Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

CHAPTER 127--H.F.No. 5247

An act

relating to the operation and financing of state government; modifying trunk highway bonds, transportation policy, combative sports, construction codes and licensing, the Bureau of Mediation Services, the Public Employee Labor Relations Act, employee misclassification, earned sick and safe time, University of Minnesota collective bargaining, broadband and pipeline safety, housing policy, and transportation network companies; expediting rental assistance; establishing registration for transfer care specialists; establishing licensure for behavior analysts; establishing licensure for veterinary technicians and a veterinary institutional license; modifying provisions of veterinary supervision; modifying specialty dentist licensure and dental assistant licensure by credentials; removing additional collaboration requirements for physician assistants to provide certain psychiatric treatment; modifying social worker provisional licensure; establishing guest licensure for marriage and family therapists; modifying pharmacy provisions for certain reporting requirements and change of ownership or relocation; modifying higher education policy provisions; amending the definition of trigger activator; increasing penalties for transferring firearms to certain persons who are ineligible to possess firearms; amending agriculture policy provisions; establishing and modifying agriculture programs; providing broadband appropriation transfer authority; requiring an application for federal broadband aid; adding and modifying provisions governing energy policy; establishing the Minnesota Energy Infrastructure Permitting Act; modifying provisions related to disability services, aging services, substance use disorder treatment services, priority admissions to state-operated programs and civil commitment, and Direct Care and Treatment; modifying provisions related to licensing of assisted living facilities; modifying provisions governing the Department of Human Services, human services health care policy, health care finance, and licensing policy; modifying provisions governing the Department of Health, health policy, health insurance, and health care; modifying provisions governing pharmacy practice and behavioral health; establishing an Office of Emergency Medical Services and making conforming changes; modifying individual income taxes, minerals taxes, tax-forfeited property, and miscellaneous tax provisions; modifying state employee compensation; modifying paid leave provisions; imposing penalties; authorizing administrative rulemaking; making technical changes; requiring reports; appropriating money;

amending Minnesota Statutes 2022, sections 3.7371, subdivisions 2, 3, by adding subdivisions; 13.46, subdivisions 1, as amended, 10, as amended; 13.6905, by adding a subdivision; 13.824, subdivision 1, by adding a subdivision; 16A.055, subdivision 1a, by adding a subdivision; 17.116, subdivision 2; 17.133, subdivision 1; 18B.01, by adding a subdivision; 18B.26, subdivision 6; 18B.28, by adding a subdivision; 18B.305, subdivision 2; 18B.32, subdivisions 1, 3, 4, 5; 18B.33, subdivisions 1, 5, 6; 18B.34, subdivisions 1, 4; 18B.35, subdivision 1; 18B.36, subdivisions 1, 2; 18B.37, subdivisions 2, 3; 18C.005, subdivision 33, by adding a subdivision; 18C.115, subdivision 2; 18C.215, subdivision 1; 18C.221; 18C.70, subdivisions 1, 5; 18C.71, subdivisions 1, 2, 4, by adding a subdivision; 18C.80, subdivision 2; 18D.301, subdivision 1; 28A.10; 28A.151, subdivisions 1, 2, 3, 5, by adding a subdivision; 28A.21, subdivision 6; 31.74; 31.94; 32D.30; 41B.039, subdivision 2; 41B.04, subdivision 8; 41B.042, subdivision 4; 41B.043, subdivision 1b; 41B.045, subdivision 2; 41B.047, subdivision 1; 43A.05, subdivision 3; 43A.18, subdivisions 2, 3, 9; 43A.24, by adding a subdivision; 62A.0411; 62A.15, subdivision 4, by adding a subdivision; 62A.28, subdivision 2; 62D.02, subdivision 7; 62D.04, subdivision 5; 62D.12, subdivision 19; 62D.14, subdivision 1; 62D.20, subdivision 1; 62D.22, subdivision 5, by adding a subdivision; 62J.49, subdivision 1; 62J.61, subdivision 5; 62M.01, subdivision 3; 62M.02, subdivisions 1a, 5, 11, 12, 21, by adding a subdivision; 62M.04, subdivision 1; 62M.05, subdivision 3a; 62M.07, subdivisions 2, 4, by adding a subdivision; 62M.10, subdivisions 7, 8; 62M.17, subdivision 2; 62Q.097, by adding a subdivision; 62Q.14; 62Q.19, subdivisions 3, 5, by adding a subdivision; 62Q.73, subdivision 2; 62V.05, subdivision 12; 62V.08; 62V.11, subdivision 4; 65B.472; 103I.621, subdivisions 1, 2; 116C.83, subdivision 6; 116J.395, subdivision 6, by adding subdivisions; 116J.396, by adding a subdivision; 116J.871, subdivision 4; 123B.53, subdivision 1; 134A.09, subdivision 2a; 134A.10, subdivision 3; 135A.15, as amended; 136A.091, subdivision 3; 136A.1241, subdivision 3; 136A.1701, subdivisions 4, 7; 136A.29, subdivision 9; 136A.62, by adding subdivisions; 136A.63, subdivision 1; 136A.646; 136A.65, subdivision 4; 136A.675, subdivision 2; 136A.69, subdivision 1; 136A.821, subdivision 5, by adding a subdivision; 136A.822, subdivisions 1, 2, 6, 7, 8; 136A.824, subdivisions 1, 2; 136A.828, subdivision 3, by adding a subdivision; 136A.829, subdivision 3, by adding a subdivision; 144.05, subdivisions 6, 7, by adding a subdivision; 144.0572, subdivision 1; 144.058; 144.0724, subdivisions 2, 3a, 4, 6, 7, 8, 9, 11; 144.1464, subdivisions 1, 2, 3; 144.1501, subdivision 5; 144.1911, subdivision 2; 144.212, by adding a subdivision; 144.216, subdivision 2, by adding subdivisions; 144.218, by adding a subdivision; 144.292, subdivision 6; 144.293, subdivisions 2, 4, 9, 10; 144.493, by adding a subdivision; 144.494, subdivision 2; 144.551, subdivision 1; 144.555, subdivisions 1a, 1b, 2, by adding subdivisions; 144.605, by adding a subdivision; 144.7067, subdivision 2; 144.99, subdivision 3; 144A.10, subdivisions 15, 16; 144A.471, by adding a subdivision; 144A.474, subdivision 13; 144A.61, subdivision 3a; 144A.70, subdivisions 3, 5, 6, 7; 144A.71, subdivision 2, by adding a subdivision; 144A.72, subdivision 1; 144A.73; 144E.001, subdivision 3a, by adding subdivisions; 144E.101, by adding a subdivision; 144E.16, subdivisions 5, 7; 144E.19, subdivision 3; 144E.27, subdivisions 3, 5, 6; 144E.28, subdivisions 3, 5, 6, 8; 144E.285, subdivisions 1, 2, 4, 6, by adding subdivisions; 144E.287; 144E.305, subdivision 3; 144G.08, subdivision 29; 144G.10, by adding a subdivision; 144G.16, subdivision 6; 144G.41, subdivision 1, by adding subdivisions; 144G.63, subdivisions 1, 4; 144G.64; 145.61, subdivision 5; 146B.03, subdivision 7a; 146B.10, subdivisions 1, 3; 148.511; 148.512, subdivision 17a; 148.513, subdivisions 1, 2, 3, by adding a subdivision; 148.514, subdivision 2; 148.515, subdivision 1; 148.518; 148.519, subdivision 1, by adding a subdivision; 148.5191, subdivision 1, by adding a subdivision; 148.5192, subdivisions 1, 2, 3; 148.5193, subdivision 1, by adding a subdivision; 148.5194, subdivision 8, by adding a subdivision; 148.5195, subdivisions 5, 6; 148.5196, subdivision 3; 148D.061, subdivisions 1, 8; 148D.062, subdivisions 3, 4; 148D.063, subdivisions 1, 2; 148E.055, by adding subdivisions; 149A.01, subdivision 3; 149A.02, subdivisions 3, 3b, 13a, 16, 23, 26a, 27, 35, 37c, by adding subdivisions; 149A.03; 149A.09; 149A.11; 149A.60; 149A.61, subdivisions 4, 5; 149A.62; 149A.63; 149A.65; 149A.70, subdivisions 1, 2, 3, 4, 5, 7; 149A.71, subdivisions 2, 4; 149A.72, subdivisions 3, 9; 149A.73, subdivision 1; 149A.74, subdivision 1; 149A.90, subdivisions 2, 4, 5; 149A.93, subdivision 3; 149A.94, subdivisions 1, 3, 4; 149A.97, subdivision 2; 150A.06, subdivisions 1c, 8; 151.01, subdivisions 23, 27; 151.065, subdivision 7, by adding subdivisions; 151.066, subdivisions 1, 2, 3; 151.212, by adding a subdivision; 151.37, by adding a subdivision; 151.74, subdivision 6; 156.001, by adding subdivisions; 156.07; 156.12, subdivisions 2, 4; 161.089; 161.14, by adding a subdivision; 161.3203, subdivision 4; 161.45, by adding subdivisions; 161.46, subdivision 1; 162.02, by adding a subdivision; 162.081, subdivision 4; 162.09, by adding a subdivision; 162.145, subdivision 5; 168.09, subdivision 7; 168.092; 168.127; 168.301, subdivision 3; 168.33, by adding a subdivision; 168A.10, subdivision 2; 168A.11, subdivisions 1, 2; 168B.035, subdivision 3; 169.011, by adding subdivisions; 169.04; 169.06, by adding subdivisions; 169.14, subdivision 10, by adding subdivisions; 169.18, by adding a subdivision; 169.21, subdivision 6; 169.222, subdivisions 2, 6a, 6b; 169.346, subdivision 2; 169.974, subdivision 5; 169.99, subdivision 1; 171.01, by adding subdivisions; 171.06, subdivision 3b; 171.061, by adding a subdivision; 171.12, by adding a subdivision; 171.13, subdivision 9; 171.16, subdivision 3; 174.02, by adding a subdivision; 174.185, subdivisions 2, 3, by adding subdivisions; 174.40, subdivision 3; 174.75, subdivisions 1, 2, by adding a subdivision; 177.27, subdivision 3; 179A.041, subdivision 2; 179A.09, by adding subdivisions; 179A.11, subdivisions 1, 2, by adding a subdivision; 179A.12, subdivision 5; 179A.13, subdivisions 1, 2; 179A.40, subdivision 1; 179A.54, subdivision 5; 181.171, subdivision 1; 181.722; 181.723; 181.960, subdivision 3; 214.025; 214.04, subdivision 2a; 214.29; 214.31; 214.355; 216A.037, subdivision 1; 216A.07, subdivision 3; 216B.098, by adding a subdivision; 216B.16, subdivisions 6c, 8; 216B.17, by adding a subdivision; 216B.2402, subdivisions 4, 10, by adding a subdivision; 216B.2403, subdivisions 2, 3, 5, 8; 216B.241, subdivisions 1c, 2, 11, 12; 216B.2421, subdivision 2; 216B.2425, subdivisions 1, 2, by adding a subdivision; 216B.2427, subdivision 1, by adding a subdivision; 216B.243, subdivisions 3, 3a, 4, 9; 216B.246, subdivision 3; 216C.10; 216C.435, subdivisions 3a, 3b, 4, 10, by adding subdivisions; 216C.436, subdivisions 1, 4, 7, 8, 10; 216E.02, subdivision 1; 216E.08, subdivision 2; 216E.11; 216E.13; 216E.14; 216E.15; 216E.16; 216E.18, subdivision 2a; 221.0255, subdivisions 4, 9, by adding a subdivision; 232.21, subdivisions 3, 7, 11, 12, 13; 245.462, subdivision 6; 245.4663, subdivision 2; 245.821, subdivision 1; 245.825, subdivision 1; 245A.04, by adding a subdivision; 245A.043, subdivisions 2, 4, by adding subdivisions; 245A.07, subdivision 6; 245A.11, subdivision 2a; 245C.05, subdivision 5; 245C.10, subdivision 18; 245C.14, subdivision 1, by adding a subdivision; 245C.15, subdivisions 3, 4; 245C.22, subdivision 4; 245C.24, subdivisions 2, 5; 245C.30, by adding a subdivision; 245F.09, subdivision 2; 245F.14, by adding a subdivision; 245F.17; 245G.07, subdivision 4; 245G.08, subdivisions 5, 6; 245G.10, by adding a subdivision; 245G.22, subdivisions 6, 7; 245I.02, subdivisions 17, 19; 245I.04, subdivision 6; 245I.10, subdivision 9; 245I.11, subdivision 1, by adding a subdivision; 245I.20, subdivision 4; 245I.23, subdivisions 14, 19a; 246.018, subdivision 3, as amended; 246.129, as amended; 246.13, subdivision 2, as amended; 246.234, as amended; 246.36, as amended; 246.511, as amended; 252.27, subdivision 2b; 252.282, subdivision 1, by adding a subdivision; 254B.01, by adding subdivisions; 256.01, subdivision 41, by adding a subdivision; 256.88; 256.89; 256.90; 256.91; 256.92; 256.9657, subdivision 8, by adding a subdivision; 256.969, by adding subdivisions; 256.9755, subdivisions 2, 3; 256B.02, subdivision 11; 256B.035; 256B.056, subdivisions 1a, 10; 256B.0622, subdivisions 2a, 3a, 7a, 7d; 256B.0623, subdivision 5; 256B.0625, subdivisions 10, 12, 32, 39, by adding subdivisions; 256B.0757, subdivisions 4a, 4d; 256B.076, by adding a subdivision; 256B.0911, subdivisions 12, 17, 20; 256B.0913, subdivision 5a; 256B.0924, subdivision 3; 256B.0943, subdivisions 3, 12; 256B.0947, subdivision 5; 256B.434, by adding a subdivision; 256B.49, subdivision 16, by adding a subdivision; 256B.4911, by adding subdivisions; 256B.4912, subdivision 1; 256B.69, subdivisions 2, 4; 256B.76, subdivision 6; 256B.77, subdivision 7a; 256B.795; 256I.04, subdivision 2f; 256K.45, subdivision 2; 256L.12, subdivision 7; 256R.02, subdivision 20; 256S.07, subdivision 1; 256S.205, subdivisions 2, 3, 5, by adding a subdivision; 259.52, subdivisions 2, 4; 260E.33, subdivision 2, as amended; 270B.14, subdivision 17, by adding a subdivision; 270C.21; 273.135, subdivision 2; 275.065, by adding a subdivision; 276.04, by adding a subdivision; 276A.01, subdivision 17; 276A.06, subdivision 8; 279.06, subdivision 1; 281.23, subdivision 2; 282.01, subdivision 6; 282.241, subdivision 1; 282.301; 289A.08, subdivision 1; 297A.815, subdivision 3; 297F.01, subdivisions 10b, 19; 298.17; 298.2215, subdivision 1; 298.28, subdivision 8; 298.282, subdivision 1; 298.292, subdivision 2; 299E.01, subdivision 2; 317A.811, subdivision 1; 326B.081, subdivisions 3, 6, 8; 326B.082, subdivisions 1, 2, 4, 6, 7, 10, 11, 13, by adding a subdivision; 326B.701; 326B.89, subdivision 5; 341.28, by adding a subdivision; 341.29; 383B.145, subdivision 5; 430.01, subdivision 2; 430.011, subdivisions 1, 2, 3; 430.023; 430.031, subdivision 1; 430.13; 447.42, subdivision 1; 462A.02, subdivision 10; 462A.05, subdivisions 14a, 14b, 15, 15b, 21, 23; 462A.07, by adding subdivisions; 462A.21, subdivision 7; 462A.35, subdivision 2; 462A.37, by adding a subdivision; 462A.40, subdivisions 2, 3; 473.13, by adding a subdivision; 473.3927; 473.452; 480.15, by adding a subdivision; 524.3-801, as amended; 604A.04, subdivision 3; 624.7141; 626.892, subdivision 10; Minnesota Statutes 2023 Supplement, sections 3.855, subdivisions 2, 3, 6; 10.65, subdivision 2; 13.43, subdivision 6; 13.46, subdivision 2, as amended; 15.01; 15.06, subdivision 1, as amended; 15A.0815, subdivision 2; 15A.082, subdivisions 1, 3, 7; 17.055, subdivision 3; 17.133, subdivision 3; 17.134, subdivision 3, by adding a subdivision; 17.710; 18C.425, subdivision 6; 18K.06; 43A.08, subdivisions 1, 1a; 62J.84, subdivision 10; 62Q.46, subdivision 1; 62Q.473, by adding subdivisions; 82.75, subdivision 8; 116C.779, subdivision 1; 116C.7792; 116J.871, subdivisions 1, as amended, 2; 123B.935, subdivision 1; 135A.121, subdivision 2; 135A.161, by adding a subdivision; 135A.162, subdivision 2; 136A.1241, subdivision 5; 136A.1465, subdivisions 1, 2, 3, 4, 5; 136A.62, subdivision 3; 136A.833, subdivision 2; 136F.38, subdivision 3; 142A.03, by adding a subdivision; 144.0526, subdivision 1; 144.1501, subdivision 2; 144.1505, subdivision 2; 144.651, subdivision 10a; 144A.4791, subdivision 10; 144E.101, subdivisions 6, 7, as amended; 145.561, subdivision 4; 145D.01, subdivision 1; 148.5195, subdivision 3; 148.5196, subdivision 1; 148B.392, subdivision 2; 151.555, subdivisions 1, 4, 5, 6, 7, 8, 9, 11, 12; 151.74, subdivision 3; 152.126, subdivision 6; 161.178; 161.46, subdivision 2; 162.146, by adding a subdivision; 168.1259; 168.29; 169.011, subdivision 27; 169.223, subdivision 4; 171.06, subdivision 3; 171.0705, subdivision 2; 171.301, subdivisions 3, 6; 174.49, subdivision 6; 174.634, subdivision 2, by adding a subdivision; 177.27, subdivisions 1, 2, 4, 7; 177.50, by adding subdivisions; 179A.03, subdivisions 14, 18; 179A.041, subdivision 10; 179A.06, subdivision 6; 179A.07, subdivisions 8, 9; 179A.10, subdivision 2; 179A.12, subdivisions 2a, 6, 11; 181.032; 181.9445, subdivisions 4, 5, by adding a subdivision; 181.9446; 181.9447, subdivisions 1, 3, 5, 10, 11, by adding a subdivision; 181.9448, subdivisions 1, 2, 3; 216B.243, subdivision 8; 216C.08; 216C.09; 216C.331, subdivision 1; 216C.435, subdivision 8; 216C.436, subdivisions 1b, 2; 216E.06; 216E.07; 216E.10, subdivisions 1, 2, 3; 219.015, subdivision 2; 245.4889, subdivision 1; 245.735, subdivision 3; 245.91, subdivision 4; 245.991, subdivision 1; 245A.03, subdivisions 2, as amended, 7, as amended; 245A.043, subdivision 3; 245A.07, subdivision 1, as amended; 245A.11, subdivision 7; 245A.16, subdivision 1, as amended; 245A.211, subdivision 4; 245A.242, subdivision 2; 245C.02, subdivision 13e; 245C.031, subdivision 4; 245C.08, subdivision 1; 245C.15, subdivisions 2, 4a; 245C.31, subdivision 1; 245G.07, subdivision 2; 245G.22, subdivisions 2, 17; 245I.04, subdivision 19; 246.54, subdivisions 1a, 1b; 246C.01; 246C.02, as amended; 246C.04, as amended; 246C.05, as amended; 253B.10, subdivision 1, as amended; 254B.04, subdivision 1a; 254B.05, subdivisions 1, 5, as amended; 254B.19, subdivision 1; 256.043, subdivision 3; 256.0471, subdivision 1, as amended; 256.4764, subdivision 3; 256.9631; 256.969, subdivision 2b; 256.9756, subdivisions 1, 2; 256B.0622, subdivisions 7b, 8; 256B.0625, subdivisions 3a, 5m, 9, 13e, as amended, 13f, 13k, 16; 256B.064, subdivision 4; 256B.0671, subdivisions 3, 5; 256B.0701, subdivision 6; 256B.0911, subdivision 13; 256B.0913, subdivision 5, as amended; 256B.092, subdivision 1a; 256B.0947, subdivision 7; 256B.0949, subdivision 15; 256B.49, subdivision 13; 256B.764; 256B.766; 256D.01, subdivision 1a; 256I.05, subdivisions 1a, 11; 256L.03, subdivision 1; 256L.04, subdivision 10; 256R.55; 260.761, by adding a subdivision; 268B.01, subdivisions 3, 5, 8, 15, 23, 44, by adding subdivisions; 268B.04; 268B.06, subdivisions 2, 3, 4, 5, by adding a subdivision; 268B.07, subdivisions 1, 2, 3; 268B.085, subdivision 3; 268B.09, subdivisions 1, 6, 7; 268B.10, subdivisions 1, 2, 3, 6, 12, 16, 17, by adding subdivisions; 268B.14, subdivisions 3, 7, by adding subdivisions; 268B.15, subdivision 7; 268B.155, subdivision 2; 268B.185, subdivision 2; 268B.19; 268B.26; 268B.27, subdivision 2; 268B.29; 270B.14, subdivision 1; 290.0661, subdivisions 4, 8, by adding a subdivision; 297A.993, subdivision 2a; 298.018, subdivision 1; 298.28, subdivisions 7a, 16; 299A.642, subdivision 15; 326B.106, subdivision 1; 341.25; 341.28, subdivision 5; 341.30, subdivision 4; 341.321; 341.33, by adding a subdivision; 341.355; 357.021, subdivision 6; 462A.05, subdivisions 14, 45; 462A.22, subdivision 1; 462A.37, subdivisions 2, 5; 462A.38, subdivision 2; 462A.39, subdivision 2; 462A.395; 473.145; 473.3999; 473.4051, by adding a subdivision; 473.412, subdivisions 2, 3; 473.4465, subdivision 4; 477A.35, subdivisions 2, 4, 5, 6, by adding a subdivision; 477A.36, subdivisions 1, as amended, 4, 5, 6, as amended, by adding a subdivision; 609.67, subdivision 1; Laws 2020, chapter 73, section 8; Laws 2021, First Special Session chapter 5, article 1, section 2, subdivision 2; Laws 2021, First Special Session chapter 7, article 13, section 68; article 17, section 19, as amended; Laws 2022, chapter 42, section 2; Laws 2023, chapter 22, section 4, subdivision 2; Laws 2023, chapter 37, article 1, section 2, subdivisions 2, 5, 18, 25, 29, 32; article 2, sections 6, subdivisions 1, 2, 4, 5, by adding subdivisions; 12, subdivision 2; Laws 2023, chapter 41, article 1, sections 2, subdivisions 35, 36, 49, as amended; 4, subdivision 2; Laws 2023, chapter 43, article 1, sections 2; 4; article 2, section 142, subdivision 9; Laws 2023, chapter 52, article 19, section 120; Laws 2023, chapter 53, article 14, section 1; article 19, sections 2, subdivisions 1, 3, 5; 4; article 21, sections 6; 7; Laws 2023, chapter 57, article 1, section 6; Laws 2023, chapter 60, article 10, section 2, subdivision 2; Laws 2023, chapter 61, article 1, sections 60, subdivisions 1, 2; 67, subdivision 3; article 4, section 11; article 8, sections 1; 2; 3; 8; article 9, section 2, subdivisions 5, 14, 16, as amended, 18; Laws 2023, chapter 68, article 1, sections 3, subdivision 2; 4, subdivision 3; 20; article 4, sections 108; 126; Laws 2023, chapter 70, article 1, section 35; article 20, sections 2, subdivisions 5, 29, 31; 3, subdivision 2; 12, as amended; Laws 2024, chapter 79, article 1, sections 18; 23; 24; 25, subdivision 3; article 10, sections 1; 6; Laws 2024, chapter 80, article 2, sections 6, subdivisions 2, 3, by adding subdivisions; 10, subdivision 1; Laws 2024, chapter 113, section 1, subdivision 2; 2024 H.F. No. 5237, article 22, section 2, subdivisions 4, if enacted, 5, if enacted; proposing coding for new law in Minnesota Statutes, chapters 16A; 16B; 62A; 62C; 62D; 62J; 62M; 62Q; 135A; 136A; 137; 144; 144A; 144E; 144G; 145D; 148; 148B; 148E; 149A; 150A; 151; 156; 161; 168; 169; 181; 214; 216C; 216G; 219; 245C; 246C; 254B; 256; 256B; 256S; 268B; 282; 325F; 326B; 341; 346; 430; 462A; proposing coding for new law as Minnesota Statutes, chapters 181C; 216I; repealing Minnesota Statutes 2022, sections 3.7371, subdivision 7; 34.07; 62A.041, subdivision 3; 135A.16; 144.218, subdivision 3; 144.497; 144E.001, subdivision 5; 144E.01; 144E.123, subdivision 5; 144E.27, subdivisions 1, 1a; 144E.50, subdivision 3; 147A.09, subdivision 5; 148D.061, subdivision 9; 151.74, subdivision 16; 156.12, subdivision 6; 168.1297; 179.81; 179.82; 179.83, subdivision 1; 179.84, subdivision 1; 179.85; 216E.001; 216E.01, subdivisions 1, 2, 3, 4, 5, 7, 8, 9, 10; 216E.02; 216E.021; 216E.03, subdivisions 2, 3a, 3b, 4, 9; 216E.04, subdivisions 1, 3, 4, 5, 6, 7, 8, 9; 216E.05, subdivisions 1, 3; 216E.08, subdivisions 1, 4; 216E.18, subdivisions 1, 2; 216F.01; 216F.011; 216F.012; 216F.015; 216F.02; 216F.03; 216F.05; 216F.06; 216F.07; 216F.08; 216F.081; 245C.125; 246.41; 252.27, subdivisions 1a, 2, 3, 4a, 5, 6; 253C.01; 256.043, subdivision 4; 256B.0916, subdivision 10; 256B.79, subdivision 6; 256D.19, subdivisions 1, 2; 256D.20, subdivisions 1, 2, 3, 4; 256D.23, subdivisions 1, 2, 3; 256R.02, subdivision 46; 462A.209, subdivision 8; Minnesota Statutes 2023 Supplement, sections 3.855, subdivision 5; 62J.312, subdivision 6; 62Q.522, subdivisions 3, 4; 135A.162, subdivision 7; 216E.01, subdivisions 3a, 6, 9a; 216E.03, subdivisions 1, 3, 5, 6, 7, 10, 11; 216E.04, subdivision 2; 216E.05, subdivision 2; 216F.04; 245C.08, subdivision 2; 246C.03; 252.27, subdivision 2a; 268B.06, subdivision 7; 268B.08; 268B.10, subdivision 11; 268B.14, subdivision 5; 477A.35, subdivision 1; Laws 2023, chapter 25, section 190, subdivision 10; Laws 2023, chapter 37, article 2, section 13; Laws 2024, chapter 79, article 4, section 1, subdivision 3; Laws 2024, chapter 80, article 2, section 6, subdivision 4; Minnesota Rules, parts 1506.0010; 1506.0015; 1506.0020; 1506.0025; 1506.0030; 1506.0035; 1506.0040; 5520.0100; 5520.0110; 5520.0120, subparts 1, 2, 3, 4, 5, 6, 7; 5520.0200; 5520.0250, subparts 1, 2, 4; 5520.0300; 5520.0500, subparts 1, 2, 3, 4, 5, 6; 5520.0520; 5520.0540; 5520.0560; 5520.0600; 5520.0620; 5520.0700; 5520.0710; 5520.0800; 7850.1000; 7850.1100; 7850.1200; 7850.1300; 7850.1400; 7850.1500; 7850.1600; 7850.1700; 7850.1800; 7850.1900; 7850.2000; 7850.2100; 7850.2200; 7850.2300; 7850.2400; 7850.2500; 7850.2600; 7850.2700; 7850.2800; 7850.2900; 7850.3000; 7850.3100; 7850.3200; 7850.3300; 7850.3400; 7850.3500; 7850.3600; 7850.3700; 7850.3800; 7850.3900; 7850.4100; 7850.4200; 7850.4500; 7850.4600; 7850.4700; 7850.4800; 7850.4900; 7850.5000; 7850.5100; 7850.5200; 7850.5300; 7850.5400; 7850.5500; 7850.5600; 7854.0100; 7854.0200; 7854.0300; 7854.0400; 7854.0500; 7854.0600; 7854.0700; 7854.0800; 7854.0900; 7854.1000; 7854.1100; 7854.1200; 7854.1300; 7854.1400; 7854.1500.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

TRANSPORTATION APPROPRIATIONS

Section 1.

new text begin TRANSPORTATION APPROPRIATIONS.new text end

new text begin The sums shown in the columns marked "Appropriations" are added to the appropriations in Laws 2023, chapter 68, article 1, to the agencies and for the purposes specified in this article. The appropriations are from the trunk highway fund, or another named fund, and are available for the fiscal years indicated for each purpose. Amounts for "Total Appropriation" and sums shown in the corresponding columns marked "Appropriations by Fund" are summary only and do not have legal effect. The figures "2024" and "2025" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. "Each year" is each of fiscal years 2024 and 2025. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2024 new text end new text begin 2025 new text end

Sec. 2.

new text begin DEPARTMENT OF TRANSPORTATION new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 58,416,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2024 new text end new text begin 2025 new text end
new text begin General new text end new text begin -0- new text end new text begin 3,443,000 new text end
new text begin Special Revenue new text end new text begin -0- new text end new text begin 3,750,000 new text end
new text begin Trunk Highway new text end new text begin -0- new text end new text begin 51,223,000 new text end

new text begin The appropriations in this section are to the commissioner of transportation. new text end

new text begin The amounts that may be spent for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Multimodal Systems new text end

new text begin (a) Transit new text end new text begin -0- new text end new text begin 3,750,000 new text end

new text begin Notwithstanding the requirements under Minnesota Statutes, section 174.38, subdivision 3, paragraph (a), this appropriation is from the active transportation account in the special revenue fund for a grant to the city of Ramsey for design, environmental analysis, site preparation, and construction of the Mississippi Skyway Trail Bridge over marked U.S. Highways 10 and 169 in Ramsey to provide for a grade-separated crossing for pedestrians and nonmotorized vehicles. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner must not use any amount of this appropriation for administrative costs. This is a onetime appropriation and is available until June 30, 2028. new text end

new text begin (b) Passenger Rail new text end new text begin -0- new text end new text begin 1,000,000 new text end

new text begin This appropriation is from the general fund for a grant to the Ramsey County Regional Railroad Authority for a portion of the costs of insurance coverage related to rail-related incidents occurring at Union Depot in the city of St. Paul. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner must not use any amount of this appropriation for administrative costs. This is a onetime appropriation. new text end

new text begin Subd. 3. new text end

new text begin State Roads new text end

new text begin (a) Operations and Maintenance new text end new text begin -0- new text end new text begin 2,405,000 new text end

new text begin $300,000 in fiscal year 2025 is for rumble strips under Minnesota Statutes, section 161.1258. new text end

new text begin $1,000,000 in fiscal year 2025 is for landscaping improvements located within trunk highway rights-of-way under the Department of Transportation's community roadside landscape partnership program, with prioritization of tree planting as feasible. new text end

new text begin $1,000,000 is from the general fund for the traffic safety camera pilot program under Minnesota Statutes, section 169.147, and the evaluation and legislative report under article 3, sections 116 and 117. With the approval of the commissioner of transportation, any portion of this appropriation is available to the commissioner of public safety. This is a onetime appropriation and is available until June 30, 2029. new text end

new text begin $105,000 in fiscal year 2025 is for the cost of staff time to coordinate with the Public Utilities Commission relating to placement of high voltage transmission lines along trunk highways. new text end

new text begin (b) Program Planning and Delivery new text end new text begin -0- new text end new text begin 5,800,000 new text end

new text begin $3,000,000 in fiscal year 2025 is for implementation and development of statewide and regional travel demand modeling related to the requirements under Minnesota Statutes, section 161.178. This is a onetime appropriation and is available until June 30, 2026. new text end

new text begin $800,000 in fiscal year 2025 is for one or more grants to metropolitan planning organizations outside the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2, for modeling activities related to the requirements under Minnesota Statutes, section 161.178. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner must not use any amount of this appropriation for administrative costs. This is a onetime appropriation. new text end

new text begin $2,000,000 in fiscal year 2025 is to complete environmental documentation and for preliminary engineering and design for the reconstruction of marked Trunk Highway 55 from Hennepin County State-Aid Highway 19, north of the city of Loretto to Hennepin County Road 118 near the city of Medina. This is a onetime appropriation and is available until June 30, 2027. new text end

new text begin (c) State Road Construction new text end new text begin -0- new text end new text begin 10,900,000 new text end

new text begin $8,900,000 in fiscal year 2025 is for the acquisition, environmental analysis, predesign, design, engineering, construction, reconstruction, and improvement of trunk highway bridges, including design-build contracts, program delivery, consultant usage to support these activities, and the cost of payments to landowners for lands acquired for highway rights-of-way. Projects under this appropriation must follow eligible investment priorities identified in the Minnesota state highway investment plan under Minnesota Statutes, section 174.03, subdivision 1c. The commissioner may use up to 17 percent of this appropriation for program delivery. This is a onetime appropriation and is available until June 30, 2028. new text end

new text begin $1,000,000 in fiscal year 2025 is for predesign and design of intersection safety improvements along marked Trunk Highway 65 from the interchange with marked U.S. Highway 10 to 99th Avenue Northeast in the city of Blaine. This is a onetime appropriation. new text end

new text begin $1,000,000 in fiscal year 2025 is to design and construct trunk highway improvements associated with an interchange at U.S. Highway 169, marked Trunk Highway 282, and Scott County State-Aid Highway 9 in the city of Jordan, including accommodations for bicycles and pedestrians and for bridge and road construction. This is a onetime appropriation and is available until June 30, 2027. new text end

new text begin (d) Highway Debt Service new text end new text begin -0- new text end new text begin 468,000 new text end

new text begin This appropriation is for transfer to the state bond fund. If this appropriation is insufficient to make all transfers required in the year for which it is made, the commissioner of management and budget must transfer the deficiency amount as provided under Minnesota Statutes, section 16A.641, and notify the chairs and ranking minority members of the legislative committees with jurisdiction over transportation finance and the chairs of the senate Finance Committee and the house of representatives Ways and Means Committee of the amount of the deficiency. Any excess appropriation cancels to the trunk highway fund. new text end

new text begin Subd. 4. new text end

new text begin Local Roads new text end

new text begin 1,200,000 new text end

new text begin $1,000,000 in fiscal year 2025 is from the general fund for a grant to a political subdivision that (1) has a directly elected governing board, (2) is contained within a city of the first class, and (3) maintains sole jurisdiction over a roadway system within the city. This appropriation is for the design, engineering, construction, and reconstruction of roads on the roadway system. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner must not use any amount of this appropriation for administrative costs. This is a onetime appropriation and is available until June 30, 2027. new text end

new text begin $200,000 in fiscal year 2025 is from the general fund for a grant to the city of Shorewood to develop a transportation management organization along the marked Trunk Highway 7 corridor from the western border of Hennepin County to Interstate Highway 494. Money under this rider is available for developing a comprehensive study and financial plan for a transportation management organization in the cities and school districts along this corridor and connecting roadways. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner must not use any amount of this appropriation for administrative costs. This is a onetime appropriation. new text end

new text begin Subd. 5. new text end

new text begin Agency Management new text end

new text begin (a) Agency Services new text end new text begin -0- new text end new text begin 243,000 new text end

new text begin This appropriation is from the general fund for costs related to complete streets implementation training under Minnesota Statutes, section 174.75, subdivision 2a. new text end

new text begin (b) Buildings new text end new text begin -0- new text end new text begin 32,650,000 new text end

new text begin $20,100,000 in fiscal year 2025 is for the transportation facilities capital improvement program under Minnesota Statutes, section 174.595. This is a onetime appropriation and is available until June 30, 2028. new text end

new text begin $7,750,000 in fiscal year 2025 is for land acquisition, predesign, design, and construction of expanded truck parking at Big Spunk in Avon and Enfield Rest Areas and for the rehabilitation or replacement of truck parking information management system equipment at Department of Transportation-owned parking rest area locations. This is a onetime appropriation and is available until June 30, 2028. new text end

new text begin $4,800,000 in fiscal year 2025 is for predesign, design, engineering, environmental analysis and remediation, acquisition of land or permanent easements, and construction of one or more truck parking safety projects for the trunk highway system. Each truck parking safety project must expand truck parking availability in proximity to a trunk highway and be located in the Department of Transportation metropolitan district. In developing each project, the commissioner must seek partnerships with local units of government, established truck stop businesses, or a combination. Partnership activities may include but are not limited to parking site identification and review, financial assistance, donation of land, and project development activities. This is a onetime appropriation and is available until June 30, 2027. new text end

Sec. 3.

new text begin METROPOLITAN COUNCIL new text end

new text begin $ new text end new text begin -0- new text end new text begin 10,000,000 new text end

new text begin The appropriation in this section is from the general fund to the Metropolitan Council. new text end

new text begin This appropriation is for a grant to Hennepin County to administer the Blue Line light rail transit extension antidisplacement community prosperity program under article 3, sections 118 and 119. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the council must not use any amount of this appropriation for administrative costs. This is a onetime appropriation and is available until June 30, 2027. new text end

Sec. 4.

new text begin DEPARTMENT OF PUBLIC SAFETY new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 4,641,000 new text end

new text begin The appropriations in this section are to the commissioner of public safety. new text end

new text begin The amounts that may be spent for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Driver and Vehicle Services new text end

new text begin -0- new text end new text begin 3,241,000 new text end

new text begin The appropriations in this subdivision are from the driver and vehicle services operating account in the special revenue fund. new text end

new text begin $2,969,000 in fiscal year 2025 is for staff and related operating costs to support testing at driver's license examination stations. new text end

new text begin $100,000 in fiscal year 2025 is for costs related to the special license plate review committee study and report under article 3, section 131. This is a onetime appropriation and is available until June 30, 2026. new text end

new text begin $172,000 in fiscal year 2025 is for costs related to translating written materials and providing them to driver's license agents and deputy registrars as required under article 3, section 123. This is a onetime appropriation. new text end

new text begin Subd. 3. new text end

new text begin Traffic Safety new text end

new text begin -0- new text end new text begin 1,400,000 new text end

new text begin Notwithstanding Minnesota Statutes, section 299A.705, regarding the use of funds from this account, $1,200,000 in fiscal year 2025 is from the driver and vehicle services operating account in the special revenue fund for the Lights On grant program under Minnesota Statutes, section 169.515. The commissioner must contract with the Lights On! microgrant program to administer and operate the grant program. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner may use up to two percent of this appropriation for administrative costs. This is a onetime appropriation and is available until June 30, 2026. new text end

new text begin $200,000 in fiscal year 2025 is from the motorcycle safety account in the special revenue fund for the public education campaign on motorcycle operation under article 3, section 122. This is a onetime appropriation. new text end

Sec. 5.

new text begin APPROPRIATION; DEPARTMENT OF TRANSPORTATION. new text end

new text begin $15,560,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for trunk highway and local road projects, which may include but are not limited to feasibility and corridor studies, project development, predesign, preliminary and final design, engineering, environmental analysis and mitigation, right-of-way acquisition, construction, and associated infrastructure improvements. This appropriation is available for grants to local units of government. The commissioner may establish that a grant under this section does not require a nonstate contribution. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner must not use any amount of this appropriation for administrative costs. This is a onetime appropriation and is available until June 30, 2029. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 6.

new text begin APPROPRIATIONS; DEPARTMENT OF ADMINISTRATION. new text end

new text begin Subdivision 1. new text end

new text begin Minnesota Advisory Council on Infrastructure. new text end

new text begin $41,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of administration for purposes of the Minnesota Advisory Council on Infrastructure as provided under article 3, section 121, and Minnesota Statutes, sections 16B.357 to 16B.359. The base for this appropriation is $475,000 in fiscal year 2026 and $471,000 in fiscal year 2027. new text end

new text begin Subd. 2. new text end

new text begin Public-facing professional services. new text end

new text begin $43,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of administration for space costs incurred in fiscal years 2025, 2026, and 2027 by tenants that provide public-facing professional services on the Capitol complex. The commissioner of administration must designate one publicly accessible space on the complex for which this appropriation may be used. This is a onetime appropriation and is available until June 30, 2027. new text end

new text begin Subd. 3. new text end

new text begin Department of Transportation building. new text end

new text begin (a) The following are appropriated to the commissioner of administration for design, construction, and equipment required to upgrade the physical security elements and systems for the Department of Transportation building, attached tunnel systems, surrounding grounds, and parking facilities as identified in the 2017 Minnesota State Capitol complex physical security predesign and the updated assessment completed in 2022: new text end

new text begin (1) $1,350,000 in fiscal year 2025 from the trunk highway fund; and new text end

new text begin (2) $450,000 in fiscal year 2025 from the general fund. new text end

new text begin (b) This is a onetime appropriation and is available until June 30, 2028. new text end

new text begin Subd. 4. new text end

new text begin State Patrol headquarters. new text end

new text begin $22,500,000 in fiscal year 2025 is appropriated from the trunk highway fund to the commissioner of administration for design and land acquisition for a new headquarters building and support facilities for the State Patrol. This appropriation may also be used, as part of the first phase of the overall site development, to design the abatement of hazardous materials and demolition of any buildings located on the site and to demolish any buildings located on the site and abate hazardous materials. This is a onetime appropriation and is available until June 30, 2028. new text end

Sec. 7.

new text begin APPROPRIATION; DEPARTMENT OF COMMERCE. new text end

new text begin $46,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of commerce for an environmental review conducted by the Department of Commerce Energy Environmental Review and Analysis unit, relating to the placement of high voltage transmission lines along trunk highway rights-of-way. new text end

Sec. 8.

new text begin APPROPRIATION CANCELLATIONS; DEPARTMENT OF TRANSPORTATION. new text end

new text begin (a) $11,000,000 of the appropriation in fiscal year 2024 from the general fund for Infrastructure Investment and Jobs Act (IIJA) discretionary matches under Laws 2023, chapter 68, article 1, section 2, subdivision 5, paragraph (a), is canceled to the general fund. new text end

new text begin (b) $15,560,000 of the appropriation in fiscal year 2022 for trunk highway corridor studies and local road grants under Laws 2021, First Special Session chapter 5, article 1, section 6, is canceled to the general fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 9.

new text begin TRANSFER. new text end

new text begin $11,350,000 in fiscal year 2025 is transferred from the general fund to the small cities assistance account under Minnesota Statutes, section 162.145, subdivision 2. This is a onetime transfer. The amount transferred under this section must be allocated and distributed in the July 2024 payment. new text end

Sec. 10.

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

Subd. 2.

Multimodal Systems

(a) Aeronautics

(1) Airport Development and Assistance 24,198,000 18,598,000
Appropriations by Fund
2022 2023
General 5,600,000 -0-
Airports 18,598,000 18,598,000

This appropriation is from the state airports fund and must be spent according to Minnesota Statutes, section 360.305, subdivision 4.

$5,600,000 in fiscal year 2022 is from the general fund for a grant to the city of Karlstad for the acquisition of land, predesign, design, engineering, and construction of a primary airport runway.new text begin This appropriation is for Phase 1 of the project.new text end

Notwithstanding Minnesota Statutes, section 16A.28, subdivision 6, this appropriation is available for five years after the year of the appropriation. If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

If the commissioner of transportation determines that a balance remains in the state airports fund following the appropriations made in this article and that the appropriations made are insufficient for advancing airport development and assistance projects, an amount necessary to advance the projects, not to exceed the balance in the state airports fund, is appropriated in each year to the commissioner and must be spent according to Minnesota Statutes, section 360.305, subdivision 4. Within two weeks of a determination under this contingent appropriation, the commissioner of transportation must notify the commissioner of management and budget and the chairs, ranking minority members, and staff of the legislative committees with jurisdiction over transportation finance concerning the funds appropriated. Funds appropriated under this contingent appropriation do not adjust the base for fiscal years 2024 and 2025.

(2) Aviation Support Services 8,332,000 8,340,000
Appropriations by Fund
2022 2023
General 1,650,000 1,650,000
Airports 6,682,000 6,690,000

$28,000 in fiscal year 2022 and $36,000 in fiscal year 2023 are from the state airports fund for costs related to regulating unmanned aircraft systems.

(3) Civil Air Patrol 80,000 80,000

This appropriation is from the state airports fund for the Civil Air Patrol.

(b) Transit and Active Transportation 23,501,000 18,201,000

This appropriation is from the general fund.

$5,000,000 in fiscal year 2022 is for the active transportation program under Minnesota Statutes, section 174.38. This is a onetime appropriation and is available until June 30, 2025.

$300,000 in fiscal year 2022 is for a grant to the 494 Corridor Commission. The commissioner must not retain any portion of the funds appropriated under this section. The commissioner must make grant payments in full by December 31, 2021. Funds under this grant are for programming and service expansion to assist companies and commuters in telecommuting efforts and promotion of best practices. A grant recipient must provide telework resources, assistance, information, and related activities on a statewide basis. This is a onetime appropriation.

(c) Safe Routes to School 5,500,000 500,000

This appropriation is from the general fund for the safe routes to school program under Minnesota Statutes, section 174.40.

If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

(d) Passenger Rail 10,500,000 500,000

This appropriation is from the general fund for passenger rail activities under Minnesota Statutes, sections 174.632 to 174.636.

$10,000,000 in fiscal year 2022 is for final design and construction to provide for a second daily Amtrak train service between Minneapolis and St. Paul and Chicago. The commissioner may expend funds for program delivery and administration from this amount. This is a onetime appropriation and is available until June 30, 2025.

(e) Freight 8,342,000 7,323,000
Appropriations by Fund
2022 2023
General 2,464,000 1,445,000
Trunk Highway 5,878,000 5,878,000

$1,000,000 in fiscal year 2022 is from the general fund for procurement costs of a statewide freight network optimization tool. This is a onetime appropriation and is available until June 30, 2023.

$350,000 in fiscal year 2022 and $287,000 in fiscal year 2023 are from the general fund for two additional rail safety inspectors in the state rail safety inspection program under Minnesota Statutes, section 219.015. In each year, the commissioner must not increase the total assessment amount under Minnesota Statutes, section 219.015, subdivision 2, from the most recent assessment amount.

Sec. 11.

Laws 2023, chapter 68, article 1, section 3, subdivision 2, is amended to read:

Subd. 2.

Transit System Operations

deleted text begin 85,654,000 deleted text end new text begin 75,654,000 new text end 32,654,000

This appropriation is for transit system operations under Minnesota Statutes, sections 473.371 to 473.449.

deleted text begin $50,000,000deleted text end new text begin $40,000,000new text end in fiscal year 2024 is for a grant to Hennepin County for the Blue Line light rail transit extension project, including but not limited to predesign, design, engineering, environmental analysis and mitigation, right-of-way acquisition, construction, and acquisition of rolling stock. Of this amount, deleted text begin $40,000,000deleted text end new text begin $30,000,000new text end is available only upon entering a full funding grant agreement with the Federal Transit Administration by June 30, 2027. This is a onetime appropriation and is available until June 30, 2030.

$3,000,000 in fiscal year 2024 is for highway bus rapid transit project development in the marked U.S. Highway 169 and marked Trunk Highway 55 corridors, including but not limited to feasibility study, predesign, design, engineering, environmental analysis and remediation, and right-of-way acquisition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 12.

Laws 2023, chapter 68, article 1, section 4, subdivision 3, is amended to read:

Subd. 3.

State Patrol

(a) Patrolling Highways 154,044,000 141,731,000
Appropriations by Fund
2024 2025
General 387,000 37,000
H.U.T.D. 92,000 92,000
Trunk Highway 153,565,000 141,602,000

$350,000 in fiscal year 2024 is from the general fund for predesign of a State Patrol headquarters building and related storage and training facilities. The commissioner of public safety must work with the commissioner of administration to complete the predesign. This is a onetime appropriation and is available until June 30, 2027.

$14,500,000 in fiscal year 2024 is from the trunk highway fund to purchase and equip a helicopter for the State Patrol. This is a onetime appropriation and is available until June 30, 2025.

$2,300,000 in fiscal year 2024 is from the trunk highway fund to purchase a Cirrus single engine airplane for the State Patrol. This is a onetime appropriation and is available until June 30, 2025.

$1,700,000 in each year is from the trunk highway fund for staff and equipment costs of pilots for the State Patrol.

$611,000 in fiscal year 2024 and $352,000 in fiscal year 2025 are from the trunk highway fund to support the State Patrol's accreditation process under the Commission on Accreditation for Law Enforcement Agencies.

(b) Commercial Vehicle Enforcement 15,446,000 18,423,000

$2,948,000 in fiscal year 2024 and $5,248,000 in fiscal year 2025 are to provide the required match for federal grants for additional troopers and nonsworn commercial vehicle inspectors.

(c) Capitol Security 18,666,000 19,231,000

This appropriation is from the general fund.

The commissioner must not:

(1) spend any money from the trunk highway fund for capitol security; or

(2) permanently transfer any state trooper from the patrolling highways activity to capitol security.

The commissioner must not transfer any money appropriated to the commissioner under this section:

(1) to capitol security; or

(2) from capitol security.

new text begin The commissioner may expend the unencumbered balance from this appropriation for operating costs under this subdivision. new text end

(d) Vehicle Crimes Unit 1,244,000 1,286,000

This appropriation is from the highway user tax distribution fund to investigate:

(1) registration tax and motor vehicle sales tax liabilities from individuals and businesses that currently do not pay all taxes owed; and

(2) illegal or improper activity related to the sale, transfer, titling, and registration of motor vehicles.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 13.

Laws 2023, chapter 68, article 1, section 20, is amended to read:

Sec. 20.

TRANSFERS.

(a) $152,650,000 in fiscal year 2024 is transferred from the general fund to the trunk highway fund for the state match for highway formula and discretionary grants under the federal Infrastructure Investment and Jobs Act, Public Law 117-58, and for related state investments.

(b) $19,500,000 in fiscal year 2024 and deleted text begin $19,500,000deleted text end new text begin $19,215,000new text end in fiscal year 2025 are transferred from the general fund to the active transportation account under Minnesota Statutes, section 174.38. The base for this transfer is deleted text begin $8,875,000deleted text end new text begin $8,155,000new text end in fiscal year 2026 and deleted text begin $9,000,000deleted text end new text begin $8,284,000new text end in fiscal year 2027.

(c) By June 30, 2023, the commissioner of management and budget must transfer any remaining unappropriated balance, estimated to be $232,000, from the driver services operating account in the special revenue fund to the driver and vehicle services operating account under Minnesota Statutes, section 299A.705.

(d) By June 30, 2023, the commissioner of management and budget must transfer any remaining unappropriated balance, estimated to be $13,454,000, from the vehicle services operating account in the special revenue fund to the driver and vehicle services operating account under Minnesota Statutes, section 299A.705.

ARTICLE 2

TRUNK HIGHWAY BONDS

Section 1.

new text begin BOND APPROPRIATIONS. new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from the bond proceeds account in the trunk highway fund to the commissioner of transportation or other named entity to be spent for public purposes. Appropriations of bond proceeds must be spent as authorized by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified, money appropriated in this article for a capital program or project may be used to pay state agency staff costs that are attributed directly to the capital program or project in accordance with accounting policies adopted by the commissioner of management and budget. new text end

new text begin SUMMARY new text end
new text begin Department of Transportation new text end new text begin $ new text end new text begin 30,000,000 new text end
new text begin Department of Management and Budget new text end new text begin $ new text end new text begin 30,000 new text end
new text begin TOTAL new text end new text begin $ new text end new text begin 30,030,000 new text end
new text begin APPROPRIATIONS new text end

Sec. 2.

new text begin DEPARTMENT OF TRANSPORTATION new text end

new text begin Subdivision 1. new text end

new text begin Corridors of Commerce new text end

new text begin $ new text end new text begin 15,000,000 new text end

new text begin (a) This appropriation is to the commissioner of transportation for the corridors of commerce program under Minnesota Statutes, section 161.088. The commissioner may use up to 17 percent of the amount for program delivery. new text end

new text begin (b) From this appropriation, the commissioner may (1) select projects using the results of the most recent evaluation for the corridors of commerce program, and (2) provide additional funds for projects previously selected under the corridors of commerce program. new text end

new text begin Subd. 2. new text end

new text begin State Road Construction new text end

new text begin 15,000,000 new text end

new text begin This appropriation is to the commissioner of transportation for construction, reconstruction, and improvement of trunk highways, including design-build contracts, internal department costs associated with delivering the construction program, and consultant usage to support these activities. The commissioner may use up to 17 percent of the amount for program delivery. new text end

Sec. 3.

new text begin BOND SALE EXPENSES new text end

new text begin $ new text end new text begin 30,000 new text end

new text begin This appropriation is to the commissioner of management and budget for bond sale expenses under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50, subdivision 4. new text end

Sec. 4.

new text begin BOND SALE AUTHORIZATION. new text end

new text begin To provide the money appropriated in this article from the bond proceeds account in the trunk highway fund, the commissioner of management and budget shall sell and issue bonds of the state in an amount up to $30,030,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested by the commissioner of transportation. The proceeds of the bonds, except accrued interest and any premium received from the sale of the bonds, must be deposited in the bond proceeds account in the trunk highway fund. new text end

ARTICLE 3

TRANSPORTATION POLICY

Section 1.

Minnesota Statutes 2022, section 13.6905, is amended by adding a subdivision to read:

new text begin Subd. 38. new text end

new text begin Traffic safety camera data. new text end

new text begin Data related to traffic safety cameras are governed by section 169.147, subdivisions 14 to 16. new text end

Sec. 2.

Minnesota Statutes 2022, section 13.824, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Definitiondeleted text end new text begin Definitionsnew text end .

deleted text begin As used indeleted text end new text begin (a) For purposes ofnew text end this section,new text begin the following terms have the meanings given.new text end

new text begin (b)new text end "Automated license plate reader" means an electronic device mounted on a law enforcement vehicle or positioned in a stationary location that is capable of recording data on, or taking a photograph of, a vehicle or its license plate and comparing the collected data and photographs to existing law enforcement databases for investigative purposes. Automated license plate reader includes a device that is owned or operated by a person who is not a government entity to the extent that data collected by the reader are shared with a law enforcement agency.new text begin Automated license plate reader does not include a traffic safety camera system.new text end

new text begin (c) "Traffic safety camera system" has the meaning given in section 169.011, subdivision 85a. new text end

Sec. 3.

Minnesota Statutes 2022, section 13.824, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Limitations; certain camera systems. new text end

new text begin A person must not use a traffic safety camera system for purposes of this section. new text end

Sec. 4.

new text begin [16B.356] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For the purposes of sections 16B.356 to 16B.359, the terms defined in this section have the meanings given. new text end

new text begin Subd. 2. new text end

new text begin Council. new text end

new text begin "Council" means the Minnesota Advisory Council on Infrastructure established in section 16B.357. new text end

new text begin Subd. 3. new text end

new text begin Infrastructure. new text end

new text begin "Infrastructure" means physical structures and facilities, including but not limited to property, lands, buildings, and other assets of a capital nature. The term includes infrastructure related to agriculture, commerce, communications, economic development, energy, food, health, housing, natural resources, public safety, transportation, drinking water, stormwater, and wastewater. new text end

Sec. 5.

new text begin [16B.357] MINNESOTA ADVISORY COUNCIL ON INFRASTRUCTURE. new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin (a) The Minnesota Advisory Council on Infrastructure is established as provided under sections 16B.356 to 16B.359. new text end

new text begin (b) The purpose of the council is to define and maintain a vision for the future of Minnesota's infrastructure that provides for its proper management, coordination, and investment. new text end

new text begin Subd. 2. new text end

new text begin Voting membership. new text end

new text begin The council consists of the following voting members: new text end

new text begin (1) two members appointed by the governor; new text end

new text begin (2) two members appointed by the senate majority leader; new text end

new text begin (3) two members appointed by the senate minority leader; new text end

new text begin (4) two members appointed by the speaker of the house; new text end

new text begin (5) two members appointed by the house minority leader; and new text end

new text begin (6) one member appointed by the Indian Affairs Council. new text end

new text begin Subd. 3. new text end

new text begin Nonvoting membership. new text end

new text begin The council consists of the following nonvoting members: new text end

new text begin (1) the commissioner of administration; new text end

new text begin (2) the commissioner of agriculture; new text end

new text begin (3) the commissioner of commerce; new text end

new text begin (4) the commissioner of employment and economic development; new text end

new text begin (5) the commissioner of health; new text end

new text begin (6) the commissioner of management and budget; new text end

new text begin (7) the commissioner of natural resources; new text end

new text begin (8) the commissioner of the Pollution Control Agency; new text end

new text begin (9) the commissioner of transportation; new text end

new text begin (10) the commissioner of Iron Range resources and rehabilitation; new text end

new text begin (11) the chair of the Metropolitan Council; new text end

new text begin (12) the chair of the Board of Water and Soil Resources; new text end

new text begin (13) the executive director of the Minnesota Public Facilities Authority; new text end

new text begin (14) the chancellor of Minnesota State Colleges and Universities; and new text end

new text begin (15) the president of the University of Minnesota. new text end

new text begin Subd. 4. new text end

new text begin Voting members; appointment requirements. new text end

new text begin (a) An appointing authority under subdivision 2 may only appoint an individual who has direct and practical expertise and experience, whether from the public or private sector, in any of the following: new text end

new text begin (1) asset management in one or more of the areas of planning, design, construction, management, or operations and maintenance, for: (i) drinking water; (ii) wastewater; (iii) stormwater; (iv) transportation; (v) energy; or (vi) communications; new text end

new text begin (2) financial management and procurement; or new text end

new text begin (3) regional asset management across jurisdictions and infrastructure sectors. new text end

new text begin (b) Each appointing authority under subdivision 2, clauses (1) to (5), must appoint one individual who resides in a metropolitan county, as defined in section 473.121, subdivision 4, and one individual who resides outside of a metropolitan county. new text end

new text begin (c) No current legislator may be appointed to the council. new text end

new text begin (d) Prior to making appointments, the appointing authorities under subdivision 2 must coordinate and provide for: new text end

new text begin (1) geographic representation throughout the state; new text end

new text begin (2) representation for all major types of infrastructure assets; and new text end

new text begin (3) representation from the public and private sectors. new text end

new text begin Subd. 5. new text end

new text begin Voting members; recommendations for appointment. new text end

new text begin Each appointing authority under subdivision 2 must acknowledge and give consideration to appointment recommendations made by interested stakeholders, including but not limited to: new text end

new text begin (1) the Association of Minnesota Counties; new text end

new text begin (2) the League of Minnesota Cities; new text end

new text begin (3) the Coalition of Greater Minnesota Cities; new text end

new text begin (4) the Minnesota Association of Townships; new text end

new text begin (5) the Minnesota Chapter of the American Public Works Association; new text end

new text begin (6) the Associated General Contractors of Minnesota; new text end

new text begin (7) a labor union representing the building trades; new text end

new text begin (8) a public utility; new text end

new text begin (9) the Minnesota Municipal Utilities Association; new text end

new text begin (10) the Minnesota Chamber of Commerce; new text end

new text begin (11) the Minnesota section of the American Water Works Association; new text end

new text begin (12) the Minnesota Rural Water Association; and new text end

new text begin (13) the Minnesota Rural Electric Association. new text end

new text begin Subd. 6. new text end

new text begin Nonvoting members; delegation. new text end

new text begin (a) Notwithstanding section 15.06, subdivision 6, an individual specified under subdivision 3 may appoint a designee to serve on the council only as provided in this subdivision. new text end

new text begin (b) An individual specified under subdivision 3 may appoint a designee who serves on an ongoing basis to exercise the powers and duties as a nonvoting council member under this section. The designation must be made by written order, filed with the secretary of state. The designee must be a public employee who is: new text end

new text begin (1) a deputy commissioner or deputy director; new text end

new text begin (2) an assistant commissioner; new text end

new text begin (3) an immediate subordinate of the appointing authority; new text end

new text begin (4) a director of a relevant office; or new text end

new text begin (5) if the appointing authority is the chair of a board or council specified under subdivision 3, another member of that board or council. new text end

new text begin Subd. 7. new text end

new text begin Officers. new text end

new text begin (a) The council must elect from among its voting members a chair, or cochairs, and vice-chair. As necessary, the council may elect other council members to serve as officers. new text end

new text begin (b) The chair is responsible for convening meetings of the council and setting each meeting agenda. new text end

new text begin Subd. 8. new text end

new text begin Council actions. new text end

new text begin (a) A majority of the council, including voting and nonvoting members and excluding vacancies, is a quorum. new text end

new text begin (b) The council may conduct business as provided under section 13D.015. new text end

new text begin Subd. 9. new text end

new text begin Compensation; terms; removal; vacancies. new text end

new text begin The compensation, membership terms, filling of vacancies, and removal of members on the council are as provided in section 15.0575. new text end

new text begin Subd. 10. new text end

new text begin Open Meeting Law. new text end

new text begin The council is subject to the Minnesota Open Meeting Law under chapter 13D. new text end

new text begin Subd. 11. new text end

new text begin Data practices. new text end

new text begin The council is subject to the Minnesota Data Practices Act under chapter 13. new text end

Sec. 6.

new text begin [16B.358] POWERS; RESPONSIBILITIES AND DUTIES. new text end

new text begin Subdivision 1. new text end

new text begin General powers. new text end

new text begin The council has the nonregulatory powers necessary to carry out its responsibilities and duties specified by law. new text end

new text begin Subd. 2. new text end

new text begin General responsibilities. new text end

new text begin (a) The council is responsible for activities in a nonregulatory capacity and in coordination with stakeholders to identify and recommend best practices that: new text end

new text begin (1) preserve and extend the longevity of Minnesota's public and privately owned infrastructure; and new text end

new text begin (2) provide for effective and efficient management of infrastructure. new text end

new text begin (b) Unless specifically provided otherwise, nothing in sections 16B.356 to 16B.359 requires transfer of personnel, specific responsibilities, or administrative functions from a department or agency to the council. new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The duties of the council are to: new text end

new text begin (1) identify approaches to enhance and expedite infrastructure coordination across jurisdictions, agencies, state and local government, and public and private sectors, including in planning, design, engineering, construction, maintenance, and operations; new text end

new text begin (2) analyze methods to improve efficiency and the use of resources related to (i) public infrastructure, and (ii) public asset management practices; new text end

new text begin (3) identify opportunities to reduce duplication in infrastructure projects and asset management; new text end

new text begin (4) identify barriers and gaps in effective asset management; new text end

new text begin (5) identify objectives and strategies that enhance the longevity and adaptability of infrastructure throughout the state; new text end

new text begin (6) develop advisory recommendations, if any, related to the responsibilities and duties specified under this section, including to state agencies for programs, policies, and practices; and new text end

new text begin (7) implement the requirements under sections 16B.356 to 16B.359. new text end

new text begin Subd. 4. new text end

new text begin Asset managers program. new text end

new text begin The council must develop and recommend a plan for a statewide asset managers program that provides for: new text end

new text begin (1) identification, exchange, and distribution of (i) information on existing asset management tools and resources, and (ii) best practices on infrastructure management; new text end

new text begin (2) training for infrastructure owners and asset managers; and new text end

new text begin (3) coordination and collaboration among infrastructure owners and asset managers. new text end

new text begin Subd. 5. new text end

new text begin Administrative support. new text end

new text begin The commissioner must provide the council with suitable space to maintain an office, hold meetings, and keep records. The commissioner must provide administrative staff and information technology resources to the council as necessary for the expeditious conduct of the council's duties and responsibilities. new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin By December 15 annually, the council must submit a report to the governor and the legislative committees with jurisdiction over capital investment, climate, economic development, energy, and transportation. At a minimum, the report must: new text end

new text begin (1) summarize the activities of the council; new text end

new text begin (2) provide an overview for each of the duties and requirements under sections 16B.356 to 16B.359; new text end

new text begin (3) identify any barriers and constraints related to activities of the council; and new text end

new text begin (4) provide any recommendations of the council. new text end

Sec. 7.

new text begin [16B.359] PERSONNEL. new text end

new text begin Subdivision 1. new text end

new text begin Executive director. new text end

new text begin (a) The commissioner must hire an executive director in the classified service, with the advice of the council. The executive director is the principal administrative officer for the council. The executive director is not an ex officio member of the council. new text end

new text begin (b) The executive director must have (1) leadership or management experience, and (2) training and experience in public works or asset management. new text end

new text begin (c) The executive director must perform the duties as specified by the council to manage and implement the requirements of sections 16B.356 to 16B.359. new text end

new text begin Subd. 2. new text end

new text begin Staffing. new text end

new text begin (a) The executive director must: new text end

new text begin (1) hire any employees on the basis of merit and fitness that the executive director considers necessary to discharge the functions of the office; and new text end

new text begin (2) prescribe the powers and duties of an employee. new text end

new text begin (b) The executive director may: new text end

new text begin (1) hire a deputy director and other staff; and new text end

new text begin (2) delegate the powers, duties, and responsibilities of the executive director to employees, under conditions prescribed by the executive director. new text end

Sec. 8.

Minnesota Statutes 2023 Supplement, section 123B.935, subdivision 1, is amended to read:

Subdivision 1.

Training required.

(a) Each district must provide public school pupils enrolled in kindergarten through grade 3 with age-appropriate active transportation safety training. At a minimum, the training must include pedestrian safety, including crossing roads.

(b) Each district must provide public school pupils enrolled in grades 4 through 8 with age-appropriate active transportation safety training. At a minimum, the training must include:

(1) pedestrian safety, including crossing roads safely using the searching left, right, left for vehicles in traffic technique; deleted text begin anddeleted text end

(2) bicycle safety, including relevant traffic laws, use and proper fit of protective headgear, bicycle parts and safety features, and safe biking techniquesdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (3) electric-assisted bicycle safety, including that a person under the age of 15 is not allowed to operate an electric-assisted bicycle. new text end

(c) A nonpublic school may provide nonpublic school pupils enrolled in kindergarten through grade 8 with training as specified in paragraphs (a) and (b).

Sec. 9.

Minnesota Statutes 2022, section 134A.09, subdivision 2a, is amended to read:

Subd. 2a.

Petty misdemeanor cases and criminal convictions; fee assessment.

new text begin (a) new text end In Hennepin County and Ramsey County, the district court administrator or a designee may, upon the recommendation of the board of trustees and by standing order of the judges of the district court, include in the costs or disbursements assessed against a defendant convicted in the district court of the violation of a statute or municipal ordinance, a county law library fee. This fee may be collected in all petty misdemeanor cases and criminal prosecutions in which, upon conviction, the defendant may be subject to the payment of the costs or disbursements in addition to a fine or other penalty. When a defendant is convicted of more than one offense in a case, the county law library fee shall be imposed only once in that case.

new text begin (b) Beginning August 1, 2025, the law library fee does not apply to a citation issued pursuant to sections 169.06, subdivision 10, and 169.14, subdivision 13. new text end

Sec. 10.

Minnesota Statutes 2022, section 134A.10, subdivision 3, is amended to read:

Subd. 3.

Petty misdemeanor cases and criminal convictions; fee assessment.

new text begin (a) new text end The judge of district court may, upon the recommendation of the board of trustees and by standing order, include in the costs or disbursements assessed against a defendant convicted in the district court of the violation of any statute or municipal ordinance, in all petty misdemeanor cases and criminal prosecutions in which, upon conviction, the defendant may be subject to the payment of the costs or disbursements in addition to a fine or other penalty a county law library fee. When a defendant is convicted of more than one offense in a case, the county law library fee shall be imposed only once in that case. The item of costs or disbursements may not be assessed for any offense committed prior to the establishment of the county law library.

new text begin (b) Beginning August 1, 2025, the law library fee does not apply to citations issued pursuant to sections 169.06, subdivision 10, and 169.14, subdivision 13. new text end

Sec. 11.

Minnesota Statutes 2022, section 161.089, is amended to read:

161.089 REPORT ON DEDICATED FUND EXPENDITURES.

By January 15 of each odd-numbered year, the commissioners of transportation and public safety, in consultation with the commissioner of management and budget, must jointly submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation finance. The report mustnew text begin :new text end

new text begin (1)new text end list detailed expenditures and transfers from the trunk highway fund and highway user tax distribution fund for the previous two fiscal years and must include information on the purpose of each expendituredeleted text begin . The report mustdeleted text end new text begin ;new text end

new text begin (2) list summary expenditures and transfers from each fund other than the trunk highway fund or highway user tax distribution fund for each departmental division, office, or program for which funds are listed under clause (1); new text end

new text begin (3) include for each expenditure from the trunk highway fund an estimate of the percentage of activities performed or purchases made with that expenditure that are not for trunk highway purposes; and new text end

new text begin (4)new text end include a separate section that lists detailed expenditures and transfers from the trunk highway fund and highway user tax distribution fund for cybersecurity.

Sec. 12.

new text begin [161.1258] RUMBLE STRIPS. new text end

new text begin (a) The commissioner must maintain transverse rumble strips in association with each stop sign that is located (1) on a trunk highway segment with a speed limit of at least 55 miles per hour, and (2) outside the limits of a statutory or home rule charter city. new text end

new text begin (b) Prior to installation of rumble strips at a new location, the commissioner must provide a notification to residences adjacent to the location. new text end

new text begin (c) The commissioner must meet the requirements under paragraph (a) at each applicable location by the earlier of August 1, 2034, or the date of substantial completion of any construction, resurfacing, or reconditioning at the location. new text end

new text begin (d) The requirements under paragraph (a) do not apply to a location in which there is at least one residence within 750 feet. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, for road construction, resurfacing, or reconditioning projects on or after that date. new text end

Sec. 13.

Minnesota Statutes 2022, section 161.14, is amended by adding a subdivision to read:

new text begin Subd. 107. new text end

new text begin Gopher Gunners Memorial Bridge. new text end

new text begin (a) The bridge on marked Trunk Highway 55 and marked Trunk Highway 62 over the Minnesota River, commonly known as the Mendota Bridge, is designated as "Gopher Gunners Memorial Bridge." Notwithstanding section 161.139, the commissioner must adopt a suitable design to mark the bridge and erect appropriate signs. new text end

new text begin (b) The adjutant general of the Department of Military Affairs must reimburse the commissioner of transportation for costs incurred under this subdivision. new text end

Sec. 14.

Minnesota Statutes 2023 Supplement, section 161.178, is amended to read:

161.178 TRANSPORTATION GREENHOUSE GAS EMISSIONS IMPACT ASSESSMENT.

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

(b) "Applicable entity" means the commissioner with respect to a deleted text begin capacity expansiondeleted text end projectnew text begin or portfolionew text end for inclusion in the state transportation improvement program or a metropolitan planning organization with respect to a deleted text begin capacity expansiondeleted text end projectnew text begin or portfolionew text end for inclusion in the appropriate metropolitan transportation improvement program.

(c) "Assessment" means the deleted text begin capacity expansiondeleted text end impact assessment under this section.

(d) "Capacity expansion project" means a project for trunk highway construction or reconstruction that:

(1) is a major highway project, as defined in section 174.56, subdivision 1, paragraph (b); and

(2) adds highway traffic capacity or provides for grade separation new text begin of motor vehicle traffic new text end at an intersection, excluding auxiliary lanes with a length of less than 2,500 feet.

(e) "Greenhouse gas emissions" includes those emissions described in section 216H.01, subdivision 2.

Subd. 2.

Projectnew text begin or portfolionew text end assessment.

(a) Prior to inclusion of a deleted text begin capacity expansiondeleted text end projectnew text begin or portfolionew text end in the state transportation improvement program ornew text begin innew text end a metropolitan transportation improvement program, the applicable entity must perform deleted text begin a capacity expansiondeleted text end new text begin annew text end impact assessment of the projectnew text begin or portfolionew text end . Following the assessment, the applicable entity must determine if the project deleted text begin conformsdeleted text end new text begin or portfolio is proportionally in conformancenew text end with:

(1) the greenhouse gas emissions reduction targets under section 174.01, subdivision 3; and

(2) the vehicle miles traveled reduction targets established in the statewide multimodal transportation plan under section 174.03, subdivision 1a.

(b) If the applicable entity determines that the deleted text begin capacity expansiondeleted text end projectnew text begin or portfolionew text end is not in conformance with paragraph (a), the applicable entity must:

(1) alter the scope or design of the projectnew text begin or any number of projects, add or remove one or more projects from the portfolio, or undertake a combination,new text end andnew text begin subsequentlynew text end perform a revised assessment that meets the requirements under this section;

(2) interlink sufficient impact mitigation as provided in subdivision 4; or

(3) halt project development and disallow inclusion of the projectnew text begin or portfolionew text end in the appropriate transportation improvement program.

new text begin Subd. 2a. new text end

new text begin Applicable projects. new text end

new text begin (a) For purposes of this section: new text end

new text begin (1) prior to the date established under paragraph (b), a project or portfolio is a capacity expansion project; and new text end

new text begin (2) on and after the date established under paragraph (b), a project or portfolio is a capacity expansion project or a collection of trunk highway and multimodal projects for a fiscal year and specific region. new text end

new text begin (b) The commissioner must establish a date to implement impact assessments on the basis of assessing a portfolio or program of projects instead of on a project-by-project basis. The date must be: new text end

new text begin (1) August 1, 2027, which applies to projects that first enter the appropriate transportation improvement program for fiscal year 2031 or a subsequent year; or new text end

new text begin (2) as established by the commissioner, if the commissioner: new text end

new text begin (i) consults with metropolitan planning organizations; new text end

new text begin (ii) prioritizes and makes reasonable efforts to meet the date under clause (1) or an earlier date; new text end

new text begin (iii) determines that the date established under this clause is the earliest practicable in which the necessary models and tools are sufficient for analysis under this section; and new text end

new text begin (iv) submits a notice to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over transportation policy and finance, which must identify the date established and summarize the efforts under item (ii) and the determination under item (iii). new text end

Subd. 3.

Assessment requirements.

(a) The commissioner must establish a process to deleted text begin perform capacity expansion impact assessments. An assessment must provide for the determination under subdivision 2.deleted text end new text begin implement the requirements under this section, which includes:new text end

new text begin (1) any necessary policies, procedures, manuals, and technical specifications; new text end

new text begin (2) procedures to perform an impact assessment that provide for the determination under subdivision 2; new text end

new text begin (3) in consultation with the technical advisory committee under section 161.1782, criteria for identification of a capacity expansion project; and new text end

new text begin (4) related data reporting from local units of government on local multimodal transportation systems and local project impacts on greenhouse gas emissions and vehicle miles traveled. new text end

(b) Analysis under an assessment must include but is not limited to estimates resulting from deleted text begin thedeleted text end new text begin anew text end projectnew text begin or portfolionew text end for the following:

(1) greenhouse gas emissions over a period of 20 years; deleted text begin anddeleted text end

(2) a net change in vehicle miles traveled for the affected networkdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (3) impacts to trunk highways and related impacts to local road systems, on a local, regional, or statewide basis, as appropriate. new text end

Subd. 4.

Impact mitigationnew text begin ; interlinkingnew text end .

(a) To provide for impact mitigation, the applicable entity must interlink the deleted text begin capacity expansiondeleted text end projectnew text begin or portfolionew text end as provided in this subdivision.

(b) Impact mitigation is sufficient under subdivision 2, paragraph (b), if the deleted text begin capacity expansiondeleted text end projectnew text begin or portfolionew text end is interlinked to deleted text begin mitigationdeleted text end new text begin offsetnew text end actions such that the total greenhouse gas emissions reduction from the deleted text begin mitigationdeleted text end new text begin offsetnew text end actions, after accounting for the greenhouse gas emissions otherwise resulting from the deleted text begin capacity expansiondeleted text end projectnew text begin or portfolionew text end , is consistent with meeting the targets specified under subdivision 2, paragraph (a). Each comparison under this paragraph must be performed over equal comparison periods.

(c) deleted text begin A mitigationdeleted text end new text begin An offsetnew text end action consists of a project, program, deleted text begin ordeleted text end operations modificationnew text begin , or mitigation plannew text end in one or more of the following areas:

(1) transit expansion, including but not limited to regular route bus, arterial bus rapid transit, highway bus rapid transit, rail transit, and intercity passenger rail;

(2) transit service improvements, including but not limited to increased service level, transit fare reduction, and transit priority treatments;

(3) active transportation infrastructure;

(4) micromobility infrastructure and service, including but not limited to shared vehicle services;

(5) transportation demand management, including but not limited to vanpool and shared vehicle programs, remote work, and broadband access expansion;

(6) parking management, including but not limited to parking requirements reduction or elimination and parking cost adjustments;

(7) land use, including but not limited to residential and other density increases, mixed-use development, and transit-oriented development;

(8) infrastructure improvements related to traffic operations, including but not limited to roundabouts and reduced conflict intersections; deleted text begin anddeleted text end

(9) natural systems, including but not limited to prairie restoration, reforestation, and urban green spacenew text begin ; andnew text end

new text begin (10) as specified by the commissioner in the manner provided under paragraph (e)new text end .

(d) deleted text begin A mitigationdeleted text end new text begin An offsetnew text end action may be identified as interlinked to the deleted text begin capacity expansiondeleted text end projectnew text begin or portfolionew text end if:

(1) there is a specified project, program, deleted text begin ordeleted text end modificationnew text begin , or mitigation plannew text end ;

(2) the necessary funding sources are identified and sufficient amounts are committed;

(3) the mitigation is localized as provided in subdivision 5; and

(4) procedures are established to ensure that the mitigation action remains in substantially the same form or a revised form that continues to meet the calculation under paragraph (b).

new text begin (e) The commissioner may authorize additional offset actions under paragraph (c) if: new text end

new text begin (1) the offset action is reviewed and recommended by the technical advisory committee under section 161.1782; and new text end

new text begin (2) the commissioner determines that the offset action is directly related to reduction in the transportation sector of greenhouse gas emissions or vehicle miles traveled. new text end

Subd. 5.

Impact mitigation; localization.

(a) deleted text begin A mitigationdeleted text end new text begin An offsetnew text end action under subdivision 4 must be localized in the following priority order:

(1)new text begin if the offset action is for one project,new text end within or associated with at least one of the communities impacted by the deleted text begin capacity expansiondeleted text end project;

(2) ifnew text begin clause (1) does not apply ornew text end there is not a reasonably feasible location under clause (1), in areas of persistent poverty or historically disadvantaged communities, as measured and defined in federal law, guidance, and notices of funding opportunity;

(3) if there is not a reasonably feasible location under clauses (1) and (2), in the region of the deleted text begin capacity expansiondeleted text end projectnew text begin or portfolionew text end ; or

(4) if there is not a reasonably feasible location under clauses (1) to (3), on a statewide basis.

(b) The applicable entity must include an explanation regarding the feasibility and rationale for each mitigation action located under paragraph (a), clauses (2) to (4).

Subd. 6.

Public information.

The commissioner must publish information regarding deleted text begin capacity expansiondeleted text end impact assessments on the department's website. The information must include:

(1)new text begin for each project evaluated separately under this section,new text end identification of deleted text begin capacity expansion projectsdeleted text end new text begin the projectnew text end ; deleted text begin anddeleted text end

(2) for each projectnew text begin evaluated separatelynew text end , a summary that includes an overview of the deleted text begin expansion impactdeleted text end assessment, the impact determination by the commissioner, and project disposition, including a review of any deleted text begin mitigationdeleted text end new text begin offsetnew text end actionsdeleted text begin .deleted text end new text begin ;new text end

new text begin (3) for each portfolio of projects, an overview of the projects, the impact determination by the commissioner, and a summary of any offset actions; new text end

new text begin (4) a review of any interpretation of or additions to offset actions under subdivision 4; new text end

new text begin (5) identification of the date established by the commissioner under subdivision 2a, paragraph (b); and new text end

new text begin (6) a summary of the activities of the technical advisory committee under section 161.1782, including but not limited to any findings or recommendations made by the advisory committee. new text end

Subd. 7.

Safety and well-being.

The requirements of this section are in addition to and must not supplant the safety and well-being goals established under section 174.01, subdivision 2, clauses (1) and (2).

new text begin Subd. 8. new text end

new text begin Transportation impact assessment and mitigation account. new text end

new text begin (a) A transportation impact assessment and mitigation account is established in the special revenue fund. The account consists of funds provided by law and any other money donated, allotted, transferred, or otherwise provided to the account. new text end

new text begin (b) Money in the account is annually appropriated to the commissioner and must only be expended on activities described or required under this section. In determining expenditures from the account, the commissioner must include prioritization for offset actions interlinked to trunk highway projects that reduce traffic fatalities or severe injuries. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 1, 2025, except that subdivision 8 is effective July 1, 2024. This section does not apply to a capacity expansion project that was either included in the state transportation improvement program or has been submitted for approval of the geometric layout before February 1, 2025. new text end

Sec. 15.

new text begin [161.1782] TRANSPORTATION IMPACT ASSESSMENT; TECHNICAL ADVISORY COMMITTEE. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Advisory committee" means the technical advisory committee established in this section. new text end

new text begin (c) "Project or portfolio" is as provided in section 161.178. new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish a technical advisory committee to assist in implementation review related to the requirements under section 161.178. new text end

new text begin Subd. 3. new text end

new text begin Membership; appointments. new text end

new text begin The advisory committee is composed of the following members: new text end

new text begin (1) one member from the Department of Transportation, appointed by the commissioner of transportation; new text end

new text begin (2) one member from the Pollution Control Agency, appointed by the commissioner of the Pollution Control Agency; new text end

new text begin (3) one member from the Metropolitan Council, appointed by the chair of the Metropolitan Council; new text end

new text begin (4) one member from the Center for Transportation Studies, appointed by the president of the University of Minnesota; new text end

new text begin (5) one member representing metropolitan planning organizations outside the metropolitan area, as defined in section 473.121, subdivision 2, appointed by the Association of Metropolitan Planning Organizations; and new text end

new text begin (6) up to four members who are not employees of the state, with no more than two who are employees of a political subdivision, appointed by the commissioner of transportation. new text end

new text begin Subd. 4. new text end

new text begin Membership; requirements. new text end

new text begin (a) To be eligible for appointment to the advisory committee, an individual must have experience or expertise sufficient to provide assistance in implementation or technical review related to the requirements under section 161.178. Each appointing authority must consider appointment of individuals with expertise in travel demand modeling, emissions modeling, traffic forecasting, land use planning, or transportation-related greenhouse gas emissions assessment and analysis. In appointing the members under subdivision 3, clause (6), the commissioner must also consider technical expertise in other relevant areas, which may include but is not limited to public health or natural systems management. new text end

new text begin (b) Members of the advisory committee serve at the pleasure of the appointing authority. Vacancies must be filled by the appointing authority. new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin The advisory committee must assist the commissioner in implementation of the requirements under section 161.178, including to: new text end

new text begin (1) perform technical review and validation of processes and methodologies used for impact assessment and impact mitigation; new text end

new text begin (2) review and make recommendations on: new text end

new text begin (i) impact assessment requirements; new text end

new text begin (ii) models and tools for impact assessment; new text end

new text begin (iii) methods to determine sufficiency of impact mitigation; new text end

new text begin (iv) procedures for interlinking a project or portfolio to impact mitigation; and new text end

new text begin (v) reporting and data collection; new text end

new text begin (3) advise on the approach used to determine the area of influence for a project or portfolio for a geographic or transportation network area; new text end

new text begin (4) develop recommendations on any clarifications, modifications, or additions to the offset actions authorized under section 161.178, subdivision 4; and new text end

new text begin (5) perform other analyses or activities as requested by the commissioner. new text end

new text begin Subd. 6. new text end

new text begin Administration. new text end

new text begin (a) The commissioner must provide administrative support to the advisory committee. Upon request, the commissioner must provide information and technical support to the advisory committee. new text end

new text begin (b) Members of the advisory committee are not eligible for compensation under this section. new text end

new text begin (c) The advisory committee is subject to the Minnesota Data Practices Act under chapter 13 and to the Minnesota Open Meeting Law under chapter 13D. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 16.

Minnesota Statutes 2022, section 161.3203, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Reportsdeleted text end new text begin Reportnew text end .

new text begin (a) By September 1 of each year,new text end the commissioner deleted text begin shall provide, no later than September 1, an annual writtendeleted text end new text begin must submit anew text end report to deleted text begin the legislature, in compliance with sections 3.195 and 3.197, and shall submit the report todeleted text end the chairs new text begin and ranking minority members new text end of the deleted text begin senate and house of representativesdeleted text end new text begin legislativenew text end committees deleted text begin havingdeleted text end new text begin withnew text end jurisdiction over transportationnew text begin policy and financenew text end .

new text begin (b)new text end The report must list all privatization transportation contracts deleted text begin within the meaning of this sectiondeleted text end that were executed or performed, whether wholly or in part, in the previous fiscal year. The report must identify, with respect to each contract:

new text begin (1)new text end the contractor;

new text begin (2)new text end contract amount;

new text begin (3)new text end duration;

new text begin (4)new text end work, provided or to be provided;

new text begin (5)new text end the comprehensive estimate derived under subdivision 3, paragraph (a);

new text begin (6)new text end the comprehensive estimate derived under subdivision 3, paragraph (b);

new text begin (7)new text end the actual cost to the agency of the contractor's performance of the contract; and

new text begin (8)new text end for contracts of at least $250,000, a statement containing the commissioner's determinations under subdivision 3, paragraph (c).

new text begin (c) The report must collect aggregate data on each of the commissioner's district offices and the bridge office on barriers and challenges to the reduction of transportation contract privatization. The aggregate data must identify areas of concern related to transportation contract privatization and include information on: new text end

new text begin (1) recruitment and retention of staff; new text end

new text begin (2) expertise gaps; new text end

new text begin (3) access to appropriate equipment; and new text end

new text begin (4) the effects of geography, demographics, and socioeconomic data on transportation contract privatization rates. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 17.

Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin High voltage transmission; placement in right-of-way. new text end

new text begin (a) For purposes of this subdivision and subdivisions 5 to 7, "high voltage transmission line" has the meaning given in section 216E.01, subdivision 4. new text end

new text begin (b) Notwithstanding subdivision 1, paragraph (a), high voltage transmission lines under the laws of this state or the ordinance of any city or county may be constructed, placed, or maintained across or along any trunk highway, including an interstate highway and a trunk highway that is an expressway or a freeway, except as deemed necessary by the commissioner of transportation to protect public safety or ensure the proper function of the trunk highway system. new text end

new text begin (c) If the commissioner denies a high voltage electric line colocation request, the reasons for the denial must be submitted for review within 90 days of the commissioner's denial to the chairs and ranking minority members of the legislative committees with jurisdiction over energy and transportation, the Public Utilities Commission executive secretary, and the commissioner of commerce. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to colocation requests for high voltage transmission lines on or after that date. new text end

Sec. 18.

Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin High voltage transmission; coordination required. new text end

new text begin Upon written request, the commissioner must engage in coordination activities with a utility or transmission line developer to review requested highway corridors for potential permitted locations for transmission lines. The commissioner must assign a project coordinator within 30 days of receiving the written request. The commissioner must share all known plans with affected utilities or transmission line developers on potential future projects in the highway corridor if the potential highway project impacts the placement or siting of high voltage transmission lines. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 19.

Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin High voltage transmission; constructability report; advance notice. new text end

new text begin (a) If the commissioner and a utility or transmission line developer identify a permittable route along a trunk highway corridor for possible colocation of transmission lines, a constructability report must be prepared by the utility or transmission line developer in consultation with the commissioner. A constructability report developed under this subdivision must be used by both parties to plan and approve colocation projects. new text end

new text begin (b) A constructability report developed under this section between the commissioner and the parties seeking colocation must include terms and conditions for building the colocation project. Notwithstanding the requirements in subdivision 1, the report must be approved by the commissioner and the party or parties seeking colocation prior to the commissioner approving and issuing a permit for use of the trunk highway right-of-way. new text end

new text begin (c) A constructability report must include an agreed upon time frame for which there may not be a request from the commissioner for relocation of the transmission line. If the commissioner determines that relocation of a transmission line in the trunk highway right-of-way is necessary, the commissioner, as much as practicable, must give a four-year advance notice. new text end

new text begin (d) Notwithstanding the requirements of subdivision 7 and section 161.46, subdivision 2, if the commissioner requires the relocation of a transmission line in the interstate highway right-of-way earlier than the agreed upon time frame in paragraph (c) in the constructability report or provides less than a four-year notice of relocation in the agreed upon constructability report, the commissioner is responsible for 75 percent of the relocation costs. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 20.

Minnesota Statutes 2022, section 161.45, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin High voltage transmission; relocation reimbursement prohibited. new text end

new text begin (a) A high voltage transmission line that receives a route permit under chapter 216E on or after July 1, 2024, is not eligible for relocation reimbursement under section 161.46, subdivision 2. new text end

new text begin (b) If the commissioner orders relocation of a high voltage transmission line that is subject to paragraph (a): new text end

new text begin (1) a public utility, as defined in section 216B.02, subdivision 4, may recover its portion of costs of relocating the line that the Public Utilities Commission deems prudently incurred as a transmission cost adjustment pursuant to section 216B.16, subdivision 7b; and new text end

new text begin (2) a consumer-owned utility, as defined in section 216B.2402, subdivision 2, may recover its portion of costs of relocating the line in any manner approved by its governing board. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 21.

Minnesota Statutes 2022, section 161.46, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

new text begin (a) new text end For the purposes of this sectionnew text begin ,new text end the following terms deleted text begin shalldeleted text end have the meanings deleted text begin ascribed to them:deleted text end new text begin given.new text end

deleted text begin (1)deleted text end new text begin (b)new text end "Utility" means all publicly, privately, and cooperatively owned systems for supplying power, light, gas, telegraph, telephone, water, pipeline, or sewer service if such systems be authorized by law to use public highways for the location of its facilities.

deleted text begin (2)deleted text end new text begin (c)new text end "Cost of relocation" means the entire amount paid by such utility properly attributable to such relocation after deducting therefrom any increase in the value of the new facility and any salvage value derived from the old facility.

new text begin (d) "High voltage transmission line" has the meaning given in section 216E.01, subdivision 4. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 22.

Minnesota Statutes 2023 Supplement, section 161.46, subdivision 2, is amended to read:

Subd. 2.

Relocation of facilities; reimbursement.

deleted text begin (a)deleted text end Whenever the commissioner deleted text begin shall determinedeleted text end new text begin determines thatnew text end the relocation of any utility facility is necessitated by the construction of a project on the routes of federally aided deleted text begin statedeleted text end trunk highways, including urban extensions thereof, deleted text begin which routesdeleted text end new text begin thatnew text end are included within the National System of Interstate Highways, the owner or operator of deleted text begin suchdeleted text end new text begin thenew text end utility facility deleted text begin shalldeleted text end new text begin mustnew text end relocate the deleted text begin samedeleted text end new text begin utility facilitynew text end in accordance with the order of the commissioner. deleted text begin After the completion of such relocation the cost thereof shall be ascertained and paid by the state out of trunk highway funds; provided, however, the amount to be paid by the state for such reimbursement shall not exceed the amount on which the federal government bases its reimbursement for said interstate system.deleted text end new text begin Except as provided in section 161.45, subdivision 6, paragraph (d), or 7, upon the completion of relocation of a utility facility, the cost of relocation must be ascertained and paid out of the trunk highway fund by the commissioner, provided the amount paid by the commissioner for reimbursement to a utility does not exceed the amount on which the federal government bases its reimbursement for the interstate highway system.new text end

deleted text begin (b) Notwithstanding paragraph (a), on or after January 1, 2024, any entity that receives a route permit under chapter deleted text end deleted text begin 216E deleted text end deleted text begin for a high-voltage transmission line necessary to interconnect an electric power generating facility is not eligible for relocation reimbursement unless the entity directly, or through its members or agents, provides retail electric service in this state. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 23.

Minnesota Statutes 2022, section 162.02, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Location and establishment; limitations. new text end

new text begin The county state-aid highway system must not include a segment of a county highway that is designated as a pedestrian mall under chapter 430. new text end

Sec. 24.

Minnesota Statutes 2022, section 162.081, subdivision 4, is amended to read:

Subd. 4.

Formula for distribution to towns; purposes.

(a) Money apportioned to a county from the town road account must be distributed to the treasurer of each town within the county, according to a distribution formula adopted by the county board. The formula must take into account each town's population and town road mileage, and other factors the county board deems advisable in the interests of achieving equity among the towns. Distribution of town road funds to each town treasurer must be made by March 1, annually, or within 30 days after receipt of payment from the commissioner. Distribution of funds to town treasurers in a county which has not adopted a distribution formula under this subdivision must be made according to a formula prescribed by the commissioner by rule.

(b) Money distributed to a town under this subdivision may be expended by the town only for the construction, reconstruction, and gravel maintenance of town roads within the townnew text begin , including debt service for bonds issued by the town in accordance with chapter 475, provided that the bonds are issued for a use allowable under this paragraphnew text end .

Sec. 25.

Minnesota Statutes 2022, section 162.09, is amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Location and establishment; limitations. new text end

new text begin The municipal state-aid street system must not include a segment of a city street that is designated as a pedestrian mall under chapter 430. new text end

Sec. 26.

Minnesota Statutes 2022, section 162.145, subdivision 5, is amended to read:

Subd. 5.

Use of funds.

(a) Funds distributed under this section are available only for construction and maintenance of roads located within the city, including:

(1) land acquisition, environmental analysis, design, engineering, construction, reconstruction, and maintenance;

(2) road projects partially located within the city;

(3) projects on county state-aid highways located within the city; deleted text begin anddeleted text end

(4) cost participation on road projects under the jurisdiction of another unit of governmentdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (5) debt service for obligations issued by the city in accordance with chapter 475, provided that the obligations are issued for a use allowable under this section. new text end

(b) Except for projects under paragraph (a), clause (3), funds distributed under this section are not subject to state-aid requirements under this chapter, including but not limited to engineering standards adopted by the commissioner in rules.

Sec. 27.

Minnesota Statutes 2023 Supplement, section 162.146, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Use of funds. new text end

new text begin (a) Funds distributed under this section are available only for construction and maintenance of roads located within the city, including: new text end

new text begin (1) land acquisition, environmental analysis, design, engineering, construction, reconstruction, and maintenance; new text end

new text begin (2) road projects partially located within the city; new text end

new text begin (3) projects on municipal state-aid streets located within the city; new text end

new text begin (4) projects on county state-aid highways located within the city; new text end

new text begin (5) cost participation on road projects under the jurisdiction of another unit of government; and new text end

new text begin (6) debt service for obligations issued by the city in accordance with chapter 475, provided that the obligations are issued for a use allowable under this section. new text end

new text begin (b) Except for projects under paragraph (a), clauses (3) and (4), funds distributed under this section are not subject to state-aid requirements under this chapter, including but not limited to engineering standards adopted by the commissioner in rules. new text end

Sec. 28.

Minnesota Statutes 2022, section 168.09, subdivision 7, is amended to read:

Subd. 7.

Display of temporary permit.

(a) deleted text begin A vehicle that displays a Minnesota plate issued under this chapter may display a temporary permitdeleted text end new text begin The commissioner may issue a temporary permit under this subdivisionnew text end in conjunction withnew text begin the conclusion of a registration period or a recentlynew text end expired registration if:

(1) the current registration tax and all other fees and taxes have been paid in full; and

(2) deleted text begin the plate hasdeleted text end new text begin special plates havenew text end been applied for.

deleted text begin (b) A vehicle may display a temporary permit in conjunction with expired registration, with or without a registration plate, if: deleted text end

deleted text begin (1) the plates have been applied for; deleted text end

deleted text begin (2) the registration tax and other fees and taxes have been paid in full; and deleted text end

deleted text begin (3) either the vehicle is used solely as a collector vehicle while displaying the temporary permit and not used for general transportation purposes or the vehicle was issued a 21-day permit under section 168.092, subdivision 1. deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end The permit is valid for a period of 60 days. The permit must be in a format prescribed by the commissioner, affixed to the rear of the vehicle where a license plate would normally be affixed, and plainly visible. The permit is valid only for the vehicle for which it was issued to allow a reasonable time for the new plates to be manufactured and delivered to the applicant. The permit may be issued only by the commissioner or by a deputy registrar under section 168.33.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 29.

Minnesota Statutes 2022, section 168.092, is amended to read:

168.092 deleted text begin 21-DAYdeleted text end new text begin 60-DAYnew text end TEMPORARY VEHICLE PERMIT.

Subdivision 1.

Resident buyer.

The deleted text begin motor vehicle registrardeleted text end new text begin commissionernew text end may issue a permit to a person purchasing a new or used motor vehicle in this state for the purpose of allowing the purchaser a reasonable time to register the vehicle and pay fees and taxes due on the transfer. The permit is valid for a period of deleted text begin 21deleted text end new text begin 60new text end days. The permit must be in a deleted text begin form as the registrar may determinedeleted text end new text begin format prescribed by the commissionernew text end , affixed to the rear of the vehicle where a license plate would normally be affixed, and plainly visible. Each permit is valid only for the vehicle for which issued.

Subd. 2.

Dealer.

The deleted text begin registrardeleted text end new text begin commissionernew text end may issue permits to licensed dealers. When issuing a permit, the dealer deleted text begin shalldeleted text end new text begin mustnew text end complete the permit in the manner prescribed by the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 30.

Minnesota Statutes 2023 Supplement, section 168.1259, is amended to read:

168.1259 MINNESOTA PROFESSIONAL SPORTS TEAM deleted text begin FOUNDATIONdeleted text end new text begin PHILANTHROPYnew text end PLATES.

Subdivision 1.

Definition.

For purposes of this section, "Minnesota professional sports team" means one of the following teams while its home stadium is located in Minnesota: Minnesota Vikings, Minnesota Timberwolves, Minnesota Lynx, Minnesota Wild, Minnesota Twins, or Minnesota United.

Subd. 2.

General requirements and procedures.

(a) The commissioner must issue Minnesota professional sports team deleted text begin foundationdeleted text end new text begin philanthropynew text end plates to an applicant who:

(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup truck, motorcycle, or recreational vehicle;

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

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

(4) pays the fees required under this chapter;

(5) contributes a minimum of $30 annually to the professional sports team deleted text begin foundationsdeleted text end new text begin philanthropynew text end account; and

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

(b) Minnesota professional sports team deleted text begin foundationdeleted text end new text begin philanthropynew text end plates may be personalized according to section 168.12, subdivision 2a.

Subd. 3.

Design.

At the request of a Minnesota professional sportsnew text begin team or thenew text end team's foundation, the commissioner must, in consultation with thenew text begin team ornew text end foundation, adopt a suitable plate design deleted text begin incorporatingdeleted text end new text begin . Each design must incorporatenew text end thenew text begin requestingnew text end foundation's marks and colorsnew text begin or directly relate to a charitable purpose as provided in subdivision 5new text end . The commissioner may design a single plate that incorporates the marks and colors of all deleted text begin foundationsdeleted text end new text begin organizationsnew text end that have requested a plate.

Subd. 4.

Plate transfers.

On application to the commissioner and payment of a transfer fee of $5, special plates issued under this section may be transferred to another motor vehicle if the subsequent vehicle is:

(1) qualified under subdivision 2, paragraph (a), clause (1), to bear the special plates; and

(2) registered to the same individual to whom the special plates were originally issued.

Subd. 5.

Contributions; account; appropriation.

new text begin (a) new text end Contributions collected under subdivision 2, paragraph (a), clause (5), must be deposited in the Minnesota professional sports team deleted text begin foundationsdeleted text end new text begin philanthropynew text end account, which is established in the special revenue fund. Money in the account is appropriated to the commissioner of public safety. This appropriation is first for the annual cost of administering the account funds, and the remaining funds are for distribution to the foundationsnew text begin , or as provided in this subdivision,new text end innew text begin thenew text end proportionnew text begin that each plate design bearsnew text end to the total number of Minnesota professional sports team deleted text begin foundationdeleted text end new text begin philanthropynew text end plates issued for that year. Proceeds from a plate that includes the marks and colors of all deleted text begin foundationsdeleted text end new text begin participating organizationsnew text end must be divided evenly between all foundationsnew text begin and charitable purposesnew text end .

new text begin (b)new text end The deleted text begin foundations must only use thedeleted text end proceedsnew text begin must only be used by:new text end

new text begin (1) a Minnesota professional sports team foundationnew text end for philanthropic or charitable purposesnew text begin ; ornew text end

new text begin (2) the Minnesota United professional sports team through a designation that the funds are for the Minnesota Loon Restoration Projectnew text end .

new text begin (c) The commissioner must annually transfer funds designated under paragraph (b), clause (2), from the Minnesota professional sports team philanthropy account to the Minnesota critical habitat private sector matching account under section 84.943 for purposes of the Minnesota Loon Restoration Project. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024, for Minnesota professional sports team philanthropy plates issued on or after that date. new text end

Sec. 31.

Minnesota Statutes 2022, section 168.127, is amended to read:

168.127 FLEET VEHICLES; REGISTRATION, FEE.

Subdivision 1.

Unique registration category.

new text begin (a) new text end A unique registration category is established for vehicles and trailers of a fleet. Vehicles registered in the fleet must be issued a distinctive license plate. The design and size of the fleet license plate must be determined by the commissioner.

new text begin (b) A deputy registrar may issue replacement license plates for qualified vehicles in a registered fleet pursuant to section 168.29. new text end

Subd. 2.

Annual registration period.

The annual registration period for vehicles in the fleet deleted text begin will bedeleted text end new text begin isnew text end determined by the commissioner. The applicant must provide all information necessary to qualify as a fleet registrantnew text begin ,new text end including a list of all vehicles in the fleet. On initial registration, all taxes and fees for vehicles in the fleet must be reassessed based on the expiration date.

Subd. 3.

Registration cards issued.

new text begin (a) new text end On approval of the application for fleet registrationnew text begin ,new text end the commissioner must issue a registration card for each qualified vehicle in the fleet. The registration card must be carried in the vehicle at all times and be made available to a peace officer on demand. The registered gross weight must be indicated on the license plate.

new text begin (b) A new vehicle may be registered to an existing fleet upon application to a deputy registrar and payment of the fee under section 168.33, subdivision 7. new text end

new text begin (c) A deputy registrar must issue a replacement registration card for any registered fleet or any qualified vehicle in a registered fleet upon application. new text end

Subd. 4.

Filing registration applications.

Initial fleet applications for registration and renewals must be filed with the deleted text begin registrardeleted text end new text begin commissionernew text end or authorized deputy registrar.

Subd. 5.

Renewal of fleet registration.

On the renewal of a fleet registrationnew text begin ,new text end the registrant deleted text begin shalldeleted text end new text begin mustnew text end pay full licensing fees for every vehicle registered in the preceding year unless the vehicle has been properly deleted from the fleet. In order to delete a vehicle from a fleet, the fleet registrant must surrender to the commissioner the registration card and license plates. The deleted text begin registrardeleted text end new text begin commissionernew text end may authorize alternative methods of deleting vehicles from a fleet, including destruction of the license plates and registration cards. If the card or license plates are lost or stolen, the fleet registrant deleted text begin shalldeleted text end new text begin mustnew text end submit a sworn statement stating the circumstances for the inability to surrender the card, stickers, and license plates. deleted text begin The commissioner shall assessdeleted text end new text begin A fleet registrant who fails to renew the licenses issued under this section or fails to report the removal of vehicles from the fleet within 30 days of the vehicles' removal must paynew text end a penalty of 20 percent of the total tax due on the fleet deleted text begin against the fleet registrant who fails to renew the licenses issued under this section or fails to report the removal of vehicles from the fleet within 30 daysdeleted text end . The penalty must be paid within 30 days after it is assessed.

Subd. 6.

Fee.

deleted text begin Instead ofdeleted text end new text begin The applicant for fleet registration must paynew text end the filing fee described in section 168.33, subdivision 7, deleted text begin the applicant for fleet registration shall pay an equivalent administrative feedeleted text end to the commissioner for each vehicle in the fleet.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024, for fleet vehicle transactions on or after that date. new text end

Sec. 32.

new text begin [168.1283] ROTARY INTERNATIONAL PLATES. new text end

new text begin Subdivision 1. new text end

new text begin Issuance of plates. new text end

new text begin The commissioner must issue Rotary International special license plates or a single motorcycle plate to an applicant who: new text end

new text begin (1) is a registered owner of a passenger automobile, noncommercial one-ton pickup truck, motorcycle, or self-propelled recreational motor vehicle; new text end

new text begin (2) pays the registration tax as required under section 168.013; new text end

new text begin (3) pays a fee in the amount specified under section 168.12, subdivision 5, for each set of plates, along with any other fees required by this chapter; new text end

new text begin (4) contributes $25 upon initial application and a minimum of $5 annually to the Rotary District 5950 Foundation account; and new text end

new text begin (5) complies with this chapter and rules governing registration of motor vehicles and licensing of drivers. new text end

new text begin Subd. 2. new text end

new text begin Design. new text end

new text begin The commissioner must adopt a suitable design for the plate that must include the Rotary International symbol and the phrase "Service Above Self." new text end

new text begin Subd. 3. new text end

new text begin Plates transfer. new text end

new text begin On application to the commissioner and payment of a transfer fee of $5, special plates may be transferred to another qualified motor vehicle that is registered to the same individual to whom the special plates were originally issued. new text end

new text begin Subd. 4. new text end

new text begin Exemption. new text end

new text begin Special plates issued under this section are not subject to section 168.1293, subdivision 2. new text end

new text begin Subd. 5. new text end

new text begin Contributions; account; appropriation. new text end

new text begin Contributions collected under subdivision 1, clause (4), must be deposited in the Rotary District 5950 Foundation account, which is established in the special revenue fund. Money in the account is appropriated to the commissioner of public safety. This appropriation is first for the annual cost of administering the account funds, and the remaining funds must be distributed to the Rotary District 5950 Foundation to further the rotary's mission of service, fellowship, diversity, integrity, and leadership. Funds distributed under this subdivision must be used on projects within this state. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025, for Rotary International special plates issued on or after that date. new text end

Sec. 33.

Minnesota Statutes 2023 Supplement, section 168.29, is amended to read:

168.29 REPLACEMENT PLATES.

(a) In the event of the defacement, loss, or destruction of any number plates or validation stickers, the deleted text begin registrardeleted text end new text begin commissionernew text end , upon receiving and filing a sworn statement of the vehicle owner, setting forth the circumstances of the defacement, loss, destruction, or theft of the number plates or validation stickers, together with any defaced plates or stickers and the payment of a fee calculated to cover the cost of replacement, deleted text begin shalldeleted text end new text begin mustnew text end issue a new set of plates or stickers.

(b) new text begin A licensed motor vehicle dealer may only apply for replacement plates upon application for a certificate of title in the name of a new owner or the dealer. The commissioner must issue a new set of plates or validation stickers upon application for title and registration after removal of plates pursuant to section 168A.11, subdivision 2.new text end

new text begin (c) Plates issued under this section are subject to section 168.12 new text end

new text begin (d) new text end The deleted text begin registrar shall thendeleted text end new text begin commissioner mustnew text end note on the deleted text begin registrar'sdeleted text end new text begin commissioner'snew text end records the issue of new number plates and deleted text begin shall proceed in such manner as the registrar may deem advisable todeleted text end new text begin must attempt tonew text end cancel and call in the original plates so as to insure against their use on another motor vehicle.

deleted text begin (c)deleted text end new text begin (e)new text end Duplicate registration certificates plainly marked as duplicates may be issued in like cases upon the payment of a $1 fee. Fees collected under this section must be deleted text begin paid into the state treasury and credited todeleted text end new text begin deposited innew text end the driver and vehicle services operating account under section 299A.705, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 34.

Minnesota Statutes 2022, section 168.301, subdivision 3, is amended to read:

Subd. 3.

Late fee.

In addition to any fee or tax otherwise authorized or imposed upon the transfer of title for a motor vehicle, the commissioner of public safety deleted text begin shalldeleted text end new text begin mustnew text end impose a $2 additional fee for failure to deliver a title transfer within deleted text begin ten business daysdeleted text end new text begin the period specified under section 168A.10, subdivision 2new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 35.

Minnesota Statutes 2022, section 168.33, is amended by adding a subdivision to read:

new text begin Subd. 8b. new text end

new text begin Competitive bidding. new text end

new text begin (a) Notwithstanding any statute or rule to the contrary, if a deputy registrar appointed under this section permanently stops offering services at the approved office location and permanently closes the approved office location, the commissioner must use a competitive bidding process for the appointment of a replacement deputy registrar. If available, the replacement deputy registrar appointed by the commissioner under this section must continue to offer services at the approved office location. If the existing office location is not available to the replacement deputy registrar, the replacement office location must be at a location that must be approved by the commissioner and must serve a similar service area as the existing office location. new text end

new text begin (b) The commissioner must not give a preference to a partner, owner, manager, or employee of the deputy registrar that has permanently stopped offering services at the closed office location in a competitive bidding process. new text end

new text begin (c) The commissioner must adopt rules to administer and enforce a competitive bidding process to select a replacement deputy registrar. If the replacement deputy registrar elects to not offer services at the office location of the prior registrar, Minnesota Rules, chapter 7406, governing the selection of a proposed office location of a driver's license agent, applies. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2025. new text end

Sec. 36.

Minnesota Statutes 2022, section 168A.10, subdivision 2, is amended to read:

Subd. 2.

Application for new certificate.

Except as provided in section 168A.11, the transferee deleted text begin shalldeleted text end new text begin mustnew text end , within deleted text begin tendeleted text end new text begin 20 calendarnew text end days after assignment to the transferee of the vehicle title certificate, execute the application for a new certificate of title in the space provided on the certificate, and cause the certificate of title to be mailed or delivered to the department. Failure of the transferee to comply with this subdivision deleted text begin shall resultdeleted text end new text begin resultsnew text end in the suspension of the vehicle's registration under section 168.17.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024, and applies to title transfers on or after that date. new text end

Sec. 37.

Minnesota Statutes 2022, section 168A.11, subdivision 1, is amended to read:

Subdivision 1.

Requirements upon subsequent transfer; service fee.

(a) A dealer who buys a vehicle and holds it for resale need not apply for a certificate of title. Upon transferring the vehicle to another person, other than by the creation of a security interest, the dealer deleted text begin shalldeleted text end new text begin mustnew text end promptly execute the assignment and warranty of title by a dealer, showing the names and addresses of the transferee and of any secured party holding a security interest created or reserved at the time of the resale, and the date of the security agreement in the spaces provided deleted text begin therefordeleted text end on the certificate of title or secure reassignment.

(b) If a dealer elects to apply for a certificate of title on a vehicle held for resale, the dealer need not register the vehicle but deleted text begin shalldeleted text end new text begin mustnew text end pay one month's registration tax. If a dealer elects to apply for a certificate of title on a vehicle held for resale, the deleted text begin department shalldeleted text end new text begin commissioner mustnew text end not place any legend on the title that no motor vehicle sales tax was paid by the dealerdeleted text begin ,deleted text end but may indicate on the title whether the vehicle is a new or used vehicle.

(c) With respect to motor vehicles subject to the provisions of section 325E.15, the dealer deleted text begin shalldeleted text end new text begin mustnew text end also, in the space provided deleted text begin therefordeleted text end on the certificate of title or secure reassignment, state the true cumulative mileage registered on the odometer or that the exact mileage is unknown if the odometer reading is known by the transferor to be different from the true mileage.

(d) The transferee deleted text begin shalldeleted text end new text begin mustnew text end complete the application for title section on the certificate of title or separate title application form prescribed by the deleted text begin departmentdeleted text end new text begin commissionernew text end . The dealer deleted text begin shalldeleted text end new text begin mustnew text end mail or deliver the certificate to the deleted text begin registrardeleted text end new text begin commissionernew text end or deputy registrar with the transferee's application for a new certificate and appropriate taxes and fees, within deleted text begin ten business daysdeleted text end new text begin the period specified under section 168A.10, subdivision 2new text end .

(e) With respect to vehicles sold to buyers who will remove the vehicle from this state, the dealer deleted text begin shalldeleted text end new text begin mustnew text end remove any license plates from the vehicle, issue a 31-day temporary permit pursuant to section 168.091, and notify the deleted text begin registrardeleted text end new text begin commissionernew text end within 48 hours of the sale that the vehicle has been removed from this state. The notification must be made in an electronic format prescribed by the deleted text begin registrardeleted text end new text begin commissionernew text end . The dealer may contract with a deputy registrar for the notification of sale to an out-of-state buyer. The deputy registrar may charge a fee of $7 per transaction to provide this service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024, and applies to title transfers on or after that date. new text end

Sec. 38.

Minnesota Statutes 2022, section 168A.11, subdivision 2, is amended to read:

Subd. 2.

Notification on vehicle held for resale; service fee.

Within 48 hours of acquiring a vehicle titled and registered in Minnesota, a dealer deleted text begin shalldeleted text end new text begin must:new text end

new text begin (1)new text end notify the deleted text begin registrardeleted text end new text begin commissionernew text end that the dealership is holding the vehicle for resale. The notification must be made electronically as prescribed by the deleted text begin registrardeleted text end new text begin commissionernew text end . The dealer may contract this service to a deputy registrar and the registrar may charge a fee of $7 per transaction to provide this servicenew text begin ; andnew text end

new text begin (2) remove any plates from the vehicle and dispose of them as prescribed by the commissionernew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024, for vehicles on or after that date. new text end

Sec. 39.

Minnesota Statutes 2022, section 168B.035, subdivision 3, is amended to read:

Subd. 3.

Towing prohibited.

(a) A towing authority may not tow a motor vehicle because:

(1) the vehicle has expired registration tabs that have been expired for less than 90 days; deleted text begin ordeleted text end

(2) the vehicle is at a parking meter on which the time has expired and the vehicle has fewer than five unpaid parking ticketsnew text begin ; ornew text end

new text begin (3) the vehicle is identified in conjunction with a citation to the vehicle owner or lessee for (i) a violation under section 169.06, subdivision 10, or (ii) a violation under section 169.14, subdivision 13new text end .

(b) A towing authority may tow a motor vehicle, notwithstanding paragraph (a), if:

(1) the vehicle is parked in violation of snow emergency regulations;

(2) the vehicle is parked in a rush-hour restricted parking area;

(3) the vehicle is blocking a driveway, alley, or fire hydrant;

(4) the vehicle is parked in a bus lane, or at a bus stop, during hours when parking is prohibited;

(5) the vehicle is parked within 30 feet of a stop sign and visually blocking the stop sign;

(6) the vehicle is parked in a disability transfer zone or disability parking space without a disability parking certificate or disability license plates;

(7) the vehicle is parked in an area that has been posted for temporary restricted parking (i) at least 12 hours in advance in a home rule charter or statutory city having a population under 50,000, or (ii) at least 24 hours in advance in another political subdivision;

(8) the vehicle is parked within the right-of-way of a controlled-access highway or within the traveled portion of a public street when travel is allowed there;

(9) the vehicle is unlawfully parked in a zone that is restricted by posted signs to use by fire, police, public safety, or emergency vehicles;

(10) the vehicle is unlawfully parked on property at the Minneapolis-St. Paul International Airport owned by the Metropolitan Airports Commission;

(11) a law enforcement official has probable cause to believe that the vehicle is stolen, or that the vehicle constitutes or contains evidence of a crime and impoundment is reasonably necessary to obtain or preserve the evidence;

(12) the driver, operator, or person in physical control of the vehicle is taken into custody and the vehicle is impounded for safekeeping;

(13) a law enforcement official has probable cause to believe that the owner, operator, or person in physical control of the vehicle has failed to respond to five or more citations for parking or traffic offenses;

(14) the vehicle is unlawfully parked in a zone that is restricted by posted signs to use by taxicabs;

(15) the vehicle is unlawfully parked and prevents egress by a lawfully parked vehicle;

(16) the vehicle is parked, on a school day during prohibited hours, in a school zone on a public street where official signs prohibit parking; or

(17) the vehicle is a junk, abandoned, or unauthorized vehicle, as defined in section 168B.011, and subject to immediate removal under this chapter.

new text begin (c) A violation under section 169.06, subdivision 10, or 169.14, subdivision 13, is not a traffic offense under paragraph (b), clause (13). new text end

Sec. 40.

Minnesota Statutes 2023 Supplement, section 169.011, subdivision 27, is amended to read:

Subd. 27.

Electric-assisted bicycle.

new text begin (a) new text end "Electric-assisted bicycle" means a bicycle with two or three wheels that:

(1) has a saddle and fully operable pedals for human propulsion;

(2) meets the requirements for bicycles under Code of Federal Regulations, title 16, part 1512, or successor requirements;

(3) is equipped with an electric motor that has a power output of not more than 750 watts;

(4) meets the requirements of a class 1, class 2, deleted text begin ordeleted text end class 3new text begin , or multiple modenew text end electric-assisted bicycle; and

(5) has a battery or electric drive system that has been tested to an applicable safety standard by a third-party testing laboratory.

new text begin (b) A vehicle is not an electric-assisted bicycle if it is designed, manufactured, or intended by the manufacturer or seller to be configured or modified to not meet the requirements for an electric-assisted bicycle or operate within the requirements for an electric-assisted bicycle class. new text end

new text begin (c) For purposes of this subdivision, "configured or modified" includes any of the following changes: new text end

new text begin (1) a mechanical switch or button; new text end

new text begin (2) a modification or change to the electric motor or the electric drive system; new text end

new text begin (3) the use of an application to increase or override the electric drive system; or new text end

new text begin (4) through any other means represented or intended by the manufacturer or seller to modify the vehicle to no longer meet the requirements or classification of an electric-assisted bicycle. new text end

Sec. 41.

Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision to read:

new text begin Subd. 45a. new text end

new text begin Multiple mode electric-assisted bicycle. new text end

new text begin "Multiple mode electric-assisted bicycle" means an electric-assisted bicycle equipped with switchable or programmable modes that provide for operation as two or more of a class 1, class 2, or class 3 electric-assisted bicycle in conformance with the definition and requirements under this chapter for each respective class. new text end

Sec. 42.

Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision to read:

new text begin Subd. 62b. new text end

new text begin Red light camera system. new text end

new text begin "Red light camera system" means an electronic system of one or more cameras or other motor vehicle sensors that is specifically designed to automatically produce recorded images of a motor vehicle operated in violation of a traffic-control signal, including related information technology for recorded image storage, retrieval, and transmission. new text end

Sec. 43.

Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision to read:

new text begin Subd. 77a. new text end

new text begin Speed safety camera system. new text end

new text begin "Speed safety camera system" means an electronic system of one or more cameras or other motor vehicle sensors that is specifically designed to automatically produce recorded images of a motor vehicle operated in violation of the speed limit, including related information technology for recorded image storage, retrieval, and transmission. new text end

Sec. 44.

Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision to read:

new text begin Subd. 85a. new text end

new text begin Traffic safety camera system. new text end

new text begin "Traffic safety camera system" means a red light camera system, a speed safety camera system, or both in combination. new text end

Sec. 45.

Minnesota Statutes 2022, section 169.011, is amended by adding a subdivision to read:

new text begin Subd. 92b. new text end

new text begin Vulnerable road user. new text end

new text begin "Vulnerable road user" means a person in the right-of-way of a highway, including but not limited to a bikeway and an adjacent sidewalk or trail, who is: new text end

new text begin (1) a pedestrian; new text end

new text begin (2) on a bicycle, including an electric-assisted bicycle, or on another nonmotorized vehicle or device; new text end

new text begin (3) on an electric personal assistive mobility device; new text end

new text begin (4) on an implement of husbandry; or new text end

new text begin (5) riding an animal. new text end

new text begin Vulnerable road user includes the operator and any passengers for a vehicle, device, or personal conveyance identified in this subdivision. new text end

Sec. 46.

Minnesota Statutes 2022, section 169.04, is amended to read:

169.04 LOCAL AUTHORITY.

(a) The provisions of this chapter shall not be deemed to prevent local authorities, with respect to streets and highways under their jurisdiction, and with the consent of the commissioner, with respect to state trunk highways, within the corporate limits of a municipality, or within the limits of a town in a county in this state now having or which may hereafter have, a population of 500,000 or more, and a land area of not more than 600 square miles, and within the reasonable exercise of the police power from:

(1) regulating the standing or parking of vehicles;

(2) regulating traffic by means of police officers or traffic-control signals;

(3) regulating or prohibiting processions or assemblages on the highways;

(4) designating particular highways as one-way roadways and requiring that all vehicles, except emergency vehicles, when on an emergency run, thereon be moved in one specific direction;

(5) designating any highway as a through highway and requiring that all vehicles stop before entering or crossing the same, or designating any intersection as a stop intersection, and requiring all vehicles to stop at one or more entrances to such intersections;

(6) restricting the use of highways as authorized in sections 169.80 to 169.88deleted text begin .deleted text end new text begin ; new text end

new text begin (7) regulating speed limits through the use of a speed safety camera system implemented under section 169.147; and new text end

new text begin (8) regulating traffic control through the use of a red light camera system implemented under section 169.147. new text end

(b) No ordinance or regulation enacted under paragraph (a), clause (4), (5), or (6), shall be effective until signs giving notice of such local traffic regulations are posted upon and kept posted upon or at the entrance to the highway or part thereof affected as may be most appropriate.

(c) No ordinance or regulation enacted under paragraph (a), clause (3), or any other provision of law shall prohibit:

(1) the use of motorcycles or vehicles utilizing flashing red lights for the purpose of escorting funeral processions, oversize buildings, heavy equipment, parades or similar processions or assemblages on the highways; or

(2) the use of motorcycles or vehicles that are owned by the funeral home and that utilize flashing red lights for the purpose of escorting funeral processions.

new text begin (d) Ordinances or regulations enacted under paragraph (a), clauses (7) and (8), are effective after August 1, 2025, and before August 1, 2029. new text end

Sec. 47.

Minnesota Statutes 2022, section 169.06, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Red light camera; penalty. new text end

new text begin (a) Subject to subdivision 11, if a motor vehicle is operated in violation of a traffic-control signal and the violation is identified through the use of a red light camera system implemented under section 169.147, the owner of the vehicle or the lessee of the vehicle is guilty of a petty misdemeanor and must pay a fine of $40. new text end

new text begin (b) A person who commits a first offense under paragraph (a) must be given a warning and is not subject to a fine or conviction under paragraph (a). A person who commits a second offense under paragraph (a) is eligible for diversion, which must include a traffic safety course established under section 169.147, subdivision 11. A person who enters diversion and completes the traffic safety course is not subject to a fine or conviction under paragraph (a). new text end

new text begin (c) Paragraph (b) does not apply to: new text end

new text begin (1) a violation that occurs in a commercial motor vehicle; or new text end

new text begin (2) a violation committed by a holder of a class A, B, or C commercial driver's license or commercial driver learner's permit, without regard to whether the violation was committed in a commercial motor vehicle or another vehicle. new text end

new text begin (d) This subdivision applies to violations committed on or after August 1, 2025, and before August 1, 2029. new text end

Sec. 48.

Minnesota Statutes 2022, section 169.06, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Red light camera; limitations. new text end

new text begin (a) An owner or lessee of a motor vehicle is not subject to a fine or conviction under subdivision 10 if any of the conditions under section 169.14, subdivision 14, paragraph (a), clauses (1) to (7), are met. new text end

new text begin (b) The owner or lessee of a motor vehicle may not be issued a citation under subdivision 10 and under another subdivision in this section for the same conduct. new text end

new text begin (c) A fine or conviction under subdivision 10 does not constitute grounds for revocation or suspension of a person's driver's license. new text end

new text begin (d) Except as provided in subdivision 10, paragraph (c), this subdivision applies to violations committed on or after August 1, 2025, and before August 1, 2029. new text end

Sec. 49.

Minnesota Statutes 2022, section 169.14, subdivision 10, is amended to read:

Subd. 10.

Radar; speed-measuring device; standards of evidence.

(a) In any prosecution in which the rate of speed of a motor vehicle is relevant, evidence of the speed as indicated on radar or other speed-measuring devicenew text begin , including but not limited to a speed safety camera system,new text end is admissible in evidence, subject to the following conditions:

(1) the officernew text begin or traffic enforcement agent under section 169.147new text end operating the device has sufficient training to properly operate the equipment;

(2) the officernew text begin or traffic enforcement agentnew text end testifies as to the manner in which the device was set up and operated;

(3) the device was operated with minimal distortion or interference from outside sources; and

(4) the device was tested by an accurate and reliable external mechanism, method, or system at the time it was set up.

(b) Records of tests made of such devices and kept in the regular course of operations of any law enforcement agency are admissible in evidence without further foundation as to the results of the tests. The records shall be available to a defendant upon demand. Nothing in this subdivision shall be construed to preclude or interfere with cross examination or impeachment of evidence of the rate of speed as indicated on the radar or speed-measuring device.

new text begin (c) Evidence from a speed safety camera system may be used solely for a citation or prosecution for a violation under subdivision 13. new text end

Sec. 50.

Minnesota Statutes 2022, section 169.14, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin Speed safety camera; penalty. new text end

new text begin (a) Subject to subdivision 14, if a motor vehicle is operated in violation of a speed limit and the violation is identified through the use of a speed safety camera system implemented under section 169.147, the owner of the vehicle or the lessee of the vehicle is guilty of a petty misdemeanor and must pay a fine of: new text end

new text begin (1) $40; or new text end

new text begin (2) $80, if the violation is for a speed at least 20 miles per hour in excess of the speed limit. new text end

new text begin (b) A person who commits a first offense under paragraph (a) must be given a warning and is not subject to a fine or conviction under paragraph (a). A person who commits a second offense under paragraph (a) is eligible for diversion, which must include a traffic safety course established under section 169.147, subdivision 11. A person who enters diversion and completes the traffic safety course is not subject to a fine or conviction under paragraph (a). new text end

new text begin (c) Paragraph (b) does not apply to: new text end

new text begin (1) a violation that occurs in a commercial motor vehicle; or new text end

new text begin (2) a violation committed by a holder of a class A, B, or C commercial driver's license or commercial driver learner's permit, without regard to whether the violation was committed in a commercial motor vehicle or another vehicle. new text end

new text begin (d) This subdivision applies to violations committed on or after August 1, 2025, and before August 1, 2029. new text end

Sec. 51.

Minnesota Statutes 2022, section 169.14, is amended by adding a subdivision to read:

new text begin Subd. 14. new text end

new text begin Speed safety camera; limitations. new text end

new text begin (a) An owner or lessee of a motor vehicle is not subject to a fine or conviction under subdivision 13 if: new text end

new text begin (1) the vehicle was stolen at the time of the violation; new text end

new text begin (2) a transfer of interest in the vehicle in compliance with section 168A.10 was made before the time of the violation; new text end

new text begin (3) the vehicle owner is a lessor of the motor vehicle, and the lessor identifies the name and address of the lessee; new text end

new text begin (4) the vehicle is an authorized emergency vehicle operated in the performance of official duties at the time of the violation; new text end

new text begin (5) another person is convicted, within the meaning under section 171.01, subdivision 29, for the same violation; new text end

new text begin (6) the vehicle owner provides a sworn statement to the court or prosecuting authority that the owner was not operating the vehicle at the time of the violation; or new text end

new text begin (7) the vehicle owner provides a sworn statement to the court or prosecuting authority that the owner was operating the vehicle at the time of the violation under the circumstances of a medical emergency for either the driver or a passenger in the vehicle. new text end

new text begin (b) The owner or lessee of a motor vehicle may not be issued a citation under subdivision 13 and under another subdivision in this section for the same conduct. new text end

new text begin (c) Except as provided in subdivision 13, paragraph (c), a fine or conviction under subdivision 13 does not constitute grounds for revocation or suspension of a person's driver's license. new text end

new text begin (d) A vehicle owner asserting a defense under paragraph (a), clause (7), must provide an accompanying sworn statement from the physician responsible for treatment of the underlying condition or emergency that necessitated medical attention. new text end

new text begin (e) This subdivision applies to violations committed on or after August 1, 2025, and before August 1, 2029. new text end

Sec. 52.

new text begin [169.147] TRAFFIC SAFETY CAMERA SYSTEM PILOT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Camera-based traffic enforcement" means enforcement of traffic control through the use of a red light camera system, speed limits through the use of a speed safety camera system, or both. new text end

new text begin (c) "Commissioner" means the commissioner of transportation. new text end

new text begin (d) "Commissioners" means the commissioner of transportation as the lead in coordination with the commissioner of public safety. new text end

new text begin (e) "Implementing authority" means either: new text end

new text begin (1) the commissioners with respect to trunk highways for the work zone pilot program provided under subdivision 17; or new text end

new text begin (2) a local authority specified in paragraph (f) that implements the traffic safety camera system pilot program. new text end

new text begin (f) "Local authority" means either the city of Minneapolis or the city of Mendota Heights, which are authorized to conduct the pilot program. new text end

new text begin (g) "Monitoring site" means a location at which a traffic safety camera system is placed and operated under this section. new text end

new text begin (h) "Pilot program" means the traffic safety camera pilot program established in this section. new text end

new text begin (i) "Traffic enforcement agent" means a licensed peace officer or an employee of a local authority who is designated as provided in this section. new text end

new text begin Subd. 2. new text end

new text begin Pilot program establishment. new text end

new text begin (a) In conformance with this section, the commissioner of transportation, in coordination with the commissioner of public safety, must establish a traffic safety camera pilot program that provides for education and enforcement of speeding violations, traffic-control signal violations, or both in conjunction with use of traffic safety camera systems. new text end

new text begin (b) The authority for camera-based traffic enforcement under the pilot program is limited to August 1, 2025, to July 31, 2029. new text end

new text begin (c) Only the following may implement camera-based traffic enforcement under the pilot program: new text end

new text begin (1) the commissioners, as provided under paragraph (d); new text end

new text begin (2) the city of Minneapolis, as provided under paragraph (e); and new text end

new text begin (3) the city of Mendota Heights. new text end

new text begin (d) Under the pilot program, the commissioners must, beginning August 1, 2025, commence enforcement of speeding violations in trunk highway work zones as specified under subdivision 17. new text end

new text begin (e) The city of Minneapolis is prohibited from implementing the pilot program or camera-based traffic enforcement through or in substantive coordination with the city's police department. new text end

new text begin Subd. 3. new text end

new text begin Local authority requirements. new text end

new text begin Prior to implementation of camera-based traffic enforcement, a local authority must: new text end

new text begin (1) incorporate both camera-based traffic enforcement and additional strategies designed to improve traffic safety in a local traffic safety action plan, transportation plan, or comprehensive plan; and new text end

new text begin (2) review and ensure compliance with the requirements under this section. new text end

new text begin Subd. 4. new text end

new text begin Traffic safety camera system requirements. new text end

new text begin (a) By July 1, 2025, the commissioners must establish traffic safety camera system standards that include: new text end

new text begin (1) recording and data requirements as specified in subdivision 15; new text end

new text begin (2) requirements for monitoring site signage in conformance with the requirements under subdivision 5, paragraph (b), clause (3); new text end

new text begin (3) procedures for traffic safety camera system placement in conformance with the requirements under subdivision 6; new text end

new text begin (4) training and qualification of individuals to inspect and calibrate a traffic safety camera system; new text end

new text begin (5) procedures for initial calibration of the traffic safety camera system prior to deployment; and new text end

new text begin (6) requirements for regular traffic safety camera system inspection and maintenance by a qualified individual. new text end

new text begin (b) Prior to establishing the standards under paragraph (a), the commissioners must solicit review and comments and consider any comments received. new text end

new text begin (c) An implementing authority must follow the requirements and standards established under this subdivision. new text end

new text begin Subd. 5. new text end

new text begin Public engagement and notice. new text end

new text begin (a) The commissioner and each implementing authority must maintain information on their respective websites that, at a minimum: new text end

new text begin (1) summarizes implementation of traffic safety camera systems under the pilot program; new text end

new text begin (2) provides each camera system impact study performed by the implementing authority under subdivision 6, paragraph (b); new text end

new text begin (3) provides information and procedures for a person to contest a citation under the pilot program; and new text end

new text begin (4) identifies the enforcement locations under the pilot program. new text end

new text begin (b) An implementing authority must: new text end

new text begin (1) implement a general public engagement and information campaign prior to commencing camera-based speed enforcement under the pilot program; new text end

new text begin (2) perform public engagement as part of conducting a camera system impact study under subdivision 6, paragraph (b); and new text end

new text begin (3) place conspicuous signage prior to the motorist's arrival at each monitoring site, which must: new text end

new text begin (i) notify motor vehicle operators of the use of a traffic safety camera system to detect violations; and new text end

new text begin (ii) if a speed safety camera is in use, identify the speed limit. new text end

new text begin (c) Public engagement under paragraph (b) must include but is not limited to: new text end

new text begin (1) outreach to populations that are traditionally underrepresented in public policy or planning processes; new text end

new text begin (2) consolidation and analysis of public feedback; and new text end

new text begin (3) creation of an engagement summary that identifies public feedback and the resulting impacts on implementation of camera-based traffic enforcement. new text end

new text begin Subd. 6. new text end

new text begin Placement requirements. new text end

new text begin (a) A local authority with fewer than 10,000 residents may place no more than one traffic safety camera system, whether the camera system is activated or inactive. A local authority with at least 10,000 residents may place no more than one traffic safety camera system per 10,000 residents, whether the camera system is activated or inactive. An implementing authority may move the location of a traffic safety camera system if the placement requirements under this subdivision are met. new text end

new text begin (b) An implementing authority may only place a traffic safety camera system in conformance with the results of a camera system impact study. At a minimum, the study must: new text end

new text begin (1) include evaluation of crash rates and severity, vehicle speed, equity, and traffic safety treatment alternatives; new text end

new text begin (2) identify traffic safety camera system locations; and new text end

new text begin (3) explain how the locations comply with the placement requirements under paragraph (d). new text end

new text begin (c) An implementing authority may only place a traffic safety camera system: new text end

new text begin (1) in a trunk highway work zone; or new text end

new text begin (2) at a location that: new text end

new text begin (i) is within 2,000 feet of (A) a public or nonpublic school, (B) a school zone established under section 169.14, subdivision 5a, or (C) a public or private postsecondary institution; and new text end

new text begin (ii) has an identified traffic safety concern, as indicated by crash or law enforcement data, safety plans, or other documentation. new text end

new text begin (d) An implementing authority that places more than one traffic safety camera system must ensure that the cameras are placed in geographically distinct areas and in multiple communities with differing socioeconomic conditions. new text end

new text begin (e) An implementing authority may place a traffic safety camera system on a street or highway that is not under its jurisdiction only upon approval by the road authority that has jurisdiction. new text end

new text begin Subd. 7. new text end

new text begin Traffic-control devices. new text end

new text begin (a) An implementing authority must not adjust the change interval for the steady yellow indication in a traffic-control signal: new text end

new text begin (1) for one month prior to beginning to operate a red light camera system at the associated intersection; or new text end

new text begin (2) during the period that the red light camera system is operated at the associated intersection. new text end

new text begin (b) The yellow change interval for a traffic-control signal that is subject to paragraph (a) must meet or exceed the standards and guidance specified in the Manual on Uniform Traffic Control Devices adopted under section 169.06, subdivision 1. new text end

new text begin (c) An implementing authority that adjusts the yellow change interval for a traffic-control signal at an intersection where a red light camera system is being operated must deactivate the red light camera system and subsequently meet the requirements under paragraph (a). new text end

new text begin Subd. 8. new text end

new text begin Traffic enforcement agents. new text end

new text begin (a) To meet the requirement established in subdivision 2, paragraph (e), the city of Minneapolis must designate one or more permanent employees of the authority, who is not a licensed peace officer, as a traffic enforcement agent. An employee of a private entity may not be designated as a traffic enforcement agent. A traffic enforcement agent who is not a licensed peace officer has the authority to issue citations under this section only while engaged in job duties and otherwise has none of the other powers and privileges reserved to peace officers. new text end

new text begin (b) The city of Mendota Heights must designate a sworn peace officer as a traffic enforcement agent. new text end

new text begin (c) An implementing authority must ensure that a traffic enforcement agent is properly trained in the use of equipment and the requirements governing traffic safety camera implementation. new text end

new text begin Subd. 9. new text end

new text begin Citations; warnings. new text end

new text begin (a) A traffic enforcement agent under the pilot program has the exclusive authority to issue a citation to the owner or lessee of a motor vehicle for (1) a violation under section 169.06, subdivision 10, and (2) a violation under section 169.14, subdivision 13. new text end

new text begin (b) A traffic enforcement agent may only issue a citation if: new text end

new text begin (1) the violation is committed at least 30 days after the relevant implementing authority has commenced camera-based traffic enforcement; new text end

new text begin (2) with respect to speed limits, the speeding violation is at least ten miles per hour in excess of the speed limit; and new text end

new text begin (3) a traffic enforcement agent has inspected and verified recorded images provided by the traffic safety camera system. new text end

new text begin (c) An implementing authority must provide a warning for a traffic-control signal violation under section 169.06, subdivision 10, or a speeding violation under section 169.14, subdivision 13, for the period from (1) the date when camera-based traffic enforcement is first commenced, to (2) the date when citations are authorized under paragraph (b), clause (1). new text end

new text begin (d) Notwithstanding section 169.022, an implementing authority may specify a speed in excess of the speed limit that is higher than the amount specified in paragraph (b), clause (2), at which to proceed with issuance of a citation. new text end

new text begin (e) A citation may be issued through the United States mail if postmarked within: (1) 14 days of the violation for a vehicle registered in Minnesota; or (2) 30 days of the violation for a vehicle registered outside of Minnesota. Section 168.346, subdivision 2, applies to a private entity that provides citation mailing services under this section. new text end

new text begin Subd. 10. new text end

new text begin Uniform citation. new text end

new text begin (a) There must be a uniform traffic safety camera citation issued throughout the state by a traffic enforcement agent for a violation as provided under this section. The uniform traffic safety camera citation is in the form and has the effect of a summons and complaint. new text end

new text begin (b) The commissioner of public safety must prescribe the detailed form of the uniform traffic safety camera citation. As appropriate, the citation design must conform with the requirements for a uniform traffic ticket under section 169.99, subdivisions 1 and 1d. The citation design must include: new text end

new text begin (1) a brief overview of the pilot program and implementation of traffic safety camera systems; new text end

new text begin (2) a summary of the circumstances of the citation that includes identification of the motor vehicle involved, the date and time of the violation, and the location where the violation occurred; new text end

new text begin (3) copy of the recorded image or primary images used to identify a violation; new text end

new text begin (4) a notification that the recorded images under clause (3) are evidence of a violation under section 169.06, subdivision 10, or 169.14, subdivision 13; new text end

new text begin (5) a statement signed by the traffic enforcement agent who issued the citation stating that the agent has inspected the recorded images and determined that the violation occurred in the specified motor vehicle; new text end

new text begin (6) a summary of the limitations under sections 169.06, subdivision 11, and 169.14, subdivision 14; new text end

new text begin (7) notification that an owner is ineligible for diversion if the violation was committed by a holder of a class A, B, or C commercial driver's license or commercial driver learner's permit, without regard to whether the violation was committed in a commercial motor vehicle or another vehicle; new text end

new text begin (8) information on the diversion and traffic safety course eligibility and requirements under sections 169.06, subdivision 10, paragraph (b), and 169.14, subdivision 13, paragraph (b); new text end

new text begin (9) the total amount of the fine imposed; new text end

new text begin (10) a notification that the person has the right to contest the citation; new text end

new text begin (11) information on the process and procedures for a person to contest the citation; and new text end

new text begin (12) a statement that payment of the fine constitutes a plea of guilty and failure to appear in court is considered a plea of guilty, as provided under section 169.91. new text end

new text begin (c) The commissioner of public safety must make the information required under paragraph (b) available in languages that are commonly spoken in the state and in each area in which a local authority has implemented camera-based traffic enforcement. new text end

new text begin Subd. 11. new text end

new text begin Traffic safety course. new text end

new text begin (a) The commissioners must establish a traffic safety course that provides at least 30 minutes of instruction on speeding, traffic-control signals, and other traffic safety topics. The curriculum must include safety risks associated with speed and speeding in school zones and work zones. new text end

new text begin (b) The commissioners must not impose a fee for an individual who is authorized to attend the course under sections 169.06, subdivision 10, and 169.14, subdivision 13. new text end

new text begin Subd. 12. new text end

new text begin Third-party agreements. new text end

new text begin (a) An implementing authority may enter into agreements with a private entity for operations, services, or equipment under this section. Payment under a contract with a private entity must not be based on the number of violations, citations issued, or other similar means. new text end

new text begin (b) An implementing authority that enters into a third-party agreement under this subdivision must perform a data practices audit of the private entity to confirm compliance with the requirements under subdivisions 14 to 16 and chapter 13. An audit must be undertaken at least every other year. new text end

new text begin Subd. 13. new text end

new text begin Use of revenue. new text end

new text begin (a) Revenue from citations received by an implementing authority that is attributable to camera-based traffic enforcement must be allocated as follows: new text end

new text begin (1) first as necessary to provide for implementation costs, which may include but are not limited to procurement and installation of traffic safety camera systems, traffic safety planning, and public engagement; and new text end

new text begin (2) the remainder for traffic safety measures that perform traffic calming. new text end

new text begin (b) The amount expended under paragraph (a), clause (2), must supplement and not supplant existing expenditures for traffic safety. new text end

new text begin Subd. 14. new text end

new text begin Data practices; general requirements. new text end

new text begin (a) All data collected by a traffic safety camera system are private data on individuals as defined in section 13.02, subdivision 12, or nonpublic data as defined in section 13.02, subdivision 9, unless the data are public under section 13.82, subdivision 2, 3, or 6, or are criminal investigative data under section 13.82, subdivision 7. new text end

new text begin (b) An agreement with a private entity and an implementing authority pursuant to subdivision 12 is subject to section 13.05, subdivisions 6 and 11. new text end

new text begin (c) A private entity must use the data gathered under this section only for purposes of camera-based traffic enforcement under the pilot program and must not share or disseminate the data with an entity other than the appropriate implementing authority, except pursuant to a court order. Nothing in this subdivision prevents a private entity from sharing or disseminating summary data, as defined in section 13.02, subdivision 19. new text end

new text begin (d) Traffic safety camera system data are not subject to subpoena, discovery, or admission into evidence in any prosecution, civil action, or administrative process that is not taken pursuant to section 169.06, subdivision 10, or 169.14, subdivision 13. new text end

new text begin Subd. 15. new text end

new text begin Data practices; traffic safety camera system. new text end

new text begin A traffic safety camera system: new text end

new text begin (1) is limited to collection of the following data: new text end

new text begin (i) recorded video or images of the rear license plate of a motor vehicle; new text end

new text begin (ii) recorded video or images of motor vehicles and areas surrounding the vehicles to the extent necessary to (A) identify a violation of a traffic-control device, or (B) calculate vehicle speeds; new text end

new text begin (iii) date, time, and vehicle location that correlates to the data collected under item (i) or (ii); and new text end

new text begin (iv) general traffic data: new text end

new text begin (A) collected specifically for purposes of pilot program analysis and evaluation; new text end

new text begin (B) that does not include recorded video or images; new text end

new text begin (C) in which individuals or unique vehicles are not identified; and new text end

new text begin (D) from which an individual or unique vehicle is not ascertainable; new text end

new text begin (2) must not record in a manner that makes any individual personally identifiable, including but not limited to the motor vehicle operator or occupants; and new text end

new text begin (3) may only record or retain the data specified in clause (1), items (i) to (iii), if the traffic safety camera system identifies an appropriate potential violation for review by a traffic enforcement agent. new text end

new text begin Subd. 16. new text end

new text begin Data practices; destruction of data. new text end

new text begin (a) Notwithstanding section 138.17, and except as otherwise provided in this subdivision, data collected by a traffic safety camera system must be destroyed within 30 days of the date of collection unless the data are criminal investigative data under section 13.82, subdivision 7, related to a violation of a traffic-control signal or a speed limit. new text end

new text begin (b) Upon written request to a law enforcement agency from an individual who is the subject of a pending criminal charge or complaint, along with the case or complaint number and a statement that the data may be used as exculpatory evidence, data otherwise subject to destruction under paragraph (a) must be preserved by the law enforcement agency until the charge or complaint is resolved or dismissed. new text end

new text begin (c) Upon written request from a program participant under chapter 5B, data collected by a traffic safety camera system related to the program participant must be destroyed at the time of collection or upon receipt of the request, whichever occurs later, unless the data are active criminal investigative data. The existence of a request submitted under this paragraph is private data on individuals as defined in section 13.02, subdivision 12. new text end

new text begin (d) Notwithstanding section 138.17, data collected by a traffic safety camera system must be destroyed within three years of the resolution of a citation issued pursuant to this section. new text end

new text begin (e) The destruction requirements under this subdivision do not apply to: (1) general traffic data as provided under subdivision 15, clause (1), item (iv); and (2) data that identifies the number of warnings or citations issued to an individual under this section. new text end

new text begin Subd. 17. new text end

new text begin Work zone pilot project. new text end

new text begin (a) By August 1, 2025, the commissioners must implement a speed safety camera pilot project that provides for education of speeding violations in conjunction with the development and study of the use of speed safety camera systems. new text end

new text begin (b) The commissioners must issue a warning for a violation of section 169.14, subdivision 13, captured by a speed safety camera system and must not impose any fine for a second or subsequent violation. new text end

new text begin (c) The warning issued by the commissioners must include easily understandable information on speeding, traffic-control signals, and other safety risks associated with speed and speeding in work zones. new text end

new text begin (d) The commissioner must establish an implementation schedule that begins commencement of camera-based traffic enforcement on at least two, but no more than four, trunk highway work zone segments by August 1, 2025. The commissioners may select different trunk highway work zones. The commissioners must conduct the work zone pilot project in geographically diverse areas and must consider traffic patterns, work zone accident rates, historic speed enforcement and citation rates, and other factors to study further deployment of speed camera systems in additional work zones. new text end

new text begin (e) By July 1, 2025, the commissioners of transportation and public safety must establish standards, schedules, curricula, and requirements for camera-based traffic enforcement in a trunk highway work zone. new text end

new text begin (f) The authority for the work zone pilot project is limited to August 1, 2025, to July 31, 2029. new text end

new text begin Subd. 18. new text end

new text begin Exempt from rulemaking. new text end

new text begin Rules adopted to implement this section are exempt from rulemaking under chapter 14 and are not subject to exempt rulemaking procedures under section 14.386. new text end

new text begin Subd. 19. new text end

new text begin Expiration. new text end

new text begin This section expires July 31, 2029. new text end

Sec. 53.

Minnesota Statutes 2022, section 169.18, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin Impeding motorcycle. new text end

new text begin An operator of a motor vehicle must not intentionally impede or attempt to prevent the operation of a motorcycle when the motorcycle is operated under the conditions specified in section 169.974, subdivision 5, paragraph (g). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, for violations committed on or after that date. new text end

Sec. 54.

Minnesota Statutes 2022, section 169.21, subdivision 6, is amended to read:

Subd. 6.

Driver education deleted text begin curriculumdeleted text end new text begin ; vulnerable road usersnew text end .

The deleted text begin class D curriculum, in addition to driver education classroom curriculum prescribed in rules of statutes for class D motor vehicles, must include instruction ondeleted text end new text begin commissioner must adopt rules for persons enrolled in driver education programs offered at public schools, private schools, and commercial driver training schools to require inclusion of a section on vulnerable road users in the course of instruction. The instruction must include information on:new text end

new text begin (1) the rights and responsibilities of vulnerable road users, as defined in section 169.011, subdivision 92b; new text end

new text begin (2)new text end thenew text begin specificnew text end duties of a driver when encountering a bicycle, other nonmotorized vehicles, or a pedestriandeleted text begin .deleted text end new text begin ;new text end

new text begin (3) safety risks for vulnerable road users and motorcyclists or other operators of two- or three-wheeled vehicles; and new text end

new text begin (4) best practices to minimize dangers and avoid collisions with vulnerable road users and motorcyclists or other operators of two- or three-wheeled vehicles. new text end

Sec. 55.

Minnesota Statutes 2022, section 169.222, subdivision 2, is amended to read:

Subd. 2.

Manner and number riding.

deleted text begin No bicycle, including a tandem bicycle, cargo or utility bicycle, or trailer, shall be used to carry more persons at one time than the number for which it is designed and equipped, except an adult rider may carry a child in a seat designed for carrying children that is securely attached to the bicycle. deleted text end new text begin (a) For purposes of this subdivision,"bicycle" includes a tandem bicycle, electric-assisted bicycle, cargo or utility bicycle, or trailer. new text end

new text begin (b) No person may operate a bicycle while carrying more than the number of riders for which the bicycle is designed or equipped. new text end

new text begin (c) Notwithstanding paragraph (b), an adult bicycle operator may carry a child in a trailer or seat designed for carrying children that is securely attached to a bicycle. new text end

Sec. 56.

Minnesota Statutes 2022, section 169.222, subdivision 6a, is amended to read:

Subd. 6a.

Electric-assisted bicycle; riding rules.

(a) A person may operate an electric-assisted bicycle in the same manner as provided for operation of other bicycles, including but not limited to operation on the shoulder of a roadway, a bicycle lane, and a bicycle route, and operation without the motor engaged on a bikeway or bicycle trail.

(b) A person may operate a class 1 or class 2 electric-assisted bicycle with the motor engaged on a bicycle path, bicycle trail, or shared use path unless prohibited under section 85.015, subdivision 1d; 85.018, subdivision 2, paragraph (d); or 160.263, subdivision 2, paragraph (b), as applicable.

(c) A person may operate a class 3 electric-assisted bicycle new text begin or multiple mode electric-assisted bicycle new text end with the motor engaged on a bicycle path, bicycle trail, or shared use path unless the local authority or state agency having jurisdiction over the bicycle path or trail prohibits the operation.

(d) The local authority or state agency having jurisdiction over a trail new text begin or over a bike park new text end that is designated as nonmotorized and that has a natural surface tread made by clearing and grading the native soil with no added surfacing materials may regulate the operation of an electric-assisted bicycle.

(e) deleted text begin Nodeleted text end new text begin Anew text end person under the age of 15 deleted text begin shalldeleted text end new text begin must notnew text end operate an electric-assisted bicycle.

Sec. 57.

Minnesota Statutes 2022, section 169.222, subdivision 6b, is amended to read:

Subd. 6b.

Electric-assisted bicycle; equipment.

(a) The manufacturer or distributor of an electric-assisted bicycle must apply a label to the bicycle that is permanently affixed in a prominent location. The label must contain the deleted text begin classificationdeleted text end new text begin classnew text end number, top assisted speed, and motor wattage of the electric-assisted bicycle, and must be printed in a legible font with at least 9-point type.new text begin A multiple mode electric-assisted bicycle must have labeling that identifies the highest class or each of the electric-assisted bicycle classes in which it is capable of operating.new text end

(b) A person must not modify an electric-assisted bicycle to change the motor-powered speed capability or motor engagementnew text begin so that the bicycle no longer meets the requirements for the applicable class,new text end unlessnew text begin :new text end

new text begin (1)new text end the person replaces the label required in paragraph (a) with revised informationdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (2) for a vehicle that no longer meets the requirements for any electric-assisted bicycle class, the person removes the labeling as an electric-assisted bicycle. new text end

(c) An electric-assisted bicycle must operate in a manner so that the electric motor is disengaged or ceases to function deleted text begin when the rider stops pedaling ordeleted text end new text begin : (1)new text end when the brakes are appliednew text begin ; or (2) except for a class 2 electric-assisted bicycle or a multiple mode electric-assisted bicycle operating in class 2 mode, when the rider stops pedalingnew text end .

(d) A class 3 electric-assisted bicyclenew text begin or multiple mode electric-assisted bicyclenew text end must be equipped with a speedometer that displays the speed at which the bicycle is traveling in miles per hour.

new text begin (e) A multiple mode electric-assisted bicycle equipped with a throttle must not be capable of exceeding 20 miles per hour on motorized propulsion alone in any mode when the throttle is engaged. new text end

Sec. 58.

Minnesota Statutes 2023 Supplement, section 169.223, subdivision 4, is amended to read:

Subd. 4.

Headlight requirement.

The provisions of section 169.974, subdivision 5, paragraph deleted text begin (i)deleted text end new text begin (k)new text end , apply to motorized bicycles that are equipped with headlights. A new motorized bicycle sold or offered for sale in Minnesota must be equipped with a headlight.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 59.

Minnesota Statutes 2022, section 169.346, subdivision 2, is amended to read:

Subd. 2.

Disability parking space signs.

(a) Parking spaces reserved for physically disabled persons must be designated and identified by the posting of signs incorporating the international symbol of access in white on blue and indicating that violators are subject to a fine of up to $200. These parking spaces are reserved for disabled persons with motor vehicles displaying the required certificate, plates, permit valid for 30 days, or insignia.

(b) For purposes of this subdivision, a parking space that is clearly identified as reserved for physically disabled persons by a permanently posted sign that does not meet all design standards, is considered designated and reserved for physically disabled persons. A sign posted for the purpose of this section must be visible from inside a motor vehicle parked in the space, be kept clear of snow or other obstructions which block its visibility, and be nonmovable.

new text begin (c) By August 1, 2024, the Minnesota Council on Disability must select and propose a statewide uniform disability parking space sign that is consistent with the Americans with Disabilities Act. The selected and proposed sign must not display any variation of the word "handicapped." As part of selecting and proposing a statewide uniform disability parking space sign, the Minnesota Council on Disability may encourage owners or managers of property to replace existing disability parking space signs at the owner's earliest opportunity once the sign is made available for distribution. new text end

new text begin (d) Beginning on August 1, 2025, an applicable owner or manager of property on which a disability parking sign may be located must install and display the new uniform disability parking sign required in paragraph (c) at: new text end

new text begin (1) newly created on-site parking facilities; and new text end

new text begin (2) existing on-site parking facilities when the manager or owner replaces existing disability parking space signs. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 60.

new text begin [169.515] LIGHTS ON GRANT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "high poverty area" means a census tract as reported in the most recently completed decennial census published by the United States Bureau of the Census that has a poverty area rate of at least 20 percent or in which the median family income does not exceed 80 percent of the greater of the statewide or metropolitan median family income. new text end

new text begin Subd. 2. new text end

new text begin Grant program established. new text end

new text begin The Lights On grant program is established under this section to provide drivers on Minnesota roads with vouchers of up to $250 to use at participating auto repair shops to repair or replace broken or malfunctioning lighting equipment required under sections 169.49 to 169.51. new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin Counties, cities, towns, the State Patrol, and local law enforcement agencies, including law enforcement agencies of a federally recognized Tribe, as defined in United States Code, title 25, section 5304(e), are eligible to apply for grants under this section. new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin (a) The commissioner of public safety must develop application materials and procedures for the Lights On grant program. new text end

new text begin (b) The application must describe the type or types of intended vouchers, the amount of money requested, and any other information deemed necessary by the commissioner. new text end

new text begin (c) Applicants must submit an application under this section in the form and manner prescribed by the commissioner. new text end

new text begin (d) Applicants must describe how grant money will be used to provide and distribute vouchers to drivers. new text end

new text begin Subd. 5. new text end

new text begin Use of grant award. new text end

new text begin (a) Applicants must keep records of vouchers distributed and records of all expenses associated with awarded grant money. new text end

new text begin (b) Applicants must not use awarded grant money for administrative costs. A nonstate organization that contracts with the commissioner to operate the program must not retain any of the grant money for administrative costs. new text end

new text begin Subd. 6. new text end

new text begin Vouchers. new text end

new text begin (a) An applicant must not distribute more than one voucher per motor vehicle in a 90-day period. new text end

new text begin (b) A voucher that is distributed to a driver must contain the following information: new text end

new text begin (1) the motor vehicle license plate number; new text end

new text begin (2) the date of issuance; and new text end

new text begin (3) the badge number of the peace officer distributing the voucher. new text end

new text begin Subd. 7. new text end

new text begin Grant criteria. new text end

new text begin Preference for grant awards must be given to applicants whose proposals provide resources and vouchers to individuals residing in geographic areas that (1) have higher crash rates or higher numbers of tickets issued for broken or malfunctioning lighting equipment, or (2) are high poverty areas. new text end

new text begin Subd. 8. new text end

new text begin Reporting. new text end

new text begin (a) By February 1 each year, grant recipients must submit a report to the commissioner itemizing all expenditures made using grant money during the previous calendar year, the purpose of each expenditure, and the disposition of each contact made with drivers with malfunctioning or broken lighting equipment. The report must be in the form and manner prescribed by the commissioner. new text end

new text begin (b) By March 15 each year, the commissioner must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. The report must list, for the previous calendar year: new text end

new text begin (1) the participating grant recipients and the total number and dollar amount of vouchers that each grant recipient distributed; and new text end

new text begin (2) the participating auto repair shops and the total number and dollar amount of vouchers that each received. new text end

new text begin Grant recipients and any program organization contracted by the commissioner must provide information as requested by the commissioner to complete the report required under this paragraph. new text end

Sec. 61.

Minnesota Statutes 2022, section 169.974, subdivision 5, is amended to read:

Subd. 5.

Driving rules.

(a) An operator of a motorcycle must ride only upon a permanent and regular seat which is attached to the vehicle for that purpose. No other person deleted text begin shalldeleted text end new text begin maynew text end ride on a motorcycle, except that passengers may ride (1) upon a permanent and regular operator's seat if designed for two persons, (2) upon additional seats attached to or in the vehicle, or (3) in a sidecar attached to the vehicle. The operator of a motorcycle is prohibited from carrying passengers in a number in excess of the designed capacity of the motorcycle or sidecar attached to it. A passenger is prohibited from being carried in a position that interferes with the safe operation of the motorcycle or the view of the operator.

(b) No person deleted text begin shalldeleted text end new text begin maynew text end ride upon a motorcycle as a passenger unless the person can reach the footrests or floorboards with both feet.

(c) Except for passengers of sidecars, drivers and passengers of three-wheeled motorcycles, and persons in an autocycle, no person deleted text begin shalldeleted text end new text begin maynew text end operate or ride upon a motorcycle except while sitting astride the seat, facing forward, with one leg on either side of the motorcycle.

(d) No person deleted text begin shalldeleted text end new text begin maynew text end operate a motorcycle while carrying animals, packages, bundles, or other cargo deleted text begin whichdeleted text end new text begin thatnew text end prevent the person from keeping both hands on the handlebars.

(e) deleted text begin No person shall operate a motorcycle between lanes of moving or stationary vehicles headed in the same direction, nor shall any person drive a motorcycle abreast of or overtake or pass another vehicle within the same traffic lane.deleted text end Motorcycles may, with the consent of both drivers, be operated not more than two abreast in a single traffic lane if the vehicles fit safely within the designated space of the lane.

(f) new text begin Except under the conditions specified in paragraph (g), no person may operate a motorcycle:new text end

new text begin (1) between lanes of moving or stationary vehicles headed in the same direction of travel; new text end

new text begin (2) abreast of moving or stationary vehicles within the same traffic lane; or new text end

new text begin (3) to overtake or pass another vehicle within the same traffic lane. new text end

new text begin (g) A person may operate a motorcycle and overtake and pass another vehicle in the same direction of travel and within the same traffic lane if the motorcycle is operated: new text end

new text begin (1) at not more than 25 miles per hour; and new text end

new text begin (2) no more than 15 miles per hour over the speed of traffic in the relevant traffic lanes. new text end

new text begin (h) new text end Motor vehicles including motorcycles are entitled to the full use of a traffic lane and no motor vehicle may be driven or operated in a manner so as to deprive a motorcycle of the full use of a traffic lane.

deleted text begin (g)deleted text end new text begin (i)new text end A person operating a motorcycle upon a roadway must be granted the rights and is subject to the duties applicable to a motor vehicle as provided by law, except as to those provisions which by their nature can have no application.

deleted text begin (h) Paragraph (e)deleted text end new text begin (j) Paragraphs (e) and (f)new text end of this subdivision deleted text begin doesdeleted text end new text begin donew text end not apply to police officers in the performance of their official duties.

deleted text begin (i)deleted text end new text begin (k)new text end No person deleted text begin shalldeleted text end new text begin maynew text end operate a motorcycle on a street or highway unless the headlight or headlights are lighted at all times the motorcycle is so operated.

deleted text begin (j)deleted text end new text begin (l)new text end A person parking a motorcycle on the roadway of a street or highway must:

(1) if parking in a marked parking space, park the motorcycle completely within the marked space; and

(2) park the motorcycle in such a way that the front of the motorcycle is pointed or angled toward the nearest lane of traffic to the extent practicable and necessary to allow the operator to (i) view any traffic in both directions of the street or highway without having to move the motorcycle into a lane of traffic and without losing balance or control of the motorcycle, and (ii) ride the motorcycle forward and directly into a lane of traffic when the lane is sufficiently clear of traffic.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 62.

Minnesota Statutes 2022, section 169.99, subdivision 1, is amended to read:

Subdivision 1.

Form.

(a) Except as provided in subdivision 3deleted text begin ,deleted text end new text begin ; section 169.147, subdivision 8;new text end and section 169.999, subdivision 3, there shall be a uniform ticket issued throughout the state by the police and peace officers or by any other person for violations of this chapter and ordinances in conformity thereto. Such uniform traffic ticket shall be in the form and have the effect of a summons and complaint. Except as provided in paragraph (b), the uniform ticket shall state that if the defendant fails to appear in court in response to the ticket, an arrest warrant may be issued. The uniform traffic ticket shall consist of four parts, on paper sensitized so that copies may be made without the use of carbon paper, as follows:

(1) the complaint, with reverse side for officer's notes for testifying in court, driver's past record, and court's action, printed on white paper;

(2) the abstract of court record for the Department of Public Safety, which shall be a copy of the complaint with the certificate of conviction on the reverse side, printed on yellow paper;

(3) the police record, which shall be a copy of the complaint and of the reverse side of copy (1), printed on pink paper; and

(4) the summons, with, on the reverse side, such information as the court may wish to give concerning the Traffic Violations Bureau, and a plea of guilty and waiver, printed on off-white tag stock.

(b) If the offense is a petty misdemeanor, the uniform ticket must state that a failure to appear will be considered a plea of guilty and waiver of the right to trial, unless the failure to appear is due to circumstances beyond the person's control.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and expires August 1, 2029. new text end

Sec. 63.

Minnesota Statutes 2022, section 171.01, is amended by adding a subdivision to read:

new text begin Subd. 45c. new text end

new text begin Residence address and permanent mailing address. new text end

new text begin "Residence address" and "permanent mailing address" mean, for purposes of a driver's license or Minnesota identification card, the postal address of the permanent domicile within this state where an individual: new text end

new text begin (1) resides; new text end

new text begin (2) intends to reside within 30 calendar days after the date of application; or new text end

new text begin (3) intends to return whenever absent. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024, for applications on or after that date. new text end

Sec. 64.

Minnesota Statutes 2022, section 171.01, is amended by adding a subdivision to read:

new text begin Subd. 48e. new text end

new text begin Temporary mailing address. new text end

new text begin "Temporary mailing address" means the mailing address of any place where a person regularly or occasionally stays and may receive mail in their name other than the person's residence address. A temporary mailing address does not include the designated address under section 5B.05. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024, for applications on or after that date. new text end

Sec. 65.

Minnesota Statutes 2023 Supplement, section 171.06, subdivision 3, is amended to read:

Subd. 3.

Contents of application; other information.

(a) An application must:

(1) state the full name, date of birth, sex, and either (i) the residence address of the applicant, or (ii) designated address under section 5B.05;

(2) as may be required by the commissioner, contain a description of the applicant and any other facts pertaining to the applicant, the applicant's driving privileges, and the applicant's ability to operate a motor vehicle with safety;

(3) state:

(i) the applicant's Social Security number; or

(ii) if the applicant does not have a Social Security number and is applying for a Minnesota identification card, instruction permit, or class D provisional or driver's license, that the applicant elects not to specify a Social Security number;

(4) contain a notification to the applicant of the availability of a living will/health care directive designation on the license under section 171.07, subdivision 7;

(5) include a method for the applicant to:

(i) request a veteran designation on the license under section 171.07, subdivision 15, and the driving record under section 171.12, subdivision 5a;

(ii) indicate a desire to make an anatomical gift under subdivision 3b, paragraph (e);

(iii) as applicable, designate document retention as provided under section 171.12, subdivision 3c;

(iv) indicate emergency contacts as provided under section 171.12, subdivision 5b;

(v) indicate the applicant's race and ethnicity; deleted text begin anddeleted text end

(vi) indicate caretaker information as provided under section 171.12, subdivision 5c; and

new text begin (vii) indicate a temporary mailing address separate from the applicant's residence address listed on the identification card or license; and new text end

(6) meet the requirements under section 201.161, subdivision 3.

(b) Applications must be accompanied by satisfactory evidence demonstrating:

(1) identity, date of birth, and any legal name change if applicable; and

(2) for driver's licenses and Minnesota identification cards that meet all requirements of the REAL ID Act:

(i) principal residence address in Minnesota, including application for a change of address, unless the applicant provides a designated address under section 5B.05;

(ii) Social Security number, or related documentation as applicable; and

(iii) lawful status, as defined in Code of Federal Regulations, title 6, section 37.3.

(c) An application for an enhanced driver's license or enhanced identification card must be accompanied by:

(1) satisfactory evidence demonstrating the applicant's full legal name and United States citizenship; and

(2) a photographic identity document.

(d) A valid Department of Corrections or Federal Bureau of Prisons identification card containing the applicant's full name, date of birth, and photograph issued to the applicant is an acceptable form of proof of identity in an application for an identification card, instruction permit, or driver's license as a secondary document for purposes of Minnesota Rules, part 7410.0400, and successor rules.

(e) An application form must not provide for identification of (1) the accompanying documents used by an applicant to demonstrate identity, or (2) except as provided in paragraphs (b) and (c), the applicant's citizenship, immigration status, or lawful presence in the United States. The commissioner and a driver's license agent must not inquire about an applicant's citizenship, immigration status, or lawful presence in the United States, except as provided in paragraphs (b) and (c).

new text begin (f) If an applicant designates a temporary mailing address under paragraph (a), clause (5), item (vii), the commissioner must use the temporary mailing address in lieu of the applicant's residence address for delivery of the driver's license or identification card. The commissioner must send all other correspondence to the applicant's residence address. Nothing in this paragraph or paragraph (a), clause (5), item (vii), may be construed to modify or remove proof of residency requirements at the time of application for an initial driver's permit, driver's license, or identification card. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024, for applications on or after that date. new text end

Sec. 66.

Minnesota Statutes 2022, section 171.06, subdivision 3b, is amended to read:

Subd. 3b.

Information for applicants.

(a) The commissioner must develop summary information on identity document options. The summary information must be available on the department's website and at every location where a person may apply for an enhanced, REAL ID compliant, or noncompliant driver's license or identification card.

(b) The summary information must, at a minimum, include:

(1) each available type of driver's license and Minnesota identification card, including a noncompliant license or identification card, an enhanced driver's license, and an enhanced identification card;

(2) the official purposes of and limitations on use for each type of driver's license and Minnesota identification card; and

(3) an overview of data shared outside the state, including through electronic validation or verification systems, as part of the application and issuance of each type.

(c) The commissioner must ensure that the summary information is available to driver's license and identification card applicants. Renewal notifications mailed to driver's license and identification card holders must include the website address that displays the summary information.

(d) An applicant for an enhanced or noncompliant license or identification card must sign an acknowledgment that the applicant understands the limitations on use of the license or card.

(e) If the applicant does not indicate a desire to make an anatomical gift when the application is made, the applicant must be offered a donor document in accordance with section 171.07, subdivision 5. The application must contain statements sufficient to comply with the requirements of the Darlene Luther Revised Uniform Anatomical Gift Act, chapter 525A, so that execution of the application or donor document will make the anatomical gift as provided in section 171.07, subdivision 5, for those indicating a desire to make an anatomical gift. The application must be accompanied by information describing Minnesota laws regarding anatomical gifts and the need for and benefits of anatomical gifts, and the legal implications of making an anatomical gift, including the law governing revocation of anatomical gifts. The commissioner shall distribute a notice that must accompany all applications for and renewals of a driver's license or Minnesota identification card. The notice must be prepared in conjunction with a Minnesota organ procurement organization that is certified by the federal Department of Health and Human Services and must include:

(1) a statement that provides a fair and reasonable description of the organ donation process, the care of the donor body after death, and the importance of informing family members of the donation decision; and

(2) a telephone number in a certified Minnesota organ procurement organization that may be called with respect to questions regarding anatomical gifts.

(f) The application must be accompanied also by information containing relevant facts relating to:

(1) the effect of alcohol on driving ability;

(2) the effect of mixing alcohol with drugs;

(3) the laws of Minnesota relating to operation of a motor vehicle while under the influence of alcohol or a controlled substance; and

(4) the levels of alcohol-related fatalities and accidents in Minnesota and of arrests for alcohol-related violations.

new text begin (g) The commissioner must provide information on the department's website about the option for an applicant to designate a temporary mailing address. The information on the department's website must: new text end

new text begin (1) be easily accessible and address frequently asked questions; new text end

new text begin (2) detail the department's requirements for the use of a temporary mailing address; new text end

new text begin (3) compare the use of a temporary mailing address to the use of an applicant's residence address; and new text end

new text begin (4) clarify that a driver's license or identification card will not be delivered to a forwarded mail address. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024, for applications on or after that date. new text end

Sec. 67.

Minnesota Statutes 2022, section 171.061, is amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Competitive bidding. new text end

new text begin (a) Notwithstanding any statute or rule to the contrary, if a driver's license agent appointed under this section permanently stops offering services at the approved office location and permanently closes the approved office location, the commissioner must use a competitive bidding process for the appointment of a replacement driver's license agent. If available, the replacement driver's license agent appointed by the commissioner under this section must continue to offer services at the approved office location. If the existing office location is not available to the replacement driver's license agent, the replacement office location must be at a location that must be approved by the commissioner and must serve a similar service area as the existing office location. new text end

new text begin (b) The commissioner must not give a preference to a partner, owner, manager, or employee of the driver's license agent that has permanently stopped offering services at the closed office location in a competitive bidding process. new text end

new text begin (c) The commissioner must adopt rules to administer and enforce a competitive bidding process to select a replacement driver's license agent. If the replacement driver's license agent elects to not offer services at the office location of the prior agent, Minnesota Rules, chapter 7404, governing the selection of a proposed office location of a driver's license agent, applies. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2025. new text end

Sec. 68.

Minnesota Statutes 2023 Supplement, section 171.0705, subdivision 2, is amended to read:

Subd. 2.

Driver's manual; deleted text begin bicycle trafficdeleted text end new text begin vulnerable road usersnew text end .

The commissioner deleted text begin shalldeleted text end new text begin mustnew text end include in deleted text begin each edition ofdeleted text end the driver's manual published by the department a section relating tonew text begin vulnerable road users and motorcyclists or operators of two- or three-wheeled vehicles that, at a minimum, includes:new text end

new text begin (1)new text end bicycle traffic laws, including any changes in the law which affect bicycle trafficdeleted text begin .deleted text end new text begin ;new text end

new text begin (2) traffic laws related to pedestrians and pedestrian safety; and new text end

new text begin (3) traffic laws related to motorcycles, autocycles, motorized bicycles, motorized foot scooters, and electric personal assistive mobility devices. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to each edition of the manual published on or after that date. new text end

Sec. 69.

Minnesota Statutes 2022, section 171.12, is amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Driving record; traffic safety camera system. new text end

new text begin (a) Except as provided in paragraph (b), the commissioner must not record on an individual's driving record any violation of: new text end

new text begin (1) a traffic-control signal under section 169.06, subdivision 10; or new text end

new text begin (2) a speed limit under section 169.14, subdivision 13. new text end

new text begin (b) This subdivision does not apply to: new text end

new text begin (1) a violation that occurs in a commercial motor vehicle; or new text end

new text begin (2) a violation committed by a holder of a class A, B, or C commercial driver's license or commercial driver learner's permit, without regard to whether the violation was committed in a commercial motor vehicle or another vehicle. new text end

new text begin (c) This subdivision applies to violations committed on or after August 1, 2025, and before August 1, 2029. new text end

Sec. 70.

Minnesota Statutes 2022, section 171.13, subdivision 9, is amended to read:

Subd. 9.

Online driver's license knowledge testing authorization.

(a) The commissioner must implement online knowledge testing as provided in this subdivision. The commissioner must not charge a fee to a driver education program or an authorized entity for access to the online knowledge testing system or for administering the online knowledge test. deleted text begin The commissioner must administer the fourth or subsequent knowledge test for a person.deleted text end

(b) Upon written request from a driver education program licensed by the department, the commissioner must grant access to the department's web-based knowledge testing system to the driver education program. Once granted access to the online knowledge testing system, a driver education program may administer the online knowledge test to a student of the program.

(c) An entity other than a driver education program may apply to the commissioner for authority to administer online knowledge tests. The commissioner may approve or disapprove an application for administering the online knowledge tests under this paragraph. Upon approving an application of an entity, the commissioner must grant access to the department's web-based knowledge testing system to that authorized entity. Once granted access to the online knowledge testing system, the authorized entity may administer the online knowledge test.

(d) A driver education program or authorized entity:

(1) must provide all computers and equipment for persons that take the online knowledge test;

(2) must provide appropriate proctors to monitor persons taking the online knowledge test; and

(3) may charge a fee of no more than $10 for administering the online knowledge test.

(e) For purposes of paragraph (d), clause (2), a proctor must be:

(1) an employee of the driver education program, authorized entity, or a state or local government;

(2) a driver's license agent; or

(3) a classroom teacher, school administrator, or paraprofessional at a public or private school, excluding a home school.

The proctor must be physically present at the location where the test is being administered. A proctor must not be a relative of the person taking the test. For purposes of this paragraph, a relative is a spouse, fiancee, fiance, grandparent, parent, child, sibling, or legal guardian, including adoptive, half, step, and in-law relationships.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025. new text end

Sec. 71.

Minnesota Statutes 2022, section 171.16, subdivision 3, is amended to read:

Subd. 3.

Failure to pay fine.

The commissioner is prohibited from suspending a person's driver's license based solely on the fact that a person:

(1) has been convicted ofnew text begin :new text end

new text begin (i)new text end violating a law of this state or an ordinance of a political subdivision which regulates the operation or parking of motor vehiclesdeleted text begin ,deleted text end new text begin ;new text end

new text begin (ii) a violation under section 169.06, subdivision 10; or new text end

new text begin (iii) a violation under section 169.14, subdivision 13; new text end

(2) has been sentenced to the payment of a fine or had a surcharge levied against that person, or sentenced to a fine upon which a surcharge was levieddeleted text begin ,deleted text end new text begin ;new text end and

(3) has refused or failed to comply with that sentence or to pay the surcharge.

Sec. 72.

Minnesota Statutes 2023 Supplement, section 171.301, subdivision 3, is amended to read:

Subd. 3.

Fees prohibited.

(a) For a reintegration driver's license under this section:

(1) the commissioner must not impose:

(i) a fee, surcharge, or filing fee under section 171.06, subdivision 2; deleted text begin ordeleted text end

(ii)new text begin a reinstatement fee under sections 171.20, subdivision 4, and 171.29, subdivision 2; ornew text end

new text begin (iii)new text end an endorsement fee under section 171.06, subdivision 2a; and

(2) a driver's license agent must not impose a filing fee under section 171.061, subdivision 4.

(b) Issuance of a reintegration driver's license does not forgive or otherwise discharge any unpaid fees or fines.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 73.

Minnesota Statutes 2023 Supplement, section 171.301, subdivision 6, is amended to read:

Subd. 6.

Issuance of regular driver's license.

(a) Notwithstanding any statute or rule to the contrary, the commissioner must issue a REAL ID-compliant or noncompliant license to a person who possesses a reintegration driver's license if:

(1) the person has possessed the reintegration driver's license for at least one full year;

(2) the reintegration driver's license has not been canceled under subdivision 4 and has not expired under subdivision 5;

(3) the person meets the application requirements under section 171.06, including payment of the applicable fees, surcharge, and filing fee under sections 171.06, subdivisions 2 and 2a, and 171.061, subdivision 4; and

(4) issuance of the license does not conflict with the requirements of the nonresident violator compact.

(b) The commissioner must forgive any outstanding balance due on a new text begin reinstatement new text end fee or surcharge under deleted text begin sectiondeleted text end new text begin sections 171.20, subdivision 4, andnew text end 171.29, subdivision 2, for a person who is eligible and applies for a license under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 74.

Minnesota Statutes 2022, section 174.02, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Tribal worksite training program. new text end

new text begin The commissioner must establish a Tribal worksite training program for state-funded construction projects. The commissioner may enter into an agreement with any private, public, or Tribal entity for the planning, designing, developing, and hosting of the program. The commissioner must not use trunk highway funds for the worksite training program if the state-funded construction project is not a highway construction project. new text end

Sec. 75.

Minnesota Statutes 2022, section 174.185, subdivision 2, is amended to read:

Subd. 2.

Required analysis.

For each project in the reconditioning, resurfacing, and road repair funding categories, the commissioner deleted text begin shalldeleted text end new text begin mustnew text end perform a life-cycle cost analysis and deleted text begin shalldeleted text end document the lowest life-cycle costs and all alternatives considered. The commissioner deleted text begin shalldeleted text end new text begin mustnew text end document the chosen pavement strategy and, if the lowest life cycle is not selected, document the justification for the chosen strategy. deleted text begin A life-cycle cost analysis is required for projects to be constructed after July 1, 2011.deleted text end

Sec. 76.

Minnesota Statutes 2022, section 174.185, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Review and collaboration. new text end

new text begin (a) Before finalizing a pavement selection, the commissioner must post a draft of the life-cycle cost analysis and the draft pavement selection on the department's Office of Materials and Road Research website for 21 days. During this period, the commissioner must allow industry association representatives to submit questions and comments. The commissioner must collaborate with the person who submitted the question or comment, where necessary, to ensure the commissioner fully understands the question or comment. The commissioner must respond to each question or comment in writing, which must include a description of any associated changes that will be made to the life-cycle cost analysis. new text end

new text begin (b) After the review period under paragraph (a) closes, the commissioner may make revisions, when deemed appropriate, to the life-cycle cost analysis in response to questions or comments received. If the commissioner revises the type of pavement from concrete to asphalt or from asphalt to concrete, the commissioner must post the revised life-cycle cost analysis for review in accordance with the requirements under paragraph (a). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 77.

Minnesota Statutes 2022, section 174.185, is amended by adding a subdivision to read:

new text begin Subd. 2b. new text end

new text begin Selection. new text end

new text begin (a) After the review period required in subdivision 2a and any subsequent changes to the analysis, the commissioner must select the pavement strategy and prepare a document of justification. At a minimum, the document of justification must: new text end

new text begin (1) explain why the pavement strategy was selected; new text end

new text begin (2) if the lowest life-cycle cost is not selected, justify why a strategy with a higher life-cycle cost was selected; and new text end

new text begin (3) include all questions and comments received during the review period and the commissioner's responses to each. new text end

new text begin (b) The commissioner must submit the analysis and document of justification to a licensed professional engineer for review. A life-cycle cost analysis is not considered final until it is certified and signed by a licensed professional engineer as provided by Minnesota Rules, part 1800.4200. new text end

new text begin (c) For all projects that began construction on or after January 1, 2024, the commissioner must store all life-cycle cost analyses and documents of justification on the department's website in a manner that allows the public to easily access the documents. new text end

new text begin (d) After completing the certification and signature requirements in paragraph (b) and the posting requirements in paragraph (c), the commissioner may advance the project to substantial plan development. new text end

new text begin (e) For purposes of this subdivision, "substantial plan development" means the point in time during the plan development process after which any further activities would preclude any of the feasible pavement alternatives from being selected or constructed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 78.

Minnesota Statutes 2022, section 174.185, subdivision 3, is amended to read:

Subd. 3.

Report.

new text begin By January 31 of each year, new text end the commissioner deleted text begin shalldeleted text end new text begin mustnew text end report deleted text begin annuallydeleted text end to the chairs and ranking minority members of the deleted text begin senate and house of representativesdeleted text end new text begin legislativenew text end committees with jurisdiction over transportation new text begin policy and new text end finance on new text begin life-cycle cost analyses conducted under this section. At a minimum, the report must include information on new text end the results of the analyses deleted text begin required indeleted text end new text begin undernew text end subdivision 2new text begin , the public review under subdivision 2a, and the final selection and document of justification under subdivision 2bnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 79.

Minnesota Statutes 2022, section 174.40, subdivision 3, is amended to read:

Subd. 3.

Safe routes to school accounts.

(a) A safe routes to school account is established in the bond proceeds fund. The account consists of state bond proceeds appropriated to the commissioner. Money in the account may only be expended on bond-eligible costs of a project receiving financial assistance as provided under this section. All uses of funds from the account must be for publicly owned property.

(b) A safe routes to school account is established in the deleted text begin generaldeleted text end new text begin special revenuenew text end fund. The account consists of funds as provided by law, and any other money donated, allotted, transferred, or otherwise provided to the account. Money in the account may only be expended on a project receiving financial assistance as provided under this section.

Sec. 80.

Minnesota Statutes 2023 Supplement, section 174.49, subdivision 6, is amended to read:

Subd. 6.

Metropolitan counties; use of funds.

(a) A metropolitan county must use funds that are received under subdivision 5 as follows:

(1) 41.5 percent for active transportation and transportation corridor safety studies;

(2) 41.5 percent for:

(i) repair, preservation, and rehabilitation of transportation systems; and

(ii) roadway replacement to reconstruct, reclaim, or modernize a corridor without adding traffic capacity, except for auxiliary lanes with a length of less than 2,500 feet; and

(3) 17 percent for any of the following:

(i) transit purposes, including but not limited to operations, maintenance, capital maintenance, demand response service, and assistance to replacement service providers under section 473.388;

(ii) complete streets projects, as provided under section 174.75; and

(iii) projects, programs, or operations activities that meet the requirements of a mitigation action under section 161.178, subdivision 4.

(b) Funds under paragraph (a), clause (3), must supplement and not supplant existing sources of revenue.

new text begin (c) A metropolitan county may use funds that are received under subdivision 5 as debt service for obligations issued by the county in accordance with chapter 475, provided that the obligations are issued for a use allowable under this section. new text end

Sec. 81.

Minnesota Statutes 2023 Supplement, section 174.634, subdivision 2, is amended to read:

Subd. 2.

Passenger rail account; transfers; appropriation.

(a) A passenger rail account is established in the special revenue fund. The account consists of funds as provided in this subdivision and any other money donated, allotted, transferred,new text begin collected,new text end or otherwise provided to the account.

(b) By July 15 annuallynew text begin beginning in calendar year 2027new text end , the commissioner of revenue must transfer an amount from the general fund to the passenger rail account that equals 50 percent of the portion of the state general tax under section 275.025 levied on railroad operating property, as defined under section 273.13, subdivision 24, in the prior calendar year.

(c) Money in the account is annually appropriated to the commissioner of transportation for the deleted text begin netdeleted text end operating and capital maintenance costs of intercity passenger rail,new text begin which may include but are not limited to planning, designing, developing, constructing, equipping, administering, operating, promoting, maintaining, and improving passenger rail service within the state,new text end after accounting for operating revenue, federal funds, and other sources.

new text begin (d) By November 1 each year, the commissioner must report on the passenger rail account to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. The report must, at a minimum, include: new text end

new text begin (1) the actual revenue and expenditures in each of the previous two fiscal years; new text end

new text begin (2) the budgeted and forecasted revenue and expenditures in the current fiscal year and each fiscal year within the state forecast period; new text end

new text begin (3) the plan for collection of fees and revenue, as defined and authorized under subdivision 3, in the current fiscal year and each fiscal year within the state forecast period; and new text end

new text begin (4) the uses of expenditures or planned expenditures in each fiscal year included under clauses (1) and (2). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 82.

Minnesota Statutes 2023 Supplement, section 174.634, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Fee and revenue collection authorized. new text end

new text begin (a) For purposes of this subdivision, "fees and revenue" means: new text end

new text begin (1) ridership fees or fares, including ticket sales; new text end

new text begin (2) revenue from the sale of on-board commissary and convenience goods to the traveling public; and new text end

new text begin (3) revenue from the sale of promotional goods related to passenger rail routes and corridors within Minnesota. new text end

new text begin (b) The commissioner may, directly or through a contractor, vendor, operator, or partnership with a federal or state government entity, including Amtrak, collect fees and revenue related to passenger rail services within the state, as specified under this subdivision. new text end

new text begin (c) Fees and revenue under this subdivision may be collected as determined by the commissioner and are not subject to section 16A.1283, except that, if priced exclusively by the commissioner, a ridership fee or fare must not exceed an annual five percent increase and the price of a commissary, convenience, or promotional good must not exceed an annual ten percent increase. new text end

new text begin (d) Fees and revenue collected under this subdivision must be deposited in the passenger rail account in the special revenue fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 83.

Minnesota Statutes 2022, section 174.75, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Definitiondeleted text end new text begin Definitionsnew text end .

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) new text end "Complete streets" is the planning, scoping, design, implementation, operation, and maintenance of roads in order to reasonably address the safety and accessibility needs of users of all ages and abilities. Complete streets considers the needs of motorists, pedestrians, transit users and vehicles, bicyclists, and commercial and emergency vehicles moving along and across roads, intersections, and crossings in a manner that is sensitive to the local context and recognizes that the needs vary in urban, suburban, and rural settings.

new text begin (c) "Vulnerable road user" has the meaning given in section 169.011, subdivision 92b. new text end

Sec. 84.

Minnesota Statutes 2022, section 174.75, subdivision 2, is amended to read:

Subd. 2.

Implementation.

new text begin (a) new text end The commissioner deleted text begin shalldeleted text end new text begin mustnew text end implement a complete streets policy after consultation with stakeholders, state and regional agencies, local governments, and road authorities. The commissioner, after such consultation, deleted text begin shalldeleted text end new text begin mustnew text end address relevant protocols, guidance, standards, requirements, and trainingdeleted text begin , and shall integratedeleted text end new text begin .new text end

new text begin (b) The complete streets policy must include but is not limited to: new text end

new text begin (1) integration ofnew text end related principles of context-sensitive solutionsdeleted text begin .deleted text end new text begin ;new text end

new text begin (2) integration throughout the project development process; new text end

new text begin (3) methods to evaluate inclusion of active transportation facilities in a project, which may include but are not limited to sidewalks, crosswalk markings, pedestrian accessibility, and bikeways; and new text end

new text begin (4) consideration of consultation with other road authorities regarding existing and planned active transportation network connections. new text end

Sec. 85.

Minnesota Statutes 2022, section 174.75, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Implementation guidance. new text end

new text begin The commissioner must maintain guidance that accompanies the complete streets policy under this section. The guidance must include sections on: new text end

new text begin (1) an analysis framework that provides for: new text end

new text begin (i) identification of characteristics of a project; new text end

new text begin (ii) highway system categorization based on context, including population density, land use, density and scale of surrounding development, volume of highway use, and the nature and extent of active transportation; and new text end

new text begin (iii) relative emphasis for different road system users in each of the categories under item (ii) in a manner that supports safety and mobility of vulnerable road users, motorcyclists or other operators of two- or three-wheeled vehicles, and public transit users; and new text end

new text begin (2) an analysis of speed limit reductions and associated roadway design modifications to support safety and mobility in active transportation. new text end

Sec. 86.

Minnesota Statutes 2022, section 216E.02, subdivision 1, is amended to read:

Subdivision 1.

Policy.

The legislature hereby declares it to be the policy of the state to locate large electric power facilities new text begin and high voltage transmission lines new text end in an orderly manner compatible with environmental preservation and the efficient use of resources. In accordance with this policynew text begin ,new text end the commission shall choose locations that minimize adverse human and environmental impact while insuring continuing electric power system reliability and integrity and insuring that electric energy needs are met and fulfilled in an orderly and timely fashion.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 87.

Minnesota Statutes 2023 Supplement, section 219.015, subdivision 2, is amended to read:

Subd. 2.

Railroad company assessment; account; appropriation.

(a) As provided in this subdivision, the commissioner must annually assess railroad companies that are (1) defined as common carriers under section 218.011; (2) classified by federal law or regulation as Class I Railroads, Class I Rail Carriers, Class II Railroads, or Class II Rail Carriers; and (3) operating in this state.

(b) The assessment must be calculated to allocate state rail safety inspection program costs proportionally among carriers based on route miles operated in Minnesota at the time of assessment. The commissioner must include in the assessment calculation all state rail safety inspection program costs to support up to six rail safety inspector positions, including but not limited to salary, administration, supervision, travel, equipment, training, and ongoing state rail inspector duties.

(c) The assessments collected under this subdivision must be deposited in a state rail safety inspection account, which is established in the special revenue fund. The account consists of funds provided by this subdivisionnew text begin and section 221.0255new text end and any other money donated, allotted, transferred, or otherwise provided to the account. Money in the account is appropriated to the commissioner to administer the state rail safety inspection programnew text begin and for costs under section 221.0255new text end .

Sec. 88.

new text begin [219.756] YARDMASTER HOURS OF SERVICE. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Railroad" means a common carrier that is classified by federal law or regulation as a Class I railroad, Class II railroad, or Class III railroad. new text end

new text begin (c) "Yardmaster" means an employee of a common carrier who is responsible for supervising and coordinating the control of trains and engines operating within a railyard, not including a dispatching service employee, signal employee, or train employee as those terms are defined in United States Code, title 49, section 21101. new text end

new text begin Subd. 2. new text end

new text begin Hours of service. new text end

new text begin (a) A railroad operating in this state must not require or allow a yardmaster to remain or go on duty: new text end

new text begin (1) in any month when the employee has spent a total of 276 hours on duty or in any other mandatory service for the carrier; new text end

new text begin (2) for a period exceeding 12 consecutive hours; and new text end

new text begin (3) unless the employee has had at least ten consecutive hours off duty during the prior 24 hours. new text end

new text begin (b) A railroad operating in this state must not require or allow a yardmaster to remain or go on duty after the employee has initiated an on-duty period each day for six consecutive days unless the employee has had 48 consecutive hours off at the employee's home terminal, during which time the employee is unavailable for any service. new text end

Sec. 89.

Minnesota Statutes 2022, section 221.0255, subdivision 4, is amended to read:

Subd. 4.

Motor carrier of railroad employees; requirements.

(a) The motor carrier of railroad employees must implement a policy that provides for annual training and certification of the operator in:

(1) safe operation of the vehicle transporting railroad employees;

(2) knowing and understanding relevant laws, rules of the road, and safety policies;

(3) handling emergency situations;

(4) proper use of seat belts;

(5) performance of pretrip and posttrip vehicle inspections, and inspection record keeping; and

(6) proper maintenance of required records.

(b) The motor carrier of railroad employees must:

(1) confirm that the person is not disqualified under subdivision 6, by performing a criminal background check of the operator, which must include:

(i) a criminal history check of the state criminal records repository; and

(ii) if the operator has resided in Minnesota less than five years, a criminal history check from each state of residence for the previous five years;

(2) annually verify the operator's driver's license;

(3) document meeting the requirements in this subdivision, which must include maintaining at the carrier's business location:

(i) a driver qualification file on each operator who transports passengers under this section; and

(ii) records of pretrip and posttrip vehicle inspections as required under subdivision 3, paragraph (a), clause (3);

(4) maintain liability insurance in a minimum amount of $5,000,000 regardless of the seating capacity of the vehicle;

(5) maintain uninsured and underinsured coverage in a minimum amount of deleted text begin $1,000,000deleted text end new text begin $2,000,000new text end ; and

(6) ensure inspection of each vehicle operated under this section as provided under section 169.781.

(c) A driver qualification file under paragraph (b), clause (3), must include:

(1) a copy of the operator's most recent medical examiner's certificate;

(2) a copy of the operator's current driver's license;

(3) documentation of annual license verification;

(4) documentation of annual training;

(5) documentation of any known violations of motor vehicle or traffic laws; and

(6) responses from previous employers, if required by the current employer.

(d) The driver qualification file must be retained for one year following the date of separation of employment of the driver from the carrier. A record of inspection under paragraph (b), clause (3), item (ii), must be retained for one year following the date of inspection.

(e) If a party contracts with the motor carrier on behalf of the railroad to transport the railroad employees, then the insurance requirements may be satisfied by either that party or the motor carrier, so long as the motor carrier is a named insured or additional insured under any policy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024. new text end

Sec. 90.

Minnesota Statutes 2022, section 221.0255, subdivision 9, is amended to read:

Subd. 9.

Inspectionnew text begin and investigationnew text end authority.

new text begin (a) Upon receipt of a complaint form or other information alleging a violation of this section, the commissioner must investigate the relevant matter. new text end Representatives of the Department of Transportation and the State Patrol have the authority to enter, at a reasonable time and place, any vehicle or facility of the carrier for purposes ofnew text begin complaint investigations,new text end random inspections, safety reviews, audits, or accident investigations.

new text begin (b) Failure of a railroad or motor carrier of railroad employees to permit a complaint investigation under this subdivision is grounds for issuance of a civil penalty under subdivision 10. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024. new text end

Sec. 91.

Minnesota Statutes 2022, section 221.0255, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Civil penalty. new text end

new text begin (a) After completion of an investigation or as provided in subdivision 9, paragraph (b), the commissioner may issue a civil penalty to a railroad or motor carrier of railroad employees that violates this section. A civil penalty issued under this paragraph is in the amount of: new text end

new text begin (1) not less than $200 but not more than $500 for a first offense; new text end

new text begin (2) not less than $500 but not more than $1,000 for a second offense; and new text end

new text begin (3) not less than $1,000 but not more than $5,000 for a third or subsequent offense committed within three years of the first offense. new text end

new text begin (b) The civil penalty amounts identified under paragraph (a) are for all violations identified in a single investigation and are not per violation. new text end

new text begin (c) The recipient of a civil penalty under this subdivision has 30 days to notify the commissioner in writing of intent to contest the civil penalty. If within 30 days after receiving the civil penalty the recipient fails to notify the commissioner of intent to contest the penalty, the civil penalty is not subject to further review. new text end

new text begin (d) Civil penalties assessed under this subdivision are subject to chapter 14 and may be recovered in a civil action. new text end

new text begin (e) Civil penalties collected under this section must be deposited in the state rail safety inspection account in the special revenue fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to violations committed on or after that date. new text end

Sec. 92.

Minnesota Statutes 2022, section 297A.815, subdivision 3, is amended to read:

Subd. 3.

Motor vehicle lease sales tax revenue.

(a) On or before June 30 of each fiscal year, the commissioner of revenue must estimate the revenues, including interest and penalties and minus refunds, collected under this section for the current fiscal year.

(b) By July 15 of the subsequent fiscal year, the commissioner of management and budget must transfer the revenues estimated under paragraph (a) from the general fund as follows:

(1) 38 percent to the county state-aid highway fund;

(2) 38 percent to the greater Minnesota transit account;

(3) 13 percent to the deleted text begin Minnesota state transportation funddeleted text end new text begin local bridge program account in the special revenue fund, which is hereby creatednew text end ; and

(4) 11 percent to the highway user tax distribution fund.

(c) Notwithstanding any other law to the contrary, the commissioner of transportation must allocate the funds transferred under paragraph (b), clause (1), to the counties in the metropolitan area, as defined in section 473.121, subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county receives the percentage that its population, as defined in section 477A.011, subdivision 3, estimated or established by July 15 of the year prior to the current calendar year, bears to the total population of the counties receiving funds under this paragraph.

(d) deleted text begin The amount transferreddeleted text end new text begin Money in the local bridge program accountnew text end under paragraph (b), clause (3), deleted text begin must be useddeleted text end new text begin is appropriated to the commissioner of transportationnew text end for the local bridge program under section 174.50, subdivisions 6 to 7.

(e) The revenues under this subdivision do not include the revenues, including interest and penalties and minus refunds, generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as provided under the Minnesota Constitution, article XI, section 15.

Sec. 93.

Minnesota Statutes 2023 Supplement, section 297A.993, subdivision 2a, is amended to read:

Subd. 2a.

Uses reporting.

By February 15 of each even-numbered year, a metropolitan county, as defined in section 473.121, subdivision 4, that imposes the taxes under this section must submit a report to the new text begin chairs and ranking minority members of thenew text end legislative committees with jurisdiction over transportation policy and finance. At a minimum, the report must include:

(1) actual transportation sales tax collections by the county over the previous five calendar years;

(2) an estimation of the total sales tax revenue that is estimated to be collected by the county in the current year and for the next ten calendar years; and

(3) for each of the previous five calendar years, the current calendar year, and for the next ten calendar years:

(i) the amount of sales tax revenue expended or proposed to be expended for each of the following:

(A) planning, construction, operation, or maintenance of guideways, as defined in section 473.4485, subdivision 1, paragraph (d);

(B) nonguideway transit and active transportation uses;

(C) highway uses; and

(D) uses not otherwise specified in subitems (A) to (C); deleted text begin anddeleted text end

(ii) new text begin completed, current, planned, and eligible projects for each category under item (i); andnew text end

new text begin (iii) new text end an estimated balance of unspent or undesignated county sales tax revenue.

Sec. 94.

Minnesota Statutes 2022, section 299E.01, subdivision 2, is amended to read:

Subd. 2.

Responsibilities.

(a) The division deleted text begin shall bedeleted text end new text begin isnew text end responsible and deleted text begin shalldeleted text end new text begin mustnew text end utilize state employees for security and public information services in state-owned buildings and state leased-to-own buildings in the Capitol Area, as described in section 15B.02. It deleted text begin shalldeleted text end new text begin mustnew text end provide personnel as are required by the circumstances to insure the orderly conduct of state business and the convenience of the public.new text begin Until July 1, 2026, it must provide emergency assistance and security escorts at any location within the Capitol Area, as described in section 15B.02, when requested by a state constitutional officer.new text end

(b) As part of the division permanent staff, the director must establish the position of emergency manager that includes, at a minimum, the following duties:

(1) oversight of the consolidation, development, and maintenance of plans and procedures that provide continuity of security operations;

(2) the development and implementation of tenant training that addresses threats and emergency procedures; and

(3) the development and implementation of threat and emergency exercises.

(c) The director must provide a minimum of one state trooper assigned to the Capitol complex at all times.

(d) The director, in consultation with the advisory committee under section 299E.04, shall, at least annually, hold a meeting or meetings to discuss, among other issues, Capitol complex security, emergency planning, public safety, and public access to the Capitol complex. The meetings must include, at a minimum:

(1) Capitol complex tenants and state employees;

(2) nongovernmental entities, such as lobbyists, vendors, and the media; and

(3) the public and public advocacy groups.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 95.

new text begin [325F.661] SALE OF ELECTRIC-ASSISTED BICYCLES AND OTHER ELECTRIC CYCLES. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Class 1 electric-assisted bicycle," "class 2 electric-assisted bicycle," and "class 3 electric-assisted bicycle" have the meanings given in section 169.011, subdivisions 15a, 15b, and 15c. new text end

new text begin (c) "Electric-assisted bicycle" has the meaning given in section 169.011, subdivision 27. new text end

new text begin (d) "Motorcycle" has the meaning given in section 169.011, subdivision 44. new text end

new text begin (e) "Motorized bicycle" has the meaning given in section 169.011, subdivision 45. new text end

new text begin (f) "Multiple mode electric-assisted bicycle" has the meaning given in section 169.011, subdivision 45a. new text end

new text begin Subd. 2. new text end

new text begin Electric-assisted bicycle. new text end

new text begin Before a purchase is completed, a seller of an electric-assisted bicycle must disclose to a consumer in written form: new text end

new text begin (1) the maximum motor power of the electric-assisted bicycle; new text end

new text begin (2) the maximum speed of the electric-assisted bicycle, as evaluated using a test method matching the criteria specified in Code of Federal Regulations, title 16, section 1512.2(a)(2), or successor requirements; and new text end

new text begin (3) whether the electric-assisted bicycle is a class 1, class 2, class 3, or multiple mode electric-assisted bicycle. new text end

new text begin Subd. 3. new text end

new text begin Other electric cycles. new text end

new text begin (a) A seller of a motorized bicycle or motorcycle equipped with an electric motor for propulsion may not sell the vehicle or offer the vehicle for sale if it is labeled as a class 1, class 2, class 3, or multiple mode electric-assisted bicycle. new text end

new text begin (b) Before a purchase is completed and in any advertising materials, a seller of a motorized bicycle or motorcycle equipped with an electric motor for propulsion who describes the vehicle as an "electric bicycle," "electric bike," "e-bike," or other similar term must disclose to a consumer: new text end

new text begin (1) the name or classification of the vehicle under state law or the most likely classification following an intended or anticipated vehicle modification as defined in section 169.011, subdivision 27, paragraph (c); and new text end

new text begin (2) the following statement: new text end

new text begin "This vehicle is not an "electric-assisted bicycle" as defined in Minnesota law. It is instead a type of motor vehicle and subject to applicable motor vehicle laws if used on public roads or public lands. Your insurance policies might not provide coverage for crashes involving the use of this vehicle. To determine coverage, you should contact your insurance company or agent." new text end

new text begin (c) Advertising materials under paragraph (b) include but are not limited to a website or social media post that identifies or promotes the vehicle. new text end

new text begin (d) The disclosure under paragraph (b) must be (1) written, and (2) provided clearly and conspicuously and in a manner designed to attract the attention of a consumer. new text end

new text begin Subd. 4. new text end

new text begin Unlawful practices. new text end

new text begin It is an unlawful practice under section 325F.69 to advertise, offer for sale, or sell a motorized bicycle or motorcycle equipped with an electric motor for propulsion: new text end

new text begin (1) as an electric-assisted bicycle; or new text end

new text begin (2) using the words "electric bicycle," "electric bike," "e-bike," or other similar term without providing the disclosure required under subdivision 3. new text end

Sec. 96.

Minnesota Statutes 2023 Supplement, section 357.021, subdivision 6, is amended to read:

Subd. 6.

Surcharges on criminal and traffic offenders.

(a) Except as provided in this subdivision, the court shall impose and the court administrator shall collect a $75 surcharge on every person convicted of any felony, gross misdemeanor, misdemeanor, or petty misdemeanor offense, other than a violation of: (1) a law or ordinance relating to vehicle parking, for which there is a $12 surcharge; and (2) section 609.855, subdivision 1, 3, or 3a, for which there is a $25 surcharge. When a defendant is convicted of more than one offense in a case, the surcharge shall be imposed only once in that case. In the Second Judicial District, the court shall impose, and the court administrator shall collect, an additional $1 surcharge on every person convicted of any felony, gross misdemeanor, misdemeanor, or petty misdemeanor offense, including a violation of a law or ordinance relating to vehicle parking, if the Ramsey County Board of Commissioners authorizes the $1 surcharge. The surcharge shall be imposed whether or not the person is sentenced to imprisonment or the sentence is stayed. The surcharge shall not be imposed when a person is convicted of a petty misdemeanor for which no fine is imposed.

(b) The court may reduce the amount or waive payment of the surcharge required under this subdivision on a showing of indigency or undue hardship upon the convicted person or the convicted person's immediate family. Additionally, the court may permit the defendant to perform community work service in lieu of a surcharge.

(c) The court administrator or other entity collecting a surcharge shall forward it to the commissioner of management and budget.

(d) If the convicted person is sentenced to imprisonment and has not paid the surcharge before the term of imprisonment begins, the chief executive officer of the correctional facility in which the convicted person is incarcerated shall collect the surcharge from any earnings the inmate accrues from work performed in the facility or while on conditional release. The chief executive officer shall forward the amount collected to the court administrator or other entity collecting the surcharge imposed by the court.

(e) A person who enters a diversion program, continuance without prosecution, continuance for dismissal, or stay of adjudication for a violation of chapter 169 must pay the surcharge described in this subdivision. A surcharge imposed under this paragraph shall be imposed only once per case.

(f) The surcharge does not apply tonew text begin :new text end

new text begin (1) citations issued pursuant to section 169.06, subdivision 10; new text end

new text begin (2) citations issued pursuant to section 169.14, subdivision 13; new text end

new text begin (3)new text end administrative citations issued pursuant to section 169.999deleted text begin .deleted text end new text begin ; ornew text end

deleted text begin (g) The surcharge does not apply todeleted text end new text begin (4)new text end administrative citations issued by transit rider investment program personnel pursuant to section 473.4075.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025. new text end

Sec. 97.

new text begin [430.001] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this chapter, the following terms have the meanings given. new text end

new text begin Subd. 2. new text end

new text begin City. new text end

new text begin "City" means a home rule charter or statutory city. new text end

new text begin Subd. 3. new text end

new text begin City council. new text end

new text begin "City council" means the governing body of a city. new text end

new text begin Subd. 4. new text end

new text begin Residence district. new text end

new text begin "Residence district" means the territory contiguous to and including a highway not comprising a business district when the property on such highway for a distance of 300 feet or more is predominantly improved with (1) residences, or (2) residences and buildings in use for business. new text end

new text begin Subd. 5. new text end

new text begin System of streets, parks, and parkways. new text end

new text begin "System of streets, parks, and parkways" means a body of contiguous land designated to be used in part for streets and in part for parks or parkways. new text end

Sec. 98.

Minnesota Statutes 2022, section 430.01, subdivision 2, is amended to read:

Subd. 2.

Parking lots; pedestrian malls and uses.

The council of a city deleted text begin of the first classdeleted text end may by resolution designate land to be acquired, improved, and operated for motor vehicle parking lots. By resolution, the council may designate lands to be acquired, improved, and operated for pedestrian malls. By ordinance adopted under section 430.011, the council may designate deleted text begin streets in central business districtsdeleted text end new text begin any property within a city right-of-waynew text end to be improved primarily for pedestrian uses.

Sec. 99.

Minnesota Statutes 2022, section 430.011, subdivision 1, is amended to read:

Subdivision 1.

Legislative findings.

The legislature finds that: (1) increases in population and automobile usage have created traffic congestion in deleted text begin central business districts of cities of the first classdeleted text end new text begin citiesnew text end ; (2) those conditions endanger pedestrians and impede the movement of police and fire equipment, ambulances, and other emergency vehicles; (3)new text begin certainnew text end streets in deleted text begin those central business districtsdeleted text end new text begin cities have beennew text end improved to their maximum width for sidewalk and roadway purposes new text begin and new text end cannot be further widened without taking valuable buildings and improvements, substantially impairing the primary function of those city streets as pedestrian facilities, and impairing the cities' sources of tax revenue; and (4) limitation on the use of those streets by private vehicles may be found by the council of any city deleted text begin of the first classdeleted text end to be in the interest of the city and state, to be of benefit to adjoining properties, and to be essential to the effective use of the streets for street purposes.

Sec. 100.

Minnesota Statutes 2022, section 430.011, subdivision 2, is amended to read:

Subd. 2.

Statement of policy.

It is the state's policy to permit the city council of any city deleted text begin of the first classdeleted text end to protect the public welfare and the interests of the public in the safe and effective movement of persons and to preserve and enhance the function and appearance of deleted text begin the central business districts of cities of the first classdeleted text end new text begin citiesnew text end by adopting pedestrian mall ordinances under this section.

Sec. 101.

Minnesota Statutes 2022, section 430.011, subdivision 3, is amended to read:

Subd. 3.

Pedestrian mall ordinances authorized.

new text begin (a) new text end A pedestrian mall ordinance may be adopted if the city council finds that:

(1) a street or a part of a street (i) is not a part of any deleted text begin statedeleted text end new text begin trunknew text end highway, (ii) is located deleted text begin primarily in a central business districtdeleted text end new text begin within a city right-of-waynew text end , new text begin and new text end (iii) is improved to its maximum width for roadway and sidewalk purposes, and (iv) deleted text begin is congested during all or a substantial part of normal business hoursdeleted text end new text begin except for a city of the first class, is not part of a residence districtnew text end ;

new text begin (2) the movement of police and fire equipment and other emergency vehicles would not be impeded; new text end

deleted text begin (2)deleted text end new text begin (3)new text end reasonably convenient alternate routes exist for private vehicles to other parts of the city and state;

deleted text begin (3)deleted text end new text begin (4)new text end continued unlimited use of the street or part of the street by private vehicles may endanger pedestrians;

deleted text begin (4)deleted text end new text begin (5)new text end abutting properties can reasonably and adequately receive and deliver merchandise and materials from other streets and alleys or through arrangements for limited use of the streets by carriers of merchandise and materials; and

deleted text begin (5)deleted text end new text begin (6)new text end it would be in the best interests of the city and the public and of benefit to adjacent properties to use the street primarily for pedestrian purposes and pedestrian use is the highest and best use of the street or part of it.

new text begin (b) In addition to meeting the criteria under paragraph (a), a pedestrian mall ordinance may be adopted relating to property that is immediately adjacent to at least one side of an intersection with a road that is under the jurisdiction of another road authority only if the city has consulted with the other road authority, which must include consideration of changes to traffic flow. If the other road authority is opposed to the location of the proposed pedestrian mall, the city must make publicly available a detailed written response to the road authority before adopting the ordinance. A pedestrian mall ordinance may be adopted relating to property that borders another city only if the city developing the ordinance has received the approval of the bordering city. new text end

new text begin (c) As relevant, the city must collaborate with the state and local units of government in the pedestrian mall planning process. new text end

Sec. 102.

Minnesota Statutes 2022, section 430.023, is amended to read:

430.023 WHEN CLERK TO MAIL NOTICE IN CONDEMNATION PROCEEDING.

If a city deleted text begin of the first classdeleted text end is authorized in its charter to condemn property for public use and to appoint commissioners to assess damages or benefits on condemned property and is required by its charter to give notice of the filing of the commissioners' report, the city clerk shall give the required notice. Notice must be given by mailing it to the person whose name appears on the records of the auditor of the county in which the city is located as the person who last paid the taxes on the property proposed to be taken, within 48 hours after the filing of the commissioners' report.

Sec. 103.

Minnesota Statutes 2022, section 430.031, subdivision 1, is amended to read:

Subdivision 1.

Limitation of actions.

No action may be commenced or maintained, and no defense interposed, questioning the validity, regularity, or legality of all or part of a pedestrian mall ordinance, or an amendment, to it adopted by a city deleted text begin of the first classdeleted text end under section 430.011, subdivision 3 or 13 except by an appeal to the district court of the county in which the city is located within 20 days after the final adoption and publication of the ordinance or amendment.

Sec. 104.

Minnesota Statutes 2022, section 430.13, is amended to read:

430.13 deleted text begin SCOPE OF CHAPTER; DEFINITION;deleted text end BONDED DEBT.

deleted text begin This chapter applies to cities of the first class. deleted text end

deleted text begin The term "city council" means the governing body of a city. deleted text end

Certificates or bonds that may be issued to finance an improvement under this chapter are part of the bonded debt of the city. In calculating the net indebtedness of the city due to the issue of certificates or bonds, there may be deducted from the gross debt of the city the amount of certificates or bonds that are payable wholly or partly from collections of special assessments levied on property benefited by the improvements, including general obligations of the issuing city, if the city is entitled to reimbursement, in whole or in part, from the proceeds of special assessments levied upon property especially benefited by the improvements.

Sec. 105.

Minnesota Statutes 2022, section 473.13, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Transportation financial review. new text end

new text begin (a) Annually by January 15, the council must submit a financial review that details revenue and expenditures for the transportation components under the council's budget, as specified in paragraph (c). A financial review submitted under this paragraph must provide the information using state fiscal years. new text end

new text begin (b) Annually by the earlier of the accounting close of a budget year or August 15, the council must submit a financial review update that provides the following for the most recent completed budget year: actual revenues; expenditures; transfers; reserves; balances; and a comparison between the budgeted and actual amounts. A financial review update under this paragraph must include the information specified in paragraph (d). new text end

new text begin (c) At a minimum, a financial review must identify: new text end

new text begin (1) the actual revenues, expenditures, transfers, reserves, and balances in each of the previous four years; new text end

new text begin (2) budgeted and forecasted revenues, expenditures, transfers, reserves, and balances in the current year and each year within the state forecast period; new text end

new text begin (3) for the most recent completed year, a comparison between the budgeted and actual amounts under clause (1); and new text end

new text begin (4) for the most recent completed year, fund balances for each replacement service provider under section 473.388. new text end

new text begin (d) The information under paragraph (c), clauses (1) to (3), must include: new text end

new text begin (1) a breakdown by each transportation funding source identified by the council, including but not limited to legislative appropriations; federal funds; fare collections; property tax; and sales tax, including sales tax used for active transportation under section 473.4465, subdivision 2, paragraph (a), clause (1); new text end

new text begin (2) a breakdown by each transportation operating budget category established by the council, including but not limited to bus, light rail transit, commuter rail, planning, special transportation service under section 473.386, and assistance to replacement service providers under section 473.388; and new text end

new text begin (3) data for operations, capital maintenance, and transit capital. new text end

new text begin (e) A financial review under paragraph (a) or (b) must provide information or a methodology sufficient to establish a conversion between state fiscal years and budget years, summarize reserve policies, identify the methodology for cost allocation, and describe revenue assumptions and variables affecting the assumptions. new text end

new text begin (f) The council must submit each financial review to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over transportation policy and finance and to the commissioner of management and budget. new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. new text end

Sec. 106.

Minnesota Statutes 2022, section 473.3927, is amended to read:

473.3927 ZERO-EMISSION AND ELECTRIC TRANSIT VEHICLES.

Subdivision 1.

Transition plan required.

(a) The council must develop and maintain a zero-emission and electric transit vehicle transition plan.

(b) The council must deleted text begin complete the initialdeleted text end new text begin revise thenew text end plan by February 15, deleted text begin 2022deleted text end new text begin 2025new text end , and revise the plan at least once every deleted text begin fivedeleted text end new text begin threenew text end yearsnew text begin following each prior revisionnew text end .

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Greenhouse gas emissions" includes those emissions described in section 216H.01, subdivision 2. new text end

new text begin (c) "Qualified transit bus" means a motor vehicle that meets the requirements under paragraph (d), clauses (1) and (2). new text end

new text begin (d) "Zero-emission transit bus" means a motor vehicle that: new text end

new text begin (1) is designed for public transit service; new text end

new text begin (2) has a capacity of more than 15 passengers, including the driver; and new text end

new text begin (3) produces no exhaust-based greenhouse gas emissions from the onboard source of motive power of the vehicle under all operating conditions. new text end

Subd. 2.

Plan development.

At a minimum, the plan must:

(1) establish deleted text begin implementationdeleted text end policies deleted text begin anddeleted text end new text begin ,new text end guidancenew text begin , and recommendations to implement the transition to a transit service fleet of exclusively zero-emission and electric transit vehicles, including for recipients of financial assistance under section 473.388new text end ;

(2)new text begin establish a bus procurement transition strategy so that beginning on January 1, 2035, any qualified transit bus purchased for regular route transit service or special transportation service under section 473.386 by the council is a zero-emission transit bus;new text end

new text begin (3) consider methods for transit providers to maximize greenhouse gas reduction in addition to zero-emission transit bus procurement, including but not limited to service expansion, reliability improvements, and other transit service improvements; new text end

new text begin (4) analyze greenhouse gas emission reduction from transit improvements identified under clause (3) in comparison to the zero-emission transit bus procurement strategy under clause (2); new text end

new text begin (5)new text end set transition milestones or performance measures, or both, which may include vehicle procurement goals over the transition period new text begin in conjunction with the strategy under clause (2)new text end ;

deleted text begin (3)deleted text end new text begin (6)new text end identify barriers, constraints, and risks, and determine objectives and strategies to address the issues identified;

deleted text begin (4)deleted text end new text begin (7)new text end consider findings and best practices from other transit agencies;

deleted text begin (5)deleted text end new text begin (8)new text end analyze zero-emission and electric transit vehicle technology impacts, including cold weather operation and emerging technologies;

new text begin (9) prioritize deployment of zero-emission transit buses based on the extent to which service is provided to environmental justice areas, as defined in section 116.065, subdivision 1; new text end

deleted text begin (6)deleted text end new text begin (10)new text end consider opportunities to prioritize the deployment of zero-emissions vehicles in areas with poor air quality;

new text begin (11) consider opportunities to prioritize deployment of zero-emission transit buses along arterial and highway bus rapid transit routes, including methods to maximize cost effectiveness with bus rapid transit construction projects; new text end

deleted text begin (7)deleted text end new text begin (12)new text end provide detailed estimates of implementation costsnew text begin to implement the plan and achieve the transition under clause (2), which, to the extent feasible, must include a forecast of annual expenditures, identification of potential sources of funding, and a summary of any anticipated or planned activity to seek additional fundsnew text end ; deleted text begin anddeleted text end

deleted text begin (8) deleted text end new text begin (13) examine capacity, constraints, and potential investments in the electric transmission and distribution grid, in consultation with appropriate public utilities; new text end

new text begin (14) identify methods to coordinate necessary facility upgrades in a manner that maximizes cost effectiveness and overall system reliability; new text end

new text begin (15) examine workforce impacts under the transition plan, including but not limited to changes in staffing complement; personnel skill gaps and needs; and employee training, retraining, or role transitions; and new text end

new text begin (16)new text end summarize updates to the plan from the most recent version.

Subd. 3.

Copy to legislature.

Upon completion or revision of the plan, the council must provide a copy to the chairs, ranking minority members, and staff of the legislative committees with jurisdiction over transportation policy and finance.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. new text end

Sec. 107.

Minnesota Statutes 2023 Supplement, section 473.3999, is amended to read:

473.3999 LIGHT RAIL TRANSIT CONSTRUCTION; COUNCIL AUTHORITY; STAFF ASSISTANCE; PROJECT MANAGER QUALIFICATIONS.

new text begin Subdivision 1. new text end

new text begin Powers. new text end

deleted text begin (a)deleted text end The deleted text begin Metropolitandeleted text end council may exercise the powers granted in this chapter and in other applicable law, as necessary, to plan, design, acquire, construct, and equip light rail transit facilities in the metropolitan area as defined in section 473.121, subdivision 2.

new text begin Subd. 2. new text end

new text begin Staff and project assistance required; Department of Transportation. new text end

deleted text begin (b)deleted text end new text begin (a)new text end Notwithstanding any cooperative agreement between the commissioner of transportation and the deleted text begin Metropolitandeleted text end council in section 473.3994, subdivision 1a, if the council is the responsible authority, the commissioner of transportation must provide staff new text begin and project new text end assistance to the councilnew text begin for review and oversight of the project's developmentnew text end . deleted text begin To the extent practicable,deleted text end The deleted text begin Metropolitandeleted text end council must utilize the Department of Transportation staff new text begin and project new text end assistance for:

(1) new text begin the appropriate new text end delivery method selection for the design, planning, acquisition, construction, and equipping of light rail transit projects;

(2) risk assessment analysis new text begin and cost analysis new text end in the planning, designing, and construction of a light rail transit facility or a new light rail transit projectnew text begin , including but not limited to:new text end

new text begin (i) a critical path schedule for the planning and design phases of a project developed jointly by the council and the commissioner of transportation; new text end

new text begin (ii) peer reviews or value engineering reviews at various milestones established in the critical path schedule created under item (i); and new text end

new text begin (iii) council participation in cost estimate reviews by third-party independent cost estimators in conformance with Federal Transit Administration regulations and guidancenew text end ;

(3) contractor and subcontractor schedule analysis and contractual requirementsnew text begin , including but not limited to:new text end

new text begin (i) development and review of requests for proposals and bid documents prior to advertisement and solicitation; new text end

new text begin (ii) review of bids submitted prior to the award of bids; new text end

new text begin (iii) review of draft contractual language prior to the execution of project contracts; new text end

new text begin (iv) review of change orders for major cost items exceeding $500,000 and schedule delays of more than 30 calendar days prior to the execution of a change order; and new text end

new text begin (v) participation in any dispute resolution process that may arise to address competing claims or disputes between a contractor and the councilnew text end ;

(4) light rail transit project cost management and budget analysis for the planning, designing, and construction of a light rail transit facility or new light rail transit projectnew text begin , including but not limited to:new text end

new text begin (i) recommendations to address or manage cost overruns or discrepancies, funding sources, contingency funding sources and availability, and the management of state or county financial resources; new text end

new text begin (ii) recommendations on appropriate contractual enforcement mechanisms and penalties for any council agreement with a contractor for a light rail transit project; and new text end

new text begin (iii) the development of future cost estimates and communication of projected cost increases for a light rail transit projectnew text end ; and

(5) any other deleted text begin technicaldeleted text end areas of expertise that the Department of Transportation may offer.

deleted text begin (c)deleted text end new text begin (b) The council must provide the commissioner of transportation all relevant information required by this section.new text end

new text begin (c) Staff from the Department of Transportation providing project assistance to the council must report to the commissioner of transportation. Staff assistance from the Department of Transportation must include at least one licensed professional engineer. new text end

new text begin (d) If the commissioner of transportation provides the council with staff and project assistance for the development of a light rail transit project as provided under this section, the commissioner must submit and detail all recommendations made to the council to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance within 30 days of submitting its recommendations to the council. new text end

new text begin (e) The council must give strong consideration to utilizing input or recommendations developed by the commissioner of transportation. If the council decides against utilizing input or recommendations from the department, the council must reconcile significant deviations to the extent practicable and that portion of the project cannot move forward from the critical path schedule's milestone until the recommendation is reconciled. If the council has sufficient reasoning to justify not utilizing input or recommendations from the department, the council must, within 30 business days, provide written notice and documentation of the decision to the department and the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. The notice and documentation must provide the reasons why the council is not utilizing the input or recommendations provided by the department. new text end

new text begin Subd. 3. new text end

new text begin Project costs. new text end

new text begin The project budget is responsible for costs incurred by the commissioner of transportation for duties required in this section. The council must only use direct appropriations in law or federal sources to pay its portion of light rail transit capital construction costs. new text end

new text begin Subd. 4. new text end

new text begin Project manager; qualifications. new text end

If the Metropolitan Council is the responsible authority, the council must select a qualified project manager and lead project engineer with at least ten years' transportation industry experience to lead the planning, design, acquisition, construction, or equipping of a new light rail transit project.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following final enactment. Subdivision 2 does not apply to the Southwest light rail transit (Green Line Extension) project. This section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. new text end

Sec. 108.

Minnesota Statutes 2023 Supplement, section 473.4051, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Bus rapid transit project scope; infrastructure. new text end

new text begin (a) The council must design, fully scope, and construct each arterial bus rapid transit project with the following elements: new text end

new text begin (1) sidewalk curb ramps and pedestrian signals that meet current Americans with Disabilities Act standards as of the time of engineering completion at the four intersection quadrants of an intersection adjacent to a bus rapid transit station; new text end

new text begin (2) transit pavement markings, as applicable; and new text end

new text begin (3) traffic signal transit priority modifications, where feasible and reasonable, to improve speed and efficiency of service. new text end

new text begin (b) The requirements under paragraph (a), clause (1), include intersection infrastructure that serves the bus rapid transit station from the opposite side of a street. The requirements under paragraph (a), clause (1), exclude locations that are: new text end

new text begin (1) compliant with current Americans with Disabilities Act standards as of the time of engineering completion for the project; or new text end

new text begin (2) otherwise included in a programmed and colocated roadway construction project. new text end

new text begin (c) For bus rapid transit project costs resulting from the requirements under paragraph (a), clause (1), the council must pay 50 percent of the costs and the unit of government with jurisdiction over the road must pay 50 percent of the costs. The council must pay the project costs resulting from the requirements under paragraph (a), clauses (2) and (3). new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following final enactment for projects that first commence construction on or after that date. This section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. new text end

Sec. 109.

Minnesota Statutes 2023 Supplement, section 473.412, subdivision 2, is amended to read:

Subd. 2.

Standards established.

(a) deleted text begin By October 1, 2023,deleted text end The Metropolitan Council must adopt standards on cleanliness and repair of transit vehicles and stations. To the extent practicable, the standards must address:

(1) cleaning requirements for transit stations and vehicles operated by the council;

(2) a strategy for discovering and removing vandalism, graffiti, or other defacement to transit stations or vehicles operated by the council;

(3) a proposal for the timely repair of damage to transit stations and transit vehicle fixtures, structures, or other property used for the purpose of supporting public transit; and

(4) any other cleanliness standards necessary to provide a quality ridership experience for all transit users.

(b) deleted text begin By February 1, 2024,deleted text end The Metropolitan Council must provide information on the council's website on how the council solicits public feedback on cleanliness and rider experience at transit stations and on transit vehicles. The council must post conspicuous notice of the public feedback options at each light rail transit station and bus rapid transit station operated by the council.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 110.

Minnesota Statutes 2023 Supplement, section 473.412, subdivision 3, is amended to read:

Subd. 3.

Report required; cleaning standards and expenditures.

(a) By deleted text begin October 1, 2023, and every two yearsdeleted text end new text begin October 1, 2024, and every yearnew text end thereafter, the Metropolitan Council must report to the chairs and ranking minority members of the legislative committees with jurisdiction over transit policy and finance on transit cleanliness and the ridership experience.

(b) The deleted text begin firstdeleted text end report deleted text begin duedeleted text end under paragraph (a) must provide new text begin information on new text end the council's deleted text begin adopteddeleted text end cleanliness standards required under subdivision 2new text begin , including whether the council adopted new cleanliness standards or revisions to current cleanliness standardsnew text end . deleted text begin The first report must also provide information on how the council developed the cleanliness standards, the stakeholders it consulted in drafting the cleanliness standards, and the financial resources needed to implement the cleaning and repair standards. The first report must also identify the council's proposal for soliciting public feedback on cleanliness and rider experience at transit stations and on transit vehicles operated by the council.deleted text end new text begin A report prepared under this subdivision must include information gathered from the required public feedback on cleanliness and rider experience required in subdivision 2, paragraph (b). The council must consider and recommend revisions to cleanliness standards based on the collection of public feedback and must summarize feedback received by the council in the report. new text end

(c) deleted text begin For reports submitted on October 1, 2025, and every two years thereafter, the reportdeleted text end new text begin A report submitted under this subdivisionnew text end must include:

(1) the total expenditures for cleaning and repairing transit stations and transit vehicles;

(2) deleted text begin a report ondeleted text end the frequency, type, and location of repairs;

(3) deleted text begin a report ondeleted text end whether specific transit stations needed a higher proportion of cleaning or repairsnew text begin and detail the council's strategy to resolve identified and persistent concerns at those locationsnew text end ;

(4) deleted text begin a report ondeleted text end new text begin recommendations to addressnew text end workforce challenges for deleted text begin maintaining thedeleted text end new text begin the implementation and maintenance ofnew text end cleanliness new text begin and repair new text end standards adopted by the councilnew text begin , including whether the council maintained agreements with third-party services for cleaning and repairnew text end ;

(5) whether the council has adopted preventative measures against vandalism or graffiti; and

(6) any recommendations for additions to the transit rider code of conduct deleted text begin adopted by the councildeleted text end under section 473.4065new text begin or the transit rider investment program under section 473.4075new text end .

deleted text begin (d) The council must collect and summarize the public comments it receives and incorporate those comments into the report required under paragraph (c). deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 111.

Minnesota Statutes 2023 Supplement, section 473.4465, subdivision 4, is amended to read:

Subd. 4.

Use of funds; metropolitan countiesnew text begin ; reportingnew text end .

new text begin (a) new text end A metropolitan county must use revenue from the regional transportation sales and use tax under section 297A.9915 in conformance with the requirements under section 174.49, subdivision 6.

new text begin (b) By February 15 of each even-numbered year, a metropolitan county must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance on the use of funds received under section 297A.9915. This report must be submitted in conjunction with the report required under section 297A.993, subdivision 2a. At a minimum, the report must include: new text end

new text begin (1) actual sales tax collections allocated to the county over the previous five calendar years; new text end

new text begin (2) an estimation of the total sales tax revenue that is estimated to be allocated to the county in the current year and for the next ten calendar years; and new text end

new text begin (3) for each of the previous five calendar years, the current calendar year, and for the next ten calendar years: new text end

new text begin (i) the amount of sales tax revenue expended or proposed to be expended for each of the allowable uses under section 174.49, subdivision 6; new text end

new text begin (ii) completed, current, planned, and eligible projects or programs for each category under item (i); and new text end

new text begin (iii) an estimated balance of unspent or undesignated regional transportation sales and use tax revenue. new text end

Sec. 112.

Minnesota Statutes 2022, section 473.452, is amended to read:

473.452 TRANSIT OPERATING RESERVES; REPORT.

(a) By deleted text begin February 1deleted text end new text begin December 15new text end each year, each replacement service provider under section 473.388 must report to the council its projected total operating expenses for the current deleted text begin calendardeleted text end new text begin state fiscalnew text end year and its projected operating reserve fund balance as of the previous deleted text begin Decemberdeleted text end new text begin Julynew text end 31.

(b) By deleted text begin March 1deleted text end new text begin January 15new text end each year, the council must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. The report must include:

(1) the information from each provider received under paragraph (a); and

(2) the council's projected total operating expenses for the current deleted text begin calendardeleted text end new text begin state fiscalnew text end year and its projected operating reserve fund balance as of the previous deleted text begin Decemberdeleted text end new text begin Julynew text end 31.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. new text end

Sec. 113.

Minnesota Statutes 2022, section 480.15, is amended by adding a subdivision to read:

new text begin Subd. 10d. new text end

new text begin Uniform collections policies and procedures; limitations. new text end

new text begin The uniform collections policies and procedures under subdivision 10c must not allow collections of court debt, as defined in subdivision 10c, or referral of court debt to the Department of Revenue, that only arises from a single violation under section 169.06, subdivision 10, or 169.14, subdivision 13. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025, and expires August 1, 2029. new text end

Sec. 114.

Laws 2023, chapter 68, article 4, section 108, is amended to read:

Sec. 108.

ADDITIONAL DEPUTY REGISTRAR OF MOTOR VEHICLES FOR RAMSEY COUNTY.

Notwithstanding Minnesota Statutes, deleted text begin sectiondeleted text end new text begin sectionsnew text end 168.33new text begin and 171.061new text end , and rules adopted by the commissioner of public safety limiting sites for the office of deputy registrar new text begin or driver's license agent new text end based on either the distance to an existing deputy registrar new text begin or driver's license agent new text end office or the annual volume of transactions processed by any deputy registrar new text begin or driver's license agent new text end within Ramsey County before or after the proposed appointment, the commissioner of public safety must appoint a new private deputy registrar of motor vehicles new text begin and driver's license agent new text end to operate a new new text begin full-service new text end office deleted text begin of deputy registrardeleted text end , with full authority to function as a registration and motor vehicle tax collection bureaunew text begin or driver's license agent bureaunew text end , at or in the vicinity of the Hmong Village shopping center at 1001 Johnson Parkway in the city of St. Paul. new text begin The addition of a driver's license agent establishes the location as a full-service office with full authority to function as a registration and motor vehicle tax collection and driver's license bureau. new text end All other provisions regarding the appointment and operation of a deputy registrar of motor vehicles new text begin and driver's license agent new text end under Minnesota Statutes, deleted text begin sectiondeleted text end new text begin sectionsnew text end 168.33new text begin and 171.061new text end , and Minnesota Rules, deleted text begin chapterdeleted text end new text begin chapters 7404 andnew text end 7406, apply to the office.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 115.

Laws 2023, chapter 68, article 4, section 126, is amended to read:

Sec. 126.

LEGISLATIVE REPORT; SPEED SAFETY CAMERAS.

(a) By deleted text begin November 1, 2024deleted text end new text begin January 15, 2025new text end , the commissioner of public safety must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance that identifies a process and associated policies for issuance of a mailed citation to the owner or lessee of a motor vehicle that a speed safety camera system detects is operated in violation of a speed limit.

(b) The commissioner must convene a task force to assist in the development of the report. The task force must include the Advisory Council on Traffic Safety under Minnesota Statutes, section 4.076, a representative from the Minnesota County Attorneys Association, new text begin a representative from the judicial branch, new text end and a person with expertise in data privacy and may include other members as the commissioner determines are necessary to develop the report.

(c) At a minimum, the report must include consideration and analysis of:

(1) methods to identify the owner, operator, and any lessee of the motor vehicle;

(2) compliance with federal enforcement requirements related to holders of a commercial driver's license;

(3) authority of individuals who are not peace officers to issue citations;

(4) new text begin authority of individuals who are not peace officers to issue citations electronically;new text end

new text begin (5) judicial and court administrative capacity to process violations issued under the pilot program authorized in Minnesota Statutes, section 169.147; new text end

new text begin (6) the appropriate legal classification of citations issued under a camera-based traffic enforcement system; new text end

new text begin (7) new text end data practices, including but not limited to concerns related to data privacy;

deleted text begin (5)deleted text end new text begin (8)new text end due process, an appeals process, the judicial system, and other legal issues;

deleted text begin (6)deleted text end new text begin (9)new text end technology options, constraints, and factorsnew text begin , including the implementation of electronic citationsnew text end ; and

deleted text begin (7)deleted text end new text begin (10)new text end recommendations regarding implementationdeleted text begin , including but not limited to any legislative proposal and information on implementation costsdeleted text end new text begin of the pilot program authorized in Minnesota Statutes, section 169.147new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 116.

new text begin TRAFFIC SAFETY CAMERA SYSTEMS; EVALUATION AND REPORTING. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms and the terms defined in Minnesota Statutes, section 169.147, subdivision 1, have the meanings given. new text end

new text begin (b) "Commissioner" means the commissioner of transportation. new text end

new text begin (c) "Commissioners" means the commissioners of transportation and public safety. new text end

new text begin (d) "Implementing authority" has the meaning given in Minnesota Statutes, section 169.147, subdivision 1, paragraph (e). new text end

new text begin (e) "Pilot program" means the traffic safety camera system pilot project established in Minnesota Statutes, section 169.147. new text end

new text begin (f) "Traffic safety camera system" has the meaning given in Minnesota Statutes, section 169.011, subdivision 85a. new text end

new text begin Subd. 2. new text end

new text begin Independent evaluation; general requirements. new text end

new text begin (a) The commissioner must arrange for an independent evaluation of traffic safety camera systems that includes analysis of the pilot program. By December 31, 2028, the commissioner must submit a copy of the evaluation to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. new text end

new text begin (b) The evaluation must be performed outside the Departments of Transportation and Public Safety by an entity with qualifying experience in traffic safety research. The evaluation must include any monitoring sites established by an implementing authority. new text end

new text begin (c) The commissioner must establish an evaluation methodology that provides standardized metrics and evaluation measures and enables valid statistical comparison across monitoring sites. new text end

new text begin (d) At a minimum, the evaluation must: new text end

new text begin (1) analyze the effectiveness of traffic safety camera systems in lowering travel speeds, reducing speed differentials, reducing violations of traffic-control signals, and meeting any other measures identified in the evaluation methodology; new text end

new text begin (2) perform statistical analyses of traffic speeds, crashes, injuries, fatalities, and other measurable traffic incidents; and new text end

new text begin (3) identify any changes in traffic congestion attributable to traffic safety camera systems. new text end

new text begin Subd. 3. new text end

new text begin Independent evaluation; implementing authorities. new text end

new text begin (a) An implementing authority under the pilot program must follow the evaluation methodology established under subdivision 2. new text end

new text begin (b) An implementing authority under the pilot program must provide information for the evaluation under subdivision 2 as requested and include the following: new text end

new text begin (1) the total number of warnings issued; new text end

new text begin (2) the total number of citations issued; new text end

new text begin (3) the number of people who opted for diversion under Minnesota Statutes, sections 169.06, subdivision 10, paragraph (b), and 169.14, subdivision 13, paragraph (b); new text end

new text begin (4) gross and net revenue received; new text end

new text begin (5) expenditures incurred; new text end

new text begin (6) a description of how the net revenue generated by the program was used; new text end

new text begin (7) total amount of any payments made to a contractor; new text end

new text begin (8) the number of employees involved in the pilot program; new text end

new text begin (9) the type of traffic safety camera system used; new text end

new text begin (10) the location of each monitoring site; new text end

new text begin (11) the activation start and stop dates of the traffic safety camera system at each monitoring site; new text end

new text begin (12) the number of citations issued, with a breakout by monitoring site; new text end

new text begin (13) the number of instances in which a traffic enforcement agent reviewed recorded video or images for a potential violation but did not issue a resulting citation; and new text end

new text begin (14) details on traffic safety camera system inspection and maintenance activities. new text end

new text begin Subd. 4. new text end

new text begin Pilot program reporting. new text end

new text begin (a) An implementing authority that operates a traffic safety camera system in a calendar year must publish a report on the authority's website on the implementation for that calendar year. The report is due by March 1 of the following calendar year. new text end

new text begin (b) At a minimum, the report must summarize the activities of the implementing authority and provide the information required under subdivision 3, paragraph (b). new text end

new text begin Subd. 5. new text end

new text begin Legislative report. new text end

new text begin By January 15, 2029, the commissioners must submit a report on traffic safety camera systems to the members of the legislative committees with jurisdiction over transportation policy and finance. At a minimum, the report must: new text end

new text begin (1) provide a review of the pilot program; new text end

new text begin (2) provide data on citations issued under the pilot program, with breakouts by year and location; new text end

new text begin (3) summarize the results of the independent evaluation under subdivision 2; new text end

new text begin (4) evaluate any disparities in impacts under the pilot programs, including by income, by race, and in communities that are historically underrepresented in transportation planning; new text end

new text begin (5) identify fiscal impacts of implementation of traffic safety camera systems; and new text end

new text begin (6) make any recommendations regarding ongoing traffic safety camera implementation, including but not limited to any draft legislative proposal. new text end

Sec. 117.

new text begin REPORT; WORK ZONE SAFETY PILOT PROJECT RESULTS. new text end

new text begin (a) By October 1, 2029, the commissioners of transportation and public safety must submit a report on the results and findings of the work zone pilot project that utilized camera-based speed enforcement to issue warnings as provided in Minnesota Statutes, section 169.147, subdivision 17. new text end

new text begin (b) At a minimum, the report must: new text end

new text begin (1) provide a review of the work zone pilot project; new text end

new text begin (2) provide data on warning notices issued by the pilot project, with breakouts by year, location, and trunk highway type; new text end

new text begin (3) evaluate any disparities in impacts under the work zone pilot project; new text end

new text begin (4) make recommendations on the calibration, installation, enforcement, administration, adjudication, and implementation of speed camera traffic enforcement in trunk highway work zones, including any statutory or legislative changes needed; and new text end

new text begin (5) make recommendations on how to integrate trunk highway work zone speed camera enforcement into the commissioner's strategies, practices, and methods to reduce vehicle speeds and enhance worker safety in work zones. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025. new text end

Sec. 118.

new text begin ANTIDISPLACEMENT COMMUNITY PROSPERITY PROGRAM BOARD. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Antidisplacement community prosperity program" or "program" means the antidisplacement community prosperity program established under section 119. new text end

new text begin (c) "Blue Line light rail transit extension corridor" or "corridor" has the meaning given in section 119. new text end

new text begin (d) "Board" means the Antidisplacement Community Prosperity Program Board established in this section. new text end

new text begin Subd. 2. new text end

new text begin Creation. new text end

new text begin The Antidisplacement Community Prosperity Program Board is established to implement the antidisplacement community prosperity program. new text end

new text begin Subd. 3. new text end

new text begin Membership. new text end

new text begin Subject to modification as provided in the bylaws adopted under subdivision 8, the board consists of the members of the Blue Line Extension Anti-Displacement Working Group established by Hennepin County and the Metropolitan Council, as specified in the Blue Line Extension Anti-Displacement Recommendations report published in April 2023 by the Center for Urban and Regional Affairs at the University of Minnesota. new text end

new text begin Subd. 4. new text end

new text begin Chair; other officers. new text end

new text begin The chair of the Metropolitan Council, or a designee, is responsible for chairing the first meeting of the board. The board must elect from among its members a chair and vice-chair at the first meeting. new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin (a) The board must establish an application process to review and approve proposed expenditures for the antidisplacement community prosperity program. An application for a proposed expenditure must receive approval from a majority of board members. The board may request information on financial disclosures from any entity or individual seeking funds under the program, including a complete independent financial audit of the entity. The board must not approve an expenditure that would violate the standard under subdivision 8, paragraph (a), clause (2). new text end

new text begin (b) The application process must evaluate proposed expenditures to determine whether the expenditure is for a qualifying purpose under section 119, subdivision 3, whether an equal amount of funds have been secured from nonstate sources as required in section 119, and whether the expenditure benefits the people along the Blue Line light rail transit extension corridor. new text end

new text begin (c) The Metropolitan Council and state and metropolitan agencies must cooperate with the board and provide information on the Blue Line light rail transit extension project in a timely manner to assist the board in conducting its business and reviewing applications for program expenditures. new text end

new text begin (d) The board must review and consult with the Minnesota Housing Finance Agency, the Department of Employment and Economic Development, the Department of Labor and Industry, and the Metropolitan Council on applications for prospective expenditures to identify areas of need along the project corridor and ensure expenditures achieve the qualifying purpose established in section 119, subdivision 3. new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The Antidisplacement Community Prosperity Program Board expires on June 30, 2030. new text end

new text begin Subd. 7. new text end

new text begin Administration. new text end

new text begin By August 1, 2024, the board must be convened and meet a minimum of three times. On or after January 1, 2025, the board must meet at least quarterly to consider, review, and approve proposed expenditures. new text end

new text begin Subd. 8. new text end

new text begin Bylaws; requirements. new text end

new text begin (a) The board must adopt bylaws related to board governance. The bylaws must establish: new text end

new text begin (1) procedures for board appointments and appointing authorities, membership, terms, removal, and vacancies; and new text end

new text begin (2) a standard and procedures for recusal and conflicts of interest. new text end

new text begin (b) Appointments to the board must not include a member of the legislature. new text end

new text begin (c) The board may adopt procedures to carry out the requirements of the program and as needed to review, approve, and facilitate applications for eligible program expenditures under section 119, subdivision 3. new text end

new text begin Subd. 9. new text end

new text begin Compensation. new text end

new text begin Board member compensation and reimbursement for expenses are governed by Minnesota Statutes, section 15.0575, subdivision 3. new text end

new text begin Subd. 10. new text end

new text begin Administrative support; staff. new text end

new text begin Hennepin County must provide meeting space, administrative support, and staff support for the board. The board must hold its meetings within one mile of the Blue Line light rail transit extension project corridor. new text end

new text begin Subd. 11. new text end

new text begin Open meeting law. new text end

new text begin Meetings of the board are subject to Minnesota Statutes, chapter 13D. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 119.

new text begin BLUE LINE LIGHT RAIL TRANSIT EXTENSION ANTIDISPLACEMENT COMMUNITY PROSPERITY PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Antidisplacement community prosperity program" or "program" means the program established under subdivision 2. new text end

new text begin (c) "Antidisplacement community prosperity program money" or "program money" means the money allocated to the program from the state. new text end

new text begin (d) "Blue Line light rail transit extension corridor" or "corridor" means the neighborhoods and communities within one mile of the route selected for the Blue Line light rail transit extension project and the neighborhoods and communities within one mile of the former Blue Line light rail transit extension project route. new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The antidisplacement community prosperity program is established to preserve and enhance affordable housing, small business support, job training and placement, and economic vitality and to benefit the people and sense of community along the Blue Line light rail transit extension corridor. Proposed program expenditures are reviewed and approved by the Antidisplacement Community Prosperity Program Board under section 118. new text end

new text begin Subd. 3. new text end

new text begin Qualifying purposes. new text end

new text begin Program money must only be expended for the following purposes: new text end

new text begin (1) affordable housing to support: new text end

new text begin (i) existing residents staying in place along the project corridor; and new text end

new text begin (ii) development, preservation, and access to safe affordable housing and house choice; new text end

new text begin (2) small business and community ownership support to: new text end

new text begin (i) incentivize community institutions, businesses, and community members to own property along the corridor and preserve cultural heritage; new text end

new text begin (ii) connect business owners, community institutions, and community members in the corridor to other commercial nodes; new text end

new text begin (iii) improve the business climate before, during, and after construction in the corridor; new text end

new text begin (iv) prioritize the development of spaces for small businesses; new text end

new text begin (v) support opportunities for existing businesses to stay in place and feel supported; and new text end

new text begin (vi) create opportunities for further community ownership in the corridor while preserving existing levels of ownership; new text end

new text begin (3) public space infrastructure enhancements to: new text end

new text begin (i) improve infrastructure around the project and corridor; new text end

new text begin (ii) enhance community connections to the corridor; and new text end

new text begin (iii) preserve cultural heritage in the corridor; and new text end

new text begin (4) job training and placement to increase corridor resident participation in the Blue Line light rail transit extension project and program initiatives. new text end

new text begin Subd. 4. new text end

new text begin Program governance. new text end

new text begin Expenditures funded under this section must be reviewed and approved by the Antidisplacement Community Prosperity Program Board established in section 118. The board's review must determine whether a prospective expenditure is for a qualifying purpose as provided in subdivision 3. The board must not approve an expenditure for any purpose unless the purpose has received an equal amount of funding from nonstate sources, including federal, local, Metropolitan Council, or philanthropic funding. The board is responsible for administering the program expenditure to the approved entity or individual. new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By February 1 of each year, the Antidisplacement Community Prosperity Program Board must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. The report must include a complete review and summary of antidisplacement community programming, including: new text end

new text begin (1) a detailed fiscal review of all expenditures, including a report on expenditures not approved by the board; new text end

new text begin (2) the criteria for determining whether a prospective expenditure is for a qualifying purpose, including a detailed analysis of the decision-making process in applying the factors set forth in subdivision 3; new text end

new text begin (3) a description of programs or activities funded with expenditures approved by the board, including any measurable outcomes achieved as a result of the funding; new text end

new text begin (4) the source and amount of money collected and distributed by the board; new text end

new text begin (5) an explanation of administrative expenses and staffing costs related to the board's administration of the program, including identifying each board member's role and responsibility; new text end

new text begin (6) detailed financial information of nonstate funding received by the board; new text end

new text begin (7) a detailed financial review of instances when the board required a complete, independent financial audit to the extent allowed under law; and new text end

new text begin (8) documentation of any identified misuse of expenditures or expenditures not deemed to be a qualified purpose under the criteria of subdivision 3. new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The antidisplacement community prosperity program expires on June 30, 2030. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 120.

new text begin COMMUNITY ROADSIDE LANDSCAPE PARTNERSHIPS. new text end

new text begin Subject to available funds, the commissioner of transportation must assess and undertake methods to improve and expand the Department of Transportation's community roadside landscape partnership program, including: new text end

new text begin (1) identifying and evaluating locations for partnership opportunities throughout the state where there is high traffic volume and minimal existing vegetation coverage in the form of trees or large shrubs; new text end

new text begin (2) performing outreach and engagement about the program with eligible community partners; new text end

new text begin (3) prioritizing roadsides where vegetation could reduce neighborhood noise impacts or improve aesthetics for neighborhoods that border interstate highways without regard to whether there are existing noise walls; and new text end

new text begin (4) analyzing methods to include cost sharing between the department and participating community partners for ongoing landscape maintenance. new text end

Sec. 121.

new text begin MINNESOTA ADVISORY COUNCIL ON INFRASTRUCTURE IMPLEMENTATION ACTIVITIES. new text end

new text begin (a) Appointing authorities under Minnesota Statutes, section 16B.357, subdivision 2, must make initial appointments by May 1, 2025. new text end

new text begin (b) By May 1, 2025, the commissioner of administration must hire an executive director as provided under Minnesota Statutes, section 16B.359. new text end

new text begin (c) Following the appointments under paragraph (a) and hiring an executive director under paragraph (b), the Minnesota Advisory Council on Infrastructure established under Minnesota Statutes, section 16B.357, must undertake community engagement efforts throughout the state that include hearings to obtain comments and information related to providing for effective and efficient management of infrastructure and preserving and extending the longevity of Minnesota's public and privately owned infrastructure. new text end

Sec. 122.

new text begin PUBLIC EDUCATION CAMPAIGN; MOTORCYCLE OPERATIONS. new text end

new text begin The commissioner of public safety must implement a statewide public education campaign to alert drivers and the public on how motorcycles may safely overtake and pass a vehicle within the same lane or between parallel lanes. The information must be consistent with the requirements of Minnesota Statutes, section 169.974, subdivision 5. new text end

Sec. 123.

new text begin DRIVER AND VEHICLE SERVICES; MATERIALS IN A LANGUAGE OTHER THAN ENGLISH. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Commissioner" means the commissioner of public safety. new text end

new text begin (c) "Deputy registrar" means a public or private deputy registrar appointed by the commissioner under Minnesota Statutes, section 168.33. new text end

new text begin (d) "Driver's license agent" means a public or private driver's license agent appointed by the commissioner under Minnesota Statutes, section 171.061. new text end

new text begin (e) "Equivalent materials" means written materials such as forms, applications, questionnaires, letters, or notices that are used to ask or order a person to provide information or to give a person information on provisions relevant to a person's rights, duties, or privileges under Minnesota Statutes, chapters 168, 168A, and 171, offered in a qualifying language. new text end

new text begin (f) "Qualifying language" means a language not in English and must include Spanish, Hmong, Somali, Karen, Russian, Vietnamese, and any other language used by significant populations within Minnesota as determined in subdivision 2. new text end

new text begin (g) "Substantial number" means 20 percent of the total number of transactions or office visits at a given deputy registrar or driver's license agent location. new text end

new text begin Subd. 2. new text end

new text begin Offering of translated materials required. new text end

new text begin (a) The commissioner must produce equivalent materials for distribution and use by a deputy registrar or driver's license agent to a non-English speaking person seeking the service of a deputy registrar or driver's license agent. The commissioner must translate materials in English into a qualifying language and prioritize translation of material that is distributed most frequently to the public. new text end

new text begin (b) The commissioner, in consultation with the commissioner of administration and the organizations specified in paragraph (c), must determine whether a location of an appointed deputy registrar or driver's license agent serves a substantial number of non-English speaking people and whether the non-English speaking population has access to equivalent materials in a qualifying language. If the commissioner determines a location serves a substantial number of non-English speaking people, the commissioner must notify the location and provide the equivalent materials in all qualifying languages to the deputy registrar or driver's license agent free of charge. If the commissioner determines a location serves a substantial number of non-English speaking people but the language spoken is not a qualifying language, the commissioner must produce equivalent materials for distribution and use by the location in the nonqualifying language within 30 days of its determination. new text end

new text begin (c) The commissioner must consult with the Minnesota Council on Latino Affairs, the Minnesota Council on Asian Pacific Minnesotans, the Council for Minnesotans of African Heritage, and other organizations representing other non-English speaking people on the extent of services offered by a deputy registrar or driver's license agent location and whether there is need for equivalent materials at that location. The commissioner must periodically consult with the organizations specified in this paragraph to determine whether: new text end

new text begin (1) equivalent materials are required in new, nonqualifying additional languages spoken by populations within Minnesota; and new text end

new text begin (2) existing deputy registrar or driver's license agent locations are meeting the needs of non-English speaking populations in qualifying and nonqualifying languages. new text end

new text begin (d) If a non-English speaking person seeks the services of a deputy registrar or driver's license agent but the language spoken by the person is not determined to be a qualifying language, the deputy registrar or driver's license agent must determine whether the Department of Public Safety has produced those materials in the language spoken by the person. If the materials are not yet available, the Division of Driver and Vehicle Services must be notified and provide the equivalent materials in the new language within 30 days. The equivalent materials must be provided free of charge to the requester. new text end

new text begin (e) If the commissioner determines that equivalent materials are required in a new language, the commissioner must notify the organizations specified in paragraph (c) and provide notice to deputy registrars and driver's license agents of the availability of equivalent materials. The commissioner, in consultation with the commissioner of administration, must establish administrative support procedures for assisting deputy registrars and driver's license agents with requests for equivalent materials in a qualifying or nonqualifying language. new text end

new text begin Subd. 3. new text end

new text begin Report required. new text end

new text begin By February 1, 2026, the commissioner must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. The report must detail the efforts of the Division of Driver and Vehicle Services to implement the requirements of this section and must include the following: new text end

new text begin (1) the locations of deputy registrars and driver's license agents who serve a substantial number of non-English speaking people on a yearly basis; new text end

new text begin (2) the different languages requested at locations serving a substantial number of non-English speaking people; new text end

new text begin (3) how many requests for equivalent materials in languages other than English were made but not at locations that serve a substantial number of non-English speaking people on a yearly basis; new text end

new text begin (4) the expenditures used on producing equivalent materials in languages other than English; new text end

new text begin (5) any recommended legislative changes needed to produce equivalent materials in languages other than English statewide; new text end

new text begin (6) any information or feedback from deputy registrars and driver's license agents; and new text end

new text begin (7) any information or feedback from persons who requested equivalent materials under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 124.

new text begin STUDY; DYNAMIC TRANSPORTATION OPTIONS; GREATER MINNESOTA TRANSIT PLAN; REPORT. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the meanings given: new text end

new text begin (1) "commissioner" means the commissioner of transportation; new text end

new text begin (2) "dynamic transportation options" includes but is not limited to nonfixed route options, prearranged and dial-a-ride options arranged via telephone, digital application, or website; demand response microtransit service for last-mile connection; and private transportation companies, including but not limited to transportation network companies or taxi companies; new text end

new text begin (3) "nonmetropolitan county" means any Minnesota county other than those under Minnesota Statutes, section 473.121, subdivision 4; and new text end

new text begin (4) "wheelchair accessible vehicle" means a vehicle equipped with a ramp or lift capable of transporting nonfolding motorized wheelchairs, mobility scooters, or other mobility devices. new text end

new text begin Subd. 2. new text end

new text begin Study required; pilot program proposal. new text end

new text begin (a) The commissioner must study, in collaboration with identified stakeholders in subdivision 3, increasing access to transit and transportation options, including ridesharing or other dynamic transportation options in rural, nonmetropolitan areas. The report must identify existing gaps in transportation service in greater Minnesota. The commissioner may include the results of the report required under this section in the 2025 Greater Minnesota transit investment plan provided in Minnesota Statutes, section 174.24, subdivision 1a. new text end

new text begin (b) The commissioner must outline and make recommendations on establishing a proposed rural dynamic transportation options pilot program in coordination with a rural transportation coordinating council. The proposed pilot program must attempt to increase service in the rural transportation coordinating council's area by identifying gaps in service and propose options to increase mobility, including but not limited to the use of transportation network companies or taxis with access to wheelchair accessible vehicles. The proposed pilot project plan must compare the regional transportation coordinating council's current service area versus its proposed new service area, the cost differential, and the anticipated new users of the pilot program. The proposed pilot project plan must include a timeline for deployment and what resources may be needed to implement the pilot for at least two years. new text end

new text begin Subd. 3. new text end

new text begin Stakeholders. new text end

new text begin (a) The commissioner must develop the study in consultation with: new text end

new text begin (1) one representative from the Minnesota Council on Disability; new text end

new text begin (2) two representatives, who must be jointly selected by the American Council of the Blind of Minnesota, the National Federation of the Blind of Minnesota, and the Minnesota DeafBlind Association; new text end

new text begin (3) one representative from a transportation network company, as defined in Minnesota Statutes, section 65B.472, subdivision 1; new text end

new text begin (4) one representative from a taxicab company; new text end

new text begin (5) one representative with familiarity and experience in transit vehicle dispatching services and route connection expertise; new text end

new text begin (6) the executive director of the Minnesota Council on Transportation Access or a designee; new text end

new text begin (7) two representatives from a Minnesota regional transportation coordination council, one of whom must be a volunteer driver who transports persons or goods on behalf of a nonprofit organization or governmental unit using their own private passenger vehicle or a volunteer driver coordinator; new text end

new text begin (8) one county commissioner from a nonmetropolitan county; new text end

new text begin (9) a private transit or transportation services provider; new text end

new text begin (10) one representative from a transit provider who provides transportation services in a small urban area and receives funds under United States Code, title 49, section 5307; and new text end

new text begin (11) one representative from a transit provider who provides transportation services in a rural area and receives funds under United States Code, title 49, section 5311. new text end

new text begin (b) The commissioner may convene an in-person meeting of stakeholders to develop the report's contents and recommendations. The commissioner is responsible for providing accessible meeting space and administrative and technical support for any stakeholder meeting to develop the report. Public members of the working group serve without compensation or payment of expenses. new text end

new text begin (c) If the groups specified in paragraph (a), clause (2), are unable to select a member to participate in the development of the report, the commissioner may appoint two members of the public who: new text end

new text begin (1) are blind, partially blind, or deafblind; and new text end

new text begin (2) possess relevant experience in transportation or transit policy or as a rider of special transportation services. new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin At a minimum, the commissioner and the stakeholders provided in subdivision 3 must identify and analyze: new text end

new text begin (1) inefficiencies in route connections and demand response; new text end

new text begin (2) improvements in coordination across different public, private, and individual sources of transportation; new text end

new text begin (3) existing gaps in service in Greater Minnesota, including but not limited to: new text end

new text begin (i) crossing county lines; new text end

new text begin (ii) collaboration between counties; new text end

new text begin (iii) resolving local funding share issues; and new text end

new text begin (iv) vehicle availability, operating funds, staffing, and other capital issues; new text end

new text begin (4) improvements in dispatch and service time for public and private service, including an analysis of digital and voice technology commercially available to transportation providers; new text end

new text begin (5) areas of coordination to maximize the availability and use of vehicles for ambulatory people and maximizing the number of wheelchair-accessible vehicles in the program; new text end

new text begin (6) the impact of Federal Transit Administration rules on mobility service improvements; new text end

new text begin (7) the impact of Medicare services on transportation availability and options; new text end

new text begin (8) nonemergency medical transportation issues; new text end

new text begin (9) the impact of the commissioner's shared mobility work with the Moving Greater Minnesota Forward program; and new text end

new text begin (10) rural and small urban transportation funding sources and their limitations for use of each relevant source. new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By February 15, 2025, the commissioner of transportation must report the results of the study to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The requirement for collaboration between the stakeholders and the commissioner expires on May 15, 2025, or upon submission of the report required under subdivision 5, whichever is earlier. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 125.

new text begin STUDY; METRO MOBILITY ENHANCEMENTS; REPORT. new text end

new text begin (a) The commissioner of transportation must, in consultation with the chair of the Metropolitan Council, perform a Metro Mobility enhancement and service study and develop recommendations to improve the efficiency, effectiveness, reliability, dignity, and experience of riders of the special transportation service under Minnesota Statutes, section 473.386. new text end

new text begin (b) The study must include: new text end

new text begin (1) an evaluation of the Metropolitan Council's efforts to deliver improvements in the reliability, effectiveness, and efficiency of services as required by state and federal law, including workforce and procurement efforts to meet the demand for Metro Mobility services; new text end

new text begin (2) an analysis of the extent to which Metro Mobility can fully meet demand for its services in both the federally defined and state-defined services areas, including a comprehensive examination of the Metropolitan Council's on-demand taxi alternative for Metro Mobility-certified riders and Metro Move services; new text end

new text begin (3) an evaluation of whether Metro Mobility met performance goals for the fulfillment of ride requests in the state-mandated service area under Minnesota Statutes, section 473.386, subdivision 1, paragraph (a); new text end

new text begin (4) an analysis of whether state service requirements in law should be amended to prohibit or restrict the denial of ride requests in the state-mandated service area and whether such a requirement in service can be met with existing resources; new text end

new text begin (5) suggested improvements to the Metropolitan Council's oversight and management of its reservation and dispatch structure and a detailed analysis and recommendations on a Metropolitan Council-operated centralized reservation system; new text end

new text begin (6) a comprehensive analysis of the Metropolitan Council's oversight and management of transit providers contracted to provide rides for Metro Mobility, including services plans, payment and bonus structure, and performance standards; new text end

new text begin (7) recommendations on the adequacy of the Metro Mobility complaints process and an evaluation of whether the Metropolitan Council receives all rider concerns and whether concerns are addressed appropriately; new text end

new text begin (8) an evaluation of the Metro Mobility enhancement pilot program instituted under Laws 2023, chapter 68, article 4, section 121; new text end

new text begin (9) an evaluation and assessment of how to implement the use of transportation network companies or taxi services to provide an enhanced service option in which riders may pay a higher fare than other users of Metro Mobility services; new text end

new text begin (10) an evaluation of the feasibility of nonsubsidized, subsidized, and tiered ride services handled by a dispatching service provider; and new text end

new text begin (11) an analysis of and recommendations for comprehensive improvements in route coordination, call sequencing and customer service, integration with transportation network company applications, and cataloging rides for maximum efficiency and driver compensation. new text end

new text begin (c) The Metropolitan Council must cooperate with the Department of Transportation and provide information requested in a timely fashion to implement and conduct the study. new text end

new text begin (d) The commissioner must consult with interested parties and stakeholders in conducting the service study and report, including representatives from the Minnesota Council on Disability, American Council of the Blind of Minnesota, the Minnesota DeafBlind Association, the National Federation of the Blind's Minnesota chapter, metro-area private transportation companies, identified riders of Metro Mobility, transit providers, Metro Mobility drivers, the Board on Aging, the Department of Human Services, and any other interested party with experience in providing mobility services for disabled persons. new text end

new text begin (e) By February 15, 2026, the commissioner must submit the report and findings to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. new text end

Sec. 126.

new text begin STUDY; HIGHWAY DESIGNATION REVIEW COMMITTEE. new text end

new text begin (a) By December 15, 2024, the commissioner of transportation must conduct a study on the establishment of a standing committee to evaluate and authorize designations of highways and bridges on the trunk highway system. new text end

new text begin (b) At a minimum, the study required in paragraph (a) must: new text end

new text begin (1) evaluate the feasibility and effectiveness of establishing a standing committee with authority to review proposals for designation of memorial highways and bridges on the trunk highway system and approve a designation without enactment of a law that specifies the designation in the manner under Minnesota Statutes, section 161.14; new text end

new text begin (2) propose criteria for a standing committee to evaluate each designation proposal, with consideration of public interest, community support, and the locations of existing designations; new text end

new text begin (3) examine whether other states have adopted similar review committees and identify any best practices or other considerations; new text end

new text begin (4) evaluate the potential costs or benefits to authorizing establishment of designations as provided under clause (1); new text end

new text begin (5) assess the required resources, staffing, and administrative support needed to establish and maintain the standing committee; and new text end

new text begin (6) recommend draft legislation. new text end

new text begin (c) The commissioner must submit the results of the study to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 127.

new text begin STUDY; ELECTRIC-ASSISTED BICYCLE YOUTH OPERATION. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Active transportation advisory committee" means the committee established in Minnesota Statutes, section 174.375. new text end

new text begin (c) "Advisory Council on Traffic Safety" means the advisory council established in Minnesota Statutes, section 4.076. new text end

new text begin (d) "Commissioners" means the commissioner of public safety and the commissioner of transportation. new text end

new text begin (e) "Electric-assisted bicycle" has the meaning given in Minnesota Statutes, section 169.011, subdivision 27. new text end

new text begin Subd. 2. new text end

new text begin Electric-assisted bicycles study. new text end

new text begin (a) The commissioners must conduct a study and develop recommendations on the operation of electric-assisted bicycles by persons under the age of 18 to increase the safety of riders, other cyclists, and all other users of active transportation infrastructure. The commissioners must conduct the study jointly with the active transportation advisory committee and the Advisory Council on Traffic Safety. new text end

new text begin (b) The study required under paragraph (a) must: new text end

new text begin (1) identify challenges to the safe operation of electric-assisted bicycles by those under the age of 18; new text end

new text begin (2) evaluate existing legal authority for strategies, practices, and methods to reduce the availability of modifications to the electric motor of electric-assisted bicycles; new text end

new text begin (3) make recommendations on whether to change state law to improve electric-assisted bicycle safety on roads, trails, and other areas where safe operation of electric-assisted bicycles is needed; and new text end

new text begin (4) propose educational and public awareness campaigns to educate the public about electric-assisted bicycles, promote their safe operation, and raise awareness of their unique characteristics when operating on roadways. new text end

new text begin (c) In conducting the study with the Advisory Council on Traffic Safety and the active transportation advisory committee, the commissioners must consult with interested stakeholders, including but not limited to: new text end

new text begin (1) active transportation and bicycling advocates; new text end

new text begin (2) local elected officials; new text end

new text begin (3) retailers and manufacturers of electric-assisted bicycles; new text end

new text begin (4) the Department of Natural Resources; new text end

new text begin (5) the Department of Commerce; new text end

new text begin (6) E-12 educators with experience in active transportation safety training; new text end

new text begin (7) medical professionals and emergency medical technicians; new text end

new text begin (8) the State Patrol and local law enforcement; and new text end

new text begin (9) consumer protection advocates. new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By February 1, 2026, the commissioners must submit the study conducted under this section to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 128.

new text begin STUDY; DEPUTY REGISTRAR AND DRIVER'S LICENSE AGENT LOCATIONS COMPETITIVE BIDDING. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Commissioner" means the commissioner of public safety. new text end

new text begin (c) "Deputy registrar" means a public or private deputy registrar appointed by the commissioner under Minnesota Statutes, section 168.33. new text end

new text begin (d) "Driver's license agent" means a public or private driver's license agent appointed by the commissioner under Minnesota Statutes, section 171.061. new text end

new text begin Subd. 2. new text end

new text begin Study required. new text end

new text begin The commissioner must conduct a driver's license agent and deputy registrar open bidding process study. The study must evaluate and analyze the appointment process for a replacement deputy registrar or driver's license agent when an appointed deputy registrar or driver's license agent closes an approved office location. At a minimum, the study must evaluate the requirements established in Minnesota Statutes, sections 168.33, subdivision 8b, and 171.061, subdivision 5a, and must include: new text end

new text begin (1) the commissioner's proposal to establish a competitive bidding process to appoint a replacement deputy registrar or driver's license agent at an existing approved office location or approved replacement location; new text end

new text begin (2) recommended legislation to establish, implement, administer, and enforce a competitive bidding process and its requirements in statute; new text end

new text begin (3) an analysis of how the competitive bidding process would interact with the commissioner's existing rules on deputy registrar and driver's license agent office locations and propose recommendations to reconcile any issues; new text end

new text begin (4) the effect of a competitive bidding process on service outcomes, financial sustainability, and needed financial assistance for deputy registrars and driver's license agents; new text end

new text begin (5) how a competitive bidding process would initiate business development for persons who are seeking appointment as a deputy registrar or driver's license agent; new text end

new text begin (6) the expected fiscal impact for creating and administering a competitive bidding process; new text end

new text begin (7) an evaluation and recommendations on the impact of implementing a competitive bidding process on existing deputy registrar and driver's license agent locations; and new text end

new text begin (8) feedback solicited from existing deputy registrars and driver's license agents on the commissioner's proposal. new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By February 1, 2025, the commissioner must complete the study and report the results of the study to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. The report must include proposed legislation to establish and implement the competitive bidding process required in Minnesota Statutes, sections 168.33, subdivision 8b, and 171.061, subdivision 5a. new text end

Sec. 129.

new text begin STUDY; WAYSIDE DETECTORS. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given: new text end

new text begin (1) "commissioner" means the commissioner of transportation; and new text end

new text begin (2) "wayside detector" or "wayside detector system" means one or more electronic devices that: new text end

new text begin (i) perform automated scanning of passing trains, rolling stock, and on-track equipment to detect defects or precursors to defects in equipment or component parts; and new text end

new text begin (ii) provide notification to individuals of a defect or precursor to a defect. new text end

new text begin (b) The commissioner must conduct a comprehensive study on wayside detector systems and other rail inspection technologies. The commissioner must engage with the governor's Council on Freight Rail under Executive Order 24-02 to consider and review issues related to wayside detectors, including analyzing existing federal regulations and guidance, incidents and performance data, safety complaints, and best practices. new text end

new text begin (c) The study must: new text end

new text begin (1) identify current practices for defect notification to train crews; new text end

new text begin (2) identify current practices for wayside detector systems or other inspection technology deployment and maintenance; new text end

new text begin (3) analyze deployed and emerging wayside detector system technology, including known detector types and quantities and may include but is not limited to the following inspection technologies: new text end

new text begin (i) acoustic bearing detectors; new text end

new text begin (ii) hot box detectors; new text end

new text begin (iii) wheel tread inspection detectors; new text end

new text begin (iv) wheel impact load detectors; new text end

new text begin (v) wheel temperature detectors; new text end

new text begin (vi) wheel profile detectors; and new text end

new text begin (vii) machine vision systems; new text end

new text begin (4) analyze wayside detector systems' impacts on railroad safety and identify accidents and incident trends of rolling stock or other conditions monitored by wayside detectors; new text end

new text begin (5) estimate costs of requiring wayside detector systems for Class II and Class III railroads and rail carriers and identify potential state funding mechanisms to institute the requirements; new text end

new text begin (6) include a federal preemption analysis of mandating wayside detector systems under state law that includes an analysis and examination of federal law, case law, and federal guidance; new text end

new text begin (7) analyze the costs and impacts, if any, on the transport of goods on certain Minnesota industries and sectors, including agriculture, taconite mining, manufacturing, timber, retail, and automotive, if implementation of a wayside detector system is required in Minnesota; and new text end

new text begin (8) review current and anticipated Federal Railroad Administration efforts to regulate wayside detector systems, including guidance from the federal Railroad Safety Advisory Committee on wayside detectors. new text end

new text begin (d) By January 15, 2026, the commissioner must submit a joint report with the governor's Council on Freight Rail on the study to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation, commerce, and civil law policy and finance. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 130.

new text begin STUDY; COMMERCIAL DRIVER WORKFORCE. new text end

new text begin (a) The commissioners of public safety and transportation must jointly conduct a study to address commercial driver shortages in transportation and transit sectors and propose recommendations to address the challenges posed by driver shortages and the attrition rate of commercial vehicle drivers in Minnesota. The study must comprehensively examine challenges in test access, workforce development, driver compensation and retention, training and certification offered by postsecondary institutions, and how each of those challenges may be addressed by the legislature or other state regulatory action. new text end

new text begin (b) In conducting the study, the commissioners must consult with stakeholders involved in the training, certification, licensing, development, and education of commercial drivers, including but not limited to representatives from trucking companies, freight and logistics companies, transit and bus operators, labor unions representing commercial motor vehicle drivers, public and private commercial driver's license testing providers and behind-the-wheel instructors, or any other entity that may assist the commissioners in conducting the study. Stakeholders must assist the commissioners to identify key issues or policies that warrant further examination, address or clarify competing claims across industries, provide analysis on the reasons behind an operator shortage in Minnesota, and identify ways to increase driver access, participation, and retention in commercial driving operations. new text end

new text begin (c) The commissioners must also consult with the commissioners of labor and industry, commerce, and employment and economic development; Metro Transit; the Center for Transportation Studies at the University of Minnesota; and the Board of Trustees of the State Colleges and Universities of Minnesota in conducting the study and developing the report to the legislature. new text end

new text begin (d) The commissioners must convene an initial meeting with stakeholders and representatives from the agencies specified in paragraph (c) by July 15, 2024, to prepare for the study, identify areas of examination, and establish a solicitation process for public comment on the report. The public notification process required under this paragraph must attempt to solicit participation from the public on commercial driver shortage and workforce issues and include those comments in the report required under paragraph (f). The commissioners must convene at least six meetings before publication of the report. new text end

new text begin (e) The commissioner of transportation is responsible for providing meeting space and administrative services for meetings with stakeholders in developing the report required under this section. Public members of the working group serve without compensation or payment of expenses. The commissioner of transportation must host the public notification, participation, and comment requirements under paragraph (d) on its website and use the information in preparing the study. new text end

new text begin (f) By February 15, 2025, the commissioners must submit the results of the study, stakeholder and public comments, and recommended legislative changes to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 131.

new text begin STUDY; SPECIAL LICENSE PLATE REVIEW COMMITTEE. new text end

new text begin (a) By February 15, 2025, the commissioner of public safety must conduct a comprehensive study on the establishment of a standing committee in the Division of Driver and Vehicle Services to review and approve proposals for special license plates. The study must also evaluate potential improvements to the current statutory and legislative process for approving specialty license plates, including removal and delegation of legislative authority in the approval of new special license plates. new text end

new text begin (b) The study required in paragraph (a) must: new text end

new text begin (1) evaluate the feasibility and effectiveness of establishing a standing committee tasked with reviewing and approving proposals for special license plates; new text end

new text begin (2) propose criteria for a standing committee to evaluate each special license plate proposal based on criteria such as public interest, community support, relevance to the purpose of special license plates, and potential revenue generation; new text end

new text begin (3) assess the current statutory process for approving special license plates, including Minnesota Statutes, section 168.1293, and include suggested improvements to the statutory language to improve transparency, accountability, and public input in the special license plate process; new text end

new text begin (4) analyze the roles and responsibilities of relevant stakeholders, including the legislature, the Department of Public Safety, community organizations, or other interested parties involved in the current approval, creation, and distribution of special license plates in Minnesota; new text end

new text begin (5) examine other states that have adopted similar review committees for special license plates; new text end

new text begin (6) evaluate the potential costs or benefits to removing legislative authority to approve special license plates, including a detailed analysis of fiscal considerations; new text end

new text begin (7) evaluate whether the creation of a standing committee for review of special license plates would have any impact on rules currently adopted and enforced by the commissioner, including Minnesota Rules, part 7403.0500; new text end

new text begin (8) evaluate whether the standing committee should be responsible for monitoring the implementation and usage of approved special license plates and recommend any necessary modifications or discontinuations to existing special license plates; new text end

new text begin (9) assess the required resources, staffing, and administrative support needed to establish and maintain the standing committee; and new text end

new text begin (10) provide any other recommendations to the potential improvement to the special license plate process, including design, implementation, and public engagement. new text end

new text begin (c) The commissioner must submit the results of the study to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 132.

new text begin REVISOR INSTRUCTION. new text end

new text begin (a) The revisor of statutes must recodify Minnesota Statutes, section 169.21, subdivision 6, as Minnesota Statutes, section 171.0701, subdivision 1b. The revisor must correct any cross-references made necessary by this recodification. new text end

new text begin (b) The revisor of statutes must recodify Minnesota Statutes, section 473.3927, subdivision 1, as Minnesota Statutes, section 473.3927, subdivision 1b. The revisor must correct any cross-references made necessary by this recodification. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 133.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, section 168.1297, new text end new text begin is repealed. new text end

ARTICLE 4

LABOR APPROPRIATIONS

Section 1.

new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns under "Appropriations" are added to the appropriations in Laws 2023, chapter 53, or other law to the specified agency. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2024" and "2025" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. "The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" is fiscal years 2024 and 2025. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2024 new text end new text begin 2025 new text end

Sec. 2.

new text begin DEPARTMENT OF HEALTH new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 174,000 new text end

new text begin $174,000 the second year is for technical assistance for rulemaking for acceptable blood lead levels for workers. This is a onetime appropriation and is available until June 30, 2026. new text end

Sec. 3.

new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 9,651,000 new text end

new text begin (a) $9,000,000 the second year is for a grant to Tending the Soil, to design, redesign, renovate, construct, furnish, and equip the Rise Up Center, a building located in Minneapolis, that will house a workforce development and job training center, administrative offices, and a public gathering space. This is a onetime appropriation and is available until June 30, 2029. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner may use up to one percent of this appropriation for administrative costs. new text end

new text begin (b) $651,000 the second year is for implementation of the broadband provisions in article 13. new text end

Sec. 4.

new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 39,000 new text end

new text begin $39,000 the second year is for investigation and enforcement of conduct by or on behalf of telecommunications carriers, telephone companies, or cable communications system providers that impacts public utility or cooperative electric association infrastructure. new text end

Sec. 5.

new text begin DEPARTMENT OF REVENUE new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 143,000 new text end

new text begin $143,000 the second year is for the disclosure and records management unit to work on agency-to-agency data-sharing agreements related to worker misclassification. This is a onetime appropriation. new text end

Sec. 6.

new text begin ATTORNEY GENERAL new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 49,000 new text end

new text begin $49,000 the second year is to represent the Department of Labor and Industry in contested case hearings related to worker misclassification. This appropriation is available until June 30, 2026. The base for this appropriation is $98,000 in fiscal year 2027 and each year thereafter. new text end

Sec. 7.

Laws 2023, chapter 53, article 14, section 1, is amended to read:

Section 1.

EARNED SICK AND SAFE TIME APPROPRIATIONS.

(a) $1,445,000 in fiscal year 2024 and deleted text begin $2,209,000deleted text end new text begin $1,899,000new text end in fiscal year 2025 are appropriated from the general fund to the commissioner of labor and industry for enforcement and other duties regarding earned sick and safe time under Minnesota Statutes, sections 181.9445 to 181.9448, and chapter 177. deleted text begin The base for this appropriation is $1,899,000 for fiscal year 2026 and each year thereafter.deleted text end

(b) $300,000 in fiscal year 2024 and $300,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of labor and industry for grants to community organizations under Minnesota Statutes, section 177.50, subdivision 4. This is a onetime appropriation.

new text begin (c) $310,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of labor and industry for rulemaking related to earned sick and safe time under Minnesota Statutes, sections 181.9445 to 181.9448, and chapter 177. This is a onetime appropriation and is available until June 30, 2027. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 8.

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

Subdivision 1.

Total Appropriation

$ 47,710,000 $ deleted text begin 44,044,000 deleted text end
new text begin 45,017,000 new text end
Appropriations by Fund
2024 2025
General 7,200,000 deleted text begin 4,889,000 deleted text end
new text begin 5,522,000 new text end
Workers' Compensation 30,599,000 deleted text begin 32,390,000 deleted text end new text begin 32,669,000 new text end
Workforce Development 9,911,000 deleted text begin 6,765,000deleted text end new text begin 6,826,000new text end

The amounts that may be spent for each purpose are specified in the following subdivisions. The general fund base for this appropriation is deleted text begin $4,936,000deleted text end new text begin $5,150,000new text end in fiscal year 2026 and deleted text begin $4,958,000deleted text end new text begin $5,169,000new text end in fiscal year 2027 and each year thereafter. The workers compensation fund base is deleted text begin $32,749,000deleted text end new text begin $32,892,000new text end in fiscal year 2026 and $32,458,000 in fiscal year 2027 and each year thereafter. The workforce development fund base is deleted text begin $6,765,000deleted text end new text begin $6,826,000new text end in fiscal year 2026 and each year thereafter.

Sec. 9.

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

Subd. 3.

Labor Standards

6,520,000 deleted text begin 6,270,000 deleted text end
new text begin 6,964,000 new text end
Appropriations by Fund
General 4,957,000 deleted text begin 4,635,000 deleted text end
new text begin 5,268,000 new text end
Workforce Development 1,563,000 deleted text begin 1,635,000deleted text end new text begin 1,696,000new text end

The general fund base for this appropriation is deleted text begin $4,682,000deleted text end new text begin $4,896,000new text end in fiscal year 2026 and deleted text begin $4,704,000deleted text end new text begin $4,915,000new text end in fiscal year 2027 and each year thereafter.

(a) $2,046,000 each year is for wage theft prevention.

(b) $1,563,000 the first year and deleted text begin $1,635,000deleted text end new text begin $1,696,000new text end the second year are from the workforce development fund for prevailing wage enforcement.

(c) $134,000 the first year and $134,000 the second year are for outreach and enforcement efforts related to changes to the nursing mothers, lactating employees, and pregnancy accommodations law.

(d) $661,000 the first year and $357,000 the second year are to perform work for the Nursing Home Workforce Standards Board. The base for this appropriation is $404,000 in fiscal year 2026 and $357,000 in fiscal year 2027.

(e) $225,000 the first year and $169,000 the second year are for the purposes of the Safe Workplaces for Meat and Poultry Processing Workers Act.

(f) $27,000 the first year is for the creation and distribution of a veterans' benefits and services poster under Minnesota Statutes, section 181.536.

new text begin (g) $141,000 the second year is to inform and educate employers relating to Minnesota Statutes, section 181.960. new text end

new text begin (h) $56,000 the second year is for education and training related to employee misclassification. The base for this appropriation is $70,000 in fiscal year 2026 and each fiscal year thereafter. new text end

new text begin (i) From the general fund appropriation for this purpose, $436,000 in the second year is available through June 30, 2027. new text end

Sec. 10.

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

Subd. 5.

Workplace Safety

new text begin new text end
8,644,000 deleted text begin 7,559,000 deleted text end
new text begin 7,838,000 new text end
Appropriations by Fund
General 2,000,000 -0-
Workers' Compensation 6,644,000 deleted text begin 7,559,000 deleted text end
new text begin 7,838,000 new text end

The workers compensation fund base for this appropriation is deleted text begin $7,918,000deleted text end new text begin $8,061,000new text end in fiscal year 2026 and $7,627,000 in fiscal year 2027 and each year thereafter.

$2,000,000 the first year is for the ergonomics safety grant program. This appropriation is available until June 30, 2026. This is a onetime appropriation.

Sec. 11.

Laws 2023, chapter 53, article 19, section 4, is amended to read:

Sec. 4.

BUREAU OF MEDIATION SERVICES

$ 3,707,000 $ 3,789,000

deleted text begin (a)deleted text end $750,000 each year is for purposes of the Public Employment Relations Board under Minnesota Statutes, section 179A.041.

deleted text begin (b) $68,000 each year is for grants to area labor management committees. Grants may be awarded for a 12-month period beginning July 1 each year. Any unencumbered balance remaining at the end of the first year does not cancel but is available for the second year. deleted text end

deleted text begin (c) $47,000 each year is for rulemaking, staffing, and other costs associated with peace officer grievance procedures. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2023. new text end

ARTICLE 5

COMBATIVE SPORTS

Section 1.

Minnesota Statutes 2023 Supplement, section 341.25, is amended to read:

341.25 RULES.

(a) The commissioner may adopt rules that include standards for the physical examination and condition of combatants and referees.

(b) The commissioner may adopt other rules necessary to carry out the purposes of this chapter, including, but not limited to, the conduct of all combative sport contests and their manner, supervision, time, and place.

(c) The most recent version of the Unified Rules of Mixed Martial Arts, as promulgated by the Association of Boxing Commissions, is incorporated by reference and made a part of this chapter except as qualified by this chapter and Minnesota Rules, chapter 2202. In the event of a conflict between this chapter and the Unified Rules, this chapter must govern.

(d) The most recent version of the Unified Rules of Boxing, as promulgated by the Association of Boxing Commissions, is incorporated by reference and made a part of this chapter except as qualified by this chapter and Minnesota Rules, chapter 2201. In the event of a conflict between this chapter and the Unified Rules, this chapter must govern.

(e) The most recent version of the Unified Rules of Kickboxingnew text begin and Unified Rules of Muay Thainew text end , as promulgated by the Association of Boxing Commissions, deleted text begin isdeleted text end new text begin arenew text end incorporated by reference and made a part of this chapter except as qualified by this chapter and any applicable Minnesota Rules. In the event of a conflict between this chapter and deleted text begin the Unified Rulesdeleted text end new text begin those rulesnew text end , this chapter must govern.new text begin If a promoter seeks to hold a kickboxing event governed by a different set of kickboxing rules, the promoter must send the commissioner a copy of the rules under which the proposed bouts will be conducted at least 45 days before the event. The commissioner may approve or deny the use of the alternative rules at the commissioner's discretion. If the alternative rules are approved for an event, this chapter and any applicable Minnesota Rules, except of those incorporating the Unified Rules of Kickboxing and Unified Rules of Muay Thai, must govern if there is a conflict between the rules and Minnesota law.new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 341.28, subdivision 5, is amended to read:

Subd. 5.

Regulatory authority; martial arts and amateur boxing.

(a) Unless this chapter specifically states otherwise, contests or exhibitions for martial arts and amateur boxing are exempt from the requirements of this chapter and officials at these events are not required to be licensed under this chapter.

(b) Martial arts and amateur boxing contests, unless subject to the exceptions set forth in subdivision 6new text begin or 7new text end , must be regulated by a nationally recognized organization approved by the commissioner. The organization must have a set of written standards, procedures, or rules used to sanction the combative sports it oversees.

(c) Any regulatory body overseeing a martial arts or amateur boxing event must submit bout results to the commissioner within 72 hours after the event. If the regulatory body issues suspensions, the regulatory body must submit to the commissioner a list of any suspensions resulting from the event within 72 hours after the event. Regulatory bodies that oversee combative sports or martial arts contests under subdivision 6new text begin or 7new text end are not subject to this paragraph.

Sec. 3.

Minnesota Statutes 2022, section 341.28, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Regulatory authority; youth competition. new text end

new text begin Combative sports or martial arts contests between individuals under the age of 18 years are exempt from the requirements of this chapter and officials at these events are not required to be licensed under this chapter. A contest under this subdivision must be regulated by (1) a widely recognized organization that regularly oversees youth competition, or (2) a local government. new text end

Sec. 4.

Minnesota Statutes 2022, section 341.29, is amended to read:

341.29 JURISDICTION OF COMMISSIONER.

The commissioner shall:

(1) have sole direction, supervision, regulation, control, and jurisdiction over all combative sport contests that are held within this state unless a contest is exempt from the application of this chapter under federal law;

(2) have sole control, authority, and jurisdiction over all licenses required by this chapter;

(3) grant a license to an applicant if, in the judgment of the commissioner, the financial responsibility, experience, character, and general fitness of the applicant are consistent with the public interestdeleted text begin , convenience, or necessitydeleted text end andnew text begin innew text end the best interests of combative sports and conforms with this chapter and the commissioner's rules;

(4) deny, suspend, or revoke a license using the enforcement provisions of section 326B.082, except that the licensing reapplication time frames remain within the sole discretion of the commissioner; and

(5) serve final nonlicensing orders in performing the duties of this chapter which are subject to the contested case procedures provided in sections 14.57 to 14.69.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 341.30, subdivision 4, is amended to read:

Subd. 4.

Prelicensure requirements.

(a) Before the commissioner issues a promoter's license to an individual, corporation, or other business entity, the applicant shall complete a licensing application on the Office of Combative Sports website or on forms prescribed by the commissioner and shall:

(1) show on the licensing application the owner or owners of the applicant entity and the percentage of interest held by each owner holding a 25 percent or more interest in the applicant;

(2) provide the commissioner with a copy of the latest financial statement of the applicant;

(3) provide proof, where applicable, of authorization to do business in the state of Minnesota; and

(4) deposit with the commissioner a surety bond in an amount set by the commissioner, which must not be less than $10,000. The bond shall be executed in favor of this state and shall be conditioned on the faithful performance by the promoter of the promoter's obligations under this chapter and the rules adopted under it.

(b) Before the commissioner issues a license to a combatant, the applicant shall:

(1) submit to the commissioner the results of current medical examinations on forms prescribed by the commissioner that state that the combatant is cleared to participate in a combative sport contest. The applicant must undergo and submit the results of the following medical examinations, which do not exempt a combatant from the requirements in section 341.33:

(i) a physical examination performed by a licensed medical doctor, doctor of osteopathic medicine, advance practice nurse practitioner, or a physician assistant. Physical examinations are valid for one year from the date of the exam;

(ii) an ophthalmological examination performed by an ophthalmologist or optometrist that includes dilation designed to detect any retinal defects or other damage or a condition of the eye that could be aggravated by combative sports. Ophthalmological examinations are valid for one year from the date of the exam;

(iii) blood work results for HBsAg (Hepatitis B surface antigen), HCV (Hepatitis C antibody), and HIV. Blood work results are good for one year from the date blood was drawn. The commissioner shall not issue a license to an applicant submitting positive test results for HBsAg, HCV, or HIV; and

(iv) other appropriate neurological or physical examinations before any contest, if the commissioner determines that the examination is desirable to protect the health of the combatant;

(2) complete a licensing application on the Office of Combative Sports website or on forms prescribed by the commissioner; and

(3) provide proof that the applicant is 18 years of age. Acceptable proof is a photo driver's license, state photo identification card, passport, or birth certificate combined with additional photo identification.

new text begin (c) Before the commissioner issues an amateur combatant license to an individual, the applicant must submit proof of qualifications that includes at a minimum: (1) an applicant's prior bout history and evidence showing that the applicant has completed at least six months of training in a combative sport; or (2) a letter of recommendation from a coach or trainer. new text end

new text begin (d) Before the commissioner issues a professional combatant license to an individual, the applicant must submit proof of qualifications that includes an applicant's prior bout history showing the applicant has competed in at least four sanctioned combative sports contests. If the applicant has not competed in at least four sanctioned combative sports contests, the commissioner may still grant the applicant a license if the applicant provides evidence demonstrating that the applicant has sufficient skills and experience in combative sports or martial arts to compete as a professional combatant. new text end

deleted text begin (c)deleted text end new text begin (e)new text end Before the commissioner issues a license to a referee, judge, or timekeeper, the applicant must submit proof of qualifications that may include certified training from the Association of Boxing Commissions, licensure with other regulatory bodies, professional references, or a log of bouts worked.

deleted text begin (d)deleted text end new text begin (f)new text end Before the commissioner issues a license to a ringside physician, the applicant must submit proof that they are licensed to practice medicine in the state of Minnesota and in good standing.

Sec. 6.

Minnesota Statutes 2023 Supplement, section 341.321, is amended to read:

341.321 FEE SCHEDULE.

(a) The fee schedule for professional and amateur licenses issued by the commissioner is as follows:

(1) referees, $25;

(2) promoters, $700;

(3) judges and knockdown judges, $25;

(4) trainers and seconds, $40;

(5) timekeepers, $25;

(6) professional combatants, $70;

(7) amateur combatants, $35; and

(8) ringside physicians, $25.

All license fees shall be paid no later than the weigh-in prior to the contest. No license may be issued until all prelicensure requirements in section 341.30 are satisfied and fees are paid.

(b) A promoter or event organizer of an event regulated by the Department of Labor and Industry must pay, per event, a combative sport contest fee deleted text begin ofdeleted text end new text begin .new text end

new text begin (c) If the promoter sells tickets for the event, the event fee isnew text end $1,500 deleted text begin per eventdeleted text end or four percent of the gross ticket sales, whichever is greater. The fee must be paid as follows:

(1) $500 at the time the combative sport contest is schedulednew text begin , which is nonrefundablenew text end ;

(2) $1,000 at the weigh-in prior to the contest;

(3) if four percent of the gross ticket sales is greater than $1,500, the balance is due to the commissioner within 14 days of the completed contest; and

(4) the value of all complimentary tickets distributed for an event, to the extent they exceed five percent of total event attendance, counts toward gross tickets sales for the purposes of determining a combative sports contest fee. For purposes of this clause, the lowest advertised ticket price shall be used to calculate the value of complimentary tickets.

new text begin (d) If the promoter does not sell tickets and receives only a flat payment from a venue to administer the event, the event fee is $1,500 per event or four percent of the flat payment, whichever is greater. The fee must be paid as follows: new text end

new text begin (1) $500 at the time the combative sport contest is scheduled, which is nonrefundable; new text end

new text begin (2) $1,000 at the weigh-in prior to the contest; and new text end

new text begin (3) if four percent of the flat payment is greater than $1,500, the balance is due to the commissioner within 14 days of the completed contest. new text end

deleted text begin (c)deleted text end new text begin (e)new text end All fees and penalties collected by the commissioner must be deposited in the commissioner account in the special revenue fund.

Sec. 7.

Minnesota Statutes 2023 Supplement, section 341.33, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Medical records. new text end

new text begin The commissioner may, if the commissioner determines that doing so would be desirable to protect the health of a combatant, provide the combatant's medical information collected under this chapter to the physician conducting a prebout exam under this section or to the ringside physician or physicians assigned to the combatant's combative sports contest. new text end

Sec. 8.

new text begin [341.352] DATA PRIVACY. new text end

new text begin All health records collected, created, or maintained under this chapter are private data on individuals, as defined in section 13.02, subdivision 12. new text end

Sec. 9.

Minnesota Statutes 2023 Supplement, section 341.355, is amended to read:

341.355 CIVIL PENALTIES.

When the commissioner finds that a person has violated one or more provisions of any statute, rule, or order that the commissioner is empowered to regulate, enforce, or issue, the commissioner may impose, for each violation, a civil penalty of up to $10,000 for each violation, or a civil penalty that deprives the person of any economic advantage gained by the violation, or both. The commissioner may also impose these penalties against a person who has violated section 341.28, subdivision 5, paragraph (b) or (c)new text begin , or subdivision 7new text end .

ARTICLE 6

CONSTRUCTION CODES AND LICENSING

Section 1.

Minnesota Statutes 2023 Supplement, section 326B.106, subdivision 1, is amended to read:

Subdivision 1.

Adoption of code.

(a) Subject to paragraphs (c) and (d) and sections 326B.101 to 326B.194, the commissioner shall by rule and in consultation with the Construction Codes Advisory Council establish a code of standards for the construction, reconstruction, alteration, and repair of buildings, governing matters of structural materials, design and construction, fire protection, health, sanitation, and safety, including design and construction standards regarding heat loss control, illumination, and climate control. The code must also include duties and responsibilities for code administration, including procedures for administrative action, penalties, and suspension and revocation of certification. The code must conform insofar as practicable to model building codes generally accepted and in use throughout the United States, including a code for building conservation. In the preparation of the code, consideration must be given to the existing statewide specialty codes presently in use in the state. Model codes with necessary modifications and statewide specialty codes may be adopted by reference. The code must be based on the application of scientific principles, approved tests, and professional judgment. To the extent possible, the code must be adopted in terms of desired results instead of the means of achieving those results, avoiding wherever possible the incorporation of specifications of particular methods or materials. To that end the code must encourage the use of new methods and new materials. Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall administer and enforce the provisions of those sections.

(b) The commissioner shall develop rules addressing the plan review fee assessed to similar buildings without significant modifications including provisions for use of building systems as specified in the industrial/modular program specified in section 326B.194. Additional plan review fees associated with similar plans must be based on costs commensurate with the direct and indirect costs of the service.

(c) Beginning with the 2018 edition of the model building codes and every six years thereafter, the commissioner shall review the new model building codes and adopt the model codes as amended for use in Minnesota, within two years of the published edition date. The commissioner may adopt amendments to the building codes prior to the adoption of the new building codes to advance construction methods, technology, or materials, or, where necessary to protect the health, safety, and welfare of the public, or to improve the efficiency or the use of a building.

(d) Notwithstanding paragraph (c), the commissioner shall act on each new model residential energy code and the new model commercial energy code in accordance with federal law for which the United States Department of Energy has issued an affirmative determination in compliance with United States Code, title 42, section 6833. The commissioner may adopt amendments prior to adoption of the new energy codes, as amended for use in Minnesota, to advance construction methods, technology, or materials, or, where necessary to protect the health, safety, and welfare of the public, or to improve the efficiency or use of a building.

(e) Beginning in 2024, the commissioner shall act on the new model commercial energy code by adopting each new published edition of ASHRAE 90.1 or a more efficient standard. The commercial energy code in effect in 2036 and thereafter must achieve an 80 percent reduction in annual net energy consumption or greater, using the ASHRAE 90.1-2004 as a baseline. The commissioner shall adopt commercial energy codes from 2024 to 2036 that incrementally move toward achieving the 80 percent reduction in annual net energy consumption. By January 15 of the year following each new code adoption, the commissioner shall make a report on progress under this section to the legislative committees with jurisdiction over the energy code.

(f) Nothing in this section shall be interpreted to limit the ability of a public utility to offer code support programs, or to claim energy savings resulting from such programs, through its energy conservation and optimization plans approved by the commissioner of commerce under section 216B.241 or an energy conservation and optimization plan filed by a consumer-owned utility under section 216B.2403.

new text begin (g) Beginning in 2026, the commissioner shall act on the new model residential energy code by adopting each new published edition of the International Energy Conservation Code or a more efficient standard. The residential energy code in effect in 2038 and thereafter must achieve a 70 percent reduction in annual net energy consumption or greater, using the 2006 International Energy Conservation Code State Level Residential Codes Energy Use Index for Minnesota, as published by the United States Department of Energy's Building Energy Codes Program, as a baseline. The commissioner shall adopt residential energy codes from 2026 to 2038 that incrementally move toward achieving the 70 percent reduction in annual net energy consumption. By January 15 of the year following each new code adoption, the commissioner shall submit a report on progress under this section to the legislative committees with jurisdiction over the energy code. new text end

Sec. 2.

Minnesota Statutes 2022, section 326B.89, subdivision 5, is amended to read:

Subd. 5.

Payment limitations.

The commissioner shall not pay compensation from the fund to an owner or a lessee in an amount greater than deleted text begin $75,000deleted text end new text begin $100,000new text end per licensee. The commissioner shall not pay compensation from the fund to owners and lessees in an amount that totals more than $550,000 per licensee. The commissioner shall only pay compensation from the fund for a final judgment that is based on a contract directly between the licensee and the homeowner or lessee that was entered into prior to the cause of action and that requires licensure as a residential building contractor or residential remodeler.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

ARTICLE 7

BUREAU OF MEDIATION SERVICES

Section 1.

Minnesota Statutes 2022, section 626.892, subdivision 10, is amended to read:

Subd. 10.

Training.

(a) A person appointed to the arbitrator roster under this section must complete training as required by the commissioner during the person's appointment. At a minimum, an initial training must include:

(1) at least six hours on the topics of cultural competency, racism, implicit bias, and recognizing and valuing community diversity and cultural differences; and

(2) at least six hours on topics related to the daily experience of peace officers, which may include ride-alongs with on-duty officers or other activities that provide exposure to the environments, choices, and judgments required of officers in the field.

new text begin (b) new text end The commissioner may adopt rules establishing training requirements consistent with this subdivision.

deleted text begin (b) An arbitrator appointed to the roster of arbitrators in 2020 must complete the required initial training by July 1, 2021.deleted text end new text begin (c)new text end An arbitrator appointed to the roster of arbitrators after 2020 must complete the required initial training within six months of the arbitrator's appointment.

deleted text begin (c)deleted text end new text begin (d) The Bureau of Mediation Services must pay fornew text end all costs associated with the required training deleted text begin must be borne by the arbitratordeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 2.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 179.81; 179.82; 179.83, subdivision 1; 179.84, subdivision 1; and 179.85, new text end new text begin are repealed. new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 5520.0100; 5520.0110; 5520.0120, subparts 1, 2, 3, 4, 5, 6, and 7; 5520.0200; 5520.0250, subparts 1, 2, and 4; 5520.0300; 5520.0500, subparts 1, 2, 3, 4, 5, and 6; 5520.0520; 5520.0540; 5520.0560; 5520.0600; 5520.0620; 5520.0700; 5520.0710; and 5520.0800, new text end new text begin are repealed. new text end

ARTICLE 8

PUBLIC EMPLOYEE LABOR RELATIONS (PELRA)

Section 1.

Minnesota Statutes 2023 Supplement, section 13.43, subdivision 6, is amended to read:

Subd. 6.

Access by labor organizations, Bureau of Mediation Services, Public Employment Relations Board.

(a) new text begin Notwithstanding classification by any other provision of this chapter upon request from an exclusive representative,new text end personnel data must be disseminated to labor organizations and the Public Employment Relations Board to the extent necessary to conduct elections, investigate and process grievances, and implement the provisions of chapters 179 and 179A.

new text begin (b)new text end Personnel data shall be disseminated to labor organizations, the Public Employment Relations Board, and the Bureau of Mediation Services to the extent the dissemination is ordered or authorized by the commissioner of the Bureau of Mediation Services or the Public Employment Relations Board or its employees or agents. Employee Social Security numbers are not necessary to implement the provisions of chapters 179 and 179A.

deleted text begin (b)deleted text end new text begin (c)new text end Personnel data described under section 179A.07, subdivision 8, must be disseminated to an exclusive representative under the terms of that subdivision.

deleted text begin (c)deleted text end new text begin (d)new text end An employer who disseminates personnel data to a labor organization pursuant to this subdivision shall not be subject to liability under section 13.08. Nothing in this paragraph shall impair or limit any remedies available under section 325E.61.

deleted text begin (d)deleted text end new text begin (e)new text end The home addresses, nonemployer issued phone numbers and email addresses, dates of birth, and emails or other communications between exclusive representatives and their members, prospective members, and nonmembers are private data on individuals.

Sec. 2.

Minnesota Statutes 2023 Supplement, section 179A.03, subdivision 14, is amended to read:

Subd. 14.

Public employee or employee.

(a) "Public employee" or "employee" means any person appointed or employed by a public employer except:

(1) elected public officials;

(2) election officers;

(3) commissioned or enlisted personnel of the Minnesota National Guard;

(4) emergency employees who are employed for emergency work caused by natural disaster;

(5) part-time employees whose service does not exceed the lesser of 14 hours per week or 35 percent of the normal work week in the employee's appropriate unit;

(6) employeesnew text begin , other than those working in a school as a paraprofessional or other noninstructional position,new text end whose positions are deleted text begin basicallydeleted text end temporary or seasonal in character anddeleted text begin : (i)deleted text end are not for more than 67 working days in any calendar yeardeleted text begin ; (ii) are not working for a Minnesota school district or charter school; or (iii) are not for more than 100 working days in any calendar year and the employees aredeleted text end new text begin .new text end

new text begin (7) full-time studentsnew text end under the age of 22, deleted text begin are full-time studentsdeleted text end enrolled in a nonprofit or public educational institution prior to being hired by the employernew text begin , excluding employment by the Board of Regents of the University of Minnesota, whose positions are temporary or seasonal in character and are not for more than 100 working days in any calendar yearnew text end , andnew text begin whonew text end have indicated, either in an application for employment or by being enrolled at an educational institution for the next academic year or term, an intention to continue as students during or after their temporary employment;

deleted text begin (7)deleted text end new text begin (8)new text end employees providing services for not more than two consecutive quarters to the Board of Trustees of the Minnesota State Colleges and Universities under the terms of a professional or technical services contract as defined in section 16C.08, subdivision 1;

deleted text begin (8)deleted text end new text begin (9)new text end employees of charitable hospitals as defined by section 179.35, subdivision 3, except that employees of charitable hospitals as defined by section 179.35, subdivision 3, are public employees for purposes of sections 179A.051, 179A.052, and 179A.13;

deleted text begin (9)deleted text end new text begin (10)new text end full-time undergraduate students employed by the schoolnew text begin , excluding employment by the Board of Regents of the University of Minnesota,new text end which they attend under a work-study program or in connection with the receipt of financial aid, irrespective of number of hours of service per week;

deleted text begin (10)deleted text end new text begin (11)new text end an individual who is employed for less than 300 hours in a fiscal year as an instructor in an adult vocational education program;

deleted text begin (11)deleted text end new text begin (12)new text end with respect to court employees:

(i) personal secretaries to judges;

(ii) law clerks;

(iii) managerial employees;

(iv) confidential employees; and

(v) supervisory employees; or

deleted text begin (12)deleted text end new text begin (13)new text end with respect to employees of Hennepin Healthcare System, Inc., managerial, supervisory, and confidential employees.

(b) The following individuals are public employees regardless of the exclusions of paragraph (a), clauses (5) to deleted text begin (7)deleted text end new text begin (8) and (10)new text end :

(1) an employee hired by a school district or the Board of Trustees of the Minnesota State Colleges and Universities except at the university established in the Twin Cities metropolitan area under section 136F.10 or for community services or community education instruction offered on a noncredit basis: (i) to replace an absent teacher or faculty member who is a public employee, where the replacement employee is employed more than 30 working days as a replacement for that teacher or faculty member; or (ii) to take a teaching position created due to increased enrollment, curriculum expansion, courses which are a part of the curriculum whether offered annually or not, or other appropriate reasons;

(2) an employee hired for a position under paragraph (a), clause (6), deleted text begin item (i),deleted text end if that same position has already been filled under paragraph (a), clause (6), deleted text begin item (i),deleted text end in the same calendar year and the cumulative number of days worked in that same position by all employees exceeds 67 calendar days in that year. For the purpose of this paragraph, "same position" includes a substantially equivalent position if it is not the same position solely due to a change in the classification or title of the position;

(3) an early childhood family education teacher employed by a school district; deleted text begin anddeleted text end

(4) an individual hired by the Board of Trustees of the Minnesota State Colleges and Universitiesnew text begin or the University of Minnesotanew text end as the instructor of record to teach (i) one class for more than three credits in a fiscal year, or (ii) two or more credit-bearing classes in a fiscal yeardeleted text begin .deleted text end new text begin ; andnew text end

new text begin (5) an individual who: (i) is paid by the Board of Regents of the University of Minnesota for work performed at the direction of the university or any of its employees or contractors; and (ii) is enrolled in three or more university credit-bearing classes or one semester as a full-time student or postdoctoral fellow during the fiscal year in which the work is performed. For purposes of this section, work paid by the university includes but is not limited to work that is required as a condition of receiving a stipend or tuition benefit, whether or not the individual also receives educational benefit from performing that work. Individuals who perform supervisory functions in regard to any individuals who are employees under this clause are not considered supervisory employees for the purpose of section 179A.06, subdivision 2. new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 179A.03, subdivision 18, is amended to read:

Subd. 18.

Teacher.

"Teacher" means any public employee other than a superintendent or assistant superintendent, principal, assistant principal, or a supervisory or confidential employee, employed by a school district:

(1) in a position for which the person must be licensed by the Professional Educator Licensing and Standards Board or the commissioner of education;

(2) in a position as a physical therapist, occupational therapist, art therapist, music therapist, or audiologist; or

(3) in a position creating and delivering instruction to children in a preschool, school readiness, school readiness plus, or prekindergarten program or other school district or charter school-based early education program, except that deleted text begin an employeedeleted text end new text begin employeesnew text end in a bargaining unit certified before January 1, 2023, may remain in a bargaining unit that does not include teachers unless an exclusive representative files a petition for a unit clarification new text begin on the status of a preschool, school readiness, school readiness plus, or prekindergarten program or other school district or charter school-based early education program positionnew text end deleted text begin or to transfer exclusive representative statusdeleted text end .

Sec. 4.

Minnesota Statutes 2022, section 179A.041, subdivision 2, is amended to read:

Subd. 2.

Alternate members.

(a) The appointing authorities shall appoint alternate members to serve deleted text begin onlydeleted text end in the deleted text begin casedeleted text end new text begin eventnew text end of a member having a conflict of interestnew text begin or being unavailable for a meetingnew text end under subdivision 9, as follows:

(1) one alternate, appointed by the governor, who is an officer or employee of an exclusive representative of public employees, to serve as an alternate to the member appointed by the governor who is an officer or employee of an exclusive representative of public employees. This alternate must not be an officer or employee of the same exclusive representative of public employees as the member for whom the alternate serves;

(2) one alternate, appointed by the governor, who is a representative of public employers, to serve as an alternate to the member appointed by the governor who is a representative of public employers. This alternate must not represent the same public employer as the member for whom the alternate serves; and

(3) one alternate, appointed by the member who is an officer or employee of an exclusive representative of public employees and the member who is a representative of public employers, who is not an officer or employee of an exclusive representative of public employees, or a representative of a public employer, to serve as an alternate for the member that represents the public at large.

(b) Each alternate member shall serve a term that is coterminous with the term of the member for whom the alternate member serves as an alternate.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 179A.041, subdivision 10, is amended to read:

Subd. 10.

Open Meeting Law; exceptions.

Chapter 13D does not apply to deleted text begin meetings of thedeleted text end new text begin anew text end board new text begin meeting new text end when deleted text begin itdeleted text end new text begin the board new text end isnew text begin :new text end

new text begin (1)new text end deliberating on the merits of new text begin an new text end unfair labor practice deleted text begin chargesdeleted text end new text begin chargenew text end under sections 179.11, 179.12, and 179A.13;

new text begin (2)new text end reviewing a new text begin hearing officer's new text end recommended decision and order deleted text begin of a hearing officerdeleted text end under section 179A.13; or

new text begin (3)new text end reviewing deleted text begin decisions of thedeleted text end new text begin anew text end commissioner deleted text begin of the Bureau of Mediation Services relating todeleted text end new text begin decision on an new text end unfair labor deleted text begin practicesdeleted text end new text begin practicenew text end under section 179A.12, subdivision 11.

Sec. 6.

Minnesota Statutes 2023 Supplement, section 179A.06, subdivision 6, is amended to read:

Subd. 6.

Payroll deduction, authorization, and remittance.

(a) deleted text begin Public employees have the right todeleted text end new text begin A public employee maynew text end request deleted text begin and be alloweddeleted text end payroll deduction for the exclusive representative new text begin that represents the employee's positionnew text end and deleted text begin thedeleted text end new text begin its associatednew text end political fund deleted text begin associated with the exclusive representative and registered pursuant todeleted text end new text begin undernew text end section 10A.12. new text begin If no exclusive representative represents an employee's position, the public employee may request payroll deduction for the organization of the employee's choice. A public employer must provide payroll deduction according to any public employee's request under this paragraph.new text end

new text begin (b) new text end A public employer must rely on a certification from deleted text begin anydeleted text end new text begin annew text end exclusive representative requesting remittance of a deduction that the organization has and will maintain an authorizationdeleted text begin ,deleted text end signednew text begin , either by hand or electronically according to section 325L.02, paragraph (h),new text end by the public employee from whose salary or wages the deduction is to be madedeleted text begin , which may include an electronic signature by the public employee as defined in section 325L.02, paragraph (h)deleted text end . An exclusive representative making deleted text begin suchdeleted text end new text begin anew text end certification deleted text begin must not bedeleted text end new text begin is notnew text end required to provide the public employer a copy of the authorization unless a dispute arises about the new text begin authorization's new text end existence or terms deleted text begin of the authorizationdeleted text end . deleted text begin The exclusive representative must indemnify the public employer for any successful claims made by the employee for unauthorized deductions in reliance on the certification.deleted text end

deleted text begin (b)deleted text end new text begin (c)new text end A deleted text begin duesdeleted text end new text begin payroll new text end deduction authorization deleted text begin remains in effectdeleted text end new text begin is effectivenew text end until thenew text begin exclusive representative notifies thenew text end employer deleted text begin receives notice from the exclusive representativedeleted text end that a public employee has changed or canceled deleted text begin theirdeleted text end new text begin the employee'snew text end authorization in writing in accordance with the terms of the original deleted text begin authorizing document, anddeleted text end new text begin authorization. When determining whether deductions have been properly changed or canceled,new text end a public employer must rely on information from the exclusive representative receiving remittance of the deduction deleted text begin regarding whether the deductions have been properly changed or canceled. The exclusive representative must indemnify the public employer, including any reasonable attorney fees and litigation costs, for any successful claims made by the employee for unauthorized deductions made in reliance on such informationdeleted text end .

deleted text begin (c)deleted text end new text begin (d)new text end Deduction authorization under this section isnew text begin :new text end

new text begin (1)new text end independent from the public employee's membership status in the organization to which payment is remittednew text begin ;new text end and deleted text begin isdeleted text end

new text begin (2)new text end effective regardless of whether a collective bargaining agreement authorizes the deduction.

deleted text begin (d) Employersdeleted text end new text begin (e) An employernew text end must deleted text begin commencedeleted text end new text begin :new text end

new text begin (1) beginnew text end deductions within 30 days deleted text begin of notice of authorization from thedeleted text end new text begin after annew text end exclusive representative new text begin submits a certification under paragraph (b); new text end and deleted text begin mustdeleted text end

new text begin (2)new text end remit the deductions to the exclusive representative within 30 days of the deduction. deleted text begin The failure of an employer to comply with the provisions of this paragraph shall be an unfair labor practice under section 179A.13, the relief for which shall be reimbursement by the employer of deductions that should have been made or remitted based on a valid authorization given by the employee or employees.deleted text end

deleted text begin (e) In the absence of an exclusive representative, public employees have the right to request and be allowed payroll deduction for the organization of their choice. deleted text end

new text begin (f) An exclusive representative must indemnify a public employer: new text end

new text begin (1) for any successful employee claim for unauthorized employer deductions made by relying on an exclusive representative's certification under paragraph (b); and new text end

new text begin (2) for any successful employee claim for unauthorized employer deductions made by relying on information for changing or canceling deductions under paragraph (c), with indemnification including any reasonable attorney fees and litigation costs. new text end

deleted text begin (f)deleted text end new text begin (g)new text end Any dispute under this subdivision must be resolved through an unfair labor practice proceeding under section 179A.13.new text begin It is an unfair labor practice if an employer fails to comply with paragraph (e), and the employer must reimburse deductions that should have been made or remitted based on a valid authorization given by the employee or employees.new text end

Sec. 7.

Minnesota Statutes 2023 Supplement, section 179A.07, subdivision 8, is amended to read:

Subd. 8.

Bargaining unit information.

(a) Within 20 calendar days deleted text begin from the date of hire ofdeleted text end new text begin afternew text end a bargaining unit employeenew text begin is hirednew text end , a public employer must provide the following deleted text begin contactdeleted text end information new text begin on the employee new text end to deleted text begin andeleted text end new text begin the unit'snew text end exclusive representative new text begin or its affiliatenew text end in an Excel file format or other format agreed to by the exclusive representative:

new text begin (1)new text end name;

new text begin (2)new text end job title;

new text begin (3)new text end worksite location, including location deleted text begin withindeleted text end new text begin innew text end a facility when appropriate;

new text begin (4)new text end home address;

new text begin (5)new text end work telephone number;

new text begin (6)new text end home and personal cell phone numbers on file with the public employer;

new text begin (7)new text end date of hire; and

new text begin (8)new text end work email address and personal email address on file with the public employer.

(b) Every 120 calendar days deleted text begin beginning on January 1, 2024deleted text end , a public employer must provide to deleted text begin andeleted text end new text begin a bargaining unit'snew text end exclusive representative in an Excel file or similar format agreed to by the exclusive representative the deleted text begin followingdeleted text end informationnew text begin under paragraph (a)new text end for all bargaining unit employeesdeleted text begin : name; job title; worksite location, including location within a facility when appropriate; home address; work telephone number; home and personal cell phone numbers on file with the public employer; date of hire; and work email address and personal email address on file with the public employerdeleted text end .

(c) deleted text begin A public employer must notify an exclusive representative within 20 calendar days of the separation ofdeleted text end new text begin If a bargaining unit employee separates fromnew text end employment or deleted text begin transferdeleted text end new text begin transfersnew text end out of deleted text begin the bargaining unit ofdeleted text end a bargaining unit deleted text begin employeedeleted text end new text begin , the employee's public employer must notify the employee's exclusive representative within 20 calendar days after the separation or transfer, including whether the unit departure was due to a transfer, promotion, demotion, discharge, resignation, or retirementnew text end .

Sec. 8.

Minnesota Statutes 2023 Supplement, section 179A.07, subdivision 9, is amended to read:

Subd. 9.

Access.

(a) A public employer must allow an exclusive representativenew text begin or the representative's agentnew text end to meet in person withnew text begin anew text end newly hired deleted text begin employees, without charge to the pay or leave time of the employees, for 30 minutes,deleted text end new text begin employeenew text end within 30 calendar days from the date of hiredeleted text begin ,deleted text end during new employee orientations or, if the employer does not conduct new employee orientations, at individual or group meetingsnew text begin arranged by the employer in coordination with the exclusive representative or the representative's agent during the newly hired employees' regular working hours. For an orientation or meeting under this paragraph, an employer must allow the employee and exclusive representative up to 30 minutes to meet and must not charge the employee's pay or leave time during the orientation or meeting, or the pay or leave time of an employee of the public employer acting as an agent of the exclusive representative using time off under subdivision 6. An orientation or meeting may be held virtually or for longer than 30 minutes only by mutual agreement of the employer and exclusive representativenew text end .

new text begin (b)new text end An exclusive representative deleted text begin shalldeleted text end new text begin mustnew text end receive deleted text begin no less thandeleted text end new text begin at leastnew text end ten days' notice deleted text begin in advancedeleted text end of an orientation, deleted text begin except thatdeleted text end new text begin butnew text end a shorter notice may be provided deleted text begin wheredeleted text end new text begin ifnew text end there is an urgent need critical to thenew text begin employer'snew text end operations deleted text begin of the public employerdeleted text end that was not reasonably foreseeable. Notice of and attendance at new employee orientations and other meetings under this paragraph deleted text begin must bedeleted text end new text begin and paragraph (a) arenew text end limited to deleted text begin the public employer,deleted text end new text begin :new text end

new text begin (1)new text end the employeesdeleted text begin ,deleted text end new text begin ;new text end

new text begin (2)new text end the exclusive representativedeleted text begin , anddeleted text end new text begin ;new text end

new text begin (3)new text end any vendor contracted to provide a service for deleted text begin purposes ofdeleted text end the meetingdeleted text begin . Meetings may be held virtually or for longer than 30 minutesdeleted text end new text begin ; andnew text end

new text begin (4) the public employer or its designee, who may attendnew text end only by mutual agreement of the public employer and exclusive representative.

deleted text begin (b)deleted text end new text begin (c)new text end A public employer must allow an exclusive representative to communicate with bargaining unit members deleted text begin using their employer-issued email addresses regardingdeleted text end new text begin by email on:new text end

new text begin (1)new text end collective bargainingdeleted text begin ,deleted text end new text begin ;new text end

new text begin (2)new text end the administration of collective bargaining agreementsdeleted text begin ,deleted text end new text begin ;new text end

new text begin (3)new text end the investigation of grievancesdeleted text begin ,deleted text end new text begin andnew text end other workplace-related complaints and issuesdeleted text begin ,deleted text end new text begin ;new text end and

new text begin (4)new text end internal matters involving the governance or business of the exclusive representativedeleted text begin , consistent with the employer's generally applicable technology use policiesdeleted text end .

new text begin (d) An exclusive representative may communicate with bargaining unit members under paragraph (c) via the members' employer-issued email addresses, but the communication must be consistent with the employer's generally applicable technology use policies. new text end

deleted text begin (c)deleted text end new text begin (e)new text end A public employer must allow an exclusive representative to meet with bargaining unit members in facilities owned or leased by the public employer deleted text begin regardingdeleted text end new text begin to communicate on:new text end

new text begin (1)new text end collective bargainingdeleted text begin ,deleted text end new text begin ;new text end

new text begin (2)new text end the administration of collective bargaining agreementsdeleted text begin ,deleted text end new text begin ;new text end

new text begin (3) the investigation ofnew text end grievances and other workplace-related complaints and issuesdeleted text begin ,deleted text end new text begin ;new text end and

new text begin (4)new text end internal matters involving the governance or business of the exclusive representativedeleted text begin , provided the use does not interfere with governmental operations and the exclusive representative complies with worksite security protocols established by the public employer. Meetings conducteddeleted text end new text begin .new text end

new text begin (f) The following applies for a meeting under paragraph (e): new text end

new text begin (1) a meeting cannot interfere with government operations; new text end

new text begin (2) the exclusive representative must comply with employer-established worksite security protocols; new text end

new text begin (3) a meetingnew text end innew text begin anew text end government deleted text begin buildings pursuant to this paragraph must notdeleted text end new text begin building cannotnew text end be for deleted text begin the purpose ofdeleted text end supporting or opposing any candidate for partisan political office or for deleted text begin the purpose ofdeleted text end distributing literature or information deleted text begin regardingdeleted text end new text begin onnew text end partisan electionsdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (4)new text end an exclusive representative conducting a meeting in a government building or other government facility deleted text begin pursuant to this subdivisiondeleted text end may be charged for maintenance, security, and other costs related to deleted text begin the use ofdeleted text end new text begin usingnew text end the government building or facility that would not otherwise be incurred by the government entity.

Sec. 9.

Minnesota Statutes 2022, section 179A.09, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Unit mergers. new text end

new text begin At any time upon the request of an exclusive representative for bargaining units other than those defined in section 179A.10, subdivision 2, the commissioner must designate as a single unit two or more bargaining units represented by the exclusive representative, subject to subdivision 2 as well as any other statutory bargaining unit designation. new text end

Sec. 10.

Minnesota Statutes 2022, section 179A.09, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Position classifications. new text end

new text begin For the purpose of determining whether a new position should be included in an existing bargaining unit, the position shall be analyzed with respect to its assigned duties, without regard to title or telework status. new text end

Sec. 11.

Minnesota Statutes 2023 Supplement, section 179A.10, subdivision 2, is amended to read:

Subd. 2.

State employees.

(a) Unclassified employees, unless otherwise excluded, are included within the units deleted text begin whichdeleted text end new text begin thatnew text end include the classifications to which they are assigned for purposes of compensation. Supervisory employees deleted text begin shall onlydeleted text end new text begin cannew text end be assigned new text begin only new text end to deleted text begin unitsdeleted text end new text begin unitnew text end 12 deleted text begin anddeleted text end new text begin ornew text end 16. The following new text begin units new text end are the appropriate units of executive branch state employees:

(1) law enforcement unit;

(2) craft, maintenance, and labor unit;

(3) service unit;

(4) health care nonprofessional unit;

(5) health care professional unit;

(6) clerical and office unit;

(7) technical unit;

(8) correctional guards unit;

(9) state university instructional unit;

(10) state college instructional unit;

(11) state university administrative unit;

(12) professional engineering unit;

(13) health treatment unit;

(14) general professional unit;

(15) professional state residential instructional unit;

(16) supervisory employees unit;

(17) public safety radio communications operator unit;

(18) licensed peace officer special unit; and

(19) licensed peace officer leader unit.

deleted text begin Each unit consists of the classifications or positions assigned to it in the schedule of state employee job classification and positions maintained by the commissioner. The commissioner may only make changes in the schedule in existence on the day prior to August 1, 1984, as required by law or as provided in subdivision 4. deleted text end

(b) The following positions are included in the licensed peace officer special unit:

(1) State Patrol lieutenant;

(2) NR district supervisor - enforcement;

(3) assistant special agent in charge;

(4) corrections investigation assistant director 2;

(5) corrections investigation supervisor; and

(6) commerce supervisor special agent.

(c) The following positions are included in the licensed peace officer leader unit:

(1) State Patrol captain;

(2) NR program manager 2 enforcement; and

(3) special agent in charge.

new text begin (d) Each unit consists of the classifications or positions assigned to it in the schedule of state employee job classification and positions maintained by the commissioner. The commissioner may make changes in the schedule in existence on the day before August 1, 1984, only: new text end

new text begin (1) as required by law; or new text end

new text begin (2) as provided in subdivision 4. new text end

Sec. 12.

Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 2a, is amended to read:

Subd. 2a.

Majority verification procedure.

(a) deleted text begin Notwithstanding any other provision of this section,deleted text end An employee organization may file a petition with the commissioner requesting certification as the exclusive representative of deleted text begin andeleted text end new text begin a proposednew text end appropriate unit deleted text begin based on a verification thatdeleted text end new text begin for which there is no currently certified exclusive representative. The petition must includenew text end over 50 percent of the employees in the proposed appropriate unit new text begin whonew text end wish to be represented by the deleted text begin petitionerdeleted text end new text begin organizationnew text end . deleted text begin The commissioner shall require dated representation authorization signatures of affected employees as verification of the employee organization's claim of majority status.deleted text end

(b) deleted text begin Upon receipt of an employee organization's petition, accompanied by employee authorization signatures under this subdivision, the commissioner shall investigate the petition.deleted text end If the commissioner determines that over 50 percent of the employees in deleted text begin andeleted text end new text begin thenew text end appropriate unit have provided authorization signatures designating the new text begin petitioning new text end employee organization deleted text begin specified in the petitiondeleted text end as their exclusive representative, the commissioner deleted text begin shall not order an election but shalldeleted text end new text begin mustnew text end certify the employee organizationnew text begin as the employees' exclusive representative without ordering an election under this sectionnew text end .

Sec. 13.

Minnesota Statutes 2022, section 179A.12, subdivision 5, is amended to read:

Subd. 5.

Commissioner to investigate.

deleted text begin The commissioner shall,deleted text end Upon deleted text begin receipt of an employee organization'sdeleted text end new text begin receiving anew text end petition deleted text begin to the commissionerdeleted text end under subdivision deleted text begin 3deleted text end new text begin 1a or 2anew text end , new text begin the commissioner must:new text end

new text begin (1) new text end investigate to determine if sufficient evidence of a question of representation existsnew text begin ;new text end and

new text begin (2)new text end hold hearings necessary to determine the appropriate unit and other matters necessary to determine the representation rights of the affected employees and employer.

Sec. 14.

Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 6, is amended to read:

Subd. 6.

Authorization signatures.

deleted text begin Indeleted text end new text begin (a) Whennew text end determining the numerical status of an employee organization for purposes of this section, the commissioner deleted text begin shalldeleted text end new text begin mustnew text end require new text begin a new text end dated representation authorization deleted text begin signatures of affected employeesdeleted text end new text begin signature of each affected employeenew text end as verification of the statements contained in the deleted text begin joint request or petitionsdeleted text end new text begin petitionnew text end . deleted text begin Thesedeleted text end

new text begin (b) An new text end authorization deleted text begin signatures shall bedeleted text end new text begin signature isnew text end privileged and confidential information available to the commissioner only. new text begin An new text end electronic deleted text begin signaturesdeleted text end new text begin signaturenew text end , as defined in section 325L.02, paragraph (h), deleted text begin shall bedeleted text end new text begin isnew text end valid as new text begin an new text end authorization deleted text begin signaturesdeleted text end new text begin signaturenew text end .

new text begin (c) Annew text end authorization deleted text begin signatures shall bedeleted text end new text begin signature isnew text end valid for deleted text begin a period ofdeleted text end one year following the new text begin signature new text end date deleted text begin of signaturedeleted text end .

Sec. 15.

Minnesota Statutes 2023 Supplement, section 179A.12, subdivision 11, is amended to read:

Subd. 11.

Unfair labor practices.

new text begin The commissioner may void the result of an election or majority verification procedure and order a new election or procedure new text end if the commissioner finds deleted text begin thatdeleted text end new text begin one of the following:new text end

new text begin (1) there wasnew text end an unfair labor practice new text begin that:new text end

new text begin (i) new text end was committed by an employer deleted text begin ordeleted text end new text begin , anew text end representative candidate deleted text begin ordeleted text end new text begin ,new text end an employeenew text begin ,new text end or new text begin a new text end group of employeesdeleted text begin ,deleted text end new text begin ;new text end and deleted text begin that the unfair labor practicedeleted text end

new text begin (ii)new text end affected the result of deleted text begin andeleted text end new text begin thenew text end election or new text begin the new text end majority verification procedure deleted text begin pursuant to subdivision 2a,deleted text end new text begin ;new text end or deleted text begin thatdeleted text end

new text begin (2)new text end procedural or other irregularities in the conduct of the election or majority verification procedure may have substantially affected deleted text begin itsdeleted text end new text begin thenew text end resultsdeleted text begin , the commissioner may void the result and order a new election or majority verification proceduredeleted text end .

Sec. 16.

Minnesota Statutes 2022, section 179A.13, subdivision 1, is amended to read:

Subdivision 1.

Actions.

(a) The practices specified in this section are unfair labor practices. Any employee, employer, employee or employer organization, exclusive representative, or any other person or organization aggrieved by an unfair labor practice as defined in this section may file an unfair labor practice charge with the board.

(b) Whenever it is charged that any party has engaged in or is engaging in any unfair labor practice, an investigator designated by the board shall promptly conduct an investigation of the charge. Unless after the investigation the board finds that the charge has no reasonable basis in law or fact, the board shall promptly issue a complaint and cause to be served upon the party a complaint stating the charges, accompanied by a notice of hearing before a qualified hearing officer designated by the board at the offices of the bureau or other location as the board deems appropriate, not deleted text begin less than five days nor more than 20 daysdeleted text end new text begin more than 30 daysnew text end after serving the complaintnew text begin absent mutual agreement of the partiesnew text end , provided that no complaint shall be issued based upon any unfair labor practice occurring more than six months prior to the filing of a charge. A complaint issued under this subdivision may be amended by the board at any time prior to the issuance of an order based thereon. The party who is the subject of the complaint has the right to file an answer to the original or amended complaint prior to hearing and to appear in person or by a representative and give testimony at the place and time fixed in the complaint. In the discretion of the hearing officer conducting the hearing or the board, any other party may be allowed to intervene in the proceeding and to present testimony. The board or designated hearing officers shall not be bound by the rules of evidence applicable to courts, except as to the rules of privilege recognized by law.

(c) Designated investigators must conduct the investigation of charges.

(d) Hearing officers must deleted text begin be licensed to practice law in the state of Minnesotadeleted text end new text begin have a juris doctornew text end and must conduct the hearings and issue recommended decisions and orders.

(e) The board or its designees shall have the power to issue subpoenas and administer oaths. If any party willfully fails or neglects to appear or testify or to produce books, papers, and records pursuant to the issuance of a subpoena, the board may apply to a court of competent jurisdiction to request that the party be ordered to appear to testify or produce the requested evidence.

(f) A full and complete record shall be kept of all proceedings before the board or designated hearing officer and shall be transcribed by a reporter appointed by the board.

(g) The party on whom the burden of proof rests shall be required to sustain the burden by a preponderance of the evidence.

(h) At any time prior to the close of a hearing, the parties may by mutual agreement request referral to mediation, at which time the commissioner shall appoint a mediator, and the hearing shall be suspended pending the results of the mediation.

(i) If, upon a preponderance of the evidence taken, the hearing officer determines that any party named in the charge has engaged in or is engaging in an unfair labor practice, then a recommended decision and order shall be issued stating findings of fact and conclusions, and requiring the party to cease and desist from the unfair labor practice, to post a cease-and-desist notice in the workplace, and ordering any appropriate relief to effectuate the policies of this section, including but not limited to reinstatement, back pay, and any other remedies that make a charging party whole. If back pay is awarded, the award must include interest at the rate of seven percent per annum. The order further may require the party to make reports from time to time, and demonstrate the extent to which the party has complied with the order.

(j) If there is no preponderance of evidence that the party named in the charge has engaged in or is engaging in the unfair labor practice, then the hearing officer shall issue a recommended decision and order stating findings of fact and dismissing the complaint.

(k) Parties may file exceptions to the hearing officer's recommended decision and order with the board no later than 30 days after service of the recommended decision and order. The board shall review the recommended decision and order upon timely filing of exceptions or upon its own motion. If no timely exceptions have been filed, the parties must be deemed to have waived their exceptions. Unless the board reviews the recommended decision and order upon its own motion, it must not be legal precedent and must be final and binding only on the parties to the proceeding as issued in an order issued by the board. If the board does review the recommended decision and order, the board may adopt all, part, or none of the recommended decision and order, depending on the extent to which it is consistent with the record and applicable laws. The board shall issue and serve on all parties its decision and order. The board shall retain jurisdiction over the case to ensure the parties' compliance with the board's order. Unless overturned by the board, the parties must comply with the recommended decision and order.

(l) Until the record has been filed in the court of appeals or district court, the board at any time, upon reasonable notice and in a manner it deems appropriate, may modify or set aside, in whole or in part, any finding or order made or issued by it.

(m) Upon a final order that an unfair labor practice has been committed, the board or the charging party may petition the district court for the enforcement of the order and for appropriate temporary relief or a restraining order. When the board petitions the court, the charging party may intervene as a matter of right.

(n) Whenever it appears that any party has violated a final order of the board issued pursuant to this section, the board must petition the district court for an order directing the party and its officers, agents, servants, successors, and assigns to comply with the order of the board. The board shall be represented in this action by its general counsel, who has been appointed by the board. The court may grant or refuse, in whole or in part, the relief sought, provided that the court also may stay an order of the board pending disposition of the proceedings. The court may punish a violation of its order as in civil contempt.

(o) The board shall have power, upon issuance of an unfair labor practice complaint alleging that a party has engaged in or is engaging in an unfair labor practice, to petition the district court for appropriate temporary relief or a restraining order. Upon the filing of any such petition, the court shall cause notice thereof to be served upon such parties, and thereupon shall have jurisdiction to grant to the board or commissioner temporary relief or a restraining order as it deems appropriate. Nothing in this paragraph precludes a charging party from seeking injunctive relief in district court after filing the unfair labor practice charge.

(p) The proceedings in paragraphs (m), (n), and (o) shall be commenced in the district court for the county in which the unfair labor practice which is the subject of the order or administrative complaint was committed, or where a party alleged to have committed the unfair labor practice resides or transacts business.

Sec. 17.

Minnesota Statutes 2022, section 179A.13, subdivision 2, is amended to read:

Subd. 2.

Employers.

Public employers, their agents and representatives are prohibited from:

(1) interfering, restraining, or coercing employees in the exercise of the rights guaranteed in sections 179A.01 to 179A.25;

(2) dominating or interfering with the formation, existence, or administration of any employee organization or contributing other support to it;

(3) discriminating in regard to hire or tenure to encourage or discourage membership in an employee organization;

(4) discharging or otherwise discriminating against an employee because the employee has signed or filed an affidavit, petition, or complaint or given information or testimony under sections 179A.01 to 179A.25;

(5) refusing to meet and negotiate in good faith with the exclusive representative of its employees in an appropriate unit;

(6) refusing to comply with grievance procedures contained in an agreement;

(7) distributing or circulating a blacklist of individuals exercising a legal right or of members of a labor organization for the purpose of preventing blacklisted individuals from obtaining or retaining employment;

(8) violating rules established by the commissioner regulating the conduct of representation elections;

(9) refusing to comply with a valid decision of a binding arbitration panel or arbitrator;

(10) violating or refusing to comply with any lawful order or decision issued by the commissioner or the board;

(11) refusing to provide, upon the request of the exclusive representative, all information pertaining to the public employer's budget both present and proposed, revenues, and other financing information provided that in the executive branch of state government this clause may not be considered contrary to the budgetary requirements of sections 16A.10 and 16A.11; deleted text begin ordeleted text end

(12) granting or offering to grant the status of permanent replacement employee to a person for performing bargaining unit work for the employer during a lockout of employees in an employee organization or during a strike authorized by an employee organization that is an exclusive representativedeleted text begin .deleted text end new text begin ;new text end

new text begin (13) failing or refusing to provide information that is relevant to enforcement or negotiation of a contract as soon as reasonable after receiving a request by an exclusive representative, not to exceed 30 days for information relevant to contract enforcement or 60 days for information relevant to contract negotiation absent mutual agreement by the parties, provided that a state agency may request and the commissioner may extend these timelines based upon estimated need and after consultation with the exclusive representative; or new text end

new text begin (14) refusing to reassign a position after the commissioner has determined the position was not placed into the correct bargaining unit. new text end

Sec. 18.

Minnesota Statutes 2022, section 179A.40, subdivision 1, is amended to read:

Subdivision 1.

Units.

The following are the appropriate employee units of the Hennepin Healthcare System, Inc. All units shall exclude supervisors, managerial employees, and confidential employees. No additional units of Hennepin Healthcare System, Inc., shall be eligible to be certified for the purpose of meeting and negotiating with an exclusive representative. The units include all:

(1) registered nurses;

(2) physiciansnew text begin except those employed as interns, residents, or fellowsnew text end ;

(3) professionals except for registered nurses and physicians;

(4) technical and paraprofessional employees;

(5) carpenters, electricians, painters, and plumbers;

(6) health general service employees;

(7) interpreters;

(8) emergency medical technicians/emergency medical dispatchers (EMT/EMD), and paramedics;

(9) bioelectronics specialists, bioelectronics technicians, and electronics technicians;

(10) skilled maintenance employees; deleted text begin anddeleted text end

(11) clerical employeesdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (12) physicians employed as interns, residents, and fellows. new text end

Sec. 19.

Minnesota Statutes 2022, section 179A.54, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Legislative action ondeleted text end new text begin Collective bargainingnew text end agreements.

deleted text begin Any agreement reached between the state and the exclusive representative of individual providers under chapter 179A shall be submitted to the legislature to be accepted or rejected in accordance with sections 3.855 and 179A.22deleted text end new text begin The commissioner of management and budget is authorized to enter into and implement agreements, including interest arbitration decisions, with the exclusive representative of individual providers as provided in section 179A.22, subdivision 4, except for terms and conditions requiring appropriations, changes to state law, or approval from the federal government which shall be contingent upon and executed following receipt of appropriations and state and federal approvalnew text end .

Sec. 20.

new text begin RULEMAKING. new text end

new text begin The commissioner of the Bureau of Mediation Services must adopt rules on petitions for majority verification, including technical changes needed for consistency with Minnesota Statutes, section 179A.12, and the commissioner may use the expedited rulemaking process under Minnesota Statutes, section 14.389. new text end

Sec. 21.

new text begin REVISOR INSTRUCTION. new text end

new text begin The revisor of statutes must renumber Minnesota Statutes, section 179A.12, subdivision 3, as Minnesota Statutes, section 179A.12, subdivision 1a. new text end

ARTICLE 9

MISCELLANEOUS LABOR PROVISIONS

Section 1.

Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 1, as amended by Laws 2024, chapter 85, section 15, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have the meanings given them.

(b) "Economic development" means financial assistance provided to a person directly or to a local unit of government or nonprofit organization on behalf of a person who is engaged in the manufacture or sale of goods and services. Economic development does not include (1) financial assistance for rehabilitation of existing housing; (2) financial assistance for new housing construction in which total financial assistance at a single project site is less than $100,000; or (3) financial assistance for the new construction of fully detached single-family affordable homeownership units for which the financial assistance covers no more than ten fully detached single-family affordable homeownership units. For purposes of this paragraph, "affordable homeownership" means housing targeted at households with incomes, at initial occupancy, at or below 115 percent of the state or area median income, whichever is greater, as determined by the United States Department of Housing and Urban Development.

(c) "Financial assistance" means (1) a grant awarded by a state agencynew text begin or allocating agencynew text end for economic development related purposes if a single business receives $200,000 or more of the grant proceeds; (2) a loan or the guaranty or purchase of a loan made by a state agencynew text begin or allocating agencynew text end for economic development related purposes if a single business receives $500,000 or more of the loan proceeds; or (3) a reduction, credit, or abatement of a tax assessed under chapter 297A where the tax reduction, credit, or abatement applies to a geographic area smaller than the entire state and was granted for economic development related purposesnew text begin ; or (4) allocations or awards of low-income housing credits by all allocating agencies as provided in section 462A.222, for which tax credits are used for multifamily housing projects consisting of more than ten units.new text end . Financial assistance does not include payments by the state of aids and credits under chapter 273 or 477A to a political subdivision.

(d) "Project site" means the location where improvements are made that are financed in whole or in part by the financial assistance; or the location of employees that receive financial assistance in the form of employment and training services as defined in section 116L.19, subdivision 4, or customized training from a technical college.

(e) "State agency" means any agency defined under section 16B.01, subdivision 2, Enterprise Minnesota, Inc., and the Department of Iron Range Resources and Rehabilitation.

new text begin (f) "Allocating agency" has the meaning given in section 462A.221, subdivision 1a. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for developments selected for tax credit awards or allocations on or after January 1, 2025. new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 2, is amended to read:

Subd. 2.

Prevailing wage required.

(a) A state agencynew text begin or allocating agencynew text end may provide financial assistance to a person only if the person receiving or benefiting from the financial assistance certifies to the commissioner of labor and industry that laborers and mechanics at the project site during construction, installation, remodeling, and repairs for which the financial assistance was provided will be paid the prevailing wage rate as defined in section 177.42, subdivision 6. The person receiving or benefiting from the financial assistance is also subject to the requirements and enforcement provisions of sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45.

(b) For purposes of complying with section 177.30, paragraph (a), clauses (6) and (7), the state agencynew text begin or allocating agencynew text end awarding the financial assistance is considered the contracting authority and the project is considered a public works project. The person receiving or benefiting from the financial assistance shall notify all employers on the project of the record keeping and reporting requirements in section 177.30, paragraph (a), clauses (6) and (7). Each employer shall submit the required information to the contracting authority.

Sec. 3.

Minnesota Statutes 2022, section 116J.871, subdivision 4, is amended to read:

Subd. 4.

Notification.

A state agencynew text begin or allocating agencynew text end shall notify any person applying for financial assistance from the state agencynew text begin or allocating agencynew text end of the requirements under subdivision 2 and of the penalties under subdivision 3.

Sec. 4.

Minnesota Statutes 2022, section 181.960, subdivision 3, is amended to read:

Subd. 3.

Employer.

"Employer" means a person who has deleted text begin 20deleted text end new text begin onenew text end or more employees. Employer does not include a state agency, statewide system, political subdivision, or advisory board or commission that is subject to chapter 13.

Sec. 5.

new text begin [462A.051] WAGE THEFT PREVENTION AND USE OF RESPONSIBLE CONTRACTORS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Project sponsor" means an individual, legal entity, or nonprofit board that exercises control, financial responsibility, and decision-making authority over a housing development. new text end

new text begin (c) "Developer" means an individual, legal entity, or nonprofit board that is responsible for the coordination of financing and building of a housing development. new text end

new text begin (c) "Funding" means all forms of financial assistance or the allocation or award of federal low-income housing tax credits. new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin This section applies to all forms of financial assistance provided by the Minnesota Housing Finance Agency, as well as the allocation and award of federal low-income housing credits, for the development, construction, rehabilitation, renovation, or retrofitting of multiunit residential housing, including loans, grants, tax credits, loan guarantees, loan insurance, and other financial assistance. new text end

new text begin Subd. 3. new text end

new text begin Disclosures. new text end

new text begin An applicant for funding under this chapter shall disclose in the application any conviction, court judgment, agency determination, legal settlement, ongoing criminal or civil investigation, or lawsuit involving alleged violations of sections 177.24, 177.25, 177.32, 177.41 to 177.44, 181.03, 181.101, 181.13, 181.14, 181.722, 181.723, 181A.01 to 181A.12, or 609.52, subdivision 2, paragraph (a), clause (19), or United States Code, title 29, sections 201 to 219, or title 40, sections 3141 to 3148, arising or occurring within the preceding five years on a construction project owned or managed by the developer, project sponsor, or owner of the proposed project, the intended general contractor for the proposed project, or any of their respective parent companies, subsidiaries, or other affiliated companies. An applicant for funding shall make the disclosures required by this subdivision available within 14 calendar days to any member of the public who submits a request by mail or electronic correspondence. The applicant shall designate a public information officer who will serve as a point of contact for public inquiries. new text end

new text begin Subd. 4. new text end

new text begin Responsible contractors required. new text end

new text begin As a condition of receiving funding from the agency during the application process, the project sponsor shall verify that every contractor or subcontractor of any tier performing work on the proposed project meets the minimum criteria to be a responsible contractor under section 16C.285, subdivision 3. This verification must meet the criteria defined in section 16C.285, subdivision 4. new text end

new text begin Subd. 5. new text end

new text begin Certified contractor lists. new text end

new text begin As a condition of receiving funding, the project applicant shall have available at the development site main office, a list of every contractor and subcontractor of any tier that performs work or is expected to perform work on the proposed project, as described in section 16C.285, subdivision 5, including the following information for each contractor and subcontractor: business name, scope of work, Department of Labor and Industry registration number, business name of the entity contracting its services, business telephone number and email address, and actual or anticipated number of workers on the project. The project sponsor shall establish the initial contractor list 30 days before the start of construction and shall update the list each month thereafter until construction is complete. The project sponsor shall post the contractor list in a conspicuous location at the project site and make the contractor list available to members of the public upon request. new text end

new text begin Subd. 6. new text end

new text begin Wage theft remedy. new text end

new text begin If any contractor or subcontractor of any tier is found to have failed to pay statutorily required wages under section 609.52, subdivision 1, clause (13), on a project receiving funding from or through the agency, the contractor or subcontractor with the finding is responsible for correcting the violation. new text end

new text begin Subd. 7. new text end

new text begin Wage theft prevention plans; disqualification. new text end

new text begin (a) If any contractor or subcontractor of any tier fails to pay statutorily required wages on a project receiving funding from or through the agency as determined by an enforcement entity, the project sponsor of the project must have a wage theft prevention plan to be eligible for further funding from the agency. The project sponsor's wage theft prevention plan must describe detailed measures that the project sponsor and its general contractor have taken and are committed to take to prevent wage theft on the project, including provisions in any construction contracts and subcontracts on the project. The plan must be submitted to the Department of Labor and Industry for review. The Department of Labor and Industry may require the project sponsor to amend the plan or adopt policies or protocols in the plan. Once approved by the Department of Labor and Industry, the wage theft prevention plan must be submitted by the project sponsor to the agency with any subsequent application for funding from the agency. Such wage theft prevention plans shall be made available to members of the public by the agency upon request. new text end

new text begin (b) A project sponsor is disqualified from receiving funding from or through the agency for three years if any of the project sponsor's contractors or subcontractors of any tier are found by an enforcement agency to have, within three years after entering into a wage theft prevention plan under paragraph (a), failed to pay statutorily required wages on a project receiving financial assistance from or through the agency for a total underpayment of $50,000 or more. new text end

new text begin Subd. 8. new text end

new text begin Enforcement. new text end

new text begin The agency must deny an application for funding that does not comply with this section or if the project sponsor refuses to enter into the agreements required by this section. The agency may withhold funding that has been previously approved if the agency determines that the project sponsor has engaged in unacceptable practices by failing to comply with this section until the violation is cured. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for funding submitted after August 1, 2024. new text end

Sec. 6.

new text begin RULEMAKING; ACCEPTABLE BLOOD LEAD LEVELS FOR WORKERS. new text end

new text begin The commissioner of labor and industry, in consultation with the commissioner of health, shall adopt rules to: new text end

new text begin (1) lower the acceptable blood lead levels above which require mandatory removal of workers from the lead exposure; and new text end

new text begin (2) lower the blood lead levels required before a worker is allowed to return to work. The thresholds established must be based on the most recent public health information on the safety of lead exposure. new text end

ARTICLE 10

EMPLOYEE MISCLASSIFICATION PROHIBITED

Section 1.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 1, is amended to read:

Subdivision 1.

Examination of records.

The commissioner may enter during reasonable office hours or upon request and inspect the place of business or employment of any employer of employees working in the state, to examine and inspect books, registers, payrolls, and other records of any employer that in any way relate to wages, hours, and other conditions of employment of any employees. The commissioner may transcribe any or all of the books, registers, payrolls, and other records as the commissioner deems necessary or appropriate and may question the new text begin employer, new text end employeesnew text begin , and other personsnew text end to ascertain compliance with new text begin any of the new text end sections deleted text begin 177.21 to 177.435 and 181.165deleted text end new text begin listed in subdivision 4new text end . The commissioner may investigate wage claims or complaints by an employee against an employer if the failure to pay a wage may violate Minnesota law or an order or rule of the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 2, is amended to read:

Subd. 2.

Submission of records; penalty.

The commissioner may require the employer of employees working in the state to submit to the commissioner photocopies, certified copies, or, if necessary, the originals of deleted text begin employmentdeleted text end records new text begin that relate to employment or employment status new text end which the commissioner deems necessary or appropriate. The records which may be required include full and correct statements in writing, including sworn statements by the employer, containing information relating to wages, hours, names, addresses, and any other information pertaining to the employer's employees and the conditions of their employment as the commissioner deems necessary or appropriate.

The commissioner may require the records to be submitted by certified mail delivery or, if necessary, by personal delivery by the employer or a representative of the employer, as authorized by the employer in writing.

The commissioner may fine the employer up to $10,000 for each failure to submit or deliver records as required by this section. This penalty is in addition to any penalties provided under section 177.32, subdivision 1. In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 3.

Minnesota Statutes 2022, section 177.27, subdivision 3, is amended to read:

Subd. 3.

Adequacy of records.

If the records maintained by the employer do not provide sufficient information to determine the exact amount of back wages due an employee, the commissioner may make a determination of wages due based on available evidence deleted text begin and mediate a settlement with the employerdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 4, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an employer to comply with sections 177.21 to 177.435, 179.86, 181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 181.172, paragraph (a) or (d), 181.214 to 181.217, 181.275, subdivision 2a, 181.635, 181.722, new text begin 181.723, new text end 181.79, 181.85 to 181.89, 181.939 to 181.943, 181.9445 to 181.9448, 181.987, 181.991, 268B.09, subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under section 177.28, 181.213, or 181.215. The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435, 181.165, or 181.987 if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435, 181.165, or 181.987 and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435. The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69 or 181.165. If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner. For the purposes of this subdivision, an employer includes a contractor that has assumed a subcontractor's liability within the meaning of section 181.165.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 7, is amended to read:

Subd. 7.

Employer liability.

If an employer is found by the commissioner to have violated a section identified in subdivision 4, or any rule adopted under section 177.28, 181.213, or 181.215, and the commissioner issues an order to comply, the commissioner shall order the employer to cease and desist from engaging in the violative practice and to take such affirmative steps that in the judgment of the commissioner will effectuate the purposes of the section or rule violated. new text begin In addition to remedies, damages, and penalties provided for in the violated section, new text end the commissioner shall order the employer to pay to the aggrieved parties back pay, gratuities, and compensatory damages, less any amount actually paid to the deleted text begin employeedeleted text end new text begin aggrieved partiesnew text end by the employer, and for an additional equal amount as liquidated damages. Any employer who is found by the commissioner to have repeatedly or willfully violated a section or sections identified in subdivision 4 shall be subject to deleted text begin adeleted text end new text begin an additionalnew text end civil penalty of up to $10,000 for each violation for each employee. In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered. In addition, the commissioner may order the employer to reimburse the department and the attorney general for all appropriate litigation and hearing costs expended in preparation for and in conducting the contested case proceeding, unless payment of costs would impose extreme financial hardship on the employer. If the employer is able to establish extreme financial hardship, then the commissioner may order the employer to pay a percentage of the total costs that will not cause extreme financial hardship. Costs include but are not limited to the costs of services rendered by the attorney general, private attorneys if engaged by the department, administrative law judges, court reporters, and expert witnesses as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's order from the date the order is signed by the commissioner until it is paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). The commissioner may establish escrow accounts for purposes of distributingnew text begin remedies andnew text end damages.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 6.

Minnesota Statutes 2022, section 181.171, subdivision 1, is amended to read:

Subdivision 1.

Civil action; damages.

A person may bring a civil action seeking redress for violations of sections 181.02, 181.03, 181.031, 181.032, 181.08, 181.09, 181.10, 181.101, 181.11, 181.13, 181.14, 181.145, deleted text begin anddeleted text end 181.15new text begin , 181.722, and 181.723new text end directly to district court. An employer who is found to have violated the above sections is liable to the aggrieved party for the civil penalties or damages provided for in the section violated. An employer who is found to have violated the above sections shall also be liable for compensatory damages and other appropriate relief including but not limited to injunctive relief.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 7.

Minnesota Statutes 2022, section 181.722, is amended to read:

181.722 deleted text begin MISREPRESENTATIONdeleted text end new text begin MISCLASSIFICATIONnew text end OF deleted text begin EMPLOYMENT RELATIONSHIP PROHIBITEDdeleted text end new text begin EMPLOYEESnew text end .

Subdivision 1.

deleted text begin Prohibitiondeleted text end new text begin Prohibited activities related to employment statusnew text end .

deleted text begin No employer shall misrepresent the nature of its employment relationship with its employees to any federal, state, or local government unit; to other employers; or to its employees. An employer misrepresents the nature of its employment relationship with its employees if it makes any statement regarding the nature of the relationship that the employer knows or has reason to know is untrue and if it fails to report individuals as employees when legally required to do so. deleted text end

new text begin (a) A person shall not: new text end

new text begin (1) fail to classify, represent, or treat an individual who is the person's employee pursuant to subdivision 3 as an employee in accordance with the requirements of any applicable local, state, or federal law. A violation under this clause is in addition to any violation of local, state, or federal law; new text end

new text begin (2) fail to report or disclose to any person or to any local, state, or federal government agency an individual who is the person's employee pursuant to subdivision 3 as an employee when required to do so under any applicable local, state, or federal law. Each failure to report or disclose an individual as an employee shall constitute a separate violation of this clause; or new text end

new text begin (3) require or request an individual who is the person's employee pursuant to subdivision 3 to enter into any agreement or complete any document that misclassifies, misrepresents, or treats the individual as an independent contractor or otherwise does not reflect that the individual is the person's employee pursuant to subdivision 3. Each agreement or completed document constitutes a separate violation of this provision. new text end

new text begin (b) An owner, partner, principal, member, officer, or agent, on behalf of the person, who knowingly or repeatedly engaged in any of the prohibited activities in this subdivision may be held individually liable. new text end

new text begin (c) An order issued by the commissioner to a person for engaging in any of the prohibited activities in this subdivision is in effect against any successor person. A person is a successor person if the person shares three or more of the following with the person to whom the order was issued: new text end

new text begin (1) has one or more of the same owners, members, principals, officers, or managers; new text end

new text begin (2) performs similar work within the state of Minnesota; new text end

new text begin (3) has one or more of the same telephone or fax numbers; new text end

new text begin (4) has one or more of the same email addresses or websites; new text end

new text begin (5) employs or engages substantially the same individuals to provide or perform services; new text end

new text begin (6) utilizes substantially the same vehicles, facilities, or equipment; or new text end

new text begin (7) lists or advertises substantially the same project experience and portfolio of work. new text end

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) "Person" means any individual, sole proprietor, limited liability company, limited liability partnership, corporation, partnership, incorporated or unincorporated association, joint stock company, or any other legal or commercial entity. new text end

new text begin (b) "Department" means the Department of Labor and Industry. new text end

new text begin (c) "Commissioner" means the commissioner of labor and industry or a duly designated representative of the commissioner who is either an employee of the Department of Labor and Industry or a person working under contract with the Department of Labor and Industry. new text end

new text begin (d) "Individual" means a human being. new text end

new text begin (e) "Knowingly" means knew or could have known with the exercise of reasonable diligence. new text end

deleted text begin Subd. 2. deleted text end

deleted text begin Agreements to misclassify prohibited. deleted text end

deleted text begin No employer shall require or request any employee to enter into any agreement, or sign any document, that results in misclassification of the employee as an independent contractor or otherwise does not accurately reflect the employment relationship with the employer. deleted text end

Subd. 3.

Determination of employment relationship.

For purposes of this section, the nature of an employment relationship is determined using the same tests and in the same manner as employee status is determined under the applicable workers' compensation and unemployment insurance program laws and rules.

Subd. 4.

deleted text begin Civil remedydeleted text end new text begin Damages and penaltiesnew text end .

deleted text begin A construction worker, as defined in section 179.254, who is not an independent contractor and has been injured by a violation of this section, may bring deleted text end deleted text begin a civil action for damages against the violator. If the construction worker injured is an employee of the violator of this section, the employee's representative, as defined in section 179.01, subdivision 5, may bring a civil action for damages against the violator on behalf of the employee. The court may award attorney fees, costs, and disbursements to a construction worker recovering under this section. deleted text end

new text begin (a) The following damages and penalties may be imposed for a violation of this section: new text end

new text begin (1) compensatory damages to the individual the person has failed to classify, represent, or treat as an employee pursuant to subdivision 3. Compensatory damages includes but is not limited to the value of supplemental pay including minimum wage; overtime; shift differentials; vacation pay, sick pay, and other forms of paid time off; health insurance; life and disability insurance; retirement plans; savings plans and any other form of benefit; employer contributions to unemployment insurance; Social Security and Medicare; and any costs and expenses incurred by the individual resulting from the person's failure to classify, represent, or treat the individual as an employee; new text end

new text begin (2) a penalty of up to $10,000 for each individual the person failed to classify, represent, or treat as an employee pursuant to subdivision 3; new text end

new text begin (3) a penalty of up to $10,000 for each violation of subdivision 1; and new text end

new text begin (4) a penalty of $1,000 for each person who delays, obstructs, or otherwise fails to cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure to cooperate constitutes a separate violation. new text end

new text begin (b) This section may be investigated and enforced under the commissioner's authority under state law. new text end

Subd. 5.

Reporting of violations.

Any court finding that a violation of this section has occurred shall transmit a copy of its findings of fact and conclusions of law to the commissioner of labor and industry. The commissioner of labor and industry shall report the finding to relevant new text begin local, new text end statenew text begin ,new text end and federal agencies, including the commissioner of commerce, the commissioner of employment and economic development, the commissioner of revenue, the federal Internal Revenue Service, and the United States Department of Labor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 8.

Minnesota Statutes 2022, section 181.723, is amended to read:

181.723 new text begin MISCLASSIFICATION OF new text end CONSTRUCTION deleted text begin CONTRACTORSdeleted text end new text begin EMPLOYEESnew text end .

Subdivision 1.

Definitions.

The definitions in this subdivision apply to this section.

(a) "Person" means any individual, new text begin sole proprietor, new text end limited liability company, limited liability partnership, corporation, partnership, incorporated or unincorporated association, deleted text begin sole proprietorship,deleted text end joint stock company, or any other legal or commercial entity.

(b) "Department" means the Department of Labor and Industry.

(c) "Commissioner" means the commissioner of labor and industry or a duly designated representative of the commissioner who is either an employee of the Department of Labor and Industry or person working under contract with the Department of Labor and Industry.

(d) "Individual" means a human being.

(e) "Day" means calendar day unless otherwise provided.

(f) "Knowingly" means knew or could have known with the exercise of reasonable diligence.

(g) "Business entity" means a person deleted text begin other than an individual or a sole proprietordeleted text end new text begin as that term is defined in paragraph (a), except the term does not include an individualnew text end .

new text begin (h) "Independent contractor" means a business entity that meets all the requirements under subdivision 4, paragraph (a). new text end

Subd. 2.

Limited application.

This section only applies to deleted text begin individualsdeleted text end new text begin persons providing ornew text end performing deleted text begin public or private sector commercial or residentialdeleted text end building construction or improvement services. Building construction deleted text begin anddeleted text end new text begin or new text end improvement services deleted text begin do notdeleted text end includenew text begin all public or private sector commercial or residential building construction or improvement services except for:new text end (1) the manufacture, supply, or sale of products, materials, or merchandise; (2) landscaping services for the maintenance or removal of existing plants, shrubs, trees, and other vegetation, whether or not the services are provided as part of a contract for the building construction or improvement services; and (3) all other landscaping services, unless the other landscaping services are provided as part of a contract for the building construction or improvement services.

Subd. 3.

Employee-employer relationship.

Except as provided in subdivision 4, for purposes of chapters 176, 177, new text begin 181, new text end 181A, 182, deleted text begin anddeleted text end 268, deleted text begin as of January 1, 2009deleted text end new text begin and 326Bnew text end , an individual who new text begin provides or new text end performs new text begin building construction or improvement new text end services for a person that are in the course of the person's trade, business, profession, or occupation is an employee of that person and that person is an employer of the individual.

Subd. 4.

Independent contractor.

(a) An individual is an independent contractor and not an employee of the person for whom the individual is new text begin providing or new text end performing services in the course of the person's trade, business, profession, or occupation only if the individualnew text begin is operating as a business entity that meets all of the following requirements at the time the services were provided or performednew text end :

deleted text begin (1) maintains a separate business with the individual's own office, equipment, materials, and other facilities; deleted text end

deleted text begin (2)(i) holds or has applied for a federal employer identification number or (ii) has filed business or self-employment income tax returns with the federal Internal Revenue Service if the individual has performed services in the previous year; deleted text end

deleted text begin (3) is operating under contract to perform the specific services for the person for specific amounts of money and under which the individual controls the means of performing the services; deleted text end

deleted text begin (4) is incurring the main expenses related to the services that the individual is performing for the person under the contract; deleted text end

deleted text begin (5) is responsible for the satisfactory completion of the services that the individual has contracted to perform for the person and is liable for a failure to complete the services; deleted text end

deleted text begin (6) receives compensation from the person for the services performed under the contract on a commission or per-job or competitive bid basis and not on any other basis; deleted text end

deleted text begin (7) may realize a profit or suffer a loss under the contract to perform services for the person; deleted text end

deleted text begin (8) has continuing or recurring business liabilities or obligations; and deleted text end

deleted text begin (9) the success or failure of the individual's business depends on the relationship of business receipts to expenditures. deleted text end

deleted text begin An individual who is not registered, if required by section 326B.701, is presumed to be an employee of a person for whom the individual performs services in the course of the person's trade, business, profession, or occupation. The person for whom the services were performed may rebut this presumption by showing that the unregistered individual met all nine factors in this paragraph at the time the services were performed. deleted text end

deleted text begin (b) If an individual is an owner or partial owner of a business entity, the individual is an employee of the person for whom the individual is performing services in the course of the person's trade, business, profession, or occupation, and is not an employee of the business entity in which the individual has an ownership interest, unless: deleted text end

deleted text begin (1) the business entity meets the nine factors in paragraph (a); deleted text end

deleted text begin (2) invoices and payments are in the name of the business entity; and deleted text end

deleted text begin (3) the business entity is registered with the secretary of state, if required. deleted text end

deleted text begin If the business entity in which the individual has an ownership interest is not registered, if required by section 326B.701, the individual is presumed to be an employee of a person for whom the individual performs services and not an employee of the business entity in which the individual has an ownership interest. The person for whom the services were performed may rebut the presumption by showing that the business entity met the requirements of clauses (1) to (3) at the time the services were performed. deleted text end

new text begin (1) was established and maintained separately from and independently of the person for whom the services were provided or performed; new text end

new text begin (2) owns, rents, or leases equipment, tools, vehicles, materials, supplies, office space, or other facilities that are used by the business entity to provide or perform building construction or improvement services; new text end

new text begin (3) provides or performs, or offers to provide or perform, the same or similar building construction or improvement services for multiple persons or the general public; new text end

new text begin (4) is in compliance with all of the following: new text end

new text begin (i) holds a federal employer identification number if required by federal law; new text end

new text begin (ii) holds a Minnesota tax identification number if required by Minnesota law; new text end

new text begin (iii) has received and retained 1099 forms for income received for building construction or improvement services provided or performed, if required by Minnesota or federal law; new text end

new text begin (iv) has filed business or self-employment income tax returns, including estimated tax filings, with the federal Internal Revenue Service and the Department of Revenue, as the business entity or as a self-employed individual reporting income earned, for providing or performing building construction or improvement services, if any, in the previous 12 months; and new text end

new text begin (v) has completed and provided a W-9 federal income tax form to the person for whom the services were provided or performed if required by federal law; new text end

new text begin (5) is in good standing as defined by section 5.26, if applicable; new text end

new text begin (6) has a Minnesota unemployment insurance account if required by chapter 268; new text end

new text begin (7) has obtained required workers' compensation insurance coverage if required by chapter 176; new text end

new text begin (8) holds current business licenses, registrations, and certifications if required by chapter 326B and sections 327.31 to 327.36; new text end

new text begin (9) is operating under a written contract to provide or perform the specific services for the person that: new text end

new text begin (i) is signed and dated by both an authorized representative of the business entity and of the person for whom the services are being provided or performed; new text end

new text begin (ii) is fully executed no later than 30 days after the date work commences; new text end

new text begin (iii) identifies the specific services to be provided or performed under the contract; new text end

new text begin (iv) provides for compensation from the person for the services provided or performed under the contract on a commission or per-job or competitive bid basis and not on any other basis; and new text end

new text begin (v) the requirements of item (ii) shall not apply to change orders; new text end

new text begin (10) submits invoices and receives payments for completion of the specific services provided or performed under the written proposal, contract, or change order in the name of the business entity. Payments made in cash do not meet this requirement; new text end

new text begin (11) the terms of the written proposal, contract, or change order provide the business entity control over the means of providing or performing the specific services, and the business entity in fact controls the provision or performance of the specific services; new text end

new text begin (12) incurs the main expenses and costs related to providing or performing the specific services under the written proposal, contract, or change order; new text end

new text begin (13) is responsible for the completion of the specific services to be provided or performed under the written proposal, contract, or change order and is responsible, as provided under the written proposal, contract, or change order, for failure to complete the specific services; and new text end

new text begin (14) may realize additional profit or suffer a loss, if costs and expenses to provide or perform the specific services under the written proposal, contract, or change order are less than or greater than the compensation provided under the written proposal, contract, or change order. new text end

new text begin (b)(1) Any individual providing or performing the services as or for a business entity is an employee of the person who engaged the business entity, unless the business entity meets all of the requirements under subdivision 4, paragraph (a). new text end

new text begin (2) Any individual who is determined to be the person's employee is acting as an agent of and in the interest of the person when engaging any other individual or business entity to provide or perform any portion of the services that the business entity was engaged by the person to provide or perform. new text end

new text begin (3) Any individual engaged by an employee of the person, at any tier under the person, is also the person's employee, unless the individual is providing or performing the services as or for a business entity that meets the requirements of subdivision 4, paragraph (a). new text end

new text begin (4) Clauses (1) to (3) do not create an employee-employer relationship between a person and an individual if: (i) there is an intervening business entity in the contractual chain between the person and the individual that meets the requirements of subdivision 4, paragraph (a); or (ii) the person establishes that an intervening business entity treats and classifies the individual as an employee for purposes of, and in compliance with, chapters 176, 177, 181, 181A, 268, 268B, 270C, and 290. new text end

Subd. 7.

Prohibited activities related to independent contractor status.

(a) The prohibited activities in deleted text begin this subdivisiondeleted text end new text begin paragraphs (b) and (c)new text end are in addition to deleted text begin thosedeleted text end new text begin the activitiesnew text end prohibited in sections 326B.081 to 326B.085.

(b) An individual new text begin providing or performing building construction or improvement services new text end shall not deleted text begin hold himself or herself outdeleted text end new text begin represent themselvesnew text end as an independent contractor unless the individual new text begin is operating as a business entity that new text end meetsnew text begin allnew text end the requirements of subdivision 4new text begin , paragraph (a)new text end .

(c) A person who provides new text begin or performs building new text end constructionnew text begin or improvementnew text end services in the course of the person's trade, business, occupation, or profession shall not:

(1) new text begin as a condition of payment for services provided or performed, new text end require an individual deleted text begin through coercion, misrepresentation, or fraudulent meansdeleted text end new text begin , who is an employee pursuant to this section, to register as a construction contractor under section 326B.701, ornew text end to adopt new text begin or agree to being classified, represented, or treated as an new text end independent contractor deleted text begin statusdeleted text end or form a business entitynew text begin . Each instance of conditioning payment to an individual who is an employee on one of these conditions shall constitute a separate violation of this provisionnew text end ;

(2) deleted text begin knowingly misrepresent or misclassify an individual as an independent contractor.deleted text end new text begin fail to classify, represent, or treat an individual who is an employee pursuant to this section as an employee in accordance with the requirements of any of the chapters listed in subdivision 3. Failure to classify, represent, or treat an individual who is an employee pursuant to this section as an employee in accordance with each requirement of a chapter listed in subdivision 3 shall constitute a separate violation of this provision;new text end

new text begin (3) fail to report or disclose to any person or to any local, state, or federal government agency an individual who is an employee pursuant to subdivision 3, as an employee when required to do so under any applicable local, state, or federal law. Each failure to report or disclose an individual as an employee shall constitute a separate violation of this provision; new text end

new text begin (4) require or request an individual who is an employee pursuant to this section to enter into any agreement or complete any document that misclassifies, misrepresents, or treats the individual as an independent contractor or otherwise does not reflect that the individual is an employee pursuant to this section. Each agreement or completed document shall constitute a separate violation of this provision; or new text end

new text begin (5) require an individual who is an employee under this section to register under section 326B.701. new text end

new text begin (d) In addition to the person providing or performing building construction or improvement services in the course of the person's trade, business, occupation, or profession, any owner, partner, principal, member, officer, or agent who engaged in any of the prohibited activities in this subdivision knowingly or repeatedly may be held individually liable. new text end

new text begin (e) An order issued by the commissioner to a person for engaging in any of the prohibited activities in this subdivision is in effect against any successor person. A person is a successor person if the person shares three or more of the following with the person to whom the order was issued: new text end

new text begin (1) has one or more of the same owners, members, principals, officers, or managers; new text end

new text begin (2) performs similar work within the state of Minnesota; new text end

new text begin (3) has one or more of the same telephone or fax numbers; new text end

new text begin (4) has one or more of the same email addresses or websites; new text end

new text begin (5) employs or engages substantially the same individuals to provide or perform building construction or improvement services; new text end

new text begin (6) utilizes substantially the same vehicles, facilities, or equipment; or new text end

new text begin (7) lists or advertises substantially the same project experience and portfolio of work. new text end

new text begin (f) If a person who has engaged an individual to provide or perform building construction or improvement services that are in the course of the person's trade, business, profession, or occupation, classifies, represents, treats, reports, or discloses the individual as an independent contractor, the person shall maintain, for at least three years, and in a manner that may be readily produced to the commissioner upon demand, all the information and documentation upon which the person based the determination that the individual met all the requirements under subdivision 4, paragraph (a), at the time the individual was engaged and at the time the services were provided or performed. new text end

new text begin (g) The following damages and penalties may be imposed for a violation of this section: new text end

new text begin (1) compensatory damages to the individual the person failed to classify, represent, or treat as an employee pursuant to this section. Compensatory damages include but are not limited to the value of supplemental pay including minimum wage; overtime; shift differentials; vacation pay; sick pay; and other forms of paid time off; health insurance; life and disability insurance; retirement plans; saving plans and any other form of benefit; employer contributions to unemployment insurance; Social Security and Medicare and any costs and expenses incurred by the individual resulting from the person's failure to classify, represent, or treat the individual as an employee; new text end

new text begin (2) a penalty of up to $10,000 for each individual the person failed to classify, represent, or treat as an employee pursuant to this section; new text end

new text begin (3) a penalty of up to $10,000 for each violation of this subdivision; and new text end

new text begin (4) a penalty of $1,000 for any person who delays, obstructs, or otherwise fails to cooperate with the commissioner's investigation. Each day of delay, obstruction, or failure to cooperate constitutes a separate violation. new text end

new text begin (h) This section may be investigated and enforced under the commissioner's authority under state law. new text end

Subd. 13.

Rulemaking.

The commissioner may, in consultation with the commissioner of revenue and the commissioner of employment and economic development, adopt, amend, suspend, and repeal rules under the rulemaking provisions of chapter 14 that relate to the commissioner's responsibilities under this section. deleted text begin This subdivision is effective May 26, 2007.deleted text end

Subd. 15.

Notice and review by commissioners of revenue and employment and economic development.

When the commissioner has reason to believe that a person has violated subdivision 7, deleted text begin paragraph (b); or (c), clause (1) or (2),deleted text end the commissioner must notify the commissioner of revenue and the commissioner of employment and economic development. Upon receipt of notification from the commissioner, the commissioner of revenue must review the information returns required under section 6041A of the Internal Revenue Code. The commissioner of revenue shall also review the submitted certification that is applicable to returns audited or investigated under section 289A.35.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024, except that the amendments to subdivision 4 are effective for building construction or improvement services provided or performed on or after March 1, 2025. new text end

Sec. 9.

new text begin [181.724] INTERGOVERNMENTAL MISCLASSIFICATION ENFORCEMENT AND EDUCATION PARTNERSHIP ACT. new text end

new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin This section and section 181.725 may be cited as the "Intergovernmental Misclassification Enforcement and Education Partnership Act." new text end

new text begin Subd. 2. new text end

new text begin Policy and statement of purpose. new text end

new text begin It is the policy of the state of Minnesota to prevent employers from misclassifying workers, because employee misclassification allows an employer to illegally evade obligations under state labor, employment, and tax laws, including but not limited to the laws governing minimum wage, overtime, unemployment insurance, paid family medical leave, earned sick and safe time, workers' compensation insurance, temporary disability insurance, the payment of wages, and payroll taxes. new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section and section 181.725, the following terms have the meanings given, unless the language or context clearly indicates that a different meaning is intended. new text end

new text begin (b) "Partnership entity" means one of the following governmental entities with jurisdiction over employee misclassification in Minnesota: new text end

new text begin (1) the Department of Labor and Industry; new text end

new text begin (2) the Department of Revenue; new text end

new text begin (3) the Department of Employment and Economic Development; new text end

new text begin (4) the Department of Commerce; and new text end

new text begin (5) the attorney general in the attorney general's enforcement capacity under sections 177.45 and 181.1721. new text end

new text begin (c) "Employee misclassification" means the practice by an employer of not properly classifying workers as employees. new text end

new text begin Subd. 4. new text end

new text begin Coordination, collaboration, and information sharing. new text end

new text begin For purposes of this section, a partnership entity: new text end

new text begin (1) shall communicate with other entities to help detect and investigate instances of employee misclassification; new text end

new text begin (2) may request from, provide to, or receive from the other partnership entities data necessary for the purpose of detecting and investigating employee misclassification, unless prohibited by federal law; and new text end

new text begin (3) may collaborate with one another when investigating employee misclassification, unless prohibited by federal law. Collaboration includes but is not limited to referrals, strategic enforcement, and joint investigations by two or more partnership entities. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 10.

new text begin [181.725] INTERGOVERNMENTAL MISCLASSIFICATION ENFORCEMENT AND EDUCATION PARTNERSHIP. new text end

new text begin Subdivision 1. new text end

new text begin Composition. new text end

new text begin The Intergovernmental Misclassification Enforcement and Education Partnership is composed of the following members or their designees, who shall serve on behalf of their respective partnership entities: new text end

new text begin (1) the commissioner of labor and industry; new text end

new text begin (2) the commissioner of revenue; new text end

new text begin (3) the commissioner of employment and economic development; new text end

new text begin (4) the commissioner of commerce; and new text end

new text begin (5) the attorney general. new text end

new text begin Subd. 2. new text end

new text begin Meetings. new text end

new text begin The commissioner of labor and industry, in consultation with other members of the partnership, shall convene and lead meetings of the partnership to discuss issues related to the investigation of employee misclassification and public outreach. Members of the partnership may select a designee to attend any such meeting. Meetings must occur at least quarterly. new text end

new text begin Subd. 2a. new text end

new text begin Additional meetings. new text end

new text begin (a) In addition to regular quarterly meetings under subdivision 2, the commissioner of labor and industry, in consultation with members of the partnership, may convene and lead additional meetings for the purpose of discussing and making recommendations under subdivision 4a. new text end

new text begin (b) This subdivision expires July 31, 2025, unless a different expiration date is specified in law. new text end

new text begin Subd. 3. new text end

new text begin Roles. new text end

new text begin Each partnership entity may use the information received through its participation in the partnership to investigate employee misclassification within their relevant jurisdictions as follows: new text end

new text begin (1) the Department of Labor and Industry in its enforcement authority under chapters 176, 177, and 181; new text end

new text begin (2) the Department of Revenue in its enforcement authority under chapters 289A and 290; new text end

new text begin (3) the Department of Employment and Economic Development in its enforcement authority under chapters 268 and 268B; new text end

new text begin (4) the Department of Commerce in its enforcement authority under chapters 45, 60A, 60K, 79, and 79A; and new text end

new text begin (5) the attorney general in the attorney general's enforcement authority under sections 177.45 and 181.1721. new text end

new text begin Subd. 4. new text end

new text begin Annual presentation to the legislature. new text end

new text begin At the request of the chairs, the Intergovernmental Misclassification Enforcement and Education Partnership shall present annually to members of the house of representatives and senate committees with jurisdiction over labor. The presentation shall include information about how the partnership carried out its duties during the preceding calendar year. new text end

new text begin Subd. 4a. new text end

new text begin First presentation. new text end

new text begin (a) By March 1, 2025, the Intergovernmental Misclassification Enforcement and Education Partnership shall make its first presentation to members of the house of representatives and senate committees with jurisdiction over labor. The first presentation may be made in a form and manner determined by the partnership. In addition to providing information about how the partnership carried out its duties in its first year, the presentation shall include the following information and recommendations, including any budget requests to carry out the recommendations: new text end

new text begin (1) consider any staffing recommendations for the partnership and each partnership entity to carry out the duties and responsibilities under this section; new text end

new text begin (2) provide a summary of the industries, areas, and employers with high numbers of misclassification violations and recommendations for proactive review and enforcement efforts; new text end

new text begin (3) propose a system for making cross referrals between partnership entities; new text end

new text begin (4) identify cross-training needs and a proposed cross-training plan; and new text end

new text begin (5) propose a metric or plan for monitoring and assessing: new text end

new text begin (i) the number and severity of employee misclassification violations; and new text end

new text begin (ii) the adequacy and effectiveness of the partnership's duties related to employee misclassification, including but not limited to the partnership's efforts on education, outreach, detection, investigation, deterrence, and enforcement of employee misclassification. new text end

new text begin (b) This subdivision expires July 31, 2025, unless a different expiration date is specified in law. new text end

new text begin Subd. 5. new text end

new text begin Separation. new text end

new text begin The Intergovernmental Misclassification Enforcement and Education Partnership is not a separate agency or board and is not subject to chapter 13D. Data shared or created by the partnership entities under this section or section 181.724 are subject to chapter 13 and hold the data classification prescribed by law. new text end

new text begin Subd. 6. new text end

new text begin Duties. new text end

new text begin The Intergovernmental Misclassification Enforcement and Education Partnership shall: new text end

new text begin (1) set goals to maximize Minnesota's efforts to detect, investigate, and deter employee misclassification; new text end

new text begin (2) share information to facilitate the detection and investigation of employee misclassification; new text end

new text begin (3) develop a process or procedure that provides a person with relevant information and connects them with relevant partnership entities, regardless of which partnership entity that person contacts for assistance; new text end

new text begin (4) identify best practices in investigating employee misclassification; new text end

new text begin (5) identify resources needed for better enforcement of employee misclassification; new text end

new text begin (6) inform and educate stakeholders on rights and responsibilities related to employee misclassification; new text end

new text begin (7) serve as a unified point of contact for workers, businesses, and the public impacted by misclassification; new text end

new text begin (8) inform the public on enforcement actions taken by the partnership entities; and new text end

new text begin (9) perform other duties as necessary to: new text end

new text begin (i) increase the effectiveness of detection, investigation, enforcement, and deterrence of employee misclassification; and new text end

new text begin (ii) carry out the purposes of the partnership. new text end

new text begin Subd. 7. new text end

new text begin Public outreach. new text end

new text begin (a) The commissioner of labor and industry shall maintain on the department's website information about the Intergovernmental Misclassification Enforcement and Education Partnership, including information about how to file a complaint related to employee misclassification. new text end

new text begin (b) Each partnership entity shall maintain on its website information about worker classification laws, including requirements for employers and employees, consequences for misclassifying workers, and contact information for other partnership entities. new text end

new text begin Subd. 8. new text end

new text begin No limitation of other duties. new text end

new text begin This section does not limit the duties or authorities of a partnership entity, or any other government entity, under state law. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 11.

Minnesota Statutes 2022, section 270B.14, subdivision 17, is amended to read:

Subd. 17.

Disclosure to Department of Commerce.

new text begin (a) new text end The commissioner may disclose to the commissioner of commerce information required to administer the Uniform Disposition of Unclaimed Property Act in sections 345.31 to 345.60, including the Social Security numbers of the taxpayers whose refunds are on the report of abandoned property submitted by the commissioner to the commissioner of commerce under section 345.41. Except for data published under section 345.42, the information received that is private or nonpublic data retains its classification, and can be used by the commissioner of commerce only for the purpose of verifying that the persons claiming the refunds are the owners.

new text begin (b) The commissioner may disclose a return or return information to the commissioner of commerce under section 45.0135 to the extent necessary to investigate employer compliance with section 176.181. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 12.

Minnesota Statutes 2022, section 270B.14, is amended by adding a subdivision to read:

new text begin Subd. 23. new text end

new text begin Disclosure to the attorney general. new text end

new text begin The commissioner may disclose a return or return information to the attorney general for the purpose of determining whether a business is an employer and to the extent necessary to enforce section 177.45 or 181.1721. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 13.

Minnesota Statutes 2022, section 326B.081, subdivision 3, is amended to read:

Subd. 3.

Applicable law.

"Applicable law" means the provisions of sections new text begin 181.165, 181.722, new text end 181.723, 325E.66, 327.31 to 327.36, this chapter, and chapter 341, and all rules, orders, stipulation agreements, settlements, compliance agreements, licenses, registrations, certificates, and permits adopted, issued, or enforced by the department under sections new text begin 181.165, 181.722, new text end 181.723, 325E.66, 327.31 to 327.36, this chapter, or chapter 341.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 14.

Minnesota Statutes 2022, section 326B.081, subdivision 6, is amended to read:

Subd. 6.

Licensing order.

"Licensing order" means an order issued under section 326B.082, subdivision 12deleted text begin , paragraph (a)deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 15.

Minnesota Statutes 2022, section 326B.081, subdivision 8, is amended to read:

Subd. 8.

Stop new text begin work new text end order.

"Stop new text begin work new text end order" means an order issued under section 326B.082, subdivision 10.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2025. new text end

Sec. 16.

Minnesota Statutes 2022, section 326B.082, subdivision 1, is amended to read:

Subdivision 1.

Remedies available.

The commissioner may enforce all applicable law under this section. The commissioner may use any enforcement provision in this section, including the assessment of monetary penalties, against a person required to have a license, registration, certificate, or permit under the applicable law based on conduct that would provide grounds for action against a licensee, registrant, certificate holder, or permit holder under the applicable law. The use of an enforcement provision in this section shall not preclude the use of any other enforcement provision in this section or otherwise provided by law.new text begin The commissioner's investigation and enforcement authority under this section may be used by the commissioner in addition to or as an alternative to any other investigation and enforcement authority provided by law.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 17.

Minnesota Statutes 2022, section 326B.082, subdivision 2, is amended to read:

Subd. 2.

Access to information and property; subpoenas.

(a) In order to carry out the purposes of the applicable law, the commissioner may:

(1) administer oaths and affirmations, certify official acts, interview, question, take oral or written statements, new text begin demand data and information, new text end and take depositions;

(2) request, examine, take possession of, test, sample, measure, photograph, record, and copy any documents, apparatus, devices, equipment, or materials;

(3) at a time and place indicated by the commissioner, request persons to appear before the commissioner to give testimonynew text begin , provide data and information,new text end and produce documents, apparatus, devices, equipment, or materials;

(4) issue subpoenas to compel persons to deleted text begin appear before the commissioner todeleted text end give testimonynew text begin , provide data and information,new text end and new text begin to new text end produce documents, apparatus, devices, equipment, or materials; and

(5) with or without notice, enter without delay deleted text begin upondeleted text end new text begin and access all areas ofnew text end any property, public or private, for the purpose of taking any action authorized under this subdivision or the applicable law, including deleted text begin obtainingdeleted text end new text begin to request, examine, take possession of, test, sample, measure, photograph, record, and copy any data,new text end information, deleted text begin remedyingdeleted text end new text begin documents, apparatus, devices, equipment, or materials; to interview, question, or take oral or written statements; to remedynew text end violationsdeleted text begin ,deleted text end new text begin ;new text end or deleted text begin conductingdeleted text end new text begin to conductnew text end surveys, inspections, or investigations.

(b) Persons requested by the commissioner to give testimonynew text begin , provide data and information,new text end or produce documents, apparatus, devices, equipment, or materials shall respond within the time and in the manner specified by the commissioner. If no time to respond is specified in the request, then a response shall be submitted within 30 days of the commissioner's service of the request.

(c) Upon the refusal or anticipated refusal of a property owner, lessee, property owner's representative, or lessee's representative to permit the commissioner's entry deleted text begin ontodeleted text end new text begin and access to all areas of anynew text end property as provided in paragraph (a), the commissioner may apply for an administrative inspection order in the Ramsey County District Court or, at the commissioner's discretion, in the district court in the county in which the property is located. The commissioner may anticipate that a property owner or lessee will refuse entrynew text begin and access to all areas of a propertynew text end if the property owner, lessee, property owner's representative, or lessee's representative has refused to permit entry new text begin or access to all areas of a property new text end on a prior occasion or has informed the commissioner that entry new text begin or access to areas of a property new text end will be refused. Upon showing of administrative probable cause by the commissioner, the district court shall issue an administrative inspection order that compels the property owner or lessee to permit the commissioner to enternew text begin and be allowed access to all areas ofnew text end the property for the purposes specified in paragraph (a).

(d) Upon the application of the commissioner, a district court shall treat the failure of any person to obey a subpoena lawfully issued by the commissioner under this subdivision as a contempt of court.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 18.

Minnesota Statutes 2022, section 326B.082, subdivision 4, is amended to read:

Subd. 4.

Faxnew text begin or emailnew text end transmission.

When this section or section 326B.083 permits a request for reconsideration or request for hearing to be served by fax on the commissioner, new text begin or when the commissioner instructs that a request for reconsideration or request for hearing be served by email on the commissioner, new text end the fax new text begin or email new text end shall not exceed 15 new text begin printed new text end pages in length. The request shall be considered timely served if the fax new text begin or email new text end is received by the commissioner, at the fax numbernew text begin or email addressnew text end identified by the commissioner in the order or notice of violation, no later than 4:30 p.m. central time on the last day permitted for faxing new text begin or emailing new text end the request. Where the quality or authenticity of the faxednew text begin or emailednew text end request is at issue, the commissioner may require the original request to be filed. Where the commissioner has not identified quality or authenticity of the faxed new text begin or emailed new text end request as an issue and the request has been faxed new text begin or emailed new text end in accordance with this subdivision, the person faxing new text begin or emailing new text end the request does not need to file the original request with the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 19.

Minnesota Statutes 2022, section 326B.082, subdivision 6, is amended to read:

Subd. 6.

Notices of violation.

(a) The commissioner may issue a notice of violation to any person who the commissioner determines has committed a violation of the applicable law. The notice of violation must state a summary of the facts that constitute the violation and the applicable law violated. The notice of violation may require the person to correct the violation. If correction is required, the notice of violation must state the deadline by which the violation must be corrected.

new text begin (b) In addition to any person, a notice of violation may be issued to any individual identified in section 181.723, subdivision 7, paragraph (d). A notice of violation is effective against any successor person as defined in section 181.723, subdivision 7, paragraph (e). new text end

deleted text begin (b)deleted text end new text begin (c)new text end The commissioner shall issue the notice of violation by:

(1) serving the notice of violation on the property owner or on the person who committed the violation; or

(2) posting the notice of violation at the location where the violation occurred.

deleted text begin (c)deleted text end new text begin (d)new text end If the person to whom the commissioner has issued the notice of violation believes the notice was issued in error, then the person may request reconsideration of the parts of the notice that the person believes are in error. The request for reconsideration must be in writing and must be served on, faxed, or emailed to the commissioner at the address, fax number, or email address specified in the notice of violation by the tenth day after the commissioner issued the notice of violation. The date on which a request for reconsideration is served by mail shall be the postmark date on the envelope in which the request for reconsideration is mailed. If the person does not serve, fax, or email a written request for reconsideration or if the person's written request for reconsideration is not served on or faxed to the commissioner by the tenth day after the commissioner issued the notice of violation, the notice of violation shall become a final order of the commissioner and will not be subject to review by any court or agency. The request for reconsideration must:

(1) specify which parts of the notice of violation the person believes are in error;

(2) explain why the person believes the parts are in error; and

(3) provide documentation to support the request for reconsideration.

The commissioner shall respond in writing to requests for reconsideration made under this paragraph within 15 days after receiving the request. A request for reconsideration does not stay a requirement to correct a violation as set forth in the notice of violation. After reviewing the request for reconsideration, the commissioner may affirm, modify, or rescind the notice of violation. The commissioner's response to a request for reconsideration is final and shall not be reviewed by any court or agency.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 20.

Minnesota Statutes 2022, section 326B.082, subdivision 7, is amended to read:

Subd. 7.

Administrative orders; correction; assessment of monetary penalties.

(a) The commissioner may issue an administrative order to any person who the commissioner determines has committed a violation of the applicable law. The commissioner shall issue the administrative order by serving the administrative order on the person. The administrative order may require the person to correct the violation, may require the person to cease and desist from committing the violation, and may assess monetary new text begin damages and new text end penalties. The commissioner shall follow the procedures in section 326B.083 when issuing administrative orders. Except as provided in paragraph (b), the commissioner may issue to each person a monetary penalty of up to $10,000 for each violation of applicable law committed by the person. The commissioner may order that part or all of the monetary penalty will be forgiven if the person to whom the order is issued demonstrates to the commissioner by the 31st day after the order is issued that the person has corrected the violation or has developed a correction plan acceptable to the commissioner.

(b) The commissioner may issue an administrative order for failure to correct a violation by the deadline stated in a new text begin final notice of violation issued under subdivision 6 or a new text end final administrative order issued under paragraph (a). Each day after the deadline during which the violation remains uncorrected is a separate violation for purposes of calculating the maximum monetary penalty amount.

(c) Upon the application of the commissioner, a district court shall find the failure of any person to correct a violation as required by a new text begin final notice of violation issued under subdivision 6 or a new text end final administrative order issued by the commissioner under this subdivision as a contempt of court.

new text begin (d) In addition to any person, an administrative order may be issued to any individual identified in section 181.723, subdivision 7, paragraph (d). An administrative order shall be effective against any successor person as defined in section 181.723, subdivision 7, paragraph (e). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 21.

Minnesota Statutes 2022, section 326B.082, subdivision 10, is amended to read:

Subd. 10.

Stop new text begin work new text end orders.

(a) deleted text begin If the commissioner determines based on an inspection or investigation that a person has violated or is about to violate the applicable law,deleted text end The commissioner may issue deleted text begin to the persondeleted text end a stop new text begin work new text end order requiring deleted text begin the person to cease and desist from committing the violationdeleted text end new text begin cessation of all business operations of a person at one or more of the person's workplaces and places of business or across all of the person's workplaces and places of businessnew text end .new text begin A stop work order may only be issued to any person who the commissioner has determined, based on an inspection or investigation, has violated the applicable law, has engaged in any of the activities under subdivision 11, paragraph (b), or section 326B.701, subdivision 5, or has failed to comply with a final notice, final administrative order, or final licensing order issued by the commissioner under this section or a final order to comply issued by the commissioner under section 177.27, or to any person identified in paragraph (c).new text end

new text begin (b) The stop work order is effective upon its issuance under paragraph (e). The order remains in effect until the commissioner issues an order lifting the stop work order. The commissioner shall issue an order lifting the stop work order upon finding that the person has come into compliance with the applicable law, has come into compliance with a final order or notice of violation issued by the commissioner, has ceased and desisted from engaging in any of the activities under subdivision 11, paragraph (b), or section 326B.701, subdivision 5, and has paid any remedies, damages, penalties, and other monetary sanctions, including wages owed to employees under paragraph (j), to the satisfaction of the commissioner, or if the commissioner or appellate court modifies or vacates the order. new text end

new text begin (c) In addition to any person, a stop work order may be issued to any individual identified in section 181.723, subdivision 7, paragraph (d). The stop work order is effective against any successor person as defined in section 181.723, subdivision 7, paragraph (e). new text end

deleted text begin (b)deleted text end new text begin (d)new text end If the commissioner determines that a condition exists on real property that deleted text begin violates the applicable lawdeleted text end new text begin is the basis for issuing a stop work ordernew text end , the commissioner may new text begin also new text end issue a stop new text begin work new text end order to the owner or lessee of the real property deleted text begin to cease and desist from committing the violation and to correct the condition that is in violationdeleted text end new text begin to cease and desist from committing the violation and to correct the condition that is in violationnew text end .

deleted text begin (c)deleted text end new text begin (e)new text end The commissioner shall issue the stop work order by:

(1) serving the order on the person deleted text begin who has committed or is about to commit the violationdeleted text end ;

(2) posting the order at the location where the violation was committed deleted text begin or is about to be committeddeleted text end or at the location where the deleted text begin violatingdeleted text end condition existsnew text begin that is the basis for issuing the stop work ordernew text end ; or

(3) serving the order on any owner or lessee of the real property where the deleted text begin violating condition existsdeleted text end new text begin violations or conditions existnew text end .

deleted text begin (d)deleted text end new text begin (f)new text end A stopnew text begin worknew text end order shall:

(1) describe the act, conduct, or practice committed deleted text begin or about to be committed,deleted text end or the condition, and include a reference to the applicable law deleted text begin that the act, conduct, practice, or condition violates or would violatedeleted text end new text begin , the final order or final notice of violation, the provisions in subdivision 11, paragraph (b); the provisions in section 326B.701, subdivision 5; or liability under section 181.165, as applicablenew text end ; and

(2) provide notice that any person aggrieved by the stop new text begin work new text end order may request a hearing as provided in paragraph deleted text begin (e)deleted text end new text begin (g)new text end .

deleted text begin (e)deleted text end new text begin (g)new text end Within 30 days after the commissioner issues a stop new text begin work new text end order, any person aggrieved by the order may request an expedited hearing to review the commissioner's action. The request for hearing must be made in writing and must be served onnew text begin , emailed,new text end or faxed to the commissioner at the addressnew text begin , email address,new text end or fax number specified in the order. If the person does not request a hearing or if the person's written request for hearing is not served onnew text begin , emailed,new text end or faxed to the commissioner on or before the 30th day after the commissioner issued the stop new text begin work new text end order, the order will become a final order of the commissioner and will not be subject to review by any court or agency. The date on which a request for hearing is served by mail is the postmark date on the envelope in which the request for hearing is mailed. The hearing request must specifically state the reasons for seeking review of the order. The person who requested the hearing and the commissioner are the parties to the expedited hearing. The hearing shall be commenced within ten days after the commissioner receives the request for hearing. The hearing shall be conducted under Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by this subdivision. The administrative law judge shall issue a report containing findings of fact, conclusions of law, and a recommended order within ten days after the completion of the hearing, the receipt of late-filed exhibits, or the submission of written arguments, whichever is later. Any party aggrieved by the administrative law judge's report shall have five days after the date of the administrative law judge's report to submit written exceptions and argument to the commissioner that the commissioner shall consider and enter in the record. Within 15 days after receiving the administrative law judge's report, the commissioner shall issue an order vacating, modifying, or making permanent the stopnew text begin worknew text end order. The commissioner and the person requesting the hearing may by agreement lengthen any time periods described in this paragraph. The Office of Administrative Hearings may, in consultation with the agency, adopt rules specifically applicable to cases under this subdivision.

deleted text begin (f)deleted text end new text begin (h)new text end A stop new text begin work new text end order issued under this subdivision deleted text begin shall bedeleted text end new text begin isnew text end in effect until it is new text begin lifted by the commissioner under paragraph (b) or is new text end modified or vacated by the commissioner or an appellate courtnew text begin under paragraph (b)new text end . The administrative hearing provided by this subdivision and any appellate judicial review as provided in chapter 14 shall constitute the exclusive remedy for any person aggrieved by a stop order.

new text begin (i) The commissioner may assess a civil penalty of $5,000 per day against a person for each day the person conducts business operations that are in violation of a stop work order issued under this section. new text end

new text begin (j) Once a stop work order becomes final, any of the person's employees affected by a stop work order issued pursuant to this subdivision shall be entitled to average daily earnings from the person for up to the first ten days of work lost by the employee because of the issuance of a stop work order. Lifting of a stop work order may be conditioned on payment of wages to employees. The commissioner may issue an order to comply under section 177.27 to obtain payment from persons liable for the payment of wages owed to the employees under this section. new text end

deleted text begin (g)deleted text end new text begin (k)new text end Upon the application of the commissioner, a district court shall find the failure of any person to comply with a final stop new text begin work new text end order lawfully issued by the commissioner under this subdivision as a contempt of court.

new text begin (l) Notwithstanding section 13.39, the data in a stop work order issued under this subdivision are classified as public data after the commissioner has issued the order. new text end

new text begin (m) When determining the appropriateness and extent of a stop work order the commissioner shall consider the factors set forth in section 14.045, subdivision 3. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2025. new text end

Sec. 22.

Minnesota Statutes 2022, section 326B.082, subdivision 11, is amended to read:

Subd. 11.

Licensing orders; grounds; reapplication.

(a) The commissioner may deny an application for a permit, license, registration, or certificate if the applicant does not meet or fails to maintain the minimum qualifications for holding the permit, license, registration, or certificate, or has any unresolved violations deleted text begin ordeleted text end new text begin ,new text end unpaid feesnew text begin ,new text end or monetary new text begin damages or new text end penalties related to the activity for which the permit, license, registration, or certificate has been applied for or was issued.

(b) The commissioner may deny, suspend, limit, place conditions on, or revoke a person's permit, license, registration, or certificate, or censure the person holding or acting as qualifying person for the permit, license, registration, or certificate, if the commissioner finds that the person:

(1) committed one or more violations of the applicable law;

new text begin (2) committed one or more violations of chapter 176, 177, 181, 181A, 182, 268, 270C, or 363A; new text end

deleted text begin (2)deleted text end new text begin (3)new text end submitted false or misleading information to deleted text begin thedeleted text end new text begin anynew text end statenew text begin agencynew text end in connection with activities for which the permit, license, registration, or certificate was issued, or in connection with the application for the permit, license, registration, or certificate;

deleted text begin (3)deleted text end new text begin (4)new text end allowed the alteration or use of the person's own permit, license, registration, or certificate by another person;

deleted text begin (4)deleted text end new text begin (5)new text end within the previous five years, was convicted of a crime in connection with activities for which the permit, license, registration, or certificate was issued;

deleted text begin (5)deleted text end new text begin (6)new text end violated: (i) a final administrative order issued under subdivision 7, (ii) a final stop new text begin work new text end order issued under subdivision 10, (iii) injunctive relief issued under subdivision 9, or (iv) a consent ordernew text begin , order to comply,new text end ornew text begin othernew text end final order deleted text begin ofdeleted text end new text begin issued bynew text end the commissionernew text begin or the commissioner of human rights, employment and economic development, or revenuenew text end ;

deleted text begin (6)deleted text end new text begin (7) delayed, obstructed, or otherwisenew text end failed to cooperate with a commissioner's new text begin investigation, including a new text end request to give testimony, new text begin to provide data and information, new text end to produce documents, things, apparatus, devices, equipment, or materials, or to new text begin enter and new text end access new text begin all areas of any new text end property deleted text begin under subdivision 2deleted text end ;

deleted text begin (7)deleted text end new text begin (8)new text end retaliated in any manner against any employee or person who new text begin makes a complaint, new text end is questioned by, cooperates with, or provides information to the commissioner deleted text begin or an employee or agent authorized by the commissioner who seeks access to property or things under subdivision 2deleted text end ;

deleted text begin (8)deleted text end new text begin (9)new text end engaged in any fraudulent, deceptive, or dishonest act or practice; or

deleted text begin (9)deleted text end new text begin (10)new text end performed work in connection with the permit, license, registration, or certificate or conducted the person's affairs in a manner that demonstrates incompetence, untrustworthiness, or financial irresponsibility.

new text begin (c) In addition to any person, a licensing order may be issued to any individual identified in section 181.723, subdivision 7, paragraph (d). A licensing order is effective against any successor person as defined in section 181.723, subdivision 7, paragraph (e). new text end

deleted text begin (c)deleted text end new text begin (d)new text end If the commissioner revokes or denies a person's permit, license, registration, or certificate under paragraph (b), the person is prohibited from reapplying for the same type of permit, license, registration, or certificate for at least two years after the effective date of the revocation or denial. The commissioner may, as a condition of reapplication, require the person to obtain a bond or comply with additional reasonable conditions the commissioner considers necessary to protect the publicnew text begin , including but not limited to demonstration of current and ongoing compliance with the laws the violation of which were the basis for revoking or denying the person's permit, license, registration, or certificate under paragraph (b) or that the person has ceased and desisted in engaging in activities under paragraph (b) that were the basis for revoking or denying the person's permit, license, registration, or certificate under paragraph (b)new text end .

deleted text begin (d)deleted text end new text begin (e)new text end If a permit, license, registration, or certificate expires, or is surrendered, withdrawn, or terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding under this subdivision within two years after the permit, license, registration, or certificate was last effective and enter a revocation or suspension order as of the last date on which the permit, license, registration, or certificate was in effect.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 23.

Minnesota Statutes 2022, section 326B.082, subdivision 13, is amended to read:

Subd. 13.

Summary suspension.

In any case where the commissioner has issued an order to revoke, suspend, or deny a license, registration, certificate, or permit under subdivisions 11, paragraph (b), and 12, the commissioner may summarily suspend the person's permit, license, registration, or certificate before the order becomes final. The commissioner shall issue a summary suspension order when the safety of life or property is threatened or to prevent the commission of fraudulent, deceptive, untrustworthy, or dishonest acts against the publicnew text begin , including but not limited to violations of section 181.723, subdivision 7new text end . The summary suspension shall not affect the deadline for submitting a request for hearing under subdivision 12. If the commissioner summarily suspends a person's permit, license, registration, or certificate, a timely request for hearing submitted under subdivision 12 shall also be considered a timely request for hearing on continuation of the summary suspension. If the commissioner summarily suspends a person's permit, license, registration, or certificate under this subdivision and the person submits a timely request for a hearing, then a hearing on continuation of the summary suspension must be held within ten days after the commissioner receives the request for hearing unless the parties agree to a later date.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 24.

Minnesota Statutes 2022, section 326B.082, is amended by adding a subdivision to read:

new text begin Subd. 16a. new text end

new text begin Additional penalties and damages. new text end

new text begin Any person who delays, obstructs, or otherwise fails to cooperate with the commissioner's investigation may be issued a penalty of $1,000. Each day of delay, obstruction, or failure to cooperate shall constitute a separate violation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 25.

Minnesota Statutes 2022, section 326B.701, is amended to read:

326B.701 CONSTRUCTION CONTRACTOR REGISTRATION.

Subdivision 1.

Definitions.

The following definitions apply to this section:

new text begin (a) "Building construction or improvement services" means public or private sector commercial or residential building construction or improvement services. new text end

deleted text begin (a)deleted text end new text begin (b)new text end "Business entity" means a person deleted text begin other than an individual or a sole proprietordeleted text end new text begin as that term is defined in paragraph (h), except the term does not include an individualnew text end .

new text begin (c) "Commissioner" means the commissioner of labor and industry or a duly designated representative of the commissioner who is either an employee of the Department of Labor and Industry or person working under contract with the Department of Labor and Industry. new text end

new text begin (d) "Day" means calendar day unless otherwise provided. new text end

new text begin (e) "Department" means the Department of Labor and Industry. new text end

deleted text begin (b)deleted text end new text begin (f)new text end "Document" or "documents" includes papers; books; records; memoranda; data; contracts; drawings; graphs; charts; photographs; digital, video, and audio recordings; records; accounts; files; statements; letters; emails; invoices; bills; notes; and calendars maintained in any form or manner.

new text begin (g) "Individual" means a human being. new text end

new text begin (h) "Person" means any individual, sole proprietor, limited liability company, limited liability partnership, corporation, partnership, incorporated or unincorporated association, joint stock company, or any other legal or commercial entity. new text end

Subd. 2.

Applicability; registration requirement.

deleted text begin (a) Persons who perform public or private sector commercial or residential building construction or improvement services as described in subdivision 2 must register with the commissioner as provided in this section. The purpose of registration is to assist the Department of Labor and Industry, the Department of Employment and Economic Development, and the Department of Revenue to enforce laws related to misclassification of employees. deleted text end

deleted text begin (b)deleted text end new text begin (a)new text end Except as provided in paragraph deleted text begin (c)deleted text end new text begin (b)new text end , any person who new text begin provides or new text end performs new text begin building new text end construction new text begin or improvement new text end services in the state deleted text begin on or after September 15, 2012,deleted text end new text begin of Minnesotanew text end must register with the commissioner as provided in this section before new text begin providing or new text end performing new text begin building new text end construction new text begin or improvement new text end services deleted text begin for another persondeleted text end . The requirements for registration under this section are not a substitute for, and do not relieve a person from complying with, any other law requiring that the person be licensed, registered, or certified.

deleted text begin (c)deleted text end new text begin (b)new text end The registration requirements in this section do not apply to:

(1) a person who, at the time the person is new text begin providing or new text end performing thenew text begin buildingnew text end construction new text begin or improvement new text end services, holds a current license, certificate, or registration under chapter 299M or 326B;

deleted text begin (2) a person who holds a current independent contractor exemption certificate issued under this section that is in effect on September 15, 2012, except that the person must register under this section no later than the date the exemption certificate expires, is revoked, or is canceled; deleted text end

deleted text begin (3)deleted text end new text begin (2)new text end a person who has given a bond to the state under section 326B.197 or 326B.46;

deleted text begin (4)deleted text end new text begin (3)new text end an employee of the person new text begin providing or new text end performing thenew text begin buildingnew text end construction new text begin or improvement new text end servicesdeleted text begin , if the person was in compliance with laws related to employment of the individual at the time the construction services were performeddeleted text end ;

deleted text begin (5)deleted text end new text begin (4)new text end an architect or professional engineer engaging in professional practice as defined in section 326.02, subdivisions 2 and 3;

deleted text begin (6)deleted text end new text begin (5)new text end a school district or technical college governed under chapter 136F;

deleted text begin (7)deleted text end new text begin (6)new text end a person providing new text begin or performing building new text end construction new text begin or improvement new text end services on a volunteer basis, including but not limited to Habitat for Humanity and Builders Outreach Foundation, and their individual volunteers when engaged in activities on their behalf; or

deleted text begin (8)deleted text end new text begin (7)new text end a person exempt from licensing under section 326B.805, subdivision 6, clause deleted text begin (5)deleted text end new text begin (4)new text end .

Subd. 3.

Registration application.

(a) Persons required to register under this section must submit electronically, in the manner prescribed by the commissioner, a complete application according to deleted text begin paragraphs (b) to (d)deleted text end new text begin this subdivisionnew text end .

(b) A complete application must include all of the following information new text begin and documentation new text end about deleted text begin any individual who is registering as an individual or a sole proprietor, or who owns 25 percent or more of a business entity being registereddeleted text end new text begin the person who is applying for a registrationnew text end :

(1) the deleted text begin individual's fulldeleted text end new text begin person'snew text end legal name deleted text begin and title at the applicant's businessdeleted text end ;

new text begin (2) the person's assumed names filed with the secretary of state, if applicable; new text end

deleted text begin (2)deleted text end new text begin (3)new text end the deleted text begin individual's business address anddeleted text end new text begin person'snew text end telephone number;

deleted text begin (3) the percentage of the applicant's business owned by the individual; and deleted text end

deleted text begin (4) the individual's Social Security number. deleted text end

deleted text begin (c) A complete application must also include the following information: deleted text end

deleted text begin (1) the applicant's legal name; assumed name filed with the secretary of state, if any; designated business address; physical address; telephone number; and email address; deleted text end

deleted text begin (2) the applicant's Minnesota tax identification number, if one is required or has been issued; deleted text end

deleted text begin (3) the applicant's federal employer identification number, if one is required or has been issued; deleted text end

deleted text begin (4) evidence of the active status of the applicant's business filings with the secretary of state, if one is required or has been issued; deleted text end

deleted text begin (5) whether the applicant has any employees at the time the application is filed; deleted text end

deleted text begin (6) the names of all other persons with an ownership interest in the business entity who are not identified in paragraph (b), and the percentage of the interest owned by each person, except that the names of shareholders with less than ten percent ownership in a publicly traded corporation need not be provided; deleted text end

deleted text begin (7) information documenting compliance with workers' compensation and unemployment insurance laws; deleted text end

new text begin (4) the person's email address; new text end

new text begin (5) the person's business address; new text end

new text begin (6) the person's physical address, if different from the business address; new text end

new text begin (7) the legal name, telephone number, and email address of the person's registered agent, if applicable, and the registered agent's business address and physical address, if different from the business address; new text end

new text begin (8) the jurisdiction in which the person is organized, if that jurisdiction is not in Minnesota, as applicable; new text end

new text begin (9) the legal name of the person in the jurisdiction in which it is organized, if the legal name is different than the legal name provided in clause (1), as applicable; new text end

new text begin (10) all of the following identification numbers, if all of these identification numbers have been issued to the person. A complete application must include at least one of the following identification numbers: new text end

new text begin (i) the person's Social Security number; new text end

new text begin (ii) the person's Minnesota tax identification number; or new text end

new text begin (iii) the person's federal employer identification number; new text end

new text begin (11) evidence of the active status of the person's business filings with the secretary of state, if applicable; new text end

new text begin (12) whether the person has any employees at the time the application is filed, and if so, how many employees the person employs; new text end

new text begin (13) the legal names of all persons with an ownership interest in the business entity, if applicable, and the percentage of the interest owned by each person, except that the names of shareholders with less than ten percent ownership in a publicly traded corporation need not be provided; new text end

new text begin (14) information documenting the person's compliance with workers' compensation and unemployment insurance laws for the person's employees, if applicable; new text end

new text begin (15) whether the person or any persons with an ownership interest in the business entity as disclosed under clause (13) have been issued a notice of violation, administrative order, licensing order, or order to comply by the Department of Labor and Industry in the last ten years; new text end

deleted text begin (8)deleted text end new text begin (16)new text end a certification that the deleted text begin persondeleted text end new text begin individualnew text end signing the application has: reviewed it; deleted text begin determineddeleted text end new text begin assertsnew text end that the information new text begin and documentation new text end provided is true and accurate; and deleted text begin determineddeleted text end that the deleted text begin person signingdeleted text end new text begin individualnew text end is authorized to sign and file the application as an agent new text begin or authorized representative new text end of the deleted text begin applicantdeleted text end new text begin personnew text end . The name of the deleted text begin persondeleted text end new text begin individualnew text end signing, entered on an electronic application, shall constitute a valid signature of the agent new text begin or authorized representative new text end on behalf of the deleted text begin applicantdeleted text end new text begin personnew text end ; and

deleted text begin (9)deleted text end new text begin (17)new text end a signed authorization for the Department of Labor and Industry to verify the information new text begin and documentation new text end provided on or with the application.

deleted text begin (d)deleted text end new text begin (c)new text end A registered person must notify the commissioner within 15 days after there is a change in any of the information on the application as approved. This notification must be provided electronically in the manner prescribed by the commissioner. However, if the deleted text begin business entitydeleted text end structure or legal form of the business entity has changed, the person must submit a new registration application deleted text begin and registration fee, if any, for the new business entitydeleted text end .

deleted text begin (e) The registereddeleted text end new text begin (d) Anew text end person must deleted text begin remain registereddeleted text end new text begin maintain a current and up-to-date registrationnew text end while providing new text begin or performing building new text end construction new text begin or improvement new text end services deleted text begin for another persondeleted text end . The provisions of sections 326B.091, 326B.094, 326B.095, and 326B.097 apply to this section. deleted text begin A person with an expired registration shall not provide construction services for another person if registration is required under this section.deleted text end Registration application and expiration time frames are as follows:

deleted text begin (1) all registrations issued on or before December 31, 2015, expire on December 31, 2015; deleted text end

deleted text begin (2)deleted text end new text begin (1)new text end all registrations issued after December 31, 2015, expire on the following December 31 of each odd-numbered year; and

deleted text begin (3)deleted text end new text begin (2)new text end a person may submit a deleted text begin registration ordeleted text end renewal application starting October 1 of the year the registration expires. If a renewal application is submitted later than December 1 of the expiration year,new text begin thenew text end registration may expire before the department has issued or denied the deleted text begin registrationdeleted text end new text begin renewalnew text end .

Subd. 4.

Website.

(a) The commissioner shall develop and maintain a website on which deleted text begin applicants for registrationdeleted text end new text begin personsnew text end can submit a registrationnew text begin or renewalnew text end application. The website shall be designed to receive and process deleted text begin registrationdeleted text end applications and promptly issue registration certificates electronically to successful applicants.

(b) The commissioner shall maintain deleted text begin the certificates of registration on the department's official public website, which shall includedeleted text end the following informationnew text begin on the department's official public websitenew text end :

(1) the registered person's legal deleted text begin businessdeleted text end name, including any assumed namedeleted text begin , asdeleted text end filed with the secretary of state;

new text begin (2) the legal names of the persons with an ownership interest in the business entity; new text end

deleted text begin (2)deleted text end new text begin (3)new text end the new text begin registered new text end person's business address deleted text begin designateddeleted text end new text begin and physical address, if different from the business address, providednew text end on the application; and

deleted text begin (3)deleted text end new text begin (4)new text end the effective date of the registration and the expiration date.

Subd. 5.

Prohibited activities related to registration.

(a) The prohibited activities in this subdivision are in addition to those prohibited in deleted text begin sections 326B.081 to 326B.085deleted text end new text begin section 326B.082, subdivision 11new text end .

(b) A person who provides new text begin or performs building new text end construction new text begin or improvement new text end services deleted text begin in the course of the person's trade, business, occupation, or professiondeleted text end shall not:

(1) deleted text begin contract withdeleted text end new text begin providenew text end or perform new text begin building new text end construction new text begin or improvement new text end services deleted text begin for another persondeleted text end without deleted text begin firstdeleted text end being registerednew text begin ,new text end if required deleted text begin bydeleted text end new text begin to be registered undernew text end this section;

new text begin (2) require an individual who is the person's employee to register; or new text end

deleted text begin (2) contract with or paydeleted text end new text begin (3) engagenew text end another person tonew text begin provide ornew text end perform new text begin building new text end construction new text begin or improvement new text end services if the other person is new text begin required to be registered under this section and is new text end not registered deleted text begin if required by subdivision 2. All payments to an unregistered person for construction services on a single project site shall be considered a single violationdeleted text end . It is not a violation of this clause:

(i) for a person to deleted text begin contract with or paydeleted text end new text begin have engagednew text end an unregistered person if the unregistered person deleted text begin was registered at the time the contract for construction services was entered intodeleted text end new text begin held a current registration on the date they began providing or performing the building construction or improvement servicesnew text end ; or

(ii) for a homeowner or business to deleted text begin contract with or paydeleted text end new text begin engagenew text end an unregistered person if the homeowner or business is not in the trade, business, profession, or occupation of performing building construction or improvement servicesdeleted text begin ; ordeleted text end new text begin .new text end

deleted text begin (3) be penalized for violations of this subdivision that are committed by another person. This clause applies only to violations of this paragraph. deleted text end

new text begin (c) Each day a person who is required to be registered provides or performs building construction or improvement services while unregistered shall be considered a separate violation. new text end

Subd. 6.

new text begin Investigation and new text end enforcement; remedies; and penalties.

deleted text begin (a) Notwithstanding the maximum penalty amount in section 326B.082, subdivisions 7 and 12, the maximum penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if the person registers within 30 days of the date of the penalty order. deleted text end

deleted text begin (b) The penalty for contracting with or paying an unregistered person to perform construction services in violation of subdivision 5, paragraph (b), clause (2), shall be as provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive the penalty for the first violation. deleted text end

new text begin The commissioner may investigate and enforce this section under the authority in chapters 177 and 326B. new text end

deleted text begin Subd. 7. deleted text end

deleted text begin Notice requirement. deleted text end

deleted text begin Notice of a penalty order for failure to register must include a statement that the penalty shall be forgiven if the person registers within 30 days of the date of the penalty order. deleted text end

Subd. 8.

Data classified.

Data in applications and any required documentation submitted to the commissioner under this section are private data on individuals or nonpublic data as defined in section 13.02deleted text begin . Data in registration certificates issued by the commissioner are public data;deleted text end except deleted text begin thatdeleted text end new text begin for thenew text end registration information published on the department's website deleted text begin may be accessed for registration verification purposes onlydeleted text end . Data that document a new text begin suspension, new text end revocationnew text begin ,new text end or cancellation of a deleted text begin certificatedeleted text end new text begin registrationnew text end are public data. deleted text begin Upon request ofdeleted text end new text begin Notwithstanding its classification as private data on individuals or nonpublic data, data in applications and any required documentation submitted to the commissioner under this section may be used by the commissioner to investigate and take enforcement action related to laws for which the commissioner has enforcement responsibility and the commissioner may share data and documentation withnew text end the Department of Revenuenew text begin , the Department of Commerce, the Department of Human Rights,new text end or the Department of Employment and Economic Developmentdeleted text begin ,deleted text end new text begin .new text end The commissioner may release to the deleted text begin requesting departmentdeleted text end new text begin departmentsnew text end data classified as private or nonpublic under this subdivision or investigative data that are not public under section 13.39 that relate to deleted text begin the issuance or denial of applications or revocations of certificatesdeleted text end new text begin prohibited activities under this section and section 181.723new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

ARTICLE 11

EARNED SICK AND SAFE TIME MODIFICATIONS

Section 1.

Minnesota Statutes 2023 Supplement, section 177.27, subdivision 4, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an employer to comply with sections 177.21 to 177.435, new text begin 177.50, new text end 179.86, 181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.165, 181.172, paragraph (a) or (d), 181.214 to 181.217, 181.275, subdivision 2a, 181.635, 181.722, 181.79, 181.85 to 181.89, 181.939 to 181.943, 181.9445 to 181.9448, 181.987, 181.991, 268B.09, subdivisions 1 to 6, and 268B.14, subdivision 3, with any rule promulgated under section 177.28, 181.213, or 181.215. The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435, 181.165, or 181.987 if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435, 181.165, or 181.987 and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435. The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69 or 181.165. If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner. For the purposes of this subdivision, an employer includes a contractor that has assumed a subcontractor's liability within the meaning of section 181.165.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 177.50, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Rulemaking authority. new text end

new text begin The commissioner may adopt rules to carry out the purposes of this section and sections 181.9445 to 181.9448. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 177.50, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Remedies. new text end

new text begin (a) If an employer does not provide earned sick and safe time pursuant to section 181.9446, or does not allow the use of earned sick and safe time pursuant to section 181.9447, the employer is liable to all employees who were not provided or not allowed to use earned sick and safe time for an amount equal to all earned sick and safe time that should have been provided or could have been used, plus an additional equal amount as liquidated damages. new text end

new text begin (b) If the employer does not possess records sufficient to determine the earned sick and safe time an employee should have been provided pursuant to paragraph (a), the employer is liable to the employee for an amount equal to 48 hours of earned sick and safe time for each year earned sick and safe time was not provided, plus an additional equal amount as liquidated damages. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 181.032, is amended to read:

181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER; NOTICE TO EMPLOYEE.

(a) At the end of each pay period, the employer shall provide each employee an earnings statement, either in writing or by electronic means, covering that pay period. An employer who chooses to provide an earnings statement by electronic means must provide employee access to an employer-owned computer during an employee's regular working hours to review and print earnings statements, and must make statements available for review or printing for a period of three years.

(b) The earnings statement may be in any form determined by the employer but must include:

(1) the name of the employee;

(2) the rate or rates of pay and basis thereof, including whether the employee is paid by hour, shift, day, week, salary, piece, commission, or other method;

(3) allowances, if any, claimed pursuant to permitted meals and lodging;

(4) the total number of hours worked by the employee unless exempt from chapter 177;

deleted text begin (5) the total number of earned sick and safe time hours accrued and available for use under section 181.9446; deleted text end

deleted text begin (6) the total number of earned sick and safe time hours used during the pay period under section 181.9447; deleted text end

deleted text begin (7)deleted text end new text begin (5)new text end the total amount of gross pay earned by the employee during that period;

deleted text begin (8)deleted text end new text begin (6)new text end a list of deductions made from the employee's pay;

deleted text begin (9)deleted text end new text begin (7)new text end any amount deducted by the employer under section 268B.14, subdivision 3, and the amount paid by the employer based on the employee's wages under section 268B.14, subdivision 1;

deleted text begin (10)deleted text end new text begin (8)new text end the net amount of pay after all deductions are made;

deleted text begin (11)deleted text end new text begin (9)new text end the date on which the pay period ends;

deleted text begin (12)deleted text end new text begin (10)new text end the legal name of the employer and the operating name of the employer if different from the legal name;

deleted text begin (13)deleted text end new text begin (11)new text end the physical address of the employer's main office or principal place of business, and a mailing address if different; and

deleted text begin (14)deleted text end new text begin (12)new text end the telephone number of the employer.

(c) An employer must provide earnings statements to an employee in writing, rather than by electronic means, if the employer has received at least 24 hours notice from an employee that the employee would like to receive earnings statements in written form. Once an employer has received notice from an employee that the employee would like to receive earnings statements in written form, the employer must comply with that request on an ongoing basis.

(d) At the start of employment, an employer shall provide each employee a written notice containing the following information:

(1) the rate or rates of pay and basis thereof, including whether the employee is paid by the hour, shift, day, week, salary, piece, commission, or other method, and the specific application of any additional rates;

(2) allowances, if any, claimed pursuant to permitted meals and lodging;

(3) paid vacation, sick time, or other paid time-off accruals and terms of use;

(4) the employee's employment status and whether the employee is exempt from minimum wage, overtime, and other provisions of chapter 177, and on what basis;

(5) a list of deductions that may be made from the employee's pay;

(6) the number of days in the pay period, the regularly scheduled pay day, and the pay day on which the employee will receive the first payment of wages earned;

(7) the legal name of the employer and the operating name of the employer if different from the legal name;

(8) the physical address of the employer's main office or principal place of business, and a mailing address if different; and

(9) the telephone number of the employer.

(e) The employer must keep a copy of the notice under paragraph (d) signed by each employee acknowledging receipt of the notice. The notice must be provided to each employee in English. The English version of the notice must include text provided by the commissioner that informs employees that they may request, by indicating on the form, the notice be provided in a particular language. If requested, the employer shall provide the notice in the language requested by the employee. The commissioner shall make available to employers the text to be included in the English version of the notice required by this section and assist employers with translation of the notice in the languages requested by their employees.

(f) An employer must provide the employee any written changes to the information contained in the notice under paragraph (d) prior to the date the changes take effect.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 181.9445, subdivision 4, is amended to read:

Subd. 4.

Earned sick and safe time.

"Earned sick and safe time" means leave, including paid time off and other paid leave systems, that is paid at the same deleted text begin hourlydeleted text end new text begin basenew text end rate as an employee earns from employment that may be used for the same purposes and under the same conditions as provided under section 181.9447, but in no case shall this deleted text begin hourlydeleted text end new text begin basenew text end rate be less than that provided under section 177.24 or an applicable local minimum wage.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 181.9445, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Base rate. new text end

new text begin "Base rate" means: new text end

new text begin (1) for employees paid on an hourly basis, the same rate received per hour of work; new text end

new text begin (2) for employees paid on an hourly basis who receive multiple hourly rates, the rate the employee would have been paid for the period of time in which leave was taken; new text end

new text begin (3) for employees paid on a salary basis, the same rate guaranteed to the employee as if the employee had not taken the leave; and new text end

new text begin (4) for employees paid solely on a commission, piecework, or any basis other than hourly or salary, a rate no less than the applicable local, state, or federal minimum wage, whichever is greater. new text end

new text begin For purposes of this section and section 181.9446, base rate does not include commissions; shift differentials that are in addition to an hourly rate; premium payments for overtime work; premium payments for work on Saturdays, Sundays, holidays, or scheduled days off; bonuses; or gratuities as defined by section 177.23. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 7.

Minnesota Statutes 2023 Supplement, section 181.9445, subdivision 5, is amended to read:

Subd. 5.

Employee.

"Employee" means any person who is employed by an employer, including temporary and part-time employees, who deleted text begin performsdeleted text end new text begin is anticipated by the employer to performnew text end work for at least 80 hours in a year for that employer in Minnesota. Employee does not include:

(1) an independent contractor; deleted text begin ordeleted text end

new text begin (2) an individual who is a volunteer firefighter or paid on-call firefighter, with a department charged with the prevention or suppression of fires within the boundaries of the state; is a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or is an ambulance service personnel as defined in section 144E.001, subdivision 3a, who serves in a paid on-call position; new text end

new text begin (3) an individual who is an elected official or a person who is appointed to fill a vacancy in an elected office as part of a legislative or governing body of Minnesota or a political subdivision; or new text end

new text begin (4) an individual employed by a farmer, family farm, or a family farm corporation to provide physical labor on or management of a farm if the farmer, family farm, or family farm corporation employs the individual to perform work for 28 days or less each year. new text end

deleted text begin (2) an individual employed by an air carrier as a flight deck or cabin crew member who: deleted text end

deleted text begin (i) is subject to United States Code, title 45, sections 181 to 188; deleted text end

deleted text begin (ii) works less than a majority of their hours in Minnesota in a calendar year; and deleted text end

deleted text begin (iii) is provided with paid leave equal to or exceeding the amounts in section deleted text end deleted text begin 181.9446 deleted text end deleted text begin . deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 8.

Minnesota Statutes 2023 Supplement, section 181.9446, is amended to read:

181.9446 ACCRUAL OF EARNED SICK AND SAFE TIME.

(a) An employee accrues a minimum of one hour of earned sick and safe time for every 30 hours worked up to a maximum of 48 hours of earned sick and safe time in a year. Employees may not accrue more than 48 hours of earned sick and safe time in a year unless the employer agrees to a higher amount.

(b)(1) Except as provided in clause (2), employers must permit an employee to carry over accrued but unused sick and safe time into the following year. The total amount of accrued but unused earned sick and safe time for an employee must not exceed 80 hours at any time, unless an employer agrees to a higher amount.

(2) In lieu of permitting the carryover of accrued but unused sick and safe time into the following year as provided under clause (1), an employer may provide an employee with earned sick and safe time for the year that meets or exceeds the requirements of this section that is available for the employee's immediate use at the beginning of the subsequent year as follows: (i) 48 hours, if an employer pays an employee for accrued but unused sick and safe time at the end of a year at the same deleted text begin hourlydeleted text end new text begin basenew text end rate as an employee earns from employmentnew text begin and in no case at a rate less than that provided under section 177.24 or an applicable local minimum wagenew text end ; or (ii) 80 hours, if an employer does not pay an employee for accrued but unused sick and safe time at the end of a year deleted text begin at the same or greater hourly rate as an employee earns from employment. In no case shall this hourly rate be less than that provided under section 177.24, or an applicable local minimum wagedeleted text end .

(c) Employees who are exempt from overtime requirements under United States Code, title 29, section 213(a)(1), as amended through January 1, 2024, are deemed to work 40 hours in each workweek for purposes of accruing earned sick and safe time, except that an employee whose normal workweek is less than 40 hours will accrue earned sick and safe time based on the normal workweek.

(d) Earned sick and safe time under this section begins to accrue at the commencement of employment of the employee.

(e) Employees may use earned sick and safe time as it is accrued.

Sec. 9.

Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 1, is amended to read:

Subdivision 1.

Eligible use.

An employee may use accrued earned sick and safe time for:

(1) an employee's:

(i) mental or physical illness, injury, or other health condition;

(ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; deleted text begin ordeleted text end

(iii) need for preventive medical or health care;new text begin ornew text end

new text begin (iv) need to make arrangements for or attend funeral services or a memorial, or address financial or legal matters that arise after the death of a family member; new text end

(2) care of a family member:

(i) with a mental or physical illness, injury, or other health condition;

(ii) who needs medical diagnosis, care, or treatment of a mental or physical illness, injury, or other health condition; or

(iii) who needs preventive medical or health care;

(3) absence due to domestic abuse, sexual assault, or stalking of the employee or employee's family member, provided the absence is to:

(i) seek medical attention related to physical or psychological injury or disability caused by domestic abuse, sexual assault, or stalking;

(ii) obtain services from a victim services organization;

(iii) obtain psychological or other counseling;

(iv) seek relocation or take steps to secure an existing home due to domestic abuse, sexual assault, or stalking; or

(v) seek legal advice or take legal action, including preparing for or participating in any civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, or stalking;

(4) closure of the employee's place of business due to weather or other public emergency or an employee's need to care for a family member whose school or place of care has been closed due to weather or other public emergency;

(5) the employee's inability to work or telework because the employee is: (i) prohibited from working by the employer due to health concerns related to the potential transmission of a communicable illness related to a public emergency; or (ii) seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of, a communicable disease related to a public emergency and such employee has been exposed to a communicable disease or the employee's employer has requested a test or diagnosis; and

(6) when it has been determined by the health authorities having jurisdiction or by a health care professional that the presence of the employee or family member of the employee in the community would jeopardize the health of others because of the exposure of the employee or family member of the employee to a communicable disease, whether or not the employee or family member has actually contracted the communicable disease.

For the purposes of this subdivision, a public emergency shall include a declared emergency as defined in section 12.03 or a declared local emergency under section 12.29.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 10.

Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 3, is amended to read:

Subd. 3.

Documentation.

(a) When an employee uses earned sick and safe time for more than three consecutive new text begin scheduled work new text end days, an employer may require reasonable documentation that the earned sick and safe time is covered by subdivision 1.

(b) For earned sick and safe time under subdivision 1, clauses (1), (2), (5), and (6), reasonable documentation may include a signed statement by a health care professional indicating the need for use of earned sick and safe time. However, if the employee or employee's family member did not receive services from a health care professional, or if documentation cannot be obtained from a health care professional in a reasonable time or without added expense, then reasonable documentation for the purposes of this paragraph may include a written statement from the employee indicating that the employee is using or used earned sick and safe time for a qualifying purpose covered by subdivision 1, clause (1), (2), (5), or (6).

(c) For earned sick and safe time under subdivision 1, clause (3), an employer must accept a court record or documentation signed by a volunteer or employee of a victims services organization, an attorney, a police officer, or an antiviolence counselor as reasonable documentation.new text begin If documentation cannot be obtained in a reasonable time or without added expense, then reasonable documentation for the purposes of this paragraph may include a written statement from the employee indicating that the employee is using or used earned sick and safe time for a qualifying purpose covered under subdivision 1, clause (3).new text end

(d) For earned sick and safe time to care for a family member under subdivision 1, clause (4), an employer must accept as reasonable documentation a written statement from the employee indicating that the employee is using or used earned sick and safe time for a qualifying purpose as reasonable documentation.

(e) An employer must not require disclosure of details relating to domestic abuse, sexual assault, or stalking or the details of an employee's or an employee's family member's medical condition as related to an employee's request to use earned sick and safe time under this section.

(f) Written statements by an employee may be written in the employee's first language and need not be notarized or in any particular format.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 11.

Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 5, is amended to read:

Subd. 5.

Increment of time used.

Earned sick and safe time may be used in the deleted text begin smallest increment of time tracked by the employer's payroll system, provided such increment is not more than four hoursdeleted text end new text begin same increment of time for which employees are paid, provided an employer is not required to provide leave in less than 15-minute increments nor can the employer require use of earned sick and safe time in more than four-hour incrementsnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 12.

Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 10, is amended to read:

Subd. 10.

Employer recordsnew text begin and required statement to employeesnew text end .

(a) Employers shall retain accurate records documenting hours worked by employees and earned sick and safe time taken and comply with all requirements under section 177.30.

new text begin (b) At the end of each pay period, the employer shall provide, in writing or electronically, information stating the employee's current amount of: new text end

new text begin (1) the total number of earned sick and safe time hours available to the employee for use under section 181.9446; and new text end

new text begin (2) the total number of earned sick and safe time hours used during the pay period under section 181.9447. new text end

new text begin Employers may choose a reasonable system for providing this information, including but not limited to listing information on or attached to each earnings statement or an electronic system where employees can access this information. An employer who chooses to provide this information by electronic means must provide employee access to an employer-owned computer during an employee's regular working hours to review and print. new text end

deleted text begin (b)deleted text end new text begin (c)new text end An employer must allow an employee to inspect records required by this section and relating to that employee at a reasonable time and place.

new text begin (d) The records required by this section must be kept for three years. new text end

new text begin (e) All records required to be kept under this section must be readily available for inspection by the commissioner upon demand. The records must be either kept at the place where employees are working or kept in a manner that allows the employer to comply with this paragraph within 72 hours. new text end

Sec. 13.

Minnesota Statutes 2023 Supplement, section 181.9447, subdivision 11, is amended to read:

Subd. 11.

Confidentiality and nondisclosure.

(a) If, in conjunction with this section, an employer possesses:

(1) health or medical information regarding an employee or an employee's family member;

(2) information pertaining to domestic abuse, sexual assault, or stalking;

(3) information that the employee has requested or obtained leave under this section; or

(4) any written or oral statement, documentation, record, or corroborating evidence provided by the employee or an employee's family member, the employer must treat such information as confidential.

Information given by an employee may only be disclosed by an employer if the disclosure is requested or consented to by the employee, when ordered by a court or administrative agency, or when otherwise required by federal or state law.

(b) Records and documents relating to medical certifications, recertifications, or medical histories of employees or family members of employees created for purposes of section 177.50 or sections 181.9445 to 181.9448 must be maintained as confidential medical records separate from the usual personnel files. At the request of the employee, the employer must destroy or return the records required by sections 181.9445 to 181.9448 that are older than three years prior to the current calendar yearnew text begin , unless state or federal law, rule, or regulation requires the employer to retain such recordsnew text end .

(c) Employers may not discriminate against any employee based on records created for the purposes of section 177.50 or sections 181.9445 to 181.9448.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 14.

Minnesota Statutes 2023 Supplement, section 181.9447, is amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Weather event exception. new text end

new text begin Notwithstanding subdivision 1, an employee may not use sick and safe time under the conditions in subdivision 1, clause (4), if: new text end

new text begin (1) the employee's preassigned or foreseeable work duties during a public emergency or weather event would require the employee to respond to the public emergency or weather event; new text end

new text begin (2) the employee is a firefighter; a peace officer subject to licensure under sections 626.84 to 626.863; a 911 telecommunicator as defined in section 403.02, subdivision 17c; a guard at a correctional facility; or a public employee holding a commercial driver's license; and new text end

new text begin (3) one of the following two conditions are met: new text end

new text begin (i) the employee is represented by an exclusive representative under section 179A.03, subdivision 8, and the collective bargaining agreement or memorandum of understanding governing the employee's position explicitly references section 181.9447, subdivision 1, clause (4), and clearly and unambiguously waives application of that section for the employee's position; or new text end

new text begin (ii) the employee is not represented by an exclusive representative, the employee is needed for the employer to maintain minimum staffing requirements, and the employer has a written policy explicitly referencing section 181.9447, subdivision 1, clause (4), that is provided to such employees in a manner that meets the requirements of other earned sick and safe time notices under section 181.9447, subdivision 9. new text end

Sec. 15.

Minnesota Statutes 2023 Supplement, section 181.9448, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Nodeleted text end Effect on more generous sick and safe time policies.

(a) Nothing in sections 181.9445 to 181.9448 shall be construed to discourage employers from adopting or retaining earned sick and safe time policies that meet or exceed, and do not otherwise conflict with, the minimum standards and requirements provided in sections 181.9445 to 181.9448new text begin . All paid time off and other paid leave made available to an employee by an employer in excess of the minimum amount required in section 181.9446 for absences from work due to personal illness or injury, but not including short-term or long-term disability or other salary continuation benefits, must meet or exceed the minimum standards and requirements provided in sections 181.9445 to 181.9448, except for section 181.9446. For paid leave accrued prior to January 1, 2024, for absences from work due to personal illness or injury, an employer may require an employee who uses such leave to follow the written notice and documentation requirements in the employer's applicable policy or applicable collective bargaining agreement as of December 31, 2023, in lieu of the requirements of section 181.9447, subdivisions 2 and 3, provided that an employer does not require an employee to use leave accrued on or after January 1, 2024, before using leave accrued prior to that datenew text end .

(b) Nothing in sections 181.9445 to 181.9448 shall be construed to limit the right of parties to a collective bargaining agreement to bargain and agree with respect to earned sick and safe time policies or to diminish the obligation of an employer to comply with any contract, collective bargaining agreement, or any employment benefit program or plan that meets or exceeds, and does not otherwise conflict with, the minimum standards and requirements provided in this section.

(c) Nothing in sections 181.9445 to 181.9448 shall be construed to preempt, limit, or otherwise affect the applicability of any other law, regulation, requirement, policy, or standard that provides for a greater amount, accrual, or use by employees of paid sick and safe time or that extends other protections to employees.

(d) Nothing in sections 181.9445 to 181.9448 shall be construed or applied so as to create any power or duty in conflict with federal law.

(e) Employers who provide earned sick and safe time to their employees under a paid time off policy or other paid leave policy that may be used for the same purposes and under the same conditions as earned sick and safe time, and that meets or exceeds, and does not otherwise conflict with, the minimum standards and requirements provided in sections 181.9445 to 181.9448 are not required to provide additional earned sick and safe time.

(f) The provisions of sections 181.9445 to 181.9448 may be waived by a collective bargaining agreement with a bona fide building and construction trades labor organization that has established itself as the collective bargaining representative for the affected building and construction industry employees, provided that for such waiver to be valid, it shall explicitly reference sections 181.9445 to 181.9448 and clearly and unambiguously waive application of those sections to such employees.

new text begin (g) The requirements of section 181.9447, subdivision 3, may be waived for paid leave made available to an employee by an employer for absences from work in excess of the minimum amount required in section 181.9446 through a collective bargaining agreement with a labor organization that has established itself as the collective bargaining representative for the employees, provided that for such waiver to be valid, it shall explicitly reference section 181.9447, subdivision 3, and clearly and unambiguously waive application of that subdivision to such employees. new text end

new text begin (h) An individual provider, as defined in section 256B.0711, subdivision 1, paragraph (d), who provides services through a consumer support grant under section 256.476, consumer-directed community supports under section 256B.4911, or community first services and supports under section 256B.85, to a family member who is a participant, as defined in section 256B.0711, subdivision 1, paragraph (e), may individually waive the provisions of sections 181.9445 to 181.9448 for the remainder of the participant's service plan year, provided that the funds are returned to the participant's budget. Once an individual provider has waived the provisions of sections 181.9445 to 181.9448, they may not accrue earned sick and safe time until the start of the participant's next service plan year. new text end

deleted text begin (g)deleted text end new text begin (i)new text end Sections 181.9445 to 181.9448 do not prohibit an employer from establishing a policy whereby employees may donate unused accrued sick and safe time to another employee.

deleted text begin (h)deleted text end new text begin (j)new text end Sections 181.9445 to 181.9448 do not prohibit an employer from advancing sick and safe time to an employee before accrual by the employee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except paragraph (a) is effective January 1, 2025. new text end

Sec. 16.

Minnesota Statutes 2023 Supplement, section 181.9448, subdivision 2, is amended to read:

Subd. 2.

Termination; separation; transfer.

Sections 181.9445 to 181.9448 do not require financial or other reimbursement to an employee from an employer upon the employee's termination, resignation, retirement, or other separation from employment for accrued earned sick and safe time that has not been used. If an employee is transferred to a separate division, entity, or location, but remains employed by the same employer, the employee is entitled to all earned sick and safe time accrued at the prior division, entity, or location and is entitled to use all earned sick and safe time as provided in sections 181.9445 to 181.9448. When there is a separation from employment and the employee is rehired within 180 days of separation by the same employer, previously accrued earned sick and safe time that had not been used new text begin or otherwise disbursed to the benefit of the employee upon separation new text end must be reinstated. An employee is entitled to use accrued earned sick and safe time and accrue additional earned sick and safe time at the commencement of reemployment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 17.

Minnesota Statutes 2023 Supplement, section 181.9448, subdivision 3, is amended to read:

Subd. 3.

Employer succession.

(a) When a different employer succeeds or takes the place of an existing employer, all employees of the original employer who remain employed by the successor employer are entitled to all earned sick and safe time accrued but not used when employed by the original employer, and are entitled to use all earned sick and safe time previously accrued but not used.

(b) Ifdeleted text begin , at the time of transfer of the business,deleted text end employees are terminated by the original employer and hired within 30 days by the successor employer following the deleted text begin transferdeleted text end new text begin employer successionnew text end , those employees are entitled to all earned sick and safe time accrued but not used when employed by the original employer, and are entitled to use all earned sick and safe time previously accrued but not used.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 12

UNIVERSITY OF MINNESOTA COLLECTIVE BARGAINING

Section 1.

Minnesota Statutes 2022, section 179A.11, subdivision 1, is amended to read:

Subdivision 1.

Units.

new text begin (a) new text end The following are deleted text begin thedeleted text end appropriate units of University of Minnesota employees. new text begin The listed units include but are not limited to the positions described. A position may be added to a unit if the commissioner makes a determination under section 179A.09 that the unit is appropriate for the position.new text end All units shall exclude managerial and confidential employees. deleted text begin Supervisory employees shall only be assigned to unit 13. No additional units of University of Minnesota employees shall be recognized for the purpose of meeting and negotiating.deleted text end

(1) The Law Enforcement Unit deleted text begin consists ofdeleted text end new text begin includesnew text end the positions of all employees with the power of arrest.

(2) The Craft and Trades Unit deleted text begin consists ofdeleted text end new text begin includesnew text end the positions of all employees whose work requires specialized manual skills and knowledge acquired through formal training or apprenticeship or equivalent on-the-job training or experience.

(3) The Service, Maintenance, and Labor Unit deleted text begin consists ofdeleted text end new text begin includesnew text end the positions of all employees whose work is typically that of maintenance, service, or labor and which does not require extensive previous training or experience, except as provided in unit 4.

(4) The Health Care Nonprofessional and Service Unit deleted text begin consists ofdeleted text end new text begin includesnew text end the positions of all nonprofessional employees of the University of Minnesota hospitals, dental school, and health service whose work is unique to those settings, excluding labor and maintenance employees as defined in unit 3.

(5) The Nursing Professional Unit deleted text begin consists ofdeleted text end new text begin includesnew text end all positions which are required to be filled by registered nurses.

(6) The Clerical and Office Unit deleted text begin consists ofdeleted text end new text begin includesnew text end the positions of all employees whose work is typically clerical or secretarial, including nontechnical data recording and retrieval and general office work, except as provided in unit 4.

(7) The Technical Unit deleted text begin consists ofdeleted text end new text begin includesnew text end the positions of all employees whose work is not typically manual and which requires specialized knowledge or skills acquired through two-year academic programs or equivalent experience or on-the-job training, except as provided in unit 4.

deleted text begin (8) The Twin Cities Instructional Unit consists of the positions of all instructional employees with the rank of professor, associate professor, assistant professor, including research associate or instructor, including research fellow, located on the Twin Cities campuses. deleted text end

deleted text begin (9)deleted text end new text begin (8)new text end The Outstate Instructional Unit deleted text begin consists ofdeleted text end new text begin includesnew text end the positions of all instructional employees with the rank of professor, associate professor, assistant professor, including research associate or instructor, including research fellow, located at the Duluth campus, provided that the positions of instructional employees of the same ranks at the Morris, Crookston, or deleted text begin Wasecadeleted text end new text begin Rochesternew text end campuses shall be included within this unit if a majority of the eligible employees voting at a campus so vote during an election conducted by the commissioner, provided that the election new text begin or majority verification procedure new text end shall not be held until the Duluth campus has voted in favor of representation. The election shall be held new text begin or majority verification procedure shall take place new text end when an employee organization or group of employees petitions the commissioner stating that a majority of the eligible employees at one of these campuses wishes to join the unit and this petition is supported by a showing of at least 30 percent support from eligible employees at that campus and is filed between September 1 and November 1.

deleted text begin Should both units 8 and 9 elect exclusive bargaining representatives, those representatives may by mutual agreement jointly negotiate a contract with the regents, or may negotiate separate contracts with the regents. If the exclusive bargaining representatives jointly negotiate a contract with the regents, the contract shall be ratified by each unit. deleted text end new text begin For the purposes of this section, an "instructional employee" is an individual who spends 35 percent or more of their work time creating, delivering, and assessing the mastery of credit-bearing coursework. new text end

(10) The Graduate Assistant Unit deleted text begin consists ofdeleted text end new text begin includesnew text end the positions of all graduate assistants who are enrolled in the graduate school and who hold the rank of research assistant, teaching assistant, teaching associate I or II, project assistant, new text begin graduate school fellow, graduate school trainee, professional school fellow, professional school trainee, new text end or administrative fellow I or II.new text begin The listed ranks do not coincide with the ranks that are categorized by the University of Minnesota as professionals in training, even though in some cases the job titles may be the same.new text end

deleted text begin (11) The Academic Professional and Administrative Staff Unit consists of all academic professional and administrative staff positions that are not defined as included in an instructional unit, the supervisory unit, the clerical unit, or the technical unit. deleted text end

deleted text begin (12) The Noninstructional Professional Unit consists of the positions of all employees meeting the requirements of section 179A.03, subdivision 13, clause (1) or (2), which are not defined as included within an instructional unit, the Academic Professional and Administrative Staff Unit, or the supervisory unit. deleted text end

deleted text begin (13) The Supervisory Employees Unit consists of the positions of all supervisory employees. deleted text end

new text begin (b) An employee of the University of Minnesota whose position is not enumerated in paragraph (a) may petition the commissioner to determine an appropriate unit for the position. The commissioner must make a determination for an appropriate unit as provided in section 179A.09 and the commissioner must give special weight to the desires of the petitioning employee or representatives of the petitioning employee. new text end

Sec. 2.

Minnesota Statutes 2022, section 179A.11, subdivision 2, is amended to read:

Subd. 2.

University of Minnesota employee severance.

new text begin (a) new text end Each of the following groups of University of Minnesota employees has the right, as specified in this subdivision, to separate from the instructional and supervisory units: (1) health sciences instructional employees at all campuses with the rank of professor, associate professor, assistant professor, including research associate, or instructor, including research fellow, (2) instructional employees of the law school with the rank of professor, associate professor, assistant professor, including research associate, or instructor, including research fellow, (3) instructional supervisors, (4) noninstructional professional supervisors, and (5) academic professional and administrative staff supervisors.

deleted text begin Thisdeleted text end new text begin (b) Thenew text end right new text begin to separate new text end may be exercisednew text begin :new text end

new text begin (1)new text end by petition between September 1 and November 1. If a group separates from its unit, it has no right to meet and negotiate, but retains the right to meet and confer with the appropriate officials on any matter of concern to the group. The right to separate must be exercised as follows: An employee organization or group of employees claiming that a majority of any one of these groups of employees on a statewide basis wish to separate from their unit may petition the commissioner for an election during the petitioning period. If the petition is supported by a showing of at least 30 percent support from the employees, the commissioner deleted text begin shalldeleted text end new text begin maynew text end hold an election on the separation issuenew text begin or the petitioning group may proceed under the process set forth in section 179A.12new text end . This election must be conducted within 30 days of the close of the petition period. If a majority of votes cast endorse severance from their unit, the commissioner shall certify that resultdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (2) by the group's exclusion from a proposed unit in a representation petition. new text end

new text begin (c) new text end Where not inconsistent with other provisions of this section, the election is governed by section 179A.12. If a group of employees severs, it may rejoin that unit by following the procedures for severance during the periods for severance.

Sec. 3.

Minnesota Statutes 2022, section 179A.11, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Joint bargaining. new text end

new text begin Units organized under this section that have elected exclusive bargaining representatives may by mutual agreement of the exclusive representatives jointly negotiate a contract with the regents or may negotiate separate contracts with the regents. If the exclusive bargaining representatives jointly negotiate a contract with the regents, the contract must be ratified by each unit. new text end

ARTICLE 13

BROADBAND AND PIPELINE SAFETY

Section 1.

Minnesota Statutes 2022, section 116J.395, subdivision 6, is amended to read:

Subd. 6.

Awarding grants.

(a) In evaluating applications and awarding grants, the commissioner shall give priority to applications that are constructed in areas identified by the director of the Office of Broadband Development as unserved.

(b) In evaluating applications and awarding grants, the commissioner may give priority to applications that:

(1) are constructed in areas identified by the director of the Office of Broadband Development as underserved;

(2) offer new or substantially upgraded broadband service to important community institutions including, but not limited to, libraries, educational institutions, public safety facilities, and healthcare facilities;

(3) facilitate the use of telehealth and electronic health records;

(4) serve economically distressed areas of the state, as measured by indices of unemployment, poverty, or population loss that are significantly greater than the statewide average;

(5) provide technical support and train residents, businesses, and institutions in the community served by the project to utilize broadband service;

(6) include a component to actively promote the adoption of the newly available broadband services in the community;

(7) provide evidence of strong support for the project from citizens, government, businesses, and institutions in the community;

(8) provide access to broadband service to a greater number of unserved or underserved households and businesses; deleted text begin ordeleted text end

(9) leverage greater amounts of funding for the project from other private and public sourcesdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (10) commit to implementation of workforce best practices, meaning all laborers and mechanics performing construction, installation, remodeling, or repairs on the project sites for which the grant is provided: new text end

new text begin (i) are paid the prevailing wage rate as defined in section 177.42, subdivision 6, and the applicant and all of its construction contractors and subcontractors agree that the payment of prevailing wage to such laborers and mechanics is subject to the requirements and enforcement provisions under sections 177.27, 177.30, 177.32, 177.41 to 177.435, and 177.45, which the commissioner of labor and industry shall have the authority to enforce; or new text end

new text begin (ii) receive from the employer: new text end

new text begin (A) at least 40 hours of hands-on skills training annually; new text end

new text begin (B) employer-paid family health insurance coverage; and new text end

new text begin (C) employer-paid retirement benefit payments equal to no less than 15 percent of the employee's total taxable wages. new text end

(c) The commissioner shall endeavor to award grants under this section to qualified applicants in all regions of the state.

new text begin (d) The commissioner shall endeavor to award no less than 50 percent of grant awards from general fund appropriations for the border-to-border broadband grant program under section 116J.396 for applicants that agree to implement the workforce best practices in this section. The applicant's agreement to implement the workforce best practices described in paragraph (b) must be an express condition of providing the grant in the grant agreement. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026. new text end

Sec. 2.

Minnesota Statutes 2022, section 116J.395, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Workforce plan data. new text end

new text begin (a) Grantees that serve more than 10,000 broadband customers and are receiving funding for projects under this section are required to provide in annual reports information on the workforce performing installation work funded through the grant, including: new text end

new text begin (1) the number of installation labor hours performed by workforce directly employed by the grantee or the Internet service provider; new text end

new text begin (2) the number of installation labor hours performed by contractors and subcontractors on grant-funded projects with subtotals for hours worked by Minnesota residents, people of color, Indigenous people, women, and people with disabilities; new text end

new text begin (3) the name, business address, and number of labor hours performed by each contractor and subcontractor that participated in construction of a grant-funded project; new text end

new text begin (4) the percentages of workforce performing installation labor whose straight-time hourly pay rate was at least $25 and who received employer-paid medical coverage and retirement benefits; and new text end

new text begin (5) any other workforce plan information as determined by the commissioner. new text end

new text begin (b) Following an award, the workforce plan and the requirement to submit ongoing workforce reports shall be incorporated as material conditions of the contract with the department and become enforceable, certified commitments. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026. new text end

Sec. 3.

Minnesota Statutes 2022, section 116J.395, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Failure to meet requirements or falsification of data. new text end

new text begin If successful applicants fail to meet the program requirements under this section, or otherwise falsify information regarding such requirements, the commissioner shall investigate the failure and issue an appropriate action, up to and including a determination that the applicant is ineligible for future participation in broadband grant programs funded by the department. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026. new text end

Sec. 4.

Minnesota Statutes 2022, section 216B.17, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Telecommunications and cable communications systems. new text end

new text begin (a) The commission has authority under this section to investigate, upon complaint or on its own motion, conduct by or on behalf of a telecommunications carrier, telephone company, or cable communications system provider that impacts public utility or cooperative electric association infrastructure. If the commission finds that the conduct damaged or unreasonably interfered with the function of the infrastructure, the commission may take any action authorized under sections 216B.52 to 216B.61 with respect to the provider. new text end

new text begin (b) For purposes of this subdivision: new text end

new text begin (1) "telecommunications carrier" has the meaning given in section 237.01, subdivision 6; new text end

new text begin (2) "telephone company" has the meaning given in section 237.01, subdivision 7; and new text end

new text begin (3) "cable communications system provider" means an owner or operator of a cable communications system as defined in section 238.02, subdivision 3. new text end

Sec. 5.

new text begin [326B.198] UNDERGROUND TELECOMMUNICATIONS INFRASTRUCTURE. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section: new text end

new text begin (1) "directional drilling" means a drilling method that utilizes a steerable drill bit to cut a bore hole for installing underground utilities; new text end

new text begin (2) "safety-qualified underground telecommunications installer" means a person who has completed underground utilities installation certification under subdivision 3; new text end

new text begin (3) "underground telecommunications utilities" means buried broadband, telephone and other telecommunications transmission, distribution and service lines, and associated facilities; and new text end

new text begin (4) "underground utilities" means buried electric transmission and distribution lines, gas and hazardous liquids pipelines and distribution lines, sewer and water pipelines, telephone or telecommunications lines, and associated facilities. new text end

new text begin Subd. 2. new text end

new text begin Installation requirements. new text end

new text begin (a) The installation of underground telecommunications infrastructure that is located within ten feet of existing underground utilities or that crosses the existing underground utilities must be performed by safety-qualified underground telecommunications installers as follows: new text end

new text begin (1) the location of existing utilities by hand- or hydro-excavation or other accepted methods must be performed by a safety-qualified underground telecommunications installer; new text end

new text begin (2) where telecommunications infrastructure is installed by means of directional drilling, the monitoring of the location and depth of the drill head must be performed by a safety-qualified underground telecommunications installer; and new text end

new text begin (3) no fewer than two safety-qualified underground telecommunications installers must be present at all times at any location where telecommunications infrastructure is being installed by means of directional drilling. new text end

new text begin (b) Beginning July 1, 2025, all installations of underground telecommunications infrastructure subject to this subdivision within the seven-county metropolitan area must be performed by safety-qualified underground telecommunications installers that meet the requirements of this subdivision. new text end

new text begin (c) Beginning January 1, 2026, all installations of underground telecommunications infrastructure subject to this subdivision within this state must be performed by safety-qualified underground telecommunications installers that meet the requirements of this subdivision. new text end

new text begin Subd. 3. new text end

new text begin Certification Standards. new text end

new text begin (a) The commissioner of labor and industry, in consultation with the Office of Broadband, shall approve standards for a safety-qualified underground telecommunications installer certification program that requires a person to: new text end

new text begin (1) complete a 40-hour initial course that includes classroom and hands-on instruction covering proper work procedures for safe installation of underground utilities, including: new text end

new text begin (i) regulations applicable to excavation near existing utilities; new text end

new text begin (ii) identification, location, and verification of utility lines using hand- or hydro-excavation or other accepted methods; new text end

new text begin (iii) response to line strike incidents; new text end

new text begin (iv) traffic control procedures; new text end

new text begin (v) use of a tracking device to safely guide directional drill equipment along a drill path; and new text end

new text begin (vi) avoidance and mitigation of safety hazards posed by underground utility installation projects; new text end

new text begin (2) demonstrate knowledge of the course material by successfully completing an examination approved by the commissioner; and new text end

new text begin (3) complete a four-hour refresher course within three years of completing the original course and every three years thereafter in order to maintain certification. new text end

new text begin (b) The commissioner must develop an approval process for training providers under this subdivision and may suspend or revoke the approval of any training provider that fails to demonstrate consistent delivery of approved curriculum or success in preparing participants to complete the examination. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 14

HOUSING APPROPRIATIONS

Section 1.

new text begin APPROPRIATIONS.new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2024" and "2025" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. "The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" is fiscal years 2024 and 2025. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2024 new text end new text begin 2025 new text end

Sec. 2.

new text begin HOUSING FINANCE AGENCY new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 8,680,000 new text end

new text begin (a) The amounts that may be spent for each purpose are specified in the following subdivisions. new text end

new text begin (b) Unless otherwise specified, this appropriation is for transfer to the housing development fund for the programs specified in this section. new text end

new text begin Subd. 2. new text end

new text begin Family Homeless Prevention new text end

new text begin -0- new text end new text begin 8,109,000 new text end

new text begin This appropriation is for the family homeless prevention and assistance program under Minnesota Statutes, section 462A.204. Notwithstanding procurement provisions outlined in Minnesota Statutes, section 16C.06, subdivisions 1, 2, and 6, the agency may award grants to existing program grantees. This is a onetime appropriation. new text end

new text begin Subd. 3. new text end

new text begin Minnesota Homeless Study new text end

new text begin -0- new text end new text begin 100,000 new text end

new text begin This appropriation is for a grant to the Amherst H. Wilder Foundation for the Minnesota homeless study. Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner may use up to one percent of this appropriation for administrative costs. This is a onetime appropriation. new text end

new text begin Subd. 6. new text end

new text begin Expediting Rental Assistance new text end

new text begin -0- new text end new text begin 471,000 new text end

new text begin This appropriation is for the agency's work under article 16 of this act. This is a onetime appropriation. Any unspent portion of the appropriation shall be transferred to the family homeless prevention and assistance program. new text end

Sec. 3.

new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 225,000 new text end

new text begin This appropriation is for the single-egress stairway apartment building report under article 15, section 46. This is a onetime appropriation. new text end

Sec. 4.

new text begin SUPREME COURT new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 545,000 new text end

new text begin This appropriation is for the implementation of Laws 2023, chapter 52, article 19, sections 117 to 119. This is a onetime appropriation and is available until June 30, 2026. new text end

Sec. 5.

new text begin LEGISLATIVE COORDINATING COMMISSION new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 400,000 new text end

new text begin (a) $200,000 is for a contract to facilitate, and the administrative costs of, the Task Force on Long-Term Sustainability of Affordable Housing established in article 15, section 49. This is a onetime appropriation. new text end

new text begin (b) $200,000 is for a contract to facilitate, and the administrative costs of, the working group on common interest communities and homeowners associations established in article 15, section 48. This is a onetime appropriation. new text end

Sec. 6.

new text begin HUMAN SERVICES new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 150,000 new text end

new text begin This appropriation is for a contract with Propel Nonprofits to conduct a needs analysis and a site analysis for emergency shelter serving transgender adults experiencing homelessness. This is a onetime appropriation and is available until June 30, 2026. This appropriation is in addition to any other appropriation enacted in the 2024 session of the legislature for this purpose. new text end

Sec. 7.

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

Subd. 2.

Challenge Program

60,425,000 deleted text begin 60,425,000 deleted text end new text begin 53,425,000 new text end

(a) This appropriation is for the economic development and housing challenge program under Minnesota Statutes, sections 462A.33 and 462A.07, subdivision 14.

(b) Of this amount, $6,425,000 each year shall be made available during the first 11 months of the fiscal year exclusively for housing projects for American Indians. Any funds not committed to housing projects for American Indians within the annual consolidated request for funding processes may be available for any eligible activity under Minnesota Statutes, sections 462A.33 and 462A.07, subdivision 14.

(c) Of the amount in the first year, $5,000,000 is for a grant to Urban Homeworks to expand initiatives pertaining to deeply affordable homeownership in Minneapolis neighborhoods with over 40 percent of residents identifying as Black, Indigenous, or People of Color and at least 40 percent of residents making less than 50 percent of the area median income. The grant is to be used for acquisition, rehabilitation,new text begin gap financing as defined in Minnesota Statutes, section 462A.33, subdivision 1,new text end and construction of homes to be sold to households with incomes deleted text begin of 50 todeleted text end new text begin at or belownew text end 60 percent of the area median income. This is a onetime appropriationdeleted text begin , and is available until June 30, 2027deleted text end . By December 15 each year deleted text begin until 2027deleted text end , Urban Homeworks must submit a report to the chairs and ranking minority members of the legislative committees having jurisdiction over housing finance and policy. The report must include the amount used for (1) acquisition, (2) rehabilitation, and (3) construction of housing units, along with the number of housing units acquired, rehabilitated, or constructed, and the amount of the appropriation that has been spent. If any home was sold or transferred within the year covered by the report, Urban Homeworks must include the price at which the home was sold, as well as how much was spent to complete the project before sale.

(d) Of the amount in the first year, $2,000,000 is for a grant to Rondo Community Land Trust. This is a onetime appropriation.

(e) The base for this program in fiscal year 2026 and beyond is $12,925,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 8.

Laws 2023, chapter 37, article 1, section 2, subdivision 5, is amended to read:

Subd. 5.

Workforce Homeownership Program

deleted text begin 20,250,000 deleted text end new text begin 17,250,000 new text end 250,000

(a) This appropriation is for the workforce homeownership program under Minnesota Statutes, section 462A.38.

(b) The base for this program in fiscal year 2026 and beyond is $250,000.

Sec. 9.

Laws 2023, chapter 37, article 1, section 2, subdivision 18, is amended to read:

Subd. 18.

Supportive Housing

deleted text begin 25,000,000 deleted text end
new text begin 10,000,000 new text end
-0-

This appropriation is for the supportive housing program under Minnesota Statutes, section 462A.42. This is a onetime appropriation.

Sec. 10.

Laws 2023, chapter 37, article 1, section 2, subdivision 25, is amended to read:

Subd. 25.

Manufactured Home Lending deleted text begin Grantsdeleted text end new text begin Programnew text end

10,000,000 -0-

new text begin (a) new text end This appropriation is for deleted text begin thedeleted text end new text begin a grant to NeighborWorks Home Partners for anew text end manufactured home lending deleted text begin grantdeleted text end program. This is a onetime appropriation.

new text begin (b) The funds must be used for new manufactured home financing programs; manufactured home down payment assistance; or manufactured home repair, renovation, removal, and site preparation financing programs. new text end

new text begin (c) Interest earned and repayments of principal from loans issued under this subdivision must be used for the purposes of this subdivision. new text end

new text begin (d) For the purposes of this subdivision, the term "manufactured home" has the meaning given in Minnesota Statutes, section 327B.01, subdivision 13. new text end

Sec. 11.

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

Subd. 29.

Community Stabilization

45,000,000 deleted text begin 45,000,000 deleted text end new text begin 70,000,000 new text end

new text begin (a) new text end This appropriation is for the community stabilization program. This a onetime appropriation. deleted text begin Of this amount, $10,000,000 is for a grant to AEON for Huntington Place.deleted text end

new text begin (b) The first year and second year appropriations are available as follows: new text end

new text begin (1) $10,000,000 is for a grant to AEON for Huntington Place; new text end

new text begin (2) notwithstanding Minnesota Statutes, sections 16B.98, subdivisions 5 and 12, and 16B.981, subdivision 2, $3,250,000 is for a grant to the Wilder Park Association to assist with the cost of a major capital repair project for the rehabilitation of portions of the owner-occupied senior high-rise facility. The grantee must verify that 50 percent of units are occupied by households with incomes at or below 60 percent of area median income; new text end

new text begin (3) $41,750,000 is for multiunit rental housing; new text end

new text begin (4) $10,000,000 is for single-family housing; and new text end

new text begin (5) $50,000,000 is for recapitalization of distressed buildings. Of this amount, up to $15,000,000 is for preservation or recapitalization of housing that includes supportive housing. new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner may use up to one percent of this appropriation for administrative costs for the grants in paragraph (b), clauses (1) and (2). This is a onetime appropriation. new text end

Sec. 12.

new text begin AVAILABILITY OF APPROPRIATIONS FOR ADMINISTRATIVE EXPENSES. new text end

new text begin (a) Money appropriated in section 2 and section 11, paragraph (b), clauses (1) and (2), for grants must not be spent on institutional overhead charges that are not directly related to and necessary for the grant. new text end

new text begin (b) By February 15, 2025, the commissioner shall report to the chairs and ranking minority members of the legislative committees having jurisdiction over housing finance and policy on the anticipated costs for administering each grant in section 2 and section 11, paragraph (b), clauses (1) and (2). Within 90 days after a grantee has fulfilled the obligations of their grant agreement, the commissioner shall report to the chairs and ranking minority members of the legislative committees having jurisdiction over housing finance and policy on the final cost for administering each grant in section 2 and section 11, paragraph (b), clauses (1) and (2). new text end

Sec. 13.

new text begin REPEALER. new text end

new text begin Laws 2023, chapter 37, article 2, section 13, new text end new text begin is repealed. new text end

ARTICLE 15

HOUSING POLICY

Section 1.

Minnesota Statutes 2023 Supplement, section 82.75, subdivision 8, is amended to read:

Subd. 8.

Accrued interest.

(a) Each broker shall maintain a pooled interest-bearing trust account for deposit of client funds. The interest accruing on the trust account, less reasonable transaction costs, must be paid to the Minnesota Housing Finance Agency for deposit in the housing trust fund account created under section 462A.201 unless otherwise specified pursuant to an expressed written agreement between the parties to a transaction.

(b) For an account created under paragraph (a), each broker shall direct the financial institution to:

(1) pay the interest, less reasonable transaction costs, computed in accordance with the financial institution's standard accounting practice, at least quarterly, to the Minnesota Housing Finance Agency; and

(2) send a statement to the Minnesota Housing Finance Agency showing the name of the broker for whom the payment is made, the rate of interest applied, the amount of service charges deducted, and the account balance for the period in which the report is made.

The Minnesota Housing Finance Agency shall credit the amount collected under this subdivision to the housing trust fund account established in section 462A.201.

(c) The financial institution must promptly notify the agency if a draft drawn on the account is dishonored. A draft is not dishonored if a stop payment order is requested by an issuer who has a good faith defense to payment on the draft.

deleted text begin (d) By January 15 of each year, the Minnesota Housing Finance Agency must report to the chairs and ranking minority members of the legislative committees with jurisdiction over housing finance and policy. The report must specify the amount of funds deposited under this subdivision in the housing trust fund account established under section 462A.201 during the most recently concluded fiscal year. The report must also include a history of deposits made under this section, in nominal dollar amounts and in the present value of those amounts, calculated using the Consumer Price Index-All Items (United States city average). deleted text end

Sec. 2.

Minnesota Statutes 2022, section 383B.145, subdivision 5, is amended to read:

Subd. 5.

Set-aside contracts.

new text begin (a) new text end Notwithstanding any other law to the contrary, the board may set aside an amount, for each fiscal year, for awarding contracts to businesses and social services organizations deleted text begin which have a majority of employeesdeleted text end new text begin that employ personsnew text end who would be eligible for public assistance or who would require rehabilitative services in the absence of their employment. The set-aside amount may not exceed two percent of the amount appropriated by the board in the budget for the preceding fiscal year. Failure by the board to designate particular procurements for the set-aside program shall not prevent vendors from seeking the procurement award through the normal solicitation and bidding processes pursuant to the provisions of the Uniform Municipal Contracting Act, section 471.345.

new text begin (b) new text end The board may elect to use a negotiated price or bid contract procedure in the awarding of a procurement contract under the set-aside program. The amount of the award shall not exceed by more than five percent the estimated price for the goods or services, if they were to be purchased on the open market and not under the set-aside program.

new text begin (c)new text end Before contracting with a business or new text begin social new text end service organization under the set-aside program, the board or authorized person shall conduct an investigation of the business or new text begin social new text end service organization with whom it seeks to contract and shall make findings, to be contained in the provisions of the contract, that:

(1) the vendornew text begin either:new text end

new text begin (i)new text end has in its employ at least 50 percent of its employees who would be eligible to receive some form of public assistance or other rehabilitative services in the absence of the award of a contract to the vendor;new text begin ornew text end

new text begin (ii) if the vendor is a business providing construction services, has in its employ to deliver the set-aside contract as many employees who would be eligible to receive some form of public assistance or other rehabilitative services in the absence of the award of a contract to the vendor as is practicable in consideration of industry safety standards, established supervisory ratios for apprentices, and requirements for licensed persons to perform certain work; new text end

(2) the vendor has elected to apply to the board for a contract under the set-aside provisions; and

(3) the vendor is able to perform the set-aside contract.

new text begin (d) new text end The board shall publicize the provisions of the set-aside program, attempt to locate vendors able to perform set-aside procurement contracts and otherwise encourage participation therein.

Sec. 3.

Minnesota Statutes 2022, section 462A.02, subdivision 10, is amended to read:

Subd. 10.

Energy conservationnew text begin , decarbonization, and climate resiliencenew text end .

It is further declared that supplies of conventional energy resources are rapidly depleting in quantity and rising in price and that the burden of these occurrences falls heavily upon the citizens of Minnesota generally and persons of low and moderate income in particular. These conditions are adverse to the health, welfare, and safety of all of the citizens of this state. It is further declared that it is a public purpose to ensure the availability of financing to be used by all citizens of the state, while giving preference to low and moderate income people, to assist in the installation in their dwellings of reasonably priced energy conserving systems including the use of alternative energy resources and equipment so that by the improvement of the energy efficiency deleted text begin ofdeleted text end new text begin , clean energy, greenhouse gas emissions reduction, climate resiliency, and other qualified projects fornew text end all housing, the adequacy of the total energy supply may be preserved for the benefit of all citizens.

Sec. 4.

Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 14, is amended to read:

Subd. 14.

Rehabilitation loans.

It may agree to purchase, make, or otherwise participate in the making, and may enter into commitments for the purchase, making, or participation in the making, of eligible loans for rehabilitation, with terms and conditions as the agency deems advisable, to persons and families of low and moderate income, and to owners of existing residential housing for occupancy by such persons and families, for the rehabilitation of existing residential housing owned by them. Rehabilitation may include the addition or rehabilitation of a detached accessory dwelling unit. The loans may be insured or uninsured and may be made with security, or may be unsecured, as the agency deems advisable. The loans may be in addition to or in combination with long-term eligible mortgage loans under subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness secured by the property, if refinancing is determined by the agency to be necessary to permit the owner to meet the owner's housing cost without expending an unreasonable portion of the owner's income thereon. No loan for rehabilitation shall be made unless the agency determines that the loan will be used primarily to make the housing more desirable to live in, to increase the market value of the housing, for compliance with state, county or municipal building, housing maintenance, fire, health or similar codes and standards applicable to housing, or to accomplish energy conservation deleted text begin related improvementsdeleted text end new text begin , decarbonization, climate resiliency, and other qualified projectsnew text end . In unincorporated areas and municipalities not having codes and standards, the agency may, solely for the purpose of administering the provisions of this chapter, establish codes and standards. No loan under this subdivision for the rehabilitation of owner-occupied housing shall be denied solely because the loan will not be used for placing the owner-occupied residential housing in full compliance with all state, county, or municipal building, housing maintenance, fire, health, or similar codes and standards applicable to housing. Rehabilitation loans shall be made only when the agency determines that financing is not otherwise available, in whole or in part, from private lenders upon equivalent terms and conditions. Accessibility rehabilitation loans authorized under this subdivision may be made to eligible persons and families without limitations relating to the maximum incomes of the borrowers if:

(1) the borrower or a member of the borrower's family requires a level of care provided in a hospital, skilled nursing facility, or intermediate care facility for persons with developmental disabilities;

(2) home care is appropriate; and

(3) the improvement will enable the borrower or a member of the borrower's family to reside in the housing.

The agency may waive any requirement that the housing units in a residential housing development be rented to persons of low and moderate income if the development consists of four or fewer dwelling units, one of which is occupied by the owner.

Sec. 5.

Minnesota Statutes 2022, section 462A.05, subdivision 14a, is amended to read:

Subd. 14a.

Rehabilitation loans; existing owner-occupied residential housing.

It may make loans to persons and families of low and moderate income to rehabilitate or to assist in rehabilitating existing residential housing owned and occupied by those persons or families. Rehabilitation may include replacement of manufactured homes. No loan shall be made unless the agency determines that the loan will be used primarily for rehabilitation work necessary for health or safety, essential accessibility improvements, or to improve the energy efficiency deleted text begin ofdeleted text end new text begin , clean energy, greenhouse gas emissions reductions, climate resiliency, and other qualified projects innew text end the dwelling. No loan for rehabilitation of owner-occupied residential housing shall be denied solely because the loan will not be used for placing the residential housing in full compliance with all state, county or municipal building, housing maintenance, fire, health or similar codes and standards applicable to housing. The amount of any loan shall not exceed the lesser of (a) a maximum loan amount determined under rules adopted by the agency not to exceed $37,500, or (b) the actual cost of the work performed, or (c) that portion of the cost of rehabilitation which the agency determines cannot otherwise be paid by the person or family without the expenditure of an unreasonable portion of the income of the person or family. Loans made in whole or in part with federal funds may exceed the maximum loan amount to the extent necessary to comply with federal lead abatement requirements prescribed by the funding source. In making loans, the agency shall determine the circumstances under which and the terms and conditions under which all or any portion of the loan will be repaid and shall determine the appropriate security for the repayment of the loan. Loans pursuant to this subdivision may be made with or without interest or periodic payments.

Sec. 6.

Minnesota Statutes 2022, section 462A.05, subdivision 14b, is amended to read:

Subd. 14b.

Energy conservationnew text begin , decarbonization, and climate resiliencynew text end loans.

It may agree to purchase, make, or otherwise participate in the making, and may enter into commitments for the purchase, making, or participating in the making, of loans to persons and families, without limitations relating to the maximum incomes of the borrowers, to assist in energy conservation deleted text begin rehabilitation measuresdeleted text end new text begin , decarbonization, climate resiliency, and other qualified projectsnew text end for existing housing owned by those persons or families including, but not limited to: weatherstripping and caulking; chimney construction or improvement; furnace or space heater repair, cleaning or replacement; central air conditioner new text begin installation, new text end repair, maintenance, or replacement; air source or geothermal heat pump new text begin installation, new text end repair, maintenance, or replacement; insulation; windows and doors; and structural or other directly related repairs new text begin or installations new text end essential for energy conservationnew text begin , decarbonization, climate resiliency, and other qualified projectsnew text end . Loans shall be made only when the agency determines that financing is not otherwise available, in whole or in part, from private lenders upon equivalent terms and conditions. Loans under this subdivision or subdivision 14 may:

(1) be integrated with a utility's on-bill repayment program approved under section 216B.241, subdivision 5d; and

(2) also be made for the installation of on-site solar energy or energy storage systems.

Sec. 7.

Minnesota Statutes 2022, section 462A.05, subdivision 15, is amended to read:

Subd. 15.

Rehabilitation grants.

(a) It may make grants to persons and families of low and moderate income to pay or to assist in paying a loan made pursuant to subdivision 14, or to rehabilitate or to assist in rehabilitating existing residential housing owned or occupied by such persons or families. For the purposes of this section, persons of low and moderate income include administrators appointed pursuant to section 504B.425, paragraph (d). No grant shall be made unless the agency determines that the grant will be used primarily to make the housing more desirable to live in, to increase the market value of the housing or for compliance with state, county or municipal building, housing maintenance, fire, health or similar codes and standards applicable to housing, or to accomplish energy conservation deleted text begin related improvementsdeleted text end new text begin , decarbonization, climate resiliency, or other qualified projectsnew text end . In unincorporated areas and municipalities not having codes and standards, the agency may, solely for the purpose of administering this provision, establish codes and standards. No grant for rehabilitation of owner occupied residential housing shall be denied solely because the grant will not be used for placing the residential housing in full compliance with all state, county or municipal building, housing maintenance, fire, health or similar codes and standards applicable to housing. The amount of any grant shall not exceed the lesser of (a) $6,000, or (b) the actual cost of the work performed, or (c) that portion of the cost of rehabilitation which the agency determines cannot otherwise be paid by the person or family without spending an unreasonable portion of the income of the person or family thereon. In making grants, the agency shall determine the circumstances under which and the terms and conditions under which all or any portion thereof will be repaid and shall determine the appropriate security should repayment be required.

(b) The agency may also make grants to rehabilitate or to assist in rehabilitating housing under this subdivision to persons of low and moderate income for the purpose of qualifying as foster parents.

Sec. 8.

Minnesota Statutes 2022, section 462A.05, subdivision 15b, is amended to read:

Subd. 15b.

Energy conservationnew text begin , decarbonization, and climate resiliencynew text end grants.

(a) It may make grants to assist in energy conservation deleted text begin rehabilitation measuresdeleted text end new text begin , decarbonization, climate resiliency, and other qualified projectsnew text end for existing owner occupied housing including, but not limited to: insulation, storm windows and doors, furnace or space heater repair, cleaning or replacement, chimney construction or improvement, weatherstripping and caulking, deleted text begin anddeleted text end structural or other directly related repairsnew text begin , or installationsnew text end essential for energy conservationnew text begin , decarbonization, climate resiliency, and other qualified projectsnew text end . The grant to any household shall not exceed $2,000.

(b) To be eligible for an emergency energy conservationnew text begin , decarbonization, and climate resiliencynew text end grant, a household must be certified as eligible to receive emergency residential heating assistance under either the federal or the state program, and either (1) have had a heating cost for the preceding heating season that exceeded 120 percent of the regional average for the preceding heating season for that energy source as determined by the commissioner of employment and economic development, or (2) be eligible to receive a federal energy conservation grant, but be precluded from receiving the grant because of a need for directly related repairs that cannot be paid for under the federal program. The Housing Finance Agency shall make a reasonable effort to determine whether other state or federal loan and grant programs are available and adequate to finance the intended improvements. An emergency energy conservation grant may be made in conjunction with grants or loans from other state or federal programs that finance other needed rehabilitation work. The receipt of a grant pursuant to this section shall not affect the applicant's eligibility for other Housing Finance Agency loan or grant programs.

Sec. 9.

Minnesota Statutes 2022, section 462A.05, subdivision 21, is amended to read:

Subd. 21.

Rental property loans.

The agency may make or purchase loans to owners of rental property that is occupied or intended for occupancy primarily by low- and moderate-income tenants and which does not comply with the standards established in section 326B.106, subdivision 1, for the purpose of energy improvementsnew text begin , decarbonization, climate resiliency, and other qualified projectsnew text end necessary to bring the property into full or partial compliance with these standards. For property which meets the other requirements of this subdivision, a loan may also be used for moderate rehabilitation of the property. The authority granted in this subdivision is in addition to and not in limitation of any other authority granted to the agency in this chapter. The limitations on eligible mortgagors contained in section 462A.03, subdivision 13, do not apply to loans under this subdivision. Loans for the improvement of rental property pursuant to this subdivision may contain provisions that repayment is not required in whole or in part subject to terms and conditions determined by the agency to be necessary and desirable to encourage owners to maximize rehabilitation of properties.

Sec. 10.

Minnesota Statutes 2022, section 462A.05, subdivision 23, is amended to read:

Subd. 23.

Insuring financial institution loans.

The agency may participate in loans or establish a fund to insure loans, or portions of loans, that are made by any banking institution, savings association, or other lender approved by the agency, organized under the laws of this or any other state or of the United States having an office in this state, to owners of renter-occupied homes or apartments that do not comply with standards set forth in section 326B.106, subdivision 1, without limitations relating to the maximum incomes of the owners or tenants. The proceeds of the insured portion of the loan must be used to pay the costs of improvements, including all related structural and other improvements, that will reduce energy consumptionnew text begin , that will decarbonize, and that will ensure the climate resiliency of housingnew text end .

Sec. 11.

Minnesota Statutes 2023 Supplement, section 462A.05, subdivision 45, is amended to read:

Subd. 45.

Indian Tribes.

Notwithstanding any other provision in this chapter, at its discretion the agency may make any federally recognized Indian Tribe in Minnesota, or their associated Tribally Designated Housing Entity (TDHE) as defined by United States Code, title 25, section 4103(22), eligible for new text begin agency new text end funding deleted text begin authorized under this chapterdeleted text end .

Sec. 12.

Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision to read:

new text begin Subd. 18. new text end

new text begin Rent and income limits. new text end

new text begin Notwithstanding any law to the contrary, to promote efficiency in program administration, underwriting, and compliance, the commissioner may adjust income or rent limits for any multifamily capital funding program authorized under state law to align with federal rent or income limits in sections 42 and 142 of the Internal Revenue Code of 1986, as amended. Adjustments made under this subdivision are exempt from the rulemaking requirements of chapter 14. new text end

Sec. 13.

Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision to read:

new text begin Subd. 19. new text end

new text begin Report to the legislature. new text end

new text begin (a) By February 15 each year, the commissioner must submit a report to the chairs and ranking minority members of the legislative committees having jurisdiction over housing finance and policy containing the following information: new text end

new text begin (1) the total number of applications for funding; new text end

new text begin (2) the amount of funding requested; new text end

new text begin (3) the amounts of funding awarded; and new text end

new text begin (4) the number of housing units that are affected by funding awards, including the number of: new text end

new text begin (i) newly constructed owner-occupied units; new text end

new text begin (ii) renovated owner-occupied units; new text end

new text begin (iii) newly constructed rental units; and new text end

new text begin (iv) renovated rental units. new text end

new text begin (b) This reporting requirement applies to appropriations for competitive development programs made in Laws 2023 and in subsequent laws. new text end

Sec. 14.

Minnesota Statutes 2022, section 462A.07, is amended by adding a subdivision to read:

new text begin Subd. 20. new text end

new text begin Eligibility for agency programs. new text end

new text begin The agency may determine that a household or project unit meets the rent or income requirements for a program if the household or unit receives or participates in income-based state or federal public assistance benefits, including but not limited to: new text end

new text begin (1) child care assistance programs under chapter 119B; new text end

new text begin (2) general assistance, Minnesota supplemental aid, or food support under chapter 256D; new text end

new text begin (3) housing support under chapter 256I; new text end

new text begin (4) Minnesota family investment program and diversionary work program under chapter 256J; and new text end

new text begin (5) economic assistance programs under chapter 256P. new text end

Sec. 15.

Minnesota Statutes 2022, section 462A.21, subdivision 7, is amended to read:

Subd. 7.

Energy efficiency loans.

The agency may make loans to low and moderate income persons who own existing residential housing for the purpose of improving the deleted text begin efficientdeleted text end energy deleted text begin utilizationdeleted text end new text begin decarbonization and climate resiliencynew text end of the housing. Permitted improvements shall include installation or upgrading of ceiling, wall, floor and duct insulation, storm windows and doors, and caulking and weatherstripping. The improvements shall not be inconsistent with the energy standards as promulgated as part of the State Building Code; provided that the improvements need not bring the housing into full compliance with the energy standards. Any loan for such purpose shall be made only upon determination by the agency that such loan is not otherwise available, wholly or in part, from private lenders upon equivalent terms and conditions. The agency may promulgate rules as necessary to implement and make specific the provisions of this subdivision. The rules shall be designed to permit the state, to the extent not inconsistent with this chapter, to seek federal grants or loans for energy deleted text begin purposesdeleted text end new text begin decarbonization, climate resiliency, and other qualified projectsnew text end .

Sec. 16.

Minnesota Statutes 2023 Supplement, section 462A.22, subdivision 1, is amended to read:

Subdivision 1.

new text begin Agency new text end debt deleted text begin ceilingdeleted text end new text begin capacitynew text end .

The aggregate principal amount of general obligation bonds and notes which are outstanding at any time, excluding the principal amount of any bonds and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of deleted text begin $5,000,000,000deleted text end new text begin $9,000,000,000new text end .

Sec. 17.

Minnesota Statutes 2022, section 462A.35, subdivision 2, is amended to read:

Subd. 2.

Expending funds.

The agency may expend the money in the Minnesota manufactured home relocation trust fund to the extent necessary to carry out the objectives of section 327C.095, subdivision 13, by making payments to manufactured home owners, or other parties approved by the third-party neutral, under subdivision 13, paragraphs (a) and (e), and to pay the costs of administering the fund. Money in the fund is appropriated to the agency for these purposes and deleted text begin to the commissioner of management and budgetdeleted text end to pay costs incurred deleted text begin by the commissioner of management and budgetdeleted text end to administer the fund.

Sec. 18.

Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 2, is amended to read:

Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate principal amount of housing infrastructure bonds in one or more series to which the payment made under this section may be pledged. The housing infrastructure bonds authorized in this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and (7), on terms and conditions the agency deems appropriate, made for one or more of the following purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive housingnew text begin where at least 50 percent of units are set asidenew text end for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned housing to be used for affordable rental housingnew text begin or for affordable home ownershipnew text end and the costs of new construction of rental housing on abandoned or foreclosed property where the existing structures will be demolished or removed;

(3) to finance that portion of the costs of acquisition of property that is attributable to the land to be leased by community land trusts to low- and moderate-income home buyers;

(4) to finance the acquisition, improvement, and infrastructure of manufactured home parks under section 462A.2035, subdivision 1b;

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction of senior housing;

(6) to finance the costs of acquisition, rehabilitation, and replacement of federally assisted rental housing and for the refinancing of costs of the construction, acquisition, and rehabilitation of federally assisted rental housing, including providing funds to refund, in whole or in part, outstanding bonds previously issued by the agency or another government unit to finance or refinance such costs;

(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction of single-family housing; deleted text begin anddeleted text end

(8) to finance the costs of construction, acquisition, and rehabilitation of permanent housing that is affordable to households with incomes at or below 50 percent of the area median income for the applicable county or metropolitan area as published by the Department of Housing and Urban Development, as adjusted for household sizedeleted text begin .deleted text end new text begin ; andnew text end

new text begin (9) to finance the costs of construction, acquisition, rehabilitation, conversion, and development of cooperatively owned housing created under chapter 308A, 308B, or 308C that is affordable to low- and moderate-income households. new text end

(b) Among comparable proposals for permanent supportive housing, preference shall be given to permanent supportive housing for veterans and other individuals or families who:

(1) either have been without a permanent residence for at least 12 months or at least four times in the last three years; or

(2) are at significant risk of lacking a permanent residence for 12 months or at least four times in the last three years.

(c) Among comparable proposals for senior housing, the agency must give priority to requests for projects that:

(1) demonstrate a commitment to maintaining the housing financed as affordable to senior households;

(2) leverage other sources of funding to finance the project, including the use of low-income housing tax credits;

(3) provide access to services to residents and demonstrate the ability to increase physical supports and support services as residents age and experience increasing levels of disability; and

(4) include households with incomes that do not exceed 30 percent of the median household income for the metropolitan area.

(d) To the extent practicable, the agency shall balance the loans made between projects in the metropolitan area and projects outside the metropolitan area. Of the loans made to projects outside the metropolitan area, the agency shall, to the extent practicable, balance the loans made between projects in counties or cities with a population of 20,000 or less, as established by the most recent decennial census, and projects in counties or cities with populations in excess of 20,000.

(e) Among comparable proposals for permanent housing, the agency must give preference to projects that will provide housing that is affordable to households at or below 30 percent of the area median income.

(f) If a loan recipient uses the loan for new construction deleted text begin or substantial rehabilitationdeleted text end as defined by the agency on a building containing more than four units, the loan recipient must construct, convert, or otherwise adapt the building to include:

(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are accessible units, deleted text begin as defined by section 1002 of the current State Building Code Accessibility Provisions for Dwelling Units in Minnesota, and includedeleted text end new text begin and each accessible unit includesnew text end at least one roll-in showernew text begin , water closet, and kitchen work surface meeting the requirements of section 1002 of the current State Building Code Accessibility Provisions for Dwelling Units in Minnesotanew text end ; and

(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are sensory-accessible units that include:

(A) soundproofing between shared walls for first and second floor units;

(B) no florescent lighting in units and common areas;

(C) low-fume paint;

(D) low-chemical carpet; and

(E) low-chemical carpet glue in units and common areas.

Nothing in this paragraph relieves a project funded by the agency from meeting other applicable accessibility requirements.

Sec. 19.

Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to read:

new text begin Subd. 2j. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions 2 to 2i, the agency may issue up to $50,000,000 in one or more series to which the payments under this section may be pledged. new text end

Sec. 20.

Minnesota Statutes 2023 Supplement, section 462A.37, subdivision 5, is amended to read:

Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the commissioner of management and budget the actual amount of annual debt service on each series of bonds issued under this section.

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

new text begin (j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those bonds, remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget. new text end

deleted text begin (j)deleted text end new text begin (k) new text end The agency may pledge to the payment of the housing infrastructure bonds the payments to be made by the state under this section.

Sec. 21.

Minnesota Statutes 2023 Supplement, section 462A.38, subdivision 2, is amended to read:

Subd. 2.

Use of funds.

(a) Grant funds and loans awarded under this program may be used for:

(1) development costs;

(2) rehabilitation;

(3) land development; deleted text begin anddeleted text end

new text begin (4) affordability gap; and new text end

deleted text begin (4)deleted text end new text begin (5)new text end residential housing, including storm shelters and related community facilities.

(b) A project funded through this program shall serve households that meet the income limits as provided in section 462A.33, subdivision 5, unless a project is intended for the purpose outlined in section 462A.02, subdivision 6.

Sec. 22.

Minnesota Statutes 2023 Supplement, section 462A.39, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

(b) "Eligible project area" means a home rule charter or statutory city located outside of a metropolitan county as defined in section 473.121, subdivision 4deleted text begin , with a population exceeding 500; a community that has a combined population of 1,500 residents located within 15 miles of a home rule charter or statutory city located outside a metropolitan county as defined in section 473.121, subdivision 4deleted text end ; federally recognized Tribal reservations; or an area served by a joint county-city economic development authority.

(c) "Joint county-city economic development authority" means an economic development authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between a city and county and excluding those established by the county only.

(d) "Market rate residential rental properties" means properties that are rented at market value, including new modular homes, new manufactured homes, and new manufactured homes on leased land or in a manufactured home park, and may include rental developments that have a portion of income-restricted units.

(e) "Qualified expenditure" means expenditures for market rate residential rental properties including acquisition of property; construction of improvements; and provisions of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing costs.

Sec. 23.

Minnesota Statutes 2023 Supplement, section 462A.395, is amended to read:

462A.395 GREATER MINNESOTA HOUSING INFRASTRUCTURE GRANT PROGRAM.

Subdivision 1.

Grant program established.

The commissioner of the Minnesota Housing Finance Agency may make grants to new text begin counties and new text end cities to provide up to 50 percent of the capital costs of public infrastructure necessary for an eligible workforce housing development project. The commissioner may make a grant award only after determining that nonstate resources are committed to complete the project. The nonstate contribution may be cash, other committed grant funds, or in kind. In-kind contributions may include the value of the site, whether the site is prepared before or after the law appropriating money for the grant is enacted.

Subd. 2.

Definitions.

(a) For the purposes of this section, the following terms have the meanings given.

(b) "City" means a statutory or home rule charter city located outside the metropolitan area, as defined in section 473.121, subdivision 2.

(c) "Housing infrastructure" means publicly owned physical infrastructure necessary to support housing development projects, including but not limited to sewers, water supply systems, utility extensions, streets, wastewater treatment systems, stormwater management systems, and facilities for pretreatment of wastewater to remove phosphorus.

Subd. 3.

Eligible projects.

Housing projects eligible for a grant under this section may be a single-family or multifamily housing development, and either owner-occupied or rental.new text begin Housing projects eligible for a grant under this section may also be a manufactured home development qualifying for homestead treatment under section 273.124, subdivision 3a.new text end

Subd. 4.

Application.

(a) The commissioner must develop forms and procedures for soliciting and reviewing applications for grants under this section. At a minimum, a citynew text begin or countynew text end must include in its application a resolution of the new text begin county board or new text end city council certifying that the required nonstate match is available. The commissioner must evaluate complete applications for funding for eligible projects to determine that:

(1) the project is necessary to increase sites available for housing development that will provide adequate housing stock for the current or future workforce; and

(2) the increase in workforce housing will result in substantial public and private capital investment in the new text begin county or new text end city in which the project would be located.

(b) The determination of whether to make a grant for a site is within the discretion of the commissioner, subject to this section. The commissioner's decisions and application of the criteria are not subject to judicial review, except for abuse of discretion.

Subd. 5.

Maximum grant amount.

A new text begin county or new text end city may receive no more than deleted text begin $30,000deleted text end new text begin $40,000new text end per lot for single-family, duplex, triplex, or fourplex housing developednew text begin , no more than $60,000 per manufactured housing lot,new text end and no more than $180,000 per lot for multifamily housing with more than four units per building. A new text begin county or new text end city may receive no more than $500,000 in two years for one or more housing developments.new text begin The $500,000 limitation does not apply to use on manufactured housing developments.new text end

Sec. 24.

Minnesota Statutes 2022, section 462A.40, subdivision 2, is amended to read:

Subd. 2.

Use of funds; grant and loan program.

(a) The agency may award grants and loans to be used for multifamily and single family developments for persons and families of low and moderate income. Allowable use of the funds include: gap financing, as defined in section 462A.33, subdivision 1; new construction; acquisition; rehabilitation; demolition or removal of existing structures; construction financing; permanent financing; interest rate reduction; and refinancing.

(b) The agency may give preference for grants and loans to comparable proposals that include regulatory changes or waivers that result in identifiable cost avoidance or cost reductions, including but not limited to increased density, flexibility in site development standards, or zoning code requirements.

deleted text begin (c) The agency shall separately set aside: deleted text end

deleted text begin (1) at least ten percent of the financing under this section for housing units located in a township or city with a population of 2,500 or less that is located outside the metropolitan area, as defined in section 473.121, subdivision 2; deleted text end

deleted text begin (2) at least 35 percent of the financing under this section for housing for persons and families whose income is 50 percent or less of the area median income for the applicable county or metropolitan area as published by the Department of Housing and Urban Development, as adjusted for household size; and deleted text end

deleted text begin (3) at least 25 percent of the financing under this section for single-family housing. deleted text end

deleted text begin (d) If by September 1 of each year the agency does not receive requests to use all of the amounts set aside under paragraph (c), the agency may use any remaining financing for other projects eligible under this section. deleted text end

Sec. 25.

Minnesota Statutes 2022, section 462A.40, subdivision 3, is amended to read:

Subd. 3.

Eligible recipients; definitions; restrictions; use of funds.

(a) The agency may award new text begin a grant or new text end a loan to any recipient that qualifies under subdivision 2. The agency must not award a grant new text begin or a loan new text end to a disqualified individual or disqualified business.

(b) For the purposes of this subdivision disqualified individual means deleted text begin an individual whodeleted text end :

(1) new text begin an individual who or an individual whose immediate family member new text end made a contribution to the account in the current or prior taxable year and received a credit certificate;

(2) new text begin an individual who or an individual whose immediate family member new text end owns the housing for which the grant or loan will be used deleted text begin and is using that housing as their domiciledeleted text end ;

(3) new text begin an individual who new text end meets the following criteria:

(i) the individual is an officer or principal of a business entity; and

(ii) that business entity made a contribution to the account in the current or previous taxable year and received a credit certificate; or

(4) new text begin an individual who new text end meets the following criteria:

(i) the individual new text begin directly new text end owns, controls, or holds the power to vote 20 percent or more of the outstanding securities of a business entity; and

(ii) that business entity made a contribution to the account in the current or previous taxable year and received a credit certificate.

(c) For the purposes of this subdivision disqualified business means a business entity that:

(1) made a contribution to the account in the current or prior taxable year and received a credit certificate;

(2) has an officer or principal who is an individual who made a contribution to the account in the current or previous taxable year and received a credit certificate; or

(3) meets the following criteria:

(i) the business entity is new text begin directly new text end owned, controlled, or is subject to the power to vote 20 percent or more of the outstanding securities by an individual or business entity; and

(ii) that controlling individual or business entity made a contribution to the account in the current or previous taxable year and received a credit certificate.

(d) deleted text begin The disqualifications in paragraphs (b) and (c) apply if the taxpayer would be disqualified either individually or in combination with one or more members of the taxpayer's family, as defined in the Internal Revenue Code, section 267(c)(4).deleted text end new text begin For purposes of this subdivision, "immediate family" means the taxpayer's spouse, parent or parent's spouse, sibling or sibling's spouse, or child or child's spouse.new text end For a married couple filing a joint return, the limitations in this deleted text begin paragraphdeleted text end new text begin subdivisionnew text end apply collectively to the taxpayer and spouse. deleted text begin For purposes of determining the ownership interest of a taxpayer under paragraph (a), clause (4), the rules under sections 267(c) and 267(e) of the Internal Revenue Code apply.deleted text end

(e) Before applying for a grant or loan, all recipients must sign a disclosure that the disqualifications under this subdivision do not apply. The Minnesota Housing Finance Agency must prescribe the form of the disclosure.new text begin The Minnesota Housing Finance Agency may rely on the disclosure to determine the eligibility of recipients under paragraph (a).new text end

(f) The agency may award grants or loans to a city as defined in section 462A.03, subdivision 21; a federally recognized American Indian tribe or subdivision located in Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a housing and redevelopment authority under sections 469.001 to 469.047; a public housing authority or agency authorized by law to exercise any of the powers granted by sections 469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible recipients apply to grants and loans awarded under this paragraph.

(g) deleted text begin Except for the set-aside provided in subdivision 2, paragraph (d),deleted text end Eligible recipients must use the funds to serve households that meet the income limits as provided in section 462A.33, subdivision 5.

Sec. 26.

Minnesota Statutes 2023 Supplement, section 473.145, is amended to read:

473.145 DEVELOPMENT GUIDE.

(a) The Metropolitan Council must prepare and adopt, after appropriate study and such public hearings as may be necessary, a comprehensive development guide for the metropolitan area. It must consist of a compilation of policy statements, goals, standards, programs, and maps prescribing guides for the orderly and economical development, public and private, of the metropolitan area. The comprehensive development guide must recognize and encompass physical, social, or economic needs of the metropolitan area and those future developments which will have an impact on the entire area including but not limited to such matters as land use, climate mitigation and adaptation, parks and open space land needs, the necessity for and location of airports, highways, transit facilities, public hospitals, libraries, schools, and other public buildings.

(b) For the purposes of this section, "climate mitigation and adaptation" includes mitigation goals and strategies that meet or exceed the greenhouse gas emissions-reduction goals established by the state under section 216H.02, subdivision 1, and transportation targets established by the commissioner of transportation, including vehicle miles traveled reduction targets established in the statewide multimodal transportation plan under section 174.03, subdivision 1a, as well as plans and policies to address climate adaptation in the region. The commissioner of transportation must consult with the Metropolitan Council on transportation targets prior to establishing the targets.

new text begin (c) Notwithstanding any other provision of law, no decision adopting or authorizing a comprehensive plan shall be subject to the requirements of chapter 116D. Nothing in this paragraph exempts individual projects, as defined by Minnesota Rules, part 4410.0200, subpart 65, from the requirements of chapter 116D and applicable rules. new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following final enactment and applies to all comprehensive plans and amendments adopted by any local governmental unit, as defined under Minnesota Statutes, section 473.852, subdivision 7, and authorized by the Metropolitan Council during the most recent decennial review under Minnesota Statutes, section 473.864, and for subsequent reviews under Minnesota Statutes, section 473.864, thereafter. This section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. new text end

Sec. 27.

Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 2, is amended to read:

Subd. 2.

Definitions.

new text begin (a) new text end For the purposes of this section, the following terms have the meanings givendeleted text begin :deleted text end new text begin .new text end

deleted text begin (1)deleted text end new text begin (b)new text end "City distribution factor" means the number of households in a tier I city that are cost-burdened divided by the total number of households that are cost-burdened in tier I cities. The number of cost-burdened households shall be determined using the most recent estimates or experimental estimates provided by the American Community Survey of the United States Census Bureau as of May 1 of the aid calculation yeardeleted text begin ;deleted text end new text begin .new text end

deleted text begin (2)deleted text end new text begin (c)new text end "Cost-burdened household" means a household in which gross rent is 30 percent or more of household income or in which homeownership costs are 30 percent or more of household incomedeleted text begin ;deleted text end new text begin .new text end

deleted text begin (3)deleted text end new text begin (d)new text end "County distribution factor" means the number of households in a county that are cost-burdened divided by the total number of households in metropolitan counties that are cost-burdened. The number of cost-burdened households shall be determined using the most recent estimates or experimental estimates provided by the American Community Survey of the United States Census Bureau as of May 1 of the aid calculation yeardeleted text begin ;deleted text end new text begin .new text end

new text begin (e) "Locally funded housing expenditures" means expenditures of the aid recipient, including expenditures by a public corporation or legal entity created by the aid recipient, that are: new text end

new text begin (1) funded from the recipient's general fund, a property tax levy of the recipient or its housing and redevelopment authority, or unrestricted money available to the recipient, but not including tax increments; and new text end

new text begin (2) expended on one of the following qualifying activities: new text end

new text begin (i) financial assistance to residents in arrears on rent, mortgage, utilities, or property tax payments; new text end

new text begin (ii) support services, case management services, and legal services for residents in arrears on rent, mortgage, utilities, or property tax payments; new text end

new text begin (iii) down payment assistance or homeownership education, counseling, and training; new text end

new text begin (iv) acquisition, construction, rehabilitation, adaptive reuse, improvement, financing, and infrastructure of residential dwellings; new text end

new text begin (v) costs of operating emergency shelter, transitional housing, supportive housing, or publicly owned housing, including costs of providing case management services and support services; and new text end

new text begin (vi) rental assistance. new text end

deleted text begin (4)deleted text end new text begin (f)new text end "Metropolitan area" has the meaning given in section 473.121, subdivision 2;

deleted text begin (5)deleted text end new text begin (g)new text end "Metropolitan county" has the meaning given in section 473.121, subdivision 4;

deleted text begin (6)deleted text end new text begin (h)new text end "Population" has the meaning given in section 477A.011, subdivision 3; and

deleted text begin (7)deleted text end new text begin (i)new text end "Tier I city" means a statutory or home rule charter city that is a city of the first, second, or third class and is located in a metropolitan county.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024. new text end

Sec. 28.

Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 4, is amended to read:

Subd. 4.

Qualifying projects.

(a) Qualifying projects deleted text begin shalldeleted text end include:

(1) emergency rental assistance for households earning less than 80 percent of area median income as determined by the United States Department of Housing and Urban Development;

(2) financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable and supportive housing; deleted text begin anddeleted text end

(3) projects designed for the purpose of construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing of housing to provide affordable housing to households that have incomes which do not exceed, for homeownership projects, 115 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development, and for rental housing projects, 80 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development, except that the housing developed or rehabilitated with funds under this section must be affordable to the local work forcenew text begin ;new text end

new text begin (4) financing the operations and management of financially distressed residential properties; new text end

new text begin (5) funding of supportive services or staff of supportive services providers for supportive housing as defined by section 462A.37, subdivision 1. Financial support to nonprofit housing providers to finance supportive housing operations may be awarded as a capitalized reserve or as an award of ongoing funding; and new text end

new text begin (6) costs of operating emergency shelter facilities, including the costs of providing servicesnew text end .

deleted text begin Projects shall be prioritizeddeleted text end new text begin (b) Recipients must prioritize projectsnew text end that provide affordable housing to households that have incomes which do not exceed, for homeownership projects, 80 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development, and for rental housing projects, 50 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development. Priority may be given to projects that: reduce disparities in home ownership; reduce housing cost burden, housing instability, or homelessness; improve the habitability of homes; create accessible housing; or create more energy- or water-efficient homes.

deleted text begin (b)deleted text end new text begin (c)new text end Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition, rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household can afford for housing, based on industry standards and practices.

deleted text begin (c)deleted text end new text begin (d)new text end If aid under this section is used for demolition or removal of existing structures, the cleared land must be used for the construction of housing to be owned or rented by persons who meet the income limits of paragraph (a).

deleted text begin (d)deleted text end new text begin (e)new text end If an aid recipient uses the aid on new construction deleted text begin or substantial rehabilitationdeleted text end of a building containing more than four units, the loan recipient must construct, convert, or otherwise adapt the building to include:

(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are accessible units, deleted text begin as defined by section 1002 of the current State Building Code deleted text end deleted text begin Accessibility Provisions for Dwelling Units in Minnesota, and includedeleted text end new text begin and each accessible unit includesnew text end at least one roll-in showernew text begin , water closet, and kitchen work surface meeting the requirements of section 1002 of the current State Building Code Accessibility Provisions for Dwelling Units in Minnesotanew text end ; and

(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are sensory-accessible units that include:

(A) soundproofing between shared walls for first and second floor units;

(B) no florescent lighting in units and common areas;

(C) low-fume paint;

(D) low-chemical carpet; and

(E) low-chemical carpet glue in units and common areas.

Nothing in this paragraph relieves a project funded by this section from meeting other applicable accessibility requirements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024. new text end

Sec. 29.

Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 5, is amended to read:

Subd. 5.

Use of proceeds.

(a) Any funds distributed under this section must be spent on a qualifying project. Funds are considered spent on a qualifying project if:

(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that the city or county cannot expend funds on a qualifying project by the deadline imposed by paragraph (b) due to factors outside the control of the city or county; and

(2) the funds are transferred to a local housing trust fund.

Funds transferred to a local housing trust fund under this paragraph must be spent on a project or household that meets the affordability requirements of subdivision 4, paragraph (a).

(b) Funds must be spent by December 31 in the third year following the year after the aid was received.new text begin The requirements of this paragraph are satisfied if funds are:new text end

new text begin (1) committed to a qualifying project by December 31 in the third year following the year after the aid was received; and new text end

new text begin (2) expended by December 31 in the fourth year following the year after the aid was received. new text end

new text begin (c) An aid recipient may not use aid money to reimburse itself for prior expenditures. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024. new text end

Sec. 30.

Minnesota Statutes 2023 Supplement, section 477A.35, is amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Conditions for receipt. new text end

new text begin (a) As a condition of receiving aid under this section, a recipient must commit to using funds to supplement, not supplant, existing locally funded housing expenditures, so that the recipient is using the funds to create new or to expand existing housing programs. new text end

new text begin (b) In the annual report required under subdivision 6, a recipient must certify its compliance with this subdivision, including an accounting of locally funded housing expenditures in the prior fiscal year. In a tier I city's or county's first report to the Minnesota Housing Finance Agency, it must document its locally funded housing expenditures in the two prior fiscal years. If a recipient reduces one of its locally funded housing expenditures, the recipient must detail the expenditure, the amount of the reduction, and the reason for the reduction. The certification required under this paragraph must be made available publicly on the website of the recipient. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024. new text end

Sec. 31.

Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 6, is amended to read:

Subd. 6.

Administration.

(a) The commissioner of revenue must compute the amount of aid payable to each tier I city and county under this section. By August 1 of each year, the commissioner must certify the distribution factors of each tier I city and county to be used in the following year. The commissioner must pay local affordable housing aid annually at the times provided in section 477A.015, distributing the amounts available on the immediately preceding June 1 under the accounts established in section 477A.37, subdivisions 2 and 3.

(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later than December 1 of each year, to the Minnesota Housing Finance Agency. The report must include documentation of the location of any unspent funds distributed under this section and of qualifying projects completed or planned with funds under this section. If a tier I city or county fails to submit a report, if a tier I city or county fails to spend funds within the timeline imposed under subdivision 5, paragraph (b), deleted text begin ordeleted text end if a tier I city or county uses funds for a project that does not qualify under this section, new text begin or if a tier I city or county fails to meet its requirements of subdivision 5a, new text end the Minnesota Housing Finance Agency shall notify the Department of Revenue and the cities and counties that must repay funds under paragraph (c) by February 15 of the following year.

(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or county received under this section if the city or county:

(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);

(2) spends the funds on anything other than a qualifying project; deleted text begin ordeleted text end

(3) fails to submit a report documenting use of the fundsdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (4) fails to meet the requirements of subdivision 5a. new text end

(d) The commissioner of revenue must stop distributing funds to a tier I city or county thatnew text begin requests in writing that the commissioner stop payment or thatnew text end , in three consecutive years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to have failed to use funds, misused funds, or failed to report on its use of funds.new text begin A request to stop payment under this paragraph must be submitted to the commissioner in the form and manner prescribed by the commissioner on or before May 1 of the aids payable year the aid recipient wants the commissioner to stop payment of aid. The commissioner shall not stop payment based on a request received after May 1 until the next aids payable year.new text end

(e) The commissioner may resume distributing funds to a tier I city or county to which the commissioner has stopped payments in the year following the August 1 after the Minnesota Housing Finance Agency certifies that the city or county has submitted documentation of plans for a qualifying project.new text begin The commissioner may resume distributing funds to a tier I city or county to which the commissioner has stopped payments at the request of the city or county in the year following the August 1 after the Minnesota Housing Finance Agency certifies that the city or county has submitted documentation of plans for a qualifying project.new text end

(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph (c) must be deposited in the housing development fund. Funds deposited under this paragraph are appropriated to the commissioner of the Minnesota Housing Finance Agency for use on the family homeless prevention and assistance program under section 462A.204, the economic development and housing challenge program under section 462A.33, and the workforce and affordable homeownership development program under section 462A.38.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2025. new text end

Sec. 32.

Minnesota Statutes 2023 Supplement, section 477A.36, subdivision 1, as amended by Laws 2024, chapter 76, section 4, is amended to read:

Subdivision 1.

Definitions.

new text begin (a) new text end For the purposes of this section, the following terms have the meanings givendeleted text begin :deleted text end new text begin .new text end

deleted text begin (1)deleted text end new text begin (b)new text end "City distribution factor" means the number of households in a tier I city that are cost-burdened divided by the total number of households that are cost-burdened in Minnesota tier I cities. The number of cost-burdened households shall be determined using the most recent estimates or experimental estimates provided by the American Community Survey of the United States Census Bureau as of May 1 of the aid calculation yeardeleted text begin ;deleted text end new text begin .new text end

deleted text begin (2)deleted text end new text begin (c)new text end "Cost-burdened household" means a household in which gross rent is 30 percent or more of household income or in which homeownership costs are 30 percent or more of household incomedeleted text begin ;deleted text end new text begin .new text end

deleted text begin (3)deleted text end new text begin (d)new text end "County distribution factor" means the number of households in a county that are cost-burdened divided by the total number of households in Minnesota that are cost-burdened. The number of cost-burdened households shall be determined using the most recent estimates or experimental estimates provided by the American Community Survey of the United States Census Bureau as of May 1 of the aid calculation yeardeleted text begin ;deleted text end new text begin .new text end

deleted text begin (4)deleted text end new text begin (e)new text end "Eligible Tribal Nation" means any of the 11 federally recognized Indian Tribes located in Minnesota which submit an application under subdivision 6, paragraph (g)deleted text begin ;deleted text end new text begin .new text end

new text begin (f) "Locally funded housing expenditures" means expenditures of the aid recipient, including expenditures by a public corporation or legal entity created by the aid recipient, that are: new text end

new text begin (1) funded from the recipient's general fund, a property tax levy of the recipient or its housing and redevelopment authority, or unrestricted money available to the recipient, but not including tax increments; and new text end

new text begin (2) expended on one of the following qualifying activities: new text end

new text begin (i) financial assistance to residents in arrears on rent, mortgage, utilities, or property tax payments; new text end

new text begin (ii) support services, case management services, and legal services for residents in arrears on rent, mortgage, utilities, or property tax payments; new text end

new text begin (iii) down payment assistance or homeownership education, counseling, and training; new text end

new text begin (iv) acquisition, construction, rehabilitation, adaptive reuse, improvement, financing, and infrastructure of residential dwellings; new text end

new text begin (v) costs of operating emergency shelter, transitional housing, supportive housing, or publicly owned housing, including costs of providing case management services and support services; and new text end

new text begin (vi) rental assistance. new text end

deleted text begin (5)deleted text end new text begin (g)new text end "Population" has the meaning given in section 477A.011, subdivision 3deleted text begin ;deleted text end new text begin .new text end

deleted text begin (6)deleted text end new text begin (h)new text end "Tier I city" means a statutory or home rule charter city that is a city of the first, second, or third class and is not located in a metropolitan county, as defined by section 473.121, subdivision 4deleted text begin ; anddeleted text end new text begin .new text end

deleted text begin (7)deleted text end new text begin (i)new text end "Tier II city" means a statutory or home rule charter city that is a city of the fourth class and is not located in a metropolitan county, as defined by section 473.121, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024. new text end

Sec. 33.

Minnesota Statutes 2023 Supplement, section 477A.36, subdivision 4, is amended to read:

Subd. 4.

Qualifying projects.

(a) Qualifying projects shall include:

(1) emergency rental assistance for households earning less than 80 percent of area median income as determined by the United States Department of Housing and Urban Development;

(2) financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable and supportive housing;

(3) outside the metropolitan counties as defined in section 473.121, subdivision 4, development of market rate residential rental properties, as defined in section 462A.39, subdivision 2, paragraph (d), if the relevant unit of government submits with the report required under subdivision 6 a resolution and supporting documentation showing that the area meets the requirements of section 462A.39, subdivision 4, paragraph (a); deleted text begin anddeleted text end

(4) projects designed for the purpose of construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing of housing to provide affordable housing to households that have incomes which do not exceed, for homeownership projects, 115 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development and, for rental housing projects, 80 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development, except that the housing developed or rehabilitated with funds under this section must be affordable to the local work forcedeleted text begin .deleted text end new text begin ;new text end

new text begin (5) financing the operations and management of financially distressed residential properties; new text end

new text begin (6) funding of supportive services or staff of supportive services providers for supportive housing as defined in section 462A.37, subdivision 1. Financial support to nonprofit housing providers to finance supportive housing operations may be awarded as a capitalized reserve or as an award of ongoing funding; and new text end

new text begin (7) costs of operating emergency shelter facilities, including the costs of providing services. new text end

deleted text begin Projects shall be prioritizeddeleted text end new text begin (b) Recipients must prioritize projectsnew text end that provide affordable housing to households that have incomes that do not exceed, for homeownership projects, 80 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development, and for rental housing projects, 50 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development. Priority may be given to projects that: reduce disparities in home ownership; reduce housing cost burden, housing instability, or homelessness; improve the habitability of homes; create accessible housing; or create more energy- or water-efficient homes.

deleted text begin (b)deleted text end new text begin (c)new text end Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition, rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household can afford for housing, based on industry standards and practices.

deleted text begin (c)deleted text end new text begin (d)new text end If aid under this section is used for demolition or removal of existing structures, the cleared land must be used for the construction of housing to be owned or rented by persons who meet the income limits of paragraph (a).

deleted text begin (d)deleted text end new text begin (e)new text end If an aid recipient uses the aid on new construction deleted text begin or substantial rehabilitationdeleted text end of a building containing more than four units, the loan recipient must construct, convert, or otherwise adapt the building to include:

(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are accessible units, deleted text begin as defined by section 1002 of the current State Building Code Accessibility Provisions for Dwelling Units in Minnesota, and includedeleted text end new text begin and each accessible unit includesnew text end at least one roll-in showernew text begin , water closet, and kitchen work surface meeting the requirements of section 1002 of the current State Building Code Accessibility Provisions for Dwelling Units in Minnesotanew text end ; and

(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are sensory-accessible units that include:

(A) soundproofing between shared walls for first and second floor units;

(B) no florescent lighting in units and common areas;

(C) low-fume paint;

(D) low-chemical carpet; and

(E) low-chemical carpet glue in units and common areas.

Nothing in this paragraph relieves a project funded by this section from meeting other applicable accessibility requirements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024. new text end

Sec. 34.

Minnesota Statutes 2023 Supplement, section 477A.36, subdivision 5, is amended to read:

Subd. 5.

Use of proceeds.

(a) Any funds distributed under this section must be spent on a qualifying project. If a tier I city or county demonstrates to the Minnesota Housing Finance Agency that the tier I city or county cannot expend funds on a qualifying project by the deadline imposed by paragraph (b) due to factors outside the control of the tier I city or county, funds shall be considered spent on a qualifying project if the funds are transferred to a local housing trust fund. Funds transferred to a local housing trust fund must be spent on a project or household that meets the affordability requirements of subdivision 4, paragraph (a).

(b) deleted text begin Any funds must be returned to the commissioner of revenue if the funds are not spent by December 31 in the third year following the year after the aid was received.deleted text end new text begin Funds must be spent by December 31 in the third year following the year after the aid was received. The requirements of this paragraph are satisfied if funds are:new text end

new text begin (1) committed to a qualifying project by December 31 in the third year following the year after the aid was received; and new text end

new text begin (2) expended by December 31 in the fourth year following the year after the aid was received. new text end

new text begin (c) An aid recipient may not use aid funds to reimburse itself for prior expenditures. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024. new text end

Sec. 35.

Minnesota Statutes 2023 Supplement, section 477A.36, is amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Conditions for receipt. new text end

new text begin (a) As a condition of receiving aid under this section, a recipient must commit to using money to supplement, not supplant, existing locally funded housing expenditures, so that the recipient is using the funds to create new or to expand existing housing programs. new text end

new text begin (b) In the annual report required under subdivision 6, a recipient must certify compliance with this subdivision, including an accounting of locally funded housing expenditures in the prior fiscal year. In an aid recipient's first report to the Minnesota Housing Finance Agency, the aid recipient must document its locally funded housing expenditures in the two prior fiscal years. If a recipient reduces one of its locally funded housing expenditures, the recipient must detail the expenditure, the amount of the reduction, and the reason for the reduction. The certification required under this paragraph must be made available publicly on the recipient's website. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2024. new text end

Sec. 36.

Minnesota Statutes 2023 Supplement, section 477A.36, subdivision 6, as amended by Laws 2024, chapter 76, section 5, is amended to read:

Subd. 6.

Administration.

(a) The commissioner of revenue must compute the amount of aid payable to each aid recipient under this section. Beginning with aids payable in calendar year 2024, before computing the amount of aid for counties and after receiving the report required by subdivision 3, paragraph (e), the commissioner shall compute the amount necessary to increase the amount in the account or accounts established under that paragraph to $1,250,000. The amount calculated under the preceding sentence shall be deducted from the amount available to counties for the purposes of certifying the amount of aid to be paid to counties in the following year. By August 1 of each year, the commissioner must certify the amount to be paid to each tier I city and county in the following year. The commissioner must pay statewide local housing aid to tier I cities and counties annually at the times provided in section 477A.015. Before paying the first installment of aid annually, the commissioner of revenue shall transfer to the Minnesota Housing Finance Agency from the funds available for counties, for deposit in the account or accounts established under subdivision 3, paragraph (e), the amount computed in the prior year to be necessary to increase the amount in the account or accounts established under that paragraph to $1,250,000.

(b) Beginning in 2025, aid recipients shall submit a report annually, no later than December 1 of each year, to the Minnesota Housing Finance Agency. The report shall include documentation of the location of any unspent funds distributed under this section and of qualifying projects completed or planned with funds under this section. If an aid recipient fails to submit a report, fails to spend funds within the timeline imposed under subdivision 5, paragraph (b), deleted text begin ordeleted text end uses funds for a project that does not qualify under this section, new text begin or if an aid recipient fails to meet the requirements of subdivision 5a, new text end the Minnesota Housing Finance Agency shall notify the Department of Revenue and the aid recipient must repay funds under paragraph (c) by February 15 of the following year.

(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, an aid recipient must pay to the Minnesota Housing Finance Agency funds the aid recipient received under this section if the aid recipient:

(1) fails to spend the funds within the time allowed under subdivision 5, paragraph (b);

(2) spends the funds on anything other than a qualifying project; deleted text begin ordeleted text end

(3) fails to submit a report documenting use of the fundsdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (4) fails to meet the requirements of subdivision 5a. new text end

(d) The commissioner of revenue must stop distributing funds to an aid recipient that new text begin requests in writing that the commissioner stop payment or that new text end the Minnesota Housing Finance Agency reports to have, in three consecutive years, failed to use funds, misused funds, or failed to report on its use of funds.new text begin A request to stop payment under this paragraph must be submitted to the commissioner in the form and manner prescribed by the commissioner on or before May 1 of the year prior to the aids payable year in which the aid recipient wants the commissioner to stop payment of aid. The commissioner shall not stop payment based on a request received after May 1 until aids payable based on certification in the following calendar year.new text end

(e) The commissioner may resume distributing funds to an aid recipient to which the commissioner has stopped payments in the year following the August 1 after the Minnesota Housing Finance Agency certifies that the city or county has submitted documentation of plans for a qualifying project.new text begin The commissioner may resume distributing funds to an aid recipient to which the commissioner has stopped payments at the request of the recipient in the year following the August 1 after the Minnesota Housing Finance Agency certifies that the recipient has submitted documentation of plans for a qualifying project.new text end

(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph (c) must be deposited in the housing development fund. Funds deposited under this paragraph are appropriated to the commissioner of the Minnesota Housing Finance Agency for use on the family homeless prevention and assistance program under section 462A.204, the economic development and housing challenge program under section 462A.33, and the workforce and affordable homeownership development program under section 462A.38.

(g) An eligible Tribal Nation may choose to receive an aid distribution under this section by submitting an application under this subdivision. An eligible Tribal Nation which has not received a distribution in a prior aids payable year may elect to begin participation in the program by submitting an application in the manner and form prescribed by the commissioner of revenue by January 15 of the aids payable year. In order to receive a distribution, an eligible Tribal Nation must certify to the commissioner of revenue the most recent estimate of the total number of enrolled members of the eligible Tribal Nation. The information must be annually certified by March 1 in the form prescribed by the commissioner of revenue. The commissioner of revenue must annually calculate and certify the amount of aid payable to each eligible Tribal Nation on or before August 1 of the aids payable year. The commissioner of revenue must pay statewide local housing aid to eligible Tribal Nations annually by December 27 of the year the aid is certified.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2025. new text end

Sec. 37.

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

Subd. 32.

Northland Foundation

1,000,000 -0-

This appropriation is for a grant to Northland Foundation for use on expenditures authorized under Minnesota Statutes, section 462C.16, subdivision 3new text begin , to assist and support communities in providing housing locally,new text end and deleted text begin ondeleted text end new text begin fornew text end assisting local governments to establish local or regional housing trust funds. Northland Foundation may award grants and loans to other entities to expend on authorized expenditures under this section. This appropriation is onetime and available until June 30, 2025.

Sec. 38.

Laws 2023, chapter 37, article 2, section 6, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The Minnesota Housing Finance Agency shall establish a community stabilization program to provide grants or loans to preserve naturally occurring affordable housing deleted text begin through acquisition or rehabilitationdeleted text end new text begin and support recapitalization of distressed buildingsnew text end .

Sec. 39.

Laws 2023, chapter 37, article 2, section 6, subdivision 2, is amended to read:

Subd. 2.

Definitions.

new text begin (a) new text end For the purposes of this section, new text begin the following terms have the meanings given.new text end

new text begin (b) new text end "Naturally occurring affordable housing" means:

(1) multiunit rental housing that:

(i) is at least 20 years old;

(ii) has rents in a majority of units that are affordable to households at or below 60 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development; and

(iii) does not currently have federal or state financing or tax credits that require income or rent restrictions, except for public housing, as defined in Section 9 of the Housing Act of 1937, that is part of a mixed-finance community; or

deleted text begin (2) owner-occupied housing located in communities where market pressures or significant deferred rehabilitation needs, as defined by the agency, create opportunities for displacement or the loss of owner-occupied housing affordable to households at or below 115 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development. deleted text end

new text begin (2) single-family housing that is: new text end

new text begin (i) one to four units; new text end

new text begin (ii) located in communities where market pressures or significant deferred rehabilitation needs, as defined by the agency, create opportunities for displacement or the loss of owner-occupied or single-family rental housing; and new text end

new text begin (iii) affordable to owner-occupied households at or below 115 percent or rental households at or below 80 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development. new text end

new text begin (c) "Distressed building" means an existing rental housing building in which the units are restricted to households at or below 60 percent of the area median income and that: new text end

new text begin (1) is at imminent risk of foreclosure, closure, or sale that would result in permanent loss of affordability; new text end

new text begin (2) has two or more years of negative net operating income, exclusive of financial or in-kind operating support from the owner of the property; new text end

new text begin (3) has two or more years with a debt service coverage ratio less than one; or new text end

new text begin (4) has necessary costs of repair, replacement, or maintenance that exceed the project reserves available for those purposes. new text end

new text begin (d) "Recapitalization" means financing for the physical and financial needs of a distressed building, including restructuring and forgiveness of amortizing and deferred debt, principal and interest paydown, interest rate write-down, deferral of debt payments, mortgage payment forbearance, deferred maintenance and rehabilitation, funding of reserves, and property operating costs including but not limited to supportive services, security services, and property insurance. Recapitalization may include financing to sell or transfer ownership of a property to a qualified owner that will commit to long-term affordability as determined by the commissioner. new text end

Sec. 40.

Laws 2023, chapter 37, article 2, section 6, subdivision 4, is amended to read:

Subd. 4.

Eligible uses.

new text begin (a) new text end The program shall provide grants or loans for the purpose of acquisition, rehabilitation, interest rate reduction, or gap financing of housing to support the preservation of naturally occurring affordable housingnew text begin or recapitalization of distressed buildingsnew text end .

new text begin (b) When awarding grants or loans for the acquisition or rehabilitation of naturally occurring affordable housing, new text end priority in funding shall be given to proposals that serve lower-income households and maintain longer periods of affordability.new text begin Funding may be used to acquire single-family rental housing that is intended to be converted to affordable homeownership.new text end

new text begin (c) When awarding grants or loans for the recapitalization of distressed buildings, to the extent practicable, priority in funding shall be given to the following: new text end

new text begin (1) buildings where residents are at or below 30 percent of the area median income; new text end

new text begin (2) buildings at imminent risk of foreclosure, closure, or sale that would result in permanent loss of affordability; new text end

new text begin (3) operators who have a path to achieve neutral or positive net operating income within five years; new text end

new text begin (4) operators who keep subject properties affordable; and new text end

new text begin (5) buildings that are not eligible or not prioritized for other agency programs. new text end

new text begin (d) The agency may establish funding limits per eligible recipient and require priority rankings of eligible recipient proposals. new text end

new text begin (e) Funds may not be used for publicly owned housing. new text end

Sec. 41.

Laws 2023, chapter 37, article 2, section 6, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Owner-occupieddeleted text end new text begin Single-familynew text end housing income limits.

Households served through grants or loans related to deleted text begin owner-occupieddeleted text end new text begin single-familynew text end housing must have, at initial occupancy, income that is at or below 115 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development.

Sec. 42.

Laws 2023, chapter 37, article 2, section 6, is amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Private lender participation. new text end

new text begin Prior to the commissioner executing a grant or loan agreement for recapitalization of private debt, a project owner must demonstrate receiving a meaningful amount, as determined by the commissioner, of restructuring and forgiveness of amortizing and deferred debt, principal and interest paydown, interest rate write-down, deferral of debt payments, and mortgage payment forbearance from a private lender. new text end

Sec. 43.

Laws 2023, chapter 37, article 2, section 6, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin By February 15, 2025, and February 15, 2026, the commissioner shall submit a report to the chairs and ranking minority members of the legislative committees having jurisdiction over housing and homelessness. The report must include the number of applications received, the amount of funding requested, the grants awarded, and the number of affordable housing units preserved through awards under this section. new text end

Sec. 44.

Laws 2023, chapter 37, article 2, section 12, subdivision 2, is amended to read:

Subd. 2.

Eligible homebuyer.

For the purposes of this section, an "eligible homebuyer" means an individual:

(1) whose income is at or below 130 percent of area median income;

deleted text begin (2) who resides in a census tract where at least 60 percent of occupied housing units are renter-occupied, based on the most recent estimates or experimental estimates provided by the American Community Survey of the United States Census Bureau; deleted text end

deleted text begin (3)deleted text end new text begin (2)new text end who is financing the purchase of an eligible property with an interest-free, fee-based mortgage; and

deleted text begin (4)deleted text end new text begin (3)new text end who is a first-time homebuyer as defined by Code of Federal Regulations, title 24, section 92.2.

Sec. 45.

Laws 2023, chapter 52, article 19, section 120, is amended to read:

Sec. 120.

EFFECTIVE DATE.

Sections 117 deleted text begin todeleted text end new text begin andnew text end 119 are effective January 1, 2024.new text begin Section 118 is effective January 1, 2024, and applies to cases filed before, on, or after that date.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2024. new text end

Sec. 46.

new text begin SINGLE-EGRESS STAIRWAY APARTMENT BUILDING REPORT. new text end

new text begin The commissioner of labor and industry must evaluate conditions under which apartment buildings with a single means of egress above three stories up to 75 feet would achieve life safety outcomes equal to or superior to currently adopted codes. The commissioner must use research techniques that include smoke modeling, egress modeling, an analysis of fire loss history in jurisdictions that have already adopted similar provisions, and interviews with fire services regarding fire suppression and rescue techniques in such buildings. The commissioner shall consult with relevant stakeholders, including but not limited to the Minnesota Fire Chiefs Association, Minnesota Professional Firefighters Association, Fire Marshals Association of Minnesota, Association of Minnesota Building Officials, Housing First Minnesota, Center for Building in North America, and faculty from the relevant department of a university which grants degrees in fire protection engineering. In addition, the commissioner must also contextualize the life safety outcomes from the single-egress evaluation to life safety outcomes in other types of housing. The commissioner may contract with external experts or an independent third party to develop the report and perform other functions required of the commissioner under this section. The report must include recommendations for code updates for the single-egress buildings evaluated in this section. By December 31, 2025, the commissioner must report on the findings to the chairs and ranking minority members of the legislative committees with jurisdiction over housing and state building codes. new text end

Sec. 47.

new text begin LOCALLY FUNDED HOUSING EXPENDITURE REPORT. new text end

new text begin By February 15, 2027, the commissioner of the Minnesota Housing Finance Agency shall report to the chairs and ranking minority members of the legislative policy and finance committees with jurisdiction over housing and taxes, on the reports received on locally funded housing expenditures as required under Minnesota Statutes, sections 477A.35, subdivision 5a, and 477A.36, subdivision 5a. new text end

Sec. 48.

new text begin WORKING GROUP ON COMMON INTEREST COMMUNITIES AND HOMEOWNERS ASSOCIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Creation; duties. new text end

new text begin (a) A working group is created to study the prevalence and impact of common interest communities (CICs) and homeowners associations (HOAs) in Minnesota and how the existing laws regulating CICs and HOAs help homeowners and tenants access safe and affordable housing. The working group shall study: new text end

new text begin (1) how many CICs and HOAs exist, how many people may reside in those housing units, and where they are located in the state; new text end

new text begin (2) the governing documents commonly used by CICs and HOAs and whether the governing documents or common practices create barriers for participation by homeowners in the board of directors for CICs or HOAs; new text end

new text begin (3) the fees and costs commonly associated with CICs and HOAs and how those fees have increased, including the cost of outside management, accounting, and attorney fees that are assessed to owners and residents; new text end

new text begin (4) whether there should be uniform, statutory standards regarding fees, fines, and costs assessed to residents; new text end

new text begin (5) how the organization and management of CICs and HOAs, including boards and management companies, impact the affordability of CICs and HOAs; new text end

new text begin (6) the impact of CICs and HOAs on the housing market and housing costs; new text end

new text begin (7) the racial disparity in homeownership as it relates to CICs and HOAs; new text end

new text begin (8) the accessibility and affordability of CICs and HOAs for Minnesotans with disabilities; new text end

new text begin (9) how other states regulate CICs and HOAs and best practices related to board transparency, dispute resolution, and foreclosures; and new text end

new text begin (10) how the current laws governing CICs and HOAs may be consolidated and reformed for clarity and to improve the experience of homeowners and residents in CICs and HOAs. new text end

new text begin (b) The focus and duties of the working group shall be to recommend legislative reforms or other methods to regulate CICs and HOAs, including the consolidation or recodification of existing chapters regulating CICs and HOAs. new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The working group shall consist of the following: new text end

new text begin (1) two members of the house of representatives, one appointed by the speaker of the house and one appointed by the minority leader; new text end

new text begin (2) two members of the senate, one appointed by the senate majority leader and one appointed by the senate minority leader; new text end

new text begin (3) one member from the Minnesota Homeownership Center; new text end

new text begin (4) one member from the Community Associations Institute; new text end

new text begin (5) one member from a business association that supports, educates, or provides services to CICs and HOAs in Minnesota designated by the commissioner of commerce; new text end

new text begin (6) one member from a legal aid association familiar with housing laws and representing low-income clients designated by Mid-Minnesota Legal Assistance; new text end

new text begin (7) one member from the Minnesota Association of Realtors; new text end

new text begin (8) one member who is an attorney who regularly works advising homeowners or residents in CICs and HOAs and is familiar with the state foreclosure laws designed by the State Bar Association; new text end

new text begin (9) one member who is an attorney who regularly works advising CIC and HOA boards designated by the State Bar Association; new text end

new text begin (10) one member from a metropolitan area government who is familiar with issues homeowners and tenants face while living in CICs and HOAs in the metropolitan area designated by League of Minnesota Cities; new text end

new text begin (11) the commissioner of the Minnesota Housing Finance Agency or the commissioner's designee; new text end

new text begin (12) one member from the attorney general's office designated by the attorney general; new text end

new text begin (13) one member designated by the North Country Cooperative Foundation and one member to be designated by the Senior Housing Cooperative Council; new text end

new text begin (14) four members who are current or recent owners of a residence that is part of a CIC or HOA designated by the Housing Justice Center. new text end

new text begin (b) Appointments and designations for members of the working group shall be made by July 1, 2024, and information about the appointed and designated members shall be provided by the commissioner of housing finance to the chairs and ranking minority members of the legislative committees with jurisdiction over housing no later than July 1, 2024. new text end

new text begin Subd. 3. new text end

new text begin Facilitation; organization; meetings. new text end

new text begin (a) The Legislative Coordinating Commission shall facilitate the working group, provide administrative assistance, and convene the first meeting by July 15, 2024. Members of the working group may receive compensation and reimbursement for expenses as authorized by Minnesota Statutes, section 15.059, subdivision 3. new text end

new text begin (b) The working group must meet at regular intervals as often as necessary to accomplish the goals enumerated under subdivision 1. Meetings of the working group are subject to the Minnesota Open Meeting Law under Minnesota Statutes, chapter 13D. new text end

new text begin Subd. 4. new text end

new text begin External consultation. new text end

new text begin The working group shall consult with other individuals and organizations that have expertise and experience that may assist the working group in fulfilling its responsibilities, including entities engaging in additional external stakeholder input from those with experience living in CICs and HOAs as well as working with the board of directors for CICs and HOAs. new text end

new text begin Subd. 5. new text end

new text begin Report required. new text end

new text begin The working group shall submit a final report by February 1, 2025, to the chairs and ranking minority members of the legislative committees with jurisdiction over housing finance and policy, commerce, and real property. The report shall include recommendations and draft legislation based on the duties and focus for the working group provided in subdivision 1. new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The working group expires upon submission of the final report in subdivision 5, or February 28, 2025, whichever is later. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and expires March 1, 2025. new text end

Sec. 49.

new text begin TASK FORCE ON LONG-TERM SUSTAINABILITY OF AFFORDABLE HOUSING. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A task force is established to evaluate issues and provide recommendations relating to affordable housing sustainability, including displacement of tenants, preservation of housing previously developed with public financing, and long-term sustainability of new housing developments. new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The task force consists of the following members: new text end

new text begin (1) three members appointed by the commissioner of housing; new text end

new text begin (2) one member with expertise in insurance regulation appointed by the commissioner of commerce; new text end

new text begin (3) one member from a county that participates in the Interagency Stabilization Group appointed by the Association of Minnesota Counties; new text end

new text begin (4) one member from a greater Minnesota county appointed by the Association of Minnesota Counties; new text end

new text begin (5) one member with experience developing affordable rental housing appointed by the Metropolitan Consortium of Community Developers; new text end

new text begin (6) one member with experience in operating affordable rental housing appointed by the Metropolitan Consortium of Community Developers; new text end

new text begin (7) one member of the Minnesota Housing Partnership who has experience developing affordable rental housing; new text end

new text begin (8) one member of the Minnesota Housing Partnership who has experience operating affordable rental housing; new text end

new text begin (9) one member of the Minnesota Housing Partnership who has experience developing and operating affordable rental housing in greater Minnesota; new text end

new text begin (10) one member with experience developing or operating for-profit affordable housing appointed by the Minnesota Multi-Housing Association; new text end

new text begin (11) one member appointed by the Family Housing Fund; new text end

new text begin (12) one member appointed by the Greater Minnesota Housing Fund; new text end

new text begin (13) one member with experience in multifamily affordable housing lending appointed by the Minnesota Bankers Association; new text end

new text begin (14) one member appointed by the Insurance Federation of Minnesota; new text end

new text begin (15) one member appointed by the Twin Cities United Way; new text end

new text begin (16) one member appointed by the speaker of the house; new text end

new text begin (17) one member appointed by the house minority leader; new text end

new text begin (18) one member appointed by the senate majority leader; and new text end

new text begin (19) one member appointed by the senate minority leader. new text end

new text begin (b) The appointing authorities must make the appointments by June 15, 2024. new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin (a) The task force must assess underlying financial challenges to develop, operate, and preserve safe, affordable, and dignified housing, including: new text end

new text begin (1) factors that are leading to increasing operating costs for affordable housing providers, including insurance availability and rates, labor costs, and security costs; new text end

new text begin (2) factors that are leading to declining revenues for affordable housing providers, such as loss of rent and vacancy issues; and new text end

new text begin (3) the potential impact of the loss of housing units under current conditions, including preservation needs of federally rent-assisted properties and tax credit developments with expiring contracts. new text end

new text begin (b) The task force must evaluate current financing and administrative tools to develop, operate, and preserve safe and affordable housing, including: new text end

new text begin (1) public and private financing programs, and the availability of funding as it relates to overall needs; and new text end

new text begin (2) administrative tools including underwriting standards used by public and private housing funders and investors. new text end

new text begin (c) The task force must evaluate financial or asset management practices of affordable housing providers and support for asset management functions by funder organizations. new text end

new text begin (d) The task force must recommend potential solutions to develop and preserve safe and affordable housing, including: new text end

new text begin (1) additional funding for existing programs and administrative tools; new text end

new text begin (2) any new financial tools necessary to meet current financial challenges that cannot be met by existing state and local government or private program and administrative tools, including new uses, modified implementation, or other improvements to existing programs; and new text end

new text begin (3) best practices for changes to financial or asset management practices of affordable housing providers and funders. new text end

new text begin (e) The task force may address other topics as identified by task force members during the course of its work. new text end

new text begin (f) The task force shall consult with other organizations that have expertise in affordable rental housing, including entities engaging in additional external stakeholder input from those with lived experience and administrators of emergency assistance, including Minnesota's Tribal nations. new text end

new text begin Subd. 4. new text end

new text begin Meetings. new text end

new text begin (a) The Legislative Coordinating Commission must ensure the first meeting of the task force convenes no later than July 1, 2024, and must provide accessible physical or virtual meeting space as necessary for the task force to conduct its work. new text end

new text begin (b) At its first meeting, the task force must elect a chair or cochairs by a majority vote of those members present and may elect a vice-chair as necessary. new text end

new text begin (c) The task force must establish a schedule for meetings and meet as necessary to accomplish the duties under subdivision 3. new text end

new text begin (d) The task force is subject to the Minnesota Open Meeting Law under Minnesota Statutes, chapter 13D. new text end

new text begin Subd. 5. new text end

new text begin Report required. new text end

new text begin By February 1, 2025, the task force must submit a report to the commissioner of the Minnesota Housing Finance Agency, the Interagency Stabilization Group, and the chairs and ranking minority members of the legislative committees having jurisdiction over housing finance and policy. At a minimum, the report must: new text end

new text begin (1) summarize the activities of the task force; new text end

new text begin (2) provide findings and recommendations adopted by the task force; and new text end

new text begin (3) include any draft legislation to implement the recommendations. new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The task force expires upon submission of the final recommendations required under subdivision 5. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 50.

new text begin REPORT ON SECTION 42 SENIOR RENTAL HOUSING. new text end

new text begin (a) The commissioner of the Minnesota Housing Finance Agency must gather data and produce a report on senior renters residing in properties financed by tax credits under Section 42 of the Internal Revenue Code, and Section 42 properties. To the extent practicable, the commissioner must gather data from the past ten years and report on the: new text end

new text begin (1) estimated number of Section 42 properties in which a majority of units are occupied by senior households; new text end

new text begin (2) estimated number of senior households living in Section 42 properties and the estimated number of senior households living in Section 42 properties that are cost-burdened; new text end

new text begin (3) amount of public resources allocated or awarded to construct Section 42 properties in which a majority of units are occupied by senior households; new text end

new text begin (4) annual percentage changes in area median income, Social Security cost-of-living adjustments, and inflation; and new text end

new text begin (5) number of times rents were increased to the maximum allowable under HUD guidelines in Section 42 properties in which a majority of units occupied by senior households. new text end

new text begin (b) By January 15, 2025, the commissioner must report on the data gathered to the chairs and ranking minority members of the legislative committees with jurisdiction over housing finance. The commissioner must use existing financial resources to review and complete this report. new text end

Sec. 51.

new text begin COMPREHENSIVE PLANS; METROPOLITAN AREA CITIES OF THE FIRST CLASS. new text end

new text begin Comprehensive plans adopted by cities of the first class in the metropolitan area, as defined under Minnesota Statutes, section 473.121, subdivision 2, and authorized by the Metropolitan Council for the most recent decennial review under Minnesota Statutes, section 473.864, shall not constitute conduct that causes or is likely to cause pollution, impairment, or destruction as defined under Minnesota Statutes, section 116B.02, subdivision 5. new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. new text end

Sec. 52.

new text begin CONTINGENT FEE PAYMENTS. new text end

new text begin Notwithstanding any law to the contrary, an attorney or financial adviser participating in conduit financing through a local unit of government may be paid on a contingent fee basis. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and expires June 1, 2025. new text end

Sec. 53.

new text begin REVISOR INSTRUCTION. new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 462A.37, subdivision 2i, as Minnesota Statutes, section 462A.37, subdivision 3a. The revisor shall also make necessary cross-reference changes in Minnesota Statutes. new text end

Sec. 54.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, section 462A.209, subdivision 8, new text end new text begin is repealed. new text end

new text begin (b) new text end new text begin Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 1, new text end new text begin is repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day following final enactment. Paragraph (b) is effective beginning with aids payable in 2024. new text end

ARTICLE 16

EXPEDITING RENTAL ASSISTANCE

Section 1.

new text begin [462A.2096] ANNUAL PROJECTION OF EMERGENCY RENTAL ASSISTANCE NEEDS. new text end

new text begin The agency must develop a projection of emergency rental assistance needs in consultation with the commissioner of human services and representatives from county and Tribal housing administrators and housing nonprofit agencies. The projection must identify the amount of funding required to meet all emergency rental assistance needs, including the family homelessness prevention and assistance program, the emergency assistance program, and emergency general assistance. By January 15 each year, the commissioner must submit a report on the projected need for emergency rental assistance to the chairs and ranking minority members of the legislative committees having jurisdiction over housing and human services finance and policy. new text end

Sec. 2.

new text begin EXPEDITING RENTAL ASSISTANCE; IMPLEMENTATION. new text end

new text begin (a) For the purposes of this section, the following terms have the meanings given: new text end

new text begin (1) "culturally responsive" means agencies, programs, and providers of services respond respectfully and effectively to people of all cultures, languages, classes, races, ethnic backgrounds, disabilities, religions, genders, sexual orientations, and other identities in a manner that recognizes, values, and affirms differences and eliminates barriers to access; and new text end

new text begin (2) "trauma-informed" means to recognize that many people have experienced trauma in their lifetime and that programs must be designed to respond to people with respect and accommodate the needs of people who have or are currently experiencing trauma. new text end

new text begin (b) In implementing the sections in this article, the commissioner of the Minnesota Housing Finance Agency must ensure the work is culturally responsive and trauma-informed. new text end

Sec. 3.

new text begin DATA COLLECTION TO MEASURE TIMELINESS OF RENTAL ASSISTANCE. new text end

new text begin The commissioner of the Minnesota Housing Finance Agency must work with the commissioner of human services to develop criteria for measuring the timeliness of processing applications for rental assistance. The commissioner of the Minnesota Housing Finance Agency must collect data to monitor application speeds of the family homelessness prevention and assistance program and use the collected data to inform improvements to application processing systems. By January 15, 2027, the commissioner of the Minnesota Housing Finance Agency must submit a report to the chairs and ranking minority members of the legislative committees having jurisdiction over housing finance and policy. The report must include analysis of the data collected and whether goals have been met to (1) process an emergency rental assistance application within two weeks of the receipt of a complete application, and (2) if approved, make payment to a landlord within 30 days of the receipt of a complete application. new text end

Sec. 4.

new text begin E-SIGNATURE OPTIONS FOR RENTAL ASSISTANCE. new text end

new text begin The commissioner of the Minnesota Housing Finance Agency, working with the commissioner of human services, shall develop uniform e-signature options to be used in applications for the family homelessness prevention and assistance program. No later than June 30, 2026, the commissioner shall require administrators of the family homelessness prevention and assistance program to incorporate and implement the developed e-signature options. The commissioner must notify the chairs and ranking minority members of the legislative committees with jurisdiction over housing of the date when the e-signature options are implemented. A copy of this notification must also be filed with the Legislative Reference Library in compliance with Minnesota Statutes, section 3.195. new text end

Sec. 5.

new text begin VERIFICATION PROCEDURES FOR RENTAL ASSISTANCE. new text end

new text begin (a) The commissioner of the Minnesota Housing Finance Agency, working with program administrators, must develop recommendations to simplify the process of verifying information in applications for the family homelessness prevention and assistance program. In developing recommendations, the commissioner must consider: new text end

new text begin (1) allowing self-attestation of emergencies, assets, and income; new text end

new text begin (2) allowing verbal authorization by applicants to allow emergency rental assistance administrators to communicate with landlords and utility providers regarding applications for assistance; and new text end

new text begin (3) allowing landlords to apply for emergency rental assistance on tenants' behalf. new text end

new text begin (b) The commissioner must: new text end

new text begin (1) prepare recommendations and submit them to the chairs and ranking minority members of the legislative committees having jurisdiction over housing finance and policy by January 1, 2025; new text end

new text begin (2) adopt any recommendations that have become law; and new text end

new text begin (3) provide technical assistance to counties, Tribes, and other emergency rental assistance administrators to implement these recommendations. new text end

new text begin (c) By January 13, 2025, the commissioner must report to the chairs and ranking minority members of the legislative committees with jurisdiction over housing detailing the proposed recommendations required by this section. By July 7, 2025, the commissioner must report to the chairs and ranking minority members of the legislative committees with jurisdiction over housing detailing the recommendations adopted as required by this section. new text end

ARTICLE 17

TRANSPORTATION NETWORK COMPANIES

Section 1.

Minnesota Statutes 2022, section 65B.472, is amended to read:

65B.472 TRANSPORTATION NETWORK FINANCIAL RESPONSIBILITY.

Subdivision 1.

Definitions.

(a) Unless a different meaning is expressly made applicable, the terms defined in paragraphs (b) through deleted text begin (g)deleted text end new text begin (p)new text end have the meanings given them for the purposes of this deleted text begin chapterdeleted text end new text begin sectionnew text end .

(b) deleted text begin Adeleted text end "Digital network" means any online-enabled application, software, website, or system offered or utilized by a transportation network company that enables the prearrangement of rides with transportation network company drivers.

new text begin (c) "Disability and income loss benefits" has the meaning given in section 65B.44, subdivision 3, subject to the weekly maximum amount and with a maximum time period of 130 weeks after the injury. new text end

new text begin (d) "P1," "P2," and "P3" have the meanings given in section 181C.01, subdivision 4. new text end

new text begin (e) "Funeral and burial expenses" has the meaning given in section 65B.44, subdivision 4. new text end

new text begin (f) "Medical expense benefits" has the meaning given in section 65B.44, subdivision 2, except that payment for rehabilitative services is only required when the services are medically necessary. new text end

new text begin (g) "Personal injury" means a physical injury or mental impairment arising out of a physical injury in the course of a prearranged ride. A personal injury is only covered if the injury occurs to a driver during P2 or P3, except as provided under subdivision 2, paragraph (d). A personal injury claimant is subject to the requirements of section 65B.56. new text end

deleted text begin (c) Adeleted text end new text begin (h)new text end "Personal vehicle" means a vehicle that is used by a deleted text begin transportation network companydeleted text end new text begin TNCnew text end driver in connection with providing a prearranged ride and is:

(1) owned, leased, or otherwise authorized for use by the deleted text begin transportation network companydeleted text end driver; and

(2) not a taxicab, limousine, for-hire vehicle, or a private passenger vehicle driven by a volunteer driver.

deleted text begin (d) Adeleted text end new text begin (i)new text end "Prearranged ride" means the provision of transportation by a driver to a rider, beginning when a driver accepts a ride requested by a rider through a digital network controlled by a transportation network company, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle. A prearranged ride does not include transportation provided using a taxicab, limousine, or other for-hire vehicle.

new text begin (j) "Replacement services loss benefits" has the meaning given in section 65B.44, subdivision 5, subject to the weekly maximum amount and with a maximum time period of 130 weeks after the injury. new text end

new text begin (k) "Survivors economic loss benefits" has the meaning given in section 65B.44, subdivision 6, subject to the weekly maximum amount and with a maximum time period of 130 weeks after death. new text end

new text begin (l) "Survivors replacement services loss benefits" has the meaning given in section 65B.44, subdivision 7, subject to the weekly maximum amount and with a maximum time period of 130 weeks after death. new text end

deleted text begin (e) Adeleted text end new text begin (m)new text end "Transportation network company"new text begin or "TNC"new text end means a corporation, partnership, sole proprietorship, or other entity that is operating in Minnesota that uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides.

deleted text begin (f) Adeleted text end new text begin (n)new text end "Transportation network company drivernew text begin ,new text end "new text begin "TNC driver,"new text end or "driver" means an individual who:

(1) receives connections to potential riders and related services from a transportation network company in exchange for payment of a fee to the transportation network company; and

(2) uses a personal vehicle to provide a prearranged ride to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee.

deleted text begin (g) Adeleted text end new text begin (o)new text end "Transportation network company ridernew text begin ,new text end " new text begin "TNC rider," new text end or "rider" means an individual or persons who use a transportation network company's digital network to connect with a transportation network driver who provides prearranged rides to the rider in the driver's personal vehicle between points chosen by the rider.

deleted text begin (h) Adeleted text end new text begin (p)new text end "Volunteer driver" means an individual who transports persons or goods on behalf of a nonprofit entity or governmental unit in a private passenger vehicle and receives no compensation for services provided other than the reimbursement of actual expenses.

Subd. 2.

Maintenance of transportation network financial responsibility.

(a) A transportation network company driver or transportation network company on the driver's behalf shall maintain primary automobile insurance that recognizes that the driver is a transportation network company driver or otherwise uses a vehicle to transport passengers for compensation and covers the driverdeleted text begin :deleted text end new text begin during P1, P2, and P3.new text end

deleted text begin (1) while the driver is logged on to the transportation network company's digital network; or deleted text end

deleted text begin (2) while the driver is engaged in a prearranged ride. deleted text end

(b) new text begin During P1, new text end the following automobile insurance requirements apply deleted text begin while a participating transportation network company driver is logged on to the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ridedeleted text end :

(1) primary coverage insuring against loss resulting from liability imposed by law for injury and property damage, including the requirements of section 65B.49, subdivision 3, in the amount of not less than $50,000 because of death or bodily injury to one person in any accident, $100,000 because of death or bodily injury to two or more persons in any accident, and $30,000 for injury to or destruction of property of others in any one accident;

(2) security for the payment of basic economic loss benefits where required by section 65B.44 pursuant to the priority requirements of section 65B.47. A transportation network company and a deleted text begin transportation network companydeleted text end driver, during the period set forth in this paragraph, are deemed to be in the business of transporting persons for purposes of section 65B.47, subdivision 1, and the insurance required under this subdivision shall be deemed to cover the vehicle during the period set forth in this paragraph;

(3) primary uninsured motorist coverage and primary underinsured motorist coverage where required by section 65B.49, subdivisions 3a and 4a; and

(4) the coverage requirements of this subdivision may be satisfied by any of the following:

(i) automobile insurance maintained by the transportation network company driver;

(ii) automobile insurance maintained by the transportation network company; or

(iii) any combination of items (i) and (ii).

(c) new text begin During P2 and P3, new text end the following automobile insurance requirements apply deleted text begin while a transportation network company driver is engaged in a prearranged ridedeleted text end :

(1) primary coverage insuring against loss resulting from liability imposed by law for injury and property damage, including the requirements of section 65B.49, in the amount of not less than $1,500,000 for death, injury, or destruction of property of others;

(2) security for the payment of basic economic loss benefits where required by section 65B.44 pursuant to the priority requirements of section 65B.47. A transportation network company and a transportation network company driver, during the period set forth in this paragraph, are deemed to be in the business of transporting persons for purposes of section 65B.47, subdivision 1, and the insurance required under this subdivision shall be deemed to cover the vehicle during the period set forth in this paragraph;

(3) primary uninsured motorist coverage and primary underinsured motorist coverage where required by section 65B.49, subdivisions 3a and 4a; and

(4) the coverage requirements of this subdivision may be satisfied by any of the following:

(i) automobile insurance maintained by the transportation network company driver;

(ii) automobile insurance maintained by the transportation network company; or

(iii) any combination of items (i) and (ii).

new text begin (d) During P2 and P3, a TNC must maintain insurance on behalf of, and at no cost to, the driver that provides reimbursement for all loss suffered through personal injury arising from the driver's work for the TNC that is not otherwise covered by the insurance required under paragraphs (b) and (c). The TNC may purchase the insurance coverage using a portion of the fare or fee paid by the rider or riders. A driver shall not be charged by the TNC or have their compensation lowered because of the insurance. The insurance coverage must be in the amount of not less than $1,000,000 per incident due to personal injury and include the following types of coverage: medical expense benefits, disability and income loss benefits, funeral and burial expenses, replacement services loss benefits, survivors economic loss benefits, and survivors replacement services loss benefits. Insurance coverage under this paragraph includes personal injury sustained while at the drop-off location immediately following the conclusion of a prearranged ride. new text end

new text begin (e) Any insurer authorized to write accident and sickness insurance in this state have the power to issue the blanket accident and sickness policy described in paragraph (d). new text end

new text begin (f) A policy of blanket accident and sickness insurance as described in paragraph (d) must include in substance the provisions required for individual policies that are applicable to blanket accident and sickness insurance and the following provisions: new text end

new text begin (1) a provision that the policy and the application of the policyholder constitutes the entire contract between the parties, and that, in the absence of fraud, all statements made by the policyholder are deemed representations and not warranties, and that a statement made for the purpose of affecting insurance does not avoid insurance or reduce benefits unless the statement is contained in a written instrument signed by the policyholder, a copy of which has been furnished to such policyholder; and new text end

new text begin (2) a provision that to the group or class originally insured be added from time to time all new persons eligible for coverage. new text end

new text begin (g) If an injury is covered by blanket accident and sickness insurance maintained by more than one TNC, the insurer of the TNC against whom a claim is filed is entitled to contribution for the pro rata share of coverage attributable to one or more other TNCs up to the coverages and limits in paragraph (d). new text end

new text begin (h) Notwithstanding any law to the contrary, amounts paid or payable under the coverages required by section 65B.49, subdivisions 3a and 4a, shall be reduced by the total amount of benefits paid or payable under insurance provided pursuant to paragraph (d). new text end

deleted text begin (d)deleted text end new text begin (i)new text end If insurance maintained by the driver in paragraph (b) or (c) has lapsed or does not provide the required coverage, insurance maintained by a transportation network company shall provide the coverage required by this subdivision beginning with the first dollar of a claim and have the duty to defend the claim.

deleted text begin (e)deleted text end new text begin (j)new text end Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim.

deleted text begin (f)deleted text end new text begin (k)new text end Insurance required by this subdivision must satisfy the requirements of chapter 60A.

deleted text begin (g)deleted text end new text begin (l)new text end Insurance satisfying the requirements of this subdivision shall be deemed to satisfy the financial responsibility requirements under the Minnesota No-Fault Automobile Insurance Act, sections 65B.41 to 65B.71.

deleted text begin (h)deleted text end new text begin (m)new text end A transportation network company driver shall carry proof of coverage satisfying paragraphs (b) and (c) at all times during the driver's use of a vehicle in connection with a transportation network company's digital network. In the event of an accident, a transportation network company driver shall provide this insurance coverage information to the directly interested parties, automobile insurers, and investigating police officers upon request pursuant to section 65B.482, subdivision 1. Upon such request, a transportation network company driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers whether the driver was logged on to the transportation network company's digital network or on a prearranged ride at the time of an accident.

Subd. 3.

Disclosure to transportation network company drivers.

The transportation network company shall disclose in writing to transportation network company drivers the following before they are allowed to accept a request for a prearranged ride on the transportation network company's digital network:

(1) the insurance coverage, including the types of coverage and the limits for each coveragenew text begin under subdivision 2, paragraphs (b), (c), and (d)new text end , that the transportation network company provides while the transportation network company driver uses a personal vehicle in connection with a transportation network company's digital network;

(2) that the transportation network company driver's own automobile insurance policy might not provide any coverage while the driver is logged on to the transportation network company's digital network and is available to receive transportation requests or is engaged in a prearranged ride depending on its terms; and

(3) that using a vehicle with a lien against the vehicle to provide deleted text begin transportation network servicesdeleted text end new text begin prearranged ridesnew text end may violate the transportation network driver's contract with the lienholder.

Subd. 4.

Automobile insurance provisions.

(a) Insurers that write automobile insurance in Minnesota may exclude any and all coverage afforded under the owner's insurance policy for any loss or injury that occurs deleted text begin while a driver is logged on to a transportation network company's digital network or while a driver provides a prearranged ridedeleted text end new text begin during P1, P2, and P3new text end . This right to exclude all coverage may apply to any coverage included in an automobile insurance policy including, but not limited to:

(1) liability coverage for bodily injury and property damage;

(2) uninsured and underinsured motorist coverage;

(3) basic economic loss benefits as defined under section 65B.44;

(4) medical payments coverage;

(5) comprehensive physical damage coverage; and

(6) collision physical damage coverage.

These exclusions apply notwithstanding any requirement under the Minnesota No-Fault Automobile Insurance Act, sections 65B.41 to 65B.71. Nothing in this section implies or requires that a personal automobile insurance policy provide coverage deleted text begin while the driver is logged on to the transportation network company's digital network, while the driver is engaged in a prearranged ride, or while the driver otherwise uses a vehicle to transport passengers for compensationdeleted text end new text begin during P1, P2, or P3, or while the driver otherwise uses a vehicle to transport passengers for compensationnew text end .

Nothing in this section shall be deemed to preclude an insurer from providing coverage for the transportation network company driver's vehicle, if it so chooses to do so by contract or endorsement.

(b) Automobile insurers that exclude coverage as permitted in paragraph (a) shall have no duty to defend or indemnify any claim expressly excluded thereunder. Nothing in this section shall be deemed to invalidate or limit an exclusion contained in a policy, including any policy in use or approved for use in Minnesota prior to May 19, 2015, that excludes coverage for vehicles used to carry persons or property for a charge or available for hire by the public.

(c) An automobile insurer that defends or indemnifies a claim against a driver that is excluded under the terms of its policy as permitted in paragraph (a) shall have a right of contribution against other insurers that provide automobile insurance to the same driver in satisfaction of the coverage requirements of subdivision 2 at the time of loss.

(d) In a claims coverage investigation, transportation network companies and any insurer potentially providing coverage under subdivision 2 shall cooperate to facilitate the exchange of relevant information with directly involved parties and any insurer of the transportation network company driver if applicable, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the 12-hour period immediately preceding and in the 12-hour period immediately following the accident and disclose to one another a clear description of the coverage, exclusions, and limits provided under any automobile insurance maintained under subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025. new text end

Sec. 2.

new text begin [181C.01] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For purposes of this chapter, the terms defined in this section have the meanings given. new text end

new text begin Subd. 2. new text end

new text begin Deactivation. new text end

new text begin "Deactivation" means a TNC blocking a driver's access to a digital network, suspending a driver, or changing a driver's status from eligible to ineligible to provide prearranged rides for a TNC for more than 24 hours, or more than 72 hours when the TNC must investigate a claim against a driver. Deactivation does not include a driver's loss of access to the digital network that is contingent on a driver's compliance with licensing, insurance, or regulatory requirements or that can be resolved through unilateral action by the driver. For the purposes of this chapter, "prearranged ride" has the meaning given in section 65B.472, subdivision 1. new text end

new text begin Subd. 3. new text end

new text begin Digital network. new text end

new text begin "Digital network" has the meaning given in section 65B.472, subdivision 1. new text end

new text begin Subd. 4. new text end

new text begin Driver time periods. new text end

new text begin "Driver time periods" are divided into three exclusive segments which have the following meanings: new text end

new text begin (1) "period 1" or "P1" means the time when a driver is logged into a TNC application, but has not accepted a ride offer; new text end

new text begin (2) "period 2" or "P2" means the time when a driver is proceeding to pick up a rider after choosing to accept a ride offer; and new text end

new text begin (3) "period 3" or "P3" means the time when a driver is transporting a rider from a pickup location to a drop-off location. new text end

new text begin Subd. 5. new text end

new text begin Personal vehicle. new text end

new text begin "Personal vehicle" has the meaning given in section 65B.472, subdivision 1. new text end

new text begin Subd. 6. new text end

new text begin Transportation network company. new text end

new text begin "Transportation network company" or "TNC" has the meaning given in section 65B.472, subdivision 1. new text end

new text begin Subd. 7. new text end

new text begin Transportation network company driver. new text end

new text begin "Transportation network company driver," "TNC driver," or "driver" has the meaning given in section 65B.472, subdivision 1. new text end

new text begin Subd. 8. new text end

new text begin Transportation network company rider. new text end

new text begin "Transportation network company rider," "TNC rider," or "rider" has the meaning given in section 65B.472, subdivision 1. new text end

Sec. 3.

new text begin [181C.02] NOTICE AND PAY TRANSPARENCY. new text end

new text begin Subdivision 1. new text end

new text begin Compensation notice. new text end

new text begin (a) Upon initial or subsequent account activation, and annually each year while a driver continues to maintain an account with the TNC, a TNC must provide written notice of compensation, or a compensation policy, if any, to each driver containing the following information: new text end

new text begin (1) the right to legally required minimum compensation under section 181C.03; new text end

new text begin (2) the frequency and manner of a driver's pay; new text end

new text begin (3) the rights and remedies available to a driver for a TNC's failure to comply with legal obligations related to minimum compensation; and new text end

new text begin (4) the driver's right to elect coverage of paid family and medical leave benefits, as provided under chapter 268B. new text end

new text begin (b) Notice under this subdivision must be provided in written plain language and made available in English, Amharic, Arabic, Hmong, Oromo, Somali, and Spanish. TNCs operating in Minnesota must consider updating the languages in which they offer the notice each year. new text end

new text begin (c) The TNC must provide notice to a driver in writing or electronically of any changes to the driver's compensation policy at least 48 hours before the date the changes take effect. new text end

new text begin Subd. 2. new text end

new text begin Assignment notice. new text end

new text begin When a TNC alerts a driver of a possible assignment to transport a rider, the ride offer must be available for sufficient time for the driver to review, and the TNC must indicate: new text end

new text begin (1) the estimated travel time and number of miles from the driver's current location to the pickup location for P2; new text end

new text begin (2) the estimated travel time and number of miles for the trip for P3; and new text end

new text begin (3) the estimated total compensation, before any gratuity. new text end

new text begin Subd. 3. new text end

new text begin Daily trip receipt. new text end

new text begin Within 24 hours of each trip completion, the TNC must transmit a detailed electronic receipt to the driver containing the following information for each unique trip or portion of a unique trip: new text end

new text begin (1) the date, pickup, and drop-off locations. In describing the pickup and drop-off locations, the TNC shall describe the location by indicating the specific block in which the pick-up and drop-off occurred; new text end

new text begin (2) the time and total mileage traveled from pick up to drop off of a rider or riders for P3; new text end

new text begin (3) the time and total mileage traveled from acceptance of the assignment to completion for P2 and P3; new text end

new text begin (4) total fare or fee paid by the rider or riders; and new text end

new text begin (5) total compensation to the driver, specifying: new text end

new text begin (i) any applicable rate or rates of pay, any applicable price multiplier, or variable pricing policy in effect; new text end

new text begin (ii) any gratuity; and new text end

new text begin (iii) an itemized list of all tolls, fees, or other pass-throughs from the rider charged to the driver. new text end

new text begin Subd. 4. new text end

new text begin Weekly summary. new text end

new text begin Each week, a TNC must transmit a weekly summary to a driver in writing or electronically containing the following information for the preceding calendar week: new text end

new text begin (1) total time the driver logged into the TNC application; new text end

new text begin (2) total time and mileage for P2 and P3 segments; new text end

new text begin (3) total fares or fees paid by riders; and new text end

new text begin (4) total compensation to the driver, including any gratuities. new text end

new text begin Subd. 5. new text end

new text begin Record keeping. new text end

new text begin TNCs must maintain the trip receipts and weekly summaries required under this section for at least three years. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 1, 2024. new text end

Sec. 4.

new text begin [181C.03] MINIMUM COMPENSATION. new text end

new text begin (a) Minimum compensation of a TNC driver under this paragraph must be adjusted annually as provided under paragraph (f), and must be paid in a per minute, per mile format, as follows: new text end

new text begin (1) $1.28 per mile and $0.31 per minute for any transportation of a rider by a driver; new text end

new text begin (2) if applicable, an additional $0.91 per mile for any transportation of a rider by a driver in a vehicle that is subject to the requirements in sections 299A.11 to 299A.17, regardless of whether a wheelchair securement device is used; new text end

new text begin (3) if a trip request is canceled by a rider or a TNC after the driver has already departed to pick up a rider, 80 percent of any cancellation fee paid by the rider; and new text end

new text begin (4) at minimum, compensation of $5.00 for any transportation of a rider by a driver. new text end

new text begin (b) A TNC must pay a driver the minimum compensation required under this section over a reasonable earnings period not to exceed 14 calendar days. The minimum compensation required under this section guarantees a driver a certain level of compensation in an earnings period that cannot be reduced. Nothing in this section prevents a driver from earning, or a TNC from paying, a higher level of compensation. new text end

new text begin (c) Any gratuities received by a driver from a rider or riders are the property of the driver and are not included as part of the minimum compensation required by this section. A TNC must pay the applicable driver all gratuities received by the driver in an earnings period no later than the driver's next scheduled payment. new text end

new text begin (d) For each earnings period, a TNC must compare a driver's earnings, excluding gratuities, against the required minimum compensation for that driver during the earnings period. If the driver's earnings, excluding gratuities, in the earnings period are less than the required minimum compensation for that earnings period, the TNC must include an additional sum accounting for the difference in the driver's earnings and the minimum compensation no later than during the next earnings period. new text end

new text begin (e) A TNC that uses software or collection technology to collect fees or fares must pay a driver the compensation earned by the driver, regardless of whether the fees or fares are actually collected. new text end

new text begin (f) Beginning January 1, 2027, and each January 1 thereafter, the minimum compensation required under paragraph (a) must be adjusted annually by the same process as the statewide minimum wage under section 177.24, subdivision 1. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 1, 2024. new text end

Sec. 5.

new text begin [181C.04] DEACTIVATION. new text end

new text begin Subdivision 1. new text end

new text begin Deactivation policy; requirements. new text end

new text begin (a) A TNC must maintain a written plain-language deactivation policy that provides the policies and procedures for deactivation. The TNC must make the deactivation policy available online, through the TNC's digital platform. Updates or changes to the policy must be provided to drivers at least 48 hours before they go into effect. new text end

new text begin (b) The deactivation policy must be provided in English, Amharic, Arabic, Hmong, Oromo, Somali, and Spanish. TNCs operating in Minnesota must consider updating the languages in which they offer the deactivation policy each year. new text end

new text begin (c) The deactivation policy must: new text end

new text begin (1) state that the deactivation policy is enforceable as a term of the TNC's contract with a driver; new text end

new text begin (2) provide drivers with a reasonable understanding of the circumstances that constitute a violation that may warrant deactivation under the deactivation policy and indicate the consequences known, including the specific number of days or range of days for a deactivation if applicable; new text end

new text begin (3) describe fair and reasonable procedures for notifying a driver of a deactivation and the reason for the deactivation; new text end

new text begin (4) describe fair, objective, and reasonable procedures and eligibility criteria for the reconsideration of a deactivation decision and the process by which a driver may request a deactivation appeal with the TNC, consistent with subdivision 5; and new text end

new text begin (5) be specific enough for a driver to understand what constitutes a violation of the policy and how to avoid violating the policy. new text end

new text begin (d) Serious misconduct must be clearly defined in the TNC deactivation policy. new text end

new text begin Subd. 2. new text end

new text begin Prohibitions for deactivation. new text end

new text begin A TNC must not deactivate a driver for: new text end

new text begin (1) a violation not reasonably understood as part of a TNC's written deactivation policy; new text end

new text begin (2) a driver's ability to work a minimum number of hours; new text end

new text begin (3) a driver's acceptance or rejection of a ride, as long as the acceptance or rejection is not for a discriminatory purpose; new text end

new text begin (4) a driver's good faith statement regarding compensation or working conditions made publicly or privately; or new text end

new text begin (5) a driver asserting their legal rights under any local, state, or federal law. new text end

new text begin Subd. 3. new text end

new text begin Written notice and warning. new text end

new text begin (a) The TNC must provide notice at the time of the deactivation or, for deactivations based on serious misconduct, notice within three days of the deactivation. A written notice must include: new text end

new text begin (1) the reason for deactivation; new text end

new text begin (2) anticipated length of the deactivation, if known; new text end

new text begin (3) what day the deactivation started on; new text end

new text begin (4) an explanation of whether or not the deactivation can be reversed and clear steps for the driver to take to reverse a deactivation; new text end

new text begin (5) instructions for a driver to challenge the deactivation and information on their rights under the appeals process provided under subdivision 5; and new text end

new text begin (6) a notice that the driver has a right to assistance and information on how to contact a driver advocacy group as provided in subdivision 4 to assist in the deactivation appeal process, including the telephone number and website information for one or more driver advocacy groups. new text end

new text begin (b) The TNC must provide a warning to a driver if the driver's behavior could result in a future deactivation. A TNC does not need to provide a warning for behavior that constitutes serious misconduct. new text end

new text begin Subd. 4. new text end

new text begin Driver advocacy organizations. new text end

new text begin (a) A TNC must contract with a driver's advocacy organization to provide services to drivers under this section. A driver advocacy group identified in the notice must be an independent, not-for-profit organization operating without excessive influence from the TNC. The TNC must not have any control or influence over the day-to-day operations of the advocacy organization or the organization's staff or management or have control or influence over who receives assistance on specific cases or how assistance is provided in a case. The organization must have been established and operating in Minnesota continuously for at least two years and be capable of providing culturally competent driver representation services, outreach, and education. new text end

new text begin (b) The driver advocacy groups must provide, at no cost to the drivers, assistance with: new text end

new text begin (1) deactivation appeals; new text end

new text begin (2) education and outreach to drivers regarding the drivers' rights and remedies available to them under the law; and new text end

new text begin (3) other technical or legal assistance on issues related to providing services for the TNC and riders. new text end

new text begin Subd. 5. new text end

new text begin Request for appeal. new text end

new text begin (a) The deactivation policy must provide the driver with an opportunity to appeal the deactivation upon receipt of the notice and an opportunity to provide information to support the request. An appeal process must provide the driver with no less than 30 days from the date the notice was provided to the driver to appeal the deactivation and allow the driver to have the support of an advocate or attorney. new text end

new text begin (b) Unless the TNC or the driver requests an additional 15 days, a TNC must review and make a final decision on the appeal within 15 days from the receipt of the requested appeal and information to support the request. A TNC may use a third party to assist with appeals. new text end

new text begin (c) The TNC must consider any information presented by the driver under the appeal process. For a deactivation to be upheld, there must be evidence under the totality of the circumstances to find that it is more likely than not that a rule violation subjecting the driver to deactivation has occurred. new text end

new text begin (d) This section does not apply to deactivations for economic reasons or during a public state of emergency that are not targeted at a particular driver or drivers. new text end

new text begin (e) When an unintentional deactivation of an individual driver occurs due to a purely technical issue and is not caused by any action or fault of the driver, the driver, upon request, must be provided reasonable compensation for the period of time the driver was not able to accept rides through the TNC capped at a maximum of 21 days. For the purposes of this paragraph, "reasonable compensation" means compensation for each day the driver was deactivated using the driver's daily average in earnings from the TNC for the 90 days prior to the deactivation. new text end

new text begin Subd. 6. new text end

new text begin Prior deactivations. new text end

new text begin Consistent with the deactivation policy created under this section, a driver who was deactivated after January 1, 2021, but before November 1, 2024, and who has not been reinstated may request an appeal of the deactivation under this section, if the driver provides notice of the appeal within 90 days of the date of enactment. The TNC may take up to 90 days to issue a final decision. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 1, 2024, and applies to deactivations that occur on or after that date except as provided in subdivision 6. new text end

Sec. 6.

new text begin [181C.05] ENFORCEMENT. new text end

new text begin (a) Except as provided under section 181C.06, the commissioner of labor and industry has exclusive enforcement authority and may issue an order under section 177.27, subdivision 4, requiring a TNC to comply with sections 181C.02 and 181C.03 under section 177.27, subdivision 4. new text end

new text begin (b) A provision in a contract between a TNC and a driver that violates this chapter is void and unenforceable. Unless a valid arbitration agreement exists under section 181C.08, a driver may bring an action in district court seeking injunctive relief and any applicable remedies available under the contract if a provision of a contract between a TNC and a driver violates this chapter. new text end

new text begin (c) A TNC must not retaliate against or discipline a driver for (1) raising a complaint under this chapter, or (2) pursuing enactment or enforcement of this chapter. A TNC must not give less favorable or more favorable rides to a driver for making public or private comments supporting or opposing working conditions or compensation at a TNC. new text end

Sec. 7.

new text begin [181C.06] DISCRIMINATION PROHIBITED. new text end

new text begin (a) A TNC must not discriminate against a TNC driver or a qualified applicant to become a driver, due to race, national origin, color, creed, religion, sex, disability, sexual orientation, marital status, or gender identity as provided under section 363A.11. Nothing in this section prohibits providing a reasonable accommodation to a person with a disability, for religious reasons, due to pregnancy, or to remedy previous discriminatory behavior. new text end

new text begin (b) A TNC driver injured by a violation of this section is entitled to the remedies under sections 363A.28 to 363A.35. new text end

Sec. 8.

new text begin [181C.07] COLLECTIVE BARGAINING; EMPLOYMENT STATUS. new text end

new text begin Notwithstanding any law to the contrary, nothing in this chapter prohibits collective bargaining or shall be construed to determine whether a TNC driver is an employee. new text end

Sec. 9.

new text begin [181C.08] ARBITRATION; REQUIREMENTS. new text end

new text begin (a) A TNC must provide a driver with the option to opt out of arbitration. Upon a driver's written election to pursue remedies through arbitration, the driver must not seek remedies through district court based on the same alleged violation. new text end

new text begin (b) The rights and remedies established in this chapter must be the governing law in an arbitration between a driver operating in Minnesota and a TNC. The application of the rights and remedies available under chapter 181C cannot be waived by a driver prior to or at the initiation of an arbitration between a driver and a TNC. To the extent possible, a TNC shall use Minnesota as the venue for arbitration with a Minnesota driver. If an arbitration cannot take place in the state of Minnesota, the driver must be allowed to appear via phone or other electronic means and apply the rights and remedies available under chapter 181C. Arbitrators must be jointly selected by the TNC and the driver using the roster of qualified neutrals provided by the Minnesota supreme court for alternative dispute resolution. Consistent with the rules and guidelines provided by the American Arbitrators Association, if the parties are unable to agree on an arbitrator through the joint selection process, the case manager may administratively appoint the arbitrator or arbitrators. new text end

new text begin (c) Contracts that have already been executed must have an addendum provided to each driver that includes a copy of this chapter and notice that a driver may elect to pursue the remedies provided in this chapter. new text end

Sec. 10.

new text begin [181C.09] REVOCATION OF LICENSE. new text end

new text begin A local unit of government may refuse to issue a license or may revoke a license and right to operate issued to a TNC by the local unit of government for a TNC's failure to comply with the requirements of this chapter. Notwithstanding section 13.39, the commissioner of labor and industry may provide data collected related to a compliance order issued under section 177.27, subdivision 4, to a local unit of government for purposes of a revocation under this section. new text end

Sec. 11.

new text begin [181C.10] STATEWIDE REGULATIONS. new text end

new text begin Notwithstanding any other provision of law and except as provided in section 181C.09 no local governmental unit of this state may enact or enforce any ordinance, local law, or regulation that: (1) regulates any matter relating to transportation network companies or transportation network company drivers addressed in section 65B.472 or chapter 181C; or (2) requires the provision of data related to section 65B.472 or chapter 181C. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. An ordinance, local law, or regulation existing on that date that is prohibited under this section is void and unenforceable as of that date. new text end

Sec. 12.

new text begin APPROPRIATION. new text end

new text begin $173,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of labor and industry for the purposes of enforcement, education, and outreach of Minnesota Statutes, sections 181C.02 and 181C.03. Beginning in fiscal year 2026, the base amount is $123,000 each fiscal year. new text end

ARTICLE 18

TRANSFER CARE SPECIALISTS

Section 1.

Minnesota Statutes 2022, section 149A.01, subdivision 3, is amended to read:

Subd. 3.

Exceptions to licensure.

(a) Except as otherwise provided in this chapter, nothing in this chapter shall in any way interfere with the duties of:

(1) an anatomical bequest program located within an accredited school of medicine or an accredited college of mortuary science;

(2) a person engaged in the performance of duties prescribed by law relating to the conditions under which unclaimed dead human bodies are held subject to anatomical study;

(3) authorized personnel from a licensed ambulance service in the performance of their duties;

(4) licensed medical personnel in the performance of their duties; or

(5) the coroner or medical examiner in the performance of the duties of their offices.

(b) This chapter does not apply to or interfere with the recognized customs or rites of any culture or recognized religion in the ceremonial washing, dressing, casketing, and public transportation of their dead, to the extent that all other provisions of this chapter are complied with.

(c) Noncompensated persons with the right to control the dead human body, under section 149A.80, subdivision 2, may remove a body from the place of death; transport the body; prepare the body for disposition, except embalming; or arrange for final disposition of the body, provided that all actions are in compliance with this chapter.

(d) Persons serving internships pursuant to section 149A.20, subdivision 6deleted text begin , ordeleted text end new text begin ;new text end students officially registered for a practicum or clinical through a program of mortuary science accredited by the American Board of Funeral Service Educationnew text begin ; or transfer care specialists registered pursuant to section 149A.47new text end are not required to be licensed, provided that the persons deleted text begin ordeleted text end new text begin ,new text end studentsnew text begin , or transfer care specialistsnew text end are registered with the commissioner and act under the direct and exclusive supervision of a person holding a current license to practice mortuary science in Minnesota.

(e) Notwithstanding this subdivision, nothing in this section shall be construed to prohibit an institution or entity from establishing, implementing, or enforcing a policy that permits only persons licensed by the commissioner to remove or cause to be removed a dead body or body part from the institution or entity.

(f) An unlicensed person may arrange for and direct or supervise a memorial service if that person or that person's employer does not have charge of the dead human body. An unlicensed person may not take charge of the dead human body, unless that person has the right to control the dead human body under section 149A.80, subdivision 2, or is that person's noncompensated designee.

Sec. 2.

Minnesota Statutes 2022, section 149A.02, subdivision 13a, is amended to read:

Subd. 13a.

Direct supervision.

"Direct supervision" means overseeing the performance of an individual. For the purpose of a clinical, practicum, or internship, direct supervision means that the supervisor is available to observe and correct, as needed, the performance of the trainee.new text begin For the purpose of a transfer care specialist, direct supervision means that the supervisor is available by being physically present or by telephone to advise and correct, as needed, the performance of the transfer care specialist.new text end The new text begin supervising new text end mortician deleted text begin supervisordeleted text end is accountable for the actions of the clinical student, practicum student, or intern throughout the course of the training. The supervising mortician is accountable for any violations of law or rule, in the performance of their duties, by the clinical student, practicum student, deleted text begin ordeleted text end internnew text begin , or transfer care specialistnew text end .

Sec. 3.

Minnesota Statutes 2022, section 149A.02, is amended by adding a subdivision to read:

new text begin Subd. 37d. new text end

new text begin Transfer care specialist. new text end

new text begin "Transfer care specialist" means an individual who is registered with the commissioner in accordance with section 149A.47 and is authorized to perform the removal of a dead human body from the place of death under the direct supervision of a licensed mortician. new text end

Sec. 4.

Minnesota Statutes 2022, section 149A.03, is amended to read:

149A.03 DUTIES OF COMMISSIONER.

The commissioner shall:

(1) enforce all laws and adopt and enforce rules relating to the:

(i) removal, preparation, transportation, arrangements for disposition, and final disposition of dead human bodies;

(ii) licensurenew text begin , registration,new text end and professional conduct of funeral directors, morticians, interns, practicum students, deleted text begin anddeleted text end clinical studentsnew text begin , and transfer care specialistsnew text end ;

(iii) licensing and operation of a funeral establishment;

(iv) licensing and operation of an alkaline hydrolysis facility; and

(v) licensing and operation of a crematory;

(2) provide copies of the requirements for licensurenew text begin , registration,new text end and permits to all applicants;

(3) administer examinations and issue licensesnew text begin , registrations,new text end and permits to qualified persons and other legal entities;

(4) maintain a record of the name and location of all current licensees deleted text begin anddeleted text end new text begin ,new text end internsnew text begin , and transfer care specialistsnew text end ;

(5) perform periodic compliance reviews and premise inspections of licensees;

(6) accept and investigate complaints relating to conduct governed by this chapter;

(7) maintain a record of all current preneed arrangement trust accounts;

(8) maintain a schedule of application, examination, permit, new text begin registration, new text end and licensure fees, initial and renewal, sufficient to cover all necessary operating expenses;

(9) educate the public about the existence and content of the laws and rules for mortuary science licensing and the removal, preparation, transportation, arrangements for disposition, and final disposition of dead human bodies to enable consumers to file complaints against licensees and others who may have violated those laws or rules;

(10) evaluate the laws, rules, and procedures regulating the practice of mortuary science in order to refine the standards for licensing and to improve the regulatory and enforcement methods used; and

(11) initiate proceedings to address and remedy deficiencies and inconsistencies in the laws, rules, or procedures governing the practice of mortuary science and the removal, preparation, transportation, arrangements for disposition, and final disposition of dead human bodies.

Sec. 5.

Minnesota Statutes 2022, section 149A.09, is amended to read:

149A.09 DENIAL; REFUSAL TO REISSUE; REVOCATION; SUSPENSION; LIMITATION OF LICENSEnew text begin , REGISTRATION,new text end OR PERMIT.

Subdivision 1.

Denial; refusal to renew; revocation; and suspension.

The regulatory agency may deny, refuse to renew, revoke, or suspend any licensenew text begin , registration,new text end or permit applied for or issued pursuant to this chapter when the person subject to regulation under this chapter:

(1) does not meet or fails to maintain the minimum qualification for holding a licensenew text begin , registration,new text end or permit under this chapter;

(2) submits false or misleading material information to the regulatory agency in connection with a licensenew text begin , registration,new text end or permit issued by the regulatory agency or the application for a licensenew text begin , registration,new text end or permit;

(3) violates any law, rule, order, stipulation agreement, settlement, compliance agreement, license, new text begin registration, new text end or permit that regulates the removal, preparation, transportation, arrangements for disposition, or final disposition of dead human bodies in Minnesota or any other state in the United States;

(4) is convicted of a crime, including a finding or verdict of guilt, an admission of guilt, or a no contest plea in any court in Minnesota or any other jurisdiction in the United States. "Conviction," as used in this subdivision, includes a conviction for an offense which, if committed in this state, would be deemed a felony or gross misdemeanor without regard to its designation elsewhere, or a criminal proceeding where a finding or verdict of guilty is made or returned, but the adjudication of guilt is either withheld or not entered;

(5) is convicted of a crime, including a finding or verdict of guilt, an admission of guilt, or a no contest plea in any court in Minnesota or any other jurisdiction in the United States that the regulatory agency determines is reasonably related to the removal, preparation, transportation, arrangements for disposition or final disposition of dead human bodies, or the practice of mortuary science;

(6) is adjudicated as mentally incompetent, mentally ill, developmentally disabled, or mentally ill and dangerous to the public;

(7) has a conservator or guardian appointed;

(8) fails to comply with an order issued by the regulatory agency or fails to pay an administrative penalty imposed by the regulatory agency;

(9) owes uncontested delinquent taxes in the amount of $500 or more to the Minnesota Department of Revenue, or any other governmental agency authorized to collect taxes anywhere in the United States;

(10) is in arrears on any court ordered family or child support obligations; or

(11) engages in any conduct that, in the determination of the regulatory agency, is unprofessional as prescribed in section 149A.70, subdivision 7, or renders the person unfit to practice mortuary science or to operate a funeral establishment or crematory.

Subd. 2.

Hearings related to refusal to renew, suspension, or revocation of licensenew text begin , registration,new text end or permit.

If the regulatory agency proposes to deny renewal, suspend, or revoke a licensenew text begin , registration,new text end or permit issued under this chapter, the regulatory agency must first notify, in writing, the person against whom the action is proposed to be taken and provide an opportunity to request a hearing under the contested case provisions of sections 14.57 to 14.62. If the subject of the proposed action does not request a hearing by notifying the regulatory agency, by mail, within 20 calendar days after the receipt of the notice of proposed action, the regulatory agency may proceed with the action without a hearing and the action will be the final order of the regulatory agency.

Subd. 3.

Review of final order.

A judicial review of the final order issued by the regulatory agency may be requested in the manner prescribed in sections 14.63 to 14.69. Failure to request a hearing pursuant to subdivision 2 shall constitute a waiver of the right to further agency or judicial review of the final order.

Subd. 4.

Limitations or qualifications placed on licensenew text begin , registration,new text end or permit.

The regulatory agency may, where the facts support such action, place reasonable limitations or qualifications on the right to practice mortuary science deleted text begin ordeleted text end new text begin ,new text end to operate a funeral establishment or crematorynew text begin , or to perform activities or actions permitted under this chapternew text end .

Subd. 5.

Restoring licensenew text begin , registration,new text end or permit.

The regulatory agency may, where there is sufficient reason, restore a licensenew text begin , registration,new text end or permit that has been revoked, reduce a period of suspension, or remove limitations or qualifications.

Sec. 6.

Minnesota Statutes 2022, section 149A.11, is amended to read:

149A.11 PUBLICATION OF DISCIPLINARY ACTIONS.

The regulatory agencies shall report all disciplinary measures or actions taken to the commissioner. At least annually, the commissioner shall publish and make available to the public a description of all disciplinary measures or actions taken by the regulatory agencies. The publication shall include, for each disciplinary measure or action taken, the name and business address of the licensee deleted text begin ordeleted text end new text begin ,new text end intern, new text begin or transfer care specialist; new text end the nature of the misconductdeleted text begin ,deleted text end new text begin ;new text end and the measure or action taken by the regulatory agency.

Sec. 7.

new text begin [149A.47] TRANSFER CARE SPECIALIST. new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin A transfer care specialist may remove a dead human body from the place of death under the direct supervision of a licensed mortician if the transfer care specialist is registered with the commissioner in accordance with this section. A transfer care specialist is not licensed to engage in the practice of mortuary science and shall not engage in the practice of mortuary science except as provided in this section. A transfer care specialist must be an employee of a licensed funeral establishment. new text end

new text begin Subd. 2. new text end

new text begin Registration. new text end

new text begin (a) To be eligible for registration as a transfer care specialist, an applicant must submit to the commissioner: new text end

new text begin (1) a completed application on a form provided by the commissioner that includes at a minimum: new text end

new text begin (i) the applicant's name, home address and telephone number, business name, business address and telephone number, and email address; and new text end

new text begin (ii) the name, license number, business name, and business address and telephone number of the supervising licensed mortician; new text end

new text begin (2) proof of completion of a training program that meets the requirements specified in subdivision 4; and new text end

new text begin (3) the appropriate fee specified in section 149A.65. new text end

new text begin (b) All transfer care specialist registrations are valid for one calendar year, beginning on January 1 and ending on December 31 regardless of the date of issuance. Fees shall not be prorated. new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin (a) A transfer care specialist registered under this section is authorized to perform the removal of a dead human body from the place of death in accordance with this chapter to a licensed funeral establishment. A transfer care specialist must comply with the universal precaution requirements in section 149A.91, subdivision 1, when handling a dead human body. new text end

new text begin (b) A transfer care specialist must work under the direct supervision of a licensed mortician. The supervising mortician is responsible for the work performed by the transfer care specialist. A licensed mortician may supervise up to four transfer care specialists at any one time. new text end

new text begin Subd. 4. new text end

new text begin Training program and continuing education. new text end

new text begin (a) Each transfer care specialist must complete a training program prior to initial registration. A training program must be at least seven hours long and must cover, at a minimum, the following: new text end

new text begin (1) ethical care and transportation procedures for a deceased person; new text end

new text begin (2) health and safety concerns to the public and the individual performing the transfer of the deceased person, and the use of universal precautions and other reasonable precautions to minimize the risk for transmitting communicable diseases; and new text end

new text begin (3) all relevant state and federal laws and regulations related to the transfer and transportation of deceased persons. new text end

new text begin (b) A transfer care specialist must complete three hours of continuing education annually on content described in paragraph (a), clauses (1) to (3), and submit evidence of completion with the individual's registration renewal. new text end

new text begin Subd. 5. new text end

new text begin Renewal. new text end

new text begin (a) A registration issued under this section expires on December 31 of the calendar year in which the registration was issued and must be renewed to remain valid. new text end

new text begin (b) To renew a registration, a transfer care specialist must submit to the commissioner a completed renewal application as provided by the commissioner and the appropriate fee specified in section 149A.65. The renewal application must include proof of completion of the continuing education requirements in subdivision 4. new text end

Sec. 8.

Minnesota Statutes 2022, section 149A.60, is amended to read:

149A.60 PROHIBITED CONDUCT.

The regulatory agency may impose disciplinary measures or take disciplinary action against a person whose conduct is subject to regulation under this chapter for failure to comply with any provision of this chapter or laws, rules, orders, stipulation agreements, settlements, compliance agreements, licenses, new text begin registrations, new text end and permits adopteddeleted text begin ,deleted text end or issued for the regulation of the removal, preparation, transportation, arrangements for disposition or final disposition of dead human bodies, or for the regulation of the practice of mortuary science.

Sec. 9.

Minnesota Statutes 2022, section 149A.61, subdivision 4, is amended to read:

Subd. 4.

Licensees deleted text begin anddeleted text end new text begin ,new text end internsnew text begin , and transfer care specialistsnew text end .

A licensee deleted text begin ordeleted text end new text begin ,new text end internnew text begin , or transfer care specialistnew text end regulated under this chapter may report to the commissioner any conduct that the licensee deleted text begin ordeleted text end new text begin ,new text end internnew text begin , or transfer care specialistnew text end has personal knowledge of, and reasonably believes constitutes grounds for, disciplinary action under this chapter.

Sec. 10.

Minnesota Statutes 2022, section 149A.61, subdivision 5, is amended to read:

Subd. 5.

Courts.

The court administrator of district court or any court of competent jurisdiction shall report to the commissioner any judgment or other determination of the court that adjudges or includes a finding that a licensee deleted text begin ordeleted text end new text begin ,new text end internnew text begin , or transfer care specialistnew text end is a person who is mentally ill, mentally incompetent, guilty of a felony or gross misdemeanor, guilty of violations of federal or state narcotics laws or controlled substances acts; appoints a guardian or conservator for the licensee deleted text begin ordeleted text end new text begin ,new text end internnew text begin , or transfer care specialistnew text end ; or commits a licensee deleted text begin ordeleted text end new text begin ,new text end internnew text begin , or transfer care specialistnew text end .

Sec. 11.

Minnesota Statutes 2022, section 149A.62, is amended to read:

149A.62 IMMUNITY; REPORTING.

Any person, private agency, organization, society, association, licensee, deleted text begin ordeleted text end internnew text begin , or transfer care specialistnew text end who, in good faith, submits information to a regulatory agency under section 149A.61 or otherwise reports violations or alleged violations of this chapter, is immune from civil liability or criminal prosecution. This section does not prohibit disciplinary action taken by the commissioner against any licensee deleted text begin ordeleted text end new text begin ,new text end internnew text begin , or transfer care specialistnew text end pursuant to a self report of a violation.

Sec. 12.

Minnesota Statutes 2022, section 149A.63, is amended to read:

149A.63 PROFESSIONAL COOPERATION.

A licensee, clinical student, practicum student, intern, new text begin transfer care specialist, new text end or applicant for licensure under this chapter that is the subject of or part of an inspection or investigation by the commissioner or the commissioner's designee shall cooperate fully with the inspection or investigation. Failure to cooperate constitutes grounds for disciplinary action under this chapter.

Sec. 13.

Minnesota Statutes 2022, section 149A.65, subdivision 2, is amended to read:

Subd. 2.

Mortuary science fees.

Fees for mortuary science are:

(1) $75 for the initial and renewal registration of a mortuary science intern;

(2) $125 for the mortuary science examination;

(3) $200 for issuance of initial and renewal mortuary science licenses;

(4) $100 late fee charge for a license renewal; deleted text begin anddeleted text end

(5) $250 for issuing a mortuary science license by endorsementdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (6) $226 for the initial and renewal registration of a transfer care specialist. new text end

Sec. 14.

Minnesota Statutes 2022, section 149A.70, subdivision 3, is amended to read:

Subd. 3.

Advertising.

No licensee, clinical student, practicum student, deleted text begin ordeleted text end internnew text begin , or transfer care specialistnew text end shall publish or disseminate false, misleading, or deceptive advertising. False, misleading, or deceptive advertising includes, but is not limited to:

(1) identifying, by using the names or pictures of, persons who are not licensed to practice mortuary science in a way that leads the public to believe that those persons will provide mortuary science services;

(2) using any name other than the names under which the funeral establishment, alkaline hydrolysis facility, or crematory is known to or licensed by the commissioner;

(3) using a surname not directly, actively, or presently associated with a licensed funeral establishment, alkaline hydrolysis facility, or crematory, unless the surname had been previously and continuously used by the licensed funeral establishment, alkaline hydrolysis facility, or crematory; and

(4) using a founding or establishing date or total years of service not directly or continuously related to a name under which the funeral establishment, alkaline hydrolysis facility, or crematory is currently or was previously licensed.

Any advertising or other printed material that contains the names or pictures of persons affiliated with a funeral establishment, alkaline hydrolysis facility, or crematory shall state the position held by the persons and shall identify each person who is licensed or unlicensed under this chapter.

Sec. 15.

Minnesota Statutes 2022, section 149A.70, subdivision 4, is amended to read:

Subd. 4.

Solicitation of business.

No licensee shall directly or indirectly pay or cause to be paid any sum of money or other valuable consideration for the securing of business or for obtaining the authority to dispose of any dead human body.

For purposes of this subdivision, licensee includes a registered internnew text begin , transfer care specialist,new text end or any agent, representative, employee, or person acting on behalf of the licensee.

Sec. 16.

Minnesota Statutes 2022, section 149A.70, subdivision 5, is amended to read:

Subd. 5.

Reimbursement prohibited.

No licensee, clinical student, practicum student, deleted text begin ordeleted text end internnew text begin , or transfer care specialistnew text end shall offer, solicit, or accept a commission, fee, bonus, rebate, or other reimbursement in consideration for recommending or causing a dead human body to be disposed of by a specific body donation program, funeral establishment, alkaline hydrolysis facility, crematory, mausoleum, or cemetery.

Sec. 17.

Minnesota Statutes 2022, section 149A.70, subdivision 7, is amended to read:

Subd. 7.

Unprofessional conduct.

No licensee deleted text begin ordeleted text end new text begin ,new text end internnew text begin , or transfer care specialistnew text end shall engage in or permit others under the licensee's deleted text begin ordeleted text end new text begin ,new text end intern'snew text begin , or transfer care specialist'snew text end supervision or employment to engage in unprofessional conduct. Unprofessional conduct includes, but is not limited to:

(1) harassing, abusing, or intimidating a customer, employee, or any other person encountered while within the scope of practice, employment, or business;

(2) using profane, indecent, or obscene language within the immediate hearing of the family or relatives of the deceased;

(3) failure to treat with dignity and respect the body of the deceased, any member of the family or relatives of the deceased, any employee, or any other person encountered while within the scope of practice, employment, or business;

(4) the habitual overindulgence in the use of or dependence on intoxicating liquors, prescription drugs, over-the-counter drugs, illegal drugs, or any other mood altering substances that substantially impair a person's work-related judgment or performance;

(5) revealing personally identifiable facts, data, or information about a decedent, customer, member of the decedent's family, or employee acquired in the practice or business without the prior consent of the individual, except as authorized by law;

(6) intentionally misleading or deceiving any customer in the sale of any goods or services provided by the licensee;

(7) knowingly making a false statement in the procuring, preparation, or filing of any required permit or document; or

(8) knowingly making a false statement on a record of death.

Sec. 18.

Minnesota Statutes 2022, section 149A.90, subdivision 2, is amended to read:

Subd. 2.

Removal from place of death.

No person subject to regulation under this chapter shall remove or cause to be removed any dead human body from the place of death without being licensed new text begin or registered new text end by the commissioner. Every dead human body shall be removed from the place of death by a licensed mortician or funeral director, except as provided in section 149A.01, subdivision 3.

Sec. 19.

Minnesota Statutes 2022, section 149A.90, subdivision 4, is amended to read:

Subd. 4.

Certificate of removal.

No dead human body shall be removed from the place of death by a mortician deleted text begin ordeleted text end new text begin ,new text end funeral directornew text begin , or transfer care specialistnew text end or by a noncompensated person with the right to control the dead human body without the completion of a certificate of removal and, where possible, presentation of a copy of that certificate to the person or a representative of the legal entity with physical or legal custody of the body at the death site. The certificate of removal shall be in the format provided by the commissioner that contains, at least, the following information:

(1) the name of the deceased, if known;

(2) the date and time of removal;

(3) a brief listing of the type and condition of any personal property removed with the body;

(4) the location to which the body is being taken;

(5) the name, business address, and license number of the individual making the removal; and

(6) the signatures of the individual making the removal and, where possible, the individual or representative of the legal entity with physical or legal custody of the body at the death site.

Sec. 20.

Minnesota Statutes 2022, section 149A.90, subdivision 5, is amended to read:

Subd. 5.

Retention of certificate of removal.

A copy of the certificate of removal shall be given, where possible, to the person or representative of the legal entity having physical or legal custody of the body at the death site. The original certificate of removal shall be retained by the individual making the removal and shall be kept on file, at the funeral establishment to which the body was taken, for a period of three calendar years following the date of the removal. new text begin If the removal was performed by a transfer care specialist not employed by the funeral establishment to which the body was taken, the transfer care specialist must retain a copy of the certificate of removal at the transfer care specialist's business address as registered with the commissioner for a period of three calendar years following the date of removal. new text end Following this period, and subject to any other laws requiring retention of records, the funeral establishment may then place the records in storage or reduce them to microfilm, microfiche, laser disc, or any other method that can produce an accurate reproduction of the original record, for retention for a period of ten calendar years from the date of the removal of the body. At the end of this period and subject to any other laws requiring retention of records, the funeral establishment may destroy the records by shredding, incineration, or any other manner that protects the privacy of the individuals identified in the records.

ARTICLE 19

BEHAVIOR ANALYST LICENSURE

Section 1.

new text begin [148.9981] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 148.9981 to 148.9995, the terms in this section have the meanings given. new text end

new text begin Subd. 2. new text end

new text begin Accredited school or educational program. new text end

new text begin "Accredited school or educational program" means a school, university, college, or other postsecondary education program that, at the time the student completes the program, is accredited by a regional accrediting association whose standards are substantially equivalent to those of the North Central Association of Colleges and Postsecondary Education Institutions or an accrediting association that evaluates schools of behavior analysis, psychology, or education for inclusion of the education, practicum, and core function standards. new text end

new text begin Subd. 3. new text end

new text begin Advisory council. new text end

new text begin "Advisory council" means the Behavior Analyst Advisory Council established in section 148.9994. new text end

new text begin Subd. 4. new text end

new text begin Board. new text end

new text begin "Board" means the Board of Psychology established in section 148.90. new text end

new text begin Subd. 5. new text end

new text begin Certifying entity. new text end

new text begin "Certifying entity" means the Behavior Analyst Certification Board, Inc., or a successor organization or other organization approved by the board in consultation with the advisory council. new text end

new text begin Subd. 6. new text end

new text begin Client. new text end

new text begin "Client" means an individual who is the recipient of behavior analysis services. Client also means "patient" as defined in section 144.291, subdivision 2, paragraph (g). new text end

new text begin Subd. 7. new text end

new text begin Licensed behavior analyst. new text end

new text begin "Licensed behavior analyst" or "behavior analyst" means an individual who holds a valid license issued under sections 148.9981 to 148.9995 to engage in the practice of applied behavior analysis. new text end

new text begin Subd. 8. new text end

new text begin Licensee. new text end

new text begin "Licensee" means an individual who holds a valid license issued under sections 148.9981 to 148.9995. new text end

new text begin Subd. 9. new text end

new text begin Practice of applied behavior analysis. new text end

new text begin (a) "Practice of applied behavior analysis" means the design, implementation, and evaluation of social, instructional, and environmental modifications to produce socially significant improvements in human behavior. The practice of applied behavior analysis includes the empirical identification of functional relations between behavior and environmental factors, known as functional behavioral assessment and analysis. Applied behavior analysis interventions are based on scientific research, direct and indirect observation, and measurement of behavior and environment and utilize contextual factors, motivating operations, antecedent stimuli, positive reinforcement, and other procedures to help individuals develop new behaviors, increase or decrease existing behaviors, and emit behaviors under specific social, instructional, and environmental conditions. new text end

new text begin (b) The practice of applied behavior analysis does not include the diagnosis of psychiatric or mental health disorders, psychological testing, neuropsychology, psychotherapy, cognitive therapy, sex therapy, hypnotherapy, psychoanalysis, or psychological counseling. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 2.

new text begin [148.9982] DUTIES OF THE BOARD OF PSYCHOLOGY. new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin The board, in consultation with the advisory council, must: new text end

new text begin (1) adopt and enforce standards for licensure, licensure renewal, and the regulation of behavior analysts; new text end

new text begin (2) issue licenses to qualified individuals under sections 148.9981 to 148.9995; new text end

new text begin (3) carry out disciplinary actions against licensed behavior analysts; new text end

new text begin (4) educate the public about the existence and content of the regulations for behavior analyst licensing to enable consumers to file complaints against licensees who may have violated laws or rules the board is empowered to enforce; and new text end

new text begin (5) collect license fees for behavior analysts as specified under section 148.9995. new text end

new text begin Subd. 2. new text end

new text begin Rulemaking. new text end

new text begin The board, in consultation with the advisory council, may adopt rules necessary to carry out the provisions of sections 148.9981 to 148.9995. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 3.

new text begin [148.9983] REQUIREMENTS FOR LICENSURE. new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin An individual seeking licensure as a behavior analyst must complete and submit a written application on forms provided by the board together with the appropriate fee as specified under section 148.9995. new text end

new text begin Subd. 2. new text end

new text begin Requirements for licensure. new text end

new text begin An applicant for licensure as a behavior analyst must submit evidence satisfactory to the board that the applicant: new text end

new text begin (1) has a current and active national certification as a board-certified behavior analyst issued by the certifying entity; or new text end

new text begin (2) has completed the equivalent requirements for certification by the certifying entity, including satisfactorily passing a psychometrically valid examination administered by a nationally accredited credentialing organization. new text end

new text begin Subd. 3. new text end

new text begin Background investigation. new text end

new text begin The applicant must complete a background check pursuant to section 214.075. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 4.

new text begin [148.9984] LICENSE RENEWAL REQUIREMENTS. new text end

new text begin Subdivision 1. new text end

new text begin Biennial renewal. new text end

new text begin A license must be renewed every two years. new text end

new text begin Subd. 2. new text end

new text begin License renewal notice. new text end

new text begin At least 60 calendar days before the renewal deadline date, the board must mail a renewal notice to the licensee's last known address on file with the board. The notice must include instructions for accessing an online application for license renewal, the renewal deadline, and notice of fees required for renewal. The licensee's failure to receive notice does not relieve the licensee of the obligation to meet the renewal deadline and other requirements for license renewal. new text end

new text begin Subd. 3. new text end

new text begin Renewal requirements. new text end

new text begin (a) To renew a license, a licensee must submit to the board: new text end

new text begin (1) a completed and signed application for license renewal; new text end

new text begin (2) the license renewal fee as specified under section 148.9995; and new text end

new text begin (3) evidence satisfactory to the board that the licensee holds a current and active national certification as a behavior analyst from the certifying entity or otherwise meets renewal requirements as established by the board, in consultation with the advisory council. new text end

new text begin (b) The application for license renewal and fee must be postmarked or received by the board by the end of the day on which the license expires or the following business day if the expiration date falls on a Saturday, Sunday, or holiday. A renewal application that is not completed and signed, or that is not accompanied by the correct fee, is void and must be returned to the licensee. new text end

new text begin Subd. 4. new text end

new text begin Pending renewal. new text end

new text begin If a licensee's application for license renewal is postmarked or received by the board by the end of the business day on the expiration date of the license or the following business day if the expiration date falls on a Saturday, Sunday, or holiday, the licensee may continue to practice after the expiration date while the application for license renewal is pending with the board. new text end

new text begin Subd. 5. new text end

new text begin Late renewal fee. new text end

new text begin If the application for license renewal is postmarked or received after the expiration date of the license or the following business day if the expiration date falls on a Saturday, Sunday, or holiday, the licensee must pay a biennial renewal late fee as specified by section 148.9995, in addition to the renewal fee, before the licensee's application for license renewal will be considered by the board. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 5.

new text begin [148.9985] EXPIRED LICENSE. new text end

new text begin (a) Within 30 days after the renewal date, a licensee who has not renewed their license must be notified by letter, sent to the last known address of the licensee in the board's file, that the renewal is overdue and that failure to pay the current fee and current biennial renewal late fee within 60 days after the renewal date will result in termination of the license. new text end

new text begin (b) The board must terminate the license of a licensee whose license renewal is at least 60 days overdue and to whom notification has been sent as provided in paragraph (a). Failure of a licensee to receive notification is not grounds for later challenge of the termination. The former licensee must be notified of the termination by letter within seven days after board action, in the same manner as provided in paragraph (a). new text end

new text begin (c) Notwithstanding paragraph (b), the board retains jurisdiction over a former licensee for complaints received after termination of a license regarding conduct that occurred during licensure. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 6.

new text begin [148.9986] PROHIBITED PRACTICE OR USE OF TITLES; PENALTY. new text end

new text begin Subdivision 1. new text end

new text begin Practice. new text end

new text begin Effective January 1, 2025, an individual must not engage in the practice of applied behavior analysis unless the individual is licensed under sections 148.9981 to 148.9995 as a behavior analyst or is exempt under section 148.9987. A psychologist licensed under sections 148.88 to 148.981 who practices behavior analysis is not required to obtain a license as a behavior analyst under sections 148.9981 to 148.9995. new text end

new text begin Subd. 2. new text end

new text begin Use of titles. new text end

new text begin (a) An individual must not use a title incorporating the words "licensed behavior analyst," or "behavior analyst," or use any other title or description stating or implying that they are licensed or otherwise qualified to practice applied behavior analysis, unless that person holds a valid license under sections 148.9981 to 148.9995. new text end

new text begin (b) Notwithstanding paragraph (a), a licensed psychologist who practices applied behavior analysis within the psychologist's scope of practice may use the title "behavior analyst," but must not use the title "licensed behavior analyst" unless the licensed psychologist holds a valid license as a behavior analyst issued under sections 148.9981 to 148.9995. new text end

new text begin Subd. 3. new text end

new text begin Penalty. new text end

new text begin An individual who violates this section is guilty of a misdemeanor. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 7.

new text begin [148.9987] EXCEPTIONS TO LICENSE REQUIREMENT. new text end

new text begin (a) Sections 148.9981 to 148.9995 must not be construed to prohibit or restrict: new text end

new text begin (1) the practice of an individual who is licensed to practice psychology in the state or an individual who is providing psychological services under the supervision of a licensed psychologist in accordance with section 148.925; new text end

new text begin (2) the practice of any other profession or occupation licensed, certified, or registered by the state by an individual duly licensed, certified, or registered to practice the profession or occupation or to perform any act that falls within the scope of practice of the profession or occupation; new text end

new text begin (3) an individual who is employed by a school district from providing behavior analysis services as part of the individual's employment with the school district, so long as the individual does not provide behavior analysis services to any person or entity other than as an employee of the school district or accept remuneration for the provision of behavior analysis services outside of the individual's employment with the school district; new text end

new text begin (4) an employee of a program licensed under chapter 245D from providing the services described in section 245D.091, subdivision 1; new text end

new text begin (5) teaching behavior analysis or conducting behavior analysis research if the teaching or research does not involve the direct delivery of behavior analysis services; new text end

new text begin (6) providing behavior analysis services by an unlicensed supervisee or trainee under the authority and direction of a licensed behavior analyst and in compliance with the licensure and supervision standards required by law or rule; new text end

new text begin (7) a family member or guardian of the recipient of behavior analysis services from performing behavior analysis services under the authority and direction of a licensed behavior analyst; or new text end

new text begin (8) students or interns enrolled in an accredited school or educational program, or participating in a behavior analysis practicum, from engaging in the practice of applied behavior analysis while supervised by a licensed behavior analyst or instructor of an accredited school or educational program. These individuals must be designated as a behavior analyst student or intern. new text end

new text begin (b) Notwithstanding paragraph (a), a licensed psychologist may supervise an unlicensed supervisee, trainee, student, or intern who is engaged in the practice of behavior analysis if the supervision is authorized under the Minnesota Psychology Practice Act. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 8.

new text begin [148.9988] NONTRANSFERABILITY OF LICENSES. new text end

new text begin A behavior analyst license is not transferable. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 9.

new text begin [148.9989] DUTY TO MAINTAIN CURRENT INFORMATION. new text end

new text begin All licensees and applicants for licensure must notify the board within 30 days of the occurrence of: new text end

new text begin (1) a change of name, address, place of employment, or home or business telephone number; or new text end

new text begin (2) a change in any other application information. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 10.

new text begin [148.999] DISCIPLINE; REPORTING. new text end

new text begin For purposes of sections 148.9981 to 148.9995, behavior analysts are subject to the provisions of sections 148.941, 148.952 to 148.965, and 148.98. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 11.

new text begin [148.9991] COMPETENT PROVISION OF SERVICES. new text end

new text begin Subdivision 1. new text end

new text begin Limits on practice. new text end

new text begin Behavior analysts must limit practice to the client populations and services for which the behavior analysts have competence or for which the behavior analysts are developing competence. new text end

new text begin Subd. 2. new text end

new text begin Developing competence. new text end

new text begin When a behavior analyst is developing competence in a service, method, or procedure, or is developing competence to treat a specific client population, the behavior analyst must obtain professional education, training, continuing education, consultation, supervision or experience, or a combination thereof, necessary to demonstrate competence. new text end

new text begin Subd. 3. new text end

new text begin Limitations. new text end

new text begin A behavior analyst must recognize the limitations to the scope of practice of applied behavior analysis. When the needs of a client appear to be outside the behavior analyst's scope of practice, the behavior analyst must inform the client that there may be other professional, technical, community, and administrative resources available to the client. A behavior analyst must assist with identifying resources when it is in the best interest of a client to be provided with alternative or complementary services. new text end

new text begin Subd. 4. new text end

new text begin Burden of proof. new text end

new text begin Whenever a complaint is submitted to the board involving a violation of this section, the burden of proof is on the behavior analyst to demonstrate that the elements of competence have been reasonably met. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 12.

new text begin [148.9992] DUTY TO WARN; LIMITATION ON LIABILITY; VIOLENT BEHAVIOR OF PATIENT. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms in this subdivision have the meanings given. new text end

new text begin (b) "Other person" means an immediate family member or someone who personally knows the client and has reason to believe the client is capable of and will carry out a serious, specific threat of harm to a specific, clearly identified or identifiable victim. new text end

new text begin (c) "Reasonable efforts" means communicating a serious, specific threat to the potential victim and, if unable to make contact with the potential victim, communicating the serious, specific threat to the law enforcement agency closest to the potential victim or the client. new text end

new text begin (d) "Licensee" has the meaning given in section 148.9981 and includes behavior analysis students, interns, and unlicensed supervisees who are participating in a behavior analysis practicum or enrolled in an accredited school or educational program. new text end

new text begin Subd. 2. new text end

new text begin Duty to warn. new text end

new text begin The duty to predict, warn of, or take reasonable precautions to provide protection from violent behavior arises only when a client or other person has communicated to the licensee a specific, serious threat of physical violence against a specific, clearly identified or identifiable potential victim. If a duty to warn arises, the duty is discharged by the licensee if reasonable efforts are made to communicate the threat. new text end

new text begin Subd. 3. new text end

new text begin Liability standard. new text end

new text begin If no duty to warn exists under subdivision 2, then no monetary liability and no cause of action may arise against a licensee for failure to predict, warn of, or take reasonable precautions to provide protection from a client's violent behavior. new text end

new text begin Subd. 4. new text end

new text begin Disclosure of confidences. new text end

new text begin Good faith compliance with the duty to warn must not constitute a breach of confidence and must not result in monetary liability or a cause of action against the licensee. new text end

new text begin Subd. 5. new text end

new text begin Continuity of care. new text end

new text begin Subdivision 2 must not be construed to authorize a licensee to terminate treatment of a client as a direct result of a client's violent behavior or threat of physical violence unless the client is referred to another practitioner or appropriate health care facility. new text end

new text begin Subd. 6. new text end

new text begin Exception. new text end

new text begin This section does not apply to a threat to commit suicide or other threats by a client to harm the client, or to a threat by a client who is adjudicated as a person who has a mental illness and is dangerous to the public under chapter 253B. new text end

new text begin Subd. 7. new text end

new text begin Optional disclosure. new text end

new text begin This section must not be construed to prohibit a licensee from disclosing confidences to third parties in a good faith effort to warn or take precautions against a client's violent behavior or threat to commit suicide for which a duty to warn does not arise. new text end

new text begin Subd. 8. new text end

new text begin Limitation on liability. new text end

new text begin No monetary liability and no cause of action or disciplinary action by the board may arise against a licensee for disclosure of confidences to third parties, for failure to disclose confidences to third parties, or for erroneous disclosure of confidences to third parties in a good faith effort to warn against or take precautions against a client's violent behavior or threat of suicide for which a duty to warn does not arise. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 13.

new text begin [148.9993] INFORMED CONSENT. new text end

new text begin Subdivision 1. new text end

new text begin Obtaining informed consent for services. new text end

new text begin A behavior analyst must obtain informed consent from the client or the client's legal guardian before initiating services. The informed consent must be in writing, signed by the client, and include, at a minimum, the following: new text end

new text begin (1) consent for the behavior analyst to engage in activities that directly affect the client; new text end

new text begin (2) the goals, purposes, and procedures of the proposed services; new text end

new text begin (3) the factors that may impact the duration of the proposed services; new text end

new text begin (4) the applicable fee schedule for the proposed services; new text end

new text begin (5) the significant risks and benefits of the proposed services; new text end

new text begin (6) the behavior analyst's limits under section 148.9991, including, if applicable, information that the behavior analyst is developing competence in the proposed service, method, or procedure, and alternatives to the proposed service, if any; and new text end

new text begin (7) the behavior analyst's responsibilities if the client terminates the service. new text end

new text begin Subd. 2. new text end

new text begin Updating informed consent. new text end

new text begin If there is a substantial change in the nature or purpose of a service, the behavior analyst must obtain a new informed consent from the client. new text end

new text begin Subd. 3. new text end

new text begin Emergency or crisis services. new text end

new text begin Informed consent is not required when a behavior analyst is providing emergency or crisis services. If services continue after the emergency or crisis has abated, informed consent must be obtained. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 14.

new text begin [148.9994] BEHAVIOR ANALYST ADVISORY COUNCIL. new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Behavior Analyst Advisory Council is created and composed of five members appointed by the board. The advisory council consists of: new text end

new text begin (1) one public member as defined in section 214.02; new text end

new text begin (2) three members who are licensed behavior analysts; and new text end

new text begin (3) one member who is a licensed psychologist and, to the extent practicable, who practices applied behavior analysis. new text end

new text begin Subd. 2. new text end

new text begin Administration. new text end

new text begin The advisory council is established and administered under section 15.059, except that the advisory council does not expire. new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The advisory council must: new text end

new text begin (1) advise the board regarding standards for behavior analysts; new text end

new text begin (2) assist with the distribution of information regarding behavior analyst standards; new text end

new text begin (3) advise the board on enforcement of sections 148.9981 to 148.9995; new text end

new text begin (4) review license applications and license renewal applications and make recommendations to the board; new text end

new text begin (5) review complaints and complaint investigation reports and make recommendations to the board on whether disciplinary action should be taken and, if applicable, what type; new text end

new text begin (6) advise the board regarding evaluation and treatment protocols; and new text end

new text begin (7) perform other duties authorized for advisory councils under chapter 214 as directed by the board to ensure effective oversight of behavior analysts. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 15.

new text begin [148.9995] FEES. new text end

new text begin Subdivision 1. new text end

new text begin Fees. new text end

new text begin All applicants and licensees must pay fees as follows: new text end

new text begin (1) application fee, $225; new text end

new text begin (2) license renewal fee, $225; new text end

new text begin (3) inactive license renewal fee, $125; new text end

new text begin (4) biennial renewal late fee, $100; new text end

new text begin (5) inactive license renewal late fee, $100; and new text end

new text begin (6) supervisor application processing fee, $225. new text end

new text begin Subd. 2. new text end

new text begin Nonrefundable fees. new text end

new text begin All fees in this section are nonrefundable. new text end

new text begin Subd. 3. new text end

new text begin Deposit of fees. new text end

new text begin Fees collected by the board under this section must be deposited in the state government special revenue fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

Sec. 16.

new text begin INITIAL BEHAVIOR ANALYST ADVISORY COUNCIL. new text end

new text begin The Board of Psychology must make the first appointments to the Behavior Analyst Advisory Council authorized under Minnesota Statutes, section 148.9994, by September 1, 2024. The initial behavior analysts appointed to the advisory council need not be licensed under Minnesota Statutes, sections 148.9981 to 148.9995, but must hold a current and active national certification as a board certified behavior analyst. The chair of the Board of Psychology must convene the first meeting of the council by September 1, 2024, and must convene subsequent meetings of the council until an advisory chair is elected. The council must elect a chair from its members by the third meeting of the council. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024. new text end

ARTICLE 20

BOARD OF VETERINARY MEDICINE

Section 1.

Minnesota Statutes 2022, section 156.001, is amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Direct supervision. new text end

new text begin "Direct supervision" means: new text end

new text begin (1) when a supervising veterinarian or licensed veterinary technician is in the immediate area and within audible or visual range of an animal and the unlicensed veterinary employee treating the animal; new text end

new text begin (2) the supervising veterinarian has met the requirements of a veterinarian-client-patient relationship under section 156.16, subdivision 12; and new text end

new text begin (3) the supervising veterinarian assumes responsibility for the professional care given to an animal by a person working under the veterinarian's direction. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026. new text end

Sec. 2.

Minnesota Statutes 2022, section 156.001, is amended by adding a subdivision to read:

new text begin Subd. 7a. new text end

new text begin Licensed veterinary technician. new text end

new text begin "Licensed veterinary technician" means a person licensed by the board under section 156.077. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026. new text end

Sec. 3.

Minnesota Statutes 2022, section 156.001, is amended by adding a subdivision to read:

new text begin Subd. 10b. new text end

new text begin Remote supervision. new text end

new text begin "Remote supervision" means: new text end

new text begin (1) a veterinarian is not on the premises but is acquainted with the keeping and care of an animal by virtue of an examination of the animal or medically appropriate and timely visits to the premises where the animal is kept; new text end

new text begin (2) the veterinarian has given written or oral instructions to a licensed veterinary technician for ongoing care of an animal and is available by telephone or other form of immediate communication; and new text end

new text begin (3) the employee treating the animal timely enters into the animal's medical record documentation of the treatment provided and the documentation is reviewed by the veterinarian. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026. new text end

Sec. 4.

Minnesota Statutes 2022, section 156.001, is amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Veterinary technology. new text end

new text begin "Veterinary technology" means the science and practice of providing professional support to veterinarians, including the direct supervision of unlicensed veterinary employees. Veterinary technology does not include veterinary diagnosis, prognosis, surgery, or medication prescription. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026. new text end

Sec. 5.

Minnesota Statutes 2022, section 156.07, is amended to read:

156.07 LICENSE RENEWAL.

Persons licensed under this chapter shall conspicuously display their license in their principal place of business.

Persons now deleted text begin qualified to practice veterinary medicinedeleted text end new text begin licensednew text end in this state, or who shall hereafter be licensed by the Board of Veterinary Medicine deleted text begin to engage in the practicedeleted text end new text begin as veterinarians or veterinary techniciansnew text end , shall periodically renew their license in a manner prescribed by the board. The board shall establish license renewal fees and continuing education requirements. The board may establish, by rule, an inactive license category, at a lower fee, for licensees not actively engaged in the practice of veterinary medicinenew text begin or veterinary technologynew text end within the state of Minnesota. The board may assess a charge for delinquent payment of a renewal fee.

Any person who is licensed to practice veterinary medicinenew text begin or veterinary technologynew text end in this state pursuant to this chapter, shall be entitled to receive a license to continue to practice upon making application to the board and complying with the terms of this section and rules of the board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026. new text end

Sec. 6.

new text begin [156.0721] INSTITUTIONAL LICENSURE. new text end

new text begin Subdivision 1. new text end

new text begin Application and eligibility. new text end

new text begin (a) Any person who seeks to practice veterinary medicine while employed by the University of Minnesota and who is not eligible for a regular license shall make a written application to the board for an institutional license using forms provided for that purpose or in a format accepted by the board. The board shall issue an institutional license to practice veterinary medicine to an applicant who: new text end

new text begin (1) has obtained the degree of doctor of veterinary medicine or its equivalent from a nonaccredited college of veterinary medicine. A graduate from an accredited college and an applicant who has earned ECFVG or PAVE certificates should apply for a regular license to practice veterinary medicine; new text end

new text begin (2) has passed the Minnesota Veterinary Jurisprudence Examination; new text end

new text begin (3) is a person of good moral character, as attested by five notarized reference letters from adults not related to the applicant, at least two of whom are licensed veterinarians in the jurisdiction where the applicant is currently practicing or familiar with the applicant's clinical abilities as evidenced in clinical rotations; new text end

new text begin (4) has paid the license application fee; new text end

new text begin (5) provides proof of employment by the University of Minnesota; new text end

new text begin (6) certifies that the applicant understands and agrees that the institutional license is valid only for the practice of veterinary medicine associated with the applicant's employment as a faculty member, intern, resident, or locum of the University of Minnesota College of Veterinary Medicine or other unit of the University of Minnesota; new text end

new text begin (7) provides proof of graduation from a veterinary college; new text end

new text begin (8) completed a criminal background check as defined in section 214.075; and new text end

new text begin (9) provides other information and proof as the board may require by rules and regulations. new text end

new text begin (b) The University of Minnesota may submit the applications of its employees who seek an institutional license in a compiled format acceptable to the board, with any license application fees in a single form of payment. new text end

new text begin (c) The fee for a license issued under this subdivision is the same as for a regular license to practice veterinary medicine in the state. License payment and renewal deadlines, late payment fees, and other license requirements are also the same as for a regular license to practice veterinary medicine. new text end

new text begin (d) The University of Minnesota may be responsible for timely payment of renewal fees and submission of renewal forms. new text end

new text begin Subd. 2. new text end

new text begin Scope of practice. new text end

new text begin (a) An institutional license holder may practice veterinary medicine only as related to the license holder's regular function at the University of Minnesota. A person holding only an institutional license in this state must be remunerated for the practice of veterinary medicine in the state solely from state, federal, or institutional funds and not from the patient-owner beneficiary of the license holder's practice efforts. new text end

new text begin (b) A license issued under this section must be canceled by the board upon receipt of information from the University of Minnesota that the holder of the license has left or is otherwise no longer employed at the University of Minnesota in this state. new text end

new text begin (c) An institutional license holder must abide by all laws governing the practice of veterinary medicine in the state and is subject to the same disciplinary action as any other veterinarian licensed in the state. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 7.

new text begin [156.076] DIRECT SUPERVISION; UNLICENSED VETERINARY EMPLOYEES. new text end

new text begin (a) An unlicensed veterinary employee may only administer medication or render auxiliary or supporting assistance under the direct supervision of a licensed veterinarian or licensed veterinary technician. new text end

new text begin (b) This section does not prohibit: new text end

new text begin (1) the performance of generalized nursing tasks ordered by the veterinarian and performed by an unlicensed employee on inpatient animals during the hours when a veterinarian is not on the premises; or new text end

new text begin (2) under emergency conditions, an unlicensed employee from rendering lifesaving aid and treatment to an animal in the absence of a veterinarian if the animal is in a life-threatening condition and requires immediate treatment to sustain life or prevent further injury. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026. new text end

Sec. 8.

new text begin [156.077] LICENSED VETERINARY TECHNICIANS. new text end

new text begin Subdivision 1. new text end

new text begin Licensure; practice. new text end

new text begin (a) The board shall issue a license to practice as a veterinary technician to an applicant who satisfies the requirements in this section and those imposed by the board in rule. A licensed veterinary technician may practice veterinary technology. A person may not use the title "veterinary technician" or the abbreviation "LVT" unless licensed by the board. new text end

new text begin (b) The board may adopt by rule additional or temporary alternative licensure requirements or definitions for veterinary technician titles. new text end

new text begin Subd. 2. new text end

new text begin Applicants; qualifications. new text end

new text begin Application for a license to practice veterinary technology in this state shall be made to the board on a form furnished by the board and accompanied by evidence satisfactory to the board that the applicant is at least 18 years of age, is of good moral character, and has: new text end

new text begin (1) graduated from a veterinary technology program accredited or approved by the American Veterinary Medical Association or Canadian Veterinary Medical Association; new text end

new text begin (2) received a passing score for the Veterinary Technician National Examination; new text end

new text begin (3) received a passing score for the Minnesota Veterinary Technician Jurisprudence Examination; and new text end

new text begin (4) completed a criminal background check. new text end

new text begin Subd. 3. new text end

new text begin Required with application. new text end

new text begin A completed application must contain the following information and material: new text end

new text begin (1) the application fee set by the board, which is not refundable if permission to take the jurisprudence examination is denied for good cause; new text end

new text begin (2) proof of graduation from a veterinary technology program accredited or approved by the American Veterinary Medical Association or Canadian Veterinary Medical Association; new text end

new text begin (3) affidavits from at least two licensed veterinarians and three adults who are not related to the applicant that establish how long, when, and under what circumstances the references have known the applicant and any other facts that may enable the board to determine the applicant's qualifications; and new text end

new text begin (4) if the applicant has served in the armed forces, a copy of the applicant's discharge papers. new text end

new text begin Subd. 4. new text end

new text begin Temporary alternative qualifications. new text end

new text begin (a) The board shall consider an application for licensure submitted by a person before July 1, 2031, if the person provides evidence satisfactory to the board that the person: new text end

new text begin (1) is a certified veterinary technician in good standing with the Minnesota Veterinary Medical Association; or new text end

new text begin (2) has at least 4,160 hours actively engaged in the practice of veterinary technology within the previous five years. new text end

new text begin (b) Each applicant under this subdivision must also submit to the board affidavits from at least two licensed veterinarians and three adults who are not related to the applicant that establish how long, when, and under what circumstances the references have known the applicant and any other facts that may enable the board to determine the applicant's qualifications. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026. new text end

Sec. 9.

new text begin [156.078] NONRESIDENTS; LICENSED VETERINARY TECHNICIANS. new text end

new text begin A credentialed veterinary technician duly admitted to practice in any state, commonwealth, territory, or district of the United States or province of Canada who desires permission to practice veterinary technology in this state shall submit an application to the board on a form furnished by the board. The board shall review an application for transfer if the applicant submits: new text end

new text begin (1) a copy of a diploma from an accredited or approved college of veterinary technology or certification from the dean, registrar, or secretary of an accredited or approved college of veterinary technology or a certificate of satisfactory completion of the PAVE program; new text end

new text begin (2) if requesting waiver of examination, evidence of meeting licensure requirements in the state of the applicant's original licensure; new text end

new text begin (3) affidavits of two licensed practicing doctors of veterinary medicine or veterinary technicians residing in the United States or Canadian licensing jurisdiction in which the applicant is or was most recently practicing, attesting that they are well acquainted with the applicant, that the applicant is a person of good moral character, and that the applicant has been actively engaged in practicing or teaching in such jurisdiction; new text end

new text begin (4) a certificate from the agency that regulates the conduct of practice of veterinary technology in the jurisdiction in which the applicant is or was most recently practicing, stating that the applicant is in good standing and is not the subject of disciplinary action or pending disciplinary action; new text end

new text begin (5) a certificate from all other jurisdictions in which the applicant holds a currently active license or held a license within the past ten years, stating that the applicant is and was in good standing and has not been subject to disciplinary action; new text end

new text begin (6) in lieu of the certificates in clauses (4) and (5), certification from the Veterinary Information Verification Agency that the applicant's licensure is in good standing; new text end

new text begin (7) a fee as set by the board in form of check or money order payable to the board, no part of which shall be refunded should the application be denied; new text end

new text begin (8) score reports on previously taken national examinations in veterinary technology, certified by the Veterinary Information Verification Agency or evidence of employment as a veterinary technician for at least three years; new text end

new text begin (9) proof that the applicant received a passing score for the Minnesota Veterinary Technician Jurisprudence Examination; and new text end

new text begin (10) proof of a completed criminal background check. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026. new text end

Sec. 10.

Minnesota Statutes 2022, section 156.12, subdivision 2, is amended to read:

Subd. 2.

Authorized activities.

No provision of this chapter shall be construed to prohibit:

(a) a person from rendering necessary gratuitous assistance in the treatment of any animal when the assistance does not amount to prescribing, testing for, or diagnosing, operating, or vaccinating and when the attendance of a licensed veterinarian cannot be procured;

(b) a person who is a regular student in an accredited or approved college of veterinary medicine from performing duties or actions assigned by instructors or preceptors or working under the direct supervision of a licensed veterinarian;

(c) a veterinarian regularly licensed in another jurisdiction from consulting with a licensed veterinarian in this state;

(d) the owner of an animal and the owner's regular employee from caring for and administering to the animal belonging to the owner, except where the ownership of the animal was transferred for purposes of circumventing this chapter;

(e) veterinarians who are in compliance with deleted text begin subdivision 6deleted text end new text begin section 156.0721new text end and who are employed by the University of Minnesota from performing their duties with the College of Veterinary Medicine, deleted text begin College of Agriculture,deleted text end new text begin Veterinary Diagnostic Laboratory,new text end Agricultural Experiment Station, Agricultural Extension Service, Medical School, School of Public Health,new text begin School of Nursing,new text end or other unit within the university; or a person from lecturing or giving instructions or demonstrations at the university or in connection with a continuing education course or seminar to veterinarians deleted text begin or pathologists at the University of Minnesota Veterinary Diagnostic Laboratorydeleted text end ;

(f) any person from selling or applying any pesticide, insecticide or herbicide;

(g) any person from engaging in bona fide scientific research or investigations which reasonably requires experimentation involving animals;

(h) any employee of a licensed veterinarian from performing duties other than diagnosis, prescription or surgical correction under the direction and supervision of the veterinarian, who shall be responsible for the performance of the employee;

(i) a graduate of a foreign college of veterinary medicine from working under the direct personal instruction, control, or supervision of a veterinarian faculty member of the College of Veterinary Medicine, University of Minnesota in order to complete the requirements necessary to obtain an ECFVG or PAVE certificate;

(j) a licensed chiropractor registered under section 148.01, subdivision 1a, from practicing animal chiropractic; or

(k) a person certified by the Emergency Medical Services Regulatory Board under chapter 144E from providing emergency medical care to a police dog wounded in the line of duty.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 11.

Minnesota Statutes 2022, section 156.12, subdivision 4, is amended to read:

Subd. 4.

Titles.

It is unlawful for a person who has not received a professional degree from an accredited or approved college of veterinary medicine, deleted text begin ordeleted text end ECFVG or PAVE certification,new text begin or an institutional license under section 156.0721new text end to use any of the following titles or designations: Veterinary, veterinarian, animal doctor, animal surgeon, animal dentist, animal chiropractor, animal acupuncturist, or any other title, designation, word, letter, abbreviation, sign, card, or device tending to indicate that the person is qualified to practice veterinary medicine.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 12.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, section 156.12, subdivision 6, new text end new text begin is repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

ARTICLE 21

BOARD OF DENTISTRY

Section 1.

Minnesota Statutes 2022, section 150A.06, subdivision 1c, is amended to read:

Subd. 1c.

Specialty dentists.

(a) The board may grant one or more specialty licenses in the specialty areas of dentistry that are recognized by the Commission on Dental Accreditation.

(b) An applicant for a specialty license shall:

(1) have successfully completed a postdoctoral specialty program accredited by the Commission on Dental Accreditation, or have announced a limitation of practice before 1967;

(2) have been certified by a specialty board approved by the Minnesota Board of Dentistry, or provide evidence of having passed a clinical examination for licensure required for practice in any state or Canadian province, or in the case of oral and maxillofacial surgeons only, have a Minnesota medical license in good standing;

(3) have been in active practice or a postdoctoral specialty education program or United States government service at least 2,000 hours in the 36 months prior to applying for a specialty license;

(4) if requested by the board, be interviewed by a committee of the board, which may include the assistance of specialists in the evaluation process, and satisfactorily respond to questions designed to determine the applicant's knowledge of dental subjects and ability to practice;

(5) if requested by the board, present complete records on a sample of patients treated by the applicant. The sample must be drawn from patients treated by the applicant during the 36 months preceding the date of application. The number of records shall be established by the board. The records shall be reasonably representative of the treatment typically provided by the applicant for each specialty area;

(6) at board discretion, pass a board-approved English proficiency test if English is not the applicant's primary language;

(7) pass all components of the National Board Dental Examinations;

(8) pass the Minnesota Board of Dentistry jurisprudence examination;

(9) abide by professional ethical conduct requirements; and

(10) meet all other requirements prescribed by the Board of Dentistry.

(c) The application must include:

(1) a completed application furnished by the board;

(2) a nonrefundable fee; and

(3) a copy of the applicant's government-issued photo identification card.

(d) A specialty dentist holding one or more specialty licenses is limited to practicing in the dentist's designated specialty area or areas. The scope of practice must be defined by each national specialty board recognized by the Commission on Dental Accreditation.

deleted text begin (e) A specialty dentist holding a general dental license is limited to practicing in the dentist's designated specialty area or areas if the dentist has announced a limitation of practice. The scope of practice must be defined by each national specialty board recognized by the Commission on Dental Accreditation. deleted text end

deleted text begin (f)deleted text end new text begin (e)new text end All specialty dentists who have fulfilled the specialty dentist requirements and who intend to limit their practice to a particular specialty area or areas may apply for one or more specialty licenses.

Sec. 2.

Minnesota Statutes 2022, section 150A.06, subdivision 8, is amended to read:

Subd. 8.

Licensure by credentials; dental assistant.

(a) Any dental assistant may, upon application and payment of a fee established by the board, apply for licensure based on an evaluation of the applicant's education, experience, and performance record in lieu of completing a board-approved dental assisting program for expanded functions as defined in rule, and may be interviewed by the board to determine if the applicant:

(1) has graduated from an accredited dental assisting program accredited by the Commission on Dental Accreditation deleted text begin anddeleted text end new text begin ornew text end is currently certified by the Dental Assisting National Board;

(2) is not subject to any pending or final disciplinary action in another state or Canadian province, or if not currently certified or registered, previously had a certification or registration in another state or Canadian province in good standing that was not subject to any final or pending disciplinary action at the time of surrender;

(3) is of good moral character and abides by professional ethical conduct requirements;

(4) at board discretion, has passed a board-approved English proficiency test if English is not the applicant's primary language; and

(5) has met all expanded functions curriculum equivalency requirements of a Minnesota board-approved dental assisting program.

(b) The board, at its discretion, may waive specific licensure requirements in paragraph (a).

(c) An applicant who fulfills the conditions of this subdivision and demonstrates the minimum knowledge in dental subjects required for licensure under subdivision 2a must be licensed to practice the applicant's profession.

(d) If the applicant does not demonstrate the minimum knowledge in dental subjects required for licensure under subdivision 2a, the application must be denied. If licensure is denied, the board may notify the applicant of any specific remedy that the applicant could take which, when passed, would qualify the applicant for licensure. A denial does not prohibit the applicant from applying for licensure under subdivision 2a.

(e) A candidate whose application has been denied may appeal the decision to the board according to subdivision 4a.

ARTICLE 22

PHYSICIAN ASSISTANT PRACTICE

Section 1.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, section 147A.09, subdivision 5, new text end new text begin is repealed. new text end

ARTICLE 23

BOARD OF SOCIAL WORK

Section 1.

Minnesota Statutes 2022, section 148D.061, subdivision 1, is amended to read:

Subdivision 1.

Requirements for a provisional license.

An applicant may be issued a provisional license if the applicant:

deleted text begin (1) was born in a foreign country; deleted text end

deleted text begin (2) communicates in English as a second language; deleted text end

deleted text begin (3) has taken the applicable examination administered by the Association of Social Work Boards or similar examination body designated by the board; deleted text end

deleted text begin (4)deleted text end new text begin (1) new text end has met the requirements of section 148E.055, subdivision 2, deleted text begin paragraph (a),deleted text end clauses (1), (3), (4), (5), and (6); deleted text begin ordeleted text end subdivision 3, deleted text begin paragraph (a),deleted text end clauses (1), (3), (4), (5), and (6); deleted text begin ordeleted text end subdivision 4, deleted text begin paragraph (a),deleted text end clauses (1), (2), (4), (5), (6), and (7); or subdivision 5, paragraph (a), clauses (1), (2), (3), (5), (6), (7), and (8); and

deleted text begin (5)deleted text end new text begin (2)new text end complies with the requirements of subdivisions 2 to 7.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 2.

Minnesota Statutes 2022, section 148D.061, subdivision 8, is amended to read:

Subd. 8.

Disciplinary or other action.

new text begin A licensee who is issued a provisional license is subject to the grounds for disciplinary action under section 148E.190. new text end The board may new text begin also new text end take action according to sections 148E.260 to 148E.270 if:

(1) the licensee's supervisor does not submit an evaluation as required by section 148D.063;

(2) an evaluation submitted according to section 148D.063 indicates that the licensee cannot practice social work competently and ethically; or

(3) the licensee does not comply with the requirements of subdivisions 1 to 7.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 3.

Minnesota Statutes 2022, section 148D.062, subdivision 3, is amended to read:

Subd. 3.

Types of supervision.

(a) deleted text begin Twenty-five hoursdeleted text end new text begin Halfnew text end of new text begin the new text end supervision new text begin hours new text end required by subdivision 1 must consist of one-on-one deleted text begin in-persondeleted text end supervision.new text begin The supervision must be provided either in person or via eye-to-eye electronic media while maintaining visual contact.new text end

(b) deleted text begin Twelve and one-half hoursdeleted text end new text begin Halfnew text end ofnew text begin thenew text end supervision new text begin hours new text end must consist of one or more of the following types of supervision:

(1) deleted text begin in-persondeleted text end one-on-one supervisionnew text begin provided in person or via eye-to-eye electronic media while maintaining visual contactnew text end ; or

(2) deleted text begin in-persondeleted text end group supervisionnew text begin provided in person, by telephone, or via eye-to-eye electronic media while maintaining visual contactnew text end .

(c) deleted text begin To qualify as in-persondeleted text end Group supervisiondeleted text begin , the groupdeleted text end must not exceed deleted text begin seven members including the supervisordeleted text end new text begin six superviseesnew text end .

new text begin (d) Supervision must not be provided by email. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 4.

Minnesota Statutes 2022, section 148D.062, subdivision 4, is amended to read:

Subd. 4.

Supervisor requirements.

(a) The supervision required by subdivision 1 must be provided by a supervisor who meets the requirements in section 148E.120 and has deleted text begin either:deleted text end

deleted text begin (1) 5,000 hours experience engaged in authorized social work practice; or deleted text end

deleted text begin (2)deleted text end completed 30 hours of training in supervision, which may be satisfied by completing academic coursework in supervision or continuing education courses in supervision as defined in section 148E.010, subdivision 18.

(b) Supervision must be provided:

(1) if the supervisee is not engaged in clinical practice and the supervisee has a provisional license to practice as a licensed social worker, bynew text begin :new text end

new text begin (i) new text end a licensed social worker who has completed the supervised practice requirements;

new text begin (ii) a licensed graduate social worker who has completed the supervised practice requirements; new text end

new text begin (iii) a licensed independent social worker; or new text end

new text begin (iv) a licensed independent clinical social worker; new text end

(2) if the supervisee is not engaged in clinical practice and the supervisee has a provisional license to practice as a licensed graduate social worker, licensed independent social worker, or licensed independent clinical social worker, by:

(i) a licensed graduate social worker who has completed the supervised practice requirements;

(ii) a licensed independent social worker; or

(iii) a licensed independent clinical social worker;

(3) if the supervisee is engaged in clinical practice and the supervisee has a provisional license to practice as a licensed graduate social worker, licensed independent social worker, or licensed independent clinical social worker, by a licensed independent clinical social worker; or

(4) by a supervisor who meets the requirements in section 148E.120, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 5.

Minnesota Statutes 2022, section 148D.063, subdivision 1, is amended to read:

Subdivision 1.

Supervision plan.

(a) An applicant granted a provisional license must submit, on a form provided by the board, a supervision plan for meeting the supervision requirements in section 148D.062.

(b) The supervision plan must be submitted no later than 30 days after the licensee begins a social work practice position.

deleted text begin (c) The board may revoke a licensee's provisional license for failure to submit the supervision plan within 30 days after beginning a social work practice position. deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end The supervision plan must include the following:

(1) the name of the supervisee, the name of the agency in which the supervisee is being supervised, and the supervisee's position title;

(2) the name and qualifications of the person providing the supervision;

(3) the number of hours of one-on-one deleted text begin in-persondeleted text end supervision and the number and type of additional hours of supervision to be completed by the supervisee;

(4) the supervisee's position description;

(5) a brief description of the supervision the supervisee will receive in the following content areas:

(i) clinical practice, if applicable;

(ii) development of professional social work knowledge, skills, and values;

(iii) practice methods;

(iv) authorized scope of practice;

(v) ensuring continuing competence; and

(vi) ethical standards of practice; and

(6) if applicable, a detailed description of the supervisee's clinical social work practice, addressing:

(i) the client population, the range of presenting issues, and the diagnoses;

(ii) the clinical modalities that were utilized; and

(iii) the process utilized for determining clinical diagnoses, including the diagnostic instruments used and the role of the supervisee in the diagnostic process.

deleted text begin (e)deleted text end new text begin (d)new text end The board must receive a revised supervision plan within 30 days of any of the following changes:

(1) the supervisee has a new supervisor;

(2) the supervisee begins a new social work position;

(3) the scope or content of the supervisee's social work practice changes substantially;

(4) the number of practice or supervision hours changes substantially; or

(5) the type of supervision changes as supervision is described in section 148D.062.

deleted text begin (f) The board may revoke a licensee's provisional license for failure to submit a revised supervision plan as required in paragraph (e). deleted text end

deleted text begin (g)deleted text end new text begin (e)new text end The board must approve the supervisor and the supervision plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 6.

Minnesota Statutes 2022, section 148D.063, subdivision 2, is amended to read:

Subd. 2.

Evaluation.

(a) When a licensee's supervisor submits an evaluation to the board according to section 148D.061, subdivision 6, the supervisee and supervisor must provide the following information on a form provided by the board:

(1) the name of the supervisee, the name of the agency in which the supervisee is being supervised, and the supervisee's position title;

(2) the name and qualifications of the supervisor;

(3) the number of hours and dates of each type of supervision completed;

(4) the supervisee's position description;

(5) a declaration that the supervisee has not engaged in conduct in violation of the standards of practice in sections 148E.195 to 148E.240;

(6) a declaration that the supervisee has practiced competently and ethically according to professional social work knowledge, skills, and values; and

(7) on a form provided by the board, an evaluation of the licensee's practice in the following areas:

(i) development of professional social work knowledge, skills, and values;

(ii) practice methods;

(iii) authorized scope of practice;

deleted text begin (iv) ensuring continuing competence; deleted text end

deleted text begin (v)deleted text end new text begin (iv)new text end ethical standards of practice; and

deleted text begin (vi)deleted text end new text begin (v)new text end clinical practice, if applicable.

(b) The supervisor must attest to the satisfaction of the board that the supervisee has met or has made progress on meeting the applicable supervised practice requirements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 7.

Minnesota Statutes 2022, section 148E.055, is amended by adding a subdivision to read:

new text begin Subd. 2b. new text end

new text begin Qualifications for licensure by completion of provisional license requirements as a licensed social worker (LSW). new text end

new text begin To be licensed as a licensed social worker, an applicant for licensure by completion of provisional license requirements must provide evidence satisfactory to the board that the applicant: new text end

new text begin (1) completed all requirements under section 148D.061, subdivisions 1 to 6; and new text end

new text begin (2) continues to meet the requirements of subdivision 2, clauses (1) and (3) to (6). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 8.

Minnesota Statutes 2022, section 148E.055, is amended by adding a subdivision to read:

new text begin Subd. 3b. new text end

new text begin Qualifications for licensure by completion of provisional license requirements as a licensed graduate social worker (LGSW). new text end

new text begin To be licensed as a licensed graduate social worker, an applicant for licensure by completion of provisional license requirements must provide evidence satisfactory to the board that the applicant: new text end

new text begin (1) completed all requirements under section 148D.061, subdivisions 1 to 6; and new text end

new text begin (2) continues to meet the requirements of subdivision 3, clauses (1) and (3) to (6). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 9.

Minnesota Statutes 2022, section 148E.055, is amended by adding a subdivision to read:

new text begin Subd. 4b. new text end

new text begin Qualifications for licensure by completion of provisional license requirements as a licensed independent social worker (LISW). new text end

new text begin To be licensed as a licensed independent social worker, an applicant for licensure by completion of provisional license requirements must provide evidence satisfactory to the board that the applicant: new text end

new text begin (1) completed all requirements under section 148D.061, subdivisions 1 to 6; and new text end

new text begin (2) continues to meet the requirements of subdivision 4, clauses (1), (2), and (4) to (7). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 10.

Minnesota Statutes 2022, section 148E.055, is amended by adding a subdivision to read:

new text begin Subd. 5b. new text end

new text begin Qualifications for licensure by completion of provisional license requirements as a licensed independent clinical social worker (LICSW). new text end

new text begin To be licensed as a licensed independent clinical social worker, an applicant for licensure by completion of provisional license requirements must provide evidence satisfactory to the board that the applicant: new text end

new text begin (1) completed all requirements under section 148D.061, subdivisions 1 to 6; and new text end

new text begin (2) continues to meet the requirements of subdivision 5, paragraph (a), clauses (1) to (3) and (5) to (8). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 11.

new text begin REVISOR INSTRUCTION. new text end

new text begin The revisor of statutes shall renumber each section of Minnesota Statutes listed in column A with the number listed in column B. The revisor of statutes shall also make necessary cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with the renumbering. new text end

new text begin Column A new text end new text begin Column B new text end
new text begin 148D.061 new text end new text begin 148E.0551 new text end
new text begin 148D.062 new text end new text begin 148E.116 new text end
new text begin 148D.063 new text end new text begin 148E.126 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 12.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, section 148D.061, subdivision 9, new text end new text begin is repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

ARTICLE 24

BOARD OF MARRIAGE AND FAMILY THERAPY

Section 1.

new text begin [148B.331] GUEST LICENSURE. new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin (a) A nonresident of the state of Minnesota who is not seeking licensure in Minnesota and intends to practice marriage and family therapy in Minnesota must apply to the board for guest licensure. An applicant must apply for guest licensure at least 30 days prior to the expected date of practice in Minnesota and is subject to approval by the board or its designee. new text end

new text begin (b) To be eligible for licensure under this section, the applicant must: new text end

new text begin (1) have a license, certification, or registration in good standing to practice marriage and family therapy from another jurisdiction; new text end

new text begin (2) have a graduate degree in marriage and family therapy from a regionally accredited institution or a degree in a related field from a regionally accredited institution with completed coursework meeting the educational requirements provided in Minnesota Rules, part 5300.0140, subpart 2; new text end

new text begin (3) be of good moral character; new text end

new text begin (4) have no pending complaints or active disciplinary or corrective actions in any jurisdiction; new text end

new text begin (5) submit the required fee and complete the criminal background check according to section 214.075; and new text end

new text begin (6) pay a fee to the board in the amount set forth in section 148B.392. new text end

new text begin (c) A license issued under this section is valid for one year from the date of issuance and allows practice by the nonresident for a maximum of five months. The months in which the nonresident may practice under the license must be consecutive. A guest license is not renewable, but the nonresident may reapply for guest licensure, subject to continued eligibility under paragraph (b), following expiration of a guest license. new text end

new text begin Subd. 2. new text end

new text begin Other professional activity. new text end

new text begin Notwithstanding subdivision 1, a nonresident of the state of Minnesota who is not seeking licensure in Minnesota may serve as an expert witness, organizational consultant, presenter, or educator without obtaining guest licensure, provided the nonresident is appropriately trained or educated, or has been issued a license, certificate, or registration by another jurisdiction. new text end

new text begin Subd. 3. new text end

new text begin Prohibitions and sanctions. new text end

new text begin A person's privilege to practice under this section is subject to the prohibitions and sanctions for unprofessional or unethical conduct contained in Minnesota laws and rules for marriage and family therapy under this chapter. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 148B.392, subdivision 2, is amended to read:

Subd. 2.

Licensure and application fees.

Licensure and application fees established by the board shall not exceed the following amounts:

(1) application fee for national examination is $150;

(2) application fee for Licensed Marriage and Family Therapist (LMFT) deleted text begin state examinationdeleted text end new text begin licensenew text end is $150;

(3) initial LMFT license fee is prorated, but cannot exceed $225;

(4) annual renewal fee for LMFT license is $225;

(5) late fee for LMFT license renewal is $100;

(6) application fee for LMFT licensure by reciprocity is $300;

(7) new text begin application new text end fee for deleted text begin initialdeleted text end Licensed Associate Marriage and Family Therapist (LAMFT) license is $100;

(8) annual renewal fee for LAMFT license is $100;

(9) late fee for LAMFT new text begin license new text end renewal is $50;

(10) fee for reinstatement of new text begin LMFT or LAMFT new text end license is $150;

(11) fee for new text begin LMFT new text end emeritus new text begin license new text end status is $225; deleted text begin anddeleted text end

(12) fee for temporary license for members of the military is $100deleted text begin .deleted text end new text begin ; andnew text end

new text begin (13) fee for LMFT guest license is $150. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2024. new text end

ARTICLE 25

SPEECH-LANGUAGE PATHOLOGY ASSISTANT LICENSURE

Section 1.

Minnesota Statutes 2022, section 144.0572, subdivision 1, is amended to read:

Subdivision 1.

Criminal history background check requirements.

(a) Beginning January 1, 2018, an applicant for initial licensure, temporary licensure, or relicensure after a lapse in licensure as an audiologist or speech-language pathologist, new text begin a speech-language pathology assistant, new text end or an applicant for initial certification as a hearing instrument dispenser, must submit to a criminal history records check of state data completed by the Bureau of Criminal Apprehension (BCA) and a national criminal history records check, including a search of the records of the Federal Bureau of Investigation (FBI).

(b) Beginning January 1, 2020, an applicant for a renewal license or certificate as an audiologist, speech-language pathologist, or hearing instrument dispenser who was licensed or obtained a certificate before January 1, 2018, must submit to a criminal history records check of state data completed by the BCA and a national criminal history records check, including a search of the records of the FBI.

(c) An applicant must submit to a background study under chapter 245C.

(d) The criminal history records check must be structured so that any new crimes that an applicant or licensee or certificate holder commits after the initial background check are flagged in the BCA's or FBI's database and reported back to the commissioner of human services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 2.

Minnesota Statutes 2022, section 148.511, is amended to read:

148.511 SCOPE.

Sections 148.511 to 148.5198 apply to persons who are applicants for licensure, who use protected titles, who represent that they are licensed, or who engage in the practice of speech-language pathology or audiologynew text begin or practice as a speech-language pathology assistantnew text end . Sections 148.511 to 148.5198 do not apply to school personnel licensed by the Professional Educator Licensing and Standards Board and practicing within the scope of their school license under Minnesota Rules, part 8710.6000, or the paraprofessionals who assist these individuals.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 3.

Minnesota Statutes 2022, section 148.512, subdivision 17a, is amended to read:

Subd. 17a.

Speech-language pathology assistant.

"Speech-language pathology assistant" means a person who new text begin meets the qualifications under section 148.5181 and new text end provides speech-language pathology services under the supervision of a licensed speech-language pathologist in accordance with section 148.5192.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 4.

Minnesota Statutes 2022, section 148.513, subdivision 1, is amended to read:

Subdivision 1.

Unlicensed practice prohibited.

A person must not engage in the practice of speech-language pathology or audiology new text begin or practice as a speech-language pathology assistant new text end unless the person is licensed as a speech-language pathologist deleted text begin ordeleted text end new text begin ,new text end an audiologistnew text begin , or a speech-language pathology assistantnew text end under sections 148.511 to 148.5198 deleted text begin or is practicing as a speech-language pathology assistant in accordance with section 148.5192deleted text end . For purposes of this subdivision, a speech-language pathology assistant's duties are limited to the duties described in accordance with section 148.5192, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 5.

Minnesota Statutes 2022, section 148.513, subdivision 2, is amended to read:

Subd. 2.

Protected titles and restrictions on usenew text begin ; speech-language pathologists and audiologistsnew text end .

(a) Notwithstanding paragraph deleted text begin (b)deleted text end new text begin (c)new text end , the use of the following terms or initials which represent the following terms, alone or in combination with any word or words, by any person to form an occupational title is prohibited unless that person is licensed new text begin as a speech-language pathologist or audiologist new text end under sections 148.511 to 148.5198:

(1) speech-language;

(2) speech-language pathologist, S, SP, or SLP;

(3) speech pathologist;

(4) language pathologist;

(5) audiologist, A, or AUD;

(6) speech therapist;

(7) speech clinician;

(8) speech correctionist;

(9) language therapist;

(10) voice therapist;

(11) voice pathologist;

(12) logopedist;

(13) communicologist;

(14) aphasiologist;

(15) phoniatrist;

(16) audiometrist;

(17) audioprosthologist;

(18) hearing therapist;

(19) hearing clinician; or

(20) hearing aid audiologist.

new text begin (b) new text end Use of the term "Minnesota licensed" in conjunction with the titles protected under deleted text begin thisdeleted text end paragraph new text begin (a) new text end by any person is prohibited unless that person is licensed new text begin as a speech-language pathologist or audiologist new text end under sections 148.511 to 148.5198.

deleted text begin (b)deleted text end new text begin (c)new text end A speech-language pathology assistant practicing under deleted text begin section 148.5192deleted text end new text begin sections 148.511 to 148.5198new text end must not represent, indicate, or imply to the public that the assistant is a licensed speech-language pathologist and shall only utilize deleted text begin one of the following titles: "speech-language pathology assistant," "SLP assistant," or "SLP asst."deleted text end new text begin the titles provided in subdivision 2b.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 6.

Minnesota Statutes 2022, section 148.513, is amended by adding a subdivision to read:

new text begin Subd. 2b. new text end

new text begin Protected titles and restrictions on use; speech-language pathology assistant. new text end

new text begin (a) The use of the following terms or initials which represent the following terms, alone or in combination with any word or words, by any person to form an occupational title is prohibited unless that person is licensed under section 148.5181: new text end

new text begin (1) speech-language pathology assistant; new text end

new text begin (2) SLP assistant; or new text end

new text begin (3) SLP asst. new text end

new text begin (b) Use of the term "Minnesota licensed" in conjunction with the titles protected under this subdivision by any person is prohibited unless that person is licensed under section 148.5181. new text end

new text begin (c) A speech-language pathology assistant practicing under section 148.5192 must not represent, indicate, or imply to the public that the assistant is a licensed speech-language pathologist and must only utilize the title provided in paragraph (a). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 7.

Minnesota Statutes 2022, section 148.513, subdivision 3, is amended to read:

Subd. 3.

Exemption.

(a) Nothing in sections 148.511 to 148.5198 prohibits the practice of any profession or occupation licensed, certified, or registered by the state by any person duly licensed, certified, or registered to practice the profession or occupation or to perform any act that falls within the scope of practice of the profession or occupation.

(b) Subdivision 1 does not apply to a student participating in supervised field work or supervised course work that is necessary to meet the requirements of deleted text begin sectiondeleted text end new text begin sectionsnew text end 148.515, subdivision 2 deleted text begin or 3deleted text end new text begin , or 148.5181, subdivision 2new text end , if the person is designated by a title which clearly indicates the person's status as a student trainee.

(c) Subdivisions 1 deleted text begin anddeleted text end new text begin ,new text end 2new text begin , and 2anew text end do not apply to a person visiting and then leaving the state and using titles restricted under this section while in the state, if the titles are used no more than 30 days in a calendar year as part of a professional activity that is limited in scope and duration and is in association with an audiologist or speech-language pathologist licensed under sections 148.511 to 148.5198.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 8.

Minnesota Statutes 2022, section 148.514, subdivision 2, is amended to read:

Subd. 2.

General licensure qualifications.

An applicant for licensure must possess the qualifications required in one of the following clauses:

(1) a person who applies for licensure and does not meet the requirements in clause (2) or (3), must meet the requirements in section 148.515new text begin or 148.5181, subdivision 2new text end ;

(2) a person who applies for licensure and who has a current certificate of clinical competence issued by the American Speech-Language-Hearing Association, or board certification by the American Board of Audiology, must meet the requirements of section 148.516; or

(3) a person who applies for licensure by reciprocity must meet the requirements under section 148.517new text begin or 148.5181, subdivision 3new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 9.

Minnesota Statutes 2022, section 148.515, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

Except as provided in section 148.516 or 148.517, an applicant new text begin for speech-language pathology or audiology new text end must meet the requirements in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 10.

Minnesota Statutes 2022, section 148.518, is amended to read:

148.518 LICENSURE FOLLOWING LAPSE OF LICENSURE STATUS.

new text begin Subdivision 1. new text end

new text begin Speech-language pathology or audiology lapse. new text end

deleted text begin Fordeleted text end An applicant whose licensure status has lapseddeleted text begin , the applicantdeleted text end new text begin and who is applying for a speech-language pathology or audiology licensenew text end must:

(1) apply for licensure renewal according to section 148.5191 and document compliance with the continuing education requirements of section 148.5193 since the applicant's license lapsed;

(2) fulfill the requirements of section 148.517;

(3) apply for renewal according to section 148.5191, provide evidence to the commissioner that the applicant holds a current and unrestricted credential for the practice of speech-language pathology from the Professional Educator Licensing and Standards Board or for the practice of speech-language pathology or audiology in another jurisdiction that has requirements equivalent to or higher than those in effect for Minnesota, and provide evidence of compliance with Professional Educator Licensing and Standards Board or that jurisdiction's continuing education requirements;

(4) apply for renewal according to section 148.5191 and submit verified documentation of successful completion of 160 hours of supervised practice approved by the commissioner. To participate in a supervised practice, the applicant shall first apply and obtain temporary licensing according to section 148.5161; or

(5) apply for renewal according to section 148.5191 and provide documentation of obtaining a qualifying score on the examination described in section 148.515, subdivision 4, within one year of the application date for license renewal.

new text begin Subd. 2. new text end

new text begin Speech-language pathology assistant licensure lapse. new text end

new text begin An applicant applying for speech-language pathology assistant licensure and whose licensure status has lapsed must: new text end

new text begin (1) apply for renewal according to section 148.5191, and provide evidence to the commissioner that the applicant has an associate's degree from a speech-language pathology assistant program that is accredited by the Higher Learning Commission of the North Central Association of Colleges; new text end

new text begin (2) apply for renewal according to section 148.5191 and provide evidence to the commissioner that the applicant has a bachelor's degree in the discipline of communication sciences or disorders and a speech-language pathology assistant certificate program, including relevant coursework and supervised field experience according to section 148.5181; or new text end

new text begin (3) apply for licensure renewal according to section 148.5191 and document compliance with the continuing education requirements of section 148.5193 since the applicant's license lapsed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 11.

new text begin [148.5181] LICENSURE; SPEECH-LANGUAGE PATHOLOGY ASSISTANTS. new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin Except as provided in subdivisions 3 and 4, an applicant for licensure as a speech-language pathology assistant must meet the requirements of this section. new text end

new text begin Subd. 2. new text end

new text begin Educational requirements. new text end

new text begin (a) To be eligible for speech-language pathology assistant licensure, an applicant must submit to the commissioner a transcript from an educational institution documenting satisfactory completion of either: new text end

new text begin (1) an associate's degree from a speech-language pathology assistant program that is accredited by the Higher Learning Commission of the North Central Association of Colleges or its equivalent as approved by the commissioner and that includes at least 100 hours of supervised field work experience in speech-language pathology assisting; or new text end

new text begin (2) a bachelor's degree in the discipline of communication sciences or disorders and a speech-language pathology assistant certificate program that includes: new text end

new text begin (i) coursework in an introduction to speech-language pathology assisting, adult communication disorders and treatment, speech sound disorders, and language disorders at a speech-language pathology assistant level; and new text end

new text begin (ii) at least 100 hours of supervised field work experience in speech-language pathology assisting. new text end

new text begin (b) Within one month following expiration of a license, an applicant for licensure renewal as a speech-language pathology assistant must provide, on a form provided by the commissioner, evidence to the commissioner of a minimum of 20 contact hours of continuing education obtained within the two years immediately preceding licensure expiration. A minimum of 13 contact hours of continuing education must be directly related to the licensee's area of licensure. Seven contact hours of continuing education may be in areas generally related to the licensee's area of licensure. Licensees who are issued licenses for a period of less than two years must prorate the number of contact hours required for licensure renewal based on the number of months licensed during the biennial licensure period. Licensees must receive contact hours for continuing education activities only for the biennial licensure period in which the continuing education activity was performed. new text end

new text begin Subd. 3. new text end

new text begin Licensure by reciprocity. new text end

new text begin The commissioner shall issue a speech-language pathology assistant license to a person who holds a current speech-language pathology assistant license in another state if the following conditions are met: new text end

new text begin (1) payment of the commissioner's current fee for licensure; and new text end

new text begin (2) submission of evidence of licensure in good standing from another state that maintains a system and standard of examinations for speech-language pathology assistants which meets or exceeds the current requirements for licensure in Minnesota. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 12.

Minnesota Statutes 2022, section 148.519, subdivision 1, is amended to read:

Subdivision 1.

Applications for licensurenew text begin ; speech-language pathologists and audiologistsnew text end .

(a) An applicant for licensure new text begin as a speech-language pathologist or audiologist new text end must:

(1) submit a completed application for licensure on forms provided by the commissioner. The application must include the applicant's name, certification number under chapter 153A, if applicable, business address and telephone number, or home address and telephone number if the applicant practices speech-language pathology or audiology out of the home, and a description of the applicant's education, training, and experience, including previous work history for the five years immediately preceding the date of application. The commissioner may ask the applicant to provide additional information necessary to clarify information submitted in the application; and

(2) submit documentation of the certificate of clinical competence issued by the American Speech-Language-Hearing Association, board certification by the American Board of Audiology, or satisfy the following requirements:

(i) submit a transcript showing the completion of a master's or doctoral degree or its equivalent meeting the requirements of section 148.515, subdivision 2;

(ii) submit documentation of the required hours of supervised clinical training;

(iii) submit documentation of the postgraduate clinical or doctoral clinical experience meeting the requirements of section 148.515, subdivision 4; and

(iv) submit documentation of receiving a qualifying score on an examination meeting the requirements of section 148.515, subdivision 6.

(b) In addition, an applicant must:

(1) sign a statement that the information in the application is true and correct to the best of the applicant's knowledge and belief;

(2) submit with the application all fees required by section 148.5194;

(3) sign a waiver authorizing the commissioner to obtain access to the applicant's records in this or any other state in which the applicant has engaged in the practice of speech-language pathology or audiology; and

(4) consent to a fingerprint-based criminal history background check as required under section 144.0572, pay all required fees, and cooperate with all requests for information. An applicant must complete a new criminal history background check if more than one year has elapsed since the applicant last applied for a license.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 13.

Minnesota Statutes 2022, section 148.519, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Applications for licensure; speech-language pathology assistants. new text end

new text begin An applicant for licensure as a speech-language pathology assistant must: new text end

new text begin (1) submit a completed application on forms provided by the commissioner. The application must include the applicant's name, business address and telephone number, home address and telephone number, and a description of the applicant's education, training, and experience, including previous work history for the five years immediately preceding the application date. The commissioner may ask the applicant to provide additional information needed to clarify information submitted in the application; new text end

new text begin (2) submit a transcript showing the completion of the requirements set forth in section 148.5181; new text end

new text begin (3) submit a signed statement that the information in the application is true and correct to the best of the applicant's knowledge and belief; new text end

new text begin (4) submit all fees required under section 148.5194; new text end

new text begin (5) submit a signed waiver authorizing the commissioner to obtain access to the applicant's records in this or any other state in which the applicant has worked as a speech-language pathology assistant; and new text end

new text begin (6) consent to a fingerprint-based criminal history background check as required under section 144.0572, pay all required fees, and cooperate with all requests for information. An applicant must complete a new criminal history background check if more than one year has lapsed since the applicant last applied for a license. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 14.

Minnesota Statutes 2022, section 148.5191, subdivision 1, is amended to read:

Subdivision 1.

Renewal requirements.

To renew licensure, an applicant new text begin for license renewal as a speech-language pathologist or audiologist new text end must:

(1) biennially complete a renewal application on a form provided by the commissioner and submit the biennial renewal fee;

(2) meet the continuing education requirements of section 148.5193 and submit evidence of attending continuing education courses, as required in section 148.5193, subdivision 6; and

(3) submit additional information if requested by the commissioner to clarify information presented in the renewal application. The information must be submitted within 30 days after the commissioner's request.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 15.

Minnesota Statutes 2022, section 148.5191, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Renewal requirements; speech-language pathology assistant. new text end

new text begin To renew licensure, an applicant for license renewal as a speech-language pathology assistant must: new text end

new text begin (1) biennially complete a renewal application on a form provided by the commissioner and submit the biennial renewal fee; new text end

new text begin (2) meet the continuing education requirements of section 148.5193, subdivision 1a, and submit evidence of attending continuing education courses, as required in section 148.5193, subdivision 1a; and new text end

new text begin (3) submit additional information if requested by the commissioner to clarify information presented in the renewal application. The information must be submitted within 30 days after the commissioner's request. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 16.

Minnesota Statutes 2022, section 148.5192, subdivision 1, is amended to read:

Subdivision 1.

Delegation requirements.

A licensed speech-language pathologist may delegate duties to a new text begin licensed new text end speech-language pathology assistant in accordance with this sectionnew text begin following an initial introduction to a client with the speech-language pathologist and speech-language pathology assistant presentnew text end . deleted text begin Duties may only be delegated to an individual who has documented with a transcript from an educational institution satisfactory completion of either:deleted text end

deleted text begin (1) an associate degree from a speech-language pathology assistant program that is accredited by the Higher Learning Commission of the North Central Association of Colleges or its equivalent as approved by the commissioner; or deleted text end

deleted text begin (2) a bachelor's degree in the discipline of communication sciences or disorders with additional transcript credit in the area of instruction in assistant-level service delivery practices and completion of at least 100 hours of supervised field work experience as a speech-language pathology assistant student. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 17.

Minnesota Statutes 2022, section 148.5192, subdivision 2, is amended to read:

Subd. 2.

Delegated duties; prohibitions.

(a) A speech-language pathology assistant may perform only those duties delegated by a licensed speech-language pathologist and must be limited to duties within the training and experience of the speech-language pathology assistant.

(b) Duties may include the following as delegated by the supervising speech-language pathologist:

(1) assist with speech language and hearing screenings;

(2) implement documented treatment plans or protocols developed by the supervising speech-language pathologist;

(3) document client performancenew text begin , including writing progress notesnew text end ;

(4) assist with assessments of clients;

(5) assist with preparing materials and scheduling activities as directed;

(6) perform checks and maintenance of equipment;

(7) support the supervising speech-language pathologist in research projects, in-service training, and public relations programs; and

(8) collect data for quality improvement.

(c) A speech-language pathology assistant may not:

(1) perform standardized or nonstandardized diagnostic tests, perform formal or informal evaluations, or interpret test results;

(2) deleted text begin screen or diagnose clients for feeding or swallowing disorders, including using a checklist or tabulating results of feeding or swallowing evaluations, or demonstrate swallowing strategies or precautions to clients or the clients' familiesdeleted text end new text begin demonstrate strategies included in the feeding and swallowing plan developed by the speech-language pathologist or share such information with students, patients, clients, families, staff, and caregiversnew text end ;

(3) participate in parent conferences, case conferences, or deleted text begin anydeleted text end interdisciplinary team deleted text begin without the presence of the supervising speech-language pathologist or other licensed speech-language pathologist as authorized by the supervising speech-language pathologistdeleted text end new text begin meetings without approval from the speech-language pathologist or misrepresent themselves as a speech-language pathologist at such a conference or meeting. The speech-language pathologist and speech-language pathology assistant are required to meet prior to the parent conferences, case conferences, or interdisciplinary team meetings to determine the information to be sharednew text end ;

(4) provide client or family counseling or consult with the client or the family regarding the client status or service;

(5) write, develop, or modify a client's individualized treatment plan or individualized education program;

(6) select clients for service;

(7) discharge clients from service;

(8) disclose deleted text begin clinical or confidential information either orally or in writing to anyone other than the supervising speech-language pathologistdeleted text end new text begin information to other team members without permission from the supervising speech-language pathologistnew text end ; or

(9) make referrals for additional services.

(d) A speech-language pathology assistant must deleted text begin notdeleted text end new text begin onlynew text end sign deleted text begin any formaldeleted text end documents, including treatment plans, education plans, reimbursement forms, or reportsnew text begin , when cosigned by the supervising speech-language pathologistnew text end . The speech-language pathology assistant must sign or initial all treatment notes written by the assistantnew text begin , which must then also be cosigned by the supervising speech-language pathologistnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 18.

Minnesota Statutes 2022, section 148.5192, subdivision 3, is amended to read:

Subd. 3.

Supervision requirements.

(a) A supervising speech-language pathologist shall authorize and accept full responsibility for the performance, practice, and activity of a speech-language pathology assistant.new text begin The amount and type of supervision required must be based on the skills and experience of the speech-language pathology assistant. A minimum of one hour every 30 days of consultative supervision time must be documented for each speech-language pathology assistant. new text end

(b) A supervising speech-language pathologist must:

(1) be licensed under sections 148.511 to 148.5198;

(2) hold a certificate of clinical competence from the American Speech-Language-Hearing Association or its equivalent as approved by the commissioner; and

(3) have completed at least deleted text begin onedeleted text end new text begin ten hours ofnew text end continuing education deleted text begin unitdeleted text end in supervision.

(c) deleted text begin The supervision of a speech-language pathology assistant shall be maintained on the deleted text end deleted text begin following schedule:deleted text end

deleted text begin (1) for the first 90 workdays, within a 40-hour work week, 30 percent of the work deleted text end deleted text begin performed by the speech-language pathology assistant must be supervised and at least 20 deleted text end deleted text begin percent of the work performed must be under direct supervision; deleted text end deleted text begin and deleted text end

deleted text begin (2) for the work period after the initial 90-day period, within a 40-hour work week, 20 deleted text end deleted text begin percent of the work performed must be supervised and at least ten percent of the work deleted text end deleted text begin performed must be under direct supervisiondeleted text end new text begin Once every 60 days, the supervising speech-language pathologist must treat or cotreat with the speech-language pathology assistant each client on the speech-language pathology assistant's caseloadnew text end .

(d) For purposes of this section, "direct supervision" means deleted text begin on-site, in-viewdeleted text end observation and guidance by the supervising speech-language pathologist during the performance of a delegated dutynew text begin that occurs either on-site and in-view or through the use of real-time, two-way interactive audio and visual communicationnew text end . The supervision requirements described in this section are minimum requirements. Additional supervision requirements may be imposed at the discretion of the supervising speech-language pathologist.

(e) A supervising speech-language pathologist must be available to communicate with a speech-language pathology assistant at any time the assistant is in direct contact with a client.

(f) A supervising speech-language pathologist must document activities performed by the assistant that are directly supervised by the supervising speech-language pathologist. At a minimum, the documentation must include:

(1) information regarding the quality of the speech-language pathology assistant's performance of the delegated duties; and

(2) verification that any delegated clinical activity was limited to duties authorized to be performed by the speech-language pathology assistant under this section.

(g) A supervising speech-language pathologist must review and cosign all informal treatment notes signed or initialed by the speech-language pathology assistant.

(h) A full-time, speech-language pathologist may supervise no more than deleted text begin onedeleted text end new text begin twonew text end full-time, speech-language pathology deleted text begin assistantdeleted text end new text begin assistantsnew text end or the equivalent of deleted text begin onedeleted text end new text begin twonew text end full-time deleted text begin assistantdeleted text end new text begin assistantsnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 19.

Minnesota Statutes 2022, section 148.5193, subdivision 1, is amended to read:

Subdivision 1.

Number of contact hours requirednew text begin ; speech-language pathologists and audiologistsnew text end .

(a) An applicant for licensure renewal new text begin as a speech-language pathologist or audiologist new text end must meet the requirements for continuing education stipulated by the American Speech-Language-Hearing Association or the American Board of Audiology, or satisfy the requirements described in paragraphs (b) to (e).

(b) Within one month following expiration of a license, an applicant for licensure renewal as either a speech-language pathologist or an audiologist must provide evidence to the commissioner of a minimum of 30 contact hours of continuing education obtained within the two years immediately preceding licensure expiration. A minimum of 20 contact hours of continuing education must be directly related to the licensee's area of licensure. Ten contact hours of continuing education may be in areas generally related to the licensee's area of licensure. Licensees who are issued licenses for a period of less than two years shall prorate the number of contact hours required for licensure renewal based on the number of months licensed during the biennial licensure period. Licensees shall receive contact hours for continuing education activities only for the biennial licensure period in which the continuing education activity was performed.

(c) An applicant for licensure renewal as both a speech-language pathologist and an audiologist must attest to and document completion of a minimum of 36 contact hours of continuing education offered by a continuing education sponsor within the two years immediately preceding licensure renewal. A minimum of 15 contact hours must be received in the area of speech-language pathology and a minimum of 15 contact hours must be received in the area of audiology. Six contact hours of continuing education may be in areas generally related to the licensee's areas of licensure. Licensees who are issued licenses for a period of less than two years shall prorate the number of contact hours required for licensure renewal based on the number of months licensed during the biennial licensure period. Licensees shall receive contact hours for continuing education activities only for the biennial licensure period in which the continuing education activity was performed.

(d) If the licensee is licensed by the Professional Educator Licensing and Standards Board:

(1) activities that are approved in the categories of Minnesota Rules, part 8710.7200, subpart 3, items A and B, and that relate to speech-language pathology, shall be considered:

(i) offered by a sponsor of continuing education; and

(ii) directly related to speech-language pathology;

(2) activities that are approved in the categories of Minnesota Rules, part 8710.7200, subpart 3, shall be considered:

(i) offered by a sponsor of continuing education; and

(ii) generally related to speech-language pathology; and

(3) one clock hour as defined in Minnesota Rules, part 8710.7200, subpart 1, is equivalent to 1.0 contact hours of continuing education.

(e) Contact hours may not be accumulated in advance and transferred to a future continuing education period.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 20.

Minnesota Statutes 2022, section 148.5193, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Continuing education; speech-language pathology assistants. new text end

new text begin An applicant for licensure renewal as a speech-language pathology assistant must meet the requirements for continuing education established by the American Speech-Language-Hearing Association and submit evidence of attending continuing education courses. A licensee must receive contact hours for continuing education activities only for the biennial licensure period in which the continuing education activity was completed. Continuing education contact hours obtained in one licensure period must not be transferred to a future licensure period. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 21.

Minnesota Statutes 2022, section 148.5194, is amended by adding a subdivision to read:

new text begin Subd. 3b. new text end

new text begin Speech-language pathology assistant licensure fees. new text end

new text begin The fee for initial licensure as a speech-language pathology assistant is $493. The fee for licensure renewal for a speech-language pathology assistant is $493. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 22.

Minnesota Statutes 2022, section 148.5194, subdivision 8, is amended to read:

Subd. 8.

Penalty fees.

(a) The penalty fee for practicing speech-language pathology or audiologynew text begin , practicing as a speech-language pathology assistant,new text end or using protected titles without a current license after the credential has expired and before it is renewed is the amount of the license renewal fee for any part of the first month, plus the license renewal fee for any part of any subsequent month up to 36 months.

(b) The penalty fee for applicants who engage in the unauthorized practice of speech-language pathology or audiologynew text begin , practice as a speech-language pathology assistant,new text end or deleted text begin usingdeleted text end new text begin use ofnew text end protected titles before being issued a license is the amount of the license application fee for any part of the first month, plus the license application fee for any part of any subsequent month up to 36 months. This paragraph does not apply to applicants not qualifying for a license who engage in the unauthorized practice of speech language pathology or audiologynew text begin or in the unauthorized practice as a speech-language pathology assistantnew text end .

(c) The penalty fee for practicing speech-language pathology or audiology and failing to submit a continuing education report by the due date with the correct number or type of hours in the correct time period is $100 plus $20 for each missing clock hour. new text begin The penalty fee for a licensed speech-language pathology assistant who fails to submit a continuing education report by the due date with the correct number or type of hours in the correct time period is $100 plus $20 for each missing clock hour. new text end "Missing" means not obtained between the effective and expiration dates of the certificate, the one-month period following the certificate expiration date, or the 30 days following notice of a penalty fee for failing to report all continuing education hours. The licensee must obtain the missing number of continuing education hours by the next reporting due date.

(d) Civil penalties and discipline incurred by licensees prior to August 1, 2005, for conduct described in paragraph (a), (b), or (c) shall be recorded as nondisciplinary penalty fees. For conduct described in paragraph (a) or (b) occurring after August 1, 2005, and exceeding six months, payment of a penalty fee does not preclude any disciplinary action reasonably justified by the individual case.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025. new text end

Sec. 23.

Minnesota Statutes 2023 Supplement, section 148.5195, subdivision 3, is amended to read:

Subd. 3.

Grounds for disciplinary action by commissioner.

The commissioner may take any of the disciplinary actions listed in subdivision 4 on proof that the individual has:

(1) intentionally submitted false or misleading information to the commissioner or the advisory council;

(2) failed, within 30 days, to provide information in response to a written request by the commissioner or advisory council;

(3) performed services of a speech-language pathologist deleted text begin ordeleted text end new text begin ,new text end audiologistnew text begin , or speech-language pathology assistantnew text end in an incompetent or negligent manner;

(4) violated sections 148.511 to 148.5198;

(5) failed to perform services with reasonable judgment, skill, or safety due to the use of alcohol or drugs, or other physical or mental impairment;

(6) violated any state or federal law, rule, or regulation, and the violation is a felony or misdemeanor, an essential element of which is dishonesty, or which relates directly o