpublic school that 
835.19 	receives services or aid under sections 123B.40 to 123B.48 from which a student is 
835.20 	transferring must transmit the student's educational records, within ten business days of a 
835.21 	request, to the district, the charter school, or the nonpublic school in which the student is 
835.22 	enrolling. Districts, charter schools, and nonpublic schools that receive services or aid under 
835.23 	sections 123B.40 to 123B.48 must make reasonable efforts to determine the district, the 
835.24 	charter school, or the nonpublic school in which a transferring student is next enrolling in 
835.25 	order to comply with this subdivision.
835.26 	(b) A closed charter school must transfer the student's educational records, within ten 
835.27 	business days of the school's closure, to the student's school district of residence where the 
835.28 	records must be retained unless the records are otherwise transferred under this subdivision.
835.29 	(c) A school district, a charter school, or a nonpublic school that receives services or aid 
835.30 	under sections 123B.40 to 123B.48 that transmits a student's educational records to another 
836.1 	school district or other educational entity, charter school, or nonpublic school to which the 
836.2 	student is transferring must include in the transmitted records information about any formal 
836.3 	suspension, expulsion, and exclusion disciplinary action or pupil withdrawal under sections 
836.4 	121A.40 to 121A.56. The transmitted records must include services a pupil needs. The 
836.5 	district, the charter school, or the nonpublic school that receives services or aid under sections 
836.6 	123B.40 to 123B.48 must provide notice to a student and the student's parent or guardian 
836.7 	that formal disciplinary records will be transferred as part of the student's educational record, 
836.8 	in accordance with data practices under chapter 13 and the Family Educational Rights and 
836.9 	Privacy Act of 1974, United States Code, title 20, section 1232(g).
836.10 	(d) Notwithstanding section 138.17, a principal or chief administrative officer must 
836.11 	remove from a student's educational record and destroy a probable cause notice received 
836.12 	under section 260B.171, subdivision 5, or paragraph (e), if one year has elapsed since the 
836.13 	date of the notice and the principal or chief administrative officer has not received a 
836.14 	disposition or court order related to the offense described in the notice. This paragraph does 
836.15 	not apply if the student no longer attends the school when this one-year period expires.
836.16 	(e) A principal or chief administrative officer who receives a probable cause notice under 
836.17 	section 260B.171, subdivision 5, or a disposition or court order, must include a copy of that 
836.18 	data in the student's educational records if they are transmitted to another school, unless the 
836.19 	data are required to be destroyed under paragraph (d) or section 121A.75.

836.20 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

836.21 	Sec. 2. Minnesota Statutes 2016, section 120A.22, subdivision 12, is amended to read:
836.22 		Subd. 12.Legitimate exemptions. (a) A parent, guardian, or other person having control 
836.23 	of a child may apply to a school district to have the child excused from attendance for the 
836.24 	whole or any part of the time school is in session during any school year. Application may 
836.25 	be made to any member of the board, a truant officer, a principal, or the superintendent. 
836.26 	The school district may state in its school attendance policy that it may ask the student's 
836.27 	parent or legal guardian to verify in writing the reason for the child's absence from school. 
836.28 	A note from a physician or a licensed mental health professional stating that the child cannot 
836.29 	attend school is a valid excuse. The board of the district in which the child resides may 
836.30 	approve the application upon the following being demonstrated to the satisfaction of that 
836.31 	board:
836.32 	(1) that the child's physical or mental health is such as to prevent attendance at school 
836.33 	or application to study for the period required, which includes:
837.1 	(i) child illness, medical, dental, orthodontic, or counseling appointments;
837.2 	(ii) family emergencies;
837.3 	(iii) the death or serious illness or funeral of an immediate family member;
837.4 	(iv) active duty in any military branch of the United States;
837.5 	(v) the child has a condition that requires ongoing treatment for a mental health diagnosis; 
837.6 	or
837.7 	(vi) other exemptions included in the district's school attendance policy;
837.8 	(2) that the child is participating in any activity necessary for the child to join any branch 
837.9 	of the United States armed forces and may be excused for up to three days for such purpose;
837.10 	(2) (3) that the child has already completed state and district standards required for 
837.11 	graduation from high school; or
837.12 	(3) (4) that it is the wish of the parent, guardian, or other person having control of the 
837.13 	child, that the child attend for a period or periods not exceeding in the aggregate three hours 
837.14 	in any week, a school for religious instruction conducted and maintained by some church, 
837.15 	or association of churches, or any Sunday school association incorporated under the laws 
837.16 	of this state, or any auxiliary thereof. This school for religious instruction must be conducted 
837.17 	and maintained in a place other than a public school building, and it must not, in whole or 
837.18 	in part, be conducted and maintained at public expense. However, a child may be absent 
837.19 	from school on such days as the child attends upon instruction according to the ordinances 
837.20 	of some church.
837.21 	(b) Notwithstanding subdivision 6, paragraph (a), a parent may withdraw a child from 
837.22 	an all-day, every day kindergarten program and put their child in a half-day program, if 
837.23 	offered, or an alternate-day program without being truant. A school board must excuse a 
837.24 	kindergarten child from a part of a school day at the request of the child's parent.

837.25 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

837.26 	Sec. 3. Minnesota Statutes 2017 Supplement, section 120B.021, subdivision 1, is amended 
837.27 	to read:
837.28 		Subdivision 1.Required academic standards. (a) The following subject areas are 
837.29 	required for statewide accountability:
837.30 	(1) language arts;
837.31 	(2) mathematics;
838.1 	(3) science;
838.2 	(4) social studies, including history, geography, economics, and government and 
838.3 	citizenship that includes civics consistent with section 120B.02, subdivision 3;
838.4 	(5) physical education;
838.5 	(6) health, for which locally developed academic standards apply; and
838.6 	(7) the arts, for which statewide or locally developed academic standards apply, as 
838.7 	determined by the school district. Public elementary and middle schools must offer at least 
838.8 	three and require at least two of the following four arts areas: dance; music; theater; and 
838.9 	visual arts. Public high schools must offer at least three and require at least one of the 
838.10 	following five arts areas: media arts; dance; music; theater; and visual arts.
838.11 	(b) For purposes of applicable federal law, the academic standards for language arts, 
838.12 	mathematics, and science apply to all public school students, except the very few students 
838.13 	with extreme cognitive or physical impairments for whom an individualized education 
838.14 	program team has determined that the required academic standards are inappropriate. An 
838.15 	individualized education program team that makes this determination must establish 
838.16 	alternative standards.
838.17 	(c) The department must adopt the most recent SHAPE America (Society of Health and 
838.18 	Physical Educators) kindergarten through grade 12 standards and benchmarks for physical 
838.19 	education as the required physical education academic standards. The department may 
838.20 	modify and adapt the national standards to accommodate state interest. The modification 
838.21 	and adaptations must maintain the purpose and integrity of the national standards. The 
838.22 	department must make available sample assessments, which school districts may use as an 
838.23 	alternative to local assessments, to assess students' mastery of the physical education 
838.24 	standards beginning in the 2018-2019 school year.
838.25 	(d) A school district may include child sexual abuse and sexual exploitation prevention 
838.26 	instruction in a health curriculum, consistent with paragraph (a), clause (6). Child sexual 
838.27 	abuse and sexual exploitation prevention instruction may include age-appropriate instruction 
838.28 	on recognizing sexual abuse and, assault, and sexual exploitation; boundary violations,; and 
838.29 	ways offenders identify, groom, or desensitize victims, as well as strategies to promote 
838.30 	disclosure, reduce self-blame, and mobilize bystanders. A school district may consult with 
838.31 	other federal, state, or local agencies and community-based organizations to identify 
838.32 	research-based tools, curricula, and programs to prevent child sexual abuse and sexual 
838.33 	exploitation. A school district may provide instruction under this paragraph in a variety of 
838.34 	ways, including at an annual assembly or classroom presentation. A school district may 
839.1 	also provide parents information on the warning signs of child sexual abuse and sexual 
839.2 	exploitation and available resources. Child sexual exploitation prevention instruction must 
839.3 	be consistent with the definition of sexually exploited youth under section 260C.007, 
839.4 	subdivision 31.
839.5 	(e) A school district may include instruction in a health curriculum for students beginning 
839.6 	in grade 5 on substance misuse prevention, including opioids, controlled substances as 
839.7 	defined in section 152.01, subdivision 4, prescription and nonprescription medications, and 
839.8 	illegal drugs. A school district is not required to use a specific methodology or curriculum.
839.9 	(e) (f) District efforts to develop, implement, or improve instruction or curriculum as a 
839.10 	result of the provisions of this section must be consistent with sections 120B.10, 120B.11, 
839.11 	and 120B.20.

839.12 	Sec. 4. Minnesota Statutes 2016, section 120B.024, subdivision 1, is amended to read:
839.13 		Subdivision 1.Graduation requirements.  Students beginning 9th grade in the 
839.14 	2011-2012 school year and later must successfully complete the following high school level 
839.15 	credits for graduation:
839.16 	(1) four credits of language arts sufficient to satisfy all of the academic standards in 
839.17 	English language arts;
839.18 	(2) three credits of mathematics, including an algebra II credit or its equivalent, sufficient 
839.19 	to satisfy all of the academic standards in mathematics;
839.20 	(3) an algebra I credit by the end of 8th grade sufficient to satisfy all of the 8th grade 
839.21 	standards in mathematics;
839.22 	(4) three credits of science, including at least one credit of biology, one credit of chemistry 
839.23 	or physics, and one elective credit of science. The combination of credits under this clause 
839.24 	must be sufficient to satisfy (i) all of the academic standards in either chemistry or physics 
839.25 	and (ii) all other academic standards in science;
839.26 	(5) three and one-half credits of social studies, including credit for a specific course in 
839.27 	government and citizenship in either 11th or 12th grade for students beginning 9th grade 
839.28 	in the 2020-2021 school year and later, and a combination of other credits encompassing 
839.29 	at least United States history, geography, government and citizenship, world history, and 
839.30 	economics sufficient to satisfy all of the academic standards in social studies;
839.31 	(6) one credit of the arts sufficient to satisfy all of the state or local academic standards 
839.32 	in the arts; and
840.1 	(7) a minimum of seven elective credits.

840.2 	Sec. 5. Minnesota Statutes 2016, section 120B.11, subdivision 1, is amended to read:
840.3 		Subdivision 1.Definitions. For the purposes of this section and section 120B.10, the 
840.4 	following terms have the meanings given them.
840.5 	(a) "Instruction" means methods of providing learning experiences that enable a student 
840.6 	to meet state and district academic standards and graduation requirements including applied 
840.7 	and experiential learning.
840.8 	(b) "Curriculum" means district or school adopted programs and written plans for 
840.9 	providing students with learning experiences that lead to expected knowledge and skills 
840.10 	and career and college readiness.
840.11 	(c) "World's best workforce" means striving to: meet school readiness goals; have all 
840.12 	third grade students achieve grade-level literacy; close the academic achievement gap among 
840.13 	all racial and ethnic groups of students and between students living in poverty and students 
840.14 	not living in poverty; have all students attain career and college readiness before graduating 
840.15 	from high school; and have all students graduate from high school.
840.16 	(d) "Experiential learning" means learning for students that includes career exploration 
840.17 	through a specific class or course or through work-based experiences such as job shadowing, 
840.18 	mentoring, entrepreneurship, service learning, volunteering, internships, other cooperative 
840.19 	work experience, youth apprenticeship, or employment.
840.20 	(e) "State plan" means the plan submitted by the commissioner in accordance with the 
840.21 	Elementary and Secondary Education Act, as most recently authorized, and approved by 
840.22 	the United States Department of Education, including state goals.
840.23 	(f) "Ineffective teacher" means a teacher whose most recent summative teacher evaluation 
840.24 	resulted in placing or otherwise keeping the teacher on an improvement process pursuant 
840.25 	to section 122A.40, subdivision 8, or 122A.41, subdivision 5.
840.26 	(g) "Inexperienced teacher" means a licensed teacher who has been employed as a teacher 
840.27 	for three years or less.
840.28 	(h) "Out-of-field teacher" means a licensed teacher who is providing instruction in an 
840.29 	area in which the teacher is not licensed.

841.1 	Sec. 6. Minnesota Statutes 2016, section 120B.11, subdivision 1a, is amended to read:
841.2 		Subd. 1a.Performance measures. Measures to determine school district and school 
841.3 	site progress in striving to create the world's best workforce must include at least:
841.4 	(1) the size of the academic achievement gap, as measured on the Minnesota 
841.5 	Comprehensive Assessments;
841.6 	(2) rigorous course taking under section 120B.35, subdivision 3, paragraph (c), clause 
841.7 	(2), and enrichment experiences by student subgroup group;
841.8 	(2) (3) student performance on the Minnesota Comprehensive Assessments in reading 
841.9 	and mathematics;
841.10 	(3) (4) high school graduation rates; and
841.11 	(4) (5) career and college readiness under section 120B.30, subdivision 1., paragraph 
841.12 	(p), as measured by student performance on the high school Minnesota Comprehensive 
841.13 	Assessments in reading and mathematics, and successful completion of rigorous coursework 
841.14 	that is part of a well-rounded education, including advanced placement, international 
841.15 	baccalaureate, or concurrent enrollment coursework, or attainment of a certificate or 
841.16 	industry-recognized credential; and
841.17 	(6) performance measures consistent with the state plan not otherwise required by this 
841.18 	subdivision.

841.19 	Sec. 7. Minnesota Statutes 2016, section 120B.11, subdivision 2, is amended to read:
841.20 		Subd. 2.Adopting plans and budgets.  A school board, at a public meeting, shall must
841.21 	adopt a comprehensive, long-term strategic plan to support and improve teaching and 
841.22 	learning that is aligned with creating the world's best workforce and includes:
841.23 	(1) clearly defined district and school site goals and benchmarks for toward meeting 
841.24 	statewide goals for instruction and student achievement for all student subgroups identified 
841.25 	in section 120B.35, subdivision 3, paragraph (b), clause (2);
841.26 	(2) a process to assess and evaluate each student's progress toward meeting state and 
841.27 	local academic standards, assess and identify students to participate in gifted and talented 
841.28 	programs and accelerate their instruction, and adopt early-admission procedures consistent 
841.29 	with section 120B.15, and identifying the strengths and weaknesses of instruction in pursuit 
841.30 	of student and school success and curriculum affecting students' progress and growth toward 
841.31 	career and college readiness and leading to the world's best workforce;
842.1 	(3) a system to periodically review and evaluate the effectiveness of all instruction and 
842.2 	curriculum, taking into account strategies and best practices, student outcomes, school 
842.3 	principal evaluations under section 123B.147, subdivision 3, students' access to effective 
842.4 	teachers who are members of populations underrepresented among the licensed teachers in 
842.5 	the district or school and who reflect the diversity of enrolled students under section 120B.35, 
842.6 	subdivision 3, paragraph (b), clause (2), and teacher evaluations under section 122A.40, 
842.7 	subdivision 8, or 122A.41, subdivision 5;
842.8 	(4) strategies for improving instruction, curriculum, and student achievement, including 
842.9 	the English and, where practicable, the native language development and the academic 
842.10 	achievement of English learners;
842.11 	(5) a process to examine the equitable distribution of teachers and strategies to ensure 
842.12 	low-income and minority children are not taught at higher rates than other children by 
842.13 	inexperienced, ineffective, or out-of-field teachers;
842.14 	(6) education effectiveness practices that integrate high-quality instruction, rigorous 
842.15 	curriculum, technology, and a collaborative professional culture that develops and supports 
842.16 	teacher quality, performance, and effectiveness; and
842.17 	(7) an annual budget for continuing to implement the district plan.

842.18 	Sec. 8. Minnesota Statutes 2016, section 120B.11, subdivision 5, is amended to read:
842.19 		Subd. 5.Report. Consistent with requirements for school performance reports under 
842.20 	section 120B.36, subdivision 1, the school board shall publish a report in the local newspaper 
842.21 	with the largest circulation in the district, by mail, or by electronic means on the district 
842.22 	Web site.(a) The school board shall must hold an annual public meeting to review, and 
842.23 	revise where appropriate, student achievement goals, local assessment outcomes, plans, 
842.24 	strategies, and practices for improving curriculum and, instruction, and cultural competency, 
842.25 	and efforts to equitably distribute diverse, effective, experienced, and in-field teachers, and 
842.26 	to review district success in realizing the previously adopted student achievement goals and 
842.27 	related benchmarks and the improvement plans leading to the world's best workforce. The 
842.28 	school board must transmit an electronic summary of its report to the commissioner in the 
842.29 	form and manner the commissioner determines.
842.30 	(b) The commissioner must annually include in the school performance reports required 
842.31 	under section 120B.36, subdivision 1, student performance at each school district and school 
842.32 	site using the performance measures in subdivision 1a and other information required under 
842.33 	this subdivision. The school board must post a copy of the school performance report for 
843.1 	the district and each school site on the district's Web site, or provide a link to the district 
843.2 	and school site performance reports on the Department of Education's Web site.

843.3 	Sec. 9. Minnesota Statutes 2016, section 120B.11, subdivision 9, is amended to read:
843.4 		Subd. 9.Annual evaluation. (a) The commissioner must identify effective strategies, 
843.5 	practices, and use of resources by districts and school sites in striving for the world's best 
843.6 	workforce. The commissioner must assist districts and sites throughout the state in 
843.7 	implementing these effective strategies, practices, and use of resources.
843.8 	(b) The commissioner must use the performance measures in the accountability system 
843.9 	of the state plan, including academic achievement in math and reading, graduation rates, 
843.10 	and a school quality indicator, to identify those districts in any consecutive three-year period
843.11 	and school sites not making sufficient progress in any consecutive three-year period toward 
843.12 	improving teaching and learning for all students, including English learners with varied 
843.13 	needs, consistent with section 124D.59, subdivisions 2 and 2a, and striving for the world's 
843.14 	best workforce. meeting state goals. The commissioner must implement evaluation timelines 
843.15 	and measures consistent with the state plan. The commissioner may identify districts or 
843.16 	school sites that do not provide information required for evaluation as failing to make 
843.17 	sufficient progress toward meeting state goals. The commissioner may evaluate, designate, 
843.18 	and report on school districts and charter schools separately, consistent with the evaluation 
843.19 	process under the state plan.
843.20 	(c) The commissioner, in collaboration with the identified district, may require the district 
843.21 	to use up to two percent of its basic general education revenue per fiscal year during the 
843.22 	proximate three school years to implement commissioner-specified evidence-based strategies 
843.23 	and best practices, consistent with paragraph (a), to improve and accelerate its progress in 
843.24 	realizing its goals under this section. In implementing this section, the commissioner must 
843.25 	consider districts' budget constraints and legal obligations.
843.26 	(c) (d) The commissioner shall must report by January 25 of each year to the committees 
843.27 	of the legislature having jurisdiction over kindergarten through grade 12 education the list 
843.28 	of school districts that have not submitted their report to the commissioner under subdivision 
843.29 	5 and the list of school districts not achieving their performance goals established in their 
843.30 	plan under subdivision 2 identified as not making sufficient progress toward meeting world's 
843.31 	best workforce goals under paragraph (b).

844.1 	Sec. 10. Minnesota Statutes 2016, section 120B.12, as amended by Laws 2017, First 
844.2 	Special Session chapter 5, article 2, sections 5, 6, and 7, is amended to read:
844.3 	120B.12 READING PROFICIENTLY NO LATER THAN THE END OF GRADE 
844.4 	3.
844.5 		Subdivision 1.Literacy goal. The legislature seeks to have every child reading at or 
844.6 	above grade level no later than the end of grade 3, including English learners, and that 
844.7 	teachers provide comprehensive, scientifically based reading instruction consistent with 
844.8 	section 122A.06, subdivision 4.
844.9 		Subd. 2.Identification; report. (a) Each school district shall must identify before the 
844.10 	end of kindergarten, grade 1, and grade 2 students who are not reading at grade level before 
844.11 	the end of the current school year and shall must identify students in grade 3 or higher who 
844.12 	demonstrate a reading difficulty to a classroom teacher.
844.13 	(b) Reading assessments in English, and in the predominant languages of district students 
844.14 	where practicable, must identify and evaluate students' areas of academic need related to 
844.15 	literacy. The district also must monitor the progress and provide reading instruction 
844.16 	appropriate to the specific needs of English learners. The district must use a locally adopted, 
844.17 	developmentally appropriate, and culturally responsive assessment and annually report 
844.18 	summary assessment results to the commissioner by July 1.
844.19 	(c) The district also must annually report to the commissioner by July 1 a summary of 
844.20 	the district's efforts to screen and identify students with:
844.21 	(1) dyslexia, using screening tools such as those recommended by the department's 
844.22 	dyslexia and literacy specialist; or
844.23 	(2) convergence insufficiency disorder.
844.24 	(b) (d) A student identified under this subdivision must be provided with alternate 
844.25 	instruction under section 125A.56, subdivision 1.
844.26 		Subd. 2a.Parent notification and involvement. Schools, at least annually, must give 
844.27 	the parent of each student who is not reading at or above grade level timely information 
844.28 	about:
844.29 	(1) the student's reading proficiency as measured by a locally adopted assessment;
844.30 	(2) reading-related services currently being provided to the student and the student's 
844.31 	progress; and
845.1 	(3) strategies for parents to use at home in helping their student succeed in becoming 
845.2 	grade-level proficient in reading in English and in their native language.
845.3 	A district may not use this section to deny a student's right to a special education 
845.4 	evaluation.
845.5 		Subd. 3.Intervention. (a) For each student identified under subdivision 2, the district 
845.6 	shall must provide reading intervention to accelerate student growth and reach the goal of 
845.7 	reading at or above grade level by the end of the current grade and school year. If a student 
845.8 	does not read at or above grade level by the end of grade 3, the district must continue to 
845.9 	provide reading intervention until the student reads at grade level. District intervention 
845.10 	methods shall encourage family engagement and, where possible, collaboration with 
845.11 	appropriate school and community programs. Intervention methods may include, but are 
845.12 	not limited to, requiring attendance in summer school, intensified reading instruction that 
845.13 	may require that the student be removed from the regular classroom for part of the school 
845.14 	day, extended-day programs, or programs that strengthen students' cultural connections.
845.15 	(b) A school district or charter school is strongly encouraged to provide a personal 
845.16 	learning plan for a student who is unable to demonstrate grade-level proficiency, as measured 
845.17 	by the statewide reading assessment in grade 3. The district or charter school must determine 
845.18 	the format of the personal learning plan in collaboration with the student's educators and 
845.19 	other appropriate professionals. The school must develop the learning plan in consultation 
845.20 	with the student's parent or guardian. The personal learning plan must address knowledge 
845.21 	gaps and skill deficiencies through strategies such as specific exercises and practices during 
845.22 	and outside of the regular school day, periodic assessments, and reasonable timelines. The 
845.23 	personal learning plan may include grade retention, if it is in the student's best interest. A 
845.24 	school must maintain and regularly update and modify the personal learning plan until the 
845.25 	student reads at grade level. This paragraph does not apply to a student under an 
845.26 	individualized education program.
845.27 		Subd. 4.Staff development. (a) Each district shall must use the data under subdivision 
845.28 	2 to identify the staff development needs so that:
845.29 	(1) elementary teachers are able to implement comprehensive, scientifically based reading 
845.30 	and oral language instruction in the five reading areas of phonemic awareness, phonics, 
845.31 	fluency, vocabulary, and comprehension as defined in section 122A.06, subdivision 4, and 
845.32 	other literacy-related areas including writing until the student achieves grade-level reading 
845.33 	proficiency;
846.1 	(2) elementary teachers have sufficient training to provide comprehensive, scientifically 
846.2 	based reading and oral language instruction that meets students' developmental, linguistic, 
846.3 	and literacy needs using the intervention methods or programs selected by the district for 
846.4 	the identified students;
846.5 	(3) licensed teachers employed by the district have regular opportunities to improve 
846.6 	reading and writing instruction, including screenings, intervention strategies, and 
846.7 	accommodations for students showing characteristics associated with dyslexia;
846.8 	(4) licensed teachers recognize students' diverse needs in cross-cultural settings and are 
846.9 	able to serve the oral language and linguistic needs of students who are English learners by 
846.10 	maximizing strengths in their native languages in order to cultivate students' English language 
846.11 	development, including oral academic language development, and build academic literacy; 
846.12 	and
846.13 	(5) licensed teachers are well trained in culturally responsive pedagogy that enables 
846.14 	students to master content, develop skills to access content, and build relationships.
846.15 	(b) A school district may use its literacy incentive aid under section 124D.98 for the 
846.16 	staff development purposes of this subdivision.
846.17 		Subd. 4a.Local literacy plan. (a) Consistent with this section, a school district must 
846.18 	adopt a local literacy plan to have every child reading at or above grade level no later than 
846.19 	the end of grade 3, including English learners. The plan must be consistent with section 
846.20 	122A.06, subdivision 4, and include the following:
846.21 	(1) a process to assess students' level of reading proficiency and data to support the 
846.22 	effectiveness of an assessment used to screen and identify a student's level of reading 
846.23 	proficiency;
846.24 	(2) a process to notify and involve parents;
846.25 	(3) a description of how schools in the district will determine the proper reading 
846.26 	intervention strategy for a student and the process for intensifying or modifying the reading 
846.27 	strategy in order to obtain measurable reading progress;
846.28 	(4) evidence-based intervention methods for students who are not reading at or above 
846.29 	grade level and progress monitoring to provide information on the effectiveness of the 
846.30 	intervention; and
846.31 	(5) identification of staff development needs, including a program to meet those needs.
846.32 	(b) The district must post its literacy plan on the official school district Web site.
847.1 		Subd. 5.Commissioner. The commissioner shall must recommend to districts multiple 
847.2 	assessment tools to assist districts and teachers with identifying students under subdivision 
847.3 	2. The commissioner shall must also make available examples of nationally recognized and 
847.4 	research-based instructional methods or programs to districts to provide comprehensive, 
847.5 	scientifically based reading instruction and intervention under this section.

847.6 	EFFECTIVE DATE. Subdivision 2 is effective July 1, 2019. Subdivisions 3 to 5 are 
847.7 	effective for revenue for fiscal year 2019 and later.

847.8 	Sec. 11. Minnesota Statutes 2017 Supplement, section 120B.122, subdivision 1, is amended 
847.9 	to read:
847.10 		Subdivision 1.Purpose Duties. (a) The department must employ a dyslexia specialist 
847.11 	to provide technical assistance for dyslexia and related disorders and to serve as the primary 
847.12 	source of information and support for schools in addressing the needs of students with 
847.13 	dyslexia and related disorders.
847.14 	(b) The dyslexia specialist shall also must act to increase professional awareness and 
847.15 	instructional competencies to meet the educational needs of students with dyslexia or 
847.16 	identified with risk characteristics associated with dyslexia and shall must develop 
847.17 	implementation guidance and make recommendations to the commissioner consistent with 
847.18 	section 122A.06, subdivision 4, to be used to assist general education teachers and special 
847.19 	education teachers to recognize educational needs and to improve literacy outcomes for 
847.20 	students with dyslexia or identified with risk characteristics associated with dyslexia, 
847.21 	including recommendations related to increasing the availability of online and asynchronous 
847.22 	professional development programs and materials.
847.23 	(c) The dyslexia specialist must provide guidance to school districts and charter schools 
847.24 	on how to:
847.25 	(1) access tools to screen and identify students showing characteristics associated with 
847.26 	dyslexia in accordance with section 120B.12, subdivision 2, paragraph (a);
847.27 	(2) implement screening for characteristics associated with dyslexia in accordance with 
847.28 	section 120B.12, subdivision 2, paragraph (a), and in coordination with other early childhood 
847.29 	screenings; and
847.30 	(3) participate in professional development opportunities on intervention strategies and 
847.31 	accommodations for students with dyslexia or characteristics associated with dyslexia.
847.32 	(d) The dyslexia specialist must provide guidance to the Professional Educator Licensing 
847.33 	and Standards Board on developing licensing renewal requirements under section 122A.187, 
848.1 	subdivision 5, on understanding dyslexia, recognizing dyslexia characteristics in students, 
848.2 	and using evidence-based dyslexia best practices.

848.3 	Sec. 12. Minnesota Statutes 2017 Supplement, section 120B.125, is amended to read:
848.4 	120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION TO 
848.5 	POSTSECONDARY EDUCATION AND EMPLOYMENT; PERSONAL LEARNING 
848.6 	PLANS.
848.7 	(a) Consistent with sections 120B.13, 120B.131, 120B.132, 120B.14, 120B.15, 120B.30, 
848.8 	subdivision 1, paragraph (c), 125A.08, and other related sections, school districts, beginning 
848.9 	in the 2013-2014 school year, must assist all students by no later than grade 9 to explore 
848.10 	their educational, college, and career interests, aptitudes, and aspirations and develop a plan 
848.11 	for a smooth and successful transition to postsecondary education or employment. All 
848.12 	students' plans must:
848.13 	(1) provide a comprehensive plan to prepare for and complete a career and college ready 
848.14 	curriculum by meeting state and local academic standards and developing career and 
848.15 	employment-related skills such as team work, collaboration, creativity, communication, 
848.16 	critical thinking, and good work habits;
848.17 	(2) emphasize academic rigor and high expectations and inform the student, and the 
848.18 	student's parent or guardian if the student is a minor, of the student's achievement level 
848.19 	score on the Minnesota Comprehensive Assessments that are administered during high 
848.20 	school;
848.21 	(3) help students identify interests, aptitudes, aspirations, and personal learning styles 
848.22 	that may affect their career and college ready goals and postsecondary education and 
848.23 	employment choices;
848.24 	(4) set appropriate career and college ready goals with timelines that identify effective 
848.25 	means for achieving those goals;
848.26 	(5) help students access education and career options, including armed forces career 
848.27 	options;
848.28 	(6) integrate strong academic content into career-focused courses and applied and 
848.29 	experiential learning opportunities and integrate relevant career-focused courses and applied 
848.30 	and experiential learning opportunities into strong academic content;
848.31 	(7) help identify and access appropriate counseling and other supports and assistance 
848.32 	that enable students to complete required coursework, prepare for postsecondary education 
849.1 	and careers, and obtain information about postsecondary education costs and eligibility for 
849.2 	financial aid and scholarship;
849.3 	(8) help identify collaborative partnerships among prekindergarten through grade 12 
849.4 	schools, postsecondary institutions, economic development agencies, and local and regional 
849.5 	employers that support students' transition to postsecondary education and employment and 
849.6 	provide students with applied and experiential learning opportunities; and
849.7 	(9) be reviewed and revised at least annually by the student, the student's parent or 
849.8 	guardian, and the school or district to ensure that the student's course-taking schedule keeps 
849.9 	the student making adequate progress to meet state and local academic standards and high 
849.10 	school graduation requirements and with a reasonable chance to succeed with employment 
849.11 	or postsecondary education without the need to first complete remedial course work.
849.12 	(b) A school district may develop grade-level curricula or provide instruction that 
849.13 	introduces students to various careers, but must not require any curriculum, instruction, or 
849.14 	employment-related activity that obligates an elementary or secondary student to involuntarily 
849.15 	select or pursue a career, career interest, employment goals, or related job training.
849.16 	(c) Educators must possess the knowledge and skills to effectively teach all English 
849.17 	learners in their classrooms. School districts must provide appropriate curriculum, targeted 
849.18 	materials, professional development opportunities for educators, and sufficient resources 
849.19 	to enable English learners to become career and college ready.
849.20 	(d) When assisting students in developing a plan for a smooth and successful transition 
849.21 	to postsecondary education and employment, districts must recognize the unique possibilities 
849.22 	of each student and ensure that the contents of each student's plan reflect the student's unique 
849.23 	talents, skills, and abilities as the student grows, develops, and learns.
849.24 	(e) If a student with a disability has an individualized education program (IEP) or 
849.25 	standardized written plan that meets the plan components of this section, the IEP satisfies 
849.26 	the requirement and no additional transition plan is needed.
849.27 	(f) Students who do not meet or exceed Minnesota academic standards, as measured by 
849.28 	the Minnesota Comprehensive Assessments that are administered during high school, shall 
849.29 	be informed that admission to a public school is free and available to any resident under 21 
849.30 	years of age or who meets the requirements of section 120A.20, subdivision 1, paragraph 
849.31 	(c). A student's plan under this section shall continue while the student is enrolled.
850.1 	(g) A school district must provide military recruiters the same access to secondary school 
850.2 	students as the district provides to institutions of higher education or to prospective employers 
850.3 	of students.
850.4 	(h) School districts are encouraged to sponsor an armed forces career opportunity day 
850.5 	each school year prior to the third Thursday of November. A school district that sponsors 
850.6 	an armed forces career opportunity day must extend invitations to recruiters from each 
850.7 	branch of the United States armed forces and allow the recruiters to make presentations to 
850.8 	all interested secondary school students.

850.9 	Sec. 13. [120B.215] SUBSTANCE MISUSE PREVENTION.
850.10 	(a) This section may be cited as "Jake's Law."
850.11 	(b) School districts and charter schools are encouraged to provide substance misuse 
850.12 	prevention instruction for students in grades 5 through 12 integrated into existing programs, 
850.13 	curriculum, or the general school environment of a district or charter school. The 
850.14 	commissioner of education, in consultation with the director of the Alcohol and Other Drug 
850.15 	Abuse Section under section 254A.03 and substance misuse prevention and treatment 
850.16 	organizations, must, upon request, provide districts and charter schools with:
850.17 	(1) information regarding substance misuse prevention services; and
850.18 	(2) assistance in using Minnesota student survey results to inform prevention programs.

850.19 	EFFECTIVE DATE. This section is effective July 1, 2018.

850.20 	Sec. 14. Minnesota Statutes 2016, section 120B.299, subdivision 10, is amended to read:
850.21 		Subd. 10.Proficiency. "Proficiency" for purposes of reporting growth on school 
850.22 	performance report cards under section 120B.36, subdivision 1, means those students who, 
850.23 	in the previous school year, scored at or above "meets standards" on the statewide 
850.24 	assessments under section 120B.30. Each year, school performance report cards must 
850.25 	separately display: (1) the numbers and percentages of students who achieved low growth, 
850.26 	medium growth, and high growth and achieved proficiency in the previous school year; and 
850.27 	(2) the numbers and percentages of students who achieved low growth, medium growth, 
850.28 	and high growth and did not achieve proficiency in the previous school year.

851.1 	Sec. 15. Minnesota Statutes 2017 Supplement, section 120B.30, subdivision 1, is amended 
851.2 	to read:
851.3 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts with 
851.4 	appropriate technical qualifications and experience and stakeholders, consistent with 
851.5 	subdivision 1a, shall must include in the comprehensive assessment system, for each grade 
851.6 	level to be tested, state-constructed tests developed as computer-adaptive reading and 
851.7 	mathematics assessments for students that are aligned with the state's required academic 
851.8 	standards under section 120B.021, include multiple choice questions, and are administered 
851.9 	annually to all students in grades 3 through 8. State-developed high school tests aligned 
851.10 	with the state's required academic standards under section 120B.021 and administered to 
851.11 	all high school students in a subject other than writing must include multiple choice questions. 
851.12 	The commissioner shall must establish one or more months during which schools shall 
851.13 	administer the tests to studentsa testing period as late as possible each school year during 
851.14 	which schools must administer the Minnesota Comprehensive Assessments to students. The 
851.15 	commissioner must publish the testing schedule at least two years before the beginning of 
851.16 	the testing period.
851.17 	(1) Students enrolled in grade 8 through the 2009-2010 school year are eligible to be 
851.18 	assessed under (i) the graduation-required assessment for diploma in reading, mathematics, 
851.19 	or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1, paragraphs (c), 
851.20 	clauses (1) and (2), and (d), (ii) the WorkKeys job skills assessment, (iii) the Compass 
851.21 	college placement test, (iv) the ACT assessment for college admission, (v) a nationally 
851.22 	recognized armed services vocational aptitude test.
851.23 	(2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year are eligible 
851.24 	to be assessed under (i) the graduation-required assessment for diploma in reading, 
851.25 	mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1, 
851.26 	paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills assessment, (iii) the Compass 
851.27 	college placement test, (iv) the ACT assessment for college admission, (v) a nationally 
851.28 	recognized armed services vocational aptitude test.
851.29 	(3) For students under clause (1) or (2), a school district may substitute a score from an 
851.30 	alternative, equivalent assessment to satisfy the requirements of this paragraph.
851.31 	(b) The state assessment system must be aligned to the most recent revision of academic 
851.32 	standards as described in section 120B.023 in the following manner:
851.33 	(1) mathematics;
851.34 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
852.1 	(ii) high school level beginning in the 2013-2014 school year;
852.2 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
852.3 	school year; and
852.4 	(3) language arts and reading; grades 3 through 8 and high school level beginning in the 
852.5 	2012-2013 school year.
852.6 	(c) For students enrolled in grade 8 in the 2012-2013 school year and later, students' 
852.7 	state graduation requirements, based on a longitudinal, systematic approach to student 
852.8 	education and career planning, assessment, instructional support, and evaluation, include 
852.9 	the following:
852.10 	(1) achievement and career and college readiness in mathematics, reading, and writing, 
852.11 	consistent with paragraph (k) and to the extent available, to monitor students' continuous 
852.12 	development of and growth in requisite knowledge and skills; analyze students' progress 
852.13 	and performance levels, identifying students' academic strengths and diagnosing areas where 
852.14 	students require curriculum or instructional adjustments, targeted interventions, or 
852.15 	remediation; and, based on analysis of students' progress and performance data, determine 
852.16 	students' learning and instructional needs and the instructional tools and best practices that 
852.17 	support academic rigor for the student; and
852.18 	(2) consistent with this paragraph and section 120B.125, age-appropriate exploration 
852.19 	and planning activities and career assessments to encourage students to identify personally 
852.20 	relevant career interests and aptitudes and help students and their families develop a regularly 
852.21 	reexamined transition plan for postsecondary education or employment without need for 
852.22 	postsecondary remediation.
852.23 	Based on appropriate state guidelines, students with an individualized education program 
852.24 	may satisfy state graduation requirements by achieving an individual score on the 
852.25 	state-identified alternative assessments.
852.26 	(d) Expectations of schools, districts, and the state for career or college readiness under 
852.27 	this subdivision must be comparable in rigor, clarity of purpose, and rates of student 
852.28 	completion.
852.29 	A student under paragraph (c), clause (1), must receive targeted, relevant, academically 
852.30 	rigorous, and resourced instruction, which may include a targeted instruction and intervention 
852.31 	plan focused on improving the student's knowledge and skills in core subjects so that the 
852.32 	student has a reasonable chance to succeed in a career or college without need for 
852.33 	postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091, 124D.49, 
853.1 	and related sections, an enrolling school or district must actively encourage a student in 
853.2 	grade 11 or 12 who is identified as academically ready for a career or college to participate 
853.3 	in courses and programs awarding college credit to high school students. Students are not 
853.4 	required to achieve a specified score or level of proficiency on an assessment under this 
853.5 	subdivision to graduate from high school.
853.6 	(e) Though not a high school graduation requirement, students are encouraged to 
853.7 	participate in a nationally recognized college entrance exam. To the extent state funding 
853.8 	for college entrance exam fees is available, a district must pay the cost, one time, for an 
853.9 	interested student in grade 11 or 12 who is eligible for a free or reduced-price meal, to take 
853.10 	a nationally recognized college entrance exam before graduating. A student must be able 
853.11 	to take the exam under this paragraph at the student's high school during the school day and 
853.12 	at any one of the multiple exam administrations available to students in the district. A district 
853.13 	may administer the ACT or SAT or both the ACT and SAT to comply with this paragraph. 
853.14 	If the district administers only one of these two tests and a free or reduced-price meal eligible 
853.15 	student opts not to take that test and chooses instead to take the other of the two tests, the 
853.16 	student may take the other test at a different time or location and remains eligible for the 
853.17 	examination fee reimbursement. Notwithstanding sections 123B.34 to 123B.39, a school 
853.18 	district may require a student that is not eligible for a free or reduced-price meal to pay the 
853.19 	cost of taking a nationally recognized college entrance exam. The district must waive the 
853.20 	cost for a student unable to pay.
853.21 	(f) The commissioner and the chancellor of the Minnesota State Colleges and Universities 
853.22 	must collaborate in aligning instruction and assessments for adult basic education students 
853.23 	and English learners to provide the students with diagnostic information about any targeted 
853.24 	interventions, accommodations, modifications, and supports they need so that assessments 
853.25 	and other performance measures are accessible to them and they may seek postsecondary 
853.26 	education or employment without need for postsecondary remediation. When administering 
853.27 	formative or summative assessments used to measure the academic progress, including the 
853.28 	oral academic development, of English learners and inform their instruction, schools must 
853.29 	ensure that the assessments are accessible to the students and students have the modifications 
853.30 	and supports they need to sufficiently understand the assessments.
853.31 	(g) Districts and schools, on an annual basis, must use career exploration elements to 
853.32 	help students, beginning no later than grade 9, and their families explore and plan for 
853.33 	postsecondary education or careers based on the students' interests, aptitudes, and aspirations. 
853.34 	Districts and schools must use timely regional labor market information and partnerships, 
853.35 	among other resources, to help students and their families successfully develop, pursue, 
854.1 	review, and revise an individualized plan for postsecondary education or a career. This 
854.2 	process must help increase students' engagement in and connection to school, improve 
854.3 	students' knowledge and skills, and deepen students' understanding of career pathways as 
854.4 	a sequence of academic and career courses that lead to an industry-recognized credential, 
854.5 	an associate's degree, or a bachelor's degree and are available to all students, whatever their 
854.6 	interests and career goals.
854.7 	(h) A student who demonstrates attainment of required state academic standards, which 
854.8 	include career and college readiness benchmarks, on high school assessments under 
854.9 	subdivision 1a is academically ready for a career or college and is encouraged to participate 
854.10 	in courses awarding college credit to high school students. Such courses and programs may 
854.11 	include sequential courses of study within broad career areas and technical skill assessments 
854.12 	that extend beyond course grades.
854.13 	(i) As appropriate, students through grade 12 must continue to participate in targeted 
854.14 	instruction, intervention, or remediation and be encouraged to participate in courses awarding 
854.15 	college credit to high school students.
854.16 	(j) In developing, supporting, and improving students' academic readiness for a career 
854.17 	or college, schools, districts, and the state must have a continuum of empirically derived, 
854.18 	clearly defined benchmarks focused on students' attainment of knowledge and skills so that 
854.19 	students, their parents, and teachers know how well students must perform to have a 
854.20 	reasonable chance to succeed in a career or college without need for postsecondary 
854.21 	remediation. The commissioner, in consultation with local school officials and educators, 
854.22 	and Minnesota's public postsecondary institutions must ensure that the foundational 
854.23 	knowledge and skills for students' successful performance in postsecondary employment 
854.24 	or education and an articulated series of possible targeted interventions are clearly identified 
854.25 	and satisfy Minnesota's postsecondary admissions requirements.
854.26 	(k) For students in grade 8 in the 2012-2013 school year and later, a school, district, or 
854.27 	charter school must record on the high school transcript a student's progress toward career 
854.28 	and college readiness, and for other students as soon as practicable.
854.29 	(l) The school board granting students their diplomas may formally decide to include a 
854.30 	notation of high achievement on the high school diplomas of those graduating seniors who, 
854.31 	according to established school board criteria, demonstrate exemplary academic achievement 
854.32 	during high school.
854.33 	(m) The 3rd through 8th grade computer-adaptive assessment results and high school 
854.34 	test results shall be available to districts for diagnostic purposes affecting student learning 
855.1 	and district instruction and curriculum, and for establishing educational accountability. The 
855.2 	commissioner must establish empirically derived benchmarks on adaptive assessments in 
855.3 	grades 3 6 through 8. The commissioner, in consultation with the chancellor of the Minnesota 
855.4 	State Colleges and Universities, must establish empirically derived benchmarks on the high 
855.5 	school tests that reveal a trajectory toward career and college readiness consistent with 
855.6 	section 136F.302, subdivision 1a. The commissioner must disseminate to the public the 
855.7 	computer-adaptive assessments and high school test results upon receiving those results.
855.8 	(n) The grades 3 through 8 computer-adaptive assessments and high school tests must 
855.9 	be aligned with state academic standards. The commissioner shall must determine the testing 
855.10 	process and the order of administration. The statewide results shall must be aggregated at 
855.11 	the site and district level, consistent with subdivision 1a.
855.12 	(o) The commissioner shall must include the following components in the statewide 
855.13 	public reporting system:
855.14 	(1) uniform statewide computer-adaptive assessments of all students in grades 3 through 
855.15 	8 and testing at the high school levels that provides appropriate, technically sound 
855.16 	accommodations or alternate assessments;
855.17 	(2) educational indicators that can be aggregated and compared across school districts 
855.18 	and across time on a statewide basis, including average daily attendance, high school 
855.19 	graduation rates, and high school drop-out rates by age and grade level;
855.20 	(3) state results on the American College Test; and
855.21 	(4) state results from participation in the National Assessment of Educational Progress 
855.22 	so that the state can benchmark its performance against the nation and other states, and, 
855.23 	where possible, against other countries, and contribute to the national effort to monitor 
855.24 	achievement.
855.25 	(p) For purposes of statewide accountability, "career and college ready" means a high 
855.26 	school graduate has the knowledge, skills, and competencies to successfully pursue a career 
855.27 	pathway, including postsecondary credit leading to a degree, diploma, certificate, or 
855.28 	industry-recognized credential and employment. Students who are career and college ready 
855.29 	are able to successfully complete credit-bearing coursework at a two- or four-year college 
855.30 	or university or other credit-bearing postsecondary program without need for remediation.
855.31 	(q) For purposes of statewide accountability, "cultural competence," "cultural 
855.32 	competency," or "culturally competent" means the ability of families and educators to 
856.1 	interact effectively with people of different cultures, native languages, and socioeconomic 
856.2 	backgrounds.

856.3 	EFFECTIVE DATE. This section is effective for testing calendars in the 2020-2021 
856.4 	school year and later.

856.5 	Sec. 16. Minnesota Statutes 2017 Supplement, section 120B.35, subdivision 3, is amended 
856.6 	to read:
856.7 		Subd. 3.State growth target; other state measures. (a)(1) The state's educational 
856.8 	assessment system measuring individual students' educational growth is based on indicators 
856.9 	of achievement growth that show an individual student's prior achievement. Indicators of 
856.10 	achievement and prior achievement must be based on highly reliable statewide or districtwide
856.11 	assessments.
856.12 	(2) For purposes of paragraphs (b), (c), and (d), the commissioner must analyze and 
856.13 	report separate categories of information using the student categories identified under the 
856.14 	federal Elementary and Secondary Education Act, as most recently reauthorized, and, in 
856.15 	addition to "other" for each race and ethnicity, and the Karen community, seven of the most 
856.16 	populous Asian and Pacific Islander groups, three of the most populous Native groups, 
856.17 	seven of the most populous Hispanic/Latino groups, and five of the most populous Black 
856.18 	and African Heritage groups as determined by the total Minnesota population based on the 
856.19 	most recent American Community Survey; English learners under section 124D.59; home 
856.20 	language; free or reduced-price lunch; and all students enrolled in a Minnesota public school 
856.21 	who are currently or were previously in foster care, except that such disaggregation and 
856.22 	cross tabulation is not required if the number of students in a category is insufficient to yield 
856.23 	statistically reliable information or the results would reveal personally identifiable information 
856.24 	about an individual student.
856.25 	(b) The commissioner, in consultation with a stakeholder group that includes assessment 
856.26 	and evaluation directors, district staff, experts in culturally responsive teaching, and 
856.27 	researchers, must implement a model that uses a value-added growth indicator and includes 
856.28 	criteria for identifying schools and school districts that demonstrate medium and high growth 
856.29 	under section 120B.299, subdivisions 8 and 9, and may recommend other value-added 
856.30 	measures under section 120B.299, subdivision 3. The model may be used to advance 
856.31 	educators' professional development and replicate programs that succeed in meeting students' 
856.32 	diverse learning needs. Data on individual teachers generated under the model are personnel 
856.33 	data under section 13.43. The model must allow users to:
857.1 	(1) report student the academic growth consistent with this paragraph rates, as defined 
857.2 	in the state plan under section 120B.11, subdivision 1; and
857.3 	(2) for all student categories, report and compare aggregated and disaggregated state 
857.4 	student growth and, under section 120B.11, subdivision 2, clause (2), student learning and 
857.5 	outcome data using the student categories identified under the federal Elementary and 
857.6 	Secondary Education Act, as most recently reauthorized, and other student categories under 
857.7 	paragraph (a), clause (2).
857.8 	The commissioner must report measures of student growth and, under section 120B.11, 
857.9 	subdivision 2, clause (2), student learning and outcome data, consistent with this paragraph, 
857.10 	including the English language development, academic progress, and oral academic 
857.11 	development of English learners and their native language development if the native language 
857.12 	is used as a language of instruction, and include data on all pupils enrolled in a Minnesota 
857.13 	public school course or program who are currently or were previously counted as an English 
857.14 	learner under section 124D.59.
857.15 	(c) When reporting student performance under section 120B.36, subdivision 1, the 
857.16 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
857.17 	the extent to which current high school graduates are being prepared for postsecondary 
857.18 	academic and career opportunities:
857.19 	(1) a preparation measure indicating the number and percentage of high school graduates 
857.20 	in the most recent school year who completed course work important to preparing them for 
857.21 	postsecondary academic and career opportunities, consistent with the core academic subjects 
857.22 	required for admission to Minnesota's public colleges and universities as determined by the 
857.23 	Office of Higher Education under chapter 136A; and
857.24 	(2) a rigorous coursework measure indicating the number and percentage of high school 
857.25 	graduates in the most recent school year who successfully completed one or more 
857.26 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
857.27 	options including concurrent enrollment, other rigorous courses of study under section 
857.28 	120B.021, subdivision 1a, or industry certification courses or programs.
857.29 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
857.30 	analyze and report separate categories of information using the student categories identified 
857.31 	under the federal Elementary and Secondary Education Act, as most recently reauthorized, 
857.32 	and other student categories under paragraph (a), clause (2).
857.33 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
857.34 	commissioner annually, beginning July 1, 2014, must report summary data on school safety 
858.1 	and students' engagement and connection at school, consistent with the student categories 
858.2 	identified under paragraph (a), clause (2). The summary data under this paragraph are 
858.3 	separate from and must not be used for any purpose related to measuring or evaluating the 
858.4 	performance of classroom teachers. The commissioner, in consultation with qualified experts 
858.5 	on student engagement and connection and classroom teachers, must identify highly reliable 
858.6 	variables that generate summary data under this paragraph. The summary data may be used 
858.7 	at school, district, and state levels only. Any data on individuals received, collected, or 
858.8 	created that are used to generate the summary data under this paragraph are nonpublic data 
858.9 	under section 13.02, subdivision 9.
858.10 	(e) For purposes of statewide educational accountability, the commissioner must identify 
858.11 	and report measures that demonstrate the success of learning year program providers under 
858.12 	sections 123A.05 and 124D.68, among other such providers, in improving students' 
858.13 	graduation outcomes. The commissioner, beginning July 1, 2015, must annually report 
858.14 	summary data on:
858.15 	(1) the four- and six-year graduation rates of students under this paragraph;
858.16 	(2) the percent of students under this paragraph whose progress and performance levels 
858.17 	are meeting career and college readiness benchmarks under section 120B.30, subdivision 
858.18 	1; and
858.19 	(3) the success that learning year program providers experience in:
858.20 	(i) identifying at-risk and off-track student populations by grade;
858.21 	(ii) providing successful prevention and intervention strategies for at-risk students;
858.22 	(iii) providing successful recuperative and recovery or reenrollment strategies for off-track 
858.23 	students; and
858.24 	(iv) improving the graduation outcomes of at-risk and off-track students.
858.25 	The commissioner may include in the annual report summary data on other education 
858.26 	providers serving a majority of students eligible to participate in a learning year program.
858.27 	(f) The commissioner, in consultation with recognized experts with knowledge and 
858.28 	experience in assessing the language proficiency and academic performance of all English 
858.29 	learners enrolled in a Minnesota public school course or program who are currently or were 
858.30 	previously counted as an English learner under section 124D.59, must identify and report 
858.31 	appropriate and effective measures to improve current categories of language difficulty and 
858.32 	assessments, and monitor and report data on students' English proficiency levels, program 
858.33 	placement, and academic language development, including oral academic language.
859.1 	(g) When reporting four- and six-year graduation rates, including four-year graduation 
859.2 	rates, the commissioner or school district must disaggregate the data by student categories 
859.3 	according to paragraph (a), clause (2).
859.4 	(h) A school district must inform parents and guardians that volunteering information 
859.5 	on student categories not required by the most recent reauthorization of the Elementary and 
859.6 	Secondary Education Act is optional and will not violate the privacy of students or their 
859.7 	families, parents, or guardians. The notice must state the purpose for collecting the student 
859.8 	data.

859.9 	Sec. 17. [120B.355] ACADEMIC ACHIEVEMENT RATING SYSTEM.
859.10 		Subdivision 1.Rating system. (a) The commissioner of education must develop  an 
859.11 	academic achievement rating system consistent with this section to provide parents and 
859.12 	students with a brief overview of student performance and growth in districts, school sites, 
859.13 	and charter schools across the state.
859.14 	(b) Each district, school site, and charter school must be assigned a summative rating 
859.15 	based on a score on a scale of zero to 100.
859.16 	(c) The summative rating must be based on the accountability indicators used in the state 
859.17 	plan to identify schools for support and improvement. "State plan" as used in this section 
859.18 	means the plan submitted by the commissioner in accordance with the Elementary and 
859.19 	Secondary Education Act, as most recently authorized, and approved by the United States 
859.20 	Department of Education, including state goals.
859.21 	(d) The summative rating and score of each district, school site, and charter school must 
859.22 	be reported on the Department of Education's Web site as part of the commissioner's school 
859.23 	performance reports pursuant to section 120B.36 by September 1, 2020, and annually 
859.24 	thereafter.
859.25 	(e) The commissioner must examine how revisions to statewide assessments under 
859.26 	section 120B.30 impact school and district ratings under this section. The commissioner 
859.27 	may adjust district, school site, and charter school ratings accordingly to maintain consistency 
859.28 	in reporting.
859.29 		Subd. 2.Report. The commissioner must report on progress toward developing the 
859.30 	rating system required under subdivision 1 to the chairs and ranking minority members of 
859.31 	the legislative committees with jurisdiction over kindergarten through grade 12 education 
859.32 	in accordance with section 3.195 no later than February 1, 2020.

860.1 	Sec. 18. Minnesota Statutes 2017 Supplement, section 120B.36, subdivision 1, is amended 
860.2 	to read:
860.3 		Subdivision 1.School performance reports and public reporting. (a) The commissioner 
860.4 	shall must report:
860.5 	(1) student academic performance data under section 120B.35, subdivisions 2 and 3;
860.6 	(2) district, school site, and charter school ratings under section 120B.355;
860.7 	(3) the percentages of students showing low, medium, and high academic growth rates 
860.8 	under section 120B.35, subdivision 3, paragraph (b) the state plan as defined under section 
860.9 	120B.355;
860.10 	(4) school safety and student engagement and connection under section 120B.35, 
860.11 	subdivision 3, paragraph (d);
860.12 	(5) rigorous coursework under section 120B.35, subdivision 3, paragraph (c);
860.13 	(6) the percentage of students under section 120B.35, subdivision 3, paragraph (b), clause 
860.14 	(2), whose progress and performance levels are meeting career and college readiness 
860.15 	benchmarks under sections 120B.30, subdivision 1, and 120B.35, subdivision 3, paragraph 
860.16 	(e);
860.17 	(7) longitudinal data on the progress of eligible districts in reducing disparities in students' 
860.18 	academic achievement and realizing racial and economic integration under section 124D.861;
860.19 	(8) the acquisition of English, and where practicable, native language academic literacy, 
860.20 	including oral academic language, and the academic progress of all English learners enrolled 
860.21 	in a Minnesota public school course or program who are currently or were previously counted 
860.22 	as English learners under section 124D.59;
860.23 	(9) the percentage of students who graduated in the previous school year that correctly 
860.24 	answered at least 30 of 50 civics test questions in accordance with section 120B.02, 
860.25 	subdivision 3;
860.26 	(10) two separate student-to-teacher ratios that clearly indicate the definition of teacher 
860.27 	consistent with sections 122A.06 and 122A.15 for purposes of determining these ratios;
860.28 	(11) staff characteristics excluding salaries;
860.29 	(12) student enrollment demographics;
861.1 	(13) foster care status, including all students enrolled in a Minnesota public school course 
861.2 	or program who are currently or were previously in foster care, student homelessness, and 
861.3 	district mobility; and
861.4 	(14) extracurricular activities.
861.5 	(b) The school performance report for a school site and a school district, school site, or 
861.6 	charter school must include:
861.7 	(1) school performance reporting information and calculate proficiency, including a 
861.8 	prominent display of both the district's, school site's, or charter school's summative rating 
861.9 	and score assigned by the commissioner under section 120B.355;
861.10 	(2) academic achievement rates as required by the most recently reauthorized Elementary 
861.11 	and Secondary Education Act. state plan as defined under section 120B.355; and
861.12 	(3) progress toward statewide goals under the state plan as defined under section 
861.13 	120B.355.
861.14 	(c) The commissioner shall must develop, annually update, and post on the department 
861.15 	Web site school performance reports consistent with paragraph (a) and section 120B.11.
861.16 	(d) The commissioner must make available performance reports by the beginning of 
861.17 	each school year.
861.18 	(e) A school or district may appeal its results in a form and manner determined by the 
861.19 	commissioner and consistent with federal law. The commissioner's decision to uphold or 
861.20 	deny an appeal is final.
861.21 	(f) School performance data are nonpublic data under section 13.02, subdivision 9, until 
861.22 	the commissioner publicly releases the data. The commissioner shall must annually post 
861.23 	school performance reports to the department's public Web site no later than September 1, 
861.24 	except that in years when the reports reflect new performance standards, the commissioner 
861.25 	shall must post the school performance reports no later than October 1.

861.26 	Sec. 19. Minnesota Statutes 2016, section 120B.36, subdivision 2, is amended to read:
861.27 		Subd. 2.Student progress and other data. (a) All data the department receives, collects, 
861.28 	or creates under section 120B.11, governing the world's best workforce, or uses to determine 
861.29 	federal and set goals for expectations under the most recently reauthorized Elementary and 
861.30 	Secondary Education Act, set state growth targets, and to determine student academic
861.31 	growth, learning, and outcomes under section 120B.35 are nonpublic data under section 
861.32 	13.02, subdivision 9, until the commissioner publicly releases the data.
862.1 	(b) Districts must provide parents sufficiently detailed summary data to permit parents 
862.2 	to appeal under the most recently reauthorized federal Elementary and Secondary Education 
862.3 	Act. The commissioner shall must annually post federal expectations state goals and state 
862.4 	student growth, learning, and outcome data to the department's public Web site no later than 
862.5 	September 1, except that in years when data or federal expectations state goals reflect new 
862.6 	performance standards, the commissioner shall must post data on federal expectations state 
862.7 	goals and state student growth data no later than October 1.

862.8 	Sec. 20. [121A.12] NATIONAL MOTTO.
862.9 	(a) To the extent funds or in-kind contributions are available under paragraph (b), a 
862.10 	school board or charter school may prominently display in a conspicuous place in each 
862.11 	school an easily readable durable poster, framed copy, or mounted plaque of the national 
862.12 	motto of the United States, "In God We Trust."
862.13 	(b) A school board or charter school may accept nonpublic funds or in-kind contributions 
862.14 	to implement this section.

862.15 	Sec. 21. Minnesota Statutes 2016, section 121A.22, subdivision 1, is amended to read:
862.16 		Subdivision 1.Applicability. (a) This section applies only:
862.17 	(1) when the parent of a pupil requests school personnel to administer drugs or medicine 
862.18 	to the pupil; or
862.19 	(2) when administration is allowed by the individualized education program of a child 
862.20 	with a disability.
862.21 	The request of a parent may be oral or in writing. An oral request must be reduced to 
862.22 	writing within two school days, provided that the district may rely on an oral request until 
862.23 	a written request is received.
862.24 	(b) If the administration of a drug or medication described in paragraph (a) requires the 
862.25 	school to store the drugs or medication, the parent or legal guardian must inform the school 
862.26 	if the drug or medication is a controlled substance. For drugs or medications that are not 
862.27 	controlled substances, the request must include a provision designating the school district 
862.28 	as an authorized entity to transport the drug or medication for the purpose of destruction if 
862.29 	any unused drug or medication is left in the possession of school personnel. For drugs or 
862.30 	medications that are controlled substances, the request must specify that the parent or legal 
862.31 	guardian is required to retrieve the drug when requested by the school.

863.1 	Sec. 22. Minnesota Statutes 2016, section 121A.22, is amended by adding a subdivision 
863.2 	to read:
863.3 		Subd. 4a.Unclaimed drugs or medications. (a) Each school district must adopt a 
863.4 	procedure for the collection and transport of any unclaimed or abandoned prescription drugs 
863.5 	or over-the-counter medications left in the possession of school personnel in accordance 
863.6 	with this subdivision. The procedure must ensure that before the transportation of any 
863.7 	prescription drug under this subdivision, the school district must make a reasonable attempt 
863.8 	to return the unused prescription drug to the student's parent or legal guardian. The procedure 
863.9 	must provide that transportation of unclaimed or unused prescription drugs or 
863.10 	over-the-counter medications occur at least annually, or more frequently as determined by 
863.11 	the school district.
863.12 	(b) If the unclaimed or abandoned prescription drug is not a controlled substance as 
863.13 	defined under section 152.01, subdivision 4, or is an over-the-counter medication, the school 
863.14 	district may designate an individual to transport these drugs or medications to a designated 
863.15 	drop-off box or collection bin or may request a law enforcement agency to transport the 
863.16 	drugs or medications to a drop-off box or collection bin on behalf of the school district.
863.17 	(c) If the unclaimed or abandoned prescription drug is a controlled substance as defined 
863.18 	in section 152.01, subdivision 4, a school district or school personnel is prohibited from 
863.19 	transporting the prescription drug to a drop-off box or collection site for prescription drugs 
863.20 	identified under this paragraph. The school district must request a law enforcement agency 
863.21 	to transport the prescription drug or medication to a collection bin that complies with Drug 
863.22 	Enforcement Agency regulations, or if a bin is not available, under the agency's procedure 
863.23 	for transporting drugs.

863.24 	Sec. 23. Minnesota Statutes 2016, section 121A.39, is amended to read:
863.25 	121A.39 SCHOOL COUNSELORS.
863.26 	(a) A school district is strongly encouraged to have an adequate student-to-counselor 
863.27 	ratio for its students beginning in the 2015-2016 school year and later.
863.28 	(b) A school counselor shall must assist a student in meeting the requirements for high 
863.29 	school graduation, college and career exploration, and selection, college affordability 
863.30 	planning, and successful transitions into postsecondary education or training. As part of 
863.31 	college and career exploration, a counselor is encouraged to present and explain the career 
863.32 	opportunities and benefits offered by the United States armed forces and share information 
863.33 	provided to the counselor by armed forces recruiters. In discussing military service with a 
864.1 	student or a student's parent or guardian, a school counselor is encouraged to provide the 
864.2 	student, parent, or guardian information concerning the military enlistment test. A counselor 
864.3 	may consult with the Department of Labor and Industry to identify resources for students 
864.4 	interested in exploring career opportunities in high-wage, high-demand occupations in the 
864.5 	skilled trades and manufacturing.
864.6 	(c) A school counselor must not interfere with a student's enlistment, or intention to 
864.7 	enlist, in the armed forces.

864.8 	Sec. 24. Minnesota Statutes 2016, section 121A.41, is amended by adding a subdivision 
864.9 	to read:
864.10 		Subd. 12.Nonexclusionary disciplinary policies and practices; alternatives to pupil 
864.11 	dismissal. "Nonexclusionary disciplinary policies and practices" means policies and practices 
864.12 	that are alternatives to removing a pupil from class or dismissing a pupil from school. 
864.13 	Nothing in this subdivision diminishes a teacher's authority to remove a student from class 
864.14 	consistent with sections 121A.61, subdivision 2, and 122A.42.

864.15 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

864.16 	Sec. 25. Minnesota Statutes 2016, section 121A.45, is amended to read:
864.17 	121A.45 GROUNDS FOR DISMISSAL.
864.18 		Subdivision 1.Provision of alternative programs. No school shall dismiss any pupil 
864.19 	without attempting to provide alternative educational services Schools must consider, where 
864.20 	appropriate, using nonexclusionary disciplinary policies and practices before dismissal 
864.21 	proceedings, except where it appears that the pupil will create an immediate and substantial 
864.22 	danger to self or to surrounding persons or property.
864.23 		Subd. 2.Grounds for dismissal. A pupil may be dismissed on any of the following 
864.24 	grounds for:
864.25 	(a)(1) willful violation of any reasonable school board regulation. Such regulation must 
864.26 	be that is specific and sufficiently clear and definite to provide notice to pupils that they 
864.27 	must conform their conduct to its requirements;
864.28 	(b) (2) willful conduct that significantly disrupts the rights of others to an education, or 
864.29 	the ability of school personnel to perform their duties, or school sponsored extracurricular 
864.30 	activities; or
865.1 	(c) (3) willful conduct that endangers the pupil or other pupils, or surrounding persons, 
865.2 	including school district employees, or property of the school.
865.3 		Subd. 3.Parent notification and meeting. If a pupil's total days of removal from school 
865.4 	exceeds ten cumulative days in a school year, the school district shall make reasonable 
865.5 	attempts to convene a meeting with the pupil and the pupil's parent or guardian before 
865.6 	subsequently removing the pupil from school and, with the permission of the parent or 
865.7 	guardian, arrange for a mental health screening for the pupil. The district is not required to 
865.8 	pay for the mental health screening. The purpose of this meeting is to attempt to determine 
865.9 	the pupil's need for assessment or other services or whether the parent or guardian should 
865.10 	have the pupil assessed or diagnosed to determine whether the pupil needs treatment for a 
865.11 	mental health disorder.

865.12 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

865.13 	Sec. 26. Minnesota Statutes 2016, section 121A.46, subdivision 2, is amended to read:
865.14 		Subd. 2.Administrator notifies pupil of grounds for suspension. At the informal 
865.15 	administrative conference, a school administrator shall notify the pupil of the grounds for 
865.16 	the suspension, provide an explanation ofand explain the evidence the authorities have, 
865.17 	and the pupil maypresent the pupil's version of the facts. The pupil may present the pupil's 
865.18 	version of the facts and ask questions but is not required to do so.

865.19 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

865.20 	Sec. 27. Minnesota Statutes 2016, section 121A.46, subdivision 3, is amended to read:
865.21 		Subd. 3.Written notice of grounds for suspension. A written notice containing of 
865.22 	grounds for suspension must be personally served upon the pupil at or before the time the 
865.23 	suspension is to take effect and served upon the pupil's parent or guardian electronically or 
865.24 	by mail within 48 hours of the conference. A written notice required under this section must 
865.25 	contain:
865.26 	(1) the grounds for suspension,;
865.27 	(2) a brief statement of the facts,;
865.28 	(3) a description of the testimony,;
865.29 	(4) documents indicating the nonexclusionary disciplinary policies and practices initially 
865.30 	used with the pupil, if applicable;
865.31 	(5) the length of the suspension;
866.1 	(6) a readmission plan, that includes the pupil's date of return to school;
866.2 	(7) a request for a meeting with the pupil's parent or guardian consistent with subdivision 
866.3 	3a; and
866.4 	(8) a copy of sections 121A.40 to 121A.56, shall be personally served upon the pupil at 
866.5 	or before the time the suspension is to take effect, and upon the pupil's parent or guardian 
866.6 	by mail within 48 hours of the conference.
866.7 	The district shall must make reasonable efforts to notify the parents of the suspension by 
866.8 	telephone or electronically as soon as possible following the suspension. In the event a pupil 
866.9 	is suspended without an informal administrative conference on the grounds that the pupil 
866.10 	will create an immediate and substantial danger to surrounding persons or property, the 
866.11 	written notice shall must be served upon the pupil and the pupil's parent or guardian within 
866.12 	48 hours of the suspension. Service by mail is complete upon mailing.

866.13 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

866.14 	Sec. 28. Minnesota Statutes 2016, section 121A.46, is amended by adding a subdivision 
866.15 	to read:
866.16 		Subd. 3a.Parent notification and meeting; suspension; mental health screening. (a) 
866.17 	After suspending a pupil from school, a school official must make reasonable attempts to 
866.18 	convene a meeting with the pupil and the pupil's parent or guardian within 30 calendar days 
866.19 	of the dismissal. The purpose of the meeting is to engage the pupil's parent or guardian in 
866.20 	developing a plan to help the pupil succeed in school by addressing the behavior that led 
866.21 	to the dismissal.
866.22 	(b) If a pupil's total days of removal from school exceeds ten cumulative days in a school 
866.23 	year, the school district must make reasonable attempts to convene a meeting with the pupil 
866.24 	and the pupil's parent or guardian before subsequently removing the pupil from school and, 
866.25 	with the permission of the parent or guardian, arrange for a mental health screening for the 
866.26 	pupil. The district is not required to pay for the mental health screening. The purpose of 
866.27 	this meeting is to attempt to determine the pupil's need for assessment or other services or 
866.28 	whether the parent or guardian should have the pupil assessed or diagnosed to determine 
866.29 	whether the pupil needs treatment for a mental health disorder.

866.30 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

867.1 	Sec. 29. Minnesota Statutes 2016, section 121A.46, is amended by adding a subdivision 
867.2 	to read:
867.3 		Subd. 5.Minimum education services. School officials must give a suspended pupil 
867.4 	a reasonable opportunity to complete all school work assigned during the pupil's suspension 
867.5 	and to receive full credit for satisfactorily completing the assignments. The school principal 
867.6 	or other person having administrative control of the school building or program is encouraged 
867.7 	to designate a district or school employee as a liaison to work with the pupil's teachers to 
867.8 	allow the suspended pupil to (1) receive timely course materials and other information, and 
867.9 	(2) complete daily and weekly assignments and receive teachers' feedback.

867.10 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

867.11 	Sec. 30. Minnesota Statutes 2016, section 121A.47, subdivision 2, is amended to read:
867.12 		Subd. 2.Written notice. Written notice of intent to take action shall must:
867.13 	(a) (1) be served upon the pupil and the pupil's parent or guardian personally or by mail;
867.14 	(b) (2) contain a complete statement of the facts, a list of the witnesses and a description 
867.15 	of their testimony;
867.16 	(c) (3) explain the grounds for expelling the pupil instead of imposing nonexclusionary 
867.17 	disciplinary policies and practices under section 121A.41, subdivision 12;
867.18 	(4) state the date, time, and place of the hearing;
867.19 	(d) (5) be accompanied by a copy of sections 121A.40 to 121A.56;
867.20 	(e) (6) describe alternative educational services accorded the pupil in an attempt to avoid 
867.21 	the exclusion or expulsion proceedings; and
867.22 	(f) (7) inform the pupil and parent or guardian of the right to:
867.23 	(1) (i) have a representative of the pupil's own choosing, including legal counsel, at the 
867.24 	hearing. The district shall must advise the pupil's parent or guardian that free or low-cost 
867.25 	legal assistance may be available and that a legal assistance resource list is available from 
867.26 	the Department of Education and is posted on the department's Web site;
867.27 	(2) (ii) examine the pupil's records before the hearing;
867.28 	(3) (iii) present evidence; and
867.29 	(4) (iv) confront and cross-examine witnesses.

867.30 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

868.1 	Sec. 31. Minnesota Statutes 2016, section 121A.47, subdivision 14, is amended to read:
868.2 		Subd. 14.Admission or readmission plan. (a) A school administrator shall must prepare 
868.3 	and enforce an admission or readmission plan for any pupil who is excluded or expelled 
868.4 	from school. The plan may must include measures to improve the pupil's behavior, including
868.5 	which may include completing a character education program, consistent with section 
868.6 	120B.232, subdivision 1, and social and emotional learning, counseling, social work services, 
868.7 	mental health services, referrals for special education or 504 evaluation, and evidence-based 
868.8 	academic interventions. The plan must require parental involvement in the admission or 
868.9 	readmission process, and may indicate the consequences to the pupil of not improving the 
868.10 	pupil's behavior.
868.11 	(b) The definition of suspension under section 121A.41, subdivision 10, does not apply 
868.12 	to a student's dismissal from school for one school day or less, except as provided under 
868.13 	federal law for a student with a disability. Each suspension action may include a readmission 
868.14 	plan. A readmission plan must provide, where appropriate, alternative education services, 
868.15 	which must not be used to extend the student's current suspension period. Consistent with 
868.16 	section 125A.091, subdivision 5, a readmission plan must not obligate a parent or guardian 
868.17 	to provide psychotropic drugs to their student as a condition of readmission. School officials 
868.18 	must not use the refusal of a parent or guardian to consent to the administration of 
868.19 	psychotropic drugs to their student or to consent to a psychiatric evaluation, screening or 
868.20 	examination of the student as a ground, by itself, to prohibit the student from attending class 
868.21 	or participating in a school-related activity, or as a basis of a charge of child abuse, child 
868.22 	neglect or medical or educational neglect.

868.23 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

868.24 	Sec. 32. Minnesota Statutes 2016, section 121A.55, is amended to read:
868.25 	121A.55 POLICIES TO BE ESTABLISHED.
868.26 	(a) The commissioner of education shall promulgate guidelines to assist each school 
868.27 	board. Each school board shall must establish uniform criteria for dismissal and adopt written 
868.28 	policies and rules to effectuate the purposes of sections 121A.40 to 121A.56. The policies 
868.29 	shall must include nonexclusionary disciplinary policies and practices consistent with section 
868.30 	121A.41, subdivision 12, and emphasize preventing dismissals through early detection of 
868.31 	problems and shall. The policies must be designed to address students' pupils' inappropriate 
868.32 	behavior from recurring.
869.1 	(b) The policies shall recognize the continuing responsibility of the school for the 
869.2 	education of the pupil during the dismissal period. The school is responsible for ensuring 
869.3 	that the alternative educational services, if to be provided to the pupil wishes to take 
869.4 	advantage of them, must beare adequate to allow the pupil to make progress towards meeting 
869.5 	the graduation standards adopted under section 120B.02and, help prepare the pupil for 
869.6 	readmission, and are consistent with section 121A.46, subdivision 6.
869.7 	(c) For expulsion and exclusion dismissals:
869.8 	(1) the school district's continuing responsibility includes reviewing the pupil's school 
869.9 	work and grades on a quarterly basis to ensure the pupil is on track for readmission with 
869.10 	the pupil's peers until the student enrolls in a new district. School districts must communicate 
869.11 	on a regular basis with the pupil's parent or guardian to ensure the pupil is completing the 
869.12 	work assigned through the alternative educational services;
869.13 	(2) a pupil remains eligible for school-linked mental health services under section 
869.14 	245.4889 in the manner determined by the district until the pupil is enrolled in a new district; 
869.15 	and
869.16 	(3) the district must provide to the pupil's parent or guardian a list of mental health and 
869.17 	counseling services available to the pupil after expulsion, including community mental 
869.18 	health programs.
869.19 	(b) (d) An area learning center under section 123A.05 may not prohibit an expelled or 
869.20 	excluded pupil from enrolling solely because a district expelled or excluded the pupil. The 
869.21 	board of the area learning center may use the provisions of the Pupil Fair Dismissal Act to 
869.22 	exclude a pupil or to require an admission plan.
869.23 	(c) (e) Each school district shall must develop a policy and report it to the commissioner 
869.24 	on the appropriate use of peace and school resource officers and crisis teams to remove 
869.25 	students pupils who have an individualized education program from school grounds.

869.26 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

869.27 	Sec. 33. Minnesota Statutes 2016, section 121A.61, is amended to read:
869.28 	121A.61 DISCIPLINE AND REMOVAL OF STUDENTS PUPILS FROM CLASS.
869.29 		Subdivision 1.Required policy. Each school board must adopt a written districtwide 
869.30 	school discipline policy which includes written rules of conduct for students pupils, minimum
869.31 	potential consequences for violations of the rules, parental notification requirements, and 
869.32 	grounds and procedures for removal of a student pupil from class. The board must develop 
870.1 	the policy must be developed in consultation with administrators, teachers, employees, 
870.2 	pupils, parents, community members, law enforcement agencies, county attorney offices, 
870.3 	social service agencies, and such other individuals or organizations as the board determines 
870.4 	appropriate. A school site council may adopt additional provisions to the policy subject to 
870.5 	the approval of the school board.
870.6 		Subd. 2.Grounds for removal from class. The policy must establish the various grounds 
870.7 	for which a studentpupil may be removed from a class in the district for a period of time 
870.8 	under the procedures specified in the policy. The policy must include a procedure for 
870.9 	notifying and meeting with a student's pupil's parent or guardian to discuss the problem that 
870.10 	is causing the student pupil to be removed from class after the student pupil has been removed 
870.11 	from class more than tenfive times in one school year. The grounds in the policy must 
870.12 	include at least the following provisions as well as other grounds determined appropriate 
870.13 	by the board:
870.14 	(a) (1) willful conduct that significantly disrupts the rights of others to an education, 
870.15 	including conduct that interferes with a teacher's ability to teach or communicate effectively 
870.16 	with students pupils in a class or with the ability of other students pupils to learn;
870.17 	(b) (2) willful conduct that endangers surrounding persons, including school district 
870.18 	employees, the student pupil, or other students pupils, or the property of the school; and
870.19 	(c) (3) willful violation of any rule of conduct specified in the discipline policy adopted 
870.20 	by the board.
870.21 		Subd. 3.Policy components. The policy must include at least the following components:
870.22 	(a) rules governing student pupil conduct and procedures for informing students pupils
870.23 	of the rules;
870.24 	(b) the grounds for removal of a student pupil from a class;
870.25 	(c) the authority of the classroom teacher to remove students pupils from the classroom 
870.26 	pursuant to procedures and rules established in the district's policy;
870.27 	(d) the procedures for removal of a student pupil from a class by a teacher, school 
870.28 	administrator, or other school district employee;
870.29 	(e) the period of time for which a student pupil may be removed from a class, which 
870.30 	may not exceed five class periods for a violation of a rule of conduct;
870.31 	(f) provisions relating to the responsibility for and custody of a student pupil removed 
870.32 	from a class;
871.1 	(g) the procedures for return of a student pupil to the specified class from which the 
871.2 	student pupil has been removed;
871.3 	(h) the procedures for notifying a student pupil and the student's pupil's parents or 
871.4 	guardian of violations of the rules of conduct and of resulting disciplinary actions;
871.5 	(i) any procedures determined appropriate for encouraging early involvement of parents 
871.6 	or guardians in attempts to improve a student's pupil's behavior;
871.7 	(j) any procedures determined appropriate for encouraging early detection of behavioral 
871.8 	problems;
871.9 	(k) any procedures determined appropriate for referring a student pupil in need of special 
871.10 	education services to those services;
871.11 	(1) the procedures for consideration of whether there is a need for a further assessment 
871.12 	or of whether there is a need for a review of the adequacy of a current individualized 
871.13 	education program of a student pupil with a disability who is removed from class;
871.14 	(m) procedures for detecting and addressing chemical abuse problems of a student pupil
871.15 	while on the school premises;
871.16 	(n) the minimumpotential consequences for violations of the code of conduct;
871.17 	(o) procedures for immediate and appropriate interventions tied to violations of the code;
871.18 	(p) a provision that states that a teacher, school employee, school bus driver, or other 
871.19 	agent of a district may use reasonable force in compliance with section 121A.582 and other 
871.20 	laws;
871.21 	(q) an agreement regarding procedures to coordinate crisis services to the extent funds 
871.22 	are available with the county board responsible for implementing sections 245.487 to 
871.23 	245.4889 for students pupils with a serious emotional disturbance or other students pupils
871.24 	who have an individualized education program whose behavior may be addressed by crisis 
871.25 	intervention; and
871.26 	(r) a provision that states a student pupil must be removed from class immediately if the 
871.27 	student pupil engages in assault or violent behavior. For purposes of this paragraph, "assault" 
871.28 	has the meaning given it in section 609.02, subdivision 10. The removal shall be for a period 
871.29 	of time deemed appropriate by the principal, in consultation with the teacher.

871.30 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

872.1 	Sec. 34. Minnesota Statutes 2016, section 121A.67, is amended by adding a subdivision 
872.2 	to read:
872.3 		Subd. 3.Parent notification. A school administrator must make and document efforts 
872.4 	to immediately contact the parent or guardian of a pupil removed from a school building 
872.5 	or school grounds by a peace or school resource officer unless such notice is specifically 
872.6 	prohibited by law. If a pupil is secluded, a school administrator must make reasonable efforts 
872.7 	to notify the pupil's parent or guardian of the seclusion by the end of the same school day.

872.8 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and later.

872.9 	Sec. 35. Minnesota Statutes 2017 Supplement, section 122A.09, is amended by adding a 
872.10 	subdivision to read:
872.11 		Subd. 4b.Essential data. The Professional Educator Licensing and Standards Board 
872.12 	must maintain a list of essential data elements which must be recorded and stored about 
872.13 	each licensed and nonlicensed staff member. Each school district must provide the essential 
872.14 	data to the board in the form and manner prescribed by the board.

872.15 	Sec. 36. Minnesota Statutes 2016, section 123B.14, subdivision 7, is amended to read:
872.16 		Subd. 7.Clerk records. The clerk shall must keep a record of all meetings of the district 
872.17 	and the board in books provided by the district for that purpose. The clerk shall must, within 
872.18 	three days after an election, notify all persons elected of their election. By September 15 of 
872.19 	each year the clerk shall must file with the board a report of the revenues, expenditures and 
872.20 	balances in each fund for the preceding fiscal year. The report together with vouchers and 
872.21 	supporting documents shall must subsequently be examined by a public accountant or the 
872.22 	state auditor, either of whom shall must be paid by the district, as provided in section 
872.23 	123B.77, subdivision 3. The board shall must by resolution approve the report or require a 
872.24 	further or amended report. By September 15 of each year, the clerk shall make and transmit 
872.25 	to the commissioner certified reports, showing:
872.26 	(1) the revenues and expenditures in detail, and such other financial information required 
872.27 	by law, rule, or as may be called for by the commissioner;
872.28 	(2) the length of school term and the enrollment and attendance by grades; and
872.29 	(3) such other items of information as may be called for by the commissioner.
872.30 	The clerk shall must enter in the clerk's record book copies of all reports and of the 
872.31 	teachers' term reports, as they appear in the registers, and of the proceedings of any meeting 
872.32 	as furnished by the clerk pro tem, and keep an itemized account of all the expenses of the 
873.1 	district. The clerk shall must furnish to the auditor of the proper county, by September 30 
873.2 	of each year, an attested copy of the clerk's record, showing the amount of proposed property 
873.3 	tax voted by the district or the board for school purposes; draw and sign all orders upon the 
873.4 	treasurer for the payment of money for bills allowed by the board for salaries of officers 
873.5 	and for teachers' wages and all claims, to be countersigned by the chair. Such orders must 
873.6 	state the consideration, payee, and the fund and the clerk shall take a receipt therefor. 
873.7 	Teachers' wages shall have preference in the order in which they become due, and no money 
873.8 	applicable for teachers' wages shall be used for any other purpose, nor shall teachers' wages 
873.9 	be paid from any fund except that raised or apportioned for that purpose.

873.10 	Sec. 37. Minnesota Statutes 2016, section 124D.78, subdivision 2, is amended to read:
873.11 		Subd. 2.Resolution of concurrence. Prior to March 1, the school board or American 
873.12 	Indian school must submit to the department a copy of a resolution adopted by the American 
873.13 	Indian education parent advisory committee. The copy must be signed by the chair of the 
873.14 	committee and must state whether the committee concurs with the educational programs 
873.15 	for American Indian students offered by the school board or American Indian school. If the 
873.16 	committee does not concur with the educational programs, the reasons for nonconcurrence 
873.17 	and recommendations shall must be submitted directly to the school board with the resolution. 
873.18 	By resolution, the board must respond in writing within 60 days, in cases of nonconcurrence, 
873.19 	to each recommendation made by the committee and state its reasons for not implementing 
873.20 	the recommendations.

873.21 	Sec. 38. Minnesota Statutes 2016, section 124D.98, is amended to read:
873.22 	124D.98 LITERACY INCENTIVE AID.
873.23 		Subdivision 1.Literacy incentive aid.  A district's literacy incentive aid equals the sum 
873.24 	of the proficiency aid under subdivision 2, and the growth aid under subdivision 3.
873.25 		Subd. 2.Proficiency aid.  The proficiency aid for each school in a district that has 
873.26 	submitted to the commissioner its local literacy plan under section 120B.12, subdivision 
873.27 	4a, is equal to the product of the school's proficiency allowance times the number of third 
873.28 	grade pupils at the school on October 1 of the previous fiscal year. A school's proficiency 
873.29 	allowance is equal to the percentage of students in each building that meet or exceed 
873.30 	proficiency on the third grade reading Minnesota Comprehensive Assessment, averaged 
873.31 	across the previous three test administrations, times $530.
873.32 		Subd. 3.Growth aid.  The growth aid for each school in a district that has submitted to 
873.33 	the commissioner its local literacy plan under section 120B.12, subdivision 4a, is equal to 
874.1 	the product of the school's growth allowance times the number of fourth grade pupils enrolled 
874.2 	at the school on October 1 of the previous fiscal year. A school's growth allowance is equal 
874.3 	to the percentage of students at that school making medium or high growth, under section 
874.4 	120B.299 subdivision 4, on the fourth grade reading Minnesota Comprehensive Assessment, 
874.5 	averaged across the previous three test administrations, times $530.
874.6 		Subd. 4.Medium and high growth. (a) The definitions in this subdivision apply to this 
874.7 	section.
874.8 	(b) "Medium growth" is an assessment score within one-half standard deviation above 
874.9 	or below the average year-two assessment scores for students with similar year-one 
874.10 	assessment scores.
874.11 	(c) "High growth" is an assessment score one-half standard deviation or more above the 
874.12 	average year-two assessment scores for students with similar year-one assessment scores.

874.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2019 and later.

874.14 	Sec. 39. Minnesota Statutes 2016, section 125B.07, subdivision 6, is amended to read:
874.15 		Subd. 6.Essential data. The department shall must maintain a list of essential data 
874.16 	elements which must be recorded and stored about each pupil, licensed and nonlicensed 
874.17 	staff member, and educational program. Each school district must provide the essential data 
874.18 	to the department in the form and format prescribed by the department.

874.19 	Sec. 40. Minnesota Statutes 2017 Supplement, section 609A.03, subdivision 7a, is amended 
874.20 	to read:
874.21 		Subd. 7a.Limitations of order effective January 1, 2015, and later. (a) Upon issuance 
874.22 	of an expungement order related to a charge supported by probable cause, the DNA samples 
874.23 	and DNA records held by the Bureau of Criminal Apprehension and collected under authority 
874.24 	other than section 299C.105 shall not be sealed, returned to the subject of the record, or 
874.25 	destroyed.
874.26 	(b) Notwithstanding the issuance of an expungement order:
874.27 	(1) except as provided in clause (2), an expunged record may be opened, used, or 
874.28 	exchanged between criminal justice agencies without a court order for the purposes of 
874.29 	initiating, furthering, or completing a criminal investigation or prosecution or for sentencing 
874.30 	purposes or providing probation or other correctional services;
875.1 	(2) when a criminal justice agency seeks access to a record that was sealed under section 
875.2 	609A.02, subdivision 3, paragraph (a), clause (1), after an acquittal or a court order dismissing 
875.3 	for lack of probable cause, for purposes of a criminal investigation, prosecution, or 
875.4 	sentencing, the requesting agency must obtain an ex parte court order after stating a 
875.5 	good-faith basis to believe that opening the record may lead to relevant information;
875.6 	(3) an expunged record of a conviction may be opened for purposes of evaluating a 
875.7 	prospective employee in a criminal justice agency without a court order;
875.8 	(4) an expunged record of a conviction may be opened for purposes of a background 
875.9 	study under section 245C.08 unless the commissioner had been properly served with notice 
875.10 	of the petition for expungement and the court order for expungement is directed specifically 
875.11 	to the commissioner of human services;
875.12 	(5) an expunged record of a conviction may be opened for purposes of a background 
875.13 	check required under section 122A.18, subdivision 8, unless the court order for expungement 
875.14 	is directed specifically to the Professional Educator Licensing and Standards Board or the 
875.15 	licensing division of the Department of Education; and
875.16 	(6) the court may order an expunged record opened upon request by the victim of the 
875.17 	underlying offense if the court determines that the record is substantially related to a matter 
875.18 	for which the victim is before the court.
875.19 	(c) An agency or jurisdiction subject to an expungement order shall maintain the record 
875.20 	in a manner that provides access to the record by a criminal justice agency under paragraph 
875.21 	(b), clause (1) or (2), but notifies the recipient that the record has been sealed. The Bureau 
875.22 	of Criminal Apprehension shall notify the commissioner of human services, and the 
875.23 	Professional Educator Licensing and Standards Board, or the licensing division of the 
875.24 	Department of Education of the existence of a sealed record and of the right to obtain access 
875.25 	under paragraph (b), clause (4) or (5). Upon request, the agency or jurisdiction subject to 
875.26 	the expungement order shall provide access to the record to the commissioner of human 
875.27 	services, or the Professional Educator Licensing and Standards Board, or the licensing 
875.28 	division of the Department of Education under paragraph (b), clause (4) or (5).
875.29 	(d) An expunged record that is opened or exchanged under this subdivision remains 
875.30 	subject to the expungement order in the hands of the person receiving the record.
875.31 	(e) A criminal justice agency that receives an expunged record under paragraph (b), 
875.32 	clause (1) or (2), must maintain and store the record in a manner that restricts the use of the 
875.33 	record to the investigation, prosecution, or sentencing for which it was obtained.
876.1 	(f) For purposes of this section, a "criminal justice agency" means a court or government 
876.2 	agency that performs the administration of criminal justice under statutory authority.
876.3 	(g) This subdivision applies to expungement orders subject to its limitations and effective 
876.4 	on or after January 1, 2015.

876.5 	Sec. 41. Minnesota Statutes 2017 Supplement, section 626.556, subdivision 2, is amended 
876.6 	to read:
876.7 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
876.8 	given them unless the specific content indicates otherwise:
876.9 	(a) "Accidental" means a sudden, not reasonably foreseeable, and unexpected occurrence 
876.10 	or event which:
876.11 	(1) is not likely to occur and could not have been prevented by exercise of due care; and
876.12 	(2) if occurring while a child is receiving services from a facility, happens when the 
876.13 	facility and the employee or person providing services in the facility are in compliance with 
876.14 	the laws and rules relevant to the occurrence or event.
876.15 	(b) "Commissioner" means the commissioner of human services.
876.16 	(c) "Facility" means:
876.17 	(1) a licensed or unlicensed day care facility, certified license-exempt child care center, 
876.18 	residential facility, agency, hospital, sanitarium, or other facility or institution required to 
876.19 	be licensed under sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or chapter 
876.20 	144H, 245D, or 245H;
876.21 	(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E; 
876.22 	or
876.23 	(3) a nonlicensed personal care provider organization as defined in section 256B.0625, 
876.24 	subdivision 19a.
876.25 	(d) "Family assessment" means a comprehensive assessment of child safety, risk of 
876.26 	subsequent child maltreatment, and family strengths and needs that is applied to a child 
876.27 	maltreatment report that does not allege sexual abuse or substantial child endangerment. 
876.28 	Family assessment does not include a determination as to whether child maltreatment 
876.29 	occurred but does determine the need for services to address the safety of family members 
876.30 	and the risk of subsequent maltreatment.
877.1 	(e) "Investigation" means fact gathering related to the current safety of a child and the 
877.2 	risk of subsequent maltreatment that determines whether child maltreatment occurred and 
877.3 	whether child protective services are needed. An investigation must be used when reports 
877.4 	involve sexual abuse or substantial child endangerment, and for reports of maltreatment in 
877.5 	facilities required to be licensed or certified under chapter 245A, 245D, or 245H; under 
877.6 	sections 144.50 to 144.58 and 241.021; in a school as defined in section 120A.05, 
877.7 	subdivisions 9, 11, and 13, and chapter 124E; or in a nonlicensed personal care provider 
877.8 	association as defined in section 256B.0625, subdivision 19a.
877.9 	(f) "Mental injury" means an injury to the psychological capacity or emotional stability 
877.10 	of a child as evidenced by an observable or substantial impairment in the child's ability to 
877.11 	function within a normal range of performance and behavior with due regard to the child's 
877.12 	culture.
877.13 	(g) "Neglect" means the commission or omission of any of the acts specified under 
877.14 	clauses (1) to (9), other than by accidental means:
877.15 	(1) failure by a person responsible for a child's care to supply a child with necessary 
877.16 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
877.17 	mental health when reasonably able to do so;
877.18 	(2) failure to protect a child from conditions or actions that seriously endanger the child's 
877.19 	physical or mental health when reasonably able to do so, including a growth delay, which 
877.20 	may be referred to as a failure to thrive, that has been diagnosed by a physician and is due 
877.21 	to parental neglect;
877.22 	(3) failure to provide for necessary supervision or child care arrangements appropriate 
877.23 	for a child after considering factors as the child's age, mental ability, physical condition, 
877.24 	length of absence, or environment, when the child is unable to care for the child's own basic 
877.25 	needs or safety, or the basic needs or safety of another child in their care;
877.26 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
877.27 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
877.28 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 
877.29 	5;
877.30 	(5) nothing in this section shall be construed to mean that a child is neglected solely 
877.31 	because the child's parent, guardian, or other person responsible for the child's care in good 
877.32 	faith selects and depends upon spiritual means or prayer for treatment or care of disease or 
877.33 	remedial care of the child in lieu of medical care; except that a parent, guardian, or caretaker, 
877.34 	or a person mandated to report pursuant to subdivision 3, has a duty to report if a lack of 
878.1 	medical care may cause serious danger to the child's health. This section does not impose 
878.2 	upon persons, not otherwise legally responsible for providing a child with necessary food, 
878.3 	clothing, shelter, education, or medical care, a duty to provide that care;
878.4 	(6) prenatal exposure to a controlled substance, as defined in section 253B.02, subdivision 
878.5 	2, used by the mother for a nonmedical purpose, as evidenced by withdrawal symptoms in 
878.6 	the child at birth, results of a toxicology test performed on the mother at delivery or the 
878.7 	child at birth, medical effects or developmental delays during the child's first year of life 
878.8 	that medically indicate prenatal exposure to a controlled substance, or the presence of a 
878.9 	fetal alcohol spectrum disorder;
878.10 	(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
878.11 	(8) chronic and severe use of alcohol or a controlled substance by a parent or person 
878.12 	responsible for the care of the child that adversely affects the child's basic needs and safety; 
878.13 	or
878.14 	(9) emotional harm from a pattern of behavior which contributes to impaired emotional 
878.15 	functioning of the child which may be demonstrated by a substantial and observable effect 
878.16 	in the child's behavior, emotional response, or cognition that is not within the normal range 
878.17 	for the child's age and stage of development, with due regard to the child's culture.
878.18 	(h) "Nonmaltreatment mistake" means:
878.19 	(1) at the time of the incident, the individual was performing duties identified in the 
878.20 	center's child care program plan required under Minnesota Rules, part 9503.0045;
878.21 	(2) the individual has not been determined responsible for a similar incident that resulted 
878.22 	in a finding of maltreatment for at least seven years;
878.23 	(3) the individual has not been determined to have committed a similar nonmaltreatment 
878.24 	mistake under this paragraph for at least four years;
878.25 	(4) any injury to a child resulting from the incident, if treated, is treated only with 
878.26 	remedies that are available over the counter, whether ordered by a medical professional or 
878.27 	not; and
878.28 	(5) except for the period when the incident occurred, the facility and the individual 
878.29 	providing services were both in compliance with all licensing requirements relevant to the 
878.30 	incident.
878.31 	This definition only applies to child care centers licensed under Minnesota Rules, chapter 
878.32 	9503. If clauses (1) to (5) apply, rather than making a determination of substantiated 
879.1 	maltreatment by the individual, the commissioner of human services shall determine that a 
879.2 	nonmaltreatment mistake was made by the individual.
879.3 	(i) "Operator" means an operator or agency as defined in section 245A.02.
879.4 	(j) "Person responsible for the child's care" means (1) an individual functioning within 
879.5 	the family unit and having responsibilities for the care of the child such as a parent, guardian, 
879.6 	or other person having similar care responsibilities, or (2) an individual functioning outside 
879.7 	the family unit and having responsibilities for the care of the child such as a teacher, school 
879.8 	administrator, other school employees or agents, or other lawful custodian of a child having 
879.9 	either full-time or short-term care responsibilities including, but not limited to, day care, 
879.10 	babysitting whether paid or unpaid, counseling, teaching, and coaching.
879.11 	(k) "Physical abuse" means any physical injury, mental injury, or threatened injury, 
879.12 	inflicted by a person responsible for the child's care on a child other than by accidental 
879.13 	means, or any physical or mental injury that cannot reasonably be explained by the child's 
879.14 	history of injuries, or any aversive or deprivation procedures, or regulated interventions, 
879.15 	that have not been authorized under section 125A.0942 or 245.825.
879.16 	Abuse does not include reasonable and moderate physical discipline of a child 
879.17 	administered by a parent or legal guardian which does not result in an injury. Abuse does 
879.18 	not include the use of reasonable force by a teacher, principal, or school employee as allowed 
879.19 	by section 121A.582. Actions which are not reasonable and moderate include, but are not 
879.20 	limited to, any of the following:
879.21 	(1) throwing, kicking, burning, biting, or cutting a child;
879.22 	(2) striking a child with a closed fist;
879.23 	(3) shaking a child under age three;
879.24 	(4) striking or other actions which result in any nonaccidental injury to a child under 18 
879.25 	months of age;
879.26 	(5) unreasonable interference with a child's breathing;
879.27 	(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
879.28 	(7) striking a child under age one on the face or head;
879.29 	(8) striking a child who is at least age one but under age four on the face or head, which 
879.30 	results in an injury;
879.31 	(9) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled 
879.32 	substances which were not prescribed for the child by a practitioner, in order to control or 
880.1 	punish the child; or other substances that substantially affect the child's behavior, motor 
880.2 	coordination, or judgment or that results in sickness or internal injury, or subjects the child 
880.3 	to medical procedures that would be unnecessary if the child were not exposed to the 
880.4 	substances;
880.5 	(10) unreasonable physical confinement or restraint not permitted under section 609.379, 
880.6 	including but not limited to tying, caging, or chaining; or
880.7 	(11) in a school facility or school zone, an act by a person responsible for the child's 
880.8 	care that is a violation under section 121A.58.
880.9 	(l) "Practice of social services," for the purposes of subdivision 3, includes but is not 
880.10 	limited to employee assistance counseling and the provision of guardian ad litem and 
880.11 	parenting time expeditor services.
880.12 	(m) "Report" means any communication received by the local welfare agency, police 
880.13 	department, county sheriff, or agency responsible for child protection pursuant to this section 
880.14 	that describes neglect or physical or sexual abuse of a child and contains sufficient content 
880.15 	to identify the child and any person believed to be responsible for the neglect or abuse, if 
880.16 	known.
880.17 	(n) "Sexual abuse" means the subjection of a child by a person responsible for the child's 
880.18 	care, by a person who has a significant relationship to the child, as defined in section 609.341, 
880.19 	or by a person in a position of authority, as defined in section 609.341, subdivision 10, to 
880.20 	any act which constitutes a violation of section 609.342 (criminal sexual conduct in the first 
880.21 	degree), 609.343 (criminal sexual conduct in the second degree), 609.344 (criminal sexual 
880.22 	conduct in the third degree), 609.345 (criminal sexual conduct in the fourth degree), or
880.23 	609.3451 (criminal sexual conduct in the fifth degree), or 609.352 (solicitation of children 
880.24 	to engage in sexual conduct; communication of sexually explicit materials to children). 
880.25 	Sexual abuse also includes any act which involves a minor which constitutes a violation of 
880.26 	prostitution offenses under sections 609.321 to 609.324 or 617.246. Effective May 29, 2017, 
880.27 	sexual abuse includes all reports of known or suspected child sex trafficking involving a 
880.28 	child who is identified as a victim of sex trafficking. Sexual abuse includes child sex 
880.29 	trafficking as defined in section 609.321, subdivisions 7a and 7b. Sexual abuse includes 
880.30 	threatened sexual abuse which includes the status of a parent or household member who 
880.31 	has committed a violation which requires registration as an offender under section 243.166, 
880.32 	subdivision 1b, paragraph (a) or (b), or required registration under section 243.166, 
880.33 	subdivision 1b, paragraph (a) or (b).
881.1 	(o) "Substantial child endangerment" means a person responsible for a child's care, by 
881.2 	act or omission, commits or attempts to commit an act against a child under their care that 
881.3 	constitutes any of the following:
881.4 	(1) egregious harm as defined in section 260C.007, subdivision 14;
881.5 	(2) abandonment under section 260C.301, subdivision 2;
881.6 	(3) neglect as defined in paragraph (g), clause (2), that substantially endangers the child's 
881.7 	physical or mental health, including a growth delay, which may be referred to as failure to 
881.8 	thrive, that has been diagnosed by a physician and is due to parental neglect;
881.9 	(4) murder in the first, second, or third degree under section 609.185, 609.19, or 609.195;
881.10 	(5) manslaughter in the first or second degree under section 609.20 or 609.205;
881.11 	(6) assault in the first, second, or third degree under section 609.221, 609.222, or 609.223;
881.12 	(7) solicitation, inducement, and promotion of prostitution under section 609.322;
881.13 	(8) criminal sexual conduct under sections 609.342 to 609.3451;
881.14 	(9) solicitation of children to engage in sexual conduct under section 609.352;
881.15 	(10) malicious punishment or neglect or endangerment of a child under section 609.377 
881.16 	or 609.378;
881.17 	(11) use of a minor in sexual performance under section 617.246; or
881.18 	(12) parental behavior, status, or condition which mandates that the county attorney file 
881.19 	a termination of parental rights petition under section 260C.503, subdivision 2.
881.20 	(p) "Threatened injury" means a statement, overt act, condition, or status that represents 
881.21 	a substantial risk of physical or sexual abuse or mental injury. Threatened injury includes, 
881.22 	but is not limited to, exposing a child to a person responsible for the child's care, as defined 
881.23 	in paragraph (j), clause (1), who has:
881.24 	(1) subjected a child to, or failed to protect a child from, an overt act or condition that 
881.25 	constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a similar law 
881.26 	of another jurisdiction;
881.27 	(2) been found to be palpably unfit under section 260C.301, subdivision 1, paragraph 
881.28 	(b), clause (4), or a similar law of another jurisdiction;
881.29 	(3) committed an act that has resulted in an involuntary termination of parental rights 
881.30 	under section 260C.301, or a similar law of another jurisdiction; or
882.1 	(4) committed an act that has resulted in the involuntary transfer of permanent legal and 
882.2 	physical custody of a child to a relative under Minnesota Statutes 2010, section 260C.201, 
882.3 	subdivision 11, paragraph (d), clause (1), section 260C.515, subdivision 4, or a similar law 
882.4 	of another jurisdiction.
882.5 	A child is the subject of a report of threatened injury when the responsible social services 
882.6 	agency receives birth match data under paragraph (q) from the Department of Human 
882.7 	Services.
882.8 	(q) Upon receiving data under section 144.225, subdivision 2b, contained in a birth 
882.9 	record or recognition of parentage identifying a child who is subject to threatened injury 
882.10 	under paragraph (p), the Department of Human Services shall send the data to the responsible 
882.11 	social services agency. The data is known as "birth match" data. Unless the responsible 
882.12 	social services agency has already begun an investigation or assessment of the report due 
882.13 	to the birth of the child or execution of the recognition of parentage and the parent's previous 
882.14 	history with child protection, the agency shall accept the birth match data as a report under 
882.15 	this section. The agency may use either a family assessment or investigation to determine 
882.16 	whether the child is safe. All of the provisions of this section apply. If the child is determined 
882.17 	to be safe, the agency shall consult with the county attorney to determine the appropriateness 
882.18 	of filing a petition alleging the child is in need of protection or services under section 
882.19 	260C.007, subdivision 6, clause (16), in order to deliver needed services. If the child is 
882.20 	determined not to be safe, the agency and the county attorney shall take appropriate action 
882.21 	as required under section 260C.503, subdivision 2.
882.22 	(r) Persons who conduct assessments or investigations under this section shall take into 
882.23 	account accepted child-rearing practices of the culture in which a child participates and 
882.24 	accepted teacher discipline practices, which are not injurious to the child's health, welfare, 
882.25 	and safety.

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

882.27 	Sec. 42. Laws 2016, chapter 189, article 25, section 61, is amended to read:
882.28 	Sec. 61. CERTIFICATION INCENTIVE REVENUE.
 882.29 		Subdivision 1.Qualifying certificates. As soon as practicable, the commissioner of 
882.30 	education, in consultation with the Governor's Workforce Development Council established 
882.31 	under Minnesota Statutes, section 116L.665, and the P-20 education partnership operating 
882.32 	under Minnesota Statutes, section 127A.70, must establish the list of qualifying career and 
882.33 	technical certificates and post the names of those certificates on the Department of 
883.1 	Education's Web site. The certificates must be in fields where occupational opportunities 
883.2 	exist.
883.3 		Subd. 2.School district participation. (a) A school board may adopt a policy authorizing 
883.4 	its students in grades 9 through 12, including its students enrolled in postsecondary enrollment 
883.5 	options courses under Minnesota Statutes, section 124D.09, the opportunity to complete a 
883.6 	qualifying certificate. The certificate may be completed as part of a regularly scheduled 
883.7 	course.
883.8 	(b) A school district may register a student for any assessment necessary to complete a 
883.9 	qualifying certificate and pay any associated registration fees for its students.
883.10 		Subd. 3.Incentive funding. (a) A school district's career and technical certification aid 
883.11 	equals $500 times the district's number of students enrolled during the current fiscal year 
883.12 	who have obtained one or more qualifying certificates during the current fiscal year.
883.13 	(b) The statewide total certificate revenue must not exceed $1,000,000 $400,000 for the 
883.14 	2016-2017, 2017-2018, and 2018-2019 school years. The commissioner must proportionately 
883.15 	reduce the initial aid provided under this subdivision so that the statewide aid cap is not 
883.16 	exceeded.
883.17 		Subd. 4.Reports to the legislature. (a) The commissioner of education must report to 
883.18 	the committees of the legislature with jurisdiction over kindergarten through grade 12 
883.19 	education and higher education by February 1, 2017, on the number and types of certificates 
883.20 	authorized for the 2016-2017 school year. The commissioner must also recommend whether 
883.21 	the pilot program should be continued.
883.22 	(b) By February 1, of 2018, 2019, and 2020, the commissioner of education must report 
883.23 	to the committees of the legislature with jurisdiction over kindergarten through grade 12 
883.24 	education and higher education about the number and types of certificates earned by 
883.25 	Minnesota's students during the 2016-2017 prior school year.

883.26 	Sec. 43. Laws 2016, chapter 189, article 25, section 62, subdivision 15, is amended to 
883.27 	read:
883.28 		Subd. 15.Certificate incentive funding. (a) For the certificate incentive program:

883.30883.29
		$
	1,000,000
400,000
	.....
	2017
	
883.31 	(b) $600,000 of the $1,000,000 appropriation in Laws 2016, chapter 189, article 25, 
883.32 	section 62, subdivision 15, is canceled to the general fund.
884.1 	(c) Of this amount, $3,000 is for the administrative expenses associated with the reports 
884.2 	required for 2019 and 2020. This is a onetime appropriation. This appropriation is available 
884.3 	until June 30, 2019.

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

884.5 	Sec. 44. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 12, 
884.6 	is amended to read:
884.7 		Subd. 12.Museums and education centers. For grants to museums and education 
884.8 	centers:

884.9		$
	460,000
	.....
	2018
	
884.11884.10
		$
	460,000
491,000
	.....
	2019
	
884.12 	(a) $319,000 each year is for the Minnesota Children's Museum. Of the amount in this 
884.13 	paragraph, $50,000 in each year is for the Minnesota Children's Museum, Rochester.
884.14 	(b) $50,000 each year is for the Duluth Children's Museum.
884.15 	(c) $41,000 each year is for the Minnesota Academy of Science.
884.16 	(d) $50,000 each year is for the Headwaters Science Center.
884.17 	(e) $31,000 in fiscal year 2019 only is for the Judy Garland Museum for the Children's 
884.18 	Discovery Museum of Grand Rapids. Of this amount, up to three percent is for administering 
884.19 	the grant.
884.20 	Any balance in the first year does not cancel but is available in the second year.
884.21 	The base in fiscal year 2020 is $460,000.

884.22 	Sec. 45. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 14, 
884.23 	is amended to read:
884.24 		Subd. 14.Singing-based pilot program to improve student reading. (a) For a grant 
884.25 	to pilot a research-supported, computer-based educational program that uses singing to 
884.26 	improve the reading ability of students in grades 2 through 5:

884.27		$
	500,000
	.....
	2018
	
884.28		$
	0
	.....
	2019
	
884.29 	(b) The commissioner of education shall award a grant to the Rock 'n' Read Project to 
884.30 	implement a research-supported, computer-based educational program that uses singing to 
884.31 	improve the reading ability of students in grades 2 through 5. The grantee shall be responsible 
885.1 	for selecting participating school sites; providing any required hardware and software, 
885.2 	including software licenses, for the duration of the grant period; providing technical support, 
885.3 	training, and staff to install required project hardware and software; providing on-site 
885.4 	professional development and instructional monitoring and support for school staff and 
885.5 	students; administering preintervention and postintervention reading assessments; evaluating 
885.6 	the impact of the intervention; and other project management services as required. To the 
885.7 	extent practicable, the grantee must select participating schools in urban, suburban, and 
885.8 	greater Minnesota, and give priority to schools in which a high proportion of students do 
885.9 	not read proficiently at grade level and are eligible for free or reduced-price lunch.
885.10 	(c) By February 15, 2019, the grantee must submit a report detailing expenditures and 
885.11 	outcomes of the grant to the commissioner of education and the chairs and ranking minority 
885.12 	members of the legislative committees with primary jurisdiction over kindergarten through 
885.13 	grade 12 education policy and finance.
885.14 	(d) This is a onetime appropriation.
885.15 	(e) Any balance in the first year does not cancel but is available in the second year.

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

885.17 	Sec. 46. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 23, 
885.18 	is amended to read:
885.19 		Subd. 23.Paraprofessional pathway Grow Your Own pathways to teacher licensure.
 885.20 	(a) For grants to school districts for Grow Your Own new teacher programs:

885.21		$
	1,500,000
	.....
	2018
	
885.22		$
	1,500,000
	.....
	2019
	
885.23 	(b) The grants in paragraph (a) are for school districts with more than and charter schools 
885.24 	where at least 30 percent of the school district's or charter school's students served are 
885.25 	students of color or American Indian students minority students for a Board of 
885.26 	Teaching-approved Professional Educator Licensing and Standards Board-approved
885.27 	nonconventional teacher residency pilot program. The program must provide tuition 
885.28 	scholarships or stipends to enable school district and charter school employees or community 
885.29 	members affiliated with a school district or charter school who seek an education license 
885.30 	to participate in a nonconventional teacher preparation program. School districts and charter 
885.31 	schools that receive funds under this subdivision are strongly encouraged to recruit candidates 
885.32 	of color and American Indian candidates to participate in the Grow Your Own new teacher 
885.33 	programs. Districts or schools providing financial support may require a commitment as 
886.1 	determined by the district to teach in the district or school for a reasonable amount of time 
886.2 	that does not exceed five years.
886.3 	(c) School districts and charter schools may also apply for grants to develop innovative 
886.4 	expanded Grow Your Own programs that encourage secondary school students to pursue 
886.5 	teaching, including developing and offering dual-credit postsecondary course options in 
886.6 	schools for "Introduction to Teaching" or "Introduction to Education" courses consistent 
886.7 	with Minnesota Statutes, section 124D.09, subdivision 10.
886.8 	(d) Programs must annually report to the commissioner by the date determined by the 
886.9 	commissioner on their activities under this section, including the number of participants, 
886.10 	the percentage of participants who are of color or who are American Indian, and an 
886.11 	assessment of program effectiveness, including participant feedback, areas for improvement, 
886.12 	the percentage of participants continuing to pursue teacher licensure, and the number of 
886.13 	participants hired in the school or district as teachers after completing preparation programs.
886.14 	(e) The department may retain up to three percent of the appropriation amount to monitor 
886.15 	and administer the grant program.
886.16 	(f) Any balance in the first year does not cancel but is available in the second year.

886.17 	Sec. 47. APPROPRIATIONS.
 886.18 		Subdivision 1.Department of Education. The sums indicated in this section are 
886.19 	appropriated from the general fund to the Department of Education for the fiscal years 
886.20 	designated.
886.21 		Subd. 2.Online access to music education. (a) For a grant to the MacPhail Center for 
886.22 	Music to broaden access to music education in rural Minnesota:

886.23		$
	125,000
	.....
	2019
	
886.24 	(b) The MacPhail Center must use the grant under paragraph (a) to broaden access to 
886.25 	music education in rural Minnesota. The program must supplement and enhance an existing 
886.26 	program and may provide individual instruction, sectional ensembles, and other group 
886.27 	activities, workshops, and early childhood music activities. The MacPhail Center must 
886.28 	design its program in consultation with music educators who teach in rural Minnesota. The 
886.29 	grants may be used by the MacPhail Center for employee costs and for any related travel 
886.30 	costs.
886.31 	(c) Upon request from a school's music educator, the MacPhail Center may enter into 
886.32 	an agreement with the school to provide a program according to paragraph (b). In an early 
887.1 	childhood setting, the MacPhail Center may provide a program upon a request initiated by 
887.2 	an early childhood educator.
887.3 	(d) By January 15, 2020, the MacPhail Center shall prepare and submit a report to the 
887.4 	legislature describing the online programs offered, program outcomes, the students served, 
887.5 	an estimate of the unmet need for music education, and a detailed list of expenditures for 
887.6 	the previous fiscal year.
887.7 	(e) Of this amount, up to three percent is for administering the grant. This is a onetime 
887.8 	appropriation.
887.9 		Subd. 3.Mounds View early college aid. (a) For Independent School District No. 621, 
887.10 	Mounds View:

887.11		$
	200,000
	.....
	2019
	
887.12 	(b) The amount awarded under this subdivision must be used to provide scholarships 
887.13 	for teachers who teach secondary school courses for postsecondary credit through the 
887.14 	district's early college program to enroll in up to 18 graduate credits in an applicable subject 
887.15 	area. The district and the State Partnership are encouraged to collaborate to avoid duplication 
887.16 	of service and, to the extent practicable, provide district teachers access to the State 
887.17 	Partnership's continuing education program established in accordance with Laws 2017, First 
887.18 	Special Session chapter 5, article 2, section 48.
887.19 	(c) Of this amount, up to three percent is for administering the grant. This is a onetime 
887.20 	appropriation.
887.21 	(d) The fiscal year 2019 appropriation is available until June 30, 2022. Any remaining 
887.22 	balance is canceled to the general fund.
887.23 		Subd. 4.Vocational enrichment revenue. (a) For vocational enrichment grants to school 
887.24 	districts, including Independent School District No. 2752, Fairmont, for career and technical 
887.25 	education in extended week and summer school programs:

887.26		$
	150,000
	.....
	2019
	
887.27 	(b) A school district must apply for a grant in the form and manner specified by the 
887.28 	commissioner. The maximum amount of a vocational enrichment grant equals the product 
887.29 	of:
887.30 	(1) $5,117;
887.31 	(2) 1.2;
887.32 	(3) the number of students participating in the program; and
888.1 	(4) the ratio of the actual hours of service provided to each student to 1,020.
888.2 	(c) If applications for funding exceed the amount appropriated for the program, the 
888.3 	commissioner must prioritize grants to programs in the following pathways: welding; 
888.4 	construction trades; automotive technology; household electrical skills; heating, ventilation, 
888.5 	and air conditioning; plumbing; culinary arts; and agriculture.
888.6 	(d) Of this amount, up to three percent is for administering the grant. This is a onetime 
888.7 	appropriation.
888.8 	(e) The fiscal year 2019 appropriation is available until June 30, 2021.

888.9 	Sec. 48. REVISOR'S INSTRUCTION.
 888.10 	(a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in 
888.11 	column A to the references listed in column B.

888.12	Column A
	Column B
	
888.13	136D.01
	123C.01
	
888.14	136D.21
	123C.21
	
888.15	136D.22
	123C.22
	
888.16	136D.23
	123C.23
	
888.17	136D.24
	123C.24
	
888.18	136D.25
	123C.25
	
888.19	136D.26
	123C.26
	
888.20	136D.281
	123C.27
	
888.21	136D.29
	123C.28
	
888.22	136D.31
	123C.29
	
888.23	136D.41
	123C.41
	
888.24	136D.42
	123C.42
	
888.25	136D.43
	123C.43
	
888.26	136D.44
	123C.44
	
888.27	136D.45
	123C.45
	
888.28	136D.46
	123C.46
	
888.29	136D.47
	123C.47
	
888.30	136D.48
	123C.48
	
888.31	136D.49
	123C.49
	
888.32	136D.71
	123C.71
	
888.33	136D.72
	123C.72
	
888.34	136D.73
	123C.73
	
888.35	136D.74
	123C.74
	
889.1	136D.741
	123C.75
	
889.2	136D.76
	123C.76
	
889.3	136D.81
	123C.81
	
889.4	136D.82
	123C.82
	
889.5	136D.83
	123C.83
	
889.6	136D.84
	123C.84
	
889.7	136D.85
	123C.85
	
889.8	136D.86
	123C.86
	
889.9	136D.88
	123C.87
	
889.10	136D.90
	123C.88
	
889.11	136D.92
	123C.89
	
889.12	136D.93
	123C.90
	
889.13	136D.94
	123C.91
	
889.14 	(b) The revisor of statutes shall make necessary cross-reference changes in Minnesota 
889.15 	Statutes and Minnesota Rules consistent with renumbering of Minnesota Statutes, chapter 
889.16 	136D in this act, and if Minnesota Statutes, chapter 136D, is further amended in the 2018 
889.17 	legislative session, shall codify the amendments in a manner consistent with this act. The 
889.18 	revisor may make necessary changes to sentence structure to preserve the meaning of the 
889.19 	text.

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

889.21 	Sec. 49.  REPEALER.
 889.22 	(a) Minnesota Statutes 2016, section 120B.299, subdivisions 7, 8, 9, and 11, are repealed.
889.23 	(b) Laws 2016, chapter 189, article 25, section 62, subdivision 16, is repealed.

889.24 	EFFECTIVE DATE. Paragraph (a) is effective July 1, 2018. Paragraph (b) is effective 
889.25 	the day following final enactment.

889.26 	ARTICLE 49
889.27 	TEACHERS

889.28 	Section 1. [122A.051] CODE OF ETHICS.
889.29 		Subdivision 1.Scope. Each teacher, upon entering the teaching profession, assumes a 
889.30 	number of obligations, one of which is to adhere to a set of principles that defines professional 
889.31 	conduct. These principles are reflected in the code of ethics, which sets forth to the education 
889.32 	profession and the public it serves standards of professional conduct. This code applies to 
890.1 	all persons licensed according to rules established by the Professional Educator Licensing 
890.2 	and Standards Board.
890.3 		Subd. 2.Standards of professional conduct. (a) A teacher must provide professional 
890.4 	education services in a nondiscriminatory manner, including not discriminating on the basis 
890.5 	of political, ideological, or religious beliefs.
890.6 	(b) A teacher must make reasonable effort to protect students from conditions harmful 
890.7 	to health and safety.
890.8 	(c) In accordance with state and federal laws, a teacher must disclose confidential 
890.9 	information about individuals only when a compelling professional purpose is served or 
890.10 	when required by law.
890.11 	(d) A teacher must take reasonable disciplinary action in exercising the authority to 
890.12 	provide an atmosphere conducive to learning.
890.13 	(e) A teacher must not use professional relationships with students, parents, and 
890.14 	colleagues to personal advantage.
890.15 	(f) A teacher must delegate authority for teaching responsibilities only to licensed 
890.16 	personnel or as otherwise provided by law.
890.17 	(g) A teacher must not deliberately suppress or distort subject matter.
890.18 	(h) A teacher must not knowingly falsify or misrepresent records or facts relating to that 
890.19 	teacher's own qualifications or to other teachers' qualifications.
890.20 	(i) A teacher must not knowingly make false or malicious statements about students or 
890.21 	colleagues.
890.22 	(j) A teacher must accept a contract for a teaching position that requires licensing only 
890.23 	if properly or provisionally licensed for that position.
890.24 	(k) A teacher must not engage in any sexual contact with a student.

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

890.26 	Sec. 2. Minnesota Statutes 2017 Supplement, section 122A.07, is amended by adding a 
890.27 	subdivision to read:
890.28 		Subd. 6.Public employer compensation reduction prohibited. The public employer 
890.29 	of a member shall not reduce the member's compensation or benefits for the member's 
890.30 	absence from employment when engaging in the business of the board.

891.1 	Sec. 3. Minnesota Statutes 2017 Supplement, section 122A.09, subdivision 2, is amended 
891.2 	to read:
891.3 		Subd. 2.Advise members of profession. (a) The Professional Educator Licensing and 
891.4 	Standards Board must act in an advisory capacity to members of the profession in matters 
891.5 	of interpretation of the code of ethics in section 122A.051.
891.6 	(b) The board must develop a process for a school district to receive a written complaint 
891.7 	about a teacher under the code of ethics and forward the complaint to the board. A school 
891.8 	board must inform parents and guardians in the school district of their ability to submit a 
891.9 	complaint to the school board under this section.

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

891.11 	Sec. 4. Minnesota Statutes 2017 Supplement, section 122A.18, subdivision 8, is amended 
891.12 	to read:
891.13 		Subd. 8.Background checks. (a) The Professional Educator Licensing and Standards 
891.14 	Board and the Board of School Administrators must request a criminal history background 
891.15 	check from the superintendent of the Bureau of Criminal Apprehension on all first-time 
891.16 	teaching applicants for licenses under their jurisdiction. Applicants must include with their 
891.17 	licensure applications:
891.18 	(1) an executed criminal history consent form, including fingerprints; and
891.19 	(2) a money order or cashier's check payable to the Bureau of Criminal Apprehension 
891.20 	for the fee for conducting the criminal history background check.
891.21 	(b) The superintendent of the Bureau of Criminal Apprehension shall must perform the 
891.22 	background check required under paragraph (a) by retrieving criminal history data as defined 
891.23 	in section 13.87 and shall also conduct a search of the national criminal records repository. 
891.24 	The superintendent is authorized to exchange fingerprints with the Federal Bureau of 
891.25 	Investigation for purposes of the criminal history check. The superintendent shall must
891.26 	recover the cost to the bureau of a background check through the fee charged to the applicant 
891.27 	under paragraph (a).
891.28 	(c) The Professional Educator Licensing and Standards Board or the Board of School 
891.29 	Administrators may issue a license pending completion of a background check under this 
891.30 	subdivision, but must notify the individual and the school district or charter school employing 
891.31 	the individual that the individual's license may be revoked based on the result of the 
891.32 	background check.

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

892.2 	Sec. 5. Minnesota Statutes 2017 Supplement, section 122A.187, subdivision 3, is amended 
892.3 	to read:
892.4 		Subd. 3.Professional growth. (a) Applicants for license renewal for a Tier 3 or Tier 4 
892.5 	license under sections 122A.183 and 122A.184, respectively, who have been employed as 
892.6 	a teacher during the renewal period of the expiring license, as a condition of license renewal, 
892.7 	must present to their local continuing education and relicensure committee or other local 
892.8 	relicensure committee evidence of work that demonstrates professional reflection and growth 
892.9 	in best teaching practices, including among other things, cultural competence in accordance 
892.10 	with section 120B.30, subdivision 1, paragraph (q), and practices in meeting the varied 
892.11 	needs of English learners, from young children to adults under section 124D.59, subdivisions 
892.12 	2 and 2a. A teacher may satisfy the requirements of this paragraph by submitting the teacher's 
892.13 	most recent summative evaluation or improvement plan under section 122A.40, subdivision 
892.14 	8, or 122A.41, subdivision 5. Counselors, school social workers, and teachers who do not 
892.15 	provide direct instruction but who provide academic, college, and career planning and 
892.16 	support to students may submit proof of training on armed forces career options or careers 
892.17 	in the skilled trades and manufacturing as additional evidence of professional growth.
892.18 	(b) The Professional Educator Licensing and Standards Board must ensure that its teacher 
892.19 	relicensing requirements include paragraph (a).

892.20 	Sec. 6. Minnesota Statutes 2017 Supplement, section 122A.187, is amended by adding a 
892.21 	subdivision to read:
892.22 		Subd. 7.Background check. The Professional Educator Licensing and Standards Board 
892.23 	must request a criminal history background check from the superintendent of the Bureau 
892.24 	of Criminal Apprehension on a licensed teacher applying for a license renewal who has not 
892.25 	had a background check within the preceding five years. The board may request payment 
892.26 	from the teacher renewing a license in an amount equal to the actual cost of the background 
892.27 	check.

892.28 	EFFECTIVE DATE. This section is effective July 1, 2019.

892.29 	Sec. 7. Minnesota Statutes 2017 Supplement, section 122A.20, subdivision 1, is amended 
892.30 	to read:
892.31 		Subdivision 1.Grounds for revocation, suspension, or denial. (a) The Professional 
892.32 	Educator Licensing and Standards Board or Board of School Administrators, whichever 
893.1 	has jurisdiction over a teacher's licensure, may, on the written complaint of the school board 
893.2 	employing a teacher, a teacher organization, or any other interested person, refuse to issue, 
893.3 	refuse to renew, suspend, or revoke a teacher's license to teach for any of the following 
893.4 	causes:
893.5 	(1) immoral character or conduct;
893.6 	(2) failure, without justifiable cause, to teach for the term of the teacher's contract;
893.7 	(3) gross inefficiency or willful neglect of duty;
893.8 	(4) failure to meet licensure requirements; or
893.9 	(5) fraud or misrepresentation in obtaining a license.; or
893.10 	(6) intentional and inappropriate patting, touching, pinching, or other physical contact 
893.11 	with a student that is sexually motivated.
893.12 	The written complaint must specify the nature and character of the charges.
893.13 	(b) The Professional Educator Licensing and Standards Board or Board of School 
893.14 	Administrators, whichever has jurisdiction over a teacher's licensure, shall must refuse to 
893.15 	issue, refuse to renew, or automatically revoke a teacher's license to teach without the right 
893.16 	to a hearing upon receiving a certified copy of a conviction showing that the teacher has 
893.17 	been convicted of:
893.18 	(1) child abuse, as defined in section 609.185,;
893.19 	(2) sex trafficking in the first degree under section 609.322, subdivision 1,;
893.20 	(3) sex trafficking in the second degree under section 609.322, subdivision 1a,;
893.21 	(4) engaging in hiring, or agreeing to hire a minor to engage in prostitution under section 
893.22 	609.324, subdivision subdivisions 1, 1a, and 2;
893.23 	(5) criminal sexual abuse conduct under section 609.342, 609.343, 609.344, 609.345, 
893.24 	609.3451, subdivision 3, or;
893.25 	(6) indecent exposure under section617.23, subdivision 3,;
893.26 	(7) solicitation of children to engage in sexual conduct or communication of sexually 
893.27 	explicit materials to children under section 609.352,;
893.28 	(8) interference with privacy under section 609.746 or stalking under section 609.749
893.29 	and the victim was a minor,;
893.30 	(9) using minors in a sexual performance under section 617.246,;
894.1 	(10) possessing pornographic works involving a minor under section 617.247,; or
894.2 	(11) any other offense not listed in this paragraph that requires the person to register as 
894.3 	a predatory offender under section 243.166, or a crime under a similar law of another state 
894.4 	or the United States.
894.5 	In addition, the board may refuse to issue, refuse to renew, or automatically revoke a teacher's 
894.6 	license to teach without the right to a hearing upon receiving a certified copy of a stay of 
894.7 	adjudication for any offense. The board shall send notice of this licensing action to the 
894.8 	district in which the teacher is currently employed.
894.9 	(c) A person whose license to teach has been revoked, not issued, or not renewed under 
894.10 	paragraph (b), may petition the board to reconsider the licensing action if the person's 
894.11 	conviction for child abuse or sexual abuse is reversed by a final decision of the Court of 
894.12 	Appeals or the Supreme Court or if the person has received a pardon for the offense. The 
894.13 	petitioner shall must attach a certified copy of the appellate court's final decision or the 
894.14 	pardon to the petition. Upon receiving the petition and its attachment, the board shall must
894.15 	schedule and hold a disciplinary hearing on the matter under section 214.10, subdivision 2, 
894.16 	unless the petitioner waives the right to a hearing. If the board finds that, notwithstanding 
894.17 	the reversal of the petitioner's criminal conviction or the issuance of a pardon, the petitioner 
894.18 	is disqualified from teaching under paragraph (a), clause (1), the board shall must affirm 
894.19 	its previous licensing action. If the board finds that the petitioner is not disqualified from 
894.20 	teaching under paragraph (a), clause (1), it shall must reverse its previous licensing action.
894.21 	(d) The Professional Educator Licensing and Standards Board or Board of School 
894.22 	Administrators, whichever has jurisdiction over a teacher's licensure, must refuse to issue, 
894.23 	refuse to renew, or revoke a teacher's license to teach if the teacher has engaged in sexual 
894.24 	penetration as defined in section 609.321, subdivision 11, with a student enrolled in a school 
894.25 	where the teacher works or volunteers.
894.26 	(e) The Professional Educator Licensing and Standards Board or Board of School 
894.27 	Administrators, whichever has jurisdiction over a teacher's licensure, must review and may 
894.28 	refuse to issue, refuse to renew, or revoke a teacher's license to teach upon receiving a 
894.29 	certified copy of a conviction showing that the teacher has been convicted of:
894.30 	(1) a qualified domestic violence-related offense as defined in section 609.02, subdivision 
894.31 	16;
894.32 	(2) embezzlement of public funds under section 609.54, clause (1) or (2);
894.33 	(3) a felony involving a minor as the victim; or
895.1 	(4) a gross misdemeanor involving a minor as the victim.
895.2 	If an offense included in clauses (1) to (4) is already included in paragraph (b), the provisions 
895.3 	of paragraph (b) apply to the conduct.
895.4 	(f) A decision by the Professional Educator Licensing and Standards Board to refuse to 
895.5 	issue, refuse to renew, suspend, or revoke a license must be reversed if the decision is based 
895.6 	on a background check and the teacher or license application is not the subject of the 
895.7 	background check.
895.8 	(g) Section 122A.188 does not apply to a decision by the board to refuse to issue, refuse 
895.9 	to renew, or revoke a license under this paragraph. A person whose license has been revoked, 
895.10 	not issued, or not renewed under this subdivision may appeal the decision by filing a written 
895.11 	request with the Professional Educator Licensing and Standards Board or the Board of 
895.12 	School Administrators, as appropriate, within 30 days of notice of the licensing action. The 
895.13 	board must then initiate a contested case under the Administrative Procedure Act, sections 
895.14 	14.001 to 14.69.
895.15 	(h) The Professional Educator Licensing and Standards Board or Board of School 
895.16 	Administrators, whichever has jurisdiction over a teacher's licensure, may suspend a teacher's 
895.17 	license pending an investigation into a report of conduct that would be grounds for revocation 
895.18 	under paragraph (b), (d), or (e). The teacher's license is suspended until the licensing board 
895.19 	completes its disciplinary investigation and determines whether disciplinary action is 
895.20 	necessary.
895.21 	(d) (i) For purposes of this subdivision, the Professional Educator Licensing and Standards 
895.22 	Board is delegated the authority to suspend or revoke coaching licenses.

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

895.24 	Sec. 8. Minnesota Statutes 2017 Supplement, section 122A.20, subdivision 2, is amended 
895.25 	to read:
895.26 		Subd. 2.Mandatory reporting. (a) A school board must report to the Professional 
895.27 	Educator Licensing and Standards Board, the Board of School Administrators, or the Board 
895.28 	of Trustees of the Minnesota State Colleges and Universities, whichever has jurisdiction 
895.29 	over the teacher's or administrator's license, when its teacher or administrator is discharged 
895.30 	or resigns from employment after a charge is filed with the school board under section 
895.31 	122A.41, subdivisions 6, clauses (1), (2), and (3), and 7, or after charges are filed that are 
895.32 	grounds for discharge under section 122A.40, subdivision 13, paragraph (a), clauses (1) to 
895.33 	(5), or when a teacher or administrator is suspended or resigns while an investigation is 
896.1 	pending under section 122A.40, subdivision 13, paragraph (a), clauses (1) to (5); 122A.41, 
896.2 	subdivisions 6, clauses (1), (2), and (3), and 7; or 626.556, or when a teacher or administrator 
896.3 	is suspended without an investigation under section 122A.41, subdivisions 6, paragraph (a), 
896.4 	clauses (1), (2), and (3), and 7; or 626.556. The report must be made to the appropriate 
896.5 	licensing board within ten days after the discharge, suspension, or resignation has occurred. 
896.6 	The licensing board to which the report is made must investigate the report for violation of 
896.7 	subdivision 1 and the reporting board must cooperate in the investigation. Notwithstanding 
896.8 	any provision in chapter 13 or any law to the contrary, upon written request from the licensing 
896.9 	board having jurisdiction over the license, a board or school superintendent shall must
896.10 	provide the licensing board with information about the teacher or administrator from the 
896.11 	district's files, any termination or disciplinary proceeding, any settlement or compromise, 
896.12 	or any investigative file. Upon written request from the appropriate licensing board, a board 
896.13 	or school superintendent may, at the discretion of the board or school superintendent, solicit 
896.14 	the written consent of a student and the student's parent to provide the licensing board with 
896.15 	information that may aid the licensing board in its investigation and license proceedings. 
896.16 	The licensing board's request need not identify a student or parent by name. The consent 
896.17 	of the student and the student's parent must meet the requirements of chapter 13 and Code 
896.18 	of Federal Regulations, title 34, section 99.30. The licensing board may provide a consent 
896.19 	form to the district. Any data transmitted to any board under this section is private data 
896.20 	under section 13.02, subdivision 12, notwithstanding any other classification of the data 
896.21 	when it was in the possession of any other agency.
896.22 	(b) The licensing board to which a report is made must transmit to the Attorney General's 
896.23 	Office any record or data it receives under this subdivision for the sole purpose of having 
896.24 	the Attorney General's Office assist that board in its investigation. When the Attorney 
896.25 	General's Office has informed an employee of the appropriate licensing board in writing 
896.26 	that grounds exist to suspend or revoke a teacher's license to teach, that licensing board 
896.27 	must consider suspending or revoking or decline to suspend or revoke the teacher's or 
896.28 	administrator's license within 45 days of receiving a stipulation executed by the teacher or 
896.29 	administrator under investigation or a recommendation from an administrative law judge 
896.30 	that disciplinary action be taken.
896.31 	(c) The Professional Educator Licensing and Standards Board and Board of School 
896.32 	Administrators must report to the appropriate law enforcement authorities a revocation, 
896.33 	suspension, or agreement involving a loss of license, relating to a teacher or administrator's 
896.34 	inappropriate sexual conduct with a minor. For purposes of this section, "law enforcement 
896.35 	authority" means a police department, county sheriff, or tribal police department. A report 
897.1 	by the Professional Educator Licensing and Standards Board or the Board of School 
897.2 	Administrators to appropriate law enforcement authorities does not diminish, modify, or 
897.3 	otherwise affect the responsibilities of a licensing board, school board, or any person 
897.4 	mandated to report abuse under section 626.556.
897.5 	(d) The Professional Educator Licensing and Standards Board and Board of School 
897.6 	Administrators must, immediately upon receiving information that gives the board reason 
897.7 	to believe a child has at any time been neglected or physically or sexually abused, as defined 
897.8 	in section 626.556, subdivision 2, report the information to:
897.9 	(1) the local welfare agency, agency responsible for assessing or investigating the report, 
897.10 	or tribal social services agency; and
897.11 	(2) the police department, county sheriff, or tribal police department.
897.12 	A report under this paragraph does not diminish, modify, or otherwise affect the 
897.13 	responsibilities of a licensing board under section 626.556.

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

897.15 	Sec. 9. Minnesota Statutes 2017 Supplement, section 122A.40, subdivision 13, is amended 
897.16 	to read:
897.17 		Subd. 13.Immediate discharge. (a) Except as otherwise provided in paragraph (b), a 
897.18 	board may discharge a continuing-contract teacher, effective immediately, upon any of the 
897.19 	following grounds:
897.20 	(1) immoral conduct, insubordination, or conviction of a felony;
897.21 	(2) conduct unbecoming a teacher which requires the immediate removal of the teacher 
897.22 	from classroom or other duties;
897.23 	(3) failure without justifiable cause to teach without first securing the written release of 
897.24 	the school board;
897.25 	(4) gross inefficiency which the teacher has failed to correct after reasonable written 
897.26 	notice;
897.27 	(5) willful neglect of duty; or
897.28 	(6) continuing physical or mental disability subsequent to a 12 months leave of absence 
897.29 	and inability to qualify for reinstatement in accordance with subdivision 12.
897.30 	For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 
897.31 	discriminatory practice described in section 363A.13.
898.1 	Prior to discharging a teacher under this paragraph, the board must notify the teacher in 
898.2 	writing and state its ground for the proposed discharge in reasonable detail. Within ten days 
898.3 	after receipt of this notification the teacher may make a written request for a hearing before 
898.4 	the board and it shall must be granted before final action is taken. The board may suspend 
898.5 	a teacher with pay pending the conclusion of the hearing and determination of the issues 
898.6 	raised in the hearing after charges have been filed which constitute ground for discharge. 
898.7 	If a teacher has been charged with a felony and the underlying conduct that is the subject 
898.8 	of the felony charge is a ground for a proposed immediate discharge, the suspension pending 
898.9 	the conclusion of the hearing and determination of the issues may be without pay. If a 
898.10 	hearing under this paragraph is held, the board must reimburse the teacher for any salary 
898.11 	or compensation withheld if the final decision of the board or the arbitrator does not result 
898.12 	in a penalty to or suspension, termination, or discharge of the teacher.
898.13 	(b) A board must discharge a continuing-contract teacher, effective immediately, upon 
898.14 	receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's 
898.15 	license has been revoked due to a conviction for:
898.16 	(1) child abuse, as defined in section 609.185;
898.17 	(2) sex trafficking in the first degree under section 609.322, subdivision 1;
898.18 	(3) sex trafficking in the second degree under section 609.322, subdivision 1a;
898.19 	(4) engaging in hiring or agreeing to hire a minor to engage in prostitution under section 
898.20 	609.324, subdivision subdivisions 1, 1a, and 2;
898.21 	(5) criminal sexual abuseconduct under section 609.342, 609.343, 609.344, 609.345, 
898.22 	609.3451, subdivision 3, or 617.23, subdivision 3;
898.23 	(6) indecent exposure under section 617.23, subdivision 3;
898.24 	(7) solicitation of children to engage in sexual conduct or communication of sexually 
898.25 	explicit materials to children under section 609.352;
898.26 	(8) interference with privacy under section 609.746 or stalking under section 609.749
898.27 	and the victim was a minor;
898.28 	(9) using minors in a sexual performance under section 617.246;
898.29 	(10) possessing pornographic works involving a minor under section 617.247; or
898.30 	(11) any other offense not listed in this paragraph that requires the person to register as 
898.31 	a predatory offender under section 243.166, or a crime under a similar law of another state 
898.32 	or the United States; or
899.1 	(12) any other offense not listed in this paragraph that requires notice of a licensing 
899.2 	action to the district in accordance with section 122A.20, subdivision 1, paragraph (b).
899.3 	(c) When a teacher is discharged under paragraph (b) or when the commissioner makes 
899.4 	a final determination of child maltreatment involving a teacher under section 626.556, 
899.5 	subdivision 11, the school principal or other person having administrative control of the 
899.6 	school must include in the teacher's employment record the information contained in the 
899.7 	record of the disciplinary action or the final maltreatment determination, consistent with 
899.8 	the definition of public data under section 13.41, subdivision 5, and must provide the 
899.9 	Professional Educator Licensing and Standards Board and the licensing division at the 
899.10 	department with the necessary and relevant information to enable the Professional Educator 
899.11 	Licensing and Standards Board and the department's licensing division to fulfill their its
899.12 	statutory and administrative duties related to issuing, renewing, suspending, or revoking a 
899.13 	teacher's license. Information received by the Professional Educator Licensing and Standards 
899.14 	Board or the licensing division at the department under this paragraph is governed by section 
899.15 	13.41 or other applicable law governing data of the receiving entity. In addition to the 
899.16 	background check required under section 123B.03, a school board or other school hiring 
899.17 	authority must contact the Professional Educator Licensing and Standards Board and the 
899.18 	department to determine whether the teacher's license has been suspended or revoked, 
899.19 	consistent with the discharge and final maltreatment determinations identified in this 
899.20 	paragraph. Unless restricted by federal or state data practices law or by the terms of a 
899.21 	collective bargaining agreement, the responsible authority for a school district must 
899.22 	disseminate to another school district private personnel data on a current or former teacher 
899.23 	employee or contractor of the district, including the results of background investigations, 
899.24 	if the requesting school district seeks the information because the subject of the data has 
899.25 	applied for employment with the requesting school district.

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

899.27 	Sec. 10. Minnesota Statutes 2017 Supplement, section 122A.41, subdivision 6, is amended 
899.28 	to read:
899.29 		Subd. 6.Grounds for discharge or demotion. (a) Except as otherwise provided in 
899.30 	paragraph (b), causes for the discharge or demotion of a teacher either during or after the 
899.31 	probationary period must be:
899.32 	(1) immoral character, conduct unbecoming a teacher, or insubordination;
900.1 	(2) failure without justifiable cause to teach without first securing the written release of 
900.2 	the school board having the care, management, or control of the school in which the teacher 
900.3 	is employed;
900.4 	(3) inefficiency in teaching or in the management of a school, consistent with subdivision 
900.5 	5, paragraph (b);
900.6 	(4) affliction with a communicable disease must be considered as cause for removal or 
900.7 	suspension while the teacher is suffering from such disability; or
900.8 	(5) discontinuance of position or lack of pupils.
900.9 	For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 
900.10 	discriminatory practice described in section 363A.13.
900.11 	(b) A probationary or continuing-contract teacher must be discharged immediately upon 
900.12 	receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's 
900.13 	license has been revoked due to a conviction for:
900.14 	(1) child abuse, as defined in section 609.185;
900.15 	(2) sex trafficking in the first degree under section 609.322, subdivision 1;
900.16 	(3) sex trafficking in the second degree under section 609.322, subdivision 1a;
900.17 	(4) engaging in hiring or agreeing to hire a minor to engage in prostitution under section 
900.18 	609.324, subdivision subdivisions 1, 1a, and 2;
900.19 	(5) criminal sexual abuseconduct under section 609.342, 609.343, 609.344, 609.345, 
900.20 	609.3451, subdivision 3, or ;
900.21 	(6) indecent exposure under section 617.23, subdivision 3;
900.22 	(7) solicitation of children to engage in sexual conduct or communication of sexually 
900.23 	explicit materials to children under section 609.352;
900.24 	(8) interference with privacy under section 609.746 or stalking under section 609.749
900.25 	and the victim was a minor;
900.26 	(9) using minors in a sexual performance under section 617.246;
900.27 	(10) possessing pornographic works involving a minor under section 617.247; or
900.28 	(11) any other offense not listed in this paragraph that requires the person to register as 
900.29 	a predatory offender under section 243.166, or a crime under a similar law of another state 
900.30 	or the United States; or
901.1 	(12) any other offense not listed in this paragraph that requires notice of a licensing 
901.2 	action to the district in accordance with section 122A.20, subdivision 1, paragraph (b).
901.3 	(c) When a teacher is discharged under paragraph (b) or when the commissioner makes 
901.4 	a final determination of child maltreatment involving a teacher under section 626.556, 
901.5 	subdivision 11, the school principal or other person having administrative control of the 
901.6 	school must include in the teacher's employment record the information contained in the 
901.7 	record of the disciplinary action or the final maltreatment determination, consistent with 
901.8 	the definition of public data under section 13.41, subdivision 5, and must provide the 
901.9 	Professional Educator Licensing and Standards Board and the licensing division at the 
901.10 	department with the necessary and relevant information to enable the Professional Educator 
901.11 	Licensing and Standards Board and the department's licensing division to fulfill their its
901.12 	statutory and administrative duties related to issuing, renewing, suspending, or revoking a 
901.13 	teacher's license. Information received by the Professional Educator Licensing and Standards 
901.14 	Board or the licensing division at the department under this paragraph is governed by section 
901.15 	13.41 or other applicable law governing data of the receiving entity. In addition to the 
901.16 	background check required under section 123B.03, a school board or other school hiring 
901.17 	authority must contact the Professional Educator Licensing and Standards Board and the 
901.18 	department to determine whether the teacher's license has been suspended or revoked, 
901.19 	consistent with the discharge and final maltreatment determinations identified in this 
901.20 	paragraph. Unless restricted by federal or state data practices law or by the terms of a 
901.21 	collective bargaining agreement, the responsible authority for a school district must 
901.22 	disseminate to another school district private personnel data on a current or former teacher 
901.23 	employee or contractor of the district, including the results of background investigations, 
901.24 	if the requesting school district seeks the information because the subject of the data has 
901.25 	applied for employment with the requesting school district.

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

901.27 	Sec. 11. Minnesota Statutes 2016, section 122A.42, is amended to read:
901.28 	122A.42 GENERAL CONTROL OF SCHOOLS.
901.29 	(a) The teacher of record shall have the general control and government of the school 
901.30 	and classroom. When more than one teacher is employed in any district, one of the teachers 
901.31 	may be designated by the board as principal and shall have the general control and 
901.32 	supervision of the schools of the district, subject to the general supervisory control of the 
901.33 	board and other officers.
902.1 	(b) Consistent with paragraph (a), the teacher may remove students from class under 
902.2 	section 121A.61, subdivision 2, for violent or disruptive conduct. A school district must 
902.3 	include notice of a teacher's authority under this paragraph in a teacher handbook, school 
902.4 	policy guide, or other similar communication.

902.5 	Sec. 12. Minnesota Statutes 2016, section 122A.71, subdivision 2, is amended to read:
902.6 		Subd. 2.Responsibility. By July 1, 1989, The Board of Teaching Professional Educator 
902.7 	Licensing and Standards Board must begin to evaluate the effectiveness of prebaccalaureate, 
902.8 	postbaccalaureate, and other alternative program structures for preparing candidates for 
902.9 	entrance into the teaching profession. The evaluation shall must be conducted by independent 
902.10 	research centers or evaluators who are not associated with a Minnesota teacher education 
902.11 	institution and shall must be longitudinal in nature.

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

902.13 	Sec. 13. Minnesota Statutes 2017 Supplement, section 123B.03, subdivision 1, is amended 
902.14 	to read:
902.15 		Subdivision 1.Background check required. (a) A school hiring authority shall must
902.16 	request a criminal history background check from the superintendent of the Bureau of 
902.17 	Criminal Apprehension on all individuals who are offered employment in a school and on 
902.18 	all individuals, except enrolled student volunteers, who are offered the opportunity to provide 
902.19 	athletic coaching services or other extracurricular academic coaching services to a school, 
902.20 	regardless of whether any compensation is paid. In order for an individual to be eligible for 
902.21 	employment or to provide the services, the individual must provide an executed criminal 
902.22 	history consent form and a money order or check payable to either the Bureau of Criminal 
902.23 	Apprehension or the school hiring authority, at the discretion of the school hiring authority, 
902.24 	in an amount equal to the actual cost to the Bureau of Criminal Apprehension and the school 
902.25 	district of conducting the criminal history background check. A school hiring authority 
902.26 	deciding to receive payment may, at its discretion, accept payment in the form of a negotiable 
902.27 	instrument other than a money order or check and shall pay the superintendent of the Bureau 
902.28 	of Criminal Apprehension directly to conduct the background check. The superintendent 
902.29 	of the Bureau of Criminal Apprehension shall conduct the background check by retrieving 
902.30 	criminal history data as defined in section 13.87. A school hiring authority, at its discretion, 
902.31 	may decide not to request a criminal history background check on an individual who holds 
902.32 	an initial entrance license issued by the Professional Educator Licensing and Standards 
903.1 	Board or the commissioner of education within the 12 months preceding an offer of 
903.2 	employment.
903.3 	(b) A school hiring authority may use the results of a criminal background check 
903.4 	conducted at the request of another school hiring authority if:
903.5 	(1) the results of the criminal background check are on file with the other school hiring 
903.6 	authority or otherwise accessible;
903.7 	(2) the other school hiring authority conducted a criminal background check within the 
903.8 	previous 12 months;
903.9 	(3) the individual who is the subject of the criminal background check executes a written 
903.10 	consent form giving a school hiring authority access to the results of the check; and
903.11 	(4) there is no reason to believe that the individual has committed an act subsequent to 
903.12 	the check that would disqualify the individual for employment.
903.13 	(c) A school hiring authority may, at its discretion, request a criminal history background 
903.14 	check from the superintendent of the Bureau of Criminal Apprehension on any individual 
903.15 	who seeks to enter a school or its grounds for the purpose of serving as a school volunteer 
903.16 	or working as an independent contractor or student employee. In order for an individual to 
903.17 	enter a school or its grounds under this paragraph when the school hiring authority decides 
903.18 	to request a criminal history background check on the individual, the individual first must 
903.19 	provide an executed criminal history consent form and a money order, check, or other 
903.20 	negotiable instrument payable to the school district in an amount equal to the actual cost to 
903.21 	the Bureau of Criminal Apprehension and the school district of conducting the criminal 
903.22 	history background check. Notwithstanding section 299C.62, subdivision 1, the cost of the 
903.23 	criminal history background check under this paragraph is the responsibility of the individual 
903.24 	unless a school hiring authority decides to pay the costs of conducting a background check 
903.25 	under this paragraph. If the school hiring authority pays the costs, the individual who is the 
903.26 	subject of the background check need not pay for it.
903.27 	(d) In addition to the initial background check required for all individuals offered 
903.28 	employment in accordance with paragraph (a), a school hiring authority must request a new 
903.29 	criminal history background check from the superintendent of the Bureau of Criminal 
903.30 	Apprehension on all employees every five years. Notwithstanding any law to the contrary, 
903.31 	in order for an individual to be eligible for continued employment, an individual must 
903.32 	provide an executed criminal history consent form and a money order or check payable to 
903.33 	either the Bureau of Criminal Apprehension or the school hiring authority, at the discretion 
903.34 	of the school hiring authority, in an amount equal to the actual cost to the Bureau of Criminal 
904.1 	Apprehension and the school district of conducting the criminal history background check. 
904.2 	A school hiring authority deciding to receive payment may, at its discretion, accept payment 
904.3 	in the form of a negotiable instrument other than a money order or check and shall pay the 
904.4 	superintendent of the Bureau of Criminal Apprehension directly to conduct the background 
904.5 	check. A school hiring authority, at its discretion, may decide not to request a criminal 
904.6 	history background check on an employee who provides the hiring authority with a copy 
904.7 	of the results of a criminal history background check conducted within the previous 60 
904.8 	months. A school hiring authority may, at its discretion, decide to pay the costs of conducting 
904.9 	a background check under this paragraph.
904.10 	(d) (e) For all nonstate residents who are offered employment in a school, a school hiring 
904.11 	authority shall request a criminal history background check on such individuals from the 
904.12 	superintendent of the Bureau of Criminal Apprehension and from the government agency 
904.13 	performing the same function in the resident state or, if no government entity performs the 
904.14 	same function in the resident state, from the Federal Bureau of Investigation. Such individuals 
904.15 	must provide an executed criminal history consent form and a money order, check, or other 
904.16 	negotiable instrument payable to the school hiring authority in an amount equal to the actual 
904.17 	cost to the government agencies and the school district of conducting the criminal history 
904.18 	background check. Notwithstanding section 299C.62, subdivision 1, the cost of the criminal 
904.19 	history background check under this paragraph is the responsibility of the individual.
904.20 	(e) (f) At the beginning of each school year or when a student enrolls, a school hiring 
904.21 	authority must notify parents and guardians about the school hiring authority's policy 
904.22 	requiring a criminal history background check on employees and other individuals who 
904.23 	provide services to the school, and identify those positions subject to a background check 
904.24 	and the extent of the hiring authority's discretion in requiring a background check. The 
904.25 	school hiring authority may include the notice in the student handbook, a school policy 
904.26 	guide, or other similar communication. Nothing in this paragraph affects a school hiring 
904.27 	authority's ability to request a criminal history background check on an individual under 
904.28 	paragraph (c).

904.29 	EFFECTIVE DATE. This section is effective for the 2019-2020 school year and later.

904.30 	Sec. 14. Minnesota Statutes 2017 Supplement, section 123B.03, subdivision 2, is amended 
904.31 	to read:
904.32 		Subd. 2.Effect of background check or Professional Educator Licensing and 
904.33 	Standards Board action. (a) A school hiring authority may hire or otherwise allow an 
904.34 	individual to provide a service to a school pending completion of a background check under 
905.1 	subdivision 1 or obtaining notice of a Professional Educator Licensing and Standards Board 
905.2 	action under subdivision 1a but shall notify the individual that the individual's employment 
905.3 	or other service may be terminated based on the result of the background check or 
905.4 	Professional Educator Licensing and Standards Board action. A school hiring authority is 
905.5 	not liable for failing to hire or for terminating an individual's employment or other service 
905.6 	based on the result of a background check or Professional Educator Licensing and Standards 
905.7 	Board action under this section.
905.8 	(b) For purposes of this paragraph, a school hiring authority must inform an individual 
905.9 	if the individual's application to be an employee or volunteer in the district has been denied 
905.10 	as a result of a background check conducted under this section. The school hiring authority 
905.11 	must also inform an individual who is a current employee or volunteer if the individual's 
905.12 	employment or volunteer status in the district is being terminated as a result of a background 
905.13 	check conducted under subdivision 4.

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

905.15 	Sec. 15. Minnesota Statutes 2016, section 299C.17, is amended to read:
905.16 	299C.17 REPORT BY COURT ADMINISTRATOR.
905.17 	The superintendent shall require the court administrator of every court which that (1)
905.18 	sentences a defendant for a felony, gross misdemeanor, or targeted misdemeanor, or (2) 
905.19 	grants a stay of adjudication pursuant to section 609.095, paragraph (b), clause (2), for an 
905.20 	offense that, if convicted of, would require predatory offender registration under section 
905.21 	243.166, to electronically transmit within 24 hours of the disposition of the case a report, 
905.22 	in a form prescribed by the superintendent providing information required by the 
905.23 	superintendent with regard to the prosecution and disposition of criminal cases. A copy of 
905.24 	the report shall be kept on file in the office of the court administrator.

905.25 	Sec. 16. [299C.77] BACKGROUND CHECKS; ADDITIONAL DISCLOSURE.
905.26 	The superintendent shall disclose to each applicant for a statutorily mandated or 
905.27 	authorized background check or background study all records of stays of adjudication 
905.28 	granted to the subject of the background check or background study that the superintendent 
905.29 	receives pursuant to section 299C.17, clause (2). The data required to be disclosed under 
905.30 	this section is in addition to other data on the subject of the background check or background 
905.31 	study that the superintendent is mandated to disclose.

906.1 	Sec. 17. Minnesota Statutes 2016, section 609.095, is amended to read:
906.2 	609.095 LIMITS OF SENTENCES.
906.3 	(a) The legislature has the exclusive authority to define crimes and offenses and the 
906.4 	range of the sentences or punishments for their violation. No other or different sentence or 
906.5 	punishment shall be imposed for the commission of a crime than is authorized by this chapter 
906.6 	or other applicable law.
906.7 	(b) Except as provided in:
906.8 	(1) section 152.18 or 609.375,; or
906.9 	(2) upon agreement of the parties, a court may not refuse to adjudicate the guilt of a 
906.10 	defendant who tenders a guilty plea in accordance with Minnesota Rules of Criminal 
906.11 	Procedure, rule 15, or who has been found guilty by a court or jury following a trial.
906.12 	A stay of adjudication granted under clause (2) must be reported to the superintendent of 
906.13 	the Bureau of Criminal Apprehension pursuant to section 299C.17.
906.14 	(c) Paragraph (b) does not supersede Minnesota Rules of Criminal Procedure, rule 26.04.

906.15 	Sec. 18. Minnesota Statutes 2017 Supplement, section 626.556, subdivision 3, is amended 
906.16 	to read:
906.17 		Subd. 3.Persons mandated to report; persons voluntarily reporting. (a) A person 
906.18 	who knows or has reason to believe a child is being neglected or physically or sexually 
906.19 	abused, as defined in subdivision 2, or has been neglected or physically or sexually abused 
906.20 	within the preceding three years, shall immediately report the information to the local welfare 
906.21 	agency, agency responsible for assessing or investigating the report, police department, 
906.22 	county sheriff, tribal social services agency, or tribal police department if the person is:
906.23 	(1) a professional or professional's delegate who is engaged in the practice of the healing 
906.24 	arts, social services, hospital administration, psychological or psychiatric treatment, child 
906.25 	care, education, correctional supervision, probation and correctional services, or law 
906.26 	enforcement; or
906.27 	(2) employed as a member of the clergy and received the information while engaged in 
906.28 	ministerial duties, provided that a member of the clergy is not required by this subdivision 
906.29 	to report information that is otherwise privileged under section 595.02, subdivision 1, 
906.30 	paragraph (c).; or
906.31 	(3) a member of a board or other entity whose licensees perform work within a school 
906.32 	facility.
907.1 	(b) Any person may voluntarily report to the local welfare agency, agency responsible 
907.2 	for assessing or investigating the report, police department, county sheriff, tribal social 
907.3 	services agency, or tribal police department if the person knows, has reason to believe, or 
907.4 	suspects a child is being or has been neglected or subjected to physical or sexual abuse.
907.5 	(c) A person mandated to report physical or sexual child abuse or neglect occurring 
907.6 	within a licensed facility shall report the information to the agency responsible for licensing 
907.7 	or certifying the facility under sections 144.50 to 144.58; 241.021; 245A.01 to 245A.16; 
907.8 	or chapter 144H, 245D, or 245H; or a nonlicensed personal care provider organization as 
907.9 	defined in section 256B.0625, subdivision 19a. A health or corrections agency receiving a 
907.10 	report may request the local welfare agency to provide assistance pursuant to subdivisions 
907.11 	10, 10a, and 10b. A board or other entity whose licensees perform work within a school 
907.12 	facility, upon receiving a complaint of alleged maltreatment, shall provide information about 
907.13 	the circumstances of the alleged maltreatment to the commissioner of education. Section 
907.14 	13.03, subdivision 4, applies to data received by the commissioner of education from a 
907.15 	licensing entity.
907.16 	(d) Notification requirements under subdivision 10 apply to all reports received under 
907.17 	this section.
907.18 	(e) For purposes of this section, "immediately" means as soon as possible but in no event 
907.19 	longer than 24 hours.

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

907.21 	Sec. 19. Minnesota Statutes 2016, section 626.556, subdivision 10, is amended to read:
907.22 		Subd. 10.Duties of local welfare agency and local law enforcement agency upon 
907.23 	receipt of report; mandatory notification between police or sheriff and agency. (a) The 
907.24 	police department or the county sheriff shall immediately notify the local welfare agency 
907.25 	or agency responsible for child protection reports under this section orally and in writing 
907.26 	when a report is received. The local welfare agency or agency responsible for child protection 
907.27 	reports shall immediately notify the local police department or the county sheriff orally and 
907.28 	in writing when a report is received. The county sheriff and the head of every local welfare 
907.29 	agency, agency responsible for child protection reports, and police department shall each 
907.30 	designate a person within their agency, department, or office who is responsible for ensuring 
907.31 	that the notification duties of this paragraph are carried out. When the alleged maltreatment 
907.32 	occurred on tribal land, the local welfare agency or agency responsible for child protection 
907.33 	reports and the local police department or the county sheriff shall immediately notify the 
907.34 	tribe's social services agency and tribal law enforcement orally and in writing when a report 
908.1 	is received. When a police department or county sheriff receives a report or otherwise has 
908.2 	information indicating that a child has been the subject of physical abuse, sexual abuse, or 
908.3 	neglect by a person licensed by the Professional Educator Licensing and Standards Board 
908.4 	or Board of School Administrators, it shall, in addition to its other duties under this section, 
908.5 	immediately inform the licensing board.
908.6 	(b) Upon receipt of a report, the local welfare agency shall determine whether to conduct 
908.7 	a family assessment or an investigation as appropriate to prevent or provide a remedy for 
908.8 	child maltreatment. The local welfare agency:
908.9 	(1) shall conduct an investigation on reports involving sexual abuse or substantial child 
908.10 	endangerment;
908.11 	(2) shall begin an immediate investigation if, at any time when it is using a family 
908.12 	assessment response, it determines that there is reason to believe that sexual abuse or 
908.13 	substantial child endangerment or a serious threat to the child's safety exists;
908.14 	(3) may conduct a family assessment for reports that do not allege sexual abuse or 
908.15 	substantial child endangerment. In determining that a family assessment is appropriate, the 
908.16 	local welfare agency may consider issues of child safety, parental cooperation, and the need 
908.17 	for an immediate response;
908.18 	(4) may conduct a family assessment on a report that was initially screened and assigned 
908.19 	for an investigation. In determining that a complete investigation is not required, the local 
908.20 	welfare agency must document the reason for terminating the investigation and notify the 
908.21 	local law enforcement agency if the local law enforcement agency is conducting a joint 
908.22 	investigation; and
908.23 	(5) shall provide immediate notice, according to section 260.761, subdivision 2, to an 
908.24 	Indian child's tribe when the agency has reason to believe the family assessment or 
908.25 	investigation may involve an Indian child. For purposes of this clause, "immediate notice" 
908.26 	means notice provided within 24 hours.
908.27 	If the report alleges neglect, physical abuse, or sexual abuse by a parent, guardian, or 
908.28 	individual functioning within the family unit as a person responsible for the child's care, or 
908.29 	sexual abuse by a person with a significant relationship to the child when that person resides 
908.30 	in the child's household or by a sibling, the local welfare agency shall immediately conduct 
908.31 	a family assessment or investigation as identified in clauses (1) to (4). In conducting a family 
908.32 	assessment or investigation, the local welfare agency shall gather information on the existence 
908.33 	of substance abuse and domestic violence and offer services for purposes of preventing 
908.34 	future child maltreatment, safeguarding and enhancing the welfare of the abused or neglected 
909.1 	minor, and supporting and preserving family life whenever possible. If the report alleges a 
909.2 	violation of a criminal statute involving sexual abuse, physical abuse, or neglect or 
909.3 	endangerment, under section 609.378, the local law enforcement agency and local welfare 
909.4 	agency shall coordinate the planning and execution of their respective investigation and 
909.5 	assessment efforts to avoid a duplication of fact-finding efforts and multiple interviews. 
909.6 	Each agency shall prepare a separate report of the results of its investigation or assessment. 
909.7 	In cases of alleged child maltreatment resulting in death, the local agency may rely on the 
909.8 	fact-finding efforts of a law enforcement investigation to make a determination of whether 
909.9 	or not maltreatment occurred. When necessary the local welfare agency shall seek authority 
909.10 	to remove the child from the custody of a parent, guardian, or adult with whom the child is 
909.11 	living. In performing any of these duties, the local welfare agency shall maintain appropriate 
909.12 	records.
909.13 	If the family assessment or investigation indicates there is a potential for abuse of alcohol 
909.14 	or other drugs by the parent, guardian, or person responsible for the child's care, the local 
909.15 	welfare agency shall conduct a chemical use assessment pursuant to Minnesota Rules, part 
909.16 	9530.6615.
909.17 	(c) When a local agency receives a report or otherwise has information indicating that 
909.18 	a child who is a client, as defined in section 245.91, has been the subject of physical abuse, 
909.19 	sexual abuse, or neglect at an agency, facility, or program as defined in section 245.91, it 
909.20 	shall, in addition to its other duties under this section, immediately inform the ombudsman 
909.21 	established under sections 245.91 to 245.97. The commissioner of education shall inform 
909.22 	the ombudsman established under sections 245.91 to 245.97 of reports regarding a child 
909.23 	defined as a client in section 245.91 that maltreatment occurred at a school as defined in 
909.24 	section 120A.05, subdivisions 9, 11, and 13, and chapter 124E.
909.25 	(d) Authority of the local welfare agency responsible for assessing or investigating the 
909.26 	child abuse or neglect report, the agency responsible for assessing or investigating the report, 
909.27 	and of the local law enforcement agency for investigating the alleged abuse or neglect 
909.28 	includes, but is not limited to, authority to interview, without parental consent, the alleged 
909.29 	victim and any other minors who currently reside with or who have resided with the alleged 
909.30 	offender. The interview may take place at school or at any facility or other place where the 
909.31 	alleged victim or other minors might be found or the child may be transported to, and the 
909.32 	interview conducted at, a place appropriate for the interview of a child designated by the 
909.33 	local welfare agency or law enforcement agency. The interview may take place outside the 
909.34 	presence of the alleged offender or parent, legal custodian, guardian, or school official. For 
909.35 	family assessments, it is the preferred practice to request a parent or guardian's permission 
910.1 	to interview the child prior to conducting the child interview, unless doing so would 
910.2 	compromise the safety assessment. Except as provided in this paragraph, the parent, legal 
910.3 	custodian, or guardian shall be notified by the responsible local welfare or law enforcement 
910.4 	agency no later than the conclusion of the investigation or assessment that this interview 
910.5 	has occurred. Notwithstanding rule 32 of the Minnesota Rules of Procedure for Juvenile 
910.6 	Courts, the juvenile court may, after hearing on an ex parte motion by the local welfare 
910.7 	agency, order that, where reasonable cause exists, the agency withhold notification of this 
910.8 	interview from the parent, legal custodian, or guardian. If the interview took place or is to 
910.9 	take place on school property, the order shall specify that school officials may not disclose 
910.10 	to the parent, legal custodian, or guardian the contents of the notification of intent to interview 
910.11 	the child on school property, as provided under this paragraph, and any other related 
910.12 	information regarding the interview that may be a part of the child's school record. A copy 
910.13 	of the order shall be sent by the local welfare or law enforcement agency to the appropriate 
910.14 	school official.
910.15 	(e) When the local welfare, local law enforcement agency, or the agency responsible 
910.16 	for assessing or investigating a report of maltreatment determines that an interview should 
910.17 	take place on school property, written notification of intent to interview the child on school 
910.18 	property must be received by school officials prior to the interview. The notification shall 
910.19 	include the name of the child to be interviewed, the purpose of the interview, and a reference 
910.20 	to the statutory authority to conduct an interview on school property. For interviews 
910.21 	conducted by the local welfare agency, the notification shall be signed by the chair of the 
910.22 	local social services agency or the chair's designee. The notification shall be private data 
910.23 	on individuals subject to the provisions of this paragraph. School officials may not disclose 
910.24 	to the parent, legal custodian, or guardian the contents of the notification or any other related 
910.25 	information regarding the interview until notified in writing by the local welfare or law 
910.26 	enforcement agency that the investigation or assessment has been concluded, unless a school 
910.27 	employee or agent is alleged to have maltreated the child. Until that time, the local welfare 
910.28 	or law enforcement agency or the agency responsible for assessing or investigating a report 
910.29 	of maltreatment shall be solely responsible for any disclosures regarding the nature of the 
910.30 	assessment or investigation.
910.31 	Except where the alleged offender is believed to be a school official or employee, the 
910.32 	time and place, and manner of the interview on school premises shall be within the discretion 
910.33 	of school officials, but the local welfare or law enforcement agency shall have the exclusive 
910.34 	authority to determine who may attend the interview. The conditions as to time, place, and 
910.35 	manner of the interview set by the school officials shall be reasonable and the interview 
911.1 	shall be conducted not more than 24 hours after the receipt of the notification unless another 
911.2 	time is considered necessary by agreement between the school officials and the local welfare 
911.3 	or law enforcement agency. Where the school fails to comply with the provisions of this 
911.4 	paragraph, the juvenile court may order the school to comply. Every effort must be made 
911.5 	to reduce the disruption of the educational program of the child, other students, or school 
911.6 	staff when an interview is conducted on school premises.
911.7 	(f) Where the alleged offender or a person responsible for the care of the alleged victim 
911.8 	or other minor prevents access to the victim or other minor by the local welfare agency, the 
911.9 	juvenile court may order the parents, legal custodian, or guardian to produce the alleged 
911.10 	victim or other minor for questioning by the local welfare agency or the local law 
911.11 	enforcement agency outside the presence of the alleged offender or any person responsible 
911.12 	for the child's care at reasonable places and times as specified by court order.
911.13 	(g) Before making an order under paragraph (f), the court shall issue an order to show 
911.14 	cause, either upon its own motion or upon a verified petition, specifying the basis for the 
911.15 	requested interviews and fixing the time and place of the hearing. The order to show cause 
911.16 	shall be served personally and shall be heard in the same manner as provided in other cases 
911.17 	in the juvenile court. The court shall consider the need for appointment of a guardian ad 
911.18 	litem to protect the best interests of the child. If appointed, the guardian ad litem shall be 
911.19 	present at the hearing on the order to show cause.
911.20 	(h) The commissioner of human services, the ombudsman for mental health and 
911.21 	developmental disabilities, the local welfare agencies responsible for investigating reports, 
911.22 	the commissioner of education, and the local law enforcement agencies have the right to 
911.23 	enter facilities as defined in subdivision 2 and to inspect and copy the facility's records, 
911.24 	including medical records, as part of the investigation. Notwithstanding the provisions of 
911.25 	chapter 13, they also have the right to inform the facility under investigation that they are 
911.26 	conducting an investigation, to disclose to the facility the names of the individuals under 
911.27 	investigation for abusing or neglecting a child, and to provide the facility with a copy of 
911.28 	the report and the investigative findings.
911.29 	(i) The local welfare agency responsible for conducting a family assessment or 
911.30 	investigation shall collect available and relevant information to determine child safety, risk 
911.31 	of subsequent child maltreatment, and family strengths and needs and share not public 
911.32 	information with an Indian's tribal social services agency without violating any law of the 
911.33 	state that may otherwise impose duties of confidentiality on the local welfare agency in 
911.34 	order to implement the tribal state agreement. The local welfare agency or the agency 
911.35 	responsible for investigating the report shall collect available and relevant information to 
912.1 	ascertain whether maltreatment occurred and whether protective services are needed. 
912.2 	Information collected includes, when relevant, information with regard to the person reporting 
912.3 	the alleged maltreatment, including the nature of the reporter's relationship to the child and 
912.4 	to the alleged offender, and the basis of the reporter's knowledge for the report; the child 
912.5 	allegedly being maltreated; the alleged offender; the child's caretaker; and other collateral 
912.6 	sources having relevant information related to the alleged maltreatment. The local welfare 
912.7 	agency or the agency responsible for investigating the report may make a determination of 
912.8 	no maltreatment early in an investigation, and close the case and retain immunity, if the 
912.9 	collected information shows no basis for a full investigation.
912.10 	Information relevant to the assessment or investigation must be asked for, and may 
912.11 	include:
912.12 	(1) the child's sex and age; prior reports of maltreatment, including any maltreatment 
912.13 	reports that were screened out and not accepted for assessment or investigation; information 
912.14 	relating to developmental functioning; credibility of the child's statement; and whether the 
912.15 	information provided under this clause is consistent with other information collected during 
912.16 	the course of the assessment or investigation;
912.17 	(2) the alleged offender's age, a record check for prior reports of maltreatment, and 
912.18 	criminal charges and convictions. The local welfare agency or the agency responsible for 
912.19 	assessing or investigating the report must provide the alleged offender with an opportunity 
912.20 	to make a statement. The alleged offender may submit supporting documentation relevant 
912.21 	to the assessment or investigation;
912.22 	(3) collateral source information regarding the alleged maltreatment and care of the 
912.23 	child. Collateral information includes, when relevant: (i) a medical examination of the child; 
912.24 	(ii) prior medical records relating to the alleged maltreatment or the care of the child 
912.25 	maintained by any facility, clinic, or health care professional and an interview with the 
912.26 	treating professionals; and (iii) interviews with the child's caretakers, including the child's 
912.27 	parent, guardian, foster parent, child care provider, teachers, counselors, family members, 
912.28 	relatives, and other persons who may have knowledge regarding the alleged maltreatment 
912.29 	and the care of the child; and
912.30 	(4) information on the existence of domestic abuse and violence in the home of the child, 
912.31 	and substance abuse.
912.32 	Nothing in this paragraph precludes the local welfare agency, the local law enforcement 
912.33 	agency, or the agency responsible for assessing or investigating the report from collecting 
912.34 	other relevant information necessary to conduct the assessment or investigation. 
913.1 	Notwithstanding sections 13.384 or 144.291 to 144.298, the local welfare agency has access 
913.2 	to medical data and records for purposes of clause (3). Notwithstanding the data's 
913.3 	classification in the possession of any other agency, data acquired by the local welfare 
913.4 	agency or the agency responsible for assessing or investigating the report during the course 
913.5 	of the assessment or investigation are private data on individuals and must be maintained 
913.6 	in accordance with subdivision 11. Data of the commissioner of education collected or 
913.7 	maintained during and for the purpose of an investigation of alleged maltreatment in a school 
913.8 	are governed by this section, notwithstanding the data's classification as educational, 
913.9 	licensing, or personnel data under chapter 13.
913.10 	In conducting an assessment or investigation involving a school facility as defined in 
913.11 	subdivision 2, paragraph (c), the commissioner of education shall collect investigative 
913.12 	reports and data that are relevant to a report of maltreatment and are from local law 
913.13 	enforcement and the school facility.
913.14 	(j) Upon receipt of a report, the local welfare agency shall conduct a face-to-face contact 
913.15 	with the child reported to be maltreated and with the child's primary caregiver sufficient to 
913.16 	complete a safety assessment and ensure the immediate safety of the child. The face-to-face 
913.17 	contact with the child and primary caregiver shall occur immediately if sexual abuse or 
913.18 	substantial child endangerment is alleged and within five calendar days for all other reports. 
913.19 	If the alleged offender was not already interviewed as the primary caregiver, the local welfare 
913.20 	agency shall also conduct a face-to-face interview with the alleged offender in the early 
913.21 	stages of the assessment or investigation. At the initial contact, the local child welfare agency 
913.22 	or the agency responsible for assessing or investigating the report must inform the alleged 
913.23 	offender of the complaints or allegations made against the individual in a manner consistent 
913.24 	with laws protecting the rights of the person who made the report. The interview with the 
913.25 	alleged offender may be postponed if it would jeopardize an active law enforcement 
913.26 	investigation.
913.27 	(k) When conducting an investigation, the local welfare agency shall use a question and 
913.28 	answer interviewing format with questioning as nondirective as possible to elicit spontaneous 
913.29 	responses. For investigations only, the following interviewing methods and procedures must 
913.30 	be used whenever possible when collecting information:
913.31 	(1) audio recordings of all interviews with witnesses and collateral sources; and
913.32 	(2) in cases of alleged sexual abuse, audio-video recordings of each interview with the 
913.33 	alleged victim and child witnesses.
914.1 	(l) In conducting an assessment or investigation involving a school facility as defined 
914.2 	in subdivision 2, paragraph (c), the commissioner of education shall collect available and 
914.3 	relevant information and use the procedures in paragraphs (j) and (k), and subdivision 3d, 
914.4 	except that the requirement for face-to-face observation of the child and face-to-face interview 
914.5 	of the alleged offender is to occur in the initial stages of the assessment or investigation 
914.6 	provided that the commissioner may also base the assessment or investigation on investigative 
914.7 	reports and data received from the school facility and local law enforcement, to the extent 
914.8 	those investigations satisfy the requirements of paragraphs (j) and (k), and subdivision 3d.

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

914.10 	Sec. 20. Minnesota Statutes 2017 Supplement, section 626.556, subdivision 10e, is amended 
914.11 	to read:
914.12 		Subd. 10e.Determinations. (a) The local welfare agency shall conclude the family 
914.13 	assessment or the investigation within 45 days of the receipt of a report. The conclusion of 
914.14 	the assessment or investigation may be extended to permit the completion of a criminal 
914.15 	investigation or the receipt of expert information requested within 45 days of the receipt of 
914.16 	the report.
914.17 	(b) After conducting a family assessment, the local welfare agency shall determine 
914.18 	whether services are needed to address the safety of the child and other family members 
914.19 	and the risk of subsequent maltreatment.
914.20 	(c) After conducting an investigation, the local welfare agency shall make two 
914.21 	determinations: first, whether maltreatment has occurred; and second, whether child 
914.22 	protective services are needed. No determination of maltreatment shall be made when the 
914.23 	alleged perpetrator is a child under the age of ten.
914.24 	(d) If the commissioner of education conducts an assessment or investigation, the 
914.25 	commissioner shall determine whether maltreatment occurred and what corrective or 
914.26 	protective action was taken by the school facility. If a determination is made that 
914.27 	maltreatment has occurred, the commissioner shall report to the employer, the school board, 
914.28 	and any appropriate licensing entity the determination that maltreatment occurred and what 
914.29 	corrective or protective action was taken by the school facility. In all other cases, the 
914.30 	commissioner shall inform the school board or employer and any appropriate licensing 
914.31 	entity that a report was received, the subject of the report, the date of the initial report, the 
914.32 	category of maltreatment alleged as defined in paragraph (f), the fact that maltreatment was 
914.33 	not determined, and a summary of the specific reasons for the determination.
915.1 	(e) When maltreatment is determined in an investigation involving a facility, the 
915.2 	investigating agency shall also determine whether the facility or individual was responsible, 
915.3 	or whether both the facility and the individual were responsible for the maltreatment using 
915.4 	the mitigating factors in paragraph (i). Determinations under this subdivision must be made 
915.5 	based on a preponderance of the evidence and are private data on individuals or nonpublic 
915.6 	data as maintained by the commissioner of education.
915.7 	(f) For the purposes of this subdivision, "maltreatment" means any of the following acts 
915.8 	or omissions:
915.9 	(1) physical abuse as defined in subdivision 2, paragraph (k);
915.10 	(2) neglect as defined in subdivision 2, paragraph (g);
915.11 	(3) sexual abuse as defined in subdivision 2, paragraph (n);
915.12 	(4) mental injury as defined in subdivision 2, paragraph (f); or
915.13 	(5) maltreatment of a child in a facility as defined in subdivision 2, paragraph (c).
915.14 	(g) For the purposes of this subdivision, a determination that child protective services 
915.15 	are needed means that the local welfare agency has documented conditions during the 
915.16 	assessment or investigation sufficient to cause a child protection worker, as defined in 
915.17 	section 626.559, subdivision 1, to conclude that a child is at significant risk of maltreatment 
915.18 	if protective intervention is not provided and that the individuals responsible for the child's 
915.19 	care have not taken or are not likely to take actions to protect the child from maltreatment 
915.20 	or risk of maltreatment.
915.21 	(h) This subdivision does not mean that maltreatment has occurred solely because the 
915.22 	child's parent, guardian, or other person responsible for the child's care in good faith selects 
915.23 	and depends upon spiritual means or prayer for treatment or care of disease or remedial care 
915.24 	of the child, in lieu of medical care. However, if lack of medical care may result in serious 
915.25 	danger to the child's health, the local welfare agency may ensure that necessary medical 
915.26 	services are provided to the child.
915.27 	(i) When determining whether the facility or individual is the responsible party, or 
915.28 	whether both the facility and the individual are responsible for determined maltreatment in 
915.29 	a facility, the investigating agency shall consider at least the following mitigating factors:
915.30 	(1) whether the actions of the facility or the individual caregivers were according to, 
915.31 	and followed the terms of, an erroneous physician order, prescription, individual care plan, 
915.32 	or directive; however, this is not a mitigating factor when the facility or caregiver was 
915.33 	responsible for the issuance of the erroneous order, prescription, individual care plan, or 
916.1 	directive or knew or should have known of the errors and took no reasonable measures to 
916.2 	correct the defect before administering care;
916.3 	(2) comparative responsibility between the facility, other caregivers, and requirements 
916.4 	placed upon an employee, including the facility's compliance with related regulatory standards 
916.5 	and the adequacy of facility policies and procedures, facility training, an individual's 
916.6 	participation in the training, the caregiver's supervision, and facility staffing levels and the 
916.7 	scope of the individual employee's authority and discretion; and
916.8 	(3) whether the facility or individual followed professional standards in exercising 
916.9 	professional judgment.
916.10 	The evaluation of the facility's responsibility under clause (2) must not be based on the 
916.11 	completeness of the risk assessment or risk reduction plan required under section 245A.66, 
916.12 	but must be based on the facility's compliance with the regulatory standards for policies 
916.13 	and procedures, training, and supervision as cited in Minnesota Statutes and Minnesota 
916.14 	Rules.
916.15 	(j) Notwithstanding paragraph (i), when maltreatment is determined to have been 
916.16 	committed by an individual who is also the facility license or certification holder, both the 
916.17 	individual and the facility must be determined responsible for the maltreatment, and both 
916.18 	the background study disqualification standards under section 245C.15, subdivision 4, and 
916.19 	the licensing or certification actions under section 245A.06, 245A.07, 245H.06, or 245H.07
916.20 	apply.

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

916.22 	Sec. 21. Minnesota Statutes 2016, section 631.40, subdivision 1a, is amended to read:
916.23 		Subd. 1a.Certified copy of disqualifying offense convictions sent to public safety 
916.24 	and school districts. When a person is convicted of committing a disqualifying offense, 
916.25 	as defined in section 171.3215, subdivision 1, a gross misdemeanor, a fourth moving violation 
916.26 	within the previous three years, or a violation of section 169A.20, or a similar statute or 
916.27 	ordinance from another state, or if the person received a stay of adjudication for an offense 
916.28 	that, if convicted of, would require predatory offender registration under section 243.166,
916.29 	the court shall determine whether the offender is a school bus driver as defined in section 
916.30 	171.3215, subdivision 1, whether the offender possesses a school bus driver's endorsement 
916.31 	on the offender's driver's license and in what school districts the offender drives a school 
916.32 	bus. If the offender is a school bus driver or possesses a school bus driver's endorsement, 
916.33 	the court administrator shall send a certified copy of the conviction or stay of adjudication 
917.1 	to the Department of Public Safety and to the school districts in which the offender drives 
917.2 	a school bus within ten days after the conviction or stay of adjudication.

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

917.4 	Sec. 22. Laws 2017, First Special Session chapter 5, article 3, section 3, the effective date, 
917.5 	is amended to read:

917.6 	EFFECTIVE DATE. This section is effective July October 1, 2018.

917.7 	Sec. 23. Laws 2017, First Special Session chapter 5, article 3, section 4, the effective date, 
917.8 	is amended to read:

917.9 	EFFECTIVE DATE. This section is effective July October 1, 2018.

917.10 	Sec. 24. Laws 2017, First Special Session chapter 5, article 3, section 5, the effective date, 
917.11 	is amended to read:

917.12 	EFFECTIVE DATE. This section is effective July October 1, 2018.

917.13 	Sec. 25. Laws 2017, First Special Session chapter 5, article 3, section 6, the effective date, 
917.14 	is amended to read:

917.15 	EFFECTIVE DATE. This section is effective July October 1, 2018.

917.16 	Sec. 26. Laws 2017, First Special Session chapter 5, article 3, section 7, the effective date, 
917.17 	is amended to read:

917.18 	EFFECTIVE DATE. This section is effective July October 1, 2018.

917.19 	Sec. 27. Laws 2017, First Special Session chapter 5, article 3, section 8, the effective date, 
917.20 	is amended to read:

917.21 	EFFECTIVE DATE. This section is effective July October 1, 2018.

917.22 	Sec. 28. Laws 2017, First Special Session chapter 5, article 3, section 9, the effective date, 
917.23 	is amended to read:

917.24 	EFFECTIVE DATE. This section is effective July October 1, 2018.

918.1 	Sec. 29. Laws 2017, First Special Session chapter 5, article 3, section 10, the effective 
918.2 	date, is amended to read:

918.3 	EFFECTIVE DATE. This section is effective July October 1, 2018.

918.4 	Sec. 30. Laws 2017, First Special Session chapter 5, article 3, section 11, the effective 
918.5 	date, is amended to read:

918.6 	EFFECTIVE DATE. This section is effective July October 1, 2018.

918.7 	Sec. 31. Laws 2017, First Special Session chapter 5, article 3, section 12, the effective 
918.8 	date, is amended to read:

918.9 	EFFECTIVE DATE. This section is effective July October 1, 2018.

918.10 	Sec. 32. Laws 2017, First Special Session chapter 5, article 3, section 13, the effective 
918.11 	date, is amended to read:

918.12 	EFFECTIVE DATE. This section is effective July October 1, 2018.

918.13 	Sec. 33. Laws 2017, First Special Session chapter 5, article 3, section 14, the effective 
918.14 	date, is amended to read:

918.15 	EFFECTIVE DATE. This section is effective July October 1, 2018.

918.16 	Sec. 34. Laws 2017, First Special Session chapter 5, article 3, section 15, the effective 
918.17 	date, is amended to read:

918.18 	EFFECTIVE DATE. This section is effective July October 1, 2018.

918.19 	Sec. 35. Laws 2017, First Special Session chapter 5, article 3, section 16, the effective 
918.20 	date, is amended to read:

918.21 	EFFECTIVE DATE. This section is effective July October 1, 2018.

918.22 	Sec. 36. Laws 2017, First Special Session chapter 5, article 3, section 36, is amended to 
918.23 	read:
918.24 	Sec. 36. REPEALER.
 918.25 	(a) Minnesota Statutes 2016, sections 122A.14, subdivision 5; and 122A.162, are repealed 
918.26 	effective January 1, 2018.
919.1 	(b) Minnesota Statutes 2016, sections 122A.163; 122A.18, subdivisions 2a, 3, 3a, 4, 4a, 
919.2 	6, 7, and 7b; 122A.21, subdivision 2; 122A.23, subdivisions 1 and 2; 122A.245; and 122A.25, 
919.3 	are repealed effective July October 1, 2018.

919.4 	Sec. 37. SURVEY OF TEACHER PREPARATION PROGRAMS.
 919.5 	The Professional Educator Licensing and Standards Board must survey board-approved 
919.6 	teacher preparation programs for teachers of elementary education, early childhood education, 
919.7 	special education, and reading intervention to determine the extent of dyslexia instruction 
919.8 	offered by the programs. The board may consult with the dyslexia specialist at the Department 
919.9 	of Education when developing the survey and reviewing the teacher preparation program 
919.10 	responses. The board must report its findings to the chairs and ranking minority members 
919.11 	of the legislative committees having jurisdiction over kindergarten through grade 12 
919.12 	education policy and finance by January 2, 2019. The report must include information on 
919.13 	teacher preparation program instruction on screening for characteristics of dyslexia, 
919.14 	evidence-based instructional strategies for students showing characteristics of dyslexia, and 
919.15 	best practices for assisting students showing characteristics of dyslexia and their families. 
919.16 	The report must be submitted in accordance with Minnesota Statutes, section 3.195.

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

919.18 	Sec. 38. TIERED LICENSURE RULES.
 919.19 	If the Professional Educator Licensing and Standards Board has not adopted tiered 
919.20 	licensure rules by October 1, 2018, the board must adopt in rule sections 39 to 56, which 
919.21 	expire upon the adoption of the tiered licensure rules. The board must adopt the rules required 
919.22 	by this section using the good cause exemption under Minnesota Statutes, section 14.388, 
919.23 	no later than October 1, 2018.

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

919.25 	Sec. 39. DEFINITIONS AND GENERAL RULES FOR TEACHING LICENSES.
 919.26 		Subdivision 1.Definitions. (a) For the purposes of sections 40 to 47, the terms in this 
919.27 	subdivision have the meanings given them.
919.28 	(b) "Assignment" means the course or courses taught in a school for which students are 
919.29 	granted credit.
919.30 	(c) "Board" means the Professional Educator Licensing and Standards Board.
919.31 	(d) "District" means a school district or a charter school.
920.1 	(e) "Field specific methods" means differentiated instructional strategies targeting content 
920.2 	and pedagogy for a singular licensure area to enable student learning.
920.3 	(f) "Good cause" means an applicant is unable to meet the requirements of a higher 
920.4 	licensure tier due to the lack of a reasonable path to a higher licensure tier or the path to a 
920.5 	higher licensure tier causes an undue burden on the applicant, as approved or denied by the 
920.6 	board.
920.7 	(g) "Innovative program" means a school within a district that is either a state-approved 
920.8 	area learning center or alternative learning program or provides a school board resolution 
920.9 	designating the school as an innovative program, including the reason for the designation.
920.10 	(h) "Licensure area" or "licensure field" means the content taught for which standards 
920.11 	have been adopted in Minnesota Rules.
920.12 	(i) "Professional license from another state" means a teaching license from a state other 
920.13 	than Minnesota that allows the individual to be a teacher of record.
920.14 	(j) "Related services teacher" means a teacher who holds a license issued by the board 
920.15 	consistent with Minnesota Statutes, section 122A.06, subdivision 2, and who meets the 
920.16 	requirements for a license issued pursuant to sections 50 to 54 and Minnesota Rules, parts 
920.17 	8710.6000 to 8710.6400.
920.18 	(k) "Student teaching" means a minimum of 12 weeks when an individual enrolled in a 
920.19 	teacher preparation program assumes teacher responsibilities while working with a 
920.20 	cooperating teacher who holds a Tier 3 or 4 license or a professional license from another 
920.21 	state in the subject area and a provider supervisor to practice and demonstrate the necessary 
920.22 	development of the individual's knowledge, skills, and dispositions to become a teacher. A 
920.23 	student teaching experience includes observation, feedback, and evaluation from the 
920.24 	cooperating teacher and provider supervisor.
920.25 	(l) "Teacher of record" means an individual who is responsible for the planning, 
920.26 	instruction, and assessment of students in a classroom and authorized to grant students credit 
920.27 	for meeting standards attributed to the content taught, or is part of a co-teaching assignment.
920.28 	(m) "Teacher preparation program" means a program approved by the board or the state 
920.29 	where the program resides that trains candidates in educational pedagogy and content-specific 
920.30 	pedagogy for any subset of the scope of licensure for students from birth to 21 years of age.
920.31 	(n) "Teaching license" or "teacher license" means a license that permits an individual 
920.32 	to be teacher of record. This includes Tier 1, Tier 2, Tier 3, and Tier 4 licenses issued under 
920.33 	sections 40 to 43.
921.1 		Subd. 2.Teaching licenses, in general. (a) Teaching licenses must be granted by the 
921.2 	board to applicants who meet all requirements of applicable statutes and rules.
921.3 	(b) An applicant must qualify separately for each licensure area for which an application 
921.4 	is made.
921.5 	(c) A license becomes valid on the date issued by the board and expires on June 30 of 
921.6 	the expiration year. A Tier 1 or Tier 2 license, out-of-field permission, or innovative program 
921.7 	permission can be used until September 1 after the date of expiration if the placement is in 
921.8 	a summer school program at the district aligned to the license or is part of a year-round 
921.9 	school at the district aligned to the licensure area.
921.10 	(d) The board must request a criminal history background check be performed by the 
921.11 	Bureau of Criminal Apprehension consistent with Minnesota Statutes, section 122A.18, 
921.12 	subdivision 8, upon an individual applying for a teaching license or substitute license for 
921.13 	the first time. Upon renewal of a teaching license, permission, or substitute license, the 
921.14 	board must perform a new background check on the license holder that includes a review 
921.15 	for national arrests, charges, and convictions if a background check has not been completed 
921.16 	on the license holder within the last five years.
921.17 		Subd. 3.Addition to a Tier 3 or 4 license. When a licensure area is added to a Tier 3 
921.18 	or 4 license issued under sections 42 and 43, the expiration date is the date previously 
921.19 	established for the Tier 3 or 4 license in effect.
921.20 		Subd. 4.Movement between tiers. Teachers may apply to obtain a license in a higher 
921.21 	licensure tier at any time after the requirements for the higher tier have been met. The teacher 
921.22 	must be granted the license under a higher tier upon review and approval by the board 
921.23 	pursuant to the rules established for the license sought. Applicants may obtain a license in 
921.24 	a lower licensure tier only if they hold a Tier 2 license in one licensure field and a district 
921.25 	requests to hire the applicant for a different licensure field in which the applicant does not 
921.26 	meet the requirements for a Tier 2 license. A teacher may simultaneously hold a Tier 1 and 
921.27 	a Tier 2 license under this subdivision.
921.28 		Subd. 5.Multiple expiration dates. If a license holder has completed and verified the 
921.29 	renewal requirements for a currently held Tier 3 or 4 license issued under sections 42 and 
921.30 	43, the license holder may renew a currently held Tier 3 or 4 license up to one year before 
921.31 	the expiration date for the purpose of consolidating multiple expiration dates of any Tier 3 
921.32 	or 4 licenses held into one expiration date. The consolidation of multiple expiration dates 
921.33 	must be consolidated within a single tier.
922.1 		Subd. 6.Appeal. An applicant who is denied a teaching license by the board or who is 
922.2 	issued a license under a different licensure tier than what was sought may appeal the board's 
922.3 	decision under Minnesota Rules, part 8710.0900, and Minnesota Statutes, chapter 14, and 
922.4 	Minnesota Statutes, section 122A.188.
922.5 		Subd. 7.Licenses issued in error. A license issued in error to a person who does not 
922.6 	qualify for the license must be corrected without charge to the license holder, and the 
922.7 	corrections must be made without a hearing under Minnesota Rules, part 8710.0900, and 
922.8 	Minnesota Statutes, chapter 14. A license issued in error is not valid.
922.9 		Subd. 8.Report. The board must issue an annual report by September 1 that summarizes 
922.10 	the previous fiscal year's Tier 1, 2, 3, and 4 licenses and out-of-field and innovative program 
922.11 	permissions, organized by licensure field, race and ethnicity, and district.
922.12 		Subd. 9.Fees. An applicant must pay an application fee for the review of the license 
922.13 	pursuant to Minnesota Statutes, section 122A.21.

922.14 	Sec. 40. TIER 1 LICENSE.
 922.15 		Subdivision 1.Purpose. If a district is unable to fill an open position with a teacher 
922.16 	holding a Tier 2, 3, or 4 license, a Tier 1 license must be issued, consistent with this section, 
922.17 	to an applicant who does not hold a Tier 2, 3, or 4 license on behalf of a district request 
922.18 	except as provided in section 39, subdivision 4. A Tier 1 license authorizes the license holder 
922.19 	to teach within the requesting district and the specific licensure field in the application.
922.20 		Subd. 2.Requirements. (a) The board must issue a Tier 1 license to an applicant upon 
922.21 	request by the designated administrator of the hiring district. The applicant must initiate the 
922.22 	application process and meet the requirements of this subdivision.
922.23 	(b) The applicant must:
922.24 	(1) hold the minimum of a bachelor's degree from a college or university located in the 
922.25 	United States that is regionally accredited by the Higher Learning Commission or by the 
922.26 	regional association for accreditation of colleges and secondary schools, as verified by a 
922.27 	college transcript;
922.28 	(2) hold a credential from outside the United States that is equivalent to a bachelor's 
922.29 	degree, as verified by a credential evaluation completed by a credential evaluator approved 
922.30 	by the National Association of Credential Evaluation Services or other board-approved 
922.31 	credential evaluation service; or
923.1 	(3) for applicants in career and technical education fields and career pathway courses 
923.2 	of study, have one of the following:
923.3 	(i) five years of relevant work experience aligned to the assignment;
923.4 	(ii) an associate's degree aligned to the assignment; or
923.5 	(iii) a professional certification aligned to the assignment.
923.6 	(c) The hiring district must show the position was posted for at least 15 days on the 
923.7 	board-approved statewide job board.
923.8 	(d) The hiring district must affirm the applicant:
923.9 	(1) will participate in a mentorship program, as available;
923.10 	(2) will participate in an evaluation aligned to the district's teacher development and 
923.11 	evaluation model under Minnesota Statutes, section 122A.40, subdivision 8, or 122A.41, 
923.12 	subdivision 5, or, if the statutory models are not practicable, to another identified 
923.13 	district-aligned evaluation; and
923.14 	(3) has the necessary skills and knowledge to teach in the content field aligned to the 
923.15 	assignment.
923.16 	(e) A committee of board staff designated by the board must review applications that 
923.17 	meet board criteria for an emergency placement under this subdivision within two business 
923.18 	days. The committee may immediately issue an interim permission for a qualified Tier 1 
923.19 	license based on board-adopted minimum qualifications criteria pending review by the 
923.20 	board. The interim permission expires at the first possible review by the full board. The 
923.21 	board must review applications after the position has been posted on the board-approved 
923.22 	statewide job board for 15 days.
923.23 		Subd. 3.Duration. A Tier 1 license is valid for up to one year and expires on June 30 
923.24 	of the expiration year.
923.25 		Subd. 4.Position change. If a Tier 1 license holder moves to another licensure area 
923.26 	within a district or to another district, prior to the expiration of the Tier 1 license, the license 
923.27 	holder must initiate a new application, including paying the application fee, and the hiring 
923.28 	district must meet the requirements under subdivision 2 for the new position. The applicant 
923.29 	is not required to complete a new background check by the board. The Tier 1 license issued 
923.30 	by the board under this subdivision is considered a new license, not a renewal.

924.1 	Sec. 41. TIER 2 LICENSE.
 924.2 		Subdivision 1.Purpose. A Tier 2 license must be issued, consistent with this section, 
924.3 	to an applicant on behalf of a district request. A Tier 2 license authorizes the license holder 
924.4 	to teach within the requesting district and the specific licensure field in the application.
924.5 		Subd. 2.Requirements. (a) The board must issue a Tier 2 license to an applicant upon 
924.6 	request by the designated administrator of the hiring district. The applicant must initiate the 
924.7 	application process and must meet the requirements of this subdivision.
924.8 	(b) The applicant must:
924.9 	(1) hold the minimum of a bachelor's degree from a college or university located in the 
924.10 	United States that is regionally accredited by the Higher Learning Commission or by the 
924.11 	regional association for accreditation of colleges and secondary schools, as verified by a 
924.12 	college transcript;
924.13 	(2) hold a credential from outside the United States that is equivalent to a bachelor's 
924.14 	degree, as verified by a credential evaluation completed by a credential evaluator approved 
924.15 	by the National Association of Credential Evaluation Services or other board-approved 
924.16 	credential evaluation service; or
924.17 	(3) for applicants in career and technical education fields and career pathway courses 
924.18 	of study, have one of the following:
924.19 	(i) five years of relevant work experience aligned to the assignment;
924.20 	(ii) an associate's degree aligned to the assignment; or
924.21 	(iii) a professional certification aligned to the assignment.
924.22 	(c) The applicant must:
924.23 	(1) be enrolled in a board-approved teacher preparation program aligned to the licensure 
924.24 	field;
924.25 	(2) hold a master's degree, or equivalent, aligned to the assignment from a college or 
924.26 	university located in the United States that is regionally accredited by the Higher Learning 
924.27 	Commission or by the regional association for accreditation of colleges and secondary 
924.28 	schools, as verified by a college transcript; or
924.29 	(3) show completion of two of the following:
924.30 	(i) at least eight upper division or graduate-level credits aligned to the assignment;
925.1 	(ii) field-specific methods in a state-approved teacher preparation program aligned to 
925.2 	the assignment;
925.3 	(iii) at least two years of experience teaching as the teacher of record aligned to the 
925.4 	assignment;
925.5 	(iv) board-adopted pedagogy and content examinations with passing scores aligned to 
925.6 	the licensure area. Any licensure area that does not have a board-approved content 
925.7 	examination is exempt from the content examination requirement; or
925.8 	(v) a state-approved teacher preparation program aligned to the licensure area.
925.9 	(d) The hiring district must affirm the applicant will participate in mentorship as available 
925.10 	and evaluation aligned to the district's teacher development and evaluation model under 
925.11 	Minnesota Statutes, section 122A.40, subdivision 8, or 122A.41, subdivision 5, or, if the 
925.12 	statutory models are not practicable, to another identified district-aligned evaluation.
925.13 		Subd. 3.Duration. A Tier 2 license is valid for up to two years and expires on June 30 
925.14 	of the expiration year.
925.15 		Subd. 4.Position change. If a Tier 2 license holder moves to another licensure area 
925.16 	within a district or to another district, prior to the expiration of the Tier 2 license, the license 
925.17 	holder must initiate a new application, including paying the application fee, and the hiring 
925.18 	district must meet the requirements under subdivision 2 for the new position. The applicant 
925.19 	is not required to complete a new background check by the board. The Tier 2 license issued 
925.20 	by the board under this subdivision is considered a new license, not a renewal.

925.21 	Sec. 42. TIER 3 LICENSE.
 925.22 		Subdivision 1.Purpose. A Tier 3 license must be issued to an applicant, consistent with 
925.23 	this section, aligned to the scope and field of the applicant's training and experience. A Tier 
925.24 	3 license authorizes the license holder to teach within the specific licensure field for which 
925.25 	board rules exist.
925.26 		Subd. 2.Requirements.  (a) The board must issue a Tier 3 license if the applicant meets 
925.27 	all of the requirements of this subdivision.
925.28 	(b) The applicant must:
925.29 	(1) hold the minimum of a bachelor's degree from a college or university located in the 
925.30 	United States that is regionally accredited by the Higher Learning Commission or by the 
925.31 	regional association for accreditation of colleges and secondary schools, as verified by a 
925.32 	college transcript;
926.1 	(2) hold a credential from outside the United States that is equivalent to a bachelor's 
926.2 	degree, as verified by a credential evaluation completed by a credential evaluator approved 
926.3 	by the National Association of Credential Evaluation Services or other board-approved 
926.4 	credential evaluation service; or
926.5 	(3) for applicants in career and technical education fields and career pathway courses 
926.6 	of study, have one of the following:
926.7 	(i) five years of relevant work experience aligned to the licensure area sought;
926.8 	(ii) an associate's degree aligned to the licensure area sought; or
926.9 	(iii) a professional certification aligned to the licensure area sought from an approved 
926.10 	certifying organization.
926.11 	(c) The applicant must obtain passing scores on the board-approved pedagogy and content 
926.12 	examinations aligned to the licensure area sought. Any licensure area that does not have a 
926.13 	board-approved content examination is exempt from the content examination requirement.
926.14 	(d) The applicant must show one of the following:
926.15 	(1) completion of a board-approved conventional, nonconventional, or alternative teacher 
926.16 	preparation program aligned to the licensure area sought. The board must accept certifications 
926.17 	in related services positions under sections 50 to 54 and Minnesota Rules, parts 8710.6000 
926.18 	to 8710.6400, in lieu of completion of a board-approved teacher preparation program;
926.19 	(2) completion of a preparation program approved in another state aligned to the licensure 
926.20 	area sought that included field-specific student teaching equivalent to field-specific student 
926.21 	teaching in Minnesota-approved teacher preparation programs. The applicant is exempt 
926.22 	from field-specific student teaching if the applicant has at least two years of field-specific 
926.23 	experience teaching as the teacher of record in the licensure area sought;
926.24 	(3) recommendation for licensure via portfolio application aligned to the licensure area 
926.25 	sought;
926.26 	(4) holds or held a professional license from another state in good standing aligned to 
926.27 	the licensure area sought with at least two years of experience teaching as the teacher of 
926.28 	record aligned to the licensure area sought; or
926.29 	(5) has at least three years of experience teaching as the teacher of record aligned to the 
926.30 	licensure area sought under a Tier 2 license and presents evidence of summative teacher 
926.31 	evaluations that did not result in placing or otherwise keeping the teacher on an improvement 
926.32 	process aligned to the district's teacher development and evaluation plan.
927.1 		Subd. 3.Duration. A Tier 3 license is valid for up to three years and expires on June 
927.2 	30 of the expiration year.
927.3 		Subd. 4.Restrictions. (a) An applicant whose content training or experience does not 
927.4 	align to a currently approved Minnesota license, but for which past rules have been adopted, 
927.5 	and who meets all other requirements of subdivision 2, must be issued a Tier 3 license 
927.6 	restricted to the scope and licensure area of the applicant's content training or experience.
927.7 	(b) Applicants with content training and experience within two grade levels of a currently 
927.8 	approved Minnesota licensure scope must be granted the full scope of the Minnesota license.
927.9 	(c) Applicants who meet the requirements of subdivision 2, paragraphs (b) and (c), from 
927.10 	a Montessori Accreditation Council for Teacher Education accredited training center must 
927.11 	be issued a Tier 3 license restricted to a Montessori setting and aligned to the scope of 
927.12 	training.

927.13 	Sec. 43. TIER 4 LICENSE.
 927.14 		Subdivision 1.Purpose. A Tier 4 license authorizes the license holder, consistent with 
927.15 	this section, to teach in the field and scope aligned to the license holder's preparation. A 
927.16 	Tier 4 license indicates the license holder has had at least three years of experience in 
927.17 	Minnesota within the field and scope of licensure and completed the professional 
927.18 	development requirements mandated by statute.
927.19 		Subd. 2.Requirements. (a) The board must issue a Tier 4 license if the applicant meets 
927.20 	all of the requirements of this subdivision.
927.21 	(b) The applicant must:
927.22 	(1) hold the minimum of a bachelor's degree from a college or university located in the 
927.23 	United States that is regionally accredited by the Higher Learning Commission or by the 
927.24 	regional association for accreditation of colleges and secondary schools, as verified by a 
927.25 	college transcript;
927.26 	(2) hold a credential from outside the United States that is equivalent to a bachelor's 
927.27 	degree, as verified by a credential evaluation completed by a credential evaluator approved 
927.28 	by the National Association of Credential Evaluation Services or other board-approved 
927.29 	credential evaluation service; or
927.30 	(3) for applicants in career and technical education fields and career pathway courses 
927.31 	of study, have one of the following:
927.32 	(i) five years of relevant work experience aligned to the licensure area sought;
928.1 	(ii) an associate's degree aligned to the licensure area sought; or
928.2 	(iii) a professional certification aligned to the licensure area sought from an approved 
928.3 	certifying organization.
928.4 	(c) The applicant must have completed one of the following:
928.5 	(1) a board-approved conventional, nonconventional, or alternative teacher preparation 
928.6 	program aligned to the licensure area sought. The board must accept certifications in related 
928.7 	services positions under sections 50 to 54 and Minnesota Rules, parts 8710.6000 to 
928.8 	8710.6400, in lieu of completion of a board-approved teacher preparation program; or
928.9 	(2) a preparation program approved in another state aligned to the licensure area sought 
928.10 	that included field-specific student teaching equivalent to field-specific student teaching in 
928.11 	Minnesota-approved teacher preparation programs. The applicant is exempt from 
928.12 	field-specific student teaching if the applicant has at least two years of field-specific 
928.13 	experience teaching as the teacher of record.
928.14 	(d) The applicant must obtain passing scores on the board-approved skills, pedagogy, 
928.15 	and content examinations aligned to the licensure area sought. Any licensure area that does 
928.16 	not have a board-approved content examination is exempt from the content examination 
928.17 	requirement.
928.18 	(e) The applicant must have at least three years of experience teaching in Minnesota as 
928.19 	the teacher of record.
928.20 	(f) The applicant's most recent summative evaluation must not have resulted in placing 
928.21 	or otherwise keeping the teacher in an improvement process aligned to the district's teacher 
928.22 	development and evaluation plan.
928.23 	(g) The applicant must have participated in mentorship and evaluation aligned to the 
928.24 	district's teacher development and evaluation model under Minnesota Statutes, section 
928.25 	122A.40, subdivision 8, or 122A.41, subdivision 5, or, if the statutory models are not 
928.26 	practicable, to another identified district-aligned evaluation.
928.27 		Subd. 3.Adding a Tier 4 license. To add an additional Tier 4 license, the applicant 
928.28 	must show evidence of meeting the requirements of subdivision 2, paragraph (d), and section 
928.29 	42, subdivision 2, paragraph (d), clause (1), (2), or (3), in the licensure area sought. An 
928.30 	applicant may add a teachers of science endorsement by meeting the requirements of 
928.31 	Minnesota Rules, part 8710.4770.
928.32 		Subd. 4.Duration. A Tier 4 license is valid for up to five years and expires on June 30 
928.33 	of the expiration year.
929.1 		Subd. 5.Restrictions. (a) An applicant whose content training or experience does not 
929.2 	align to a currently approved Minnesota license, but for which past rules have been adopted, 
929.3 	and who meets all other requirements of this part must be issued a Tier 4 license restricted 
929.4 	to the scope and licensure area of the applicant's content training or experience.
929.5 	(b) Applicants with content training and experience within two grade levels of a currently 
929.6 	approved Minnesota licensure scope must be granted the full scope of the Minnesota license.

929.7 	Sec. 44. OUT-OF-FIELD PERMISSION.
 929.8 		Subdivision 1.Purpose. An out-of-field permission authorizes a teacher holding a Tier 
929.9 	3 or 4 license, consistent with this section, to teach in a field not aligned with the Tier 3 or 
929.10 	4 license.
929.11 		Subd. 2.Requirements. (a) The board must issue an out-of-field permission upon request 
929.12 	by the designated administrator of the hiring district. The applicant must initiate the 
929.13 	application process, and the hiring district must show:
929.14 	(1) the applicant holds a valid Tier 3 or 4 license;
929.15 	(2) the applicant holds a license other than for a related services position under sections 
929.16 	50 to 54 and Minnesota Rules, parts 8710.6000 to 8710.6400;
929.17 	(3) the applicant approves the request; and
929.18 	(4) the position was posted for at least 15 days on the board-approved statewide job 
929.19 	board.
929.20 	(b) A committee of board staff designated by the board must review applications 
929.21 	requesting emergency placements under this subdivision within two business days. The 
929.22 	committee may immediately issue an out-of-field permission based on board-adopted criteria 
929.23 	pending review by the board. The board must review applications after the position has 
929.24 	been posted on the board-approved statewide job board for 15 days.
929.25 		Subd. 3.Duration. An out-of-field permission is valid for up to one year and expires 
929.26 	on June 30 of the expiration year.
929.27 		Subd. 4.Limitations and exceptions. (a) An individual cannot hold an out-of-field 
929.28 	permission to work in a related services position.
929.29 	(b) An out-of-field permission is limited to the licensure area and the district for which 
929.30 	it was granted.
930.1 	(c) An out-of-field permission granted for a summer school only position may be renewed 
930.2 	an unlimited number of times.

930.3 	Sec. 45. INNOVATIVE PROGRAM PERMISSION.
 930.4 		Subdivision 1.Purpose. An innovative program permission authorizes a licensed teacher, 
930.5 	consistent with this section, to teach multiple fields within an established innovative program.
930.6 		Subd. 2.Requirements. The board must issue an innovative program permission upon 
930.7 	request by the designated administrator of the hiring district. The applicant must initiate the 
930.8 	application process, and the hiring district must show:
930.9 	(1) the applicant holds a Tier 3 or 4 license; and
930.10 	(2) the teaching assignment is within an innovative program.
930.11 		Subd. 3.Duration. An innovative program permission is valid for up to one year and 
930.12 	expires on June 30 of the expiration year.
930.13 		Subd. 4.Renewal. An innovative program permission may be renewed an unlimited 
930.14 	number of times.

930.15 	Sec. 46. SHORT-CALL SUBSTITUTE LICENSE.
 930.16 		Subdivision 1.Purpose. A short-call substitute license authorizes the license holder to 
930.17 	replace the same teacher of record for no more than 15 consecutive school days.
930.18 		Subd. 2.Requirements. The board must issue a short-call substitute license to an 
930.19 	applicant who meets the requirements of this subdivision. The applicant must:
930.20 	(1) hold the minimum of a bachelor's degree from a college or university located in the 
930.21 	United States that is regionally accredited by the Higher Learning Commission or by the 
930.22 	regional association for accreditation of colleges and secondary schools, as verified by a 
930.23 	college transcript;
930.24 	(2) hold a credential from outside the United States that is equivalent to a bachelor's 
930.25 	degree, as verified by a credential evaluation completed by a credential evaluator approved 
930.26 	by the National Association of Credential Evaluation Services or other board-approved 
930.27 	credential evaluation service;
930.28 	(3) for applicants in career and technical education fields and career pathway courses 
930.29 	of study, have one of the following:
930.30 	(i) five years of relevant work experience aligned to the assignment;
931.1 	(ii) an associate's degree aligned to the assignment;
931.2 	(iii) a professional certification aligned to the assignment from an approved certifying 
931.3 	organization; or
931.4 	(iv) be enrolled in and making meaningful progress, as defined by the provider, in a 
931.5 	board-approved teacher preparation program and have successfully completed student 
931.6 	teaching to be employed as a short-call substitute teacher.
931.7 		Subd. 3.Duration. A short-call substitute license is valid for up to three years and 
931.8 	expires on June 30 of the expiration year.
931.9 		Subd. 4.Renewal. An applicant must reapply for a short-call substitute license upon its 
931.10 	expiration.

931.11 	Sec. 47. LIFETIME SUBSTITUTE LICENSE.
 931.12 		Subdivision 1.Purpose. A lifetime substitute license is issued, consistent with this 
931.13 	section, to a retired teacher and authorizes the license holder to replace a teacher of record 
931.14 	who is on an approved leave of absence.
931.15 		Subd. 2.Requirements. The board must issue a lifetime substitute license to an applicant 
931.16 	who meets one of the following:
931.17 	(1) holds or held a Tier 3 or 4 license, a Minnesota five-year standard license or its 
931.18 	equivalent, or a professional license from another state and receives a retirement annuity 
931.19 	as a result of the person's teaching experience; or
931.20 	(2) holds or held a Tier 3 or 4 license or a Minnesota five-year standard license or its 
931.21 	equivalent, taught for at least three years in an accredited nonpublic school in Minnesota, 
931.22 	and receives a retirement annuity as a result of the person's teaching experience.
931.23 		Subd. 3.Duration. A lifetime substitute license does not expire.
931.24 		Subd. 4.Limitations. A teacher holding a lifetime substitute license may replace the 
931.25 	same teacher of record on an approved leave of absence for more than 15 consecutive school 
931.26 	days if the substitute teacher's previous Tier 3 or 4 license, Minnesota five-year standard 
931.27 	license or its equivalent, or professional license from another state is aligned to the 
931.28 	assignment.

932.1 	Sec. 48. TEACHERS OF READING.
 932.2 	A candidate for licensure to teach reading to students in kindergarten through grade 12 
932.3 	shall hold or qualify for a teaching license, as defined in section 39, valid for one or more 
932.4 	of the following student levels: elementary, middle, or secondary.

932.5 	Sec. 49. READING LEADER.
 932.6 	A candidate for licensure to teach reading to students in kindergarten through grade 12 
932.7 	shall hold or qualify for a teaching license, as defined in section 39, valid for one or more 
932.8 	of the following student levels: elementary, middle, or secondary.

932.9 	Sec. 50. SPEECH-LANGUAGE PATHOLOGIST.
 932.10 		Subdivision 1.Exceptions. A speech-language pathologist teacher is not required to 
932.11 	pass content, pedagogy, or basic skills examinations.
932.12 		Subd. 2.Requirements for Tier 2 license. (a) A Tier 2 license issued under section 41 
932.13 	must be issued to a speech-language pathologist teacher if the requirements of this subdivision 
932.14 	are met.
932.15 	(b) The applicant must:
932.16 	(1) hold a baccalaureate degree in speech-language pathology or communication 
932.17 	disorders; and
932.18 	(2) be enrolled in a master's degree program. The recommending institution must agree 
932.19 	in writing to provide supervision for the speech-language pathologist teacher.
932.20 	(c) The hiring district must:
932.21 	(1) request a Tier 2 license from the board; and
932.22 	(2) affirm the applicant will participate in an evaluation aligned to the district's teacher 
932.23 	development and evaluation model under Minnesota Statutes, section 122A.40, subdivision 
932.24 	8, or 122A.41, subdivision 5, or if the statutory models are not practicable, to another 
932.25 	identified district-aligned evaluation.
932.26 		Subd. 3.Requirements for Tier 3 license. A Tier 3 license issued under section 42 
932.27 	must be issued to a speech-language pathologist teacher if the applicant provides evidence 
932.28 	of:
933.1 	(1) having completed a master's degree in speech-language pathology from a program 
933.2 	accredited by the Council on Academic Affairs of the American Speech-Language-Hearing 
933.3 	Association; or
933.4 	(2) holding a valid certificate of clinical competence from the American 
933.5 	Speech-Language-Hearing Association.
933.6 		Subd. 4.Requirements for Tier 4 license. A Tier 4 license issued under section 43 
933.7 	must be issued to a speech-language pathologist teacher if the applicant:
933.8 	(1) meets all requirements for a Tier 3 license under subdivision 3;
933.9 	(2) has at least three years of experience as a speech-language pathologist teacher in 
933.10 	Minnesota schools; and
933.11 	(3) was not placed or otherwise kept in an improvement process aligned to the district's 
933.12 	teacher development and evaluation plan by the applicant's most recent summative evaluation.

933.13 	Sec. 51. SCHOOL NURSE.
 933.14 		Subdivision 1.Exceptions. A school nurse is not required to pass content, pedagogy, 
933.15 	or basic skills examinations.
933.16 		Subd. 2.Requirements for Tier 3 license. A Tier 3 license issued under section 42 
933.17 	must be issued to a school nurse if the applicant:
933.18 	(1)  holds a baccalaureate degree in nursing from a regionally accredited college or 
933.19 	university;
933.20 	(2)  is currently registered in Minnesota to practice as a licensed registered nurse under 
933.21 	the Board of Nursing; and
933.22 	(3)  is currently registered in Minnesota as a public health nurse under the Board of 
933.23 	Nursing.
933.24 		Subd. 3.Requirements for Tier 4 license. A Tier 4 license issued under section 43 
933.25 	must be issued to a school nurse if the applicant:
933.26 	(1) meets all requirements for a Tier 3 license under subdivision 2;
933.27 	(2) has at least three years of experience as a school nurse in Minnesota; and
933.28 	(3) was not placed or otherwise kept in an improvement process aligned to the district's 
933.29 	teacher development and evaluation plan by the applicant's most recent summative evaluation.
934.1 		Subd. 4.Maintaining board of nursing registration. In order to retain licensure as a 
934.2 	school nurse, current registration as a registered nurse and registration as a public health 
934.3 	nurse must be maintained at all times. Lapse of this registration or licensure is grounds for 
934.4 	revocation of licensure as a school nurse.
934.5 	Persons without baccalaureate degrees who hold valid licenses as school nurses may 
934.6 	continue to renew their licenses under this subdivision, provided that requirements for 
934.7 	renewal are met. However, if a license is allowed to lapse, persons must meet the licensure 
934.8 	requirements in subdivision 2 or 3 in order to receive a current school nurse license.

934.9 	Sec. 52. SCHOOL PSYCHOLOGIST.
 934.10 		Subdivision 1.Exceptions. A school psychologist is not required to pass content, 
934.11 	pedagogy, or basic skills examinations.
934.12 		Subd. 2.Requirements for Tier 2 license. (a) A Tier 2 license issued under section 41 
934.13 	must be issued to a school psychologist if the requirements of this subdivision are met.
934.14 	(b) The applicant must:
934.15 	(1) provide evidence that the applicant has completed a school psychology program not 
934.16 	accredited by the National Association of School Psychologists and does not hold a National 
934.17 	School Psychologist Certification; or
934.18 	(2) hold a master's degree or equivalent in a school psychology program and provide 
934.19 	verification of completion of at least three years of preparation required for licensure as a 
934.20 	school psychologist. The recommending institution must verify completion of at least three 
934.21 	years of preparation required for licensure as a school psychologist, affirm that the institution 
934.22 	will assist in designing the learning experience, and provide supervision during the learning 
934.23 	experience.
934.24 	(c) The hiring district must:
934.25 	(1) request a Tier 2 license from the board;
934.26 	(2) affirm the applicant will participate in an evaluation aligned to the district's teacher 
934.27 	development and evaluation model under Minnesota Statutes, section 122A.40, subdivision 
934.28 	8, or 122A.41, subdivision 5, or if the statutory models are not practicable, to another 
934.29 	identified district-aligned evaluation; and
934.30 	(3) if the applicant obtains a Tier 2 license pursuant to paragraph (b), clause (2), assign 
934.31 	a school psychologist who holds a Tier 3 or Tier 4 license issued under sections 42 and 43 
934.32 	to supervise the applicant.
935.1 		Subd. 3.Tier 2 license duration; renewal. (a) A Tier 2 license issued under subdivision 
935.2 	2, paragraph (b), clause (1), is valid for up to two years, expires on June 30 of the expiration 
935.3 	year, and may be renewed one time pursuant to board rules.
935.4 	(b) A Tier 2 license issued under subdivision 2, paragraph (b), clause (2), may be used 
935.5 	only in the requesting district, is valid for up to one school year, and expires on the June 30 
935.6 	following the date of issuance. The license may be renewed one time upon application to 
935.7 	the board if the applicant must complete the equivalent of one school year of internship 
935.8 	experience during the following school year. The license shall be revoked by the board if 
935.9 	it is demonstrated that the intent and purpose of the licensure have not been fulfilled.
935.10 		Subd. 4.Requirements for Tier 3 license. A Tier 3 license issued under section 42 
935.11 	must be issued to a school psychologist if the applicant has completed a preparation program 
935.12 	in school psychology accredited by the National Association of School Psychologists.
935.13 		Subd. 5.Requirements for Tier 4 license. A Tier 4 license issued under section 43 
935.14 	must be issued to a school psychologist if the applicant:
935.15 	(1) meets all requirements for a Tier 3 license issued under subdivision 4;
935.16 	(2) has at least three years of experience working as a school psychologist in Minnesota; 
935.17 	and
935.18 	(3) was not placed or otherwise kept in an improvement process aligned to the district's 
935.19 	teacher development and evaluation plan by the applicant's most recent summative evaluation.

935.20 	Sec. 53. SCHOOL SOCIAL WORKER.
 935.21 		Subdivision 1.Exceptions. A school social worker is not required to pass content, 
935.22 	pedagogy, or basic skills examinations.
935.23 		Subd. 2.Requirements for Tier 3 license. A Tier 3 license issued under section 42 
935.24 	must be issued to a school social worker if the applicant:
935.25 	(1)  holds a baccalaureate or master's degree in social work from a program accredited 
935.26 	by the Council on Social Work Education; and
935.27 	(2)  is currently licensed in Minnesota to practice as a social worker under the Board of 
935.28 	Social Work.
935.29 		Subd. 3.Requirements for Tier 4 license. A Tier 4 license issued under section 43 
935.30 	must be issued to a school social worker if the applicant:
935.31 	(1) meets all requirements for a Tier 3 license under subdivision 2;
936.1 	(2) has at least three years of experience working as a school social worker in Minnesota; 
936.2 	and
936.3 	(3) was not placed or otherwise kept in an improvement process aligned to the district's 
936.4 	teacher development and evaluation plan by the applicant's most recent summative evaluation.

936.5 	Sec. 54. SCHOOL COUNSELOR.
 936.6 		Subdivision 1.Exceptions. A school counselor is not required to pass content, pedagogy, 
936.7 	or basic skills examinations.
936.8 		Subd. 2.Requirements for Tier 2 license. (a) A Tier 2 license issued under section 41 
936.9 	must be issued to a school counselor if the requirements of this subdivision are met.
936.10 	(b) The applicant must:
936.11 	(1) hold a baccalaureate degree;
936.12 	(2) be enrolled in an accredited school counselor education program;
936.13 	(3) have accumulated no less than 24 semester credit hours in school counseling-specific 
936.14 	coursework or content, including introduction to the field, counseling skills, and ethical 
936.15 	standards; and
936.16 	(4) verify to the board in writing a plan of study of full- or part-time enrollment to achieve 
936.17 	licensure within three years.
936.18 	(c) The hiring district must show the position was posted for at least 15 days on the 
936.19 	board-approved statewide job board.
936.20 	(d) The hiring district must:
936.21 	(1) request a Tier 2 license from the board; and
936.22 	(2) affirm the applicant will participate in an evaluation aligned to the district's teacher 
936.23 	development and evaluation model under Minnesota Statutes, section 122A.40, subdivision 
936.24 	8, or 122A.41, subdivision 5, or if the statutory models are not practicable, to another 
936.25 	identified district-aligned evaluation.
936.26 	(e) Applicants granted a license to practice under this subdivision must obtain approval 
936.27 	to practice in writing from the school counseling program in which they are enrolled and 
936.28 	must be supervised by a duly licensed school counselor with no less than two years of 
936.29 	full-time practice experience.
936.30 		Subd. 3.Tier 2 license duration. A Tier 2 license issued under subdivision 2 is valid 
936.31 	for two years and may be renewed one time.
937.1 		Subd. 4.Requirements for Tier 3 license. A Tier 3 license issued under section 42 
937.2 	must be issued to a school counselor if the applicant:
937.3 	(1) holds a master's degree or the equivalent in school counseling from a college or 
937.4 	university that is regionally accredited by the association for the accreditation of colleges 
937.5 	and secondary schools; and
937.6 	(2) shows verification of having completed a preparation program approved by the state 
937.7 	where the program resides or the Council for the Accreditation of Counseling and Related 
937.8 	Educational Services.
937.9 		Subd. 5.Requirements for Tier 4 license. A Tier 4 license issued under section 43 
937.10 	must be issued to a school counselor if the applicant:
937.11 	(1) meets all requirements for a Tier 3 license issued under subdivision 4;
937.12 	(2) has at least three years of experience working as a school counselor in Minnesota; 
937.13 	and
937.14 	(3) was not placed or otherwise kept in an improvement process aligned to the district's 
937.15 	teacher development and evaluation plan by the applicant's most recent summative evaluation.

937.16 	Sec. 55. DUTY OF LICENSEE TO RENEW.
 937.17 	It is the responsibility of the person seeking the renewal of a Tier 3 or 4 teaching license 
937.18 	to comply with licensure renewal requirements and to submit the application, appropriate 
937.19 	verification, and other supporting materials to the local continuing education/relicensure 
937.20 	committee, in accordance with procedures and due dates established by that committee.

937.21 	Sec. 56. CAREER PATHWAYS TEACHER.
 937.22 		Subdivision 1.Scope of practice. A career pathways teacher is authorized to teach 
937.23 	students the skills and information necessary for a specific career where that career does 
937.24 	not necessarily require a four-year degree and in which there are not board rules in place. 
937.25 	Such careers include but are not limited to law enforcement, cosmetology, and park services.
937.26 		Subd. 2.Licensure requirements. (a) A candidate for licensure as a career pathways 
937.27 	teacher must meet the requirements of this subdivision.
937.28 	(b) The applicant must have one of the following:
937.29 	(1) five years of relevant work experience;
937.30 	(2) at least an associate's degree aligned to the career field; or
938.1 	(3) a professional certification aligned to the career field from an approved certifying 
938.2 	organization.
938.3 	(c) The applicant must demonstrate to the board the standards of effective practice under 
938.4 	Minnesota Rules, part 8710.2000, have been met through standards of effective practice 
938.5 	coursework or experiences through a teacher preparation provider.

938.6 	Sec. 57.  REPEALER.
 938.7 	(a) Minnesota Rules, parts 8700.7620; 8710.0300, subparts 1, 1a, 2, 2a, 2b, 3, 5, 6, 7, 
938.8 	8, 9, 10, and 11; 8710.1000; 8710.1050; 8710.1250; 8710.1400; and 8710.1410, are repealed.
938.9 	(b) Minnesota Statutes 2017 Supplement, section 122A.09, subdivision 1, and Minnesota 
938.10 	Rules, part 8710.2100, subparts 1 and 2, are repealed.

938.11 	EFFECTIVE DATE. Paragraph (a) is effective October 1, 2018. Paragraph (b) is 
938.12 	effective the day following final enactment.

938.13 	ARTICLE 50
938.14 	SPECIAL EDUCATION

938.15 	Section 1. Minnesota Statutes 2016, section 120A.20, subdivision 2, is amended to read:
938.16 		Subd. 2.Education, residence, and transportation of homeless. (a) Notwithstanding 
938.17 	subdivision 1, a district must not deny free admission to a homeless pupil solely because 
938.18 	the district cannot determine that the pupil is a resident of the district.
938.19 	(b) The school district of residence for a homeless pupil shall be the school district in 
938.20 	which the parent or legal guardian resides, unless: (1) parental rights have been terminated 
938.21 	by court order; (2) the parent or guardian is not living within the state; or (3) the parent or 
938.22 	guardian having legal custody of the child is an inmate of a Minnesota correctional facility 
938.23 	or is a resident of a halfway house under the supervision of the commissioner of corrections. 
938.24 	If any of clauses (1) to (3) apply, the school district of residence shall be the school district 
938.25 	in which the pupil resided when the qualifying event occurred. If no other district of residence 
938.26 	can be established, the school district of residence shall be the school district in which the 
938.27 	pupil currently resides. If there is a dispute between school districts regarding residency, 
938.28 	the district of residence is the district designated by the commissioner of education.
938.29 	(c) Except as provided in paragraph (d), the serving district is responsible for transporting 
938.30 	a homeless pupil to and from the pupil's district of residence. The district may transport 
938.31 	from a permanent home in another district but only through the end of the academic school 
938.32 	year. When a pupil is enrolled in a charter school, the district or school that provides 
939.1 	transportation for other pupils enrolled in the charter school is responsible for providing 
939.2 	transportation. When a homeless student with or without an individualized education program 
939.3 	attends a public school other than an independent or special school district or charter school, 
939.4 	the district of residence is responsible for transportation.
939.5 	(d) For a homeless pupil with an individualized education program enrolled in a program 
939.6 	authorized by an intermediate school district, special education cooperative, service 
939.7 	cooperative, or education district, the serving district at the time of the pupil's enrollment 
939.8 	in the program remains responsible for transporting that pupil for the remainder of the school 
939.9 	year, unless the initial serving district and the current serving district mutually agree that 
939.10 	the current serving district is responsible for transporting the homeless pupil.

939.11 	EFFECTIVE DATE. This section is effective July 1, 2018.

939.12 	Sec. 2. Laws 2017, First Special Session chapter 5, article 2, section 56, is amended to 
939.13 	read:
939.14 	Sec. 56. INTERMEDIATE SCHOOL DISTRICT MENTAL HEALTH 
939.15 	INNOVATION GRANT PROGRAM; APPROPRIATION.
 939.16 	(a) $2,450,000 in fiscal year 2018 and $2,450,000 in fiscal year 2019 are appropriated 
939.17 	from the general fund to the commissioner of human services for a grant program to fund 
939.18 	innovative projects to improve mental health outcomes for youth attending a qualifying 
939.19 	school unit.
939.20 	(b) A "qualifying school unit" means an intermediate district organized under Minnesota 
939.21 	Statutes, section 136D.01, or a service cooperative organized under Minnesota Statutes, 
939.22 	section 123A.21, subdivision 1, paragraph (a), clause (2), that provides instruction to students 
939.23 	in a setting of federal instructional level 4 or higher. Grants under paragraph (a) must be 
939.24 	awarded to eligible applicants such that the services are proportionately provided among 
939.25 	qualifying school units. The commissioner shall calculate the share of the appropriation to 
939.26 	be used in each qualifying school unit by dividing the qualifying school unit's average daily 
939.27 	membership in a setting of federal instructional level 4 or higher for fiscal year 2016 by the 
939.28 	total average daily membership in a setting of federal instructional level 4 or higher for the 
939.29 	same year for all qualifying school units.
939.30 	(c) An eligible applicant is an entity that has demonstrated capacity to serve the youth 
939.31 	identified in paragraph (a) and that is:
939.32 	(1) certified under Minnesota Rules, parts 9520.0750 to 9520.0870;
940.1 	(2) a community mental health center under Minnesota Statutes, section 256B.0625, 
940.2 	subdivision 5;
940.3 	(3) an Indian health service facility or facility owned and operated by a tribe or tribal 
940.4 	organization operating under United States Code, title 25, section 5321; or
940.5 	(4) a provider of children's therapeutic services and supports as defined in Minnesota 
940.6 	Statutes, section 256B.0943.; or
940.7 	(5) enrolled in medical assistance as a mental health or substance use disorder provider 
940.8 	agency and must employ at least two full-time equivalent mental health professionals as 
940.9 	defined in Minnesota Statutes, section 245.4871, subdivision 27, clauses (1) to (6), or alcohol 
940.10 	and drug counselors licensed or exempt from licensure under chapter 148F who are qualified 
940.11 	to provide clinical services to children and families.
940.12 	(d) An eligible applicant must employ or contract with at least two licensed mental health 
940.13 	professionals as defined in Minnesota Statutes, section 245.4871, subdivision 27, clauses 
940.14 	(1) to (6), who have formal training in evidence-based practices.
940.15 	(e) A qualifying school unit must submit an application to the commissioner in the form 
940.16 	and manner specified by the commissioner. The commissioner may approve an application 
940.17 	that describes models for innovative projects to serve the needs of the schools and students. 
940.18 	The commissioner may provide technical assistance to the qualifying school unit. The 
940.19 	commissioner shall then solicit grant project proposals and award grant funding to the 
940.20 	eligible applicants whose project proposals best meet the requirements of this section and 
940.21 	most closely adhere to the models created by the intermediate districts and service 
940.22 	cooperatives.
940.23 	(f) To receive grant funding, an eligible applicant must obtain a letter of support for the 
940.24 	applicant's grant project proposal from each qualifying school unit the eligible applicant is 
940.25 	proposing to serve. An eligible applicant must also demonstrate the following:
940.26 	(1) the ability to seek third-party reimbursement for services;
940.27 	(2) the ability to report data and outcomes as required by the commissioner; and
940.28 	(3) the existence of partnerships with counties, tribes, substance use disorder providers, 
940.29 	and mental health service providers, including providers of mobile crisis services.
940.30 	(g) Grantees shall obtain all available third-party reimbursement sources as a condition 
940.31 	of receiving grant funds. For purposes of this grant program, a third-party reimbursement 
940.32 	source does not include a public school as defined in Minnesota Statutes, section 120A.20, 
940.33 	subdivision 1.
941.1 	(h) The base budget for this program is $0. This appropriation is available until June 30, 
941.2 	2020.

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

941.4 	Sec. 3. Laws 2017, First Special Session chapter 5, article 4, section 11, is amended to 
941.5 	read:
941.6 	Sec. 11. SPECIAL EDUCATION ADJUSTMENT; MONTICELLO SCHOOL 
941.7 	DISTRICT.
 941.8 	(a) Notwithstanding Minnesota Statutes, sections 125A.76 and 127A.45, special education 
941.9 	aid payments to Independent School District No. 882, Monticello, must be increased by 
941.10 	$800,000 in fiscal year 2018 to mitigate cash flow problems created by an unforeseeable 
941.11 	reduction in the district's special education aid for fiscal year 2016 as a result of the combined 
941.12 	effects of converting from a host district cooperative to a joint powers cooperative and 
941.13 	implementation of a new special education aid formula in the same fiscal year.
941.14 	(b) Special education aid payments to Independent School District No. 882, Monticello, 
941.15 	must not be reduced by the same amount in fiscal year 2019 to offset the fiscal year 2018 
941.16 	increase.

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

941.18 	Sec. 4. Laws 2017, First Special Session chapter 5, article 4, section 12, subdivision 2, as 
941.19 	amended by Laws 2017, First Special Session chapter 7, section 12, is amended to read:
941.20 		Subd. 2.Special education; regular. For special education aid under Minnesota Statutes, 
941.21 	section 125A.75:

941.23941.22
		$
	1,341,161,000
1,366,903,000
	.....
	2018
	
941.25941.24
		$
	1,426,827,000
1,468,721,000
	.....
	2019
	
941.26 	The 2018 appropriation includes $156,403,000 for 2017 and $1,184,758,000
941.27 	$1,210,500,000 for 2018.
941.28 	The 2019 appropriation includes $166,667,000 $170,291,000 for 2018 and 
941.29 	$1,260,160,000 $1,298,430,000 for 2019.

942.1 	Sec. 5. SPECIAL EDUCATION LEGISLATIVE WORKING GROUP.
 942.2 		Subdivision 1.Duties. A legislative working group on special education is created to 
942.3 	review special education delivery and costs in Minnesota and submit a written report to the 
942.4 	legislature. The working group must:
942.5 	(1) review how school districts, charter schools, intermediate school districts, special 
942.6 	education cooperatives, education districts, service cooperatives, and nonpublic schools 
942.7 	deliver special education services, and the costs and benefits associated with each model;
942.8 	(2) compare relevant state and federal special education laws and regulations by reviewing 
942.9 	the 2013 evaluation report by the Office of the Legislative Auditor on special education 
942.10 	and other publicly available reports;
942.11 	(3) analyze trends in special education enrollment and the reasons for the increased 
942.12 	proportion of Minnesota students receiving special education, including identifying disparities 
942.13 	in student identification;
942.14 	(4) identify strategies or programs that would be effective in reducing the need for special 
942.15 	education services or could provide less-intensive special education services, when 
942.16 	appropriate;
942.17 	(5) analyze funding for children receiving special education services in a nonresident 
942.18 	district or charter school in accordance with Minnesota Statutes, sections 124E.21, 125A.11, 
942.19 	and 127A.47;
942.20 	(6) analyze the effect of the 2013 statutory changes to the state special education funding 
942.21 	formula, including interactions and conformity with federal funding formulas;
942.22 	(7) describe how school districts and charter schools use section 504 plans, including 
942.23 	criteria used to determine when a section 504 plan is appropriate and the prevalence of 
942.24 	section 504 plans in school districts and charter schools; and
942.25 	(8) review the 2013 evaluation report by the Office of the Legislative Auditor on special 
942.26 	education and whether any recommendations have been enacted or implemented.
942.27 		Subd. 2.Membership. (a) The legislative working group on special education consists 
942.28 	of:
942.29 	(1) six duly elected and currently serving members of the house of representatives, three 
942.30 	appointed by the speaker of the house and three appointed by the house minority leader, 
942.31 	two of whom must be the current chairs of the house of representatives Education Innovation 
942.32 	Policy Committee and Education Finance Committee; and
943.1 	(2) six duly elected and currently serving senators, three appointed by the senate majority 
943.2 	leader and three appointed by the senate minority leader, two of whom must be the current 
943.3 	chairs of the senate Education Policy Committee and Education Finance Committee.
943.4 	(b) Only duly elected and currently serving members of the house of representatives or 
943.5 	senate may be members of the special education legislative working group. A chair of an 
943.6 	education committee appointed under paragraph (a) may designate another member of the 
943.7 	chair's chamber to attend a meeting of the legislative working group in place of the chair.
943.8 		Subd. 3.Organization; process; administrative and technical support. The special 
943.9 	education legislative working group appointments must be made by July 1, 2018. If a vacancy 
943.10 	occurs, the leader of the caucus in the house of representatives or senate to which the vacating 
943.11 	working group member belonged must fill the vacancy. The chair of the house of 
943.12 	representatives Education Innovation Policy Committee shall serve as a cochair of the 
943.13 	working group. The chair of the senate Education Policy Committee shall serve as a cochair 
943.14 	of the working group and shall convene the first meeting. The working group must meet 
943.15 	periodically. Meetings of the working group must be open to the public. The Legislative 
943.16 	Coordinating Commission must provide administrative assistance upon request. The 
943.17 	Department of Education must provide technical assistance upon request.
943.18 		Subd. 4.Consultation with stakeholders. In developing its recommendations, the 
943.19 	special education legislative working group must consult with interested and affected 
943.20 	stakeholders.
943.21 		Subd. 5.Report. The special education legislative working group must submit a report 
943.22 	providing its findings and policy recommendations to the legislature by January 15, 2019.
943.23 		Subd. 6.Expiration. The special education legislative working group expires January 
943.24 	16, 2019, unless extended by law.

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

943.26 	ARTICLE 51
943.27 	FACILITIES, TECHNOLOGY, LIBRARIES, AND NUTRITION

943.28 	Section 1. Minnesota Statutes 2017 Supplement, section 121A.335, subdivision 3, is 
943.29 	amended to read:
943.30 		Subd. 3.Frequency of testing. (a) The plan under subdivision 2 must include a testing 
943.31 	schedule for every building serving prekindergarten through grade 12 students. The schedule 
943.32 	must require that each building be tested at least once every five years. A school district 
944.1 	must begin testing school buildings by July 1, 2018, and complete testing of all buildings 
944.2 	that serve students within five years.
944.3 	(b) The commissioner of education must, in consultation with the commissioner of 
944.4 	health, determine the maximum contaminant level for lead in school drinking water. The 
944.5 	maximum contaminant level must be compatible with the United States Environmental 
944.6 	Protection Agency's lead and copper rule. A school district that finds the presence of lead 
944.7 	exceeds the maximum contaminant level in any water source that can provide water for 
944.8 	consumption must either remediate that water source and immediately shut off the water 
944.9 	source until the source is remediated, or make the water source unavailable.

944.10 	Sec. 2. Minnesota Statutes 2017 Supplement, section 121A.335, subdivision 5, is amended 
944.11 	to read:
944.12 		Subd. 5.Reporting. A school district that has tested its buildings for the presence of 
944.13 	lead shall make the results of the testing available to the public for review and must notify 
944.14 	parents of the availability of the information. If a test conducted under subdivision 3, 
944.15 	paragraph (a), reveals that the presence of lead exceeds the maximum contaminant level, 
944.16 	the school district must immediately directly notify parents of the test result and any steps 
944.17 	taken to remediate the water source or make the water source unavailable.

944.18 	Sec. 3. Minnesota Statutes 2016, section 123B.52, subdivision 6, is amended to read:
944.19 		Subd. 6.Disposing of surplus school computers. (a) Notwithstanding section 471.345, 
944.20 	governing school district contracts made upon sealed bid or otherwise complying with the 
944.21 	requirements for competitive bidding, other provisions of this section governing school 
944.22 	district contracts, or other law to the contrary, a school district under this subdivision may 
944.23 	dispose of school computers, including a tablet device.
944.24 	(b) A school district may dispose of a surplus school computer and related equipment 
944.25 	if the district disposes of the surplus property by conveying the property and title to:
944.26 	(1) another school district;
944.27 	(2) the state Department of Corrections;
944.28 	(3) the Board of Trustees of the Minnesota State Colleges and Universities; or
944.29 	(4) the family of a student residing in the district whose total family income meets the 
944.30 	federal definition of poverty.
945.1 	(c) If surplus school computers are not disposed of under paragraph (b), upon adoption 
945.2 	of a written resolution of the school board, when updating or replacing school computers, 
945.3 	including tablet devices, used primarily by students, a school district may sell or give used 
945.4 	computers or tablets to qualifying students at the price specified in the written resolution. 
945.5 	A student is eligible to apply to the school board for a computer or tablet under this 
945.6 	subdivision if the student is currently enrolled in the school and intends to enroll in the 
945.7 	school in the year following the receipt of the computer or tablet. If more students apply 
945.8 	for computers or tablets than are available, the school must first qualify students whose 
945.9 	families are eligible for free or reduced-price meals, and then dispose of the remaining 
945.10 	computers or tablets by lottery.

945.11 	EFFECTIVE DATE. This section is effective July 1, 2018.

945.12 	Sec. 4. Minnesota Statutes 2017 Supplement, section 123B.52, subdivision 7, is amended 
945.13 	to read:
945.14 		Subd. 7.Food service contracts. A contract between a school board and a food service 
945.15 	management company that complies with Code of Federal Regulations, title 7, section 
945.16 	210.16, 225.15, paragraph (m), or 226.21 may be renewed annually after its initial term for 
945.17 	not more than four additional years.

945.18 	Sec. 5. Minnesota Statutes 2016, section 123B.595, is amended by adding a subdivision 
945.19 	to read:
945.20 		Subd. 13.Allocation from districts participating in agreements for secondary 
945.21 	education or interdistrict cooperation. For purposes of this section, a district with revenue 
945.22 	authority under subdivision 1 for indoor air quality, fire alarm and suppression, and asbestos 
945.23 	abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 
945.24 	or more per site and that participates in an agreement under section 123A.30 or 123A.32 
945.25 	may allocate the revenue authority among participating districts.

945.26 	Sec. 6. Minnesota Statutes 2016, section 124D.111, is amended to read:
945.27 	124D.111 SCHOOL MEALS POLICIES; LUNCH AID; FOOD SERVICE 
945.28 	ACCOUNTING.
945.29 		Subdivision 1.School lunch aid computation meals policies. (a) Each Minnesota 
945.30 	participant in the national school lunch program must adopt and post to its Web site, or the 
945.31 	Web site of the organization where the meal is served, a school meals policy.
946.1 	(b) The policy must be in writing and clearly communicate student meal charges when 
946.2 	payment cannot be collected at the point of service. The policy must be reasonable and 
946.3 	well-defined and maintain the dignity of students by prohibiting lunch shaming or otherwise 
946.4 	ostracizing the student.
946.5 	(c) The policy must address whether the participant uses a collections agency to collect 
946.6 	unpaid school meals debt.
946.7 	(d) The policy must ensure that once a participant has placed a meal on a tray or otherwise 
946.8 	served the meal to a student, the meal may not be subsequently withdrawn from the student 
946.9 	by the cashier or other school official, whether or not the student has an outstanding meals 
946.10 	balance.
946.11 	(e) The policy must ensure that a student who has been determined eligible for free and 
946.12 	reduced-price lunch must always be served a reimbursable meal even if the student has an 
946.13 	outstanding debt.
946.14 	(f) If a school contracts with a third party for its meal services, it must provide the vendor 
946.15 	with its school meals policy. Any contract between the school and a third-party provider 
946.16 	entered into or modified after July 1, 2018, must ensure that the third-party provider adheres 
946.17 	to the participant's school meals policy.
946.18 		Subd. 1a.School lunch aid amounts. Each school year, the state must pay participants 
946.19 	in the national school lunch program the amount of 12.5 cents for each full paid and free 
946.20 	student lunch and 52.5 cents for each reduced-price lunch served to students.
946.21 		Subd. 2.Application. A school district, charter school, nonpublic school, or other 
946.22 	participant in the national school lunch program shall apply to the department for this 
946.23 	payment on forms provided by the department.
946.24 		Subd. 2a.Federal child and adult care food program; criteria and notice. The 
946.25 	commissioner must post on the department's Web site eligibility criteria and application 
946.26 	information for nonprofit organizations interested in applying to the commissioner for 
946.27 	approval as a multisite sponsoring organization under the federal child and adult care food 
946.28 	program. The posted criteria and information must inform interested nonprofit organizations 
946.29 	about:
946.30 	(1) the criteria the commissioner uses to approve or disapprove an application, including 
946.31 	how an applicant demonstrates financial viability for the Minnesota program, among other 
946.32 	criteria;
947.1 	(2) the commissioner's process and time line for notifying an applicant when its 
947.2 	application is approved or disapproved and, if the application is disapproved, the explanation 
947.3 	the commissioner provides to the applicant; and
947.4 	(3) any appeal or other recourse available to a disapproved applicant.
947.5 		Subd. 3.School food service fund. (a) The expenses described in this subdivision must 
947.6 	be recorded as provided in this subdivision.
947.7 	(b) In each district, the expenses for a school food service program for pupils must be 
947.8 	attributed to a school food service fund. Under a food service program, the school food 
947.9 	service may prepare or serve milk, meals, or snacks in connection with school or community 
947.10 	service activities.
947.11 	(c) Revenues and expenditures for food service activities must be recorded in the food 
947.12 	service fund. The costs of processing applications, accounting for meals, preparing and 
947.13 	serving food, providing kitchen custodial services, and other expenses involving the preparing 
947.14 	of meals or the kitchen section of the lunchroom may be charged to the food service fund 
947.15 	or to the general fund of the district. The costs of lunchroom supervision, lunchroom custodial 
947.16 	services, lunchroom utilities, and other administrative costs of the food service program 
947.17 	must be charged to the general fund.
947.18 	That portion of superintendent and fiscal manager costs that can be documented as 
947.19 	attributable to the food service program may be charged to the food service fund provided 
947.20 	that the school district does not employ or contract with a food service director or other 
947.21 	individual who manages the food service program, or food service management company. 
947.22 	If the cost of the superintendent or fiscal manager is charged to the food service fund, the 
947.23 	charge must be at a wage rate not to exceed the statewide average for food service directors 
947.24 	as determined by the department.
947.25 	(d) Capital expenditures for the purchase of food service equipment must be made from 
947.26 	the general fund and not the food service fund, unless the restricted balance in the food 
947.27 	service fund at the end of the last fiscal year is greater than the cost of the equipment to be 
947.28 	purchased.
947.29 	(e) If the condition set out in paragraph (d) applies, the equipment may be purchased 
947.30 	from the food service fund.
947.31 	(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit 
947.32 	is not eliminated by revenues from food service operations in the next fiscal year, then the 
947.33 	deficit must be eliminated by a permanent fund transfer from the general fund at the end of 
948.1 	that second fiscal year. However, if a district contracts with a food service management 
948.2 	company during the period in which the deficit has accrued, the deficit must be eliminated 
948.3 	by a payment from the food service management company.
948.4 	(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service fund 
948.5 	for up to three years without making the permanent transfer if the district submits to the 
948.6 	commissioner by January 1 of the second fiscal year a plan for eliminating that deficit at 
948.7 	the end of the third fiscal year.
948.8 	(h) If a surplus in the food service fund exists at the end of a fiscal year for three 
948.9 	successive years, a district may recode for that fiscal year the costs of lunchroom supervision, 
948.10 	lunchroom custodial services, lunchroom utilities, and other administrative costs of the food 
948.11 	service program charged to the general fund according to paragraph (c) and charge those 
948.12 	costs to the food service fund in a total amount not to exceed the amount of surplus in the 
948.13 	food service fund.
948.14 		Subd. 4.No fees. A participant that receives school lunch aid under this section must 
948.15 	make lunch available without charge and must not deny a school lunch to all participating 
948.16 	students who qualify for free or reduced-price meals, whether or not that student has an 
948.17 	outstanding balance in the student's meals account attributable to a la carte purchases or for 
948.18 	any other reason.
948.19 		Subd. 5.Respectful treatment. (a) The participant must also provide meals to students 
948.20 	in a respectful manner according to the policy adopted under subdivision 1. The participant 
948.21 	must ensure that any reminders for payment of outstanding student meal balances do not 
948.22 	demean or stigmatize any child participating in the school lunch program., including but 
948.23 	not limited to dumping meals, withdrawing a meal that has been served, announcing or 
948.24 	listing students names publicly, or affixing stickers, stamps, or pins. The participant must 
948.25 	not impose any other restriction prohibited under section 123B.37 due to unpaid student 
948.26 	meal balances. The participant must not limit a student's participation in any school activities, 
948.27 	graduation ceremonies, field trips, athletics, activity clubs, or other extracurricular activities 
948.28 	or access to materials, technology, or other items provided to students due to an unpaid 
948.29 	student meal balance.
948.30 	(b) If the commissioner or the commissioner's designee determines a participant has 
948.31 	violated the requirement to provide meals to participating students in a respectful manner, 
948.32 	the commissioner or the commissioner's designee must send a letter of noncompliance to 
948.33 	the participant. The participant is required to respond and, if applicable, remedy the practice 
948.34 	within 60 days.

949.1 	EFFECTIVE DATE. This section is effective July 1, 2018.

949.2 	Sec. 7. Minnesota Statutes 2016, section 125B.26, subdivision 4, is amended to read:
949.3 		Subd. 4.District aid. For fiscal year 2006 and later, A district, charter school, or 
949.4 	intermediate school district's Internet access equity aid equals the district, charter school, 
949.5 	or intermediate school district's approved cost for the previous fiscal year according to 
949.6 	subdivision 1 exceeding $16 times the district's adjusted pupil units for the previous fiscal 
949.7 	year or no reduction if the district is part of an organized telecommunications access cluster. 
949.8 	Equity aid must be distributed to the telecommunications access cluster for districts, charter 
949.9 	schools, or intermediate school districts that are members of the cluster or to individual 
949.10 	districts, charter schools, or intermediate school districts not part of a telecommunications 
949.11 	access cluster.

949.12 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2019 and later.

949.13 	Sec. 8. Minnesota Statutes 2016, section 134.355, subdivision 10, is amended to read:
949.14 		Subd. 10.Award of funds. (a) The commissioner of education shall must develop an 
949.15 	application and a reporting form and procedures for regional library telecommunications 
949.16 	aid. Aid shall be based on actual costs including, but not limited to, connections, as 
949.17 	documented in e-rate funding commitment decision letters for category one services and 
949.18 	acceptable documentation for category two services and funds available for this purpose. 
949.19 	The commissioner shall must make payments directly to the regional public library system.
949.20 	(b) On March 15 of 2019, 2020, and 2021, the commissioner of education must reallocate 
949.21 	any unspent amounts appropriated for paragraph (a) to regional library systems for broadband 
949.22 	innovation programs, including equipment purchases, hot spot access devices, and other 
949.23 	programs designed to increase Internet access.
949.24 	(c) By January 15 of 2020, 2021, and 2022, the commissioner of education must report 
949.25 	to the legislative committees with jurisdiction over education on the previous fiscal year's 
949.26 	spending under this subdivision and make any recommendations for necessary program 
949.27 	changes.

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

949.29 	Sec. 9. Minnesota Statutes 2016, section 205A.07, subdivision 2, is amended to read:
949.30 		Subd. 2.Sample ballot, posting. (a) For every school district primary, general, or special 
949.31 	election, the school district clerk shall must at least four days before the primary, general, 
950.1 	or special election, post a sample ballot in the administrative offices of the school district 
950.2 	for public inspection, and shall must post a sample ballot in each polling place on election 
950.3 	day.
950.4 	(b) For a school district general or special election to issue bonds to finance a capital 
950.5 	project requiring review and comment under section 123B.71, the summary of the 
950.6 	commissioner's review and comment and supplemental information required under section 
950.7 	123B.71, subdivision 12, paragraph (a), must be posted in the same manner as the sample 
950.8 	ballot under paragraph (a).

950.9 	EFFECTIVE DATE. This section is effective for elections held on or after August 1, 
950.10 	2018.

950.11 	Sec. 10. Minnesota Statutes 2016, section 299F.30, subdivision 1, is amended to read:
950.12 		Subdivision 1.Duties of fire marshal. Consistent with sections 121A.035, 121A.037, 
950.13 	and this section, it shall be is the duty of the state fire marshal, deputies and assistants, to 
950.14 	require public and private schools and educational institutions to have at least five fire drills 
950.15 	each school year, including at least three drills as provided under subdivision 2, paragraph 
950.16 	(a), and to keep all doors and exits unlocked from the inside of the building during school 
950.17 	hours.

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

950.19 	Sec. 11. Minnesota Statutes 2016, section 299F.30, subdivision 2, is amended to read:
950.20 		Subd. 2.Fire drill. (a) Each superintendent, principal, or other person in charge of a 
950.21 	public or private school, educational institution, children's home or orphanage housing 20 
950.22 	or more students or other persons, shall must instruct and train such students or other persons 
950.23 	to quickly and expeditiously quit the premises in case of fire or other emergency by means 
950.24 	of drills or rapid dismissals while such school, institution, home, or orphanage is in operation.
950.25 	(b) In addition to the drills required under paragraph (a), a public or private school or 
950.26 	educational institution may implement an alternative fire drill that does not require students 
950.27 	or other persons to quit the premises. A school or educational institution choosing to develop 
950.28 	and implement nonevacuating fire drill protocols must work in partnership with the local 
950.29 	fire chief or the fire chief's designee and chief law enforcement officers or their designee.
950.30 	(c) Records of such fire drills shall must be posted so that such records are available for 
950.31 	review by the state fire marshal at all times and shall must include the type of drill conducted, 
951.1 	nonevacuation or evacuation, and drill date and the time required to evacuate the building, 
951.2 	if the drill required an evacuation.

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

951.4 	Sec. 12. Minnesota Statutes 2016, section 475.58, subdivision 4, is amended to read:
951.5 		Subd. 4.Proper use of bond proceeds. The proceeds of obligations issued after approval 
951.6 	of the electors under this section may must only be spent: (1) for the purposes stated in the 
951.7 	ballot language; or (2) to pay, redeem, or defease obligations and interest, penalties, 
951.8 	premiums, and costs of issuance of the obligations. The proceeds may must not be spent 
951.9 	for a different purpose or for an expansion of the original purpose without the approval by 
951.10 	a majority of the electors voting on the question of changing or expanding the purpose of 
951.11 	the obligations.

951.12 	Sec. 13. Minnesota Statutes 2017 Supplement, section 475.59, subdivision 1, is amended 
951.13 	to read:
951.14 		Subdivision 1.Generally; notice. (a) When the governing body of a municipality resolves 
951.15 	to issue bonds for any purpose requiring the approval of the electors, it shall provide for 
951.16 	submission of the proposition of their issuance at a general or special election or town or 
951.17 	school district meeting. Notice of such election or meeting shall be given in the manner 
951.18 	required by law and shall state the maximum amount and the purpose of the proposed issue.
951.19 	(b) In any school district, the school board or board of education may, according to its 
951.20 	judgment and discretion, submit as a single ballot question or as two or more separate 
951.21 	questions in the notice of election and ballots the proposition of their issuance for any one 
951.22 	or more of the following, stated conjunctively or in the alternative: acquisition or enlargement 
951.23 	of sites, acquisition, betterment, erection, furnishing, equipping of one or more new 
951.24 	schoolhouses, remodeling, repairing, improving, adding to, betterment, furnishing, equipping 
951.25 	of one or more existing schoolhouses. The ballot question or questions submitted by a school 
951.26 	board must state the name of the plan or plans being proposed by the district as submitted 
951.27 	to the commissioner of education for review and comment under section 123B.71.
951.28 	(c) In any city, town, or county, the governing body may, according to its judgment and 
951.29 	discretion, submit as a single ballot question or as two or more separate questions in the 
951.30 	notice of election and ballots the proposition of their issuance, stated conjunctively or in 
951.31 	the alternative, for the acquisition, construction, or improvement of any facilities at one or 
951.32 	more locations.

952.1 	EFFECTIVE DATE. This section is effective for elections held on or after August 1, 
952.2 	2018.

952.3 	Sec. 14. Laws 2017, First Special Session chapter 5, article 5, section 14, subdivision 4, 
952.4 	is amended to read:
952.5 		Subd. 4.Equity in telecommunications access aid. (a) For equity in telecommunications 
952.6 	access aid under Minnesota Statutes, section 125B.26:

952.7		$
	3,750,000
	.....
	2018
	
952.9952.8
		$
	3,750,000
3,950,000
	.....
	2019
	
952.10 	(b) If the appropriation amount is insufficient, the commissioner shall reduce the 
952.11 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
952.12 	revenue for fiscal years 2018 and 2019 shall be prorated.
952.13 	(c) Any balance in the first year does not cancel but is available in the second year.
952.14 	(d) The base for fiscal year 2020 is $3,750,000.

952.15 	Sec. 15. Laws 2017, First Special Session chapter 5, article 7, section 2, subdivision 5, is 
952.16 	amended to read:
952.17 		Subd. 5.Regional library telecommunications aid. (a) For regional library 
952.18 	telecommunications aid under Minnesota Statutes, section 134.355:

952.19		$
	2,300,000
	.....
	2018
	
952.20		$
	2,300,000
	.....
	2019
	
952.21 	(b) The 2018 appropriation includes $230,000 for 2017 and $2,070,000 for 2018.
952.22 	(c) The 2019 appropriation includes $230,000 for 2018 and $2,070,000 for 2019.
952.23 	(d) Any balance in the first year does not cancel but is available in the second year.

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

952.25 	Sec. 16. APPROPRIATIONS.
 952.26 		Subdivision 1.Department of Education. The sum indicated in this section is 
952.27 	appropriated from the general fund to the Department of Education for the fiscal year 
952.28 	designated.
952.29 		Subd. 2.Fiscal year 2019 additional telecommunications equity access aid. (a) For 
952.30 	additional telecommunications equity access aid under Minnesota Statutes, section 125B.26:

953.1		$
	362,000
	.....
	2019
	
953.2 	(b) For fiscal year 2019 only, a school district or charter school is eligible for additional 
953.3 	telecommunications equity access aid equal to the greater of zero or:
953.4 	(1) the district's approved costs under Minnesota Statutes, section 125B.26, subdivision 
953.5 	1; minus
953.6 	(2) the district's aid under Minnesota Statutes, section 125B.26, subdivision 4; minus
953.7 	(3) $7 times the adjusted pupil units.
953.8 	(c) This is a onetime appropriation. If the appropriation amount is insufficient, the 
953.9 	commissioner must prorate the additional aid.

953.10 	ARTICLE 52
953.11 	EARLY EDUCATION, SELF-SUFFICIENCY, AND LIFELONG LEARNING

953.12 	Section 1. Minnesota Statutes 2016, section 124D.151, subdivision 2, is amended to read:
953.13 		Subd. 2.Program requirements. (a) A voluntary prekindergarten program provider 
953.14 	must:
953.15 	(1) provide instruction through play-based learning to foster children's social and 
953.16 	emotional development, cognitive development, physical and motor development, and 
953.17 	language and literacy skills, including the native language and literacy skills of English 
953.18 	learners, to the extent practicable;
953.19 	(2) measure each child's cognitive and social skills using a formative measure aligned 
953.20 	to the state's early learning standards when the child enters and again before the child leaves 
953.21 	the program, screening and progress monitoring measures, and others other age-appropriate 
953.22 	versions from the state-approved menu of kindergarten entry profile measures;
953.23 	(3) provide comprehensive program content including the implementation of curriculum, 
953.24 	assessment, and instructional strategies aligned with the state early learning standards, and 
953.25 	kindergarten through grade 3 academic standards;
953.26 	(4) provide instructional content and activities that are of sufficient length and intensity 
953.27 	to address learning needs including offering a program with at least 350 hours of instruction 
953.28 	per school year for a prekindergarten student;
953.29 	(5) provide voluntary prekindergarten instructional staff salaries comparable to the 
953.30 	salaries of local kindergarten through grade 12 instructional staff;
954.1 	(6) coordinate appropriate kindergarten transition with families, community-based 
954.2 	prekindergarten programs, and school district kindergarten programs;
954.3 	(7) involve parents in program planning and transition planning by implementing parent 
954.4 	engagement strategies that include culturally and linguistically responsive activities in 
954.5 	prekindergarten through third grade that are aligned with early childhood family education 
954.6 	under section 124D.13;
954.7 	(8) coordinate with relevant community-based services, including health and social 
954.8 	service agencies, to ensure children have access to comprehensive services;
954.9 	(9) coordinate with all relevant school district programs and services including early 
954.10 	childhood special education, homeless students, and English learners;
954.11 	(10) ensure staff-to-child ratios of one-to-ten and a maximum group size of 20 children;
954.12 	(11) provide high-quality coordinated professional development, training, and coaching 
954.13 	for both school district and community-based early learning providers that is informed by 
954.14 	a measure of adult-child interactions and enables teachers to be highly knowledgeable in 
954.15 	early childhood curriculum content, assessment, native and English language development 
954.16 	programs, and instruction; and
954.17 	(12) implement strategies that support the alignment of professional development, 
954.18 	instruction, assessments, and prekindergarten through grade 3 curricula.
954.19 	(b) A voluntary prekindergarten program must have teachers knowledgeable in early 
954.20 	childhood curriculum content, assessment, native and English language programs, and 
954.21 	instruction.
954.22 	(c) Districts and charter schools must include their strategy for implementing and 
954.23 	measuring the impact of their voluntary prekindergarten program under section 120B.11 
954.24 	and provide results in their world's best workforce annual summary to the commissioner of 
954.25 	education.

954.26 	Sec. 2. Minnesota Statutes 2017 Supplement, section 124D.151, subdivision 5, is amended 
954.27 	to read:
954.28 		Subd. 5.Application process; priority for high poverty schools. (a) To qualify for 
954.29 	program approval for fiscal year 2017, a district or charter school must submit an application 
954.30 	to the commissioner by July 1, 2016. To qualify for program approval for fiscal year 2018 
954.31 	and later, a district or charter school must submit an application to the commissioner by 
955.1 	January 30 of the fiscal year prior to the fiscal year in which the program will be 
955.2 	implemented. The application must include:
955.3 	(1) a description of the proposed program, including the number of hours per week the 
955.4 	program will be offered at each school site or mixed-delivery location;
955.5 	(2) an estimate of the number of eligible children to be served in the program at each 
955.6 	school site or mixed-delivery location; and
955.7 	(3) a statement of assurances signed by the superintendent or charter school director that 
955.8 	the proposed program meets the requirements of subdivision 2.
955.9 	(b) The commissioner must review all applications submitted for fiscal year 2017 by 
955.10 	August 1, 2016, and must review all applications submitted for fiscal year 2018 and later
955.11 	by March 1 of the fiscal year in which the applications are received and determine whether 
955.12 	each application meets the requirements of paragraph (a).
955.13 	(c) The commissioner must divide all applications for new or expanded voluntary 
955.14 	prekindergarten programs under this section meeting the requirements of paragraph (a) and 
955.15 	school readiness plus programs into four five groups as follows: the Minneapolis and school 
955.16 	district; the St. Paul school districts district; other school districts located in the metropolitan 
955.17 	equity region as defined in section 126C.10, subdivision 28; school districts located in the 
955.18 	rural equity region as defined in section 126C.10, subdivision 28; and charter schools. 
955.19 	Within each group, the applications must be ordered by rank using a sliding scale based on 
955.20 	the following criteria:
955.21 	(1) concentration of kindergarten students eligible for free or reduced-price lunches by 
955.22 	school site on October 1 of the previous school year. A school site may contract to partner 
955.23 	with a community-based provider or Head Start under subdivision 3 or establish an early 
955.24 	childhood center and use the concentration of kindergarten students eligible for free or 
955.25 	reduced-price meals from a specific school site as long as those eligible children are 
955.26 	prioritized and guaranteed services at the mixed-delivery site or early education center. For 
955.27 	school district programs to be operated at locations that do not have free and reduced-price 
955.28 	lunch concentration data for kindergarten programs for October 1 of the previous school 
955.29 	year, including mixed-delivery programs, the school district average concentration of 
955.30 	kindergarten students eligible for free or reduced-price lunches must be used for the rank 
955.31 	ordering;
955.32 	(2) presence or absence of a three- or four-star Parent Aware rated program within the 
955.33 	school district or close proximity of the district. School sites with the highest concentration 
955.34 	of kindergarten students eligible for free or reduced-price lunches that do not have a three- 
956.1 	or four-star Parent Aware program within the district or close proximity of the district shall 
956.2 	receive the highest priority, and school sites with the lowest concentration of kindergarten 
956.3 	students eligible for free or reduced-price lunches that have a three- or four-star Parent 
956.4 	Aware rated program within the district or close proximity of the district shall receive the 
956.5 	lowest priority; and
956.6 	(3) whether the district has implemented a mixed delivery system.
956.7 	(d) The limit on participation for the programs as specified in subdivision 6 must initially 
956.8 	be allocated among the four five groups based on each group's percentage share of the 
956.9 	statewide kindergarten enrollment on October 1 of the previous school year. Within each 
956.10 	group, the participation limit for fiscal years 2018 and 2019 must first be allocated to school 
956.11 	sites approved for aid in the previous year to ensure that those sites are funded for the same 
956.12 	number of participants as approved for the previous year. The remainder of the participation 
956.13 	limit for each group must be allocated among school sites in priority order until that region's 
956.14 	share of the participation limit is reached. If the participation limit is not reached for all 
956.15 	groups, the remaining amount must be allocated to the highest priority school sites, as 
956.16 	designated under this section, not funded in the initial allocation on a statewide basis. For 
956.17 	fiscal year 2020 and later, the participation limit must first be allocated to school sites 
956.18 	approved for aid in fiscal year 2017, and then to school sites approved for aid in fiscal year 
956.19 	2018 based on the statewide rankings under paragraph (c).
956.20 	(e) Once a school site or a mixed delivery site under subdivision 3 is approved for aid 
956.21 	under this subdivision, it shall remain eligible for aid if it continues to meet program 
956.22 	requirements, regardless of changes in the concentration of students eligible for free or 
956.23 	reduced-price lunches.
956.24 	(f) If the total number of participants approved based on applications submitted under 
956.25 	paragraph (a) is less than the participation limit under subdivision 6, the commissioner must 
956.26 	notify all school districts and charter schools of the amount that remains available within 
956.27 	30 days of the initial application deadline under paragraph (a), and complete a second round 
956.28 	of allocations based on applications received within 60 days of the initial application deadline.
956.29 	(g) Procedures for approving applications submitted under paragraph (f) shall be the 
956.30 	same as specified in paragraphs (a) to (d), except that the allocations shall be made to the 
956.31 	highest priority school sites not funded in the initial allocation on a statewide basis.

957.1 	Sec. 3. Minnesota Statutes 2017 Supplement, section 124D.151, subdivision 6, is amended 
957.2 	to read:
957.3 		Subd. 6.Participation limits. (a) Notwithstanding section 126C.05, subdivision 1, 
957.4 	paragraph (d), the pupil units for a voluntary prekindergarten program for an eligible school 
957.5 	district or charter school must not exceed 60 percent of the kindergarten pupil units for that 
957.6 	school district or charter school under section 126C.05, subdivision 1, paragraph (e).
957.7 	(b) In reviewing applications under subdivision 5, the commissioner must limit the 
957.8 	estimated state aid entitlement approved under this section to $27,092,000 for fiscal year 
957.9 	2017. If the actual state aid entitlement based on final data exceeds the limit in any year, 
957.10 	the aid of the participating districts must be prorated so as not to exceed the limit.
957.11 	(c) (b) The commissioner must limit the total number of funded participants in the 
957.12 	voluntary prekindergarten program under this section to not more than 3,160.
957.13 	(d) (c) Notwithstanding paragraph (c) (b), the commissioner must limit the total number 
957.14 	of participants in the voluntary prekindergarten and school readiness plus programs to not 
957.15 	more than 6,160 participants for fiscal year 2018 and 7,160 participants for fiscal year 2019.

957.16 	Sec. 4. Minnesota Statutes 2017 Supplement, section 124D.165, subdivision 2, is amended 
957.17 	to read:
957.18 		Subd. 2.Family eligibility. (a) For a family to receive an early learning scholarship, 
957.19 	parents or guardians must meet the following eligibility requirements:
957.20 	(1) have an eligible child; and
957.21 	(2) have income equal to or less than 185 percent of federal poverty level income in the 
957.22 	current calendar year, or be able to document their child's current participation in the free 
957.23 	and reduced-price lunch program or Child and Adult Care Food Program, National School 
957.24 	Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food Distribution 
957.25 	Program on Indian Reservations, Food and Nutrition Act, United States Code, title 7, sections 
957.26 	2011-2036; Head Start under the federal Improving Head Start for School Readiness Act 
957.27 	of 2007; Minnesota family investment program under chapter 256J; child care assistance 
957.28 	programs under chapter 119B; the supplemental nutrition assistance program; or placement 
957.29 	in foster care under section 260C.212. Parents or guardians are not required to provide 
957.30 	income verification under this clause if the child is an eligible child under paragraph (b), 
957.31 	clause (4) or (5).
957.32 	(b) An "eligible child" means a child who has not yet enrolled in kindergarten and is:
958.1 	(1) at least three but not yet five years of age on September 1 of the current school year;
958.2 	(2) a sibling from birth to age five of a child who has been awarded a scholarship under 
958.3 	this section provided the sibling attends the same program as long as funds are available;
958.4 	(3) the child of a parent under age 21 who is pursuing a high school degree or a course 
958.5 	of study for a high school equivalency test; or
958.6 	(4) homeless, in foster care, or in need of child protective services.
958.7 	(4) designated as a child in need of protection or services; or
958.8 	(5) designated as homeless under the federal McKinney-Vento Homeless Assistance 
958.9 	Act, United States Code, title 42, section 11434a.
958.10 	(c) A child who has received a scholarship under this section must continue to receive 
958.11 	a scholarship each year until that child is eligible for kindergarten under section 120A.20 
958.12 	and as long as funds are available.
958.13 	(d) Early learning scholarships may not be counted as earned income for the purposes 
958.14 	of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, Minnesota 
958.15 	family investment program under chapter 256J, child care assistance programs under chapter 
958.16 	119B, or Head Start under the federal Improving Head Start for School Readiness Act of 
958.17 	2007.
958.18 	(e) A child from an adjoining state whose family resides at a Minnesota address as 
958.19 	assigned by the United States Postal Service, who has received developmental screening 
958.20 	under sections 121A.16 to 121A.19, who intends to enroll in a Minnesota school district, 
958.21 	and whose family meets the criteria of paragraph (a) is eligible for an early learning 
958.22 	scholarship under this section.

958.23 	Sec. 5. Minnesota Statutes 2017 Supplement, section 124D.165, subdivision 3, is amended 
958.24 	to read:
958.25 		Subd. 3.Administration. (a) The commissioner shall establish application timelines 
958.26 	and determine the schedule for awarding scholarships that meets operational needs of eligible 
958.27 	families and programs. The commissioner must give highest priority to applications from 
958.28 	children who:
958.29 	(1) have a parent under age 21 who is pursuing a high school diploma or a course of 
958.30 	study for a high school equivalency test;
958.31 	(2) are in foster care or otherwise in need of protection or services; or
959.1 	(3) have experienced homelessness in the last 24 months, as defined under the federal 
959.2 	McKinney-Vento Homeless Assistance Act, United States Code, title 42, section 11434a.
959.3 	The commissioner may prioritize applications on additional factors including family 
959.4 	income, geographic location, and whether the child's family is on a waiting list for a publicly 
959.5 	funded program providing early education or child care services.
959.6 	(b) The commissioner shall establish a target for the average scholarship amount per 
959.7 	child based on the results of the rate survey conducted under section 119B.02.
959.8 	(c) A four-star rated program that has children eligible for a scholarship enrolled in or 
959.9 	on a waiting list for a program beginning in July, August, or September may notify the 
959.10 	commissioner, in the form and manner prescribed by the commissioner, each year of the 
959.11 	program's desire to enhance program services or to serve more children than current funding 
959.12 	provides. The commissioner may designate a predetermined number of scholarship slots 
959.13 	for that program and notify the program of that number. For fiscal year 2018 and later, the 
959.14 	statewide amount of funding directly designated by the commissioner must not exceed the 
959.15 	funding directly designated for fiscal year 2017. Beginning July 1, 2016, a school district 
959.16 	or Head Start program qualifying under this paragraph may use its established registration 
959.17 	process to enroll scholarship recipients and may verify a scholarship recipient's family 
959.18 	income in the same manner as for other program participants.
959.19 	(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has not 
959.20 	been accepted and subsequently enrolled in a rated program within ten months of the 
959.21 	awarding of the scholarship, the scholarship cancels and the recipient must reapply in order 
959.22 	to be eligible for another scholarship. A child may not be awarded more than one scholarship 
959.23 	in a 12-month period.
959.24 	(e) A child over the age of three who receives a scholarship who and has not completed 
959.25 	development screening under sections 121A.16 to 121A.19 must complete that screening 
959.26 	within 90 days of first attending an eligible program. A child who receives a scholarship 
959.27 	before the age of three must complete the developmental screening no later than 90 days 
959.28 	after the child's third birthday.
959.29 	(f) For fiscal year 2017 and later, a school district or Head Start program enrolling 
959.30 	scholarship recipients under paragraph (c) may apply to the commissioner, in the form and 
959.31 	manner prescribed by the commissioner, for direct payment of state aid. Upon receipt of 
959.32 	the application, the commissioner must pay each program directly for each approved 
959.33 	scholarship recipient enrolled under paragraph (c) according to the metered payment system 
959.34 	or another schedule established by the commissioner.

960.1 	Sec. 6. Minnesota Statutes 2017 Supplement, section 124D.165, subdivision 4, is amended 
960.2 	to read:
960.3 		Subd. 4.Early childhood program eligibility. (a) In order to be eligible to accept an 
960.4 	early learning scholarship, a program must:
960.5 	(1) participate in the quality rating and improvement system under section 124D.142; 
960.6 	and
960.7 	(2) beginning July 1, 2020, have a three- or four-star rating in the quality rating and 
960.8 	improvement system.
960.9 	(b) Any program accepting scholarships must use the revenue to supplement and not 
960.10 	supplant federal funding.
960.11 	(c) Notwithstanding paragraph (a), all Minnesota early learning foundation scholarship 
960.12 	program pilot sites are eligible to accept an early learning scholarship under this section.

960.13 	Sec. 7. Minnesota Statutes 2017 Supplement, section 124D.549, is amended to read:
960.14 	124D.549 COMMISSIONER-SELECTED HIGH SCHOOL EQUIVALENCY 
960.15 	TEST TESTS.
960.16 	The commissioner, in consultation with adult basic education stakeholders, must select 
960.17 	a at least one high school equivalency test. The commissioner may issue a high school 
960.18 	equivalency diploma to a Minnesota resident 19 years of age or older who has not earned 
960.19 	a high school diploma, who has not previously been issued a general education development 
960.20 	(GED) certification high school equivalency diploma, and who has exceeded or achieved 
960.21 	a minimum passing score on the an approved equivalency test established by the publisher. 
960.22 	The commissioner of education may waive the minimum age requirement if supportive 
960.23 	evidence is provided by an employer or a recognized education or rehabilitation provider.

960.24 	Sec. 8. Minnesota Statutes 2017 Supplement, section 124D.99, subdivision 3, is amended 
960.25 	to read:
960.26 		Subd. 3.Administration; design. (a) The commissioner shall establish program 
960.27 	requirements, an application process and timeline for each tier of grants specified in 
960.28 	subdivision 4, criteria for evaluation of applications, and a grant awards process. The 
960.29 	commissioner's process must minimize administrative costs, minimize burdens for applicants 
960.30 	and grant recipients, and provide a framework that permits flexibility in program design 
960.31 	and implementation among grant recipients.
961.1 	(b) To the extent practicable, the commissioner shall design the program to align with 
961.2 	programs implemented or proposed by organizations in Minnesota that:
961.3 	(1) identify and increase the capacity of organizations that are focused on achieving 
961.4 	data-driven, locally controlled positive outcomes for children and youth throughout an entire 
961.5 	neighborhood or geographic area through programs such as Strive Together, Promise 
961.6 	Neighborhood, and the Education Partnerships Coalition members;
961.7 	(2) build a continuum of educational family and community supports with academically 
961.8 	rigorous schools at the center;
961.9 	(3) maximize program efficiencies by integrating programmatic activities and eliminating 
961.10 	administrative barriers;
961.11 	(4) develop local infrastructure needed to sustain and scale up proven and effective 
961.12 	solutions beyond the initial neighborhood or geographic area; and
961.13 	(5) utilize appropriate outcome measures based on unique community needs and interests 
961.14 	and apply rigorous evaluation on a periodic basis to be used to both monitor outcomes and 
961.15 	allow for continuous improvements to systems.;
961.16 	(6) collect and utilize data to improve student outcomes;
961.17 	(7) share disaggregated performance data with the community to set community-level 
961.18 	outcomes;
961.19 	(8) employ continuous improvement processes;
961.20 	(9) have an anchor entity to manage the partnership;
961.21 	(10) convene a cross-sector leadership group and have a documented accountability 
961.22 	structure; and
961.23 	(11) demonstrate use of nonstate funds, from multiple sources, including in-kind 
961.24 	contributions.
961.25 	(c) A grant recipient's supportive services programming must address:
961.26 	(1) kindergarten readiness and youth development;
961.27 	(2) grade 3 reading proficiency;
961.28 	(3) middle school mathematics;
961.29 	(3) (4) high school graduation;
961.30 	(4) (5) postsecondary educational attainment enrollment;
962.1 	(6) postsecondary education completion;
962.2 	(5) (7) physical and mental health;
962.3 	(6) (8) development of career skills and readiness;
962.4 	(7) (9) parental engagement and development;
962.5 	(8) (10) community engagement and programmatic alignment; and
962.6 	(9) (11) reduction of remedial education.
962.7 	(d) The commissioner, in consultation with grant recipients, must:
962.8 	(1) develop and revise core indicators of progress toward outcomes specifying impacts 
962.9 	for each tier identified under subdivision 4;
962.10 	(2) establish a reporting system for grant recipients to measure program outcomes using 
962.11 	data sources and program goals; and
962.12 	(3) evaluate effectiveness based on the core indicators established by each partnership 
962.13 	for each tier.

962.14 	Sec. 9. Minnesota Statutes 2017 Supplement, section 124D.99, subdivision 5, is amended 
962.15 	to read:
962.16 		Subd. 5.Grants. (a) The commissioner shall award Tier 1 and Tier 2 grants to qualifying 
962.17 	recipients that can demonstrate a nonstate source of funds, including in-kind contributions.
962.18 	(b) For Tier 2 grants authorized for fiscal year 2020 and later, the commissioner must 
962.19 	give priority to otherwise qualified past grant recipients that have made progress toward 
962.20 	identified program outcomes under subdivision 3, paragraph (d).

962.21 	Sec. 10. Minnesota Statutes 2017 Supplement, section 136A.246, subdivision 4, is amended 
962.22 	to read:
962.23 		Subd. 4.Application. Applications must be made to the commissioner on a form provided 
962.24 	by the commissioner. The commissioner must, to the extent possible, make the application 
962.25 	form as short and simple to complete as is reasonably possible. The commissioner shall 
962.26 	establish a schedule for applications and grants. The application must include, without 
962.27 	limitation:
962.28 	(1) the projected number of employee trainees;
963.1 	(2) the number of projected employee trainees who graduated from high school or passed 
963.2 	the a commissioner of education-selected high school equivalency test in the current or 
963.3 	immediately preceding calendar year;
963.4 	(3) the competency standard for which training will be provided;
963.5 	(4) the credential the employee will receive upon completion of training;
963.6 	(5) the name and address of the training institution or program and a signed statement 
963.7 	by the institution or program that it is able and agrees to provide the training;
963.8 	(6) the period of the training; and
963.9 	(7) the cost of the training charged by the training institution or program and certified 
963.10 	by the institution or program. The cost of training includes tuition, fees, and required books 
963.11 	and materials.
963.12 	An application may be made for training of employees of multiple employers either by 
963.13 	the employers or by an organization on their behalf.

963.14 	Sec. 11. Minnesota Statutes 2017 Supplement, section 155A.30, subdivision 12, is amended 
963.15 	to read:
963.16 		Subd. 12.Minnesota state authorization. A cosmetology school licensed or applying 
963.17 	for licensure under this section shall maintain recognition as an institution of postsecondary 
963.18 	study by meeting the following conditions, in addition to the provisions of Minnesota Rules, 
963.19 	parts part2110.0310and 2110.0370:
963.20 	(1) the school must admit as regular students only those individuals who have a high 
963.21 	school diploma or a diploma based on passing a commissioner of education-selected high 
963.22 	school equivalency tests or their equivalent test, or who are beyond the age of compulsory 
963.23 	education as prescribed by section 120A.22; and
963.24 	(2) the school must be licensed by name and authorized by the Office of Higher Education 
963.25 	and the board to offer one or more training programs beyond the secondary level.

963.26 	Sec. 12. Minnesota Statutes 2016, section 245C.02, is amended by adding a subdivision 
963.27 	to read:
963.28 		Subd. 5a.National criminal history record check. (a) "National criminal history record 
963.29 	check" means a check of records maintained by the Federal Bureau of Investigation through 
963.30 	submission of fingerprints through the Minnesota Bureau of Criminal Apprehension to the 
963.31 	Federal Bureau of Investigation when specifically required by law.
964.1 	(b) For purposes of this chapter, "national crime information database," "national criminal 
964.2 	records repository," "criminal history with the Federal Bureau of Investigation," and "national 
964.3 	criminal record check" mean a national criminal history record check defined in paragraph 
964.4 	(a).

964.5 	Sec. 13. Minnesota Statutes 2016, section 245C.12, is amended to read:
964.6 	245C.12 BACKGROUND STUDY; TRIBAL ORGANIZATIONS.
964.7 	(a) For the purposes of background studies completed by tribal organizations performing 
964.8 	licensing activities otherwise required of the commissioner under this chapter, after obtaining 
964.9 	consent from the background study subject, tribal licensing agencies shall have access to 
964.10 	criminal history data in the same manner as county licensing agencies and private licensing 
964.11 	agencies under this chapter.
964.12 	(b) Tribal organizations may contract with the commissioner to obtain background study 
964.13 	data on individuals under tribal jurisdiction related to adoptions according to section 245C.34. 
964.14 	Tribal organizations may also contract with the commissioner to obtain background study 
964.15 	data on individuals under tribal jurisdiction related to child foster care according to section 
964.16 	245C.34.
964.17 	(c) For the purposes of background studies completed to comply with a tribal 
964.18 	organization's licensing requirements for individuals affiliated with a tribally licensed nursing 
964.19 	facility, the commissioner shall obtain criminal history data from the National Criminal 
964.20 	Records Repository in accordance with section 245C.32.
964.21 	(d) Tribal organizations may contract with the commissioner to conduct background 
964.22 	studies or obtain background study data on individuals affiliated with a child care program 
964.23 	sponsored, managed, or licensed by a tribal organization. Studies conducted under this 
964.24 	paragraph require the commissioner to conduct a national criminal history record check as 
964.25 	defined in section 245C.02, subdivision 5a. Any tribally affiliated child care program that 
964.26 	does not contract with the commissioner to conduct background studies is exempt from the 
964.27 	relevant requirements in this chapter. A study conducted under this paragraph must include 
964.28 	all components of studies for certified license-exempt child care centers under this chapter 
964.29 	to be transferable to other child care entities.

964.30 	Sec. 14. [245C.121] BACKGROUND STUDY; HEAD START PROGRAMS.
964.31 	Head Start programs that receive funding disbursed under section 119A.52 may contract 
964.32 	with the commissioner to conduct background studies and obtain background study data 
965.1 	on individuals affiliated with a Head Start program. Studies conducted under this paragraph 
965.2 	require the commissioner to conduct a national criminal history record check as defined in 
965.3 	section 245C.02, subdivision 5a. Any Head Start program site that does not contract with 
965.4 	the commissioner, is not licensed, and is not registered to receive funding under chapter 
965.5 	119B is exempt from the relevant requirements in this chapter. Nothing in this paragraph 
965.6 	supersedes requirements for background studies in this chapter, chapter 119B, or child care 
965.7 	centers under chapter 245H that are related to licensed child care programs or programs 
965.8 	registered to receive funding under chapter 119B. A study conducted under this paragraph 
965.9 	must include all components of studies for certified license-exempt child care centers under 
965.10 	this chapter to be transferable to other child care entities.

965.11 	Sec. 15. Laws 2017, First Special Session chapter 5, article 9, section 2, subdivision 7, is 
965.12 	amended to read:
965.13 		Subd. 7.Tier 2 implementing grants. (a) For Tier 2 implementing grants under 
965.14 	Minnesota Statutes, section 124D.99:

965.15		$
	480,000
	.....
	2018
	
965.17965.16
		$
	480,000
553,000
	.....
	2019
	
965.18 	(b) For fiscal years 2018 and 2019 only, $160,000 each year is for the Northfield Healthy 
965.19 	Community Initiative in Northfield; $160,000 is for the Jones Family Foundation for the 
965.20 	Every Hand Joined program in Red Wing; and $160,000 is for the United Way of Central 
965.21 	Minnesota for the Partners for Student Success program.
965.22 	(c) For fiscal year 2019 only, $73,000 is for the United Way of Central Minnesota for 
965.23 	the Promise Neighborhood of Central Minnesota.
965.24 	(d) The base funding for Tier 2 implementing grants is $480,000. The commissioner 
965.25 	must competitively award all grants under this subdivision for fiscal year 2020 and later.
965.26 	according to the criteria in Minnesota Statutes, section 124D.99, subdivision 3.
965.27 	(d) (e) Any balance in the first year does not cancel but is available in the second year.

965.28 	ARTICLE 53
965.29 	STATE AGENCIES

965.30 	Section 1. Minnesota Statutes 2016, section 128C.03, is amended to read:
965.31 	128C.03 ELIGIBILITY BYLAWS, POLICIES, AND PROCEDURES.
966.1 		Subdivision 1.Public input and access to proposed eligibility bylaws, policies, and 
966.2 	procedures. (a) The league shall adopt procedures to ensure public notice of all eligibility 
966.3 	rules and bylaws, policies, and procedures that will afford the opportunity for public hearings 
966.4 	on proposed eligibility rules bylaws, policies, and procedures. If requested by 100 25 or 
966.5 	more parents or guardians of students, the public hearing must be conducted by an 
966.6 	administrative law judge from the Office of Administrative Hearings, or by a person hired 
966.7 	under contract by the Office of Administrative Hearings, or by an independent hearing 
966.8 	officer appointed by the commissioner of education from a list maintained for that purpose. 
966.9 	At the conclusion of a public hearing requested by 100 or more parents or guardians of 
966.10 	students, the person conducting the hearing shall write a report evaluating the extent to 
966.11 	which the league has shown that the proposed rule is bylaws, policies, and procedures are
966.12 	needed and reasonable and the legality of the proposed rule bylaws, policies, and procedures. 
966.13 	The league shall pay for hearings under this section.
966.14 	(b) The league shall:
966.15 	(1) maintain a public docket on the league's Web site that includes historical and proposed 
966.16 	changes in eligibility bylaws, policies, and procedures;
966.17 	(2) post notice and final versions of all proposed changes to eligibility policies, 
966.18 	procedures, and definitions to the league Web site for at least 30 days prior to board meetings;
966.19 	(3) include publication dates on all versions of the league's official handbook or other 
966.20 	advisory documents regarding league eligibility bylaws, policies, procedures, and definitions; 
966.21 	and
966.22 	(4) reconcile and remove duplicate eligibility policies and procedures.
966.23 		Subd. 2.Eligibility review process. (a) The league must establish a process for student 
966.24 	eligibility review that provides students and parents with a reasonable opportunity to present 
966.25 	information regarding the student's eligibility. The league must:
966.26 	(1) publish general criteria by which a request for review may qualify for a review by 
966.27 	the league's eligibility committee;
966.28 	(2) publish general criteria by which a review may qualify for further review by an 
966.29 	independent hearing officer;
966.30 	(3) indicate the conditions, timelines, and procedures for administering any review under 
966.31 	clause (1) or (2); and
966.32 	(4) provide specific reasons for denying the request for reviews for which the league 
966.33 	denies a request.
967.1 	(b) The eligibility review process contained in this section does not create a property 
967.2 	right or liberty interest in extracurricular varsity athletic competition.

967.3 	Sec. 2. Minnesota Statutes 2016, section 128C.20, is amended to read:
967.4 	128C.20 LEAGUE INFORMATION REVIEW AND REPORT; COMMISSIONER 
967.5 	REVIEW OF LEAGUE RECOMMENDATIONS.
967.6 		Subdivision 1.Annually. (a) Each year, the commissioner of education league shall 
967.7 	obtain and review the following information about the league:
967.8 	(1) an accurate and concise summary of the annual financial and compliance audit 
967.9 	prepared by the state auditor that includes information about the compensation of and the 
967.10 	expenditures by the executive director of the league and league staff;
967.11 	(2) a list of all complaints filed with the league and all lawsuits filed against the league 
967.12 	and the disposition of those complaints and lawsuits;
967.13 	(3) an explanation of the executive director's performance review;
967.14 	(4) information about the extent to which the league has implemented its affirmative 
967.15 	action policy, its comparable worth plan, and its sexual harassment and violence policy and 
967.16 	rules; and
967.17 	(5) an evaluation of any proposed changes in league policy bylaws, policies, procedures, 
967.18 	and definitions, including those that have been proposed, for compliance with Department 
967.19 	of Education programs and applicable state and federal law; and
967.20 	(6) an explanation of recent and proposed changes to eligibility bylaws, policies, and 
967.21 	procedures, including the eligibility review process under section 128C.03, subdivision 2.
967.22 	The league shall post the review on the league's Web site and present written copies of 
967.23 	the review to the commissioner of education and the chairs and ranking minority members 
967.24 	of the legislative committees with jurisdiction over kindergarten through grade 12 education.
967.25 	(b) The commissioner may examine any league activities or league-related issues when 
967.26 	the commissioner believes this review is warranted.
967.27 		Subd. 2.Recommend laws. The commissioner may recommend to the legislature 
967.28 	whether any legislation is made necessary by league activities.

968.1 	Sec. 3. Laws 2017, First Special Session chapter 5, article 11, section 9, subdivision 2, is 
968.2 	amended to read:
968.3 		Subd. 2.Department. (a) For the Department of Education:

968.4		$
	27,158,000
	.....
	2018
	
968.6968.5
		$
	24,874,000
25,059,000
	.....
	2019
	
968.7 	Of these amounts:
968.8 	(1) $231,000 each year is for the Board of School Administrators, and beginning in fiscal 
968.9 	year 2020, the amount indicated is from the educator licensure account in the special revenue 
968.10 	fund;
968.11 	(2) $1,000,000 each year is for regional centers of excellence under Minnesota Statutes, 
968.12 	section 120B.115;
968.13 	(3) $500,000 each year is for the school safety technical assistance center under Minnesota 
968.14 	Statutes, section 127A.052;
968.15 	(4) $250,000 each year is for the School Finance Division to enhance financial data 
968.16 	analysis;
968.17 	(5) $720,000 each year is for implementing Minnesota's Learning for English Academic 
968.18 	Proficiency and Success Act under Laws 2014, chapter 272, article 1, as amended;
968.19 	(6) $2,750,000 in fiscal year 2018 and $500,000 in fiscal year 2019 are for the Department 
968.20 	of Education's mainframe update;
968.21 	(7) $123,000 each year is for a dyslexia specialist; and
968.22 	(8) $2,000,000 each year is for legal fees and costs associated with litigation; and
968.23 	(9) $185,000 in fiscal year 2019 only is for the Turnaround Arts program.
968.24 	(b) Any balance in the first year does not cancel but is available in the second year.
968.25 	(c) None of the amounts appropriated under this subdivision may be used for Minnesota's 
968.26 	Washington, D.C. office.
968.27 	(d) The expenditures of federal grants and aids as shown in the biennial budget document 
968.28 	and its supplements are approved and appropriated and shall be spent as indicated.
968.29 	(e) This appropriation includes funds for information technology project services and 
968.30 	support subject to the provisions of Minnesota Statutes, section 16E.0466. Any ongoing 
968.31 	information technology costs will be incorporated into the service level agreement and will 
969.1 	be paid to the Office of MN.IT Services by the Department of Education under the rates 
969.2 	and mechanism specified in that agreement.
969.3 	(f) The agency's base is $22,054,000 $22,139,000 for fiscal year 2020 and $21,965,000 
969.4 	for 2021.
969.5 	(g) For the fiscal year 2018 appropriation only, any amounts remaining unspent in 
969.6 	paragraph (a), clause (8), as of June 30, 2018, must be reallocated according to paragraphs 
969.7 	(h), (i), and (j), for grants in fiscal year 2019.
969.8 	(h) 50 percent of the amount under paragraph (g) must be allocated for additional 
969.9 	character development grants. This amount is available until June 30, 2021.
969.10 	(i) 37.5 percent of the amount under paragraph (g) is for a grant to the For Jake's Sake 
969.11 	Foundation to collaborate with school districts throughout Minnesota to integrate 
969.12 	evidence-based substance misuse prevention instruction on the dangers of substance misuse, 
969.13 	particularly the use of opioids, into school district programs and curricula, including health 
969.14 	education curricula. Funds are to:
969.15 	(1) identify effective substance misuse prevention tools and strategies, including 
969.16 	innovative uses of technology and media;
969.17 	(2) develop and promote a comprehensive substance misuse prevention curriculum for 
969.18 	students in grades 5 through 12 that educates students and families about the dangers of 
969.19 	substance misuse;
969.20 	(3) integrate substance misuse prevention into curricula across subject areas;
969.21 	(4) train school district teachers, athletic coaches, and other school staff in effective 
969.22 	substance misuse prevention strategies; and
969.23 	(5) collaborate with school districts to evaluate the effectiveness of districts' substance 
969.24 	misuse prevention efforts.
969.25 	By February 15, 2019, the grantee must submit a report detailing expenditures and outcomes 
969.26 	of the grant to the chairs and ranking minority members of the legislative committees with 
969.27 	primary jurisdiction over kindergarten through grade 12 education policy and finance. The 
969.28 	report must identify the school districts that have implemented or plan to implement the 
969.29 	substance misuse prevention curriculum. This amount is available until June 30, 2021.
969.30 	(j) 12.5 percent of the amount in paragraph (g) is for a grant to the Mind Foundry 
969.31 	Learning Foundation to run after-school STEM programming to inspire and educate 
970.1 	underserved youth in St. Paul about the value of STEM fields in 21st century work and 
970.2 	learning. This amount is available until June 30, 2021.

970.3 	Sec. 4. Laws 2017, First Special Session chapter 5, article 11, section 10, is amended to 
970.4 	read:
970.5 	Sec. 10. APPROPRIATIONS; PROFESSIONAL EDUCATOR LICENSING AND 
970.6 	STANDARDS BOARD OF TEACHING.
 970.7 		Subdivision 1.Board of Teaching. (a) The sums indicated in this section are appropriated 
970.8 	from the general fund to the Board of Teaching or any successor organization for the fiscal 
970.9 	years designated:

970.10		$
	3,481,000
	.....
	2018
	
970.12970.11
		$
	3,493,000
3,518,000
	.....
	2019
	
970.13 	(b) This appropriation includes funds for information technology project services and 
970.14 	support subject to Minnesota Statutes, section 16E.0466. Any ongoing information 
970.15 	technology costs will be incorporated into an interagency agreement and will be paid to the 
970.16 	Office of MN.IT Services by the Board of Teaching under the mechanism specified in that 
970.17 	agreement.
970.18 	(c) The fiscal year 2019 appropriation includes $25,000 for developing a process for 
970.19 	districts to submit ethics complaints.
970.20 	(c) (d) Any balance in the first year does not cancel but is available in the second year.
970.21 	(d) (e) Beginning in fiscal year 2020, the amounts indicated are appropriated from the 
970.22 	educator licensure account in the special revenue fund or, if the amount in the educator 
970.23 	licensure account is insufficient, from the general fund to the Board of Teaching or any 
970.24 	successor organization. If a successor organization is established, the Department of 
970.25 	Administration must provide administrative support to the successor organization under 
970.26 	Minnesota Statutes, section 16B.371. The commissioner of administration must assess the 
970.27 	board for services provided under this section.
970.28 	(e) (f) The base for fiscal year 2020 is $2,734,000 and $2,709,000 for fiscal year 2021.
970.29 		Subd. 2.Licensure by portfolio. For licensure by portfolio:

970.30		$
	34,000
	.....
	2018
	
970.31		$
	34,000
	.....
	2019
	
971.1 	This appropriation is from the educator licensure portfolio account in the special revenue 
971.2 	fund.

971.3 	Sec. 5. Laws 2017, First Special Session chapter 5, article 11, section 12, is amended to 
971.4 	read:
971.5 	Sec. 12. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 971.6 	(a) The sums in this section are appropriated from the general fund to the Perpich Center 
971.7 	for Arts Education for the fiscal years designated:

971.9971.8
		$
	8,173,000
7,394,000
	.....
	2018
	
971.10		$
	6,973,000
	.....
	2019
	
971.11 	(b) Of the amounts appropriated in paragraph (a) amount in fiscal year 2018, $370,000 
971.12 	is for fiscal years 2018 or 2019 only for arts integration and Turnaround Arts programs and 
971.13 	is available until June 30, 2019.
971.14 	(c) $1,200,000 $400,000 in fiscal year 2018 is for severance payments related to the 
971.15 	closure of Crosswinds school and is available until June 30, 2019.
971.16 	(d) The base in fiscal year 2020 is $6,973,000.

971.17 	Sec. 6. Laws 2017, First Special Session chapter 5, article 11, section 13, is amended to 
971.18 	read:
971.19 	Sec. 13. CROSSWINDS DISPOSITION COSTS.
 971.20 	$162,000 $21,000 in fiscal year 2018 only is appropriated from the general fund to the 
971.21 	Perpich Center for Arts Education. The amount appropriated in this section is for transfer 
971.22 	to the commissioner of administration for costs related to the sale of the Crosswinds school 
971.23 	and is available until June 30, 2019.

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

971.25 	Sec. 7.  REPEALER.
 971.26 	Minnesota Statutes 2016, section 128C.02, subdivision 6, is repealed.

972.1 	ARTICLE 54
972.2 	FORECAST ADJUSTMENTS
972.3 	A. GENERAL EDUCATION

972.4 	Section 1. Laws 2017, First Special Session chapter 5, article 1, section 19, subdivision 
972.5 	3, is amended to read:
972.6 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
972.7 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
972.8 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

972.10972.9		$
	29,000
25,000
	.....
	2018
	
972.12972.11
		$
	31,000
27,000
	.....
	2019

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

972.14 	Sec. 2. Laws 2017, First Special Session chapter 5, article 1, section 19, subdivision 4, is 
972.15 	amended to read:
972.16 		Subd. 4.Abatement aid. For abatement aid under Minnesota Statutes, section 127A.49:

972.18972.17
		$
	2,374,000
2,584,000
	.....
	2018
	
972.20972.19
		$
	2,163,000
3,218,000
	.....
	2019
	
972.21 	The 2018 appropriation includes $262,000 for 2017 and $2,112,000 $2,322,000 for 
972.22 	2018.
972.23 	The 2019 appropriation includes $234,000 $258,000 for 2018 and $1,929,000 $2,960,000
972.24 	for 2019.

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

972.26 	Sec. 3. Laws 2017, First Special Session chapter 5, article 1, section 19, subdivision 6, is 
972.27 	amended to read:
972.28 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
972.29 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

972.31972.30
		$
	18,197,000
17,779,000
	.....
	2018
	
972.33972.32
		$
	19,225,000
17,910,000
	.....
	2019
	
973.1 	The 2018 appropriation includes $1,687,000 for 2017 and $16,510,000 $16,092,000 for 
973.2 	2018.
973.3 	The 2019 appropriation includes $1,834,000 $1,787,000 for 2018 and $17,391,000
973.4 	$16,123,000 for 2019.

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

973.6 	Sec. 4. Laws 2017, First Special Session chapter 5, article 1, section 19, subdivision 7, is 
973.7 	amended to read:
973.8 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid under 
973.9 	Minnesota Statutes, section 123B.92, subdivision 9:

973.11973.10
		$
	18,372,000
17,549,000
	.....
	2018
	
973.13973.12
		$
	18,541,000
18,309,000
	.....
	2019
	
973.14 	The 2018 appropriation includes $1,835,000 for 2017 and $16,537,000 $15,714,000 for 
973.15 	2018.
973.16 	The 2019 appropriation includes $1,837,000 $1,745,000 for 2018 and $16,704,000
973.17 	$16,564,000 for 2019.

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

973.19 	Sec. 5. Laws 2017, First Special Session chapter 5, article 1, section 19, subdivision 9, is 
973.20 	amended to read:
973.21 		Subd. 9.Career and technical aid. For career and technical aid under Minnesota 
973.22 	Statutes, section 124D.4531, subdivision 1b:

973.24973.23
		$
	4,561,000
4,757,000
	.....
	2018
	
973.26973.25
		$
	4,125,000
4,384,000
	.....
	2019
	
973.27 	The 2018 appropriation includes $476,000 for 2017 and $4,085,000 $4,281,000 for 
973.28 	2018.
973.29 	The 2019 appropriation includes $453,000 $475,000 for 2018 and $3,672,000 $3,909,000
973.30 	for 2019.

973.31 	EFFECTIVE DATE. This section is effective the day following final enactment.
974.1 	B. EDUCATION EXCELLENCE

974.2 	Sec. 6. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 2, is 
974.3 	amended to read:
974.4 		Subd. 2.Achievement and integration aid. For achievement and integration aid under 
974.5 	Minnesota Statutes, section 124D.862:

974.7974.6
		$
	71,249,000
71,693,000
	.....
	2018
	
974.9974.8
		$
	73,267,000
73,926,000
	.....
	2019
	
974.10 	The 2018 appropriation includes $6,725,000 for 2017 and $64,524,000 $64,968,000 for 
974.11 	2018.
974.12 	The 2019 appropriation includes $7,169,000 $7,218,000 for 2018 and $66,098,000
974.13 	$66,708,000 for 2019.

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

974.15 	Sec. 7. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 3, is 
974.16 	amended to read:
974.17 		Subd. 3.Literacy incentive aid. For literacy incentive aid under Minnesota Statutes, 
974.18 	section 124D.98:

974.20974.19
		$
	47,264,000
46,517,000
	.....
	2018
	
974.22974.21
		$
	47,763,000
46,188,000
	.....
	2019
	
974.23 	The 2018 appropriation includes $4,597,000 for 2017 and $42,667,000 $41,920,000 for 
974.24 	2018.
974.25 	The 2019 appropriation includes $4,740,000 $4,657,000 for 2018 and $43,023,000
974.26 	$41,531,000 for 2019.

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

974.28 	Sec. 8. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 4, is 
974.29 	amended to read:
974.30 		Subd. 4.Interdistrict desegregation or integration transportation grants. For 
974.31 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
974.32 	section 124D.87:

975.2975.1
		$
	13,337,000
14,328,000
	.....
	2018
	
975.4975.3
		$
	14,075,000
15,065,000
	.....
	2019

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

975.6 	Sec. 9. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 5, is 
975.7 	amended to read:
975.8 		Subd. 5.Tribal contract schools. For tribal contract school aid under Minnesota Statutes, 
975.9 	section 124D.83:

975.11975.10
		$
	3,623,000
2,954,000
	.....
	2018
	
975.13975.12
		$
	4,018,000
3,381,000
	.....
	2019
	
975.14 	The 2018 appropriation includes $323,000 for 2017 and $3,300,000 $2,631,000 for 
975.15 	2018.
975.16 	The 2019 appropriation includes $366,000 $292,000 for 2018 and $3,652,000 $3,089,000
975.17 	for 2019.

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

975.19 	Sec. 10. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 6, 
975.20 	is amended to read:
975.21 		Subd. 6.American Indian education aid. For American Indian education aid under 
975.22 	Minnesota Statutes, section 124D.81, subdivision 2a:

975.23		$
	9,244,000
	.....
	2018
	
975.25975.24
		$
	9,464,000
9,409,000
	.....
	2019
	
975.26 	The 2018 appropriation includes $886,000 for 2017 and $8,358,000 for 2018.
975.27 	The 2019 appropriation includes $928,000 for 2018 and $8,536,000 $8,481,000 for 
975.28 	2019.

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

976.1 	Sec. 11. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 21, 
976.2 	is amended to read:
976.3 		Subd. 21.Charter school building lease aid. For building lease aid under Minnesota 
976.4 	Statutes, section 124E.22:

976.6976.5
		$
	73,341,000
73,334,000
	.....
	2018
	
976.8976.7
		$
	78,802,000
79,098,000
	.....
	2019
	
976.9 	The 2018 appropriation includes $6,850,000 for 2017 and $66,491,000 $66,484,000 for 
976.10 	2018.
976.11 	The 2019 appropriation includes $7,387,000 for 2018 and $71,415,000 $71,711,000 for 
976.12 	2019.

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

976.14 	Sec. 12. Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 26, 
976.15 	is amended to read:
976.16 		Subd. 26.Alternative teacher compensation aid. For alternative teacher compensation 
976.17 	aid under Minnesota Statutes, section 122A.415, subdivision 4:

976.19976.18
		$
	89,863,000
90,131,000
	.....
	2018
	
976.21976.20
		$
	89,623,000
89,789,000
	.....
	2019
	
976.22 	The 2018 appropriation includes $8,917,000 for 2017 and $80,946,000 $81,214,000 for 
976.23 	2018.
976.24 	The 2019 appropriation includes $8,994,000 $9,023,000 for 2018 and $80,629,000
976.25 	$80,766,000 for 2019.

976.26 	EFFECTIVE DATE. This section is effective the day following final enactment.
976.27 	C. SPECIAL EDUCATION

976.28 	Sec. 13. Laws 2017, First Special Session chapter 5, article 4, section 12, subdivision 3, 
976.29 	is amended to read:
976.30 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, section 
976.31 	125A.75, subdivision 3, for children with disabilities placed in residential facilities within 
976.32 	the district boundaries for whom no district of residence can be determined:

977.2977.1
		$
	1,597,000
1,022,000
	.....
	2018
	
977.4977.3
		$
	1,830,000
1,204,000
	.....
	2019
	
977.5 	If the appropriation for either year is insufficient, the appropriation for the other year is 
977.6 	available.

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

977.8 	Sec. 14. Laws 2017, First Special Session chapter 5, article 4, section 12, subdivision 4, 
977.9 	is amended to read:
977.10 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
977.11 	services under Minnesota Statutes, section 125A.75, subdivision 1:

977.13977.12
		$
	508,000
412,000
	.....
	2018
	
977.15977.14
		$
	532,000
421,000
	.....
	2019
	
977.16 	The 2018 appropriation includes $48,000 for 2017 and $460,000 $364,000 for 2018.
977.17 	The 2019 appropriation includes $51,000 $40,000 for 2018 and $481,000 $381,000 for 
977.18 	2019.

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

977.20 	Sec. 15. Laws 2017, First Special Session chapter 5, article 4, section 12, subdivision 5, 
977.21 	is amended to read:
977.22 		Subd. 5.Court-placed special education revenue. For reimbursing serving school 
977.23 	districts for unreimbursed eligible expenditures attributable to children placed in the serving 
977.24 	school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:

977.26977.25
		$
	46,000
40,000
	.....
	2018
	
977.28977.27
		$
	47,000
41,000
	.....
	2019

977.29 	EFFECTIVE DATE. This section is effective the day following final enactment.
978.1 	D. FACILITIES AND TECHNOLOGY

978.2 	Sec. 16. Laws 2017, First Special Session chapter 5, article 5, section 14, subdivision 2, 
978.3 	is amended to read:
978.4 		Subd. 2.Debt service equalization aid. For debt service equalization aid under 
978.5 	Minnesota Statutes, section 123B.53, subdivision 6:

978.6		$
	24,908,000
	.....
	2018
	
978.8978.7
		$
	22,360,000
23,137,000
	.....
	2019
	
978.9 	The 2018 appropriation includes $2,324,000 for 2017 and $22,584,000 for 2018.
978.10 	The 2019 appropriation includes $2,509,000 for 2018 and $19,851,000 $20,628,000 for 
978.11 	2019.

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

978.13 	Sec. 17. Laws 2017, First Special Session chapter 5, article 5, section 14, subdivision 3, 
978.14 	is amended to read:
978.15 		Subd. 3.Long-term facilities maintenance equalized aid. For long-term facilities 
978.16 	maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:

978.18978.17
		$
	80,179,000
81,053,000
	.....
	2018
	
978.20978.19
		$
	103,460,000
102,374,000
	.....
	2019
	
978.21 	The 2018 appropriation includes $5,815,000 for 2017 and $74,364,000 $75,238,000 for 
978.22 	2018.
978.23 	The 2019 appropriation includes $8,262,000 $8,359,000 for 2018 and $95,198,000
978.24 	$94,015,000 for 2019.

978.25 	EFFECTIVE DATE. This section is effective the day following final enactment.
978.26 	E. NUTRITION

978.27 	Sec. 18. Laws 2017, First Special Session chapter 5, article 6, section 3, subdivision 2, is 
978.28 	amended to read:
978.29 		Subd. 2.School lunch. For school lunch aid under Minnesota Statutes, section 124D.111, 
978.30 	and Code of Federal Regulations, title 7, section 210.17:

978.32978.31
		$
	16,721,000
16,143,000
	.....
	2018
	
979.2979.1
		$
	17,223,000
16,477,000
	.....
	2019

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

979.4 	Sec. 19. Laws 2017, First Special Session chapter 5, article 6, section 3, subdivision 3, is 
979.5 	amended to read:
979.6 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota Statutes, 
979.7 	section 124D.1158:

979.9979.8
		$
	10,601,000
10,474,000
	.....
	2018
	
979.11979.10
		$
	11,359,000
11,282,000
	.....
	2019

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

979.13 	Sec. 20. Laws 2017, First Special Session chapter 5, article 6, section 3, subdivision 4, is 
979.14 	amended to read:
979.15 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
979.16 	section 124D.118:

979.18979.17
		$
	758,000
734,000
	.....
	2018
	
979.20979.19
		$
	758,000
734,000
	.....
	2019

979.21 	EFFECTIVE DATE. This section is effective the day following final enactment.
979.22 	F. EARLY CHILDHOOD AND FAMILY SUPPORT

979.23 	Sec. 21. Laws 2017, First Special Session chapter 5, article 8, section 10, subdivision 3, 
979.24 	is amended to read:
979.25 		Subd. 3.Mixed delivery prekindergarten programs. (a) For mixed delivery 
979.26 	prekindergarten programs and school readiness plus programs:

979.28979.27
		$
	21,429,000
0
	.....
	2018
	
979.30979.29
		$
	28,571,000
0
	.....
	2019
	
979.31 	(b) The fiscal year 2018 appropriation includes $0 for 2017 and $21,429,000 $0 for 
979.32 	2018.
980.1 	(c) The fiscal year 2019 appropriation includes $2,381,000 $0 for 2018 and $26,190,000
980.2 	$0 for 2019.
980.3 	(d) The commissioner must proportionately allocate the amounts appropriated in this 
980.4 	subdivision among each education funding program affected by the enrollment of mixed 
980.5 	delivery system prekindergarten pupils.
980.6 	(e) The appropriation under this subdivision is reduced by any other amounts specifically 
980.7 	appropriated for those purposes.

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

980.9 	Sec. 22. Laws 2017, First Special Session chapter 5, article 8, section 10, subdivision 5a, 
980.10 	is amended to read:
980.11 		Subd. 5a.Early childhood family education aid. For early childhood family education 
980.12 	aid under Minnesota Statutes, section 124D.135:

980.14980.13
		$
	30,405,000
29,760,000
	.....
	2018
	
980.16980.15
		$
	31,977,000
30,870,000
	.....
	2019
	
980.17 	The 2018 appropriation includes $2,904,000 for 2017 and $27,501,000 $26,856,000 for 
980.18 	2018.
980.19 	The 2019 appropriation includes $3,055,000 $2,983,000 for 2018 and $28,922,000
980.20 	$27,887,000 for 2019.

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

980.22 	Sec. 23. Laws 2017, First Special Session chapter 5, article 8, section 10, subdivision 6, 
980.23 	is amended to read:
980.24 		Subd. 6.Developmental screening aid. For developmental screening aid under 
980.25 	Minnesota Statutes, sections 121A.17 and 121A.19:

980.27980.26
		$
	3,606,000
3,663,000
	.....
	2018
	
980.29980.28
		$
	3,629,000
3,688,000
	.....
	2019
	
980.30 	The 2018 appropriation includes $358,000 for 2017 and $3,248,000 $3,305,000 for 
980.31 	2018.
981.1 	The 2019 appropriation includes $360,000 $367,000 for 2018 and $3,269,000 $3,321,000
981.2 	for 2019.

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

981.4 	Sec. 24. Laws 2017, First Special Session chapter 5, article 8, section 10, subdivision 12, 
981.5 	is amended to read:
981.6 		Subd. 12.Home visiting aid. For home visiting aid under Minnesota Statutes, section 
981.7 	124D.135:

981.9981.8
		$
	527,000
503,000
	.....
	2018
	
981.11981.10
		$
	571,000
525,000
	.....
	2019
	
981.12 	The 2018 appropriation includes $0 for 2017 and $527,000 $503,000 for 2018.
981.13 	The 2019 appropriation includes $58,000 $55,000 for 2018 and $513,000 $470,000 for 
981.14 	2019.

981.15 	EFFECTIVE DATE. This section is effective the day following final enactment.
981.16 	G. COMMUNITY EDUCATION AND PREVENTION

981.17 	Sec. 25. Laws 2017, First Special Session chapter 5, article 9, section 2, subdivision 2, is 
981.18 	amended to read:
981.19 		Subd. 2.Community education aid. For community education aid under Minnesota 
981.20 	Statutes, section 124D.20:

981.22981.21
		$
	483,000
477,000
	.....
	2018
	
981.24981.23
		$
	393,000
410,000
	.....
	2019
	
981.25 	The 2018 appropriation includes $53,000 for 2017 and $430,000 $424,000 for 2018.
981.26 	The 2019 appropriation includes $47,000 for 2018 and $346,000 $363,000 for 2019.

981.27 	EFFECTIVE DATE. This section is effective the day following final enactment.
982.1 	H. SELF-SUFFICIENCY AND LIFELONG LEARNING

982.2 	Sec. 26. Laws 2017, First Special Session chapter 5, article 10, section 6, subdivision 2, 
982.3 	is amended to read:
982.4 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
982.5 	Statutes, section 124D.531:

982.7982.6
		$
	50,010,000
48,708,000
	.....
	2018
	
982.9982.8
		$
	51,497,000
50,109,000
	.....
	2019
	
982.10 	The 2018 appropriation includes $4,881,000 for 2017 and $45,129,000 $43,827,000 for 
982.11 	2018.
982.12 	The 2019 appropriation includes $5,014,000 $4,869,000 for 2018 and $46,483,000
982.13 	$45,240,000 for 2019.

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

982.15 	ARTICLE 55
982.16 	MISCELLANEOUS FINANCE

982.17 	Section 1. Minnesota Statutes 2016, section 16A.103, subdivision 1, is amended to read:
982.18 		Subdivision 1.State revenue and expenditures. In February and November each year, 
982.19 	the commissioner shall prepare a forecast of state revenue and expenditures. The November 
982.20 	forecast must be delivered to the legislature and governor no later than the end of the first 
982.21 	week of December 6. The February forecast must be delivered to the legislature and governor 
982.22 	by the end of February. Forecasts must be delivered to the legislature and governor on the 
982.23 	same day. If requested by the Legislative Commission on Planning and Fiscal Policy, 
982.24 	delivery to the legislature must include a presentation to the commission.

982.25 	Sec. 2. Minnesota Statutes 2016, section 16A.103, subdivision 1b, is amended to read:
982.26 		Subd. 1b.Forecast variable. In determining the amount of state bonding as it affects 
982.27 	debt service, the calculation of investment income, and the other variables to be included 
982.28 	in the expenditure part of the forecast, the commissioner must consult with the chairs and 
982.29 	lead minority members of the senate State Government Finance Committee and the house 
982.30 	of representatives Ways and Means Committee, and legislative fiscal staff. This consultation 
982.31 	must occur at least three weeks before the forecast is to be released. No later than two weeks 
982.32 	prior to the release of the forecast, the commissioner must inform the chairs and lead minority 
983.1 	members of the senate State Government Finance Committee and the house of representatives 
983.2 	Ways and Means Committee, and legislative fiscal staff of any changes in these variables 
983.3 	from the previous forecast.

983.4 	Sec. 3. Minnesota Statutes 2016, section 16A.103, is amended by adding a subdivision to 
983.5 	read:
983.6 		Subd. 1i.Budget close report. By October 15 of each odd-numbered year, the 
983.7 	commissioner shall prepare a detailed fund balance analysis of the general fund for the 
983.8 	previous biennium. The analysis shall include a comparison to the most recent publicly 
983.9 	available fund balance analysis of the general fund. The commissioner shall provide this 
983.10 	analysis to the chairs and ranking minority members of the house of representatives Ways 
983.11 	and Means Committee and the senate Finance Committee, and shall post the analysis on 
983.12 	the agency's Web site.

983.13 	Sec. 4. Minnesota Statutes 2016, section 16A.99, subdivision 2, is amended to read:
983.14 		Subd. 2.Authority. (a) Subject to the limitations of this subdivision, the commissioner 
983.15 	may sell and issue appropriation bonds of the state under this section for public purposes 
983.16 	as provided by law. Proceeds of the bonds must be credited to a special appropriation bond 
983.17 	proceeds fund in the state treasury. Net income from investment of the proceeds, as estimated 
983.18 	by the commissioner, must be credited to the special appropriation bond proceeds fund.
983.19 	(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of the 
983.20 	commissioner, are necessary to provide sufficient funds, not to exceed $640,000,000 and 
983.21 	subject to the limitation in section 16A.97, for achieving the purposes authorized as provided 
983.22 	under paragraph (a), and pay debt service, pay costs of issuance, make deposits to reserve 
983.23 	funds, pay the costs of credit enhancement, or make payments under other agreements 
983.24 	entered into under paragraph (d); provided, however, that bonds issued and unpaid shall 
983.25 	not exceed $800,000,000 in principal amount, excluding refunding bonds sold and issued 
983.26 	under subdivision 4.
983.27 	(c) Appropriation bonds may be issued from time to time in one or more series on the 
983.28 	terms and conditions the commissioner determines to be in the best interests of the state, 
983.29 	but the term on any series of bonds may not exceed 30 years. The bonds of each issue shall 
983.30 	be dated and bear interest, and may be includable in or excludable from the gross income 
983.31 	of the owners for federal income tax purposes.
983.32 	(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time 
983.33 	thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter 
984.1 	into agreements and ancillary arrangements relating to the appropriation bonds, including 
984.2 	but not limited to trust indentures, liquidity facilities, remarketing or dealer agreements, 
984.3 	letter of credit agreements, insurance policies, guaranty agreements, reimbursement 
984.4 	agreements, indexing agreements, or interest exchange agreements. Any payments made 
984.5 	or received according to the agreement or ancillary arrangement shall be made from or 
984.6 	deposited as provided in the agreement or ancillary arrangement. The determination of the 
984.7 	commissioner included in an interest exchange agreement that the agreement relates to an 
984.8 	appropriation bond shall be conclusive.
984.9 	(e) The commissioner may enter into written agreements or contracts relating to the 
984.10 	continuing disclosure of information necessary to comply with, or facilitate the issuance of 
984.11 	appropriation bonds in accordance with federal securities laws, rules, and regulations, 
984.12 	including Securities and Exchange Commission rules and regulations in Code of Federal 
984.13 	Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants 
984.14 	with purchasers and holders of appropriation bonds set forth in the order or resolution 
984.15 	authorizing the issuance of the appropriation bonds, or a separate document authorized by 
984.16 	the order or resolution.
984.17 	(f) The appropriation bonds are not subject to chapter 16C.

984.18 	Sec. 5. Minnesota Statutes 2016, section 16A.99, subdivision 4, is amended to read:
984.19 		Subd. 4.Refunding bonds. The commissioner from time to time may issue appropriation 
984.20 	bonds for the purpose of refunding any appropriation bonds or tobacco securitization bonds 
984.21 	authorized under section 16A.98 then outstanding, including the payment of any redemption 
984.22 	premiums on the bonds, any interest accrued or to accrue to the redemption date, and costs 
984.23 	related to the issuance and sale of the refunding bonds. The proceeds of any refunding bonds 
984.24 	may, in the discretion of the commissioner, be applied to the purchase or payment at maturity 
984.25 	of the appropriation bonds to be refunded, to the redemption of the outstanding bonds on 
984.26 	any redemption date, or to pay interest on the refunding bonds and may, pending application, 
984.27 	be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any 
984.28 	escrowed proceeds, pending such use, may be invested and reinvested in obligations that 
984.29 	are authorized investments under section 11A.24. The income earned or realized on the 
984.30 	investment may also be applied to the payment of the bonds to be refunded or interest or 
984.31 	premiums on the refunded bonds, or to pay interest on the refunding bonds. After the terms 
984.32 	of the escrow have been fully satisfied, any balance of the proceeds and any investment 
984.33 	income may be returned to the general fund or, if applicable, the appropriation bond proceeds 
984.34 	account for use in any lawful manner. All refunding bonds issued under this subdivision 
985.1 	must be prepared, executed, delivered, and secured by appropriations in the same manner 
985.2 	as the bonds to be refunded.

985.3 	Sec. 6. Minnesota Statutes 2016, section 129D.17, is amended by adding a subdivision to 
985.4 	read:
985.5 		Subd. 6.Prohibited activities. Funding from the arts and cultural heritage fund must 
985.6 	not be used for projects that promote domestic terrorism or criminal activities.

985.7 	Sec. 7. Laws 2017, First Special Session chapter 1, article 4, section 31, is amended to 
985.8 	read:
985.9 	Sec. 31. APPROPRIATION; FIRE REMEDIATION GRANTS.
 985.10 	$1,392,258 is appropriated in fiscal year 2018 from the general fund to the commissioner 
985.11 	of public safety for grants to remediate the effects of fires in the city of Melrose on September 
985.12 	8, 2016. The commissioner must allocate the grants as follows:
985.13 	(1) $1,296,458 $1,381,258 to the city of Melrose; and
985.14 	(2) $95,800 $11,000 to Stearns County.
985.15 	A grant recipient must use the money appropriated under this section for remediation 
985.16 	costs, including disaster recovery, infrastructure, reimbursement for emergency personnel 
985.17 	costs, reimbursement for equipment costs, and reimbursements for property tax abatements, 
985.18 	incurred by public or private entities as a result of the fires. This is a onetime appropriation 
985.19 	and is available until June 30, 2018 2019.

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

985.21 	Sec. 8.  REPEALER.
 985.22 	Minnesota Statutes 2016, sections 16A.97; and 16A.98, are repealed.
985.23 	Delete the title and insert:
985.24 	A bill for an act
985.25 	relating to state government; appropriating money and modifying provisions for 
985.26 	agriculture, housing, state government, public safety, corrections, courts, 
985.27 	transportation, environment, natural resources, energy, jobs, economic development, 
985.28 	higher education, prekindergarten through grade 12 education, health, and human 
985.29 	services; establishing and modifying state regulations and programs; creating 
985.30 	accounts; providing for disposition of certain receipts; making clarifying and 
985.31 	technical changes; making forecast adjustments; requiring rulemaking; requiring 
985.32 	reports; providing criminal penalties; creating work groups, task forces, and 
985.33 	advisory groups; modifying fees;amending Minnesota Statutes 2016, sections 
985.34 	3.3005, subdivision 8; 3.855, by adding a subdivision; 10A.01, subdivision 35; 
986.1 	13.072, subdivision 1; 13.461, by adding a subdivision; 13.64, by adding a 
986.2 	subdivision; 13.6905, subdivision 3; 13.72, subdivision 10; 13.851, by adding a 
986.3 	subdivision; 16A.013, by adding a subdivision; 16A.103, subdivisions 1, 1b, by 
986.4 	adding a subdivision; 16A.11, subdivision 1, by adding a subdivision; 16A.99, 
986.5 	subdivisions 2, 4; 16E.03, subdivision 7; 17.117, subdivisions 1, 4, 11; 17.494; 
986.6 	17.4982, by adding subdivisions; 18C.425, subdivision 6; 18C.80, subdivision 2; 
986.7 	21.89, subdivision 2; 28A.16; 41A.15, subdivision 10, by adding a subdivision; 
986.8 	41A.16, subdivisions 1, 2; 41A.17, subdivision 1; 41A.18, subdivision 1; 41B.056, 
986.9 	subdivision 2; 62A.30, by adding a subdivision; 62V.05, subdivisions 5, 10; 80E.13; 
986.10 	84.0895, subdivision 2; 84.775, subdivision 1; 84.86, subdivision 1; 84.928, 
986.11 	subdivision 2; 88.10, by adding a subdivision; 88.75, subdivision 1; 89.551; 
986.12 	97A.051, subdivision 2; 97A.433, subdivisions 4, 5; 97B.015, subdivision 6; 
986.13 	97B.081, subdivision 3; 97B.1055; 97C.345, subdivision 3a; 103B.3369, 
986.14 	subdivisions 5, 9; 103B.801, subdivisions 2, 5; 103E.021, subdivision 6; 103E.071; 
986.15 	103E.351, subdivision 1; 103F.361, subdivision 2; 103F.363, subdivision 1; 
986.16 	103F.365, by adding a subdivision; 103F.371; 103F.373, subdivisions 1, 3, 4; 
986.17 	103G.2242, subdivision 14; 103I.205, subdivision 9; 103I.301, subdivision 6; 
986.18 	114D.15, subdivisions 7, 11, 13, by adding subdivisions; 114D.20, subdivisions 
986.19 	2, 3, 5, 7, by adding subdivisions; 114D.26; 114D.35, subdivisions 1, 3; 115.03, 
986.20 	subdivision 5, by adding a subdivision; 115.035; 115A.51; 115A.94, subdivisions 
986.21 	2, 4a, 4b, 4c, 4d, 5, by adding subdivisions; 116.155, subdivision 1, by adding 
986.22 	subdivisions; 116.993, subdivisions 2, 6; 119B.011, subdivision 19, by adding a 
986.23 	subdivision; 119B.02, subdivision 7; 119B.03, subdivision 9; 119B.06, by adding 
986.24 	a subdivision; 120A.20, subdivision 2; 120A.22, subdivisions 7, 12; 120B.024, 
986.25 	subdivision 1; 120B.11, subdivisions 1, 1a, 2, 5, 9; 120B.12, as amended; 120B.299, 
986.26 	subdivision 10; 120B.36, subdivision 2; 121A.22, subdivision 1, by adding a 
986.27 	subdivision; 121A.39; 121A.41, by adding a subdivision; 121A.45; 121A.46, 
986.28 	subdivisions 2, 3, by adding subdivisions; 121A.47, subdivisions 2, 14; 121A.55; 
986.29 	121A.61; 121A.67, by adding a subdivision; 122A.42; 122A.71, subdivision 2; 
986.30 	123B.14, subdivision 7; 123B.41, subdivision 5; 123B.42, subdivision 3; 123B.52, 
986.31 	subdivision 6; 123B.595, as amended; 123B.61; 124D.09, subdivision 4; 124D.111; 
986.32 	124D.151, subdivision 2; 124D.78, subdivision 2; 124D.98; 124E.20, subdivision 
986.33 	1; 125B.07, subdivision 6; 125B.26, subdivision 4; 126C.10, subdivisions 2e, 24; 
986.34 	126C.15, subdivision 5, by adding a subdivision; 126C.17, subdivisions 1, 2, 5, 
986.35 	6, 7, 7a; 126C.44; 127A.45, subdivisions 11, 16; 127A.70, subdivision 2; 128C.03; 
986.36 	128C.20; 129D.17, by adding a subdivision; 134.355, subdivision 10; 135A.15, 
986.37 	subdivisions 2, 6; 136A.15, subdivision 8; 136A.16, subdivisions 1, 2, 5, 8, 9; 
986.38 	136A.162; 136A.1701, subdivision 7; 136A.1702; 136A.1791, subdivision 8; 
986.39 	136A.1795, subdivision 2; 136A.64, subdivision 1; 136A.822, subdivision 10; 
986.40 	136A.901, subdivision 1; 137.0245, subdivisions 1, 2, 4, 5; 144.121, subdivision 
986.41 	1a, by adding a subdivision; 144.1506, subdivision 2; 144.225, subdivisions 2, 2a, 
986.42 	7; 144.6501, subdivision 3, by adding a subdivision; 144.651, subdivisions 1, 2, 
986.43 	4, 6, 14, 16, 17, 20, 21, by adding subdivisions; 144.652, by adding a subdivision; 
986.44 	144A.10, subdivision 1; 144A.26; 144A.43, subdivisions 11, 27, 30, by adding a 
986.45 	subdivision; 144A.44, subdivision 1; 144A.441; 144A.442; 144A.45, subdivisions 
986.46 	1, 2; 144A.472, subdivision 5; 144A.473; 144A.474, subdivisions 2, 8, 9; 144A.475, 
986.47 	subdivisions 1, 2, 5; 144A.476, subdivision 1; 144A.479, subdivision 7, by adding 
986.48 	a subdivision; 144A.4791, subdivisions 1, 3, 6, 7, 8, 9, 10; 144A.4792, subdivisions 
986.49 	1, 2, 5, 10; 144A.4793, subdivision 6; 144A.4797, subdivision 3; 144A.4798; 
986.50 	144A.4799, subdivision 1; 144A.484, subdivision 1; 144A.53, subdivisions 1, 4, 
986.51 	by adding subdivisions; 144D.01, subdivision 1; 144D.02; 144D.04, by adding a 
986.52 	subdivision; 144D.09; 144G.01, subdivision 1; 145.56, subdivision 2; 146B.03, 
986.53 	by adding a subdivision; 147.012; 147.02, by adding a subdivision; 147A.06; 
986.54 	147A.07; 147B.02, subdivision 9, by adding a subdivision; 147C.15, subdivision 
986.55 	7, by adding a subdivision; 147D.17, subdivision 6, by adding a subdivision; 
986.56 	147D.27, by adding a subdivision; 147E.15, subdivision 5, by adding a subdivision; 
986.57 	147E.40, subdivision 1; 147F.07, subdivision 5, by adding subdivisions; 147F.17, 
986.58 	subdivision 1; 148.59; 148.7815, subdivision 1; 148E.180; 149A.40, subdivision 
987.1 	11; 149A.95, subdivision 3; 150A.06, subdivision 1a, by adding subdivisions; 
987.2 	150A.091, by adding subdivisions; 151.15, by adding subdivisions; 151.19, 
987.3 	subdivision 1; 151.214, subdivision 2; 151.46; 151.71, by adding a subdivision; 
987.4 	152.11, subdivision 2, by adding a subdivision; 152.126, subdivisions 2, 6, 10; 
987.5 	155A.25, subdivision 1a; 155A.28, by adding a subdivision; 160.263, subdivision 
987.6 	2; 160.295, subdivision 5; 161.115, subdivision 111; 161.14, by adding 
987.7 	subdivisions; 161.32, subdivision 2; 168.013, subdivision 6; 168.10, subdivision 
987.8 	1h; 168.101, subdivision 2a; 168.127, subdivisions 4, 6; 168.27, by adding 
987.9 	subdivisions; 168.301, subdivision 3; 168.326; 168.33, subdivision 8a, by adding 
987.10 	a subdivision; 168.345, subdivision 2; 168.346, subdivision 1; 168A.02, subdivision 
987.11 	1; 168A.12, subdivision 2; 168A.151, subdivision 1; 168A.17, by adding a 
987.12 	subdivision; 168A.29, subdivision 1; 169.011, subdivisions 5, 9, 60; 169.14, 
987.13 	subdivision 5; 169.18, subdivisions 3, 10, 11, 12; 169.20, by adding a subdivision; 
987.14 	169.222, subdivisions 1, 4; 169.26, subdivision 1; 169.28; 169.29; 169.442, by 
987.15 	adding a subdivision; 169.448, subdivision 1; 169.4503, subdivisions 5, 13, by 
987.16 	adding a subdivision; 169.475, subdivision 2; 169.55, subdivision 1; 169.57, 
987.17 	subdivision 3; 169.64, subdivision 3, by adding a subdivision; 169.81, subdivision 
987.18 	5, by adding a subdivision; 169.8261, subdivision 2; 169.829, by adding a 
987.19 	subdivision; 169.87, subdivision 6; 169.92, subdivision 4; 169A.24, subdivision 
987.20 	1; 169A.55, subdivision 4; 171.041; 171.07, subdivision 1a; 171.16, subdivisions 
987.21 	2, 3; 171.18, subdivision 1; 171.24; 174.12, subdivision 8; 174.66; 175A.05; 
987.22 	176.011, subdivision 15; 176.101, subdivisions 2, 2a, 4; 176.102, subdivision 11; 
987.23 	176.136, subdivision 1b; 176.231, subdivision 9; 176.83, subdivision 5; 180.03, 
987.24 	subdivisions 2, 3, 4; 180.10; 201.022, by adding subdivisions; 205A.07, subdivision 
987.25 	2; 214.075, subdivisions 1, 4, 5, 6; 214.077; 214.10, subdivision 8; 214.12, by 
987.26 	adding a subdivision; 216B.16, by adding subdivisions; 216B.1641; 216B.2422, 
987.27 	subdivision 1, by adding a subdivision; 216D.04, by adding a subdivision; 216G.01, 
987.28 	subdivision 3; 221.031, subdivision 2d, by adding a subdivision; 221.0314, 
987.29 	subdivision 9; 221.036, subdivisions 1, 3; 221.122, subdivision 1; 221.161, 
987.30 	subdivision 1, by adding a subdivision; 221.171, subdivision 1; 240.01, by adding 
987.31 	a subdivision; 240.02, subdivision 6; 240.08, subdivision 5; 240.131, subdivision 
987.32 	7; 240.22; 242.192; 243.166, subdivisions 1b, 2, 4, 4b, 4c, 5, 6, 7, 7a; 245.4889, 
987.33 	by adding a subdivision; 245A.04, subdivision 7, by adding a subdivision; 
987.34 	245A.175; 245C.02, by adding a subdivision; 245C.12; 245C.22, subdivision 4; 
987.35 	245D.071, subdivision 5; 245D.091, subdivisions 2, 3, 4; 254A.035, subdivision 
987.36 	2; 254B.02, subdivision 1; 254B.06, subdivision 1; 256.01, subdivision 14b; 
987.37 	256B.04, subdivisions 14, 21; 256B.0625, subdivisions 13, 13e, 13f, by adding 
987.38 	subdivisions; 256B.0659, subdivisions 3a, 11, 21, 24, 28, by adding a subdivision; 
987.39 	256B.0915, subdivision 6; 256B.092, subdivisions 1b, 1g; 256B.4914, subdivision 
987.40 	4; 256B.5012, by adding a subdivision; 256I.04, by adding subdivisions; 256K.45, 
987.41 	subdivision 2; 256R.53, subdivision 2; 257.57, subdivisions 1, 2, by adding a 
987.42 	subdivision; 257.75, subdivision 4; 260.012; 260.835, subdivision 2; 268.035, 
987.43 	subdivisions 4, 12; 268.044, subdivisions 2, 3; 268.047, subdivision 3; 268.051, 
987.44 	subdivisions 2a, 3; 268.053, subdivision 1; 268.057, subdivision 5; 268.059; 
987.45 	268.066; 268.067; 268.069, subdivision 1; 268.085, subdivisions 3, 3a; 268.095, 
987.46 	subdivision 6a; 268.105, subdivision 6; 268.145, subdivision 1; 270C.13, 
987.47 	subdivision 1; 298.28, subdivision 9a; 299A.01, by adding a subdivision; 299A.705; 
987.48 	299A.707, by adding a subdivision; 299C.093; 299C.17; 299D.085, by adding a 
987.49 	subdivision; 299F.30, subdivisions 1, 2; 325F.71; 326B.106, subdivision 9; 
987.50 	326B.815, subdivision 1; 327.31, by adding a subdivision; 327B.041; 327C.095, 
987.51 	subdivisions 4, 6, 12, 13, by adding a subdivision; 349A.06, subdivision 11; 
987.52 	357.021, subdivision 2b; 360.013, by adding a subdivision; 360.017, subdivision 
987.53 	1; 360.021, subdivision 1; 360.024; 360.062; 360.063, subdivisions 1, 3; 360.064, 
987.54 	subdivision 1; 360.065, subdivision 1; 360.066, subdivision 1; 360.067, by adding 
987.55 	a subdivision; 360.071, subdivision 2; 360.305, subdivision 6; 394.22, by adding 
987.56 	a subdivision; 394.23; 394.231; 394.25, subdivision 3; 462.352, by adding a 
987.57 	subdivision; 462.355, subdivision 1; 462.357, subdivision 9, by adding a 
987.58 	subdivision; 462A.33, subdivisions 1, 2; 462A.37, subdivisions 1, 2; 465.73; 
988.1 	471.59, subdivision 1; 473.13, by adding subdivisions; 473.386, subdivision 3, by 
988.2 	adding a subdivision; 473.4051, subdivision 3; 473.606, subdivision 5; 474A.02, 
988.3 	by adding subdivisions; 474A.03, subdivision 1; 474A.04, subdivision 1a; 
988.4 	474A.047, subdivisions 1, 2; 474A.061; 474A.062; 474A.091; 474A.131; 474A.14; 
988.5 	474A.21; 475.58, subdivision 4; 507.18, subdivision 2, by adding subdivisions; 
988.6 	518.145, subdivision 2; 518A.32, subdivision 3; 518A.685; 574.26, subdivision 
988.7 	1a; 590.11, subdivisions 1, 2, 5, 7; 609.015, subdivision 1; 609.095; 609.2231, 
988.8 	subdivision 8; 609.341, subdivision 10; 609.342, subdivision 1; 609.343, 
988.9 	subdivision 1; 609.344, subdivision 1; 609.345, subdivision 1; 609.3451, 
988.10 	subdivision 1; 609.746, subdivision 1; 611.365, subdivisions 2, 3; 611.367; 611.368; 
988.11 	617.246, subdivisions 2, 3, 4, 7; 617.247, subdivisions 3, 4, 9; 626.556, subdivision 
988.12 	10; 626.557, subdivisions 3, 4, 9a, 9b, 9c, 12b, 14, 17; 626.8452, by adding a 
988.13 	subdivision; 626A.08, subdivision 2; 626A.37, subdivision 4; 631.40, subdivision 
988.14 	1a; 641.15, subdivision 3a; Minnesota Statutes 2017 Supplement, sections 3.8853, 
988.15 	subdivisions 1, 2, by adding subdivisions; 3.972, subdivision 4; 3.98, subdivision 
988.16 	1; 6.481, subdivision 3; 13.69, subdivision 1; 15A.083, subdivision 7; 16A.152, 
988.17 	subdivision 2; 18C.70, subdivision 5; 18C.71, subdivision 4; 84.01, subdivision 
988.18 	6; 84.91, subdivision 1; 84.925, subdivision 1; 84.9256, subdivision 1; 84D.03, 
988.19 	subdivisions 3, 4; 84D.108, subdivisions 2b, 2c; 85.0146, subdivision 1; 86B.331, 
988.20 	subdivision 1; 97A.075, subdivision 1; 103G.2242, subdivision 1; 103I.005, 
988.21 	subdivisions 2, 8a, 17a; 103I.205, subdivisions 1, 4; 103I.208, subdivision 1; 
988.22 	103I.235, subdivision 3; 103I.601, subdivision 4; 116.0714; 116C.779, subdivision 
988.23 	1; 116C.7792; 119B.011, subdivision 20; 119B.025, subdivision 1; 119B.06, 
988.24 	subdivision 1; 119B.09, subdivision 1; 119B.095, subdivision 2, by adding a 
988.25 	subdivision; 119B.13, subdivision 1; 120B.021, subdivision 1; 120B.122, 
988.26 	subdivision 1; 120B.125; 120B.30, subdivision 1; 120B.35, subdivision 3; 120B.36, 
988.27 	subdivision 1; 121A.335, subdivisions 3, 5; 122A.07, by adding a subdivision; 
988.28 	122A.09, subdivision 2, by adding a subdivision; 122A.18, subdivision 8; 
988.29 	122A.187, subdivision 3, by adding a subdivision; 122A.20, subdivisions 1, 2; 
988.30 	122A.40, subdivision 13; 122A.41, subdivision 6; 123B.03, subdivisions 1, 2; 
988.31 	123B.41, subdivision 2; 123B.52, subdivision 7; 124D.09, subdivision 3; 124D.151, 
988.32 	subdivisions 5, 6; 124D.165, subdivisions 2, 3, 4; 124D.549; 124D.68, subdivision 
988.33 	2; 124D.99, subdivisions 3, 5; 136A.1275, subdivisions 2, 3; 136A.1789, 
988.34 	subdivision 2; 136A.246, subdivision 4; 136A.646; 136A.672, by adding a 
988.35 	subdivision; 136A.822, subdivision 6; 136A.8295, by adding a subdivision; 
988.36 	144A.472, subdivision 7; 144A.474, subdivision 11; 144A.4796, subdivision 2; 
988.37 	144A.4799, subdivision 3; 144D.04, subdivision 2; 147.01, subdivision 7; 147A.28; 
988.38 	147B.08; 147C.40; 152.105, subdivision 2; 155A.30, subdivision 12; 160.02, 
988.39 	subdivision 1a; 168.013, subdivision 1a; 169.18, subdivision 7; 169.442, subdivision 
988.40 	5; 169.64, subdivision 8; 169.829, subdivision 4; 171.06, subdivision 2; 171.30, 
988.41 	subdivisions 1, 2a; 171.306, subdivisions 1, 2; 171.3215, subdivisions 2, 3; 175.46, 
988.42 	subdivision 13; 216B.1691, subdivision 2f; 216B.241, subdivision 1d; 216B.62, 
988.43 	subdivision 3b; 216C.417, subdivision 2; 245.4889, subdivision 1; 245A.03, 
988.44 	subdivision 7; 245A.06, subdivision 8; 245A.11, subdivision 2a; 245A.50, 
988.45 	subdivision 7; 245C.22, subdivision 5; 245D.03, subdivision 1; 245G.05, 
988.46 	subdivision 1; 254A.03, subdivision 3; 254B.03, subdivision 2; 254B.12, 
988.47 	subdivision 3; 256.045, subdivision 3; 256.969, subdivision 9; 256B.0625, 
988.48 	subdivisions 3b, 56a; 256B.0911, subdivisions 1a, 3a, 3f, 5; 256B.0915, subdivision 
988.49 	3a; 256B.0921; 256B.0941, subdivision 3; 256B.49, subdivision 13; 256B.4914, 
988.50 	subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 10a; 256I.03, subdivision 8; 256I.04, subdivision 
988.51 	2b; 256I.05, subdivision 3; 268.035, subdivisions 15, 20; 268.046, subdivision 1; 
988.52 	268.07, subdivision 1; 268.085, subdivision 13a; 268.095, subdivision 6; 268.18, 
988.53 	subdivisions 2b, 5; 298.2215; 298.227; 364.09; 462A.2035, subdivisions 1, 1b; 
988.54 	473.4051, subdivision 2; 473.4485, subdivision 2; 475.59, subdivision 1; 609A.03, 
988.55 	subdivision 7a; 626.556, subdivisions 2, 3, 10e; Laws 2007, chapter 45, article 1, 
988.56 	section 4; Laws 2010, chapter 361, article 4, section 78; Laws 2014, chapter 312, 
988.57 	article 2, section 14, as amended; article 11, section 38, subdivisions 5, 6; article 
988.58 	27, section 76; Laws 2016, chapter 189, article 3, sections 3, subdivision 5; 4; 48; 
989.1 	article 25, sections 61; 62, subdivision 15; Laws 2017, chapter 88, article 1, section 
989.2 	2, subdivisions 2, 4, 5; Laws 2017, chapter 89, article 1, section 2, subdivisions 
989.3 	18, 20, 29, 31, 32, 33, 34, 40; Laws 2017, chapter 93, article 1, sections 3, 
989.4 	subdivision 6; 4; article 2, sections 155, subdivision 5; 163; Laws 2017, chapter 
989.5 	94, article 1, sections 2, subdivisions 2, as amended, 3; 4, subdivision 5; 6; 7, 
989.6 	subdivision 7; 9; article 10, sections 28; 29; Laws 2017, First Special Session 
989.7 	chapter 1, article 4, section 31; Laws 2017, First Special Session chapter 3, article 
989.8 	1, sections 2, subdivision 2; 4, subdivisions 1, 2, 4; Laws 2017, First Special 
989.9 	Session chapter 4, article 2, sections 1; 3; 9; 58; Laws 2017, First Special Session 
989.10 	chapter 5, article 1, section 19, subdivisions 2, 3, 4, 5, 6, 7, 9; article 2, sections 
989.11 	56; 57, subdivisions 2, 3, 4, 5, 6, 12, 14, 21, 23, 26, 34; article 3, sections 3; 4; 5; 
989.12 	6; 7; 8; 9; 10; 11; 12; 13; 14; 15; 16; 36; article 4, sections 11; 12, subdivisions 2, 
989.13 	as amended, 3, 4, 5; article 5, section 14, subdivisions 2, 3, 4; article 6, section 3, 
989.14 	subdivisions 2, 3, 4; article 7, section 2, subdivision 5; article 8, section 10, 
989.15 	subdivisions 3, 5a, 6, 12; article 9, section 2, subdivisions 2, 7; article 10, section 
989.16 	6, subdivision 2; article 11, sections 9, subdivision 2; 10; 12; 13; Laws 2017, First 
989.17 	Special Session chapter 6, article 3, section 49; article 8, sections 71; 72; 74; article 
989.18 	10, section 144; article 12, section 2, subdivision 4; article 18, sections 3, 
989.19 	subdivisions 2, 3; 16, subdivision 2; proposing coding for new law in Minnesota 
989.20 	Statutes, chapters 3; 5; 11A; 16E; 17; 62J; 62Q; 97A; 103B; 115; 115B; 116C; 
989.21 	120B; 121A; 122A; 136A; 137; 144; 144D; 144G; 147A; 147B; 147C; 147D; 
989.22 	147E; 147F; 151; 168A; 174; 176; 219; 245A; 245C; 256; 256B; 256K; 260C; 
989.23 	299A; 299C; 327; 360; 383A; repealing Minnesota Statutes 2016, sections 16A.97; 
989.24 	16A.98; 120B.299, subdivisions 7, 8, 9, 11; 123A.26, subdivision 3; 125A.75, 
989.25 	subdivision 9; 126C.16, subdivisions 1, 3; 126C.17, subdivision 9a; 128C.02, 
989.26 	subdivision 6; 136A.15, subdivisions 2, 7; 136A.1701, subdivision 12; 144A.45, 
989.27 	subdivision 6; 144A.479, subdivision 2; 144A.481; 151.55; 155A.28, subdivisions 
989.28 	1, 3, 4; 168.013, subdivision 21; 169A.33, subdivision 1; 214.075, subdivision 8; 
989.29 	216B.2423; 221.161, subdivisions 2, 3, 4; 256B.0705; 268.053, subdivisions 4, 5; 
989.30 	360.063, subdivision 4; 360.065, subdivision 2; 360.066, subdivisions 1a, 1b; 
989.31 	401.13; 471.9996, subdivision 2; 609.349; Minnesota Statutes 2017 Supplement, 
989.32 	sections 3.98, subdivision 4; 122A.09, subdivision 1; 146B.02, subdivision 7a; 
989.33 	169A.07; 256B.0625, subdivision 31c; Laws 2016, chapter 189, article 25, section 
989.34 	62, subdivision 16; Laws 2017, First Special Session chapter 4, article 2, section 
989.35 	59; Minnesota Rules, parts 5600.0605, subparts 5, 8; 8700.7620; 8710.0300, 
989.36 	subparts 1, 1a, 2, 2a, 2b, 3, 5, 6, 7, 8, 9, 10, 11; 8710.1000; 8710.1050; 8710.1250; 
989.37 	8710.1400; 8710.1410; 8710.2100, subparts 1, 2; 9530.6800; 9530.6810.

990.1	We request the adoption of this report and repassage of the bill.
	
990.2	Senate Conferees:
........			
990.3	........
		........
	
990.4	Julie A. Rosen
		Michelle R. Benson
	
990.5	........
		........
	
990.6	Mary Kiffmeyer
		Warren Limmer
	
990.7	........
			
990.8	Scott J.  Newman
			
990.9	House Conferees:
........			
990.10	........
		........
	
990.11	Jim Knoblach
		Jenifer Loon
	
990.12	........
		........
	
990.13	Paul Torkelson
		Pat Garofalo
	
990.14	........
			
990.15	Gene Pelowski Jr.